Decision details

Final Budget Report 2019-2020

Decision Maker: Council

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To consider and determine the Council's budgetary provisions for the forthcoming municipal year.

Decision:

1.    That the City of Wolverhampton Council Capital Strategy be approved.

2.    That the revised medium-term General capital programme of £337.8 million, a reduction of £1.3 million from the previously approved programme and the change in associated resources be approved.

3.    That the authorised borrowing limit for 2019-2020 to support the capital strategy as required under Section 3(1) of the Local Government Act 2003 be approved to be set at £1,141.5 million (PI3, Appendix 3 of the Cabinet report); the forecast borrowing is below the authorised borrowing limit.

4.    That the Treasury Management Strategy Statement 2019-2020 be approved as set out in Appendix 1 of the Cabinet report.

5.    That the Annual Investment Strategy 2019-2020 be approved as set out in Appendix 2 of the Cabinet report.

6.    That the Prudential and Treasury Management Indicators be approved as set out in Appendix 3 of the Cabinet report.

7.    That the Annual Minimum Revenue Provision (MRP) Statement setting out the method used to calculate MRP for 2019-2020 be approved as set out in Appendix 4 of the Cabinet report.

8.    That the Treasury Management Policy Statement and Treasury Management Practices be approved as set out in Appendix 6 of the Cabinet report.

9.    That authority continue to be delegated to the Director of Finance to amend the Treasury Management Policy and Practices and any corresponding changes required to the Treasury Management Strategy, the Prudential and Treasury Management Indicators, the Investment Strategy and the Annual MRP Statement to ensure they remain aligned. Any amendments will be reported to the Cabinet Member for Resources and Cabinet (Resources) Panel as appropriate.

10. That the removal of the Local Prudential Indicator LPI 2 HRA limit on indebtedness from the 2018-2019 Prudential and Treasury Management Indicators approved by Council on 7 March 2018, be approved.

11. That the net budget requirement for 2019-2020 of £234.9 million for General Fund services be approved (as set out at paragraph 18.1 of the Cabinet report).

12. That the Medium-Term Financial Strategy 2019-2020 to 2023-2024 as detailed in Table 10 and the budget preparation parameters underpinning the MTFS as detailed in Appendix 1 of the Cabinet report be approved.

13. A Council Tax for Council services in 2019-2020 of £1,617.06 for a Band D property, being an increase of 4.99% on 2018-2019 levels, which incorporates the 2% increase in relation to Adult Social Care be approved (as set out at paragraph 7.5 of the Cabinet report).

14. That it be approved that work start on developing budget reductions and income generation proposals for 2020-2021 onwards in line with the Five Year Financial Strategy (as set out at paragraph 14.3 of the Cabinet report) and progress be reported to Cabinet in July 2019 (as set out at paragraph 18.8 of the Cabinet report).

15. That the revision to the Council Tax Charges on Empty Properties and Second Homes Policy with effect from 1 April 2019 to introduce additional charges (as set out at paragraph 8.3 of the Cabinet report) be approved.

16. That it be noted that the Council Tax base for the year 2019-2020 is calculated at 63,996.44 (Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”), as reported to Cabinet on 20 February 2019.

17. Calculate that the Council Tax requirement for the Council’s own purposes for 2019-2020 is £103,486,000.

18. That the following amounts be calculated for the year 2018-2019 in accordance with Sections 30 to 36 of the Local Government Finance Act 1992 as amended:

(a) £627,862,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

(b) £524,376,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

(c) £103,486,000 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 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

(d) £1,617.06 being the amount at 3(c) above (Item R), all divided by Item T (section 1 above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).

(e) £0 being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act.

(f) £1,617.06 being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

19. That it be noted that West Midlands Police and Fire Authorities have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

Text Box:
 

 

 

 

 


Text Box: 20. That the Council, in accordance with Sections 30 to 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables as the amounts of Council Tax for 2019-2020 for each part of its area and for each of the categories of dwellings.

 

 

 

 

 

 

 

 

 

Text Box: 21. That, having calculated the aggregate in each case of the amounts at (3) (f) and (4) above, the City Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of the Council Tax for the year 2019-2020 for each of the categories of dwellings shown below:

 

 

 

 

 

 

22. That a notice of the amounts payable in respect of chargeable dwellings in each valuation band for the year commencing on 1 April 2019 be published in at least one local newspaper and that in accordance with Section 3(2) of the Local Government Finance Act 1992, this notice shall also make reference to the National Non-Domestic Rating Multiplier set by the Secretary of State, and specify that the Council Tax and the non-domestic rate demands are annual demands which cover the full financial year.

23. The Council has determined that its relevant basic amount of Council for 2019-2020 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.

24. As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2019-2020 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Finance Act 1992.

25. That it be noted that the MRP charge for the financial year 2019-2020 will be £15.4 million; it is forecast to increase to £18.2 million in 2020-2021 (paragraph 2.14 of the Cabinet report).

26. That it be noted that Cabinet or Cabinet (Resources) Panel and Council will receive regular Treasury Management reports during 2019-2020 on performance against the key targets and Prudential and Treasury Management Indicators in the Treasury Management Strategy and Investment Strategy as set out in paragraph 2.12 and Appendices 2 and 3 to the Cabinet report.

27. That it be noted that the statements for 2019-2020 reflect the new Code of Practice on Treasury Management and the Prudential Code and also the revised guidance on Local Government Investments issued by the Ministry of Housing, Communities & Local Government (MHCLG).

 

 

Report author: Mohammed Hasan

Publication date: 07/03/2019

Date of decision: 06/03/2019

Decided at meeting: 06/03/2019 - Council

Accompanying Documents: