Agenda item

The Council is requested to consider the Cabinet’s recommendations on the Financial Plan, Medium Term Plan for 2010/14, the 2009/10 Budget, related Prudential Indicators and the Treasury Management Strategy (see also Items Nos. 58 and 59 of the Report of the meeting of the Cabinet) and, in accordance, with Section 30 (2) of the Local Government Finance Act 1992 Act, to approve resolutions as to the levels of Council Tax in 2009/10 for the various parts of Huntingdonshire District.

 

A report by the Head of Financial Services is enclosed.

 

(Members are requested to note that the information contained in Appendix B should be treated as provisional at this stage.)

In conjunction with a report by the Head of Financial Services (a copy of which is appended in the Minute Book) and Item Nos. 58 and 59 of the Report of the Cabinet, the Executive Councillor for Finance and Environment, Councillor T V Rogers, addressed the Council on the financial plan, medium term plan 2010 to 2014, 2009/10 budget and related prudential indicators contained in the Treasury Management Strategy.  In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals as to the levels of Council Tax in 2009/2010 for the various parts of the Huntingdonshire District.

 

In his opening remarks, Councillor Rogers drew Members' attention to the pay award of 2.2% for employees which was less than anticipated and the overspend of £150,000 on the concessionary bus fare scheme which he suggested could be offset by the award of LAGBI funding in the order of £150,000.  He acknowledged the contributions made by the Overview and Scrutiny Panels and members of the Business Community to the budgetary process.

 

Councillor Rogers drew Members' attention to key issues and a series of changes which had occurred as a result of the economic downturn which had had an effect on the budget.  These included depletion of the capital and revenue reserves and falls in income from planning applications, industrial rentals and land charges.  He added that the Council would be operating in a period of uncertainty for some time as the length and severity of the current economic downturn could not be predicted.  He added that further resources might be required to cope with a growing homelessness problem and to meet any further variations in income.

 

Members were advised that the Council expected to end the current financial year with revenue reserves of £19m, that it was the expectation that £12.6m in revenue support would be received from the Government and that £3.7m from the reserves would be used to fund services and maintain a low Council Tax in the financial year 2009/2010.  Councillor Rogers emphasised that the Council would continue to search for efficiency savings and other sources of income.  Despite these initiatives, Councillor Rogers forecasted that revenue reserves would be exhausted by approximately 2013.  In addition to Cabinet measures to address these issues, Councillor Rogers informed the Council that a Working Party comprising Councillors K J Churchill, P J Downes, J E Garner, L W McGuire, T V Rogers and R J West had been appointed by the Overview and Scrutiny Panel (Corporate and Strategic Framework) to identify options for further budget savings and opportunities for new funding.

 

In terms of the Treasury Management Strategy, Councillor Rogers reported that the Cabinet had indicated support for corporate bonds and that the strategy was recommended to Council with this addition or its equivalent.

 

Before concluding, Councillor Rogers reported that if supported by Council, the budget would increase by 4.38% resulting in a Band D Council Tax of £121.15 or £2.33p per week, the 19th lowest district tax level of the 238 districts.  He commended the recommendations of the Cabinet to Council as set out in the report of the Head of Financial Services.

 

In response to Councillor Rogers’ address, Councillor P J Downes, on behalf of the Liberal Democrat Group, acknowledged the difficulties faced by the Council given the current unpredictable nature of the economy and the saving adjustments to the budget which needed to be identified by 2013/2014.  Referring to the financial summary on page 17 of the agenda, Councillor Downes considered whether it was prudent to propose a Council Tax increase of 4.99% given the uncertainty of capping.  Mindful not to disrupt frontline services, he proposed that the Leader of the Council and Portfolio Holder for Finance and the Environment review the content of the Corporate Services budget to achieve a reduction in expenditure consistent with the difference in income between a Council Tax of 4.99% and one of 3.9%.

 

Councillor I C Bates reminded the Council that the budgetary process had commenced in the Autumn, that the Overview and Scrutiny Panels had had ample opportunity to discuss the budget in detail and that it was not conducive to the Council's business to make suggestions at such a late stage without a full understanding of the consequences.  A number of Members spoke in the ensuing debate.  In response to questions, Councillor Rogers informed the Council that funding of housing benefit claims was reimbursed by central government, that the cost of a re-billing exercise should the Council be capped for setting a Council Tax in excess of the Government's expectations would be £60,000 and that it would have been preferable for detailed proposals to have been raised at the Overview and Scrutiny Panel meeting to allow time for proper debate and consideration.

 

Councillor Downes moved an amendment to the Motion and it was duly seconded –

 

  “that a Council Tax increase of 3.9% for 2009/2010 be approved in principle, that the Leader of the Council, Portfolio Holder for Finance and Transport and the Chief Executive seek to identify and recommend savings of £66,000 from the Corporate Services budget, and if supported by the Council, subsequent amendments be made to the Council's budget and Council Tax resolutions”. 

 

Upon being put to the vote, the amendment was declared to be LOST. 

 

Whereupon, it was

 

RESOLVED

 

  (a)  that the proposed budget for 2009/2010, Medium Term Plan for 2010/2014 and Financial Strategy as set out in Annexes (a), (b), (c) and (d) to the Report now submitted be approved;

 

  (b)  that the Treasury Management Strategy and Prudential Indicators, as set out in Appendix A to the Report of the Cabinet now submitted be approved subject to the inclusion of corporate bonds;

 

  (c)  that a Council Tax increase of 4.99% representing a Council Tax of £121.15 for a Band D  property in 2009/2010 be approved;

 

  (d)  that the following amounts be calculated by the Council for 2009/2010 in accordance with Sections 32 and 36 of the Local Government and Finance Act 1992:-

 

  £

 

(i)  the aggregate of the amounts which  73,486,453

  the Council estimates for the items

  set out in Section 32(2) (a) to (e) of

  the Act

  Gross revenue expenditure

  including benefits and Town/

  Parish Precepts

 

  (ii)  the aggregate of the amounts which   49,949,498

  the Council estimates for the items

  set out in Section 32 (3) (a) to (c)

  of the Act

  Gross revenue income including

  reimbursement of benefits and

  use of reserves 

 

  (iii)  the amount by which the aggregate   23,536,955

  at (b) (i) above exceeds the

  aggregate at (b) (ii) above in

  accordance with Section 32 (4)

   of the Act

  Budget requirement plus

  Parish/Town Precepts

  (item i minus item ii) 

 

  (iv)  the aggregate of the amounts   12,572,251

  payable into the General Fund

  for the items set out in Section 33

  (1) of the Act

  Government support 

 

  (v)  the aggregate of the amounts    27,882

  payable to the General Fund

  for the items set out in Section

  33 (3) of the Act

  Collection Fund surplus 

 

  (vi)  the basic amount of Council   188.70

  Tax for 2009/10 in accordance

  with Section 33 (1) 

  District plus average Town/

  Parish Council Tax

 

  (vii)  the aggregate of special items   3,914,987

  referred to in Section 34 (1)

  TotalTown and Parish Council

  precepts 

 

  (viii)  the basic amount of Council Tax   121.15

  for 2009/10 for those parts of `    per band

  the District to which no special    D

  item relates    property

  District Council Tax

 

(ix)  the basic amounts of Council Tax for 2009/10 for those parts of the District to which one or more special items relate in accordance with Section 34 (3) of the Act are shown by adding the Huntingdonshire District Council amount to the appropriate Parish Council amount in column "band D" set out in table 1 in Item No. 3 of the Agenda for this meeting.

 

(x)  the amounts to be taken into account for 2009/10 in respect of categories of dwellings listed in the different valuation bands in accordance with Section 36 (1) of the Act are shown by adding the Huntingdonshire District Council amount to the appropriate Parish Council amount for each of the valuation bands in the columns "bands A to H" set out in table 1 in Item No. 3 of the Agenda for this meeting

 

(e)  that the amounts of precept issued to the Council by Cambridgeshire County Council, Cambridgeshire Police Authority and Cambridgeshire and Peterborough Fire Authority for each of the categories of dwellings listed in different valuation bands in accordance with Section 40 of the Act shown in table 1 in Item No. 3 of the Agenda for this meeting be noted; and

 

  (f)  that, having regard to the calculations above, the Council, in accordance with Section 30 (2) of the Local Government and Finance Act 1992, hereby sets the figures shown in table 2 as the amounts of Council Tax for 2009/2010 for each of the categories of dwelling shown.