The Head of Financial Services has submitted a report which presents the outcome of the budget consultation and seeks agreement of the Council’s Medium Term Financial Strategy for 2019-20 to 2021-22 and 2018-19 Budget for recommendation to Council.

Recommendations:

The City Executive Board is asked to consider the outcome of the public consultation, agree the amendments to the Consultation Budget and recommend that Council resolves to:

1)    Approve the 2018-19 General Fund and Housing Revenue Account budgets and the General Fund and Housing Revenue Account Medium Term Financial Plan as set out in Appendices 1-10, noting:

a)    the Council’s General Fund Budget Requirement of £23.369 million for 2018/19 and an increase in the Band D Council Tax of 2.99% or £8.67 per annum representing a Band D Council Tax of £298.86 per annum

b)    the Housing Revenue Account budget for 2018/19 of £43.241 million and a reduction of 1% (£0.85/wk) in social dwelling rents from April 2018 giving a revised weekly average social rent of £104.58 as set out in Appendix 4

c)     the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6

2)    Agree the fees and charges shown in Appendix 7

3)    Delegate authority to the Section 151 Officer in consultation with the Board Member for Finance and Assets the decision to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 12-14 below.

4)    Agree to increase the long term empty property premium from 50% to 100% at the earliest opportunity so as to encourage long term empty properties back into use.

The Head of Financial Services had submitted a report which presented the outcome of the budget consultation and seeks agreement of the Council’s Medium Term Financial Strategy for 2019-20 to 2021-22 and 2018-19 Budget for recommendation to Council.

Cllr Turner, Board Member for Finance and Asset Management recorded his thanks to the Head of Financial Services and colleagues for their work in preparing this report. While there were, evidently, still some financial challenges, the City’s overall financial position was enviable compared with many other authorities. There were many judgements and competing priorities to be balanced in coming to a view about where fees and charges should be increased and such decisions were never taken lightly.

He went on to note some of the key features of the  financial proposals. He drew particular attention to the Council’s work in addressing the needs of those who are homeless or rough sleepers. Progress  in relation to  this was not just  a function of the significant financial resource directed towards it but also of  the Council having acted as a lead agency, pulling together other partners and providers to address the issue.

The Head of Financial Services reaffirmed the Board Member’s positive reflection of the overall financial position but noted that an careful eye was being kept on potential future risks and challenges such as anticipated changes to the Business Rate Retention arrangments (100 – 75%) and the much delayed Fair Funding Review.

Cllr Turner noted that since the report had been written it had become apparent that the amount of Housing Benefit Administration Grant for 2018/19 was greater than anticipated to the tune of £193k. He therefore proposed an additional recommendation to the Board, that it should recommend to Council that the  additional award of Housing Benefit and Council Tax Reduction Scheme Administration Grant  of £193k  for 2018/19 is allocated as follows :

      i.        Additional one off resources on the Housing Benefit Service  - £100k

    ii.        Homelessness reserve - £93 k

The City Executive Board resolved to:

1)    Approve the 2018-19 General Fund and Housing Revenue Account budgets and the General Fund and Housing Revenue Account Medium Term Financial Plan as set out in Appendices 1-10, noting:

a)    the Council’s General Fund Budget Requirement of £23.369 million for 2018/19 and an increase in the Band D Council Tax of 2.99% or £8.67 per annum representing a Band D Council Tax of £298.86 per annum

b)    the Housing Revenue Account budget for 2018/19 of £43.241 million and a reduction of 1% (£0.85/wk) in social dwelling rents from April 2018 giving a revised weekly average social rent of £104.58 as set out in Appendix 4

c)    the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6

2)    Agree the fees and charges shown in Appendix 7

3)    Delegate authority to the Section 151 Officer in consultation with the Board Member for Finance and Assets the decision to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 12-14 below.

4)    Agree to increase the long term empty property premium from 50% to 100% at the earliest opportunity so as to encourage long term empty properties back into use.

5)    Recommend to Council that the  additional award of Housing Benefit and Council Tax Reduction Scheme Administration Grant  of £193k  for 2018/19 is allocated as follows :

              i.        Additional one off resources on the Housing Benefit Service  - £100k

            ii.        Homelessness reserve - £93 k

6)    Recommend Council to accept the budget for 2018-19