Agenda item

Report of the Executive Director of Resources

The Cabinet considered a report of the Executive Director of Resources, which calculated the Council Tax level for 2016/17.

In previous years the Council has had the flexibility to increase Council Tax by up to 2% without holding a local referendum on the matter.  The report indicated that the Pre-Budget Report was approved on the basis of consulting on a Council Tax rise of 1.9%.  It had subsequently been confirmed that, in recognition of the increasing pressure on adult social care services across the country, the Government had increased this flexibility by a further 2%, up to a maximum of 4%.  On that basis, the budget was being proposed on the basis of increasing the Council Tax by 3.9% in order to increase the resources available to fund adult social care services within the City.

The Executive Director of Resources reported that the precepts from the West Midlands Fire and Rescue Authority were approved at their meeting on 15^th February 2016 and, as a result, the figures indicated as provisional within the report were confirmed.

The Cabinet noted that the recommendations followed the structure of resolutions drawn up by the Chartered Institute of Public Finance and Accountancy, to ensure that legal requirements were fully adhered to in setting the tax.  As a consequence, the wording of the resolutions was necessarily complex.

RESOLVED that the Cabinet recommend that Council:-

(1)  Note the following Council Tax base amounts for the year 2016/17, as approved by Council on 12^th January 2016, in accordance with Regulations made under Section 31B of the Local Government Finance Act 1992 (as amended) (“the Act”):

a)  77,525.1 being the amount calculated by the Council as its Council Tax base for the year for the whole area;

b)  Allesley  318.3

Finham  1,467.8

Keresley  226.2

being the amounts calculated by the Council as its Council Tax base for the year for dwellings in those parts of its area to which one or more special items relate.

(2)  That the following amounts be now calculated by the Council for the year 2016/17 in accordance with Sections 31A, 31B and 34 to 36 of the Act:

(a)  £692,642,421  being the aggregate of the amounts that 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 (Gross Expenditure and reserves required to be raised for estimated future expenditure);

(b)  £581,800,332  being the aggregate of the amounts that the council estimates for the items set out in Section 31A(3) of the Act. (Gross Income including reserves to be used to meet the Gross Expenditure but excluding Council Tax income);

(c)  £110,842,089  being the amount by which the aggregate at (2)(a) above exceeds the aggregate at (2)(b) above, calculated by the Council in accordance with Section 31A(4) of the Act, as its Council Tax requirement for the year;

(d)  £1,429.76  (2)(c)  =  £110,842,089

  (1)(a)  77,525.1

  being the amount at (2)(c) above divided by the amount at (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.  (Average Council Tax at Band D for the City including Parish Precepts).

(e)  £30,037  being the aggregate amount of all special items referred to in Section 34(1) of the Act.  (Parish Precepts);

(f)  £1,429.37  = (2)(d) –   (2)(e)  =  £1,429.76 - £30,037.00

  (1)(a)  77,525.1

  being the amount at (2)(d) above, less the result given by dividing the amount at (2)(e) above by the amounts at (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 the area to which no special item relates.  (Council Tax at Band D for the City excluding Parish Precepts);

(g)   

  Being the amounts given by adding to the amount at (2)(f) above, the amounts of the special item or items relating to dwellings in those parts of the Council’s area mentioned above divided in each case by the amount at (1)(b) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its Council Tax for the year for dwellings in those parts of its area to which one or more special items relate.  (Council Taxes at Band D for the City and Parish).

(h)   

  being the amounts given by multiplying the amounts at (2)(g) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation Band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwelling listed in different valuation bands.

(3)  To note that for the year 2016/17 the Police and Crime Commissioner for the West Midlands and West Midlands Fire Authority have stated the following amounts in precepts issued to the Council in accordance with Section 40 of the Act, for each of the categories of dwelling shown below:

(4)  That having calculated the aggregate in each case of the amounts at (2)(h) and (3) above, the Council, in accordance with Sections 30 and 36 of the Act, hereby sets the following amounts as the amounts of Council Tax for the year 2016/17 for each part of its area and for each of the categories of dwellings shown below:

(5)  That the Council determines that its relevant basic amount of Council Tax for 2016/17 is not excessive in accordance with the principles approved under Sections 52ZC and 52ZD of the Act.