Agenda item

Budget 2005/06 (Policy Framework Proposal)

Report number FIN226 by the Director of Finance & Strategic Resources:

(1)  Budget 2005/2006:

  • Section A – Cabinet Report to Council
  • Section B – Chief Finance Officer’s Statement on Robustness and Adequacy of Reserves
  • Section C – Council Tax Resolution for 2005/06
  • Section D – Resolutions on Capital Financing                 (Enclosure)

 

(2)  Budget Book for 2005/2006                (Separate Enclosure to follow)

Minutes:

DECISION:

 

(1)     That the 2005/2006 Budget of revenue income and expenditure, the capital expenditure programme and Statement by Chief Financial Officer on the Robustness and Adequacy of Budget and Reserves as presented, be approved;

 

(2)     That the following amounts be now calculated by the Council for the year 2005/2006 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992 (as amended):-

 

(a)    the aggregate of the amounts which the Council estimates for the items set out in Section 32(2)(a) to (e) of the Act:     

 

 

 

  £63,224,000

(b)    the aggregate of the amounts which the Council estimates for the items set out in Section 32(3)(a) to (c) of the Act:

 

 

 

£49,059,000

(c)    the amount as calculated under Section 32(4) of the Act by which the aggregate at (a) above exceeds the aggregate at (b) above.

 

 

 

£14,165,000

(d)    the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of re-distributed non-domestic rates and revenue support grant increased by the amount of the sums which the Council estimates will be transferred in the year from its collection fund to its general fund in accordance with Section 97(3) and 98(4) of the 1988 Act.

 

 

 

 

 

 

 

 

 

£8,421,000

(e)    the amount at (c) above less the amount at (d) above, all divided by 43,396.2 (the Council's tax base for 2005/2006) as recorded in Minute 83 of the meeting on 6 December 2004 being the basic council tax for the year

 

 

 

 

 

£132.36

(f)      the aggregate of all special items referred to in Section 34(1) of the Act.

 

 

£1,369,600

(g)    the amount at (e) above less the result given by dividing the amount at (f) above by 43,396.2 (the Council's council tax base) in accordance with Section 34(2) of the Act being the basic amount of its council tax for the year.

      For dwellings in those parts of its area to

      which no special item relates

 

 

 

 

 

 

 

£100.80

(h)    the amounts, as recorded in Column B in the schedule below, given by adding to the amount at (g) overleaf the amounts of special items relating to dwellings in those parts of the Council's area specified in Column A of that schedule divided by the council tax base for the relevant part of the Council's area is recorded in Minute 83 of the meeting on 6 December 2004 being  the base amounts of its council tax for the year for dwellings in those parts of its area to which special items relate:

 

 

 

Column A

Column B

 

 

Part of the Council's area

 

Grantham

Stamford

Bourne

Deeping St James

Market Deeping

Allington

Ancaster

Aslackby & Laughton

Barholm & Stow

Barkston & Syston

Barrowby

Baston

Belton & Manthorpe

Billingborough

Boothby Pagnell

Braceborough & Wilsthorpe

Careby, Aunby & Holywell

Carlby

Carlton Scroop & Normanton

Castle Bytham

Caythorpe

Claypole

Colsterworth, Gunby & Stainby

Corby Glen

Denton

Dowsby

Dunsby

Edenham

Fenton

Folkingham

Foston

Fulbeck

Greatford

Great Gonerby

Great Ponton

Haconby

Harlaxton

Heydour

Hougham

Hough-on-the-Hill

Ingoldsby

Irnham

Kirkby Underwood

Langtoft

Lenton, Keisby & Osgodby

Little Bytham

Little Ponton & Stroxton

Londonthorpe & Harrowby Without

 

 

136.89

149.76

124.56

129.42

159.03

128.25

143.10

123.39

109.08

118.89

136.08

112.32

104.40

122.04

105.66

117.63

105.75

129.69

149.67

113.49

128.70

120.60

131.40

121.59

119.34

131.31

106.83

118.44

107.55

127.62

124.02

120.96

115.11

122.94

137.34

102.24

136.08

115.20

115.65

120.96

109.53

104.31

113.04

145.71

103.32

118.98

110.79

111.87

 

Long Bennington

Marston

Morton

North Witham

Old Somerby

Pickworth

Pointon &  Sempringham

Rippingale

Ropsley, Humby, Braceby & Sapperton

Sedgebrook

Skillington

South Witham

Stoke Rochford & Easton

Stubton

Swayfield

Swinstead

Tallington

Thurlby

Uffington

Welby

Westborough & Dry Doddington

West Deeping

Witham-on-the-Hill

Woolsthorpe

Wyville-cum-Hungerton

122.13

120.51

114.66

114.57

114.39

118.35

126.36

137.07

113.76

119.07

124.74

143.46

112.77

114.48

113.94

118.44

117.36

124.92

113.85

113.67

110.07

119.97

113.94

119.52

121.59

 

(i)       the amounts given by multiplying the amounts at (g) and (h) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act being the amounts to be taken into account for the year in respect of dwellings listed in different valuation bands for the parts of the Council's area is now scheduled:-

 

 

(3)     That it be noted that for the year 2005/2006 Lincolnshire County Council (LCC) and Lincolnshire Police Authority (LPA) have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Act for each of the categories of dwellings shown below:-

 

 

Valuation Band

LCC

Amount

LPA

Amount

 

£

£

A

B

C

D

E

F

G

H

599.88

699.86

799.84

899.82

1,099.78

1,299.74

1,499.70

1,799.64

 

*LPA to meet on 25th February 2005 to confirm its budget.


*To be resolved on 28 February 2005 at the Extraordinary meeting.

 

(4)     That, having calculated the aggregate in each case of the amounts at 2(a-i) and 3 above, the Council in accordance with Section 30(2) of the Act hereby sets the following amounts at the amounts of Council Tax for the year 2005/2006 for each of the categories of dwellings in the following table:-

 

To be resolved on 28 February 2005 at the Extraordinary meeting.

 

 

PARISH

BAND @

BAND A

BAND B

BAND C

BAND D

BAND E

BAND F

BAND G

BAND H

 

£

£

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

 

 

Grantham

76.05

91.26

106.47

121.68

136.89

167.31

197.73

228.15

273.78

Stamford

83.20

99.84

116.48

133.12

149.76

183.04

216.32

249.60

299.52

Bourne

69.20

83.04

96.88

110.72

124.56

152.24

179.92

207.60

249.12

Deeping St James

71.90

86.28

100.66

115.04

129.42

158.18

186.94

215.70

258.84

Market Deeping

88.35

106.02

123.69

141.36

159.03

194.37

229.71

265.05

318.06

Allington

71.25

85.50

99.75

114.00

128.25

156.75

185.25

213.75

256.50

Ancaster

79.50

95.40

111.30

127.20

143.10

174.90

206.70

238.50

286.20

Aslackby & Laughton

68.55

82.26

95.97

109.68

123.39

150.81

178.23

205.65

246.78

Barholm & Stow

60.60

72.72

84.84

96.96

109.08

133.32

157.56

181.80

218.16

Barkston & Syston

66.05

79.26

92.47

105.68

118.89

145.31

171.73

198.15

237.78

Barrowby

75.60

90.72

105.84

120.96

136.08

166.32

196.56

226.80

272.16

Baston

62.40

74.88

87.36

99.84

112.32

137.28

162.24

187.20

224.64

Belton & Manthorpe

58.00

69.60

81.20

92.80

104.40

127.60

150.80

174.00

208.80

Billingborough

67.80

81.36

94.92

108.48

122.04

149.16

176.28

203.40

244.08

Bitchfield & Bassingthorpe

56.00

67.20

78.40

89.60

100.80

123.20

145.60

168.00

201.60

Boothby Pagnell

58.70

70.44

82.18

93.92

105.66

129.14

152.62

176.10

211.32

Braceborough & Wilsthorpe

65.35

78.42

91.49

104.56

117.63

143.77

169.91

196.05

235.26

Burton Coggles

56.00

67.20

78.40

89.60

100.80

123.20

145.60

168.00

201.60

Careby,Aunby & Holywell

58.75

70.50

82.25

94.00

105.75

129.25

152.75

176.25

211.50

Carlby

72.05

86.46

100.87

115.28

129.69

158.51

187.33

216.15

259.38

Carlton Scroop & Normanton

83.15

99.78

116.41

133.04

149.67

182.93

216.19

249.45

299.34

Castle Bytham

63.05

75.66

88.27

100.88

113.49

138.71

163.93

189.15

226.98

Caythorpe

71.50

85.80

100.10

114.40

128.70

157.30

185.90

214.50

257.40

Claypole

67.00

80.40

93.80

107.20

120.60

147.40

174.20

201.00

241.20

Colsterworth,Gunby & Stainby

73.00

87.60

102.20

116.80

131.40

160.60

189.80

219.00

262.80

Corby Glen

67.55

81.06

94.57

108.08

121.59

148.61

175.63

202.65

243.18

Counthorpe & Creeton

56.00

67.20

78.40

89.60

100.80

123.20

145.60

168.00

201.60

Denton

66.30

79.56

92.82

106.08

119.34

145.86

172.38

198.90

238.68

Dowsby

72.95

87.54

102.13

116.72

131.31

160.49

189.67

218.85

262.62

Dunsby

59.35

71.22

83.09

94.96

106.83

130.57

154.31

178.05

213.66

Edenham

65.80

78.96

92.12

105.28

118.44

144.76

171.08

197.40

236.88

Fenton

59.75

71.70

83.65

95.60

107.55

131.45

155.35

179.25

215.10

Folkingham

70.90

85.08

99.26

113.44

127.62

155.98

184.34

212.70

255.24

Foston

68.90

82.68

96.46

110.24

124.02

151.58

179.14

206.70

248.04

Fulbeck

67.20

80.64

94.08

107.52

120.96

147.84

174.72

201.60

241.92

Greatford

63.95

76.74

89.53

102.32

115.11

140.69

166.27

191.85

230.22

Great Gonerby

68.30

81.96

95.62

109.28

122.94

150.26

177.58

204.90

245.88

Great Ponton

76.30

91.56

106.82

122.08

137.34

167.86

198.38

228.90

274.68

Haconby

56.80

68.16

79.52

90.88

102.24

124.96

147.68

170.40

204.48

Harlaxton

75.60

90.72

105.84

120.96

136.08

166.32

196.56

226.80

272.16

Heydour

64.00

76.80

89.60

102.40

115.20

140.80

166.40

192.00

230.40

Honington

56.00

67.20

78.40

89.60

100.80

123.20

145.60

168.00

201.60

Horbling

56.00

67.20

78.40

89.60

100.80

123.20

145.60

168.00

201.60

Hougham

64.25

77.10

89.95

102.80

115.65

141.35

167.05

192.75

231.30

Hough-on-the-Hill

67.20

80.64

94.08

107.52

120.96

147.84

174.72

201.60

241.92

Ingoldsby

60.85

73.02

85.19

97.36

109.53

133.87

158.21

182.55

219.06

Irnham

57.95

69.54

81.13

92.72

104.31

127.49

150.67

