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Council Agenda Medium Term Financial Strategy Budget 2010/11 And COUNCIL AGENDA MEDIUM TERM FINANCIAL STRATEGY BUDGET 2010/11 AND MEDIUM TERM FINANCIAL PLAN 2014/15 BOOK 2 OF 2 COUNCILLOR MARCO CERESTE JOHN A HARRISON LEADER OF THE COUNCIL EXECUTIVE DIRECTOR - STRATEGIC RESOURCES Growing the right way for a bigger, better Peterborough CONTENTS COUNCIL REPORT 1 Appendix A - Council Tax Resolution 4 Appendix B - Cabinet Recommendations to Council 11 MEDIUM TERM FINANCIAL PLAN 2010/11 – 2014/15 The Medium Term Financial Plan in the context of the Community 24 Strategy Medium Term Financial Plan Summary and Chief Financial 26 Officer Report Appendix 1a – Key Figures 34 Appendix 1b – Capacity Bids 35 Appendix 1c – Savings and Transformation 37 Appendix 1d – City Services Savings 38 Appendix 1e – Reserves 39 Appendix 1f – Schedule of Grants 40 Appendix 1g – Fees and Charges 44 Appendix 2 – Budget Monitoring Report Period 7 50 Appendix 3 – Capital Strategy, Programme and Disposals 62 Summary Appendix 4 – Prudential Code, Treasury Management Strategy 82 and Minimum Revenue Provision Strategy Appendix 5 – Asset Management Plan 101 Appendix 6 – Adult Social Care Annual Accountability Agreement 177 Appendix 7 – Budget consultation Feedback 202 COUNCIL AGENDA ITEM th 24 FEBRUARY 2010 PUBLIC REPORT BUDGET 2010/11 AND MEDIUM TERM FINANCIAL PLAN (MTFP) TO 2014/15 R E C O M M E N D A T I O N S FROM : Executive Director - Strategic Resources That Council is recommended to approve: a. The revenue budget for 2010/11 and the medium term financial plan for 2011/12 to 2014/15, set in the context of the Sustainable Community Strategy; b. The capital programme for 2010/11 to 2014/15 and related strategies and indicators; c. The council tax increase of 2.5% for 2010/11 and indicative increases of 2.5% for 2011/12 to 2014/15;and d. The council tax setting resolution for consideration as set out in Appendix A, including the proposed council tax level for the new Hampton Parish Council 1. PURPOSE AND REASON FOR REPORT 1.1 The purpose of this report is to present budget proposals for 2010-11 through to 2014-15. For the first time, in response to the challenging financial environment, the Councils MTFP is based on a five year plan. 1.2 Full Council are required to set the council tax for 2010/11 which includes not only its own requirements but that of the relevant precepting bodies i.e. Police, Fire and Parishes (where applicable). 1.3 The decisions contained in the report are a matter reserved for Full Council. Is this a Major Policy YES If Yes, date for relevant n/a Item/Statutory Plan? Cabinet Meeting Date for relevant 24 Date for submission to Communities and Local Council Meeting February Government department Government (CLG) 2010 March 2010 2. BACKGROUND 2.1 Cabinet, at its’ meeting on the 8th February 2010, considered a report entitled “Budget 2010/11 and medium term financial plan (MTFP) to 2014/15”. The recommendations from Cabinet are attached at Appendix B. 1 Since the Cabinet meeting the following changes have taken place: i) The final notifications of parish precepts have been received and require an increase of £25k to the amount shown in the Cabinet report. This includes the precept for the new Hampton Parish Council, that must be agreed by Council as part of the process of establishing that council. A list of parish precepts is attached; ii) Official notification has been received of the Police Authority Council Tax – an increase of 3.0%. iii) Official notification has been received of the Fire Authority Council Tax – an increase of 2.7%; 2.3 Increases to the Council Tax, excluding Parishes, can be summarised as follows: Band D Band D Percentage 2009/10 2010/11 Increase Peterborough City Council £1,068.99 £1,095.71 2.5% Cambridgeshire Police Authority £164.70 £169.56 3.0% Cambridgeshire & Peterborough Fire Authority £56.34 £57.87 2.7% Total £1,290.03 £1,323.14 2.6% The average increase in Parish Precept is 7.2%. Some parishes have increased and some decreased their precepts. 2.4 STATUTORY ADVICE – LOCAL GOVERNMENT ACT 2003 2.4.1 The Local Government Act 2003 requires the Chief Finance officer to report on the adequacy of reserves and provisions and the robustness of budget estimates as part of the annual budget setting process. A full analysis of possible budget risks as well as the forecasts for levels of reserves are included in the MTFP, but in summary: • The key budget risk over the life of the MTFP is the uncertainty over future funding levels due to poor state of overall public finances. The need for early action has been flagged. • The 2009-10 budget report outlines how it has been necessary in the current year to use reserves to meet one-off costs. The MTFP provides for these reserves to be returned to a reasonable level. 