Agenda item

To consider a report from the Treasurer regarding the budget and precept requirements for 2018/19.

The Authority considered a report from the Treasurer regarding the budget and precept requirement for 2018/19.

An addendum was circulated, which updated some of the figures in the report and recommendations, and this was agreed by the Authority. The Treasurer went through the report and highlighted the favourable position of the Authority. The addendum was confirmed as follows:

Changes in the Budget

Paragraph 39 of the main report outlines the key changes to the forecast position as outlined in the latest Medium Term Financial Plan, which has been updated to reflect changes in Business Rate collection Fund figures as follows:

Council Tax

There are no changes to the proposed council tax increase of 2.98% which would increase HFRA’s Band D council tax to £65.74 for 2018/19, an increase of £1.90 from the previous year.

Precept

The table overleaf shows the precept funding due from each precepting authority for the year 2018/19, following confirmation of the final council tax bases of East Hampshire District Council and Havant Borough Council.

Basingstoke and Deane Borough Council                       £4,212,948

East Hampshire District Council                                         £3,251,471

Eastleigh Borough Council                                                  £2,945,544

Fareham Borough Council                                                  £2,800,872

Gosport Borough Council                                                     £1,743,747

Hart District Council                                                               £2,655,396

Havant Borough Council                                                      £2,675,881

New Forest District Council                                                  £4,642,625

Portsmouth City Council                                                       £3,672,065

Rushmoor Borough Council                                                £2,036,059

Southampton City Council                                                   £4,230,040

Test Valley Borough Council                                               £3,160,713

Winchester City Council                                                       £3,181,152

Total                                                                                       £41,208,515

Business Rates

Following confirmation from Havant Borough Council and East Hampshire District Council, the budget for locally retained business rates has been confirmed at £7,037,344 and Section 31 Grant has been confirmed at £721,631.

Revenue Contribution to Capital

Following the adjustments to precept and business rates, the amount available to contribute to capital reserves in 2018/19 is £3.699m, which is £205,600 lower than the full requirement.  This is line with the strategy that any remaining budget gap would be closed by reducing the revenue contribution to capital.

The following addendum applied to the appendices supporting the report:

Members were happy with the updates to the report and new recommendations.

RESOLVED:

A)      That the revenue budget as set out in Annex 1 to this addendum be approved by Hampshire Fire and Rescue Authority.

B)      That the Capital Programme as set out in Appendix D and the funding of this as set out in Appendix E be approved by Hampshire Fire and Rescue Authority.

C)     That if any minor technical changes are required to the budget, the Chief Financial Officer in consultation with the Chief Fire Officer and the Chairman of the Authority is given delegated authority to reflect the actual position in the budget, particularly in relation to the Precept and Business Rates for East Hampshire District Council and Havant Borough Council.

D)     That the Treasury Management Strategy and Annual Investment Strategy for 2018/19 and set out in section 51 and Appendix F of item 7 of the main agenda be approved by Hampshire Fire and Rescue Authority:-

Treasury Management Strategy and Annual Investment Strategy for 2018/19, (and the remainder of 2017/18) including:

(i) Prudential Indicators for 2018/19, 2019/20 and 2020/21 – Annex C

(ii) Minimum Revenue Provision (MRP) Statement – Annex D

E)      That authority is delegated to the Treasurer to manage the Fire & Rescue Authority’s investments according to the risk assessment process in the Investment Strategy as appropriate.

F)      That the budget requirement for the general expenses of the Authority for the year beginning 1^st April 2018 of £64,727,000 be approved by Hampshire Fire and Rescue Authority.

G)     That the council tax requirement for the Authority for the year beginning 1^st April 2018 of £41,208,515 be approved by Hampshire Fire and Rescue Authority.

H)     That the Authority’s tax be increased by 2.98% for the year beginning 1st  April 2018 and for the properties in each band, as set out in section 21 of item 7 of the main agenda, be approved by Hampshire Fire and Rescue Authority :

Band A: £43.83                    Band E: £80.35

Band B: £51.13                    Band F: £94.96

Band C: £58.44                    Band G: £109.57

Band D: £65.74                    Band H: £131.48

I)       That the precepts set out above, totalling £41,208,515 are issued on the billing authorities in Hampshire, requiring the payment in such instalments and on such dates set by them and previously notified to the Authority, in proportion to the tax base of each billing authority’s area as determined by them.

J)      That in accordance with the set of principles set by the Secretary of State for Housing, Communities and Local Government for the year, it is determined that the relevant basic amount of council tax for 2018/19 is not excessive