This report considers the level of Council Tax for 2016/17 and the policy on reserves.  It also provides details of the Council’s formula grant funding settlement for 2016/17 and the Business Rates target for the Retained Business Rates funding mechanism, which is now operated as a pool across North Yorkshire.

In accepting the recommendations, Cabinet will approve and recommend to Council various decisions regarding the setting of the level of Council Tax; confirm that the indicators on expenditure and treasury management decisions are affordable, prudent and sustainable and approve the policy on Balances and Reserves.

The subject of the decision:

This report considered the level of Council Tax for 2016/17 and the policy on reserves.  In addition, it provided details of the Council's formula grant funding settlement for 2016/17 and the Business Rates target for the Retained Business Rates funding mechanism, which was operated as a pool across North Yorkshire.

Alternative options considered:

None.

The reason for the decision:

To maintain the long term viability of the Council’s finances and ensure sustainability by investing in community projects as determined by the Council’s priorities and supporting the maintenance and enhancement of service delivery.  To maintain the integrity of the Council’s financial strategy.

THE DECISION:

That Cabinet approves and recommends to Council that:-

(1)     it be noted that on 15 January Council calculated the Council Tax Base 2016/17:-

         (a)      for the whole Council area as £35,088.46 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the "Act")]; and

          (b)     for dwellings in those parts of its area to which a Parish precept relates as in Annex of the report;

(2)     the Council has calculated the Council Tax requirement for the Council's own purposes for 2016/17 (excluding Parish precepts) as £3,315,157.70;

(3)     the following amounts be calculated for the year 2016/17 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992:-

          (a)     District/Parish Gross Expenditure

                   £46,616,234.95   being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils

          (b)     District/Parish Gross Income (including Government Grants, use of Reserves and Collection Fund Surpluses etc)

                   £41,970,322.30   being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act

          (c)     District/Parish Net Expenditure

                   £4,645,916.65     being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act, as its Council Tax requirement for the year (Item R in the formula in Section 31B of the Act)

          (d)     Basic Amount of Tax (including average Parish Precepts)

                   £132.4057           being the amount at 3(c) above (Item R) all divided by Item T (1(a) above), calculated by the Council in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts)

          (e)     Parish Precepts

                   £1,330,754.94     being the aggregate of all special items (Parish Precepts) referred to in Section 34(1) of the Act (as per Annex A)

          (f)      Basic Amount of Tax (Unparished Areas)

                   £94.58                 being the amount at 3(d) above less the result given by dividing the amount at 4(e) above by Item T (1(a) above), calculated by the Council in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates

(4)     Major Precepting Authorities

          That it be noted that the North Yorkshire County Council, the North Yorkshire Fire and Rescue Authority and the Crime Commissioner North Yorkshire have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council's area as indicated in the table below and at Annex A(1);

(5)     Council Tax Bands for All Councils

          Figures for North Yorkshire County Council, North Yorkshire Fire and Rescue Authority and Crime Commissioner North Yorkshire are yet to be determined and will be reported at Council on 25 February 2016.

          The Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2016/17 for each part of its area and for each of the categories of dwellings:

          Hambleton District Council

          Valuation Bands

(6)     Excessive Council Tax

          the Council determines that the Council's basic amount of Council Tax for 2016/17 (at 3(f) above) is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992;          

(7)     the appropriate amount is taken from the Council Taxpayers Reserve to support the decision at (3) above; and

(8)     the policy on Balances and Reserves at Annex C of the report is approved.