Agenda item

 

PART A: Revenue estimates 2008/09 and indicative budget 2009/10 to 2010/11;

• Capital estimates 2008/09 to 2010/11
• Fees and charges
• Rent setting
• Treasury management strategy
• Priority plans

 

PART B: Council tax setting.

 

Report number CHFR91 by the Resources & Assets Portfolio Holder on behalf of the Cabinet.                                        (Enclosure)

 

[Please can members bring their budget books to the meeting.]

 

PART A: Revenue estimates 2008/09 and indicative budget 2009/10 and 2010/11

 

DECISION: That Council:-

 

General Fund Revenue Estimate

a) set a General Fund budget requirement of £15.755m for 2008/9 and an indicative target of £16.247m for 2009/10 and £16.766m for 2010/11 (inclusive of special expenses).;

b) set a Council Tax increase of 4.38% for 2008/9 (4.44% inclusive of Special Expenses);

c) approve the revised revenue base estimate for 2007/08; original base estimate for 2008/09: and indicative base estimates for 2009/10 and 2010/11 as detailed in the revised summary on page 1) of the addendum to the budget book;

d) approve the revised Treasury Management Strategy provided at Appendix B to report CHFR91;

e) approve increases in Fees and Charges for 2008/09 (in accordance with the Council’s Fees and Charges Strategy) and as set out in pages 143 to 180 of the budget book;

f)  approve a revised joining fee of £20 for the Green Waste Collection Scheme  applicable to new entrants with effect from 1^st April 2008;

g) agree that the earlier decision to give notice to Lincolnshire County Council to withdraw District Council support from the Dial A Ride project is not rescinded;

h) take into account in future years Special Expense Areas (SEAs) under/overspending balances when setting the level of the Council Tax for SEAs using a de-minimus level of 10% with effect from the Closure of Accounts for 2007/8;

i)  create specific reserves for each of the SEAs to enable contributions to be made to the reserve at outturn and as part of the future council tax setting process to provide for asset renewal in future years;

j)  approve the forecast balances of Revenue and Capital Reserves contained at revised page xi) of the budget book;

k) delegate to the Section 151 Officer, in agreement with the Portfolio Holder for Finance and Assets, agreement of the final Pension Pool contribution rate following attendance at a seminar to present the Actuary’s valuation report.

 

Capital Programme

l)  approves the revised Capital Programme for 2007/08 and Programme for 2008/09 to 2010/11 detailed in pages 140-142(2) of the budget book;

m) authorises the funding proposals subject to an annual review of the financing options by the Corporate Head of Finance and Resources, in consultation with the Portfolio Holder, during the preparation of the Statement of Accounts to optimise the use of Council resources;

n) reviews the policy on the use of Housing Capital Receipts to enable them to be applied to finance the Council’s overall capital programme in the most financially advantageous method as determined by the Corporate Head of Finance and Resources in consultation with the Portfolio Holder for Finance and Assets, subject to the view that in the longer term the capital resources made available to the Council as a housing authority are used for housing purposes.

 

Housing Revenue Account (HRA)

o)   sets dwelling rent increases in accordance with Government guideline rent, but with a cap on individual rent increases, with no rent being increased by more than “Rent + RPI @ 3.91%+ 0.5% + £2” and no rent being reduced resulting in an average increase of 7.79%, providing an average rent of £59.06 per week (based on 52 weeks);

p) sets an increase in garage rents of 4.4%;

q) increases service charges by 3.9% (RPI Sept 2007); and

 

Priority Plans

r)  approves the Priority Plans, attached at appendix D to report CHFR88 Cabinet (Agenda item 4 on 11^th February 2008), as part of the approval of the Budget proposals.

 

 

PART B: Council Tax setting 2008/2009:

 

DECISION: That the Council pass the following resolution to set the level of council tax for 2008/2009 based on an increase of 4.38% (4.44% inclusive of Special Expenses):

 

1)   That the following amounts be calculated by the Council for the year 2008/9 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992 (as amended)

       a)          £75,946,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (2) (a) to (e) of the Act;

 

       b)          £58,938,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (3) (a) to (c) of the Act;

 

       c)          £17,008,000 being the amount by which the aggregate at a) above exceeds the aggregate at b) above, calculated by the Council, in accordance with Section 32(4) of the Act, as its budget requirement for the year;

 

d)        £9,936,000 being the aggregate of the sums which the Council estimates will be payable for the year into its General Fund in respect of redistributed Non-Domestic Rates and Revenue Support Grant increased by the amount of the sum to be transferred from the Collection Fund to the General Fund;

 

     e)        £156.32 being the amount at c) above less the amount at d)  above, all divided by the Council's tax base of 45,237.70 as recorded in minute 74 of the cabinet meeting of  3  December 2007, in accordance Section 33(1) of the Act, as the basic amount of its Council Tax for the year 2008/2009;

 

       f)           £1,836,000 being the aggregate amount of all special items referred to in Section 34(1) of the Act.

 

       g)          £115.74 being the amount of e) above, less the result given by dividing the amount of f) above by the Council's tax base relating to special items as set on 3 December, 2007 calculated by the Council in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for year for dwellings in those parts of its area to which no special item relates;

 

                       

h)        Part of the Council’s area                         Band D equiv.

 

 

Grantham	159.30
Stamford	176.49
Bourne	146.52
Deeping St James	156.78
Market Deeping	231.66
Allington	158.58
Ancaster	162.99
Aslackby & Laughton	139.68
Barholm & Stow	124.47
Barkston & Syston	136.35
Barrowby	158.22
Baston	134.46
Belton & Manthorpe	119.34
Billingborough	138.87
Bitchfield & Bassingthorpe	115.74
Boothby Pagnell	119.61
Braceborough & Wilsthorpe	135.09
Burton Coggles	123.39
Careby,Aunby & Holywell	123.12
Carlby	150.39
Carlton Scroop & Normanton	169.56
Castle Bytham	130.68
Caythorpe	146.43
Claypole	136.26
Colsterworth,Gunby, Stainby and North Witham	145.17
Corby Glen	137.16
Counthorpe & Creeton	115.74
Denton	128.70
Dowsby	147.60
Dunsby	121.77
Edenham	134.64
Fenton	122.94
Folkingham	139.86
Foston	151.29
Fulbeck	138.60
Greatford	139.50
Great Gonerby	145.44
Great Ponton	153.63
Haconby	117.00
Harlaxton	157.77
Heydour	135.00
Honington	115.74
Horbling	115.74
Hougham	135.99
Hough-on-the-Hill	153.90
Ingoldsby	127.53
Irnham	119.07
Kirkby Underwood	127.71
Langtoft	162.09
Lenton,Keisby & Osgodby	119.61
Little Bytham	146.88
Little Ponton & Stroxton	123.93
Londonthorpe & Harrowby Without	131.85
Long Bennington	152.46
Marston	141.84
Morton	129.96
Old Somerby	132.21
Pickworth	115.74
Pointon & Sempringham	148.41
Rippingale	159.75
Ropsley,Humby,Braceby & Sapperton	130.23
Sedgebrook	140.85
Skillington	149.67
South Witham	162.09
Stoke Rochford & Easton	143.82
Stubton	132.03
Swayfield	134.91
Swinstead	142.29
Tallington	133.92
Thurlby	134.01
Toft, Lound & Manthorpe	115.74
Uffington	128.97
Welby	131.58
Westborough & Dry Doddington	132.21
West Deeping	138.42
Witham-on-the-Hill	139.86
Woolsthorpe	139.50
Wyville-cum-Hungerton	139.23

 

 

 being calculated by adding to the amount at (g) above the amounts of special item relating to dwellings in those parts of the Council's area, divided in each case by the individual tax bases as recorded in minute 74 in accordance with Section 34(3) of the Act, as the basic amounts of its Council Tax for the year for dwellings in those parts of its area to which special item relates;

 

 

i)           The amounts on the attached schedule (Appendix A to Part B of report CHFR91), being the amounts given by multiplying the amounts at g) above 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 valuation Band 'D', calculated by theCouncil, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands;

 

j)           That it be noted that for the year 2008/9 Lincolnshire County Council has stated the following amounts as a precept issued to the Council in accordance with Section 40 of the Local Government Finance Act, 1992, for each of the categories of dwellings shown below:-

 

Valuation Band

 

A      £	B     £	C      £	D      £	E     £	F     £	G     £	H      £
681.18	794.71	908.24	1021.77	1248.83	1475.89	1702.95	2043.54

 

k)          That it be noted that for the year 2008/9  Lincolnshire Police Authority has stated the following amounts as a precept issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:-

 

Valuation Band

 

A      £	B     £	C      £	D      £	E     £	F     £	G     £	H      £
156.90	183.05	209.20	235.35	287.65	339.95	392.25	470.70

 

              l)     That, having calculated the aggregate in each case of the amounts at i), j) and k) above, the Council, in accordance with Section 30 (2) of the Local Government Finance Act 1992, hereby sets the amounts in Appendix B to part B as the levels of Council Tax for the year 2008/9 for the categories of dwellings shown in Appendix A to part B of report CHFR91.

 

 

The Council had before them an amended version of report number CHFR91 of the Resources & Assets portfolio holder on behalf of the Cabinet, together with two addendum reports on Part A and Part B respectively (circulated at the meeting and attached as an appendix to these minutes).  Part B made certain recommendations in respect of the Council’s budget for 2008/09 whilst Part B was in respect of the setting of the council tax, taking into account the Council’s own level of income and expenditure together with the precepts of Lincolnshire County Council, Lincolnshire Police Authority and town and parish councils within the district.

 

In moving the reports, the portfolio holder, Councillor Mrs Spencer-Gregson, thanked the Corporate Head, Finance & Resources (Sally Marshall) and her staff for all the hard work they had put in to producing these reports on her behalf.

 

The budget had been prepared taking into account £750,000 of efficiency savings that had been identified following challenging targets set by central government, particularly in respect of district councils.  Other factors to be taken into account included above average increases in fuel and electricity prices.

 

Councillor Mrs Spencer-Gregson also thanked the Resources Policy Development Group who had undertaken detailed work on fees and charges on behalf of the Cabinet.

 

In setting the level of the Council’s budget, account had been taken of the feedback received from the consultation processes undertaken in recent weeks, including the local forums.

 

In order to balance the budget, it would be necessary to use some of the Council’s reserves this year.  The original intention was that the Council’s budget would result in a 4.95% increase in council tax this year.  However, in the light of the decisions by the Lincolnshire Police Authority to increase its precept by almost 79%, the proposal was now to reduce the contribution towards balances to achieve a council tax increase of 4.38%.

 

In respect of the housing revenue account, the Cabinet had examined all the options and were recommending the lowest possible increase.

 

Councillor Craft, as Chairman of the Resources PDG, also thanked Sally Marshall and her team for all their hard work.  Miss Marshall, as the Council’s S.151 Officer, then drew the Council’s attention to the key financial issues for consideration, namely:

 

• the efficiency agenda
• the staff vacancy factor
• increase in retail price index
• increased cost of electricity
• internal drainage board levies (new accounting arrangements)
• special expense areas – review
• fees and charges, including car park charges
• capital programme and the policy on housing capital receipts

 

By the end of 2010/11, it was likely that the Council would have to enter into unsupported borrowing; she also explained the impact of damping.

 

Miss Marshall confirmed that the housing revenue account settlement was for one year only.  There had been no confirmation of LABGI for the forthcoming year and the Local Government Association had advised local authorities not to take this into account.

 

The Council then debated the budget and the proposed council tax levy.  It was generally agreed that the proposals put forward were the best available options in what was a difficult time financially for the District Council.  The motions in respect of (1)  the Council’s budget for 2008/09, and (2)  the level of council tax were duly proposed and seconded.

 

[Councillor Bisnauthsing entered the meeting at 3.25pm.]

 

[The Council adjourned for tea from 3.30pm to 3.50pm.]