Agenda item

Report of the Chamberlain.

Members considered a report of the Chamberlain in respect of the City Fund Budget and Medium Term Financial Strategy.  The report presented the overall financial position of the City Fund (i.e. the City Corporation’s finances relating to Local Government, Police and Port Health services).

RESOLVED, that:

1)      Following the Finance Committee’s consideration of this City Fund report, the Court of Common Council be recommended to:

a.    Confirm a funding commitment of £5.4m from City Fund for 67 additional police officer posts on the understanding that early progress will be made on shared services and that any underspend will be applied to not delaying the repayment of the Action Fraud loan in 2020/21.

b.    Agree to fund the rental costs of Middlesex Street carpark on behalf of CoLP (paragraph 29).

c.     Approve the overall financial framework and the revised Medium-Term Financial Strategy (paragraph 29).

d.    Approve the Treasury Management Strategy Statement and Annual Investment Strategy for 2020/21 (appendix E).

e.    Approve the treasury indicators including the operational boundary and authorised limit for external borrowing as stated in the Treasury Management Strategy Statement and Annual Investment Strategy for 2020/21 (paragraph 75).

f.      Approve the City Fund Net Budget Requirement of £137.8m (paragraph 46).

g.    Approve the increases in base budget detailed in appendix B for 2020/21, included within the City Fund budget requirement.

h.    Note that the forecast includes items already agreed by Policy and Resources Committee detailed in appendix B.

i.      Note that the revenue estimates assume that a Business Rates reset will remove the City’s recent business rates growth receipts in 2021/22 (forecast at £35m in 2019/20) and further reforms of Business Rates could further worsen the impact from 2021/22.

j.      Note that the Local Council Tax Reduction Scheme will remain the same as set by the Court of Common Council on 12 January 2017 (paragraph 68).

2.   The following key decisions in setting the levels of Council Tax and Non- Domestic rates be recommended to the Court of Common Council;

a)  Council Tax

                   i.    To consider an increase of 1.99% in the City of London Corporation element of the Council Tax Demand (paragraph 23).

                 ii.    To approve an increase in the Adult Social Care Precept of 2.00% (paragraph 23).

                iii.    Determine the amounts of Council Tax for the three areas of the City (the City, the Middle Temple and the Inner Temple) to which are added the precept of the Greater London Authority (GLA) as set out in appendix A.

                iv.    Determine that the relevant (net of local precepts and levies) basic amount of Council Tax for 2020/21 will not be excessive in relation to the requirements for referendum.

                 v.    Determine, the discount awarded to unoccupied and unfurnished and uninhabitable dwellings is continued at zero (0%) for the financial year 2020/21.

               vi.    Determine that the premium levied on long-term empty property for 2020/21   of 100% is continued and that for properties that have been empty for over five years, a premium of 200% is levied.

              vii.    It is recommended that, having regard to the government guidance issued, the Chamberlain be given the discretion, delegated to the Head of Revenues, to reduce or waive the long-term empty premium charge in exceptional circumstances.

             viii.    Approve that the cost of highways, street cleansing, waste collection and disposal, drains and sewers, and road safety functions for 2020/21 be treated as special expenses to be borne by the City’s residents outside the Temples (appendix A).

b)       Business Rates

      i.         Set a Non Domestic Rate multiplier of 52p and a Small Business Non-Domestic Rate Multiplier Rate of 50.7p for 2020/21, inclusive of a Business Rates Premium increase of 0.2p to 0.8p in the £ (paragraph 50).

     ii.         Note that, in addition, the GLA is levying a Business Rate Supplement in 2020/21 of 2.0p in the £ on properties with a rateable value of £70,000 and above (paragraph 55).

    iii.         Delegate to the Chamberlain the award of discretionary rate reliefs under Section 47 of the Local Government Finance Act 1988 (paragraph 51).

   iv.         The City Corporation will participate in the 2020/21 London Business Rate Pool with the Greater London Authority and the London borough councils.

     v.         The City Corporation will act as Lead Authority for the 2020/21 London Business Rate Pool.

c)       Capital Expenditure

      i.         Note the proposed financing methodology of the capital programme in 2020/21 (paragraph 71).

     ii.         Approve the Capital Strategy (Appendix F).

    iii.         Approve the Capital Budgets for City Fund (paragraph 72).

   iv.         Approve the allocation of central funding from the appropriate reserves to meet the cost of the 2020/21 new bids together with central funding for the remaining projects previously agreed for progression outside of the Fundamental Review – release of funding being subject to approval at the relevant gateway and specific agreement of the Resource Allocation Sub Committee at gateway 4(a)

     v.         Approve the allocation of central funding in 2020/21 to provide internal loan facilities for police and the HRA, currently estimated at £4.2m and £22m respectively.

   vi.         Approve the Prudential Code indicators (Appendix D).

  vii.         Approve the following resolutions for the purpose of the Local Government Act 2003 (paragraph 73 and Appendix E):

o   The authorised limit for external debt (which is the maximum the City Fund may have outstanding by way of external borrowing) is £192.1m for 2020/21.

o   The prudent amount of Minimum Revenue Provision (MRP) for 2020/21 is £0.979m (appendix E).

Treasury Management Strategy Statement and Investment Strategy Statement 2019/20 (Appendix E)

Agree to change the limit on the maximum total principal sums invested for periods longer than one year from £300m to £500m and the limit on the maximum overall amount of non-specified investments from £300m to £500m.

Chamberlain’s Assessment

Take account of the Chamberlain’s assessment of the robustness of estimates and the adequacy of reserves and contingencies (paragraphs 78-81 and Appendix C).