BUDGET AND COUNCIL TAX CONSULTATION 2010/11

1. BUDGET AND COUNCIL TAX CONSULTATION 2010/11 Chairman - Councillor Peter Halliday (Finance Portfolio Holder) Presented by - Richard Barrett (Deputy Head of Financial Services) In Attendance: • Councillor Neil Stock (Executive Leader) • John Hawkins (Chief Executive) • Karen Neath (Head of Financial Services) Audience • Representatives of Business Rate Payers • Community and Voluntary Groups

2. PURPOSE OF MEETING Present initial budget proposals for discussion / consultation with outcomes forming part of Cabinet’s consideration of their final budget proposals to full Council in February

3. Presentation Outline • Quick Look Back to Last Year • Context and Approach to Setting the 2010/11 Budget • Revenue Budget Summary 2010/11 and Key Changes • Capital Programme Summary 2010/11 and Key Changes • Approach to 2011/12 and beyond

4. Financial Strategy and Budgets Quick look back to 2009/10 • Financial risk based approach including cost pressures and addressing other upcoming financial challenges • Government continued with Council Tax ‘capping’ powers • 4.0% Council Tax increase for Tendring District Council • 2nd Lowest Council Tax in Essex (including parish precepts) • Budget included in excess of £1m of one-off funding / investment in the district

5. Quick look back to 2009/10 Revenue Expenditure (incl. Housing & Parish Precepts) £101.459m General Fund Revenue Expenditure £88.466m Capital Expenditure £7.363m Budget Requirement £21.613m Budget Requirement met by Council Tax £7.622m BAND D INCREASE OF TENDRING DISTRICT COUNCIL £149.88 4.0% PARISHES £27.22 -1.4% ESSEX COUNTY COUNCIL £1066.50 1.9% FIRE AUTHORITY £64.62 3.8% POLICE AUTHORITY £128.25 4.9% TOTAL AVERAGE COUNCIL TAX £1,436.47 2.4% inc

6. Last Years Budget Consultation – Update on some key points raised “With regard to Jaywick things seem to be stagnant. When will action be taken? When will the residents in Jaywick be made aware of what is going on?” • Establishment of Jaywick Strategic Leadership Group • 15 year regeneration plan / working with the Community - Determined to deliver improvements in the short term “Sea defences are important for the future. In the long term how do we ensure financially that we don’t let the issues slip? How do we focus the funding we do have?” • All opportunities to ‘lobby’ government for additional funding for all areas of the Tendring coast are identified and pursued whenever possible. • Significant grant funded work for various seafront areas included in the capital programme in 2009/10 and 2010/11 • TDC successful in obtaining coastal pathfinder funding to explore new approaches to plan for and manage adaptation to coastal change in partnership with their communities

7. Last Years Budget Consultation – Update on some key points raised “How much of the small schemes budget has been spent by Members?” • £0.055m in 2008/09 • £0.077m to date in 2009/10 • Full details published on the Council’s website “LABGI is changing in the forthcoming year. Does the Council have any figures and will this funding be directed towards economic projects?” • TDC received £0.061m in 2009/10 to support the overall budget which includes investment in regeneration and economic development. • No figures announced yet for 2010/11

8. Last Years Budget Consultation – Update on some key points raised “Up to now we have been eligible for business rates transitional relief. This is now ending and this will cause us severe problems.” • Local Business Summit held • Prompt payment Code • Discretionary Rate Reliefs / Small Business Rate Relief “There were not enough charity stands at the late night shopping event. These are being charged £100 at big events. I have also seen a stand selling guns and knives” • Chamber of Commerce who organise the late night shopping event informed about issue regarding charity stands • Trading Standards informed of issue regarding the selling of guns and knives

9. FINANCIAL STRATEGY OVERVIEW 2010/11 • National issues impacting on Financial Strategy • Recession (National and Global Economies) • Slow down in housing and property market • Falling Interest Rates • Volatility in income budgets • Volatility in expenditure budgets such as energy costs • RPI / Contract Costs • External Funding Streams • Pressures from future Comprehensive spending reviews / Government Financial Settlements

10. FINANCIAL STRATEGY OVERVIEW 2010/11 • Local issues impacting on Financial Strategy • Low council tax base and wide service base over wide geographical area including coastal infrastructure • Cost pressures continually emerging and have been excluded in the past • Inflationary pressures • New responsibilities / changing legislation • Some of the most deprived wards in the Country are within the district

11. FINANCIAL STRATEGY OVERVIEW 2010/11 • Very challenging public sector financial environment in the next few years and beyond • Need to recognise the affect this will have on the Council’s finances and its ability to deliver services and take action in advance • Any additional resources set aside to support the budget in future years or where appropriate to support prioritised expenditure • Reviewing and challenging individual budgets to release resources where possible

12. BUDGET PROPOSALS 2010/11

13. BUDGET PROPOSALS 2010/11

14. BUDGET PROPOSALS 2010/11 USE OF EARMARKED RESERVES TO SUPPORT BUDGET POSITION Earmarked Reserves £0.015m Commitments Reserve £0.101m Uncommitted Reserves £nil TOTAL £0.116m ____________________ March10 March11 Est. Total Earmarked Reserves Remaining £3.065m £2.950m Est. Total Uncommitted Reserves Remaining £3.900m £3.900m TOTAL RESERVES £6.966m £6.850m

15. BUDGET PROPOSALS 2010/11 Service Improvement Budget 0.255

16. BUDGET PROPOSALS 2010/11 • In November 2009 the Minister of State for Local Government confirmed the provisional grant settlements for 2010/11 for consultation. Final announcements are expected sometime in January • The Government are prepared to take capping action against excessive increases set by individual Authorities in 2010/11 • The Government’s expectation is that Council Tax levels should be lower than the national average of 3% last year.

17. PROPOSED CAPITAL PROGRAMME 2010/11

18. PROPOSED CAPITAL PROGRAMME 2010/11

19. RISKS AND RESERVES 2010/11 • Risks within the strategy • Unfunded / Emerging Cost Pressures • Volatility in Income • Inflation, interest and pay award • New Responsibilities • Mitigate against these risks • Sustainable Use of Reserves • Alternative Responses

20. FINALISATION OF BUDGET PROCESS 2010/11 • 15 AND 18 JANUARY 2010 – REVIEW OF THE BUDGET BY CORPORATE MANAGEMENT COMMITTEE – Detailed budget proposals considered and comments fed back to Cabinet • 3 FEBRUARY 2010 - CABINET CONSIDER AND RECOMMEND FINAL FINANCIAL STRATEGY AND BUDGET TO COUNCIL – Takes into account consideration of comments from Corporate Management Committee and from today’s meeting • 18 FEBRUARY 2010 – COUNCIL CONSIDER FOR APPROVAL THE BUDGET PROPOSALS AND LEVEL OF COUNCIL TAX

21. FINANCIAL STRATEGY 2011/12 AND BEYOND • Revised Financial Strategy forecasts potential funding ‘gaps’ in the medium term of - £1.304m for 2011/12 (assuming no increase in Government Grant) £0.824m for 2012/13 £0.795m for 2013/14 £0.790m for 2014/15 • Outlook for Public Sector Financial Environment and Settlement from the Government • There are unfunded cost pressures and additional cost pressures likely to emerge along with additional responsibilities that may be placed on the Council • Continuation of the Financial Strategy process – Priority and Risk Based • Continually challenge and review what services we deliver and how we deliver them • Identify and maximise value for money opportunities

22. AND FINALLY….. COMMENTS AND QUESTIONS

23. CONTACT DETAILS Karen Neath Head of Financial Services Email: kneath@tendringdc.gov.uk Richard Barrett Deputy Head of Financial Services Email: rbarrett@tendringdc.gov.uk