Issue - meetings

Report of Strategic Director for Customer Service and Resources and the Chief Accountant

Summary

This report presents the proposed revised Medium Term Financial Strategy, setting out the context, objectives, and fundamental principles for the planning of the Council’s financial resources over the next four years.

This report also summarises the Council’s revenue and capital projections for the financial year 2008/09 as at 28^th February 2009.

Recommendations

The Executive is recommended to:

1)           Approve the new Medium Term Financial Strategy (MTFS) and,           specifically:

i)        the objective to eliminate revenue dependence on investment income by 2012/13

ii)      the intention to relax our ‘debt-free’ policy to give us future flexibility (although any proposal to do this will be subject to further discussion)

2)           Note the revenue and capital projections at Feb/May 2009 (Appendix 2 and 3).

3)           Agree that a provision of £80,000 be made from the Investec    interest gains achieved in December 2008 to fund support for the       Horton Hospital and to fund work to increase the community benefit of       places of worship in Bicester.

4)           Agree that the accrued interest expected from investments at risk in    the Icelandic Bank Glitner of £551k be written off to zero in the 2008/09      financial statements.

5)           Agree that £3,897,623 of capital schemes listed in Appendix 2a          approved as part of the 2008/09 budget and profiled for expenditure in          2008/09 are carried forward for utilisation in 2009/10.

6)           Agree that £300,000 of the Woodgreen capital schemes profiled for    expenditure in 2009/10 be brought forward for utilisation in March             2009.

Agreed

The Strategic Director for Customer Service and Resources and the Chief Accountant submitted a report presenting the proposed revised Medium Term Financial Strategy, setting out the context, objectives, and fundamental principles for the planning of the Council’s financial resources over the next four years. The report also summarises the Council’s revenue and capital projections for the financial year 2008/09 as at 28^th February 2009.

Resolved

1)           That the new Medium Term Financial Strategy (MTFS) and,      specifically :

a)   The objective to eliminate revenue dependence on investment income by 2012/13

b)   The intention to relax our ‘debt-free’ policy to give us future flexibility (although any proposal to do this will be subject to further discussion)

2)           That the revenue and capital projections at Feb/May 2009 be noted.

3)                 That a provision of £80,000 be made from the Investec interest gains achieved in December 2008 to fund support for the Horton Hospital and to fund work to increase the community benefit of places of worship in Bicester.

4)                 That it be agreed that the accrued interest expected from investments at risk in the Icelandic Bank Glitner of £551k be written off to zero in the 2008/09 financial statements.

5)                 That it be agreed that £3,897,623 of capital schemes listed in Appendix 2a approved as part of the 2008/09 budget and profiled for expenditure in 2008/09 are carried forward for utilisation in 2009/10.

6)                 That it be agreed that £300,000 of the Woodgreen capital schemes profiled for expenditure in 2009/10 be brought forward for utilisation in March 2009.

Reasons - The strategy commits the Council to eliminating revenue dependency on investment income within the remaining 4-year lifetime of the strategy. This requires some limited and reducing support from reserves during the period to ensure effective implementation while protecting service levels during any transition period.

Options

The following options have been identified: