In preparing the Budget for 2005/06, the Council circulated its proposals and consulted with Town and Parish Councils, trade union representatives of its employees and the local business community through the South Cheshire Chamber. The Consultation Draft Budget was also placed on the Council's website, enabling consultation with the wider community.

 

At its meeting on 23 February 2005, the Council approved budgets for its General Revenue Account services in 2005/06 and a Capital Programme for 2005/06-2008/09.

 

This included provision for a trial of a new kerbside collection and recycling scheme, the one-off costs of which being funded by transfer from reserves. The detail of the trial was approved on 30 March 2005 and this publication incorporates those capital and revenue budget variations, accordingly. 

 

The Budget Book sets out in detail the various elements, as follows:

 

·        Section A - General Revenue Account (pages colour coded by portfolio)

·        Section B - General Fund and Earmarked Reserves (yellow pages)

·        Section C - Capital Programme (cream pages)

·        Section D - Scales of Fees and Charges (lilac pages)

·        Section E - Service Strategies - Resource Impacts (white pages)

·        Section F - Approved Budget Reductions (white pages) 

 

The following paragraphs give supporting information and describe matters that the Council considered in determining its Budget and setting the Council Tax for 2005/06.

 

In summary, the Budget provides for continued service delivery and development in line with the Council's policies and plans. The Revenue Budget is balanced by a Council Tax increase of £6.63 (5%) for the year for a Band D property.

 

 

The revised position for the year 2004/05 shows that the expected transfer to balances is £19,131. This should be compared with the originally budgeted transfer from balances of £57,239.

 

The main variances are increased investment income due to interest rate rises during the year, partly offset by the delay in the introduction of the new licensing regulations and higher than expected recycling costs. A detailed explanation of variances is provided in the notes accompanying each Service budget.

 

The estimated General Fund balance at 31 March 2005 is £2.26m. This exceeds the risk-assessed ceiling by a comfortable margin; the extra will be available to fund future one-off expenditure.

 

 

On the 27 January 2005, the Minister of State for Local Government announced the final Local Government Finance Settlement for 2005/06.

 

Compared to the actual Formula Grant for 2004/05, the Council will receive an extra £310,000 in 2005/06, an increase of 3.96%. The table below sets out the data for Crewe & Nantwich:

 

 

As well as the Budget and Grant settlement, other aspects that influence the Borough's Council Tax are described below, in addition to elements that make up the total Council Tax.

 

 

The Council Tax Base for 2005/06 of 39,185.7 was reported to Board and on to Council on 5 January 2005.  The Base has risen by 1.8% from 38,493.8, applicable in 2004/05.  

 

 

There is a Collection Fund surplus to share with the major precepting authorities. Our share is £40,000 and this will contribute towards funding one-off expenditure proposed in 2005/06, as it will not be available in future years.

 

 

In addition to supporting Borough Council budgetary needs, the Council must set a Council Tax that meets the requirements of other precepting authorities. The budgets of Cheshire Police Authority, Cheshire Fire Authority and Cheshire County Council were set in February and the Council was also informed of Parish Precepts.

 

The effects on Council Tax levels of the Borough's Budget and precepts from Cheshire County Council, Cheshire Police Authority and Cheshire Fire Authority are shown on page IX following this Foreword. Page X sets out the Parish precepts levied and the additional amounts of Council Tax they represent for Band D properties and page XI shows aggregate Council Taxes for all areas of the Borough.

 

 

 

The four-year Capital Programme (Section C - cream pages 106-108) is taken largely from the Council's approved Capital Investment Strategy.

 

Updates include additional sums for recycling and facilities for young people. Schemes relating to Delamere House and the CCTV Control Room have been deferred, pending clarification on the proposals for the re-development of Crewe town centre.

 

 

 

The Council's latest Medium Term Financial Projections clearly demonstrate that there is no scope for base budget growth without corresponding savings or increased income from fees and charges for services. When setting the Council Tax it is important to take into account the resource requirements for future years.

 

 

There are a number of important growth proposals from the various Service Strategies. Each requirement has been scored in accordance with the Revenue Strategy's assessment framework and highest priority items are shown first. Requirements are split between Base Budget Changes ("permanent" growth) and One-Offs (special items for particular years).

 

 

As indicated above, any increases in base budget spending must be matched by corresponding base budget reductions/ increased income, to ensure financial sustainability over the medium term.

 

Approved base budget changes (increases) are shown in Section E (pages 123-124) and approved base budget reductions included at Section F (page 125). Base budget (increase) bids that were not approved in 2005/06 are also shown in Section E, for information only.

 

 

The approved one-off items for 2005/06, as shown in Section E (pages 123-124) can be afforded because the level of the General Fund balance is estimated to exceed the risk-assessed ceiling approved by the Council.

 

 

The Council is required to adopt a sustainable budget position in the medium term. The forecast for the next few years shows a deficit, arising mainly from a reduction in investment interest income, as resources are used to finance capital projects.

 

From April 2005, the Government requires that Councils identify efficiency gains. In delivering those efficiencies, the Council will continue to achieve a sustainable budget position, over the medium term. Efficiency gains for 2005/06 and broad areas of search for future years were agreed in March 2005.

 

 

 

As mentioned above, the Budget provides for continued service delivery and development in line with the Council's policies and plans. The 2005/06 Revenue Budget is balanced by a Council Tax increase of £6.63 (5%) for the year, for a Band D property.

 

The Budget is seen as sustainable in the medium term, with an approved strategy of maintaining annual increases in Council Tax of no more than 5% and with the realisation of efficiency gains.

 

 

Executive Director (Treasury & Corporate Support)

 

 

31 March 2005