Decision details

The Executive considered a report for recommendation to Council concerning the Council's Final General Fund Budget for 2018/19 and projected 2017/18 General Fund Budget and Final proposals for the 2018/19 Council Tax.

The Portfolio Holder for Resources corrected a typographical error at recommendation 2.9 of the report.  The figure quoted for Growth Options was £470,371 not ‘£430,371’ as quoted.

It was reported that the final grant settlement had been published after this report was completed and there was an additional £5,160 of Section 31 grant payable in 2018/19, (due to an alteration in the compensation for changes in business rates). The additional £5,160 would reduce the 2018/19 net budget and the contribution from balances by the same amount. This would be included in the report to Council on 28 February 2018 meeting. 

The Executive was informed that whilst the HCC and Police & Crime Commissioner budgets had not been finalised it was understood that their increases would be in the region of 5.8% and 7.89% respectively.

The Executive was of the view that it was important that the Council’s Budget leaflet made it clear that of the total Council Tax paid for a Band D property, only £198 went toward the funding of SBC’s 120 services.  It should also be noted that the budget had been drawn up based on extensive consultations and the residents’ survey.

In response to a Member’s question the Assistant Director (Finance & Estates) explained the difference between ‘contingency’ in recommendation 2.5 and ‘reserves’.  The contingency figure was recommended to be held by the Executive in order that if any spend arose that had not been included in the budget there was not a subsequent need to refer the matter to Council.  There were two types of ‘reserves’; allocated reserves that were ring-fenced and the reserves on General Fund balances calculated by risk assessments of the budget that were to be used to mitigate the likes of shortfall in income.

At this juncture the Executive recorded its disappointment that the Hertfordshire NNDR Pilot had not been approved by Government.  Only five pilots, with one in London, were to proceed.

The Executive recorded its thanks to Councillor Mrs Lloyd, the Members of the Leader’s Financial Security Group and the Assistant Director (Finance & Estates) who had worked on putting together the recommended budget for 2018/2019.

 It was RESOLVED that the following proposals be recommended to Council on 28 February 2018:

1. That the 2017/18 revised net expenditure on the General Fund of £10,493,720 be approved.

2.  That a Final General Fund Budget Requirement for 2018/19 of £8,288,919 be agreed, with a contribution from balances of £823,981 and a Band D Council Tax of £204.46 (assuming a 2.99% increase for inclusion in the draft council tax resolution).

3.  That the Risk Assessments of General Fund Balances, as shown at Appendix B to this report, be approved.

4.  That a minimum level of General Fund reserves of £2,760,570, in line with the 2018/19 risk assessment of balances, as shown at Appendix B to this report be approved. 

5. That a contingency sum of £400,000 within which the Executive can approve supplementary estimates, be approved for 2018/19, (unchanged from 2017/18).

6. That the 2018/19 proposed Fees and Charges increase of £134,160 (Appendix C to this report) be approved for 2018/19.

7. That the 2018/19 proposed concessions (Appendix D to this report) be approved for 2018/19.

8. That the 2018/19 proposed new Financial Security Options of £342,399 (Appendix E to this report) be approved for 2018/19.

9. That the 2018/19 proposed Growth options of £470,371 (Appendix F to this report) be approved for 2018/19.

10. That the 2018/19 business rates gains of £356,610 above the baseline assessment be ring fenced for town centre regeneration (SG1), (paragraph 4.8.3 of the report refers) be approved for 2018/19.

11. That new capital receipts and unspent revenue balances (above the £350,000 transferred to the capital reserve) be earmarked for the Council’s and resident’s top priority, town centre regeneration be approved.

12. That the advice on of the Assistant Director (Finance and Estates) on the robustness of the draft budget and the adequacy of reserves (Appendix J) be noted.