Issue - meetings

To agree the draft Budget proposals for 2019/20, incorporating any feedback from the Budget Overview and Scrutiny Committee, for consultation.

Decision:

Cabinet:

1. Considered the budget proposals for 2019/20 in respect of:

·         General Fund – Revenue and Capital

·         Housing Revenue Account – Revenue and Capital

2. Agreed to the inclusion of provision within the 2019/20 General Fund Revenue Budget for a Scrutiny Officer

3. Approved consultation in respect of proposed Council Tax levels for 2019/20 for the period 21 January to 3 February 2019 (inclusive)

Reasons for decision

1.            Report number CFM485 of the Cabinet Member for Finance giving details of the draft Budget estimates for 2019/20, revenue and capital, for both the General Fund and the Housing Revenue Account

2.            The budget proposals detailed in the report that were formulated by the Cabinet working closely with senior officers through a series of workshops, with the objective to realign resources and spending plans to ensure that the key priorities and aspirations of the Council could be delivered

3.            Recommendations made by the Budget Overview and Scrutiny Committee at its meeting on 10 January 2019

General Fund - Revenue

4.            The provisional Finance Settlement for 2019/20; this was the last year of the four-year funding deal following the successful submission by the Council of an Efficiency Plan

5.            The proposed funding allocation for the Council taking account of the Settlement Funding Assessment, New Homes Bonus, Rural Services Delivery Grant and compensation for under-indexing the business rate multiplier

6.            Confirmation that the Government would bear the costs of negative Revenue Support Grant for 2019/20; an assumption was built into the report that the Council would be liable for costs negative Revenue Support Grant beyond 2019/20

7.            The overall General Fund estimates for 2019/20, with total service expenditure estimated at £13.780m

8.            Growth proposals to build capacity as set out in appendix A to report CFM485

9.            Details of savings to be made by directorate, together with a corporate savings target of £300k and transformation savings target of £200k across the three-year period

10.         Proposed allocations in the Budget to support InvestSK and Environment SK

11.         General Fund Budget assumptions set out in the report at table 6

12.         Treasury investment financial forecast information for the financial years 2019/20 to 2021/22

Council Tax

13.         Indicative income from Council Tax based on proposals which would be subject to public consultation from 21 January to 3 February: a £5 (3.25%) increase on a Band D property, a 3% increase on a Band D property or no increase

14.         The Budget proposals were compiled on the assumption that the Cabinet would wish to recommend a £5 increase on a Band D property in 2019/20

Fees and charges

15.         Draft fees and charges proposals for 2019/20 as set out in Appendix B to the report, which highlighted which charges were statutory and which were discretionary

Housing Revenue Account

16.         Draft proposals for the Housing Revenue Account (HRA)

17.         Additional items of expenditure against the HRA, which were highlighted in the report: the appointment of the Assistant Chief Executive (Housing Delivery) and an increase in the HRA proportionate share of central  ...  view the full decision text for item 71

The Cabinet Member for Finance presented report number CFM485, which provided draft Budget estimates for 2019/20, revenue and capital, for both the General Fund and the Housing Revenue Account together with details of Budget proposals. Specific reference was made to the Council Tax proposals, on which consultation would be undertaken, and the cessation of the Business Rates pilot, which meant that the Council would fall back to the pooling arrangement of which it was previously part. The Cabinet Member highlighted that the projected balance position for 2019/20 was a small surplus.

Cabinet Members’ attention was drawn to the savings that had been found by directorates to offset growth. Members also noted the proposal to continue with the Community Fund and the Ward Member Grant Scheme. Proposed fees and charges were set out within the report, together with a comment against each that indicated whether they were statutory or discretionary.

The Cabinet Member for Finance also referred to the Housing Revenue Account and proposals for rent levels; dwelling rents would reduce by 1% as required by Government while it was proposed garage rents should increase in line with inflation.

Finally, the Cabinet Member for Finance drew Members’ attention to proposals relating to the Capital Programme, reserves and balances and capacity bids. He also made reference to a meeting of the Council’s Budget Overview and Scrutiny Committee, which had met on 10 January 2019, and the comments and recommendations that had been made at that meeting.

One of the Cabinet members spoke about the business summits that had been held in the district and the Council’s growth ambitions, together with transformation work to make South Kesteven a more agile and modern organisation that could deliver the highest quality of services to residents across the district. This was put within the context of a financial backdrop that was considered increasingly challenging and a corporate strategy that focussed on the authority becoming financially self-sufficient.

The Council had set up a working group to consider the Council’s governance arrangements. The working group had identified the need for a Scrutiny Officer to provide dedicated support to the Overview and Scrutiny function, and officers were asked to include this within the Budget proposals. This suggestion received support from other Cabinet and non-Cabinet members who had been involved in the working group and who had attended the Budget Overview and Scrutiny Committee meeting.

Several Cabinet Members expressed their support for the Budget proposals and how they recognised the Council’s growth priorities and investment in those, and the use of the commercial element of the organisation to replace government funding. Reference was made to the companies in which the Council was involved, specifically DeliverSK, which was focussed on development and Environment SK, which was the vehicle that had been created to deliver the Council’s grounds maintenance service. Members stated that they believed that the proposals conformed with the core commitments that were made at the beginning of the administration. They felt that it was a Budget that benefitted  ...  view the full minutes text for item 71