Issue - meetings

Report of Head of Finance

Summary

To seek endorsement from the Executive, following a review by the Head of Finance – in association with the Portfolio Holder for Resources – of the Councils revenue reserves, to determine whether they are set an appropriate level with regard to purpose, anticipated timing of need, degree of risk and level of potential expenditure.

Recommendations

The Executive is recommended:

(1)               To consider and endorse the contents of this report.

(2)               To approve the transfers between earmarked reserves and the creation of 1 new reserve detailed in Appendix 1.

(3)               To approve that authority is delegated to the Head of Finance, in consultation with the Portfolio Holder for Resources, to transfer sufficient funds from earmarked reserves to general fund balances as part of the closedown processes for 2010-11 to avoid general fund balances falling below the minimum amount stated in the medium term financial strategy.

Approved

The Head of Finance submitted a report to seek endorsement from the Executive, following a review by the Head of Finance – in association with the Portfolio Holder for Resources – of the Councils revenue reserves, to determine whether they are set an appropriate level with regard to purpose, anticipated timing of need, degree of risk and level of potential expenditure.

Resolved

(1)               That the contents of the report be noted and endorsed.

(2)               That the transfers between earmarked reserves and the creation of 1 new reserve detailed in annex 4 to the minutes (as set out in the minute book) be approved.

(3)               That the Head of Finance, in consultation with the Portfolio Holder for Resources, be delegated to transfer sufficient funds from earmarked reserves to general fund balances as part of the closedown processes for 2010-11 to avoid general fund balances falling below the minimum amount stated in the medium term financial strategy.

Reasons

Cherwell District Council is required to maintain adequate financial reserves to meet the needs of the organisation. The purpose of the reserves policy is to set out how the Council will determine and review the level of general fund reserves. The Council’s general fund is where all the revenue income and expenditure of the Council is accounted for. It does not include specific funds such as the collection fund or the housing revenue account. Sections 32 and 43 of the Local Government Finance Act 1992 require local authorities to have regard to the level of reserves needed for meeting estimated future expenditure when calculating the budget requirement.

Options