Agenda item

Report of Director of Resources

Purpose of report

The Council is required to produce a balanced budget for 2015-16 as the basis for calculating its level of Council Tax.  It 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. 

The first draft was reported to the Executive meeting on 1 December 2014.  The information has now been updated to reflect changes since then and, subject to any further changes. Members may wish to include tonight, this final draft will be used to prepare a final budget proposal to be presented to Full Council on 23 February 2015.

Recommendations

The meeting is recommended:

1.1       To consider and approve the draft budget in the context of the Council’s service objectives and strategic priorities.

1.2       To approve the balanced budget.

1.3       To recommend to full council a Council tax freeze or amend the proposals contained within this report to recommend a different level of Council Tax.

1.4       To agree the proposed 2015-16 capital programme (detailed in Appendix 3).

1.5       That the draft 5 year strategy, 2015-16 council objectives, 2015-16 performance pledges, 2015-16 business plan be endorsed and to delegate authority to the Director of Resources in consultation with the Leader of the Council and the Lead Member for Performance and Customers to make any minor amendments to the plan or pledges as required before final publication in March 2015. (detailed in Appendices 4, 5, 6 and 7).

1.6       To note the 2015-16 Business Plan and Budget Equality Impact Assessment (detailed in Appendix 8).

1.7       To note the latest MTFS financial forecast is currently being refreshed and will be reported back to the Executive once this exercise has been completed. 

1.8       To Recommend, subject to any further changes Members may wish to include tonight, the updated draft revenue budget for adoption by the Council on 23 February 2015 (as a key decision).

1.9       To delegate authority to the Head of Finance and Procurement, in consultation with Director of Resources and the Lead Member Financial Management to amend the contributions to or from general fund balances to allow the Council Tax increase to remain at the level recommended by Executive to full council following the announcement of the final settlement figures and as a result of any financial implications arising from recommendation 1.8.

Resolved

(1)          That the draft budget in the context of the Council’s service objectives and strategic priorities be approved.

(2)          That the balanced budget be approved.

(3)          That Full Council be recommended to approve a Council tax freeze.

(4)          That the proposed 2015-16 capital programme (annex to the Minutes as set out in the Minute Book) be agreed.

(5)          That it be noted the latest Medium Term Financial Strategy (MTFS) financial forecast was currently being refreshed and would be reported back to Executive once this exercise had been completed.

(6)          That Full Council be recommended to approve the updated draft revenue budget at its 23 February 2015 meeting.

(7)          That authority be delegated to the Head of Finance and Procurement, in consultation with the Director of Resources and the Lead Member Financial Management to amend the contributions to or from general fund balances to allow the Council Tax increase to remain at the level recommended by Executive to Full Council following the announcement of the final settlement figures, and as a result of any financial implications arising from resolution (6).

(8)          That Full Council be recommended to approved the draft 5 year business strategy, 2015-16 council objectives, 2015-16 performance pledges and 2015-16 business plan (annexes to the Minutes as set out in the Minute Book).

(9)          That the findings of the Equality Impact Assessment that had been undertaken in relation to both the proposed Business Plan and Budget for 2015/16 be noted.

The Head of Finance and Procurement and the Head of Transformation submitted a report which presented the draft budget and business plan 2015-16. The Council was required to produce a balanced budget for 2015-16 as the basis for calculating its level of Council Tax.  It 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. 

The report also detailed the proposed strategic priorities, the underpinning key objectives, and deliverables for 2015-16 which had now been converted into a proposed business plan for the Council.  The proposed business plan sits alongside the draft budget so as to demonstrate that the Council adopts a strategic approach to managing all of its resources by aligning the development and delivery of the Council’s priorities and key deliverables to the proposed budget.

The first draft budget was reported to the Executive meeting on 1 December 2014, along with the draft strategic priorities and key deliverables for the Council for 2015-16. The draft budget had been reviewed by the Budget Planning Committee and the strategic priorities/key deliverables had since been considered by the Overview and Scrutiny Committee, who proposed no amendments.

The budget information had been updated to reflect changes since the December meeting of Executive and, subject to any further changes, this final draft would be used to prepare an integrated final budget and business plan (detailing the strategic priorities and annual deliverables for 2015-16) to be submitted to Full Council on 23 February 2015.

Resolved

(1)          That the draft budget in the context of the Council’s service objectives and strategic priorities be approved.

(2)          That the balanced budget be approved.

(3)          That Full Council be recommended to approve a Council tax freeze.

(4)          That the proposed 2015-16 capital programme (annex to the Minutes as set out in the Minute Book) be agreed.

(5)          That it be noted the latest Medium Term Financial Strategy (MTFS) financial forecast was currently being refreshed and would be reported back to Executive once this exercise had been completed.

(6)          That Full Council be recommended to approve the updated draft revenue budget at its 23 February 2015 meeting.

(7)          That authority be delegated to the Head of Finance and Procurement, in consultation with the Director of Resources and the Lead Member Financial Management to amend the contributions to or from general fund balances to allow the Council Tax increase to remain at the level recommended by Executive to Full Council following the announcement of the final settlement figures, and as a result of any financial implications arising from resolution (6).

(8)          That Full Council be recommended to approved the draft 5 year business strategy, 2015-16 council objectives, 2015-16 performance pledges and 2015-16 business plan (annexes to the Minutes as set out in the Minute Book).

(9)          That the findings of the Equality Impact Assessment that had been undertaken in relation to both the proposed Business Plan and Budget for 2015/16 be noted.

Reasons

This report presents a final analysis of the Council’s draft 2015-16 revenue and capital budget.  This will be presented to Full Council on the 23 February to support the setting of the Council Tax.

It is a legal requirement to set a balanced budget and the recommendations as set out represent what is believed to be the best way of achieving this. 

Alternative Options

To reject the current proposals and to make alternative recommendations or ask officers for further information.