Agenda item

·                 Determination of General Fund Budget - Report HOF219 by the Strategic Director Corporate Focus and the Head of Finance.

(Enclosure)

 

·                 Determination of Housing Revenue Account Budget - Report HOF223 by the Strategic Director Corporate Focus and the Strategic Director Community & Environment Focus.

(Enclosure)

General Fund Budget 2013/14

 

Decision:

 

General Fund (Revenue)

 

That Cabinet recommends parts a. to c. to Council:

           

a.          to set a General Fund budget requirement of £14.068M for 2013/14 shown at Appendix A to report HOF219 (inclusive of special expenses) which will include the additional items listed in Appendix B to report HOF219 and the savings listed in Appendix C to report HOF219.

b.          to approve a Council Tax increase of £5 (for a Band D equivalent) for 2013/14

c.          to note the indicative base estimates for 2014/15 and 2015/16 as detailed in the summary at Appendix A to report HOF219.;

 

 

Capital Programme

 

That Cabinet recommends parts d. to e. to Council:

 

d.              to approve the General Fund Capital programme for 2013/14 to 2017/18 detailed at Appendix D page 1 to report HOF219

e.              to approve the Capital Financing statement detailed at Appendix D page 2 to report HOF219

 

Reserves and balances

 

That Cabinet recommends part f to Council:

 

f.                to note the movements in Revenue and Capital reserves and balances detailed in Appendix E to report HOF219.

 

 

Treasury Management and prudential indicators

 

That Cabinet recommends part g. to Council:

 

g.                to approve the Treasury Management Strategy provided at Appendix F to report HOF219.

 

 

Consideration/reasons for decision:

 

1)              Report HOF219 from the Strategic Director Corporate Focus and the Head of Finance in relation to:

·                  Budget estimates for 2013/14

·                 The District’s basic amount of Council Tax 2013/14 following the Governments announcement that South Kesteven had been identified as a low quartile council tax base charge and therefore had the opportunity to increase its Council Tax base by a maximum of £5 for 2013/14 (based on a Band D charge).

·                 The grant settlement the Council received for 2013/14 and future forecast decreases in the level of funding anticipated from Government.

·                  The Capital programme for 2013/14 – 2017/18

·                  Treasury Management and Investment Strategy

2)              The budget for 2013/14  and indicative budgets for 2014/15 to 2015/16 had been prepared in line with:

·                  the Council’s priorities and the corporate plan

·                 the Council’s Medium Term Financial Plan which incorporated the budgetary principles of continuing to protect front line services.

·                 Service Strategies and Plans

·                 Asset Management Strategy

·                 The economic context and recent grant announcements

·                 Investment in priorities and the prudent use of reserves and balances

3)              The proposals have regard to accounting requirements and external factors affecting the budget:

·             Prudential code

·             Changes to the business rates and the introduction of the Council Tax support scheme

·             The economic climate

·             Investment income and fees and charges

·             The Actuary review of the Pensions Fund.

4)              Consultations that had been undertaken both with the four main business clubs of the District and the public.  Heavy advertising of drop in sessions in Grantham and the Deepings had been undertaken with text editorials being sent to the larger papers circulating in the district. There had also been a facility on the website to make representations about the council tax proposals. (It was noted by the Cabinet Members that the response to the consultation had been poor even though it had been heavily advertised in the space of time available.)

5)              The Portfolio Holder Strategic Resources commending the budget for recommendation by the Cabinet to Council and thanking the Strategic Director Corporate Focus and the Head of Finance and their team for all the hard work in putting the budget together in the short time period that was available due to the late settlement, also the work undertaken by the Resources PDG.

6)              Comments made that no Member outside of the Resources PDG had approached the Portfolio Holder Strategic Resources to discuss the budget.

 

 

 

HOUSING REVENUE ACCOUNTS BUDGET 2013/14

 

Decision:

 

Housing Revenue Account

 

That Cabinet recommends part a. to d. to Council:

 

a.          to set dwelling rent increases in accordance with Government guideline rent providing an average rent of £74.32 (and an average rental increase of 4.57%)

b.          to set an increase in garage rents of 2.6% (RPI)

c.          to increase service charges by 2.6% (RPI) 

d.          to approve the Housing Revenue Account for the year 2013/14 (including the  items at Appendix A to report HOF223 in the report) and indicative years 2014/15 and 2015/16 shown at Appendix B in report HOF223.

 

Investment Programmes

 

That Cabinet recommends parts e. to f. to Council:

 

e.          to approve the Housing Investment programme for 2013/14 to 2017/18 including the allocation of £3M for additional housing stock detailed at paragraph 5.4 and shown at Appendix C page 1 to report HOF223

f.            to approve the Capital Financing statement detailed at Appendix C page 2 to report HOF223

 

Reserves and Balances

 

That Cabinet recommends part g. to Council:

 

g.          To note the movements in HRA revenue and Capital reserves and balances detailed in Appendix D to report HOF223.

 

 

Considerations/reasons for decision:

 

1)          Report HOF223 from the Strategic Director Corporate Focus and the Strategic Director Community & Environment.

2)          The Council’s current policy to keep in line with the Government’s guidance on rent restructuring.

3)          The September 2012 inflation figure was 2.6% which the draft determination had been based upon convergence within three years by 2015/16.

4)          Welfare reform changes concerning the level of housing benefit being paid to social housing tenants and the under-occupancy provision and their likely impact on the HRA.

5)          The HRA budget and indicative budgets for 2014/15 to 2015/16 had been drawn up to take account of the relevant Council’s strategies, polices and financial context including:

·                 The Corporate Plan

·                 The Housing Business Plan

·                 Service Strategies and Plans

·                 HRA Asset Management Strategy

·                 The economic context and recent grant announcements

·                 The 2012/13 HRA forecast outturn

6)          The current HRA budget proposals had been prepared within the context of the existing Housing Business Plan and the recent refinancing changes.

7)          A correction made by the Head of Finance to b. and c. of the recommendation.

8)          Comments made about having a more simplistic format in the future to improve the clarity of information.