Medium Term Financial Strategy (MTFS) EXE22-030.
Additional documents:
Minutes:
Councillor Ashall, Portfolio Holder for Corporate Financial Planning and Policy, introduced the recommendations of the Executive in respect of the Council’s Medium Term Financial Strategy (the MTFS). The financial forecast for the Council over the period 2022-23 to 2025-26 was outlined in the Strategy, based around the budget agreed at the February meeting of the Council. The Strategy would be kept under review and it was anticipated that regular updates would be made.
It was noted that effective financial management in the public sector had always been built on planning for the long-term. The challenge for Woking Borough Council now was increasingly about ensuring the Authority had the resilience to deliver annual savings and manage significant financial risks while still pursuing ambitious regeneration goals for the benefit of the Borough’s communities. It was in this context that financial resilience for the Council described its ability to remain viable, stable and effective in the medium to long term in the face of pressures from growing demand, tightening funding and an increasingly complex and unpredictable financial environment.
Councillor Barker expressed support for the Strategy though outlined a few reservations. In view of these, Councillor Barker moved and Councillor Hughes seconded the following amendment:
“The Medium Term Financial Strategy (MTFS) report be approved with the following matters reserved for future consideration of council as part of the development of proposals to the MTFS to be presented to Council in 2022/23
• the implications of the 2022/23 updates to the Council’s companies and joint venture business plans and financial models
• external legal opinion on the Council’s Minimum Revenue Provision (MRP) policy
• financial and legal due diligence for the purchase of the Victoria Square car park for £58 million.”
The merits of the amendment were debated before Councillor Ashall responded to the points raised, including those discussed during the debate and those set out in the amendment itself. The points included the use of the Council’s reserves and the position of the 2019/20 accounts which were yet to be signed off by the Auditors. The Officers were thanked for their extensive work in drawing up the MTFS before the Mayor directed the Members to the amended recommendation. The amendment was agreed nem con and accordingly it was
RESOLVED
That the Medium Term Financial Strategy (MTFS) report be approved with the following matters reserved for future consideration of council as part of the development of proposals to the MTFS to be presented to Council in 2022/23
• the implications of the 2022/23 updates to the Council’s companies and joint venture business plans and financial models
• external legal opinion on the Council’s Minimum Revenue Provision (MRP) policy
• financial and legal due diligence for the purchase of the Victoria Square car park for £58 million.”
8 Medium Term Financial Strategy (MTFS) EXE22-030 PDF 363 KB
Reporting Person – Leigh Clarke
Additional documents:
Minutes:
The report before the Committee set out the Authority’s Medium Term Financial Strategy (MTFS) for the period 2022/23 to 2025/26. The Strategy outlined the financial forecast for Woking Borough Council over the period following the approval of the 2022/23 budget in February 2022. The outlook over the period remained difficult to assess and it was emphasised that the financial forecast would remain under review, with any revisions to be incorporated into updates to the MTFS in July 2022 and throughout the year. It was noted that a full recovery was assumed to extend beyond the three years of the MTFS.
In terms of savings, over the past year the Council had identified £4.8m of savings over 2022/23 to 2024/25. The savings requirement for the coming four years was forecast to be £5.5m, of which £3m related to assumed withdrawal of Government support.
As part of the Strategy, the Executive was asked to consider a loan facility to Thameswey Energy Ltd. towards the costs of the Heating Network Investment Programme, moving the Byfleet Flood Scheme into the approved Investment Programme, allocating an additional Restrictions Grant for the delivery of a Digital Centre of Excellence, including the Old Woking Community Centre project in the Investment Programme and transferring the assets of Kingfield Community Sports Centre Ltd. to the Council.
Councillor Johnson, Shadow Portfolio Holder for Corporate Financial Planning and Policy, raised a wide range of questions on the MTFS, noting the complexity of the comprehensive Strategy and acknowledging that it formed a ‘living’ document. Areas raised included clarification of the additional project resources alluded to, improvement works at Export House, the implications of new contract arrangements with Surrey County Council in respect of grass verge maintenance, and the level of confidence in the business plans of the Council’s companies.
Councillor Barker raised further questions arising from the report, including how the current value of investments compared to previous years’ values, the impact of the recommendation in respect of the Byfleet Flood Scheme, scrutiny of the review of the Thameswey governance arrangements and the progress of the 2019/20 accounts.
Councillor Ashall responded to the points raised and agreed with Councillor Johnson’s suggestion of Member training on the Strategy and its implications in view of the complexity. The Executive was directed to the recommendations outlined in the report and in doing so thanked the Officers for the comprehensive paper.
RESOLVED
That (i) a 12 year annuity loan facility of £4.6m be made available to Thameswey Energy Ltd (TEL) at 1% over the PWLB interest rate, as the Council contribution towards the Heating Network Investment Programme (HNIP) government loan funded project for Network Extension and Decarbonisation works at Poole Road Energy Centre, and the Council acts as guarantor for the BEIS loan to TEL;
(ii) the Byfleet Flood Scheme be moved from the suspended Investment Programme into the approved Investment Programme and an ‘In Principle’ agreement to a contribution of £5m be provided to the Environment Agency so that the project can progress to Outline ... view the full minutes text for item 8