Issue - meetings

This report presents a review of reserves and recommends minimum reserve balances to ensure sound management of the Council’s finances.

The Group received a report presenting a review of reserves and recommending minimum reserve balances to ensure sound management of the Council’s finances.

Members discussed the following issues:

·                In February the decision was taken to set the minimum reserve balance at £1m, since then a benchmarking exercise has been undertaken and the results indicate that the council should adopt a more prudent strategy, 15% of the net revenue budget, £1.5m. 

·                The constitutional procedure that permits changing the minimum General Fund unallocated reserve level within 6 months of the previous Council decision on this matter. 

Note: Following the meeting, it has been confirmed that a motion may be moved to Full Council to rescind or alter a decision of Full Council if it is recommended by a committee, provided that it complies with the requirements of FCR 14.2 of Appendix 4 of the Constitution.

Following consideration of the report’s contents, the Group moved to consider the report recommendations, which were agreed as follows:

(1)       Consider and review whether the recommended General Fund unallocated reserve level of £1.5 million is appropriate for the sound management of the Council’s finances;

(2)       Review the methodologies and levels of other reserves in light of the latest MTFS and report back to FSAG.

The Group also agreed to request the Strategy & Resources Committee to recommend to Full Council:

(3)       Proposed changes to the General Fund unallocated reserve levels.