Agenda item

The Corporate Director to submit a report to provide Members with the latest position regarding the estimates for 2017/18 and 2018/19 and the Medium Term Financial Strategy (MTFS).

The Corporate Director submitted a report on the latest position regarding the estimates for 2017/18 and 2018/19 and the Medium Term Financial Strategy (MTFS) following the Conservative Chairs Group meeting held on 13 November 2017.

The Corporate Director explained that the report sets out the latest position on the estimates for the Council as a whole for general and special expenses. The estimated year end position for 2017/18 indicates an underspend against in year approvals of £155k and the main variances set out in paragraph 3.2.3 which are ongoing and have been built into next years estimates, others are non recurring in nature. For special expenses Melton Mowbray an underspend of £7k is forecast.

It was explained that with regard to the 2018/19 latest position there currently is a deficit of £515k on general expenses and a contribution for the special expenses reserve for special expenses Melton Mowbray. This does not take into account any savings or growth proposals. Appendices A and B set out proposals for General Expenses and the net impact of those recommended by Management Team for approval would reduce the deficit by £66.5K in 2018/19 to £449K. It is proposed that this deficit be funded from the spending pressures and corporate priorities reserves.

It was said that with regard to special expenses Melton Mowbray whilst there is surplus on the revenue account of £25k there is also ongoing growth being recommended which is £50k this is being refined and options for funding to be shared with alternate sources are being explored.

The Corporate Director explained that with regards to the Autumn statement this was fairly neutral on local government finances and it is assumed that the 4 year settlement will remain as previously notified however there is no certainty until the finance settlement is released.

It was pointed out that it is not sustainable to continue to draw from reserves to balance the revenue budget going forward and therefore Management Team are developing a budget management strategy. One of the key factors to be resolved is the impact of the waste procurement and the green waste element which could have a significant impact on the bottom line for the Council and it would be prudent to see what the outcome of this is and the impact on the Council’s forward projections.

The Corporate Director further explained that the report provides an update on the business rates pilot bid and the pool. Should the pilot not be successful it will still be necessary to assess the financial position of the pool following the announcement of the finance settlement and therefore delegation is again requested to withdraw from the business rates pool should the modelling across the country demonstrate this is no longer a financial benefit. However at the current time the pool is performing well in terms of surpluses estimated for the current financial year and the indications are that a pilot if successful would see additional funding being retained within the county area.

A Member highlighted a mistake in table 3.2.1 and the £155k should be a negative figure. The Member further explained that there is an issue with the £515k shortfall and is worried about the funding gap if the waste contract does not deliver, savings will have to be made elsewhere. It was said that he is in favour of charging parish councils for elections. He stated that he was happy with the paper but explained that the Council needs to be prudent as he does not anticipate any respite in the funding situation.

The Chief Executive explained that the Officers are looking to explore all options before any service reductions are made and the commercial agenda for the Council is one option.

A Member explained that he supports the recharge to the Parish Councils but he queried the costs involved around this for the parishes. The Corporate Director explained that costs would be approximately £2-3k. The charges will not be implemented  until 2019/20 to enable the Parishes to be able to take the impact into account when setting their precepts next year . It was said that the recharge could have a disproportionate impact on the smaller Parishes.

A Member questioned the internet costs in the children’s centres. The Corporate Director explained that a larger internet line was initially required due to use by internal staff along with Leicestershire County Council and the back up for IT but as with the new IT service, this service is elsewhere and therefore a large line is not required. Melton Borough Council has negotiated with the provider for a better service and cost. The partners are to pick up their proportion of the costs involved with the line.

Another Member questioned how the Me and My Learning figures are projected. The Corporate Director explained that the budget is run like any other budget and scrutinised in the same way.

All recommendations were moved by Councillor Higgins and Councillor de Burle seconded.

All Members were unanimously in favour.

RESOLVED that:

1) the estimated year end position for 2017/18 as set out in section 3.2 be noted.

2) the position with regard to the 2018/19 estimated and the forward projections for 2019/20 to 2021/22 at this stage in the process and the issues yet to be resolved as set out in section 3.3 be noted.

3) should the Business Rate pilot bid not be accepted by the Government delegated authority be given to the Corporate Director in consultation with the Chief Executive and the Chair to withdraw from the Leicestershire pool for business rates should the modelling demonstrate there is no longer a financial benefit to the Council and update the legal agreement with any changes that arise.