Agenda item - Annual Budget & Council Tax 2020/21 and Medium Term Financial Strategy (MTFS) Update

Key Decision

Portfolio Holder for Finance: Councillor Rachel Madden

RESOLVED

a) that Council be recommended to approve the following:

· a £5 (2.7%) increase in the level of the District’s own Council Tax for 2020/21, setting the Band D equivalent at £190.46;

· the proposed 2020/21 Revenue (General Fund) and HRA Budgets as set out in the report (Sections 3 and 4);

· the proposed Capital Programme and associated borrowing 2019/20 to 2023/24 as set out in the report (Section 5);

· the 2019/20 Revised HRA and Capital Budgets as set out in the report (Sections 4 and 5);

· the precept figures from Nottinghamshire County Council, Nottinghamshire Fire and Rescue Authority, Police and Crime Commissioner and the two Parish Council’s within the District be incorporated, when known, into the Council Tax recommendation to Council on 5th March 2020;

· to note the estimated financial challenge in the Medium Term Financial Strategy (MTFS) for 2021/2022 to 2024/25 and the planned approach to address the challenge (Section 6);

· to bring an updated MTFS back to Cabinet after the 2019/20 Accounts have been closed and audited;

· the proposed use of reserves as set out in this report (Table 5 (General Fund) and Table 9 (HRA)) and the creation of 5 new reserves and the amalgamation of 2 existing reserves (set out in Section 3.6);

· acceptance of the comments and advice of the Corporate Finance Manager (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the 2020/21 Budget and the adequacy of the reserves for which this budget provides. (Section 7);

· to note that the proposed 2020/21 budgets reflect the agreed changes to Fees and Charges approved by Cabinet on 27th January 2020;

· the use of in-year Capital Receipts up to 2020/21 to maximise capitalisation opportunities arising from service transformation to deliver efficiencies and improved services to residents and clients, and thereby minimise the impact of costs on the revenue budget as included in the Flexible Use of Capital Receipts Strategy 2018/19 approved by Council on 11th October 2018;

· to note that additional recurrent and non-recurrent costs of progressing the Digital Service Transformation (DST) programme at a quicker pace than had previously been planned are not included within the proposed 2020/21 budget, and that a separate report detailing the programme, costs and payback periods and how the programme will be funded will be brought for consideration through the appropriate channels in accordance with the Council’s Financial Regulations;

b) following feedback from Scrutiny Members as part of their consideration of the Annual Budget and MTFS update, the Director of Resources and Business Transformation be requested to present the results of the 2019 Employee Survey to the next meeting of the Overview and Scrutiny Committee scheduled for 26 March 2020.

Cabinet were presented with the Council’s Annual Budget, the Council Tax proposals for 2020/21 and a Medium Term Financial Strategy (MTFS) update.

(At this point in the proceedings, all Members present at the meeting declared a general Non Pecuniary/Other Interest in respect of items related to the setting of the Council Tax for 2020/2021.)

The Service Manager, Scrutiny and Democratic Services, following consideration of the Annual Budget and MTFS update at the Overview and Scrutiny Committee meeting held on 20February 2020, took the opportunity to feedback the responses and suggestions raised by Members as follows:-

· a thank you be extended to the Corporate Finance Manager and Finance Team for the production of an excellent budget and the associated medium term planning strategy;

· concerns raised regarding the levels of fraud surrounding ‘Single Person Council Tax Discount’ with acknowledgement that a county-wide group has been established to tackle the problem;

· a desire to raise awareness and more fully advertise the commercial services offered by the Council’s (i.e. pest control) through the Council’s media platforms;

· a further review should be undertaken to consider further savings around printing requirements including the use of paper copy committee agendas;

· the importance of the Council recognising the impact (i.e. wellbeing and work/life balance) on existing staff being required to cover gaps in staffing as part of the ‘vacancy factor’.

Members considered the alternative option of declining to accept the proposals and freeze its own Council Tax for 2020/21 however recognising the financial challenge faced beyond 2020/21 the proposed increase is considered appropriate in order to continue to provide the key services on which Ashfield residents rely.