Agenda item

            The Committee considered the undernoted report:

 

“1.0      Purpose of Report

 

1.1       This report presents the financial outturn for the Council for the year ended 31 March 2018. It includes a reporting pack which contains a summary of the financial indicators and an executive summary. It also provides a more detailed explanation of each of the relevant indicators and covers the outturn for the year and implications for reserves and the year-end Treasury Management position (Appendix 2).

 

2.0       Recommendations

 

2.1       The Committee is asked to:

 

·        Note the year end outturn and reserves position.

·        Note that the balance of department underspend of £28,993 will be allocated to General Reserves.

 

3.0       Main report

 

            Financial Outturn 2017/18

 

3.1       The year-end departmental position for the Council is an under-spend of £435,514 (0.3%). The main reasons for the departmental net expenditure variance include employee under-spends due to staff turnover, vacancies and receipt of additional central grants income.

 

3.2      Members will recall that the Committee, on the 18 May 2018, agreed to allocate £226,521 from General Reserves and £180,000 from the Capital of Culture Specified Reserves to fund £406,521 of area-based festivals expenditure.

 

3.3       After the replenishment of reserves for the above allocations of £406,521 from the departmental underspend of £435,514 there remains a balance of £28,993 of departmental underspend which will be transferred to General Reserves.

 

            LPS Rates Finalisation

 

3.3       The year-end outturn as reported by LPS is a surplus of £750k. This comprises a surplus rates income of £1.1m and reduction in the actual derating grant of £350k. This surplus was fully allocated by the Committee in November 2017.

 

            Capital Financing

 

3.4       The year-end capital financing expenditure was fully applied at the year end, this includes the £2.2m of financing available due to slippage in the capital programme, which was reallocated by the Committee in November 2017.

 

 

            Capital Expenditure

 

3.5       In the twelve months to 31 March 2018 the Council incurred net expenditure of £19.2m on capital schemes. In addition £3.2m of levered monies was also spent on capital schemes during the year bringing the gross capital expenditure to £22.4m for 2017/18. Non-recurring project expenditure was £0.9m against a budget of £1.2m. 

 

            Local Investment Funds (LIF 1 and LIF 2)

 

3.6      Committed expenditure on LIF 1 projects at the year-end was almost £5m, leaving a minimal balance of LIF 1 funding.

 

3.7      Committed expenditure on LIF 2 projects was £3.86m leaving a balance of £140k.

     

            City Centre Social Outcomes Fund

 

3.8       The City Centre Social Outcomes Fund was fully financed and the full balance of £4m remains in the fund at the 31 March 2018.

 

            Belfast Investment Fund

 

3.9       The Belfast Investment Fund balance was £4.25m at the end of 2017/18. From 2018/19, the recurrent rates contribution of £3.27m per annum will be allocated to the Belfast Investment Fund to finance £28.2m of Belfast investment Fund expenditure in future years. 

 

            City Centre Investment Fund (CCIF).

 

3.10      The balance of the City Centre Investment Fund at the year-end was £15.3m.

 

            Reserves Position

 

3.11      The opening balance of Specified Reserves at the start of 2017/18 was £7.6m and General Reserves of £13.4m. After movements and allocations by the Committee during the year the Council has Specified Reserves of £10.7m and General Reserves of £13.7m at the year end.

 

            Summary of Council Financial Position for 2018/19

 

3.12      Robust financial planning means that the Council will commence the 2018/19 year with access to the following financial resources to ensure an adequate reserves position and fund the capital investment plans for the City.

 

·        General Reserves £13.7m

·        Specified Reserves £10.7m

·        City Centre Social Outcomes Fund £4m

·        City Centre Investment Fund £15.3m

·        Belfast Investment Fund £28.2m (to be financed by £3.27m annually from 18/19)

·        Capital Financing Budget Programme £20.7m

·        Leisure Transformation Programme £105m

 

3.13      Financial and Resource Implications

 

            The report sets out the 2017/18 year end position.

 

3.14      Equality Implications

 

            There are no equality implications with this report.”

 

            The Committee noted the year end outturn and reserves position and agreed that the balance of the departmental underspend of £28,993 be allocated to General Reserves.