Agenda item

To consider the following referrals from Cabinet:

 

7.1 CA/017/16     7.2 CA/018/16     7.3 CA/021/16

9 February 2016     9 February 2016     9 February 2016

Budget and Council Tax Setting     Senior Officer Pay Policy     Corporate Plan 2015-2020

 

Councillor Williams, duly seconded and

 

Resolved

 

That the following be approved:

 

 

9 February 2016

                                                                                     

7.1CA/017/16             BUDGET AND COUNCIL TAX SETTING

 

 

General Fund Revenue Estimate

 

a) a Dacorum Borough Council General Fund Council Tax requirement of £10.218m, and of £10.908m for the combined Borough Council and Parish Councils’ requirement for 2016/17;

 

b) an increase of 2.78% in Council Tax for Dacorum Borough Council;

 

c) the base estimates for 2016/17, as shown in Supplementary Appendix A1,^* and the indicative budget forecasts for 2016/17 – 2019-20, as shown in Supplementary Appendix A2;

 

d) the forecast balances of the Revenue Reserves as shown in the Supplementary Appendix J, and approve paragraphs 10-20 of the Cabinet report as the updated Reserves Strategy.

 

e) approve increases in Fees and Charges for 2016/17 as set out in Appendices C3, D3, and E3

 

f)    approve and adopt the Treasury Management Strategy for 2016/17, attached at Appendix K;

 

g)   approve and adopt the Treasury Management Principles and Practices for 2016/17, attached at Appendix L;

 

h)   note that this budget paper, when approved by Council, will form part of the Medium Term Financial Strategy

 

Four Year Settlement

 

i)       delegate approval to the Corporate Director (Finance & Operations) in consultation with Budget Review Group to decide on whether to accept Government’s offer of a four-year finance settlement.

 

 

 

 

Capital Programme

 

j)       approve the revised Capital Programme for 2015/16, and for 2016/17 to 2020/21, as detailed in Appendix I;

 

k)     approve the financing proposals in Appendix I subject to an annual review of the financing options by the Corporate Director (Finance & Operations), in consultation with the Portfolio Holder for Finance and Resources, during the preparation of the Statement of Accounts.

 

Housing Revenue Account (HRA)

 

l)     reduce dwelling rents for non-sheltered housing units by 1%, and increase rents for sheltered housing units by CPI plus 1%, resulting in an average rent of £105.52 per week (based on 52 weeks)

 

m)   the updated HRA estimate for 2016/17 as shown in Supplementary Appendix F to the Extraordinary Cabinet budget report.

 

 

Terms & Conditions

 

n)    approve the continued application of a living wage supplement for all affected employees, in accordance with the rates of the Living Wage Foundation, for 2016/17 (to be reviewed annually thereafter).

 

 

 

Statement by Chief Finance Officer

 

o)    approve the statement by the Chief Finance Officer regarding the robustness of the budget estimates and level of reserves as set out in Appendix M.

 

 

Key points of discussion:

 

Councillor Williams introduced the report and moved the motion to debate.

 

Councillor Tindall congratulated officers on meeting targets. He advised the meeting that his party would not be producing an ‘alternative budget.’ He drew attention to the 1% decrease in rent which may adversely affect those in council houses and the monies that the Council had received from central government.

He concluded that the Liberal Democrats will vote against the budget as it will result in the maximum being squeezed out of residents and the party cannot support it

Councillor C Wyatt-Lowe said she would rather the Chancellor ‘tinker’ with budgets to address legitimate concerns instead of ignoring them. Councillor C Wyatt-Lowe said this was a sign of strength and not a weakness. The Conservative group has withstood pressures and managed to balance the books, as a group they stand united and she commended the budget to Council.

 

Councillor Marshall said Councillor Tindall’s comments were well balanced until the end. It seems that voting against the budget is politically motivated when the Council Tax increase is very modest. Finances will be tighter and more difficult in the future and this is a statement of fact not a political comment. It is vital that savings are made and income generated in order to cushion the impact in the future.

 

Councillor Mrs Griffiths highlighted that the 1% decrease in rent and council house building will ensure the Council is far better off than under the previous administration. The Council is no longer sending £20 million to central government to distribute across the country. This has ensured that repairs have been made up to date throughout the housing stock and the new build programme has not stopped.

 

Councillor Fisher said she was puzzled by the fees and charges and assumed this was based on an ‘every little helps’ approach. Some charges have a greater impact on residents than others. For example, to get rid of rats, there is now a 12% increase in that charge and if you are a Dacorum card holder then this increase shoots up to 138%. It seems the poor are hit hardest. Councillor Fisher said she hoped that these charges were not counter-productive and hope that they are monitored in the future.

 

Councillor Williams said these fees and charges were monitored and said it was appropriate to recover these costs from residents. When the household waste sites were moved to a five day opening, people thought there would be an increase in fly-tipping, but this was not the case. Councillor Williams thanked Councillor Tindall for his comments and pointed out that in 20 years, it was the first time that central government had taken any notice of the feedback given. The Council offer good services which needs funding and the modest increase in Council Tax has made significant savings and protected front line services. The £204,000 from central government that Councillor Tindall has quoted will be saved and not spent as Councillor Tindall wishes. It will be saved for any future problems that arise. The Council was criticised for increasing Council Tax a few years ago and it was unpopular but has generated money into the reserves. The verge hardening programme is funded through the sale of garages. The 1% rent decrease is not helpful but we should be proud to let properties at social rents. The Council is £16-17 million better off through savings and repairs. This budget continues to build on the good work already done.

 

In line with standing orders, the names of the Members voting for and against the motion were recorded as follows:

 

Names of those voting

 

For: G Adshead, Anderson, Ashbourn, Banks, Barnes, Mrs Bassadone, Bateman, Bhinder, Birnie, Brown, Chapman, Clark, D Collins, Douris, Elliot, Fantham, Mrs Griffiths, Guest, Harden, P Hearn, S Hearn, Hicks, Howard, Imarni, Maddern, Mahmood, Marshall, Matthews, McLean (Deputy Mayor), Mills, Peter, Riddick, Ritchie, Silwal, G Sutton, R Sutton, Taylor, Timmis, Williams, Whitman, C Wyatt-Lowe, W Wyatt- Lowe  (42)

 

Against:  Fethney, Fisher, Ransley, Tindall (4); and

 

Abstained: Adeleke (Mayor), (1).

 

 

The Mayor declared the motion to be carried

 

 

7.2 CA/018/16            SENIOR OFFICER PAY POLICY

 

Resolved: 

 

(1)   The Pay Policy for 2016/17 as set out in appendix 1 to the Cabinet report be approved.

 

(2)   That any amendments to the Pay Policy throughout the financial year 2016/2017 which are required as a result of legislative changes can be approved by the Chief Executive in conjunction with the Council’s Monitoring Officer.

 

 

7.3 CA/021/16CORPORATE PLAN 2015-2020

 

Resolved:

 

1. That the Corporate Plan 2015 to 2020 be adopted