Agenda item
Draft Budget 2016-17
- Meeting of Environment Policy Development Group, Tuesday, 24th November, 2015 2.00 pm (Item 44.)
- View the background to item 44.
To receive a report from the Head of Finance to consider options available in order for the Council to set a balanced budget for 2016/17.
Minutes:
The Group had before it and NOTED a report * from the Head of Finance presenting options available for it to consider in order for the Council to set a balanced budget for 2016/17.
The Officer outlined the contents of the report stating that Service Managers had been tasked with producing savings and substantial savings had been found, however there was still a budget gap of £827k. It had been reported that the Treasury had reached agreement with four government departments, including the Department for Communities and Local Government, for an averageof 30% cut in government funding over the next four years. There was no question that the formula grant would be cut and it was now likely that the Revenue Support Grant of £1.7m would disappear entirely by 2019/20.
Consideration was given to the following table:
Reconciliation of Major 2016/17 Budget Variances
Variances |
Amount £000 |
External items outside of our control |
|
Reduced formula grant settlement |
597 |
Increased pension contributions - auto enrolment |
110 |
NIC rebate removed from contracted out pensions |
180 |
NNDR GP surgery appeals |
100 |
Pay award circa |
100 |
Falling commodity prices for recycling |
125 |
Subtotal |
1,212 |
Other changes |
|
Deficit on our 2015/16 budget taken from reserves |
187 |
Increase in sinking funds for asset replacement |
132 |
Increased interest payable |
78 |
Decrease in Collection Fund surplus |
32 |
Income from garden waste scheme |
(250) |
Increased leisure income |
(155) |
Increased income from investments |
(102) |
Contributions from town and parish councils |
(100) |
Increase Council tax income |
(95) |
Other net savings |
(112) |
Draft budget gap for 2016/17 |
827 |
Discussion took place regarding:
· Proposed capital spend for the Pannier Market, for which £400k had been set aside. The Officer explained that this would be subject to a robust business case being presented;
· The loss of income from the sale of recycling materials but an increase in tonnage and therefore an increase to income from Recycling Credits;
· Assumptions that had been made for areas such as Council Tax, salary increases and income from areas such as Leisure;
The Head of Finance explained that a further report would be presented in the new year.
Note: - * Report previously circulated and attached to Minutes.
Supporting documents:
- MTE PDG 2016-17 Budget Report, item 44. PDF 63 KB
- App 1 PDG GF Summary, item 44. PDF 8 KB
- App 2 PDG Cost Pressures For Cabinet, item 44. PDF 32 KB
- App 3 PDG Savings, item 44. PDF 41 KB
- APP 4 Transfers into Earmarked Reserves, item 44. PDF 41 KB
- App 5 Transfers from Earmarked Reserves, item 44. PDF 30 KB
- App 6 Analysis of Net direct Costs - Statutory Discretionary and Running Costs, item 44. PDF 27 KB
- Appendix 6a - Capital Programme 2016-17, item 44. PDF 88 KB
- MTE PDG Service Units - REVISED, item 44. PDF 37 KB