| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 11/021 |
Setting the Budget for 2011/12 |
The Chief Executive and Director of Finance presented a report updating the Cabinet on issues relating to the setting of the budget for 2011/12 together with a number of changes which had emerged since preparation of the draft Revenue Estimates booklet. A more detailed supplementary report prepared in liaison with the Leader and Cabinet Member for Finance was circulated in advance of the meeting. This updated the position in relation to the Medium Term Financial Strategy and gave details of the necessary procedures to be followed in order to set the budget for 2011/12. In introducing the report the Director of Finance advised that the final grant settlement was received late on 31 January 2011 and, whilst not significantly different from the provisional figures, would require all the statutory calculations set out in the supplementary report to be amended. The Cabinet accordingly received revised Annexes 1, 11, 12, 13, 16, 17, 17A, 18 and 19. The Director of Finance updated the key messages arising from the provisional grant settlement which had previously been reported to the extraordinary meeting of the Cabinet on 15 December 2010. The outcome was a grant reduction of 16.2% in 2011/12 and 13.6% in 2012/13 and meant that Tonbridge and Malling would now receive the lowest grant per head of the Kent authorities. The report referred to the examination of the draft Revenue Estimates and the Capital Plan review process undertaken by the Finance and Property Advisory Board and the Policy Overview Committee. 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 2011 which had been incorporated in the draft Estimates. Reference was made to the proposed deferral of the transitional increase in Members' allowances recommended by the Finance and Property Advisory Board and Policy Overview Committee together with the 0% staff pay award approved by the General Purposes Committee. Members were reminded of the new approach to preparation of the Capital Plan and the annual allowance of £350,000 for capital expenditure. An updated summary of the Capital Plan was set out at Annex 7 to the report including the proposed transfer of six schemes from List B. The Director of Finance also updated the table of prudential indicators in the light of the final grant settlement. The report then described the remaining procedures to be followed in setting the budget for 2011/12 and calculating the council tax requirement. Consideration was given to the updated Medium Term Financial Strategy which had been remodelled over a 10 year period, setting the minimum general revenue reserve balance at £2 million with a view to achieving a balanced budget by the end of the Strategy period. The Cabinet had regard to the budget, the Government's stance on capping and its provision of funding to enable a council tax 'freeze' in 2011/12 together with the future review to address the Council's budget funding gap. The Director of Finance explained the basis on which the statement as to the robustness of the estimates and adequacy of the reserves had been made. Members discussed the potential for income from the New Homes Bonus and other Government schemes to provide funding towards some of the aspirations of various groups in the Borough. It was therefore suggested that during the period leading to the Council meeting on 17 February efforts continue to be made to identify any opportunities for assisting such community projects. RECOMMENDED: That (1) the fees and charges set out in Annex 2 to the report as recommended by the Advisory Boards be endorsed (see Decision Nos D110006CAB and D110012CAB to D110015CAB); (2) the Capital Plan be updated as set out in paragraph 1.5.14 of the report as follows and adopted accordingly: (i) the position of the existing Capital Plan (List A) as summarised in Annex 3 to the report be approved; (ii) the addition to and deletion from List C of those List C schemes shown in Annex 4 to the report be approved; (iii) the selection of those List C schemes listed in Annex 5 to the report for evaluation over the coming year be approved with those so indicated being selected for fast track evaluation; (iv) the transfer of the following List B schemes to List A be approved: Tonbridge Swimming Pool: Disinfection System Larkfield Leisure Centre: Energy Saving Measures Public Open Spaces Site Improvements Tonbridge Memorial Garden Improvements IT Initiatives: Homeless Management System IT Initiatives: Corporate Document Management System (v) the retention on List B of the following schemes be approved: Tonbridge Riverside Path Enhancement Tonbridge Town Lock (vi) a contribution in this year of £120,000 to the Revenue Reserves for Capital Schemes be approved using unallocated Local Authority Growth Scheme monies and as a result of the better than expected budget position; (3) the draft Capital Strategy as presented to the Finance and Property Advisory Board on 5 January and the Policy Overview Committee on 18 January 2011 be endorsed and adopted by the Council; (4) the prudential indicators listed in paragraphs 1.6.6 and 1.6.10 (as amended) of the report be adopted; (5) for the financial year 2011/12 the Council's Minimum Revenue Provision be endorsed as nil, as set out in paragraph 1.6.14 of the report; (6) the adjustments to the draft revenue estimates, as outlined in the holding report and summarised in paragraph 1.3.2 of the main report, be endorsed; (7) the Medium Term Financial Strategy be updated in accordance with Annex 11 to the report and the proposal to move to a Strategy covering a ten year period be endorsed; (8) the key objectives of the Medium Term Financial Strategy be updated as set out in paragraph 1.8.10 of the report; and (9) the Statement provided by the Director of Finance as to the Robustness of the Estimates and Adequacy of the Reserves be noted and endorsed. *Referred to Council |