Issue - meetings

Minute 538 refers

The Executive Member for Finance and Support Services presented the Budget and Medium Term Financial Plan (MTFP) proposals for 2106/17 – 2019/20.  He referred to the national situation and the difficulties in planning for future years, given the backdrop of reduced funding for local government, phased withdrawal of Revenue Support Grant and uncertainties over the New Homes Bonus and Business Rates retention.

The Executive Member reminded Council of the new approach to producing integrated strategic and financial planning to ensure that resources were best targeted at the Council’s priorities.  He spoke of the need for the Council to explore commercial opportunities that could open up new sources of income as well as increase investment income.  He reminded Members of the purchase of the Old River Lane site and the returns this had already achieved.

The Executive Member highlighted some of the achievements of the past year and looked forward to funding projects that would help deliver the Council’s priorities in the next year.  These included using New Homes Bonus funds to support public health projects, subsidising free car parking in Buntingford and Sawbridgeworth and supporting towns and parishes in local projects.

The Executive Member detailed the use of Reserves and the Capital Programme to support a range of projects across a number of priorities.  He drew attention to the Council Tax and the proposal that this would be frozen, which would be the sixth year in which it had been either frozen or reduced.  However, this would not be sustainable in the long term and the MTFP included a modest 1% increase from 2017/18 onwards.  The Executive Member cautioned Members of the continuing challenges ahead and the need to identify further efficiencies.

Since the Executive meeting of 2 February, the Government had issued the final settlement and an additional briefing on this had been detailed in the supplementary agenda papers.  The Executive Member commented that this had resulted in transitional funding of £120k in each of the next two years.  As a result, he proposed an additional recommendation that a Transition Funding Reserve be established for using these funds in 2018/19.

Finally, the Executive Member concluded by stating that the Council would yet again be proposing a balanced budget that would deliver improved services to all who lived and worked in East Herts.  He thanked Officers across all services for their continued hard work and support.

In accordance with the provisions of The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken on the budget proposals now detailed, the result being:

FOR

Councillors D Abbott, A Alder, M Allen, D Andrews, P Ballam,

R Brunton, K Brush, E Buckmaster, S Bull, M Casey,

R Cheswright, S Cousins, K Crofton, G Cutting, B Deering,

H Drake, M Freeman, L Haysey, R Henson, D Hollebon,

A Jackson, G Jones, J Kaye, G McAndrew, M McMullen, P Moore, W Mortimer, D Oldridge, T Page, M Pope, P Ruffles, S Rutland-Barsby, C Snowdon, S Stainsby, R  ...  view the full minutes text for item 580

The Executive Member for Finance and Support Services submitted a report which set out proposals in respect of the following:

·               The 2015/16 revenue budget forecast outturn.

·               The 2016/17 revenue budget.

·               The 2016/17 Schedule of Charges.

·               The 2015/16 (revised) to 2019/20 Capital Programme.

·               The Medium Term Financial Plan 2016/17 – 2019/20.

·               The Council’s Reserves.

The Director of Finance and Support Services referred to funding uncertainties and highlighted a number of useful pages in the report.  She summarised the background section of the report and stated that a more detailed breakdown of the financial settlement had been circulated in the Members’ Information Bulletin.

The Director reminded Members of the ongoing uncertainty in respect of the Council’s sources of funding.  She stated that the provisional settlement included complete removal of the Revenue Support Grant from 2018/19, and that the New Homes Bonus was currently the subject of a live consultation process, although the amount for 2016/17 was not expected to change.  Officers had made a number of best estimates in terms of the future position.

In response to a number of queries from Members, the Director explained that earmarked reserves were covered by a set of criteria each financial year for specific purposes.  The Head of Strategic Finance confirmed that Officers had made assumptions in the Medium Term Financial Plan based on the best currently available information.

Members were also provided with a detailed explanation of the Council’s reserves and where these could be used in line with best practice guidance.  The Director advised that the £150k footbridge reserve had been included each year due to the potential high cost of repairs which would need to be resolved quickly.  Members were also reminded that any use of reserves to fund additional work had been included in health check reports.

The Director confirmed that the forecast outturn for the Net Cost of Services would be made clearer in the Executive report.  The Director also responded to queries from Members regarding the net costs of the services that were delivered by the Authority and how these differed from the net expenditure reported in the statutory statement of accounts.  Members were referred to Essential Reference Papers ‘F’ and ‘G’ for the full picture regarding the growth and savings detailed in the 2016/17 revenue budget.

The Director answered queries from Members regarding changes to fees and charges that were detailed in the report.  Members were reminded that some fees and charges were beyond the Council’s control and others were set at a level for full cost recovery.  There were also fees and charges where the Authority had a degree of control.

Councillor J Cartwright referred to the £450k shortfall in the forecast outturn position for 2015/16 in respect of the Council’s interest income budget.  Members were reminded that the full year effect of the purchase of Old River Lane in terms of interest would not be evident at this time.  Members were reassured that the pension deficit was regularly reviewed, with a triennial valuation taking place in  ...  view the full minutes text for item 516