Issue - meetings

** Please note that Appendix 1 and Appendix 2 will follow as they are currently being finalised following the announcement of the Government settlement **

Report of Head of Finance and Procurement

Summary

The Council has to adopt a budget for 2013/14 as the basis for calculating its level of Council Tax and has to base that budget on its plans for service delivery during the year, recognising any changes in service demand that may arise in future years.  This is the first of two opportunities that the Executive has to shape and refine the appending plans before the final budget is presented to the Council on 27 February 2013.

Recommendations

The Executive is recommended to:

(1)               consider the draft revenue budget (detailed in Appendix 1);

(2)               note the recommendations of the scrutiny reviews of discretionary expenditure and the capital programme that were considered at the Resources and Performance Scrutiny Board meetings October 2012 to December 2012 and detailed in Appendix 2;

(3)               advise of any other matters they would like taken into consideration in producing a balanced budget for the meeting of the Executive on 4 February 2013;

(4)               endorse the passporting of the Council Tax Reduction Scheme (CTRS) grant to local preceptors as detailed in Para 2.20-2.26.

(5)               note the decision taken in  Oxfordshire not to progress with a pool

Resolved

(1)               That the draft revenue budget be agreed subject to the amendments to the proposed capital programme 2013/14 detailed in resolution (2). 

(2)               That the recommendations of the scrutiny reviews of discretionary expenditure and the capital programme that were considered at the Resources and Performance Scrutiny Board meetings October 2012 to December 2012 be noted and endorsed subject to the following amendments:

·        Financial System Upgrade: If any implications in the specification connected to document capture and storage then defer any expenditure until final decision on the bid for a Corporate – Electronic Document and Records Management System (EDRMS) and the ensuing detailed business case.

·        Highfield Depot Feasibility: Original bid of £200k to be reinstated to incorporate proposed redevelopment of office and welfare facilities at Highfield Depot in addition to a feasibility study

·        Community Facilities Grant Scheme: To become Community Facilities Loan Scheme

·        Cherwell District Council and South Northamptonshire Council Customer Services Desktop as a Service (DaaS): Include this bid in the proposed Capital Programme 2013/14 subject to similar approval by South Northamptonshire Council

(3)               That no further matters to those set out in these resolutions be requested to be taken into consideration in producing a balanced budget for the meeting of the Executive on 4 February 2013.

(4)               That the passporting of the Council Tax Reduction Scheme (CTRS) grant to local preceptors be endorsed.

(5)               That the decision taken in Oxfordshire not to progress with a pool be noted.

The Head of Finance and Procurement submitted a report which provided the first of two opportunities that the Executive had to shape and refine the appending plans before the final budget was presented to the Council on the 27 February 2013. The Council has to adopt a budget for 2013/14 as the basis for calculating its level of Council Tax and has to base that budget on its plans for service delivery during the year, recognising any changes in service demand that may arise in future years. 

In introducing the report the Lead Member for Financial Management reported that the draft General Fund Revenue budget has been prepared in accordance with the guidelines agreed by the Executive at its meeting on 1 October 2012 which were based on a 5% reduction in government funding. The Government announced its provisional settlement on 19 December 2012 which showed a 5.4% reduction in 2013/14 grant funding and a 15% reduction in 2014/15.

The Lead Member for Financial Management confirmed that the Council would meet its 2012/13 public promise to deliver at least £800,000 of budget reductions by April 2013. To date £1,009,000 had been achieved which had been built into the first draft of the budget.

The Executive was advised that the projected shortfall at draft 1 required a further reduction in costs or increase in income of £230,000. A number of areas to eliminate the deficit had been identified and the outcome of these reviews and their implication on the current budget shortfall would be presented to the February meeting of Executive in February 2013. It was confirmed that at this stage it was expected a balanced budget for 2013/14 would be achieved without the need to use any New Homes Bonus, business rate growth or general reserves.

The Lead Member for Financial Management reported on Council Tax localisation whereby eligible residents received a discount on their council tax rather than a benefit. This meant that the tax base would be reduced for all precepting authorities and most parish Councils would see a shortfall in their funding. Government guidance indicated that the billing authority should work with parishes on the distribution of the council tax reduction grant funding. It was proposed that CDC agree to passport an appropriate element of the council tax reduction grant to parishes to help mitigate their financial risk. Any further shortfalls will be subject of individual negotiations with individual parishes. Approval of the Council Tax Reduction Scheme, revised discounts and exemption and the final taxbase would be sought at full Council on 21 January 2013.

The Lead Member updated Executive on business rate pooling. The announcement of the Government settlement had confirmed the business rate baselines. As a result of this information and change to levy rates the pool was now not financially attractive and the request to be part of the Oxfordshire pool had been withdrawn.

Councillor Mawer, Chairman of the Resources and Performance Scrutiny Board (R&PSB), presented the recommendations and conclusions of the  ...  view the full minutes text for item 84