COUNCIL TAX There is a statutory requirement for the Council Tax for 2015/16 to be set before 11th March 2015.

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1 Agenda Item No. 10 COUNCIL - 12 FEBRUARY 2015 COUNCIL TA Summary The Executive has considered the draft service plans and budgets and the overall Council Tax requirement for 2015/16 and has recommended their approval. Minutes 4 to 7 of the Executive meeting on 5 February 2015 refer. Surrey County Council and the Office of the Surrey Police and Crime Commissioner have determined their requirements and the final precepts have been levied. The total of the precepts from Surrey County Council, Surrey Police and Crime Commissioner, and the budget required for the Borough s purposes result in a Band D Council Tax of 1, in 2015/16. The draft formal resolution is attached at Appendix 2. There is a statutory requirement for the Council Tax for 2015/16 to be set before 11th March Reasons for Decision To set the Council Tax for 2015/16. Recommendations The Council is requested to: RESOLVE in accordance with the recommendations of the Executive and the draft Council Tax resolution set out at Appendix 2 to the report. The Council has authority to determine the recommendations above. Background Papers: Precept decisions of Surrey County Council and Surrey Police and Crime Commissioner Finance Settlement figures Sustainability Impact Assessment Equalities Impact Assessment Reporting Person: Leigh Clarke, Financial Services Manager Ext. 3277, E Mail: Contact Person: Leigh Clarke, Financial Services Manager Ext. 3277, E Mail: 1 WBC15-119

2 Portfolio Holder: Cllr John Kingsbury E Mail: Date Published: 12 February

3 1.0 Introduction 1.1 The Executive at its meeting on 5 February 2015 made recommendations in respect of the Budget for 2015/ Following the Council s decision in respect of these recommendations, this report sets out the details necessary for the Council to determine the Council Tax level for 2015/ General Fund Budget 2015/ The General Fund Summary and the summary revenue estimates for the People, Place and Us Programme requirements, together with the Housing Revenue Account Summary, are attached at Appendix The total amount, the council tax requirement, to be met from local taxation in 2015/16 for Woking Borough purposes is 8,532, Efficiencies and cost reductions 2015/ The year on year change in the precept on the Collection Fund, after taking into account Woking s share of the collection fund surplus is an increase of 317,252. This can be explained as follows: 000 Increased obligations and cost pressures: Inflation and increases to service costs 1,261 Reductions in Government grants and subsidies 542 Increased Asset Financing Costs 231 Reductions in other income 237 Increased transfer to reserves 324 2,595 Offset by: Increased income 1,184 Cost reductions 736 Increased contribution from the Collection Fund One of the ways the Council has achieved setting a balanced budget has been through identifying efficiency improvements, cost reductions and additional income of almost 2 million for 2015/ External Finance 2015/ The Government has determined that the following amounts will be receivable in 2015/16 as part of the Final Settlement Funding Assessment (SFA). Settlement Funding Assessment 3,419,950 Local Retention of Business Rates 1,937,428 Revenue Support Grant 1,482,522 3,419,950 3

4 5.0 Collection Fund Surplus 5.1 The Council s share of the collection fund surplus as at 31 March 2015 in respect of Council Tax is 80,668. The budget includes an expected surplus relating to retained Business Rates of 300, Council Tax Tax Base 2015/ It should be noted that the Chief Finance Officer, in accordance with the authority delegated at a meeting of Council on the 6 December 2012 has calculated the Council Tax tax base for 2015/16 for the Borough of Woking to be 39, Borough Council Tax at Band D 7.1 In 2014/15 the Borough element of the Council Tax is at Band D. 7.2 For 2015/16 the Borough element of the Council Tax at Band D, as recommended by the Executive, is , representing a 1.9% increase in Council Tax from 2014/15. The 2015/16 tax has been calculated as follows: Total amount to be met from local taxation and Government Grants for Woking Borough Council 12,033,295 Less External Finance - Local Retention of Business Rates (NNDR) 1,937,428 - Revenue Support Grant (RSG) 1,482,522 3,419,950 Less Council Tax Collection Fund surplus 80,668 Net Council Tax requirement for Borough purposes 8,532,677 Council Tax tax base for the Borough 39, Borough element of Council Tax at Band D (Net Council Tax requirement for Borough purposes divided by the Council Tax tax base for the Borough) 8.0 Surrey County Council Requirements 2015/ Surrey County Council has determined its requirements for 2015/16 at a meeting on 10 February 2015 and has levied a precept of 48,001, on the Borough. The resultant Band D Council Tax for Surrey County Council purposes is therefore 1,219.68, compared with 1, for 2014/ Surrey Police and Crime Commissioner Requirements 2015/ The Surrey Police and Crime Commissioner has determined his requirements for 2015/16 at a meeting on 5 February 2015 and has levied a precept of 8,496, on the Borough. The resultant Band D Council Tax for the Surrey Police and Crime Commissioners purposes is therefore compared with for 2014/15. 4

