Agenda item

2022/23 Budget Report

Meeting of District Executive, Thursday 17th February 2022 9.30 am (Item 150.)

Decision:

RESOLVED:	That District Executive recommends that Full Council approves:- Increases to the revenue and capital budgets
	a.	revenue budget increases of £2.108m as set out in the Budget Report in Table Five.
	b.	new capital projects and increases on existing approved capital budgets of £21.521m as set out in the Budget Report in Table Twelve.
	c.	the creation of a corporate capital contingency within the capital programme, included within the increase reported above in (b), of £4m to be allocated by District Executive on approved projects within the capital programme via a written report from the relevant senior officer.
	Use of reserves
	d.	the use of £6.144m earmarked reserves to fund the revenue and capital budgets as described in the Budget Report in Section Five.
	e.	an increase of £1m to the LGR Reserve, funded from the MTFP Support Fund reserve, to finance potential capacity issues as described in a separate report on this District Executive’s agenda entitled “Ensuring sufficient staffing capacity during 2022/23”.
	f.	transfer £0.350m from the MTFP Support Fund to the Treasury Management Reserve to support the funding of any increase in interest rates in 2022/23 should they rise above the rates assumed in this Budget Report.
	g.	create a reserve in 2023/24 of £4.8m for the Yeovil Refresh capital project, funded from the MTFP Support Fund reserve, should there be a requirement in that year to pay back the money received to-date from the Future High Streets Fund (FHSF).
	h.	transfer £2m from the Commercial Investments Risk Reserve to the MTFP Support Fund reserve to assist the 2023/24 position of the new Somerset Council in order to help fund potentially adverse local government finance reforms and the Yeovil Refresh reserve (see recommendation g above).
	2022/23 Revenue Budget
	i.	SSDC’s revenue budget requirement (Net Budget) of £19,714,320 for 2022/23 as set out in Table One of the Budget Report.
	2021/22 to 2023/24 Capital Programme
	j.	SSDC’s capital programme for 2021/22 to 2023/24 of £116.469m as set out in Table Eleven in the Budget Report and the consequential increase in SSDC’s financing charges revenue budget of circa £1.272m per annum.
	Council Tax
	k.	an assumption that there will be an increase in the 2022/23 Band D Council Tax of 2.82% representing a Band D Council Tax (excluding preceptors) of £182.11.
	Chief Finance Officer’s Statement
	l.	note the advice given by the statutory S151 Officer on the robustness of the estimates, the adequacy of reserves, and the key financial risks arising from these budget proposals.
	Treasury Management Strategy
	m	the 2022/23 Investment and Treasury Management Strategy.
	n.	the proposed borrowing and investment limits included in the Treasury Management Strategy.
	o.	the prudential and investment indicators.
	p.	the Minimum Revenue Provision (MRP) Policy statement.
	District Executive is also recommended to propose that the Assets and Finance Protocol, as agreed by LGR Joint Committee on 4th February 2022, is approved and adopted by Full Council.
Reason:	To propose to Full Council on 28th February on the 2022/23 the revenue and capital budgets and the 2022/23 Treasury Management Strategy.

Minutes:

The Portfolio Holder for Finance and Legal Services introduced the report and advised it was the final budget to be proposed to SSDC for confirmation by Council. He noted that:-

· The Audit Committee had recommended that on page 164 of the report in Table 22, the 2022/23 approved limit for joint operations was £40m not £35m. This would be corrected in the Council report.

· The £53,960 funding agreed earlier in the meeting for decarbonisation was already included within the budget.

· Some risk capital was within the individual programmes, however, an additional £4m was proposed to create a corporate capital contingency to deal with largest excursion across all programme

· There was also £4.8M held in reserve in case the Future High Streets funding had to be repaid.

The Portfolio Holder concluded by drawing Members attention to the equalities assessment, the statutory advice of the Section 151 Officer and the protocol agreed at the LGR Joint Committee to agree the Assets and Finance Protocol. He thanked the Chief Finance Officer and her staff for a comprehensive single report and proposed the recommendations.

The Chief Finance Officer thanked her SLT colleagues and her finance team for their work to ensure the budgets were in place. She noted that there were some concerns which were set out in the report together with proposals to mitigate them.

The Chairman of the Scrutiny Committee advised they had spent some time discussing the report and had raised a number of questions which had been answered by the Chief Finance Officer at their meeting.

The Director for Place and Recovery noted that the Finance and Assets Protocol was being entered into voluntarily by the 5 Somerset Councils but it was expected to be followed by a Section 24 Notice from the Government which would guide how the Councils spent their capital and revenue. She confirmed that the Protocol was being proposed to all Councils in Somerset.

At the conclusion of the debate, Members were content to propose the recommendations to Council for confirmation.

RESOLVED:	That District Executive recommends that Full Council approves:- Increases to the revenue and capital budgets
	a.	revenue budget increases of £2.108m as set out in the Budget Report in Table Five.
	b.	new capital projects and increases on existing approved capital budgets of £21.521m as set out in the Budget Report in Table Twelve.
	c.	the creation of a corporate capital contingency within the capital programme, included within the increase reported above in (b), of £4m to be allocated by District Executive on approved projects within the capital programme via a written report from the relevant senior officer.
	Use of reserves
	d.	the use of £6.144m earmarked reserves to fund the revenue and capital budgets as described in the Budget Report in Section Five.
	e.	an increase of £1m to the LGR Reserve, funded from the MTFP Support Fund reserve, to finance potential capacity issues as described in a separate report on this District Executive’s agenda entitled “Ensuring sufficient staffing capacity during 2022/23”.
	f.	transfer £0.350m from the MTFP Support Fund to the Treasury Management Reserve to support the funding of any increase in interest rates in 2022/23 should they rise above the rates assumed in this Budget Report.
	g.	create a reserve in 2023/24 of £4.8m for the Yeovil Refresh capital project, funded from the MTFP Support Fund reserve, should there be a requirement in that year to pay back the money received to-date from the Future High Streets Fund (FHSF).
	h.	transfer £2m from the Commercial Investments Risk Reserve to the MTFP Support Fund reserve to assist the 2023/24 position of the new Somerset Council in order to help fund potentially adverse local government finance reforms and the Yeovil Refresh reserve (see recommendation g above).
	2022/23 Revenue Budget
	i.	SSDC’s revenue budget requirement (Net Budget) of £19,714,320 for 2022/23 as set out in Table One of the Budget Report.
	2021/22 to 2023/24 Capital Programme
	j.	SSDC’s capital programme for 2021/22 to 2023/24 of £116.469m as set out in Table Eleven in the Budget Report and the consequential increase in SSDC’s financing charges revenue budget of circa £1.272m per annum.
	Council Tax
	k.	an assumption that there will be an increase in the 2022/23 Band D Council Tax of 2.82% representing a Band D Council Tax (excluding preceptors) of £182.11.
	Chief Finance Officer’s Statement
	l.	note the advice given by the statutory S151 Officer on the robustness of the estimates, the adequacy of reserves, and the key financial risks arising from these budget proposals.
	Treasury Management Strategy
	m	the 2022/23 Investment and Treasury Management Strategy.
	n.	the proposed borrowing and investment limits included in the Treasury Management Strategy.
	o.	the prudential and investment indicators.
	p.	the Minimum Revenue Provision (MRP) Policy statement.
	District Executive is also recommended to propose that the Assets and Finance Protocol, as agreed by LGR Joint Committee on 4th February 2022, is approved and adopted by Full Council.
Reason:	To propose to Full Council on 28th February on the 2022/23 the revenue and capital budgets and the 2022/23 Treasury Management Strategy.

Supporting documents:

Agenda item

2022/23 Budget Report

Council and Democracy