Agenda and minutes

RESOLVED that the minutes of the meeting held on 15 April 2024 be confirmed and signed by the Chair as a true record.

Councillor Naomi Tweddle, newly elected Leader of the Council, paid tribute to the tremendous service her pre-decessor Ric Metcalfe had given as Leader of the Council over many years, and she wished him a very happy retirement.

No declarations of interest were received.

Purpose of the Report

To present an outturn summary of the Council’s operational performance in quarter four of 2023/24.

Decision

1.    That the achievements and challenges identified in the Quarter 4 2023/24 operational performance report be noted.

2.    It be confirmed that the format of the performance report continued to meet requirements.

Alternative Options Considered and Rejected

None were considered.

Reasons for the Decision

Regular monitoring of the council’s performance was a key component of the Local Performance Management Framework. This report covered the key strategic performance measures identified by members and Corporate Management Team (CMT) as of strategic importance.

The outturn summary report detailed performance against a total of 76 measures across the directorates Chief Executive’s, Communities and Environment and Housing and Investment. In total 58 performance measures out of the 76 were monitored against targets, of which 16 were below target; 11 were within target boundaries; 31 had met or exceeded a higher target; 18 measures were recorded as volumetric, and there were no measures recorded as data not available for this quarter.

Out of the 76 performance measures monitored during the quarter with 58 targets allocated to them, 42 (72.4%)were within or exceeding the targets set.

The Quarter 4 2023/24 Operational Performance Report found at Appendix A to the officer’s report detailed those targeted measures with performance above or below target by each directorate at the end of the fourth quarter of 2023/24, and the reasonings behind the performance outturns.

In addition to the directorate performance measures, the report also detailed the performance outturns for corporate performance measures. These measures focussed on areas of resources, health & wellbeing, sickness, complaints (including Ombudsman rulings) and compliments.

To support the full operational performance report, a full list of all performance measure outturns and supporting performance commentary was provided at Appendix B, together with those performance measures performing within target boundary at the end of the quarter (acceptable performance) and the outturns for all performance measures recorded as volumetric (untargeted).

Purpose of Report

To present the provisional 2023/24 financial outturn position on the Council’s revenue and capital budgets, including General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes.

This report provided the Executive with a summary of actual income and expenditure compared to the revised budget and how any surpluses had been allocated to reserves.

Executive should note that the financial outturn was still subject to Audit by KPMG, the Council’s external auditors.

Decision

1.             That the provisional 2023/24 financial outturn for the General Fund, Housing Revenue Account (HRA), Housing Repairs Service and Capital Programmes as set out in sections 3-7 of the officer’s report, and in particular the reasons for any variances, be noted.

2.             That the General Fund carry forward requests as detailed in paragraph 3.7 of the officer’s report be approved.

3.             That the proposed transfer to General Fund and HRA earmarked reserves as detailed in paragraphs 3.8 and 4.7 of the officer’s report be noted.

4.            That the financial changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer detailed in paragraphs, 7.6, and 7.13 of the officer’s report be noted.

5.            That the financial changes to the General Investment Programme and the Housing Investment Programme that were above the limit delegated to the Chief Finance Officer, as detailed in paragraphs 7.5, 7.11 and 7.12 of the officer’s report, be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

During the last quarter of 2023/24, the position on the General Fund, Housing Revenue Account and Housing Repairs Service had remained positive with budget surpluses achieved across both the General Fund and HRA at the end of the financial year.

Despite this positive outturn position the Council continued to face escalating cost pressures, above those already factored into the MTFS. The positive outturn in 2023/24 had been largely driven by investment income with interest rates continuing above the levels assumed within the MTFS, with other overachieved income in the General Fund. This would not be the case in 2024/25 with budgets adjusted to reflect the base rate forecast, as such strong financial discipline and delivery of the significant savings targets underpinning the MTFS would remain critical in ensuring the Council maintained a sustainable financial position in the medium term.

A summary of the financial position of the Council for the financial year 2023/24 was outlined at paragraph 2.4 of the officer’s report, together with the detailed financial position shown in sections 3-7 and accompanying appendices to the officer’s report.

Updates were reported as follows:

General Fund Revenue Account

For 2023/24 the Council’s net General Fund revenue budget was set at £14,402,660 including a planned contribution to balances of £191,110, resulting in an estimated level of general balances at the year-end of £2,228,739 (after allowing for the 2022/23 outturn position).

The financial performance quarterly monitoring report for the 3rd quarter predicted an underspend against the revised budget of £476,652 (before additional transfers to earmarked reserves and carry forward  ...  view the full minutes text for item 5.

