Issue - decisions

2017/18 Final Budget and Medium Term Financial Strategy (General Fund Budgets)

02/03/2017 - Budget

1.     That the revised medium term General Fund capital programme of £314.5 million, an increase of £14.5 million from the previously approved programme, reflecting the latest projected expenditure for the medium term be approved.

 

2.     That the additional resources for twelve new and eight existing General Fund projects totalling £14.5 million be approved.

 

3.     That the authorised borrowing limit for 2017/18 as required under Section 3(1) of the Local Government Act 2003 be set at £1,024.1 million (PI 5, appendix C) be approved.

 

4.     That the Treasury Management Strategy Statement 2017/18 as set out in appendix A to the Cabinet report be approved.

 

5.     That the Annual Investment Strategy 2017/18 as set out in appendix B to the Cabinet report be approved.

 

6.     That the Prudential and Treasury Management Indicators as set out in appendix C to the Cabinet report be approved.

 

7.     That the Annual Minimum Revenue Provision (MRP) Statement setting out the method used to calculate MRP for 2017/18 onwards as set out in appendix D to the Cabinet report be approved.

 

8.     That the Treasury Management Policy Statement and Treasury Management Practices as set out in appendix F to the Cabinet report be approved.

 

9.     That authority continues 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.

 

  1. That the net budget requirement for 2017/18 of £216.2 million for General Fund services (paragraph 13.4 of the Cabinet report) be approved.

 

  1. That the Medium Term Financial Strategy 2017/18 to 2019/20 as detailed in Table 6 and the budget preparation parameters underpinning the MTFS as detailed in Appendix A to the Cabinet report be approved.

 

  1. That the budget allocation for Adult Social Care outlined in the report in accordance with the Minimum Funding Level for Adult Social Care (section 11.0 of the Cabinet report) be approved.

 

  1. That a Council Tax for Council services in 2017/18 of £1,481.12 for a Band D property, being an increase of 3.99% on 2016/17 levels, which incorporates the 2% increase in relation to Adult Social Care (paragraph 7.3 of the Cabinet report) be approved.

 

  1. That work starts on developing budget reductions for 2018/19 and progress be reported to Cabinet in July 2017 (paragraph 13.5 of the Cabinet report) be approved.

 

  1. That it be noted that the Council Tax base for the year 2017/18 is calculated at 61,397.45 (Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”), as reported to Cabinet on 18 January 2017.

 

  1. Calculate that the Council Tax requirement for the Council’s own purposes for 2017/18 is £90,937,000.

 

  1. That the following amounts be calculated for the year 2017/18 in accordance with Sections 30 to 36 of the Local Government Finance Act 1992 as amended:

 

(a)    £631,275,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

 

(b)    £540,338,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

 

(c)    £90,937,000   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)    £1,481.12       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)     £1,481.12       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.

 

  1. To note 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.

 

 

  1. 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 2017/18 for each part of its area and for each of the categories of dwellings.

 

 

 

 

  1. 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 2017/18 for each of the categories of dwellings shown below:

 

 

 

  1. That a notice of the amounts payable in respect of chargeable dwellings in each valuation band for the year commencing on 1 April 2017 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.

 

  1. That the Council has determined that its relevant basic amount of Council for 2017/18 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.

 

  1. As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2017/18 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK Local Government Finance Act 1992.

 

24.That it be noted as a result of the changes to the MRP policy approved and implemented during 2014/15, the MRP charge for financial year 2017/18 will be zero increasing to £8.2 million in 2018/19.

 

25.That it be noted Cabinet (Resources) Panel and Council will receive regular Treasury Management reports during 2017/18 on performance against the key targets and Prudential and Treasury Management Indicators in the Treasury Management Strategy and Investment Strategy as set out in appendices B and C to the Cabinet report.

 


24/02/2017 - 2017/18 Budget and Medium Term Financial Strategy 2017/18 - 2019/20

That Council be recommended to:

 

1.   Approve the net budget requirement for 2017/18 of £216.2 million for General Fund services (paragraph 13.4).

2.   Approve the Medium Term Financial Strategy 2017/18 to 2019/20 as detailed in Table 6 and the budget preparation parameters underpinning the MTFS as detailed in Appendix A.

3.   Approve the budget allocation for Adult Social Care outlined in the report in accordance with the Minimum Funding Level for Adult Social Care (section 11.0).

4.   Approve a Council Tax for Council services in 2017/18 of £1,481.12 for a Band D property, being an increase of 3.99% on 2016/17 levels, which incorporates the 2% increase in relation to Adult Social Care (paragraph 7.3).

5.   Approve that work starts on developing budget reductions for 2018/19 and progress be reported to Cabinet in July 2017 (paragraph 13.5).

 

1. That the changes to the 2017/18 draft budget for General Fund services, since the draft budget was last reported to Cabinet on 18 October 2016, as detailed in sections 3 to 12 and summarised in Appendix A be approved.

2. That authority be delegated to the Cabinet Member for Resources in consultation with the Director of Finance to amend the budget, to reflect any changes arising out of the final settlement, for presentation to Council (paragraph 3.3).

3. That the responses made after consideration of the outcome of the budget consultation (section 10.0) be approved.

4. That the budget for 2017/18 is in balance without the use of general reserves (paragraph 13.3) be noted.

5. That it be noted that, in the opinion of the Director of Finance (Section 151 Officer), the 2017/18 budget estimates are robust (paragraph 13.4).

6. That it be noted that, the Council’s arrangements with the West Midlands Pension Fund has been subject to a recent triennial review which will cover pension payments covering the period from 2017/18 to 2019/20. Discussions have been held with the Fund and its actuary over the course of the last year and final agreement has been reached on employer pension payments to the Fund for the next three years. The agreed payments have been built into this budget and the authority’s medium term financial plans (paragraph 5.2).

7. That it be noted that, in accordance with delegated authority as approved by Cabinet on 19 October 2016, the Cabinet Member for Resources in consultation with the Director of Finance will continue to consider further opportunities to accelerate contribution payments to the West Midlands Pension Fund to secure additional savings (paragraph 5.4).

8. That it be noted that, in the opinion of the Director of Finance (Section 151 Officer), the proposed levels of reserves, provisions and balances is adequate in respect of the forthcoming financial year (paragraph 14.4).

9. That it be noted that a further £20.5 million needs to be identified over the period 2018/19 to 2019/20 in order to address the projected budget deficit (paragraph 13.6).

10. That it be noted that, due to external factors, budget assumptions remain subject to significant change, which could, therefore, result in alterations to the financial position facing the Council (paragraph 4.2).

11. That it be noted that, having identified significant budget reductions over the last six financial years, the extent of the financial challenge over the medium term continues to represent the most significant challenge that the council has ever faced (paragraph 13.7).

12. That it be noted that the overall level of risk associated with the 2017/18 budget and Medium Term Financial Strategy 2017/18 – 2019/20 is assessed as Amber (paragraph 16.1).

13.That it be noted that Councillors must have due regard to the public sector equality duty (Section 149 of the Equality Act 2010) when making budget decisions (paragraph 19.3).