Issue - decisions

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 support and democratic costs

18.         Savings and efficiencies proposed in respect of the HRA as shown in the report at table 11

19.         Rent proposals for dwellings (a 1% rent reduction in line with Government requirements) and garages (a proposed increase of 2.5%)

Capital programme (General Fund and Housing Revenue Account)

20.         The detailed capital programme attached to the report as Appendix C (General Fund) and Appendix D (HRA)

21.         The Council’s commitment to help grow the local economy and the routes available to the Council to do this, including Deliver SK

22.         The capital strategy over the medium-term, which would focus on delivery through the acquisition, facilitation and development of strategic sites and buildings to stimulate inward investment and regeneration

23.         An allocation to the General Fund Capital Programme of £10m for 2019/20 with associated borrowing being financed in the short-term from the Regeneration Reserve on the basis that the asset would be sold within a defined period

24.         Ambitions through the HRA Capital Programme to deliver a stepped increase in the new build programme and stock acquisition programme and the objectives of the HRA Business Plan

25.         The Housing Investment Programme would continue to deliver investment into the housing stock through a range of programmes including kitchen and bathroom replacement, re-roofing and external wall insulation

Reserves and balances

26.         Details of the earmarked reserves, used to meet known or predicted liabilities

27.         The forecast balances and the proposed movements over the next three-year period shown in Appendix E to the report and the main forecast movements for 2019/20 set out within the body of the report (both General Fund and HRA)

28.         Proposed movement of reserves as set out in Table 17 of the report