The Committee are asked to note the Capital & Revenue Reserves Strategy.

The Committee considered the Capital & Revenue Reserves Strategy.

The Committee were advised that the second recommendation in the report needed to be amended to reflect that the Outline Budget analysis now indicated that Council would require net funding of £5,900.000 million as an appropriation from the Sinking Funds reserves for 2023-24 as opposed to the figure of £6,519,900 quoted due to savings having been identified.

The Committee resolved to note the following:

1.    That by successfully implementing a prudent approach to developing its Sinking Funds, Spelthorne Borough Council has the highest ratio of usable (cash backed) revenue reserves to Net Revenue Expenditure (NRE) of any District or Borough Council in England,

2.    That subject to Council approval, the Outline Budget analysis indicate that Council will require net funding of £5,900,000 from the Rent Equalisation Reserve (Sinking Funds) – (RER) in 2023/24 and £3,125,300 in 2024/25. From 2025/26 the five year planning cycle currently indicated that the /council would return to making net contributions to the RER,

3.    That based on the Medium Term Financial Strategy (MTFS) Council must look to bridge the £1.24m per annum net contribution deficit from Knowle Green Estates caused by the height restrictions and adverse movements in interest rates and building cost inflation; and

4.    The forecast projections for the reserves from 2022/23 to 2024/25, as set out in Appendix D of the report.

Report to follow.

This item was deferred to the meeting of the Corporate & Policy Resources Committee to be held on 20 February 2023.