Agenda item

The Director for Corporate Services to submit a report to outline the key budget issues that will be going forward to the Council’s budget setting meeting on 7^th February 2018 and provide the opportunity for Members to comment on these in advance of the meeting.

The Director for Corporate Services submitted a report to outline the key budget issues that will be going forward to the Council’s budget setting meeting on 7 February 2018 and provide the opportunity for Members to comment on these in advance of the meeting.

The Chair proposed the increase in Council tax.

The Director for Corporate Services explained that the report brought together the proposals made at the Budget Away Day for Members information before the budget is formally submitted for discussion and approval at Full Council.

The Director for Corporate Services explained that with regard to the general expenses revenue budget the proposal from the away day is for an overall council tax increase of 2.99%, to keep within the referendum limit, which for district councils was the higher of £5 or 3%. It was said that the finance settlement is still provisional and the consultation closed last week. There has been lobbying to increase the flat rate increase allowed for district councils as whilst the percentage was increased from the previous limit of 2% the flat rate was not meaning a large number of district council’s did not benefit from this particular flexibility. Melton would benefit marginally. As such there could be some movement in the limits if this lobbying is responded to positively.

The Director for Corporate Services asked if Members could give a steer on this for the Full Council meeting as papers could be drawn up showing both options subject to the settlement being finalised prior to the Full Council meeting. It was said that savings are proposed as set out in appendix A and growth for general expenses and special expenses set out in appendices C and D. Those savings set out in appendix B were not proposed at the away day to be taken forward. These proposals would result in a deficit of £269k for 2018/19 based on the position at this point which is still being refined. The proposal is to fund this from the spending pressures reserve and the corporate priorities reserve.

The Director for Corporate Services further explained that no proposals are put forward in respect of capital projects for special expenses. General expenses are set out in appendix E and the housing revenue account in appendix F. Members were asked to note however that following further prioritisation work mandates and business cases could be presented for consideration for funding during the financial year. It was explained that the waste procurement is still being finalised and prudential borrowing could be an option as a result of this in order to fund the necessary assets required to deliver the contract.

The Director for Corporate Services clarified to Members that the budget deficit does include the benefits of the waste contract for 6 months as a best estimate but extra benefits will be gained for a further 6 months. It was also said that this would result in the council budget being break even if everything remained equal.

A Member questioned if the £40k for the sinking fund in the leisure vision project was required. The Director for Corporate Services explained that the sinking fund was originally £60k and was reduced to £40k and factored in the budget for urgent repairs and maintenance for the site.

A Member explained that since taking over the site it is predicted that the project will be cost neutral and would like to pass on thanks to the Head of Communities and Neighbourhoods and the team involved.

The recommendations were moved by Councillor Orson and Councillor Higgins seconded.

All Members were unanimously in favour.

RESOLVED that:

1) Members supported the revenue and capital budget proposals as made by the Strategic Planning Away Day for submission to the Council meeting on 7 February 2018.