| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 09/017 |
Setting the Budget for 2009/10 |
The Chief Executive and Director of Finance presented a report updating the Cabinet on issues relating to the setting of the Revenue Budget and Capital Plan for 2009/10 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 on issues relating to the Medium Term Financial Strategy and confirmed the final Revenue Support Grant settlement. In introducing the report the Chief Executive drew attention to the assumptions underpinning the Medium Term Financial Strategy and the future consequences of the measures already taken and planned to achieve the savings necessary to address the funding gap. He warned that the Council would face restraint for the foreseeable future and would need to adapt to a considerably reduced level of Government support for its activities. Reference was made to the outcome of 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. Consideration was given to the determination of a number of "exceptional case" applications for grants as recommended by the Advisory Board. Supplementary information was circulated at the meeting from Maidstone Cruse Bereavement Care together with an additional application from Relate West and Mid-Kent. 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 2009 which had been incorporated in the draft Estimates. In view of the considerable financial pressure facing the Council's revenue budget and the impact that capital projects could have upon revenue, reference was made to the temporary suspension of the annual top-up of the capital reserve as part of the series of measures to assist the current severe budgetary situation. An updated summary of the Capital Plan was set out at Annex 8 to the report including the capital grants to be treated as "exceptional cases" and identified List B schemes. The report then described the remaining procedures to be followed in setting the budget for 2009/10 and calculating the Council Tax requirements. Reference was made to consultation with non-domestic ratepayers, payments made to parish councils under the scheme of Financial Arrangements together with details of parish precepts notified and the setting of prudential indicators. Consideration was given to the updated Medium Term Financial Strategy for the period 2009/10 to 2014/15 having regard to the Budget, the Government's stance on capping and identification of options for addressing the funding gap in order to maintain the integrity of the strategy. 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, emphasising that this was predicated on savings of around £600,000 being identified before the start of 2010/11. Members recognised the difficult and unprecedented circumstances surrounding the preparation of the budget and recorded their thanks to all officers involved. Appreciation was also expressed of the positive response of staff to the measures identified for addressing the Council's budgetary situation. RECOMMENDED: That (1) the following grants be offered as "exceptional cases": The Bridge Trust - £2,000 West Kent Young Women's Centre - £2,000 Maidstone Cruse Bereavement Care - £750 No grant be offered in respect of the late application from Relate West and Mid-Kent (2) the fees and charges set out in Annex 2 to the report as recommended by the Advisory Boards be endorsed (see Decision Nos D090021CAB to D090025CAB); (3) the Capital Plan be updated as set out in paragraph 1.5.10 of the report as follows and adopted accordingly: (i) the deletion of/reduction to existing approved budget provision and the transfer of those List A items to List C detailed in Annex 3 to the report; (ii) the position of the existing Capital Plan (List A) as summarised in Annex 4 to the report be approved; (iii) the addition to List C, deletion from List C and the merger of those List C schemes shown in Annex 5 to the report be approved; (iv) the selection of those List C schemes listed in Annex 6 to the report for evaluation over the coming year be approved; (v) the transfer of the following List B schemes to List A be approved: Parking Action Plan Phase 7 Car Park Enhancement Programme Phase 4 Tonbridge Swimming Pool Pumping Station Refurbishment Tonbridge School All Weather Pitch; (vi) the retention on List B of the following schemes be approved: Tonbridge Riverside Park Enhancement Tonbridge Town Lock; (vii) the "exceptional case" applications from East Peckham, Trottisciffe and West Malling Parish Councils and the St James Centre Trust be approved subject to Kent County Council providing a grant of £50,000 in the case of the St James Centre, and the funding for the "exceptional cases" of £45,012 be met from the capital allowance for new schemes; (4) the prudential indicators listed in paragraphs 1.6.5 and 1.6.9 of the report be adopted for the financial year 2009/10; (5) for the financial year 2009/10 the Council's minimum revenue provision be endorsed as nil as set out in paragraph 1.6.12 of the report; (6) the adjustments to the draft Revenue Estimates outlined in paragraph 1.8.1 of the report be endorsed; (7) the proposed process for considering options for savings, as set out in paragraph 1.8.9 of the report be endorsed; (8) the Medium Term Financial Strategy be updated in accordance with paragraph 1.8.11 of the report and it be reaffirmed that a minimum general revenue reserve balance of £3m by the end of the strategy period continues to be appropriate for an authority of the size and scale of Tonbridge and Malling; and (9) the statement by the Director of Finance as to the Robustness of the Estimates and the Adequacy of the Reserves be noted and endorsed. *Referred to Council |