In accordance with Council Procedure Rule 18.3, immediately after any vote is taken at a budget decision meeting of the Council the names of Councillors who cast a vote for the decision or against the decision or who abstained from voting shall be recorded in the Minutes of that meeting.
At its meeting on 8 February 2018, Cabinet considered Paper BCa/17/47, together with amendments to the General Fund Budget. Paper BC/17/29 now includes all the relevant updated information, together with the necessary recommendations, with the exception of one Parish precept notification which remains outstanding. Further details will be reported at the meeting.
Minutes:
32.1 An updated Appendix C to the report was tabled.
32.2 Councillor Patrick introduced the report and MOVED the recommendations in the report. Commenting further he went on to highlight the surplus of £244k in the HRA budget, the mandatory decrease in council house rents of 1% and the £3 per week housing related support charge that would be ended. Service charges which were eligible for housing benefit would be increased by £5 per week which represented a net increase of £2 per week for tenants.
32.3 Councillor Patrick went on to say that the principal administrative challenge for the Housing Team was to bring the BMBS building services operation which is shared with Mid Suffolk into profitable operation. He emphasised that the Council was intent on improving the supply of affordable homes and would use the albeit restricted proceeds of right to buy disposals to help fund new builds. Although the Council would still need to find match funding equivalent to 70% of the right to buy proceeds, its borrowing headroom could make this sustainable.
32.4 Councillor Patrick then went on to discuss the General Fund and stated that this presented more of a challenge. In order for the Council to continue to offer its present level of service it would need £5.2m Council tax income. This would require an increase in Council tax of £5 per annum for a Band D property, the maximum permitted. Even with this increase there was still a predicted shortfall of £329k which would be covered by a transfer from reserves – specifically the Transformation Fund. During the past year Councillor Patrick told Council that £720k had been spent from the fund largely on the All Together Programme which had seen the successful move to Endeavour House and the great strides being made in achieving an enabled and efficient organisation. The Transformation Fund was expected to show a balance of £534k which would be enough to meet the budget shortfall.
32.5 Councillor Patrick also stated that the principle concern centred around Income. Central Government funding via the Revenue Support Grant had diminished and would have ceased completely by 2019/20. In terms of funding the Council relies on business rates and the New Homes Bonus. The New Homes Bonus credited to 2018/19 was £866k, down from £1.2m the previous year. The major shift of emphasis was now towards business rates collected through the Shared Revenues Partnership as part of the business rate pilot scheme to retain 100% of the growth in business rates. There were risks associated with this source of income and indeed recently a major business rate payer had lodged an appeal for regrading effective back to 2010. This was not expected and had contributed to the deficit of £1.256m. This had been absorbed by transferring a number of surpluses including business rates surplus relating to 2016/17 and 2017/18 of £943k.
32.6 Commenting on the introduction of CIFCO, Councillor Patrick stated that this area of non-government funding was starting to come good with investment income budgeted to reach nearly £1.5m. The Council was also looking to further exploit its assets and invest further in property.
32.7 Finally Councillor Patrick paid tribute to the officers who controlled the finances, his Cabinet colleagues for their support and encouragement and the Mid Suffolk Members who had worked on the All Together Programme for their hard work and enthusiasm.
32.8 Councillor Ward seconded the report and reserved the right to speak.
32.9 The Chairman reminded Council that, in accordance with Council Procedure Rule 18.3, the vote would be recorded.
32.10 Councillor Busby requested a schedule of the money that was paid in and out of the Transformation Fund.
32.11 In response Councillor Patrick stated that this could be provided with either a detailed or very high-level analysis and was available in the papers.
32.12 Councillor Bavington queried how close the Council was over the next three years to having a Section 114 Notice issued?
32.13 In response the Section 151 Officer stated that her assessment was that the Council was definitely not in that position. When assessing whether to issue a Section 114 Notice the Section 151 Officer had taken into account whether the Council could set a balanced budget, the report in front of Council recommended approval of a balanced budget for 2018/19. She also had to take into account the level of the Council reserves – these still reflected a £1.2 million working balance and if the budget was approved there would be another £1.3 million in addition to that. The Section 151 Officer would also pay due regard to Council spending. Coupled with the fact that the Council was not currently overspending in fact there was a projected underspend of £831,000 in 2017/18 and the work being carried out to ensure that there was a balanced medium term plan for the next three years, the Section 151 Officer stated that thankfully the Council was a long way off from having to do something like a Section 114 Notice.
