Agenda item

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 general fund gross, income and net revenue estimates as summarised in Appendix 1 in the sum of £322.617 million together with the following:

 

·           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 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

 

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 £382,692 as detailed in revised Appendix 7 to the addendum report.

 

g)    The Council agreed the schedule of precept instalment dates as set out in section 19 of the report.

 

h)   The Council approved the basic rate of Council Tax at band D for 2016/17, before adding the police, fire and parish precepts, at £1,234.89.

 

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 2016' as set out in Appendix 9 to the report.

 

j)      The Council agreed the recommendations set out at 17.3 in the report with regard to the Housing Revenue Account and detailed in the following appendices:

·           The budget proposed as summarised at Appendix 4 to the report;

·           The proposed decrease in rents as set out at Appendix 5 to the report;

·           The proposed service charges as set out at Appendix 6 to the report.

 

k)    The Council adopted the formal resolution for the council tax requirement and schedule of council tax charges for 2016/17 as set out in Appendix 8 to the report and incorporated the amendments made above such that paragraph 3(a), Appendix 8 becomes £539,424,302 and paragraph 3(b), Appendix 8, becomes £438,258,124; all other parts of the resolution remain as set out in Appendix 8 to the report.

 

l)        The Council noted the findings of the Diversity Impact Assessments as set out at Appendix 10, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.