116 BCa/18/62 GENERAL FUND BUDGET 2019/20 AND FOUR-YEAR OUTLOOK PDF 908 KB
Cabinet Member for Finance
Additional documents:
Decision:
BCa/18/62 - GENERAL FUnD BUDGET 2019/20 AND FOUR YEAR OUTLOOK
It was RESOLVED:-
That Cabinet recommends to Council:-
1.1 That the General Fund Budget proposals for 2019/20 and four year outlook set out in the report be endorsed for recommendation to Council on 19 February 2019.
1.2 That the General Fund Budget for 2019/20 is based on an increase to Council Tax of £5 per annum (10p per week) for a Band D property, which is equivalent to 3.15%, to support the Council’s overall financial position.
1.3 That a further £25m be invested in CIFCO as set out in paragraph 8.20 of the report.
1.4 That a discretionary Care Leavers Council Tax discount of up to 100% be introduced from the 1 April 2019 as set out in section 11 of the report.
1.5 That the second empty property premium is increased as per the regulations set out in paragraph 12.9 of the report.
Reason for Decision: To bring together all the relevant information to enable Cabinet Members to review, consider and comment
Alternative Options Considered and Rejected:
The General Fund Budget for 2019/20 and four-year outlook is an essential element in achieving a balanced budget and sustainable medium-term position. Setting a balanced budget for the coming year is a statutory requirement, therefore no other options are appropriate in respect of this.
Any Declarations of Interest declared: None
Any Dispensation Granted: None
Minutes:
116.1 Councillor Ward introduced the report and informed Cabinet that this was the first year that the General Fund and Housing Revenue Account (HRA) were being taken as separate reports, to allow for the HRA to be examined and debated separately.
116.2 Councillor Ward highlighted that the setting of the General Fund should never be seen as just a short- term exercise, rather, that it was part of producing a four-year medium-term outlook that was sensible and sustainable. The projections for this were detailed in section 8 of the report. The accumulative deficit to the end of this period was predicted to be £954K if all the New Homes Bonus was used and £2.97m excluding these receipts.
116.3 Given the uncertainty surrounding the New Homes Bonus, Councillor Ward stressed the importance of maximising income streams and the continued need to make efficiencies and savings.
116.4 Councillor Ward informed Cabinet that there was a compelling case for the need to increase council tax. This year the intention was to increase council tax to the maximum level that was allowed without requiring a referendum (i.e £5 per year for a Band D property) for the next two years and 3% for the following two years. This should be taken in the context of an average CPI inflation rate of 2.5%for 2018 along with a 1.64% growth rate of the Band D equivalent number of properties for 2019/20 and 1.5% per annum thereafter. This would ensure that the Council could grow its council tax revenues to help offset the ongoing cost pressures.
116.5 Councillor Ward also stated that the Council would need to take action during 2019/20 to replace reserves with more sustainable funding as the reserves were declining rapidly. To this end there was a need for greater self sufficiency and that was why the recommendations included a further £25m investment in CIFCO. The details of the projected income from this investment were detailed in the report.
116.6 Finally, Councillor Ward drew attention to the proposal to introduce a discretionary Care Leavers council tax discount of up to 100% to be introduced from the 1st April 2019 as set out in Section 11 of the report.
116.7 Councillor Davis raised concerns about the burden to the council tax payer with regard to the proposal to increase council tax to the maximum amount, however he welcomed the proposal for care leavers to be able to claim up to a 100% discretionary council tax discount. He also queried the proposals for a year on year council tax increase for the next four years and asked whether this was an aspiration as he believed the Council could only agree council tax rates yearly?
116.8 In response the Leader confirmed that this was an aspiration, however who ever would be responsible for setting next year’s budget could still make changes.
116.9 Councillor Ridley asked whether the “Stress Test” that was recommended by Overview and Scrutiny had been carried out and whether it would be ... view the full minutes text for item 116
117 MCa/18/60 GENERAL FUND BUDGET 2019/20 AND FOUR-YEAR OUTLOOK PDF 888 KB
Cabinet Member for Finance
Additional documents:
Decision:
It was RESOLVED:-
That Cabinet recommends to Council:-
1.1 That the General Fund Budget proposals for 2019/20 and four year outlook set out in the report be endorsed for recommendation to Council on 21 February 2019.
1.2 That the General Fund Budget for 2019/20 is based on an increase to Council Tax of 2%, which equates to £3.26 per annum (6p per week) for a Band D property, to support the Council’s overall financial position.
1.3 That a further £25m be invested in CIFCO as set out in paragraph 8.20 of the report.
1.4 That a discretionary Care Leavers Council Tax discount of up to 100% be introduced from the 1 April 2019 as set out in section 11 of the report.
Reason for Decision: To bring together all the relevant information to enable Cabinet Members to review, consider and comment upon the Councils General Fund budget before recommendations to Council.
Alternative Options Considered and Rejected: The General Fund Budget for 2019/20 and four-year outlook is an essential element in achieving a balanced budget and sustainable medium-term position. Setting a balanced budget for the coming year is a statutory requirement, therefore no other options are appropriate in respect of this.
Minutes:
The Cabinet Member for Finance introduced the report and advised that a revision to Paragraphs 8.20 to 8.23 was circulated last week. The report had been reviewed by the Overview and Scrutiny Committee on 17 January 2019 and a Member Briefing was held on 16 January 2019.
Councillor Whitehead moved the recommendations in the report and this was seconded by Councillor Horn.
Councillor Welham advised that the Overview and Scrutiny Committee requested that a short piece be written to explain the reasoning behind CIFCO, how investment decisions are made and why investments are not made in Suffolk and house building to assist the five-year land supply. The Chief Executive confirmed that this would be available following the budget being agreed.
Councillor Otton raised questions relating to the Budget Gap, Needham Lake Visitor Centre and Locality Grants Expenditure.
Members were advised that the Needham Lake Visitor Centre will be brought forward for approval in March 2019.
Councillor Gowrley confirmed that the details of individual Councillors’ Locality Grants Expenditure should be available on the website and will be added if they are not currently.
Councillor Otton requested that recommendation 3.4 be taken as a separate recommendation. It was confirmed that as there is a cost to Mid Suffolk District Council this forms part of the budget and so cannot be taken separately.
It was noted that Paragraph 9.3 on page 26 refers to Graph 5 twice. This should be Graph 5 and Graph 6.
Councillor Horn raised the possibility of allocating money to Citizens Advice Mid Suffolk and the process for doing so. It was suggested that an allocation could be made from the Growth and Efficiency Fund. Councillor Gowrley and Councillor Wilshaw declared an interest in this issue. The Chief Executive advised that a grant revision is already in place for CABs, and that a process will need to be followed once a decision had been made by Suffolk County Council regarding Citizens Advice.
By 8 votes to 2
It was RESOLVED:-
That Cabinet recommends to Council:-
1.1 That the General Fund Budget proposals for 2019/20 and four year outlook set out in the report be endorsed for recommendation to Council on 21 February 2019.
1.2 That the General Fund Budget for 2019/20 is based on an increase to Council Tax of 2%, which equates to £3.26 per annum (6p per week) for a Band D property, to support the Council’s overall financial position.
1.3 That a further £25m be invested in CIFCO as set out in paragraph 8.20 of the report.
1.4 That a discretionary Care Leavers Council Tax discount of up to 100% be introduced from the 1 April 2019 as set out in section 11 of the report.
Reason for Decision: To bring together all the relevant information to enable Cabinet Members to review, consider and comment upon the Councils General Fund budget before recommendations to Council.