Chichester District Council
Issue

Issue - meetings

Financial Strategy and Plan 2019-2020

Meeting: 04/12/2018 - Cabinet (Item 618)

618 Financial Strategy and Plan 2019-2020 pdf icon PDF 76 KB

The Cabinet is requested to consider the agenda report and its three appendices in the agenda supplement and to make the following recommendations to the Council:

 

RECOMMENDATION TO THE COUNCIL

 

(1)  That the key financial principles and actions of the five year Financial Strategy set out in appendix 1 to the agenda report be approved.

 

(2)  That the current five year Financial Model detailed in appendix 2 to the agenda report be noted.

 

(3)  That, having considered the recommendations from the Corporate Governance and Audit Committee, the Minimum Level of the General Fund Reserves be set at £6.3 m.

 

(4)  That the Director of Corporate Services be given delegated authority, following consultation with the Cabinet member for Corporate Services, to accept the Government’s offer to participate in the 75% localisation business rate pilot for 2019-2020, if the West Sussex Councils’ bid is successful, or if not, to revert back to the Coastal West Sussex existing pooling arrangement for the coming financial year.

 

(5)  That the current resources position as set out in appendix 3 to the agenda report be noted.

 

Additional documents:

Decision:

RECOMMENDATION TO THE COUNCIL

 

(1)  That the key financial principles and actions of the five year Financial Strategy set out in appendix 1 to the agenda report be approved.

 

(2)  That the current five year Financial Model detailed in appendix 2 to the agenda report be noted.

 

(3)  That, having considered the recommendations from the Corporate Governance and Audit Committee, the Minimum Level of the General Fund Reserves be set at £6.3 m.

 

(4)  That the Director of Corporate Services be given delegated authority, following consultation with the Cabinet Member for Corporate Services, to accept the government’s offer to participate in the 75% localisation business rate pilot for 2019-2020, if the West Sussex councils’ bid is successful, or if not, to revert back to the Coastal West Sussex existing pooling arrangement for the coming financial year.

 

(5)  That the current resources position as set out in appendix 3 to the agenda report be noted.

 

 

Minutes:

The Cabinet received and considered the agenda report and its three appendices in the main agenda supplement.

 

This item was presented by Mr P Wilding (Cabinet Member for Corporate Services).

 

Mrs H Belenger (Divisional Manager Financial Services) was in attendance for this matter.

 

Mr Wilding explained that the report updated the Financial Strategy and Plan for 2019-2020 and created the framework within which the council tax base was set (agenda item 8) as well as setting the scene for approval of the budget in early 2019. The backdrop to the strategy was one of increasing political uncertainty and reducing central government funding for local government. CDC was in the fourth and final year of its agreed settlement with central government, so there was certainty over its government funding stream in 2019-2020. Retained business rates would continue to provide an increased proportion of CDC’s funding. However, much of its other income, for example car parks and planning fees, was dependent on the state of the wider economy and so was much less predictable.

 

He drew attention to the following:

 

(1)  CDC’s key priorities set out in appendix 1, one of which was to manage CDC’s finances prudently and effectively. The Finance Strategy was linked to this specific corporate priority, as were also the key financial principles which underpinned CDC’s financial planning approach listed in annex A.

 

(2)  The updated five-year financial model in appendix 2, which reflected the consolidated budget from the service areas, central government funding and the most up-to-date estimates for wider CDC activities including the commercial boards, and other planned savings.

 

(3)  The risks and opportunities estimates in section 4 of appendix 1. The key assumptions were:

 

(a)  An assumed £5 increase in council tax (for a band D property) for each year in the five-year financial model (equivalent to approximately 3% increase per annum). The Council would make the decision in March 2019 as to the council tax level for 2019-2020 following the local government settlement.

 

(b)  Recent quarterly revenue monitoring had identified some deterioration in car park and planning income and in recognition of this an adjustment of £300,000 had been built into the model for each year of the five-year period.

 

(c)  A number of costs during the past year which could not be met from the Asset Replacement Programme and so were financed from reserves.  An extra provision of £200,000 for asset replacement had therefore been included in the model for each year over the five-year period. A detailed review was underway and the precise amount required would be built into the annual budget.

 

(d)  The provisional finance settlement for 2019-2020 and the outcome of the bids for participating in the pilot 75% Business Rates Retention Scheme for 2019-2020 were expected to be announced by the Ministry of Housing, Communities and Local Government on 6 December 2018. CDC was assuming no further reduction in overall local government funding but a shift to upper-tier councils (West Sussex County Council (WSCC)) to meet social care costs.  ...  view the full minutes text for item 618


 

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