Issue - meetings

To provide detail of the draft budget preparations to date.

(Executive Councillor: Cllr J A Gray)

That the overall Draft Budget 2018/19 and Medium Term Financial Strategy 2019/20 to 2022/23 (as attached as Appendix 1 of the report now submitted) be approved.

That, subject to the removal of the two proposed savings of Closed Churchyards and Bus Station Departure Levy, the savings and growth proposals (as per paragraphs 4.1 to 4.6 and attached as Appendices 3 and 4 of the report now submitted) of the draft Budget 2018/19 be approved.

That the draft Capital Programme 2018/19 to 2022/23 (as per paragraphs 9.1 to 9.2 of the report now submitted) be approved.

That the planned increase in Council Tax of 2% for 2018/19 and for the duration of the Medium Term Financial Strategy (as per paragraphs 7.1 to 7.3 and Table 6 of the report as submitted) be approved.

Executive Councillors were invited to consider a report by the Head of Resources, along with its related Appendices (copies of which are appended in the Minute Book). Members were advised that there would be a focus on local investment for the Commercial Investment Strategy (CIS) in 2018/19, specifically through medium term regeneration and joint ventures, to allow for an organic development of CIS. It was noted that the Commercialisation projects were in progress and that the draft budget clearly set out the achievements of the Council’s Transformation project and what it would deliver for residents in the future. Attention was drawn to Table 2 detailing service savings, income and growth, with the net growth shown being commendable. Members considered that the proposed budget still proposed challenges but were confident that this could be met with dedication and diligence.

The comments of the Overview and Scrutiny Panel were discussed and following consideration, it was agreed that the proposed savings achieved through Closed Churchyards and Bus Station Departure Levy required further investigation. It was therefore decided to remove these from the Draft Budget 2018/19.

RESOLVED

a)  that the overall Draft Budget 2018/19 and Medium Term Financial Strategy 2019/20 to 2022/23 (as attached as Appendix 1 of the report now submitted) be approved;

b)  that, subject to the removal of the two proposed savings of Closed Churchyards and Bus Station Departure Levy, the savings and growth proposals (as per paragraphs 4.1 to 4.6 and attached as Appendices 3 and 4 of the report now submitted) of the draft Budget 2018/19 be approved;

c)  that the draft Capital Programme 2018/19 to 2022/23 (as per paragraphs 9.1 to 9.2 of the report now submitted) be approved; and

d)  that the planned increase in Council Tax of 2% for 2018/19 and for the duration of the Medium Term Financial Strategy (as per paragraphs 7.1 to 7.3 and Table 6 of the report as submitted) be approved.

The Panel are to consider the Draft Revenue Budget 2018/19 and the Medium Term Financial Strategy 2019/20 to 2022/23.

With the aid of a report by the Head of Resources (a copy of which is appended in the Minute Book), the Draft Revenue Budget 2018/19 and the Medium Term Financial Strategy (MTFS) 2019/20 to 2021/22 was presented to the Panel.

The Executive Councillor for Strategic Resources introduced the report. Members were informed that the budget for 2018/19 will be just over £17m and that the Council would not increase Council Tax greater than the increase in wage growth in Huntingdonshire or the increase in the state pension. In 2018/19, Council Tax will rise by 2%. Members were reassured that the budget is as lean as it can be and that there isn’t an unnecessarily large allocation of funding.

The Panel was informed of the significant changes in the budget and the impact on the medium term financial strategy. In addition, Members were informed of the main areas of risk in regards to business rates appeals.

It was stated that the Council has a surplus budget in 2018/19 and that the Council would have a balanced budget at the end of the Medium Term Financial Strategy period in 2022/23.

A Member had asked what issues had there been with the swimming lessons income at One Leisure St Neots. In response, the Panel was informed that the change to the Impressions membership package had an impact as well as the temporary pool closure.

The Panel was informed that the budget for 3C ICT will be reworked for 2018/19. In addition, the overspend on last year’s budget included funding for new Microsoft licences which was not included in the original budget.

The Executive Councillor and the Head of Resources were asked how confident they were that the Council would not overspend the 2018/19 budget considering that the Council had overspent the 2017/18 budget by £778k and that the starting point of the 2018/19 budget would be lower than 2017/18. In addition, the budget for Operations was highlighted as a concern. In response, the Panel was informed that the issues in 2017/18 were one off items that led to the overspend. The Executive Councillor and Head of Resources are confident that the Council will not overspend the budget.

Members were informed that, regarding the issue of homelessness, there have been a number of solutions suggested and that the Executive Councillor for Housing and Planning is currently reviewing them. Once the solutions have been reviewed a paper will be presented.

The Panel was reminded that at December’s meeting, Members stated that they believe the income from One Leisure fee increases was not realistic.

A discussion ensued regarding the Commercial Investment Strategy (CIS). The Panel was informed that the Council will receive £2.3m of revenue from CIS this year. In addition, the Executive Councillor stated that the aim of CIS is to develop income streams for the Council which enables it to deliver good, high quality services.

Regarding the future of CIS investment, the Panel was informed that the position remains the same  ...  view the full minutes text for item 48