| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 13/016 |
Setting the Budget 2013/14 |
The joint report of the Chief Executive and Director of Finance and Transformation updated the Cabinet on issues relating to the setting of the Budget for 2013/14 together with the outcome of the examination of the draft Revenue Estimates and the Capital Plan review process undertaken by the Finance and Property Advisory Board and the Overview and Scrutiny Committee. It was noted that the Revenue Estimates as presented had been endorsed subject to the further deferral of the transitional increase in Members' allowances recommended by the Joint Independent Remuneration Panel. A more detailed supplementary report prepared in liaison with the Leader and Cabinet Member for Finance was circulated in advance of the meeting. This examined the situation in relation to the Medium Term Financial Strategy (MTFS) and gave details of the necessary procedure to be followed in order to set the budget for 2013/14. The report explained the components of the funding allocation in the final local government settlement confirmed by the Secretary of State for Communities and Local Government on 4 February 2013. Details were given of the outcome of representations made by the Council on the funding allocation in respect of the council tax support scheme and on concerns about the business rates retention scheme. The Director of Finance and Transformation updated the position arising from the Government's offer of a council tax 'freeze' grant for 2013/14 and the criteria for council tax referendums. Members were advised that the summary total for the 2013/14 estimates would be affected by the Council's decision on whether or not to accept the 'freeze' grant. The report illustrated the position for both scenarios, incorporating recently received details of Internal Drainage Board levies and reflecting the establishment changes reported to the General Purposes Committee on 4 February 2013. Attention was drawn to a summary of the recommendations from Advisory Boards regarding the levels of fees and charges to be implemented from 1 April 2013 which had been incorporated in the draft estimates. Members were reminded of the approach to preparation of the Capital Plan including recommendations that expenditure on improvements to existing car parks with an average annual spend of £30,000 be budgeted for outside the Capital Plan review process and the annual allowance be reduced to £320,000. An updated summary of the Capital Plan was set out at Annex 7 to the report including the proposed transfer of schemes from List B. The report then described the remaining procedures to be followed in setting the budget for 2013/14 and calculating the council tax. Consideration was given to the updated MTFS based on a council tax increase of 1.9% (the upper limit for referendum purposes) and a council tax freeze. The Cabinet also deliberated on the most appropriate guidance to offer the Council as to the way forward for Tonbridge and Malling in updating the MTFS for the next ten year period and setting the council tax for 2013/14. Finally the Director of Finance and Transformation explained the basis on which the statement as to the robustness of the estimates and adequacy of the reserves had been made. Members of the Cabinet recorded their thanks to the Director of Finance and Transformation and colleagues for all their work in bringing forward the budget in the current challenging circumstances. RECOMMENDED: That (1) the fees and charges set out in Annex 2 to the report, as recommended by the appropriate Advisory Boards, be endorsed (see Decision Nos D130006CAB to D130013CAB) ; (2) the Capital Plan be updated as set out in paragraph 1.5.11 to the report as follows and adopted accordingly: (i) expenditure on improvements to existing car parks be treated as recurring expenditure and the annual capital allowance from 2013/14 be set at £320,000; (ii) the position of the existing Capital Plan (List A) as summarised in Annex 3 to the report be approved; (iii) the schemes as detailed in Annex 4 to the report be added to List C, deleted from List C or merged; (iv) the selection of those schemes listed in Annex 5 to the report for evaluation over the coming year be approved, including one scheme for fast track evaluation that has already been evaluated; (v) the transfer of the following schemes to the Capital Plan (List A): Tonbridge Cemetery Memorial Garden Vaults Tonbridge Pool Car Park Improvements/Extension (vi) the updated Capital Plan (List A) as summarised in Annex 7 to the report be approved; (3) the draft Capital Strategy as presented to the Finance and Property Advisory Board on 9 January and the Overview and Scrutiny Committee on 29 January 2013 be endorsed and adopted by the Council; (4) the prudential indicators listed in paragraphs 1.6.5 and 1.6.9 of the report be adopted; (5) for the financial year 2013/14 the Council's Minimum Revenue Provision be endorsed as nil, as set out at paragraph 1.6.13 of the report; (6) the adjustments to the draft revenue estimates as set out at paragraph 1.3.2 of the report be endorsed; (7) the updates to the Medium Term Financial Strategy, as set out at Annexes 11a and 11b to the report, based on a council tax increase of 1.9% and council tax freeze respectively be noted; (8) the Key Objectives of the Medium Term Financial Strategy be updated as set out at paragraph 1.8.5 of the report; (9) in recognition of the overriding objective to protect the Council's services for as long as possible, the Council be recommended to approve a council tax increase of 1.9% as the best way forward in updating the Medium Term Financial Strategy for the next ten-year period and setting the council tax for 2013/14; and (10) the Statement provided by the Director of Finance and Transformation as to the Robustness of the Estimates and the Adequacy of the Reserves be noted and endorsed. *Referred to Council |