Issue - meetings

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report proposing the General Fund revenue estimates for 2019/20 and to recommend the Band D level of Council Tax for 2019/20. The report also included the proposed Capital Programme for 2019/20 and future years, and the proposals in respect of the Housing Revenue Account (HRA).

The proposed capital programme for 2019/2020 presented the General Fund with a £37.8 million spend and the HRA with a spend of £20.6 million, which included £9.2 million to build new council homes in the city. This was the final year of the HRA one percentage rent reduction and whilst the income would be lower there would only be a small reduction in the HRA working balance.

In regards to the General Fund, attention was drawn to appendix two and the reduction in the core spending power which had reduced since 2016/17 by 15.2 % which equated to £2.3 million. There was a £2.2 million in savings and additional income proposed in the revenue estimates. The recommendation to Council on 26 February 2019 was for a proposal for an increase in £5 for a band D property, this was the maximum allowed without having to hold a referendum. Council would also be asked to approve the Council Tax for Devon County Council, Devon and Cornwall Police and Crime Commissioner and the Devon and Somerset Fire Authority. The Devon and Cornwall Police and Crime Commissioner had set an increase at the maximum, without holding a referendum of £24 per band D property, the other two authorities had not yet met.

Members were reminded that they had a legal obligation to set a balanced budget at Council and that any savings or additional income removed would require alternative ways of meeting those savings or generating income.

The Leader commented that Exeter had had the highest cuts of all the district authorities in Devon with regards to its core spending power. He proposed an additional recommendation that the Council write to its MP’s to ask why Exeter had had the biggest cut in core spending power when given most growth to the region.

The Portfolio Holder for Health and Wellbeing, Communities and Sport highlighted the £9.2 million the Council planned to spend on building new council houses, the £7.9 million of government grant that the Council had lost in the last four year period and the reduction in New Homes Bonus. The Council would need to make considerable changes going forward to address its funding shortfall.

RECOMMENDED to Council:-

(1)        the overall spending proposals in respect of both its revenue and capital budgets are recommended to Council be approved;

(2)        the council tax for each Band be approved as set out in section 8.19.3 subject to Devon County Council, Devon and Cornwall Police, Crime Commissioner Devon and Cornwall and the Devon and Somerset Fire Authority confirming their Band D levels respectively;

(3)        when the actual council tax amounts for Devon County Council, Devon and Cornwall Police and Crime Commissioner and the Devon  ...  view the full minutes text for item 17

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report, which sought approval of the Capital Strategy and General Fund and Housing Revenue Account Capital Programmes for 2019/20 and the schemes identified for the following two years.

He provided an overview of the recommendations which required the Council to prepare a three year capital expenditure plan and consider the affordability of its capital investment during all of the year, in which, it would have a financial impact on the authority.  The Council should ensure that any borrowing decisions remained affordable, prudent and sustainable and he referred to the adoption of a number of prudential indicators to ensure that remained the case. He referred to the appendices circulated with the report which provided an overview of the General Fund available resources, HRA available resources, the General Fund Capital Programme, the Housing Capital Programme and the Capital Strategy. Members were informed of the new capital bids of £3,284,920m and pre-approved schemes of £36,413,870m for 2019/20, the bulk of which was allocated to the Leisure Complex build project.  He also referred to a request being made through Place Scrutiny Committee for two additional bids, the final detail of which would be included in the report to the Executive.

Members were also updated on the Housing Revenue Account (HRA) for 2019/20. The HRA medium term financial plan provided for a Capital Programme of £20.591m, which would be comprised of £11.389m for improvements to the Council’s existing housing stock, and £9.202m towards the provision of new homes. The proposed Capital Strategy was included as an appendix to the report and this set out in detail the Council’s purpose, aims and the approach to capital investment. 

Corporate Services Scrutiny Committee noted the Capital Programme 2019/20 – 2021/22 report and requested Executive and Council to note, and approve:-

(1)  the General Fund Capital Programme for 2019/20 as set out in Appendix 3;

(2)  the HRA Capital Programme for 2019/20 as set out in Appendix 4; and

(3)  the Capital Strategy as set out in Appendix 5.