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BUDGET AND COUNCIL TAX CONSULTATION 2010/11
Chairman - Councillor Peter Halliday (Finance Portfolio Holder)
Presented by - Richard Barrett (Deputy Head of FinancialServices)
In Attendance: Councillor Neil Stock (Executive Leader) John Hawkins (Chief Executive) Karen Neath (Head of Financial Services)
Audience Representatives of Business Rate Payers Community and Voluntary Groups
PURPOSE OF MEETING
Present initial budget proposals for
discussion / consultation with outcomes
forming part of Cabinet’s consideration of
their final budget proposals to full
Council in February
Presentation Outline
Quick Look Back to Last Year
Context and Approach to Setting the 2010/11 Budget
Revenue Budget Summary 2010/11 and Key Changes
Capital Programme Summary 2010/11 and Key
Changes
Approach to 2011/12 and beyond
Financial Strategy and Budgets
Financial risk based approach including cost pressures and addressing other upcoming financial challenges
Government continued with Council Tax ‘capping’ powers
4.0% Council Tax increase for Tendring District Council
2nd Lowest Council Tax in Essex (including parish precepts)
Budget included in excess of £1m of one-off funding / investment in the district
Quick look back to 2009/10
Quick look back to 2009/10Revenue Expenditure (incl. Housing & Parish Precepts)
£101.459mGeneral Fund Revenue Expenditure £88.466mCapital Expenditure £7.363mBudget Requirement £21.613mBudget Requirement met by Council Tax £7.622m
BAND D INCREASE OFTENDRING DISTRICT COUNCIL £149.88 4.0% PARISHES £27.22 -1.4% ESSEX COUNTY COUNCIL £1066.50 1.9%FIRE AUTHORITY £64.62 3.8%POLICE AUTHORITY £128.25 4.9%
TOTAL AVERAGE COUNCIL TAX £1,436.47 2.4% inc
Last Years Budget Consultation – Update on some key points raised
“With regard to Jaywick things seem to be stagnant. When will action be taken? When will the residents in Jaywick be made aware of what is going on?”
- Establishment of Jaywick Strategic Leadership Group- 15 year regeneration plan / working with the Community- Determined to deliver improvements in the short term
“Sea defences are important for the future. In the long term how do we ensure financially that we don’t let the issues slip? How do we focus the funding we do have?”
- All opportunities to ‘lobby’ government for additional funding for all areas of the Tendring coast are identified and pursued whenever possible.
- Significant grant funded work for various seafront areas included in the capital programme in 2009/10 and 2010/11
- TDC successful in obtaining coastal pathfinder funding to explore new approaches to plan for and manage adaptation to coastal change in partnership with their communities
Last Years Budget Consultation – Update on some key points raised
“How much of the small schemes budget has been spent by Members?”- £0.055m in 2008/09- £0.077m to date in 2009/10- Full details published on the Council’s website
“LABGI is changing in the forthcoming year. Does the Council have any figures and will this funding be directed towards economic projects?”
- TDC received £0.061m in 2009/10 to support the overall budget which includes investment in regeneration and economic development.
- No figures announced yet for 2010/11
Last Years Budget Consultation – Update on some key points raised
“Up to now we have been eligible for business rates transitional relief. This is now ending and this will cause us severe problems.”
