Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Decision:
In general
The
Cabinet:
- noted that
the Financial Strategy of the Authority had been further developed
and consisted of four linked papers. The papers and figures were
subject to final review because of Government announcements and
final due diligence;
- noted the
current reports reflected the suggestions of Cabinet and Members in
general made in early January, later and better information, minor
presentation improvements and the inclusion of a summary balance
sheet statement;
- allowed for
this level of final change before presentation of the Financial
Strategy to the Full Council in February adjustments with a
cumulative net impact of £500,000 could be made on the
direction of the Leader in consultation with the Portfolio Holder
for Planning and the Section 151 Officer and reported back to the
Council; and
- noted that
adjustments to the papers with a value more than £500,000
were brought back to the Cabinet.
Paper A, Medium Term Financial Strategy
The Cabinet:
- approved the
approach set out in the Medium Term Financial Strategy,
particularly in respect of inflation of cost and charges and fees
and the aim to maintain the financial strength of the Authority as
evidenced by reserve balances; and
- supported the
increase in the importance of the income from Qualis in respect of the medium term financial
strategy and the budget.
Paper B, Budget 2020/21
The Cabinet:
- approved the
2020/21 budget in outline and confirmed the approach to cost and
income inflation at 3.0%, noting that rents would rise per the
national formula at 2.7% and car parking income would not rise at
all pending the outcome of the review;
- approved the
2020/21 budget in outline and confirmed the list of developments
for which funding would be released on implementation;
- approved the
general and HRA capital spend of £26,119,250 in
total;
- approved the
loans to Qualis that with total up to
£120m in 2020/21 as set out in the report; and
- approved the
2020/21 budget in outline and confirmed that the overall funding
adjustments for the District Development Fund and savings and
contingency were as set out, i.e. a net draw from DDF of
£846,660 (£2m forecast last year), £500,000 of
savings, the formation of a contingency fund assumed spent of
£1,095,540.
Paper C, Prudential Indicators
The Cabinet:
- noted the
intent of keeping the financial strength of thee Authority at
current levels;
- noted the
impact of taking loans and onwardly
granting loans to Qualis with a margin
of profit for the Authority;
- noted the
general risk price approach to the loans granted to Qualis; and
- noted that
the full set of prudential indicators along with the treasury
strategy would be taken to the Full Council in
February.
Paper D, Council Tax Increase
The Cabinet:
- to recommend
the council tax increase of 1.5% (half the predicted inflation
rate) for 2020/21 to full Council; and
- noted that in
2021/22 the options to cease or reduce council tax rates exists
(though the Government expectation on what should be raised from
council tax should be noted).
Report author: Nick Dawe
Publication date: 10/02/2020
Date of decision: 06/02/2020
Decided at meeting: 06/02/2020 - Cabinet
Accompanying Documents: