Issue - meetings

This report updates the financial forecast and recommends financial targets for preparing the draft budget for 2018/19 and financial planning for 2019/20 & 2020/21 as recommended by the Financial Policy Panel.

The Committee:

(1)          Received the Minutes of the Meeting of the Financial Policy Panel held on 12 September 2017;

(2)          Agreed the following overall revenue budget target for 2018/19:

a)            the preparation of estimates including options to reduce organisational costs by £588,000, 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)            the generation of at least £200,000 additional revenue from an increase in discretionary fees and charges, based on minimum overall increase in yield of 3%;

c)            the provision of £228,000 for the pay award, representing an increase to the staffing budget of 1.5%.

(3)          That further savings and efficiencies be identified to address the budget shortfalls of £90,000 in 2018/19, £577,000 in 2019/20 and £791,000 in 2020/21;

(4)          Noted that the Capital Member Group would limit schemes included within the capital expenditure programme to enable the retention of agreed minimum level of capital reserves.

The Committee received and considered a report that updated the financial forecast and recommended financial targets for preparing the draft budget for 2018/19 and financial planning for 2019/20 and 20/21.

The report highlighted that, at its meeting on 12 September 2017, the Financial Policy Panel had received a detailed financial analysis, including forecasts on the current budget position and of the Council’s financial position for the next four years.  The Panel had made recommendations to this Committee on budget targets for 2018/19 accordingly.

Based on the assumptions used, the forecast identified that cost reductions were required in the region of £90,000 in 2018/19 and £1.458 million in total over the next three financial years.

The budget strategy involved continuing to deliver efficiency savings and generating extra service income whilst reviewing service levels so that service costs could be reduced as needed to achieve a balanced budget year on year.

The budget preparation process was ongoing with the policy committees being asked to provide any guidance on the preparation of detailed service estimates in the October/November committee cycle, including any service reviews.

The Chairman of this Committee, (also Chairman of the Financial Policy Panel), pointed out that under his chairmanship the Capital Member Group would not “seek to limit” but, so far as it was within its control to do so, would limit the number of schemes included within the capital expenditure programme to enable retention of the agreed minimum level of capital reserves.

Accordingly, the Committee:

(1)          Received the Minutes of the Meeting of the Financial Policy Panel held on 12 September 2017;

(2)          Agreed the following overall revenue budget target for 2018/19:

a)            the preparation of estimates including options to reduce organisational costs by £588,000, 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)            the generation of at least £200,000 additional revenue from an increase in discretionary fees and charges, based on minimum overall increase in yield of 3%;

c)            the provision of £228,000 for the pay award, representing an increase to the staffing budget of 1.5%.

(3)          That further savings and efficiencies be identified to address the budget shortfalls of £90,000 in 2018/19, £577,000 in 2019/20 and £791,000 in 2020/21;

(4)          Noted that the Capital Member Group would limit schemes included within the capital expenditure programme to enable the retention of agreed minimum level of capital reserves.