Agenda item

Report number HOF148 by the Head of Finance.                (Enclosure)

 

Please make sure you bring your copy of the budget book to the meeting.

Decision:

 

That the Council:

 

General Fund (Revenue)

a.   sets a General Fund budget requirement of £14.612M for 2011/12 (inclusive of special expenses but excluding of parish precepts)

b.   approves a Council Tax freeze for 2011/12 (including special expense areas)

c.    approves the original base estimate for 2011/12 and indicative base estimates for 2012/13, 2013/14 and 2014/15 as detailed in the summary at Appendix A page 1;

d.   approves increases in Fees and Charges for 2011/12 as set out in Appendix D

e.   approves the movement in Revenue Reserves and the statement contained at Appendix C

 

Capital and investment Programmes

f.    approves the General Fund Capital programme for 2011/12 to 2014/15 detailed at Appendix B page 1

g.   approves the indicative Housing Investment programme for 2011/12 to 2014/15 detailed at Appendix B page 2

h.   approves the Capital Financing statement detailed at Appendix B page 3

i.     approves the Capital Reserves statement contained at Appendix C

 

Housing Revenue Account (HRA)

j.     sets dwelling rent increases in accordance with Government guideline rent providing an average rent of £66.03 (and an average rental increase of 6.67%)

k.   sets an increase in garage rents of 4.6%

l.     increases service charges by 4.6% 

m.approves the Housing Revenue Account for the year 2011/12 and indicative years 2012/13 and 2014/15 shown at Appendix A page 7

 

Treasury Management and prudential indicators

n.   to approve the Treasury Management Strategy at Appendix E to report HOF148

 

Decision:

 

PART B: Council Tax setting 2011/12

 

1)      That the following amounts be calculated by the Council for the year 2011/12 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992 (as amended)

             a)    £89,525,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (2) (a) to (e) of the Act (including special expense and parish precepts).

b)       £73,504,000 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (3) (a) to (c) of the Act.

c)       £16,021,000 being the amount by which the aggregate at a) above exceeds the aggregate at b) above, calculated by the Council, in accordance with Section 32(4) of the Act, as its budget requirement for the year.

d)       £8,380,000 being the aggregate of the sums which the Council estimates will be payable for the year into its General Fund in respect of redistributed Non-Domestic Rates and Revenue Support Grant increased by the amount of the sum to be transferred from the Collection Fund to the General Fund

e)    £163.46 being the amount at c) above less the amount at d)              above, all divided by the Council's tax base of 46,744.4 as  recorded in minute 42 of the cabinet meeting of  6 December 2010, in accordance Section 33(1) of the Act, as the basic amount of its Council Tax for the year 2011/2012.

             f)     £1,902,222 being the aggregate amount of all special items referred to in Section 34(1) of the Act.

             g)    £122.76 being the amount of e) above, less the result given by dividing the amount of f) above by the Council's tax base relating to special items as set on 6 December, 2010 calculated by the Council in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for year for dwellings in those parts of its area to which no special item relates.

h)    Part of the Council’s area                       Band D equiv.

        

 

              being calculated by adding to the amount at (g) above the amounts of special item relating to dwellings in those parts of the Council's area, divided in each case by the individual tax bases as recorded in minute 49 in accordance with Section 34(3) of the Act, as the basic amounts of its Council Tax for the year for dwellings in those parts of its area to which special item relates.

      i)     The amounts on the attached schedule (Appendix A to Part B), being the amounts given by multiplying the amounts at g) above and h) above by the number which, in the proportion set out in Section 5(1) of the Act,  is applicable to dwellings listed in valuation Band 'D', calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

      j)     That it be noted that for the year 2011/12 Lincolnshire County Council has stated the following amounts as a precept issued to the Council in accordance with Section 40 of the Local Government Finance Act, 1992, for each of the categories of dwellings shown below:-

Valuation Band

 

A      £	B     £	C      £	D      £	E     £	F     £	G     £	H      £
710.46	828.87	947.28	1065.69	1302.51	1539.33	1776.15	2131.38

 

      k)    That it be noted that for the year 2011/12  Lincolnshire Police Authority has stated the following amounts as a precept issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:-

 

Valuation Band

 

A      £	B     £	C      £	D      £	E     £	F     £	G     £	H      £
119.52	139.44	159.36	179.28	219.12	258.96	298.80	358.56

 

 

      l)     That, having calculated the aggregate in each case of the amounts at i), j) and k) above, the Council, in accordance with Section 30 (2) of the Local Government Finance Act 1992, hereby sets the amounts in Appendix B to part B as the levels of Council Tax for the year 2011/12 for the categories of dwellings shown in Appendix A to part B.

 

An addendum to report number HOF148 was circulated at the meeting. The Head of Finance summarised the key changes for Members:

 

• The Grantham precept had been amended to £4.23
• Revised charges for Langtoft Special Expense Area
• Charges for licensing would remain at the same level as 2010/11, pending a review and consultation the proposed increases
• Information in respect of the Lincolnshire Police Authority precept, which was not available when papers were circulated.

 

The Head of Finance explained that the budget process had been particularly challenging, with work starting in May 2010. Working with budget holders had driven out savings through the centralisation of budgets, smarter procurement, looking at different ways or working and vacancy management. The Council had undertaken consultation with residents to identify their priorities for service provision, which were predominantly around the cleaner, greener, safer agenda.

 

The Council’s Section 151 officer confirmed that in his opinion the budget was constructed on sound principles and was sustainable. He highlighted the risks of a four-year plan, particularly as the council only had details on two years of grant settlement. He thanked Members and officers for their support and hard work throughout the budget process.

 

The Portfolio Holder for Assets and Resources proposed the council adopt the recommendations as detailed within report number HOF148. He stated that the budget had been prepared in challenging circumstances. He explained that preparations, underway from May 2010, were cognizant of the wider economic impact of any proposals on the district’s most vulnerable residents. The impact of increased fuel, energy and general costs were also highlighted.

 

The general fund was predominantly funded through council tax and government grant. The Council’s grant settlement constituted a reduction in funding of approximately 14% in 2011/12. The council also faced reductions in areas including car parking income and building control fees. This left a funding gap in excess of £2million over the next two to three years. There was also a requirement for the Council to make arrangements to cover increased service costs in some areas. Councillor Taylor thanked the Resources Policy Development Group for their support in the budget setting process and specifically in respect of the fees and charges proposals.

 

The proposed budget included a Council Tax freeze in 2011/12. South Kesteven District Council’s share of the council tax still represented one of the lowest levels in the country.

 

In respect of the Housing Revenue Account, proposals were under consultation that would see councils take on a proportion of the national housing debt instead of making negative subsidy payments. If the reform was passed, it was likely that any debt-related costs would be lower than the level of negative subsidy the Council had to bear. The Council remained on track to deliver against the decent homes standard.

 

Items within the capital programme were reviewed as on a case-by-case basis and adapted to focus around priorities. It was sustainable on a medium-term basis without having to borrow. Officers had been asked to bring forward a more challenging asset disposal policy. The Housing Investment Programme continued to deliver significant investment in the housing stock.

 

The Assets and Resources Portfolio Holder commended the budget to Council for adoption. The motion was seconded by the Leader of the Council, who explained that the Council had taken a managed approach in preparing its budget, protecting frontline services. The Council had also introduced a range of new initiatives around town centre street-cleaning, continued commitment to CCTV and initiatives to support businesses. The new programmes were based on the outcome of consultation with communities in South Kesteven. A key feature of investment was encouraging people into the district’s town centres.

 

Members then had the opportunity to debate the budget. Several Members praised the budget, which was put together under challenging conditions and congratulated all those who had been involved. One Member questioned why the Council had not challenged the grant settlement. One Member highlighted a report by Secretary of State for Communities and Local Government and suggested the Council should consider capping the pay of its senior officers. Other Members disputed this and stated that the overall remuneration package for officers in South Kesteven was low when compared to similar authorities. Members noted that the Council still had high levels of reserves which should be directed at specific projects, rather than serving as a general float. The suggestion was made that quarterly reports on progress against the budget be closely scrutinised to ensure the Council was on track. Members noted the savings that had been achieved over the past four years.

 

In summing up, the Portfolio Holder thanked Members for their support. A request was made for a recorded vote. In accordance with Council Procedure Rule 16.4, this request needed the support of ten Members. A show of hands indicated more than ten Members supported the request.

