Meeting documents
Cabinet
Wednesday, 7th September, 2005
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Bath & North East Somerset Council |
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MEETING: |
Council Executive |
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DATE: |
On 7 September 2005 |
PAPER NUMBER |
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TITLE: |
Financial Planning Process 2005/06 onwards |
EXECUTIVE FORWARD PLAN REFERENCE: |
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EWP |
01003 |
RP |
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WARD: |
All |
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AN OPEN PUBLIC ITEM |
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List of attachments to this report: Appendix 1 - Financial Planning Issues Appendix 2 - Formula Grant Consultation Paper - Exemplification effects of options on B&NES Appendix 3 - Update on Progress on Council's Budget Resolution February 2005 |
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THE ISSUE
This report contains details of the Council's financial planning process, parameters being used & timetable during 2005/06. It contains information concerning the financial issues and pressures facing the Council in 2006/07 and future years and the work being undertaken to meet financial targets.
RECOMMENDATION
The Council Executive is asked to note:
The background and key issues and pressures they will need to take into consideration when recommending a financial plan and budget to Council in February 2005 as set out in Appendix 1.
The Council Executive is asked to agree
The timetable and process for revising the Financial Plan and setting the 2006/07 Revenue and Capital Budget set out in Appendix 4.
The proposed strategic approach as set out in Appendix 1 (Section 4)
Agree to defer consideration of any additional spending on capital schemes unless there is certainty around funding sources for these works.
FINANCIAL IMPLICATIONS
Contained within the report.
THE REPORT
This report sets out to agree the process, parameters & timetable for the financial planning process to revise the Financial Plan and set the 2006/07 budget. Appendix 1 sets out the background to the existing Financial Plan (including the projected deficits recognised at the time of revising the Plan in February 2005), explains issues affecting the Plan and describes the strategic approach adopted by the Executive and Directors' Group to achieve a balanced and robust financial plan. The position faced by the Council remains challenging and uncertain, and it is critical that the Executive is able to maintain financial discipline to underpin the strategic approach.
The financial impacts of various options being proposed by the Government in review of Formula Spending Share (FSS) formulae and overall funding are contained in Appendix 2 (a formal response to these options on behalf of the Council will be considered by the Executive Member for Resources in time for the mid October consultation deadline). Appendix 4 contains the proposed financial planning timetable.
RISK MANAGEMENT
A risk assessment related to the issue and recommendations has been undertaken, in compliance with the Council's decision making risk management guidance.
RATIONALE
This report sets out the current known background and context for the review of the financial plan.
OTHER OPTIONS CONSIDERED
This report contains information about the Council's financial outlook. Alternative options to meet the targets will be considered as part of the service planning and consultation process. Options considered at the time of setting the 2006/07 budget will be concerned with the level of changes to the level of Council tax and the level of services provided by the Council.
CONSULTATION
Has been undertaken with the Executive councillor, Trades unions, Section 151 Finance Officer, Chief Executive, Monitoring Officer, Directors and Heads of Service and Service Finance Representatives.
This consultation has been carried out by e mail
REASONS FOR URGENCY
Not urgent.