Issue - meetings

Report number CHFR15 by the Corporate Head of Finance and Resources.  (Enclosure)

DECISION:

That the medium Term Financial Strategy attached as Appendix A to report CHFR15 be approved

The Council had before them report CHFR15 of the Corporate Head of Finance and Resources which set out the Medium Term Financial Strategy 2006/7 to 20011/12 plus a budget preparation strategy for approval.

The strategy identified a number of fundamental principles, which may be summarised as;

Principle 1 – The Community Strategy, Corporate Plan and Annual Performance Plan drive the allocation of resources

Principle 2 – Manage financial resources to achieve efficiency and value for money, whilst maintaining a balance between quality and cost effectiveness

Principle 3 – Maintain flexibility to respond to a changing local government environment

Principle 4 – Maintain a substantial revenue budget

Principle 5 – Maintain a prudent  approach when making estimates of external funding from Government

Principle 6 – Identify and seek opportunities for external funding whilst maintaining prudent estimates of realisable funding

Principle 7 – Manage the Council’s assets, reserves, balances and receipts to optimise financial returns for future investment in he Council’s priorities for the benefit of the community

Principle 8 – Maintain a robust capital strategy to support deliverable medium term capital programmes

Principle 9 – Improve treasury management performance

Principle 10 – Balance the need to meet local taxation demands with community aspirations and ability of local taxpayers to meet them

Principle 11 – Maintain a robust fees and charges strategy

Principle 12 – Manage the impact of the introduction of local area agreements

Principle 13 – deliver the priorities of the Council without exposing the Council to unnecessary risks by targeting the use of resources linked to corporate risk

Principle 14 – Manage the financial viability of the housing revenue account (HRA) and ballot tenants on the preferred option of LSVT to provide the investment required to deliver tenant aspirations.

The Chairman of the Resources DSP confirmed that the draft Strategy had been scrutinised at the DSPs last meeting and it would be subject to further scrutiny at the next meeting of the Resources DSP on September 28^th.

Questions and comments were also made by members in relation to

• The national bus pass scheme due for implementation in April 2008
• The level of reserves in the pension fund   
• Tourism

The motion was moved, duly seconded and carried.