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Agenda item
Revenue Budgets 2016-17 (Revised) and 2017-18, plus Capital Programme 2017-18 to 2019-20
- Meeting of Budget Cabinet (provisional), Cabinet, Monday, 13th February, 2017 6.00 pm (Item 71.)
- View the background to item 71.
(Council Decision)
Minutes:
The Assistant Director, Financial Services and Revenues, presented the revenue budgets 2016/17 (revised) and 2017/18, plus the capital programme 2017/18 to 2019/20.
The revised budget set out variations in income and expenditure since the budget was set in February 2016.
The report acknowledged continued reductions to the council’s external funding, and the ongoing activities which were being undertaken to achieve efficiency savings and generate additional income. These activities had resulted in the call on the council’s reserves to balance the 2017/18 budget being significantly less than originally anticipated.
The Assistant Director, Financial Services and Revenues, advised of an amendment to the draft budget in respect of additional expenditure under the countryside stewardship budget. As a result, the total call on reserves would increase to £76,000. The final settlement figures had not yet been received from the government, along with the Disabled Facility Grants and Discretionary Housing Payments, and it may therefore be necessary to adjust the figures set out in the draft budget.
The Leader of the Council advised of two further amendments to the budget proposals. The council would continue to provide funding to the Dial-A-Ride service for a further year. Over the coming year the council would work with the operator of Dial-A-Ride to explore opportunities to make the service more sustainable, including commercial sponsorship. The proposal to close the public conveniences at Ore Village was also deleted from the draft budget.
Councillor Chowney proposed approval of the recommendation to the Assistant Director, Financial Services and Revenues, report subject to the above amendments, which was seconded by Councillor Davies.
RESOLVED (by 6 votes for, 0 against, with 2 abstentions) that Cabinet recommend to Full Council to: -
1. Approve the revised revenue budget 2016/17 (Appendix A).
2. Approve the draft 2017/18 revenue budget (Appendix A).
3. Approve a 2.04% (£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 £5m (plus General Fund Balance) i.e. no change from 2016/17.
5. Approve the Capital Programme 2016/17 (revised) to 2019/20 (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 for other reserves shown in Appendix H that can proceed without further reference to Cabinet or Council.
7. Approve that the use of monies in the budget and Reserves for “Invest to Save” schemes be determined by the Assistant Director, 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 that work on Priority Income and Efficiency Reviews (PIER) 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.
11.Approve the Car Parking charges for 2017/18 as detailed in Appendix N.
12.Approve the detailed recommendations in Appendix M, which relate to the setting of the Council Tax in accordance with Sections 31 to 36 of the Local Government Act 1992 (updated for Full Council).
13.Approve that the budget be amended as necessary to reflect the final grant figures from government (once received) and in respect of Discretionary Housing Payments and Disabled Facility Grants.
14.Approve the reduction for the Council Tax Prescribed Class D Properties i.e. those which are vacant and are undergoing “major repair work” or “structural alteration” to nil %.
The reason for this decision was:
1. Major reductions in funding in 2017/18 are set to continue to 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 50% 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 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 in 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:
- Budget Report 2017-18 - Cabinet report February 2017 - Final, item 71. PDF 291 KB
- 1. Revised Budget Summary 2016-17 and 2017-18 Draft 5 - post consultation DU, item 71. PDF 585 KB
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