Agenda item

General Fund Revenue Budget and Capital Programme 2019/2020 and Medium Term Financial Plan 2019/2020 - 2022/2023

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Decision:

 

2.1. Cabinet considered and welcomed the feedback from consultation with the public, organisations and the Overview and Scrutiny and Audit Committees (detailed at appendices 9, 10 and 11 of the report).

2.2. Cabinet agreed the changes to the proposed budget (detailed at paragraph 3.2.10 of the report), in light of technical adjustments and the Local Government Funding Settlement.

2.3. Cabinet recommended to Council the general fund revenue budget for 2019/20 of £27.495m (excluding parishes) for its own purposes (detailed in paragraph 3.2.8 and appendices 1 and 2 of the report).

2.4. Cabinet agreed that the Council be recommended to increase the council tax for its own purposes (excluding county, police, fire and parish precepts) by £6.56 (2.99%) per year per band D property for 2019/20.

2.5. Cabinet recommended to Council that they approve the general fund capital programme and proposed financing for 2019/20, including the inclusion of schemes in the development pool, as set out in appendix 4 of the report.

2.6. Cabinet agreed that Council be recommended to confirm a minimum level of general fund reserves of £4.0m for 2019/20, having regard to the outcome of the financial risk assessment, and also noted the position on earmarked reserves (appendix 7 of the report).

2.7. Cabinet delegated authority to the Chief Finance Officer in consultation with the Cabinet Member for Finance, and where appropriate the relevant Head of Service and Cabinet Member to:

·                     Transfer monies to/from earmarked reserves should that become necessary during the financial year.

·                     Update prudential indicators in both the prudential indicators report and treasury strategy report to Council, for any budget changes that impact on these.

2.8. Cabinet approved the draft fees and charges set out in appendix 8 of the report, including immediate implementation where appropriate.

2.9. Cabinet recommended to Council that they approve the treasury management strategy (and associated appendices) for 2019/20 at appendix 5 of this report.

2.10.     Cabinet delegated authority to the Council’s Chief Finance Officer, in liaison with the Cabinet Member for Finance, to make any temporary changes needed to the Council’s borrowing and investment strategy to enable the authority to meet its obligations.

2.11.     Cabinet delegated authority to the Chief Finance Officer to make any technical changes necessary to the papers for the Council meeting of 25 February 2019, including changes to the finance settlement and change relating to parish precepts and council tax levels associated with those changes.

Minutes:

Councillor Eldred as the relevant Cabinet Member submitted a report and pointed out that £1 million had been added into the budget to address homelessness issues rather than using reserves.  It was proposed to increase Council Tax by 2.99%, which equated to an increase of 13p per week for a typical Band D property. 

Councillor Beardsworth expressed concern that only £1 million had been allocated to homelessness, when the overspend was £1.5 million.  Councillor Eldred stated that the growth and restructuring of the Housing Options and Advice Team should reduce numbers of homeless people, cutting back on temporary accommodation costs and reducing the funding required, although more money could be made available if needed. 

Councillor Beardsworth pointed out that most respondents to the budget consultation had found it difficult to understand.  Since this was likely to be the last NBC budget, Councillor Eldred stated that these concerns would need to be addressed by the new administration.

In response to requests, Councillor Eldred agreed to circulate a copy of the Equalities Report to all Members the following day.

Councillor Brian Markham referred to Appendix 9 (page 98-103) and stated that it was difficult to respond to a draft budget.  There were proposals to increase parking charges, but no detail was given.  He considered that information should have been shared earlier and a consultation carried out.

Councillor Stone stated that she had championed a strategy for investments for many years, but wondered about the timeliness of such a strategy in view of the likely end of NBC.  For example, Albion House had been purchased – were there plans for this?  Councillor Hadland pointed out that although the strategic purpose for which Albion House had been purchased had not come to fruition, the value of the property had increased significantly.

