Approval of Revenue and Capital Budgets 2018-2019 Portfolio: Resources and Leader Report From: Director of Finance Wards: All Wards OPEN PUBLIC ITEM 1 Purpose

Report No: F14/18 Eden District Council

Council

15 February 2018 Approval of Revenue and Capital Budgets 2018-2019 Portfolio: Resources and Leader Report from: Director of Finance Wards: All Wards OPEN PUBLIC ITEM 1 Purpose

1.1 To set out the revised revenue budget for 2017-2018, the proposed revenue budget for 2018-2019 (the ‘Budget Requirement’) and the proposed capital budget (2017-2022 Capital Programme) for the approval of Council. These are based on the recommendations to Council by the Executive at its meeting on 23 January 2018, plus changes required for priority actions and, where appropriate, changes agreed at the Executive meetings on 23 January 2018 and 6 February 2018 and elsewhere on this agenda. In addition to consider the formal advice of its Chief Financial Officer on the robustness of the estimates included in the budget and the adequacy of the reserves.

2 Recommendation

1 The Council’s revenue budget in 2017-2018 be a net cost of services of £7,968,142, with a deficit of £677,947 (paragraph 3.8.1).

2 The Council’s revenue budget in 2018-2019 be a net cost of services of £8,144,306, with a deficit of £760,080 made up as follows (paragraph 3.9.1): £ Budgeted Expenditure 7,941,056 Growth 203,250 (See Appendix B) 8,144,306 Less: Council Tax -3,884,746 Based on Band D Council Tax of £190.75: no increase on the 2017-2018 level Less: Surplus on Collection Fund -32,000 Less: Revenue Support Grant -87,296 Less: Rural Services Delivery Grant -677,638 Less: Business Rates Retention Scheme -2,079,000 Less: New Homes Bonus -615,546 Deficit 760,080 3 The Council’s Budget Requirement (inclusive of local precepts) be £8,393,388 in 2018-2019 (paragraph 3.9.5).

4 The Council’s Council Tax Requirement (inclusive of local precepts be £4,901,908 (paragraph 3.9.6).

1 5 The Council’s capital budget for 2017-2022 be £9,531,000 (paragraph 3.10.1).

6 It is noted that the bid to be a 100% Business Rates Retention Scheme pilot to the Department for Communities and Local Government has been rejected.

7 Delegated authority be granted to the Director of Finance to enter in to an agreement with Cumbria County Council and the other Cumbrian District Councils to secure Second Homes funding from Cumbria County Council for ten years commencing 1 April 2019, provided the agreement gives the current benefit to the Council.

3 Report Details

3.1 Revenue Budget 2018-2019

3.1.1 The Council is required, by Section 32 of the Local Government Finance Act 1992, to calculate its Budget Requirement for each financial year. The Council is doing this as part of the consideration of this report. In effect, this is when the Council sets its own Council Tax.

3.1.2 At the Accounts and Governance Committee meeting on 22 February 2018, the Council’s own Council Tax (including local precepts) will be added to the Council Tax set by the County Council and the Police and Crime Commissioner to produce the total amount that Eden’s residents will pay for Council Tax in 2018-2019. Council has previously delegated Council Tax setting to the Accounts and Governance Committee.

3.1.3 For this Council, the Budget Requirement is the sum of:

1 The net expenditure on the General Fund revenue account which the Council will incur in performing its functions during the coming year;

2 Any amounts which the Council estimates that it would be appropriate to transfer to, or from, balances during the year; and

3 The amount of any precept issued to it for the year by a local precepting authority (town council, parish council, or parish meeting).

3.1.4 Once the Budget Requirement has been determined, the amount of Government funding, and any surplus or deficit on the Collection Fund, is deducted to produce the demand on the Council Tax payers (the Council Tax Requirement). For this purpose, Government funding is taken as Revenue Support Grant (RSG), Rural Services Delivery Grant (RSDG), New Homes Bonus (NHB) and the estimated income from the Business Rates Retention Scheme (BRRS).

3.1.5 The Council’s Medium Term Financial Plan (MTFP) is set out at Appendix A. It is based on the budget recommended by the Executive on 23 January 2018, as adjusted for the changes set out at Appendix E. After taking account of non-recurring growth and other one-off expenditure, this shows a deficit budget throughout the period of the MTFP.

