To consider report CFO/059/18 of the Treasurer, reviewing the financial position, revenue and capital, for the Authority for 2018/19.  The Authority receives regular comprehensive financial reviews during the year which provide a full health check on the Authority’s finances. This report covers the period April to June 2018.

Members considered report CFO/059/18 of the Chief Fire Officer, concerning the financial position, revenue and capital, for the Authority for 2018/19.  The Authority receive regular comprehensive financial reviews during the year which provide a full health check on the Authority’s finances. This report covers the period April to June 2018.

Members were given an overview of the report highlighting the following:

·         The revenue budget is consistent with the original budget at £59.7m and outlines the self-balancing adjustment actions in the first quarter. 

·         The approved revenue budget saving options are expected to be delivered on target. 

·         Members were advised of the implementation of the day crewing whole-time retained duty system at Wallasey and the City Centre.  It was explained that Authority will continue to lobby Government to allow increased flexibility around the 2019-20 council tax increase from just under 3% or to £5. If this is approved and all other financial assumptions remaining consistent with the current financial plan, then the CFO will look at options for re-investing any available funds back into the front line services. 

·         The revenue spend is anticipated to be consistent with the budget. 

·         Amendments to the approved capital programme of just under £8m, of which £7.5m relates to the approved rephrasing of 2017-18 schemes into 2018-19. 

·         The most notable adjustment made to the 5 year capital programme is an increase of £1.4m in the purchase of national assurance assets, which is 100% funded by the home office.  Also a reduction of £1.1m in the planned spend of the period as a result of schemes slipping beyond the 5 year capital programme and some proposed reduction in ancillary fleet and operational equipment spend following a review by officers. 

·         A £3m increase in reserves in the first quarter of 2018/19 as a result of the re-phasing of planned spend on the new stations at St Helens and Saughall Massie into 2019/20. 

·         The performance of treasury management remains consistent with the approved 2018/19 strategy. 

·         At the end of June the Authority held investments of just over £21m.  All investments are consistent with the improved investment strategy and within limit. 

·         No new loans have been taken out. 

Members enquired about the credit rating of A- against Skipton Building Society investment and were informed that the credit rating is within the approved treasury strategy limits for the level of investment with that organisation, and A- remains a substantive credit rating. 

Members asked for more information with regards to the six debtor accounts that have been approved for write-off under delegated powers.  The Director of Finance outlined the reason for the write-off. One account was raised in error and the rest had a significant level of doubt over whether they met the conditions for a chargeable service or the relevant debtor was not known. Based on advice from litigation services it was recommended that the debts be written-off.   

Members asked a question about the £900k increase in Fees and Charges income and where it had came from.  Members were advised that most of the increase came from two bodies; the Merseyside Road Safety Partnership, £0.424m: and the Princes Trust, £0.415m.  Members were informed that these are one off contributions that may be repeated in future years. 

Members then praised the work that MFRA do with the Princes Trust programmes. 

Members enquired about the current council tax referendum limit.  Members were informed that next year the Secretary of State has stated that an  increase of just under 3% without a referendum will be allowed, which has been already been assumed in the current financial plan.  Members were informed that the current Lobbying Strategy includes a provision to ask for an increase in this limit to £5 for 2019/20.

Members asked about the deletion of ancillary vehicles and if we would receive a financial gain from the deletion of these vehicles. Members were advised that the reduction in planned spend for 2018/19 – 2022/23 is only due to some purchases being re-phased beyond 2022/23.  

Members resolved that:

a)    the contents of the report, be noted;

b)    the proposed revenue, capital and reserve budget alignments, be approved; and

c)    the Director of Finance continues to work with budget managers to maximise savings in 2018/19.