To consider a report by County Councillor Aled Davies, Portfolio Holder for Finance.
Minutes:
Cabinet considered the budget for 2018 - 2019, the medium term financial strategy for 2018 – 2023 and the capital programme for 2018 – 2023 (copy filed with the signed minutes).
The Portfolio Holder for Finance advised that the proposal provided a balanced budget for 2018/19 and included further reductions in expenditure through efficiencies and some changes to service provision. He advised that there was a 0.4% decrease in the financial settlement from the Welsh Government from last year meaning a reduction in funding of £0.679m. Service and other pressures of £22.350m, together with the need for investment in Children’s and Adult Services had added to the financial challenge the Council faced. As a result, in addition to the significant savings originally identified within the existing MTFS, other sources of funding had been drawn upon to limit the impact on services in the short term. Some reserves would also be used and the Section 151 Officer advised that reserves were being kept at an appropriate level.
The second year of the plan represented a significant challenge for the Council. It was clear that the Council in its current form was no longer affordable and significant transformational change was required to deliver a council which could operate within the funding available to it. A fundamental review of how the Council delivered its services and what it could continue to deliver was underway and would be developed over the next six months in order to maintain a balanced budget for the remaining years of the plan. The Acting Chief Executive confirmed that Management Team had already started this work.
Cabinet welcomed the independent assessment of the proposed budget and the level of reserves carried out by CIPFA that had concluded there were appropriate procedures in place to set a robust budget and adequate reserves.
RECOMMENDED to Council: |
Reason for Recommendation: |
1. That the Medium Term Financial Strategy for 2018 to 2023 as set out in Appendix 1 to the report be agreed in principle. |
To aid business planning and development of the budget over a three year period |
2. That the proposed Revenue Budget for 2018/19 shown in the Financial Resource Model in Appendix 2 is accepted and recommended to full Council on the 22nd February 2018. |
Statutory Requirement |
3. That the Fees and Charges proposed within the Fees and Charges Register are accepted and recommended to Full Council on the 22nd February 2018. (Appendix 4 and 5) |
To comply with Powys County Council Income Policy |
4. The proposed Capital Strategy for 2018/19 shown in Appendix 6 is accepted and recommended to Full Council on 22nd February 2018. |
Statutory Requirement |
5. That a Council Tax increase of 5% is included in the budget that goes to full council on the 22th February 2018. |
There is a Statutory Requirement to set Council Tax but the level is a matter for local determination. |
6. The authorised borrowing limit for 2018/19 as required under section 3(1) of the Local Government Act 2003 be approved at £400.0m as set out in section 10 of the report. |
Statutory Requirement |
7. The Prudential Indicators for 2018/19 are approved as set out in section 10 of the report and Appendix 7. |
Statutory Requirement |
8. That revised Medium Term Financial Strategy is brought forward by the end of May 2018. |
To ensure the Council operates within its means in future years. |
Supporting documents: