Statement of Accounts

Financial Services

E-mail: accountancy@
thanet.gov.uk

Tel: 01843 577000

Financial Services - Strategic Financial Objectives

The Council’s Financial Strategy, outlined below, balances the Council’s commitment to a regime of financial rigour, prudence and discipline with the need to facilitate innovation and strong financial management.

General Fund Revenue Account

• To maintain a balanced General Fund Budget such that expenditure matches income from council tax, fees and charges, and government and other grants and to maintain that position.
• To maximise the Council’s income by promptly raising all monies due and minimising the levels of arrears and debt write offs.
• To maintain contingency reserves at no less than £1.5 million with a preferred target of not breaching £2m.
• To only incur additional spending when matched by increased income or identified budget savings.
• To increase future Council Tax levels by no more than 4.5%, subject to satisfactory grant awards.
• To ensure resources are aligned with the Council’s strategic vision and corporate priorities.
• To actively engage local residents in the financial choices facing the Council.

Housing Revenue Account

• To maintain a Housing Revenue Account which is self financing and reflects both the requirements of residents and the strategic visions and priorities.
• To achieve the government’s "target" rent level by 2012.
• That the major repairs allowance, current borrowing consent and available rental income is directed to sustain the maintenance and improvement programme required to achieve the Decent Homes Standard by 2010.
• To maximise the recovery of rental incomes by reducing the number of void properties and minimising the level of rent arrears and debt write offs.
• To maintain a minimum level of HRA reserves of £800,000 but with a target level of reserves of £1 million.

Capital Programme

• To maintain a three year rolling capital programme which remains within the approved sustainability limits and takes into account any decisions or actions which may have a material impact on years 4 and 5.
• To allocate the supported borrowing approval between the HRA and the General Fund in accordance with the ODPM guidance.
• To maintain reserves at no less than £0.5 million.
• To ensure capital resources are aligned with the Council’s strategic vision and corporate priorities.
  
  Prudential Borrowing to be undertaken only where there is sufficient monies to meet in full the implications of capital expenditure, both borrowing and running costs.
• To maximise available resources by actively seeking external funding and disposing of surplus assets.
• To engage local residents in the allocation of capital resources.

Treasury Management

To ensure adequate, but not excessive cash resources, borrowing arrangements, overdraft or standby facilities to enable the Council at all times to have the level of funds available which are necessary for the achievement of service objectives.

• To present to Full Council a Treasury Management Policy Statement and Treasury Management Practices which set out the manner in which the Council will achieve the Policy and prescribing how the Council will manage and control those activities.
• To present to Cabinet an Annual Treasury Management Strategy outlining the expected treasury management activity for the forthcoming 3 year period.
  
  All investments to be undertaken in line with the Council’s Investment Strategy and prevailing legislation and regulations.
• That the Council’s net borrowing does not, except in the short term, exceed the total of the Capital Financing Requirement in the preceding year plus the estimates of any additional capital financing requirement for the next three years.
• To borrow only to finance capital expenditure where the revenue resource is available to support in full the implications of the capital expenditure in terms of both borrowing and running costs.
• To investigate the financial consequences of restructuring the Council’s outstanding debt.
• To set and monitor annual performance indicators to assess the adequacy of the treasury management function over the year.