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Agenda item

Determination of Budget 2017/18 (and indicative for 2018/19 and 2019/20) - General Fund, Housing Revenue Account and associated Capital Programmes

Report number CFM409 of the Leader of the Council, the Executive Member, Resources and the Executive Member, Housing.                                                              (Enclosure)

Minutes:

Decision:

 

Part A

 

In relation to the General Fund – Revenue

 

a.     To set a General Fund budget requirement of £12.441M for 2017/18 shown at Appendix A to report number CFM409 (inclusive of special expenses) taking into consideration the savings and efficiencies shown at Appendix B to report number CFM409

b.     To approve a Council Tax increase of £4 (Band D equivalent) for 2017/18 

c.     To note the indicative base estimates for 2018/19 and 2019/20 as detailed in the summary at Appendix A to report number CFM409.

d.     To approve the fees and charges as shown at Appendix C to report number CFM409

e.     To approve a pay award of 1% for 2017/18 based on the national award

 

In relation to the General Fund – Capital

 

f.       Approve  the  General  Fund  Capital  programme  for  2017/18  to  2021/22 detailed at page 1 of Appendix D to report number CFM409

g.     Approve the Capital Financing statement detailed at page 2 Appendix D to report number CFM409

 

In relation to the General Fund – Reserves and Balances

 

h.     To approve the use of reserves as detailed at Appendix E to report number CFM409

 

Treasury Management Strategy and Prudential Indicators

 

i.       To approve the Treasury Management Strategy provided at Appendix F to report number CFM409

 

In relation to the Housing Revenue Account – Revenue

 

j.       To  approve  dwelling  rent  decrease  of  1%  providing  an  average  rent  of £79.28 (an average rental decrease of 81p per week)

k.     To approve an increase in garage rents of 2%

l.       To approve an increase of 3.4% in service charges for communal facilities and community rooms

m.    To approve an increase in shared ownership rents by 2% 

n.     To  approve  the  Housing  Revenue  Account  for  the  year  2017/18  and indicative years 2018/19 and 2019/20 shown at Appendix G to report number CFM409

o.     To approve a pay award of 1% for 2017/18 based on the national award

 

In relation to the Housing Revenue Account – Capital

 

p.     Approve  the  indicative  Housing  Investment  Programme  for  2017/18  to 2021/22 detailed at page 1 of Appendix H to report number CFM409

q.     Approve the Capital Financing statement detailed at page 2 of Appendix H to report number CFM409

 

In relation to the Housing Revenue Account – Reserves and Balances

 

r.      To approve the use of the reserves as detailed at Appendix I to report number CFM409.

 

Pay Policy Statement

 

s.     To approve the pay policy statement shown at Appendix J to report number CFM409

 

Part B

 

1)      That the following amounts be calculated by the Council for the year 2017/18 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992 (as amended)

 

a)      £63,160,000 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)        £50,104,000 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)        £13,056,000 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)        £4,625,000 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)      £182.81 being the amount at c) above less the amount at d) above, all divided by the Council's tax base of 46,119.4 as  recorded in minute 26 of the Executive meeting of  5 December 2016, in accordance with Section 33(1) of the Act, as the basic amount of its Council Tax for the year 2017/18.

f)       £2,173,306 being the aggregate amount of all special items referred to in Section 34(1) of the Act.

 

g)      £135.68 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 5 December 2016, calculated by the Council in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special item relates.

 

h)      Part of the Council’s area being calculated by adding to the amount at (g) above the amounts of special items relating to dwellings in those parts of the Council's area, divided in each case by the individual tax bases as recorded in minute 33 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.

 

Parish

Adjusted Band D Equivalents

 

No.

Grantham combined

10655.95

Stamford combined

6893.98

Bourne Combined

5282.73

Allington

342.90

Ancaster

552.60

Aslackby

109.18

Barholm & Stowe

33.19

Barkston and Syston combined

243.74

Barrowby

706.11

Baston

580.12

Belton & Manthorpe

203.70

Billingborough

455.74

Bitchfield & Bassingthorpe

54.99

Boothby Pagnell

63.59

Braceborough & Wilsthorpe

139.44

Ropsley, Humby, Braceby, Sapperton combined

318.86

Burton Coggles

40.60

Careby

76.85

Carlby

203.91

Carlton Scroop and Normanton combined

124.64

Castle Bytham

293.28

Caythorpe & Frieston

508.75

Claypole

508.72

Colsterwoth, Gunby & Stainby, North Witham combined

745.20

Corby Glen & Birkholme

398.12

Counthorpe & Creeton

26.94

Deeping St James

2408.09

Denton

120.40

Dowsby

52.99

Dunsby

44.58

Stoke Rochford and Easton combined

84.92

Edenham

113.36

Fenton

59.37

Folkingham

268.73

Foston

218.99

Fulbeck

217.04

Greatford

126.70

Great Gonerby

719.40

Great Ponton

125.31

Haconby & Stainfield

184.18

Harlaxton

336.76

Heydour

151.28

Honington

66.46

Horbling

157.93

Hougham

77.72

Hough-on-the-Hill

166.15

Ingoldsby

114.01

Irnham

110.45

Kirkby Underwood

80.31

Langtoft

750.41

Lenton, Keisby & Osgodby

65.43

Little Bytham

109.78

Little Ponton & Stroxton

67.46

Londonthorpe & Harrowby without combined

1682.23

Long Bennington

927.21

Market Deeping

2149.21

Marston

153.21

Morton & Hanthorpe

821.00

Old Somerby

90.15

Pickworth

74.02

Pointon & Sempringham

189.06

Rippingale

339.30

Sedgebrook

142.41

Skillington

134.24

South Witham

461.92

Stubton

73.05

Swayfield

144.58

Swinstead

81.22

Tallington

247.47

Thurlby

794.73

Toft Lound & Manthorpe

139.85

Uffington

314.74

Welby

81.38

Westborough & Dry Doddington

146.23

West Deeping

116.23

Witham-on-the-Hill

98.39

Woolsthorpe

136.76

Wyville cum Hungerton

18.77

 

          

i)       The amounts on the attached schedule (Appendix A to Part B, report number CFM409), 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 theCouncil, 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 2017/18, 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

     £

782.28

912.66

1043.04

1173.42

1434.18

1694.94

1955.70

2346.84

 

k)      That it be noted that for the year 2017/18, Police and Crime Commissioner 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

     £

136.98

159.81

182.64

205.47

251.13

296.79

342.45

410.94

 

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 of report CFM409 as the levels of Council Tax for the year 2017/18 for the categories of dwellings shown in Appendix A to Part B of report CFM409.

 

The Chairman drew Members’ attention to an addendum to Part B of report number CFM409, which incorporated precept information for Lincolnshire County Council and Lincolnshire Police, both of which had determined their requirements after the report had been issued.

 

The Leader of the Council introduced report number CFM409 which contained the Executive’s Budget Recommendations for 2017/18 and indicative budgets to 2019/20 for the General Fund, Housing Revenue Account and associated capital programmes. In proposing the recommendations the Leader explained that the proposals continued to build on the self-financing strategy that had been established, meeting priorities, being entrepreneurial and investing in business, while continuing to improve efficiencies and generate income. He emphasised an ongoing commitment to raise the district’s profile through continued delivery of a festival programme. Additional resources had also been provided for street cleaning and refuse collection in response to residents’ feedback.

 

Members’ attention was drawn to the community fund, which had supported a range of projects across the district. The proposed Budget included further commitment to this fund.

 

Additional resources had also been committed to the production of the new Local Plan, which was a key document in delivering business and housing growth. 3,700 new homes were proposed to be delivered as part of Spitalgate Heath garden village, which was designated as part of a national programme that was designed to unlock the potential of whole development sites and expedite delivery. During 2017/18 work was also expected to commence on the new multiplex cinema in Grantham.

 

The Housing Revenue Account remained in a positive position. The Budget proposals continued to fund the Housing Investment Programme, which would be supported by a new Housing Strategy. Revenue generation had been affected by the Government’s rent reduction policy meaning savings and efficiencies had to be found. Despite this, additional funding had been designated for neighbourhood improvements and providing more insulation for the housing stock.

 

Progress had been made on the Council’s digital agenda, with more services having been made available on the Council’s website.

 

Those recommendations that related to the General Fund were seconded by the Executive Member, Finance and IT (recommendations a to i, r to s, and Part B). He stated that the 2017/18 budget and projections had been set against the backdrop of the 2015 spending review, which introduced the concept of core spending power, council tax increases and a 4-year deal which saw successful applicant councils given a 4-year funding settlement. This was based on submission of suitable efficiency plans that demonstrated how councils would manage reductions in Revenue Support Grant and move towards self-financing. South Kesteven District Council was awarded a 4-year deal, which gave a firmer idea of funding over that period. The forward-projections made assumptions of year-on-year increases in council tax and the use of new homes bonus to fund frontline services. The 2015 spending review also promised a review of New Homes Bonus.

 

The Medium Term Financial Strategy had been reviewed and updated focusing resources on delivering corporate plan priorities and providing a more flexible and responsive framework which put the Council on more of a business-like footing. Linked to this was a proposed investment of £2.8m into the Local Authority Controlled Company. The Capital Programme remained fully funded with no requirement to borrow.

 

Changes were expected to business rates, with the Government being committed to 100% business rate retention. Further information had yet to be provided on how this would affect the Council. The Executive Member also highlighted that the Government’s Fairer Funding Review could see resources shifted to areas of national priority.

 

Recommendations j to q were seconded by the Executive Member, Housing. The proposed budget made provision for continued investment to improve the quality of the housing stock with planned works including 5,700 central heating upgrades, providing 105 properties with external wall insulation, 10 roof replacements and 130 kitchen upgrades.

 

£8m had been previously been committed to supporting new build houses and work had begun on 27 units. The budget also provided funding to enable open market purchases where appropriate to increase the Council’s housing stock. The Executive Member reiterated that this was the second year of a national rent reduction programme, which would see the average weekly rent for a council tenant go down by approximately 81 pence. Ongoing improvements in the letting process had increased income by reducing the length of time properties were void.

 

The Council continued to set aside funding to make repayments against the loan taken out as part of the abolition of the Housing Revenue Account subsidy system. A comprehensive review of the Housing Business Plan was planned for 2017/18.

 

All three of the Executive Members who proposed or seconded the recommendations thanked Members for their input and their contributions into the budget-setting process. They also thanked the officers who had been involved for their work. During debate several other members of Council expressed their gratitude to the officers for their work.

 

Members from across the floor spoke in support of the Budget and raised questions that were answered by the Executive Members and officers. A summary of comments is provided below:

 

·         Members felt that the budget was fair and the books had been balanced well, leaving the Council in a strong financial position.

 

·         Some members noted the compound effect on the Council’s budget of opting for a £4 Council Tax increase rather than £5; the recommendation had taken account of consultation feedback and wider financial pressure on residents.

 

·         Support was expressed for the festivals in Grantham, Stamford and now Deeping and a suggestion was made about the introduction of a heritage event in Bourne.

 

·         Some disappointment was expressed because no provision had been made for Members to have a personal budget that they could use to support small projects in their Ward. Such an initiative had not been considered appropriated given the wider financial context.

 

·         Take up of online services had increased, with further services due to be added. Actual savings of £114k had been achieved, together with income from being able to reduce the authority’s footprint and rent out office accommodation to other organisations.

 

·         The number of new homes that the Council could build was restricted by the availability of land.

 

·         The workforce efficiency target built into the budget was an assessment of likely vacancies and the length of time recruitment would take; projected employee costs for these periods would not be included in the Budget.

 

·         In negotiating the leisure management contract, the Council had secured a zero management fee.

 

·         The Business Rate Volatility Reserve was used to cover costs arising by successful business rate appeals. This was a budgetary pressure that could not be accurately predicted and sat outside the control of the authority.

 

·         The level of the Insurance Reserve was due to historical claims that were settled during the financial year.

 

·         Government had recently announced a forthcoming fairer funding review. At the time of the meeting there was no information about how this might affect the authority.

