Decision:
It was RESOLVED:-
1.1 That the draft Joint Medium Term Financial Strategy (MTFS) and Budget proposals set out in the report be endorsed, subject to further consideration at the February meeting for recommendation to Council.
1.2 That the final General Fund Budget for 2018/19 is based on an increase to Council Tax of £5 per annum (10p per week) for a Band D property, which is equivalent to 3.25%, to support the Council’s overall financial position, which will be considered further at the February Cabinet meeting.
1.3 That the draft Housing Revenue Account (HRA) Investment Strategy 2018/19 to 2022/23 and draft HRA Budget for 2018/19 be agreed, subject to further consideration at the February Cabinet meeting.
1.4 That the mandatory decrease of 1% in Council House rents, equivalent to an average rent reduction of £0.90 a week as required by the Welfare Reform and Work Act be implemented.
1.5 Sheltered Housing Supported people cost of £3 per week to be removed. Service charges to be increased by £5 per week for each scheme (set at £4 cap per week last year) meaning a net increase of £2 per week to tenants. This will reduce the subsidy by £30k.
1.6 Sheltered Housing utility charges are kept at the same level.
1.7 That in principle, Right to Buy receipts should be retained to enable continued development and acquisition of new council dwellings.
1.8 That garage rents are kept at the same level.
1.9 That the revised HRA Business Plan in Appendix D be noted.
1.10 That the proposed Capital Programme in Appendix C be agreed, subject to further consideration at the February Cabinet meeting for recommendation to Council.
1.11 The Medium Term Financial Strategy (MTFS) and Budget will be subject to final determination by Cabinet and Council in February 2018.
Any Declarations of Interest declared: None
Any Dispensation Granted: None
Minutes:
Councillor Patrick, the Cabinet Member with responsibility for Finance, introduced report BCa/17/42 and moved the recommendation, with the addition in 2.9 of the words “subject to further consideration at the February Cabinet meeting for recommendation to Council”. This was seconded by Councillor Osborne.
Members noted the following:
· There had been an omission in minimum revenue provision – ie PV Panel costs had not been included.
· In paragraph 12.5 it was clarified the additional £546k would be split over the next four years.
· It was planned to build and acquire a total of 210 homes for the Council’s housing stock. Some members raised the point if you did not build houses the actual housing stock would not increase.
· Local Members were to be involved in the assessment of the use of underutilised space in relation to garage sites, severed gardens and open spaces.
· Some Members asked whether the Joint Housing Board could be allocated a budget for repairs and maintenance in order to further tenant involvement.
· The footnote at the bottom of the HRA Business Plan on page 36 gave an explanation into the drop of funds. This was due to a predicted additional payment on the loan.
· It was noted on page 46, Organisational Development, the net expenditure figure related to employee costs.
After a lengthy discussion the following amendments were AGREED and would be applied to the report before the final version was tabled at the February Cabinet meeting:-
· Further explanation would be given in terms of Babergh District Council’s liability for the South Suffolk Leisure Contract
· There would be a new description of the Transformation fund indicating specific purposes. It was felt this would be an opportune moment to assess projects.
· The Appendices would be updated.
· The graphs on page 63 would be updated, showing New Homes. On page 78, three different scenarios were shown, based on growth assumptions. The graph on page 63 would show the worst case scenario. Some Members wished to see all three different scenarios shown in graph form as easier to read. It was thought it would be more prudent to use the smaller figure in graph form as the Government had changed the goal posts in the past.
By an unanimous vote
It was RESOLVED:-
1.1 That the draft Joint Medium Term Financial Strategy (MTFS) and Budget proposals set out in the report be endorsed, subject to further consideration at the February meeting for recommendation to Council.
1.2 That the final General Fund Budget for 2018/19 is based on an increase to Council Tax of £5 per annum (10p per week) for a Band D property, which is equivalent to 3.25%, to support the Council’s overall financial position, which will be considered further at the February Cabinet meeting.
1.3 That the draft Housing Revenue Account (HRA) Investment Strategy 2018/19 to 2022/23 and draft HRA Budget for 2018/19 be agreed, subject to further consideration at the February Cabinet meeting.
1.4 That the mandatory decrease of 1% in Council House rents, equivalent to an average rent reduction of £0.90 a week as required by the Welfare Reform and Work Act be implemented.
1.5 Sheltered Housing Supported people cost of £3 per week to be removed. Service charges to be increased by £5 per week for each scheme (set at £4 cap per week last year) meaning a net increase of £2 per week to tenants. This will reduce the subsidy by £30k.
1.6 Sheltered Housing utility charges are kept at the same level.
1.7 That in principle, Right to Buy receipts should be retained to enable continued development and acquisition of new council dwellings.
1.8 That garage rents are kept at the same level.
1.9 That the revised HRA Business Plan in Appendix D be noted.
1.10 That the proposed Capital Programme in Appendix C be agreed, subject to further consideration at the February Cabinet meeting for recommendation to Council.
1.11 The Medium Term Financial Strategy (MTFS) and Budget will be subject to final determination by Cabinet and Council in February 2018.
Reason for Decisions: To ensure that Members were aware of the draft budget proposals for 2018/19 and Medium Term Financial Strategy.
Alternative Options Considered and Rejected: That the draft budget proposals for 2018/19 and Medium Term Financial Strategy was not reported.
Supporting documents: