Issue - meetings

RECOMMENDED TO CABINET:

(1)  That Cabinet recommends to Council the adoption of the Investment Strategy (as attached at Appendix A), including the capital programme and prudential indicators;

(2)  That Cabinet recommends to Council the adoption of the four clauses in relation to the Code of Practice on Treasury Management (as detailed in paragraphs 8.12 to 8.17)

REASON FOR RECOMMENDATIONS:

(1)  To ensure that the capital programme meets the Council’s objectives and officers can plan the implementation of the approved schemes.

(2)  To ensure the Council’s compliance with CIPFA’s code of practice on Treasury Management, the Local Government Act 2003, statutory guidance from the Department of Levelling Up, Housing and Communities (DLUHC) and the CIPFA Prudential Code. As well as determining and managing the Councils risk appetite in respect of investments.

Audio Recording – 14:48

The Service Director – Resources presented the report entitled Revenue Budget 2022/23 together with the following appendices:

·         Appendix A – Financial Risks 2022/2023;

·         Appendix B – Revenue Budget Savings and Investments;

·         Appendix C – Budget Summary 2022 – 2027.

He drew attention to the following:

·         Paragraph 5.2 details the Business Ratepayers statutory consultation;

·         Paragraph 8.1 to 8.6 summarises some of the key savings investments and are generally in line with what was presented at budget workshops;

·         Paragraph 8.20 details that as Chief Finance Officer, it is required that advice be provided on what is the minimum General Fund balance;

·         Paragraph 8.21 provides a table of a budget provision, set aside for COVID impact in both 2022/23 and 2023/24;

·         The COVID provision money will be set aside in one general pot to be allocated as required;

·         Paragraph 8.24 and 8.25 detail that the Council will need to borrow at the end of the period;

·         Paragraphs 8.26 to 8.30 provides a commentary on the reliability of estimates within the budget, as well as mentioning the CIPFA financial resilience index which is yet to be published;

·         Paragraph 8.32 highlights that the overall impact is that the Council needs to find a minimum of 1.5m savings over the next 5 years.

The following Members asked questions:

·         Councillor Terry Hone

In response to questions asked, the Service Director – Resources advised:

·         The Alternative Financial Model is accounted a year in arrears, the amount stated in 2022/23 is based on the performance of 2021/22. There is a risk this year that the Council won’t receive anything. The amount of the year after is an estimate based on County Council information.

Following the vote, it was:

RECOMMENDED TO CABINET:

(1)  That Cabinet approves the decrease in the 2021/22 working budget of £111k, as detailed in table 5;

(2)  That Cabinet recommends to Council to note the position on the Collection Fund and how it will be funded;

(3)  That Cabinet recommends to Council to note the position relating to the General Fund balance and that due to the risks identified a minimum balance of £2.95 million is recommended;

(4)  That Cabinet recommends to Council to approve the saving and investments as detailed in Appendix B;

(5)  That Cabinet recommends to Council to approve a net expenditure budget of £18.123m, as detailed in Appendix C.

(6)  That Cabinet recommends to Council to approve a Council Tax increase of £5 or a band D property (other bands with pro-rata increases). This is in line with the Medium Term Financial Strategy and is equivalent to 2.08%.

REASON FOR RECOMMENDATIONS: To ensure that all relevant factors are considered in arriving at a proposed budget and Council Tax level for 2022/23, to be considered by Full Council on 10 February 2022. To ensure that the budget is aligned to Council priorities for 2022/23 as set out in the Council Plan.