Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To consider the Draft Budget 2020/2021.

RESOLVED:

(1)       That Cabinet note the funding forecasts for 2020/21 onwards, and that (especially significant for 2021/22 onwards) these will be subject to change;

(2)       That the comments made at the budget workshops in regard to the draft budget be noted;

(3)       That the comments made at the budget workshops in regard to the inclusion of the capital investments in the draft budget be noted;

(4)       That the risk in relation to the timing of capital receipts and that this might result in a need to borrow for capital purposes, which would result in additional revenue costs to those already reflected be noted;

(5)       That it be noted that Council Tax increases for 2020/21 will be in line with the Medium Term Financial Strategy (i.e. the maximum amount allowed without the need for a local referendum).

(6)       That it be approved that the funding surplus in 2020/21 be transferred to a funding equalisation reserve. This reserve will then be released in future years to help balance the budget;

(7)       That the need to start budget planning for 2021/22 (and beyond) early in the new financial year (2020/21) and the proposed process be noted;

(8)       That R26 – Additional Community Engagement Officer post be removed from the New Revenue Pressures and Investment Proposals (Appendix B).

REASONS FOR DECISIONS:

(1)       To ensure that all relevant factors are taken in to consideration when arriving at a proposed budget for 2020/21, to be considered by Full Council on 6 February 2020;

(2)       To ensure that the medium term impacts of decisions are considered, and how a balanced budget will be set for future years.

Audio recording – 48 minutes 25 seconds

The Executive Member for Finance and IT presented the report entitled Draft Budget 2020/21 together with the following appendices:

·                Appendix A - Full list of Revenue Savings and Investments;

·                Appendix B - Comments on new Revenue proposals from budget workshops;

·                Appendix C - Full proposed Capital Programme.

The Executive Member for Finance and IT proposed that recommendation 2.1 be amended to read:

“That Cabinet note the funding forecasts for 2020/21 onwards, and that (especially significant for 2021/22 onwards) these will be subject to change”

He further advised that:

·                There was a one-year settlement for 20/21 giving a degree of certainty for that year, however this meant some uncertainty for future years;

·                This was the first draft of the budget a further report would be considered by Cabinet in January 2020;

·                The capital programme (excluding property investment acquisitions) could be afforded without a need to borrow;

·                There was a need for the Council to start to plan now for future projects;

·                As the opportunity for any further efficiencies is expected to be very limited, it is proposed that this will include a review of all current spend identifying those areas which are discretionary services or services that are delivered in excess of the statutory requirement.

The Chairman drew attention to the referral from the Finance, Audit and Risk Committee meeting held on 5 December 2019 and noted that no additional recommendations to those in the report had been made.

The following Members asked questions and took part in the debate:

·                    Councillor Martin Stears-Handscomb;

·                    Councillor Judi Billing;

Councillor Judi Billing proposed that R26 – Additional Community Engagement Officer post be removed from the New Revenue Pressures and Investment Proposals (Appendix B).

It was moved by Councillor Ian Albert, seconded by Councillor Martin Stears-Handscomb and:

RESOLVED:

(1)       That Cabinet note the funding forecasts for 2020/21 onwards, and that (especially significant for 2021/22 onwards) these will be subject to change;

(2)       That the comments made at the budget workshops in regard to the draft budget be noted;

(3)       That the comments made at the budget workshops in regard to the inclusion of the capital investments in the draft budget be noted;

(4)       That the risk in relation to the timing of capital receipts and that this might result in a need to borrow for capital purposes, which would result in additional revenue costs to those already reflected be noted;

(5)       That it be noted that Council Tax increases for 2020/21 will be in line with the Medium Term Financial Strategy (i.e. the maximum amount allowed without the need for a local referendum).

(6)       That it be approved that the funding surplus in 2020/21 be transferred to a funding equalisation reserve. This reserve will then be released in future years to help balance the budget;

(7)       That the need to start budget planning for 2021/22 (and beyond) early in the new financial year (2020/21) and the proposed process be noted;

(8)       That R26 – Additional Community Engagement Officer  ...  view the full minutes text for item 67