Issue - meetings

This report sets out the capital and revenue budgets, rent increases and council tax for 2012/2013 as proposed by Cabinet at its meeting on 14 February 2012, for approval.

Discussion:

This report presented proposals for the capital and revenue budgets for 2012/2013. The Cabinet had considered initial budget proposals on 29 November 2011, which had been developed in accordance with the principles set out in the Medium Term Financial Plan 2012/2015. The implications of both the Comprehensive Spending Review 2010 and Local Government Finance Settlement were set out in the report, together with proposed measures to address the 8.3% cut in government funding (excluding the Council Tax freeze grant).

The report gave details of the changes made since the Financial Settlement was reported to Cabinet in December 2011, summarised the budget build and gave details of the directorate savings proposals.

It was noted that the proposed capital programme for 2012/2013 and future years, incorporating existing schemes and new funding announcements to date, was approaching £91.9 million. The net revenue budget for 2011/2012 amounted to £333.4 million, including additions proposed at Cabinet on 14 February 2012, which it was reported would not require an increase in Council Tax but was predicated upon receipt of Government grant that equated to an equivalent 2.5% increase.

The report set out the requirements under equality legislation and a diversity impact assessment, that aggregated the impact of reductions in funding to services, was attached at Appendix 9 to the report.

It was noted that two supplementary agendas had been circulated to Members which set out a number of amendments and some revised recommendations.

Councillor Jarrett, Portfolio Holder for Finance and Deputy Leader, supported by Councillor Rodney Chambers, Leader of the Council, proposed the recommendations set out in the main report with the exceptions of recommendations of 22.1, 22.10 and 22.14 which were set out in Supplementary Agenda No. 2 with a further amendment to recommendation 22.10 as follows:

22.10 - As part of the budget proposals, approve fees and charges, as recommended by Cabinet and set out in the booklet 'Medway Council - Fees and Charges April 2012' as set out in Appendix 8 with amendments as circulated in the addendum paper and that the fee for the meals delivery service remain at £3.90.

In accordance with rule 11.4 of the Council Rules at the request of six Members, a vote on the motion was recorded as follows:

For: Councillors Avey, the Worshipful Mayor (Councillor Baker), Brake, Bright, Carr, Mrs Diane Chambers, Rodney Chambers, Chishti, Chitty, Clarke, Doe, Etheridge, Filmer, Griffin, Adrian Gulvin, Pat Gulvin, Hewett, Hicks, Iles, Irvine, Jarrett, Kemp, Mackness, Mason, O’Brien, Purdy, Rodberg, Royle, Smith, Tolhurst, Turpin, Watson, Wicks and Wildey (34)

Against: Councillors Bowler, Colman, Cooper, Craven, Gilry, Christine Godwin, Paul Godwin, Griffiths, Harriott, Hubbard, Igwe, Maple, Murray, Osborne, Price and Shaw (16)

Abstain: Councillors Juby and Kearney (2)

Decision:

(a)   The Council approved the capital budget proposals as set out in the revised Appendix 1, noting that it now incorporates the additional highways investment of £1.5 million funded from capital receipts and that the previously unfunded overspend is now added to the prudential borrowing requirement. The cost of this borrowing  ...  view the full minutes text for item 826

Background:

This report presented proposals for the capital and revenue budgets for 2012/2013. The Cabinet had considered initial budget proposals on 29 November 2011, which had been developed in accordance with the principles set out in the Medium Term Financial Plan 2012/2015. The implications of both the Comprehensive Spending Review 2010 and Local Government Finance Settlement were set out in the report, together with proposed measures to address the 8.3% cut in government funding (excluding the Council Tax freeze grant).

The report gave details of the changes made since the Financial Settlement was reported to Cabinet in December 2011, summarised the budget build and gave details of the directorate savings proposals.

It was noted that the proposed capital programme for 2012/2013 and future years, incorporating existing schemes and new funding announcements to date, was approaching £90.3 million. The net revenue budget for 2011/2012 amounted to £332.2 million, which it was reported would not require an increase in Council Tax but was predicated upon receipt of Government grant that equated to an equivalent 2.5% increase.

The report set out details of the Council Plan, which had been developed alongside the budget setting process to ensure the link between resource and business planning was maintained. This was considered as a separate item on the agenda.

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 consideration.

The summarised Housing Revenue Account was set out in Appendix 4 to the report with the capital component in Appendix 2 to the report. A report setting out details of proposed rents for 2012/2013 was considered as a separate item on the agenda.

The schedule of fees and charges was attached at Appendix 5 to the report.

The report set out the requirements under equality legislation and a diversity impact assessment, that aggregated the impact of reductions in funding to services, was attached at Appendix 6 to the report.

The Cabinet agreed to consider this report as an urgent item to enable its recommendations to be forwarded to the Budget Council meeting on 23 February 2012.

The Portfolio Holder for Finance proposed a number of changes to the revenue budget (as set out in decision nos. 24 and 25/2012 below), which represented a call on reserves amounting to £1.175m. These would be financed by £340,000 of balances in ‘earmarked’ reserves that were no longer required, £200,000 from the unspent budgets allocated to the Sure Start centres and £143,000 from the Dedicated Schools Grant (DSG) reserve, leaving £492,000 to be taken from the general reserve balance.

These measures would result in the funding for the Freedom Pass, free swimming, apprenticeships, graffiti removal and Christmas parking being built into future years base budgets. There were one-off funding streams for the 2012  year of celebration, opposition to the airport proposals, investment generation and additions to the DSG. The £300,000  ...  view the full minutes text for item 6