Agenda item

The Cabinet is requested to consider the agenda report and its four appendices in the agenda supplement and to make the recommendation to the Council and the resolution set out below:

A – RECOMMENDATION TO THE COUNCIL

That:

(a)   That a net budget requirement of £13,829,600 for 2019-20 be approved.

(b)   That Council tax be increased by £5 from £155.81 to £160.81 for a band D equivalent in 2019-2020.

(c)   That the Investment Opportunities Reserve be increased by £532,500.

(d)   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.

(e)   The capital programme, including the asset renewal programme (appendix 1c and 1d to the agenda report) be approved.

B - RESOLUTION BY THE CABINET

That (a) the current resources position as set out in appendix 2 to the agenda report and (b) the budget variances included in the Draft Budget Spending Plan as set out in appendix 1b to the agenda report including the growth items be noted.

RECOMMENDATION TO THE COUNCIL

a)    That a net budget requirement of £13,829,600 for 2019-20 be approved.

b)    That Council Tax be increased by £5 from £155.81 to £160.81 for a band D equivalent in 2019-20.

c)     That the Investment Opportunities Reserve be increased by £532,500.

d)    That the capital programme, including asset renewal programme as set out in appendix 1c and 1d be approved.

RESOLVED BY THE CABINET

a)    That the current resources position as set out in appendix 2 be noted.

b)    That the budget variances included in the Draft Budget Spending Plan including growth items as set out in appendix 1b be noted.

This item was presented by Mr Wilding (Cabinet Member for Corporate Services). Mrs Belenger (Divisional Manager for Financial Services) and Mr Cooper (Group Accountant) were also in attendance.

Mr Wilding explained that the report follows Full Council’s approval of the Financial Strategy in January 2019. Full Council will set the Budget and Council Tax in March 2019. The budget process requires cooperation between individual budget managers and the council’s finance team overseen by the Strategic Leadership Team. The task has been to ensure that service delivery priorities are met within the constraints on public sector financial resources.

Mr Wilding then confirmed that the 2019-20 budget marks the final year of the four year Government settlement. On 29 January 2019 the Government confirmed a draft settlement as final without amendment and as such recommendation 3.1 (d) is not required.   

Mr Wilding advised that the council should take up central Government’s offer of allowing a rise in Council Tax by £5 for Band D properties and equivalent increases for other property Bands.He explained that the extra £266,700 generated would help to offset the continued reduction of central Government funding and assist in closing the budget deficit that would otherwise emerge in the medium term. The increase was assumed in the 5 year financial strategy and not to approve it would leave the council with a deficit to address in later years. Continued work on the 2016 Deficit Reduction Plan aims to generate further income and savings amounting to £1.3m over the next five years.

Mr Wilding then explained that the overall 2019-20 budget shows a net revenue requirement of £13.830m (or £11.652m excluding the New Homes Bonus). The budget process identifies detailed variances by department and service areas between the 2018-19 budget and that for 2019-20. The major variances include the growth items amounting to £151,700 and service efficiency savings amounting to £334,700. With regard to the Capital Programme all the projects included have already had approval from the Cabinet and Full Council although some may be subject to a separate future report and Project Initiation Document before the funding is released. The Statement of Reserves remains robust and highlights the purpose of specific reserves and the respective authorisations for their use. It demonstrates that the Capital Programme and Asset Replacement Programmes are fully funded, as indicated by the prudential indicators set out on page 55 of the supplement pack along with the Council’s Minimum Revenue Provision (MRP) Policy. The latter states the arrangements for the repayment of any debt which is a requirement of the Prudential Code even if the council is debt free. 

Mr Wilding confirmed that the Director of Corporate Services is obliged by statute to report on the robustness of the estimates and the adequacy of reserves. His advice being that the council’s financial estimates are sound, the resultant estimates robust and reserves adequate.

Mrs Belenger wished to thank the officers who had worked on the Budget Spending Plans. Mr Dignum echoed the thanks from the Cabinet.

Decision

The Cabinet voted unanimously to make the recommendations and resolutions below.

RECOMMENDATION TO THE COUNCIL

a)    That a net budget requirement of £13,829,600 for 2019-20 be approved.

b)    That Council Tax be increased by £5 from £155.81 to £160.81 for a band D equivalent in 2019-20.

c)     That the Investment Opportunities Reserve be increased by £532,500.

d)    That the capital programme, including asset renewal programme as set out in appendix 1c and 1d be approved.

RESOLVED BY THE CABINET

a)    That the current resources position as set out in appendix 2 be noted.

b)    That the budget variances included in the Draft Budget Spending Plan including growth items as set out in appendix 1b be noted.