Agenda item

This report sets out the final proposals for the approval of the capital and revenue budgets, rent increases and council tax for 2015/2016 as proposed by Cabinet.

Discussion:

 

This report presented proposals for the capital and revenue budgets and the Housing Revenue Account (HRA) for 2015/2016.

 

The Cabinet had considered initial budget proposals on 2 December 2014, which had been developed in accordance with the principles set out in the Medium Term Financial Plan (MTFP) 2014/2018. 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 10 February 2015. It was noted that the report had incorporated the implications of the Final Settlement, which had been announced on 3 February 2015.

 

In setting its budget, the Council was exercising a public function and must therefore comply with the duties in section 149 Equality Act 2010 to have 'due regard' to the matters set out in that section. As such, a Diversity Impact Assessment was attached at Appendix 13 to the report.  This was an overarching report containing a summary of the results of the Diversity Impact Assessments which had been completed for each of the services affected by the proposed budget changes.

 

Appendix 12 to the report (Fees and Charges) was set out in Supplementary Agenda No.1.

 

The Deputy Leader and Portfolio Holder for Finance, Councillor Jarrett, supported by the Leader of the Council, Councillor Rodney Chambers OBE, proposed the recommendations in the report with the exceptions of recommendations 22.2 and 22.3 which were revised to reflect the following variations as follows:

 

	£000s
Budget Surplus	90
Saving ex A2 Dominion car park lease	80
Revenue saving	170
Deployed:
Additional homeless provision	20
Reduce Youth Review savings target	150
Revenue cost	170
Other initiatives
Utilise £5m South Medway Reserve for:
Match funding 2 bids of £20m each @ 10% (LED lighting and Medway Tunnel improvements bids)	4,000
Remaining £1m allocated:
Play Area refurbishment	100
WIF (Ward Improvement Fund) add back £1,000 per Councillor	55
Fuse Festival (subject to the receipt of £40,000 funding from the Arts Council)	45
Rochester Castle Siege	50
Dickens Country Initiative	50
Library books	100
Community Hub programme	100
Pothole repairs	200
Road schemes	300
	1,000
Ex Public Health Reserve
Outdoor Gym project	100
Use of Reserves	5,100
Reallocation of Grant Income
Chatham LGF (Local Growth Fund) – Chatham Railway Station refurbishment	700
Strood Town Centre LGF (Local Growth Fund) – Strood Railway Station refurbishment	1,250
	1,950

 

Councillor Maple, supported by Councillor Murray, proposed the following amendment:

 

1. Additional £217,000 to Medway Council employees to fund a living wage to be funded by reducing the Councillor Special Responsibility Allowance budget by £11,000; utilising £90,000 of unallocated DCLG grant funding; utilising an additional £66,000 brought about by utility bill savings and £50,000 additional income from Category Management.

 

2. Allocate the £800,000 provision to fund a 1% pay increase across all relevant staff.

 

3. Additional £200,000 to increase apprenticeship incentives offered to local employers to be funded by reducing the South Medway Development Fund by a non-recurring £200,000.

 

4. Additional £80,000 to retain EU project staff until October 2015 to be funded by reducing the South Medway Development Fund by a non-recurring £80,000.

 

5. Additional £115,000 to reinstate the FUSE Festival for 2015 to be funded by reducing the South Medway Development Fund by a non-recurring £115,000.

 

6. Additional £20,000 to set up a Council run Social Letting Agency to be funded by reducing the South Medway Development Fund by a non-recurring £20,000.

 

7. Additional £3,000,000 for local pavements and roads maintenance to be funded by reducing the South Medway Development Fund by a non-recurring £3,000,000.

 

8. Additional £150,000 to create peripatetic team of Health and Lifestyle Trainers to be funded from the Public Health Grant reserve.

 

9. Additional £35,000 to continue the service at the Sunlight Centre to be funded from the Public Health Grant reserve.

 

10. Additional £25,000 to set up a Community Energy Switch Scheme to be funded by reducing the South Medway Development Fund by a non-recurring £25,000.

 

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

 

For –  Councillors Bowler, Craven, Gilry, Christine Godwin, Paul Godwin, Griffiths, Harriott, Hubbard, Igwe, Juby, Maple, Murray, Osborne, Shaw, Smith and Stamp (16)

 

Against – Councillors Avey, Baker, Brake, Bright, Carr, Mrs Diane Chambers, Rodney Chambers OBE, Chishti, Chitty, Filmer, Griffin, Adrian Gulvin, Pat Gulvin, Hewett, Hicks, Iles, Irvine, Jarrett, The Worshipful The Mayor, Councillor Kemp, Mackness, The Deputy Mayor, Councillor Maisey, O’Brien, Purdy, Rodberg, Royle, Tolhurst, Turpin, Wicks and Wildey (29)

 

Abstain – (0)

 

Councillor Juby, supported by Councillor Smith, proposed the following amendment:

 

Table 10 in the report shows that there is £90,000 to spend from the revenue budget, and I would recommend the following uses for this:

 

1. Not raising residents parking charges from £25 to £26 (Cost £19,000) until after the Council has carried out the parking reviews which the public has been asking for since 2002.

 

2. Not raising visitors parking permits from £31 to £32 (cost £19,000).

 

Capital Budget

 

1. Using the £4.4 million which we no longer need for Rochester Airport.

 

2. £80,000 for a new play area in Gillingham Park.

 

3. £1.3 million to be spent of road repairs to include Adelaide Road, Trafalgar Street and Milton Road in Gillingham South Ward. The rest to be spent across the authority.

 

4. £3 million plus another £1 million from reserves for a river wall at the Civic Centre site in Strood so that this can be redeveloped, preferably for housing.

 

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

 

For –  Councillors Juby and Smith (2)

 

Against – Councillors Avey, Baker, Bowler, Brake, Bright, Carr, Mrs Diane Chambers, Rodney Chambers OBE, Chishti, Chitty, Craven, Filmer, Gilry, Christine Godwin, Paul Godwin, Griffin, Griffiths, Adrian Gulvin, Pat Gulvin, Harriott, Hewett, Hicks, Hubbard, Igwe, Iles, Irvine, Jarrett, The Worshipful The Mayor, Councillor Kemp, Mackness, The Deputy Mayor, Councillor Maisey, Maple, Murray, O’Brien, Osborne, Price, Purdy, Rodberg, Royle, Shaw, Stamp, Tolhurst, Turpin, Wicks and Wildey (44)

 

Abstain – (0)

 

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

 

For –  Councillors Avey, Baker, Brake, Bright, Carr, Mrs Diane Chambers, Rodney Chambers OBE, Chishti, Chitty, Filmer, Griffin, Adrian Gulvin, Pat Gulvin, Hewett, Hicks, Iles, Jarrett, Juby, The Worshipful The Mayor, Councillor Kemp, Mackness, The Deputy Mayor, Councillor Maisey, O’Brien, Purdy, Rodberg, Royle, Smith, Tolhurst, Turpin, Wicks and Wildey (30)

 

Against – Councillors Bowler, Craven, Gilry, Christine Godwin, Paul Godwin, Griffiths, Harriott, Hubbard, Igwe, Maple, Murray, Osborne, Price, Shaw and Stamp (15)

 

Abstain – Councillor Irvine (1)

 

Decision:

 

(a)         The Council agreed the recommendations of Employment Matters Committee on 28 January 2015 regarding the proposals for a pay award as set out at paragraph 8.4 in the report.

 

(b)         The Council approved the capital budget proposals as set out in Appendix 1 to the report.

 

(c)         The Council approved the general fund gross, income and net revenue estimates as summarised in Table 10 and detailed in Appendix 2 in the sum of £318.379 million as amended by the following:

 

	£000s
Budget Surplus	90
Saving ex A2 Dominion car park lease	80
Revenue saving	170
Deployed:
Additional homeless provision	20
Reduce Youth Review savings target	150
Revenue cost	170
Other initiatives
Utilise £5m South Medway Reserve for:
Match funding 2 bids of £20m each @ 10% (LED lighting and Medway Tunnel improvements bids)	4,000
Remaining £1m allocated:
Play Area refurbishment	100
WIF (Ward Improvement Fund) add back £1,000 per Councillor	55
Fuse Festival (subject to the receipt of £40,000 funding from the Arts Council)	45
Rochester Castle Siege	50
Dickens Country Initiative	50
Library books	100
Community Hub programme	100
Pothole repairs	200
Road schemes	300
	1,000
Ex Public Health Reserve
Outdoor Gym project	100
Use of Reserves	5,100
Reallocation of Grant Income
Chatham LGF (Local Growth Fund) – Chatham Railway Station refurbishment	700
Strood Town Centre LGF (Local Growth Fund) – Strood Railway Station refurbishment	1,250
	1,950

 

(d)         The Council noted the Kent Police and Crime Commissioner’s precept requirement.

 

(e)         The Council noted the Kent Fire and Rescue Service precept requirement.

 

(f)           The Council noted the parish council precept requirements of £366,466 as detailed at Appendix 10 to the report.

 

(g)         The Council agreed the schedule of precept instalment dates as set out in section 15 of the report.

 

(h)         The Council approved the basic rate of Council Tax at band D for 2015/2016, before adding the police, fire and parish precepts, at £1,187.46.

 

(i)           The Council, as part of the budget proposals, approved fees and charges, as recommended by Cabinet and set out in the booklet 'Medway Council - Fees and Charges April 2015' as set out in Appendix 12 to the report.

 

(j)            The Council agreed the recommendations set out in paragraph 14.3 of the report with regard to the Housing Revenue Account and detailed in the following appendices:

 

·           The budget proposed as summarised at Appendix 6 to the report;

·           The proposed increase in rents as set out at Appendix 7 to the report;

·           The proposed increase in garage rents as set out in Appendix 8 to the report; and

·           the proposed service charges as set out at Appendix 9 to the report.

 

(k)         The Council adopted the formal resolution for the council tax requirement and schedule of council tax charges for 2015/16 as set out in Appendix 11 to the report and incorporated the amendments made above, such that paragraph 3(a), Appendix 11 becomes £516,879,466 and paragraph 3(b), Appendix 11, becomes £421,263,509; all other parts of the resolution remain as set out in Appendix 11 to the report.

 

(l)            The Council noted the findings of the Diversity Impact Assessment as set out at Appendix 13 to the report, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.

 

(m)       The Council approved a delegation to the Chief Finance Officer, in consultation with the Portfolio Holder for Finance, to make adjustments to directorate budgets as the identification of the Corporate savings targets occur.