| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 12/019 |
Setting the Budget 2012/13 |
The joint report of the Chief Executive and Director of Finance updated the Cabinet on issues relating to the setting of the budget for 2012/13 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 procedures to be followed in order to set the budget for 2012/13. The Director of Finance updated the position arising from the Government's offer of a council tax "freeze" grant for 2012/13 and the criteria for council tax referendums which had been presented at the meeting of the Cabinet on 11 January 2012. Members were advised that the summary total for the 2012/13 estimates would be affected by the Council's decision on whether or not to accept the "freeze" grant and the report illustrated the position for both scenarios, incorporating recently received details of the Internal Drainage Boards' levies. The Director of Finance indicated that the Department for Communities and Local Government had confirmed in correspondence of 31 January the final grant settlement which was due to be debated in the House of Commons on 8 February 2012. The key messages arising from the settlement were explained. The Cabinet expressed concern at the anticipated settlement which would result in Tonbridge and Malling continuing to have a level of grant per head that was the lowest in Kent and below the average for shire districts. The Government's review of local government finance was welcomed as a potential means of achieving a more equitable situation and it was considered that representations should be made accordingly to the Secretary of State. 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 2012 which had been incorporated in the draft estimates. Members were reminded of the 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 schemes from List B. The report then described the remaining procedures to be followed in setting the budget for 2012/13 and calculating the council tax. Consideration was given to the updated MTFS based on a council tax increase of 2.9% (the upper limit for referendum purposes) and a council tax freeze respectively. 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 2012/13. The Director of Finance then 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 colleagues and to the Management Team 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 Advisory Boards, be endorsed (see Decision Nos D120006CAB and D120011CAB - D120014CAB); (2) the Capital Plan be updated as set out in paragraph 1.5.12 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 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 of which four have already been evaluated; (iv) the transfer of the following List B schemes to List A be approved: Car Park Enhancement Programme Phase 5 Larkfield Leisure Centre New Dance/Exercise Studio Tonbridge Swimming Pool Changing Village Floor Tonbridge Racecourse Sportsground Improvements Haysden Country Park Bridge Repairs Open Spaces Site Improvements Tonbridge Cemetery Path Improvements Finance Electronic Document Management Gibson Building West Renewal of Heating System (v) the shortfall in funding for fast track schemes yet to be evaluated be met from funds no longer required in respect of existing schemes; (vi) the recategorisation of the Tonbridge Riverside Path Enhancement scheme from List B to List C and the retention of the Tonbridge Town Lock scheme on List B be approved for the reasons set out at paragraph 1.5.11 of the report; (3) the draft Capital Strategy as presented to the Finance and Property Advisory Board on 4 January and the Overview and Scrutiny Committee on 10 January 2012 be endorsed and adopted by the Council; (4) the Capital Plan process be simplified in future with schemes progressing on the basis of the three criteria specified (health and safety, externally funded or reducing the Council's costs); (5) the prudential indicators listed in paragraphs 1.6.6 and 1.6.10 of the report be adopted; (6) for the financial year 2012/13 the Council's Minimum Revenue Provision be endorsed as nil, as set out at paragraph 1.6.14 of the report; (7) the adjustments to the draft revenue estimates as set out at paragraph 1.3.2 of the report be endorsed; (8) 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 2.9% and council tax freeze respectively be noted; (9) the Key Objectives of the Medium Term Financial Strategy be updated as set out in paragraphs 1.8.3 to 1.8.6 of the report; (10) the Council be recommended to approve a council tax increase of 2.9% as the best way forward for Tonbridge and Malling Borough Council in updating the Medium Term Financial Strategy for the next 10 year period and setting the council tax for 2012/13; and (11) 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. *Referred to Council |