Agenda item

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 at £280,000 per annum to be met by an unspecified savings target for the Regeneration, Community and Culture directorate. The source of these savings will be worked upon as a priority and reported in the first monitoring round for 2012/2013.

(b)   The Council approved the general fund gross, income and net revenue estimates as summarised in Table 9 and detailed in Appendix 2 in the sum of £333.440 million.

(c)   The Council noted the Kent Police Authority precept requirement.

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

(e)   The Council noted the parish council precept requirements of £359,032 as detailed at Appendix 6 of this report.

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

(g)   The Council approved the basic rate of council tax at band D for 2012/2013, before adding the police, fire and parish precepts, at £1,119.15.

(h)   The Council agreed the following recommendations from Employment Matters Committee as a consequence of agreeing budget proposals:

(1)  Increments are frozen for the financial years 2012/13 and 2013/14 with a review of the pay and grading structure being developed and consulted upon during this time.

(2)  Incremental progression linked to competency levels/qualifications achieved should be retained for the following:

·Social Workers covered by the Children’s Care Career Grade Scheme,

·The progression from B1 grade to B2 grade for Care Managers in Adult Social Care who achieve the Post Qualifying 1 award; and

·Soulbury staff eligible for SPA increments (Structured Professional Assessment).

(i)     The Council noted the success of the Assistant Director, Organisational Services, in achieving a collective agreement with the Trades Unions and agreed that employees on spinal column point 25 or below (or equivalent) and therefore earning £21,519 or less (pro rata for part time employees), will receive a once off payment of £250 with their April pay in 2012 and 2013.

(j)      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 2012' as set out in Appendix 8 to the report with amendments as circulated in the addendum paper and that the fee for the meals delivery service remain at £3.90.

(k)   The Council approved the following with regard to the Housing Revenue Account:

(1) The budget proposed as summarised at Appendix 3 to the report;

(2) The proposed increase in rents asset out at Appendix 4 to the report;

(3) The proposed service charges as set out at Appendix 5 to the report; and

(4) That garage rents are increased by 2.5% from 1 April 2012.

(l)      The Council adopted the formal resolution for the council tax requirement and schedule of council tax charges for 2012/2013 as set out in Appendix 7 to this report and to incorporate any amendments arising from the meeting.

(m) The Council noted the findings of the Diversity Impact Assessments as set out in the report and at Appendix 9, and the proposal to continue, where necessary, to report through quarterly monitoring any further unidentified or unintentional impact.

(n)   The Council agreed the transfer of Housing Services to the Regeneration, Community and Culture directorate and approved the delegation to the Chief Finance Officer, in consultation with the Finance Portfolio Holder to adjust budgets in respect of the transfer.

(o)   The Council approved the appointment of Mr Perry Holmes as the interim Monitoring Officer and Assistant Director for Corporate Services for 4 months commencing 1 March 2012.