5 10.0 Composite Council Tax 2015/ The Band D Council Tax for 2015/16, compared with 2014/15 is set out below: 2014/ /16 Increase Actual Proposed Purposes of: % Surrey County Council 1, , Surrey Police and Crime Commissioner Woking Borough Council Composite Council Tax 2015/16 1, , The Council Tax for 2015/16, across all bands, may be summarised as follows: Band Purpose of Surrey CC Purpose of Surrey Police and Crime Commissioner Purpose of Woking BC Total A , B , C 1, , D 1, , E 1, , F 1, , G 2, , H 2, , The formal resolution to give effect to the Council Tax is set out at Appendix Implications Financial 11.1 The financial implications are explicit in the report. Human Resource/Training and Development 11.2 There are no human resource or training and development implications arising from the recommendations in this report. Community Safety 11.3 There are no Community Safety implications arising from this report. Risk Management 11.4 The budget includes a risk contingency of 500,000. There are a number of areas of risks which have been reported to the Executive, and these areas will be closely monitored during the year. 5

6 Sustainability 11.5 There are no Sustainability implications arising from the recommendations in this report. Equalities 11.6 There are no Equalities implications arising from the recommendations in this report. REPORT ENDS 6

7 APPENDICES 7

8 8 Council Tax

9 APPENDI 1 GENERAL FUND SUMMARY ESTIMATE ESTIMATE 2014/ /16 TOTAL PROGRAMME REQUIREMENTS 10,301,940 8,807,848 Productivity Savings -372, ,693 PROGRAMME REQUIREMENTS AND SAVINGS TARGETS 9,929,614 8,310,155 Management of Change 500, ,000 Risk Contingency 500, ,000 New Homes Bonus -1,309,000-1,528,514 Business Rates Surrey Pool -300,000 Other Government Funding -84,000 0 PFI Unitary Charge and management 175,000 Investment Programme items funded from revenue 316, ,000 NET COST OF SERVICES 9,852,614 8,062,641 INTEREST AND OTHER ITEMS - Interest costs 12,993,502 13,914,038 - Interest and Investment Income -7,187,961-7,877,916 NET OPERATING EPENDITURE 15,658,155 14,098,763 USE OF RESERVES/BALANCES - Contribution to Investment Strategy Reserve 803,768 1,402,017 - New Homes Bonus transferred to Reserve 505,000 1,024,514 - Contribution from Capital Reserves -3,868,523-3,585,999 - Contribution from Reserves - Management of Change -500, ,000 - Contribution from Reserves - Risk Contingency Contribution from Reserves - IP items funded from revenue -316, ,000 AMOUNTS TO BE MET FROM LOCAL TAATION AND GOVERNMENT GRANTS 12,282,400 12,033,295 ETERNAL FINANCE - SETTLEMENT FUNDING ASSESSMENT -4,044,345-3,419,950 PRECEPT ON COLLECTION FUND 8,238,055 8,613,345 FORECAST COUNCIL TA LEVEL Precept on Collection Fund (from above) 8,238,055 8,613,345 Woking share of Collection Fund Surplus(-)/Deficit -22,630-80,668 8,215,425 8,532,677 Council Tax Taxbase 38,614 39,356 Council Tax Requirement ( ) Year on year increase ( ) Year on year increase (%) 1.9% 1.9% 9 WBC15-119

10 PEOPLE SUMMARY REVENUE ESTIMATES ORIGINAL LATEST ORIGINAL ESTIMATE ESTIMATE ESTIMATE 2014/ / /16 Health and Wellbeing Health and Wellbeing No Specific Budgets Health and Wellbeing Development 364, , ,840 Leisure Centre and Pool in the Park 2,120,904 2,120,904 1,835,754 Cultural and Community Development 2,593,129 2,593,129 2,743,197 General Community Services Functions No Specific Budgets 5,078,150 5,039,540 4,942,791 Community Support Community Safety 477, , ,334 Customer Care No Specific Budgets Local Land Charges/Searches -100, ,981-74,506 Housing Benefit and Council Tax Local Support 221, , ,317 Grants to Voluntary and Community Organisations 850, , ,959 Centres for the Community 726, , ,667 Family Support Programme 178, , ,969 2,353,633 2,390,023 2,651,740 Regulation Licensing 57,187 57,187 44,909 Taxi & Private Hire Licensing 32,033 32,033 44,197 Environmental Control 282, , ,098 Food And Health & Safety 251, , , , , ,120 Housing Strategy and Enabling Housing Needs, Strategy and Enabling 1,280,966 1,280,966 1,292,758 Homelink and Private Sector Housing 261, , ,502 1,542,658 1,542,658 1,544,260 Independent Living Careline -100, , ,159 Community Meals 281, , ,063 Brockhill Extra Care 53,932 53, , , , ,535 NET EPENDITURE 9,832,711 9,830,491 10,020,446 10

