COLNE TOWN COUNCIL

REPORT AUTHOR / FINANCE EMPLOYMENT AND SERVICES COMMITTEE
TEL NO / 01282 332036 (M) 07484509129
EMAIL /
Date / 16thJanuary 2018

REPORT TO FULL COUNCIL

SUBJECT / Budget 2018-19 and Precept

PURPOSE:

  1. To advise Members that the Finance Employment and Services Committee have considered aproposed budget for 2018/19 requiring total expenditure of £650,100 as detailed in Appendix 1.
  1. To inform Members that in 2021, Town Council Precepts will be subject to the same principles affecting the increase in level of Council tax that can be agreed before requiring a referendum.
  1. To inform Members that in arriving at this proposal, the Finance Employment and Services Committee have taken into consideration the following:-
  1. Continuation of existing services at existing levels.
  2. Reduction in grant awards to £1,500.
  3. Additional £20,000 revenue requirement for urgent Town Hall Works.
  4. £15,000 Capital repayment provision in respect of the already approved Capital Programme for specific Bus Shelter replacement.
  5. £62,686 general capital repayment reserve, tostart to provision for the strong likelihood of capital borrowing being needed to underpin our ambitions for both our existing property portfolio, and potential future acquisition.
  1. To inform Members that projected Reserves as at March 2019 of circa £226k would be a prudent level to seek to retain, in case of decline in our non – precept income base.

RECOMMENDATION:

  1. That Full Council Agrees the proposed Budget as recommended by Finance Employment and Services Committee.
  1. That Members authorise that a Precept of £460,000 be raised for the financial year beginning 1st April 2018 and ending 31st March 2019
  1. That Members authorise the CEOto issue the Precept demand for £460,000 to Pendle Borough Council by the 19th January 2018

REASONS FOR RECOMMENDATION;

  1. The Budget to be set for 2018/19 requires Full Council approval.
  1. Determining the level of Precept to be called for requires Full Council approval.
  1. To provide the authority for the CEO to instruct Pendle Borough Council, as the rating authority, to collect the sum of £460,000 and to pass such sum over to Colne Town Council early in the new financial year.

SUMMARY OF KEY POINTS:

  1. Members of the Finance Employment and Services Committee, have reviewed the budget detail and have satisfied themselves that a suitable and sufficient budget has been prepared to deliver the services required by Members for 2018/19.
  1. Members of the Finance Employment and Services Committee, are aware of the financial risks associated with delivery of the Blues Festivaland Property Ownership.They have considered the level of reserves as being adequate enough to sustain short term pressures arising out of budget overspend, and or declines in income.
  1. Members of the Finance Employment and Services Committee, have given consideration to the Councils’ likely need to raise Capital borrowing in the future.By starting to provide in 2018/19 for this in terms of revenue ability to repay capital borrowing from precept, this ability also flows through to future financial years.
  1. Members of the Finance Employment and Services Committee will continue to receive frequent updates from the CEO of any untoward financial pressures seen on the budget.

FINANCIAL IMPLICATIONS AND BUDGET PROVISION:

  1. TheCouncils budget book is now starting to be significant and continues to require regular monitoring.
  1. At the proposed levels of expenditure, the highest financial risk is that associated with the generation of non - precept income.At 32.56% this still represents significant risk, but is totally covered by Reserves.

Colne Town Council - reliance on non precept income
Expenditure / Income / Precept Income / Non precept income / % Non precept income
Budget 2018/19 / £583,914 / £583,914 / £393,814 / £190,100 / 32.56%

17.The level of precept proposed at £460,000 represents an increase in the tax base as

follows:-

POLICY IMPLICATIONS:

18.None in terms of the process of budget and precept setting, other than to seek to deliver a balanced budget as part of good governance arrangements.

DETAILS OF CONSULTATION:

19.Noneto date.

BACKGROUND PAPERS:

20. Appendix 1- 2018/19 Budget

FURTHER INFORMATION PLEASE CONTACT: Colin Hill

1

FES report – Full Council Item 11 2018-19 budget