Agenda item

Report of the Interim Executive Director – Finance and Governance

Purpose of report

The Business Plan and Summary Medium Term Financial Strategy are presented as an integrated report. This demonstrates the Council’s strategic approach to aligning its resource to the delivery of Council’s priorities.

This report details the Business Plan 2019/20 and the Council’s Medium Term Financial Strategy (MTFS) for 2019/20 to 2023/24 prior to final approval by full Council in February 2019.

Recommendations

The meeting is recommended:

1.1. To consider and recommend to Executive approval of the Business Plan set out in Appendix 1.

1.2. To note the Risk Register contained at Appendix 2.

1.3. To consider and recommend to Executive an increase in the level of Council Tax for Cherwell District Council of £5 for 2019/20.

1.4. To consider and recommend to Executive approval of the Medium Term Financial Strategy (MTFS), Revenue Budget 2019/20 and Capital Programme including recommending the growth and savings proposals included at Appendix 9.

1.5. To consider and recommend to Executive a minimum level of General Fund reserves of £2m.

1.6. To consider and recommend to Executive that authority be delegated to the Chief Finance Officer in consultation with the Lead Member for Finance & Governance, and where appropriate the relevant Director and Lead Member to:

· Transfer monies to/from earmarked reserves should that become necessary during the financial year.

· Update prudential indicators in both the Prudential Indicators Report and Treasury Management Strategy Report to Council, for any budget changes that impact on these.

1.7. To consider and recommend to Executive that the Fees & Charges set out in Appendix 7 be approved.

1.8. To consider and recommend to Executive that the Treasury Management Strategy be approved, including the Prudential Indicators, Minimum Revenue Provision (MRP) Policy and Affordable Borrowing Limit for 2019/20.

1.9. To consider and recommend to Executive that authority be delegated to the Chief Finance Officer to make any technical changes necessary to the papers for the Council meeting of 25 February 2019, including changes related to the finalisation of the national Finance Settlement and any associated changes to Parish Precepts and Council resulting from those changes.

1.10 To note the contents of the Section 25 report from the Chief Finance Officer in relation to the robustness of estimates and adequacy of reserves.

Resolved

(1) That having reviewed the Business Plan it be recommended to Executive and then Full Council for approval.

(2) That, having given due consideration, the Risk Register be noted.

(3) That the increase in the level of Council Tax for Cherwell District Council of £5 for 2019/20 be recommended to Executive and then Full Council.

(4) That the Medium Term Financial Strategy (MTFS), Revenue Budget 2019/20 and Capital Programme including the growth and savings proposals be recommended to Executive and then Full Council for approval.

(5) That, having given due consideration, the minimum level of General Fund reserves of £2m be recommended to Executive and then Full Council.

(6) That Executive be recommended to agree and recommend to Full Council that authority be delegated to the Chief Finance Officer in consultation with the Lead Member for Finance & Governance, and where appropriate the relevant Director and Lead Member to:

· Transfer monies from/to earmarked reserves should that become necessary during the financial year.

· Update prudential indicators in both the Prudential Indicators Report and Treasury Management Strategy Report to Council, for any Budget changes that impact on these.

(7) That, having given due consideration, the Fees & Charges be recommended to Executive and then Full Council for approval.

(8) That Executive be recommended to agree and recommend to Full Council that authority be delegated to the Chief Finance Officer to make any technical changes necessary to the papers for the Council meeting of 25 February 2019, including changes related to the finalisation of the national Finance Settlement and any associated changes to Parish Precepts and Council resulting from those changes.

(9) That the contents of the Section 25 report from the Chief Finance Officer in relation to the robustness of estimates and adequacy of reserves be noted.

The Committee considered a report from the Interim Executive Director – Finance and Governance, which detailed the Business Plan 2019/20 and the Council’s Medium Term Financial Strategy (MTFS) for 2019/20 to 2023/24 prior to final approval by full Council in February 2019.

In introducing the report, The Interim Executive Director – Finance and Governance advised that it was important to ensure that the sustainable management of resources continued, in order to plan for and adequately manage risks.

Following questions from the Committee regarding the replacement of the HR and Payroll systems, the Deputy Section 151 Officer reassured Members that this was not related to the ongoing separation with South Northamptonshire Council. The contract for one system was due to expire in April 2020, and it was common practice to start procurement for a replacement system 18 months in advance, and issues had occurred with the other system which meant a new solution would need to be put in place.

In response to questions from Members regarding the Capital Bid for costs for a new air handling unit at Banbury Museum, the Interim Executive Director – Finance and Governance explained that as a result of the project having previously been given Heritage Lottery Funding, there were conditions attached which meant Cherwell District Council were financially responsible for a period of time. The cost of upgrading the unit would help to ensure the museum could become self-sufficient in the future.