Issue - meetings

To consider the report of the Chief Finance Officer.

The Executive received the report which proposed the General Fund revenue estimates for 2020/21 and to recommend the Band D level of Council Tax for 2020/21. The report also included the proposed Capital Programme for 2020/21 and future years and the proposals in respect of the Housing Revenue Account (HRA).

Councillor D. Moore, having given notice under Standing Order 44, spoke on this item. She enquired about the borrowing that would be on a full commercial rate and whether a best value benefit analysis had been undertaken for running contracts internally, rather than externally. She further commented on the extent of the identified structural problems at the Riverside Centre which required a further capital budget. Responses to questions contained within the statement would be emailed to Councillor D. Moore and were attached to the minutes.

Members were provided with a background on the budget, noting that the Government had been unable to complete the Fair Funding Review and provided a roll over settlement increase of 1.6%, which was in line with all other local authorities.

Particular reference was made to the £2.49 million New Homes Bonus payable in 2020/21, but would be a one year settlement only, and would be reduced to zero over the next three years. For the proposed Capital Programme, there would be £27 million allocated for the General Fund Capital Programme and £28 million to the Housing Revenue Account (HRA), of which £14 million would be used to make improvements to existing council stock and £14 million would be used for new Council houses.

The Council tax proposal was for a £160.05 for Band D properties in 2020/21, which equated to a £5 per year increase for residents.

It was highlighted that, although a balanced budget could be delivered this year, the Medium Term Financial Plan would require £3.7 million savings and that reductions would need to be made for the following years.

RECOMMENDED to Council that:-

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

(2)  the council tax for each Band be approved as set out in section 8.20.3 subject to Devon County Council, Police and Crime Commissioner Devon and Cornwall (OPCC 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 and Somerset Fire Authority are set then the revised council tax levels be submitted to Council on 25 February 2020 for approval; and

(4)  the Statement given by the Chief Finance Officer as required under Section 25 of the Local Government Act 2003 be approved.