Agenda item

(A) Budget Setting 2007/2008

Report number CHF35 by the Corporate Head of Finance & Resources. 

                                                                                                      (Enclosure)

 

[Budget Book for 2007/2008    - separate enclosure]

 

(B)  Council Tax setting 2007/2008

 

DECISION:

 

PART A

 

1.            That a general fund budget requirement of £15.137 million for 2007/2008 (inclusive of special expenses)

2.            To approve a 4.94% Council Tax increase (excluding special expenses and parish precepts) for 2007/2008 which equates to an average increase of 4.88% when including special expenses for comparative purposes.

3.            To approve the revised revenue estimate for 2006/2007; original base estimate for 2007/2008; an indicative base estimate for 2008/2009 and 2009/2010 as detailed Appendix A page 1 (as re-issued to the meeting to take account of the Local Authority Business Growth Initiative (LABGI) funding awarded for 2006/7).

4.            To approve increases for fees and charges for 2007/2008 in accordance with the fees and charges strategy and summarised in Report CHFR26 to Cabinet and provided in detail within the council’s budget book.

5.            To approve the following within the 2007/8 revenue estimates (in light of the revised balances as at 31^st March 2007 following confirmation of LABGI funding on 27^th February 2007):-

 

                                                  i.            an estimate of £250,000 to support one off bids for “invest to save” which will be allocated according to the submitted business case, the proposed efficiency and CIPFA council’s priorities.

                                                ii.            an estimate for one off bids totalling £215,000 made up of one off bids as identified in paragraph 5.3 plus a contribution of £30,750 to Lincolnshire Police Authority to meet the cost of year two agreement towards the cost of the Police Community Support Officers

                                              iii.            a revenue contribution of £400,000 to capital programme to be applied to town centre development schemes in accordance with Category A priorities.

 

6.            To approve the revised capital programme for 2006/2007 and programme for 2007/2008, 2009/2010, details Appendix A page 10 - 12

7.            To authorise the capital programme funding proposals subject to an annual review of financial options by the Corporate Head of Finance and Resources, in consultation with the portfolio holder, during the preparation of the Statement of Accounts to optimise the use of the council’s resources.

8.            To approve the forecast balances of revenue and capital reserves contained at Appendix A page 2 as re-issued to the meeting to take account of LABGI

9.            To approve the adoption of prudential indicators and limits for 2007/2008 to 2009/2010 contained within part A of Appendix B to this report.

10.       To approve the treasury management strategy for 2007/2008 and the treasury prudential indicators contained within part B of Appendix B to this report.

11.       To approve the investment strategy 2007/2008 contained in the treasury management strategy (part b of appendix b) and the detailed criteria included in annex B1 to appendix B of this report.

 

Housing Revenue Accounts (HRA)

 

12.       To approve that dwelling rents are increased in accordance with government guidance.  The average rent will increase by 4.1% (a maximum increase of 4.1% plus £2 for individual cases).

13.       To approve an increase of 4.1% for garage rents and services charges.

 

PART B: COUNCIL TAX SETTING

 

1.            That the following amounts be calculated by the Council for the year 2007/8 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992 (as amended).

 

a)     £69,976,000 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.

 

b)     £53,804,000 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)     £16,172,000 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)     £9,673,000 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)     £146.48 being the amount at c) above less the amount at d)  above, all divided by the Council's tax base of 44,366.3 as recorded in minute 74 of the cabinet meeting of  4  December 2006, in accordance Section 33(1) of the Act, as the basic amount of its Council Tax for the year 2007/2008.

 

f)       £1,580,000 being the aggregate amount of all special items referred to in Section 34(1) of the Act.

 

g)     £110.88 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 4 December, 2006 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.
Grantham		152.10
Stamford		163.26
Bourne		141.48
Deeping St James		147.96
Market Deeping		180.27
Allington		148.32
Ancaster		159.12
Aslackby & Laughton		134.55
Barholm & Stow		119.43
Barkston & Syston		131.67
Barrowby		152.46
Baston		130.77
Belton & Manthorpe		114.39
Billingborough		133.38
Boothby Pagnell		114.75
Braceborough & Wilsthorpe		129.69
Careby,Aunby & Holywell		116.73
Carlby		138.15
CarltonScroop & Normanton		163.98
Castle Bytham		126.00
Caythorpe		141.30
Claypole		131.49
Colsterworth,Gunby & Stainby		142.65
Corby Glen		131.40
Denton		123.75
Dowsby		143.28
Dunsby		117.27
Edenham		135.45
Fenton		119.88
Folkingham		138.15
Foston		141.21
Fulbeck		134.10
Greatford		134.46
Great Gonerby		138.60
Great Ponton		149.40
Haconby		112.32
Harlaxton		145.71
Heydour		130.68
Horbling		113.40
Hougham		130.95
Hough-on-the-Hill		146.97
Ingoldsby		122.04
Irnham		115.20
Kirkby Underwood		122.76
Langtoft		147.24
Lenton,Keisby & Osgodby		113.76
Little Bytham		137.16
Little Ponton & Stroxton		122.04
Londonthorpe & Harrowby Without		121.23
Long Bennington		139.95
Marston		138.96
Morton		125.19
North Witham		125.10
Old Somerby		130.50
Pickworth		128.16
Pointon & Sempringham		143.28
Rippingale		152.91
Ropsley,Humby,Braceby & Sapperton		134.37
Sedgebrook		133.83
Skillington		145.80
South Witham		156.06
Stoke Rochford & Easton		134.37
Stubton		127.89
Swayfield		130.14
Swinstead		129.15
Tallington		128.70
Thurlby		119.52
Uffington		120.60
Welby		124.56
Westborough & Dry Doddington		117.45
West Deeping		134.01
Witham-on-the-Hill		135.99
Woolsthorpe		131.13
Wyville-cum-Hungerton		132.12

 

 

h)     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 74 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 2007/8 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      £
658.14	767.83	877.52	987.21	1,206.59	1,425.97	1,645.35	1,974.42

 

              k)    That it be noted that for the year 2007/8  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      £
87.72	102.34	116.96	131.58	160.82	190.06	219.30	263.16

 

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' of Part B as the levels of Council Tax for the year 2007/8 for the categories of dwellings shown in the Appendix.

 

The Resources and Assets Portfolio Holder moved the recommendations as printed in Part A of report number CHFR35 by the Corporate Head of Finance and Resources, points a) to m) and the recommendations in part B a) to l) incorporating all precepting authority bids. In doing so he stated that all members had had the opportunity to participate in budget preparation through the gateway process undertaken by the Council’s Development and Scrutiny Panels (DSPs). He also thanked the Financial Services team for the work they had done in formulating the budget. The low council tax base made budget preparation within government parameters challenging with some projects reliant on one-off Local Authority Business Growth Incentive (LABGI) funding. All useable reserves had been spent to ensure that the council was fit for purpose in future decades. This was seconded.

 

An alternative budget was proposed, seconded and copies circulated. This made provision for budgets to be allocated to ward councillors. Funds had been drawn from other service heads. The amended budget would support community based projects devolving spending to a lower level. The idea was in line with government initiatives included in the Local Government White Paper, the Sustainable Communities Bill and ideas being promoted by the Lyons Review

 

The Chief Executive reminded members of the Council that the Section 151 officer needed to examine proposals to consider their robustness and potential risks to the Council; to do this, an adjournment was necessary.

 

14:28-14:42 – The Chairman adjourned the meeting for the Section 151 Officer and Deputy to review the robustness and potential risks of the proposed budget alternative.

 

The Section 151 Officer stated that the alternative budget did not meet principle one of the Medium Term Financial Strategy (MTFS). £125,000 would be drawn from support services, which were fixed overheads including staff and property. These would need to be redistributed, making cuts necessary. Siphoning money from supplies and services could jeopardise the activity of the council and threaten other income streams. Monies earmarked from the Housing Revenue Account (HRA) could not be used as the HRA was a ring-fenced account. The Section 151 Officer could not support the proposal because she did not consider it to be robust and it exposed the council to significant risk.

 

Some Members commented that the principle behind the proposal was sound but were not able to support it because ideas were not presented earlier in the process. Those speaking against the amendment expressed concerns that the budget would be unlawful. The proposition was put to the vote and lost.

 

An amendment to the proposed budget was moved and seconded. This involved the transfer of Bourne Corn Exchange to the Bourne Special Expense Area (SEA), that licensing and Building Control Services should break-even within three years and that a new service head should be added including a budget for rural issues. This motion was withdrawn, as the proposer was happy for the Council to consider these ideas over a period of time.

 

A further amendment was proposed and seconded to: “refer the Ward Budget idea to the relevant DSP”. A recorded vote on the amendment was requested in accordance with Council Procedure Rule 16.4. This was supported by more than ten members.

 

The vote on the amendment was as follows.

 

FOR	AGAINST	ABSTAIN
Councillor Bisnauthsing	Councillor Auger	Councillor Sandall
Councillor Miss Channell	Councillor Brailsford
Councillor Mrs Gaffigan	Councillor Mrs Cartwright
Councillor Gibbins	Councillor Chivers
Councillor Howard	Councillor Conboy
Councillor F Hurst	Councillor Craft
Councillor J Hurst	Councillor Exton
Councillor Mrs Jalili	Councillor Fines
Councillor Joynson	Councillor Fisher
Councillor Kerr	Councillor Helyar
Councillor O’Hare	Councillor Hewerdine
Councillor Selby	Councillor Lovelock
Councillor Shorrock	Councillor Martin-Mayhew
Councillor Thompson	Councillor Moore
Councillor A Williams	Councillor Mrs Neal
Councillor M Williams	Councillor Parkin
Councillor Wood	Councillor Pease
Councillor Mrs Woods	Councillor Mrs Percival
	Councillor Mrs Radley
	Councillor N Radley
	Councillor Smith
	Councillor Mrs Smith
	Councillor Stokes
	Councillor G Taylor
	Councillor M Taylor
	Councillor Turner
	Councillor Webster
	Councillor Wheat
18	28	1

 

The vote on the amendment was lost.

 

Members speaking in favour of the proposed budget emphasised the council’s ambition to become a brilliant council against the increased expectations of members of the public. All members had the opportunity to participate in the preparation of spending plans. The downward trend in the level of reserves caused concern.

 

The Corporate Head of Finance and Resources presented a summary of report CHFR35 to the Council along with updated information on LABGI funding. She particularly emphasised risks to the council identified within the report and the section of the budget book on the level of fees and charges.

 

(15:42-16:01 – the meeting adjourned)

 

In accordance with Council Procedure Rule 14.10(d), it was moved and seconded that the question be now put. A vote was taken and the motion was carried.

 

The Resources and Assets Portfolio Holder was given the opportunity to sum up. He urged members to vote in favour of the budget. A vote was taken approving the budget and setting the level of council tax and precept for the district.