Council’s bank balance figures ‘do not tell full story’

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The latest tot-up of accounts reveals that East Lindsey District Council holds £26.58 million in its investment coffers, but according to the council, that figure does not tell the full story.

The money is mostly held in accounts with British banks plus the Nationwide building society.

The council’s deputy chief rxecutive and responsible financial officer, Robert Barlow, said: “The district council has what is known as temporary cash from the council tax and business rates that it collects on behalf of the government and other councils.

“This money is placed in short term investments until it is passed onto the relevant authority. Around £10m of the £26m is not money belonging to the district council.

“Much of the remaining money is held in council reserves but is already allocated to projects, such as improved housing, flood alleviation schemes and business development initiatives, including broadband improvements and rural development grants.

“There may also be an allocation of £2.6m for a new refuse fleet in the coming days, which is taken into account.

“After these projects, the council will have £3m of funding left to support projects between 2014 and 2017. “The council holds £2m of uncommitted monies, which are there to protect the council against unforeseen circumstances.”