Issue - meetings

To consider the attached report of the Strategic Director (Corporate Resources).

The Strategic Director (Corporate Resources) presented the Council Budget 2020/21 and Medium-Term Financial Plan 2020/21–2023/24. It was his view as the Section 151 Officer that the budget had been prepared in an appropriate and prudent manner and that based upon the information available at the time of producing the report the estimates were robust and the resources were adequate for the Council’s spending plans in 2020/21.

However, current funding (in particular from Business Rates (BR), the Fair Funding Review and New Homes Bonus) was volatile, difficult to predict and generally outside of the Council’s control. In addition, the Revenue Support Grant had seen a 90% reduction in 2019/20 and was forecast to remain at this lower level (circa £57k) for 2020/21 and be nil thereafter.

The main ‘headlines’ of the budget were as follows:

•       General Fund budget surplus of £2k for 2020/21;

•       Prudent General Fund balances maintained at over £2.6m;

•       DDC Council Tax increase of £4.95 for a Band D property, maintained the lowest Council Tax in East Kent;

•       Overall net expenditure levels increased slightly, in line with inflation;

•       No significant reductions in funding for services and no major changes in staffing levels.

•       Additional income had been generated and used to protect services. The main sources were from:

o   Increased Business Rates (mainly relating to renewable energy including one-off);

o   Increased Council Tax base and charge;

o   Treasury management investments; and

o   Commercial property regeneration initiatives.

The main ‘headlines’ of the Housing Revenue Account (HRA) were as follows:

•       2020/21 budget funded;

•       HRA balances maintained for 2020/21;

•       Major variances for 2020/21:

o   Increase of rent by CPI +1% (2.7% in total);

o   Increased capital works;

•       Rents set by Government, and had been increased by CPI +1% in 2020/21;

•       Rents had been reduced by 1% per annum for the previous 4 years as required by Government;

•       The Council’s ability to service the £73m remaining debt, that the Government had required it to incur, needed to be protected, and that this should continue to be a priority.

The main ‘headlines’ of the Capital and Special Revenue Projects were as follows:

•       The current capital programme of £261m was fully funded (subject to the borrowing arrangements for the Dover District Leisure Centre and the Property Investment Strategy);

•       The major projects in the programme were;

o   Property Investment Strategy;

o   Development of a Bus Rapid Transit System (BRT);

o   Refurbishment of Dover Town Hall;

o   Refurbishment of Tides Leisure Centre; and

o   Dover Market Square Public Realm Improvements.

•       The resources for funding capital and revenue projects would be largely exhausted by the current programme;

•       Future capital receipts were expected to come mainly from one-off asset sales and ongoing housing right to buy sales which amount to circa £500k per annum at current sales levels. This would not replenish capital funds and would not be sufficient to maintain the current planned level of activity in the future;

•       Revenue project  ...  view the full minutes text for item 112

To consider the report of the Strategic Director (Corporate Resources) (to follow).

Responsibility: Portfolio Holder for Finance and Governance

(a)  It was agreed:

(i) That, subject to Council approving the 2020/21 budget, the grants to  organisations, as set out in Annex 9 of the report, be approved as follows:

Grants to Concessionary Rentals 2020/21 - £38,355

Various grants towards rentals/lease charges

Financial Assistance Payments to Other Outside Bodies:

Your Leisure - £100,350

Your Leisure - £5,000

Grant for Walmer Paddling Pool

Pegasus Playscheme – £1,500

                        Provision of a playscheme for children with disabilities

                        Age Concern – £1,500

Provision of area office services

Kent County Council - £3,000

Contribution to Sports Partnership

Gazen Salts Nature Reserve - £4,500

To assist in managing and maintaining the reserve

Sandwich Town Cricket Club - £10,000

To assist the club in defraying its expenditure in managing, maintaining and improving the recreation grounds at The Butts and Gazen Salts

Dover Outreach Centre - £10,000

Grant towards Winter Shelter costs

Dover Rugby Club - £12,000

For ground maintenance at Crabble Athletic Ground, covered by saving made in the landscape maintenance contract

Victoria Bowls - £1,000

Contribution to running expenses of the club

Dover Bowling Club - £4,000

Grant towards grounds maintenance at Dover Bowling Green.  Covered by savings within the grounds maintenance budget 

Dover Citizens’ Advice Bureau - £105,000

Core funding grant plus £3,500 service charge contribution

Neighbourhood Forums - £22,500

Grant to support voluntary and community organisations

Home Improvement Agency - £8,000

‘In Touch’ housing improvement agency funding

Deal Town Council - £5,000

Astor Theatre

Action with Communities in Rural Kent - £3,500

Contribution to rural housing

(ii)           That the use of the Property Services (Special Revenue) allocation be approved;

(iii)          That the use of the provision for internal costs to facilitate new projects be approved;

(iv)          That the draft budget is placed on the Council’s website for comments;

(v)           That it be noted that the Council Tax Resolution and Treasury Management, Investment and Capital Strategies will be added to the MTFP and other minor adjustments made before being presented to Council in March.

(b)  It was agreed to recommend to Council:

(i)            That the General Fund Revenue Budget for 2020/21, the capital and Special Projects Programmes, the Housing Revenue Account budget and the content of the Medium-Term Financial Plan (MTFP), as proposed in Appendix 1, be approved;

(ii)           That the various Council recommendations at the end of sections within the budget and MTFP be approved as follows:

(A)  Approve the General Fund Revenue Budget for 2020/21 and the projected outturn for 2019/20;

(B)  Approve the policies and protocols regarding the General Fund balances and earmarked reserves, and transfers between reserves, as set out in Annex 4 of the report;

(C)  Approve the Housing Revenue Account budget for 2020/21 and the projected outturn for 2019/20 at Annex 5 of the report;

(D)  Approve the Capital and Special Revenue Projects Programmes;

(E)  Approve that capital resources required to finance new projects are secured before new projects commence;

(F)  Approve the Capital, Treasury Management and Investment Strategies, including the Prudential Indicators and Minimum  ...  view the full minutes text for item 6