Issue - meetings

The Head of Finance provided Members with a summary of the 2017/18 Budget and the Medium Term Financial Strategy to 2020/21. Members noted that there the Budget is forecast to be balanced until 2020/21.

Members discussed the Capital Project budgets and associated figures.

Members concluded that no recommendations were to be made.

Report of the Cabinet Member for Finance and Assets

            RECOMMENDED

(i)         That the level of Council Tax for 2017/18 be increased from £137.17 by 2.5% to £140.60 at Band D.

(ii)        That the net revenue budget for 2017/18 of £11,860,000 be approved, as submitted.

(iii)       That Special Expenses of £280,319 and a Band D charge of £24.40 be agreed in respect of the unparished area for 2017/18.

(iv)       That the capital programme for 2017/18 be approved as submitted and that the indicative capital budgets in the programme for future years be noted.

(v)        That the projected future deficit on the revenue account in 2020/21 be noted and the Medium Term Financial Strategy continues to be reviewed and refined to ensure that decisions are taken to develop a balanced budget in 2020/21.

(vi)       That the Minimum Revenue Provision (MRP) Statement be approved, as submitted.

(vii)      That the prudential indicators and limits for 2016/17 to 2019/20 be approved, as submitted.

(viii)     That the statement on the robustness of the level reserves be noted.

REASON

To meet the Council’s statutory requirement to approve the budget and the prudential indicators before the start of a new financial year.

The Cabinet Member for Finance and Assets reported the details of the proposed 2017/18 revenue and capital budgets and reviewed the Medium Term Financial Strategy, which had been approved in November 2016, in light of the final 2017/18 budget and receipt of the Settlement.  It was noted that the Council was able to set a balanced budget for 2017/18, generating a small surplus which would help towards funding future transformation to maximise efficiency and effectiveness.

The 2016 Autumn Statement had done little to change the Government’s policy of significantly reducing funding to local authorities in a bid to help reduce Government debt, consequently the pressure on Council finances remained as strong as ever.  As the Council had already accepted the four year settlement in 2015/16, the settlement in December 2016 duly confirmed a 23.6% reduction in Settlement Funding Allocation in 2017/18 when compared to funding of £2,700,000 in 2016/17.  Cumulatively, there would be a 62.3% reduction over the four year period by 2019/20.

The current budget estimate was for the Council to deliver a small surplus in 2018/19, breakeven in 2019/20 and have a deficit of £1,600,000 in 2020/21.  These projections were significantly lower than had been forecast a year ago as a result of the work done on the 2017/18 budget and also by the Cabinet’s November 2016 decision to approve alternate weekly collection from Spring 2018, which should generate savings of £1,000,000 per annum.

It was planned to deliver savings and income generation through a combination of measures including: service and productivity reviews; shared services; procurement; income generation; and other efficiency measures.  The current programme focused on the period up to 2020, but this would help put the Council in good shape to tackle the deficit in 2020/21.

The report set out a series of prudential indicators, which were a statutory requirement to demonstrate that the Council’s capital programme was affordable and prudent in the context of the Council’s overall finances, together with a statement on the robustness of reserves.

The proposals were supported by the Finance and Assets Policy Development Advisory Group.

            RECOMMENDED

(i)         That the level of Council Tax for 2017/18 be increased from £137.17 by 2.5% to £140.60 at Band D.

(ii)        That the net revenue budget for 2017/18 of £11,860,000 be approved, as submitted.

(iii)       That Special Expenses of £280,319 and a Band D charge of £24.40 be agreed in respect of the unparished area for 2017/18.

(iv)       That the capital programme for 2017/18 be approved as submitted and that the indicative capital budgets in the programme for future years be noted.

(v)        That the projected future deficit on the revenue account in 2020/21 be noted and the Medium Term Financial Strategy continues to be reviewed and refined to ensure that decisions are taken to develop a balanced budget in 2020/21.

(vi)       That the Minimum Revenue Provision (MRP) Statement be approved, as submitted.

(vii)      That the prudential indicators and limits for 2016/17 to 2019/20 be approved, as submitted.

(viii)     That the statement  ...  view the full minutes text for item 74

Presentation by the Head of Finance.

The Head of Finance presented the draft 2017-18 Budget and Medium Term Financial Plan to the group. The presentation detailed:

• Assumptions in 2017/18
• 2017/18 and projected future budget shortfalls
• Future years’ assumptions
• Reserves at 31 March 2016
• Projected general fund reserves
• Risks

Members discussed:

• The need for clarity around property investment assumptions, including:

a)         any revenue impact from the disposal of assets that had not been offset by acquisition at the same or better return

b)         that existing reserves and the capital generated by the disposal of assets would be preferred to fund property investment, rather than a loan at the currently preferential rate

• The timing and potential short term impact of the change to alternative weekly collection of waste
• The lack of certainty from the government about business rate retention and new homes bonus
• Whether the forecast increase in the  number of households had been accounted for in the assumptions

The Chairman and Officers noted the views of the group. The Chairman reminded the group that it had been asked to bring forward ideas directly to the Chairman which could then be tested by officers.