Decision details

To consider the report of the Cabinet Member for Resources and Leisure seeking to set out the latest estimated overall financial position on the General Fund Revenue Budget for 2015/16 to 2017/18 and to outline the main issues that need to be addressed in considering the Cabinet’s Budget and Council Tax proposals to Council on 11 February 2015.

(a)  To note the position on the estimated outturn and revised budget for 2014/15 as set out in paragraphs 21 to 24 of the report.

(b)  To note the position on the forecast roll forward budget for 2015/16 as set out in paragraphs 34 to 77 of the report.

(c)  To note and approve the arrangements made by the Leader, in accordance with the Local Government Act 2000, for the Cabinet Member for Resources and Leisure to have responsibility for financial management and budgetary policies and strategies, and that the Cabinet Member for Resources and Leisure will, in accordance with the Budget & Policy Framework Rules as set out in the Council’s Constitution, be authorised to finalise the Executive’s proposals in respect of the Budget for 2015/16, in consultation with the Leader, for submission to Full Council on 11 February 2015.

(d)  To approve and recommend to Council where appropriate, the General Fund Revenue Budget changes as set out in Council recommendations i-xxiii set out below:

(i)  To note the budget consultation process that was followed as outlined in Appendix 1 and notes that this year’s process took into consideration feedback from last year on how to improve the process.

(ii)  To note that the consultation feedback has been taken into consideration by the Cabinet and has informed their final budget proposals.

(iii)  To note the Equality and Safety Impact Assessment process that was followed as set out in paragraphs 18 to 20 and the details contained in Appendix 2 which reflect the feedback received through the consultation process.

(iv)  To approve the revised estimate for 2014/15 as set out in Appendix 3.

(v)  To note the position on the forecast roll forward budget for 2015/16 as set out in paragraphs 34 to 77.

(vi)  To approve the revenue pressures and bids as set out in Appendix 4 and 5 respectively.

(vii)  To approve the revenue pressures and bids as set out in Appendix 4 and 5 respectively.

(viii)  To approve the General Fund Revenue Budget 2015/16 as set out in Appendix 7, which assumes a council tax increase of 1.99%.

(ix)  To delegate authority to the Chief Financial Officer (CFO) to action all budget changes arising from the approved pressures, bids, efficiencies, income and service reductions and incorporate any other approved amendments into the General Fund estimates.

(x)  To note that after taking these items into account, there is an estimated General Fund balance of £9.6M at the end of 2017/18 as detailed in paragraph 114.

(xi)  To delegate authority to the Chief Financial Officer, in consultation with the Head of Legal and Democratic Services, to do anything necessary to give effect to the recommendations in this report.

(xii)  To sets the Council Tax Requirement for 2015/16 at £77.27M.

(xiii)  To note the estimates of precepts on the Council Tax collection fund for 2015/16 as set out in Appendix 9.

(xiv)  To delegate authority to the Chief Financial Officer to implement any variation to the overall level of Council Tax arising from the final notification of the Hampshire Fire and Rescue Authority precept and the Police and Crime Commissioner for Hampshire precept.

(xv)  To note the Medium Term Financial Strategy as detailed in Appendix 10 including the Medium Term Financial Forecast in Annex A of this appendix.

(xvi)  To approve the Reserves Policy as set out in the Medium Term Financial Strategy at Appendix 10.

(xvii)  To approve the creation of a Medium Term Financial Risk Reserve with a contribution of £2.89M in 2015/16 and to delegate authority to draw on this reserve to the Chief Financial Officer and Chief Executive in consultation with the Cabinet Member for Resources as set out in paragraph 119.

(xviii)  To authorise the Chief Executive and Chief Officers to pursue the development of the options for efficiencies, income and service reductions as set out in Appendix 6b for the financial years 2016/17 and 2017/18 and continue to develop options to close the remaining projected gaps in those years.

(xix)  To approve entering in to an agreement with the Local Capital Finance Company and to approve a £20,000 investment in the Company in 2015/16 to enable SCC to have access to this competitive alternative borrowing source, as set out in paragraph 85.

(xx)  To approve entering into a Section 75 (S75) of the National Health Service Act 2006 Partnership Agreement pooled fund, noting the minimum statutory requirement to pool £15.325m revenue (SCC contribution £5.085M) and £1.526m (all SCC contribution) capital as detailed in paragraphs 124 to 128.

(xxi)  To note the actual S75 pooled fund to be set up will be an estimated £61M and approve a total SCC contribution of £5.3M revenue and £1.526M capital, from 1 April 2015.

(xxii)  To approve, in conjunction with recommendation xxiii, the addition of the remaining budgets included within the schemes as per the Better Care Plan, into the pooled fund as and when appropriate, bringing the total value to approximately £132M (SCC contribution of £51M).

(xxiii)  To delegate authority to the Director, People, following consultation with the lead CabinetMember for Health and Adult Social Care, the Chair of the Healthand Wellbeing Board and the Head of Legal and DemocraticServices, to (a) agree the terms and conditions of the pooled fundagreement under S75 of the National Health ServiceAct 2006 and (b) to carry out any ancillary actions needed to giveeffect to this recommendation.

The Constitution requires the Executive to recommend its budget proposals for the forthcoming year to Full Council.  The recommendations contained in this report set out the various elements of the budget that need to be considered and addressed by the Cabinet in preparing the final papers that will be forwarded to Council.

Alternative options for revenue spending form an integral part of the development of the overall Budget Strategy that will be considered at the budget setting meeting on 11February 2015.  Alternative options may be drawn up by opposition groups and presented to the same meeting.