budget and council tax consultation 2010/11

BUDGET AND COUNCIL TAX CONSULTATION 2010/11

Chairman - Councillor Peter Halliday (Finance Portfolio Holder)

Presented by - Richard Barrett (Deputy Head of FinancialServices)

In Attendance: Councillor Neil Stock (Executive Leader) John Hawkins (Chief Executive) Karen Neath (Head of Financial Services)

Audience Representatives of Business Rate Payers Community and Voluntary Groups

PURPOSE OF MEETING

Present initial budget proposals for

discussion / consultation with outcomes

forming part of Cabinet’s consideration of

their final budget proposals to full

Council in February

Presentation Outline

Quick Look Back to Last Year

Context and Approach to Setting the 2010/11 Budget

Revenue Budget Summary 2010/11 and Key Changes

Capital Programme Summary 2010/11 and Key

Changes

Approach to 2011/12 and beyond

Financial Strategy and Budgets

Financial risk based approach including cost pressures and addressing other upcoming financial challenges

Government continued with Council Tax ‘capping’ powers

4.0% Council Tax increase for Tendring District Council

2nd Lowest Council Tax in Essex (including parish precepts)

Budget included in excess of £1m of one-off funding / investment in the district

Quick look back to 2009/10

Quick look back to 2009/10Revenue Expenditure (incl. Housing & Parish Precepts)

£101.459mGeneral Fund Revenue Expenditure £88.466mCapital Expenditure £7.363mBudget Requirement £21.613mBudget Requirement met by Council Tax £7.622m

BAND D INCREASE OFTENDRING DISTRICT COUNCIL £149.88 4.0% PARISHES £27.22 -1.4% ESSEX COUNTY COUNCIL £1066.50 1.9%FIRE AUTHORITY £64.62 3.8%POLICE AUTHORITY £128.25 4.9%

TOTAL AVERAGE COUNCIL TAX £1,436.47 2.4% inc

Last Years Budget Consultation – Update on some key points raised

“With regard to Jaywick things seem to be stagnant. When will action be taken? When will the residents in Jaywick be made aware of what is going on?”

- Establishment of Jaywick Strategic Leadership Group- 15 year regeneration plan / working with the Community- Determined to deliver improvements in the short term

“Sea defences are important for the future. In the long term how do we ensure financially that we don’t let the issues slip? How do we focus the funding we do have?”

- All opportunities to ‘lobby’ government for additional funding for all areas of the Tendring coast are identified and pursued whenever possible.

- Significant grant funded work for various seafront areas included in the capital programme in 2009/10 and 2010/11

- TDC successful in obtaining coastal pathfinder funding to explore new approaches to plan for and manage adaptation to coastal change in partnership with their communities


“How much of the small schemes budget has been spent by Members?”- £0.055m in 2008/09- £0.077m to date in 2009/10- Full details published on the Council’s website

“LABGI is changing in the forthcoming year. Does the Council have any figures and will this funding be directed towards economic projects?”

- TDC received £0.061m in 2009/10 to support the overall budget which includes investment in regeneration and economic development.

- No figures announced yet for 2010/11


“Up to now we have been eligible for business rates transitional relief. This is now ending and this will cause us severe problems.”

- Local Business Summit held- Prompt payment Code- Discretionary Rate Reliefs / Small Business Rate Relief

“There were not enough charity stands at the late night shopping event. These are being charged £100 at big events. I have also seen a stand selling guns and knives”

- Chamber of Commerce who organise the late night shopping event informed about issue regarding charity stands

- Trading Standards informed of issue regarding the selling of guns and knives

FINANCIAL STRATEGY OVERVIEW 2010/11

National issues impacting on Financial Strategy

Recession (National and Global Economies) Slow down in housing and property market Falling Interest Rates Volatility in income budgets Volatility in expenditure budgets such as

energy costs RPI / Contract Costs External Funding Streams Pressures from future Comprehensive spending

reviews / Government Financial Settlements


Local issues impacting on Financial Strategy

Low council tax base and wide service base over wide geographical area including coastal infrastructure

Cost pressures continually emerging and have been excluded in the past

Inflationary pressures New responsibilities / changing legislation Some of the most deprived wards in the

Country are within the district


Very challenging public sector financial environment in the next few years and beyond

Need to recognise the affect this will have on the Council’s finances and its ability to deliver services and take action in advance

Any additional resources set aside to support the budget in future years or where appropriate to support prioritised expenditure

Reviewing and challenging individual budgets to release resources where possible

BUDGET PROPOSALS 2010/11

£m

Base Budget

Removal of 2009/10 One-off Items

Inflation and Increments

21.613

(1.094)

0.200

Cost pressures included in the budget

Funding carried forward removed

0.389

1.481

Other budget adjustments

Budget Review Exercise

(0.324)

(0.341)

BUDGET REQUIREMENT 21.924

Budget Requirement met by: £m

Provisional Government Grant 14.199

Council Tax (assumed no increase) 7.645

Surplus on collection fund 0.080

TOTAL FUNDING 21.924



USE OF EARMARKED RESERVES TO SUPPORT BUDGET POSITION

Earmarked Reserves £0.015mCommitments Reserve £0.101mUncommitted Reserves £nilTOTAL £0.116m

____________________

March10 March11Est. Total Earmarked Reserves Remaining £3.065m £2.950mEst. Total Uncommitted Reserves Remaining £3.900m £3.900mTOTAL RESERVES £6.966m £6.850m


Key Items / Changes included in the Budget £m

Reduction in Interest Receivable 0.105

Reduction in Planning Income 0.065

Reduction in Building Control Income 0.074

NNDR 0.018

Second Homes Discount (Income from ECC) (0.045)

Car Park Income (0.085)

Service Improvement Budget 0.255


In November 2009 the Minister of State for Local Government confirmed the provisional grant settlements for 2010/11 for consultation. Final announcements are expected sometime in January

The Government are prepared to take capping action against excessive increases set by individual Authorities in 2010/11

The Government’s expectation is that Council Tax levels should be lower than the national average of 3% last year.

PROPOSED CAPITAL PROGRAMME 2010/11

2009/10 2010/11

£m £m

Housing Stock and Housing Grants 5.227 4.295

Non Housing 8.574 3.307

TOTAL 13.801 7.602

FUNDED BY

Borrowing 0.688 0.688

Government Grants 5.849 5.552

External Contributions 3.729 0.510

Capital Receipts 1.034 0.633

Revenue and Reserves 2.501 0.219

TOTAL 13.801 7.602

PROPOSED CAPITAL PROGRAMME 2010/11

Key Investments 10/11 £m

Coastal Pathfinder 0.633

Coast Protection 1.795

Regeneration – Clacton 0.150

Vehicle Replacement 0.360

RISKS AND RESERVES 2010/11

Risks within the strategy Unfunded / Emerging Cost Pressures Volatility in Income Inflation, interest and pay award New Responsibilities

Mitigate against these risks Sustainable Use of Reserves Alternative Responses

FINALISATION OF BUDGET PROCESS 2010/11

15 AND 18 JANUARY 2010 – REVIEW OF THE BUDGET BY CORPORATE MANAGEMENT COMMITTEE – Detailed budget proposals considered and comments fed back to Cabinet

3 FEBRUARY 2010 - CABINET CONSIDER AND RECOMMEND FINAL FINANCIAL STRATEGY AND BUDGET TO COUNCIL – Takes into account consideration of comments from Corporate Management Committee and from today’s meeting

18 FEBRUARY 2010 – COUNCIL CONSIDER FOR APPROVAL THE BUDGET PROPOSALS AND LEVEL OF COUNCIL TAX

FINANCIAL STRATEGY 2011/12 AND BEYOND

Revised Financial Strategy forecasts potential funding ‘gaps’ in the medium term of -

£1.304m for 2011/12 (assuming no increase in Government Grant)

£0.824m for 2012/13£0.795m for 2013/14£0.790m for 2014/15

Outlook for Public Sector Financial Environment and Settlement from the Government

There are unfunded cost pressures and additional cost pressures likely to emerge along with additional responsibilities that may be placed on the Council

Continuation of the Financial Strategy process – Priority and Risk Based Continually challenge and review what services we deliver and how we

deliver them Identify and maximise value for money opportunities

AND FINALLY…..

COMMENTS

AND

QUESTIONS

CONTACT DETAILS

Karen Neath Head of Financial Services

Email: [email protected]

Richard Barrett Deputy Head of Financial ServicesEmail: [email protected]

budget and council tax consultation 2010/11

Documents

council tax consultation

council tax7

overall budget

council tax increase

lowest council tax

parish precepts budget

final budget proposals

budgetrevenue budget