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Agenda item
Revenue Budgets 2015/16 (Revised) and 2016/17, plus Capital Programme 2016/17 to 2018/19
- Meeting of Budget Cabinet (provisional), Cabinet, Monday, 15th February, 2016 6.00 pm (Item 47.)
- View the background to item 47.
(Council Decision)
Minutes:
The Assistant Director for Financial Services and Revenues presented the revenue budgets 2015/16 (revised) and 2016/17, plus the capital programme 2016/17 to 2018/19.
The revised budget set out variations in income and expenditure since the budget was set in February 2015.
The report acknowledged the reductions in external funding to the council throughout 2016/17. Significant areas of uncertainty were also identified in respect of business rate appeals and the cost of essential maintenance works to inland cliffs owned by the council, which may result in further calls on the council’s reserves over the year ahead.
In order to achieve a balanced budget, an increase of 2.08% (£5 for a Band D property) to the borough’s part of the council tax in 2016/17 was proposed. Additionally, £881,000 of the council’s reserves would be required to support the budget in 2016/17.
The Assistant Director for Financial Services and Revenues advised members that both local land charges and rental income from the council’s industrial units were above projection. However, due to the ongoing reductions in funding facing the organisation, it was necessary to continue to identify efficiencies and explore opportunities for income generation.
Councillor Chowney moved approval of the recommendations to the report, which was seconded by Councillor Davies.
RESOLVED (by 5 votes for, 0 against, with 2 abstentions) Cabinet recommends that Council: -
1) Approve the revised revenue budget for 2015/16 (Appendix A)
2) Approve the draft 2016/17 revenue budget (Appendix A)
3) Approve a 2.08% (£5 for a Band D property) increase in the borough council’s part of the council tax
4) Agree that the absolute minimum level of reserves that shall be retained be increased to £5m (plus general fund balance) from the current level of £4m
5) Approve the capital programme 2015/16 (revised) to 2018/19 (Appendix P)
6) 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
7) Approve that the use of monies identified in the budget for invest to save schemes be determined by the Assistant Director for Financial Services and Revenues in consultation with the Leader of the Council
8) 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
9) Agree that schemes marked with an asterisk in the capital programme can proceed without further reference to Cabinet or Council
10) Agree work on Priority Income and Efficiency Reviews (PIER) should continue and where possible identify a sustainable budget for a period in excess of 1 year. A mid-year review, for members and officers, to be undertaken in the light of the continuing severe government grant reductions
11) Agree the establishment of a Hardship Fund in respect of Council Tax Support
12) Approve the detailed recommendations in Appendix M, which relate to the setting of council tax in accordance with Sections 31 to 36 of the Local Government Act 1992
13) Approve that the budgets be amended as necessary to reflect the final grant figures from government (once revised) in respect of Benefit Administration Grant
The reason for this decision was:
1) Major reductions in funding in 2016/17 are set to continue to 2019/20 and possibly 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 54% 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.
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 2017/18 and beyond.
Supporting documents:
- Revenue Budgets 2015/16 (Revised) and 2016/17 plus Capital Programme 2016/17 to 2018/19, item 47. PDF 309 KB
- Appendix 1 - Draft Budget 2016/17, item 47. PDF 426 KB
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