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MAIDSTONE BOROUGH COUNCIL
RECORD OF DECISION OF THE Cabinet
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Decision Made: |
19 December 2012 |
COUNCIL TAX 2013/14 - COLLECTION FUND ADJUSTMENTS
Issue for Decision
To agree the levels of Collection Fund Adjustment.
Decision Made
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 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 |
Alternatives considered and why rejected
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.
Background Papers
None
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Should you be concerned about this decision and wish to call it in, please submit a call in form signed by any two Non-Executive Members to the Head of Change and Scrutiny by: 3 January 2013 |