In preparing the Budget for 2006/07, 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 22 February 2006, the Council approved budgets for its General Revenue Account services in 2006/07 and a Capital Programme for 2006/07-2010.

 

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 (purple pages)

·        Section E - Service Strategies - Resource Impacts (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 2006/07.

 

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 £3.76 (2.7%) for the year for a Band D property.

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With respect to the revised position for the current year, 2005/06, the expected transfer to balances is some £259k, compared with the originally budgeted transfer from balances of £462k.  This is in part due to investment interest receipts and a similarly favourable result from the new Housing and Council Tax Benefits subsidy regime as experienced in 2004/05, as noted in Budget Monitoring Reports throughout the year.

 

In addition to the changes noted above, the Local Authority Business Growth Incentive Scheme has resulted in a grant of some £368k being received in February 2006. This scheme was not known about at the time of the budget preparation last year; the method of calculation being first available in July 2005. This sum is greater than previously anticipated.

 

Explanations of these and other variances are included in the Consultation Draft. Overall the revised estimated spending on normal service activities is within original budget. The estimated General Fund balance at 31 March 2006 is almost £2.7m.

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The final settlement for 2006/07 was announced on 6 February 2006.

 

It includes an allowance of some £655k towards the new costs of providing free concessionary fares for elderly and disabled residents' bus travel within the Borough, along with an amount in support of changes to the administration of elections.

 

As well as the Budget and Grant Settlement, other factors 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 2006/07 of 40,035.1 was set by Council on 11 January 2006. The Base has risen by 2.17% from 39,185.7, applicable in 2005/06.

 

 

There is a Collection Fund surplus to share with the major precepting authorities, to reduce the level of Council Tax in 2006/07. Our share is £60,000 and this will contribute towards funding one-off expenditure, 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 County Council, Cheshire Police Authority and Cheshire Fire Authority 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 XIV following this Foreword. Page XV sets out the Parish precepts levied and the additional amounts of Council Tax they represent for Band D properties and page XVI shows aggregate Council Taxes for all areas of the Borough.

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In accordance with the Local Government Act 2003, the Capital Programme must now cover at least three years.  The Programme is included as Section C (cream pages).

 

The Programme shows capital budgets and means of financing, in respect of existing approved, committed projects and also recommended projects for 2006-2010.

 

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The budget estimates incorporate income figures based on the approved Scale of Fees and Charges included in Section D (purple pages).

 

Most price changes are broadly in line with inflation, or are intended to have the effect of achieving an inflationary increase, sustaining income levels in a particular Service area, overall.

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To fully appreciate the implications for setting the Budget and Council Tax, decision making needs to be set into the context of the medium term, as noted in the Revenue Strategy.

 

The financial planning projections in the latest Revenue Strategy clearly demonstrated that there was some scope for growth in 2006/07. The Grant settlement also exceeded our expectations, presenting the Council with a healthy budget position.

 

Based upon the above, the latest Medium Term Financial Projections are shown on page IX. Falling investment income (as the capital resources are used for capital investment) and more modest increases in external support from Government are expected over the following few years. The projections show what degree of action is needed in the medium term, under different scenarios in respect of Council Tax levels.

 

Efficiency savings in train for 2006/07 will have an advantageous full year effect in 2007/08. The Council continues to be required to achieve an efficiency saving in 2007/08 of 2.5% of our total budget; our aim is to exceed this to help ensure future financial stability.

 

 

There are a number of important growth proposals from Service Strategies and Implementation Plans; these are shown in Section E of the Budget Book (white pages towards the end of the document).

 

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).

 

Bids for base budget growth scoring 4 or above are approved, along with all one-off items for 2006/07.

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As mentioned above, the Budget provides for continued service delivery and development in line with the Council's policies and plans. The 2006/07 Revenue Budget is balanced by a Council Tax increase of £3.76 (2.7%) 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)

 

 

28 February 2006