Agenda item

This report sets out the final proposals for the approval of the capital and revenue budgets, rent increases and council tax for 2013/2014 as proposed by Cabinet.

Discussion: 

This report presented proposals for the capital and revenue budgets and the housing revenue account (HRA) for 2013/2014. The Cabinet had considered initial budget proposals on 27 November 2012, which had been developed in accordance with the principles set out in the Medium Term Financial Plan (MTFP) 2013/2016.

Announcements subsequent to the MTFP amended several of the key assumptions underpinning the MTFP, particularly for council tax, Local Authority Central Spend Equivalent Grant (LACSEG), Early Intervention Grant (EIG) and the baseline figures for the re-distribution of business rates (NNDR). These resulted in a marked deterioration of the position and the draft budget considered by Cabinet on 27 November 2012 showed an £11.950 million gap. The report detailed how the draft budget had been constructed, in light of the final financial settlement which had been announced on 4 February 2013. 

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.

Appendix 2 to the report had been circulated to Members in Supplementary Agenda No.1. An addendum report had been tabled at the meeting in Supplementary Agenda No.2 which provided details of the outcome of discussions at the Employment Matters Committee on 19 February 2013 regarding pay negotiations, further advice on the schedule of precept dates and clarification on the title of Kent Police.

Councillor Jarrett, Portfolio Holder for Finance and Deputy Leader, stated that the unspecified savings in table 10 of the report (£589,000) would be met from areas of service supported by the Early Intervention Grant (EIG) (£400,000) and overheads charged to Public Health (£303,000), which would leave headroom of £114,000, to which £16,000 would be added from a surplus on the levies budget.

Councillor Jarrett, Portfolio Holder for Finance and Deputy Leader, during his budget speech, set out a number of additional initiatives and sources of funding:

SEN Provision (Disposal of Inspiration Centre)

South Medway Development Fund (Reserves)

Disabled Facilities Grants (Public Health reserve)         

Strood Regeneration (Reserves)

Children’s Social Care (Reserves)

Sporting Legacy (Public Health reserve)

Highways and pavements (Treasury Management)

Staff payment (Severance reserve)

Tourism bus (headroom of £130,000 set out above)

Music festival (headroom of £130,000 set out above)

River festival (headroom of £130,000 set out above)

Armed forces day (headroom of £130,000 set out above)

Transitional payment to Medway Youth Trust (Reserves)

Sport and health initiatives (Public Health Grant).

Councillor Jarrett, Portfolio Holder for Finance and Deputy Leader, supported by Councillor Rodney Chambers, Leader, proposed the recommendations in the main report, with the exception of recommendations 22.2, 22.5, 22.12 and 22.13 which were set out in the addendum report and the following written additions to the capital and revenue budgets:

During subsequent debate, the Portfolio Holder for Finance and Deputy Leader confirmed that the following parts of the additions should read as follows:

The Chief Executive advised that the revised figures were correct and that the Council could proceed to vote on the proposed budget for 2013/2014. This was confirmed by the Monitoring Officer.

In accordance with rule 11.4 of the Council Rules at the request of six Members, a recorded vote on the proposals was requested.

With reference to the corrections required to the budget additions tabled at the meeting and moved by Councillor Jarrett, Portfolio Holder for Finance and Deputy Leader, Councillor Maple, Leader of the Labour Group, stated that the Labour Group would not participate in the recorded vote.

For – Councillors Avey, Baker, Brake, Bright, Carr, Mrs Diane Chambers, Rodney Chambers, Chitty, Doe, Etheridge, Filmer, Griffin, Adrian Gulvin, Pat Gulvin, the Worshipful the Mayor (Councillor Hewett), Hicks, the Deputy Mayor (Councillor Iles), Irvine, Jarrett, Kemp, Mackness, Maisey, Mason, O’Brien, Purdy, Rodberg, Royle, Smith, Tolhurst, Turpin, Watson, Wicks and Wildey (33)

Against – Councillors Cooper, Juby, Kearney and Stamp (4)

Abstain – (0)

Decision:

(a)   The Council approved the capital budget proposals as set out in Appendix 1 to the report with the following additions:

(b)   The Council approved the general fund gross, income and net revenue estimates as summarised in Table 11 in the report and detailed in Appendix 2 to the report in the sum of £348.511 million with the following additions:

(c)   The Council noted the Police and Crime Commissioner for Kent precept requirement.

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

(e)   The Council noted the parish council precept requirements of £348,278 as detailed in Appendix 6 to the report.

(f)     The Council agreed to delegate authority to the Chief Finance Officer to agree the final schedule of precept installment dates.

(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 £1,141.47.

(h)   The Council approved the earmarking of reserves as set out at section 12 of the report including the creation of a South Medway Development Fund of £5 million created from the revenue balance currently at £10 million.

(i)     The Council approved, as part of the budget proposals, fees and charges, as recommended by Cabinet and set out in the booklet 'Medway Council - Fees and Charges April 2013' as set out in Appendix 8 to the report.

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

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

(ii)              The proposed increase in rents as set out at Appendix 4 to the report;

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

(iv)             That garage rents are increased by 2.6% from 1 April 2013.

(k)   The Council adopted the formal resolution for the council tax requirement and schedule of council tax charges for 2013/2014 as set out in Appendix 7 to this report and incorporated the amendments made above, such that paragraph 3(a), Appendix 7 becomes £548,152,278 and paragraph 3(b), Appendix 7, becomes 460,239,154; all other parts of the resolution remain as set out in Appendix 7 to the report.

(l)      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.

(m) The Council noted the discussions so far and the consultations responses in respect of the proposals to come out of the national agreements for pay and terms and conditions.

(n)   The Council agreed to the collective agreement attached at Appendix 10B to the addendum report, on the basis that agreement has been reached with the majority of trade unions to come out of the national agreement for all non school staff apart from Soulbury staff.