2 3.2 Local Government Finance Settlement

3.2.1 The recommendations in this report were made by the Executive on the basis of the provisional Local Government Finance Settlement made in December 2017. The final Settlement has now been announced, and included in the figures. In a surprise announcement, the Secretary of State announced increased funding for RSDG in 2018- 2019. For Eden, this has increased government funding by £134,000 over the provisional settlement. This is clearly good news for the Council.

3.3 Other Funding

3.3.1 Members will recall that at Council on 12 October 2017 a report (F79/17) 100% Business Rate Retention Scheme Pilot Proposals was approved. This gave authority for the Council to enter in to a bid to be a pilot for 100% BRRS for 2018-2019 with the other Cumbrian Councils. The report contained a recommendation that Council be advised of the outcome of the bid. The Council was advised on 19 December 2017 that the bid had been rejected. As lead authority, the County Council is seeking clarification from government on the reasons for refusal.

3.3.2 As part of the process, a new pooling arrangement was required regardless of the outcome of the bid. Copeland Borough Council is currently excluded from the pool. From 1 April 2018, a new arrangement will be in place including all the District Councils and the County Council. Also, because of more up to date information being available for 2017-2018, a further analysis of BRRS income has been produced for the budget and MTFP. As previously reported to Members on a number of occasions, the system is volatile and significant changes in projected income are a regular occurrence. A comparison of the anticipated income in report F10/18 (Executive, 23 January 2018) and latest figures is below: 2017-18 2018-19 2019-20 2020-21 2021-22 £’000 £’000 £’000 £’000 £’000 Report F10/18 1,180 2,504 2,583 2,635 2,635 Revised Figures 1.476 2,079 2,623 2,645 2,645 Change +296 -425 +40 +10 +10 Note - + is increased income; - is decreased income.

3.3.3 The budget and MTFP has been updated to show the most up to date figures (Appendices A and E).

3.3.4 The Council is party to a ten year agreement with Cumbria County Council whereby the County Council grants this Council a proportion of the Council Tax income received from second homes in the District. The current agreement expires on 31 March 2019. This Council and the other District Councils are preparing an agreement to present to the County Council to secure this funding for a further ten years from 1 April 2019. Budgeted income for 2018-2019 from this is £219,000. Recommendation 7 requests delegated authority be granted to the Director of Finance to enter in to such an agreement provided the current level of funding is secured. If the level of funding is not secured a further report will be brought to a subsequent meeting Members will be asked to consider what action to take.

3 3.4 Capital Budget

3.4.1 Each year the Council sets a five year Capital Programme. This needs to be set at the same time as the revenue budget, as there is a linkage between the two: how the Capital Programme is financed impacts directly on the revenue budget.

3.5 Chief Financial Officer (CFO) Opinion on the Estimate Process and Reserve Levels

3.5.1 Section 25 of the Local Government Act 2003 requires the CFO to report to his/her Council when it is making the statutory calculations required to determine its Council Tax or precept. Government guidance states, ‘The authority is required to take the report into account when making the calculations. The report must deal with the robustness of the estimates included in the budget and the adequacy of the reserves for which the budget provides. What is required is the professional advice of the CFO on these two questions. Both are connected with matters of risk and uncertainty. They are interdependent and need to be considered together.’

3.6 Section 25: Report of the CFO - Robustness of the Estimates

3.6.1 As Director of Finance, I am the Council’s Chief Financial Officer. In my opinion, the estimates are robust, though see paragraph 3.6.5 below.

3.6.2 Whilst relevant budget holders are responsible for individual budgets and their preparation, all estimates are scrutinised by Financial Services staff and Management Team prior to submission to Members. The Council has no history of budgetary problems.

3.6.3 The Council’s revenue and capital budgets are ‘joined up’, both for next year’s budget and for the longer term. This means that the full cost of the proposed Capital Programme is reflected in the revenue estimates. Both revenue and capital budgets include the funding needs of the Council’s Asset Management Plan.

3.6.4 Budgeting is an inherently risky process. However, this Council’s budgets do not cover some of the areas that have traditionally caused problems for local authorities, such as social services and direct labour organisations.

3.6.5 The main uncertainty in the 2018-2019 budget relates to the BRRS income. Whilst this is essentially part of Central Government funding, the actual income received will vary depending on actual Business Rates income. It is difficult to predict the likely income with accuracy as explained in section 3.3 above. It will be affected by many variables beyond the Council’s control, for example, the level of appeals by ratepayers against their rating assessments.

3.6.6 The main uncertainties in the MTFP are:

 BRRS – uncertainty is heightened by the planned introduction of 75% localised Business Rates in 2020. The Council may still receive appeals relating to the 2017 revaluation beyond 2018-2019;

 Inflation – the MTFP assumes inflation will remain low. The Bank of England and economic commentators are forecasting that inflationary risks are increasing. Inflation is currently above government targets. This view is reinforced as the Bank of England recently increased the base rate by 0.25%. Also, employers and trade unions are negotiating a 2% pay offer from 1 April 2018;

4  European Union Withdrawal (Brexit) – the overall effects of Brexit are difficult to quantify. It does remain a significant risk which will only become clear when the withdrawal takes place. This will require careful attention;

 Central Government Funding – the MTFP shows income from RSDG and NHB continuing from 2020-2021. As already stated, government are consulting on a revised BRRS scheme. There is no certainty around government funding. Also, the Council’s NHB receipts have declined in recent years; mainly due to the revised arrangements. This is a concern if the decline continues;

 Grant from the County regarding second homes income - under an agreement with the County, the Council receives an agreed share of the extra income arising from the Council’s decision to reduce discount on second homes from 50% to 10%. Whilst the agreement is in place until March 2019, it is possible that the County could seek to renegotiate it. As explained in 3.3.4 above, efforts are being made to secure this agreement for a further ten years from 2019;

 Pension contributions - the next triennial revaluation of the Cumbria pension fund will produce a new employer’s contribution rate and new deficit-reducing lump sums from 1 April 2020. No provision has been made for additional cost at this time. A meaningful estimate can only be made when the review is published in Autumn 2019

3.6.7 From 2020-2021, there is considerable uncertainty around the new funding system which will be in place. There will be no RSG and Business Rates are expected to be 75% ‘localised’. In addition, Councils will have to take on a number of new functions from Central Government. It is therefore vital that the Council closely scrutinises and monitors its budget in future. Also, realisation of new income streams and efficiencies and savings should be sought.

3.7 Adequacy of Reserves

3.7.1 For a Council of Eden’s size, a ‘normal’ level of balances is probably about £1.5m to £2m (see Policy on the Use of Reserves: report F74/17, to the Resources Portfolio Holder, 26 October 2017).

3.7.2 The Council’s reserves, as shown in the appended MTFP, are estimated to be about £7.1m at 31 March 2019. The Council faces a number major risks and liabilities:

 The deficit on the Council’s share of the Cumbria pension fund deficit. This was estimated at £1.6m in March 2017, as part of the 2017 pension fund valuation. The deficit will require monitoring and may grow due to economic factors;

 The potential costs of resolving the current footway lighting issues; and

 The risks outlined at 3.6.6 in terms of the MTFP.

3.7.3 Taking account of the above, and the level of risk within the budget, the Director of Finance judges that reserves are at an appropriate level throughout the period of the MTFP. This will need to be reviewed if there are any major unplanned calls on reserves, for example, to fund capital expenditure.

3.7.4 It should be noted that the relatively high level of reserves has enabled the Council to invest £4m in the Property Fund. This produces a net return of 5% per annum. This compares to the current return of below 0.6% from ‘normal’ treasury management investments.

5 3.8 Revenue Budget 2017-2018 and 2018-2019 and Revised Budget 2017-2018

3.8.1. On 23 January 2018, the Executive considered report F10/18. Following consideration of this report, the Executive recommended the following revised budget for 2017-2018: £ Net Expenditure 7,936,142 Less: Revenue Support Grant -323,918 Less: Rural Services Delivery Grant -543,784 Less: Transition Grant -18,208 Less: Business Rates Retention Scheme -1,232,934 Less New Homes Bonus -951,490 Less: Council Tax -3,923,861 Deficit: Contribution from reserves 941,947 3.8.2 There are three changes to be incorporated into the above (see Appendix E). These decrease net expenditure to £7,672,142 and decrease the deficit to £677,947.

