Issue - meetings

Report of the Head of Corporate Finance and ICT

(A copy of the draft Council Tax Resolution will be circulated at the Council Meeting)

Further to Minute No. 69 of the meeting held on 22 January 2015, the Council considered the report of the Head of Corporate Finance and ICT which provided the following details:

·         the decisions on budget savings taken by the Council on 22 January 2015

·         the recommendations from Cabinet regarding the two year financial plan and the 2015/16 Council Tax options

·         summary of the draft budget recommended by the Cabinet

·         summary of the budget changes included in the draft budget

·         recommendations on the allocation of specific grants

·         an update on the funding of schools agreed by the Schools’ Forum

The report requested the Council to consider those items before determining the: Budget for 2015/16 and the two year financial plan for 2015/16 and 2016/17, setting the Council Tax increase for Sefton Council and approving the overall Council Tax resolution.

This report presented a two year budget plan, which would enable a budget for 2015/16 to be approved and identified those policy changes required to deliver a sustainable and robust two year budget plan. Due to the mixture of efficiencies and significant policy changes, some of the options would not be realised within a 12 month period and would contribute to the 2016/17 budget as illustrated in the report. This would require the implementation of major change programmes and appropriate capacity would need to be dedicated to ensure deliverability. Given the scale of the budget reductions, any slippage or underachievement would have implications for the financial management of the Council and as such, robust management and monitoring arrangements would continue to be operated.

The report included the following appendices:

·         Appendix 1: List of Budget Proposals

·         Appendix 2: Individual School Budgets

·         Appendix 3: Draft Council budgets 2015/16 and 2016/17.

The Council also considered an update note by the Head of Corporate Finance and ICT which provided final information on the level of resource required by levying bodies, plus agreed precepts from the Police and Crime Commissioner, the Fire and Rescue Authority and local Parish Councils, and set out the draft Council Tax resolution for 2015/16.

The Leader of the Council (Councillor P. Dowd) referred to the budget cuts of £114m which had previously been agreed for the last four years and the process that had been undertaken to identify further savings of £55m for the period 2015/16 to 2016/17 as fairly and as reasonably as possible and he then outlined the recommendations set out in the report.

It was moved by Councillor P. Dowd and seconded by Councillor Maher:

“That:

(1)       approval be given to:

(i)         the use of Section 106 money as set out in Paragraph 3.2 (a) of the report;

(ii)        an increase in cremation and burial fees by 5% over inflation as set out in Paragraph 3.2 (b) of the report;

(iii)       a further reduction in the CHAMPS budget as set out in Paragraph 3.2 (c) of the report;

(iv)       the capitalisation of Highways, ICT and systems development currently funded by the revenue budget, as set out in Paragraph 3.2  ...  view the full minutes text for item 86

Report of the Head of Corporate Finance and ICT

Further to Minute No. 48 of the meeting held on 15 January 2015, the Cabinet considered the report of the Head of Corporate Finance and ICT which provided details of options for bridging the outstanding budget gap of £15.478m to achieve the £55m savings for the period 2015/16 to 2016/17.

Decision Made:

That:

(1)      the updated Budget position for 2015/2016 and 2016/17 be noted;

(2)      the means of bridging the identified outstanding Budget gap, set out in paragraph 3.2 of the report be noted;

(3)      that officers be authorised in particular to undertake the necessary actions relating to the saving associated with no incremental progression in 2016/17 and more generally any other relevant preparatory steps associated with the recommendations referred to in (4) below, subject to Council approval; and

(4)      the Council be recommended to give approval to:

(i)       the use of Section 106 money as outlined in paragraph 3.2 (a) of the report;

(ii)      an increase in cremation and burial fees by 5% over inflation;

(iii)      a further reduction in the CHAMPS budget as outlined in paragraph 3.2.(d) of the report;

(iv)     the capitalisation of Highways, ICT and systems development currently funded by the revenue budget;

(v)      an adjustment to the Medium Term Financial Plan which only allows for incremental progression in 2015/16;

(vi)     the cessation of discretionary support to Parishes for the Council Tax  Reduction Scheme; and

(vii)     the budget assumptions contained in paragraphs 2.2.(a) and 2.2.(b) and 3.2.(h) of the report.

(5)      the option to cease discretionary rate relief for sports clubs be deferred for further consideration.

Reasons for Decision:

To provide the basis on which the Council’s two year budget plan would be balanced for the period 2015-2017.

Alternative Options Considered and Rejected:

The Council has a legal obligation to set a balanced and robust budget and to set the Council Tax for 2015/16 before 10 March 2015.