As you will see from the agenda below, the council needs to appoint members to the staffing and finance committees. It will be interesting to see if any member, is willing to actually do some work.
I asked the chairman of Oakham Town Council, Is the town council was proposing a council tax increase, her response was I don't know.
I have this morning read an attached meeting document that states the town council is looking to increase its precept by £84,785 a year for 2023 - 2024 the precept £324,785.00 is being put to council this Thursday evening.
This is not value for money. The town council provides no essential services. The required draft budget has not been published.
It is almost impossible to find documents that Oakham Town Council are legally required to publish.
Uppingham Town Council runs on a precept of about 50% less than Oakham Town Council.
I believe there is a serious issue with the financial management and governance at Oakham Town Council.
The other item on the agenda is simply titled. Accountant this is a paper brought to council where the chairman is seeking an investigation into the councils accounts due to missing petty cash.
In addition I ask how much money is missing, her response was, 'I cant say'
The Chairman says, The loss of public money has been reported to Leicestershire police.
This explains why the clerk is not publishing the legally required accounts and expenditure, if it was published it would be easy to see how much public money is missing. The council is looking to spend over £520 to check all the books, It is very concerning that Councillors appeared to be happy to hide this loss from the public and only go public once a leak happened.
Oakham Town Council
Rol House, Long Row, Oakham, Rutland, LE15 6LN
01572 723627
enquiries@oakhamtowncouncil.gov.uk
www.oakhamtowncouncil.gov.uk
Members of the Town Council are hereby summoned to attend an EXTRAORDINARY MEETING OF OAKHAM TOWN COUNCIL to be held on
22nd December 2022 commencing at 6.30pm. The meeting will be held at the Town Council Offices, Rol House, Long Row, Oakham, LE15 6LN
Sally-Anne Wadsworth
Chairman of the Council
19th December 2022
AGENDA
APOLOGIES AND REASONS FOR ABSENCE: To receive and approve apologies for absences
DECLARATION OF MEMBERS’ INTERESTS AND APPLICATIONS FOR DISPENSATION: Reminder to Members to disclose either a Pecuniary Interest or Other Interest in any item on the agenda. The clerk cannot advise members on this. Members are personally responsible for declaring an interest. Members are respectfully advised to read the Code of Conduct for more information. Councillors are also responsible for ensuring that their Registers of Interests are up to date (within 28 days of any changes)
DEPUTATIONS FROM MEMBERS OF THE PUBLIC: An opportunity for members of the public to speak in accordance with Standing Orders 1 (d)- 1(i)
4. APPOINTMENTS:
To appoint Councillors onto the Staffing Committee due to a resignation
To appoint Councillors onto the Finance Committee due to a resignation
5. BUDGET
To review working budget documents and discuss spending proposals for final sign-off at the January full Council meeting
6. ACCOUNTANT
To discuss and vote on paper 2022-35 submitted by Cllr Wadsworth
NOTES:
a) The meeting is open to the press & public.
b) The Town Council allows a short period of time at meetings of the Full Council when residents can put questions to the council. At other times, the public are not able to take part in the proceedings except at the discretion of the Chairman who may at a convenient time in the transaction of business adjourn the meeting and suspend standing orders to allow any member of the public to address the meeting and ask questions requiring answers of a factual nature
c) Mobile phones are to be switched to silent during the meeting
d) Additional documents to support the agenda will be available online and hard copies are available at the office should the public wish to review.
OAKHAM TOWN COUNCIL
2023-2024 PRECEPT BUDGET REPORT
The preparation of OTC’s budget for the financial year 2022-2023 has been challenging. Covid -19 has had an effect on council budgets particularly in respect of reduced income from facility hire and increased cost to ensure that a Covid -19 environment is provided both inside the Council Offices and in respect of communal outdoor events and equipment.
1. Purpose of the Report
1.1 To seek approval to set the 2023-2024 Precept. It is OTC’s budget and members have to decide what it wants the council to achieve in 2023-2024.
1.2 OTC needs to agree a budget for 2023-2024 and submit a precept request to RCC by 16 January 2023.
1.3 In accordance with S25 of LGA 2003, this report provides members with information on the robustness of the budget and the adequacy of balances and reserves.
2. Background to the Report
2.1 OTC is required to set its Precept in accordance with statutory requirements. This report sets out the implications of setting OTC’s Precept for 2023-2024 and the impact it will have on OTC’s portion of the Council Tax Bill. The recommendation of the Finance Committee is then expected to be ratified by the Full Council.
2.2 It is unlikely that referendum (Council Tax Capping) principals will be introduced for 2023-2024 but there is still the expectation that OTC is fiscally responsible.
