Agenda item

 Consideration was given to the Council’s Medium Term Financial Strategy 2014/2017 Report.

The report provided the two documents which made up the Medium Term Financial Strategy (MTFS) for the period 2014/2015 to 2016/2017. They were:

 Appendix A– The Leader’s Report 2014/2017, which set out the Council’s approach to achieving its ambitions of delivering positive community outcomes and supporting businesses over the medium term. The report provided context, highlighted achievements to date and gave details of the proposed changes to services.

 Appendix B – The Budget Report 2014/2017, which set out, in detail, the robust spending plans and income targets that would provide the resources for the achievement of the Council’s plans for the financial year starting 1st April 2014, as well as indicative estimates for 2015/2016 and 2016/2017. The report provided information on the balance of funding between central and local government as well as supporting information on requirements for capital expenditure and reserve levels.

It was reported that both documents were the result of the Business Planning Process led by the Council from July 2013 to February 2014. The MTFS Report had been considered by Cabinet on 4th February 2014 and was recommended to Council for approval. The report itself had been subject to minor alterations to reflect the release of the final local government finance settlement and confirmation of several specific grants. Both of these events had taken place after the Cabinet meeting.

The recommendations as set out at page 46 of the agenda papers and paragraph 2 of the report were proposed by the Leader of the Council, Cllr Michael Jones and seconded by Cllr Raynes.

An amendment was proposed to the 2014/2015 Budget package to remove a £40,000 saving relating to “PROW and countryside service review”, which was shown on the Environmental Protection and Enhancement financial summary table, at pages 78 and 164 of the agenda pack. This was accepted by the mover and seconder and it was approved that the resulting budget shortfall would be funded from general reserves in 2014/2015.

The Mayor reported that new Government regulations required the recording in the minutes of how each Member voted on any decision relating to the Budget or Council Tax. Accordingly, a recorded vote was carried out in respect of this item, with the following results:-

For

Councillors C Andrew, Rachel Bailey, Rhoda  Bailey, A Barratt, G Baxendale, D Bebbington, D Brown, L Brown,  J Clowes,  H Davenport, W S Davies, R Domleo, D Druce, J P Findlow, W Fitzgerald , L Gilbert, P Groves, J Hammond, M Hardy, P Hoyland, O Hunter,  M Jones,  A Kolker, W Livesley, J Macrae, D Marren, A Martin, P Mason, R Menlove, G Merry, B Moran,  P Raynes,  J Saunders,  B Silvester, M Simon,L Smetham,  A Thwaite, D Topping, G M Walton, M J  Weatherill,  P Whiteley, J  Wray

Against

D Brickhill, B Burkhill, P Butterill, R Fletcher, D Hough, S Jones, D Mahon, A Moran, B Murphy, D Neilson, M Parson, L Roberts.

Not voting

S Carter, S Cartlidge, S Corcoran, K Edwards, P Edwards, I Faseyi, D Flude, M Grant, A Harewood, S Hogben, J Jackson, D Newton.

The motion was declared carried by 42 votes for, 12 against, with 12 not voting.

RESOLVED

That Council approves: -

1. The Revenue estimates of the 2014/2015 budget and the medium term Capital Programme estimates 2014/2017, as detailed in the Leader’s Report (Appendix A of the report) and Budget Report (Appendix B of the report), which form the overall Medium Term Financial Strategy subject to the agreed amendment, resulting in the removal of a £40,000 saving relating to “PROW and countryside service review”, this to be funded from general reserves in 2014/15;

2. Band D Council Tax of £1,216.34 (no change from 2013/2014) (Appendix B of the report, Section 2).

3. The 2014/2015 non ring-fenced Specific Grants, and that any amendments to particular grants will be reported to Council, if further information is received from Government Departments or other funding bodies (Appendix B of the report, Annex 3).

4. The relevant Portfolio Holder to agree the use of additional Specific Grants received in conjunction with the Finance Portfolio Holder as further updates to the 2014/2015 funding position are received.

5. The recommended Prudential Indicators for Capital Financing (Appendix B of the report, Annex 5).

6. The Children and Family Services and Rural Affairs Portfolio Holder to agree any necessary amendment to the 2014/2015 Dedicated Schools Grant (DSG) of £184.8m and the associated policy proposals, in the light of further information received from DfE, pupil number changes, further academy transfers and the actual balance brought forward from 2013/2014 (Appendix B of the report, Annex 6).

7. The recommended Reserves Strategy and the proposal to create an earmarked investment reserve for £5.3m to be used to improve the financial sustainability of the Council in the medium term (Appendix B of the report, Annex 7), subject to the agreed amendment, resulting in the removal of a £40,000 saving relating to “PROW and countryside service review”, this to be funded from general reserves in 2014/15.

That Council notes: -

8. The Budget Engagement exercise undertaken by the Council, as set out in  Appendix A of the report (Annex 4).

9. The comments of the Council’s Chief Operating Officer (Section 151 Officer), contained within the Budget Report, regarding the robustness of estimates and level of reserves held by the Council based on these budget proposals (Appendix B of the report, Comment from the Chief Operating Officer).

10. The risk assessment detailed in the Budget Report (Appendix B of the report, Section 4).

11. That the estimates and profiling within the Capital Programme 2014/2017 reflect the ambition and future spending plans of the Council, which may vary as funding opportunities, prudential borrowing limits and operational capacity are confirmed (Appendix B of the report, Annex 6).

12. That projects will be managed through the Executive Monitoring Board. The Council’s Finance Procedure Rules will always apply should any additional spending requirements be identified (Appendix B of the report, Annex 6).

13 The progress made to become a commissioning council.