Budget consultation 2017/18

This consultation has ended.

Revenue budget

We get funding from Government as well as Council Tax income to support our revenue budget.

Revenue budget is for services like refuse collection, street cleansing, parks, regeneration, tourism services, CCTV etc.  In 2017/18 this funding will be cut by £819,000 (13.5%).

We also face cuts of £176k in respect of New Homes Bonus allocations.  Along with unavoidable cost pressures, this means a funding shortfall of £2,492,000.

The draft budget report presented to Cabinet on Tuesday 17 January proposes:

  • Efficiency and savings proposals of £1,789,000 (further details are set out in Appendix A3)
  • A draw of £500,000 from reserves

This leaves a shortfall of £203,000, which still needed to be identified.  At the meeting Cabinet proposed that this shortfall would be funded from:

  • £100,000 – increase in parking income projections as a result of higher occupancy of the council’s off-street car park
  • £61,000 - Efficiency savings from transformational change (i.e. electronic rather than face to face service delivery and contact) which will bring the overall savings target for transformational change to £120k in 2017/18
  • £42,000 – Home Improvement Agency efficiencies as a result of administering a higher level of Disabled Facility Grants (DFGs)

Investment in priorities

The draft budget makes provision for the following areas of ongoing investment:

  • Increased contributions to capital and borrowing costs - £192,000
  • Annual contribution to the Local Enterprise Partnership - £15,000
  • Funding to address seagull issues across the borough - £36,000

Additional information on each of the proposals above is outlined within Appendix A2.1.

Investment fund

The 2016 financial strategy established an investment fund to provide one-off funding for schemes that will help us deliver revenue savings in 2016/17 and beyond.

The authority to approve expenditure from the investment fund is delegated to the director’s team in consultation with the portfolio holder for Finance, Legal and ICT.

The following indicative funding bids have been, or will likely be, funded from the reserve over the 2016/17 and 2017/18 financial years:

  • Transformational training / equipment and resources - £30,000
  • Public conveniences review - £250,000
  • MOT facilities at Dean Road depot garage - £80,000
  • 'In Cab' devices for refuse freighters - £55,000
  • Fleet management system and implementation - £105,000
  • External support for the review of Dean Road / Manor Road depot facilities - £25,000
  • Essential works at the crematorium - £17,000
  • Draw from fund to balance 2017/18 Budget - £500,000

Future expenditure from the investment fund will be driven by our transformation and savings programme.

Council tax

Council Tax provides a core source of funding for the delivery of council services. The draft budget report proposes:

  • a Council Tax increase of 2.31%. This would equate, for example, to an increase of £5.00 (or 10 pence per week) for a Band D property for the 2017/18 year

This is the maximum amount that we are increase Council Tax without holding a costly referendum. This would be only the second Council Tax increase for this council since 2010.  The increase would generate additional funding of £185,000 per year to maintain our services and would result in the following charges: 

Band
 
2016/17
£
2.31% Increase
2017/18
Increase
£
£
A
144.21
147.54
3.33
B
168.24
172.13
3.89
C
192.28
196.72
4.44
D
216.31
221.31
5.00
E
264.38
270.49
6.11
F
312.45
319.67
7.22
G
360.52
368.85
8.33
H
432.62
442.62
10.00

Capital budget

The capital budget funds schemes and investment which will derive a long term benefit for the borough. Capital expenditure is funded from the sale of land and assets, borrowing and annual contributions from the revenue budget.

The draft budget report proposes that capital funding will be earmarked for the following priority schemes in 2017/18:

  • Town Centre Resurfacing - £26,000
  • South Cliff Gardens - £90,000
  • Peasholm Lake de-silting - £251,000
  • Khyber Pass toilets - £70,000
  • Royal Albert Drive property demolition - £30,000
  • Peasholm essential works - £20,000
  • Scarborough Business Park road adoption costs - £50,000

Further details on all of these schemes are included within Appendix B.

Unfunded priority schemes

Funding available to progress one-off priorities and capital schemes is diminishing and demand for resources significantly outweighs the funding available. Given the pressures on the revenue budget it is essential that the Council does not over commit its capital resources and there is currently insufficient funding to progress the following schemes:

  1. Essential works at Peasholm (required to maintain income streams)
  2. Priority works at the Crematorium (required to maintain income streams)
  3. Additional contributions to Coast Protection works
  4. Cemetery provision
  5. Town Hall Civic asset management works

Appendix B provides further details on the above schemes as well as some potential funding sources that may become available in the coming months.  At present the funding sources are uncertain or cannot be quantified therefore cannot be committed, however it is proposed that a mid-year budget report be prepared as and when the amounts can be confirmed.

Any available monies, along with future surplus capital receipts, will be allocated to progress the schemes in the above order of priority (with 1 being classed the highest priority).  

We would like your feedback on these proposals before they go for approval in February 2017. 

Additional details on the Draft Revenue Budget for 2017/18 are included within the appendix.  

AttachmentSize
PDF icon Appendix A.pdf431.27 KB
PDF icon Appendix B.pdf189.34 KB