Issue - meetings

The material relevant to this item is the report on pages 33 to 37 of the agenda and 1 to 19 of the (main) agenda supplement considered by the Cabinet at its meeting on Tuesday 4 December 2018.

The following recommendations were made by the Cabinet to the Council:

RECOMMENDATIONS 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 £6.3m.

(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.

The Council considered the recommendation made to it by the Cabinet at its meeting on Tuesday 4 December 2018, as set out in pages 33 to 37 of the agenda report and pages 1 to 19 of the agenda supplement for that meeting.  

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

Mr Wilding presented the Cabinet’s recommendation. He 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 March 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 programme 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 announced by the Ministry of Housing, Communities  ...  view the full minutes text for item 56