7.Setting the Council Tax

COUNCIL – 24 FEBRUARY 2009

7.SETTING THE COUNCIL TAX

(DCRG)

1.Summary

1.1This report allows the Council to set its own Council Tax for 2009/2010.

2.Background

2.1The recommendations at paragraph 9 below are set out to comply with the requirements of the Local Government Finance Act 1992. References to Section numbers in this report refer to that Act unless otherwise stated.

2.2The details below show the calculations made in arriving at the recommendations and are cross referenced accordingly.

3.Details

3.1The Council’s Budget

This is the figure agreed by the Council as its General Fund revenue budget for 2009/2010.

(Cross Reference: Recommendation 9.1 below).

3.2The Council Tax Base

This recommendation reminds the Council of the decisions the Executive Committee took on 1December2008 concerning the Council Tax Base for 2009/2010.

(Cross Reference: Recommendation 9.2 below).

3.3Calculation of Budget Requirement

This calculation is required under Section 32 of the Act. The Council must calculate:-

(a)its aggregate expenditure (including the amounts of Parish Precepts to be met from the General Fund);

(b)its aggregate income (excluding redistributed National Non-Domestic Rate and Revenue Support Grant); and,

(c)the difference between the two, being termed the Budget Requirement for the purposes of Council Tax setting.

(Cross Reference: Recommendations 9.3 (a), (b) and (c) below).

The calculations shown below are made not only to comply with the Act but are also presented in accordance with the Code of Practice on Local Authority Accounting in Great Britain:-

Expenditure / Income / Net Expenditure
Under / Under / Budget
Section / Section / Requirement
32(2) / 32(3) / Under
Section 32(4)
£ / £ / £
General Fund
Highways & Transportation / 2,657,850 / (380,930) / 2,276,920
Planning & Economic Development / 2,793,070 / (1,030,980) / 1,762,090
Leisure / 3,252,860 / (734,910) / 2,517,950
Waste Collection / 4,115,060 / (1,289,210) / 2,825,850
Environmental Health / 1,745,130 / (374,280) / 1,370,850
Other Environmental Services / 206,040 / (69,400) / 136,640
Housing / 1,322,000 / (186,780) / 1,135,220
Corporate & Democratic Core / 2,201,820 / 0 / 2,201,820
Local Taxation Collection / 1,254,450 / (283,680) / 970,770
Housing Benefits / 21,978,040 / (21,563,460) / 414,580
Central Support Services / 186,330 / (246,580) / (60,250)
Other Services / 2,907,760 / (1,632,440) / 1,275,320
Net Cost of District Services / 44,620,410 / (27,792,650) / 16,827,760
Parish Precepts
Abbots Langley / 546,000 / 0 / 546,000
Chorleywood / 337,000 / 0 / 337,000
Croxley Green / 242,845 / 0 / 242,845
Sarratt / 65,889 / 0 / 65,889
Watford Rural / 210,650 / 0 / 210,650
Interest / 0 / (637,000) / (637,000)
Pensions Adjustment / 3,810,000 / (3,522,000) / 288,000
Net District Operating Expenditure / 49,832,794 / (31,951,650) / 17,881,144
Contribution to/from Reserves / 14,280 / (37,050) / (22,770)
Contribution to/from Pensions Reserve / 4,960,940 / (5,137,420) / (176,480)
General Revenue Account Appropriations / (3,158,900) / 428,300 / (2,730,600)
Contribution to Revenue Balances / 0 / (1,881,314) / (1,881,314)
Amount to be met from Government / 51,649,114 / (38,579,134) / 13,069,980
Grants and by Taxpayers -
Total Budget Requirement

3.4Redistributed Non-Domestic Rates, Revenue Support Grant and Collection Fund Surplus.

Communities and Local Government informed the Council by letter dated 21January 2009 of the following:-

£
Redistributed Non-Domestic Rate / 4,606,798
Revenue Support Grant / 1,063,308
Total External Support / 5,670,106

In accordance with Section 33(2) of the Act and the Local Authorities (Alteration of Requisite Calculations and Funds) Regulations 1994, the 2009/2010 Council Tax is to be decreased by:-

£
Three Rivers Proportion of estimated Surplus on Council Tax Collection for 2008/09 / 0

The total of External Support and Collection Fund Surplus is as follows;-

£
Total External Support / 5,670,106
Three Rivers Proportion of Collection Fund 2008/09 / 0
Total / 5,670,106

(Cross Reference: Recommendation 9.3 (d) below).

3.5Basic Amount of Tax

Calculated as follows:-

Budget Requirement less NNDR, Revenue Support Grant and Collection Fund Surplus
Council Tax Base
13,069,980 – 5,670,106 / = £193.12
38,317.72

This is the charge that, were there no special expenses in a part of the area, would be levied on a Band D property with two or more adults to meet District and Parish expenditure.

(Cross Reference: Recommendation 9.3 (e) below).

3.6Aggregate Amount of Special Items

Special items include both Parish Precepts and Special Expenses:-

£ / £
Parish Precepts
Abbots Langley P.C. / 546,000
Chorleywood P.C. / 337,000
Croxley Green P.C. / 242,845
Sarratt P.C. / 65,889
Watford Rural P.C. / 210,650
Total Parish Precepts / 1,402,384
Special Expenses (See also Appendix 1)
Area:
Abbots Langley / (19,900)
Chorleywood / 81,690
Croxley Green / 155,600
Sarratt / 0
Watford Rural / 254,900
Unparished / 653,220
Total Special Expenses / 1,125,510
Total Special Items / 2,527,894

(Cross Reference: Recommendation 9.3 (f) below).

3.7Basic Amount of Council Tax for Dwellings in a Part of the District Were No Special Items to Apply

This calculation gives a basic amount of tax for a dwelling in a part of the area to which no special item relates. In fact there is no dwelling in the District to which this applies but the figure is calculated to enable special items in part of the District to be subsequently added back:-

Basic Amount of Tax
(Paragraph 3.5 above and Recommendation 9.3 (e)) / - / Aggregate of Special Items (Paragraph 3.6 above and Recommendation 9.3 (f))
Council’s Total Tax Base
(Paragraph 3.2 above and
Recommendation 9.2 (a))
193.12 / - / 2,527,894 / = / £127.15
38,317.72

This figure equates to the District Council’s charge for “General Expenses”.

(Cross Reference: Recommendation 9.3 (g) below)

3.8Council Tax for Part of the Council’s Area

This calculation adds back to the calculation at paragraph 3.7 above, the Special items that relate to each part of the District with regard to the tax base in each part, i.e.:-

A Langley / Chorleywood / Croxley Grn / Sarratt / Watford Rural / Unparished
£ / £ / £ / £ / £ / £
Special Items
Precepts / 546,000 / 337,000 / 242,845 / 65,889 / 210,650 / 0
Special Exps / (19,900) / 81,690 / 155,600 / 0 / 254,900 / 653,220
Sub-Total / 526,100 / 418,690 / 398,445 / 65,889 / 465,550 / 653,220
Divided by
Tax Base / 8,174.16 / 6,013.95 / 5,338.79 / 1,078.25 / 7,842.95 / 9,869.62
Sub-Total / 64.36 / 69.62 / 74.63 / 61.11 / 59.36 / 66.18
Add
Council Tax if no Special Items existed / 127.15 / 127.15 / 127.15 / 127.15 / 127.15 / 127.15
Total / 191.51 / 196.77 / 201.78 / 188.26 / 186.51 / 193.33

(Cross Reference: Recommendation 9.3 (h) below).

3.9Charges for Each Band

The figures for each band of property at Recommendation 9.3 (i) below is arrived at by taking the charge for a Band D property at paragraph 3.8 above and Recommendation 9.3 (h) and scaling it depending on the valuation band in which the property is listed. The proportions are:-

Band
A / 6:9
B / 7:9
C / 8:9
D / 9:9
E / 11:9
F / 13:9
G / 15:9
H / 18:9

(Cross Reference: Recommendation 9.3 (i))

3.10Major Precepting Authorities

The Hertfordshire Police Authority met on 20 February 2009 and the Hertfordshire County Council on 24 February 2009 to determine their budgets. Precepts for these authorities will be considered by this Council’s Council Tax Setting Committee on 25 February 2009.

4.Options/Reasons for Recommendation

4.1This report is made in order for the Council to set its own council tax for the forthcoming year.

Policy/Budget

5.1The recommendations in this report are within the Council’s agreed policy and budgets.

Equal Opportunities, Staffing, Environmental, Community Safety, Customer Services Centre, Communications & Website, Risk Management and Health & Safety Implications

6.1None specific.

7.Financial Implications

7.1Applying the charges contained in this report will generate the income required to meet District and Parish Councils’ expenditure after discounts and non-payment, allowance for which has been included in the Council Tax Base.

8.Legal Implications

8.1This report and its recommendations comply with the requirements of the Local Government Finance Act 1992.

9.Recommendations

9.1That it be noted that, at its meeting on 24 February 2009, the Council approved a General Fund revenue budget for 2009/2010 of £13,069,980.

9.2That it be noted that, at its meeting on 1 December 2008, the Executive Committee calculated the following amounts for the year 2008/2009 in accordance with Regulations made under Section 33(5) of the Local Government Finance Act 1992:-

(a)38,317.72 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)Parts of the Council’s area:-

Abbots Langley / 8,174.16
Chorleywood / 6,013.95
Croxley Green / 5,338.79
Sarratt / 1,078.25
Watford Rural / 7,842.95
Unparished Area / 9,869.62

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.

9.3That the following amounts be now calculated by the Council for the year 2009/2010 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992:-

(a) / £51,649,114 / 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) / £38,579,134 / 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) / £13,069,980 / being the amount by which the aggregate at 9.3(a) above exceeds the aggregate at 9.3(b) above, calculated by the Council in accordance with Section 32(4) of the Act, as its budget requirement for the year.
(d) / £5,670,106 / 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 and revenue support grant, adjusted by the amount of the sums which the Council estimates will be transferred in the year to or from its collection fund and general fund in accordance with Section 97(3) of the Local Government Finance Act 1988 (Council Tax Deficits and Surpluses).
(e) / £193.12 / being the amount at 9.3(c) above less the amount at 9.3(d) above, all divided by the amount at 9.2(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) / £2,527,894 / being the aggregate amount of all special items referred to in Section 34(1) of the Act.
(g) / £127.15 / being the amount at 9.3(e) above less the result given by dividing the amount at 9.3(f) above by the amount at 9.2(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 the area to which no special item relates.
(h) / Parts of the Council’s Area / £
Abbots Langley / 191.51
Chorleywood / 196.77
Croxley Green / 201.78
Sarratt / 188.26
Watford Rural / 186.51
Unparished / 193.33
being the amounts given by adding to the amount at 9.3(g) above the amounts of the special item or items relating to the dwellings in those parts of the Council’s area mentioned above divided in each case by the amount at 9.2(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)
Valuation Bands
Parts of the / A / B / C / D / E / F / G / H
Council’s Area / £ / £ / £ / £ / £ / £ / £ / £
Abbots Langley / 127.67 / 148.95 / 170.23 / 191.51 / 234.07 / 276.63 / 319.18 / 383.02
Chorleywood / 131.18 / 153.04 / 174.91 / 196.77 / 240.50 / 284.22 / 327.95 / 393.54
Croxley Green / 134.52 / 156.94 / 179.36 / 201.78 / 246.62 / 291.46 / 336.30 / 403.56
Sarratt / 125.51 / 146.42 / 167.34 / 188.26 / 230.10 / 271.93 / 313.77 / 376.52
Watford Rural / 124.34 / 145.06 / 165.79 / 186.51 / 227.96 / 269.40 / 310.85 / 373.02
Unparished / 128.89 / 150.37 / 171.85 / 193.33 / 236.29 / 279.25 / 322.22 / 386.66
being the amounts given by multiplying the amounts at 9.3(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.

Report Prepared by:

David Gardner - Director of Corporate Resources and Governance

Susan Townshend – Exchequer Services Manager

Background Papers:

Local Government Finance Act 1992 and Regulations made thereunder.

Council minutes concerning the budget for 2009/2010.

Report to Executive Committee – 1 December 2008 - The Council Tax Base

Notification from Communities and Local Government concerning Revenue Support Grant and Non-Domestic Rate Redistribution.

Notification of Parish Precepts.