To consider the Revenue & Capital Outturn Report 2023/24 (CFO/52/24).

The Director of Finance and Procurement, Mike Rea, introduced the Revenue & Capital Outturn Report for 2023/24.

Members were informed that the Revenue Budget movements in Quarter 4 were outlined in Paragraph 10. The most notable change pertained to the planned draw-down of £0.581m from the Inflation Reserve to address the rise in premises energy prices.

It was noted that a small drawdown from reserves was made for IT equipment and software, and that the remaining adjustments consisted of some self-balancing virements and other minor changes.

Members were drawn to paragraph 10, page 24 where it was verified that the final budget aligned with the original approved budget of £67.921m. It was noted that the revenue Outturn position, indicated the year-end revenue underspend of £3.312m, when compared to the final budget.

It was explained that after accounting for the £0.803m year-end reserves requested by budget managers for projects and initiatives spanning the 2023/24 and 2024/25, the available underspend for 2023/24 was £2.509m.

Member's attention was drawn to Paragraph 13 and pages 25-26, which overviewed the details on revenue differences and the comprehensive revenue analysis.

It was noted that the Authority aimed to maximise savings for future financial challenges and for infrastructure investment. Members were advised that the report recommended allocating the £2.509m underspend to increase the general reserve by £0.700m, in line with the external Audit's recommendation.

It was suggested that increasing the Capital Investment Reserve by £1.809m would minimise future capital borrowing costs. Mike Rea advised Members that the reserve allocations and the overall revenue Outturn position, would align with the existing budget.

It was discussed that the 2023/24 Capital Budget and Outturn position, was outlined in paragraphs 15-21. Members were advised that within Quarter 4, the 2023/24 Capital programme budget increased by £0.331m, with the overall 5-year capital budget increasing by £0.089m.

It was noted that paragraph 16, page 27 detailed the capital budget amendments made in Quarter 4. The Capital Outturn Position was summarised, with actual spend at the end of 2023/24 explained at £8.711m below budget.

Mike Rea advised that £8.619m had been re-phased into 2024/25. Additionally, a small saving of £0.092m was noted on various 2023/24 schemes, which was identified at year-end.

Regarding reserves, paragraphs 22-31 detailed the reserves available for the year, the changes in Quarter 4, and proposed year-end adjustments. It was noted that excluding year-end adjustments, committed reserves decreased by £0.018m in Quarter 4to £9.562m.

Members were advised that officers had reviewed the year-end revenue position statements and requested year-end reserves to allocate funds for the anticipated expenditures in 2024/25 or beyond. Paragraph 26 outlined the £0.803m of year-end reserves requested by officers.

It was concluded that the amount of committed reserves decreased by £7.615m during the year, from £19.789m to £12.174m. Members were advised that the report suggested using the £2.509m revenue underspend to bolster the General Revenue Reserve and Capital Investment Reserves, which was detailed in paragraph 27.

Members' attention was drawn to the table on page 32 and Appendix A4, which summarised the changes in the opening and closing balances of committed reserves throughout the year.

Councillor Byrom noted that there was an underspend in the Authority’s budget, and he explained that the Authority did not receive a Capital Grant, and as such had to fund its own Capital. He informed Members of the recent lobbying for a capital grant at the LGA, as well as lobbying on business rates and other forms of income that could support FRS. Councillor Byrom emphasised the importance of maintaining a financially stable position during periods of transition.

Councillor Murray reviewed Appendix B and queried if the TDA Croxteth site had been sold. Mike Rea confirmed that the property had not yet been sold, and that bids were in line with the Authority’s budget and original estimate.

Councillor Murray also queried the cost of refurbishment at the TDA site. Mike Rea confirmed that the cost highlighted was related to the build cost.

Councillor Hanratty queried if the report provided was the final financial accounts of the Authority, Mike Rea clarified that the final accounts had already been submitted to the Audit Committee and emphasised that this report was the Outturn report.

Councillor Hanratty enquired if the collection rate from Council Tax had been higher this year due to house building programs across Merseyside. Mike Rea noted a slight of 0.05% increase in the budget for the year.

Councillor Hanratty inquired about the Authority’s outstanding debts and requested a detailed update on the efforts made to manage them.

It was explained that, in collaboration with Legal and Finance departments, it had been sought to limit the number of debts written off by the Authority. It was noted that in the report, there had been two instances, one related to a special service call for access to medication and the other an overpayment due to a pensioner's death. Members were advised that after following the appropriate legal procedures, it was decided not to pursue these debts.

Councillor Wood queried if there had been any unexpected trends or areas of concern for the Director of Finance that the Members should be notified of.

It was explained that the cost of secondments had been slightly higher than anticipated but there had been no unexpected surprises to consider.

RESOLVED that;

a.    that actual revenue spend compared to the approved budget delivered a net underspend of £3.312m before the creation of year-end reserves, as outlined in Appendix A1, be noted.

b.    that this underspend be approved to;

• create the required year-end reserves of £0.803m to fund projects that had slipped from 2023/24 into 2024/25, and

• increase the General Revenue Reserve by £0.700m, and

• increase the Capital Investment Reserve by £1.809m to offset capital cost pressures and reduce planned borrowing to free up revenue budget associated with debt servicing costs.

c.    the re-phasing of planned capital spend from 2023/24 into future years of £8.619m, as outlined in Appendix B. d. Approve committed reserves of £12.174m and a general reserve of £3.700m as outlined in Appendix A4 be approved. </AI7>