Meeting documents

Cabinet
Thursday, 12th February, 2015 2.00 pm

Place:
Civic Suite, Civic Centre, Southend-on-Sea
 

Attendance Details

ItemDescriptionResolution
Part I
641 Apologies for absence.
 There were no apologies for absence.
642 Declarations of interest.
 There were no declarations of interest.
643 Housing Revenue Account Budget 2015/16 & Rent Setting
Business for item 643
Recommended:-

1. That an average rent increase of 4.45%, as set out in section 4 of the submitted report, effective from 6th April 2015, be approved.

2. That subject to 1 above, the HRA budget as set out in appendix 1 to the submitted report, be approved.

3. That the increases in other charges as set out in section 5 of the submitted report, be approved.

4. That the management fee proposed by South Essex Homes, as set out in section 6 of the submitted report, be noted.

5. That the appropriations to the Repairs Contract Pensions earmarked reserve and the HRA Capital Investment earmarked reserve, as set out in section 7 of the submitted report, be noted.

6. That the HRA Medium Term Financial Plan, as set out in section 8 and appendix 2 to the submitted report, be noted.

7. That the value of the Council's capital allowance for 2015/16 be declared as £32.302m, as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.


Reason for Decision

Part of the process of maintaining a balanced budget for the HRA is to consider and set a rent rise (and associated increases in other income streams). Full Council needs to approve the HRA budget prior to the start of the financial year.

Other Options

As set out in the submitted report.

Note:- This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b)
Executive Councillor:- Norman
644 Capital Programme 2015/16 to 2018/19
Business for item 644
Recommended:-

1. That the current approved Programme for 2015/16 to 2017/18 of £100.1m, as set out in appendix 1 to the submitted report, be noted.

2. That the changes to the approved Programme, as set out in appendix 2 to the submitted report, be noted.

3. That the proposed new schemes and additions to the Capital Programme for the period 2015/16 to 2018/19 (and later years) totalling £45.4m of which £37.6m is for the General Fund and £7.8m for the Housing Revenue Account, as set out in appendices 6 and 7 to the submitted report, be approved.

4. That it be noted that the proposed new schemes and additions, as set out in appendices 6 and 7 to the submitted report, along with other adjustments as set out in appendix 2 to the report, will result in a proposed capital programme of £154.7m for 2015/16 to 2018/19 (and later years), as set out in appendix 8 to the report.

5. That it be noted that of the total programme of £154.7m for the period 2015/16 to 2018/19 (and later years), the level of external funding supporting the General Fund is £58.2m and £29.9m for the Housing Revenue Account.
6. That it be noted that a final exercise has been undertaken on the 2014/15 projected outturn and that the results have been included in the submitted report.

7. That the proposed Capital Programme for 2014/15 to 2018/19, as set out in appendix 8 to the submitted report, be approved.

8. That the revisions to the Asset Management Plan to be included in the refreshed plan for 2015 to 2025, as set out in paragraph 4.5 of the submitted report, be noted.

Reason for Decision

The proposed Capital Programme is compiled from a number of individual projects which either contribute to the delivery of the Council's objectives and priorities or enhances the Council's infrastructure.

Other Options

The proposed Capital Programme is compiled from a number of individual projects, any of which can be agreed or rejected independently of the other projects.

Note:- This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b)
Executive Councillor:- Woodley
645 Treasury Management and Prudential Indicators - 2015/16
Business for item 645
Recommended:-

1. That the Treasury Management Policy Statement, as set out in appendix 1 to the submitted report, be approved.

2. That the Treasury Management Strategy, as set out in appendix 2 to the submitted report, be approved.

3. That the Annual Investment Strategy, as set out in appendix 3 to the submitted report, be approved.

4. That the Minimum Revenue Provision (MRP) Policy, as set out in appendix 5 to the submitted report, be approved.

5. That the prudential indicators, as set out in appendix 6 to the submitted report, be approved.

6. That the operational boundary and authorised limits for borrowing for 2015/16 be set at £270m and £280m respectively.
Reason for Decision

Decisions 1 to 3 above are to comply with the CIPFA Treasury Management Code of Practice.

Decision 4 above is to comply with the Local Authority's general duty to charge an amount of MRP to revenue which it considers to be prudent.

Decisions 5 and 6 above are to demonstrate compliance with the CIPFA Prudential Code for Capital Finance in Local Authorities.

Other Options

There are many options available for the operation of the Treasury Management function, with varying degrees of risk associated with them. The Treasury Management Policy set out in the submitted report aims to effectively control risk to within a prudent level, whilst providing optimum performance consistent with that level of risk.

Note:- This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b)
Executive Councillor:- Woodley
646 Fees & Charges 2015/16
Business for item 646
Recommended:-

That the proposed fees and charges for each Department as set out in the submitted report and appendices, be approved.

Reason for Decision

Part of the process of maintaining a balanced budget includes a requirement to consider the contribution that fees and charges make towards that aim. This report is in fulfilment of that requirement.

Other Options

None.

Note:- This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b)
Executive Councillor:- Woodley
647 General Fund Revenue Budget 2015/16
Business for item 647
Recommended:-

In respect of 2014/15:

1. That the forecast outturn of £133.381m, be noted.

2. That the appropriation of the sums to earmarked reserves totalling £3.394m, as set out in appendix 15 to the submitted report, be approved.

3. That the appropriation of the sums from earmarked reserves totalling £15.112m, as set out in appendix 15 to the submitted report, be approved.

In respect of 2015/16 and later years:

4. That the Section 151 Officer's (Head 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 submitted report, be noted.

5. That a General Fund net revenue budget for 2015/16 of £125.849 million, as set out in appendix 3 to the submitted report, and any required commencement of consultation, statutory or otherwise, be approved.

6. That a Council Tax increase of 1.95% for the Southend-on-Sea element of the Council Tax for 2015/16 and the consequent rejection of the Government's Council Tax freeze grant offer for 2015/16, be approved.

7. That it be noted that the 2015/16 revenue budget has been prepared on the basis of using £1.888 million from earmarked reserves to allow for a smoothing of the budget gap across the next three financial years with a consequent replenishment of those reserves in 2016/17 and 2017/18.

8. That it be noted that the Council's preceptors Essex Police and Fire Authorities have yet to formally meet to agree their Council Tax levels for 2015/16 and the Leigh-on-Sea Town Council proposed precept of £361,694 and a consequential increase of 17.9% in their Council Tax, also be noted.

9. That no Special Expenses be charged other than Leigh-on-Sea Town Council precept for 2015/16.

10. That the appropriation of the sums to earmarked reserves totalling £5.124m, as set out in appendix 15 to the submitted report, be approved.

11. That the appropriation of the sums from earmarked reserves totalling £7.257m, as set out in appendix 15 to the submitted report, be approved.

12. That the schools' budget and its relevant distribution as recommended by the Schools' Forum and as set out in Appendix 2 to the submitted report, be approved.

13. That the pressures required of £3.090m, as set out in appendices 11 and 12 to the submitted report, the savings required of £10.500m, as set out in appendices 13 and 14, and the subsequent individual service cash limits for 2015/16, as detailed in Appendices 3 to 10, be approved.

14. That the direction of travel for 2016/17 and beyond, as set out in section 11 of the submitted report, be endorsed.

15. That the revised Medium Term Financial Strategy up to 2018/19, as set out in appendix 16 to the submitted report, be approved.

Reason for Decision

Budget setting is at the core of the Council's corporate planning framework. It is a complex process that is fully integrated with strategic and service planning. Annually, prior to the start of the financial year, the Council agrees its budget using a consistent, transparent and prudent approach.

Other Options

None.

Note:- This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b)
Executive Councillor:- Woodley
14:00/14:15

Attendance Details

Present:
Councillor R A Woodley (Chairman)
Councillors M Assenheim, I D Gilbert, A P Jones, G E Longley, D A Norman MBE, M W Terry
In attendance:
R Tinlin, J K Williams, S Holland, S Leftley, A Lewis, A Atherton, J Chesterton, J Ruffle, J Williams, I Ambrose, C Fozzard, A Keating and C Gamble

Also present: Councillors Chalk, Lamb, Moyies and Salter.

Business

ItemBusiness
643The Cabinet considered a joint report of the Corporate Director for Corporate Services and Corporate Director for People setting out the Housing Revenue Account (HRA) budget for 2015/16 together with the information necessary to set a balanced budget as required by legislation. This item was considered by the Policy & Resources Scrutiny Committee.
644The Cabinet considered a report of the Corporate Management Team setting out a draft programme of capital projects for the period 2015/16 to 2018/19 and later years. This item was considered by all three Scrutiny Committees.
645The Cabinet considered a report of the Corporate Director for Corporate Services concerning the Treasury Management Policy for 2015/16 and the requirement for prudential indicators to be set under the Local Government Act 2003.
646The Cabinet considered a report of the Corporate Management Team detailing fees and charges for services included in the budget proposals for 2015/16. This item was considered by all three Scrutiny Committees.

Members noted the changes to the Hackney Carriage/Private Hire Drivers' Licence Fees as highlighted in the revised page (appendix 2, page 19) circulated at the meeting. Members also noted the two minor amendments to the description of car parking charges (appendix 2, pages 28 and 30).
647The Cabinet considered a report of the Corporate Management Team presenting the draft revenue budget for 2015/16. This item was considered by all three Scrutiny Committees.

Members received a revised covering report (and the relevant appendices) which took account of:

• the Final Local Government Settlement on 3rd February 2015 and subsequent detailed information on the settlement from Central Government.
• The amendment for the deletion of the two savings proposals formerly numbered PL4 and PL29 and the introduction of a new saving proposal PL32.

 

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