Agenda item
Council Budget 2019/20
Minutes:
A report by the Executive Director for Finance and Public Protection had been circulated together with a separate document entitled 'Council Budget 2018/19' which described the Executive's Budget and council tax proposals.
RESOLVED
(1) That there be one debate;
(2) That Councillor M J Hill OBE, Leader of the Council, in introducing and moving the budget and in responding to issues raised during the debate be allowed to speak without limit of time;
(3) That proposers of the amendments each be allowed to speak without limit of time;
(4) That Councillors seconding the motions each be allowed to speak for six minutes;
(5) That other speakers be allowed to speak for three minutes; and
(6) That no further substantial amendments be moved
It was moved and seconded that:
That the Council:
1. Has due regard to the responses to the consultation on the Council's budget proposals as contained in the appended Budget Book (Appendix D – Budget Consultation Feedback);
2. Has due regard to the Section 151 Officers Statement on the Robustness of the Budget and the Adequacy of Reserves as set out in the appended Budget Book (Section 11 – Section 151 Officer's Statement on the Robustness of the Budget and Adequacy of Reserves);
3. Has due regard to the Impact Analysis relating to increasing the Council tax by 4.95% in 2019/20 set out in the appended 'Budget Book' (Appendix C – Impact Analysis relating to increasing the Council Tax by 4.95% in 2019/20);
4. Approves:
4.1 The service revenue budgets for 2019/20 contained in the appended Budget Book (Table 3 – net Service Revenue Budget 2019/20);
4.2 The capital programme and its funding contained in the appended Budget Book (Section 8 – Capital programme) and (Appendix O – Capital programme);
4.3 The County Council element of the council tax for a Band D property at £1,292.40 for 2019/20 (Appendix B – County Precept for 2019/20)
As being the Council's Budget.
5. Approves the Council's Financial Strategy contained in the appended Budget Book (Appendix E – Financial Strategy);
6. Approves the Council's Capital Strategy 2019/20 contained in the appended Budget Book (Appendix N – Capital Strategy 2019/20);
7. Approves the Council's Flexible Use of Capital Receipts Strategy contained in the appended Budget Book (Appendix G – Flexible Use of Capital Receipts);
8. Approves the prudential targets for capital finance and notes the prudential indicators contained in the appended Budget Book (Appendix M – Prudential Indicators);
9. Approves that the minimum revenue provision (MRP) be based on the asset life method, charged on an annuity basis, over the estimated life of the assets acquired through borrowing as set out in the appended Budget Book (Section 10 – Minimum revenue Provision).
10. Approves the establishment of a Business Rates Volatility earmarked reserves for the County Council's share of the 2019/20 collective surplus of the Business rates Collection Funds operated by the Districts Council's in Lincolnshire.
An amendment was moved and seconded by the Labour Group as follows:
The Labour Group's alternative budget recognises that our residents look to the County Council to provide important services and opportunities to protect and promote their interests. This is particularly true at a time when the Council Tax is being increased by the maximum possible figure of 4.95% and the County Council projects that it will hold a reserve of £46.080m as at 31 March 2019 (Financial Volatility) and, under this budget, expects to expand reserves to £51.980m (Financial Volatility and Business Rates Volatility).
The Labour Group position is that there is no financial argument for the creation of a Business Rates Volatility Reserve of £5.900 million to be created for 2019/20 as the risk of there being a shortfall in 2019/20 is minimal. If a shortfall did occur it is argued that there are sufficient funds available in the Financial Volatility Reserve to meet any deficit. Accordingly £5.900m should be released of which £3.050m is to be used on service developments in 2019/20 and the remaining £2.850m should be added to the Financial Volatility Reserve.
It is proposed that the following amendments are made to the circulated 'Council Budget 2019/20' report:
Extra Capital Spending 2019/20
|
1. |
Park and Ride Scheme Lincoln (Appendix O, page 102 add extra line under "Environment & Economy") |
£10.000m |
|
2. |
Heritage Services: enhancement of assets (Appendix O, page 102 add extra line under "Environment & Economy") |
£0.250m |
|
|
Total Extra Capital Spending |
£10.250m |
Extra Revenue Spending 2019/20
|
1. |
Extended Children Centre Provision:
Extend opening hours to increase numbers of families who are able to use the provision (Appendix Q, page 107 add line 3.1) |
£0.207m |
|
2a. |
Social Mobility Task Force:
Two year project aimed at improving school and pupil performance (Appendix Q, page 108 add line 3.2) |
£0.425m per annum for 2 years |
|
2b. |
Small Schools Project:
Two year project aimed at improving outcomes for all pupils, especially those who are disadvantaged and vulnerable, in the County's smallest schools. (Appendix Q, page 108 add line 3.3) |
£0.700m per annum for 2 years |
|
3. |
Citizens Advice Bureaux:
Reinstate funding for welfare benefits advice (Appendix Q, page 123 add line 3.5) |
£0.352m |
|
4. |
Park and Ride Scheme:
Revenue running costs £1,200k Capital financing charges £150k year 1, £600k year 2 (Appendix Q, page 125 add line 3.8) |
£1.350m yr. 1 |
|
5. |
Heritage Services: enhancement of assets:
Capital financing charges (Appendix Q, page 125 add line 3.9) |
£0.016m |
|
|
Total Extra Revenue Spending 2019/20 |
£3.050m |
Funding of the Extra Spending 2019/20
The proposal is that the Business Rates Volatility Reserve is not established and instead the Business Rates Collection Fund surplus is added to the Financial Volatility reserve. The additional £3.050m to meet the extra revenue spending commitments outlined above to be taken from the Financial Volatility Reserve. Under these proposals, that reserve account will have an estimated balance of £48.930m at 31/03/2019 of which £3.087m is already spoken for in the Conservative led council budget leaving the reserve at £45.843m after allowing for the additional £3.050m revenue spending.
Revenue proposals numbered 2a and 2b are time-limited and will impact on the budget in 2019/20 and 2020/21 only. Revenue proposal numbered 4 will have a total cost in 2020/21 of £1.800m and this is on-going.
The additional capital spending of £10.250m will be funded by borrowing. The revenue cost of this borrowing has been included in the additional revenue spending.
The Executive Director Finance & Public Protection has confirmed that these proposals are compliant with the existing Financial Strategy of the Council and represent a balanced budget for 2019/20. Subject to the outcome of the Government's Fairer Funding Review of local government funding the Council is potentially facing an ongoing budget deficit over the medium term and substantial savings or other actions could be needed in the period beyond April 2020 to deliver a balanced budget. These proposals change the funding available to assist in balancing future budgets from the Financial Volatility Reserve to £45.843m.
In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was held for the amendment and, upon it being put to the vote, the amendment was lost.
Details of the recorded vote taken:
Those voting for the amendment:
K J Clarke, Mrs K Cook, G E Cullen, P M Key, Mrs J E Killey, Mrs M J Overton MBE, R B Parker, R A Renshaw.
Those voting FOR – 8
Those voting against the amendment:
B Adams, W J Aron, T R Ashton, Mrs A M Austin, M D Boles, Mrs W Bowkett, Mrs P A Bradwell OBE, D Brailsford, C J T H Brewis, T Bridges, M Brookes, R D Butroid, L A Cawrey, Mrs P Cooper, P E Coupland, C J Davie, R G Davies, B M Dobson, M T Fido, I G Fleetwood, M A Griggs, R Grocock, A G Hagues, M J Hill OBE, S R Kirk, Mrs C J Lawton, C S Macey, C E H Marfleet, C Matthews, A P Maughan, D McNally, Mrs A M Newton, C R Oxby, N H Pepper, C L Perraton-Williams, Mrs S Rawlins, C E Reid, R P H Reid, P A Skinner, Mrs E J Sneath, A J Spencer, H Spratt, A N Stokes, M J Storer, C L Strange, E W Strengiel, Dr M E Thompson, R H Trollope-Bellew, M A Whittington, Mrs S Woolley, L Wootten, R Wootten, C N Worth, B Young.
Those voting AGAINST – 54
ABSTENTIONS - 0
In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote on the motion was taken. Upon being put to the vote, the motion was carried.
Details of the recorded vote taken:
Those voting for the motion:
B Adams, W J Aron, T R Ashton, Mrs A M Austin, Mrs W Bowkett, Mrs P A Bradwell OBE, D Brailsford, C J T H Brewis, T Bridges, M Brookes, R D Butroid, L A Cawrey, Mrs K Cook, Mrs P Cooper, P E Coupland, C J Davie, R G Davies, B M Dobson, M T Fido, I G Fleetwood, M A Griggs, R Grocock, A G Hagues, M J Hill OBE, S R Kirk, Mrs C J Lawton, C S Macey, C E H Marfleet, C Matthews, A P Maughan, D McNally, Mrs A M Newton, C R Oxby, N H Pepper, C L Perraton-Williams, Mrs S Rawlins, C E Reid, R P H Reid, P Skinner, Mrs E J Sneath, A J Spencer, H Spratt, A N Stokes, M J Storer, C L Strange, E W Strengiel, Dr M E Thompson, R H Trollope-Bellew, M A Whittington, Mrs S Woolley, L Wootten, R Wootten, C N Worth and B Young.
Those voting FOR – 54
Those voting against the motion:
M D Boles, K J Clarke, G E Cullen, P M Key, Mrs J E Killey, Mrs M J Overton MBE, R B Parker, R A Renshaw.
Those voting AGAINST – 8
ABSTENTIONS - 0
RESOLVED
That the Council:
1. Has due regard to the responses to the consultation on the Council's budget proposals as contained in the appended Budget Book (Appendix D – Budget Consultation Feedback);
2. Has due regard to the Section 151 Officers Statement on the Robustness of the Budget and the Adequacy of Reserves as set out in the appended Budget Book (Section 11 – Section 151 Officer's Statement on the Robustness of the Budget and Adequacy of Reserves);
3. Has due regard to the Impact Analysis relating to increasing the Council tax by 4.95% in 2019/20 set out in the appended 'Budget Book' (Appendix C – Impact Analysis relating to increasing the Council Tax by 4.95% in 2019/20);
4. Approves:
4.4 The service revenue budgets for 2019/20 contained in the appended Budget Book (Table 3 – net Service Revenue Budget 2019/20);
4.5 The capital programme and its funding contained in the appended Budget Book (Section 8 – Capital programme) and (Appendix O – Capital programme);
4.6 The County Council element of the council tax for a Band D property at £1,292.40 for 2019/20 (Appendix B – County Precept for 2019/20)
As being the Council's Budget.
5. Approves the Council's Financial Strategy contained in the appended Budget Book (Appendix E – Financial Strategy);
6. Approves the Council's Capital Strategy 2019/20 contained in the appended Budget Book (Appendix N – Capital Strategy 2019/20);
7. Approves the Council's Flexible Use of Capital Receipts Strategy contained in the appended Budget Book (Appendix G – Flexible Use of Capital Receipts);
8. Approves the prudential targets for capital finance and notes the prudential indicators contained in the appended Budget Book (Appendix M – Prudential Indicators);
9. Approves that the minimum revenue provision (MRP) be based on the asset life method, charged on an annuity basis, over the estimated life of the assets acquired through borrowing as set out in the appended Budget Book (Section 10 – Minimum revenue Provision).
10. Approves the establishment of a Business Rates Volatility earmarked reserves for the County Council's share of the 2019/20 collective surplus of the Business Rates Collection Funds operated by the Districts Council's in Lincolnshire.
Supporting documents:
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