Agenda item

REVENUE BUDGET, CAPITAL PROGRAMME AND COUNCIL TAX LEVEL

To consider Report No. FIN1909 (copy attached), which makes recommendations on the budget, Council Tax Requirement and proposals for budget savings for 2019/20, for submission to the Council on 21st February, 2019.

Presented By:Cllr Gareth Lyon, Corporate and Democratic Services Portfolio Holder

Minutes:

The Cabinet considered Report No. FIN1909, which made recommendations on the budget, Council Tax requirement and proposals for budget savings for 2019/20.

 

The Cabinet was reminded that, at its meeting on 16th October, 2018, the budget framework set out in the Medium Term Financial Strategy 2019-22 had been approved. The Strategy provided a risk-based General Fund balance of around £2 million, with 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 and Democratic Services Portfolio Holder, prior to consideration of the budget by the Council on 21st February, 2019.

 

The General Fund Revenue Budget would enable the Council, in broad terms, to maintain current service delivery, whilst identifying reductions in the level of net expenditure of £3.931 million to be delivered during 2019/20. The General Fund summary showed that the revenue balances were expected to be maintained at £2 million by the end of 2019/20. This was at 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 continued to represent a volatile income stream and, for this reason, it was necessary to maintain sufficient reserves to meet any unforeseen shocks to the system.

 

The Capital Programme of £70.231 million in 2019/20 was set out in Appendix 4 of the Report. Implementation of the core Programme in 2019/20 would require the use of £58.958 million of the Council’s resources, largely through borrowing, together with £11.272 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 9 of the Report. Members were informed that the most significant risks were the move to a 75% business rates retention model and 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 Executive Head of Finance, being the Council's Chief Financial Officer, was required to report to the Council on the robustness of the estimates contained in the budget and the adequacy of the financial reserves maintained by the Council. The Council had to have regard to this report when making its decisions on the budget. The Chief Financial 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 Appendix 1 of Report No. FIN1909;

 

(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 £6,409,171 for this Council;

 

(e)                      the Council Tax level for Rushmoor Borough Council's purposes of £204.42 for a Band D property in 2019/20;

 

(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 Executive Head of Finance's Report under Section 25 of the Local Government Act, 2003, as set out in Section 10 of the Report;

 

(i)                        the additional transfers to earmarked reserves in 2019/20 and the holding of reserves, 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 and Democratic 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.

Supporting documents: