Decision details

The Executive considered a report that provided an update on the General Fund Medium Term Financial Strategy for the period 2018/19 - 2022/23 and an Update on the Financial Security targets for the period 2019/20 – 2020/21.

It was noted that the Leader planned to hold an Executive Finance session on savings/efficiencies in Autumn 2018.

It was RESOLVED:

1.         That the Medium Term Financial Strategy (MTFS) principles, as outlined in paragraph 4.1.6 of the report, are approved.

2.         That, for modelling purposes, Council Tax increases be set at the threshold of 2.99%, subject to any change in government rules to achieve a balanced budget (Section 4.7 of the report refers).

3.         That the updated inflation assumptions used in the Medium Term Financial Strategy (Section 4.4 of the report refers) are approved.

4.         That a General Fund Financial Security Target of £2.24million is approved for the period 2019/20- 2021/22 (Paragraph 4.6.15 of the report refers), including an assumption that fees and charges increases be in line with inflation.

5.         That amounts of £300,000 and £100,000 for 2018/19 and 2019/20 respectively, are approved for inclusion in the budget setting process as a Transformation Fund, to help deliver the Future Town Future Council programme, (Paragraph 4.5.2 of the report refers).

6.         That General Fund growth is only approved for the Council’s FTFC priorities and is funded from within the existing baseline budgets or by further savings in addition to the £2.24Million target identified (Paragraph 4.5.4 of the report refers).

7.         That approval to enter the Business Rates Hertfordshire pilot for 2019/20 is delegated to the Assistant Director (Finance and Estates), after consultation with the Resources Portfolio Holder (Paragraph 4.8.7 of the report refers).

8.         That the Leader’s Financial Security Group oversee the development of the 2019/20 – 2021/22 savings package.

9.         That a minimum level of balances for the General Fund of £2.96million is approved for 2019/20 (section 4.11 of the report refers).

10.      That the MTFS is regularly updated for any material financial pressures so forecasts are updated and is re-presented to the Executive for approval.

11.      That public consultation be commissioned in line with the requirements of the Council’s Consultation and Engagement Strategy.

12.      That the Trade Unions and staff are consulted on the key messages contained within the Medium Term Financial Strategies and more specifically when drawing up any proposals where there is a risk of redundancy.

Reason for Decision: As contained in the report.

Other Options considered: As contained in the report.