Meeting documents
- Meeting of Cabinet, Wednesday, 8th February, 2017 6.00 pm (Item 43.)
To consider the report of the Leader of the Council.
Minutes:
Cabinet received a report which provided information affecting the Council’s revenue budget for 2017/18 in order for the Cabinet to make recommendations to Council on 1st March regarding the Council’s budget and council tax for 2017/18.
The report was divided into 5 Sections as follows:
Section A - Financial Context and Base Budget position
Section B - Investment Income and Grants
Section C - Budget Requirement and Council Tax Issues
Section D - Medium Term Financial Strategy Update
Section E - Advice of Director of Resources
The report also attached the following appendices:
Appendix A - Pension Fund Revaluation 2016
Appendix B - Updated Financial Projections
Appendix C - Chief Financial Officer Report
Appendix D - Budget Sensitivity Analysis
Appendix E - Fees and charges for 2017/18
Appendix F - Farnham Park Trust Budgets 2017/18
Section A of the report reminded the Cabinet of the approach they had agreed to budget making in the light of the funding position facing the Council in the coming years. The following table in this section showed the key figures for 2017/18:
|
|
2014/15 £’000 |
2015/16 £’000 |
2016/17 £’000 |
2017/18 £’000 |
|
Business Rate Baseline |
11,701 |
11,925 |
12,024 |
11,712 |
|
Business Rate Tariff |
-10,716 |
-10,921 |
-11,012 |
-10,680 |
|
Baseline Need |
985 |
1,004 |
1,012 |
1,032 |
|
Revenue Support Grant |
1,161 |
871 |
436 |
57 |
|
Settlement Funding Assessment |
2,146 |
1,875 |
1,448 |
1,089 |
|
Year on Year Change (£k) |
|
-271 |
-427 |
-359 |
|
Year on Year Change (%) |
|
-13% |
-23% |
-25% |
Section B explained that the Council’s Treasury Management Strategy for 2017/18 aims to deliver investment income for 2017/18 of £200k. This was a significant reduction on historic figures due to the Council’s strategic decision to undertake prudential borrowing from 2017/18 as part of the funding strategy for its Medium Term Financial Strategy.
Section C set out the amendments to the draft budget which had been made since the December Cabinet meeting and the overall effect of these changes was summarised in a table in paragraph 5.13 of the report. The Budget requirement of £7,782k would result in a council tax increase of £5 which was the maximum permitted for the Council by the Government. The draft budget proposed using reserves as follows:
· Local Development Plan, £26
· Transformation Reserve, £5k
In connection with Section D the Cabinet’s attention was drawn to the key principles of the Medium Term Financial Strategy and the main changes made since the Strategy was approved in October which related to the financing implications for the Capital Programme and revisions to the New Homes Bonus funding arrangements. The table in paragraph 5.19 summarised the updated financial projection which showed the potential future funding gap for the Authority that needed to addressed from 2018/19.
After considering the advice of the Director of Resources as set out in detail in Section E which also set out the key strategic risks facing the Council the Cabinet:
|
RECOMMEND to Council that the
1) Revenue budget for 2017/18 as summarised in the table in para 5.13 be approved.
2) following use of earmarked reserves for 2017/18 be agreed: a) Local Development Plan, £268k b) Transformation Reserve, £5k
3) a budget requirement of £7,782k, which will result in a District council tax of £153.00 for a Band D property be approved.
4) the level of fees and charges for 2017/18 as set out in Appendix E be confirmed.
5) the advice of the Director of Resources as set out in Appendix C be noted.
6) the comments in the report on the Council’s financial position in respect of the years following 2017/18 and the updated Medium Term Forecast be noted.
7) the revenue and capital budgets for 2017/18 for the Farnham Park Trust as summarised in Appendix F be agreed.
|
And RESOLVED that this report be made available to all Members of the Council in advance of the Council Tax setting meeting on 1st March, and a final report be produced for the Council meeting incorporating the information from preceptors, and the final decisions of the Cabinet on the budget.
Supporting documents:
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