Agenda item

RECOMMENDATIONS OF THE CABINET AND COUNCIL COMMITTEES

Meeting of Council, Wednesday, 19th February, 2014 7.00 pm (Item C. 798)

To receive and consider the recommendations to the Council contained in the following minutes of the Executive:-

	Committee/Date	Subject	Recommendation
A	The Cabinet 19 February 2014	Housing Revenue Account 2014/2015 (copy to follow)	To follow
B	The Cabinet 19 February 2014	Budget 2014/2015 to 2015/16 (copy to follow)	To follow
C	The Cabinet 19 February 2014	Treasury Management Strategy & Prudential Indicators 2014/2015(copy to follow)	To follow

Minutes:

(a) Housing Revenue Account 2014/2015

At the invitation of the Mayor, Councillor John Smith, Cabinet Member for Finance and Corporate Affairs, made a statement on the Housing Revenue Account 2014/2015.

It was moved by Councillor John Smith and seconded by Councillor Shori that the recommendations contained in Minute CA 791 of the Cabinet meeting held on 19 February 2014 be approved subject to the following amendments:

“DELETE

That the report be noted and the Council be requested to consider all matters relating to the Housing Revenue Account 2014/15, the increase in Council House and garage rents and changes to other charges at its meeting on 19 February 2014.

ADD

1. The Housing Revenue Account estimates set out in Appendix 1 of the report be approved, subject to later amendment to reflect the agreed Management Fee payable to Six Town Housing and subject to changes in income levels and reserve contributions resulting from the rent increases and capital spending set out below;

2. The average housing rent be increased by 2.5% from the first rent week in April;

3. Garage rents be increased by 2.5% from the first rent week in April;

4. The contribution into the Housing Business Plan Headroom Reserve be reduced by £354,000 to fund the reduced levels of rent income resulting from the rent increases set out in 2 and 3 above;

5. Sheltered amenity charges be increased by 3.2% from the first rent week in April;

6. The proposed schemes of protection should be continued for the next twelve months for the Sheltered Support Charges;

7. Sheltered management, support and heating charges and Furnished Tenancy charges should remain unchanged from the first rent week in April;

8. A contribution of £12.357m be made from the Business Plan Headroom Reserve over the period of 2014/15 to 2016/17 to facilitate improvements to bathrooms, kitchens and heating systems in Council owned properties in addition to the existing programme of improvements;

9. The draft Capital Programme to be amended to reflect the contribution from the Headroom Reserve.”

On being put the result of the vote was as follows:

For the Amendment:-

Councillors A Audin, K Audin, D Bailey, M Bailey, N Bayley, I Bevan, J Black, P Bury, G Campbell, S Carter, R A Caserta, D M Cassidy, M Connolly, A J Cummings, J Daly, E FitzGerald, L Fitzwalter, J Frith, I B Gartside, D L Gunther, M Hankey, S Haroon, P Heneghan, T Holt, K Hussain, A Isherwood, M A James, D Jones, J S Lewis, A Matthews, S Nuttall, D O’Hanlon, N A Parnell, T D Pickstone, A Quinn, K Rothwell, R Shori, A Simpson, S Smith, J Smith, S Southworth T Tariq, B Vincent, R E Walker, S Walmsley, J F Walton, M Wiseman and Y Wright.

Against the Amendment:-

None

Abstaining from the Vote:-

The Worshipful the Mayor

The Mayor declared the Amendment carried.

It was:-

Resolved:

That the recommendations set out in respect of the Housing Revenue Account for 2014/2015 be approved.

(b) Budget 2014/2015 to 2015/2016

At the invitation of the Mayor, Councillor John Smith, Cabinet Member for Finance and Corporate Affairs made a statement on the Budget for 2014/2015 to 2015/2016.

(A) It was moved by Councillor John Smith and seconded by Councillor Connolly that the recommendations contained in Minute CA 792 of the Cabinet meeting held on 19 February 2014 be approved subject to the following amendments:

“DELETE

That the report is noted and the Council be requested to consider and determine all matters relating to the Budget, the Capital Programme and the level of Council Tax for 2014/15 at its meeting on 19 February 2014.

ADD

Section A – Capital Programme

1. Approve the Capital Programme for 2014/15 and future years, as shown in Appendix 1; and incorporate the amendment to the Housing Revenue Account which provides for an additional £12.357m capital investment.

2. Approve the proposed financing of the Capital Programme; incorporating the use of £12.357m Headroom Reserve monies to fund additional capital investment.

