Agenda item

Corporate Plan 2020-21, Draft Budget and Medium Term Financial Position

Report of Executive Director – Finance (S151 Officer)

 

Purpose of report

 

The Corporate Plan, draft budget and Summary Medium Term Financial Position are presented as an integrated report. This demonstrates the Council’s strategic approach to aligning its resource to the delivery of the Council’s Priorities.

 

This report provides members with an update on the Corporate Plan 2020-21, the Draft Budget for 2020-21 and the Council’s Summary Medium Term Financial Position.    

   

Recommendations

 

The meeting is recommended:

 

1.1.    To consider and approve the Corporate Plan set out in Appendix 1 and recommend to Council for approval.

 

1.2.         To note the Risk Register contained at Appendix 2.

 

1.3.         To consider and recommend to Council an increase in the level of Council Tax for South Northamptonshire Council of £5.00, or 2.6%, for a Band D property in the District for this Council’s services increasing the Band D Council tax to £196.33.

 

1.4.         To consider the comments from the Scrutiny Committee when it considered the investment growth items at its meeting held on 15 January 2020 as detailed in paragraphs 6.8 to 6.11.

 

1.5.         To consider and approve the Draft Budget for 2020-21 as set out in Appendix 3 and recommend to Council for approval.

 

1.6.         To consider the Medium Term Financial Position as set out in Appendix 4 and recommend to Council for approval.

 

1.7.         To consider the Capital Programme as set out in Appendix 5 and recommend to Council for approval.

 

1.8.         To delegate authority to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to amend the Capital Programme to reflect any changes in external funding such as Heritage Lottery Funding, Better Care Funding and so on, so that the capital expenditure budgets are matched to the external income received.

 

1.9.         To consider and recommend to Council to approve a minimum level of General Fund reserves of £1.0m.

 

1.10.     To consider and recommend to Council that authority be delegated to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to:

·        Transfer monies to/from earmarked reserves should that become necessary during the financial year.

·        Update prudential indicators in both the Prudential Indicators Report and Treasury Management Strategy Report to Council, for any budget changes that impact on these.

 

1.11.     To consider the changes to the Fees and Charges as specifically set out in paragraphs 6.34-6.38 and approve the Fees and Charges schedule in Appendices 6a- 6h and to delegate authority to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to finalise the Fees and Charges Schedule if further adjustments are required prior to submission to Council.

 

1.12.     To note the Forecast Reserves Statement included as Appendix 7.

 

1.13.     To consider the Capital Strategy as set out in Appendix 8.

 

1.14.     To consider the Treasury Management Strategy as set out in Appendix 9.

 

1.15.     To consider the Investment Strategy as set out in Appendix 10.

 

1.16.     To consider and approve that authority be delegated to the Executive Director - Finance to make any technical changes necessary to the papers for the Council meeting of 26 February 2020.

 

1.17.     To note the contents of the Section 25 Report from the Executive Director - Finance in relation to the robustness of estimates and adequacy of reserves are set out in paragraphs 7.1 to 7.9 of this report.

 

1.18.     To consider and recommend to Council to approve the Statement of Pay Policy for 2020-21 as required by the Localism Act and detailed in Appendix 11.

 

1.19.     To note the equality impact assessment for 2020-21 detailed in Appendix 12.

 

1.20.     To delegate authority to the Chief Executive, in consultation with the Executive Director - Finance and the Leader, to represent the Council on the Business Rates Pilot Board and to make whatever decisions necessary to represent the interest of the Council on that Board within the parameters set out by MHCLG which shall include the authority to agree the allocation of this funding.

 

1.21.     To agree to release a further £1.9m of reserves for the Local Government Reorganisation programme (in addition to the £500,000 funding already agreed by Council on 30 August 2018) and to delegate responsibility to the Chief Executive and the Executive Director - Finance, in consultation with the Leader, to transfer up to £2.4m in total to the Future Northants programme office in order for the Strategic Delivery Director of the programme to be able to commit this expenditure in accordance with the agreed baseline budget and provide regular monitoring reports against all aspects of the £43.5m total programme budget.

 

Decision:

Resolved

 

(1)            That, having given due consideration, the Corporate Plan be recommended to Council for approval.

 

(2)            That the Risk Register be noted.

 

(3)            That, having given due consideration, Council be recommended to approve an increase in the level of Council Tax for South Northamptonshire Council of £5.00, or 2.6%, for a Band D property in the District for this Council’s services increasing the Band D Council tax to £196.33.

 

(4)            That the comments from the Scrutiny Committee when it considered the investment growth items at its meeting held on 15 January 2020 be noted.

 

(5)            That, having given due consideration, the Draft Budget for 2020-21 be endorsed and recommended to Council for approval.

 

(6)            That, having given due consideration, the Medium Term Financial Position be recommended to Council for approval.

 

(7)            That, having given due consideration, the Capital Programme be recommended to Council for approval.

 

(8)            That authority be delegated to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to amend the Capital Programme to reflect any changes in external funding such as Heritage Lottery Funding, Better Care Funding and so on, so that the capital expenditure budgets are matched to the external income received.

 

(9)            That, having given due consideration, Council be recommended to approve a minimum level of General Fund reserves of £1.0m.

 

(10)        That, having given due consideration, Council be recommended to delegate authority to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to:

·        Transfer monies to/from earmarked reserves should that become necessary during the financial year.

·        Update prudential indicators in both the Prudential Indicators Report and Treasury Management Strategy Report to Council, for any budget changes that impact on these.

 

(11)        That, having given due consideration to the changes to the Fees and Charges, the Fees and Charges schedule be endorsed and authority delegated to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to finalise the Fees and Charges Schedule if further adjustments are required prior to submission to Council, which is recommended to approve the Fees and Charges.

 

(12)        That the Forecast Reserves Statement be noted.

 

(13)        That, having given due consideration, the Capital Strategy be noted.

 

(14)        That, having given due consideration, the Treasury Management Strategy be noted.

 

(15)        That, having given due consideration, the Investment Strategy, be noted.

 

(16)        That, having given due consideration, authority be delegated to the Executive Director - Finance to make any technical changes necessary to the papers for the Council meeting of 26February 2020.

 

(17)        That the contents of the Section 25 Report from the Executive Director - Finance in relation to the robustness of estimates and adequacy of reserves be noted.

 

(18)        That, having given due consideration, Council be recommended to  approve the Statement of Pay Policy for 2020-21 as required by the Localism Act.

 

(19)        That the equality impact assessment for 2020-21 be noted.

 

(20)        That authority be delegated to the Chief Executive, in consultation with the Executive Director - Finance and the Leader, to represent the Council on the Business Rates Pilot Board and to make whatever decisions necessary to represent the interest of the Council on that Board within the parameters set out by MHCLG which shall include the authority to agree the allocation of this funding.

 

(21)        That it be agreed to release a further £1.9m of reserves for the Local Government Reorganisation programme (in addition to the £500,000 funding already agreed by Council on 30 August 2018) and to delegate responsibility to the Chief Executive and the Executive Director - Finance, in consultation with the Leader, to transfer up to £2.4m in total to the Future Northants programme office in order for the Strategic Delivery Director of the programme to be able to commit this expenditure in accordance with the agreed baseline budget and provide regular monitoring reports against all aspects of the £43.5m total programme budget.

 

Minutes:

The Executive Director – Finance (S151 Officer) submitted a report which provided Members with an update on the Corporate Plan 2020-21, the Draft Budget for 2020-21 and the Council’s Summary Medium Term Financial Position.    

 

The Corporate Plan, draft budget and Summary Medium Term Financial Position were presented as an integrated report. This demonstrated the Council’s strategic approach to aligning its resource to the delivery of the Council’s Priorities.

 

In introducing the report, the Portfolio Holder for Finance, Performance and Governance thanked the Executive Director – Finance and the Finance Team for their hard work towards the Budget and Medium Term Financial plan.

 

The Chairman extended Cabinet’s thanks to the Portfolio Holder for Finance, Performance and Governance for his hard work supporting the budget setting process. Cabinet also thanked the Budget and Financial Strategy Committee for their contribution to the process.

 

Resolved

 

(1)            That, having given due consideration, the Corporate Plan be recommended to Council for approval.

 

(2)            That the Risk Register be noted.

 

(3)            That, having given due consideration, Council be recommended to approve an increase in the level of Council Tax for South Northamptonshire Council of £5.00, or 2.6%, for a Band D property in the District for this Council’s services increasing the Band D Council tax to £196.33.

 

(4)            That the comments from the Scrutiny Committee when it considered the investment growth items at its meeting held on 15 January 2020 be noted.

 

(5)            That, having given due consideration, the Draft Budget for 2020-21 be endorsed and recommended to Council for approval.

 

(6)            That, having given due consideration, the Medium Term Financial Position be recommended to Council for approval.

 

(7)            That, having given due consideration, the Capital Programme be recommended to Council for approval.

 

(8)            That authority be delegated to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to amend the Capital Programme to reflect any changes in external funding such as Heritage Lottery Funding, Better Care Funding and so on, so that the capital expenditure budgets are matched to the external income received.

 

(9)            That, having given due consideration, Council be recommended to approve a minimum level of General Fund reserves of £1.0m.

 

(10)        That, having given due consideration, Council be recommended to delegate authority to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to:

·        Transfer monies to/from earmarked reserves should that become necessary during the financial year.

·        Update prudential indicators in both the Prudential Indicators Report and Treasury Management Strategy Report to Council, for any budget changes that impact on these.

 

(11)        That, having given due consideration to the changes to the Fees and Charges, the Fees and Charges schedule be endorsed and authority delegated to the Executive Director – Finance in consultation with the Portfolio Holder for Finance, Performance and Governance to finalise the Fees and Charges Schedule if further adjustments are required prior to submission to Council, which is recommended to approve the Fees and Charges.

 

(12)        That the Forecast Reserves Statement be noted.

 

(13)        That, having given due consideration, the Capital Strategy be noted.

 

(14)        That, having given due consideration, the Treasury Management Strategy be noted.

 

(15)        That, having given due consideration, the Investment Strategy, be noted.

 

(16)        That, having given due consideration, authority be delegated to the Executive Director - Finance to make any technical changes necessary to the papers for the Council meeting of 26February 2020.

 

(17)        That the contents of the Section 25 Report from the Executive Director - Finance in relation to the robustness of estimates and adequacy of reserves be noted.

 

(18)        That, having given due consideration, Council be recommended to  approve the Statement of Pay Policy for 2020-21 as required by the Localism Act.

 

(19)        That the equality impact assessment for 2020-21 be noted.

 

(20)        That authority be delegated to the Chief Executive, in consultation with the Executive Director - Finance and the Leader, to represent the Council on the Business Rates Pilot Board and to make whatever decisions necessary to represent the interest of the Council on that Board within the parameters set out by MHCLG which shall include the authority to agree the allocation of this funding.

 

(21)        That it be agreed to release a further £1.9m of reserves for the Local Government Reorganisation programme (in addition to the £500,000 funding already agreed by Council on 30 August 2018) and to delegate responsibility to the Chief Executive and the Executive Director - Finance, in consultation with the Leader, to transfer up to £2.4m in total to the Future Northants programme office in order for the Strategic Delivery Director of the programme to be able to commit this expenditure in accordance with the agreed baseline budget and provide regular monitoring reports against all aspects of the £43.5m total programme budget.

 

Reasons

 

This report alongside the appendices, set out the Corporate Plan, draft budget 2020-21 and MTFP for the Council to consider, alongside the setting of the 2020-21 Council Tax. It is a legal requirement to set a balanced budget and Council Tax for the financial year and refusing to do so would open the Council up to unnecessary risk and reputational damage.

 

Alternative options

 

Option 1: To reject the current proposals and make alternative recommendations.

Supporting documents: