Issue - meetings


Reserves Review

Meeting: 25/01/2022 - Budget Planning Committee (Item 36)

36 Reserves Review pdf icon PDF 568 KB

Report of the Director of Finance

 

Purpose of report

 

To update Budget Planning Committee (BPC) on the Review of Reserves that has taken place in preparation of the budget for 2022/23 and the Medium-Term Financial Strategy (MTFS) 2022/23 – 2026/27.

 

Recommendations

            

The meeting is recommended:

 

1.1     to note the outcome of the review of reserves and the forecast over the MTFS period.

 

1.2     to provide the Executive with feedback on whether the Committee supports the draft reserve allocations.

Additional documents:

Decision:

Resolved    

 

(1)      That the outcome of the review of reserves and the forecast over the Medium Term Financial Statement be noted.

 

 

(2)      That the following feedback be given to Executive:

 

         That having enquired if sufficient reserves were held in transformation and redundancy  to mitigate costs involved in light of the separation of joint services between Cherwell District Council and Oxfordshire County Council, the Committee was assured that the costs of separation, if any, were currently unknown and if necessary, funds could be made available from reserves to support costs of separation in 2022/23. If  any potential ongoing costs of separation were identified, these would be picked up as part of the 2023/24 budget process and a further review of the level of reserves held by the Council would also take place.

Minutes:

The Director of Finance submitted a report which updated the Budget Planning Committee on the Review of Reserves that had taken place in the preparation of the budget for 2022/2023 and the Medium Term Financial Strategy 2022/2023 – 2026/2027.

 

In response to Members’ queries regarding if there were sufficient funds in reserves for potential transformation and redundancy costs arising from  the recent announcement, pending formal decision, that Cherwell District Council (CDC) and Oxfordshire County Council were mutually ending their formal partnership working arrangements, the Assistant Director for Finance explained that any costs were currently unknown.  The Assistant Director for Finance  assured the Committee that any costs arising from the separation could be made available from reserves in 2022/2023. If any potential ongoing costs of separation were identified these would be picked up as part of the 2023/2024 budget process and a further review of the level of reserves held by the Council would take place.

 

In response to Members’ comments regarding Growth Deal Reserves, the Assistant Director for Planning and Economy explained that the Growth Deal was a £215m, five year contract with Government to accelerate the delivery of housing in Oxfordshire and due to end on 31 March 2023.  CDC was part of the Future Oxfordshire Partnership which included 4 workstreams: Affordable Housing, Oxfordshire Plan 2050, Infrastructure and Productivity.  £150m of the £215m was for Infrastructure but was not allocated to a specific project.   The funds helped ensure that CDC contributed fully to the Oxfordshire system to deliver the contract.

 

Resolved    

 

(1)      That the outcome of the review of reserves and the forecast over the Medium Term Financial Statement be noted.

 

 

(2)      That the following feedback be given to Executive:

 

         That having enquired if sufficient reserves were held to mitigate transformation and redundancy costs involved in light of the separation of joint services between Cherwell District Council and Oxfordshire County Council, the Committee was assured that the costs of separation, if any, were currently unknown and if necessary, funds could be made available from reserves to support costs of separation in 2022/23. If  any potential ongoing costs of separation were identified, these would be picked up as part of the 2023/24 budget process and a further review of the level of reserves held by the Council would also take place.