Agenda item

Medium Term Financial Plan (MTFP) - Key Decision

Report of the Deputy Leader/Portfolio Holder for Finance, Resources and Commercial Services

Minutes:

This decision is not subject to call in as Councillor Brian Parbutt, Chair of the Overview and Scrutiny Committee, has agreed that the decision is reasonable in all circumstances and should be treated as a matter of urgency as the Council’s budget has to be approved at Full Council meeting on 4 March 2019 and the report despatch date is before call in period has ended.

 

The Board considered the report of the Portfolio Holder for Finance, Resources and Commercial Services presenting the Council’s Medium Term Financial plan comprising of the revenue and capital programme for both the General Fund and Housing Revenue Account.

 

RESOLVED:

 

(1)  In relation to the 2018/19 Forecast Outturn (at appendix 1)

(a)  To note the current forecast outturn for the 2018/19 General Fund and HRA revenue budgets and capital programmes.

(b)  To endorse the allocations from Contingency as set out in Table 3.

(c)  To approve the budget virements and reserve movements set out in and Appendices B and C.

 

(2)  in relation to the Medium Term Financial Plan 2019/20 – 2021/22 Revenue Element (at appendix 2)

(a)  Tonote:

  i.  The General Fund revenue aspects oftheMTFP.

(b)  Tonote, endorse and release:

  i.  proposalstotalling£15.901mas setout inTables9 anddetailed within AppendicesAofthe report forformalpublicconsultation

(c)  To note, endorseand recommend to CityCouncil:

  i.  The General Fund net budget requirementfor 2019/20of£239.785mincluding thenet movementin earmarked reserves as set out inTable5

  ii.  A basicamount of CouncilTaxlevel (Band D)of£1,738.93that will raise a total of £116.101m (a basicincrease of2.99%, no increaseforAdult Social Care Precept)

  iii.  Delegated authorityto the appropriateDirector to implementall proposals after undertakingnecessaryconsultation

 

(3)  In relation to the Medium Term Financial Plan 2019/20 – 2023/14 Capital Programme Element (in appendix 3) Executive Board to note, endorse and recommend to CityCouncil:

  (a)  TheCapital Programme as detailed in AppendixD

  (b)  Theadditional keyprinciplefor the governance andmanagement of the capital programme as setout inSection 5and Section 8

  (c)  Theextensionoftherollingprogrammesasset out in revisedGeneral Fund Capital ProgrammeTable 3

  (d)  The revisedLocalTransport Programme as set out inAppendix C

 

(4)  In relation to the Medium Term Financial Plan 2019/20 – 2021/22 Housing Revenue Account (appendix 4)

(a)  To note the following changes that impact on the HRA’s financial sustainability include:

  i.  Reduction of social housing rents by 1%

  ii.  Stock reduction resulting from Right to Buy and the increase through new build and acquisition

  iii.  Roll out of Universal Credit from October 2018

(b)  To approve the:

  i.  Proposed rent decrease of 1.0% for 2019/20

  ii.  Continuation of the tenant incentive scheme of up to £100 per annum

  iii.  Introduction of a 10% administration charge for selected service charges

  iv.  A proposed increase in general services charges of 2.4%

  v.  Proposed increase to estate & block maintenance service charges £0.68/week

  vi.  A working balance of £7.727m to provide for the effects of Universal Credit

  vii.  Delegation of authority to Nottingham City Homes (NCH) to award capital contracts up to the value of the scheme/programme as set out in Appendix B of Annex 4 of the report

(c)   To note, endorse and recommend to City Council the 2019/20 HRA budget

 

(5)  In relation to the robustness of the budget (in appendix 5) to note and endorse the recommendations of the Chief Finance Officer in respect of the robustness of the estimates within the budget and the adequacy of reserves;

 

(6)  In relation to the Budget Consultation 2019/20 (in appendix 6) to note the outcomes of the budget consultation and communication; and

 

(7)  To delegate authority to the Director of Strategic Finance, in consultation with the Deputy Leader, to finalise the MTFP for publication following approval of the relevant elements of the budget by City Council.

 

Reasons for Decision

This reportpresents and seeks endorsementfor the MTFP to enable Executive Board to approveHRA elements of thereportandmake recommendationsto CityCouncil for considerationon 4 March2019when theymeet to setthebudget and counciltax for 2019/20.

 

Other Options Considered

Throughout the budget process, a large number of individual cost reduction,

income and investment options are considered. These in turn impact on the

level of reserves. This is a complex process with many iterations and

possibilities too numerous to present as discrete options. This report presents

the final overall package of detailed proposals which together seek to balance

levels of investment, cost reduction and an appropriate level of income.

 

 

 

Supporting documents: