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MAIDSTONE BOROUGH COUNCIL
RECORD OF DECISION OF THE Cabinet
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Decision Made: |
22 December 2010 |
COUNCIL TAX 2011/12 - COLLECTION FUND ADJUSTMENTS
Issue for Decision
To agree the levels of collection fund adjustments.
Decision Made
That the projected surplus on the Collection Fund as at 31
March 2011 relating to Council Tax, of £97,169, be split as follows, for the
purposes of setting the Council Tax for 2011/12:-
|
Authority |
Amount |
|
Maidstone Borough Council |
15,528 |
|
Kent County Council |
68,193 |
|
Kent Police Authority |
9,027 |
|
Kent & Medway Towns Fire Authority |
4,421 |
|
TOTAL |
97,169 |
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 along with Council Tax Benefit payments is used to pay the precepts to Kent County Council, Kent Police Authority, Kent Fire Authority and the equivalent demand from this council (which includes Parish Precepts).
For the Council Tax, which was introduced in 1993/94 it is necessary to assess on an annual basis, the likely balance on the Collection Fund as at 31 March of the current financial 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 Authority and this Authority on the basis of the demand or precept in the current financial year.
The current situation regarding Council Tax in 2010/11 is detailed in Appendix A to the report of the Head of Finance and Customer Services. This Appendix details the original estimated level of Council Tax income for the year, net of exemptions and discounts, to pay for precepts and demands on the Fund. This totals £89,227,337.
Appendix A to the report of the Head of Finance and Customer
Services also details the latest situation regarding Council Tax bills
despatched, incorporating exemptions and discounts. Total income is now
anticipated to be £89,309,028; therefore a small surplus of £81,691 is
anticipated for 2010/11. The Collection Fund has produced this small 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 9th December 2010. The projection also includes an
allowance for properties that will come on to the valuation list up to March
2011.
The actual Council Tax surplus, as at 31 March 2010, was
£81,457 of which £65,979 was taken into account in setting the Council Tax in
2010/11. Therefore, there is a balance of £15,478 from 2010/11 and this must
be used in 2011/12 to reduce Council Tax liability.
In total it is estimated that there will be a Council Tax
Collection Fund surplus anticipated for 2011/12 of £97,169 at 31 March 2011.
This is fully detailed in Appendix A to the report of the Head of Finance and
Customer Services.
Based on the appropriate Government Regulations, this
estimated surplus must be used to reduce the level of Council Tax in 2011/12.
However, this surplus must be made available to this council, Kent County
Council, Kent Police Authority and the Kent and Medway Towns Fire Authority in
proportion to the level of demand and precepts in the current year. The
detailed factors are shown in Appendix A to the report of the Head of Finance
and Customer Services. Therefore the amount of the 2010/11 surplus relating to
each as follows:-
|
Authority |
Amount |
|
Maidstone Borough Council |
15,528 |
|
Kent County Council |
68,193 |
|
Kent Police Authority |
9,027 |
|
Kent & Medway Towns Fire Authority |
4,421 |
|
TOTAL |
97,169 |
Alternatives considered and why rejected
It is a statutory requirement that this adjustment is made using this calculation method.
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: 5 January 2011 |