Issue - meetings

To consider the Cabinet’s recommendations on the 2015/16 Revenue Budget, the Medium Term Plan for 2016/17 – 2019/2020, the related Prudential Indicators and the Treasury Management Strategy (see also the Report of the Cabinet held on 22nd January 2015) and in accordance with Section 30 (2) of the Local Government Finance Act 1992, to approve resolutions as to the levels of Council Tax in 2015/16 for the various parts of Huntingdonshire District.  A report by the Head of Resources is enclosed.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Council will be asked to resolve that a recorded vote be taken on the conclusion of debate on this item.

In conjunction with a report by the Head of Resources (a copy of which is appended in the Minute Book) and Item Nos. 36 and 37 of the Report of the Cabinet, the Executive Councillor for Resources presented to Members the 2015/16 Revenue Budget, the Medium Term Financial Strategy for the period 2016/17 to 2019/20, the Treasury Management Strategy (MTFS) and other associated matters for the Council’s consideration and approval.

In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals for levels of Council Tax in 20145/16 for various parts of the Huntingdonshire district.

The Executive Councillor opened his remarks by suggesting the significance of this proposed budget and Medium Term Financial Strategy which had resulted in a revenue surplus for the first time since 2003. Members were reminded that the principal aim was to focus on the interests of the residents of Huntingdonshire with any changes made not affecting frontline delivery of services and providing better value for money.

Referring to the key elements of the proposed budget, Councillor Gray expressed his appreciation to Mrs J Slatter, Mr C Mason and Ms R Maxwell for their assistance over this period and for producing a clearer presentational format of the budget. He also thanks Officers and Members for their assistance in identifying further savings to the budget.

Councillor Gray acquainted Members with the programme of review of the budget and further detail of the proposed budget, including the proposed Council Tax freeze and robust programme of Zero Based Budgeting. 

Having taken account of comments of the Overview and Scrutiny Panel (Economic Well-Being), the Cabinet endorsed the savings that had been achieved through the Facing the Future and Zero Based Budgeting programmes and the further savings initiative that the Cabinet Members had been tasked to achieve. Councillor Gray also was pleased to report that the business community had been consulted and all those that had responded fully supported the proposed freeze of Council Tax.

The Executive Councillor in referring to the Treasury Management Strategy, reported that although the economy was showing signs of growth, interest rates remained low and outlined the Council’s proposed policy to continue to use short term investments with a lower risk.

With these assurances, Councillor Gray moved the recommendations of the Cabinet which were seconded by the Executive Leader, Councillor J D Ablewhite.

The Chairman of the Overview and Scrutiny Panel (Economic Well-Being), Councillor Harrison, indicated his support for the proposed budget and MTFS and informed Members that there had been a positive contribution from the Panel and fully endorsed the proposals on behalf of the Panel.

In response and on behalf of the UKIP Group, Councillor K J Churchill expressed his gratitude to the Executive Councillor and Officers for the presentation which had resulted in a clearer report and clarification of information when requested. He thanked his fellow UKIP Councillors for looking into the budget and in response to the criticism surrounding an alternative budget, Councillor  ...  view the full minutes text for item 62

To consider a report by the Head of Resources on the 2015/16 Revenue Budget and Medium Term Financial Strategy (2016/17 to 2019/20).

Approved the submission of a bid to Sports England for the One Leisure St Neots - 3G Sport Pitch (Replacement) Project.

Approved a capital financial contribution to the One Leisure St Neots - 3G Sport Pitch (Replacement) Project of £117,600 subject to the successful approval of the bid noted above (to a maximum of £125,734 reflecting a 10% contingency increase in the total cost of the project).

Recommended the Council to approve the proposed Budget, as modified by the 3G Sport Pitch (Replacement) Project, and Medium Term Financial Strategy, including

·  the additional savings that have been achieved (as shown on Table C in Appendix 1);

·  the level of reserves currently modelled.

·  a freeze in Council Tax for:

o  2015/16, and

o  over the period covered by the Medium Term Financial Strategy (2016/17 to 2019/20).

·  the capital programme and the Fees and Charges Schedule.

Further to Minute No.14/63 and by way of a report by the Head of Resources (a copy of which is appended in the Minute Book) the Cabinet gave further consideration to the draft Budget, Medium Term Financial Strategy and level of Council Tax for 2015/16.

Members’ attention was drawn to the additional information, which was now available, including the outcome of consultation with the business community, the views of the Overview and Scrutiny Panel (Economic Well-Being) following its further deliberations on the report by the Head of Resources and the decrease in the forecast outturn in the last twelve months.

The Cabinet was acquainted with the terms of a proposed project to replace the 3G Sport Pitch at One Leisure St Neots, details of which are also appended in the Minute Book. The project would be part funded through a bid to Sport England and the facility would have a minimum life of seven years. Having considered the business case for the project, which showed that the Council’s contribution would be paid back in four years, the Cabinet approved:

·  the submission of a bid to Sports England for the One Leisure St Neots - 3G Sport Pitch (Replacement) Project, and

·  a capital financial contribution to the One Leisure St Neots - 3G Sport Pitch (Replacement) Project of £117,600 subject to the successful approval of the bid noted above (to a maximum of £125,734 reflecting a 10% contingency increase in the total cost of the project).

Having placed on record their gratitude for the work of the Executive Councillor for Resources and the Resources Team in responding to the financial challenges facing the authority, it was

RESOLVED

  that the Council be recommended to approve the proposed Budget, as modified by the 3G Sport Pitch (Replacement) Project, and Medium Term Financial Strategy, including

·  the additional savings that have been achieved (as shown on Table C in Appendix 1);

·  the level of reserves currently modelled.

·  a freeze in Council Tax for:

o  2015/16, and

o  over the period covered by the Medium Term Financial Strategy (2016/17 to 2019/20).

·  the capital programme and the Fees and Charges Schedule.

To consider a report by the Head of Resources prior to its consideration by Cabinet.

(Executive Councillors J D Ablewhite, J A Gray and R B Howe were in attendance for the discussion on this item).

With the assistance of a report by the Head of Resources (a copy of which is appended in the Minute Book) the Panel considered the Council’s proposed Budget, Medium Term Financial Strategy (MTFS) 2016/17 to 2019/20 and Council Tax level for 2015/16. Having had their attention drawn to the changes made since the last meeting, Members supported the decision to “front load” ZBB heavy savings to be achieved in the forthcoming year by making further savings amounting to £653K in 2015/16.  These savings largely represented real terms reductions in spending without sacrificing services.  It was acknowledged that there was still more to do but the Executive Councillor for Resources was confident that, regardless of the outcome of the election, the Council would be in a strong financial position next year. Overall, approximately £2.5m had been taken out of the budget to date.

The Panel established a working group comprising Councillors I D Gardener, T Hayward, P D Reeve and M F Shellens to look into a selection of lines in the budget to examine how they had been constructed and to report back.

Following a question about the interest rate predictions, it was confirmed that the figures were based on information received from the Council’s advisors. The Panel then proceeded to ask Councillor T D Sanderson, Executive Councillor for Strategic Economic Development and Legal, questions about the work he had undertaken on the budgets of the services for which he was responsible. Councillor Sanderson reported that some of the services had been through Zero Based Budgeting and he was endeavouring to generate more income. The shared service for Legal was progressing. Reference also was made to the approach that would be taken to respond to the closure of local air bases.

At the conclusion of its deliberations the Panel:

a)  supported the general intention not to use reserves.  Given future uncertainty, it was recommended that the position should be reviewed next year but that reserves should not fall below £3m.  Their use should be justified by the value they achieved for the Council;

b)  recommendedthat the work to be undertaken over the coming year to define service levels and standards was subject to an assessment of the impact of any changes on the public.

c)  expressed support for the additional savings, which were being made at the right pace and with due regard to the impact on services;

d)  supported the Council Tax freeze for 2015/16;

e)  supported to intention to freeze Council Tax for the life of the Medium Term Financial Strategy (Councillor M F Shellens did not support this recommendation);

f)  endorsed the Capital Programme but registered concerns about the capital project appraisal, which Members would look at in due course, and

g)  endorsed the Fees and Charges schedule.

RESOLVED

  that the Cabinet be informed of the Panel’s views on the report by the  ...  view the full minutes text for item 80