Issue - meetings

·       Common Good Budget 2025/26 - CORS/25/049  (pages 219 to 238)

·       Carbon Budget 2025/26 - CR&E/25/037 (pages 239 to 256)

The Council resolved:-

(i)             to note the content of the report and the appendices;

Balance Sheet

(ii)           to agree that the Council needs to find recurring funding solutions to meet recurring costs while retaining prudent reserves that will be available should they be needed, particularly given the wide range of financial risks that remain outside the control of the Council;

(iii)          having given due regard to the Council’s Financial Resilience Framework measures, Prudential Indicators, and Risk Appetite Statement, to approve the General Fund Capital Programme as detailed in Appendix 1;

(iv)          to approve the Prudential Indicators as detailed in Appendix 2;

(v)           to note the existing limit on the annual Cost of Financing Capital at 12% of projected Net Revenue;

(vi)          to approve the Revenue and Capital Reserves Statement for 2025/26 as detailed in Appendix 6 of the report;

(vii)        to approve the use of the Capital Fund to support any financial implications arising from the Council’s support to owners of properties affected by RAAC, see Section 8 of the report;

(viii)       to agree to continue the voluntary severance/early retirement scheme (VSER), funded through the Service Concession Reserve, to support the Council's commitment to no compulsory redundancies;

Medium-Term Financial Projections

(ix)          to instruct the Chief Officer - Finance to report to the Finance and Resource Committee with an updated Medium Term Financial Strategy no later than December 2025;

Risks

(x)           to instruct the Chief Officer - Finance to  monitor the delivery of the approved budget and advise the Finance and Resources Committee of any in year changes required, via the Financial Performance reports;

Revenue Budget

(xi)          having given due regard to the contents of the report and appendices and taken advice from the Chief Officer - Finance in relation to the use of nonrecurring funding, specifically in respect of the use of Reserves; and had due regard to protected characteristics and how the authority could reduce inequalities of outcome caused by socio-economic disadvantage in terms of the Equality Act 2010, to approve the use of various savings options to set at least a balanced budget for financial year 2025/26 as detailed in Appendices 3, 4, 5 and 7;

(xii)        to approve funding awards for the Cultural Investment Framework for 2025/26, and note the forecast indicative funding for the following two years as detailed in Appendix 3;

(xiii)       to note the Commissioning Intentions and approve Service Standards as described in Appendix 11 of the report, subject to any amendments approved and included in (xi) above, noting that the Chief Officer - Finance had confirmed, as far as possible, that the Commissioning Intentions and Service Standards being implemented were consistent with the draft budget 2025/26;

(xiv)       to instruct the Chief Executive, in light of the notified retirement of the current postholder of the Chief Officer - Capital,  to commence a recruitment and selection process to consider internal and external applications together, in accordance with Appendix 3 of the Standing Orders: Protocol for Appointment of Chief Officers;

Annual Revenue Budget -  ...  view the full decision text for item 3

The Council had before it a report by the Chief Officer - Finance which provided the Council with information on both the revenue budget for 2025/26 and the capital programme for the period 2025/26 to 2029/30. It aimed to enable the Council to set the approved budgets and Council Tax rate for main and second homes for the year commencing 1 April 2025. In addition, it addressed the need for the Council to decide on an Empty Property Relief Scheme following the devolution of Non-Domestic Rates Empty Property Relief to Local Government. 

The Council also had before it a report by the Chief Officer - Finance which provided details of the draft Common Good budget for 2025/26, to enable the Council to approve a final budget that would take effect on 1 April 2025. 

The Council also had before it a report by the Chief Officer - Strategic Place Planning which sought approval for the Council Carbon Budget for the financial year 2025-26, to support the Council Climate Change Plan.

The reports recommended:-

that the Council -

          Balance Sheet

(1)           note the projected balance sheet position including the reserves as at 31 March 2025, shown at Appendix 1;

(2)           agree that the Council needs to find recurring funding solutions to meet recurring costs while retaining prudent reserves that will be available should they be needed, particularly given the wide range of financial risks that remain outside the control of the Council;

(3)           note that the Council’s Risk Appetite Statement reflects a cautious appetite for longer term capital and financial investment, and remains averse to risks associated with impairing financial stewardship, internal controls, and financial sustainability;

(4)           give due regard to the Council’s Financial Resilience Framework measures, included at Appendix 2, and Prudential Indicators, at Appendix 3, when setting Council Tax and the Revenue and Capital budgets;

(5)           approve the Prudential Indicators as attached at Appendix 3 and agree to limit the annual Cost of Financing Capital at 11% of projected Net Revenue;

(6)           approve the General Fund Capital Programme as attached at Appendix 4;

(7)           consider the capital projects described in Appendix 5, which were referred to the General Fund Capital Programme;

(8)           approve the Revenue and Capital Reserves Statement for 2025/26 as detailed in Appendix 6;

(9)           approve the use of the Capital Fund to support any financial implications arising from Council’s support to owners of properties affected by RAAC, see Section 8;

(10)       continue to retain the Service Concession Reserve to support the commitment to no compulsory redundancies, as a funding source for continued use of the voluntary severance/early retirement scheme (VSER);

Medium-Term Financial Projections

(11)       note the forecast medium-term financial projection for the period ending 31 March 2030 as shown in paragraph 5.18;

(12)       instruct the Chief Officer - Finance to refresh the Medium Term Financial Strategy and report to the Council by the end of September 2025 in line with the requirements of the budget protocol;

Risks

(13)       note the Aberdeen City IJB is forecast to  ...  view the full minutes text for item 3