Meeting documents

The Council Executive is asked to agree:

5 THE REPORT

5.1 It is important to be clear on the process to be followed in setting the 2005/06 Budget. The Solicitor to the Council has given the following guidance:

5.2 The Council Executive has the responsibility to prepare and propose a draft Budget to Council for its approval.

5.3 The Council Executive can receive from any political group that so wishes, an alternative budget proposal to that published in the Council Executive agenda papers and will satisfy itself that any such proposals have been discussed with the Council's statutory officers and that an impact statement from Officers about such proposals is available. Any alternative proposal will be formulated so it is prefaced by a standard form of words.

5.4 Therefore all proposals notified to the Council Executive meeting will be cleared with the Section 151 Officer and the Monitoring Officer beforehand. Those Officers will offer advice to Members on the "significance" of any proposals. (See paragraphs 5.7 and 5.8 for the relevance of whether a proposal is, or is not, "significant").

5.5 The Council Executive will formulate a budget proposal and Council Tax recommendation to the Council meeting on 22^nd February, 2005 which may include agreed core proposals and options for allocating parts of the budget.

5.6 The Council has available to it at the budget setting meeting two options. It can object to specific parts of the proposals and if it does so must require the Executive to reconsider its proposals. The Council is required to give the Executive the reason(s) why it considers those proposal(s) should be changed and it is then for the Executive to consider those proposed changes and the reasons put forward. Alternatively it is, of course, open to the Council to accept the budget in its proposed form at the meeting, in which case no further action is necessary.

5.7 Council may then determine the budget on the basis of the Council Executive's recommendation plus any insignificant changes adopted as amendments from any proposals notified at the Council Executive meeting.

5.8 However if a significant proposal is accepted on a vote at Council, from those notified at the Council Executive meeting, this stands as a formal objection within the terms of the Regulations and will be referred to the Leader for him to secure consideration by the Council Executive and report back to the Council meeting on 3^rd March, 2005.

5.9 When the Executive has considered the objections, it is required to put its proposals (which may or may not be revised) back to the Council Meeting. If the Executive does not agree with Council's views on a proposed change, it is required to state why and the Council can then take those reasons into account, along with its original thoughts as to why the change was desirable.

5.10 In setting the budget the Council is required to approve a full budget resolution including the Police, Fire and Parish precepts and the proposed Council revenue and capital budgets for 2005/06. That budget will include within it the overall proposed Council cash limits for 2005/06 including the provision for inflation, the proposed use of balances in the 2005/06 budget and the resulting budget requirement and Council Tax for Bath and North East Somerset including any recommendations for special expenses. At the same meeting the Council will also approve the borrowing limits for 2005/06 and prudential indicators.

5.11 Legally, members must set a balanced budget for the forthcoming year and determine the Council Tax. If a budget is not set by the date of the reserve budget-setting meeting (3rd March), this will lead to a delay in billing and a loss in Council Tax cash flow. It is highly likely that this will also translate into a higher level of un-collectable debt and debt collection costs and in addition this will significantly impact on Council tax performance indicators. A delay until the 3rd March will also compromise the Council's ability to meet our current billing deadlines, and there is a serious risk billing will be delayed also with negative cash flow impacts.

5.12 The final council tax set will encompass all parish, the police and fire precepts (that is the money we collect on behalf of the parishes, fire and police and pay to them).

6 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.

7 RATIONALE

7.1 The rationale for the recommendations is contained in the supporting paper to this report.

8 OTHER OPTIONS CONSIDERED

8.1 The supporting paper and appendices also contain the other options that can be considered in making any recommendations.

9. CONSULTATION

9.1 Meetings have been held with trades unions at each stage of the corporate planning process and within the development of service and resource plans which have fed into this budget.

8.2 The proposals have been issued to representatives of the business community for consultation.

8.3 This report has been sent to trade unions on 1 February 2005. The Council Executive is meeting with trade Union representatives on 4^th February to discuss the budget proposal and Corporate Plan.