The Cabinet
considered Report No. FIN1808, which made final
recommendations on the budget, Council Tax requirement and proposals for budget
savings for 2018/19 and included the key factors taken into account in
preparing the budget plans. The Report also set out the Strategy for the
Flexible Use of Capital Receipts, which had, previously, been
contained within a separate report.
At its meeting on 7th
December, 2017, the Council had approved the Medium Term
Financial Strategy. This included an approved range for the General Fund
balance of £1 million - £2 million and a minimum expected level for total
working balances of 5% of gross expenditure. 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. It was proposed that any changes which materially altered the
figures contained in the budget summary, particularly in respect of the local
government finance settlement figure or the business rates estimates, would be
made by the Council’s Section 151 Officer, in consultation with the Leader of
the Council and the Corporate Services Portfolio Holder, prior to consideration
of the budget by the Council on 22nd February, 2018.
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 £1.55
million to be delivered during 2018/19. The General
Fund summary showed that the revenue balances were expected to be around £1.7
million by the end of 2018/19. This was towards the top end 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 2.99% increase in a Band D charge for Council
Tax, which fell within the permissible level of increase before triggering a
local referendum. The Cabinet was advised that the
Business Rate Retention Scheme represented a volatile income stream and, for
this reason, it was necessary to maintain sufficient reserves to meet any
unforeseen shocks to the system. 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.
The Capital Programme
of £28.7 million in 2018/19 was set out in Appendix 4
of the Report. Implementation of the core Programme in 2018/19 would require
the use of £21.1 million, largely through borrowing, together with £7.6 million
use of grants and contributions, including the Better Care Fund, and an element
of developers' Section 106 contributions. The main areas where the Council
would be facing increased levels of risk and uncertainty over the medium term
were set out in Section 8 of the Report. Members were
informed that the most significant risk was the potential for the redistribution
of funding under the Fairer Funding Review, which would reallocate resources
across local authorities based on an assessment of relative needs.
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.
In response to a
question, it was confirmed by the Chief Finance
Officer that, in view of the risks faced, it would be prudent for the Council
to either maintain or increase its current level of reserves.
The Cabinet
(i)
RECOMMENDED TO THE COUNCIL that approval be
given to:
(a)
the General
Fund Revenue Budget Summary, as set out in Appendix 1 of Report No. FIN1808;
(b)
the detailed General Fund Revenue Budget,
as set out in Appendix 2 of the Report;
(c)
the additional items for inclusion
in the budget, as set out in Appendix 3 of the Report;
(d)
the Council Tax requirement of
£6,147,509 for this Council;
(e)
the Council Tax level for Rushmoor Borough
Council's purposes of £198.49 for a Band D property in 2018/19;
(f)
the Capital Programme, as set out in
Appendix 4 of the Report;
(g)
the
Strategy for the Flexible Use of Capital Receipts, as set out in Appendix 5 of
the Report;
(h)
the
Head of Financial Services' Report under Section 25 of the Local Government
Act, 2003, as set out in Section 9 of the Report;
(i)
the holding of reserves and the use
of the Service Improvement Fund, as set out in the Report; and
(ii) RESOLVED that authority be delegated to the Council’s Section 151 Officer, in
consultation with the Leader of the Council and the Corporate Services
Portfolio Holder, 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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