How does the council manage its finances?
Prior to the start of each financial year, we're required to set a budget for day-to-day income and expenditure for the year. This is called the Revenue Budget and is detailed within the Budget Book.
As part of this budget setting process, the Council Tax for the District is decided.
We also have a Capital budget, which is used for expenditure of a one-off and high value nature. This is typically used for the building, purchase or enhancement of an asset. Future capital expenditure, including the funding for each project, is included within the Capital Programme (included in the Budget Book).
It's a legal requirement for us to set a balanced budget and so expenditure must be matched by income or existing reserves.
Along with approving the new year's budget, we also agree an Annual Treasury Management Strategy, which details:
- who we'll place surplus funds with;
- the maximum periods, and;
- whether at fixed or variable interest rates.
Our overarching Treasury Management priority is to ensure the security of amounts deposited, even if this results in a lower rate of return.
In order to look to the future and plan for the years ahead, a Medium Term Financial Plan is prepared to show how we'll strategically manage our finances over the next five years, in order to support the delivery of the pledges/objectives detailed in our Corporate Plan 2020-2024.