To agree the draft 2017/18 budget and medium term financial strategy (MTFS) for

recommendation to Council on 3 February.

THAT the following be recommended to full Council on 3 February 2017:

(a) the council tax base of 67,937.91 band D equivalents;

(b) an increase in council tax in 2017/18 of 1.9%;

(c) an additional precept in respect of adult social care costs of 2.0%

applied to council tax in 2017/18. Cabinet notes that the impact of the above recommendations will result in a total council tax increase of 3.9%; increasing the band D charge from £1,324.83 to £1,376.50 for Herefordshire Council in 2017/18; and

(d) the balanced 2017/18 revenue budget proposal of £145.025m (appendix 1 to thisreport) subject to any amendments approved at the meeting, and specifically.

i. the net spending limits for each directorate as at 3.4.1

ii. the gross revenue budget of £350.438m

iii. delegates to the section 151 officer the power to make necessary

changes to the budget arising from any variations in central

government funding allocations via general reserves.

THAT cabinet recommend Council adopts the following:

(a) the treasury management policy statement, appendix 3;

(b) the medium term financial strategy (MTFS) which incorporates:

i. the capital programme approved by Council on 16 December

2016;

ii. the treasury management strategy (TMS);

iii. the reserves policy, as determined by the section 151 officer as a

prudent level of reserves.

The council has a legal obligation to set a balanced budget and Council is responsible for approving a budget, based on cabinet’s recommendations, in line with the budget and policy framework rules within the constitution.

Cabinet can recommend alternative spending proposals or strategies within the

constraint of setting a balanced budget for 2017/18. Any alternative proposals must

identify sufficient compensatory funding to support additional spending proposals.