3.9 Budget 2018-2019

3.9.1 On 23 January 2018, the Executive considered report F10/18. Following consideration of this report, the Executive recommended the following budget for 2018-2019:

 Council Tax does not increase in 2018-2019 and remains at £190.75;

 Growth items are: £ Recurring 120,750 Non-recurring 82,500  Net expenditure and funding are: £ Net Expenditure 8,132,936 Less: Revenue Support Grant -87,296 Less: Rural Services Delivery Grant -543,784 Less: Business Rate Retention Scheme -2,504,000 Less: New Homes Bonus -615,546 Less: Council Tax -3,916,746 Deficit: Contribution from Reserves 465,564 3.9.2 In considering any Council Tax increase, the Executive bore in mind:

 The limit of 3% set by the Secretary of State for any Council Tax increase. Beyond that a referendum is required;

 The projected reductions in RSG and NHB over the period of the MTFP; and

 On balance, the Executive considered that Council Tax should not be increased in 2018-2019. In recognising the risks of so doing, the effect of the cessation of Special Expenses on many Parishes in the District was a concern and it was recognised that the Council has strong revenue balances in hand. There is a recognition that increases will probably be required in future years, especially in the light of reduced Government funding and demands on services. It would also help to partially offset future grant reductions.

6 3.9.3 Confirmation of the final Settlement has now been received. In the light of this, the Leader and the Resources Portfolio Holder are confirming their support for no increase in 2018-2019 a Band D Council Tax of £190.75.

3.9.4 Incorporating other changes since the Executive on 23 January 2018 gives updated net expenditure and funding as follows (see Appendix E): £ Net Expenditure (including growth)* 8,144,306 Less: RSG -87,296 Less: Rural Services Delivery Grant -677,638 Less: BRRS -2,079,000 Less: New Homes Bonus -615,546 Less: Council Tax -3,884,746 Less: Surplus on Collection Fund -32,000 Deficit 768,080 *Includes growth of £203,250 (see Appendix B). The deficit has increased from £465,564 to £768,080. 3.9.5 The Council’s Budget Requirement for 2018-2019 is therefore: £ Net Expenditure 8,144,306 Less: Deficit -768,080 Plus: Local Precepts (Appendix C) 1,017,162 Budget Requirement 8,393,388 3.9.6 The Council Tax Requirement for 2018-2019 is therefore: Excluding Local Including Local Precepts Local Precepts Precepts £ £ £ Budget Requirement 7,376,226 1,017,162 8,393,388 Less: RSG, RSDG, NHB and BRRS -3,459,480 -3,459,480 Less: Surplus on Collection Fund -32,000 -32,000 Council Tax Requirement 3,884,746 1,017,162 4,901,908 3.10 Capital Budget 2017-2022

3.10.1 On 23 January 2018, the Executive considered report F9/18 on the proposed Capital Budget 2017-2022. The Executive recommended: £’000 £’000 Total Expenditure 6,378 See Appendix D Funded By: Capital Receipts 2,019 Revenue contributions 688 New Homes Bonus contribution 703 Grants 2,107 Capital reserve 403 Other reserves 445 6,365 Deficit of funding over commitments 13 As noted in the capital budget report this deficit will be covered by future capital receipts.

7 3.10.2 A report earlier on tonight’s agenda recommended that the Capital Programme be updated to include loan funding to Heart of Cumbria Limited. This recommendation amends the Capital Programme and funding as follows: £’000 £’000 Total Expenditure 9,531 See Appendix D Funded By: Capital Receipts 2,019 Revenue contributions 2,475 New Homes Bonus contribution 2,069 Grants 2,107 Capital reserve 403 Other reserves 445 9,518 Deficit of funding over commitments 13 The deficit above is unchanged as the Council will fund the additional spending from its own resources.

3.11 Council Tax 2019-2020 and Beyond

3.11.1 The Council’s MTFP, set out at Appendix A, includes projected Council Tax levels up to 2021-2022. This assumes that the Council Tax will increase annually by 1.99% per annum from 2019-2020 onwards. Councils were given the power to increase Council Tax by up to 3% in 2018-2019 in the provisional settlement. This was fully set out in section 3 of the budget report: F10/18. 4 Policy Framework 4.1 The Council has four corporate priorities which are:  Decent Homes for All;  Strong Economy, Rich Environment;  Thriving Communities; and  Quality Council 4.2 This report supports the Quality Council corporate priority. 5 Consultation 5.1 A range of consultees were asked if they wished to comment on the draft budget. These were:  Scrutiny;  Staff; and  Unison 6 Implications

6.1 Financial and Resources

6.1.1 Any decision to reduce or increase resources or alternatively increase income must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-2019, as agreed at Council on 17 September 2015.

6.1.2 These are set out in section 3 above.

8 6.2 Legal

6.2.1 The Council is required to set a balanced budget which sets out how expenditure is to be funded from income and any required contribution from balances.

