Agenda item

This report sets out the final proposals for the approval of the capital and revenue budgets, rent increases and council tax for 2014/2015 as proposed by Cabinet.

Discussion:

 

This report presented proposals for the capital and revenue budgets and the housing revenue account (HRA) for 2014/2015.

 

The Cabinet had considered initial budget proposals on 26 November 2013, which had been developed in accordance with the principles set out in the Medium Term Financial Plan (MTFP) 2013/2016. 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 11 February 2014. It was noted that the report had incorporated the implications of the Final Settlement, which had been announced on 5 February 2014.

 

The report set out the Council’s requirements under equality legislation and a Diversity Impact Assessment, that aggregated the impact for each of the services affected by the proposed budget changes, was attached at Appendix 9 to the report. This overarching form identified five services where there may be a potential adverse impact on some protected characteristic groups and Diversity Impact Assessments for these services were attached at Appendices 9A to 9C of the report. It was noted that to mitigate against any unintentional and unidentified impact, monitoring would continue and if necessary be reported through quarterly monitoring.

 

A revised Appendix 7 to the report had been circulated to Members in Supplementary Agenda No.1, which set out a corrected figure at 3 (a) of the appendix. An addendum report had been tabled at the meeting in Supplementary Agenda No.2 which provided details of the views and recommendations of the Employment Matters Committee, which considered a pay claim from the trade unions on 18February 2014.

 

Councillor Jarrett, Portfolio Holder for Finance and Deputy Leader, supported by Councillor Rodney Chambers, Leader of the Council, proposed the recommendations as set out in the main report, with the exception of recommendations 23.1, 23.2, 23.3 and 23.9 which were revised to reflect the following additions/variations:

 

i)          That the Council approve the recommendation of Employment Matters Committee on 6 February 2014 to adopt option 4 of the revised Pay and Grade structures, subject to the pause on the implementation of the pay progression element, as agreed by the Employment Matters Committee on 18 February 2014. That the Council agree that the pay claim as submitted by the Trade Unions be rejected on the basis that it represented £4 million recurring cost that the Council did not have.

 

ii)         the following measures to remove the £81,000 deficit, as set out in Table 10 of the report:

 

Reduction in Trade Union Facilities budget	£20,000
Efficiencies in the co-location of Integrated Children’s Teams	£61,000

 

iii)            Additions to the Capital programme funded from prudential borrowing and additional revenue identified as:

·        New Homes Bonus Returned grant £120,000;

·        Additional business rates income £450,000; and

·        2013/2014 Collection Fund Surplus of £800,000.

 

Members’ priorities	£200,000	Additional revenue
Play areas	£200,000	Additional revenue *
Potholes	£450,000	Additional revenue *
Highway Improvements	£2,000,000	Prudential Borrowing*

*Expenditure on this will be in consultation with the relevant Portfolio Holder.

 

iv)                the following non-recurring additions to the Revenue Budget funded  from the Redundancy Reserve, and additional revenue (New Homes Bonus, NNDR and Collection Fund Surplus):

 

Pay and Grade	£500,000	Redundancy Reserve   This is to incorporate an additional £400,000 to be paid in the form of one-off payments to staff on the signing of new terms and conditions. An additional £100,000 is to meet notice period requirements relating to the outgoing pay and grade scheme.
Visit of HMS Lancaster	£15,000	Additional revenue
Apprenticeships on the Medway Queen	£30,000	Additional revenue
Completion of allotments work at Chapel Road, Hempstead	£20,000	Additional revenue
To fund spend to save sponsorship work	£45,000	Additional revenue
Promotion of Dickens	£60,000	Additional revenue
Thames Estuary Airport campaign	£100,000	Additional revenue
Doubling of free Christmas parking for 5 years at £50,000 per annum	£50,000   £250,000 over 5 years	Additional revenue*
Extension of the freeze on increases to car parking charges to 2017	£0
Extension of Housing Allocations qualification period to 5 years	£0
Removal of following crematorium charges: ·     Interment and attendance fee: 1 month – 5 years ·     Cremation fee for a child over 1 month to under 5 years ·     Cremation fee for Stillborn – 1 month.	£0

      *Expenditure on this will be in consultation with the relevant Portfolio Holder.

 

(v)                Funding for these additions are:

 

Revenue Budget (Regeneration, Community and Culture) – in respect to the prudential borrowing	£250,000
Public Health Grant	£60,000
Council Tax collection fund surplus	£800,000
Additional Business Rates	£450,000
New Homes Bonus Returned Grant	£120,000
Prudential Borrowing	£2,000,000
Redundancy Reserve	£500,000

 

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

 

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

 

Against – Councillors Bowler, Colman, Cooper, Craven,Gilry, Christine Godwin, Paul Godwin, Griffiths,Harriott, Hubbard, Juby, Kearney, Maple, Osborne, Price, Shaw, Stamp (17)

 

Abstain – (0)

 

Decisions:

 

(a)               The Council approved the recommendation of Employment Matters Committee on 6 February 2014 to adopt option 4 of the revised Pay and Grade structures, subject to the pause on the implementation of the pay progression element, as agreed by the Employment Matters Committee on 18 February 2014.

 

(b)               The Council agreed that the pay claim as submitted by the Trade Unions be rejected on the basis that it represented £4 million recurring cost that the Council did not have.

 

(c)               The Council approved the capital budget proposals as set out in Appendix 1 to the report with the following additions funded from prudential borrowing and additional revenue identified as:

·        New Homes Bonus Returned grant £120,000;

·        Additional business rates income £450,000; and

·        2013/2014 Collection Fund Surplus of £800,000

 

Members’ priorities	£200,000	Additional revenue
Play areas	£200,000	Additional revenue*
Potholes	£450,000	Additional revenue*
Highway Improvements	£2,000,000	Prudential Borrowing*

*Expenditure on this will be in consultation with the relevant Portfolio Holder.

 

(d)       The Council approved the general fund gross, income and net revenue estimates as summarised in Table 10 in the report and detailed in Appendix 2 to the report in the sum of £331.431 million subject to:

 

i)        the following measures to remove the £81,000 deficit, as set out in Table 10 of the report:

 

Reduction in Trade Union Facilities budget	£20,000
Efficiencies in the co-location of Integrated Children’s Teams	£61,000

 

ii)      the following non-recurring additions funded from the Redundancy Reserve, and additional revenue (New Homes Bonus, NNDR and Collection Fund Surplus):

 

Pay and Grade	£500,000	Redundancy Reserve   This is to incorporate an additional £400,000 to be paid in the form of one-off payments to staff on the signing of new terms and conditions. An additional £100,000 is to meet notice period requirements relating to the outgoing pay and grade scheme.
Visit of HMS Lancaster	£15,000	Additional revenue
Apprenticeships on the Medway Queen	£30,000	Additional revenue
Completion of allotments work at Chapel Road, Hempstead	£20,000	Additional revenue
To fund spend to save sponsorship work	£45,000	Additional revenue
Promotion of Dickens	£60,000	Additional revenue
Thames Estuary Airport campaign	£100,000	Additional revenue
Doubling of free Christmas parking for 5 years at £50,000 per annum	£50,000   £250,000 over 5 years	Additional revenue*
Extension of the freeze on increases to car parking charges to 2017	£0
Extension of Housing Allocations qualification period to 5 years	£0
Removal of following crematorium charges: ·     Interment and attendance fee: 1 month – 5 years ·     Cremation fee for a child over 1 month to under 5 years ·     Cremation fee for Stillborn – 1 month.	£0

*Expenditure on this will be in consultation with the relevant Portfolio Holder.

 

(iii)The recurring addition for the extension of free swimming to under 16 year olds, funded from efficiencies of £60,000 in Public Health.

 

(e)               Funding for these additions was identified as:

 

Revenue Budget (Regeneration, Community and Culture) – in respect to the prudential borrowing	£250,000
Public Health Grant	£60,000
Council Tax collection fund surplus	£800,000
Additional Business Rates	£450,000
New Homes Bonus Returned Grant	£120,000
Prudential Borrowing	£2,000,000
Redundancy Reserve	£500,000

 

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

 

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

 

(h)               The Council noted the parish council precept requirements of £356,602 as detailed at Appendix 6 of the report.

 

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

 

(j)                  The Council approved the basic rate of council tax at band D for 2014/15, before adding the police, fire and parish precepts, at £1,164.24.

 

(k)               The Council approved the fees and charges, as recommended by Cabinet and set out in the booklet 'Medway Council - Fees and Charges April 2014' as set out in Appendix 8 subject to the following revisions, which are to be funded from existing budgets:

 

Bereavement Services       

·        Abolish the interment and attendance fee: 1 month – 5 years

·        Abolish cremation fee for a child over 1 month to under 5 years

·        Abolish the cremation fee for Stillborn – 1 month

 

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

·        The budget proposed as summarised at Appendix 3 of the report;

·        The proposed increase in rents as set out at Appendix 4 of the report;

·        The proposed service charges as set out at Appendix 5 of the report.

 

(m)      The Council adopted the formal resolution for the council tax requirement and schedule of council tax charges for 2014/15 as set out in Appendix 7 to the report and incorporated the amendments made above, such that paragraph 3(a), Appendix 7 becomes £528,693,134 and paragraph 3(b), Appendix 7, becomes £437,051,381; all other parts of the resolution remain as set out in Appendix 7 to the report.

 

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