173.85

208.62

Kirkby Underwood

62.80

75.36

87.92

100.48

113.04

138.16

163.28

188.40

226.08

Langtoft

80.95

97.14

113.33

129.52

145.71

178.09

210.47

242.85

291.42

Lenton,Keisby & Osgodby

57.40

68.88

80.36

91.84

103.32

126.28

149.24

172.20

206.64

Little Bytham

66.10

79.32

92.54

105.76

118.98

145.42

171.86

198.30

237.96

Little Ponton & Stroxton

61.55

73.86

86.17

98.48

110.79

135.41

160.03

184.65

221.58

Londonthorpe & Harrowby With’t

62.15

74.58

87.01

99.44

111.87

136.73

161.59

186.45

223.74

Long Bennington

67.85

81.42

94.99

108.56

122.13

149.27

176.41

203.55

244.26

Marston

66.95

80.34

93.73

107.12

120.51

147.29

174.07

200.85

241.02

Morton

63.70

76.44

89.18

101.92

114.66

140.14

165.62

191.10

229.32

North Witham

63.65

76.38

89.11

101.84

114.57

140.03

165.49

190.95

229.14

Old Somerby

63.55

76.26

88.97

101.68

114.39

139.81

165.23

190.65

228.78

Pickworth

65.75

78.90

92.05

105.20

118.35

144.65

170.95

197.25

236.70

Pointon & Sempringham

70.20

84.24

98.28

112.32

126.36

154.44

182.52

210.60

252.72

Rippingale

76.15

91.38

106.61

121.84

137.07

167.53

197.99

228.45

274.14

Ropsley,Humby,Braceby

& Sapperton

63.20

75.84

88.48

101.12

113.76

139.04

164.32

189.60

227.52

Sedgebrook

66.15

79.38

92.61

105.84

119.07

145.53

171.99

198.45

238.14

Skillington

69.30

83.16

97.02

110.88

124.74

152.46

180.18

207.90

249.48

South Witham

79.70

95.64

111.58

127.52

143.46

175.34

207.22

239.10

286.92

Stoke Rochford & Easton

62.65

75.18

87.71

100.24

112.77

137.83

162.89

187.95

225.54

Stubton

63.60

76.32

89.04

101.76

114.48

139.92

165.36

190.80

228.96

Swayfield

63.30

75.96

88.62

101.28

113.94

139.26

164.58

189.90

227.88

Swinstead

65.80

78.96

92.12

105.28

118.44

144.76

171.08

197.40

236.88

Tallington

65.20

78.24

91.28

104.32

117.36

143.44

169.52

195.60

234.72

Thurlby

69.40

83.28

97.16

111.04

124.92

152.68

180.44

208.20

249.84

Toft, Lound & Manthorpe

56.00

67.20

78.40

89.60

100.80

123.20

145.60

168.00

201.60

Uffington

63.25

75.90

88.55

101.20

113.85

139.15

164.45

189.75

227.70

Welby

63.15

75.78

88.41

101.04

113.67

138.93

164.19

189.45

227.34

Westborough & Dry Doddington

61.15

73.38

85.61

97.84

110.07

134.53

158.99

183.45

220.14

West Deeping

66.65

79.98

93.31

106.64

119.97

146.63

173.29

199.95

239.94

Witham-on-the-Hill

63.30

75.96

88.62

101.28

113.94

139.26

164.58

189.90

227.88

Woolsthorpe

66.40

79.68

92.96

106.24

119.52

146.08

172.64

199.20

239.04

Wyville-cum-Hungerton

67.55

81.06

94.57

108.08

121.59

148.61

175.63

202.65

243.18

 

 

 

 

 

 

 

 

 

 

TOTAL

5249.40

6299.28

7349.16

8399.04

9448.92

11548.68

13648.44

15748.20

18897.84

 

 

 

 

 

 

 

 

 

 

S.K.D.C. ONLY BAND D CHARGE

 

 

 

 

 

 

 

 

 

 

(5)     That for 2005/2006, 2006/2007 and 2007/2008 the Council’s limit for external debt be fixed for each year at £30,000,00, the limit of £30,000,000 for 2004/2005 continues and to authorise the Director of Finance & Strategic Resources within the total limit to effect movement between the separately agreed limits for borrowing and other long term liabilities, in accordance with option appraisal and best value for money for the authority;

 

(6)     That for 2004/2005 the Operational Boundary for external debt continues at £9,000,000, for 2005/2006, 2006/2007 and 2007/2008, the Operational Boundary for external debt be set at £7,000,000, £5,000,000 and £4,000,000 respectively and to authorise the Director of Finance & Strategic Resources within the total Operational Boundary for any individual year to effect movement between the separately agreed figures for borrowing and other long term liabilities;