6.2.2 This report complies with the relevant legislation by setting out:  the Budget Requirement for 2018-2019 in accordance with the Local Government Finance Act 1992; and  the advice of the Council’s Chief Financial Officer on the robustness of the estimates and adequacy of reserves in accordance with the Local Government Act 2003. 6.3 Human Resources

6.3.1 There are no Human Resources implications.

6.4 Statutory Considerations Consideration: Details of any implications and proposed measures to address: Equality and Diversity No implications Health, Social Environmental and Economic Impact No implications Crime and Disorder No implications Children and Safeguarding No implications 6.5 Risk Management Risk Consequence Controls Required Over recent years excellent Poor financial Rigorous budget setting progress has been made in management. process involving all balancing the budget. This Reserves decline due to officers and Members. was reflected in the Annual deficit budgets. Effective and timely Audit Letter by the Council’s budget monitoring External Auditor (reported to Financial difficulties; processes. Council, 9 November 2017). possible withdrawal of However, given the continuing services. reductions in funding, the External Audit and public Council’s finances do criticism and reputational necessarily remain a risk and damage. officers and Members will need to work hard to ensure the budget stays balanced over the next few years. It is especially important that any additional spending does not create ongoing commitments. A range of specific risks are set out in the report.

9 7 Other Options Considered

7.1 No other options have been considered.

8 Reasons for the Decision/Recommendation

8.1. The Council has to consider the formal advice of its Chief Financial Officer on the robustness of the estimates included in the budget and the adequacy of the reserves.

Tracking Information Governance Check Date Considered Chief Finance Officer (or Deputy) 1 February 2018 Monitoring Officer (or Deputy) 2 February 2018 Assistant Director Not applicable

Background Papers: Resources Plan to Council, 7 September 2017, report F67/17 Multi-Year Financial Settlement: Council, 8 September 2016 – report F77/16 Policy on the Use of Reserves: Resources Portfolio, 26 October 2017, F74/17 Draft Revenue Budget Proposal: Executive, 12 December 2017 - report F82/17: this was the budget consulted upon Draft Capital Budget Proposal: Executive, 12 December 2017 - report F81/17: this was the budget consulted upon Proposed Revenue Budget 2018-2019: Executive, 23 January 2018 - report F10/18: this includes details of the proposed growth items and all consultation responses received Proposed Capital Budget 2017-2022: Executive, 23 January 2018, report F9/18 Budget Section of the website: this includes the detailed estimates, as considered by the Portfolio Holders: https://www.eden.gov.uk/your-council/council-business/council- finances/council-budget/budget-consultation-2018-2019/ https://www.gov.uk/government/collections/final-local-government- finance-settlement-england-2017-to-2018 Appendices: Appendix A: Medium Term Financial Plan 2018-2022 Appendix B: Proposed Growth 2018-2019 Appendix C: Local Precepts 2018-2019 Appendix D: Summary Capital Programme Appendix E: Changes Since Executive, 23 January 2018 Contact Officer: Clive Howey, Director of Finance, 01768 212213

10 Appendix A Medium Term Financial Plan 2018-2022 2018-19 2019-20 2020-21 2021-22 Notes £’000 £’000 £’000 £'000 Base Budget 8667 8834 9055 9221 Penrith New Squares -814 -820 -826 -831 1 Local Elections 0 60 0 0 Parish Grant re CTRS 15 15 15 16 2 Interest/Property Fund Rents Receivable -312 -297 -266 -262 3 Second Homes Grant from the County -219 -224 -228 -233 4 Proposed Growth: Recurring 121 123 126 129 5 Recurring Expenditure 7458 7691 7876 8040 Non-Recurring Costs: Proposed Growth: Non-Recurring 83 79 76 52 5 Previous Growth: Non-Recurring 59 13 0 0 Audio System for Council Chamber 30 6 Asset Valuation 15 7 Apprenticeship Levy 15 Revenue Contribution to Capital 167 885 561 341 8 Appleby Heritage Action Zone 31 51 46 26 9 Parish and Town Council Reserve 300 10 Other 1 4 4 4 Non-Recurring Expenditure 686 1047 687 423 Net Expenditure (Recurring and Non-Recurring) 8144 8738 8563 8463 Government Funding and Council Tax Income -7376 -7811 -7953 -8077 11, 12 Surplus Available for ‘Investment’ Deficit 768 927 610 386

Memo

General Fund Balance at End of Year 7132 6205 5595 5209 (incorporates annual deficit/surplus as above)

Notes 1. This comprises:  An annual rental in lieu of car parking income: indexed linked; and  The rental from the retail store: fixed amount 2. As agreed by Executive on 1 October 2013, varies pro rata to total Government funding (BRRS based on Baseline Funding Level).

3. This is made up of:  Interest of 0.65% on cash deposits is assumed in 2018-2019 and 0.75% thereafter; and  Rental share from the Property fund- budgeted at £210,000 per annum 4. Under a ten year agreement with the County Council (April 2009 to March 2019), the County Council grants back to the districts a third of the additional Council Tax raised by the districts, reducing the discount on second homes from 50% to 10%. This is assumed to continue after 2019. Negotiations have commenced with the County Council to renew this.

11 5. See Appendix B.

6. As agreed by Council 9 November 2017.

7. Quinquennial valuation due 31 March 2020.

8. Revenue Contributions to Capital are: 2018-19 2019-20 2020-21 2021-22 £’000 £’000 £’000 £'000 Castle Park Heritage Lottery Scheme 167 Loan Funding for Heart of Cumbria Ltd 885 561 341 Total Revenue Contribution to Capital 167 885 561 341 9. As agreed by Executive 5 December 2017.

10. The Leader announced at Executive on 12 December 2017 the creation of a fund for Parish and Town Councils to draw down money to maintain or enhance existing services as part of the Council’s devolution project, or use the funding for local capital projects. Applications from local Councils will be reviewed by the Executive who will recommend acceptance or rejection of applications during 2018-2019.

11. See overleaf.

12. Figures assume funding levels remain at 2017-2018 levels. This cannot be guaranteed after 2019-2020. However, until further information is available, this must be assumed. A consultation has commenced on funding after 2020.

12 Government Funding and Council Tax 2018-19 2019-20 2020-21 2021-22 Notes £’000 £’000 £’000 £’000 Revenue Support Grant 87 0 0 0 1 Rural Services Delivery Grant 678 544 544 544 1, 2 New Homes Bonus 615 642 642 642 3 Business Rates Retention Scheme: Base Income 2,291 2,337 2,342 2,342 4 Deficit from Previous Year -492 0 0 0 4 Pool 280 286 303 303 5 Total Government Funding 3,459 3,809 3,831 3,831 Council Tax Base Income 3,885 4,002 4,122 4,246 6 Surplus from Previous Year 32 0 0 0

Total 7,376 7,811 7,953 8,077

Notes 1. Uses the figures submitted to the DCLG in report F77/16 – Multi Year Financial Settlement approved by Council 8 September 2016. The 2018-2019 provisional settlement aligned RSDG to the same level as 2017-2018 and 2019-2020. The final settlement increased RSDG to £678,000. All figures after 2019-2020 are assumptions as there is no guidance available on funding post 2020.

2. Assumes RSDG continues at same level in 2020-2021 and 2021-2022.

3. Figure prepared assuming no bonus receivable for 2017-2018 in 2018-2019. Following years’ figures are taken from the 2018-2019 provisional settlement.

4. Based on actual Business Rates income up to 30 September 2017.

There is now a deficit forecast for 2018-2019 which is assumed to be fully recovered and the Collection Fund moves in to surplus from 2019-2020. The figures assume that BRRS remains at the 50% retention scheme. It is noted the government is consulting on 75% BRRS from 2020. Until figures are certain, the assumption of 50% remains valid.

5. The Council is part of Cumbria BRRS pool.

6. Council Tax has been estimated by:  Assuming no increase in 2018-2019 and thereafter, an annual increase of 1.99% (the 2018-2019 settlement provides for annual increase of up to 3%);  Using the final 2018-2019 taxbase; and  Assuming an increase in taxbase of 1% per annum after 2018-2019. This is consistent with the Local Plan. The impact of increased households has been reflected in expenditure within the MTFP.