Councillor Stone also noted that one of the ameliorations for homelessness in previous budgets, the Social Lettings Agency, was not in the current budget and requested an update.  Councillor Hibbert stated that there would be a report to Cabinet on this issue. 

Councillor Birch noted the reference to Section 106 funding in the table on page 13 of the report.  She queried where the funds were held and whether they could be used to help voluntary organisations sustain services.  The Chief Finance Officer pointed out that a comprehensive review of Section 106 schemes had been conducted.  There were constraints on how money could be spent, but funds were ring-fenced and would be protected throughout the move to unitary.  It was confirmed that Councillors could be involved in discussions regarding use of funds in their area – although the amounts available were small and often designated for a specific purpose.  Councillor Larratt advised that ideally Members should be involved at the pre-planning stage.

Councillor Ashraf addressed Cabinet and referred to the list of new schemes on page 29.  She asked whether St James Mill Area Improvements included the proposed link road, and if not, why it had been removed from the budget.  Councillor Eldred stated that the money for St James Mill related to tidying up the whole area.  The link road had incurred additional costs, which were being considered in more detail.  Councillor Nunn stated that factors such as levels of contamination in the ground and water run-off had resulted in extra costs which were currently unable to be funded.

Councillor Eldred pointed out an amendment to the report as follows:

Page 24, Appendix 3 – HRA Capital Funding – 4th Bullet point

READS – ‘Borrowing – there is some limited scope for prudential borrowing within HRA, although this is subject to a cap as determined by central government.’

SHOULD READ – ‘Borrowing – there is scope for prudential borrowing within HRA, this is no longer limited to the cap by central government.’

RESOLVED:

2.1. Cabinet considered and welcomed the feedback from consultation with the public, organisations and the Overview and Scrutiny and Audit Committees (detailed at appendices 9, 10 and 11 of the report).

2.2. Cabinet agreed the changes to the proposed budget (detailed at paragraph 3.2.10 of the report), in light of technical adjustments and the Local Government Funding Settlement.

2.3. Cabinet recommended to Council the general fund revenue budget for 2019/20 of £27.495m (excluding parishes) for its own purposes (detailed in paragraph 3.2.8 and appendices 1 and 2 of the report).

2.4. Cabinet agreed that the Council be recommended to increase the council tax for its own purposes (excluding county, police, fire and parish precepts) by £6.56 (2.99%) per year per band D property for 2019/20.

2.5. Cabinet recommended to Council that they approve the general fund capital programme and proposed financing for 2019/20, including the inclusion of schemes in the development pool, as set out in appendix 4 of the report.

2.6. Cabinet agreed that Council be recommended to confirm a minimum level of general fund reserves of £4.0m for 2019/20, having regard to the outcome of the financial risk assessment, and also noted the position on earmarked reserves (appendix 7 of the report).

2.7. Cabinet delegated authority to the Chief Finance Officer in consultation with the Cabinet Member for Finance, and where appropriate the relevant Head of Service and Cabinet Member to:

·                     Transfer monies to/from earmarked reserves should that become necessary during the financial year.

·                     Update prudential indicators in both the prudential indicators report and treasury strategy report to Council, for any budget changes that impact on these.

2.8. Cabinet approved the draft fees and charges set out in appendix 8 of the report, including immediate implementation where appropriate.

2.9. Cabinet recommended to Council that they approve the treasury management strategy (and associated appendices) for 2019/20 at appendix 5 of this report.

2.10.     Cabinet delegated authority to the Council’s Chief Finance Officer, in liaison with the Cabinet Member for Finance, to make any temporary changes needed to the Council’s borrowing and investment strategy to enable the authority to meet its obligations.

2.11.     Cabinet delegated authority to the Chief Finance Officer to make any technical changes necessary to the papers for the Council meeting of 25 February 2019, including changes to the finance settlement and change relating to parish precepts and council tax levels associated with those changes.

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