Agenda item

Report of the Deputy Chief Executive, this item will be discussed under the general exception clause.

The Cabinet were presented a report* which provided revised budgets for the General Fund and the Housing Revenue Account for the year 2023/24.

The Deputy Chief Executive explained that recommendations 7 and 8 were added as a revision to the budget following recommendations made by Full Council.

The following was considered:

• That the budget for open spaces increased by £145k. The Deputy Chief Executive explained that this was due to maintenance costs for those services.
• That the waste collection budget increased by nearly £249k. The Deputy Chief Executive explained this was due to the increase in the national living wage and that this service was hit hard by the increased cost of fuel and utilities. In addition income had decreased.
• Administration building had seen an increase of nearly £230k, but the building was not fully utilised. The Deputy Chief Executive explained that utility costs had increased and he commercial property rate value had changed. However, negotiations were underway with Devon Police to utilise part of the building.
• The increased budget for the 3 leisure centres. The Deputy Chief Executive explained that the increased national living wage and utility spend were contributing factors. In addition, this service had still not recovered to pre-pandemic levels.
• The paddling pools within Mid Devon District Council were raised, with potentially a need to review the funding options for the Paddling Pools within Mid Devon. The Deputy Chief Executive explained that the total costs for this service was circa £40k. In addition, it was felt that it was possible for the pools to be kept open.
• Corporate functions covered Mid Devon District Council’s technical teams such as performance management and data protection.
• Whether the savings outlined had been considered as deliverable and whether the increased costs were justified. The Leader explained, the increased costs were challenged and noted that officer advice was taken on the potential savings.
• 3 Rivers Developments Ltd was raised, the Corporate Manager for Finance and Procurement explained that the interest from 3 Rivers Developments Ltd had been removed from the revised budget and had been replaced with estimates from temporary treasury investments.
• Whether the use of reserves could be justified and if there was a plan to replenish the reserves. The Deputy Chief Executive explained that this had put the next administration into a difficult position and that this was the situation Mid Devon District Council was in, with an aim for reserved to be replenished. 
• Whether new homes bonus could be used as temporary funding, to which the Deputy Chief Executive explained that all new homes bonuses were already allocated and that there was a plan for it to be replenished.

RESOLVED to recommend to Full Council:

1.     A Council Tax Requirement of £6,724,350 calculated using a Council Tax of £225.40 for a Band D property, an increase of £6.56 or 2.99% from 2022/23 and a Tax Base of 29,832.98, in accordance with the Local Authorities (Calculation of Tax Base) Regulation 1992, as amended, after the relevant adjustments in respect of the Council tax support scheme approved by Cabinet on 3 January 2023;

2.     The overall budgeted Cost of Services within the General Fund of £16,830,364 for 2023/24 is approved as detailed across Appendices 1 – 2 and inclusive of the adjustments included within Table 1 in paragraph 5.1 of the Cabinet Report for 7 February 2023;

3.     The 2023/24 budget requires no transfer from the General Fund Balance and a further temporary transfer of £57,657 from the New Homes Bonus EMR in order to balance and agree all of the transfers to and from Earmarked Reserves as detailed in Appendix 3;

4.     HRA budget for 2023/24 be approved – Appendix 4;

5.     HRA fees/charges are approved based on the attached Appendix 5;

6.     Work on strategic planning for delivering a balanced budget for 2024/25 is commenced immediately. This work will need to include provision to replenish the General Fund Balance and re-examine the overarching level of Reserves that is required.

(Proposed by Cllr B G J Warren and seconded by Cllr A Wilce)

(Cllr D J Knowles abstained as he had left the room)

Additional recommendations arising from Full Council, 22 February 2023:

7.     Cabinet are asked to agree the inclusion within the budget the implications of the recommendations from Full Council as outlined in Section 2.1;

8.     Cabinet agree to temporarily reduce the minimum level of General Reserves by £610k from its existing level (c.£2.2m) in order to balance the 2023/24 Budget and agree to identify a plan to replenish back to the £2m recommended minimum balance, as referenced in Section 2.3.

(Proposed by Cllr B G J Warren and seconded by Cllr A Wilce)

A further recommendation made included:

9.     That a further temporary reduction of circa £15k be made to the general reserve whilst the proposal to mothball the paddling pools in Crediton and Tiverton is urgently reviewed to explore sourcing the necessary funding to keep these facilities available during the summer months, be that through finding room in existing budgets and/or town council support and/or business sponsorship.

(Proposed by Cllr Mrs N Woollatt and seconded by Cllr G Barnell)

Reason for Decision: As stated in the report

Note: *report previously circulated and attached to the minutes

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161.   Notification of Key Decisions

The Cabinet had before it, and NOTED, the notification of *Key Decisions

Note: *Key Decisions previously circulated and attached to the minutes </AI17>

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