Agenda item

The Town Clerk referenced the previous Policy and Finance meeting held on 12 November 2024, expressing concerns as the Proper Officer and Responsible Financial Officer (RFO) around the Town Council's current level of general reserves and contingency funds and lack of justification for maintaining such balances.

The Town Clerk submitted a report included in the circulated reports pack for Members consideration during the meeting. Drawing attention to the report summary, the Town Clerk highlighted guidance from section 5 of the Joint Panel on Accountability and Governance Practitioners Guide (JPAG), which clarifies best practice for the level of funds Town Councils of this size should hold.

Additionally, the Town Clerk referenced information from the Cornwall Association of Local Councils (CALC) concerning principal authorities that exceed expected income levels and how they are not able to declare bankruptcy.

Members were asked to review the Town Council’s fund levels, as detailed in Appendices A and B of the reports pack. The Town Clerk emphasised the importance of conducting annual reviews as good practice and requested that Members provide clear justification for the current fund levels being maintained.

The Town Clerk confirmed she had no concern regarding the level of EMF’s as justification is provided; Members agreed.  However, she requested Members consider recommending to the Town Vision Sub Committee to review EMF 6280 Town Vision funds and future spending.

Members debated and discussed in length the levels being maintained.

The Town Clerk explained that the Town Council can adjust the contingency level during this evening’s meeting without affecting the precept set for 2025/26. The Town Clerk noted that if Members chose to reduce the contingency funds to the recommended best practice level of three months' operating costs, the surplus would be transferred into General Reserves.

This adjustment would provide a clear, transparent and accountable rationale for maintaining funds specifically for unexpected situations. The General Reserves would then be available for further investments or projects.

As an example, the Town Clerk highlighted potential repair works to the Pontoon following storm damage, the Waterside or Victoria Gardens. Such expenditure aligns with the Town Council’s strategic priorities outlined in the Business Plan, ensuring that these funds are used responsibly and in accordance with established goals.

It was proposed by Councillor P Samuels, seconded by Councillor Stoyel and RESOLVED:

1.  To note the advice of the Proper Officer / RFO to Saltash Town Council (as attached and received at the meeting);

2.  To RECOMMEND to the Town Vision Sub Committee to review budget code 6280 EMF Town Vision against future spend under the Sub Committees Terms of Reference;

3.  To retain the level of General Reserves and Contingency stated in the report (as attached);

4.  To note the Ear Marked Reserves (EMF’s) of the Town Council are justified on the projects to be delivered in the near future (as attached);

5.  The RFO continues to review the level of Town Council General Reserves, Contingency and Ear Marked Reserves on an annual basis reporting back to the Policy and Finance Committee for consideration.