Agenda item

Resolved to recommend:

 

General Fund Revenue Estimate

 

a) a Dacorum Borough Council General Fund Council Tax requirement of £10.218m, and of £10.908m for the combined Borough Council and Parish Councils’ requirement for 2016/17;

 

b) an increase of 2.78% in Council Tax for Dacorum Borough Council;

 

c) the base estimates for 2016/17, as shown in Supplementary Appendix A1, and the indicative budget forecasts for 2016/17 – 2019-20, as shown in Supplementary Appendix A2;

 

d) the forecast balances of the Revenue Reserves as shown in the Supplementary Appendix J, and approve paragraphs 10-20 of the Cabinet report as the updated Reserves Strategy.

 

e) increases in Fees and Charges for 2016/17 as set out in Appendices C3, D3, and E3

 

f)    the Treasury Management Strategy for 2016/17, attached at Appendix K;

 

g)  the Treasury Management Principles and Practices for 2016/17, attached at Appendix L;

 

h)  that this budget paper, will form part of the Medium Term Financial Strategy

 

Four Year Settlement

 

i)       the Corporate Director (Finance & Operations) in consultation with Budget Review Group to decide on whether to accept Government’s offer of a four-year finance settlement.

 

Capital Programme

 

j)       the revised Capital Programme for 2015/16, and for 2016/17 to 2020/21, as detailed in Appendix I;

 

k)     the financing proposals in Appendix I subject to an annual review of the financing options by the Corporate Director (Finance & Operations), in consultation with the Portfolio Holder for Finance and Resources, during the preparation of the Statement of Accounts.

 

Housing Revenue Account (HRA)

 

l)       reduce dwelling rents by 1% in accordance with government legislation, resulting in an average rent of £105.19 per week (based on 52 weeks);

 

m)   the HRA estimate for 2016/17 as shown in Appendix F.

 

Terms & Conditions

 

n)     the continued application of a living wage supplement for all affected employees, in accordance with the rates of the Living Wage Foundation, for 2016/17 (to be reviewed annually thereafter).

 

Statement by Chief Finance Officer

 

o)     the statement by the Chief Finance Officer regarding the robustness of the budget estimates and level of reserves as set out in Appendix M.

 

Resolved to recommend:

 

General Fund Revenue Estimate

 

a) a Dacorum Borough Council General Fund Council Tax requirement of £10.218m, and of £10.908m for the combined Borough Council and Parish Councils’ requirement for 2016/17;

 

b) an increase of 2.78% in Council Tax for Dacorum Borough Council;

 

c) the base estimates for 2016/17, as shown in Supplementary Appendix A1,^* and the indicative budget forecasts for 2016/17 – 2019-20, as shown in Supplementary Appendix A2;

 

d) the forecast balances of the Revenue Reserves as shown in the Supplementary Appendix J, and approve paragraphs 10-20 of the Cabinet report as the updated Reserves Strategy.

 

e) approve increases in Fees and Charges for 2016/17 as set out in Appendices C3, D3, and E3

 

f)    approve and adopt the Treasury Management Strategy for 2016/17, attached at Appendix K;

 

g)   approve and adopt the Treasury Management Principles and Practices for 2016/17, attached at Appendix L;

 

h)   note that this budget paper, when approved by Council, will form part of the Medium Term Financial Strategy

 

Four Year Settlement

 

i)       delegate approval to the Corporate Director (Finance & Operations) in consultation with Budget Review Group to decide on whether to accept Government’s offer of a four-year finance settlement.

 

Capital Programme

 

j)       approve the revised Capital Programme for 2015/16, and for 2016/17 to 2020/21, as detailed in Appendix I;

 

k)     approve the financing proposals in Appendix I subject to an annual review of the financing options by the Corporate Director (Finance & Operations), in consultation with the Portfolio Holder for Finance and Resources, during the preparation of the Statement of Accounts.

 

Housing Revenue Account (HRA)

 

l)       reduce dwelling rents by 1% in accordance with government legislation, resulting in an average rent of £105.19 per week (based on 52 weeks);

 

m)   approve the HRA estimate for 2016/17 as shown in Appendix F.

 

 

Terms & Conditions

 

n)     approve the continued application of a living wage supplement for all affected employees, in accordance with the rates of the Living Wage Foundation, for 2016/17 (to be reviewed annually thereafter).

 

Statement by Chief Finance Officer

 

o)     approve the statement by the Chief Finance Officer regarding the robustness of the budget estimates and level of reserves as set out in Appendix M.

 

(^*Appendices can be found in the reports considered at Cabinet.)

 

Reason for Decision

 

To present to Cabinet budget proposals for recommendation to Council in relation to:

 

·        Revenue and Capital Expenditure together with the potential use of reserves

·        The setting of the Council Tax for 2016/17

·        The Treasury Management Strategy 2016/17

·        The level of fees and charges for 2016/17

·        Advice to Councillors on the robustness of the Budget proposals and adequacy of balances and reserves as required by the Local Government Act 2003

 

Implications

 

Financial & Value for Money

Contained within the body of the report

 

Risk Implications

 

Budget Risk Assessment completed within report (Appendix M)

 

Corporate Objectives

All of the Council’s corporate objectives are reflected in the Budget proposals.

 

Advice

 

The Corporate Director for Finance and Operations explained that following issue of the Final Local Government Finance Settlement on 8 February 2016, supplementary recommendations were therefore being recommended to Cabinet. Each recommendation listed in the supplementary report to Cabinet supersedes the recommendations of the same letter within the original Cabinet Report. All other recommendations in the Cabinet Report remain extant and are not superseded by the supplementary recommendations.

 

In addition he added that on 17 December 2015, the Provisional Local Government Finance Settlement for 2016/17 was announced. The Provisional Settlement formed the basis for the Council’s draft 2016/17 budget, which was scrutinised by Joint Overview & Scrutiny on 2 February 2016, and was subsequently published within the current Cabinet Report.

 

On 8 February 2016, the Final Local Government Finance Settlement for 2016/17 was announced, which contained a number of significant amendments from the provisional Settlement.

 

He noted that there could still be amendments required regarding the reduction in council rents and therefore a further paper to Cabinet may be required in February to be considered at a meeting immediately prior to Full Council.

 

The Chief Executive asked where the council would stand if the Bill was not an Act by the time the rent rates needed to be approved.

The Corporate Director for Finance and Operations said the council would be kept up to date with the options to be considered.

 

The Portfolio Holder for Housing felt that if the Bill was not an Act by the 1^st April 2016, then the proposals should not be implemented until the following year.

The Leader of the Council noted that the council was caught out with this a few years ago and had to act on the rent rates retrospectively, which was a very long and complicated process.

 

The Portfolio Holder for Environmental, Sustainability & Regulatory Services said that the council had to give a certain amount of weeks’ notice to its tenants about what their rent would be for the next financial year.

The Corporate Director for Finance and Operations said that Full Council will be asked to approve a ‘best guess’ rate which the tenants will be billed for. The council would have to act accordingly if this rate was subsequently amended.

 

The Leader of the Council said that there could be difficult challenges and decisions over the next few years to bridge the £4.2 mil gap.

 

Voting

 

None.