2.4.2 My opinion is based on the forecast of reserves and having regard to the commentary set out in the MTFP in respect of robustness of estimates and risk analysis. I conclude that the levels of reserves, balances and contingencies are sufficient for the authority in setting the budget and resultant council tax for 2009/10. 3. IMPLICATIONS 3.1 Elected Members 3.1.1 Members must have regard to the advice of the Section 151 Officer. The Council may take decisions which are at variance with this advice, providing there are reasonable grounds to do so. 3.1.2 It is an offence for any Members with arrears of council tax which have been outstanding for two months or more to attend any meeting of the Council or its committees at which a decision affecting the budget is made, unless the Members concerned declare at the outset of the meeting that they are in arrears and will not be voting on the decision for that reason. 2 3.2 Financial implications The totality of this report considers the Councils budget and financial position for the year. Full details are included in the attached MTFP. 4. BACKGROUND DOCUMENTS Used to prepare this report, in accordance with the Local Government (Access to Information) Act 1985) 3 Appendix A - Council Tax Resolution COUNCIL TAX 2010/11 Following consideration of the report to this Council on 24 February 2010 and the setting of the Revenue Budget for 2010/11, the Council is requested to pass the resolution below. RESOLVED 1. THAT the Revenue Budget in the sum of £139,009,000 (being £257,122,000 less the Dedicated Schools Grant of £118,113,000) now presented be approved. 2. THAT it be noted that at its meeting on 14 December 2009 the Cabinet calculated the following amounts for the year 2010/11 in accordance with regulations made under Section 33(5) of the Local Government Finance Act 1992: - (a) 55,395 being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, as its council tax base for the year. (b) Part of the Council's Area Ailsworth 234.51 Bainton 146.55 Barnack 362.67 Borough Fen 38.20 Bretton 3,577.47 Castor 340.74 City (non-parished) 33,934.53 Etton 51.90 Eye 1,434.20 Glinton 607.44 Hampton 3,152.07 Helpston 391.08 Marholm 75.52 Maxey 298.71 Newborough 550.91 Northborough 503.63 Orton Longueville 3,439.54 Orton Waterville 3,495.28 Peakirk 176.89 Southorpe 69.88 Sutton 68.95 Thorney 822.60 Thornhaugh 97.74 Ufford 123.95 Wansford 240.86 Wittering 750.99 SUB TOTAL 54,986.81 The Council tax base total for areas to which no special items relate 408.36 TOTAL 55,395.17 being the amounts calculated by the Council, in accordance with regulation 6 of the Regulations, as the amounts of its council tax base for the year for dwellings in those parts of its area to which one or more special items relate. 4 3. THAT the following amounts be now calculated by the Council for the year 2010/11 in accordance with Sections 32 to 36 of the Local Government and Finance Act 1992: - (a) £421,599,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(2)(a) to (e) of the Act. (Gross expenditure including Parish Precepts and Special Expenses) (b) (£282,590,000) being the aggregate of the amounts which the Council estimates for the items set out in Section 32(3) a) to c) of the Act. (Revenue Income) (c) £139,009,000 being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with section 32(4) of the act as its budget requirement for the year. (Peterborough City Council Net Budget Requirement including Parish Precepts) (d) £77,948,000 being the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of redistributed non- domestic rates and revenue support grant increased by the amount of the sums which the Council estimates will be transferred in the year from its collection fund to its general fund in accordance with Section 97(3) of the Local Government Finance Act 1988 (e) £1,102.28 being the amount at 3(c) above less the amount at 3(d) above, all divided by the amount at 2(a) above, calculated by the Council, in accordance with Section 33(1) of the Act, as the basic amount of its council tax for the year.
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