Agenda item

RECOMMENDATIONS OF THE CABINET AND COUNCIL COMMITTEES

Meeting of Council, Wednesday, 25th February, 2015 7.00 pm (Item C. 752)

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

	Committee/Date	Subject	Recommendation
A	The Cabinet 25 February 2015	Housing Revenue Account 2015/2016 (copy attached)	To follow
B	The Cabinet 25 February 2015	Budget 2015/16 (copy attached)	To follow
C	The Cabinet 25 February 2015	Treasury Management Strategy & Prudential Indicators 2015/2016(copy attached)	To follow

Minutes:

(a) Housing Revenue Account 2015/2016

At the invitation of the Mayor, Councillor Shori, Cabinet Member Health and Wellbeing, made a statement on the Housing Revenue Account 2015/2016.

It was moved by Councillor Shori and seconded by Councillor Connolly that the recommendations contained in Minute CA.743 of the Cabinet meeting held on 25 February 2015 be approved subject to the following amendments:

(A) “DELETE

That the report be noted and the Council be requested to consider all matters relating to the Housing Revenue Account 2015/16, the increase in council house and garage rents and changes to other charges at its meeting on 25 February 2015.

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 frozen at current levels from the first rent week in April;

3. Garage rents be frozen at current levels with effect from the first rent week in April;

4. Sheltered management charges be increased in line with the proposals set out in section 3.2.4 and the scheme of protection outlined in section 3.2.6 be implemented;

5. Sheltered amenity charges be increased by 1.2% from the first rent week in April;

6. Sheltered support and furnished tenancy charges remain unchanged from the first rent week in April and the scheme of protection for Sheltered Support Charges be continued;

7. Sheltered heating charges be reduced by 5% from the first rent week in April;

8. Tenancy charges at the Fernhill Caravan Site be frozen at current levels from the first rent week in April;

9. The draft Capital Programme be amended to add in works to the value of £250,000 in respect of play areas, street lighting and other environmental improvements to be funded initially from the Headroom Reserve.

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

That the recommendations contained in the minutes of the Cabinet meeting held on 25 February 2015 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 Housing Revenue Account 2015/16, the increase in Council house and garage rents and charges at its meeting on 19 February 2015.

ADD

1. The average housing rent increase, garage rents, sheltered amenity charges and all other charges are noted and retained in the report to Cabinet.

2. A contribution of £2,000,000 be made from available reserves in 2015/16 to sheltered housing services and support for extra care housing.

3. The draft Capital Programme to be amended to reflect the contribution from HRA reserves.”

The amendment was put to the vote which was a follows:-

For the Amendment:

Councillors I Bevan, R Caserta, J Daly, I Gartside, D Gunther, R Hodkinson, K Hussain, S Nuttall, R Walker, J Walton and Y Wright.

Against the Amendment:

Councillors P Adams, N Bayley, J Black, S Briggs, P Bury, S Carter, D M Cassidy, M Connolly, A J Cummings, E FitzGerald, L Fitzwalter, J Frith, J Grimshaw, S Haroon, P Heneghan, T Holt, A Isherwood, M A James, D Jones, S Kerrison, J S Lewis, A K Matthews, J Mallon, E O’Brien, T Pickstone, A Quinn, K Rothwell, R Shori, A Simpson, S Smith, J Smith, S Southworth, T Tariq, S Walmsley and M Whitby.

Abstaining from the vote:

The Worshipful the Mayor

The Mayor declared the amendment lost.

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

For the Motion:

Councillors P Adams, Noel Bayley, I Bevan, J Black, S Briggs, P Bury, S Carter, R Caserta, D Cassidy, M Connolly, A Cummings, J Daly, E FitzGerald, L Fitzwalter, J Frith, I Gartside, J Grimshaw, D Gunther, S Haroon, P Heneghan, R Hodkinson, T Holt, K Hussain, A Isherwood, M James, D Jones, S Kerrison, J Lewis, J Mallon, A Matthews, S Nuttall, E O’Brien, T Pickstone, A Quinn, K Rothwell, R Shori, A Simpson, John Smith, Stella Smith, S Southworth, T Tariq, R Walker, S Walmsley, J Walton, M Whitby and Y Wright.

Against the motion:

None

Abstaining from the vote:

The Worshipful the Mayor

The Mayor declared the substantive motion carried.

(b) Budget 2015/2016

At the invitation of the Mayor, Councillor Connolly, Leader, made a statement on the Budget for 2015/2016.

(A) It was moved by Councillor Connolly and seconded by Councillor Shori that the recommendations contained in Minute CA.744 of the Cabinet meeting held on 25 February 2015 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 2015/16 at its meeting on 25th February 2015.

ADD

Section A – Capital Programme

1. Approve the Capital Programme for 2015/16 and future years, as shown in Appendix 1; as amended by table below.

2. Approve the proposed financing of the Capital Programme;

Section B – Revenue Budget

3. Note the details of the Settlement Funding Allocation (SFA) 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 2015/16 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 2014/15;

7. Approve that the actual minimum level of balances for 2015/16 be increased to £4,500,000 in view of a revised risk profile;

8. Approve the programme of cuts set out in Appendix 5;

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 2015/16 Council Tax; at the same levels as 2014/15;

12. Note the proposals of the major preceptors as outlined at 4.6.4;

13. Approve the net Revenue Budget for 2015/16 of £128.392m as set out in section 4.6 of the report; subject to the following amendments:

£m

Add:

One-off investment into general play area improvements

Implement a scheme to encourage inward investment into the Borough by offering Business Rate reductions for new build schemes

Partially restore funding to Bury Support Fund as a result of cuts in Government Funding

Funding to address pressures in Adult Care Services as a result of discharge from Accident & Emergency and Government Legislation

Additional capital investment in Prestwich Town Centre as part of a wider regeneration package

0.250

0.000

0.125

1.500

3/4

5a.

5b.

Funded By:

Manchester Airport Dividend

No additional cost; scheme will generate additional Business Rates income

Additional Grant to deal with pressures on local welfare provision and health & social care

Grant funding secured from the Greater Manchester Combined Authority (Transport for Greater Manchester)

Prudential borrowing funded from within existing Treasury Management Budget

0.250

0.000

0.250

0.500

1.000

14. Approve the following recommendations in relation to the Revenue Budget and Council Tax for 2015/16:

i) It be noted that on 31st January 2015 the Council calculated the Council Tax Base 2015/16 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 2015/16 (excluding precepts) as £66,793,088.

iii) That the following amounts be calculated for the year 2015/16 in accordance with Sections 31 to 36 of the Act;

a) £441,903,233 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

b) £375,110,145 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

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 2015/16 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 2015/16 is excessive in accordance with the principles approved under the Local Accountability and Audit Act 2014. (for Freeze Grant purposes)

	2014/15	2015/16	% 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:

amendment	amount £
· Reinstate 2 weekly residual waste bin collections.	800,000
· Increase funding for highways, pot holes, line markings, fly-tipping enforcement, traffic calming measures and street light repairs.	2,174.000
· Increase funding for help with demand pressures in protecting vulnerable people.	830,000
Total	3,804,000

To be funded by:

amendment

amount £

· One-off contribution from useable reserves leaving the residual above the agreed 4.5 million minimum level.

2,000,000

· Remove Deputy Cabinet members posts

10,000

· Savings in e-agendas and courier service and withdrawing free meals for Councillor.

11,000

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

170,000

· Reduce funding for Trade Union posts

80,000

· Reduce Councillor’s Special Responsibility Allowances by 10%

15,000

· Savings from agency staffing

268,000

· Savings from not employing a permanent additional member of the senior management team in October 2015

150,000

· Savings from Six town Housing management fee

100,000

· Outsource Legal, HR, ICT and support services

1,000,000

Total

”

3,804,000

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

For the Amendment:-

Councillors I Bevan, R Caserta, J Daly, I Gartside, D Gunther, R Hodkinson, K Hussain, S Nuttall, T Pickstone, R Walker, J Walton and Y Wright.

Against the Amendment:-

Councillors P Adams, Noel Bayley, J Black, S Briggs, P Bury, S Carter, D Cassidy, M Connolly, A Cummings, E FitzGerald, L Fitzwalter, J Frith, J Grimshaw, S Haroon, P Heneghan, T Holt, A Isherwood, M James, D Jones, S Kerrison, J Lewis, J Mallon, A Matthews, E O’Brien, A Quinn, K Rothwell, R Shori, A Simpson, John Smith, Stella Smith, S Southworth, T Tariq, S Walmsley, and M Whitby.

Abstaining from the Vote:-

The Worshipful the Mayor.

The Mayor declared the amendment lost.

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

For the Motion:-

Councillors P Adams, Noel Bayley, J Black, S Briggs, P Bury, S Carter, D Cassidy, M Connolly, A Cummings, E FitzGerald, L Fitzwalter, J Frith, J Grimshaw, S Haroon, P Heneghan, T Holt, A Isherwood, M James, D Jones, S Kerrison, J Lewis, J Mallon, A Matthews, E O’Brien, T Pickstone, A Quinn, K Rothwell, R Shori, A Simpson, John Smith, Stella Smith, S Southworth, T Tariq, S Walmsley, and M Whitby.

Against the Motion:-

None

Abstaining from the Motion:-

The Worshipful the Mayor, Councillors I Bevan, R Caserta, J Daly, I Gartside, D Gunther, R Hodkinson, K Hussain, S Nuttall, R Walker, J Walton and Y Wright.

The Mayor declared the substantive Motion carried.

On being put with no Members voting against it was:

Resolved:

That the recommendations contained in the Minute CA.745 of the Cabinet dated 25 February 2015 be approved and adopted.

Supporting documents: