Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Salford City Council - Record of Decision
I, Councillor Bill Hinds, Lead Member for Finance and Support Services, in exercise of the powers contained within the Council Constitution do hereby approve that an adjusted deficit of £3.352m be declared as the estimated Collection Fund balance as at 31st March 2021 in respect of council tax. The estimate includes one third of the calculated “exceptional balance” of £8.562m which is to be spread equally over the next three financial years.
The Collection Fund regulations require a local authority to estimate the balance on its Collection Fund as at 31st March each year by 15th January and to notify each precepting authority. Any such balance is to be distributed to/borne by the council and the Greater Manchester Combined Authority (GMCA in relation to their police, fire and rescue and general mayoral functions) in proportion to the value of their respective demand and precept.
New regulations have been introduced for calculating the 2020/21 estimated outturn position due to the impact of Covid-19 on the Collection Fund. If a fund deficit is forecast for 2020/21 then the financial impact of this is required to be spread over the next three financial years rather than just the next one.
Assessment of Risk: Low – the Collection Fund is closely monitored during the year and will be reviewed at outturn 2020/21. Any actual surplus or deficit at that stage will be factored into future estimated balance calculations.
The source of funding is - a £3.352m adjusted deficit declared as the fund balance means that contributions will be required from the council and GMCA in relation to their police, fire and rescue and general mayoral responsibilities in 2021/22.
Financial Advice obtained: the report is produced by the corporate accountancy team.
Procurement Advice obtained: n/a
The following documents have been used to assist the decision process.
Various reports and papers including council tax system reports, the Local Authorities (Funds) (England) Regulations 1992 and the Local Authorities (Collection Fund: Surplus and Deficits) (Coronavirus) (England) Regulations 2020.
This decision is not subject to consideration by another Lead Member.
FOR DEMOCRATIC SERVICES USE ONLY
This decision was published on 5th January 2021.
Publication date: 05/01/2021
Date of decision: 05/01/2021
Decided at meeting: 05/01/2021 - Lead Member for Finance and Support Services Briefing
Effective from: 13/01/2021