- Local Business Summit held- Prompt payment Code- Discretionary Rate Reliefs / Small Business Rate Relief
“There were not enough charity stands at the late night shopping event. These are being charged £100 at big events. I have also seen a stand selling guns and knives”
- Chamber of Commerce who organise the late night shopping event informed about issue regarding charity stands
- Trading Standards informed of issue regarding the selling of guns and knives
FINANCIAL STRATEGY OVERVIEW 2010/11
National issues impacting on Financial Strategy
Recession (National and Global Economies) Slow down in housing and property market Falling Interest Rates Volatility in income budgets Volatility in expenditure budgets such as
energy costs RPI / Contract Costs External Funding Streams Pressures from future Comprehensive spending
reviews / Government Financial Settlements
FINANCIAL STRATEGY OVERVIEW 2010/11
Local issues impacting on Financial Strategy
Low council tax base and wide service base over wide geographical area including coastal infrastructure
Cost pressures continually emerging and have been excluded in the past
Inflationary pressures New responsibilities / changing legislation Some of the most deprived wards in the
Country are within the district
FINANCIAL STRATEGY OVERVIEW 2010/11
Very challenging public sector financial environment in the next few years and beyond
Need to recognise the affect this will have on the Council’s finances and its ability to deliver services and take action in advance
Any additional resources set aside to support the budget in future years or where appropriate to support prioritised expenditure
Reviewing and challenging individual budgets to release resources where possible
BUDGET PROPOSALS 2010/11
£m
Base Budget
Removal of 2009/10 One-off Items
Inflation and Increments
21.613
(1.094)
0.200
Cost pressures included in the budget
Funding carried forward removed
0.389
1.481
Other budget adjustments
Budget Review Exercise
(0.324)
(0.341)
BUDGET REQUIREMENT 21.924
Budget Requirement met by: £m
Provisional Government Grant 14.199
Council Tax (assumed no increase) 7.645
Surplus on collection fund 0.080
TOTAL FUNDING 21.924
BUDGET PROPOSALS 2010/11
BUDGET PROPOSALS 2010/11
USE OF EARMARKED RESERVES TO SUPPORT BUDGET POSITION
Earmarked Reserves £0.015mCommitments Reserve £0.101mUncommitted Reserves £nilTOTAL £0.116m
____________________
March10 March11Est. Total Earmarked Reserves Remaining £3.065m £2.950mEst. Total Uncommitted Reserves Remaining £3.900m £3.900mTOTAL RESERVES £6.966m £6.850m
BUDGET PROPOSALS 2010/11
Key Items / Changes included in the Budget £m
Reduction in Interest Receivable 0.105
Reduction in Planning Income 0.065
Reduction in Building Control Income 0.074
NNDR 0.018
Second Homes Discount (Income from ECC) (0.045)
Car Park Income (0.085)
Service Improvement Budget 0.255
BUDGET PROPOSALS 2010/11
In November 2009 the Minister of State for Local Government confirmed the provisional grant settlements for 2010/11 for consultation. Final announcements are expected sometime in January
The Government are prepared to take capping action against excessive increases set by individual Authorities in 2010/11
The Government’s expectation is that Council Tax levels should be lower than the national average of 3% last year.
PROPOSED CAPITAL PROGRAMME 2010/11
2009/10 2010/11
£m £m
Housing Stock and Housing Grants 5.227 4.295
Non Housing 8.574 3.307
TOTAL 13.801 7.602
FUNDED BY
Borrowing 0.688 0.688
Government Grants 5.849 5.552
External Contributions 3.729 0.510
Capital Receipts 1.034 0.633
Revenue and Reserves 2.501 0.219
TOTAL 13.801 7.602
PROPOSED CAPITAL PROGRAMME 2010/11
Key Investments 10/11 £m
Coastal Pathfinder 0.633
Coast Protection 1.795
Regeneration – Clacton 0.150
Vehicle Replacement 0.360
RISKS AND RESERVES 2010/11
Risks within the strategy Unfunded / Emerging Cost Pressures Volatility in Income Inflation, interest and pay award New Responsibilities
Mitigate against these risks Sustainable Use of Reserves Alternative Responses
FINALISATION OF BUDGET PROCESS 2010/11
15 AND 18 JANUARY 2010 – REVIEW OF THE BUDGET BY CORPORATE MANAGEMENT COMMITTEE – Detailed budget proposals considered and comments fed back to Cabinet
3 FEBRUARY 2010 - CABINET CONSIDER AND RECOMMEND FINAL FINANCIAL STRATEGY AND BUDGET TO COUNCIL – Takes into account consideration of comments from Corporate Management Committee and from today’s meeting
18 FEBRUARY 2010 – COUNCIL CONSIDER FOR APPROVAL THE BUDGET PROPOSALS AND LEVEL OF COUNCIL TAX
FINANCIAL STRATEGY 2011/12 AND BEYOND
Revised Financial Strategy forecasts potential funding ‘gaps’ in the medium term of -
£1.304m for 2011/12 (assuming no increase in Government Grant)
£0.824m for 2012/13£0.795m for 2013/14£0.790m for 2014/15
Outlook for Public Sector Financial Environment and Settlement from the Government
There are unfunded cost pressures and additional cost pressures likely to emerge along with additional responsibilities that may be placed on the Council
Continuation of the Financial Strategy process – Priority and Risk Based Continually challenge and review what services we deliver and how we
deliver them Identify and maximise value for money opportunities
AND FINALLY…..
COMMENTS
AND
QUESTIONS
CONTACT DETAILS
Karen Neath Head of Financial Services
Email: kneath@tendringdc.gov.uk
Richard Barrett Deputy Head of Financial ServicesEmail: rbarrett@tendringdc.gov.uk