Issue - meetings

This report sets out Cabinet’s proposals for the capital and revenue budgets for 2016/17. In accordance with the Constitution, Council is required to approve the capital and revenue budgets, rent increases and council tax for 2016/17.

Discussion:

This report provided details of the capital and revenue budget proposals for 2016/2017.

The Cabinet had considered initial budget proposals on 24 November 2015, which had been developed in accordance with the principles set out in the Medium Term Financial Plan. In accordance with the budget and policy framework rules within the Constitution the Overview and Scrutiny Committees had then considered the Cabinet’s proposals prior to Cabinet’s consideration of the draft budget on 9 February 2016.

Following the final settlement, the Council’s New Homes Bonus had increased by £23,000.

An addendum report was tabled at the meeting which provided details of the correct precept (£28.07) for Cooling Parish Council and the outcome of a trades union ballot on the pay award proposals.

It was noted that an overarching Diversity Impact Assessment, as set out in Appendix 10 to the report, summarised the results of the Diversity Impact Assessments which had been completed for each of the services affected by the proposed budget changes.

During debate, the Leader of the Council, Councillor Jarrett, stated that once the new Rochester Riverside multi-storey car park was opened (scheduled for April 2016), the Corporation Street car park would no longer be a long-stay car park. He also stated that car parking charges at the Council’s Country Parks would not be taken forward.

The Leader of the Council, Councillor Jarrett, supported by the Deputy Leader and Portfolio Holder for Housing and Community Services, Councillor Doe, proposed the recommendations in the report with the exceptions of recommendations 27.4 and 27.7 which were revised as follows:

Revision to recommendation 27.4

·         Remove £40,000 income target from the budget, and replace with £8,000 from New Homes Bonus income and a further £32,000 income generation target from parking services.

·         £15,000 – Thames Estuary Campaign (funded by the New Homes Bonus)

·         £16,000 – Queen’s 90^th birthday beacons

·         £50,000 – Dutch Raid

·         £49,000 – Dickens Country

·         £140,000 – HMS Kent Freedom

·         £55,000 – Inward Investment

Total from reserves - £310,000

Revision to recommendation 27.7

Note the parish council precept requirements of £382,692 as detailed at revised Appendix 7 of the addendum report.

In accordance with rule 12.5 of the Council Rules, a recorded vote on the proposal was taken.

For – Councillors Avey, Bhutia, Brake, Carr, Mrs Diane Chambers, Rodney Chambers OBE, Chishti, Chitty, Clarke, Doe, Etheridge, Fearn, Filmer, Franklin, Griffin, Gulvin, Hall, Hicks, Howard, Iles, Jarrett, The Worshipful The Mayor of Medway, Councillor Kemp, O’Brien, Opara, Potter, Purdy, Royle, Saroy, Tolhurst, Tranter, Turpin, Wicks and Williams (33)

Against – Councillors Bowler, Brown-Reckless, Cooper, Craven, Freshwater, Gilry, Godwin, Griffiths, Johnson, Khan, Maple, McDonald, Murray, Osborne, Pendergast, Price, Shaw and Stamp (18)

Abstain – Councillor Joy (1)

Decision:

a)    The Council agreed the recommendations of the Employment Matters Committee on 3 February 2016 regarding the proposals for a pay award as set out in paragraph 4.5 of the report.

b)    The Council approved the proposed capital programme as set out in Appendix 3 to the report.

c)    The Council approved the  ...  view the full minutes text for item 787

Background:

The Cabinet agreed to accept this report as an urgent item to enable its recommendations to be forwarded to the Council Budget meeting on 25 February 2016. It was not possible to include this report in the main agenda as it was decided to wait for the anticipated announcement of the Final Settlement on 3 February 2016.  In the event, this did not transpire.

This report presented proposals for the capital and revenue budgets for 2016/2017.

It was noted that the Cabinet had considered initial budget proposals on 24 November 2015, which had been developed in accordance with the principles set out in the Medium Term Financial Plan which had identified a potential revenue shortfall of some £13.8 million for 2016/2017.

It was noted that under new arrangements announced in the Spending Review 2015 upper tier local authorities would be able to increase council tax by up to 4.0%, providing that the additional 2.0% was ring-fenced for social care.  The budget proposed by Cabinet would be based upon the Council availing itself of this additional flexibility and raising council tax by 3.994% in 2016/17.

The report provided details of the revenue budget proposals noting that that these would almost have balanced the 2016/17 budget. However, an issue created by the increase in the Non-Domestic Rates (NDR) appeals provision meant that there was still a need to identify further savings to close the residual £3.363 million gap in 2016/17.  Options were being considered and it was anticipated that the budget presented to Council on 25 February 2016 would be balanced and be underpinned by a robust set of assumptions. 

The proposed capital programme for 2016/2017, incorporating existing schemes and anticipated funding allocations, was £144.501 million. An overall summary and a summary by directorate of the proposed capital programme were attached at Appendix 4 to the report.

It was noted that budget proposals had been referred to all the Overview and Scrutiny Committees for consideration. The Overview and Scrutiny Committees’ views were detailed in the report, with the recommendations of the Business Support Overview and Scrutiny Committee set out for Cabinet in Appendix 1 to the report.

The schedule of fees and charges was set out in Appendix 6 to the report.

The report set out the requirements under equality legislation and it was noted that Diversity Impact Assessments would be completed for the budget proposals in advance of Full Council on 25 February 2016.