| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 10/027 |
Setting the Budget for 2010/11 |
The Chief Executive and Director of Finance presented a report updating the Cabinet on issues relating to the setting of the Revenue Budget for 2010/11 and Capital Plan 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 Director of Finance explained that 2010/11 could be regarded as a 'holding year' when there would be an almost balanced budget. However, reference was made to the likelihood of general government grant being cut significantly after the next General Election and subsequent Spending Review. It was therefore considered appropriate to revisit the objectives within the Medium Term Financial Strategy as part of a fundamental review of the Council's overall finances. A draft model was presented to provide a 'flavour' of the direction expected to be taken in the Medium Term Financial Strategy in due course. The report referred 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. 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 2010 which had been incorporated in the draft estimates. Members were reminded of the new approach adopted last year with regard to the preparation of the Capital Plan and it was suggested that the annual allowance for capital expenditure be reduced to a lower interim ceiling of £350,000. An updated summary of the Capital Plan was set out at Annex 7 to the report including the proposed transfer of eight schemes from List B. The report then described the remaining procedures to be followed in setting the budget for 2010/11 and calculating the Council Tax requirements. Consideration was given to the updated Medium Term Financial Strategy for the period 2010/11 to 2015/16 having regard to the budget, the Government stance on capping and the future review to be undertaken to address 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. Members recognised the difficult circumstances surrounding the preparation of the budget and recorded their thanks to all officers involved. Appreciation was also expressed for the positive response of staff to the measures identified for addressing the Council's budgetary situation. 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 D100008CAB to D100012CAB); (2) the Capital Plan be updated as set out in paragraph 1.5.13 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 immediate evaluation; (iv) the transfer of the following List B schemes to List A be approved: Car Park Enhancement Programme Phase 3 Tonbridge Castle East Curtain Wall Larkfield Leisure Centre: Larkabout Toilets Angel Changing / Toilets / Meeting Rooms Refurbishment of Tonbridge Farm Pavilion Racecourse Sportsground: Bridge Repair Wrotham School All Weather Pitch Hill Top / Priory Wood Children's Play Equipment (v) the retention on List B of the following schemes be approved: Hayesbrook School All Weather Pitch Tonbridge Riverside Path Enhancement Tonbridge Town Lock (vi) the "exceptional case" capital grant applications from Leybourne Parish Council (£6,500) and Snodland Town Council (£9,000) be approved and be met from existing budgetary provision; (vii) pending the review of the Council's overall finances, as an interim measure, the annual "capital allowance" be down-sized to £350,000; (3) the prudential indicators listed in paragraphs 1.6.5 and 1.6.9 of the report be adopted for the financial year 2010/11; (4) for the financial year 2010/11 the Council's minimum revenue provision be endorsed as nil as set out in paragraph 1.6.13 of the report; (5) the adjustments to the draft Revenue Estimates outlined in paragraph 1.8.1 of the report be endorsed; (6) the Medium Term Financial Strategy be updated in accordance with paragraph 1.8.14 of the report and it be reaffirmed that a minimum general revenue reserve balance of £3m currently continues to be appropriate for an authority of the size and scale of Tonbridge and Malling; and (7) 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 |