Agenda item

The Director of Resources presented the report for Members’ approval.

The paper had been presented to the Corporate Policy and Resources Committee on 9 February 2017 based on the provisional settlement announced on 15 December.  On 20 February the final settlement was announced with little change.  Therefore the document was as presented to Corporate Policy and Resources Committee.

NNDR settlement funding had now been finalised and was contained at paragraph 2.6.  The budgeted NNDR income was provided in Appendix A.

The budgeted net income was £2.266m after funding the previous year deficit of £1.060m.  The overall benefit continued to be £276k from the pool.  This would be updated for the budget book.

The Medium Term Financial Plan was the primary strategic financial document for the authority and set out the local and national context, and the revenue and capital plans for the next five years.

The document also met a number of regulatory requirements:-

i)              The requirement to agree a balanced budget for the coming year 2017/18;

ii)             The requirement to establish the level of Council Tax for 2017/18; and

iii)            Meet current best practice (supported by CIPFA) by setting the budget in a medium term time horizon.

Over the last four years West Lindsey had reduced expenditure by £4.4m reflecting the reduction in core spending power as calculated by central government.

The impact of the settlement included:-

i)              Reduction in Rural Services Grant (RSG) by a further £626k

ii)             Changes to New Homes Bonus reducing expected income by £371k

iii)            The settlement reflects the four year deal offered in February 2016 and therefore delivered the expected level of RSG.

The document had been restructured this year to incorporate the Council’s business plan commitment in section 3.  The financial implications of the settlement and the authority’s business plan commitments were reflected in section 4.  Members were then referred to paragraph 4.11.2 which set out the underlying assumptions of the MTFP.

On that basis, and with the savings reflected in paragraph 4.12 the Council was able to agree a balanced budget for 2017/18 and 2018/19 with a remaining deficit in year 2020/21 of over £400k.

The Council Tax position was set out for Members in paragraph 3.5.

The Medium Term Financial Plan set out an ambitious capital programme in Appendix E.  the programme totalled over £53m and was planned to be funded from reserves, capital receipts, borrowing and grants.

A risk analysis was included in Part 9 of the document.  As the authority took a commercial approach to its activities there were specific risks to be highlighted.  Firstly the assumption of commercial returns on the acquisition of investment properties. If it was not possible to find suitable acquisitions this could be an issue going forward.  Secondly the assumption of introduction of Green Waste Charging in 2018/19, which, if not introduced would need alternative strategies to deliver the budget indicated.

Finally, Members were reminded that earlier in the financial year the authority’s budget process had received a full assurance outcome from internal auditors and the S151 paragraph and the statement on robustness of estimatesand adequacy of reserves, was set out at section h of the report.

The Leader of the Council thanked the Director of Resources and the Finance Team for an excellent report and budget position.  The Plan should be seen as a journey to be taken over a four year period, with the route set, but not in stone.  The budget was sound but had the flexibility needed to address external influences outside of the Council’s control.  The Leader moved the 12 Recommendations.

Debate ensued with Members welcoming a positive report, seeking and receiving clarification on a number of matters, such as New Homes Bonus, Market Rasen Car Parking, and the status of the Municipal Bonds Agency.

The Ward Member for Fiskerton noted that whilst the Council had received national recognition for its progress on Neighbourhood Plans, this could not be said for Fiskerton as the Plan was not what the village wanted.  A Point of Order was raised that the matter was not relevant at this point.  The Chairman also noted that WLDC had no control over the production of Neighbourhood Plans, merely provided support at the preparation stage, and that it was up to residents to decide at Referendum.

Further clarification was then sought on the increase to borrowing limits when risk should be minimised wherever possible.  The response was that investments should generate enough head room to fund borrowing, and that the Treasury Management Strategy only allowed borrowing that was covered by such means.

The recommendations were moved and seconded en bloc, and in accordance with required legislation for voting on the Council’s budget, a recorded vote was taken.

For: Councillors Bardsley, Bibb, Bierley, Brockway, Devine, Duguid, Fleetwood, Howitt-Cowan, Kinch, Lawrence, G McNeill, J McNeill, Milne, Oaks, Patterson, Smith, Strange, Summers, and White.

Against: Councillors Cotton and Darcel.

Abstained: Councillors Boles, Rainsforth, Rodgers, Rollings, Shore and Young.

A total of 19 votes for, two against and six abstentions. 

RESOLVED that:

a)    the external environment and the severity of the financial challenges being faced as detailed in the Financial Strategy, be recognised;

b)    the Statement of the Chief Finance Officer on the Robustness of Estimates and Adequacy of Reserves be accepted;

c)    the Medium Term Financial Plan 2017/18 to 2021/22 be approved;

d)    a Mid-Year Review of the Medium Term Financial Plan be received during 2017/18;

e)    the Revenue Budget 2017/18 at Appendix A, be set;

f)     the Fees and Charges Policy be approved and the Fees and Charges 2017/18 (as amended) (Appendices B&C) be set;

g)    the Capital Investment Strategy (Appendix D) be adopted;

h)   the Capital Programme 2017/18 to 2021/22 and Financing (Appendix E) be approved;

i)     the Treasury Management Strategy 2017/18 be approved and the Treasury Investment Strategy, the detailed Counter Party criteria, the Treasury and Borrowing Prudential Indicators (Appendix F) be adopted;

j)      the Minimum Revenue Provision (MRP) Policy as contained in the Treasury Management Strategy (Appendix F) be approved

k)    the Council Tax (Appendix G-K) be approved; and

l)     the 2017/18 Pay Policy Statement and establishment numbers (Appendix L) be approved.