| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 08/021 |
Setting the Budget for 2008/09 |
Consideration was given to the joint report of the Chief Executive and Director of Finance updating the Cabinet on issues relating to the setting of the Revenue Budget and Capital Plan for 2008/09. Reference was made to the outcome of examination of the draft estimates and the Capital Plan review process undertaken by the Finance and Property Advisory Board and the Policy Overview Committee which had both recommended that the broad objectives of the Medium Term Financial Strategy be reconsidered in terms of achieving a balanced budget at an appropriate time depending upon the Council's financial position. Details were also given of a number of changes which had emerged since preparation of the draft Revenue Estimates Booklet. It was noted that a letter of representation about the Government's provisional three year settlement had been sent to the Department for Communities and Local Government, a response to which was still awaited. However letters of support had been received from Sir John Stanley MP and a number of members of Tonbridge Forum. An urgent meeting had also been sought with Jonathan Shaw MP as the Minister for the South East. 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 the final Revenue Support Grant settlement. It was noted that the figures were substantially the same as the provisional settlement announced in December 2007. A comparison of the Borough Council's grant settlement with those of other Kent District Councils was provided. Members were advised that having regard to the overall funding package, all the recommended List B schemes could be transferred to List A of the Capital Plan although reference was made to an alternative approach to the funding of the Snodland Partnership arising from recommendations of the Scrutiny Committee. The report then referred to the remaining procedures to be followed in setting the budget for 2008/09 and calculating the Council Tax requirement. 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 2008/09 to 2013/14 having regard to the budget, the Government's stance on capping, the deferral of the objective of achieving a balanced budget by one year to 2012/13 and identification of options for addressing the funding gap from 2009/10 in order to maintain the integrity of the Strategy. RECOMMENDED: That (1) the Capital Plan be updated as set out in paragraphs 1.4.12 and 1.4.20 of the supplementary report as follows and adopted accordingly: (i) the position of the existing Capital Plan (List A) as presented to the Finance and Property Advisory Board on 2 January 2008 be approved; (ii) the new List C schemes shown in Annex 3 to the supplementary report be approved; (iii) approval be given to the deletion of the List C schemes shown in Annex 4 to the supplementary report; (iv) with the exception of the Snodland Regeneration Initiatives 2009/10 scheme, approval be given to the selection for evaluation of those List C schemes listed in Annex 5 to the supplementary report with those schemes so indicated being selected for fast-track evaluation; (v) an increase of £507,000 in the corporate capital plan provision for fast track schemes be approved to cover the possible implementation in 2008/09 of those schemes selected for fast-track evaluation; (vi) the transfer of the following List B schemes to List A be approved: Traffic management: Local Transport Plan Partnership Programme 2008/09 (Provision £50,000 in 2008/09) Land drainage/Flood defence: Drainage Improvement Programme (Provision £15,000 in 2007/08 rising to £20,000 in 2008/09 and subsequent years) Tonbridge Swimming Pool: Wet Change Area - Disability Discrimination Act Improvements (Provision £40,000 in 2008/09) Leisure Facilities: Energy Saving Measures at Leisure Centres (Provision £120,000 in 2008/09) Poult Wood Golf Centre: Replacement of Irrigation System (Provision £208,000 in 2008/09) Tonbridge Racecourse Sportsground: Provision of Ball Court (Provision £70,000 in 2008/09 - to be funded from developer contributions) (vii) the retention on List B of the following 'parked' schemes be approved: Tonbridge Riverside Path Enhancement; (2) for the financial year 2008/09 the prudential indicators listed in paragraphs 1.5.5 and 1.5.9 of the supplementary report be adopted; (3) the adjustments to the draft revenue estimates outlined in paragraph 1.7.1 of the supplementary report be endorsed; (4) the proposed process for considering options for savings, as set out in paragraph 1.7.11 of the supplementary report, be endorsed; (5) the Medium Term Financial Strategy be updated in accordance with paragraphs 1.7.8 and 1.7.13 of the supplementary report; (6) the Statement provided by the Director of Finance as to the Robustness of the Estimates and the Adequacy of the Reserves be noted and endorsed; and (7) thanks be recorded to the Director of Finance and her staff and to the Management Team for their work in preparation of the budget. *Referred to Council |