Minutes of Cabinet Meeting held on 14th February, 2007 Relating to the Revenue Budget and Capital Programme 2007/08

REPORT OF THE ASSISTANT CHIEF EXECUTIVE, LEGAL AND GOVERNANCE

MEETING OF THE CITY COUNCIL 2ND MARCH, 2007

At its meeting on 14th February, 2007, the Cabinet received (a) a joint report of the Chief Executive and the Director of Corporate Resources on the Revenue Budget for 2007/2008; and (b) a joint report of the Chief Executive and the Director of Corporate Resources on the Capital Programme for 2007/2008.

In accordance with the arrangements approved at the Council at its meeting on 5th April, 2000, the reports, together with the recommendations of the Cabinet thereon, as set out below, are referred to the City Council for consideration:-

REVENUE BUDGET AND CAPITAL PROGRAMME 2007/08

Consideration was given to:-

(a) a joint report of the Chief Executive and the Director of Corporate Resources, setting out details of (i) the latest position in relation to the 2006/2007 Revenue Budget, (ii) the City Council’s revenue expenditure plans and requirements for 2007/2008, including the position on reserves and balances (iii) the impact of the Government’s Grant Settlement, (iv) levies and precepts made on the City Council by other Authorities, (v) the development of the City Council’s Financial and Service Strategy, including the financial outlook for 2008/2009 and beyond, and (vi) proposals for the setting of a Council Tax for the City Council; and

(b) a joint report of the Chief Executive and the Director of Corporate Resources, outlining (i) the latest position on the 2006/2007 Capital Programme, (ii) details of the 2007/2008 Capital Settlement and the priorities to which these resources are to be applied, and (iii) a summary of the Capital Programme position amounting to a sum in excess of £1bn of investment.

It was stated that reports concerning the Local Transport Plan and the Neighbourhoods Investment Plan, which were separately considered by Cabinet, were being incorporated into the 2007/2008 Capital Programme and that summary details of the 2006 Corporate Capital Strategy, which was approved by the Cabinet on 10th January, 2007, were included with the report for ease of reference.

RESOLVED: That (i) this Council, after noting the joint report of the Chief Executive and the Director of Corporate Resources, on the Revenue Budget 2007/2008 approves and adopts a net Revenue Budget for 2007/2008 amounting to £431.902m (excluding Parish and Town Council Precepts) and the Directorate cash allocations and other items for 2007/2008 as set out in Appendix 5 of the report on the Revenue Budget as follows:-

					Net
					Expenditure *
					£'000

Directorates

Children & Young People					75,512
Development, Environment & Leisure					121,122
Neighbourhoods & Community Care					136,569
Chief Executive's					40,346
					373,549

Capital Financing Costs					62,056

					435,605

Corporate Items
Financing Measures					-1,500
Other Adjustments					-2,203

Recommended Position for 2007/2008					431,902

To be funded by:
Government Grant					249,602
Collection Fund					1,134

To be met from Council Tax					181,166

					431,902

Council Tax

Council Tax Base for 2007/08					149,639.23

Council Tax Band D for 2007/08					1210.69

Increase from 2006/07					3.90%

* net of specific government grants and fees and charges for services

(ii) this Council:

(a)

(a) approves an increase of 3.9% in the Council Tax for City Council services;

(b)

(b) approves the discount for long term empty properties to be changed from 10% to 0%;

(c)

(c) approves the Revenue Budget allocations and Budget Implementation Plans for each of the Services as set out in Appendix 5 of the Revenue Budget report;

(d) notes the latest 2006/2007 budget monitoring position;

(e) notes the information provided at paragraphs 22 to 23 of the Revenue Budget report on the creation of an Invest to Save fund;

(f)

(f) approves the transfer of £5m of previously earmarked reserves to the Invest to Save fund

(d)

(g) notes that the corporate and directorate risks detailed in Appendix 6 of the report will now kept under regular review by the Executive

Management Team;

(h) having regard to the fact that the Independent Panel on Members’ Allowances have affirmed their views and recommendations as set out in their report which was considered by Council on 2nd February 2005, now confirms the arrangements for the implementation the Scheme as approved on 2nd February, 2005, for 2007/08, without change from that previously agreed;

(i) approves the Treasury Management and Annual Investment Strategies set out in Appendix 8 of the report and within this strategy, agrees the following specific recommendations:-

(A)

(A) approves the increase of current investment counterparty limits from £7m and £10m to £12m and £20m respectively; and

(B) approves the investment of Council funds with third party institutions for greater than 364 days;

(j) adopts the prudential indicators and limits as set out in Appendix 9 of the report;

(k)

(k) grants delegated authority to the Deputy Director of Corporate

Resources to undertake Treasury Management activity to create and amend appropriate Treasury Management Practice Statements and to report on the operation of Treasury Management activity on the terms set out in the documents now submitted;

(l) notes that the following issues will be the subject of further reports:

· The 2006/2007 out-turn position and its impact on reserves;

· Monitoring the 2007/2008 budget position during the year; and

· Preparation of the budget for 2008/2009 and the continued development of the Council’s Financial and Service Strategy;

(m) notes that, based on the estimated expenditure level of £431.902m set out in Appendix 5 to the Revenue Budget report, the amounts shown in part B of Appendix 7 of the report will be calculated by the City Council for the year 2007/2008, in accordance with sections 32 to 36 of the Local Government Finance Act 1992;

	(n) notes that information on the precepts issued by the South Yorkshire Police Authority and the South Yorkshire Fire and Civil Defence Authority, together with the impact of these on the overall amount of Council Tax to be charged in the City Council's area, will be provided in time for the meeting of the City Council on 2nd March, 2007;

(o)	(o) after noting the report of the joint report of the Chief Executive and the Director of Corporate Resources on the Capital Programme 2007/2008, approves the revised position on the Capital Programme as summarised at Appendix 1 and shown in greater detail in Appendices 2 to 6 of the report; and

	(p) sets an overall limit for Prudential Borrowing for 2007/2008 of £10m (of which £5m will relate to general 'Investment to Save' initiatives, and £5M to be used in lieu of Leasing) and that its deployment be controlled by the Director of Corporate Resources, in consultation with the Cabinet Member for Finance and Performance.

	(NOTE: 1. This item is referred for consideration by the City Council and cannot therefore be called-in for scrutiny; and
	2. Copies of the report on the Revenue Budget 2007/2008 and the Capital Programme 2007/2008 are circulated to all Council Members with the Council Summons.)

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