Issue - meetings

Financial Strategy 2015/16 - 2018/19 and Medium Term Financial Plan Update

Meeting: 01/10/2014 - Council (Item 279)

Webcast for 01/10/2014 - Council

Financial Strategy 2015/16 – 2018/19 and Medium Term Financial Plan Update

Minute 212 refers.

Note – Members are asked to bring their copies of the Executive agendas to the meeting.

Additional documents:

Webcast for Financial Strategy 2015/16 – 2018/19 and Medium Term Financial Plan Update

Minutes:

RESOLVED – that (A) the proposed Financial Strategy as now submitted, be adopted, subject to further consideration of the Reserves Policy; and

(B) the planning assumptions set out in the report submitted, be adopted as the basis for framing the 2015/16 budget and Medium Term Financial Plan to 2018/19, subject to further consideration of the Pay Settlement, Members Allowances and Fees and Charges, as now detailed.

(see also Minute 277).

Meeting: 02/09/2014 - Executive (Item 212)

Webcast for 02/09/2014 - Executive

212 Financial Strategy 2015/16 - 2018/19 and Medium Term Financial Plan Update PDF 159 KB

Additional documents:

Minutes:

The Executive Member for Finance submitted a report which considered revisions to the Financial Strategy including the policy on Reserves and the proposed planning assumptions to be used in updating the Medium Term Financial Plan (MTFP).

The Corporate Business Scrutiny Committee, at its meeting held on 26 August 2014, had considered the report and, whilst supporting the Financial Strategy and the MTFP, had expressed concern that the level of Reserves currently being held was not within the agreed limits set out in the Reserves Policy.

The Executive Member for Finance accepted these comments and stated that the Authority could either raise the ceiling within the Reserves policy or lower the level of Reserves. He advised that a report on this matter would be submitted to a future meeting of the Executive.

The Executive Member also drew attention to the planning assumptions within the MTFP as detailed at Essential Reference Paper ‘C’ of the report submitted. He suggested that, as part of the continuing budget preparations, the assumptions on the Pay Settlement and Members Allowances be merged into a single line. He also suggested that Fees and Charges increases should be closer to the inflation figure. Further work on these matters would be undertaken and specific proposals reported back to Members as part of the MTFP and budget consideration at future meetings.

The Executive supported the recommendations as now detailed.

RECOMMENDED – that (A) the proposed Financial Strategy as now submitted, be adopted, subject to further consideration of the Reserves Policy; and

Meeting: 26/08/2014 - Corporate Business Scrutiny Committee (Item 209)

209 Financial Strategy 2015/16 - 2018/19 and Medium Term Financial Plan Update PDF 161 KB

Additional documents:

Minutes:

The Executive Member for Finance submitted a report inviting the Corporate Business Scrutiny Committee to consider revisions to the Financial Strategy, including its policy on using reserves and the proposed planning assumptions to be used to update the Medium Term Financial Plan for 2015/16 to 2018/19.

The Director of Finance and Support Services introduced two officers, Alison Street (from the Accountancy team) and Shahida Nasim (currently co-ordinating a finance review at the Council) These officers were in attendance to evaluate how Members used the “modelled” information as presented. The Director of Finance and Support Service explained the importance of having a Financial Strategy and Medium Term Financial Plan covering a four year period. Key paragraphs within the report were explained.

In response to a query from Councillor M Pope regarding business rates and how significant the risk was, the Director of Finance and Support Services explained risk in terms of the extension of business rate relief, of the increase in the number of requests for relief and the fact that appeals for business relief could be backdated five and six years.

The Director of Finance and Support Services stated that the Council’s Policy on its level of reserves had been agreed by Members and that this was based on good practice. She added that external audit would not comment on how much the Council had in reserve, but it would comment if it felt that the level held was insufficient.

Councillor J Ranger commented on the level of reserves and that the Council should do something with some of its reserves but would be unhappy to see, three years ahead, that it had insufficient reserves.

The Committee Chairman stated that the Council had £8Million earmarked in general reserves and that it had exceeded this figure by a further £1.374 Million and that it was breaching its own policy in terms of its level of reserves. The Chairman stated that he “had a problem” with a MTFP which did not conform to its own policy.

Councillor J Wing suggested that some reserves be the subject of discussions with social housing providers and local housing associations.

Councillor T Page suggested that the reserves be protected in terms of its residents and in relation to Council Tax.

The Executive Member for Finance explained that the reserves policy was reviewed by Audit Committee and conformed with CIPFA guidelines. He explained the importance of having sufficient reserves. The Director of Finance and Support Services explained what the earmarked reserves would be used for including running local elections and funds for interest equalisation (i.e. interest rates dropping). She added that without these reserves, Council Taxpayers could be hit sharply if there were significant fluctuations in activity from year to year.

Following a question regarding interest on cash balances, the Director of Finance and Support Services referred to cash flows and the importance of understanding the day to day needs of the Council, keeping enough cash in hand to run its activities. She also explained the difficulties ... view the full minutes text for item 209