Agenda item

CM 36

Members considered a report that presented the Council’s draft Medium Term Financial Strategy (MTFS) from 2020/21 to 2024/25.

In the ensuing debate, reference was made to:-

(a)  the minimum level of Unearmarked Reserves.  Officers confirmed that it was a requirement for the minimum level to be reviewed and set annually by the Council;

(b)the three weekly residual (black sack) collection trial.  In reply to a question, officers advised that any delay in the trial would require a further report being presented to the Hub Committee.  However, Members were assured that any such proposal to delay would not have an impact on the proposed implementation date of 1 April 2021;

(c)the importance of the MTFS.  A number of Members highlighted the importance of closely (and regularly) monitoring the Council’s financial position;

(d)  the future of New Homes Bonus monies.  The Section 151 Officer informed the Council that a decision was still awaited from Central Government in respect of whether or not New Homes Bonus funding would be retained in the future.

It was then proposed by Cllr N Jory, seconded by Cllr R Cheadle and upon being submitted to the Meeting was declared to be CARRIED and ”RESOLVED that:

1.    The strategic intention be set to raise Council Tax by the maximum allowed in any given year, without triggering a Council Tax Referendum, to endeavour to continue to deliver services.  (NB. the actual Council Tax for any given year will be decided by Council in the preceding February);

2.    The Council respond to any Government announcement / consultation in September 2019 on Business Rates Reform;

3.    The Council continue to actively lobby and engage with the Government, Devon MPs and other sector bodies (such as the District Councils Network and the Rural Services Network) for a realistic Business Rates Baseline to be set for the Council for 2020 onwards, if Business Rates Reform is introduced for 2020-21 or a later timescale (it is widely thought that it will be delayed until 2021-22);

4.    The Council continues to lobby in support of the Government eliminating Negative Revenue Support Grant in 2020/21 (and thereafter) and continues to lobby for Rural Services Delivery Grant allocations which adequately reflect the cost of rural service provision;

5.    For modelling purposes, £200,000 of New Homes Bonus funding be used for 2020/21 (or any alternative scheme) to fund the Revenue Base Budget with this being reduced to £100,000 by 2021/22 and £50,000 by 2022-23;

6.    The minimum level of Unearmarked Reserves to be retained is increased from £750,000 (2019/20 level) to £900,000 for 2020/21 to reflect the increase in financial risks which the Council faces;

7.    £200,000 of Unearmarked Reserves be transferred into the Financial Stability Earmarked Reserve;

8.   The Council continues dialogue with the actuaries of the Devon Pension Fund and Devon County Council on the options for the Council’s Pension position, with the aim of reducing the current contributions, increasing affordability, whilst best managing the pension deficit.  (NB. once the results of the Triennial Pension Revaluation are known, a report will be presented to Members by January 2020);

9.   The Council maintains an Upper Limit on External Borrowing (for all Council services) as part of the Medium Term Financial Strategy of £50 million;

10.  The forecast Budget Gap for 2020/21 of £0.38 million and the position for future years be noted; and

11.   The current options identified and timescales for closing the Budget Gap in 2020/21 and future years (in order to achieve long term financial sustainability) be noted.”