Issue - meetings

The Director of Resources presented the report which set out the declaration of the estimated surplus on the Council’s Collection Fund relating to Council Tax at the end of March 2017 and how it was shared amongst the constituent precepting bodies.  It also set out the Council Tax base calculation for 2017/18. The tax base was a key component in calculating both the budget requirement and the Council Tax charge.

The estimated surplus for the year was £218,896, an increase of £16,813 against the budgeted figure.  This had to be taken into account when setting the Council Tax for 2017/18.

The West Lindsey share of the £218,896 included an average of the Parish and Town Council precepts.  This changed the ranking from that reflected in the Council Tax leaflet, where WLDC was shown as receiving less than both the Police Authority and the County Council as a proportion of the total Council Tax paid by residents.

The basis of calculating the Council Tax Base was set out in paragraph 2 of the report.  Members were therefore asked to agree the Council Tax Base of £28,959.46 – a small increase on 2016/17.

The recommendations as set out in the report were moved, seconded and voted upon.

RESOLVED that:-

a)    the estimated surplus of £218,896 be accepted and be declared as accruing in the Council’s Collection Fund at 31 March 2017 relating to an estimated Council Tax surplus;

b)    the Council uses its element of the Collection Fund surplus/deficit in calculating the level of Council Tax in 2017/18; and

c)    the calculations of the Council’s tax base for 2017/18 as set out in Appendix A be approved, and that in accordance with the Local Authorities’ (Calculation of Council Tax Base) Regulations 1993 (as amended), the tax base for each part of the Authority’s area shall be as set out in Appendix B.

The Director of Resources presented the report which was an annual requirement to declare an estimate of the surplus or deficit that would occur on the Collection Fund at the end of each year. The Collection Fund recorded the amount of income collected from Council Tax, together with precept payments to principal authorities. These elements would generate a surplus or a deficit which had to be taken into account when determining the Council Tax in the following year.

Any surplus or deficit generated through the Collection fund in relation to Council Tax was shared between the County Council, the Lincolnshire Police Authority and West Lindsey District Council in the same proportion as the amount of their precepts for 2016/17.  A surplus or deficit could occur in the Collection Fund if the Council Tax Base was larger or smaller than originally anticipated or collection rates were higher or lower than expected.

The amount calculated as available from the Collection Fund for distribution during 2017/18 had been calculated as £1,373,882

This amount would be shared amongst the precepting authorities as follows:

                                                                                                             £

                                     Lincolnshire County Council                             979,960

                                     Lincolnshire Police Authority                            175,026

                                     West Lindsey District Council                           218,896

                                                                                                    -------------

                                                                                                          £1,373,882

Appendix A of the report set out the summary of the calculation and adjustments taken into account.

Questions were asked around the rank order of the County, Police and WLDC as it was thought that the police had had a bigger proportion than WLDC in the previous year.  The Collection Fund Surplus report submitted to the Committee in January 2016 was checked and it was verified that the ranking was the same.

The impact of the increase in Tax Base on Council Tax was questioned and it was advised that if the base budget remained unchanged then it would lead to a small reduction in Council Tax, however the budget needed to be agreed before the real impact could be calculated.

Members agreed that the report showed a positive outturn from last years’ budget and the recommendations were moved, seconded and voted upon.

RESOLVED that:

a)    It be recommended to Council that the estimated surplus of £218,896 be declared as accruing in the Council’s Collection Fund at 31 March 2017 relating to an estimated Council Tax surplus;

b)    the Council uses its element of the Collection Fund surplus/deficit in calculating the level of Council Tax in 2017/18.

c)    the calculations of the Council’s tax base for 2017/18 as set out in Appendix A be recommended to Council, and that in accordance with the Local Authorities’ (Calculation of Council Tax Base) Regulations 1993 (as amended), the tax base for each part of the Authority’s area shall be as set out in Appendix B.