3. 2023-2024 Precept: The recommended Precept of £324,785 is the amount required to meet the estimated cost of providing OTC after deducting expected income
4. Income
OTC’s main source of income continues to be the precept
Facility Hire
5. 2022-2023 Oakham Town Council Tax Base
5.1 The Council Tax Base is a statutory calculation of the number of chargeable households in the parish and used by RCC to calculate the Council Tax. RCC has advised that the 2023-2024 Council Tax Base figure is 4208.69
5.2 The 2022-2023 Precept of £324,785 is divided by the Tax Base of 4208.69 and results in a Band D Council Tax of £77.17 This equates to £6.43 per month or £1.48 per week. The amounts payable in all council tax bands are shown below:
Year 2021-2022 2022-2023 2023-2024
Precept £275,595 £240,000 £324,785
Band D 77.17
Band A (6/9) 51.44
Band B (7/9) 60.02
Band C (8/9) 68.59
Band D (9/9) 77.17
Band E (11/9) 94.31
Band F (13/9) 111.46
Band G (15/9) 128.62
Band H (18/9) 154.34
6. Robustness of the 2023-2024 Budget Estimates
6.1 Working papers have been prepared to support the budgetary estimates.
6.2 The budget process has incorporated a budget review. All budgets have been prudently set considering spending pressures such as pay awards, inflation, and unavoidable budget growth. Balancing the budget has required efficiency savings to be identified and budget reductions to be made. Savings have been delivered and budget reductions made in underutilised budget areas.
6.3 The Budget sets out key issues and changes, the projects included and explains how spending pressures and funding cuts have been offset. The Budget includes details of last year’s actual spending and income as well as the latest projection of current year outturn which allows members to make informed decisions based on actual financial performance.
6.4 The robustness of the budget has been ensured through a budget framework ensuring that practical steps have been taken to prudently identify and provide for likely spending commitments and income next year.
7. Adequacy of Balances and Reserves
7.1 The assessment of the adequacy of balances and reserves has been based on best practice. No case has been made to set a statutory minimum reserve level and OTC should base its judgement on its own circumstances; by taking this prudent approach OTC is able to operate within a lower level of general reserves as recommended by NALC and LRALC, these however will need to be supported by earmarked reserves to fund specific needs and future spending commitments. There is nothing in legislation that settles the size of the reserve. A council can choose to set aside reserves for specific purposes, such as future repairs to a council asset. By convention, an amount of around half the precept is considered reasonable as a reserve for unspecified purposes. That's simply a buffer against miscalculation or unexpected demands. It does not have to be followed rigidly and auditors will query excessive or inadequate reserves but will agree to reasonable specified reserves and a general reserve approximately of the size indicated. There is some discussion of precept setting in Section 50 of the Local Government Finance Act 1992, but no figures. Otherwise, it is down to the council to settle on an appropriate amount for general reserves. Governance and Accountability for Smaller Authorities in England states "As authorities have no legal powers to hold revenue reserves other than those for reasonable working capital needs, or for specifically earmarked purposes, whenever an authority's year-end general reserve is significantly higher than the annual precept or rates and special levies, an explanation should be provided to the auditor." A reserve balance representing between 6 – 12 months has therefore been accepted as a prudent level of general reserves.
7.2 In coming to a view on the adequacy of balances and reserves, account needs to be taken of the risks facing OT in terms of significant unforeseen spending commitments or funding cuts and any capital investments over the medium to long term considering the ability of OTC to secure external funding via capital grants, contributions, borrowing or capital receipts from the sale of assets.
7.3 It is recommended that the balances & reserves policy remains unchanged, i.e.:
Maintain a General Fund Balance of between 10–15% of the Net Budget to protect against unforeseen Budget pressures and possible funding cuts.
Set aside sufficient sums in Earmarked Reserves to support future years capital investment requirements and meet other specific commitments
Undertake an annual review as part of the Budget Setting process.
7.4 The current levels of balances and reserves taken alongside the contingency sum should provide adequate resources to protect against unforeseen spending pressures, funding cuts and support future year’s capital investment requirements.
8. Policy Implications: The budget conforms to one of the OTC’s aims and objectives which is to manage OTC’s finances and assets in a responsible manner
9. Staffing Implications: The Budget has been agreed with the Clerk/RFO
10. Financial Implications: These have been set out in this report.
11. Risk Assessment
11.1 The Budget has been robustly prepared in accordance with key principles of prudence and transparency and the levels of balances, reserves and contingencies within the Budget are adequate.
11.2 If the Precept is not set by 17 January 2022, then OTC may not meet the deadline set by TMBC for the receipt of the Precept Request Form and would not therefore receive a Precept payment in 2022-2023.
12. Recommendations
12.1 Members approve the 2023-2024 budget which requires a Precept of
£324,785.
12.2 The Clerk/RFO be authorised to sign the Precept Request Form which will then be submitted to RCC.
2023-2024 BUDGET DOCUMENTS
INTRODUCTION
The preparation of an annual budget is a key statutory task; it results in OTC setting the precept for the year and gives the Clerk/RFO the authority to make spending commitments in accordance with the spending plans approved by members. It also provides a basis for monitoring progress during the year by comparing actual spending against planned spending. The importance of the budget cannot be underestimated. Members should know how it has been compiled and how it is used in the running of OTC. At its simplest the budget compares OTC’s spending plans and expected income with the excess of planned spending over income made up by the precept. As the year progresses things will not always go to plan and the prospect of a shortfall of funds during the year can present a risk. Regularly reviewing the budget against expenditure will warn members and help them decide upon any responsive actions.
2023-2024 BUDGET DOCUMENT
Sets outs OTC’S spending plans and explains how they will be funded.
Includes a breakdown demonstrating how resources have been allocated to meet running costs of each service; budget summaries support the estimates.
Provides a summary of the 2022-2023 Budget, setting out the background to the budget process.
Summarises key budget changes, shows how the budget impacts on Council Tax bills and gives consultation information. It is important that OTC continually improves the quality of published financial information and feedback is invited.
MEDIUM TERM FINANCIAL PLAN (MTFP) 2023-2028
OTC takes a strategic approach to financial planning
MTFP provides a link between OTC’s strategic aims, priorities of the local community and the resources likely to be available to fund them
MTFP establishes financial principles, within which financial planning will be undertaken and highlights key financial challenges facing OTC over the next five years, putting in place a financial strategy to meet these.
MTFP puts in place the framework for planning OTC’s spending each year and is the main driver for setting future budgets.
MTFP focuses on issues such as likely funding cuts, whilst aiming to maintain existing service levels and keep future increases as low as possible.
MTFP details challenges facing OTC and the need to make difficult decisions in the coming years in terms of how to offset funding cuts as well as other spending pressures. It is likely that these budget pressures will need to be funded by increases to the Precept and budget reductions.
While capital commitments will be met from earmarked reserves, balances are likely to diminish if they cannot be replenished. OTC currently holds healthy balances and reserves and is in a strong position to meet the challenges that lie ahead in order to maintain services.
EFFICIENCY SAVINGS:
There is a potential to make savings with the implementation of some or all of the following initiatives:
Increased use of volunteers
Increased take up in facility hire
Use of BACS for making payments and for customer receipts
Scan and email where possible
Insourcing certain maintenance items
The use of Facebook, Twitter, and Website more for advertising and publicity will result in less paper communication
Raising fees where justified
Manage cash to maximise interest
Hire out underutilised resources (open spaces, rooms)
Looking at external funding sources such as sponsorship from businesses and residents for certain key projects
Three-year agreement on insurance has the potential to save money
Review utilities often
2023-2024 BUDGET FRAMEWORK
The budget framework ensures that OTC sets a prudent, realistic, and transparent budget that clearly identifies costs and income associated with the provision of services and puts in place prudent budgetary provision within the financial resources available. The aim of the Budget Framework is to assess the impact of the Budget and determine the increase required to the Town Council Tax in 2022-2023.
THE 2023-2024 BUDGET
The financial year runs from 01 April - 31 March. The budget is prepared in the autumn and set in January, in advance of the new financial year.
The Budget estimates the resources required to fund the services it provides, deliver its strategic aims and objectives, and meet community and local taxpayer needs and priorities.
The Budget funds the day to day running costs of OTC’s services, and the net cost after deducting income and confirmed grants is funded from the Precept.
The Budget also funds major one-off investment in Town Council and community assets such as its buildings and play areas. These can also be funded from Earmarked Reserves and any grants and contributions that may be available.
The Budget is prepared in line with the known financial strategy of OTC.
The Budget has been developed on the principle of maintaining existing service levels whilst keeping the required increase in Council Tax as low as possible.
The setting of the budget has considered likely changes in costs and income associated with the running of OTC services between the two years.
Additional budgetary provisions need to be made for unavoidable budget increases such as officer pay awards and Inflation on running costs.
The Budget includes a contingency fund which provides protection against further spending pressures. No provision has been made for replenishing reserves in 2023-2024; this has been considered but thought unnecessary due to the relatively high levels of reserves held by OTC.