 

(7)     That an upper limit be set on the Council’s fixed interest rate exposures for 2005/06, 2006/07 and 2007/08 of 75%  of the net outstanding principal sums;

 

(8)     That an upper limit be set on the Council’s variable interest rate exposures for 2005/06, 2006/07 and 2007/08 of 25% of the net outstanding principal sums;

 

(9)     Upper and lower limits for the maturity structure of the Council’s borrowings be set at:

 

Under 12 months                         11%

12 months and within 24 months          11%

24 months and within 5 years          33%

5 years and within 10 years                  16%

10 years and above                            28%  

 

The Leader presented the 2005/2006 Budget (as contained within the Director of Finance & Strategic Resources’ report number FIN226) on behalf of the Cabinet and the Administration. During her supporting speech, she commented on the transparency of the budget preparation process, its reflection of the community’s priorities and, although the government settlement may have been higher than expected, it had not addressed the issues of the “Lincolnshire’s Missing Millions” campaign, which would be continued. She proposed acceptance of the budget and the recommendations presented in the Director’s report, which was then seconded by the Deputy Leader. Many members expressed their appreciation of the work and professionalism undertaken by the Director of Finance & Strategic Resources and his team, especially given the immense amount of work completed under intense pressure.

 

The Chairman of the Capacity & Resources Development & Scrutiny Panel (DSP) spoke in support of the proposed budget, which had been prepared with considerable input from the cross-panel working group led by his DSP. He commented on the requirement to keep the council tax increase below 5% and praised the work done to achieve this.

 

The proposed budget was met with general support but during debate, members voiced various concerns. These included the unsustainable policy of reducing general reserves alongside increasing service costs which decreased income from assets. The Director responded that the proposed budget was in line with the Council’s medium-term financial strategy and although reserves could not be held infinitum, he acknowledged the potential problem for future years in respect to interest receipts. However, the Council had consulted with the public and identified priorities which required capital expenditure for relevant projects. The Director continued that he was grateful for the work of the Capacity & Resources DSP led working group which had scrutinised the general fund, housing revenue account and external issues in some detail. He also reported further on this year’s anticipated capping, the increase of special expense area (SEA) charges and the incorporation of service plans and the scale of charges in the budget document. As the responsible financial officer, he had identified major areas of risk as being Pest Control, which would require regular review, and the Supporting People Grant, as explained in his report. Because the Lincolnshire Police Authority would not meet to confirm their budget until 25th February 2005, an additional meeting of the Council had been arranged for 28th February 2005 to confirm their precept.

 

Other concerns raised included the apparent sense of members’ complacency regarding the budget and its possible irrelevance to those in poverty. There was a need for a longer-term financial strategy, in addition to an annual budget, to maximise resources for the needs of the community because the problem was not the “missing millions” but a too strong a focus on the short term financial position. The comment concerning the “missing millions” was not met with agreement by other members and it was suggested that even more pressure be put on the government because as capping continued without accounting for the level of council tax, the difference in income between different authorities would increase to the disadvantage of this Council. With regard to SEAs, members raised various points and it was suggested that Langtoft SEA be considered at the Deepings Local Area Assembly. There was also some concern that the increase in service costs may have been reduced if certain recommendations from the DSP had been adopted by Cabinet. Parish precepts were also discussed with concern expressed on the lack of control over their precept-setting and it was suggested that parishes be allowed to develop longer term capital schemes, which should balance out fluctuations in their precepts. The Welland partnership was also discussed and clarification was sought on the Industrial Provident Society, whilst suggesting that project management be applied from the outset to large schemes. The Director acknowledged the concerns raised and provided clarification where necessary.

 

In closing the debate, the Leader also responded to a number of the issues raised by other members and expressed her personal thanks to each member of the accountancy team. A vote was taken on the recommendations and was subsequently carried.  

Supporting documents: