The Cabinet
considered the Head of Financial Services’ Report No. FIN1603, as amended at
the meeting, which made final recommendations on the budget, Council Tax
requirement and proposals for budget savings for 2016/17. The Report also set
out the General Fund revenue budget summary, detailed base revenue budgets in
Cabinet portfolio order, lists of additional items for inclusion in the budget
and the Capital Programme.
At its meeting on
17th November, 2015, the Cabinet had considered and endorsed
the Head of Financial Services’ Report No. FIN1518, which had included the
Council's Medium Term Financial Strategy for 2015/16 – 2018/19 and set out the
high level strategic financial direction for the Council, after taking account
of the Medium Term Financial Forecast.
The
main areas where the Council would be facing increased levels of risk and
uncertainty over the medium term were set out in the Report, which also
outlined the way in which these increased risks would be mitigated by maintaining
current reserves, such as the Stability and Resilience Reserve, to protect the
Council from adverse fluctuations in its financial position and the Service
Improvement Fund, to ensure sufficient resources were available to progress key
invest-to-save projects. This would enable the Council to take a strategic, longer term approach that built upon the Council’s 8 Point
Plan, focusing on key projects that would contribute towards the savings
required to maintain a balanced budget, while moving the Council towards
financial stability in the medium to long term.
The Cabinet was advised that the Report had been prepared on the basis
that there would be no change to the provisional local government finance
settlement figure. Any changes which materially altered the
figures contained in the budget summary, particularly in respect of the
local government finance settlement figure or the operation of the Business
Rates Retention Scheme, would be made by the Council’s Section 151 Officer, in
consultation with the Leader of the Council, under the delegation arrangements
agreed by the Council on 20th January, 2014.
The update to the
Report provided a revised General Fund Summary due to the finalisation of the
Council’s estimates for business rates for both 2015/16 and 2016/17, as
reported to DCLG via the submitted NNDR1 form.
The General Fund
Revenue Budget would enable the Council to deliver services at similar to
current levels and identified reductions in the level of net spending of
£900,000, to be delivered during 2016/17. The General
Fund summary showed that the revenue balances were expected
to be around £1.5 million by the end of 2016/17. This was at the mid-point of
the approved range of balances of £1 million - £2 million and was deemed to be acceptable given the levels of risks and uncertainty
that had been identified. The General Fund Revenue Budget assumed a 1.99%
increase in Council Tax, which accorded with Government policy assumptions and
fell within the permissible level of increase before triggering a local
referendum. This equated to an increase of £3.66 per annum for a Band D
property. The Cabinet was advised that the Business
Rate Retention Scheme represented a volatile income stream and, for this
reason, the budget proposals included a transfer of £800,000 to the Stability
and Resilience Reserve, which had been set up during 2012/13 to manage the
increased level of risk and provide protection against potentially adverse
fluctuations. It was reported that uncertainty over the time
period that successful Business Rate appeals might be backdated
continued to represent a significant risk to the Council. Future changes to the
New Homes Bonus and the pace and extent of the Council’s invest-to-save
programme and regeneration plans would bring further potential pressures to the
revenue budget over the medium term. Additional items for inclusion in the
budget had been kept to a minimum and were only included where they had been
identified as having a high priority in terms of achieving the Council's aims.
These items were expected to total £44,350 in
2016/17.
The Capital Programme
of £8.8 million in 2016/17 was set out in Appendix 4
of the Report. The use of revenue
contributions of £550,000 to capital spending would continue to support a
sustainable Capital Programme.
Implementation of the core Programme in 2016/17 would require the use of
£5.4 million in capital receipts, together with £2.6 million use of developers'
Section 106 contributions and income from other capital grants. In addition,
the Programme would be supported by revenue
contributions to improvement grants of £200,000.
Under Section 25 of
the Local Government Act, 2003, the Head of Financial Services, being the
Council's Chief Finance Officer, was required to report to the Council on the robustness
of the estimates contained in the budget and the adequacy of the reserves
maintained by the Council. The Council had to have regard to this report when
making its decisions on the budget. The Chief Finance Officer was satisfied
that the budget was robust and that it was supported
by adequate reserves.
The
Cabinet
(i)
RECOMMENDED TO THE COUNCIL that approval be
given to:
(a)
the General Fund Revenue Budget Summary, as set
out in the amended Appendix 1 of the Head of Financial Services’ Report No. FIN1603;
(b)
the
detailed General Fund Revenue Budget Summary, as set out in Appendix 2;
(c)
the
additional items for inclusion in the budget, as set out in Appendix 3;
(d)
the
Council Tax requirement of £5,664,404 for this Council;
(e)
the
Council Tax level for Rushmoor Borough Council's
purposes of £187.73 for a Band D property in 2016/17;
(f)
the
Capital Programme, as set out in Appendix 4;
(g)
the
Head of Financial Services' Report under Section 25 of the Local Government
Act, 2003, as set out in the Report;
(h)
the
holding of reserves, as set out in the Report;
(ii)
the
delegation of authority to the Council’s Section 151 Officer, in consultation with the Leader of the
Council and the Cabinet Member for
Corporate Services, to consider and accept, or otherwise,
the Government’s four-year settlement offer; and
RESOLVED that authority be
delegated to the Council’s Section 151 Officer, in consultation with the
Leader of the Council and the Cabinet Member for Corporate Services, to make
any necessary changes to the General Fund Summary arising from the final
confirmation of the Local Government Finance Settlement and the Business Rates
Retention Scheme estimates.
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