BOROUGH OF POOLE BUDGET 2018/2019 Civic Centre Poole Dorset BH15 2RU (01202) 633394 BUDGET 2018/2019 CONTENTS Council Tax Requirements and Budget Summary Explanatory Notes (Including note on Financial Regulations) Revenue Budget per Theme People - Children People - Adult Social Services People - Other Places Business Improvement Housing Revenue Account Subjective Analysis & Budget Summary in the Service Reporting Accounting Format Medium Term Financial Plan Report The report contains the following appendices Appendix 1 Timetable and Budget summaries including assumed savings Appendix 2 Reserves Strategy 2018 to 2021 Appendix 3 Capital Programme 2018 to 2021 Appendix 4 Treasury Management Strategy Appendix 5 Equalities Impact Assessment (EQIA) Appendix 6 Comments on the December MTFP Update report from the Business Improvement Overview and Scrutiny Committee Appendix 7 Chief Officer’ Pay Policy Statement Glossary of Terms BUDGET 2018/2019 COUNCIL TAX REQUIREMENTS AND GENERAL FUND BUDGET SUMMARY Borough Council Tax Requirements BUDGET BUDGET 2017/18 2018/19 £'000's £'000's 74,435 Council Tax Requirement Precept - Poole Borough Council 80,035 COUNCIL TAX INFORMATION 74,435 Precept - Poole Borough Council 80,035 10,968 Precept - Dorset Police and Crime Commissioner 12,369 3,979 Precept - Dorset and Wiltshire Fire and Rescue Authority 4,564 89,382 TOTAL PRECEPTS 96,968 56,366 Council Tax Base 57,181 £1,320.57 Poole's Council Tax (Band D) £1,399.68 £194.58 Dorset Police and Crime Commissioner (Band D) £206.58 £70.59 Dorset and Wiltshire Fire and Rescue Authority (Band D) £72.70 £1,585.74 Total Council Tax (Band D) £1,678.96 2017/18 Valuation Band 2018/19 £ £1,057.16 0 to 40,000 A £1,119.31 £1,233.35 40,001 to 52,000 B £1,305.85 £1,409.55 52,001 to 68,000 C £1,492.41 £1,585.74 68,001 to 88,000 D £1,678.96 £1,938.13 88,001 to 120,000 E £2,052.07 £2,290.51 120,001 to 160,000 F £2,425.16 £2,642.90 160,001 to 320,000 G £2,798.27 £3,171.48 320,001 and above H £3,357.92 GENERAL FUND BUDGET SUMMARY 2018/2019 Net Gross Gross Net Budget Expenditure Income Budget 2017/18 2018/19 2018/19 2018/19 £000's £000's £000's £000's Theme Areas People - Children's Services 31,235 71,313 (40,302) 31,011 People - Adult Social Care 40,741 61,555 (19,761) 41,794 People - Other 1,322 13,302 (11,714) 1,588 Places 32,316 65,424 (33,168) 32,256 Business Improvement 5,562 71,153 (68,366) 2,787 Pensions 2,535 2,716 0 2,716 Non distributed costs - Surplus property costs 201 177 0 177 Efficiency Review Programme and Increment Freeze (592) (81) 0 (81) Courts and Fisheries 259 319 0 319 Apprenticeship Levy 315 0 0 0 Cost of theme controlled services 113,894 285,878 (173,311) 112,567 Corporate Income and Expenditure Environment Agency 199 204 0 204 Interest on borrowings 0 147 147 Interest on cash investments (58) 0 (152) (152) Investment Income (1,989) 411 (2,512) (2,101) Net Operating Expenditure 112,046 286,640 (175,975) 110,665 Other financial items impacting on the general fund Notional depreciation charges included within cost of services (13,297) (12,297) (12,297) Revenue contribution to capital - general 0 0 0 0 Revenue contribution to capital - ICT investment plan 165 0 0 0 Provision for repayment (MRP) 678 678 0 678 Provision for repayment of prudential borrowing 2,021 2,262 0 2,262 (10,433) 2,940 (12,297) (9,357) Other funding before Council Tax Requirement New Homes Bonus Grant (2,156) (1,777) (1,777) Adult Social Care one off grant (640) 0 0 Collection Fund Surplus Distribution (council tax) (941) (1,046) (1,046) Income from Business Rates (27,960) (27,332) (27,332) Tariff to Government 13,089 13,116 13,116 Grant - compensation for national business rate initiatives (net) (1,332) (2,509) (2,509) Collection Fund surplus distribution (business rates) Net (700) 0 0 Revenue support grant (from Government) (4,878) (1,725) (1,725) Transitional Grant (862) 0 0 (Use) of Earmarked Reserve (798) 0 0 (27,178) 13,116 (34,389) (21,273) Total Council Tax Requirement 74,435 302,696 (222,661) 80,035 Notes: debits to financial reserves are treated as expenditure, credits as income 2017/18 net budgets have been restated into adjusted reporting formats to aid comparison. BUDGET 2018/2019 EXPLANATORY NOTES (INCLUDING REFERENCE TO FINANCIAL REGULATIONS AND CONSTITUTION) BUDGET 2018/2019 EXPLANATORY NOTES The Budget is presented in accordance with the theme structure adopted for the Cabinet of the Council. Within each theme the budgets are shown by statements of service. These statements of service have been structured in accordance with the reporting standards required by the Service Reporting Code of Practice (SeRCOP). The main items included in each standard (subjective) heading within the revenue cost plan section of the statements of services are as follows: - Employees Salaries, wages, national insurance and superannuation for all employees whether permanent or temporary, training Members’ Allowances Premises Related Expenses Repairs and maintenance of buildings, fixed plant and grounds Rents, Rates, and Water