Agenda item

The Cabinet meeting reconvened at 10:30am on Friday 12^th January (apologies were reported on behalf of Mr. B. L. Pain CC) -

 

Members considered a supplementary report of the Director of Corporate Resources regarding the County Council’s proposed Medium Term Financial Strategy; following public consultation, consideration of the draft by the Overview and Scrutiny bodies, and receipt of the local government finance settlement.  A copy of the report, marked ‘4’ is filed with these minutes.

 

Members noted comments from the Liberal Democrat Group, a copy of which is filed with these minutes.

 

Mr. Rhodes said it was the first occasion on which representations made by the Council on the provisional Settlement had resulted in a positive change to the final funding awarded.  Whilst the additional amount was relatively small, it had enabled a number of services to be better supported (detailed in paragraph 71 of the report) and, if the planned savings were achieved, the Council would be able to balance its budget in 2016/17 and 2017/18. Mr. Rhodes hoped that the intended review of the Needs Assessment Formula by the Government might address the £19m shortfall still facing the Council in 2019/20.

 

Members welcomed the amended proposals and in particular the use of the net additional resources to help maintain the quality and safety of the highways network, assist with provision of transport for children with Special Educational Needs, and support the smoking cessation service and the ‘Tell Us Once’ scheme for registering births and deaths.

 

That the following be recommended to the County Council:-

 

(a)      That subject to the items below, approval be given to the MTFS which incorporates the recommended revenue budget for 2016/17 totalling £345.3m as set out in Appendices A, B and D of the report and includes the growth and savings for that year as set out in Appendix C;

 

(b)      That approval be given to the projected provisional revenue budgets for 2017/18, 2018/19 and 2019/20, set out in Appendix B to the report, including the growth and savings for those years as set out in Appendix C thereto and to the undertaking of such preliminary work, including consultation and equality impact assessments, as may be necessary towards achieving the savings specified for those years including corporate savings under development;

 

(c)      That approval be given to the early achievement of savings that are included in the MTFS, as may be necessary, along with associated investment costs, subject to the Director of Finance agreeing to funding being available;

 

(d)      That the level of earmarked funds as set out in Appendix I be noted and the use of earmarked funds be approved;

 

(e)      That the amounts of the County Council's Council Tax for each band of dwelling and the precept payable by each billing authority for 2016/17 be as set out in Appendix J (including the adult social care precept, 2%);

 

(f)       That the Chief Executive be authorised to issue the necessary precepts to billing authorities in accordance with the budget requirement above and the tax base notified by the District Councils, and to take any other action which may be necessary to give effect to the precepts;

 

(g)      That approval be given to the 2016/17 – 2019/20 capital programme as set out in Appendix E;

 

(h)      That the financial indicators required under the Prudential Code included in Appendix K, Annex 2 be noted and that the following limits be approved:

 

	2016/17 £m	2017/18 £m	2018/19 £m	2019/20 £m
Operational boundary for external debt
i)   Borrowing	274.6	264.6	264.1	263.6
ii) Other long term liabilities	1.4	1.3	1.3	1.2
TOTAL	276.0	265.9	265.4	264.8
Authorised limit for external debt
i)    Borrowing	284.6	274.6	274.1	273.6
ii) Other long term liabilities	1.4	1.3	1.3	1.2
TOTAL	286.0	275.9	275.4	274.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(i)       That the Director of Finance be authorised to effect movement within the authorised limit for external debt between borrowing and other long term liabilities;

 

(j)       That the following borrowing limits be approved for the period 2016/17 to 2019/20:

 

                    (i)       Upper limit on fixed interest exposures 100%

 

                    (ii)      Upper limit on variable rate exposures 50%

 

                    (iii)      Maturity of borrowing:-

 

 

	Upper Limit	Lower Limit
	%	%
Under 12 months	30	0
12 months and within 24 months	30	0
24 months and within 5 years	50	0
5 years and within 10 years	70	0
10 years and above	100	25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(k)      That the Director of Finance be authorised to enter into such loans or undertake such arrangements as necessary to finance capital payments in 2016/17, subject to the prudential limits in Appendix K;

 

(l)       That the Treasury Management Strategy Statement and the Annual Investment Strategy for 2016/17, as set out in Appendix K, be approved including the following:

 

(i)       The Treasury Management Policy Statement, Appendix K; Annex 4

 

(ii)      The Annual Statement of Annual Minimum Revenue as set out in Appendix K, Annex 1; 

 

(m)     That approval be given to the Risk Management Policy and Strategy (Appendix G) subject to consideration by the Corporate Governance Committee on 19^th February 2016 and that the Director of Finance be authorised to make amendments if necessary following consideration by the Corporate Governance Committee;

 

(n)      That the Capital Strategy (Appendix F) and Earmarked Funds Policy (Appendix H) to this report be approved;

 

(o)      That the Director of Corporate Resources following consultation with the Cabinet Lead Member for Resources be authorised to prepare and approve a separate Efficiency Plan, if specifically required by the Department for Communities and Local Government (DCLG) to accept a 4 year settlement.

 

(KEY DECISION)

 

REASONS FOR DECISION:

 

To enable the County Council to establish a basis for the planning of services in the next four years and to meet its statutory requirements with respect to setting a Budget Requirement and Council Tax precept for 2016/17.