Agenda item

Report number FIN223 by the Director of Finance & Strategic Resources.  (attached)

DECISION:

(1)               To note and take account of the issues highlighted in the Director of Finance & Strategic Resources’s report FIN223 and appended papers as part of the Cabinet’s presentation of its full budget submission to the full Council on 24^th February 2005;

(2)               To agree that a 5% Council Tax increase for 2005/06 would enable the Council to deliver the budget requirement of £13.3m whilst still investing in the new priority areas;

(3)               To agree the review of the scale of charges as submitted, subject to any remaining charges set at the Council’s discretion to be reviewed on the basis of an increase in line with inflation;

(4)               To agree the proposals for rent and service charges for 2005/06 as follows:

(i)           dwelling rents to be increased by guideline rent increase of 4.03% with continued observance of the rent restructuring rules;

(ii)         garage rents to  be increased in line with the dwelling rent increase of 4.03%;

(iii)       the increase in the number of properties for homeless be noted;

(iv)       the weekly sewerage charge be replaced with annual bills based on actual cost;

(v)         the proposed scale of charges for Helpline Services be adopted from 1^st April 2005;

(5)               To endorse the suggested approach to the Gershon efficiency savings as proposed in report FIN221 by the Director of Finance and Strategic Resources;

(6)               That with effect from 1^st April 2005 and until further notice, the Council to use its discretion to reduce the Council Tax discount on Second Homes Class B (those where occupation is not prohibited by law for a continuous period of at least 28 days in a relevant year) from 50% to 10%;

(7)               To note the publication of service plans on the Council’s Intranet to support the main budget process;

(8)               To note that the Director of Finance & Strategic Resources is finalising the capital programme budgetary position to be reviewed as part of the Cabinet’s report submission to the Council.

Considerations/Reasons for Decision:

(1)      Report number FIN233 by the Director of Finance & Strategic Resources updating the Cabinet on the budget preparation for 2005/06; outlining the background to the budget preparation and consultation; the overall revenue budget position and capping; special expense areas (SEAs); sustainability and risk areas associated with the budget; Gershon efficiency targets and value for money; scale of charges review; and housing revenue account;

(2)      Regular reviews of charges made by this authority prevent large periodic increases;

(3)      Appended report on the discretionary powers available to the Council to reduce discounts on second homes and long term empty properties.  The proposals, which are in line with the rest of Lincolnshire, would allow the additional revenue raised on behalf of the major precepting authorities to be spent within South Kesteven;

(4)      During the preparation process, external consultation has been undertaken via joint working with the Lincolnshire County Council and the Police Authority through the Viewpoint Panel.  Further consultation has taken place through the Local Area Assemblies.  These consultations on SKDC’s budget indicate that the majority of respondents prefer a Council Tax increase of up to 6% with very few advocating a higher increase;

(5)      Recommendations from the Capacity and Resources DSP (as detailed in the attached papers to report FIN223).