services Energy costs Cleaning and Domestic Supplies Apportionment of expenses of operational buildings Transport Related Expenses Vehicle repairs maintenance and running costs Contract Hire Public transport and car allowances Recharges under the Council’s Vehicle provision and maintenance contract Supplies and Services Equipment (including computer purchases), furniture and materials Protective clothing, uniforms and laundry Printing, stationary, and general office expenses Communication (radio’s/telephones) Expenses (including subsistence and conferences) Grants and subscriptions Contributions to provisions (bad debts etc) Agency and Contracted Services Payments to third parties for local authority services provided by external providers (residential/home care, grounds maintenance, waste disposal etc) Transfer Payments Payments for which no goods or services are received directly in return by the local authority. (Housing Benefits, Concessionary Fares, Bus Subsidies etc) Support Costs Central support costs (variable) relates to the reallocation of staff and associated costs for the following Services of the Council – Financial / Information Technology / Legal / Personnel / Debtors / Document Management / Postal and Courier Service / Typing Service. The amount being recharged is in accordance with a Service Level Agreement between the two units and is unlikely to be a predetermined amount for the year. Intra departmental support covers apportionment’s of the management and administration costs of the service unit (s), which are responsible for the particular statement of service. Support Costs Other, relates to costs, which support the provision of services, and is provided by units not within either of the previous two categories. Depreciation and Impairment Depreciation - this represents the cost of using assets. Arrived at by dividing the value of the asset in the balance sheet over the number of years it is considered viable. RCCO & Repayments to capital reserves Service specific direct revenue financing of capital expenditure (formerly known as “Revenue Contributions to Capital Outlay) Repayments for purchases from the Capital Replacement Reserve (CRR) Capital Financing Costs Corporate costs associated with funding expenditure relating to capital items. This includes contributions from revenue to fund capital expenditure, interest payments associated with debt outstanding and the setting aside of monies to repay the principal sums outstanding Government Grants Specific and special government grants Other grants, reimbursements and contributions Income received from other bodies to finance joint functions, projects, or undertakings. Customer and Client Receipts Sales of products, materials, data, technology or surplus commodities. Fees and Charges for services, use of facilities, admissions, lettings. Rents - land and property based charges, wayleaves etc Interest Amounts received as returns from investment activity Recharges to other revenue heads The value of costs recharged to internal users. Below the line – Allocable Costs Central support costs (fixed) relates to the reallocation of staff and associated costs for the following Services of the Council – Financial / Information Technology / Legal / Personnel / Debtors / Document Management / Postal and Courier Service / Typing Service. The amount being recharged is fixed and based on a Corporate Service Level Agreement between the unit and the Council, although the allocation to individual Service Units may vary from year to year. In line with SeRCOP all central overheads should be apportioned to services to reflect the “true” cost, except a limited few exceptions that are unapportionable (Corporate and Democratic Core costs). This list includes items such as Members allowances, Civic Ceremonials, Cabinet and Council meetings, External Audit & Inspections, Chief Executive and monitoring officers costs when acting in this capacity etc. FINANCIAL REGULATIONS Financial Regulations and the Constitution provide the framework for managing the authority’s financial affairs. They apply to every member and officer of the authority and anyone acting on its behalf. To conduct its business efficiently, a local authority needs to ensure that it has sound financial management policies in place and they are strictly adhered to. Financial Regulations and the Constitution have not been reproduced as part of this budget book. However members and officers are reminded that they can be found by the following procedure; - o Open the Loop. o Select “Corporate Policies’ from the top banner o Choose the “Use of Resources” option. o Choose “Financial Regulations” OR “Procurement” then ‘Financial Regulations’. Alternatively they can be found on the “boroughofpoole.com” by; - o Choose the “Your Council” option in the Services block on the left hand side of the initial screen. o Click on “How the Council Works” . o Select “The Constitution” in the left hand side column. o You will be presented with a downloads section on the right hand side.