211 BC/19/35 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 11 February 2020, Cabinet considered Paper BCa/19/34, together with amendments to the General Fund Budget. Paper BC/19/35 now includes all the relevant updated information, together with the necessary recommendations.
Additional documents:
Minutes:
211.1 The Chair invited Councillor Ward, the Leader and Cabinet Member for Finance to introduce Paper BC/19/35.
Note: The Tabled Papers included an updated Appendix C
211.2 Councillor Ward informed Members that the report contained the revenue and capital budgets and the Council’s strategic financial aim. The General Fund budget enabled the Council to agree the budget and to consider the medium-term financial position, ensuring it was sustainable.
211.3 He continued that the Government had deferred the Fair Funding Review, the Business Rate review and the Business Rate reset for twelve months.
211.4 The financial settlement for this coming year provided an additional £265k as indicated in paragraph 4.14 of the report. The Council had a sound financial strategy responding to the changing landscape of funding and he referred to section 6 in the report. Self-sufficiency and maximising of income streams continued, including finding new ways of working. Projection of future funding was on-going, and it was important to work on the projected Four-year Outlook, which was detailed in paragraphs 8.2 to 8.18. The current projection had produced a compelling case for the increase of Council Tax.
211.5 He then advised that Council tax increases would be implemented to the maximum level allowed of £5 per year or 3.1% for Band D properties and thereafter be increased by 2% for the following years. The increase of Council tax revenue would help to offset the ongoing cost the Council faced, as illustrated in the tabled Appendix C, and would generate an additional income of £308k for 2020/21.
211.6 There would be an increase in long term parking charges from £2 to £3 for 24 hours parking, though the first three hours would remain free.
211.7 Since 2011/12 the Council had saved a total of £17.4m through maximising shared services, better use of technology and maximising commercial opportunities. Further savings of £2.6m have been identified for the next year and beyond and details were in paragraph 8.18.
211.8 He then detailed the main budget entries for the General Fund Budget and added that £278k was earmarked from reserves to achieve a balanced budget. He remarked that it should be noted that the use of reserves of £278k was half of the amount for the current year. For 2020/21 the Council would be in a position to transfer a surplus of £711k to the Transformation Fund, details of which could be found in paragraphs 8.6 -8.10.
211.9 The Council would be using all of the New Homes Bonus and Section 31 Grant, which was a total of £4.11m. However, there would still be budget gap of £1.1m at the end of March 2024 as indicated in paragraphs 8.19 to 8.23.
211.10 Reserve levels were illustrated in paragraph 7.5 table 3. At the end of March 2021, it was expected that £994k would be in the Transformation Fund. However, the reserves level excluding CIL, had dropped by 6% during the period March 2019 to March 2021.
211.11 The Capital Programme was set out in ... view the full minutes text for item 211
222 BCa/19/34 GENERAL FUND BUDGET 2020/21 AND FOUR-YEAR OUTLOOK PDF 947 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 26 February 2020 as detailed below.
1.2 That the General Fund Capital Budget proposals for 2020/21 and four-year outlook set out in the report be endorsed for recommendation to Council on 26 February 2020.
1.3 That the General Fund Budget for 2020/21 is based on an increase to Council Tax of £5 per annum (10p per week) for a Band D property, which is equivalent to 3.1%, to support the Council’s overall financial position.
1.4 That from 1 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 26 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 which had been presented to Cabinet in January, and updated Members on changes made since the previous meeting, including the updates contained in the tabled papers.
Councillor Ward proposed the recommendations contained in paragraphs 3.1 to 3.5 of the report.
Councillor Davis commended the Finance Team for producing a budget with no service cuts to residents and commented that the budget had a positive outlook for the coming year.
Councillor Arthey made reference to the hard work which had gone into the budget preparation before the meeting today.
The recommendations were seconded by Councillor Davis.
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 26 February 2020 as detailed below.
1.2 That the General Fund Capital Budget proposals for 2020/21 and four-year outlook set out in the report be endorsed for recommendation to Council on 26 February 2020.
1.3 That the General Fund Budget for 2020/21 is based on an increase to Council Tax of £5 per annum (10p per week) for a Band D property, which is equivalent to 3.1%, to support the Council’s overall financial position.
1.4 That from 1 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 26 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.