92 MC/19/38 GENERAL FUND BUDGET 2020/21 AND FOUR YEAR OUTLOOK PDF 1 MB
Cabinet Member for Finance
In accordance with Council Procedure Rule 19.3, immediately after any vote is taken at a budget decision meeting of the Council the names of Councillors who cast a vote for the decision or against the decision or who abstained from voting shall be recorded in the Minutes of that meeting.
At its meeting on 10 February 2020, Cabinet considered Paper MCa/19/43, together with amendments to the General Fund Budget. Paper MC/19/38 now includes all the relevant updated information, together with the necessary recommendations.
Additional documents:
Minutes:
92.1 The Chair of the Council referred Members to the revised Appendix C in the tabled papers and invited Councillor Whitehead to introduce report MC/19/38.
92.2 Councillor Whitehead, Cabinet Member for Finance, informed Members that the budget was a result of a period of strong financial discipline and strict prudence implemented by the administration and the significant contribution of the management team, whom had consistently delivered positive financial outturns against the budget.
92.3 He continued that the General Fund Budget report had been presented to Cabinet on the 13th January 2020 and the Overview and Scrutiny Committee on the 17th January 2020. Several Member briefings have also taken place in January for the Budget.
92.4 He directed Members’ attention to the fact that the Council had minimised the use of the new Homes Bonus and had not used any New Homes Bonus for the Council’s normal running costs.
92.5 He referred to paragraph 8.10, table 5, which illustrated that the New Homes Bonus would end in 2023/24 and currently it was uncertain what and how much would be replacing it.
92.6 The Central Government’s revenue support grant had fallen away in recent years and it was therefore important that the Council generated its own income. This was achieved by the following four income steams:
· Income received from various pool investments, all of which produce income streams
· The building up of CIFCO to £50m by investing in secure real estate assets, which generated a significant income stream
· Growing of the council tax base by building new housing and bringing empty properties back in to use, which provided a 1%+ tax increase each year.
· An increase in council tax of 1.66%, which equated to a £2.26 increase per year for a Band D home.
92.7 Councillor Whitehead continued that the budget was healthy and included £1m for the development of a Commercial Risk Management Reserve for the Councils’ development sites and £0.5m for Climate Change initiatives for 2020/21. Despite these investments the reserves would still be above £10m for 2020/21, as illustrated in paragraph 7.6.
92.8 He then detailed the revised Appendix B, which included information regarding investments into CIFCO, the development of the Needham Market Lake Visitor Centre, development of the Leisure Centre, a proposed change to reduce the 25% council tax discount from three months down to 28 days for Empty and unfurnished properties in section 11. He also referred to the Pay Policy in section 12.
92.9 He thanked the Finance Team for the work undertaken.
92.10 Councillor Whitehead MOVED recommendations 3.1 to 3.5 in the report, which was SCEONDED by Councillor Morley.
92.11 Councillor Eburne advised Members that the Green Party and Liberal Democrat Groups of Councillors coordinated to produce a series of budget proposals in November 2019, and having had discussions with the Finance Team, then presented 10 key proposals to the ruling Administration for the next financial year. They were pleased that the Administration had progressed some of these proposals including:
· Promoting sustainable new ... view the full minutes text for item 92
94 MCa/19/43 GENERAL FUND BUDGET 2020/21 AND FOUR-YEAR OUTLOOK PDF 991 KB
Cabinet Member for Finance
Additional documents:
Decision:
It was RESOLVED:-
1.1 That the General Fund revenue budget proposals for 2020/21 and four-year outlook set out in the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February 2020 as detailed below.
1.2 That the General Fund capital budget proposals for 2020/21 set out in Appendix B in the report be endorsed for recommendation to Council on 27 February 2020.
1.3 That the General Fund Budget for 2020/21 is based on an increase to Council Tax of 1.66%, which equates to £2.76 per annum (5p per week) for a Band D property, to support the Council’s overall financial position.
1.4 That from the 1st April 2020 properties that are unoccupied and unfurnished (Class C discount) receive a 25% reduction for the first 28 days as set out in section 11 of the report.
1.5 That the proposed Pay Policy Statement for 2020/21 as set out in section 12 of the report be endorsed for recommendation to Council on 27 February 2020.
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 recommendation to Council.
Alternative Options Considered and Rejected: The General Fund Budget for 2020/21 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 Interests Declared: None
Any Dispensation Granted: None
Minutes:
The Cabinet Member for Finance introduced the report and advised Members that the report had been presented to Cabinet in January 2020 and to the Joint Overview and Scrutiny Committee. Councillor Whitehead provided details of the updated figures contained within the report. Members were advised that the report contained the Pay Policy Statement which had previously been a separate report.
The recommendations in the report and the tabled paper were proposed by Councillor Whitehead. Councillor Gould seconded the recommendations and commented that the budget displayed an ideal balance between risk and opportunity.
Councillor Eburne thanked the administration for liaising with them on the budget proposals and commented that there were issues which she would like to see more work carried out on, for example electric vehicle charging units and the Stowmarket visioning work.
Following a question raised by Councillor Eburne, the Assistant Director for Corporate Resources confirmed that the final finance settlement made on 06 February 2020 had not resulted in any changes to the figures contained in the budget.
Councillor Brewster commented that some of the issues raised by Councillor Eburne would be covered by Report MCa/19/47 Outputs for 2019-23 to Support the Delivery of the Joint Corporate Plan, which would follow later in the agenda.
Councillor Field queried the pension fund assumptions contained in the report. The Assistant Director for Corporate Resources clarified that there was a 1% reduction per annum included for the next three years.
In response to a question from Councillor Welham regarding the increasing workload and the affect on staff members, particularly with regard to the Neighbourhood Planning Team, the Chief Executive confirmed that the current level of resources was sufficient.
By a unanimous vote
It was RESOLVED:-
1.1 That the General Fund revenue budget proposals for 2020/21 and four-year outlook set out in the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February 2020 as detailed below.
1.2 That the General Fund capital budget proposals for 2020/21 set out in Appendix B in the report be endorsed for recommendation to Council on 27 February 2020.
1.3 That the General Fund Budget for 2020/21 is based on an increase to Council Tax of 1.66%, which equates to £2.76 per annum (5p per week) for a Band D property, to support the Council’s overall financial position.
1.4 That from the 1st April 2020 properties that are unoccupied and unfurnished (Class C discount) receive a 25% reduction for the first 28 days as set out in section 11 of the report.
1.5 That the proposed Pay Policy Statement for 2020/21 as set out in section 12 of the report be endorsed for recommendation to Council on 27 February 2020.
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 recommendation to Council.