Issue - meetings

Budget Targets 2020/21

Meeting: 24/09/2019 - Strategy and Resources Committee (Item 23)

23 Budget Targets 2020/21 pdf icon PDF 64 KB

This report recommends budget targets for 2020/21 and provides an update on financial planning for 2021/22 to 2023/24 as recommended by Financial Policy Panel.

 

Additional documents:

Decision:

The Committee:

(1)            Noted the recommendations of Financial Policy Panel held on 10 September 2019.

(2)            Agreed the following overall budget targets for 2020/21:-

a)              estimates are prepared including options to reduce organisational costs by £544,000 in 2020/21 subject to government grant announcement, to minimise the use of working balances and maintain a minimum working balance of £2.5 million in accordance with the medium term financial strategy;

b)              that at least £290,000 additional revenue is generated from an increase in discretionary fees and charges, based on a minimum overall increase in yield of 3.0%, with the exception of car parking which is set at 6.0% as these charges are adjusted every two years;

c)               that a provision for pay award is made of £400,000 that allows for a 2% cost of living increase;

(3)            Agreed that further savings are identified for inclusion within the new Medium Term Financial Strategy for 2020-2024 to reduce the Council’s net operating costs by a minimum of £1,825,000 over the period 2020/21 to 2023/24;

(4)            That Capital Member Group seeks to maintain a minimum capital expenditure programme to control the use of capital reserves between 2020 and 2024, subject to an appropriate prioritisation of spend to save and externally funded schemes.

Minutes:

This report detailed proposed budget targets for 2020/21 and provided an update on financial planning for 2021/22 to 2023/24 as recommended by the Financial Policy Panel on 10 September 2019.

It was recognised that in order to achieve the forecasted savings there would a reduction in operational costs and Officers were encouraged to exercise caution and carefully monitor the head count to ensure that resources were sufficient to achieve the Council’s aspirations.

Having considered the budget targets, the Committee:

(1)            Noted the recommendations of Financial Policy Panel held on 10 September 2019.

(2)            Agreed the following overall budget targets for 2020/21:-

a)              estimates are prepared including options to reduce organisational costs by £544,000 in 2020/21 subject to government grant announcement, to minimise the use of working balances and maintain a minimum working balance of £2.5 million in accordance with the medium term financial strategy;

b)              that at least £290,000 additional revenue is generated from an increase in discretionary fees and charges, based on a minimum overall increase in yield of 3.0%, with the exception of car parking which is set at 6.0% as these charges are adjusted every two years;

c)               that a provision for pay award is made of £400,000 that allows for a 2% cost of living increase;

(3)            Agreed that further savings are identified for inclusion within the new Medium Term Financial Strategy for 2020-2024 to reduce the Council’s net operating costs by a minimum of £1,825,000 over the period 2020/21 to 2023/24;

(4)            That Capital Member Group seeks to maintain a minimum capital expenditure programme to control the use of capital reserves between 2020 and 2024, subject to an appropriate prioritisation of spend to save and externally funded schemes.