Agenda, decisions and minutes

No members of the public registered to speak.

Councillor Tasker declared a personal interest in item 12 as her husband is a Director of Valley Housing Ltd and left the meeting whilst this item was considered.

There were no urgent items.

Resolved:

That the minutes of the meeting held on 26 May 2021 be confirmed and signed as a correct record.

There were no recommendations to consider from the Overview and Scrutiny Committee.

Finance

To report the actual expenditure against budget for the Asset Management Plan in 2020/21 and to update the Asset Management Plan requirement for 2021/22.

Resolved:

1.  That the expenditure for the year on Asset Management projects, as shown in Annex 1 to the report, be noted.

2.  That the updated budget for Asset Management projects in 2021/22, as shown in Annex 2 to the report, be approved.

Consideration was given to the report of the Finance Portfolio Holder, which compared the actual expenditure on Asset Management Plan (AMP) projects with the approved budget for 2020/21.

The total revised AMP budget in 2020/21 was £4.462M. Actual expenditure in the year was £2.676M, leaving an overall positive variance of £1.786M. The outturn position for 2020/21 had been reviewed, following which the AMP requirement for 2021/22 had been updated.

Having considered the options and for the reasons set out in the report, Cabinet agreed to the following:

Resolved:

1.  That the expenditure for the year on Asset Management projects, as shown in Annex 1 to the report, be noted.

2.  That the updated budget for Asset Management projects in 2021/22, as shown in Annex 2 to the report, be approved.

Finance

To report the Council’s 2020/21 revenue outturn position, explains reasons for variances between the original estimate and the outturn and recommends how the deficit in the year should be treated.

Resolved:

1.  That the Council’s Revenue outturn for 2020/21, as shown in Annexes 1 and 2 to the report, be noted.

2.  That the reasons for the budget variances, as shown in paragraph 3, be noted.

3.  That the items shown in paragraph 3.19, totalling £71,400, be approved for carry forward into the 2021/22 revenue budget.

4.  That the transfers to reserves of £7.481M detailed in paragraph 3.18 be approved.

5.  That the transfer of £694,000 from the Collection Fund Equalisation Reserve as detailed in paragraph 4.3 be approved.

6.  That the Head of Finance and Revenues be authorised to make necessary adjustments through the Collection Fund Equalisation Reserve, should any additional variances be identified in finalising the Statement of Accounts for 2020/21.

Consideration was given to the report of the Finance Portfolio Holder which presented the Council’s Revenue outturn position for the year ended 31 March 2021.

The report showed a net General Fund expenditure of £12.232M. The actual net General Fund expenditure in 2020/21 was £694,000 more than the Original Estimate. The report recommended a transfer of the full amount from the Collection Fund Equalisation Reserve.

Having considered the options and for the reasons set out in the report, Cabinet agreed to the following:

Resolved:

1.  That the Council’s Revenue outturn for 2020/21, as shown in Annexes 1 and 2 to the report, be noted.

2.  That the reasons for the budget variances, as shown in paragraph 3, be noted.

3.  That the items shown in paragraph 3.19, totalling £71,400, be approved for carry forward into the 2021/22 revenue budget.

4.  That the transfers to reserves of £7.481M detailed in paragraph 3.18 be approved.

5.  That the transfer of £694,000 from the Collection Fund Equalisation Reserve as detailed in paragraph 4.3 be approved.

6.  That the Head of Finance and Revenues be authorised to make necessary adjustments through the Collection Fund Equalisation Reserve, should any additional variances be identified in finalising the Statement of Accounts for 2020/21.

Finance

To review the performance of the Treasury Management function in 2020/21.

Resolved:

That the Annual Treasury Management Report for 2020/21 and the Prudential Indicators for the year as shown in the Annex to the report be noted.

Consideration was given to a report of the Finance Portfolio Holder which reviewed the performance of the Treasury Management function in 2020/21 compared with the forecasts and policies set out for last year. Investment income for the year was £1,000 higher than included in the forecast.

The Council managed all investments in-house  during 2020/21. Most investments during the year were placed in call-accounts or fixed-term deposits for durations of up to one year, with the exception of investments to a Local Authority totalling £5M for five years.

The Council achieved an average investment income rate of 0.52% in the year compared with an average benchmark figure of -0.07. 

Having considered the options and for the reasons set out in the report, Cabinet agreed to the following:

Resolved:

That the Annual Treasury Management Report for 2020/21 and the Prudential Indicators for the year as shown in the Annex to the report be noted.

Finance

To summarise the actual expenditure on capital projects in 2020/21, providing explanations for variations between estimated and actual expenditure.

To review the funding of the capital programme, and present a revised programme for 2021/22 to 2022/23.

Resolved:

That the updated Capital Programme as shown in Annex 1 to the report be approved.

Consideration was given to a report of the Finance Portfolio Holder which summarised the Council’s Capital expenditure for 200/21 and explained the reasons for variances from the forecast, including a summary of the total budget slippage within the Capital Programme.

The report contained recommendations for the carry forward of certain unspent capital budgets into 2021/22 as detailed throughout the report and provided an updated capital programme for 2020/21 to 2022/23.

Having considered the options and for the reasons set out in the report, Cabinet agreed to the following:

Resolved:

That the updated Capital Programme as shown in Annex 1 to the report be approved.

Finance

To review the financial performance of Project Enterprise activities in the 2020/21 financial year.

Resolved:

That the outturn position for Project Enterprise investments in 2020/21 be noted.

Consideration was given to a report of the Finance Portfolio Holder which summarised the return on investment made during the 2020/21 financial year from Project Enterprise projects.

The amount of investment in completed Project Enterprise acquisitions at 31 March 2021 was £29.347M, of which £1.338M related to projects that were completed in 2020/21. Two further development projects had been approved for commencement in 2021/22.

Having considered the options and for the reasons set out in the report, Cabinet agreed to the following:

Resolved:

That the outturn position for Project Enterprise investments in 2020/21 be noted.

Finance

To consider the activity of Valley Housing Ltd in 2020/21 and receive an updated business plan for 2021/22 to 2023/24.

Resolved:

1.  That the Directors’ annual report, as shown in Annex 1 to the report, be noted.

2.  That the updated Business Plan for 2021/22 to 2022/23, as shown in Annex 2 to the report, be approved.

Consideration was given to a report of the Finance Portfolio Holder which presented the directors’ report on the activity of the company in the 2020/21 financial year and updated its business plan for 2021/22 to 2023/24.

The renovation of seven properties at Portersbridge Street in Romsey had been completed and it was likely that these properties would transferred to Valley Housing in due course.

Councillor Flood altered recommendation 2 as set out in the agenda papers to correct the date of the business plan from 2021/22 to 2022/2023 to 2021/22 to 2023/24. The meeting’s consent was signified without discussion.

Having considered the options and for the reasons set out in the report, Cabinet agreed to the following:

Resolved:

1.  That the Directors’ annual report, as shown in Annex 1 to the report, be noted.

2.  That the updated Business Plan for 2021/22 to 2023/24, as shown in Annex 2 to the report, be approved.