Agenda item

Budget and Policy Framework - General Fund Revenue Budget

Minutes:

(Cabinet Member with Special Responsibility Councillor Roger Mace)

 

The Corporate Director (Finance and Performance) and Head of Financial Services presented a joint report that provided information on the latest budget position for current and future years, to allow Cabinet to make recommendations to Council on Council Tax levels for 2008/09. 

 

A revised Appendix F was circulated at the meeting for Members’ consideration. 

 

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

 

Options were dependent very much on Members’ views on spending priorities balanced against Council Tax levels.  As such, a full options analysis could only be undertaken once any alternative proposals were known and it should be noted that Officers may require more time in order to do this.  Outline options were highlighted within the report, however.

 

        With regard to the Revised Budget and resulting underspending, Cabinet could consider other proposals that may influence the Revised Budget for the year, or it could consider leaving the underspent resources in General Fund Balances.

 

        In terms of surplus balances generally, it could consider retaining balances at a higher level than the minimum or a different phased use of balances.

 

        Regarding Council Tax increases, various options were set out at section 6 of the report.  In considering these, Members should have regard to the impact on service delivery, the need to make savings or provide for growth, the impact on future years and the likelihood of capping.

 

        With regard to special expenses and other items for noting, no options were presented. 

 

With regard to options to produce a budget in line with preferred Council Tax levels, any proposals put forward by Cabinet should be considered alongside the development of Cabinet priorities, and emphasis should be very much on achieving recurring reductions to the revenue budget, and avoiding any “unidentified” savings targets that undermine the robustness of the budget and financial planning arrangements generally. 

 

Under the Constitution, Cabinet was required to put forward budget proposals for Council’s consideration, in time for them to be referred back as appropriate.  This is why recommendations were required to feed into the Council meeting on 6th  February, 2008 prior to the actual Budget Council. 

 

The Officer Preferred options were as reflected in the report’s recommendations. 

 

It was moved by Councillor Roger Mace and seconded by Councillor Evelyn Archer: -

 

“That the recommendations (1) to (8), as set out in the report, together with the following additional recommendations, be approved. 

 

9 (a)  That Cabinet approve the savings and growth proposals set out in the revised Appendix F to be included in the revenue budget recommendations to Council on February 6th 2008. 

 

9 (b)  That Cabinet recommend to Council that the City Council Tax increase for 2008/09 be 4.5% for the non-parished areas of the district. 

 

9 (c)  That, in the event that there be a net budgetary impact arising from the issues referred to in paragraph 3.4 of the report, or the actual revenue finance settlement, it should be met initially from, or contribute to, balances, reserves, or provisions. 

 

By way of amendment it was moved by Councillor Jon Barry and seconded by Councillor Maia Whitelegg: -

 

“That 9 (c) be amended with the insertion of the words “considered in future meetings of Cabinet and Council” after the word “be” and the remaining words deleted.”

 

3 Members (Councillors Jon Barry, John Gilbert and Maia Whitelegg) voted for the amendment, 4 Members (Councillors Evelyn Archer, Tony Johnson, David Kerr and Roger Mace) voted against and 3 Members (Councillors June Ashworth, Eileen Blamire and Abbott Bryning) abstained from voting, whereupon the Chairman declared the amendment to be lost. 

 

Members then voted as follows:

 

Resolved:

 

(5 Members voted in favour (Councillors Evelyn Archer, June Ashworth, Tony Johnson, David Kerr and Roger Mace), 2 Members voted against (Councillors Jon Barry and Maia Whitelegg) and 3 Members abstained from voting (Councillors Eileen Blamire, Abbott Bryning and John Gilbert)

 

(1)    That the 2007/08 Revised Budget of £22.034M be referred on to Council for approval, with the net underspend of £275K being transferred into Balances. 

 

(2)     That Cabinet notes the position regarding the Local Government Finance Settlement and capping. 

 

(3)     That Cabinet recommends to Council that the minimum level of General Fund Balances be retained at £1M from 1st April 2008.

 

(4)     That Cabinet approves the reassessment of other earmarked reserves and provisions as set out in Appendix E to the report. 

 

(5)     That Cabinet notes the proposals regarding the declaration of Special Expenses. 

 

(6)     That Cabinet notes the position regarding Pension Employer Contribution Rates for future years. 

 

(7)     That Cabinet notes the Council Tax Base of 43,150 Band D properties for 2008/09. 

 

(8)     That, subject to all the above, Cabinet notes the resulting draft 2008/09 General Fund Revenue Budget of £23.274M, and the indicative spending projections of £24.706M for 2009/10 and £26.242M for 2010/11. 

 

9 (a)  That Cabinet approve the savings and growth proposals, set out in the revised Appendix F, to be included in the revenue budget recommendations to Council on February 6th 2008. 

 

9 (b)  That Cabinet recommend to Council that the City Council Tax increase for 2008/09 be 4.5% for the non-parished areas of the district. 

 

9 (c)  That, in the event that there be a net budgetary impact arising from the issues referred to in paragraph 3.4 of the report, or the actual revenue finance settlement, it should be met initially from, or contribute to, balances, reserves, or provisions. 

 

Officers responsible for effecting the decision:

 

Corporate Director (Finance and Performance). 

Head of Financial Services. 

 

Reason for making the decision:

 

The decision takes account of the progress that has been made in meeting the targets included in the Medium Term Financial Strategy, and sets out proposals in order for Cabinet to make recommendations to Council on 6th February 2008 regarding the level of Council Tax for 2008/09.  The proposals are aligned with Cabinet priorities agreed after public consultation and used as the basis for the proposed 2008/09 Corporate Plan.