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Agenda item
Revenue Budgets 2017/18 (Revised) and 2018/19, plus Capital Programme 2018/19 to 2020/21
- Meeting of Budget Meeting, Cabinet, Monday, 12th February, 2018 6.00 pm (Item 64.)
- View the background to item 64.
(Council Decision)
Minutes:
The Assistant Director, Financial Services and Revenues presented a report on the revenue budgets 2017/18 (revised) and 2018/19, plus the capital programme for 2018/19 to 2020/21.
The report reflected the final grant settlement figures, which had been received from the government on 6 February 2018. The Assistant Director, Financial Services and Revenues, commented that it may be necessary to revise the figures set out in appendix M of the report, once East Sussex Fire and Rescue Service had met to consider their council tax precept.
The report gave an overview of the key factors impacting on the budget and updated members on the council’s progress to achieve further efficiencies and generate additional income.
Councillor Chowney proposed approval of the recommendations to the report, which was seconded by Councillor Forward.
RESOLVED (6 votes for, 2 votes against) that:
Cabinet recommend to Full Council to:
(i) Approve the revised revenue budget for 2018/18 (Appendix A)
(ii) Approve the draft 2018/19 revenue budget (Appendix A)
(iii) Approve a 2.99% increase in the Borough Council’s part of the Council Tax
(iv) Agree that the absolute minimum level of reserves that shall be retained be £6m (plus General Fund Balance) i.e an increase of £1m from 2017/18
(v) Approve the Capital Programme 2017/18 (revised) to 2020/21 (Appendix P)
(vi) Approve the proposed expenditure from the Renewal and Repairs Reserve, and Information Technology Reserve (Appendices J and I respectively) and those items from other reserves shown in Appendix H that can proceed without further reference to Cabinet or Council
(vii) Approve that the use of monies in the budget and Reserves for “Invest to Save” schemes be determined by the Chief Finance Officer in consultation with the Leader of the Council.
(viii) Approve the revised Land and Property Disposal Programme (Appendix L), and agree that disposals can be brought forward if market conditions make it sensible to do so.
(ix) Agree that schemes marked with asterisk in the Capital Programme can proceed without further reference to Cabinet or Council
(x) Agree that work on Priority Income and Efficiency Reviews (PIER) through the Strategic Budget Group should continue, and where possible identify a sustainable budget for a period in excess of one year. A mid-year review, for members and officers, to be undertaken in the light of the continuing severe government grant reductions
(xi) Approve the detailed recommendations in Appendix M, which relate to the setting of council Tax in accordance with Sections 31 to 36 to the Local Government act 1992 (updated for Full Council)
(xii) Approve that the budget be amended as necessary to reflect the final grant figures including Disabled Facility Grants.
(xiii) Approve an increase in the Council Tax premium chargeable for long term empty properties to 200% (from 150%), subject to the required legislation being in place along with sufficient time to undertake annual billing.
The reason for this decision was:
1. Major reductions in funding in 2018/19 are set to continue into 2019/20 and beyond and this will impact heavily upon the Council’s ability to provide services and grants across all areas of existing activity.
2. Since 2010/11 funding has been reduced by more than 65% in cash terms on a like for like basis. To ensure key corporate priorities are achieved it remains imperative that the limited resources available are properly targeted.
3. The Council needs to be in a position to match its available resources to its priorities across the medium term and to maintain sufficient reserves and capacity to deal with potentially large and unexpected events in addition to fluctuations in income and expenditure levels.
4. The Council is exposed to a much greater degree of volatility in the level of funding it receives through Non Domestic Rates. In addition it is also exposed to a much higher degree of volatility in terms of Council Tax Support claims – the Council now receiving an upfront sum as part of the annual grant settlement rather than reimbursement of actual costs. The potential downside risks of Brexit and the increased reliance on income streams provide further potential volatility to the Council's future funding.
5. Further reductions in grant funding have major implications for the Council and as such work needs to continue to identify and make savings in order to produce balanced budgets in 2018/19 and beyond.
Supporting documents:
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