The Corporate Finance Manager (and Section 151 Officer) will provide a presentation to the Committee.
Minutes:
The Corporate Finance Manager (and Section 151 Officer) attended the
meeting to provide a presentation on the 2023/24 Annual Budget and an
update on the Medium Term Financial Strategy (MTFS).
Members were advised that the 2023/24 Annual Budget would be fully considered by Cabinet at its meeting on 21 February 2023 in readiness for its
final approval at the Extraordinary Council (Tax Setting) meeting on 2 March
2023.
General Fund Budget
Members were advised that the budget, as presented, had assumed a 2.94% increase to Council Tax (an additional income of £198K for the Council) with the use of £386k from General Reserves.
In relation to the General Fund, £2115k of savings/efficiencies had been identified from the following areas:
· Planning Fee Income
· Customer Services Review during 2022/23
· Additional income from Photovoltaic Panels on Leisure Centres.
The following investments were to be made during 2023/24 thus producing a net saving of £29k:
· Community Safety Public Spaces Protection Order
· Re-procurement of the Procurement Service
· Loss of income from Land Charges as service transfers to Land Registry in April 2023
· Asset Management Energy Plan
· Speedy Delivery of Digital Transformation
· Renewed HR/Payroll Shared Service with Mansfield District Council
· Implementation of a new Finance System.
Members were advised of the Council’s borrowing compared to other Nottinghamshire authorities and income/costs associated with the Council’s investment property portfolio. A new ‘liability benchmark’ analysis was now required to be completed and published by local authorities each year as part of the Treasury Management Strategy and the graph and visually illustrated data entries, as presented, were explained to Members.
Estimated Medium Term Financial Strategy Summary - 2023/24 to 2026/27
Committee were advised as to the estimated expenditure, income, cumulative and annual funding gaps that could evolve from the Council’s finances over the next 5 years. The Council needed to prepare for the Local Government Funding Reform which was earmarked to take place during 2025/26. Much of the data within the Strategy had been evaluated based on the following annual assumptions and core funding uncertainties:
Annual Assumptions
· Pay inflation (2%) (NB: 5% for 2023/24)
· Contract Inflation (2.4%)
· Utilities Inflation (5%)
· Insurance (2%)
· No allowance for any inflationary increase in District Council Tax increase from 2024/25
· 1% growth in the Council Tax Base (Number of properties).
Core Funding Uncertainties
· The last 5 years had been one-year funding settlements – which limited the capability of Councils to effectively financially plan for the medium term
· Local Government Funding Reform would not be implemented until 2025/26 at the earliest (Government – Provisional Settlement)
· Future distribution (or not) of New Homes Bonus – was still to be determined (expected announcement during 2023/24) - £170k received for 2023/24
· Funding Guarantee paid in 2023/24 as a one-off (£466k).
Housing Revenue Account (HRA)
The January 2023 Cabinet had agreed a 2023/24 rent increase of 7% and investments for 2023/24 included working towards Social Housing White Paper compliance and a one-off resource (due to an inability to recruit over the preceding 12 months) to recruit stock condition surveyors and domestic energy assessors to address service backlogs.
RESOLVED
that the presentation from the Corporate Finance Manager (and Section 151
Officer) on the 2023/24 Annual Budget and the update on the Medium
Term Financial Strategy, be received and duly noted.
.