Agenda item

*AC 5         

The Lead Hub Committee Member introduced the report to the Committee. The Council had £8.9million in Earmarked Reserves and £1.7million in Unearmarked Reserves as of March 2023.  The pension liability stood at £5.5 million, a significant reduction from the previous year’s deficit of £24.2 million. The reduced liability was because of life expectancy projections and an increase in interest rates affecting the discount rates for liabilities. The accounts would not be brought back to the Audit and Governance Committee until March 2024 due to the national delays in the auditing of local government accounts.  The Member thanked the finance team for their commitment in completing the audit in a timely manner.

The Section 151 Officer stated that the Council had unspent on its budget by £79,000 (which amounted to 1%). The national pay award last year of a set amount of £1,925 on all pay grading points had resulted in additional salary costs of £230,000. Shared services methodology had resulted in £86,000 being due to be paid to West Devon Borough Council from South Hams District Council, mainly due to the waste contract being brought back inhouse at the District Council. There was a shortfall in planning income, down by 39% and a discussion would be had with the Assistant Director of Planning on an action plan being put in place to address the income shortfall.

There was an overspend on software support for IT, in part due to inflation.  The officer also stated that car parking income had shown a shortfall, although figures for this year were suggesting an increase.

The Council had been successful in attracting £13.4 million from the government for a new railway and transport hub in Okehampton. This would be a large capital project that would be included in the accounts of the Council over the next couple of years.

Answering Member questions, the Section 151 Officer explained that the rise in waste collection costs was due to having to enter into a new waste contact with the waste contractors, as the previous contract had been a joint one with South Hams, who had last year brought their waste services back in house. In the new contact, the rise in fuel costs and salary costs were both reflected.

Regarding the shortfall in planning income, it was explained that the number of planning applications had increased, however there was a reduction in major planning applications, and these were the ones that generated the most planning income.

The shortfall in car parking income was raised as an issue and the Section 151 Officer confirmed that a comprehensive review with traders, visitors and Members was to be carried out. The impact of the proposed introduction of on-street parking meters by Devon County Council would also be looked at during the review and Members asked that the Hub Committee take the issues raised into account.

The Section 151 Officer confirmed that a sensitivity analysis was part of the budget setting process when the Members set the budget in February 2023.  It was intended that a new Medium Term Financial Strategy would be presented to the Hub Committee in September, where an updated sensitivity analysis would be included.

Regarding the leisure centres, it was confirmed that Meadowlands membership was now 3.3% higher than for figures in March 2020, with Parklands still being lower than pre-covid levels with levels down by 18% on those seen in March 2020.  With regard to these figures, the Council was working in partnership with Fusion in an attempt to grow their income stream.

It was then RESOLVED that the Draft Statement of Accounts and the Draft Annual Governance Statement (AGS) for the financial year ended 31 March 2023 be noted.