PAPER B
Purpose
: for Decision
Committee: REPORT TO THE CABINET
Date : 21 FEBRUARY 2007
Title : REPORT OF THE CABINET MEMBER
FOR RESOURCES AND TOWN AND PARISH COUNCIL EMPOWERMENT AND THE DIRECTOR OF
FINANCE
IMPLEMENTATION
DATE: 21 FEBRUARY 2007
1. This
report deals with the Council’s revenue budget and Council Tax for the
financial year commencing 1st April 2007. At the time of despatch,
the consultation process is still underway, and the implications of the
consultation results for the Cabinet recommendation to Full Council are
therefore yet to be finalised. The detailed draft proposal, which forms the
main appendix to this report, will therefore follow as soon as it is available.
The Cabinet is asked to consider the proposal, and make an appropriate
recommendation to this evening’s Council meeting.
2. The
Council’s Revenue Support Grant settlement for 2007-08 is identical to that
which was set out in the provisional settlement 12 months ago and included in
the Medium Term Financial Plan. It represents an increase of 6.1% over the
current year, which is well above the national average of 3.7%. Once again the
Council is making a major contribution - £3.6 millions – to provide protection
for authorities which have suffered losses of Formula Grant entitlement.
3. Notwithstanding
any further decisions resulting from the consultation process, the revenue budget
once again sees a significant redirection of resources towards priority areas,
funded in the main by efficiency savings and income generation and, to a lesser
extent, redirection of resources away from areas which do not contribute
sufficiently strongly to the delivery of key outcomes. Appendix 2 shows an
analysis of this by service area, and Appendix 3 is a projection for planning
purposes through to 2010-11.
4. Once
again, the budget recommendation includes a slightly higher tax increase in
non-parished areas to cover the costs of ‘special expenses’ incurred by the
Council on services provided elsewhere by parishes. This will continue until
such time as those areas become emparished, and will in the meantime mean a
reduction in the level of double taxation across other parts of the Island.
5. Appendix
6 sets out the capital financing resources available to the Council in 2007‑08,
including borrowing for both supported capital expenditure and under the
Prudential Code which have been provided for in the draft revenue budget.
Appendix 6 also includes Prudential Borrowing Indicators, Treasury Management
Strategy and Investment Strategy, each of which need to be approved annually by
the Council.
6. The revenue and capital budgets are a financial representation of the
Council’s service delivery plans for the coming year, and must be adequate for
this purpose. Council Tax will provide more than half of the funding required
for the net revenue budget next year.
7. Consultation on the budget this year has taken the form of a resident’s
survey conducted by QA Research in July and August last year which has in turn
informed a program of facilitated focus groups drawn from both members of the
public and specific stakeholder groups. The report on the consultation results
forms Appendix 8 to this report, and will be circulated to all members as soon
as it is available. Results received so far indicate that this new approach has
produced far more helpful information than in the past.
8. The
annual budget sets the framework within which all spending decisions by the
Cabinet, Cabinet members and Directors must rest.
9. Detailed
legal comments are set out in Appendix 7 to this report.
10. The
Director of Finance is required by statute to advise the Council on the
robustness of the budget for the coming year, and the adequacy of the reserves.
His view is that provided current systems of sound financial performance
management are maintained then the budget is robust. Monitoring and management
of in-year financial performance and delivery of savings plans will be the
subject of monthly consideration by the Leader and Cabinet members, Directors
and Heads of Service. Quarterly reports will be taken to the Audit and
Performance Committee and to the Cabinet. A number of key risks that may need
to be managed in year are set out in Appendix 5.
Reserves
utilisation projected through to the end of 2010-11 is shown at Appendix 4, and
in the Director of Finance’s view provide adequate cover for planned projects
and known and likely liabilities, with reasonable provision in place to cover
uninsurable risks over the period. It will be important that levels of reserves
are monitored regularly through the financial performance management framework
described above.
RECOMMENDATION11. That
Cabinet recommend to Council the Council Tax, the Council’s Budget, and
related matters for the coming year. |
BACKGROUND PAPERS
12. IWC publication Budget 2006-07
Local Government Finance (England) Report 2007-08
13. Appendices:
Main appendix: Resolution to Full Council (to follow)
Appendix 1 Total
Expenditure, Special Expenses and Parish Precepts (to follow)
Council Tax Banding Calculation 2007/08
Appendix 2 Service
cash limits for 2007-08 (to follow)
Appendix 3 Council
Tax projections 2008-09 to 2010-11 (to follow)
Appendix 4 Summary
of reserves 2007-08 to 2010-11 (to follow)
Appendix
5 Risk assessment
Appendix
6 Capital programme,
Prudential Borrowing Indicators, Treasury Management Strategy and Investment Strategy
Appendix
7 Legal framework
governing budget decisions
Appendix 8 Budget Consultation Report (to
be circulated to all Members of the Council on 15th February).
Contact
Point : Paul Wilkinson ( 01983 823606
|
PAUL
WILKINSON Director
of Finance |
COUNCILLOR
JILLY WOOD Cabinet
Member for Resources, and Town and Parish Council Empowerment |