Issue - meetings

The following papers are relevant to this item:

·       The Council Tax Resolution report and its three appendices circulated with the Council agenda for this meeting.

·       The agenda report (pages 10 to 17), its four appendices in the agenda supplement (pages 1 to 55) and an amendment identified in the third agenda supplement considered by the Cabinet at its meeting on Tuesday 6 February 2018.

The Cabinet’s recommendations (set out below for information only in the second [Note]) have been superseded by the following:

RECOMMENDATION TO THE COUNCIL

(1)  That following consideration of the draft budget by the Cabinet the Budget for 2018-2019 be approved as follows:

                           i.          The 2018-2019 Net Revenue Budget in respect of Chichester District Council’s own services be approved at £13,025,600.

                          ii.          The 2018-19 Council Tax Requirement in respect of Chichester District Council’s own services be approved at £8,227,400.

                        iii.          A Council Tax of £155.81 (Band D equivalent) be approved.  This represents a £5.00 (3.32 %) increase on the Band D charge.

                        iv.          The Investment Opportunities Reserve be increased by £861,300.

(2)  That the Council approves the Resolutions in Appendix A to the Council Tax Resolution report.

[Note The foregoing recommendations are required by standing order 9.5 in Chichester District Council’s Constitution (pursuant to regulation 2 (3) of the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014) to be the subject of a recorded vote]

[Note The recommendations to the Council made by the Cabinet in respect of this agenda ite were as follows:

(1)  That a net budget requirement of £12,988,300 for 2018-2019 be approved.

(2)  That council tax be increased by £5 from £150.81 to £155.81 for a band D equivalent in 2018-2019.

(3)  That the Investment Opportunities Reserve be increased by £820,200.

(4)  That, should the final settlement differ from the provisional settlement, any increase or decrease be dealt with by adjusting the transfer to the Investment Opportunities Reserve above.

(5)  The capital programme including the asset renewal programme (appendix 1c and 1d) be approved.]

The Council considered the recommendation (as amended) made to it by the Cabinet at its meeting on Tuesday 6 February 2018. The original and amended recommendations were in the Cabinet report (pages 10 to 17 of the agenda), its appendices (pages 1 to 55 of the agenda supplement) and the third agenda supplement. The recommendation had undergone subsequent revision as shown in the Council Tax Resolution report appended to the Council agenda (pages 18 to 33). The Council agenda set out the revised and the original recommendation. There had since been one additional change to the amended recommendation and this was set out in the update sheet circulated at this meeting: recommendation (1) i., ii., iii. and iv. were supplemented by v., which appeared as (5) in the Cabinet’s original recommendation and stated as follows: ‘v. The capital programme including the asset renewal programme (appendix 1c and 1d) be approved.’

Mr Wilding (Cabinet Member for Corporate Services) formally moved the Cabinet’s recommendation as amended and this was seconded by Mr Dignum (Leader of the Council). 

In commending the draft spending plans and the recommendation (as amended) in the report, Mr Wilding explained that this was the next stage after the Council’s approval on Tuesday 23 January 2018 of CDC’s Financial Strategy and Plan 2018-2019, namely to set the budget and the council tax.  The report focussed on the budget spending plans of each Cabinet portfolio, how they aggregated and, together with the various funding streams, underpinned the balanced budget. He acknowledged the impressive collaborative effort undertaken by budget managers and CDC’s finance team and overseen by the Strategic Leadership Team whereby service delivery priorities were met within the onerous constraints on public sector financial resources. The budget would be the third year in the four-year settlement agreed by CDC and the government.  The funding sources in the financial strategy set out the best estimate for funding going forward beyond 2019-2020 (the last year of the four-year settlement).  Final details from the government of the local government annual financial settlement were awaited and so the draft budget was based on the draft settlement released on 19 December 2017. The final settlement had resulted in additional funding of £41,000.  The balancing of the budget was undertaken in the context of a five-year financial strategy and some of the key variables and issues affecting that model were described in the report: income from fees, charges and rents; use of reserves; and council tax. It was firmly believed that CDC should once again take up central government’s offer of allowing a rise in council tax by £5 for band D properties (less than 10 pence per week) and equivalent increases for other property bands. This would help to offset the continued withdrawal of central government funding eg in 2018-2019 CDC would no longer receive any Revenue Support Grant. The modest council tax increase (assumed in the five-year financial strategy) would generate an extra £264,000 per year and assist in closing the budget  ...  view the full minutes text for item 6

The Cabinet is requested to consider the agenda reportand its four appendices in the agenda supplement and to make (a) the following recommendations to the Council and (b) in addition resolutions with regard to the matters indicated:

A - RECOMMENDATIONS TO THE COUNCIL

(1)  That a net budget requirement of £12,988,300 for 2018-2019 be approved.

