Report of the Corporate Management Team attached.

The Council considered a report of the Corporate Management Team which presented the Cabinet's revenue budget and Council Tax for 2017/18 financial year, together with Minutes 646 to 650 of Cabinet held 19th January 2017 and Minutes 760 to 764 of Cabinet held on 14th February 2017, and Scrutiny Minutes 656 to 658, 692 to 694 and 708 to 712.

                                                        

The Council suspended the relevant parts of Council Procedure Rule 10 to permit the extended budget speeches of the Leader of the Council and of the Leaders of the Opposition Groups.

 

In accordance with Council Procedure Rule 10.1(e) Councillors Woodley and Gilbert had submitted one amendment to the Budget.

 

The amendment was voted on by way of a named vote as required by law.  The voting was as follows:-

 

For the amendment:

Cllrs Assenheim, Ayling, Borton, Callaghan, Davies, Endersby, Gilbert, Jones, Kenyon, McDonald, Moyies, Mulroney, Nevin, Norman, Robinson, Stafford, Terry, Ward, Ware-Lane and Willis (20).

 

Against the amendment:

Cllrs Arscott, Aylen, Bright, Boyd, Buckley, Burzotta, Butler, Byford, Courtenay, Cox, Davidson, Evans, Flewitt, Folkard, D Garston, J Garston, Habermel, Hadley, Holland, Jarvis, Lamb, McGlone, Moring, Phillips, Salter, Walker and Waterworth (27)

 

Abstentions:

The Worshipful the Mayor, Cllr McMahon (1)

 

Absent:

Cllrs Van Looy, Wexham and Woodley (3)

 

The amendment was not carried.

 

The substantive budget proposals were then voted on by way of a named vote as required by law.  The voting was as follows:-

 

For the budget proposals 2017/18:

Cllrs Arscott, Aylen, Bright, Boyd, Buckley, Burzotta, Butler, Byford, Courtenay, Cox, Davidson, Davies, Evans, Flewitt, Folkard, D Garston, J Garston, Habermel, Hadley, Holland, Jarvis, Lamb, McGlone, Moring, Phillips, Salter, Walker, Waterworth (28)

 

Against the budget proposals 2017/18:

Cllrs Borton, Gilbert, Jones, McDonald, Moyies, Mulroney, Nevin, Norman, Robinson, Terry, Ware-Lane and Willis (12)

 

 

Abstentions: Cllrs McMahon, Assenheim, Ayling, Callaghan, Endersby, Kenyon, Stafford, Ward (8)

 

Absent: Cllrs Van Looy, Wexham and Woodley (3)

 

The Council Budget 2017/18 proposals were carried, as set out below:

 

Resolved:

 

With regard to the Housing Revenue Account Budget 2017/18 and rent setting:

 

1. That a rent reduction of 1% on secure tenancies, as required by the Welfare Reform and Work Act 2016, be approved.

 

2. That an average rent increase of 4.41% on shared ownership properties, be approved.

 

3. That the proposed rent changes in 1 and 2 above be effective from 3^rd April 2017.

 

4. That the increases in other charges as set out in Section 5 of the submitted report to Cabinet on 14^th February 2017, be approved.

 

5. That the proposed management fee and the proposed increases in service charges and heating charges by South Essex Homes, as set out in Section 6 of the report to Cabinet on 14^th February 2017, be approved.

 

6. That the appropriations to the Repairs Contract Pensions earmarked reserve and the HRA Capital Investment earmarked reserve, as set out in Section 8 of the report to Cabinet on 14^th February 2017, be approved.

 

7. That subject to 1-6 above, the HRA budget as set out in Appendix 1 to the Cabinet report, be approved.

 

8. That the HRA Medium Term Financial Plan as set out in Section 9 and appendix 2 to the Cabinet report, be noted.

 

9. That the value of the Council’s capital allowance for 2017/18 be declared as £25.965M, as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

 

 

With regard to the Capital Programme 2017/18 to 2020/21

 

10. That the current approved Programme for 2017/18 to 2019/20 of 125.4m, as set out in appendix 1 to the Cabinet report on 14^th February 2017, be noted.

 

11. That the changes to the approved Programme as set out in Appendix 2 to the Cabinet report, be approved.

 

12. That the proposed new schemes and additions to the Capital Programme for 2017/18 to 2020/21 totalling £79.0m of which £72.8m is for the General Fund and £6.2m for the Housing Revenue Account, as set out in appendices 6 and 7 to the Cabinet report, be approved.

 

13. That the proposed new schemes and additions as set out in appendices 6 and 7 to the Cabinet report, and other adjustments as set out in appendix 2 to the report will result in a proposed capital programme of £213.0m for 2017/18 to 2020/21 set out in Appendix 8, be noted.

 

14. That it be noted that of the total programme of £213.0m for the period 2017/18 to 2020/21, the level of external funding supporting this programme is £80.8m, as set out in paragraph 9.1 of the Cabinet report.

 

15. That it be noted that a final review has been undertaken on the 2016/17 projected outturn and that the results have been included in the Cabinet report.

 

16. That the proposed Capital Programme for 2016/17 to 2020/21, as set out in appendix 8 to the Cabinet report, be approved.

 

17. That the Capital Strategy for 2017/18 to 2020/21, as set out in appendix 9 to the Cabinet report, be approved.

 

With regard to Treasury Management and Prudential Indicators 2017/18:

 

18. That the Treasury Management Policy Statement set out at Appendix 1 to the Cabinet report, be approved.

 

19. That the Treasury Management Strategy set out in Appendix 2 to the Cabinet report, be approved.

 

19. That the Annual Investment Strategy set out at Appendix 3 to the Cabinet report, be approved.

 

20. That the Minimum Revenue Provision (MRP) Policy set out at Appendix 5 to the Cabinet report, be approved.

 

21. That the prudential indicators set out at Appendix 6 to the Cabinet report, be approved.

 

22. That the operational boundary and authorised limits for borrowing for 2017/18 be set at £285m and £295m respectively as set out in Appendix 1 to the Cabinet report.

 

With regard to Fees and Charges 2017/18:

 

23. That the proposed fees and charges for each Department as contained within the body of the Cabinet report and its appendices, be approved.

 

With regard to the General Fund Revenue Budget 2017/18:

 

In respect of 2016/17:

 

24. That the forecast outturn of £123.206 million, be noted.

 

25. That the appropriation of the sums to earmarked reserves totalling £6.468 million, as set out in detail in Appendix 16 to the Cabinet report, be approved.

 

26. That the appropriation of the sums from earmarked reserves totalling £7.226 million, as set out in detail in Appendix 16 to the Cabinet report, be approved.

 

In respect of 2017/18 and later years:

 

27. That the Section 151 Officer’s (Director of Finance and Resources) report on the robustness of the proposed budget, the adequacy of the Council’s reserves and the Reserves Strategy as set out in Appendix 1 to the report, be acknowledged.

 

28.  That a General Fund net revenue budget for 2017/18 of £123.153 million, set out in Appendix 3 to the Cabinet, and any required commencement of consultation, statutory or otherwise, be approved.

 

29. That a Council Tax increase of 4.99% for the Southend-on-Sea element of the Council Tax for 2017/18, being 1.99% for general use and 3% for Adult Social Care, be approved.

 

30. That it be noted that the 2017/18 revenue budget has been prepared on the basis of using £1.637 million for earmarked reserves for the core budget to allow for a smoothing of the budget gap across the next three financial years with a consequent replenishment of those reserves in 2017/18 and 2018/19.  Also, that it be noted that £2.222 million of the Business Rates Retention reserve is being used to equalise the projected 2017/18 business rates yield.

 

31. That the position of the Council’s preceptors be noted as follows:

 

-       Essex Police Authority – approved Council Tax increase of 3.25%;

-       Essex Fire Authority – approved Council Tax increase of 1.99%

-       Leigh-on-Sea Town Council – approved precept increase of 1.59%

 

32.  That no Special Expenses be charged other than Leigh-on-Sea Town Council precept for 2017/18.

 

33. That the appropriation of the sums to earmarked reserves totalling £1.009 million, as set out in Appendix 16 to the Cabinet report, be approved.

 

34. That the appropriation of the sums from earmarked reserves totalling £17.150 million, as set out in Appendix 16 to the Cabinet report, be approved.

 

35. That the Schools’ budget and its relevant distribution as recommended by the Schools’ Forum and as set out in Appendix 2 to the Cabinet report, be approved.

