Agenda item

Council Budget 2019/20

Report of the Corporate Management Team attached.

Minutes:

The Council considered a report of the Corporate Management Team which presented the Cabinet's revenue budget and Council Tax for 2019/20 financial year, together with Minutes 609, 610 and 611 of Cabinet held 17th January 2019 and Minutes 700 to 703 of Cabinet held on 12th February 2019, and Scrutiny Minutes 640, 641, 652, 653, 671, 672 and 673.

                                                       

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 Gilbert, Woodley and Mulroney had submitted six amendments to the Budget.

 

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

 

Amendment 1: Selective Licensing

 

For the amendment:

Cllrs Ayling, Borton, Burton, Chalk, Dent, Gilbert, Harp, Jones, McDonald, Mulroney, Nevin, Robinson, Stafford, Terry, Ward, Wexham, Willis and Woodley (18)

 

Against the amendment:

Cllrs Arscott, Aylen, Boyd, Bright, Buck, Buckley, Burzotta, Byford, Courtenay, Cox, Davidson, Dear, Evans, Flewitt, Folkard, D Garston, Holland, Lamb, McGlone, McMahon, Moring, Nelson, Phillips, Salter and Walker (25)

 

Abstentions:

Cllrs Garne, J Garston, Habermel, Hadley and Jarvis (5)

 

Absent:

Cllrs Norman and Van Looy (2)

Amendment 1 was not carried.

 

Amendment 2: Swimming/street lighting, tables/chairs Licensing Fees

 

For the amendment:

Cllrs Aylen, Ayling, Borton, Burton, Byford, Chalk, Dent, Gilbert, Harp, Jones, McDonald, Mulroney, Nevin, Robinson, Stafford, Terry, Ward, Wexham, Willis and Woodley (20)

 

Against the amendment:

Cllrs Arscott, Boyd, Bright, Buck, Buckley, Courtenay, Cox, Davidson, Dear, Evans, Flewitt, Folkard, Garne, D Garston, J Garston, Habermel, Hadley, Holland, Lamb, McGlone, McMahon, Moring, Nelson, Phillips, Salter and Walker (26)

 

Abstentions:

Cllrs Burzotta and Jarvis (2)

Absent:

Cllrs Norman and Van Looy (2)

 

Amendment 2 was not carried.

 

Amendment 3: Commercial Property Investment

 

For the amendment:

Cllrs Arscott, Aylen, Ayling, Borton, Boyd, Bright, Buck, Buckley, Burton, Burzotta, Byford, Chalk, Courtenay, Cox, Davidson, Dear, Dent, Evans, Flewitt, Folkard, Garne, D Garston, J Garston, Gilbert, Habermel, Hadley, Harp, Holland, Jones, Lamb, McDonald, McGlone, McMahon, Moring, Mulroney, Nelson, Phillips, Robinson, Salter, Stafford, Terry, Walker, Ward, Wexham, Willis and Woodley (47)

 

Against the amendment:

None

 

Abstentions:

Cllr Jarvis (1)

 

Absent:

Cllrs Norman and Van Looy (2)

 

Amendment 3 was carried.

 

Amendment 4: Extra Care Home

 

For the amendment:

Cllrs Ayling, Borton, Burton, Chalk, Dent, Gilbert, Harp, Jones, McDonald, Mulroney, Nevin, Robinson, Stafford, Terry, Ward, Wexham, Willis and Woodley (18)

 

Against the amendment:

Cllrs Arscott, Aylen, Boyd, Bright, Buck, Buckley, Burzotta, Byford, Courtenay, Cox, Davidson, Dear, Evans, Flewitt, Folkard, Garne, D Garston, J Garston, Habermel, Hadley, Holland, Lamb, McGlone, McMahon, Moring, Nelson, Phillips, Salter and Walker (29)

 

Abstentions:

Cllr Jarvis (1)

 

Absent:

Cllrs Norman and Van Looy (2)

 

Amendment 4 was not carried.

 

Amendment 5: Tylers Avenue Car Park

 

For the amendment:

Cllrs Arscott, Aylen, Ayling, Borton, Boyd, Bright, Buck, Buckley, Burton, Burzotta, Byford, Chalk, Courtenay, Cox, Davidson, Dear, Dent, Evans, Flewitt, Folkard, Garne, D Garston, J Garston, Gilbert, Habermel, Hadley, Harp, Holland, Jones, Lamb, McDonald, McGlone, McMahon, Moring, Mulroney, Nelson, Phillips, Robinson, Salter, Stafford, Terry, Walker, Ward, Wexham, Willis and Woodley (47)

 

Against the amendment

None

 

Abstentions:

Cllr Jarvis (1)

 

Absent:

Cllrs Norman and Van Looy (2)

 

Amendment 5 was carried.

 

Amendment 6: Community Safety Team, Parking Permits and Solar Panels

 

For the amendment:

Cllrs Arscott, Aylen, Borton, Boyd, Bright, Buck, Buckley, Burton, Burzotta, Byford, Chalk, Courtenay, Cox, Davidson, Dear, Dent, Evans, Flewitt, Folkard, Garne, D Garston, J Garston, Gilbert, Habermel, Hadley, Harp, Jones, Lamb, McDonald, McGlone, McMahon, Moring, Mulroney, Nelson, Phillips, Robinson, Salter, Stafford, Terry, Walker, Ward, Wexham, Willis and Woodley (45)

 

Against the amendment:

Cllr Ayling (1)

 

Abstentions:

Cllrs Holland and Jarvis (2)

 

Absent:

Cllrs Norman and Van Looy (2)

 

Amendment 6 was carried.

 

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

 

For the budget:

Cllrs Arscott, Aylen, Borton, Boyd, Bright, Buck, Buckley, Burton, Burzotta, Byford, Chalk, Courtenay, Cox, Davidson, Dear, Dent, Evans, Flewitt, Folkard, Garne, D Garston, J Garston, Gilbert, Habermel, Hadley, Harp, Holland, Jones, Lamb, McDonald, McGlone, McMahon, Moring, Mulroney, Nelson, Phillips, Robinson, Salter, Stafford, Terry, Walker, Ward, Wexham, Willis and Woodley (46)

 

Against the budget:

Cllr Ayling (1)

 

Abstentions:

Cllr Jarvis (1)

 

Absent:

Norman and Van Looy (2)

 

The Council Budget 2019/20 proposals were carried, as set out as follows (with amendments 3, 5 and 6 above):

 

Resolved:

 

With regard to the Housing Revenue Account Budget 2019/20 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 4.86% on shared ownership properties, be approved.

 

3. That the proposed rent changes in 1 and 2 above be effective from 1 April 2019.

 

4. That the increase in garage rents by 2.5% to £11.70 per week for tenants (£14.04, being £11.70 plus VAT for non-tenants), with all variants on a standard garage receiving a proportionate increase, be approved.

 

5. That the South Essex Homes core management fee of £5,738,000 for 2019/20, be approved, with additional one-off funding also being made available of:

 

·      £10,000 for the data cleansing, training and embedding of new data protection practices in compliance with General Data Protection Regulations (GDPR); and

·      £140,000 to undertake a project to achieve better integration between the various ICT systems that the company uses, with the aim to achieve efficiencies going forward.

 

6. That the South Essex Homes proposals for average changes of 4% in service charges and 17% in heating charges, be approved.

 

7. That the following appropriations, be approved:

 

·      £60,000 to the Repairs Contract Pensions earmarked reserve;

·      £1,397,000 to the Major Repairs earmarked reserve; and

·      £272,000 HRA to the Capital Investment earmarked reserve.

 

8. That, subject to 1 to 7 above, the HRA budget as set out in Appendix 1 to the submitted report to Cabinet on 12th February 2019, be approved.

9. That the value of the Council’s capital allowance for 2019/20 be declared as £49.601M, as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

 

With regard to the Capital Programme 2019/20 to 2023/24:

 

10. That the current approved programme for 2019/20 to 2021/22 of £153.1m as set out in Appendix 1 to the Cabinet report on 12th February 2019, be noted.

 

11. That the Capital Investment Strategy for 2019/20 to 2023/24, as set out in Appendix 2 to the Cabinet report, be approved.

 

12. That the following be approved:

 

(i) New schemes and additions to the Capital Investment Programme for the period 2019/20 to 2023/24 totalling £14.5m for the General Fund and £20.8m for the Housing Revenue Account (Appendix 6 to the Cabinet report);

 

(ii) Schemes subject to external funding approval for the period 2019/20 to 2020/21 totalling £3.0m (Appendix 6 to the Cabinet report);

 

(iii) Schemes subject to viable business cases for the period 2019/20 to 2021/22 totalling £48.6m (Appendices 6 and 7 to the Cabinet report).

 

13. That the changes to the approved programme (Appendix 7 to the Cabinet report), be approved.

 

14. That it be noted that the approved Programme will result in a proposed Capital Investment Programme of £194.9m for 2019/20 to 2023/24, as set out in Appendix 7 to the Cabinet report, of which £74.3m is supported by external funding and that the total programme increases to £246.5m if all business cases and external funding schemes are approved.

 

15. That, subject to the final Business Case sign off for the new care facility at Priory from the Deputy Chief Executive (People) and Strategic Director (Finance and Resources), in consultation with the Cabinet Member for Adults and Housing, the budget of £11.581m be moved to the main programme.

 

16. That it be noted that a final review has been undertaken on the 2018/19 projected outturn and that the results have been included in the Cabinet report.

 

17. That the proposed Capital Investment Programme for 2018/19 to 2023/24, as set out in Appendix 8 to the Cabinet report, be approved.

 

 

 

With regard to Treasury Management and Prudential Indicators 2019/20:

 

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 at Appendix 2 to the Cabinet report, be approved.

 

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

 

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

 

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

 

23. That the operational boundary and authorised limits for borrowing for 2019/20 be set at £290m and £300m respectively as set out in Appendix 1 to the Cabinet report.

 

With regard to the General Fund Revenue Budget 2019/20:

 

In respect of 2018/19:

 

24. That the forecast outturn of £76.209 million, be noted.

 

25. That the appropriation of the sums from earmarked reserves totalling £14.283 million, as set out in detail in appendix 13 to the Cabinet report, be approved.

 

26. That the appropriation of the sums from earmarked reserves totalling £7.595 million, as set out in appendix 13 to the Cabinet report, be approved.

 

In respect of 2019/20 and later years:

 

27. That the Section 151 Officer’s (Strategic 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 Cabinet report, be acknowledged.

 

28. That a General Fund net revenue budget for 2019/20 of £80.755 million, as set out in appendix 3 to the Cabinet report, and any required commencement of consultation, statutory or otherwise, be approved.

 

29. That a Council Tax increase of 4.49% for the Southend-on-Sea element of the Council Tax for 2019/20, being 2.99% for general use and 1.5% for Adult Social Care, be approved.

 

30. That it be noted that the 2019/20 revenue budget has been prepared on the basis of using £2.5 million from the Collection Fund for the core budget to allow for a smoothing of the budget gap across the next three financial years.

 

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

 

·         Essex Police – approved Council Tax 14.16%;

·         Essex Fire & Rescue Services – approved Council Tax increase of 2.94%;

·         Leigh-on-Sea Town Council – approved precept increase of 1.73%.

 

32. That no Special Expenses be charged other than Leigh-on-Sea Town Council precept for 2019/20.

 

33. That the appropriation of the sums from earmarked reserves totalling £9.429 million, as set out in appendix 13 to the Cabinet report, be approved.

 

34. That the appropriation of the sums from earmarked reserves totalling £7.891 million, as set out in appendix 13 to the Cabinet report, be approved.

 

35. That the schools’ budget and its relevant distribution as recommended by the Education Board and as set out in appendix 2 to the Cabinet report, be approved.

 

36. That the on-going budget investment required of £6.610 million (appendix 11 to the report) and the General Fund and Public Health budget reductions required of £4.363 million (appendix 12 to the report) and the subsequent individual service cash limits for 2019/20, as contained in appendices 3 to 10 of the Cabinet report, be approved.

 

37. That the one-off investment items, as set out in paragraph 5.28 and included within the appropriations set out in appendix 13 to the Cabinet report, be approved.

 

38. That the direction of travel for 2020/21 and beyond and in particular noting the need for the organisation to move to a longer term and outcome based budgeting approach, be approved.

 

39. That the revised Medium Term Financial Strategy up to 2023/24, set out in appendix 14 to the Cabinet report, be approved.

 

With regard to the Council Tax 2019/20:

 

40. That it be noted that on 17th January 2019 the Cabinet calculated the Council Tax Base 2019/20, as follows:

 

(a) for the whole Council area as 53,424.44

(b) for dwellings in those parts of its area to which a Parish precept relates (Leigh Town Council) as 8,839.09.

 

41. That the Council Tax requirement for the Council’s own purposes for 2019/20 (excluding town/parish precepts) be determined as £80,755,429.

 

42. That the following amounts be calculated for the year 2019/20 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992, as amended (the Act):

 

(a) £357,759,625 – 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) -£276,582,571 – Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act;

 

(c) £81,177,054 – 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) £1,389.44 – Being the amount at 42(c) above, divided by the Council Tax Base shown at 40(a) above, as the basic amount of its Council Tax for the year (including town/parish precepts);

 

(e) £421,625 – 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: 31.80; Band B: 37.10; Band C 42.40; Band D: 47.70; Band E: 58.30; Band F:68.90; Band G: 79.50; Band H: 95.40.

 

(f) £1,382.22 – 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 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: 128.64; Band B: 150.08; Band C: 171.52; Band D: 192.96; Band E: 235.84; Band F: 278.72; Band G: 321.60; Band H: 385.92.

Essex Fire Authority: Band A: 48.30; Band B: 56.35; Band C: 64.40; Band D: 72.45; Band E: 88.55; Band F: 104.65; Band G: 120.75; Band H: 144.90.

 

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 2019/20 for each part of its area and for each of the categories of dwellings:

 

Band A: 1,098.42; Band B: 1,281.49; Band C: 1,464.56; Band D: 1,647.63; Band E: 2,013.77; Band F: 2,379.91; Band G: 2,746.05; Band H: 3,295.26.

 

45. That the Council’s basic amount of Council Tax for 2019/20 be determined as not excessive in accordance with the principles approved under Section 52ZB of the Act, and as shown in the calculation below:

 

(a) Percentage increase defined by the Secretary of State as constituting an excessive increase for 2019/20: 4.50%;

 

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

2018/19 amount: £1,322.82;

2019/20 amount: £1,382.22

 

Percentage increase: 4.49%

 

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 2019/20 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: 1,098.42; Band B: 1,281.49; Band C: 1,464.56; Band D: 1,647.63; Band E: 2,013.77; Band F: 2,379.91; Band G: 2,746.05; Band H: 3,295.26

 

Parished area: Band A: 1,130.22; Band B: 1,318.59; Band C: 1,506.96; Band D: 1,695.33; Band E: 2,072.07; Band F: 2,448.81; Band G: 2,825.55; Band H: 3,390.66

Supporting documents:

 

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