Issue - meetings

(Cabinet Member with Special Responsibility Councillor Langhorn)

Report of the Deputy Chief Executive and Head of Financial Services (to follow)

(Cabinet Member with Special Responsibility Councillor Langhorn)

Cabinet received a report from the Head of Financial Services with regard to the latest position following Council’s consideration of the Budget and Policy Framework at its meeting held on 02 February, and to make recommendations back to Council in order to complete the budget setting process for 2011/12.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Cabinet was requested to finalise its preferred revenue budget and capital programme proposals for referral on to Council, using the latest information as set out in the report attached to the agenda.

Revenue Budget

As Council had now determined the City Council Tax Rate for 2011/12, there were no options to change the total net revenue budget for next year (recommended at £21.481M) but Cabinet now needed to put forward detailed budget proposals that added back to that amount.  Detailed options would be dependent very much on Members’ views on spending priorities.  The Head of Financial Services (as s151 Officer) advised that emphasis should be very much on achieving recurring reductions to the revenue budget.

Capital Programme

Cabinet might adjust its capital investment and financing proposals to reflect spending commitments and priorities but overall its proposals for 2010/11 and 2011/12 must balance.   Whilst there was no legal requirement to have a programme balanced over the full 5-year period, it was considered good practice to do so – or at least have clear plans in place to manage the financing position over that time.  Inevitably capital investment needs and funding opportunities would change, but it was important to consider and manage stakeholder expectations regarding investment too. Setting a balanced capital programme was an iterative process, essentially balancing service delivery impact and aspirations against what the Council could afford.  The programme attached to the report represented the outcome of the work undertaken to date.

In deciding its final proposals, Cabinet was asked also to take into account the relevant basic principles of the Prudential Code, which are:

-          that the capital investment plans of local authorities were affordable, prudent and sustainable, and

-          that local strategic planning, asset management planning and proper options appraisal were supported.

Future Years’ Council Tax Targets

It was felt that there was little scope for increasing Council Tax increases targets above 2.5% for 2012/13 and beyond, assuming that the Council wishes to avoid any form of challenge.  In considering any lower target, Members should have regard to the impact on service delivery, the capacity to make savings or to provide for growth, and the impact on subsequent years – as well as the implications for tax payers.

Housing Revenue Account Budget

The extent to which Cabinet’s earlier decision on housing rents had bearing on the debate and outcome of Council needed careful consideration.  Outline options for resolving the HRA position were set out below.

Option 1:  To retain existing Revenue Budget proposals and refer them back to Council.

As previously  ...  view the full minutes text for item 110