(2)  That Council tax is increased by £5 from £150.81 to £155.81 for a band D equivalent in 2018-2019.

(3)  That the Investment Opportunities Reserve is increased by £820,200.

(4)  That, should the final settlement differ from the provisional settlement, any increase or decrease be dealt with by adjusting the transfer to the Investment Opportunities Reserve above.

(5)  The capital programme, including the asset renewal programme (appendix 1c and 1d).

B - RESOLUTIONS BY THE CABINET

The Cabinet is recommended in the agenda report to give further consideration to and make resolutions with regard to:

(1)  The current resources position (appendix 2).

(2)  The budget variances included in the Draft Budget Spending Plan as set out in appendix 1b including growth items.

RECOMMENDED TO THE COUNCIL

(1)  That a net budget requirement of £12,988,300 for 2018-2019 be approved.

(2)  That council tax be increased by £5 from £150.81 to £155.81 for a band D equivalent in 2018-2019.

(3)  That the Investment Opportunities Reserve be increased by £820,200.

(4)  That, should the final settlement differ from the provisional settlement, any increase or decrease be dealt with by adjusting the transfer to the Investment Opportunities Reserve above.

(5)  The capital programme including the asset renewal programme (appendix 1c and 1d) be approved.

RESOLVED

That the current resources position in appendix 2 and the budget variances included in the Draft Budget Spending Plan in appendix 1b including growth items be noted.

The Cabinet received and considered the agenda report and its four appendices in the agenda supplement. The third agenda supplement gave details of an amendment to note 23 to the list of major variations on page 12 of the agenda supplement (car park fees and charges – inflation increase (additional income of £273,300)).

This item was introduced by Mr Wilding.

Mrs Belenger and Mr Cooper were in attendance for this matter.

In commending the draft spending plans and the recommendations in the report, Mr Wilding explained that this was the next stage after the Council’s approval on 23 January 2018 of CDC’s Financial Strategy and Plan 2018-2019, leading to the Council being asked to set the budget and the council tax at its next meeting on 6 March 2018.  The report focussed on the budget spending plans of each Cabinet portfolio, how they aggregated and, together with the various funding streams, underpinned the balanced budget before the Cabinet. He acknowledged the impressive collaborative effort undertaken by budget managers and CDC’s finance team and overseen by the Strategic Leadership Team whereby service delivery priorities were met within the onerous constraints on public sector financial resources. The budget would be the third year in the four-year settlement agreed by CDC and the government.  The funding sources in the financial strategy set out the best estimate for funding going forward beyond 2019-2020 (the last year of the four-year settlement).  Final details from the government of the local government annual financial settlement were awaited and so the draft budget was based on the draft settlement released on 19 December 2017. There was one variance from CDC’s earlier estimates: a slight increase in the Rural Services Delivery Grant (RSDG) of £35,000, which had brought the RSDG back to its 2017-2018 level of £152,000.  The balancing of the budget was undertaken in the context of a five-year financial strategy and some of the key variables and issues affecting that model were described in the report: income from fees, charges and rents; use of reserves; and council tax. It was firmly believed that CDC should once again take up central government’s offer of allowing a rise in council tax by £5 for band D properties (less than 10 pence per week) and equivalent increases for other property bands. This would help to offset the continued withdrawal of central government funding eg in 2018-2019 CDC would no longer receive any Revenue Support Grant. The modest council tax increase (assumed in the five-year financial strategy) would generate an extra £264,000 per year and assist in closing the budget deficit which would otherwise emerge in the medium term. In addition there was the continuing work on the deficit reduction plan which aimed to generate further income and savings amounting to £2.3m over the next five years. Those measures would help to minimise future council tax rises. 

He alluded to and summarised the following from the papers: the net revenue requirement in the income and expenditure statement; the effect any increase  ...  view the full minutes text for item 474