Agenda item

Revenue Budget 2018/19 and Medium Term Financial Strategy

Minutes:

Further To Minute No. 79c of the Cabinet meeting held on 14 February 2018, the Council considered the report of the Deputy Section 151 Officer on the proposed 2018/19 Revenue Budget for the Council and the Medium Term Financial Strategy for the next 5 years. This was the financial plan for the Council for the next 5 years, which was aligned to and supported the Corporate Plan and accounted for the implications of the Capital Strategy in delivering the Council’s ambitions and services for residents.

It was moved by Councillor Susan Snape, seconded by Councillor Peter Mullineaux that:

1. the revenue budget for 2018/19 as set out in Appendix A of the report be approved;

2. the 5 year Medium Term Financial Strategy 2018/19 through to 2022/23, as summarised at Appendix B of the report be approved; and

3. a Council Tax increase of 2.99% for 2018/19 be approved.

An amendment to the Motion was moved by Councillor Matthew Tomlinson, seconded by Councillor Paul Foster:

“That the budget proposals set out in the report be amended by the implementation of the following measures:

· Zero increase in Council Tax in 2018/19;

· Increase the target for transformation/shared services savings by £75,000;

· Seek additional income of £50,000 in 2018/19; and

· Utilise £96,000 from General Fund balances to balance the budget.”

Following debate and in accordance with Rule 16.5 in Part 4 of the Constitution, the voting on the amendment was recorded and the Members of Council present at the time, voted as follows:

FOR THE AMENDMENT:

Councillors Jane Bell, David Bird, Renee Blow, Mal Donoghue, Bill Evans, Derek Forrest, Paul Foster, Claire Hamilton, Harry Hancock, Mick Higgins, David Howarth, Ken Jones, Susan Jones, Keith Martin, Liz Mawson, Jim Patten, Mick Titherington, Caleb Tomlinson, Matthew Tomlinson, Ian Watkinson, Dave Watts, Paul Wharton, Jonathan Woodcock, David Wooldridge

AGAINST THE AMENDMENT:

Councillors Warren Bennett, Carol Chisholm, Colin Clark, Colin Coulton, Mary Green, Michael Green, Jon Hesketh, Cliff Hughes, Jim Marsh, Caroline Moon, Jacqui Mort, Peter Mullineaux, Barbara Nathan, Mike Nathan, Mike Nelson, Alan Ogilvie, John Rainsbury, Margaret Smith, Phil Smith, Susan Snape, David Suthers, Graham Walton, Karen Walton, Linda Woollard, Barrie Yates

The Mayor declared that the amendment was lost by 25 votes to 24.

A further amendment to the Motion was moved by Councillor Paul Wharton, seconded by Councillor Claire Hamilton:

“That the budget proposals set out in the report be amended by the implementation of the following measures:

· Zero increase in Council Tax in 2018/19;

· Introduce Local Member Grant Scheme in 2018/19 totalling £50,000;

· Remove My Neighbourhood Forums funding of £70,000 (part year saving 2018/19); and

· Utilise £201,000 from General Fund balances to balance the budget.”

Following debate and in accordance with Rule 16.5 in Part 4 of the Constitution, the voting on the amendment was recorded and the Members of Council present at the time, voted as follows:

FOR THE AMENDMENT:

AGAINST THE AMENDMENT:

Councillors Warren Bennett, Carol Chisholm, Colin Clark, Colin Coulton, Mary Green, Michael Green, Jon Hesketh, Cliff Hughes, Jim Marsh, Caroline Moon, Jacqui Mort, Peter Mullineaux, Barbara Nathan, Mike Nathan, Mike Nelson, Alan Ogilvie, John Rainsbury, Margaret Smith, Phil Smith, Susan Snape, Graham Walton, Karen Walton, Linda Woollard, Barrie Yates

ABSTENTION:

Councillor David Suthers

The amendment was tied by 24 votes to 24 with 1 abstention and the Mayor used his casting vote for the amendment, which was subsequently carried by 25 votes to 24 with 1 abstention.

