Issue - meetings

Medium Term Financial Plan 2019-22 and Annual Budget 2019/20

Meeting: 11/02/2019 - Cabinet (Item 9.)

9. Medium Term Financial Plan 2019-22 and Annual Budget 2019/20 pdf icon PDF 371 KB

To consider the report

Additional documents:

Decision:

DECISION

 

The Cabinet agreed all of the following recommendations and also recommended these recommendations to Full Council for approval to:

 

1.     Agree a gross revenue budget of £780.181m and a net revenue budget in 2019/20 of £327.967m

 

2.     Agree the application of up to £2.791m in 2019/20 of capital receipts to fund the revenue costs associated with reforming services, subject to further development and review of business cases.

 

3.     Delegate authority to the S151 Officer, in consultation with the Chief Executive and the Director for Corporate Affairs to review all business cases before agreeing to the use of capital receipts or the Invest to Save reserve.

 

4.     Agree the replenishment of depleted reserves as follows:

 

a.     Create Invest to Save earmarked reserve of £2.852m to ensure resources are available to support further service reform;

b.    Addition of £2.000m to the General Fund, from the base budget provision, to bring the balance up towards a reasonable level for a Council of this size, and;

c.     Contribute an additional £3.389m to repay the Buildings Maintenance Insurance Scheme (BMIS) and Repairs & Maintenance Fund deficit reserves as the schemes have now ended;

d.    Addition of £0.540m to the Insurance Fund to partially replenish the fund to enable it to support likely claims against the Council.

 

5.     Agree the actions required to manage the gap to be reduced to £15.112m in 2019/20:

 

·       the reversal of previously identified savings and technical adjustments totalling £18.154m as set out in paragraph 4.5 and Appendix A

·       approve the revised Minimum Revenue Provision (MRP) statement and policy (Appendix B), which delivers a saving in 2019/20 of £3.714m;

·       the reduction of the corporate contingency by £0.575m to £7.226m for 2019/20;

·       the use of the additional one-off Adult Social Care grant of £2.498m to meet the requirements set out by Government for this grant;

·       the use of the additional one-off Social Care grant of £4.267m for social care pressures, and;

·       approve the removal of the staff unpaid leave saving of £0.454m following rejection of the proposal by the Unions.

 

6.     Consider the proposed treatment of the minor funding changes following receipt of the Final Financial Settlement received on 29 January 2019 and the potential use of these additional resources as set out in Table 2 of this report.

 

7.     Agree the proposals for change (as set out in Appendices D and E1-E5 – subject to any amendments agreed by recommendation 6 above) necessary to set a balanced budget for 2019/20, totalling £8.512m, and delegated the implementation to the relevant director(s) following due process.

 

8.     Agree that due regards have been taken to any equalities implications identified and risk implications prior to any decision being taken in relation to the recommendations in this report, noting the initial equalities impacts as set out in Appendix C.

 

9.     Agree that the savings target relating to Waste Disposal costs (£225k) is endorsed to the Somerset Waste Board to consider agreeing to make savings to this value as part of setting its 2019/20 budget.  ...  view the full decision text for item 9.