Agenda item

To receive and consider the report of the Responsible Financial Officer.

Members received and considered the written report of the Responsible Financial Officer (RFO) along with a verbal summary of the report.

Along with the management accounts, the report also contained information relating to investments and in particular, sustainable investment through Churches, Charities and Local Authorities (CCLA) Investment Management Limited and their ethical standards.

In response to a non-committee member’s question, raised ahead of the meeting, the RFO advised the projection for the current year showed a budget surplus for varying reasons, some of which were not known when the budget was prepared in the autumn. Whilst most income for the year had been received, the second instalment of the precept having been paid in September 2023  there was here still a significant amount of expenditure for the year yet to be accounted for. This meant that the surplus of income over expenditure for the year would not be as large as a reading of the management accounts to 31 January 2024 might suggest; the surplus will be at or perhaps above the level we projected - £96,055 to reserves, £103,833 if you include a transfer from earmarked reserves to fund Corn Exchange work.

The RFO went on to state that with regard to the precept for 2024/25 the main driver of the precept was the budget requirement for that year, rather than that of the previous year. The Council had some very large projects ongoing, and the Capital expenditure budget was in excess of £1mi (gross), requiring £190K funding from council tax to deliver.  Based on the projections during the budget cycle an additional £238K was required to fund total expenditure for 2024/25, over and above what would have been raised by freezing the council tax at £166.83 (Band D). The 2023/24 surplus and accumulated balances put the council in a favourable position and gave it choices. At the budget meeting in January a number of options for councillors had been presented to consider, ranging from a 0% increase, which would have required drawing £238K from reserves through to a 12.7% increase, which would have required no drawing form reserves.  At the meeting one proposal was made, to increase by 6.1%  to £177.00 and this was agreed by the Council.  Whilst judgement of council tax levels  was for members, it should be noted that 6.1% was the RPI as at October 2023 when the budget cycle was well-advanced and Members considered in the context that since the last increase in Council tax the RPI has increased by approximately 20%.

The Town Clerk also advised the Council had received a subscription invoice from the Oxfordshire Association of Local Councils of £3,700. Which included the direct access service subscription to the National Association of Local Councils. The subscriptions were important as both organisations provided professional advice, training and more specifically for the town/parish council sector.

Resolved:

1.      That, the report be noted.

2.      That, the management accounts of the Committee services to 31 January 2024 be approved.

3.      That, information regarding investment returns and sustainability of investments with the CCLA be noted.

4.      That, the Council subscribes to OALC and NALC for the 2024/25 year.