Agenda item

To consider the Medium Term Financial Plan and to set the budget for 2018/19.

RECOMMENDED:

(a)     That is be agreed that there is a General Fund Net Budget Requirement in 2018/19 of £17,243,480 as set out in Appendix 4 to Report Item 7 to the Cabinet, including the use of reserves to finance the ICT protect and maintain frontline services projects, and one-off construction grants as set out in Appendix 3 to Report Item 7 to the Cabinet;

(b)    That the site licence fees and service charges at Stillwater Park be increased by 3.9% in line with RPI inflation;

(c)     That the Band D Council Tax for 2018/19 shall be £168.36;

(d)    That the General Fund Capital Programme for 2018/19 of £7.673m, as set out in Appendix 5 to Report Item 7 to the Cabinet be approved; and

(e)     That each of the prudential indicators, the Limits for 2018/19 to 2020/21 and the Minimum Revenue Provision Policy Statement, as set out in Appendix 6 to Report Item 7 to the Cabinet be approved and adopted.

Members considered the Medium Term Financial Plan to agree the General Fund revenue and capital budgets for 2018/19 and the level of Band D Council Tax.  It was noted that the details of the final finance settlement had not yet been received from the Government.

Since the Cabinet last considered the Medium Term Financial Plan in December 2017 there had been a number of developments, including a pay award offer of 2%, together with the introduction of a new minimum pay point of £8.50.  Available resources had also increased with additional New Homes Bonus and an increase in the Council Tax Base.  The summary of available resources was attached as Appendix 1 to Report Item 7 to the Cabinet, with the revised budget requirements summarised in Appendix 2.

It was noted that there would be a limited use of reserves, principally for the ICT “Protect and Maintain Service Delivery” project and the payment of one-off “construction grants”, as recommended by the Community Overview and Scrutiny Panel.

The General Fund net budget requirement, as set out in Appendices 4a and 4b to Report Item 7 to the Cabinet, was £17.243 million, an increase of £656,000 over the 2017/18 budget.  The Cabinet was pleased to note that net savings and improved income totalling £1.377 million had absorbed the projected pay and price increases and also made a contribution towards offsetting the reduction in Government funding.  The proposed central support service business unit budgets were set out in Appendix 4c to Report Item 7 to the Cabinet.

The proposed Band D Council Tax was £168.36, an increase of £5 (3.06%) from 2017/18.

The proposed General Fund Capital Programme, totalling £7.673 million, was set out in Appendix 5 to Report Item 7 to the Cabinet.  This included 2 major projects to be funded from reserves and capital receipts.  These were the development of a depot at Hardley Industrial Estate to replace Claymeadow Depot, Totton which was currently not operating satisfactorily; and investment to promote “Smarter Working”.

It was proposed to increase the fees and changes for the Stillwater Park by 3.9%, in line with RPI inflation in September.

RECOMMENDED:

(a)     That is be agreed that there is a General Fund Net Budget Requirement in 2018/19 of £17,243,480 as set out in Appendix 4 to Report Item 7 to the Cabinet, including the use of reserves to finance the ICT “Protect and Maintain Frontline Services” project, and one-off construction grants as set out in Appendix 3 to Report Item 7 to the Cabinet;

(b)    That the site licence fees and service charges at Stillwater Park be increased by 3.9% in line with RPI inflation;

(c)     That the Band D Council Tax for 2018/19 shall be £168.36;

(d)    That the General Fund Capital Programme for 2018/19 of £7.673m, as set out in Appendix 5 to Report Item 7 to the Cabinet be approved; and

(e)     That each of the prudential indicators, the Limits for 2018/19 to 2020/21 and the Minimum Revenue Provision Policy Statement, as set out in Appendix 6 to Report Item 7 to the Cabinet, be approved and adopted.