Agenda item

To consider the report attached and make a recommendation for consideration by the Executive when it considers the budget proposals on 7 February 2019.

The Portfolio Holder for Corporate Resources and the Chief Finance Officer presented the final financial plan proposals for 2019/20 to 2021/22 as set out in the report for recommendation to the Executive on 7 February, and Council on 28 February 2019. The proposals recommended revenue and capital budgets for 2019/20 and planned in outline for 2020/21 and 2021/22. The Portfolio Holder made particular reference to:

·      The Government had indicated 100% rates retention, but with the transfer in of some funding obligations. 75% rates retention was now being proposed to be introduced in 2020/21. Revenue support grant was to end after 2018/19.

·      New homes bonus has not been altered in the provisional settlement however the Council continued to suffer the reductions identified by earlier year settlement changes.

·      The Council has benefitted from previous savings plans andrestructuring efficiencies were still producing cost reductions. The budget also benefitted from the Strata partnership and the significant ongoing returns from Market Walk. The Council was in the fourth year of Business Efficiency Service Transition 2020 review following business challenge in earlier years.

·      Uncertainty continued around future demand, inflation and the outcome of the European Union negotiations.

·      The forecasted income 2019/20 from Council Tax was £8.5million. The cost of one service waste, recycling and cleansing would be £8.7 million. Therefore the financial shortfall to run this service and all other services provided by the Council was required through other income, grants and fees and charges.

In response to questions raised by Members, particularly in relation to appendix 7, the Committee was advised: previous and actual fees and charges figures would be presented together for ease of reference in future budget papers; fees for the car parking spaces for DWP at Forde House was included as part of the rental agreement; the figures around FTE staff and differences between years reflected budgeting for a full staff complement, staff posts funded by external funding were not included, there were some movement of staff between departments with change in government legislation and department restructuring; some of the figures in appendix 5 detail one off expenditure; the increase in the cost of burials could reflect perhaps that the Council had not in the past recharged the full cost; external grants covered the cost of all coastal monitoring; a breakdown of the budget for cycle paths would be provided; a draft policy on electric and low emission vehicles would be presented to the Committee for consideration at its next meeting; the Marsh Barton railway station project, part of the South West Exeter infrastructure, was progressing with funding also allocated by Devon County Council and Exeter City Council, and the potential for other contributing partners; further information would be provided in relation to planning Section 106 funds for open space provision in Kingsteignton; and Section 106 funds were available for play area equipment at Dawlish Warren, however the potential partnership funding from Great Western Railway was no longer available.

Resolved

a)  The proposed  budget that the Executive will recommend to Council for approval set out as in appendix 4 for revenue, and appendix 7 for capital as circulated with the agenda be noted.

b)  That further information be provided to the Executive on the following:

·      The reasons for the burial fee increase from £510 to £733as included in the cemetery fees at appendix 6 of the report circulated with the agenda.

·      A breakdown on the allocation for KG8 cycle paths at appendix 7.

·      Availability and amount of Bid 300 planning Section106 agreement provision for Kingsteignton open space.

·      A list of savings in relation to appendix 5.

c)  That the budget proposals be considered together with any subsequent consultation comments for approval by Council as the final budget for 2019/20 and the outline plan for the subsequent years 2020/21 and 2021/22. 

In particular the proposed budget includes:

·      An increase in council tax of £5 or 3.03% to £170.17.

·      The continuing reduction in new homes bonus.

·       Other central funding reductions especially revenue support grant.

·      Reserves at 12% of the net revenue budget or just over £1.9 million.

·       Continuing support for housing whilst backing business and bringing     people and organisations together for local neighbourhood planning. 

·      Infrastructure delivery plan investment funded by community     infrastructure levy and external sources where available.          

·       The two year pay agreement including increases linked to the national living wage for 2018/19 and 2019/20 and increases of 2% for all other staff with changes to the central spine from 1 April 2019.

·       Provisional assumptions for business rates income for future years with proposed reset of the baseline.

·      Rural aid continuing at £40,000.