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Council was reminded that the Local Authorities (Standing Orders) (England) Regulations 2014 require Local Authorities to take recorded votes at Budget Council meetings in relation to the item regarding the setting of the Local Authorities Budget.
Ahead of making decisions in relation to setting the Council Tax each year, the Chief Financial Officer is required to report to the Council on the robustness of the estimates made for the purpose of the calculations along with the adequacy of reserves held by the Council.
In respect of the Robustness of the Estimates – the report provides details of the process carried out in producing the budget which has being presented for approval this evening.
It highlights a number of the financial risks facing the authority including:
- The level of income from a number of demand led services for example car parking, planning, crematorium income and waste and recycling credits, upon which the budget is reliant, for which external factors can have a significant impact on;
- In addition it also flags the risks around the delivery of planned savings and additional income that are factored into the budget for the year;
- Local Authority funding and in particular the risks around the retention of business rates and the impact of current and new appeals on the level of income retained locally.
In order to mitigate these risks estimates should be put together within a robust framework which reflects past financial performance, along with current service delivery which is regularly monitored within developed financial control processes.
The report highlights that there have been improvements to the financial reporting that is provided to Members during the year, although there are still further developments required to ensure a more proactive approach to budgetary control and financial management.
The budget for 2017/18 has been informed by the in-year monitoring position in addition to input from EMT, budget managers and through budget workshops with members of the Policy and Resources Committee.
The robustness of the estimates is not the only factor that should be considered as part of the approval of the budget for the coming year, the adequacy of the Reserves also needs to be considered.
In relation to the Adequacy of Reserves - the report provides a commentary on the adequacy of reserves held by the Council, including both earmarked and general reserves.
The policy framework for reserves outlines the process for determining the minimum level of general reserve which takes into account a number of factors, the recommended minimum level of the general reserve for the coming year is £2.5million.
When providing the opinion of the Chief Finance Officer on the adequacy of reserves, the balance of the general reserve is not considered in isolation but alongside:
- the level of earmarked reserves
- the robustness of the estimates that are presented for approval and used for calculating the Council tax
- and the level of financial risks facing the authority.
In conclusion, it is therefore the opinion as the Chief Financial Officer that,
- there is sufficient contingency within the current general reserve balance and the overall level of reserves held remains adequate in the short to medium term.
In discussing the Budget, Councillor Wainwright commented that he would be reluctantly supporting the budget and also expressed his thanks and appreciation to the Section 151 Officer and her team for the production of the Councils budget.
Proposer : Councillor Plant
Seconder : Councillor Carpenter
(1) That the 2017/18 General Fund revenue budget as detailed at Appendix A of the report be approved.
(2) That the fees and charges as detailed at Appendix D of the report be approved.
(3) That the Council Tax for 2017/18 for the Borough Council tax be £151.48 (for an average Band D).
(4) The Policy framework for reserves as detailed at Appendix G of the report be approved.
(5) That the updated Capital Programme and financing for 2017/18 to 2019/20 as detailed at Appendix H in the report be agreed.
(6) That Members note the current financial projections for the period 2018/19 to 2020/21.
That a recorded vote be taken on this issue as follows :-
For the Motion - Councillors Bensly, Borg, Carpenter, B Coleman, M Coleman, Fairhead, Flaxman-Taylor, Grant, Hanton, Jeal, Lawn, Mavroudis, Myers, Plant, Pratt, Reynolds, Robinson-Payne, Smith, Thirtle, Wainwright, Walker, Waters-Bunn, Weymouth, Williamson and Wright.
Against - Councillor Connell.
Abstentions - Councillors Annison, Bird, Cutting, A Grey, K Grey, Hacon, Hammond, Rodwell, Stenhouse and Walch.
CARRIED