 

36. That the pressures required of £3.000 million, as set out in Appendices 12 and 13 to the Cabinet report, and the General Fund and Public Health savings required of £7.502 million, as set out in Appendices 14 and 15 of the Cabinet report, and the subsequent individual service cash limits for 2017/18, as contained in Appendices 3 to 11 to the Cabinet report, be approved.

 

37. That the direction of travel for 2018/19 and beyond, as set out in Section 11 of the Cabinet report, be endorsed.

 

38. That the revised Medium Term Financial Strategy up to 2020/21, as set out in Appendix 17 to the Cabinet report, be approved.

 

39. That authority be delegated to the Director of Finance and Resources (S151 Officer), in consultation with the Leader, to make the required changes to the Council Budget following the final Local Government Finance settlement and other related Government announcements.

 

With regard to the Council Tax 2017/18:

 

40. That it be noted that on 19^th January 2017 the Cabinet calculated the Council Tax Base 2017/18 as follows:

 

(a) for the whole Council area as 56,917.61

 

(b) for dwellings in those parts of its area to which a Parish precept relates (Leigh Town Council) as 8,717.19

 

41. That the Council Tax requirement for the Council’s own purposes for 2017/18 (excluding town/parish precepts) be determined as £72.054,279.

 

42. That the following amounts be calculated for the year 2017/18 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended (the Act):

 

(a) £385,556,904 – 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 town/parish councils.

 

(b) -£313,101,721 – Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

 

(c) £72,455,183 – Being the amount by which the aggregate of 42(a) above exceeds the aggregate at 42(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year (including town/parish precepts).

 

(d) £1,272.98 – Being the amount at 42(c) above, divided by the Council Tax Base shown at 40(a) above, as the basis amount of its Council Tax for the year (including town/parish precepts).

 

(e) £400,904 – Being the aggregate amount of all special items (town/parish precepts) referred to in Section 34(1) of the Act as set out below:

 

Band A: 30.66; Band B: 35.77; Band C: 40.88; Band D: 45.99; Band E: 56.21; Band F: 66.43; Band G: 76.65; Band H: 91.98

 

(f) £1,265.94 – Being the amount at 42(d) above less the result given by dividing the amount at 42(e) above by the Council Tax Base shown at 40(a) 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 town/parish precept relates.

 

43. That it be noted that the Essex Police and Crime Commissioner and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Act for each category of dwellings in the Council’s area as indicated below:

 

Essex Police: Band A: 104.70: Band B: 122.15; Band C: 139.60; Band D: 157.05; Band E: 191.95; Band F: 226.85; Band G: 261.75; Band H: 314.10

 

Essex Fire Authority:  Band A: 46.02; Band B: 53.69; Band C: 61.36; Band D: 69.03; Band E: 84.37; Band F: 99.71; Band G: 115.05; Band H: 138.06

 

44. That the Council, in accordance with Sections 30 and 36 of the Act, hereby sets the aggregate amounts shown below as the amounts of Council Tax for 2017/18 for each part of its area and for each of the categories of dwellings:

 

Band A: 994.68; Band B: 1,160.46; Band C: 1,326.24; Band D: 1,492.02; Band E: 1,823.58; Band F: 2,155.14; Band G: 2,486.70; Band H: 2,984.04

 

45. That the Council’s basic amount of Council Tax for 2017/18 be determined as not excessive in accordance with the principles approved under Section 52ZB of the Act, and as show in the calculation below.

 

(a) Percentage increase defined by the Secretary of State as constituting an excessive increase for 2017/18: 5.0%

 

(b) Percentage increase in the Council’s basic amount of Council Tax:

 

2016/17 amount: £1,205.82

2017/18 amount: £1,265.94

 

Percentage increase: 4.99%

 

The figure at 45(b) is less than the figure at 45(a) above and therefore the Council’s basic amount of Council Tax for 2017/18 is not excessive and no referendum is required.

 

46. That the amounts payable in each town/parish at each band, comprising aggregate sums derived from all precepts be as set out below:

 

Unparished Area: Band A: 994.68; Band B: 1,160.46; Band C: 1,326.24; Band D: 1,492.02; Band E: 1,823.58; Band F: 2,155.14; Band G: 2,486.70; Band H: 2,984.04

 

Parish Area: Band A: 1,025.34; Band B: 1,196.23; Band C: 1,367.12; Band D: 1,538.01; Band E: 1,879.79; Band F: 2,221.57; Band G: 2,563.35; Band H: 3,076.02.