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Decision details
Council Tax 2013/14 - Collection Fund Adjustments
Decision Maker: Cabinet.
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
To agree the levels of Collection Fund
Adjustment.
Decision:
That the projection detailed in the report of the Head of Finance and Customer Services be agreed and as a result the distribution of the surplus as set out below be agreed:
Preceptor |
£ |
Maidstone Borough Council |
32,033 |
Kent County Council |
139,431 |
Kent Police Authority |
18,463 |
Kent and Medway Towns Fire Authority |
9,033 |
Amount Distributed |
198,960 |
Reasons for the decision:
Members will be aware that this Council is required to maintain a Collection Fund which accounts for all local tax payments. The income into the Fund is used to pay the precepts to Kent County Council, Kent Police Authority, Kent Fire Authority and the equivalent requirement of this Council (which includes Parish Precepts).
For the proper maintenance of the Collection Fund it is necessary to assess, on an annual basis, the likely balance on the Collection Fund as at 31 March of each year. Any balance, either positive or negative, must be taken into account in the following financial year. However, the balance on the fund, under the statutory conditions relating to Council Tax, does not become a credit or charge on this Council solely but needs to be split proportionately between Kent County Council, Kent Police Authority, Kent Fire and Rescue Authority and this Authority on the basis of the demand or precept in the current financial year.
The current situation regarding Council Tax in 2012/13 is projected to 31st March 2013 in Appendix A to the report of the Head of Finance and Customer Services. This Appendix details the precepts and demands on the Fund. These total £91,178,935.
Appendix A to the report of the Head of Finance and Customer
Services also details the latest situation regarding Council Tax
bills dispatched, incorporating exemptions and
discounts. Total income is now
anticipated to be £91,224,430; therefore a surplus of
£45,495 is anticipated for 2012/13. The Collection Fund has produced this surplus due
to the continuing increase in properties on the valuation list
although this is at a reducing rate reflecting the current economic
climate. The impact of this is
reflected in the tax base report considered by General Purposes
Committee on 19 December 2012. The
projection also includes an allowance for properties that will come
on to the valuation list up to March 2013.
The
actual Council Tax surplus, as at 31 March 2012, was
£153,465. The predicted outturn
at this time last year was less than £1,000 and a value of
zero was taken into account in setting the Council Tax in
2012/13. Therefore, there is a balance
of £153,465 resulting from the under distribution in this
year. This balance must be distributed
during 2013/14.
In
total, Appendix A to the report of the Head of Finance and Customer
Services estimates that there will be a net surplus on the
Collection Fund for 2012/13 of £198,960.
In line
with the Local Government Finance Act 1992 it is necessary to
declare the distribution of any surplus or deficit on the
Collection Fund and for this reason it is recommended that the
surplus be distributed in line with the table below which
apportions the surplus in line with the preceptors share of the
Council Tax as set out in Appendix A.
Preceptor |
£ |
Maidstone Borough Council |
32,033 |
Kent County Council |
139,431 |
Kent Police Authority |
18,463 |
Kent and Medway Towns Fire Authority |
9,033 |
Amount Distributed |
198,960 |
Alternative options considered:
It is a
statutory requirement that any adjustment be calculated annually
and Cabinet could not choose to ignore this decision.
Cabinet
could vary the figures used in the estimate provided at Appendix A
however they are based on data from the Council Tax system and
projections developed from past experience and known
factors. They represent a reasonable
estimate of the situation.
Should Cabinet chose to vary the data and distribute a different surplus or deficit this would affect the balance on the Collection Fund and the cash flow of the Council.
Reason Key: Budget Reports;
Wards Affected: (All Wards);
Details of the Committee: None
Representations should be made by: 26 October 2012
Other reasons / organisations consulted
Internal Communication/Report to Corporate
Leadership Team
Consultees
Corporate Leadership Team
Heads of Service
Members
Contact: Email: paulriley@maidstone.gov.uk.
Report author: Paul Riley
Publication date: 21/12/2012
Date of decision: 19/12/2012
Decided: 19/12/2012 - Cabinet.
Effective from: 04/01/2013
Accompanying Documents: