URL: https://democracy.northdevon.gov.uk/ieDecisionDetails.aspx?ID=4388

Decision Maker: Strategy and Resources Committee, Council

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Financial Management Report for Quarter 2 2025/26.   The Finance Manager highlighted the following:   ·       The revenue budget for 2025/26 approved at Council on 26th February 2025 at £18,072,800. ·       As at 30 September 2025, the latest forecast net budget was £17,954,800, which produced a budget surplus of £118,000. Details are shown in “Appendix A – Variations in the Revenue Budget”. ·       The original budget for 2025/26 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasts would achieve £106,000 based on known vacancies to date, but it was anticipated that the budget of £250,000 would be achieved by the end of the financial year, however there was a risk this may not be fully achieved. (Rather than being a target to aspire to, the £250,000 was an estimate of the natural savings that will be achieved due to the time it takes to recruit for vacant posts.) ·       The National pay award for 2025-26 had been agreed. The pay award exceeded the budgeted 3% included in the original budget by 0.2%, the £40,000 shortfall had been funded from the Budget Management reserve, the estimated 2025-26 year balance on this reserve was now £529,326. ·       The Planning fees for quarter 2 had been reviewed and it was now estimating the income to be favourable by an additional £150,000 compared to the base budget, volumes and larger applications continue to be up on 2024/25 levels. We will continue to monitor the income and will feed any changes into the quarter 3 report. ·       Pannier market income was down by £65,000, officers have been reviewing the events income element, and it was hoped that quarters 3 and 4 would see a partial recovery. ·       Pay and Display income was down by around 3% on budgeted volumes, resulting in an estimated £120,000 less income compared to budget, this was partly offset by increased carpark permit income. ·       Recycling sales were still currently down by circa £41,000, the new baler commodity prices are still filtering through, and we will revise this figure further in the quarter 3 report. ·       As at 31 March 2025 the Collection Fund reserve balance held was £777,321.  This reserve included a net (£138,021) deficit balance that would be utilised in the current year (£233,222) and 2026/27 £95,201 surplus, to mitigate timing differences of business rate reliefs awarded in 2024/25 that from an accounting perspective impact over the next two financial years; There was also £89,000 transfer to the Strategic Contingency reserve thus leaving the fund reserve with a residue future balance of £550,300 (£455,099 + £95,201) protection against future volatility. ·       At the 30 September 2025 total external borrowing was £12,000,000. The timing of any future borrowing was dependent on how the authority manages its treasury activity.  Since the publication of the report, there was a requirement to borrow an additional £2m to support our treasury position. ·       The 2025/26 Capital Programme was detailed in “Appendix D – Capital Programme 2025/26”. ·       Overall variations of (£2,964,162) were proposed to the 2025/26 Capital programme. The variations to schemes and slippages in funding as detailed in paragraph 4.4.3 of the report.  This also includes the additional £2m for temporary accommodation. ·       The overall revised Capital Programme for 2025/26 to 2027/28 taking into account the budget variations was £26,306,015. ·       The Programme of £26,306,015 was funded by Capital Receipts/ Borrowing (£13,480,036), External Grants and Contributions (£11,001,589) and Reserves (£1,824,390). ·       The proposed funds to be released for capital schemes as detailed in paragraph 4.4.8 of the report. ·       Treasury Management as detailed in paragraph 4.5 of the report. ·       Debt Management as detailed in paragraph 4.6 of the report. ·       General Debtors as detailed in paragraph 4.7 of the report.   In response to questions from the Committee, the Director of Resources and Deputy Chief Executive advised the following:   ·       The car park income last year had dropped by 7%, which had been partially as a result of the works being undertaken to the Barnstaple central car park and the car park being closed for a period of time.  This decrease had now started to improve for 2025/26.  Some volatility had been factored in for the works to the central car park.  The decrease had now reduced to 2% which was a much smaller variance.  ·       Data of usage was collected for each car park.  The general overview was that the usage of car parks had increased compared to last year, some of this increase was attributable to the central car park.  The usage and ticket sales had increased since last year.  If car parks were offered free of charge, residents would use the car parks and would therefore reduce spaces available for visitors to the town. ·       As part of the Barnstaple pannier market capital programme project, growth in income had been included.  There was currently a decline in this projected new income source.  A plan was in the process of being prepared to identify areas to generate additional income.  This plan along with more detailed budgetary income and business plan would be presented to the Scrutiny and Policy Development Committee for consideration.  It was anticipated that the income would recover through additional events being held at the market.  The scoping paper for the review would be presented to the next meeting of the Scrutiny and Policy Development Committee on 13 November 2025.   In response to questions, the Head of Place, Property and Regeneration advised the following:   ·       The Pannier Market business plan projected additional income following the completion of the works.  The reduction in income being reported was in relation to the projected income in the Business Plan and not an overall reduction from last years income.     RESOLVED:   (a)  That the contributions to/from earmarked reserves be approved (as detailed in paragraph 4.2) (b)  That the movement on the Strategic Contingency Reserve (as detailed in paragraph 4.3) be noted. (c)   That funds be released for the capital schemes listed in paragraph 4.4.8. (d)  That the sections dealing with Treasury Management, Debt Management and General Debtors (paragraphs 4.5 to 4.7) be noted.   RECOMMENDED:   (e)  The Council approve the variations to the Capital Programme 2025/26 to 2027/28 (as detailed in paragraph 4.4.3 of the report).  

Date of Decision: November 3, 2025