Minutes:
(Cabinet Member with Special Responsibility Councillor Mace)
The Corporate Director (Finance and Performance) and Head of Financial Services submitted a joint report providing information on the General Fund Revenue Budget, to allow Cabinet to make recommendations to Council on Council Tax levels for 2009/10.
The options and options analysis including risk assessment were set out in the report as follows:
Options are 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 are known and it should be noted that Officers may require more time in order to do this. Outline options are highlighted below, however.
· With regard to the Revised Budget and resulting overspending, Cabinet could consider other proposals that may influence the Revised Budget for the year.
· 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 are 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 items for noting, no options are 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 is required to put forward budget proposals for Council’s consideration, in time for them to be referred back as appropriate. This is why recommendations are required to feed into the Council meeting on 04 February, prior to the actual Budget Council.
The Officer Preferred options are as reflected in the report’s recommendations.
It was proposed by Councillor Barry and seconded by Councillor Gilbert:
“That Cabinet recommend a Council Tax increase of 4% to Council for 2009/10.”
Members then voted as follows:
Resolved:
(7 Members (Councillors Archer, Barry, Blamire, Bryning, Burns, Gilbert and Kerr) voted in favour and 2 Members (Councillors Charles and Mace) voted against)
(1) That Cabinet recommend a Council Tax increase of 4% to Council for 2009/10.
It was proposed by Councillor Mace and seconded by Councillor Kerr:
“That recommendations 1-6 in the General Fund Revenue Budget report be approved”.
It was proposed by Councillor Barry that “Cabinet receive an options report on how the City Council can address the public inquiry into the Canal Corridor”.
However, it was noted that there was no seconder to the proposition and, therefore, the proposition was deemed to have fallen.
Councillor Mace proposed and Councillor Charles seconded:
“(1) That Cabinet supports in principle the savings items set out in Appendix F to the report, and the growth items also included, but that the growth items be subject to further consideration, depending on sufficient progress being made to achieve the budget savings required to meet any approved Council Tax increase.
(2) That further consideration of budget proposals be undertaken by Star Chamber, including the use of other earmarked reserves as set out in 4.5 of the report, in order that a fully balanced set of revenue budget proposals can be developed for formal consideration by Cabinet at its February meeting.
(3) That Council considers the General Fund revenue budget proposals to date, for initial consideration, subject to the decisions made at Cabinet today.”
Resolved unanimously:
(2) That the 2008/09 Revised Budget of £23.782M be referred on to Council for approval, with the net overspending of £571K being met from Balances.
(3) That Cabinet notes the position regarding the Local Government Finance Settlement and capping.
(4) That Cabinet recommends to Council that the minimum level of General Fund Balances be retained at £1M from 01 April 2009.
(5) That Cabinet approves the reassessment of other earmarked reserves and provisions as set out in section 4 of the report.
(6) That Cabinet notes the Council Tax Base of 43,200 Band D properties for 2009/10.
(7) That subject to all the above, Cabinet notes the resulting draft 2009/10 General Fund Revenue Budget of £25.701M, and the indicative spending projections of £27.040M for 2010/11 and £27.987M for 2011/12.
(7 Members (Councillors Archer, Blamire, Bryning, Burns, Charles, Kerr and Mace) voted in favour and 1 Member (Councillor Barry) abstained)
Note: Councillor Gilbert was not present when the vote was taken.
(8) That Cabinet supports in principle the savings items set out in Appendix F to the report, and the growth items also included, but that the growth items be subject to further consideration, depending on sufficient progress being made to achieve the budget savings required to meet any approved Council Tax increase.
(9) That further consideration of budget proposals be undertaken by Star Chamber, including the use of other earmarked reserves as set out in 4.5 of the report, in order that a fully balanced set of revenue budget proposals can be developed for formal consideration by Cabinet at its February meeting.
(10) That Council considers the General Fund revenue budget proposals to date, for initial consideration, subject to the decisions made at Cabinet today.
Officers responsible for effecting the decision:
Corporate Director (Finance and Performance)
Head of Financial Services
Reasons for making the decision:
This set of decisions is part of the process towards setting a Council Tax level for 2009/10 and is in line with the Corporate Plan objective of keeping the Council Tax rise to a maximum of 4%.