The budget is an essential tool for controlling the Council’s finances and to demonstrate that it will have sufficient income to meet the objectives. One key part is to provide for contingencies and the need for reserves. The general reserve guidance is the reserve should be between (25 to 100%) or 3 and 12 months’ worth of expenditure. In addition, if we know the Council has specific projects, we need to set them as earmarked reserves for these (specific projects) or know expenditure in 2019/20. The Council’s Earmarked Reserves for 2019/20 are £100k for car parks and toilets. £30k Pendeen Playpark. £11,659 Plain an Gwarry and £3K Street Furniture; the total being £144,659.00.
It was highlighted in the budget that the council already have the funds ready for the car parks and toilets (acquiring a capital asset)/Plain an Gwarry work and these are not included in the precept demand, but are required to be shown in the budget. If we had a separate capital budget it would be shown there. We also need to raise revenue for Pendeen Playpark £30k and street furniture £3k, which along with the additional cost of running the devolution projects such as the library is why the precept demand has increased by a large amount.
The Council discussed the above and then on 14 January 2019:
RESOLVED: That the proposed budget presented for the financial year 2019/2020 £334,900 is agreed.
RESOLVED: That a precept request of £221,392 is made to Cornwall Council by 18 January 2019, an increase of 59.48 % on the previous year.