 

A recorded vote was taken on recommendations a) to e) in HOF148

For	Against	Abstain
Councillor Adams		Councillor Davidson
Councillor Auger		Councillor Holmes
Councillor Bisnauthsing		Councillor Selby
Councillor Mrs Bosworth
Councillor Brough
Councillor Broughton
Councillor Carpenter
Councillor Mrs Cartwright
Councillor Chivers
Councillor Cook
Councillor Exton
Councillor Mrs Gaffigan
Councillor Harvey
Councillor Hearmon
Councillor Helyar
Councillor Higgs
Councillor Howard
Councillor Mrs Jalili
Councillor Sam Jalili
Councillor Joynson
Councillor Mrs Kaberry-Brown
Councillor Jock Kerr
Councillor Vic Kerr
Councillor Lovelock
Councillor Martin-Mayhew
Councillor McBride
Councillor Moore
Councillor Mrs Neal
Councillor Nicholson
Councillor Parkin
Councillor Mrs Radley
Councillor Russell
Councillor Bob Sandall
Councillor Susan Sandall
Councillor Scott
Councillor Smith
Councillor Mrs Smith
Councillor Stokes
Councillor Taylor
Councillor Thompson
Councillor Turner
Councillor Andrea Webster
Councillor Wheat
Councillor Avril Williams
Councillor Mike Williams
Councillor Wood
Councillor Wootten
47	0	3

 

Recommendations a) to e) in report HOF148 were adopted.

 

15:15          Having declared a personal and prejudicial interest in aspects of the Capital Programme, Councillor Smith left the meeting

 

The Council took a recorded vote on recommendations f) to i) in report number HOF148. Councillor Bisnauthsing was not in the room when this vote was taken.

 

For	Against	Abstain
Councillor Adams
Councillor Auger
Councillor Mrs Bosworth
Councillor Brough
Councillor Broughton
Councillor Carpenter
Councillor Mrs Cartwright
Councillor Chivers
Councillor Cook
Councillor Davidson
Councillor Exton
Councillor Mrs Gaffigan
Councillor Harvey
Councillor Hearmon
Councillor Helyar
Councillor Higgs
Councillor Holmes
Councillor Howard
Councillor Mrs Jalili
Councillor Sam Jalili
Councillor Joynson
Councillor Mrs Kaberry-Brown
Councillor Jock Kerr
Councillor Vic Kerr
Councillor Lovelock
Councillor Martin-Mayhew
Councillor McBride
Councillor Moore
Councillor Mrs Neal
Councillor Nicholson
Councillor Parkin
Councillor Mrs Radley
Councillor Russell
Councillor Bob Sandall
Councillor Susan Sandall
Councillor Scott
Councillor Selby
Councillor Mrs Smith
Councillor Stokes
Councillor Taylor
Councillor Thompson
Councillor Turner
Councillor Andrea Webster
Councillor Wheat
Councillor Avril Williams
Councillor Mike Williams
Councillor Wood
Councillor Wootten
48	0	0

 

Recommendations f) to i) in report HOF148 were adopted.

 

15:19          Councillor Smith returned to the meeting

15:21                   Councillor Bisnauthsing returned to the meeting

 

The Council took a recorded vote on recommendations j) to n) and part 2 (Council tax setting) of report number HOF148. Councillor Holmes chose not to cast a vote.

 

For	Against	Abstain
Councillor Adams		Councillor Davidson
Councillor Auger		Councillor Selby
Councillor Mrs Bosworth
Councillor Brough
Councillor Broughton
Councillor Carpenter
Councillor Mrs Cartwright
Councillor Chivers
Councillor Cook
Councillor Exton
Councillor Mrs Gaffigan
Councillor Harvey
Councillor Hearmon
Councillor Helyar
Councillor Higgs
Councillor Howard
Councillor Mrs Jalili
Councillor Sam Jalili
Councillor Joynson
Councillor Mrs Kaberry-Brown
Councillor Jock Kerr
Councillor Vic Kerr
Councillor Lovelock
Councillor Martin-Mayhew
Councillor McBride
Councillor Moore
Councillor Mrs Neal
Councillor Nicholson
Councillor Parkin
Councillor Mrs Radley
Councillor Russell
Councillor Bob Sandall
Councillor Susan Sandall
Councillor Scott
Councillor Mrs Smith
Councillor Stokes
Councillor Taylor
Councillor Thompson
Councillor Turner
Councillor Andrea Webster
Councillor Wheat
Councillor Avril Williams
Councillor Mike Williams
Councillor Wood
Councillor Wootten
45	0	2

 

Recommendations j) to n) and Part B of report HOF148 were adopted.