Issue - meetings

A report from the Director of Finance, Resources and Customer Services is attached. This sets out the Council’s revenue budget monitoring position based on information to the end of October 2015. The report also provides a brief update on the Spending Review 2015. (Key decision – reference number 4151)

(Report No.133)

(8.35 – 8.40 pm)

Councillor Andrew Stafford (Cabinet Member for Finance and Efficiency) introduced the report of the Director of Finance, Resources and Customer Services (No.133) setting out the Council’s revenue budget monitoring position based on information to the end of October 2015.

NOTED

1.               An amendment was sought to the report with regard to the value of the working capital loan for Enfield Innovations Ltd. following a sensitivity analysis of potential variations to the financial model. Recommendations 2.3 and 2.4 to be amended to read as follows (decisions 3 and 4 below reflect the amendments):

“2.3    Authorise a working capital loan to the value of £3m to Enfield Innovations Ltd. to be accessed over the life of the company to be funded either from reserves or by external borrowing depending on the financial instrument used as detailed in section 7.3 of the report.”

“2.4    Authorise the ability for the Council to pay the £3m loan in instalments as required by the company and delegate authority to the Director of Finance, Resources and Customer Services to formalise this via a second Facility Letter as per the terms agreed via the Portfolio non-key decision in July 2015 (section 7.3 of the report referred).”

In addition an amendment was required to section 7.3 of the report, paragraphs 2 and 4. The text to be amended to:

“…Due to the phasing of the loan repayments, a requirement for initial working capital to the value of £3m has been identified, to ensure that company can make the outstanding payments to the developer without resulting in a cash deficit in the early years.”

“…Cabinet is asked to authorise a working capital loan to the value of £3m to Enfield Innovations Ltd. to be accessed over the life of the company to be funded either from revenue reserves or by external borrowing depending on the financial instrument used.”

2.               That, the report forecast an outturn position of £1.6m overspend for 2015/16. Work was continuing to identify in-year savings to manage this departmental overspend.

3.               That there were no “red” risk ratings remaining, as detailed in table 1 of the report.

4.               The continued pressures on demand led services as set out in the report.

5.               The key risks as identified in section 13 of the report.

6.               The Treasury Management position as set out in Appendix B of the report.

7.               That the Council continued to maintain a sound financial position within the financial pressures being experienced.

Alternative Options Considered: Not applicable to this report.

DECISION: The Cabinet agreed

1.               To note the £1.6m departmental overspend revenue outturn projection.

2.               That departments reporting pressures should formulate and implement action plans to ensure that all possible actions were undertaken to remain within budget in 2015/16.

3.               To authorise a loan to the value of £3m to Enfield Innovations Ltd. to be accessed over the life of the company to be funded either from reserves or by external borrowing depending on the financial instrument used (as detailed in section 7.3 of the  ...  view the full minutes text for item 7