Cabinet Member for Finance

Cabinet considered the report of the Head of Finance and the above Cabinet Member which set out the Council’s Medium Term Financial Plan and Revenue and Capital Budget proposals for 2015/16.

The Cabinet Member for Finance introduced the report and advised that the draft proposals had been considered by the Scrutiny Committee on 28 January 2015 and no recommendations had been made.

A Member referred to paragraph 3.15 and asked what the borrowing of up to £6m would be for; the nature of the borrowing – internal or external; and what was the business case and expected return?

The Cabinet Member for Finance advised that there was no detailed information available at the moment but the request was an increase, rather than an addition, to the £3m borrowing approved at Council in July 2014.

In response to a question regarding the budget increase to cover a full-time Regeneration Director post, the Chief Executive explained that this provided the Council with the flexibility to increase the post to a full-time position in the future.  If it was decided by Members that the budget was not required specifically for the Regeneration Director post it could be used flexibly to fund other staff to support regeneration projects.

The Leader explained that it was vital for the Council to find ways of maintaining a revenue stream due to the reduced revenue support grant received from central Government.

The Head of Finance drew Members’ attention to the comments submitted by Faversham Business Partnership (FBP) on the draft 2015/16 budget and Medium Term Financial Plan.  He advised that the Council was required to consult the business community on the draft budget proposals and this was the only response that had been received.  The Head of Finance advised that, with Members’ agreement, he would co-ordinate a response to FBP in consultation with the Cabinet Member for Finance and Council officers.  He confirmed that, in his opinion, there was nothing within the submission which required Cabinet to amend their budget proposals.

The Leader welcomed the feedback from FBP but expressed his disappointment that it had not been submitted in time to be considered as part of the budget setting process.

In response to questions from a Member, the Head of Commissioning and Customer Contact confirmed that the growth item in relation to electronic procurement systems was a combination of increased use of the Council’s procurement systems and payment for advertising on external systems; and the additional waste contract monitoring activity related to an additional officer post. 

With regard to the replacement of recycling credits with enabling payments from Kent County Council, the Head of Commissioning and Customer Contact undertook to provide a detailed response to the Member.

The Leader thanked the Cabinet Member for Finance, Head of Finance and Finance Team for their hard work in producing this report.

RECOMMENDED:

(1)  That the 2015/16 Revenue and Capital Budgets be approved.

(2)  That the proposed Council Tax at Band D for 2015/16 of £159.93 (zero increase) be approved.

(3)  That the Medium Term Financial Plan funding position be noted.

(4)  That the Capital Strategy be approved.

(5)  That the additional amount of Council Tax for Parish Precepts be noted.

(6)  That the Minimum Revenue Provision (MRP) Statement as set out in Appendix IX be approved.

(7)  That authority be delegated to the Head of Finance in consultation with the Leader and the Cabinet Members for Finance and Regeneration to approve an in-year change to the budget and policy framework to allow for funding to be provided for the investment up to a maximum borrowing of £6m.

(8)  That the comments from Faversham Business Partnership on the draft 2015/16 budget and Medium Term Financial Plan be noted.