4
a) Treasury Management Strategy 2016/17
Council considered the Group Manager (Resources) report on the Treasury Management Strategy 2016/17.
Proposer: Councillor Plant
Seconder: Councillor B Coleman
1) To approve the Treasury Management Strategy 2016/17.
2) To approve the prudential indicators and limits for the 3 year period 2016/17 to 2018/19 as detailed in the Group Manager's report.
3) To approve the Minimum Revenue Provision Statement.
4) To approve the Annual Investment Strategy.
CARRIED
b) 2016/17 Budget Report
The Cabinet Secretary reported that the Local Authorities (Standing Orders) (England) regulations 2014 require Local Authorities to take recorded votes at Budget Council meetings in relation to the item regarding the setting of the Local Authorities Budget.
Proposer: Councillor Plant
Seconder: Councillor B Coleman
That Paragraph 13.4 of Part IV (Rules of Procedure) of the Constitution be waived in respect of the main speakers in the budget debate, both of the opening speeches and the summing up.
CARRIED
(The Cabinet Secretary explained that the main speakers on this item would be the Group Leaders, Deputy Leader and the Shadow Cabinet Members with responsibility for Resources.)
Ahead of making decisions in relation to setting the Council Tax each year, the Chief financial Officer is required to report to the Council on the robustness of the estimates made for the purpose of the calculations along with the adequacy of reserves held by Council.
In respect of the robustness of the estimates - in reference to pages 70 to 73 of the agenda, this provided details of the process carried out in producing the budget.
It highlighted a number of financial risks facing the authority including :-
- The level of income from a number of demand led services for example Car parking, planning income and waste ad recycling credits, upon which the budget is reliant, for which external factors can have a significant impact on;
- Local Authority funding and in particular the risks around the retention of business rates and the impact of current and new appeals on the level of income retained locally;
- The level of planned savings and additional income factored into the budget for the year.
In order to mitigate these risks estimates should be put together within a robust framework which reflects past financial performance, along with current service delivery which is regularly monitored within developed financial control processes.
The report highlighted that there had been a lack of financial reporting to Members over a number of years and that the current systems an financial processes are not sufficiently developed to ensure there is a pro active financial management approach.
Whilst there has been significant work by the Finance team and EMT into the production of the budget, which has been informed by the quarter three financial monitoring programme, without the assurance of regular in year financial monitoring reports this does reduce the robustness of the estimates for the budget process.
A more thorough detailed review of the Council's spending would be carried out and used to inform the updated financial strategy to be presented to Members later in the year. In addition a more pro-active approach to financial management needed to be developed further to ensure that the financial reporting is aligned to the Council's decision making and reporting processes.
The robustness of the estimates is not the only factor that should be considered as part of the approval of the budget for the coming year as the adequacy of the Reserves needs to be considered.
In relation to the Adequacy of reserves the report provided a commentary on the adequacy of reserves held by the Council, including both earmarked and general reserves. Local authorities should have a clear statement on their level and use of reserves and this had been reflected in the Council's reserves policy framework.
When calculating the Council Tax requirement billing authorities must have regard to the level of reserves needed for meeting future expenditure.
The policy framework for reserves outlines the process for determining the minimum level of general reserve which takes into account a number of factors.
Following the assessment the recommended minimum level of general reserve for the coming year is £2m.
The Interim Section 151 officer advised that in her opinion on the adequacy of reserves, the balance of the general reserve is not considered in isolation but alongside :-
- The level of earmarked reserves
- the robustness of the estimates that are presented for approval and used for calculating the Council Tax
- The level of financial risks facing the authority.
In conclusion, the Interim Section 151 Officer advised that :-
- There is sufficient contingency within the current general reserve balance to mitigate any unforeseen weaknesses in the 2016/17 budget and the overall level of reserves held remains adequate in the short to medium term.
Council considered a number of questions submitted by the Labour Group in relation to specific issues concerning the budget, and Council agreed that written responses to all of the questions submitted should be made to the Shadow Leader to be shared with the Labour Group Members.
