In preparing the Budget for 2007/08, 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 21 February 2007, the Council approved budgets for its General Revenue Account services in 2007/08 and a Capital Programme for 2007/08-2011.

 

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

 

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

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

·         Section C - Capital Programme (Cream pages)

·         Section D - Scale of Fees and Charges (Purple pages)

·         Section E - Service Strategies Approved Growth and One-off Special Items (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 2007/08.

 

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 of £141.50 for the year for a Band D property.

 

 

With respect to the revised position for the current year, 2006/07, the expected transfer to balances is some £104k compared with the originally budgeted transfer from balances of £21k.

 

This is mainly due to investment receipts (following interest rate rises) and various other changes to the current year expenditure, as noted in budget monitoring reports through the year. The estimated General Fund balance at 31 March 2007 is £2.87m.

 

At the time of writing, the Government has just announced the Local Authority Business Growth Incentive (LABGI) scheme grants for 2006/07. In this second year of a three-year initiative, the Council will receive £1,130,027. Members will be considering how best to utilise this "one-off" money, in due course.

 

 

The Government's Formula Grant distribution system has yielded a Grant of £9.327m for 2007/08. This provides a 3.9% increase, when compared to the adjusted 2006/07 amount (the Government's preferred comparison), or rather £246,000 in cash terms a 2.7% increase.

 

The table below sets out the three sets of data for Crewe & Nantwich:

 

 

 

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 2007/08 of 40,555.2 was set by Council on the 13^th December 2006. This represents an increase of 1.3% and includes 103.8 Band D equivalent properties as a result of the new policy in respect of second homes taxation.

 

 

There is a Collection Fund surplus to share with the major precepting authorities, to reduce the level of Council Tax in 2007/08; our share is £53,450.

 

 

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.

 

 

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 new projects approved for 2007-2011.

 

 

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.

 

 

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 latest Medium Term Financial Projections are shown on page XI. They take into account decisions made on growth items for 2007/08 (see below) and investment income forecasts have been updated, in the light of the trend towards increases in base rates and the estimated timing of capital expenditure.

 

The projections illustrate the effects of relatively lower Service income (e.g. following the end of specific, short-term grants), reducing investment income (as capital resources are used for capital investment) and modest increases in external support from Government, as estimated for the coming years.

 

It is recognised that efficiency savings already realised have eased the position for 2007/08 and further approved Base Budgets Reductions are listed in Section F. Our aim is to continue to ensure future financial sustainability by achieving further budget efficiency savings and several areas of search have been identified for progression in 2007/08.

 

 

There are a number of important growth items 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).

 

The first call on base budget resources will be to fund the cost increases in employees' remuneration, following the Job Evaluation exercise; latest estimates are shown here. Other approved base budget changes have been afforded by the budget reductions made, as shown in Section F.

 

A number of one-off items can be afforded because the level of the General Fund balance exceeds the risk-assessed ceiling approved by the Council. Approved items, including the estimated back-pay as a result of the Job evaluation exercise, are funded principally from a transfer from reserves.

 

 

As mentioned above, the Budget provides for continued service delivery and development in line with the Council's policies and plans. The 2007/08 Revenue Budget is balanced by a Council Tax of £141.50 for the year, for a Band D property.

 

A medium term strategy has been set of maintaining annual increases in Council Tax of no more than the rate of inflation and of developing further efficiency gains to ensure the Council continues to maintain a sustainable budget position.

 

 

Executive Director (Treasury & Corporate Support)

 

 

28 February 2007