Issue - meetings

Report number FIN239 by the Director of Finance and Strategic Resources.

                                                                                                                (attached)

DECISION:

(1)    To adopt the adaptation of the financial strategy as outlined in report FIN239;

(2)    That the Director of Finance and Strategic Resources prepare a response to the ODPM consultation document on Formula Grant Distribution for 2006/2007;

(3)    To adopt the approach to budget development for 2006/07 and value for money framework outlined in report FIN239;

(4)    That arrangements be put in place to implement an effective budget consultation strategy for 2006/07 to include reference in SK Today, and via the Local Area Assemblies, the Viewpoint Panel and the Council’s website;

(5)    To review the purpose and amounts of reserves;

(6)    That a detailed options appraisal on the impact of stock option transfer on the General Fund be developed;

(7)    That the Director of Finance and Strategic Resources develop options for Council Tax setting for future years.

Considerations/Reasons for Decision:

(1)            Report number FIN239 by the Director of Finance and Strategic Resources detailing the updated medium term financial strategy for 2006/07 to 2010/11, examining the main influences on the budget preparation for 2006/07 and proposals to implement any changes necessary during 2005/06;

(2)            Oral update given at the meeting on briefing received that day from the LGA in which a funding gap for local authorities of £1.5billion had been identified;

(3)            Main indicators towards assessing likely future levels of government grant and the Director’s recommendation that an annual figure of 1% increase on a like for like basis would be a prudent basis for financial planning;

(4)            Previous feedback from public consultation has indicated that reasonable increases in Council Tax are acceptable providing service improvements are visible.  Use of a budget survey with options given can target the spend, save and efficiency issues outlined in the Director’s report;

(5)            The impact on the General Fund of the outcome of a stock transfer ballot;

(6)            Estimated budget requirements to deliver the resources for stepped improvements in the priority areas; initial assessment of the impact of growth areas, efficiency savings and known liabilities for the early part of 2005/06;

(7)            Noting advice from the Director of Finance and Strategic Resources that, at this stage in the development of the 2006/07 budget and for future years, a starting budget requirement of £13,593,000 be set.  If this cannot be achieved or other factors become relevant, this will need to be reviewed and the impact on Council Tax assessed.