Agenda item

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on the write the report and which do not contain exempt information)

Contact Officer, telephone number and email:

Lucy Hume, 01263 516246, lucy.hume@north-norfolk.gov.uk

RESOLVED

That Cabinet agree and where necessary recommend to Full Council:

1) The 2021/22 revenue budget as outlined at appendix A1;

2) The demand on the Collection Fund for 2021/22, subject to any amendments as a result of final precepts still to be received be: a. £6,456,213 for District purposes b. £2,529,011 (subject to confirmation of the final precepts) for Parish/Town Precepts; 3) The statement of and movement on the reserves as detailed at appendix D;

4) The updated Capital Programme and financing for 2021/22 to 2023/24 as detailed at appendix C1;

5) The capital bids contained within Appendix C2;

6) That the Council adopts the changes to the LCTS scheme as detailed in section 5.3, subject to the outcome of the public consultation;

7) That the balance on the Property Investment Fund of £999,476 be transferred to the new Earmarked Reserve – the Major Repairs Reserve

8) That Members note the current financial projections for the period to 2024/25;

9) That Full Council approve the Medium Term Financial Strategy

Reasons for Recommentations:

To recommend a balanced budget for 2021/22 for approval by Full Council.

Cllr E Seward introduced the report and informed Members that they were asked to agree to recommend to Council the budget for 2021-22 and the Medium Term Financial Strategy for 2022-25. He added that the budget had been prepared under challenging circumstances as a result of Covid-19, and at present, the levels of future Government support to mitigate this impact remained unknown. It was stated that the budget presented for 2021-22 was balanced and that it maintained existing services without cuts, or the use of reserves to plug deficits. Cllr E Seward noted that the Council was not increasing charges where possible, and that the programme to improve facilities would continue, with the expected opening of the new Sheringham Leisure Centre in August, the refurbishment of widely used toilets, and the continuation of the tree planting programme. It was noted that this was being done with less than a £5 rise in Council Tax for most residents, and that it was the expectation of Central Government that all local authorities would increase taxes to offset future deficits. Cllr E Seward noted that deficits had been forecasted for future years, and that these were largely the result of uncertainty around funding support. He added that as a financially prudent authority, the Council had to plan for a continued reduction in Government support, and therefore proposals on how to address this were included. Cllr E Seward stated that he did not expect the funding reductions to be as significant as forecasted, but the Council had to have contingency plans in place. He added that as the billing authority, it was likely that the average band D property would see an annual Council Tax increase of approximately £70, though 90% of this was for other Councils, including the police authority. It was noted that the budget would go to Council on the 24^th February for final approval, and could be subject to change prior to that date.

Questions and Discussion

   i.          Cllr J Rest referred to appendix A1 and asked whether there was an income figure available for the solar panel FIT payments. The CTA replied that this appendix showed the main variances only, and as the last figure for FIT payments was approximately £10k, it would not be included in this section of the report, but could be found within the Property Services budget.

  ii.          Cllr N Dixon noted that the Overview and Scrutiny Committee had already seen the budget and submitted recommendations, though it was yet to see a full MTFS, which was expected at the February meeting. He then referred to the recommendations on page 19, and noted that whilst the report suggested inclusion of the MTFS, he did not see a recommendation relating to approval of this. It was suggested that an additional recommendation could be included to recommend approval of the MTFS to Full Council.

iii.          Cllr N Dixon referred to page 21, and noted that within the executive summary, reference was made to information that did not appear to be included in the report. The CTA replied that this information could be found in table 1 in section 5.1 of the report. It was noted that the table provided updated figures for the budget, whereas future years were covered in appendix A. Cllr N Dixon noted that he saw predictions and forecasts, but did not see an identifiable strategy. The CTA replied that due to the impact and financial pressures of Covid-19, whilst there was usually a separate MTFS report presented in the autumn, a decision had been taken to merge it with the budget report. She added that many Councils took this approach, and noted that the reports were reasonably similar, as the budget provided an update of figures from the previous year’s MTFS, as shown in section 9 in conjunction with appendix E. Cllr N Dixon stated that whilst he saw projections and forecasts, he could not see a strategy identified to mitigate future forecasted deficits. Cllr E Seward stated that the Council would be required to set a balanced budget for 2022, and as a result would be proposing savings plan to achieve this, including the use of zero base budgeting, and asking each department to consider the impact of a 10% reduction in service budgets. He added that the main concern, was the uncertainty that remained around future levels of Government support.

iv.          Cllr J Toye referred to comments on the solar panel FIT payments, and said that it was important to remember that the Council’s electricity use would have fallen significantly as a result of Covid-19, and the subsequent savings should be taken into account, if not already identified.

 v.          Cllr C Cushing referred to page 76 and noted that the internal and external borrowing figures were difficult to differentiate, and asked for clarification of the external borrowing figures. Cllr E Seward replied that the external borrowing related to the Sheringham Leisure Centre project and the purchase of new waste collection vehicles. The CTA stated that the internal and external borrowing was not fully separated to allow the Council extra flexibility with its borrowing. She added that if required, she could provide a full breakdown of the external borrowing figures. Cllr C Cushing said that he assumed that external borrowing would be more expensive, then referred to comments in the report suggesting the Council could use private finance initiatives, and asked how this would fit into financial strategy. It was noted that the question referred to the next agenda item and would be answered at the appropriate time.

vi.          It was confirmed, following a point raised by Cllr N Dixon that the Council Tax projections for the next four years would be amended to reflect the correct years.

vii.          The recommendations were proposed by Cllr E Seward and seconded by Cllr L Shires with an additional recommendation for Council to approve the MTFS.

RESOLVED

That Cabinet agree and where necessary recommend to Full Council:

1.     The 2021/22 revenue budget as outlined at appendix A1;

2.     The demand on the Collection Fund for 2021/22, subject to any amendments as a result of final precepts still to be received be: a. £6,456,213 for District purposes b. £2,529,011 (subject to confirmation of the final precepts) for Parish/Town Precepts;

3.     The statement of and movement on the reserves as detailed at appendix D;

4.     The updated Capital Programme and financing for 2021/22 to 2023/24 as detailed at appendix C1;

5.     The capital bids contained within Appendix C2;

6.     That the Council adopts the changes to the LCTS scheme as detailed in section 5.3, subject to the outcome of the public consultation;

7.     That the balance on the Property Investment Fund of £999,476 be transferred to the new Earmarked Reserve – the Major Repairs Reserve

8.     That Members note the current financial projections for the period to 2024/25;

9.     That Full Council approve the Medium Term Financial Strategy.