32.14 Councillor Bavington asked the Section 151 Officer if she was confident that the Council could meet a balanced budget over the next three-year period?
32.15 In response the Section 151 Officer stated that the Council had two options either to reduce costs or increase income and that there would be some challenges ahead, however she was confident that they would work together to get to that position.
32.16 Councillor Bavington asked the Leader where the money was allocated in the budget for the referendum?
32.17 In response the Leader stated that the Council Motion approved in December explicitly forbade the Council to make any provision for any further work on merger in the 2018/19 budget, therefore there was no provision at present for the referendum vote.
32.18 Councillor Bavington queried how the proposed summer referendum was to be funded?
32.19 In response the Leader stated that the Cabinet would look at this in due course when deciding a date for the local poll.
32.20 On the proposal of Councillor Bavington and seconded by Councillor Hinton it was MOVED
“That the Transformation Fund be closed with effect from 31 March 2018 and the remaining balance be transferred to general reserves.
32.21 Councillor Arthey sought clarification that in the proposed budget the Transformation Fund reserves would reduce to £154k by the end of the year and asked what the proposals were planned for that fund?
32.22 Councillor Patrick in response confirmed that the £154k assumed the absorption of the loss that had been incurred as a result from a business rates appeal. There were still items to be spent from projects via the Transformation Fund and these items would be brought to the next Cabinet meeting where the quarter three figures were due to be reported.
32.23 The Section 151 Officer sought confirmation that the date to close the Transformation Fund as proposed in the amendment was 31 March 2018. The Section 151 Officer then went on to say that the Budget that was being proposed had money going in and out of the Transformation Fund as part of the budget process for 2018/19 so the £154k that was referred to would be the figure as at March 2019.
32.24 The Chief Executive emphasised that if Members were proposing that the £154k be transferred to the general fund now, then they would need to find other ways to fund the budget. He therefore suggested that the wording of the amendment be changed to read “That the Transformation Fund be closed and residual funds anticipated as at 31 March 2019 of £154k be transferred into the general fund.
32.25 In response Councillor Bavington stated that he had made it clear that he didn’t believe in having an un-itemised Transformation Fund in the budget and wanted this fund ended as soon as possible on or after the 31 March 2018.
32.26 The amendment was PUT to the vote and LOST, the vote was recorded as follows: -
For |
Against |
Abstention |
Cllr C Arthey |
Cllr M Barrett |
|
Cllr S Barrett |
Cllr P Beer |
|
Cllr T Bavington |
Cllr P Burgoyne |
|
Cllr D Busby |
Cllr T Campbell |
|
Cllr S Carpendale |
Cllr M Creffield |
|
Cllr L Cresswell |
Cllr S Dawson |
|
Cllr D Davis |
Cllr B Gasper |
|
Cllr A Ferguson |
Cllr K Grandon |
|
Cllr J Hinton |
Cllr M Holt |
|
Cllr B Hurren |
Cllr J Jenkins |
|
Cllr R Kemp |
Cllr F Lawrenson |
|
Cllr J Long |
Cllr A Osborne |
|
Cllr A McCraw |
Cllr J Osborne |
|
Cllr J Nunn |
Cllr L Parker |
|
Cllr S Plumb |
Cllr P Patrick |
|
Cllr D Rose |
Cllr N Ridley |
|
Cllr S Williams |
Cllr F Swan |
|
|
Cllr J Ward |
|
Total 17 |
Total 18 |
|
32.27 Councillor M Barrett asked a question relating to Borehamgate and whether the units were let the majority of time as she was concerned that one of the units had been empty for a long time?
32.28 In response Councillor Patrick informed that the Council had a department specifically for managing the Council’s properties that would ensure that steps were taken promptly to ensure that the empty property was occupied as soon as possible.
32.29 Councillor S Barrett queried the figures in the capital programme for acquisitions and said that there appeared to be no detail for this figure?
32.30 Councillor Patrick informed the Council that the figure was a provision based on an estimate provided by the Assets and Investments Team as to what they may require over a period of time to generate activity.
32.31 The Section 151 Officer added that there were two projects that the Team were working on, one of these was obviously what would happen with the HQ sites. There was enough money in the budget for some of these proposals and these would come forward for approval in due course.
32.32 Councillor Arthey queried why the proposals had not yet come forward as they had been scheduled to come forward in February?
32.33 In response the Leader stated that the report would now be coming in April.
32.34 Councillor Hinton queried the increase in supplies and service costs?
32.35 In response Councillor Patrick informed the meeting that he had a schedule which listed in detail all the items that made up those figures which he would be happy to make available.
32.36 Councillor Hinton also queried an increase in transport costs of £96k and where the money received from East House was reflected in the accounts?
32.37 In response the Section 151 Officer informed Council that the increase in transport costs was as a result of disturbance travel that staff were entitled to following the move to Endeavour House for a period of three years. In terms of money received for East House this would be reflected as a capital receipt which would appear in the accounts at the end of this financial year.
32.38 Councillor Kemp queried where the Section 106 monies were included in the accounts?
32.39 The Section 151 Officer referred Council to page 185 of the booklet which reflected the reserves breakdown and also that some Section 106 monies are held on the Council’s balance sheet.
32.40 Councillor McCraw sought clarification as to whether the additional Section 106 monies were those allocated to parish councils and held in trust for them
32.41 The Section 151 Officer stated that she did not have this information to hand but would confirm this and report back.
32.42 The recommendations were PUT to the meeting and CARRIED.
32.43 In accordance with Council Procedure Rule 18.3 the vote was recorded as follows:-
For |
Against |
Abstention |
Cllr C Arthey |
Cllr T Bavington |
Cllr S Williams |
Cllr M Barrett |
Cllr D Busby |
Cllr J Hinton |
Cllr S Barrett |
Cllr L Cresswell |
Cllr B Hurren |
Cllr P Beer |
Cllr D Davis |
|
Cllr P Burgoyne |
Cllr S Plumb |
|
Cllr T Campbell |
|
|
Cllr S Carpendale |
|
|
Cllr M Creffield |
|
|
Cllr S Dawson |
|
|
Cllr A Ferguson |
|
|
Cllr B Gasper |
|
|
Cllr K Grandon |
|
|
Cllr M Holt |
|
|
Cllr J Jenkins |
|
|
Cllr R Kemp |
|
|
Cllr F Lawrenson |
|
|
Cllr J Long |
|
|
Cllr A McCraw |
|
|
Cllr J Nunn |
|
|
Cllr A Osborne |
|
|
Cllr J Osborne |
|
|
Cllr L Parker |
|
|
Cllr P Patrick |
|
|
Cllr N Ridley |
|
|
Cllr D Rose |
|
|
Cllr F Swan |
|
|
Cllr J Ward |
|
|
Total 27 |
Total 5 |
Total 3 |
It wasResolved:-
(i) That the Joint Medium Term Financial Strategy (MTFS) and Budget proposals set out in the report be approved.
(ii) That the final General Fund Budget for 2018/19 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, be approved.
(iii) That the Housing Revenue Account (HRA) Investment Strategy 2018/19 to 2022/23 and HRA Budget for 2018/19 be agreed.
(iv) 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.
(v) That Sheltered Housing Supported people cost of £3 per week be removed and Service charges 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 £27k.
(vi) That Sheltered Housing utility charges are kept at the same level.
(vii) That in principle, Right to Buy receipts should be retained to enable continued development and acquisition of new Council dwellings.
(viii) That garage rents are kept at the same level.
(ix) That the revised HRA Business Plan in Appendix E of the report be noted.
(x) That the Capital Programme in Appendix D of the report be agreed.
(xi) That the offer to participate for Babergh in the Business Rate Pilot for 2018/19 as set out in paragraph 11.9 to 11.10 of the report be accepted.
Supporting documents: