Minutes:
The Executive Director of Finance and Corporate Resources delivered financial awareness training. During the delivery of this presentation the following matters were highlighted for Members’ consideration:
· A new approach to presenting Financial Monitoring Reports had been requested by the Overview and Scrutiny Board the previous year and Members’ suggestions had helped to inform the new report style.
· The reports would include a breakdown of financial information in relation to the Council’s strategic purposes.
· Support services, such as Financial Services, would be recorded within sections of the financial monitoring report dedicated to enabling. Members were advised that enabling services accounted for £6.5 million of Council expenditure.
· Developments with regard to business rates and the proportion that could be retained by the district Council.
· The involvement of Bromsgrove District Council in a business rates pool with other authorities in the Birmingham and Solihull Local Enterprise Partnership (LEP) area.
· The potential financial impact of business rate appeals, particularly those involving GP surgeries following a test case at the national level which resulted in a 40 per cent reduction on the business rates required from that practice.
· The number of GP surgeries in Bromsgrove district and the potential impact on Council finances of any future appeals. Members were advised that Officers were undertaking a review of this matter.
· A reduction of 51 per cent in the level of the revenue support grant provided by the Government to local authorities and the expectation that this grant would cease to be provided in future years.
· Reductions in the Living Support Grant provided to Councils and an assumption that this would decrease by a further 20 per cent in the year ahead.
· The referendum level for increases in Council Tax levels.
· Capital expenditure and the limited number of capital receipts held by the council.
· Future plans for the Council to borrow to cover the costs of large capital projects such the new Dolphin Centre.
· The level of balances held by the Council. Members were advised that the Council’s balances were currently £4.03 million, though £1 million of this sum would be allocated to covering the costs of borrowing.
· The level of reserves held by the Council. Some of these reserves were due to be used for specific projects such as to replenish the Council’s fleet of vehicles for Environmental Services.
· The New Homes Bonus. No assumptions had been made that the New Homes Bonus Community Scheme would continue beyond 2015/16, though Members could agree to do so as part of the budget setting process.
· A new financial management system had been introduced for the Council and information arising from this system would inform reports to Committee.
· Heads of Service were meeting with the Council’s accountants on a monthly basis. This would enable the Council to assess the reasons for both savings and any overspends.
· In future Officers were aiming to present quarterly updates on the Council’s business rates to enable Members to assess the impact of appeals on the local authority’s finances.
Members thanked Officers for the presentation and expressed appreciation for the amendments that had been made to the financial monitoring report.
Councillor S. R. Colella left the meeting at 6.52 pm.