Proposer : Councillor Sutton
Seconder : Councillor T Wainwright
That with reference to page 35 recommendation 5 an appendix of the Capital Programme approval be given to an amendment that £20,000 of unsupported borrowing is added for the year 2016/17 for a phased £200,000 project to improve the Beaconsfield play area, the additional £180,000 to be found through external funding.
LOST
Councillor Myers asked a question with regard to the Town Centre BID and asked why the same terms did not apply to the Tourism BID. The Chief Executive Officer gave an assurance that she would personally look at the Tourism bid process and would respond direct to Councillor Myers on this issue.
Councillor Fox asked for an explanation as to why the baseline budget for the Executive Team had increased from the 2015/16 Budget Plan.
Councillor Fox was assured a written response to his question.
With regard to the issue of the proposed fees and charges in respect of dog kennelling Council discussed whether the imposition of increased charges would have an impact on those Members of the public who could not afford to the meet the cost of the increased charges. And as a result questions were raised as to what would happen to those dogs where the charges could not be met. The Director of Customer Services reported that the proposed fees and charges for dog kennelling was in line with the Council's fees and charges policy. Councillor Grey sought a assurance as to whether the Council could give a guarantee that no dogs would be destroyed where there was a case where the charges could not be met. In response the Deputy Leader reported that he could not give this guarantee although he would expect every effort would be made to ensure that the dogs would be returned to their owners. The Interim Chief Executive Officer stated that the Officers would look at the appeal process with regard to the dog kennelling issue.
Proposer : Councillor Fox
Seconder : Councillor T Wainwright
That the fees and charges in respect of dog kennelling be kept to the current statutory limit of £25.
CARRIED
The Shadow Leader asked Council to consider the allocation of funds from the General Reserves to be ear marked for Committee Grants to celebrate her Majesty the Queen's 90th birthday celebrations.
Proposer : Councillor T Wainwright
Seconder : Councillor Jeal
That an allocation of £90,000 form the General Reserve be earmarked for a Community Grants fund to celebrate her Majesty Queen Elizabeth II 90th birthday, to be overseen by a cross party of Councillors and prominent Members of our community to consider application from groups across the Borough for awards of up to £1500.
CARRIED
The Shadow Leader asked Council to consider amendments to the proposed recommendations in respect of the 2016/17 budget report.
Proposer : Councillor T Wainwright
Seconder : Councillor Jeal
That recommendation 6 be amended as follows :-
That an allocation of £1m from the General Reserves be earmarked in a invest to save reserve as detailed within the Interim Section 151 Officers report and that decisions on the spend be referred to the appropriate Committee.
CARRIED
Proposer : Councillor T Wainwright
Seconder : Councillor Jeal
That recommendation 8 be amended as follows :-
" That delegated authority be given to the appropriate Committee to submit the Council's Efficiency Plan in consultation between the Interim Chief Executive Officer and the Group Leaders as required once further guidance is published and that the Council accepts the 4 year finance settlement as referred to within the Section 151 Officers report.
CARRIED
Proposer : Councillor Plant
Seconder : Councillor B Coleman
That the substantive motion in respect of the 2016/17 Budget report be agreed as follows :-
1) The 2016/17 Revenue Budget as detailed in Appendix a of the report be approved.
2) The surplus of £107,223 be allocated to the General Reserve.
3) The demand on the collection fund for 2016/17 will be :-
a) £3,914,239 for District Purposes
b) £354,143 for Parish Precepts
4) The Statement of and Movement of Reserves as detailed in Appendix d of the report be approved.
5) The updated Capital Programme and financing for 2015/16 to 2018/19 as detailed in Appendix e of the report be approved.
6) That an allocation of £1m from the General Reserves be earmarked in an invest to save reserves as detailed within the Interim Section 151 Officers report and that decisions on the spend be referred to the appropriate Committee.
7) That Members note the current financial projections for 2017/18 to 2019/20.
8) That delegated authority be given to the appropriate Committee to submit the Councils Efficiency Plan in consultation between the Interim Chief Executive Officer and Group Leaders as required once further guidance is published and that the Council accepts the 4 year finance settlement referred to within the Section 151 Officers report.
That a recorded vote be taken on this issue as follows :-
For the Motion - Councillors Andrews, Annison, Bird, B Coleman, M Coleman, Collins, Cutting, Grant, Grey, Hanton, Lawn, Mavroudis, Myers, Plant, Reynolds, Rodwell, C Smith, Stenhouse, Thirtle, Weymouth.
Against the Motion - Councillor Connell
Abstentions - Councillors Carpenter, Davis, Fairhead, Fox, Jeal, Linden, Robinson-Payne, J Smith, Sutton, H Wainwright, T Wainwright, Walker, Williamson and Wright.
CARRIED
c) Council Tax Setting Report 2016/17
Council considered the Interim Section 151 Officers report which presented for approval the Budget for 2016/17 and to make statutory calculations in accordance with the Local Government Finance Act 1992 to set the Council Tax for 2016/17. The report also includes the Chief Financial Officer's report on the robustness of the estimates and adequacy of reserves.
Proposer : Councillor Plant
Seconder : Councillor B Coleman
1. That the Budget for 2016/17 as detailed in the Revenue Budget and Council Tax 2016/17 is approved
2. The Policy Framework for the Earmarked Reserves and the Optimum Level of the General Reserve 2016/17 to 2019/20 (Appendix A within this report) is approved.
3. That Members undertake the Council Tax and statutory calculations set out in the following recommendations:
4. Under the Localism Act 2011, the Council is recommended that it be noted that on 9 December 2015 the following was calculated:
(a) the Council Tax Base 2016/17 for the whole Council area as 26,722 [Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended (the "Act")] and,
(b) for dwellings in those parts of its area to which a Parish precept relates as in the Revenue Budget and Council Tax 2016/17 Report Appendix C.
5. Tax requirement for the Council’s own purposes for 2016/17 (excluding Parish precepts) is £3,914,268.
6. That the following amounts be calculated for the Council for the year 2016/17 in accordance with Sections 31A to 36 of the Local Government Finance Act 1992 and the relevant regulations and directions as follows:
(a) £71,013,400 Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.
(b) £66,744,989 Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(c) £4,268,411 Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31A(4) of the Act).
(d) £159.73 Being the amount at 3(c) above (Item R), all divided by Item T (2 above), calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).
(e) £354,143 Being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act.
(f) £146.48 Being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (2 above), 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 Parish precept relates.
(g) Appendix D being the amounts given by adding to the amount at 6(f) above to the amounts of the special item or items relating to dwellings in those parts of the Council’s area mentioned above divided in each case by the amount at 4(b) above, calculated by the Council, 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 one or more special items relate
7. That it be noted that for the year 2016/17 Norfolk County Council have issued their precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings within the Council’s area as indicated in the table in Appendix B. Norfolk County Council met on 16 February 2015 and set their precept at £1190.79. The Council’s precept has increased by 3.99% on last year. This results in a Band D Council Tax of £1190.79 and an increase of £45.72 from 2015/16.
8. That it be noted that The Norfolk Police and Crime Commissioner has issued his precept of £5,690,225 to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings within the Council’s area as indicated in the table in Appendix B. The Commissioner’s precept has increased by 1.98% on last year. This results in a Band D Council Tax of £212.94 and an increase of £4.14 from 2015/16.
9. The Council, in accordance with Sections 30 to 36 of the Local Government Finance Act 1992, hereby sets the aggregate provisional amounts shown in the table in Appendix C as the amounts of Council Tax for 2016/17 for each of its area and categories of dwellings.
10. Excessiveness Determination - The Council’s basic amount of council tax as calculated above is the same as that calculated for 2015/16, and therefore within
the 2.0% and £5 increase limit at which a referendum would be required.
11. The Council has determined that its relevant basic amount of Council Tax for 2016/17 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992. As the billing authority, the Council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2016/17 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK of the Local Government Finance Act 1992.
12. If the formal Council Tax Resolution is approved, the total Band D Council Tax for 2016/17 will be as follows :
2015/16
2016/17 Increase
£
£
%
Great Yarmouth Borough Council
146.48
146.48 0%
Norfolk County Council
1,145.07 1,190.79 3.99%
Norfolk Police Authority
208.80 212.94 1.98%
Sub-Total
1,500.35
1550.21
Parish Council (average)
11.94 13.25 11.00%
Total
1,512.29
1,563.46
That a recorded vote be taken on this issue as follows :-
For the motion - Councillors Andrews, Annison, Bird, Carpenter, B Coleman, M Coleman, Collins, Connell, Cutting, Fox, Grant, Hanton, Lawn, Mavroudis, Myers, Plant, Reynolds, Rodwell, C Smith, Stenhouse, Thirtle, Weymouth and Wright.
Against the motion - None
Abstentions - Councillors Davis, Fairhead, Grey, Jeal, Linden, Robinson-Payne, J Smith, Sutton, H Wainwright, T Wainwright, Walker and Williamson.
CARRIED
d) Housing Revenue Account - Budget estimates 2016/1/ to 2020/21.
Council considered the Director of Housing and Neighbourhoods report as presented by the Cabinet Member (Neighbourhoods) which set out the Housing Revenue Account (HRA) budget, Rent and Service Charge Proposals for 2016/17 and the revised HRA forecast for 2015/16.
The Cabinet Member also reported on an addendum tabled at the meeting with regard to the issue of rent increases for tenants in sheltered housing.
Proposer : Councillor Carpenter
Seconder : Councillor Plant
1) That the draft budget estimates provided within the budget for the period 2016/17 to 2020/21 be approved.
2) To approve the revised forecast for 2015/16.
3) To approve the proposed fees and charges for 2016/17.
4) To review the Government proposals set out in the Welfare Reform and Work Bill 2015 and the Housing Planning Bill which include the 1% decrease per year for 4 years.
5) To agree to freeze the sheltered housing rents for 2016/17 at the 2015/16 level.
CARRIED
e) Housing Major Works Programme - Budget estimates 2016/17/2020/21
Cabinet considered the Director of Housing and Neighbourhoods, as presented by the Cabinet Member (Neighbourhoods), which provided estimates in respect of the Housing Revenue Account (HRA) Major Works Capital Programme 2016/17 to 2020/21.
Proposer : Councillor Carpenter
Seconder : Councillor Plant
1) To approve the proposed Housing Major Works Capital Programme budget and programme for 2016/17 and the provisional programme for 2017/18 to 2020/21.
2) To approve the revised forecast programme for 2015/16.
CARRIED
Councillor Jeal raised the issue of the contract with regard to the repair of broken TVs and he was given an assurance that he would receive a written response to his question.
Councillor T Wainwright also raised a question with regards to a maintenance cost and he was assured that he would receive a written response to his question.
f) Pay Policy Statement 2016/17
Council considered the Head of HR's report with regard to the Pay Policy Statement 2016/17.
With regard to the issue of the living wage figure, the Interim Chief Executive Officer reported that the Living Foundation wage would be paid and that this would be included as an amendment to the Pay Policy Statement.
Proposer : Councillor Plant
Seconder : Councillor B Coleman
That approval be given to adopt the Pay Policy Statement 2016/17 and to publish on the Council's website, subject to the inclusion of the amendment as outlined above.
CARRIED
g) Taxi fees
Council considered the Licensing and Election Manager's report as presented by the Cabinet Member (Environment) which informed Members of the changes to taxi legislation following the Deregulation Act 2015. This act introduced changes to taxi legislation which include the requirement that drivers licenses should last for 3 years and operators licences for 5 years. In light of these changes a review of the taxi licensing policy and license fees had been undertaken.
Proposer : Councillor C Smith
Seconder : Councillor Plant
1) That approval be given to the option of an annual licence in certain circumstances as detailed in the Licensing and Elections Managers report.
2) That the proposed fees in Table 2 and 3 of the Licensing and Election Managers report be approved and take effect from 1st April 2016.
CARRIED