Agenda item

The Treasurer submitted a comprehensive report to provide an outline of the detailed budget report (for copy see file of minutes).

A further report had been circulated to Members prior to the meeting to provide information to enable Charter Trustees to approve the appropriate budget requirement for 2013/14 and basic level of council tax for 2013/14.

The Treasurer presented the reports and advised Charter Trustees that they had agreed a reduction for the Support Services and Premises for 2013/14. They would also have a reserve balance of £10,220.

Councillor Wilkes sought clarification on the National Insurance Contributions for the Mayor and Deputy Mayor, to ascertain if the allowances were paid weekly or monthly instead of a single payment would this result in nil contributions for National Insurance.

Members discussed this in detail.

The Clerk and Treasurer advised Charter Trustees that they would take advice on the National Insurance contributions and bring a report to a future meeting of the Charter Trust for the City of Durham.

Councillor Wilkes sought clarification on whether VAT was included in the Budget as the Parish Council accounts showed the amount of VAT reclaimed. He asked for copies of the documentation for the Charter Trust to show that VAT had been reclaimed for the last 5 years.

The Treasurer advised Charter Trustees that VAT was reclaimed on a quarterly basis and he was happy to share the documentation with Charter Trustees. They did submit final accounts which were subject to an external audit and that the budget was net of VAT. With regard to the lists circulated with the Revenue Outturn Report he would get clarification if these lists were gross or net of VAT but his understanding was that it was net of VAT as gross would require an income. He also advised Trustees that the accounts for Durham County Council would not show VAT as it was all recorded as cash flow.

Councillor Morgan moved and Councillor Holland seconded that the recommendation to approve the basic level of council tax of £3.80 be approved.

Resolved:

(i)                 That the progress in developing the 2013/14 budget be noted.

(ii)        That the budget requirement of £90,645 for 2013/14 be approved.

(iii)       That the basic level of council tax of £3.80 be approved.

(iv)       That a report be brought to a future meeting of the Charter Trust for the City of Durham on the National Insurance Contributions for the Mayor and Deputy Mayor.