Agenda item - REVENUE BUDGET REPORT 2020/21

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To consider the draft budget for 2020/21 and the main factors which contribute to the determination of the North Hertfordshire District Council (NHDC) Council Tax level. To consider the appropriate level of Council Tax that will be recommended to the meeting of the Council on the 6 February 2020.

RECOMMENDED TO CABINET:

(1) That the decrease in the 2019/20 working budget of £200k, as detailed in table 6, be approved; and

(2) That the carry-forward of £88k of budget in to 2020/21, as detailed in table 6, be approved.

That Cabinet recommend to Council:

(1) That the transfer from reserves to the General Fund as detailed in 8.4.3 to 8.4.4 be approved;

(2) That the forecast savings target for future years and the approach to balancing the budget, as detailed in paragraph 8.9.4, be noted;

(3) That the Collection Fund and how it will be funded be noted;

(4) That the position relating to the General Fund and that due to the risks identified a minimum balance of £2.45 million is recommended, be noted;

(5) That the savings and investments as detailed in Appendix B be approved;

(6) That a net expenditure of £14.974m, as detailed in Appendix C, be approved; and

(7) That a Council Tax increase of £5 for 2020/21 for a band D property, with other increases pro-rata to this, be approved.

REASONS FOR DECISIONS:

(1) To ensure that all the relevant factors are taken in to consideration when arriving at the proposed Council Tax precept for 2020/21; and

(2) To ensure that Cabinet recommends a balanced budget to Full Council on 6 February 2020.

Audio recording – 21 minutes 37 seconds

The Service Director – Resources presented the report entitled Revenue Budget Report 2020/21 together with the following appendices:

· Appendix A - Financial Risks;

· Appendix B - Revenue Budget Savings;

· Appendix C - Budget Summary 2020-24.

The Service Director Resources drew attention to the following:

· This version of the budget would be referred to Cabinet and, subject to any amendments, be referred to Council in February 2020;

· Council would then use this to set a budget for next year and, as a result would set the Council Tax for the District Council for that year;

· Section 8.1 detailed the General Funding;

· Table 1 set out the forecast over a number of years, although there were a number of uncertainties;

· Table 2 detailed the grant funding currently being received;

· Section 8.2 set out the Business Rates and Council Tax Collections Fund;

· Section 8.4 was a review of balances and reserves;

· Image 5 showed indicators of financial stress;

· Section 8.6 set out expenditure forecasts;

· The amount expected from recycling of paper collected from residents was significantly lower than the current contract due to market forces;

· Approximately £1.2 million savings would be required;

· Section 8.7 set out revenue effects on capital;

· The Property Acquisition Strategy would require significant investment and therefore some borrowing, but this had not been factored into the busget either for expenditure, interest or potential income;

· Section 8.8 set out reliability of estimates.

· There was a need to increase Council Tax in order to cover estimated expenditure in this and future years.

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

· Councillor Michael Weeks;

· Councillor Steve Jarvis;

· Councillor Sam North.

The Service Director – Resources advised:

· It was prudent to make provision for any purchases that the Council may make;

· It was better to prepare for potentially difficult circumstances;

· Balances could be use to balance the budget over a short term.

Members agreed that the details in Paragraph 8.9, in particular the amount of savings required (£1.2million) be emphasised to Cabinet