Agenda item

report to follow

Tim Willis introduced the report and made the following points:

• The report was considered first by Cabinet on 17 January 2017;
• Council continued to face significant government cuts to the budget (especially the revenue support grant which had been reduced by about £1 million) over the coming years;
• Budget proposals were meant to minimise the impact of these cuts;
• New Homes Bonus had been reduced by over £1 million;
• Inflationary pressures on the cost side and pension revaluation and other smaller adjustments, contributed to a budget funding gap of about £2,6 million;
• Budget briefing sessions had been held for Members in addition to the formal Members Briefing sessions;
• Draw down on reserves of £450,000 was being proposed which would be paid back over a period of 3 years;
• Outcome of the New Homes Bonus review by government had an adverse effect on council budgets as it led to cuts in this funding source;
• Budget presumes (although not in the formal recommendations) an increase in council tax of £4.95 For Band D homes, which translate to 2.3%.

Members sought further clarifications by asking questions and made the following observations:

• In one section of the report there was reference to the draw down on reserves as £450,000 and in other sections the figure was £490,000. Why was there that anomaly?
• There was limited information regarding the rodent control and damp proofing budget provision, on how much was allocated for each of the two items;
• The comment that capital receipts from the Royal Sands development had not been allocated to capital projects required updating as some of the money had already been allocated. Of the initial amount was £3,55 million for the site, there is the remaining balance of £1,83 million as some of the money had already be used or allocated;
• There were cuts in council tax adjustments for minor preceptors. What would the contribution be from TDC to town/parish in respect of the precepts;
• Bar Charts have no scale heading in pages 36, 38 & 41 of the agenda pack. This would need to be corrected;
• The figure in the General Fund Revenue Budget (Budget Pressures) of £1,070k in Table 5 (on page 31 of the agenda pack) did not match up with the £700k + £340k which add up to £1,04 million of the same budget line in Table 2 (on page 26 of the agenda pack);
• How had the council tax base figures been worked out as the number of properties indicated seem to miss out new development?
• The comment on the section on the budget growth regarding the ‘reduction in rent of 12%, needed to be amended. This should read ‘reduction in rental income’ and not ‘reduction in average rent.’

In response to Member queries Tim Willis and Nicola Walker, Finance Manager (Finance Manager - HRA, Capital & External Funding) made the following comments:

• That there was an adjustment in the budget of £40,000 (in respect of the decriminalisation reserve) which was brought from the previous years (which has always been in the Medium Term Financial Strategy). This explains why the draw down figure adds up to £490,000 from the £450,000 highlighted in one part of the report;
• In respect of precepts, there was a 4 year settlement agreement with the government to honour the revenue support amounts. The decrease in precepts amounts will be in relation to the cuts from government;
• With regards to the disparity between the two figures in Table 5 and Table 2 (£1,070k & £1,040k), there was no direct mapping between the two figures. A break down of the figures would be provided after the meeting;
• The more accurate comment regarding the capital receipts from the Royal Sands development should read ‘the balance of the  capital receipts from the Royal Sands development;’
• Town/Parish councils could plan on the assumption that the amount of precepts will be halved 2018/19 and zero in 2019/20 (but this was not TDC policy as yet);
• The wording would be amended to regarding the comment on budget growth to read ‘reduction in rental income’ and not ‘reduction in average rent.’

The panel agreed the recommendations in the report, subject to the amendments proposed for the various sections of the report.