Purpose of Report

To consider the annual Treasury Management stewardship report, a requirement of the Council’s reporting procedures under regulations issued under the Local Government Act 2003. The report covered the treasury management activities and the actual prudential and treasury indicators for 2023/24.

The report met the requirements of both the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities.

Decision

(1)  That the actual prudential indicators, as contained within Appendices A and B to the report be noted and recommended to Full Council for approval.

(2)  That the annual Treasury Management report for 2023/24 be approved.

Alternative Options Considered and Rejected

None.

Reasons for the Decision

During 2023/24 the Council complied with its legislative and regulatory requirements The key prudential indicators for the year with comparators were detailed at paragraph 2.1 of the officer’s report, together with other prudential and treasury indicators found at Appendix A and B.

The Chief Finance Officer had confirmed that borrowing had only been undertaken for a capital purpose and that the statutory borrowing limit, (the Authorised Limit) had not been breached.

The Council had adopted the CIPFA Code of Practice for Treasury Management in the Public Sector and operated its treasury management service in compliance with this Code and the above requirements. These required that the prime objective of treasury management activity was the effective management of risk, and that its borrowing activities were undertaken in a prudent, affordable and sustainable basis.

This report fulfilled the requirement of the Prudential Code to ensure adequate monitoring of the capital expenditure plans, prudential indicators (PIs) and treasury management response to these plans. It included a review of compliance with Treasury and Prudential Limits in 2023/24 and showed the status of the Prudential Indicators at 31^st March 2024. For the 2023/24 financial year the minimum reporting requirements were that members should receive the following reports:

• an annual Treasury Management Strategy in advance of the year (Council 28^h February 2023)
• a quarterly treasury update (Executive Q1 21^st August 2023 & Q2 19^th February 2024)
• a mid-year treasury update report (Executive 20^th November 2023)
• an annual report following the year describing the activity compared to the strategy (this report)

The regulatory environment placed a greater onus on members for the review and scrutiny of treasury management policy and activities than in previous years. This report was important in that respect, as it provided details of the outturn position for treasury activities and highlighted compliance with the Council’s policies previously approved by members.

In compliance with the Prudential Code treasury management reports were scrutinised by Performance Scrutiny Committee and reviewed by the Executive prior to reporting to Full Council if required. Member training for the Performance Scrutiny and Audit Committees was undertaken on 30^th January 2024 in order to support their roles in scrutinising the treasury management strategy and policies.

Key Issues to Note from Activity during 2023/24were detailed at paragraph 4.2 of the officer’s  ...  view the full minutes text for item 6.

Purpose of Report

To provide a status report on the revised Strategic Risk Register as at the end of the fourth quarter 2023/24.

Decision

That the Council’s strategic risks as at the end of quarter 4 2023/24, be noted.

Alternative Options Considered and Rejected

None were considered. The Strategic Risk Register contained the key strategic risks to the delivery of the Council’s medium and longer term priorities. A failure to monitor the action that was being taken to manage those risks would undermine the Council’s governance arrangements.

Reasons for the Decision

An update of the Strategic Risk Register developed under the risk management approach of ‘risk appetite’, was last presented to Members in February 2024 and contained fourteen strategic risks as detailed within paragraph 3.1 of the officer’s report.

Since reporting to Members in February, the Strategic Risk Register had been refreshed and updated by the Risk Owners and Corporate Management Team which had identified some positive movement in the Risk Register.

The updated register was contained with Part B of this agenda as a restricted document.

You are asked to resolve that the press and public be excluded from the meeting during the consideration of the following items because it is likely that if members of the press or public were present, there would be disclosure to them of 'exempt information'.

In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, notice is hereby given of items which will be considered in private, for which either 28 days' notice has been given or approval has been granted by the appropriate person specified in the Regulations. For further details please visit our website at http://www.lincoln.gov.uk or contact Democratic Services at City Hall, Beaumont Fee, Lincoln.

This item is being considered in private as it is likely to disclose exempt information, as defined in Schedule 12A of the Local Government Act 1972. No representations have been received in relation to the proposal to consider this item in private.

RESOLVED that the press and public be excluded from the meeting during consideration of the following items of business because it was likely that if members of the public were present there would be a disclosure to them of ‘exempt information’ as defined by Section 100I and Schedule 12A to the Local Government Act 1972.

Purpose of Report

To receive the revised Strategic Risk Register as at the end of quarter 4 2023/24.

Decision

That the Council’s strategic risks, as at the end of quarter 4 2023/24, be noted.

Alternative Options Considered and Rejected

None were considered. The Strategic Risk Register contained the key strategic risks to the delivery of the Council’s medium and longer term priorities. A failure to monitor the action that was being taken to manage those risks would undermine the Council’s governance arrangements.

Reasons for the Decision

The reasons for the decision were set out at Minute 121 above.