11 PLACE SUMMARY REVENUE ESTIMATES ORIGINAL LATEST ORIGINAL ESTIMATE ESTIMATE ESTIMATE 2014/ / /16 Place Shaping Planning Implementation 885, , ,906 Planning Policy 365, , ,057 Building Control 122, , ,310 1,372,906 1,372,906 1,360,273 Environment and Sustainability Environment and Sustainability 167, , ,681 Climate Change/Strategy 134, , ,974 Removal of Untaxed and Abandoned Vehicles 44,940 44,940 43,528 Waste and Recycling 1,486,244 1,486,244 1,426,629 Environmental Maintenance Contract 1,842,492 1,842,492 1,858,206 Cesspool Emptying No Specific Budgets 3,676,039 3,676,039 3,622,018 Promoting the Borough and the Local Economy Parking Services -2,931,617-2,931,617-3,679,393 Promoting the Local Economy 304, , ,899 Public Conveniences 330, , ,838 H G Wells Conference and Events Centre 102, ,252 63,580 Marketing Communications 262, , ,107-1,931,815-1,932,546-2,749,969 NET EPENDITURE 3,117,130 3,116,399 2,232,322 11

12 US SUMMARY REVENUE ESTIMATES Corporate Planning and Policy Corporate Planning and Policy Corporate Financial Planning and Policy ORIGINAL LATEST ORIGINAL ESTIMATE ESTIMATE ESTIMATE 2014/ / /16 No Specific Budgets No Specific Budgets Corporate and Democratic Processes Corporate Management and Members' Services 3,820,979 3,820,979 3,752,839 Elections and Electoral Registration 472, , ,830 Civic Functions and Expenses 238, , ,581 4,532,268 4,532,268 4,460,250 Resources Revenues (Council Tax & Business Rates) 804, , ,729 Information Communication Technology No Specific Budgets Asset Management -7,984,936-7,984,936-8,382,899 Corporate Employer No Specific Budgets -7,180,169-7,180,169-7,905,170 NET EPENDITURE -2,647,901-2,647,901-3,444,920 12

13 HOUSING REVENUE ACCOUNT ORIGINAL ORIGINAL ESTIMATE 2014/15 ESTIMATE 2015/16 EPENDITURE SUPERVISION & MANAGEMENT Estate Management 5,309,073 5,280,464 Rent Accounting/Collection -2,352-2,379 Home Support Service 831, ,805 Tenant Participation 38,150 37,302 Repairs Admin (inc Building Works net cost) 238, ,921 Democratic Process 984, ,702 Management & Admin Saving 7,400,105 7,370,815 MAJOR REPAIRS CONTRIBUTION 3,958,758 4,006,264 MAINTENANCE Day to Day Repairs 814, ,463 Revenue Voids 310, ,000 Planned Maintenance 569,124 1,693, ,278 1,804,741 Subsidy Limitation 0 0 Debt Management Expenses 36,000 36,000 TOTAL EPENDITURE 13,088,709 13,217,820 INCOME GROSS RENTS & SERVICE CHARGES 20,255,894 19,896,576 LESS ADDITIONAL BAD DEBT PROVISION -90,982 0 (Including Provision For Bad Debt Under Welfare Reform) INTEREST COUNCIL HOUSE MORTGAGES 1,149 1,149 TOTAL INCOME 20,166,061 19,897,725 NET (COST)/SURPLUS OF SERVICES 7,077,351 6,679,905 Interest Payable and Similar Charges 4,709,506 4,547,966 Amortisation of Premiums and Discounts 29,736 29,817 Revenue Contribution to Capital Outlay 1,895,622 1,895,622 Surplus (Deficit) for Year 442, ,500 WORKING BALANCE STATEMENT Surplus (Deficit) brought forward 507, ,333 Surplus (Deficit) for Year 442, ,500 Interest on Working Balances 2,584 1,230 Surplus (Deficit) carried forward 952, ,063 TRANSFER TO (FROM) RESERVES (HIP Reserve) 448, ,000 Surplus (Deficit) carried forward 504, ,063 No. of 31 March 3,362 3,347 WORKING BALANCE PER PROPERTY

