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.