The Cabinet
considered the Head of Financial Services’ Report No. FIN1708,
which made final recommendations on the budget, Council Tax requirement and
proposals for budget savings for 2017/18. 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
20th September, 2016, the Cabinet had considered and
endorsed the Head of Financial Services’ Report No. FIN1619 which had included
the Council's Medium Term Financial Strategy for 2016/17 – 2019/20 and had 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 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
£550,000, to be delivered during 2017/18. The General
Fund summary showed that the revenue balances were expected
to be marginally above £1.5 million by the end of 2017/18. 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
£5 increase in a Band D charge for 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 2.66% 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, 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. 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 £63,010 in 2017/18.
The Capital Programme
of £13.6 million in 2017/18 was set out in Appendix 4
of the Report. The Programme no longer
included contributions from the Council’s revenue account
as these would now be used to cover borrowing costs, when required.
Implementation of the core Programme in 2017/18 would require the use of £10.3
million in capital receipts or from borrowing, together with £3.3 million use
of developers' Section 106 contributions and income from other capital grants.
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 Appendix 1 of the Head of Financial
Services’ Report No. FIN1708;
(b)
the detailed General Fund Revenue
Budget Summary, 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
£5,863,664 for this Council;
(e)
the Council Tax level for Rushmoor
Borough Council's purposes of £192.73 for a Band D property in 2017/18;
(f)
the Capital Programme, as set out in
Appendix 4 of the Report;
(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; and
(ii) 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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