7. THE DETAIL
The 2023-2024 Precept shows a increase from 2022-2023 of £84,785 i.e. from £240,000 to £324,785. Budgetary increases have been due to the taking on of a new member of staff, the increases across the board in service and utility bills and the taking on of the Oakham Hopper Service.
8. 2023-2024 PROJECT PROGRAMME: This provides for specific projects and investment in assets such as buildings, amenity land, playing fields and play areas and includes provisions for the following:-
Continued IT development
Asset management works
Environment projects .
Minor Town Maintenance Fund
Emergency Planning
Play equipment play/renewals
Christmas Lights
Town planting
Cutts Close Capital Project
Public Emergency Planning
The project programme will be funded from Earmarked Reserves, budgetary provisions or grants. There is no need for OTC to borrow additional funds.
9. 2023-2024 BUDGET CONSULTATION: The draft budget proposals will be published, and residents will be invited to comment on whether they are supportive or not of the proposed Budget.
10. BALANCES: At 31 March 2022, the balances and reserves were £364,956. At 31 March 2023 they are expected to be £228,309.37. After deducting anticipated earmarked reserves of £17,000, it is expected that OTC will hold £211,309 in general balances.
11. EARMARKED RESERVES
At 31 March 2023 the Earmarked Reserves held by OTC are expected to be as follows:
Carried forward from 2021-2022 £17,000
Public Emergency funding £5,000
Play equipment £12,000
TOTAL £17,000
The reserves support future capital spending commitments and asset management. OTC is expected to hold non ear-marked reserves between 50%–100% of its budget which has been estimated as £324,785, This means that OTC is expected to hold in reserves between £162,392 - £324,785 OTC’s reserves therefore fall within the guided parameters. It has been recommended that there be a contribution from reserves of £50,000 which will take OTC to the minimum level of reserves recommended. Due to the large size of the precept and the reserves this is judged to be a reasonable level of reserves to hold.
12. LAND, PROPERTY AND OTHER ASSETS: The value of OTC’s assets i.e. land, buildings, plant, machinery, street furniture, office contents and play equipment is £1,044,216. This is not an open market valuation as the assets are generally regarded as specialised in that they will rarely be sold and therefore valued as existing use or replacement cost which is lower than the open market value.
13. INVESTMENTS: OTC’s Balances and Earmarked Reserves are on an instant access basis with accounts held with HSBC. OTC also has an investment account which is held with The Cambridge Building Society. Interest is minimal as a result of low Bank of England base interest rates.
14. CONTRACTS AND TENDERING: The Public Contracts Regulations 2015 govern the management, advertising, and negotiation of contracts. These require that tenders should, as a minimum, be advertised on Councils’ websites and may also require advertising on the Contracts Finder website. NALC has published a “Guide to Understanding Procurement” which is very comprehensive, and I commend it as a sound basis for OTC to follow should it undertake any form of contracting exercise. EPPC’s threshold is £25K, above this, projects must go out to tender.
15. ZERO-BASED BUDGETING APPROACH: In preparing the budget, a zero-based approach has been used which encourages the questioning of each expenditure item and starts from the premise that no costs should be factored into the budget simply because they were in the previous year’s budget. Each expenditure item has been considered and justified, and there is a reasonable prospect of each item coming to fruition during the year.
16. 2022-2023 BUDGET PROPOSALS: The budget proposals are based on core expenditure and amounts to £288,820 which after deducting anticipated income of £17,200 and a contribution from reserves of £48,820 requires a precept of 240,000.
17. 2023-2024 PRECEPT CALCULATIONS
17.1 The budget meets the requirements of the Accounts & Audit Regs. It may be amended if OTC changes its proposed programme, amending fund contributions, or through policy changes. The balances are the minimum OTC should retain to develop and sustain existing service levels. Whilst capping arrangements are expected; they are unlikely to affect OTC.
17.2 The working paper shows the 2020-2021 actual amounts, the 2021-2022 estimates, the 2021-2022 revised budget & the budgetary proposals for 2022-2023. A 3% inflationary adjustment has been used where necessary and higher provisions where required. Expenditure has been analysed between costs of supporting OTC, cost of planned projects and sums earmarked for future commitments. Income predictions are based on anticipated outcomes.
18. REFERENDUM PRINCIPLES
The Government has challenged Local Councils to demonstrate restraint when setting precept increases that are not a direct result of taking on additional responsibilities and to make precept decisions transparent to local taxpayers. The continuation of this position in 2022-2023 is contingent upon the Government receiving evidence of how the sector responds to this challenge. The Government expects local councils in setting precepts to consider all options to mitigate the need for council tax increases including the use of non-earmarked reserves which will lower ongoing revenue costs.