 

·         Government had also announced further changes to the welfare and benefit system that could impact on residents. The Council would develop its response when more information was known about the potential impacts of the changes.

 

The Labour group had three amendments to the Budget that it wished to propose. A copy of the amendments had been circulated for all Members prior to the meeting (Appendix 1 to the minutes). The amendments requested £6k for consultation on improving the gateways into the district’s market towns, £5k for a feasibility study on the level of need and demand for a weekly bin collection for homes without external waste storage and £6k for the development of a business case for a new district-wide commercial waste collection service. In proposing the amendments, specific reference was made to the impression the gateways to each of the market towns gave to visitors and how it supported economic growth.

 

The proposer also stated that the extra funding in the budget for waste collection was welcomed, but highlighted that some properties did not have the benefit of external spaces for waste storage, so residents were forced to keep two-week’s worth of household waste in their homes. This was highlighted as a particular problem for residents living in small flats and single rooms. She stated that the final amendment relating to a business waste collection service had the potential to generate income for the authority and provide services to businesses in rural areas where providers that were purely commercial might be reluctant. The amendments were seconded.

 

The Leader responded to the proposed amendments and suggested that all of them could be covered within the £350k identified over the next three years to look at issues relating to street waste and cleansing and that the Policy Development Groups could play a key role in carrying out that work.

 

Other Members speaking in favour of the amendments highlighted the benefits that they would bring to residents and businesses through the enhancement of the public realm.

 

In light of the comments from the Leader about the possibility of incorporating the suggestions raised through the amendments within the existing budgetary provision (working with the PDGs), the amendments were withdrawn.

 

As debate returned to the substantive motion, further comments were made about the benefits for local communities and organisations that had been realised through the community fund and the additional investment in that pot. The Council had granted funding totalling £202k, which contributed to the total value of the projects of £1.06M.

 

Further support was given to the suggestion of a heritage event for Bourne. Reference was also made to land in Bourne that had been bequeathed for recreational purposes together with the suggestion that Grantham could benefit if land was bequeathed for social housing purposes.

 

In summing up the Leader recommended the budget to Council and stated that while South Kesteven District Council was not immune to the national financial situation, sound planning had left it in a stronger position than others and so far frontline services had been protected. He also referred to the geographic benefits enjoyed by the district and on how they had been capitalised, including the district’s festivals and attracting national names to perform at the Meres Leisure Centre. Reference was also made to the consultation that had been undertaken on the level of council tax and how it had been taken into account and influenced the recommended annual increase.

 

Members had been reminded that where a vote was taken on recommendations related to the making of calculations in accordance with the Local Government and Finance Act 1992, a recorded vote was required. For votes on recommendations not related to this Act, the electronic voting system was used.

 

Councillor Mrs. Sarah Stokes had left the meeting at 15:00 prior to any vote on the Budget. Councillor Adam Stokes was absent from the meeting during the first two recorded votes. He had, however returned to the Chamber for the electronic vote and the final recorded vote, in which he participated.

 

A recorded vote was taken on recommendations a to e:

 

For

Against

Abstain

Councillor Adams

 

 

Councillor Ashwell

 

 

Councillor Baxter

 

 

Councillor Mrs Bosworth

 

 

Councillor Broughton

 

 

Councillor Bryant

 

 

Councillor Mrs Cartwright

 

 

Councillor Chivers

 

 

Councillor M Cook

 

 

Councillor K Cooke

 

 

Councillor Coutts

 

 

Councillor Craft

 

 

Councillor Cunningham

 

 

Councillor Dilks

 

 

Councillor Dobson

 

 

Councillor Evans

 

 

Councillor Exton

 

 

Councillor Goral

 

 

Councillor Griffin

 

 

Councillor Jeal

 

 

Councillor King

 

 

Councillor Lee

 

 

Councillor Mapp

 

 

Councillor Morgan

 

 

Councillor Neilson

 

 

Councillor Powell

 

 

Councillor Reid

 

 

Councillor Robins

 

 

Councillor Russell

 

 

Councillor Sampson

 

 

Councillor Selby

 

 

Councillor Jacky Smith

 

 

Councillor Mrs Judy Smith

 

 

Councillor P Stephens

 

 

Councillor I Stokes

 

 

Councillor Mrs Sumner

 

 

Councillor Sumner

 

 

Councillor Turner

 

 

Councillor Ward

 

 

Councillor Webster

 

 

Councillor Westropp

 

 

Councillor Wilkins

 

 

Councillor Wood

 

 

Councillor Woolley

 

 

Councillor Mrs Wootten

 

 

Councillor Wootten

 

 

46

0

0

 

The recommendations were approved unanimously.

 

A recorded vote was taken on recommendations f to i

 

For

Against

Abstain

Councillor Adams

 

 

Councillor Ashwell

 

 

Councillor Baxter

 

 

Councillor Mrs Bosworth

 

 

Councillor Broughton

 

 

Councillor Bryant

 

 

Councillor Mrs Cartwright

 

 

Councillor Chivers

 

 

Councillor M Cook

 

 

Councillor K Cooke

 

 

Councillor Coutts

 

 

Councillor Craft

 

 

Councillor Cunningham

 

 

Councillor Dilks

 

 

Councillor Dobson

 

 

Councillor Evans

 

 

Councillor Exton

 

 

Councillor Goral

 

 

Councillor Griffin

 

 

Councillor Jeal

 

 

Councillor King

 

 

Councillor Lee

 

 

Councillor Mapp

 

 

Councillor Morgan

 

 

Councillor Neilson

 

 

Councillor Powell

 

 

Councillor Reid

 

 

Councillor Robins

 

 

Councillor Russell

 

 

Councillor Sampson

 

 

Councillor Selby

 

 

Councillor Jacky Smith

 

 

Councillor Mrs Judy Smith

 

 

Councillor P Stephens

 

 

Councillor I Stokes

 

 

Councillor Mrs Sumner

 

 

Councillor Sumner

 

 

Councillor Turner

 

 

Councillor Ward

 

 

Councillor Webster

 

 

Councillor Westropp

 

 

Councillor Wilkins

 

 

Councillor Wood

 

 

Councillor Woolley

 

 

Councillor Mrs Wootten

 

 

Councillor Wootten

 

 

46

0

0

 

The recommendations were approved unanimously.

 

An electronic vote was taken on recommendations j to s, which was carried unanimously.

 

A recorded vote was taken on Part B

 

For

Against

Abstain

Councillor Adams

 

 

Councillor Ashwell

 

 

Councillor Baxter

 

 

Councillor Mrs Bosworth

 

 

Councillor Broughton

 

 

Councillor Bryant

 

 

Councillor Mrs Cartwright

 

 

Councillor Chivers

 

 

Councillor M Cook

 

 

Councillor K Cooke

 

 

Councillor Coutts

 

 

Councillor Craft

 

 

Councillor Cunningham

 

 

Councillor Dilks

 

 

Councillor Dobson

 

 

Councillor Evans

 

 

Councillor Exton

 

 

Councillor Goral

 

 

Councillor Griffin

 

 

Councillor Jeal

 

 

Councillor King

 

 

Councillor Lee

 

 

Councillor Mapp

 

 

Councillor Morgan

 

 

Councillor Neilson

 

 

Councillor Powell

 

 

Councillor Reid

 

 

Councillor Robins

 

 

Councillor Russell

 

 

Councillor Sampson

 

 

Councillor Selby

 

 

Councillor Jacky Smith

 

 

Councillor Mrs Judy Smith

 

 

Councillor P Stephens

 

 

Councillor A Stokes

 

 

Councillor I Stokes

 

 

Councillor Mrs Sumner

 

 

Councillor Sumner

 

 

Councillor Turner

 

 

Councillor Ward

 

 

Councillor Webster

 

 

Councillor Westropp

 

 

Councillor Wilkins

 

 

Councillor Wood

 

 

Councillor Woolley

 

 

Councillor Mrs Wootten

 

 

Councillor Wootten

 

 

47

0

0

 

The recommendations were approved unanimously.

 

15:34 to 15:55 – the meeting was adjourned.

Supporting documents: