Agenda item

The Committee was presented with a report that presented the Draft Statement of Accounts for 2018/19 and the Draft Annual Governance Statement for 2018/19.

In discussion, reference was made to:-

(a)    levels of Earmarked Reserves.  Officers advised that it was ultimately a decision for Members to determine what they considered to be a prudent level of Earmarked Reserves.  It was then noted that the next review of Earmarked Reserves was due to take place in September 2019 as part of the Council’s Medium Term Financial Strategy;

(b)    Section 106 Deposits.  Members requested a breakdown of the Section 106 Deposits be circulated to the Committee outside of this meeting;

(c)    theServaco Limited Trading Company.  The Section 151 Officer informed that officers would be producing a future report that would seek approval to formally close down Servaco Limited;

(d)    the removal of 100% Business Rate Relief on the letting of self-catering holiday homes.  Following the decision of Council at its meeting on 6 December 2018 (Minute 47/18(a) refers), the Section 151 Officer was in the process of writing to her colleagues from those local authorities that had similarly high proportions of self-catering holiday homes to ask them whether they wished to join the Council in lobbying Central Government to close this loophole.  In addition, the Committee noted that officers would be attending the upcoming Local Government Association Annual Conference and they were intending to lobby at this event.  When questioned, officers confirmed that the closure of this loophole would generate an additional £220,000 for the Council;

(e)    the main budget variations in Commercial Services.  Such was the extent of the variances, that Members stated the importance of these being closely monitored;

(f)     the additional planning income generated in 2018/19.  Officers advised that early indications for 2019/20 were suggesting a downturn in planning income and it was felt that the additional monies generated in 2018/19 were a one-off and therefore not part of a recurring trend.

Members were also reminded that, as part of the 2019/20 Budget Setting process, support was given to the addition of a Level 5 Specialist within the Development Management service (that was to be funded through planning income).  As part of this approval, the Council also requested that a ‘further service capacity review be undertaken by the Overview and Scrutiny Panel six months after this additional resource takes up their post’;

(g)    the work of the Finance Community Of Practice (COP).  Members paid tribute to the achievements of the Finance COP in meeting the requirement to publish the Council’s Accounts before the end of May 2019.

It was then:

RESOLVED

1.      That the draft Statement of Accounts and the Draft Annual Governance Statement for the financial year ended 31 March 2019 be noted;

2.      That the Committee elect to present in other comprehensive income changes in the fair values of all equity instruments including the CCLA investments in accordance with IFRS9 – Financial Instruments, with effect from 1 April 2018; and

3.      That it be noted that delegated authority has been exercised by the Section 151 Officer to transfer £30,000 of additional planning income received in 2018/19 to the Planning Policy and Major Developments Earmarked Reserve.