25 01 2005

 

 

 

 

Councillor Hook declared  personal interests in any items related to 137 High Street, Gosport and the Board’s Revenue Estimates 2005/2006 for Local Land Charges.

 

 

 

 

 

Consideration was given to a report by the Borough Treasurer (a copy of which is affixed in the Minute Book as Appendix A), which outlined the financial situation of the Council’s General Fund in the current year and, after consideration of the main factors affecting the outlook for 2005/6 including Exchequer support and Reserve levels, recommended a budget level for that year. The proposed budget contained in the draft budget book consolidated the requirements of the Policy and Organisation Board plus the Community and Environment and Housing (General Fund) Boards as cross referenced and represented an increase of approximately 2.7%. This increase was expected to result in an increase in the Borough’s share of the Council Tax of 2.9% after taking account of reserve and tax collection fund balances.  This increase equated to an extra 7.6p per week Council Tax for an average Gosport property (Band B).

 

The report advised that the revised 2004/2005 expenditure and income budget totalled £10,647,910, the same as the original. Appendix 1 of the Borough Treasurer’s report detailed the variations that had arisen between the Council’s original spending plans for the current year and the latest estimate of expenditure and income. The working balance was expected to reach its target level of 7% (£765,000) by 31 March 2005 with the possibility of a small contribution to a Revenue Financing Reserve in accordance with Council policy.

 

The report advised that, with regard to budget proposals for 2005/2006, there were substantial variations to the Council’s budget requirements compared to the revised 2004/2005 figure arising from inflation and contributions to reserves.

 

The report advised that the 2005/2006 budget totalled £10,934,110 including a contribution to Reserves. The budget total was £286,200 higher that the current year’s original budget.

 

The report advised that the Capital Programme for the next six years amounted to over £39 million and was partially dependent on the raising of further external funding, although the plans for 2005/2006 could be fully funded in accordance with new capital controls.

 

RECOMMENDED: That Council approve a revised 2004/2005 budget totalling £10,647,910 and a budget for 2005/2006 totalling £10,934,110 (including a contribution to reserves of £67,890 subject to final Exchequer grant levels).

 

 

 

 

Consideration was given to a report by the Borough Treasurer (a copy of which is affixed in the Minute Book as Appendix B), which covered the operation of the Council’s prudential indicators, its treasury function and its likely activities for the forthcoming year. The report incorporated key Council reporting requirements:

 

§          The reporting of the main prudential indicators in accordance with the requirements of the CIPFA Prudential Code for Capital Finance in Local Authorities; and

§          The treasury strategy for 2005/06 in accordance with the CIPFA Code of Practice on Treasury Management, incorporating the summary to the investment strategy (in accordance with the ODPM investment guidance), it also included the specific treasury management prudential indicators.

 

Members were advised that this budgetary cycle provided for the second full year of the operation of the CIPFA Prudential Code.  The Prudential Code operated by the provision of prudential indicators, which highlighted particular aspects of capital expenditure planning.  Each indicator provided during the 2004/05 budget process had been updated and provided for the next three years. This was in accordance with the Prudential Code, which required that the Council approve as a minimum certain mandatory prudential indicators. 

 

Members were advised that the purpose of the indicators was to provide a framework for capital expenditure decision making.  It highlighted through the prudential indicators the level of capital expenditure, the impact on borrowing and investment levels and the overall controls in place to ensure the activity remained affordable, prudent and sustainable.   

 

Members were advised that, within this overall capital expenditure framework, there was a clear impact on the Council’s treasury management activity, either through increased borrowing levels or the application of investment balances.  As a consequence the treasury management strategy for 2005/06 was included to draw out the expected treasury management activity.  The report also included the treasury prudential indicators.  The production of the treasury management strategy was a requirement of the CIPFA Code of Practice on Treasury Management.

 

Members were advised that, in addition, part of the treasury strategy requirements was the formulation of an investment strategy.  Investment guidance issued by the ODPM during March 2004 overlapped into the Code of Practice requirements.  The reporting requirements of the ODPM guidance had therefore been incorporated into the treasury management strategy.

 

RECOMMENDED: That -

 

i) the report of the Borough Treasurer be referred to Council for formal approval; and

 

ii) the prudential indicators and limits within the report of the Borough Treasurer be referred to Council for formal adoption.

 

 

 

BOARD BUDGET 2005/2006

 

 

The Board received a report by the Borough Treasurer (a copy of which is affixed in the Minute Book as Appendix C), which recommended the Board’s fees and charges for 2005/2006, the revised budget for 2004/2005 and the 2005/2006 budget.

 

The report advised members that the revised budget for 2004/2005 for this Board was £2,707,150, which represented a reduction of £130,510 (4.6%) on the original budget for 2004/2005 of £2,837,660.  The budget for 2005/2006 for this Board was £3,171,400, which represented an increase of £337,740 (11.8%) on the original budget for 2004/2005 of £2,837,660 and an increase of £464,250 (17.1%) on the revised budget for 2004/2005 of £2,707,150.

 

The Board’s recommended fees and charges were set out in Appendix C of the Borough Treasurer’s report. They had been examined in line with the Council’s budget strategy with a view to increasing them where possible taking into consideration inflation rates, comparative costs and charges, service costs and sensible roundings. Members were advised that the proposed fees and charges included the following proposals:

 

§          Explosion Museum charges to remain unchanged

 

§          Land Charges to be raised to £140 for non NLIS submissions and £118 for NLIS submissions (a differential is required to allow for the retention of a transmission fee by the NLIS)

 

§          Stokes Bay Caravan Park rents to be increased by 3%.

 

 

The draft capital programme for the Policy and Organisation Board was presented at Appendix D of the Borough Treasurer’s report. Main new scheme inclusions included:

 

§          Priddy’s Hard Ramparts and Site Development

 

These schemes were fully funded by the capital receipts and deposits received from the developer.

 

§          Major Repairs to the Town Hall and the Bus Station

 

 

RESOLVED: That the Borough Treasurer’s report be accepted and forwarded without debate for consideration under Minute No. 55 above.

The meeting commenced at 6.00 p.m. and concluded at 6.12 p.m.