Agenda item

The Charter Trustees are required to set their 2021/22 budget, council tax requirement and resultant precept for submission to BCP Council by 31 January 2021.

This report also updates the Charter Trustees on the conclusion of the external audit of the 2019/20 Annual Governance and Accountability Return.

The Responsible Financial Officer presented a report on the Budget and Precept 2021/22, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

The Charter Trustees were advised that the report sets out the recommended budget for the 2021/22 financial year which would result in a council tax requirement of £147,956 as set out in the recommendations.  The Responsible Financial Officer reported that the detailed budget was set out in Appendix A to the report which built on the discussions held and the guidance received at the budget workshop held on 9 December 2020. The Charter Trustees were advised of the main features of the budget, that the individual budget lines have been maintained at their current levels so that the base budget was inherently fit for purpose going forward when the Charter Trustees return to normal following the Pandemic .  The Responsible Financial Officer reported that stationery, postage and accommodation costs had been reviewed and reduced to reflect the actual costs that the Charter Trustees were forecast to incur. Charter Trustees were informed that a modest investment income budget had been added and a significant review of the salary costs and recharges had been undertaken.  The Responsible Financial Officer reported that the main changes were for the accountancy recharge which had increased to £3,450 and the salary recharge had increased to £89,200.  He referred to the detailed calculations which were set out at Appendix B to the report including costs for the Head of Democratic Services and Deputy Head of Democratic Services which did not feature before to give a fairer recharge to the Charter Trustees.

The Response Financial Officer reported that Appendix A shows total expenditure of £156,000 which was funded from the precept of £147,000 and a one-off contribution from reserves of £7,994.  The Charter Trustees were advised of the position regarding reserves and that the £7,994 was carried forward into 2020/21 which was as a result of underspends last year.  He explained that the outturn was expected to show a significant underspend on the current year because of Covid-19 and the curtailment of activities the Charter Trustees have carried out. So, it was anticipated that just over £36,000 would be added to reserves so by the end of the financial year there would be £44,663 in reserve.  The Responsible Financial Officer explained this level of reserves would represent 30% of the proposed precept for this year and he would recommend something closer to 20% which allowed the contribution of £7,994 to next year’s budget but proposed that nothing further was contributed to reserves for next year. The Responsible Financial Officer reported that there would still be 25% of the precept in reserve and once this current financial year has been closed would give the opportunity for the Charter Trustees to see if they wanted to spend that on any one-off items of expenditure.

The Responsible Financial Officer reported on the Tax base and explained that this had gone down from 63,942 to 61,887 which was due to the pandemic with the cost of Council Tax Support increasing and amendments to the collection rate which would affect BCP Council as a whole and the Bournemouth Charter Trustees.  The Charter Trustees were also advised of the Community Governance Review with a new Parish being set up from 1 April namely Throop and Holdenhurst Village Council which involves approximately 300 properties.  The Charter Trustees cannot charge in that area because the Parish Council raises its own precept.

The Responsible Financial Officer referred to paragraph 26 in the report which set out the impact of the precept and what it would mean in terms of a Council Tax increase.  He explained that for 2021/22 this would be a proposed band D Council Tax cost of £2.39 which would result in a 24p increase or 11.2% compared to the current year.  The Responsible Finance Officer explained that in respect of the draft settlement for local government Charter Trustees were not subject to referendum limits for Council Tax increases which would need to be confirmed in the final settlement which was expected to be released in February but it would be unusual for this to be changed in the final iteration.

The Charter Trustees in considering the budget and proposed precept raised a number of issues including:

• The role of Bournemouth Charter Trustees in the new Parish Council area of Throop and Holdenhurst. The Responsible Financial Officer reported that the Legislation indicates that the Parish Council raises its own precept as there can only be one local precepting authority in any one area.  It would be a matter for the Charter Trustees as to whether they carry out activities within that Parish.
• Unspent provision not carried forward to another financial year and how does this comply with the proposed Financial Regulations.  The Responsible Financial Officer explained that paragraph 4.5 of the Financial Regulations was aimed at the individual budget heads but any outturn in the current financial year would go into the reserves pot as it was Charter Trustees money and up to the Charter Trustees by resolution on how to utilise them.
• Clarification of the individual headings being maintained in view of the impact of the pandemic and why the precept was not frozen. The Responsible Financial Officer explained that if the base budget was reduced now when the Charter Trustees return to normality there would be a council tax increase to return the budget to higher levels and he was unable to say if the Charter Trustees would be subject to Council Tax referendum limits at that stage.
• Clarification on the parishes in Bournemouth. The Charter Trustees were advised that from 1 April next year there would be one Parish Council, Throop and Holdenhurst, that would raise a precept.
• Hope that the Mayor of Bournemouth would be doing more work next year to promote the town and a suggestion that the precept was reviewed next year.

 RESOLVED that

(a)  the draft budget for 2021/22 as set out in Appendix A be approved;

(b)  the council tax requirement and precept of £147,956 be approved;

(c)  the Charter Trustees note the conclusion of the external audit of the 2019/20 Annual Governance and Accountability Return.

Voting: Agreed