Agenda item

Report of s151 Officer

*HC29         

TheLeaderpresenteda reportthatprovidedMemberswiththeannual reviewoftheCouncil’sMediumTermFinancialStrategy(MTFS).  Itwas basedona financialforecastovera rollingfiveyeartimeframeto2020/21, whichwouldhelpto ensureresourceswerealignedto theoutcomesin Our Plan.

The COPLead Financeanswereda numberofquestionsrelatingto the detailwithinthe report.  Membersdiscussedthe increaseinfinancialrisk and thevolatilitythat couldarisefrom changestobusinessrates legislation. Membersalsoexpressedtheview that thecapitalbudgetfor affordable Housingof£550,000plustheuncommittedNewHomesBonusamountsof £63,000(inyear15/16) and potentially £317,000(in16/17)shouldbeput to use, byinvestinginthe residentialsector,forexample.This would increase thecapitalvalue.  TheGroupManager– BusinessDevelopmenthadbeen askedto presenta reportcontainingoptionsfor considerationearly in the NewYear.  Finally,Membersagreedto acceptthe recommendationsofthe OverviewandScrutiny(Internal)Committeearisingfromtheir meetingon6 October,2015,and amendedtheirresolutionaccordingly.

ItwasthenRESOLVEDthatthe HubCommitteehad consideredthe five yearMediumTermFinancialStrategyand providedan indicationof the budget principlesto beadopted,withparticularreferenceto:

a)  thelevelof counciltaxincreasebeing1.99%;

b)  theuseofNewHomesBonustosupporttherevenuebudget;

c)  theamountofCouncilTaxSupportGrantto bepassedon toParish and  TownCouncilsbereducedby 11.2%;

d)  Otherincomegenerationandbudgetsavings;and

e)  MaintainingthecurrentCouncilpolicyon theminimumlevelof unearmarkedreservesbeing£750,000;and

f)   The anticipated2016/17budgetsurplus (£571,177)beingringfencedfor futureincomegenerationopportunitiesandheldinan earmarked reserveforthat purpose.