Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Purpose of Report
To consider the estimated balance for the council tax element of the collection fund; and to confirm the declaration of the surplus for 2021/22.
1) That the Chief Finance Officer’s declaration of a council tax surplus of £261,027 for 2021/22, to be distributed in 2022/23, be confirmed.
2) That the spreading adjustment of a £297,589 deficit to be distributed in 2022/23 be noted.
Alternative Options Considered and Rejected
None. Prior to setting the Council Tax for 2022/23, the City Council was required to estimate whether there was to be a surplus or deficit on the council tax element of the collection fund for the current financial year, 2021/22.
Reasons for the Decision
The Chief Finance Officer had declared a surplus on council tax collection of £261,027 for the financial year 2021/22, with the City Council’s share being £38,883.
Under normal circumstances a surplus or deficit recorded for a given year was carried forward into the collection fund for the following financial year, for distribution and consequential impacts on the general fund budgets. However, regulations issued in 2020 had enabled the Council to spread any deficit arising during 2020/21 over the following three years, rather than the usual period of one year. Thus, a decision had been previously made to spread the deficit of £892,766 for 2020/21 over the following there years, in effect a sum of £297,589 each financial year: 2021/22, 2022/23 and 2023/24. The City Council’s share of this deficit was £133,784 (£45,595 in each of the three financial years). When the surplus of £38,883 was offset against the £45,595, a total deficit of £5,712 was calculated.
Report author: Jaclyn Gibson
Publication date: 07/01/2022
Date of decision: 04/01/2022
Decided at meeting: 04/01/2022 - Executive
Effective from: 14/01/2022