Issue - meetings

To consider the attached report (C-032-2019-20).

In general

The Cabinet:

1. 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;
2. 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;
3. 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
4. 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:

1. 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
2. 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:

1. 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;
2. approved the 2020/21 budget in outline and confirmed the list of developments for which funding would be released on implementation;
3. approved the general and HRA capital spend of £26,119,250 in total;
4. approved the loans to Qualis that with total up to £120m in 2020/21 as set out in the report; and
5. 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:

1. noted the intent of keeping the financial strength of thee Authority at current levels;
2. noted the impact of taking loans and onwardly granting loans to Qualis with a margin of profit for the Authority;
3. noted the general risk price approach to the loans granted to Qualis; and
4. 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:

1. to recommend the council tax increase of 1.5% (half the predicted inflation rate) for 2020/21 to full Council; and
2. 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).

In the absence of the Business Services Portfolio Holder, the Leader of the Council introduced the draft budget report for the coming year. He noted that these papers had not significantly changed since members had last seen these reports in January 2020. They were being kept under review by officers and would be updated as and when necessary before they went to full Council at the end of February.

It was important to note that EFDC would continue to have a strong financial performance and balance sheet and importantly the usable reserves would still be running in excess of 25% including in the current Treasury Strategy.

He drew attention to the following: the general economic outlook was for a continuation of moderate growth, with the possibility of inflationary pressures breaching 3% this year. Also, this year costs would be assumed to increase with inflation.

This budget had been put together taking into account the recent management and staff restructuring exercise. Also, funds have been set aside for climate change and emergencies.

It was the intention to keep the Council’s balance sheet strong. The Council Tax increase for the coming year was currently anticipated to be 1.5%, half the rate of inflation.

Councillor Philip proposed a modification to recommendation 3 in the absence of the Business Services Portfolio Holder. This recommendation was for the Leader in consultation with this Portfolio Holder and the 151 officer. Should this be changed from the Business Services Portfolio Holder to someone else and it be reported back to Council and not to the Cabinet. It was agreed that this recommendation be altered to read:

“3. 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;”

He also noted that the wording should be changed so that the Cabinet not agree the Council Tax increase but recommend it to full Council. This was also agreed by the meeting.

Councillor Jon Whitehouse asked when would members get the final budget figures so that they had time to properly consider it before they made a decision at Council. He was told that the full papers would go out with the Council agenda by the end of next week. Councillor Whitehouse asked if in future years members could have the full papers at this Cabinet meeting and not at the last moment, he was told that yes, they would be available earlier.

Councillor Bassett asked about the Council’s loans and long-term assets (page 109 of the agenda) what happens to Qualis’ figures would they be reflected in here or would they be produced in a different way. He was told that Qualis was a separate legal entity and would account for things in its own way, separately from the Council and its account.

Councillor  ...  view the full minutes text for item 97