Section B – Revenue Budget

3. Note the details of the Settlement Funding Allocation (SFA) for 2014/15, and indicative allocations for 2015/16;

4. Approve the level of repayment of principal on General Fund debt at the minimum of 4% in line with the current Minimum Revenue Provision policy;

5. Note that under delegated powers the Assistant Director of Resources (Finance & Efficiency) calculated the amount of 51,227.93 as the Council Tax base for the year 2014/15 in accordance with the Local Government Act 2003 and with regulations made under section 33(5) of the Local Government Finance Act 1992 and the Local Authority (Calculation of Council Tax Base) (England) Regulations 2012;

6. Note the forecast outturn position for 2013/14;

7. Approve that the actual minimum level of balances for 2014/15 be increased to £4,500,000 in view of a revised risk profile;

8. Approve the programme of savings set out in the Plan for Change (Appendix 4);

9. Note the recommendations of the Schools’ Forum around education funding issues;

10. Endorse the statements by the Assistant Director of Resources (Finance and Efficiency) on the robustness of budget assumptions and on the minimum level of balances;

11. Freeze the Bury element of the 2014/15 Council Tax at the level set for 2013/14;

12. Note the proposals of the major preceptors to increase / freeze their precepts as outlined at 14 (iv);

13. Approve the net Revenue Budget for 2014/15 of £138.515m as set out in section 4.6, subject to the following amendments:

£m

Add:

Highways improvements along the A56 corridor through Prestwich Village

0.500

Funded By:

Use of available balances

0.500

14. Approve the following recommendations in relation to the Revenue Budget and Council Tax for 2014/15:

i) It be noted that on 31st January 2014 the Council calculated the Council Tax Base 2014/15 for the whole Council area as 51,227.93 [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)].

ii) The Council calculates the Council Tax requirement for the Council’s own purposes for 2014/15 (excluding precepts) as £66,793,088.

iii) That the following amounts be calculated for the year 2014/15 in accordance with Sections 31 to 36 of the Act;

a) £455,724,233 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

b) £388,931,145 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

c) £66,793,088 being the amount by which the aggregate at iii(a) above exceeds the aggregate at iii(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

d) £1,303.84 being the amount at iii(c) above (Item R), divided by Item T (item i above) calculated by the Council, in accordance with Section 31B of the Act, as the relevant basic amount of its Council Tax for the year, and;

e) Bury Council

869.23

1,014.10

1,158.97

1,303.84

1,593.58

1,883.33

2,173.07

2,607.68

Being the amounts given by multiplying the amount set at iii(e) above by the number which, in the proportion set out in Section 5(1) of the Act is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation Band D, calculated by the Council in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

iv) To note that the Police and Crime Commissioner and Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

Police & Crime Commissioner for Greater Manchester

101.53

118.46

135.38

152.30

186.14

219.99

253.83

304.60

Council 19 February 2014

Greater Manchester Fire & Rescue Authority

38.42

44.83

51.23

57.64

70.44

83.25

96.06

115.28

v) That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2014/15 for each part of its area and for each of the categories of dwellings.

Aggregate of Council Tax Requirements

1,009.18

1,177.39

1,345.58

1,513.78

1,850.16

2,186.57

2,522.96

3,027.56

vi) To determine whether the Council’s relevant basic amount of Council Tax for 2014/15 is excessive in accordance with the principles approved under the Local Accountability and Audit Act 2014. (for Freeze Grant purposes)

	2013/14	2014/15	% Change
Council Tax Base	51,227.93	51,227.93
Council Tax Requirement	£66,793,088	£66,793,088
Relevant Amount of Council Tax	£1,303.84	£1,303.84	0.00%

vii) The calculation in 14 vi) above is undertaken to assess the extent to which the Council has increased its relevant level of Council Tax. Councils reporting a 0.00% increase qualify for the Council Tax freeze grant.

Bury's increase is 0.00%and therefore the Council does qualify for the freeze grant.”

(B) An amendment was moved by Councillor Gartside and seconded by Councillor Daly that:

“The revenue budget submitted to Council should be approved and the Council Tax be frozen. The budget shortfall identified in the Budget report met through the savings options set out in the relevant Appendix of the report with the following amendments:

AMENDMENT

AMOUNT

· Increase funding for highways, pot holes and line marking repairs.

· Create 52 new apprenticeships for young people under the age of 25.

· Reinstate children’s social care posts and increase the budget to help with demand pressures in looking after vulnerable people.

· Reverse £75,000 cut to voluntary services from PFC 3 and increase grants by £200,000.

· Offer “Council Tax Cash-Back” scheme for over 65’s.

· Reinstate free parking in all Council pay and display areas in Bury on Sunday’s and offer 1 hour free parking on weekdays.

· Increase street cleaning budget.

· Increase enforcement to prevent dog fouling.

£2,000,000

£250,000

£263,000

£275,000

£300,000

£358,000

£100,000

£30,000

TOTAL

£3,576,000

To be funded by:

AMENDMENT

AMOUNT

· One-off contribution from useable balances leaving the residual above the agreed £4.5m minimum level.

· Remove Deputy Cabinet members’ posts.

· Reduce Councillor’s Special Responsibility Allowances by 10%.

· Top slice senior staff salaries by 10% over £50,000.

· Savings in e-agendas and courier service.

· Reduce funding for Trade Union posts.

· Savings from agency staffing budget.

· Retain original saving proposal from the ruling Labour administration to reduce free car parking and car user allowances.

· Savings identified from the Cost of Borrowing budget.

· Savings from further restructuring of Council Departments.

£2,000,000

£10,000

£15,000

£170,000

£10,000

£50,000

£268,000

£303,000

£500,000

£250,000

TOTAL

”

£3,576,000

On being put the result of the vote was as follows:

For the Amendment:-

Councillors Bevan, Caserta, Daly, Gartside, Gunther, Hankey, Hussain, Nuttall, O’Hanlon, Pickstone, Vincent, Walker, Walton and Wright.

Against the Amendment:-

Councillors A Audin, K Audin, D Bailey, M Bailey, N Bayley, Black, Bury, Campbell, Carter, Cassidy, Connolly, Cummings, FitzGerald, Fitzwalter, Frith, Haroon, Heneghan, Holt, Isherwood, James, Jones, Lewis, Matthews, Parnell, Quinn, Rothwell, Shori, Simpson, J Smith, S Smith, Southworth, Tariq and Walmsley.

Abstaining from the Vote:-

The Worshipful the Mayor, Councillor Wiseman.

The Mayor declared the amendment lost.

“The budget contained in the Council report should be approved subject to the following changes:

Creation of a facility in the south of the Borough to support young people into employment / creation of apprenticeships. (Over a period of 3 years - £67,000 per annum; premises £17,000 pa, staffing/training £50,000 pa).

Additional £2m of useable balances to fund essential road repairs over a 3 year period.

Additional £200,000 of useable balances to fund a traffic / parking study on the Bury New Road corridor through Prestwich Village, and resulting actions to improve traffic flow and parking.

200,000

2,000,000

200,000

TOTAL COST

2,400,000

To be funded from:

Further restructuring to move away from a Directorate structure wef 1 April 2015; releasing one further SLT level post and associated costs. Initially to fund 1. above; generating ongoing savings after year 3. Costs in 2014/15 to be met from balances.

Use of available balances for one-off expenditure

200,000

2,200,000

TOTAL FUNDING

”

2,400,000

Council 19 February 2014

On being put the result of the vote was as follows:

For the amendment:-

Councillors Bevan, Caserta, Daly, Gartside, Gunther, Hankey, Hussain, Nuttall, O’Hanlon, Pickstone, Vincent, Walker, Walton, Wiseman and Wright.

Against the Amendment:-

Councillors A Audin, K Audin, D Bailey, M Bailey, Bayley, Black, Bury, Campbell, Carter, Cassidy, Connolly, Cummings, FitzGerald, Fitzwalter, Frith, Haroon, Heneghan, Holt, Isherwood, James, Jones, Lewis, Matthews, Parnell, Quinn, Rothwell, Shori, Simpson, J Smith, S Smith, Southworth, Tariq and Walmsley.

Abstaining from the Vote:-

The Worshipful the Mayor.

The substantive motion (as set out in A), was put to the vote which was as follows:-

For the Motion:

A Audin, K Audin, D Bailey, M Bailey, N Bayley, I Bevan, J Black, P Bury, G Campbell, S Carter, R A Caserta, D M Cassidy, M Connolly, A J Cummings, J Daly, E FitzGerald, L Fitzwalter, J Frith, I B Gartside, D L Gunther, M Hankey, S Haroon, P Heneghan, T Holt, K Hussain, A Isherwood, M A James, D Jones, J S Lewis, A Matthews, S Nuttall, D O’Hanlon, N A Parnell, T D Pickstone, A Quinn, K Rothwell, R Shori, A Simpson, S Smith, J Smith, S Southworth T Tariq, B Vincent, R E Walker, S Walmsley, J F Walton, M Wiseman and Y Wright.

Against the Motion:

None

Abstaining from the Vote:-

The Worshipful the Mayor.

(b) Treasury Management Strategy and Prudential Indicators 2014/15

On being put with no Members voting against it was:

Resolved:

That the recommendations contained in the Minute CA 793 of the Cabinet dated
19 February 2014 be approved and adopted

Supporting documents: