Agenda item

A report on the recommendations of the Council’s Executive Cabinet at its meeting on 14 February 2008, the draft Council Tax resolution, the Statutory Section 25 report of the Assistant Chief Executive (Business Transformation) and the Shadow Cabinets alternative budget is enclosed.  

Agreed

The Executive Leader presented a report putting forward proposals for the General Fund Revenue Budget and Council Tax levels for 2008/09 as well as the Council’s Capital Programme for 2008/09, which had received approval by the Executive Cabinet at its meeting held on 14 February 2008.

 

The report contained representations received in response to consultation on the draft budget proposals and which highlighted the key concerns that had been expressed by respondents.

 

The Executive Leader explained that the proposals had been formulated to achieve a number of objectives.

 

• Ensure the Council continued to deliver a balanced budget.
• The Council continued to deliver value for money for its residents.
• The Council continued to invest in frontline services and priorities.

 

In terms of the key messages, there were many positives to report.

 

• The proposed level of 2.5% Council Tax increase was well below the current rate of inflation.
• There would be significant investment in the continued improvement of front line services.
• Disruption to the current Council Services, which are performing well, had been kept to a minimum.

 

The report set out the Executive Cabinets proposals, including appendices relating to budget consultation responses, including the Executives response to issues raised by the Overview and Scrutiny Committee in relation to its review of the budget, the Council's Capital Programme and a note explaining the pooling arrangement with regard to concessionary travel.

 

Also appended to the report was a report of the Statutory Finance Officer to satisfy the provision of Section 25 of the Local Government Act 2003 requiring the officer to report independently to Members on the robustness of the budget and the risks contained in the budget.

 

In respect of the budget proposals it was moved by Councillor Alan Cullens (Executive Member for Resources) and seconded by Councillor Peter Goldsworthy (Executive Leader) that the budget and estimates of the Executive Cabinet be approved.

 

In respect of the budget proposals, the Council received a report by the Leader of the Labour Group on the Shadow Cabinets alternative budget.

 

It was moved by Councillor Dennis Edgerley and seconded by Councillor Terry Brown that the Shadow Cabinet’s alternative budget, including the following amendments be approved.

 

Labour Group Proposals

 

Additional Street cleaning                                                       £40,000

Reduce Provision Projects delivered by Partners.                 £45,000

Projects delivered by Partners.                                                          £45,000

 

The proposal was put to the vote and the Mayor declared it lost.

 

In respect of the budget proposals it was moved by Councillor Dennis Edgerley and seconded by Councillor Terry Brown that the following items contained in the Alternative Budget be approved.

 

Additional Recurrent Expenditure                   Labour Group Proposals

 

Fund for physical improvement,                                 £200,000

neighbourhood and recreation grounds

and lighting.

Prevention of Homelessness Fund                              £70,000

 

The amendment was put to the vote and the Mayor declared it lost.

 

It was moved by Councillor Alan Cullens (Executive Member for Resources) and seconded by Councillor Peter Goldsworthy (Executive Leader) that the following be approved.

 

• The necessary formal resolution in the setting of the 2008/09
  Council Tax for the Borough to reflect the Council’s net revenue estimates, together with the necessary addition to meet Lancashire County Council, Lancashire Police Authority, Lancashire Fire Authority and Parish Council precepts as set at in Appendix 8.
• The Council’s Capital Programme as set out in Appendix 5 of the submitted report.
• The pooling arrangement with regard to concessionary transport as set out in Appendix 7 of the submitted report.
• The advice of the Statutory Finance Officer in relation to the robustness of the budget and the risks contained in the budget and the Treasury Management Strategy and its core principles as set out in Appendix 9 of the submitted report.
• The fees and charges increases and car park tariff changes as set out in Appendix 4 of the submitted report.
• The Councils Medium Term Financial Strategy as set out in Appendix 10 of the submitted report.

 

RESOLVED –

 

1.         That it be noted that acting under delegated powers the Director of Finance calculated the amount of 35,296.10 as its Council Tax Base for the year 2008/09 in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992 made under Section 33(5) of the Local Government Finance Act 1992.

 

           (a)        35,296.10 being the amount calculated by the Council, in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, as its Council Tax Base for the year.

 

            (b)       being the amounts calculated by the Council, in accordance with Regulation 6 of the Regulations, as the amounts of its Council Tax Base for the year for dwellings in those parts of its area to which one or more special items relate.

 

 

2.         That the following amounts be now calculated by the Council for the year 2008/09 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992:

 

            (a)        £43,067,230 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(2)(a) to (e) of the Act;

           

(b)                £28,098,250 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(3)(a) to (c) of the Act;

 

            (c)        £14,968,980 being the amount by which the aggregate at 2(a) above exceeds the aggregate at 2(b) above, calculated by the Council, in accordance with Section 32(4) of the Act, as its budget requirement for the year;

 

            (d)        £8,221,000 being the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of redistributed non-domestic rates, Revenue Support Grant, increased by the amount of the sums which the Council estimates will be transferred in the year from its collection fund to its general fund in accordance with Section 97(3) of the Local Government Finance Act 1988;

 

            (e)        £191.18 being the amount at 2(c) above less the amount at 2(d) above, all divided by the amount at 1(a) above, calculated by the Council, in accordance with Section 33(1) of the Act, as the basic amount of its Council Tax for the year;

 

            (f)         £1,260,003 being the aggregated amount of all special items referred to in Section 34(1) of the Act;

 

            (g)       £155.48 being the amount at 2(e) above less the result given by dividing the amount at 2(f) above by the amount at 1(a) above, calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special items relates;

           

                       

being the amounts given by adding to the amount at 2(g) above to the amounts of the special item or items relating to dwellingsin those parts of the Council’s area mentioned above divided in each case by the amount at 1(b) above, calculated by the Council in accordance with Section 34(3) of the Act, as the basic amounts of its Council Tax for the year for dwellings in those parts of its area to which one or more special items relate;

           

(i)         Part of the Council’s Area

 

                        being the amounts given by multiplying the amounts at 2(g) and 2(h) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

3.         That it be noted that for the year 2008/09 the Lancashire County Council, Lancashire Police Authority, and the Lancashire Combined Fire Authority have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:

 

 

4.         That, having calculated the aggregate in each case of the amounts at 2(i) and 3 above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2008/09 for each of the categories of dwellings shown below:

 

            (i)         Part of the Council’s Area

 

           

5.         That the Statutory Finance Officer and his officers be authorised to take any action necessary to ensure collection and recovery of the Council Tax and Non-Domestic Rates.

 

6.         That the Council’s Capital Programme as set out in Appendix 5 of the submitted report be approved.

 

7.         That the pooling arrangements with regard to concessionary transport as set out in Appendix 7 of the submitted report, be approved.

 

8.         That the advice of the Statutory Finance Officer, under Section 25 of the Local Government Act 2003 in relation to the robustness of the budget and the risks contained in the budget, and the Treasury Management Strategy and its core principles as set out in Appendix 9 of the submitted report, be approved.

 

9.         That the fees and charges increases and car park tariff charges as set out in Appendix 4 of the submitted report, be approved.

 

10.      That the Council’s Medium Term Financial Strategy as set out in Appendix 10 be approved.

 

 

 

 

EXPLANATION OF COUNCIL TAX SETTING RESOLUTION

RESOLUTION 1

(a)   Before we can calculate the Council Tax to be charged, we first have to calculate the Council Tax base.  The Council Tax base is the amount which a Band D Council Tax of £1.00 would raise.  For 2008/09 we estimate that a £1.00 Council Tax at Band D would raise £35,296.10 in the Chorley area.

(b)   This shows the “base” figure for each Parish in the area.   For example, a £1.00 Band D Council Tax in Adlington would raise £1,966.00.

RESOLUTION 2

(a)   This is the grand total of money which the Council estimates it will spend on all services in 2008/09.  It also includes £575,386 which Parish Councils need to run their services.

(b)   This is the grand total of money which the Council estimates it will receive from various sources in the year.  This includes, for example, car park charges, investment income, government grants in respect of benefits, etc.

(c)   This is the difference between 2(a) and 2(b) and is in effect the Council’s and Parishes net spending on services.

(d)   This is the amount that the Government will contribute towards the cost of our services.  Also included is extra Council Tax resulting from new properties and expected collection rates in previous years.

(e)   The difference between 2(c) and 2(d) is £6,747,980 and this is the amount we need to charge Council Taxpayers.  This is divided by the base (see 1(a) above) and the resulting figure of £191.18 is the average Band D Council Tax for all Borough and Parish services.

(f)     The total of all the amounts needed from Council Taxpayers by the Parish Councils in the area and for Chorley Borough Special Expenses.

(g)   This is the Band D Council Tax for Chorley Borough Council’s own services, ie excluding Parish Council spending and Special Expenses

(h)   This table shows the Band D Council Tax for all parishes including the cost of the Parish Councils and Chorley Borough Council.  For example, Adlington’s Band D Council Tax is £155.48 for Chorley Borough services and £9.16 for Adlington Town Council services and £4.58 for Chorley Borough Special Expenses.

 

(i)     The rate for each property Band is calculated by reference to the Band D charge.  The following ratios apply:
		Band A Band B Band C Band D Band E Band F Band G Band H	6/9ths of Band D 79ths of Band D 89ths of Band D 99ths of Band D 11/9ths of Band D 13/9ths of Band D 15/9ths of Band D 18/9ths of Band D
For Adlington Band A, for example, the charge is £169.22 x 6 ÷ 9 = £112.81; for Band B it is £169.22 x 7 ÷ 9 = £131.62.
RESOLUTION 3
Lancashire County Council, Lancashire Fire Authority and Lancashire Police Authority are separate bodies who have worked out their own estimates of spending and income for 2007/08 and have set taxes in a similar way to Chorley Borough Council.  This resolution notes their final decision.
RESOLUTION 4
This pulls together the Council Taxes for Lancashire County Council, Lancashire Fire Authority, Lancashire Police Authority, Chorley Borough Council and the Parish Councils.  For example, the Band D for Adlington is £1,442.40 made up as follows:
	Lancashire County Council (as in 4 above) Lancashire Fire Authority (as in 4 above) Lancashire Police Authority (as in 4 above) Chorley Borough Council (as in 3(g) above) Adlington Town Council Special Expenses			£   1,077.06 60.16 135.96 155.48 9.16 4.58
RESOLUTION 5
Formally authorise the necessary staff to take legal action to collect arrears as and when this is necessary.  For the vast majority of taxpayers, this is not needed