Issue - meetings

The Council is requested to consider the Cabinet’s recommendations on the Financial Plan, Medium Term Plan for 2011/15, the 2010/11 Budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the meeting of the Cabinet held on 11th February 2010) and, in accordance with Section 30 (2) of the Local Government Finance Act 1992, to approve resolutions as to the levels of council tax in 2010/11 for the various parts of Huntingdonshire District.

A report by the Head of Financial Services is enclosed.

(Members are requested to note that the information contained in Appendix C should be treated as provisional at this stage.)

In conjunction with a report by the Head of Financial Services (a copy of which is appended in the Minute Book) and Item Nos 67 and 68 of the Report of the Cabinet, the Executive Councillor for Finance, Councillor T V Rogers addressed the Council on the Financial Plan, Medium Term Plan 2011 – 2015, 2010/11 Budget and related prudential indicators contained in the Treasury Management Strategy and moved the recommendations of the Cabinet.  In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals as to the levels of council tax in 2010/11 for various parts of the Huntingdonshire District.

In his opening remarks, Councillor Rogers acknowledged the contribution and support of the Overview and Scrutiny Panels and members of the business community in the budgetary process.  He described the approach taken by the Cabinet towards treasury management which involved an inevitable degree of risk management in balancing interest rates and prudential indicators.  He suggested that the Council continued to be prudent in the management of its borrowing and investments.

In terms of the Financial Strategy, MTP and Budget, Councillor Rogers drew attention to the requirement to fund capital expenditure from borrowing, the decrease in levels of revenue reserves, the achievement thus far in reducing spending levels, the withholding of Government grant and the continuing low level of council tax equating to Huntingdonshire being ranked the 19th lowest district of 238 authorities in terms of their council tax levels.  Having described the implications of these issues in detail, Councillor Rogers concluded by advising that the Council expected to end the current financial year with revenue reserves of £11.2 million based upon an expectation that £12.9 million in revenue support would be received from Government and that £4.7 million from the reserve would be used to fund the deficit.  Councillor Rogers assured the Council that he would continue to search for efficiency savings and other sources of income and he urged all Members to continue to forward any additional suggestions for savings to him so that advantage could be taken of any opportunities that arose.

Accordingly, Councillor Rogers reported that, if supported by the Council, the budget would be increased by 2.49% resulting in a band D council tax of £124.17 or £2.39 per week.  He therefore commended the recommendations of the Cabinet to Council as set out in report by the Head of Financial Services.

In response, Councillor P J Downes, on behalf of the Liberal Democrat group, drew the Council’s attention to a paper circulated at the meeting which described a series of amendments proposed to the budget by his group.  A response by the Conservative group to these proposals also had been circulated (copies of both documents are appended in the Minute Book).

Councillor J D Ablewhite expressed the view that the Liberal Democrat group had had ample opportunity to identify proposals for savings through the budgetary process and to raise these at the meeting of the Overview and  ...  view the full minutes text for item 77

With the assistance of a report by the Head of Financial Services to consider the 2010/11 Budget and Medium Term Plan.

Recommended the proposed budget, Medium Term Plan and Financial Strategy to Council for approval; recommended an increase of £3.02 (2.5%) in Council Tax, representing a level of £124.17 for Band D properties for 2010/2011 be approved; and that the Director of Commerce and Technology, after consultation with the Leader, Executive Councillor for Finance and the relevant Chief Officers, be authorised to manage the special reserve.

Further to Minute No. 09/58 and by way of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Cabinet were acquainted with a number of variations to the assumptions made previously for the purpose of preparing the draft Financial Strategy, Medium Term Plan (MTP), the budget and associated level of Council Tax for 2010/2011, together with the deliberations of the Overview and Scrutiny (Economic Well-Being) Panel thereon.

Having noted comments arising from the consultation with the business community on expenditure proposals and in acknowledging the contribution of the Overview and Scrutiny Panel for their considerations, the Cabinet

RECOMMENDED

  (a)  that the proposed budget, Medium Term Plan and Financial Strategy appended to the report now submitted be approved;

  (b)  that an increase of £3.02 (2.5%) in Council Tax, representing a level of £124.17 for a Band D property for 2010/2011 be approved; and

  (c)  that the Director of Commerce and Technology, after consultation with the Leader, Executive Councillor for Finance, and relevant Chief Officers be authorised to manage the special reserve referred to in paragraph 5.3 of the report.

To consider a report by the Head of Financial Services.

(Councillor T V Rogers, Executive Councillor for Finance, was in attendance for this Item).

With the aid of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Panel reviewed the Financial Strategy, Medium Term Plan (MTP) 2011-2015 and the Budget and level of Council Tax for 2010/11 in advance of their consideration by the Cabinet and final determination by the Council.

By way of introduction Councillor Rogers, Executive Councillor for Finance, reminded Members of the process involved in developing the Financial Strategy in the current year and explained that a number of changes had been made to the draft Strategy, which took into account £1.2m in savings that had been identified. These savings had been transferred into a Special Reserve in order to help facilitate the achievement of future spending adjustments. 

Members were advised that the medium term impact of the changes was a reduction in the Council’s budget deficit which would allow spending adjustments to be phased in at a more regular rate.  Overall spending would fall significantly from previous assumptions mainly owing to lower provision for pay and price inflation but also as a result of lower assumptions on Government Grant and the proposed reduction in the level of Council Tax increase to 2.49%, a figure which it was considered would avoid capping. The result was that a reduced level of spending adjustments would be needed in the Medium Term Plan period, though in the longer term there would be few changes.

The Director of Commerce and Technology drew Members’ attention to his conclusion contained in the report that the combination of a robust budget process and the current level of reserves should give Members no concerns over the Council’s financial position for 2010/11. However, he drew attention to the fact that a significant level of work would be required to plan the spending adjustments required in future years in order to avoid the Council making sub-optimum decisions as reserves were depleted. 

In highlighting the uncertainties and risks associated with the financial forecast Members were reminded of the possible impact of the Guided Bus on the Council’s parking income, the unknown length and depth of the recession, changes in grant funding and the revaluation of the pension scheme. These were likely to require further spending adjustments in the future. Following a question from a Member on investments, it was explained that lower than planned expenditure in 2008/09 had allowed investments to be made. In addition, previous investments over long periods had meant that the Council was benefiting from favourable rates.

In discussing expected income of £150k in respect of public conveniences, the Panel was advised that this was an estimated figure, which would be received following the sale to developers of the public conveniences at South Street, St Neots. Members also discussed the figure for future wheeled bin replacement and were advised that although in the future developers would be charged for new wheeled  ...  view the full minutes text for item 72