The Mayor declared that the amendment was carried and now became the Substantive Motion.

An amendment to the Substantive Motion was moved by Councillor David Howarth, seconded by Councillor Harry Hancock:

“That the Substantive Motion be amended by the deletion of the following measures:

· Introduce Local Member Grant Scheme in 2018/19 totalling £50,000;

· Remove My Neighbourhood Forums funding of £70,000 (part year saving 2018/19); and

And that the following measures be implemented

· Incorporate into the budget a concessionary green waste collection charge of £5 (per bin) per household for residents who qualify for council tax support by allocating £25,000 from reserves. To be reviewed after year one when we have actual take up figures.

· Establish a contingency fund of £20,000 from reserves to proactively address fly-tipping of green waste resulting from the removal of universal green waste collections.

· Provide a budget of £12,500 in 2018/19, and £12,500 in 2019/2020, for the provision of bus shelters from the My Neighbourhood funding.

Following debate and in accordance with Rule 16.5 in Part 4 of the Constitution, the voting on the amendment was recorded and the Members of Council present at the time, voted as follows:

FOR THE AMENDMENT:

Councillors Jane Bell, Warren Bennett, David Bird, Renee Blow, Mal Donoghue, Bill Evans, Derek Forrest, Paul Foster, Claire Hamilton, Harry Hancock, Mick Higgins, David Howarth, Ken Jones, Susan Jones, Keith Martin, Liz Mawson, Barbara Nathan, Jim Patten, Mick Titherington, Caleb Tomlinson, Matthew Tomlinson, Ian Watkinson, Dave Watts, Paul Wharton, Jonathan Woodcock, David Wooldridge

AGAINST THE AMENDMENT:

Councillors Carol Chisholm, Colin Clark, Colin Coulton, Mary Green, Michael Green, Jon Hesketh, Cliff Hughes, Jim Marsh, Caroline Moon, Jacqui Mort, Peter Mullineaux, Mike Nelson, Alan Ogilvie, John Rainsbury, Margaret Smith, Phil Smith, Susan Snape, David Suthers, Graham Walton, Karen Walton, Linda Woollard, Barrie Yates

ABSTENTION:

Councillor Mike Nathan

The Mayor declared that the amendment was carried by 26 votes to 22 with one abstention and now became the new Substantive Motion.

Cllr Michael Green moved an amendment to the substantive motion. This related to any proposed removal of the Council Tax Support Scheme. After debate Cllr Michael Green decided to remove this amendment.

A vote was then taken on the new substantive motion. In accordance with Rule 16.5 in Part 4 of the Constitution, the voting on the new substantive Motion was recorded and the Members of Council present at the time, voted as follows:

FOR THE NEW SUBSTANTIVE MOTION:

AGAINST THE NEW SUBSTANTIVE MOTION:

The Mayor declared that the new substantive motion was lost by 25 votes to 24.

As the new substantive motion was lost, the meeting was then adjourned at 8.30pm to allow Group Leaders to discuss a way forward on the Budget for 2018/19. In accordance with good practice the Chief Executive advised the group leaders to identify what they could agree on and identify those areas of dispute.

The meeting resumed at 9.40pm

The Chief Executive reported that the Group Leaders had met and had agreed to put forward the Council’s original budget for consideration with the exception that there was full agreement that the Council Tax Support Scheme for the year 2019/2020 onwards in the Medium Term Financial Strategy should be removed. There were two areas of non-agreement namely:-–

· 2.99% increase in Council Tax in 2018/19

· Adding into the budget a concessionary green waste collection charge

In accordance with Rule 16.5 in Part 4 of the Constitution, the voting on the proposed budget (with the inclusion of the 2.99% increase in Council Tax in 2018/19) was recorded and the Members of Council present at the time, voted as follows:

FOR (with the inclusion of the 2.99% increase in Council Tax in 2018/19):

AGAINST (with the inclusion of the 2.99% increase in Council Tax in 2018/19):

The Mayor declared that the proposed Budget (with the inclusion of the 2.99% increase in Council Tax in 2018/19) was carried by 25 votes to 24.

In accordance with Rule 16.5 in Part 4 of the Constitution, a further vote was taken to provide an addition to the budget to incorporate a concessionary green waste collection charge. The vote was recorded and the Members of Council present at the time, voted as follows:

FOR:

AGAINST:

The Mayor declared that the additional request to incorporate in the budget a concessionary green waste collection charge was lost by 25 votes to 24.

Accordingly the following was

RESOLVED:

That the revenue budget for 2018/19 and the 5 year Medium Term Financial Strategy (MTFS) to 2022/23 as set out in the Table below were approved.

Agreed by Council 28th February 2018

MEDIUM-TERM FINANCIAL STRATEGY 2018/19 TO 2022/23

	FORECAST	FORECAST	FORECAST	FORECAST	FORECAST
PORTFOLIO	2018/19	2019/20	2020/21	2021/22	2022/23
	£000's	£000's	£000's	£000's	£000's

Leader	1,910	1,966	1,932	1,955	1,994
Finance	874	895	895	895	895
Corporate Support and Assets	5,287	5,230	5,356	5,462	5,571
Neighbourhoods & Streetscene	5,354	5,345	5,378	5,498	5,608
Public Health Safety & Wellbeing	422	437	452	465	475
Regeneration and Leisure	1,434	1,465	1,461	1,486	1,515
Strategic Planning & Housing	141	96	16	16	16

Pensions Triennial Review	0	0	200	200	200
Restructure savings	(210)	(410)	(410)	(410)	(410)
Staff Turnover Savings Target	(100)	(100)	(100)	(100)	(100)

TOTAL SERVICE BUDGETS	15,112	14,924	15,180	15,466	15,764

Financing and Investment	(2,563)	(2,479)	(2,438)	(2,438)	(2,438)

Transfers to/(from) earmarked reserves	30	(90)	30	30	30

BOROUGH COUNCIL BUDGET REQUIREMENT	12,579	12,355	12,772	13,058	13,356

FUNDED BY:
Revenue Support Grant/Tariff adjustment	0	494	494	494	494
Transition Grant	0	0	0	0	0
New Homes Bonus (net of City Deal payments)	(407)	(135)	(59)	0	0
Retained Business Rates (net of City Deal payments)	(4,293)	(4,293)	(4,293)	(4,293)	(4,293)
Council Tax	(7,467)	(7,516)	(7,616)	(7,766)	(7,826)

TOTAL FUNDING	(12,167)	(11,450)	(11,474)	(11,565)	(11,625)

FORECAST BUDGET GAP	412	905	1,298	1,493	1,731

18/19 BUDGET PROPOSALS:
Investment in Corporate Plan (net)	173	125	100	100	100
Net borrowing costs from Capital Strategy	45	140	520	880	900
Indicative Savings and income from Capital Strategy	0	0	(100)	(1,186)	(1,186)
Transformation and Shared Services savings	(270)	(580)	(615)	(615)	(615)
Release from Transformation Fund	(79)	0	0	0	0
Fees and Charges	(60)	(121)	(121)	(121)	(121)
Council Tax Increase of 1.99% from 2019/20		(152)	(307)	(465)	(626)

Removal of Council Tax Reduction Scheme		73	73	73	73
Council Tax increases at 2.99% for 2018/19	(221)	(221)	(221)	(221)	(221)

MTFS ASSUMPTIONS:
Contribution to Capital Asset reserve	0	0	0	562	465
Forecast net Business Rates Growth	0	0	(250)	(500)	(500)

	0	169	377	0	(0)
Use of General Fund Balance	0	(169)	(377)	(0)	0
FORECAST BUDGET (SURPLUS)/DEFICIT	0	0	0	0	0

Supporting documents: