Issue - meetings

To consider a report of the Portfolio Holder for Finance, Commercial and Capital Strategy.

(a)           That the draft revenue and capital outturn and the financial performance for the year ended 31 March 2023, be noted.

(b)           That the use of un-ringfenced reserves to support the overspend position in addition to increasing the general fund balance in line with the financial strategy document, be approved.

(c)           That an increase of 2.0m to the working capital loan facility available to Dorset Centre of Excellence Limited, be approved and

(d)           That authority be delegated to the Section 151 Officer to agree the terms of the loan, in consultation with the Portfolio Holder Finance.

The Portfolio Holder for Finance, Commercial & Capital Strategy presented a report with information about the Council’s draft, unaudited financial performance for the year ended 31 March 2023 and the financial position at that date.

In response to questions about the decline in the earmarked reserves, the Portfolio Holder reminded Cabinet that the council remained underfunded.  The Executive Director, Corporate Development advised that risks within the 2022/23 budget would continue to be carefully monitored and managed. Cabinet should take comfort in that the general reserve element was planned to increase as the organisation grows.

Responding to questions about the shortfall in car parking revenue, the Portfolio Holder for Highways, Travel and Environment highlighted that council had reduced the charges proposed, post budget setting, therefore the shortfall remained in the budget.  There had also been several issues around the implementation of the new car park ticket machines and inherited equipment. The new machines provided daily data for the car parking team and will enable the council to create a path going forward for future charges.

In respect of the debt management for the council, the Portfolio Holder for Finance, Commercial & Capital Strategy confirmed that this matter was being addressed, however during the Covid period the county courts had been closed and this had created a significant backlog. The Executive Director confirmed that officers were looking to find a more efficient way forward.

Responding to questions around council tax and a government report based around “unleashing potential”, the Portfolio Holder agreed, to give the Councillor asking the question, a written response after the meeting. 

It was proposed by Cllr G Suttle and seconded by Cllr S Gibson

Decision

(a)           That the draft revenue and capital outturn and the financial performance for the year ended 31 March 2023, be noted.

(b)           That the use of un-ringfenced reserves to support the overspend position in addition to increasing the general fund balance in line with the financial strategy document, be approved.

(c)           That an increase of 2.0m to the working capital loan facility available to Dorset Centre of Excellence Limited, be approved and

(d)           That authority be delegated to the Section 151 Officer to agree the terms of the loan, in consultation with the Portfolio Holder Finance.

Reason for the Decision

Although this report does not seek formal approval from Cabinet for the reported outturn, the financial performance for the year and the financial position at 31 March 2023 are important aspects of financial management as they mark the start of the next medium-term financial plan update (MTFP) and budget strategy development for 2024/25.

In addition to reporting outturn, with the financial performance for the year materially complete, it is important for Cabinet to review the risks the organisation now faces and to consider areas where it wishes to make strategic investments and/or to repurpose and prioritise its reserves to facilitate these aims.