Issue - meetings

Meeting: 07/03/2022 - Council (Item 76)

76 Executive Business Plan 2022/23 to 2024/25, Medium Term Financial Plan 2022/23 to 2026/27, Council Tax and Revenue Budget 2022/23 and Capital Programme 2022/23 to 2026/27 pdf icon PDF 2 MB

Additional documents:

Minutes:

Members gave consideration to a report which presented the Executive Business Plan 2022/23 and the Medium Term Financial Plan (MTFP) 2022/23 – 2026/27 presented by the Section 151 Officer.  These documents were central to the Council’s financial and strategic planning for the period 2022/23 to the 2026/27 and also included the Council Tax requirement for 2022/2023.

 

The Executive Business Plan, provided the context in which the Authority was working, with both national and local factors and detailed the work to be carried out over the next 3 years to support delivery of the Council’s Corporate Plan Objectives.

 

The Medium Term Financial Plan, explained the Authority’s financial strategies over the medium term, and the budget forecasts to support sustainable service delivery and funding for initiatives to deliver the Corporate plan through revenue and capital investment. 

 

The Treasury Management Strategy, brought these elements together to enable management of the Authority’s  cash flows through investment and borrowing and ensured that Capital Investment decisions were both affordable and sustainable. 

 

Members were advised the overall capital financing requirement was £38.2m and that this would reduce over the medium term as minimum revenue provision (principal repayments were made). 

By the end of 2022/23 the external borrowing was forecast to be £26.5m with internal borrowing of £11.74m. 

 

Members were also advised that there had been a change to the MRP policy, which would result in a charge to reduce prudential borrowing against investment assets.  This change had been made in anticipation of a change in legislation in this regard.

 

The Budget for 2022/23 had been based on a Council tax increase of £5 which continued the Council’s long-term aim of being non-reliant on Government funding.  The average West Lindsey District Council Tax for 2022/23 would be £227.74 reflecting a 2.24% increase, with the overall average Council Tax (including Lincolnshire County Council, the Police Crime Commissioner and Parish Precepts totaling £2,011.40, an overall 4.45% increase.

 

Whilst the Government had provided a 1 year financial settlement, additional funding in the form of a £208,000 Services Grant and an additional year of New Homes Bonus totaling £841,000 would be earmarked for future investment. 

 

The 1 year settlement meant ongoing uncertainty remained in relation to future funding levels. Both the Fairer Funding and Business Rate Retention Scheme reviews were awaiting finalisation as part of the Government’s overall review of  Local Government funding. 

 

Assurance was given that the Council would remain proactive in delivering it’s Financial Strategy over the medium term, with the aim of long term sustainability. This would be achieved through good financial management, investment for growth of its tax base, service reviews, investment in technology and a commercial approach to delivering services.

 

Financial gains from the 2022/23 had been achieved as result of the Council being allowed to retain a further year of business rates growth and it had also benefitted from a further year of New Homes Bonus, this had enabled the Authority to increase its reserves to support delivery of the corporate strategies (£1.175m).

 

£0.562m had been  ...  view the full minutes text for item 76


Meeting: 10/02/2022 - Corporate Policy and Resources Committee (Item 75)

75 Executive Business Plan and Medium Term Financial Plan 2022/23 pdf icon PDF 2 MB

Additional documents:

Minutes:

The Committee gave consideration to the final budget report of the evening, presented by the Assistant Director of Finance and Property Services and Section 151 Officer. She explained that the purpose of the Executive Business Plan was to set out the actions the Executive would take to deliver the Corporate Plan objectives over the next 3 years. The purpose of the Medium Term Financial Plan (MTFP) was to set a robust overall framework for the Council’s Financial Strategy and spending plans over the next 5 years in support of delivering the Corporate Plan. The report set out the revised financial plans within the Financial Analysis for changes in Government Funding, the economic environment, local engagement and the priorities for the Council. The plan reflected the revisions to previous estimates and covered the period 2022/23 to 2026/27. The Medium Term Financial Analysis included the draft budget for 2022/23 for scrutiny and consideration prior to recommending to Council.

 

Members heard that the report presented a balanced budget for 2022/23, without the requirement to support it with funds from the General Fund Balance. It addressed the financial implications arising from the recommended revisions to the MTFP and the requirement to determine the Council Tax for 2022/23 taking into account the approved Tax Base 31,038.46 and Council Tax Surplus £0.225m. It was noted that the Provisional Settlement was announced on 16 December 2021 and had been incorporated into this report, the grants were in line with expectations for a one year settlement with the addition of a Services Grant of £0.208m and a further allocation of Local Services Grant of £0.136m.

 

The 2022/23 Draft Budget totalled £14.977m and was fully funded and presented a balanced budget. Contributions to Earmarked Reserves totalled £2.637m and Use of Earmarked Reserves totalled £1.692m and were projected to be £16.163m at the end of 2022/23. The movement on the General Fund Balance was a reduction of £0.777m and was forecast to be £3.320m at the end of 2022/23. The Capital Programme totalled £33.458m over the Medium Term Financial Plan and was fully funded.

 

In response to questions from Members regarding the civic car and recent increases in car prices, it was explained it was an estimate and would be reviewed but was the amount available in current budgets. There had also been a question regarding the extension of Gainsborough cemetery and this was clarified to be the responsibility of the District Council and was needed to increase the number of plots available. The extension was not to purchase additional land but rather to extend access routes to areas of the existing cemetery.

 

A Member of the Committee enquired as to future indications of Officer resourcing, to which it was explained that there would be some efficiencies made due to natural wastage.

 

The Chairman thanked all for their comments and, having been moved and seconded, it was

 

            RESOLVED that

 

a)    the approval of the Executive Business Plan and Medium Term Financial Plan 2022/23 – 2026/27 be recommended to Council;

 

b)  ...  view the full minutes text for item 75