13 Intentionally Blank

14 Appendix B

Proposed Growth 2018-2019

Recurring Non- Total Recurring £ £ £ See budget report to Executive, 23 January 2018 (F10/18), Section 3 and Annex 1, Appendix B Increased Software Costs for mobile working 6,750 Play Area equipment replacement (recurring until 2022) 4,000 Eden Community Fund 110,000 Contribution to Sexual Assault Referral Centre (recurs to 2021) 20,000 Revenue Support to Eden Arts (recurs to 2022) 20,000 Arts Support Fund (recurs to 2022) 5,000 District Wide Events Grants Fund (recurs to 2022) 25,000 Appleby Tourist Information Centre 6,000 Kirkby Stephen Visitor Information Centre 6,500 Total 120,750 82,500 203,250

15 Intentionally Blank

16 Appendix C Local Precept Amounts 2018-2019

Amount Amount Parish Parish £ £ Ainstable 12,035 Long Marton 4,000 Alston Moor 49,987 Lowther 2,500 Appleby-in-Westmorland 104,444 Mallerstang 536 Asby 6,967 Martindale 0 Askham 6,403 Matterdale 4,000 Bampton 4,455 Milburn 5,000 Bandleyside 2,000 Morland 6,300 Barton 4,000 Mungrisdale 4,830 Bolton 6,500 Murton 3,895 Brough 13,843 Musgrave 3,000 Brough Sowerby 700 Nateby 950 Brougham 420 Newbiggin 950 Castle Sowerby 2,500 Newby 700 Catterlen 7,000 Orton 17,000 Cliburn 1,700 Ousby 9,000 Clifton 6,000 Patterdale 7,000 Crackenthorpe 0 Penrith 417,739 Crosby Garrett 3,000 Ravenstonedale 26,025 Crosby Ravensworth 9,205 Shap 22,858 Culgaith 10,535 Skelton 14,250 Dacre 13,225 Sleagill 300 Dufton 4,631 Sockbridge and Tirril 6,000 Glassonby 3,477 Soulby 3,039 Great Salkeld 8,500 Stainmore 0 Great Strickland 2,500 Tebay 11,500 Greystoke 9,000 Temple Sowerby 7,542 Hartley 763 Threlkeld 10,000 Helbeck 0 Thrimby 0 Hesket 1,200 Waitby 400 Hunsonby 5,400 Warcop and Bleatarn 5,350 Hutton 1,800 Wharton 102 Kaber 1,600 Winton 2,487 Kings Meaburn 0 Yanwath and Eamont Bridge 3,650 Kirkby Stephen 60,906 TOTAL 1,017,162 Kirkby Thore 12,718 Kirkoswald 12,341 Langwathby 15,800 Lazonby 10,204 Little Strickland 500

17 Intentionally Blank

18 Appendix D

Summary – Capital Programme

Total Cost 2017-22 2017-18 2018-19 2019-20 2020-21 2021-22 Portfolio £'000 £'000 £'000 £'000 £'000 £'000 Services 850 100 750 0 0 0 Commercial Services 282 233 49 0 0 0 Housing and Health 3,214 1,754 710 250 250 250 Communities 209 22 187 0 0 0 Resources 823 823 0 0 0 0 Leader 1,000 1,000 0 0 0 0 Recommendations from F2/18 3,153 0 561 1,690 561 341 Total Capital Programme 9,531 3,932 2,257 1,940 811 591

19 Intentionally Blank

20 Appendix E

Changes Since Executive, 23 January 2018

2017-2018

Net Deficit Notes Expenditure £ £ At Executive, 23 January 2018 7,936,142 941,947 GDPR Gap Analysis 7,000 7,000 1 Recruitment of Chief Executive 25,000 25,000 2 BRRS income -296,000 -296,000 3

7,672,142 677,947

2018-2019

Net RSG RSDG BRRS NHB Council Deficit Notes Expenditure Tax (inc surplus) £ £ £ £ £ £ At Executive, 8,132,936 -87,296 -543,784 -2,504,000 -615,546 -3,916,746 465,564 23 January 2018 BRRS income 425,000 425,000 3 Employment of Chief 11,370 11,370 2 Executive RSDG Income -133,854 -133,854 4 8,144,306 -87,296 -677,638 -2,079,000 -615,546 -3,916,746 768,080

Notes 1. As per report G3/18, approved by Executive 23 January 2018. 2. Costs to advertise and recruit a Chief Executive. There is a report on this agenda on this matter. 3. Following the rejection of the 100% BRRS pilot bid and changes in the Council’s anticipated income in 2017-2018, a further review of income was undertaken. The outcome was increased income in 2017-2018 and reduced income in 2018-2019. Figures were not available when Executive considered its recommendation. As the figures are considered material, the budget is adjusted. 4. As per final 2018-2019 settlement announcement.