Agenda item

2022/23 Budget Report

Meeting of Annual Budget meeting, South Somerset District Council, Monday 28th February 2022 6.30 pm (Item 126.)

Decision:

RESOLVED:	That Full Council agreed to:- 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 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.
	Full Council also approved and adopted the Assets and Finance Protocol, as agreed by LGR Joint Committee on 4^th February 2022.
Reason:	To confirm the 2022/23 revenue and capital budgets and the 2022/23 Treasury Management Strategy and agree to adopt the principals included in the Finance and Assets Protocol agreed by Local Government Review (LGR) Joint Committee on 4^th February 2022.

(The following Councillors voted in favour: Jason Baker, Mike Best, Dave Bulmer, Tony Capozzoli, Martin Carnell, John Clark, Nicola Clark, Adam Dance, Sarah Dyke, Karl Gill, Peter Gubbins, Brian Hamilton, Mike Hewitson, Henry Hobhouse, Ben Hodgson, Kaysar Hussein, Val Keitch, Andy Kendall, Tim Kerley, Tony Lock, Paul Maxwell, Kevin Messenger, Graham Oakes, Oliver Patrick, Crispin Raikes, Wes Read, David Recardo, Peter Seib, Garry Shortland, Andy Soughton, Mike Stanton, Rob Stickland, Gerard Tucker)

(The following Councillor voted against: Colin Winder)

(The following Councillors abstained from voting: Robin Bastable, Hayward Burt, Michael Lewis, Sue Osborne, Gina Seaton, Lucy Trimnell)

Minutes:

The Portfolio Holder for Finance and Legal Services noted that this would be the last time SSDC would set its own budget and it incorporated all of the previously agreed reports of the meeting and included a small surplus which would top up the MTFP Support Reserve. The budget assumed a council tax rise of 2.82% which was less than inflation. The report consolidated several financial reports and this would help to bring together the 4 District Councils and the County to a single financial position the next year. The Council would be handing on a legacy of proper reserves, sound finances and £6m income from the income generation scheme although there would be no further investment in commercial property. He commended the advice of the financial team and he proposed the recommendations to Members, noting the advice of the Section 151 Officer. He concluded that Council were asked to approve and adopt the Asset and Finance Protocol as each Council would as part of the LGR.

In response to questions from Members, the Portfolio Holder confirmed:-

· That the SSDC budget would comply with the Asset and Finance Protocol.

· Individual projects contained sufficient contingency funding to cover all but the most extreme events and the remainder of the risk would be covered by the new corporate pool resource. This pooling of risk was more efficient and the Corporate Risk Reserve was large. Only extreme events would require help from the corporate reserve.

At the conclusion of the debate, the recommendations were proposed and seconded and a named vote was taken. The recommendations were confirmed by 33 in votes favour, 1 against and 6 abstentions.

RESOLVED:	That Full Council agreed to:- 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 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.
	Full Council also approved and adopted the Assets and Finance Protocol, as agreed by LGR Joint Committee on 4^th February 2022.
Reason:	To confirm the 2022/23 revenue and capital budgets and the 2022/23 Treasury Management Strategy and agree to adopt the principals included in the Finance and Assets Protocol agreed by Local Government Review (LGR) Joint Committee on 4^th February 2022.