Issue - meetings

It was noted that in accordance with council procedure rule 17.6, a recorded vote would be taken on the motion or any amendments and substantive motions.

It was proposed by Councillor Townend and seconded by the Leader, that the recommendations set out in the report be agreed, namely:

“1.  “That Members approve the draft Medium Term Financial Strategy at Annex 1.

2.  That Members approve the draft General Fund Revenue budget estimates for 2017-18 to 2020-21 and the resulting budget requirement for 2017-18.

3.  That Members agree to a reduction in the grant to minor preceptors as per section 2.15."

Councillor I Gregory, seconded by Councillor Bayford proposed the following amendment to recommendation 1, namely:

“That Members approve the draft Medium Term Financial Strategy at Annex 1, but that the commencement of the lowest scoring 5 capital projects, at an estimated cost of £815,000, is deferred until Cabinet agrees that sufficient capital receipts are available.”

Upon further debate the amendment was withdrawn.

It was noted that there was a typographical error in the third recommendation which should refer to section 2.7 of the report.

53 Members voted in favour the motion: Councillors Ashbee, Bambridge, Bayford, Braidwood, Brimm, Buckley, Campbell, K. Coleman-Cooke, Connor, Crow-Brown, Curran, Dawson, Day, Dellar, Dennis, Dexter, Dixon, Edwards, Elenor, Evans, J. Fairbrass, L. Fairbrass, Falcon, Fenner, Game, I. Gregory, K. Gregory, Grove, Hayton, Howes, Jaye-Jones, Johnston, Larkin, Martin, Matterface, Parsons, Partington, L Piper, S Piper, L Potts, R Potts, Rogers, Rusiecki, D. Saunders, M. Saunders, Savage, Shonk, Stummer-Schmertzing, Taylor, Taylor-Smith, Tomlinson, Townend and Wells.

0 Members voted against the motion.

0 Members abstained from voting on the motion.

Subject to the typographical correction to recommendation three, the motion was carried

Cabinet acknowledged the observations from the Overview & Scrutiny Panel, including the clarifications that were made as a result of the comments made by the Panel. Members were advised that updates were made to the report that will be considered by Full Council on 09 February 2017.

Councillor Campbell and Councillor I. Gregory spoke under Council Procedure Rule 20.1.

Councillor Townend proposed, Councillor Crow-Brown seconded and Cabinet agreed the following recommendations to Council:

1.  The draft Medium Term Financial Strategy (MTFS) at Annex 1 to the report;

2.  The draft General Fund Revenue budget estimates for 2017-18 to 2020-21 and the resulting budget requirement for 2017-18;

3.  A reduction in the grant to minor preceptors as per section 2.7;

4.  The General Fund and Housing Revenue Account (HRA) Capital Budgets for 2017-18 as detailed at Annexes 2 and 5 (to the report);

5.  That Members approve the Flexible Use of Capital Receipts Strategy as detailed at Annex 3 (to the report);

6.  The HRA budget estimates for 2017-18 to 2020-21 and the Housing Revenue Account services charges as shown at Annex 4 (to the report);

7.  The level of general reserves be held at £2.011m and the approval of earmarked reserves as identified in Table 5 of the MTFS and the approval of earmarked reserves as identified in Table 5 of the MTFS.

report to follow

Tim Willis introduced the report and made the following points:

• The report was considered first by Cabinet on 17 January 2017;
• Council continued to face significant government cuts to the budget (especially the revenue support grant which had been reduced by about £1 million) over the coming years;
• Budget proposals were meant to minimise the impact of these cuts;
• New Homes Bonus had been reduced by over £1 million;
• Inflationary pressures on the cost side and pension revaluation and other smaller adjustments, contributed to a budget funding gap of about £2,6 million;
• Budget briefing sessions had been held for Members in addition to the formal Members Briefing sessions;
• Draw down on reserves of £450,000 was being proposed which would be paid back over a period of 3 years;
• Outcome of the New Homes Bonus review by government had an adverse effect on council budgets as it led to cuts in this funding source;
• Budget presumes (although not in the formal recommendations) an increase in council tax of £4.95 For Band D homes, which translate to 2.3%.

Members sought further clarifications by asking questions and made the following observations:

• In one section of the report there was reference to the draw down on reserves as £450,000 and in other sections the figure was £490,000. Why was there that anomaly?
• There was limited information regarding the rodent control and damp proofing budget provision, on how much was allocated for each of the two items;
• The comment that capital receipts from the Royal Sands development had not been allocated to capital projects required updating as some of the money had already been allocated. Of the initial amount was £3,55 million for the site, there is the remaining balance of £1,83 million as some of the money had already be used or allocated;
• There were cuts in council tax adjustments for minor preceptors. What would the contribution be from TDC to town/parish in respect of the precepts;
• Bar Charts have no scale heading in pages 36, 38 & 41 of the agenda pack. This would need to be corrected;
• The figure in the General Fund Revenue Budget (Budget Pressures) of £1,070k in Table 5 (on page 31 of the agenda pack) did not match up with the £700k + £340k which add up to £1,04 million of the same budget line in Table 2 (on page 26 of the agenda pack);
• How had the council tax base figures been worked out as the number of properties indicated seem to miss out new development?
• The comment on the section on the budget growth regarding the ‘reduction in rent of 12%, needed to be amended. This should read ‘reduction in rental income’ and not ‘reduction in average rent.’

In response to Member queries Tim Willis and Nicola Walker, Finance Manager (Finance Manager - HRA, Capital & External Funding) made the following comments:

• That there was an adjustment in the budget of £40,000 (in respect of the decriminalisation reserve) which was brought from  ...  view the full minutes text for item 93

Members agreed that the Council was continuing to face significant cuts in Government funding over the next few years and with substantial savings already having been made in recent years, it is becoming increasingly difficult to identify further savings without impacting on services. The budget proposals present a number of income generating proposals as well as savings, enabled the proposal of a balanced budget for 2017-18 with the minimum impact on services.

The funding pressures were substantial in respect of 2017-18. Government funding had been reduced, primarily in respect of Revenue Support Grant; which has been reduced by £1 million compared to 2016-17 and the New Homes Bonus, which has been similarly reduced by £1 million. After adding in inflationary pressures, the pensions revaluation, and other adjustments, there is forecast to be a gross budget gap of £2.6 million.

Council had already approved increases to fees and charges which will generate an additional £490,000. Further income generation plans were in train for planning, housing, car parking, power generation and the workshop. A new Thanet lottery was also expected to generate net income to fund local good causes, which would otherwise be vulnerable to budget reductions. It was envisaged that efficiencies would also be delivered, reducing the cost of services delivered by contractors and partners, as well as council services.

In light of the substantial reduction in Government funding in 2017-18 and to enable the council to set a realistic, deliverable budget, there is an assumed one-off drawdown of reserves of £450,000. To mitigate risk, the £450,000 will be drawn from earmarked reserves, not the general contingency. Importantly, the £450,000 was projected to be repaid over the period of the Medium Term Financial Strategy, replenishing reserves to their current level.

Members further noted other uncertainties relating to business rates localisation, which would change the nature of funding of local government. There were still very few clues from Government as to how this will be implemented.

Cabinet was also asked to recommend to council an increase in Council Tax of £4.95 on a Band D property, which equates to 2.31%.

Councillor Campbell and Councillor I. Gregory spoke under Council Procedure 20.1.

Councillor Townend proposed, Councillor Stummer-Schmertzing seconded and Cabinet agreed the following:

1.  That Members approve the draft Medium Term Financial Strategy at Annex 1 (of the report);

2.  That Members approve the draft General Fund Revenue budget estimates for 2017-18 to 2020-21 and the resulting budget requirement for 2017-18;

3.  That Members agree to a reduction in the grant to minor preceptors as per section 2.7(to the report);

4.  That Members approve the General Fund and Housing Revenue Account Capital Budgets for 2017-18 as detailed at Annexes 2 and 5(of the report);

5.  That Members approve the Flexible Use of Capital Receipts Strategy as detailed at Annex 3 (of the report);

6.  That Members approve the HRA budget estimates for 2017-18 to 2020-21 and the Housing Revenue Account services charges as shown at Annex 4 (to the report);

7.  That Members  ...  view the full minutes text for item 400