14 14 Council Tax

15 APPENDI 2 DRAFT COUNCIL TA RESOLUTION 2015/16 1. That the revenue estimates for 2015/16, as submitted, be approved. 2. That it be noted that the Chief Financial Officer, in accordance with the terms of his delegated authority, has calculated the following amount for the year 2015/16 in accordance with regulations made under Section 31B (3) of the Local Government Finance Act 1992 as amended (the Act) as:- a) 39, being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, as its Council Tax base for the year; 3 The Council calculates that the Council Tax requirement for the Council s own purposes for 2015/16 is 8,532, That the following amounts be now calculated by the Council for the year 2015/16 in accordance with Sections 31 to 36 of the Act:- a) 116,243,817 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (2) of the Act; b) 107,711,140 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the Act; c) 8,532,677 being the amount by which the aggregate at 4 a) above exceeds the aggregate at 4 b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its council tax requirement for the year; d) being the amount at 4 c) above divided by the amount at 2 a) above, calculated by the Council, in accordance with section 31 B of the Act, as the basic amount of its Council Tax for the year; 5. That it be noted for the year 2015/16 Surrey County Council and Surrey Police and Crime Commissioner have issued precepts to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings in the Council s area as shown in the table below. 15 WBC15-119

16 6. That the Council, in accordance with Section 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the table below as the amounts of council tax for the year 2015/16 for its area and for each of the categories of dwellings :- Valuation Band Surrey County Council Surrey Police and Crime Commissioner Woking Borough Council Aggregate of Council Tax Requirements A , B , C 1, , D 1, , E 1, , F 1, , G 2, , H 2, , That the Council s basic amount of Council Tax for 2015/16 is not excessive in accordance with the principles approved under Section 52 ZB of the Local Government Finance Act 1992 as amended. 16

17 Eliminate discriminatio n Advance equality Good relations Equality Impact Assessment The purpose of this assessment is to improve the work of the Council by making sure that it does not discriminate against any individual or group and that, where possible, it promotes equality. The Council has a legal duty to comply with equalities legislation and this template enables you to consider the impact (positive or negative) a strategy, policy, project or service may have upon the protected groups. Positive impact? Negative impact? No specific impact What will the impact be? If the impact is negative how can it be mitigated? (action) THIS SECTION NEEDS TO BE COMPLETED AS EVIDENCE OF WHAT THE POSITIVE IMPACT IS OR WHAT ACTIONS ARE BEING TAKEN TO MITIGATE ANY NEGATIVE IMPACTS Gender Men Women Gender Reassignment White Mixed/Multiple ethnic groups Race Asian/Asian British Black/African/Caribbean/ Black British Gypsies / travellers Other ethnic group 17

18 Eliminate discriminatio n Advance equality Good relations Positive impact? Negative impact? No specific impact What will the impact be? If the impact is negative how can it be mitigated? (action) THIS SECTION NEEDS TO BE COMPLETED AS EVIDENCE OF WHAT THE POSITIVE IMPACT IS OR WHAT ACTIONS ARE BEING TAKEN TO MITIGATE ANY NEGATIVE IMPACTS Disability Sexual Orientation Age Religion or Belief Physical Sensory Learning Difficulties Mental Health Lesbian, gay men, bisexual Older people (50+) Younger people (16-25) Faith Groups Pregnancy & maternity Marriage & Civil Partnership Socio-economic Background The purpose of the Equality Impact Assessment is to improve the work of the Council by making sure it does not discriminate against any individual or group and that, where possible, it promotes equality. The assessment is quick and straightforward to undertake but it is an important step to make sure that individuals and teams think carefully about the likely impact of their work on people in Woking and take action to improve strategies, policies, services and projects, where appropriate. Further details and guidance on completing the form are available. 18

19 Sustainability Impact Assessment Officers preparing a committee report are required to complete a Sustainability Impact Assessment. Sustainability is one of the Council s cross-cutting themes and the Council has made a corporate commitment to address the social, economic and environmental effects of activities across Business Units. The purpose of this Impact Assessment is to record any positive or negative impacts this decision, project or programme is likely to have on each of the Council s Sustainability Themes. For assistance with completing the Impact Assessment, please refer to the instructions below. Further details and guidance on completing the form are available. Theme (Potential impacts of the project) Positive Impact Negative Impact No specific impact What will the impact be? If the impact is negative, how can it be mitigated? (action) Use of energy, water, minerals and materials Waste generation / sustainable waste management Pollution to air, land and water Factors that contribute to Climate Change Protection of and access to the natural environment Travel choices that do not rely on the car A strong, diverse and sustainable local economy Meet local needs locally Opportunities for education and information Provision of appropriate and sustainable housing Personal safety and reduced fear of crime Equality in health and good health Access to cultural and leisure facilities Social inclusion / engage and consult communities Equal opportunities for the whole community Contribute to Woking s pride of place 19

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