Agenda item

The Cabinet to consider report CAB5 by the Finance Portfolio holder on the budgetary proposals for revenue 2006/07 and capital for 2006/07 to 2008/2009.                                                                   (attached)

DECISION:

(1)    To recommend to Council a Council Tax increase of 4.82% for 2006/07 and an overall average increase of 4.9% which including Parishes and Special Expense Areas;

(2)    To recommend the Budget for 2006/07 to the Council at its meeting on 2^nd March 2006, including the General Fund Revenue Account, the Housing Revenue Account and the Capital Programme and Capital Financing Report;

(3)    To explain any amendments and addendums from the papers, attached to report CAB5, and to add the required resolutions for major precepting authorities at the Council meeting on 2^nd March 2006;

(4)    To recommend that all service plans are approved and published on the Council’s intranet to underpin the budget sheets;

(5)    To approve the use of reserves as detailed in report CAB5;

(6)    To recommend that work be done during the year to establish a maximum subsidy per Council Taxpayer across the district for the operation of the Arts Centres so that it could be considered for budget inclusion next year;

(7)    To recommend that the Council re-scores the Financial Services function to a category B priority and amends Council Tax collection to a category Y service.

Considerations/Reasons for Decision:

(1)  Report number CAB5 and accompanying enclosures submitted by  the Assets & Resources Portfolio holder, Councillor Bryant covering:

§         Background to Budget Development

§         Local Government Settlement 2006/07

§         Government Guidance on Council Tax increases 2006/07

§         External Financing

§         Overall Budget Requirement

§         Integration of Service Planning and Budgets

§         Investments, Savings and Efficiencies

§         Capital Programme and Financing

§         Reserves

§         Budget Consultation

§         Financial Services – Impact of Use of Resources

§         Recommendations

(2)     Noting that the integration of service planning with the Budget coupled with the roll out of a new focused financial management process will help ensure excellent services can be delivered efficiently and effectively;

(3)     South Kesteven received relatively the second lowest external funding support in Lincolnshire.  This puts pressure on the Council in delivering quality services without receiving the additional resources other Councils get;

(4)     Noting feedback resulting from different ways of consulting the community on the budget proposals.  All members had been given an unfettered opportunity to be involved in the process;

(5)     The level of the capital programme at over £8m depicts the investment being directly made into the Council’s priority services;

(6)     Statement from the Director of Finance and Strategic Resources (Responsible Financial Officer) that the budget for 2006/07 as presented is robust in its formulation and the level of reserves adequate for the organisation.  The proposed increase in council tax of 4.9% at Band D is in line with the government target;

(7)     Noting an oral update from the Director of Finance and Strategic Resources that the authority has been awarded a special grant of  £273,000 from the Local Authority Business Growth Initiative, payable on 23^rd February 2006;

(8)     The Cabinet considers that the re-classification of Financial Services is necessary having regard to the service underpinning the provision of other services and a level 3 score will be required under the Use of Resources assessment in order for the authority to achieve “excellent” CPA score;

(9)     Noting that whilst amendments would be necessary before the report is presented to Council on 2^nd March 2006, these would not alter the overall recommendations on the Council Tax;

(10)The Cabinet endorsed the portfolio holder’s thanks to all staff, particularly those from Financial Services, and members for their efforts during the budget preparation process.

Date Decision effective:  Minute CO127 is a policy framework proposal and stands referred to the full Council on 2^nd March 2006.