Agenda item

To consider the recommendations made by Executive, at their meeting held on 8 February 2018, in relation to:

 

(a)     the Financial Strategy 2018/19 to 2022/23 (including the Council’s revenue budget proposals for 2018/19)

(b)     the Capital Strategy 2018/19 to 2022/23

(b)     the Treasury Management Strategy Statement and Prudential Indicators 2018/19 to 2022/23.

 

These recommendations are set out in the attached report and will be moved by the Council Leader.

 

Note:

The original budget reports to Executive, on which their recommendations are based, were circulated to all Members and can be found on the Council’s website, here:

 

http://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=10196&Ver=4

 

Councillor Waller moved, and Councillor Gillies seconded, the motions relating to the following proposals

 

(a)     the Financial Strategy 2018/19 to 2022/23 (including the Council’s revenue budget proposals for 2018/19)

(b)     the Capital Strategy 2018/19 to 2022/23

(c)     the Treasury Management Strategy Statement and Prudential Indicators 2018/19 to 2022/23.

 

Capital Strategy

Executive recommends that Council:

 

(i)           Agree to the revised capital programme of £314.611m that reflects a net overall increase of £54.767m (as set out in paragraph 81 table 10 and in Annex B). Key elements of this include;

 

a.    Extension of prudential borrowing funded Rolling Programme schemes totalling £8.270m as set out in table 3 and summarised in table 10;

 

b.   New schemes totalling £8.506m including an increase in prudential borrowing of £2.356m as set out in table 4 and summarised in table 10;

 

c.   Extension of externally funded Rolling Programme schemes totalling £5.380m as set out in table 5 and summarised in table 10;

 

d.   An increase in HRA funded schemes totalling £32.611m funded from a combination HRA balances/Right to Buy receipts as set out in table 6 and summarised in table 10

 

(ii)      Approve the full restated programme as summarised in Annex A totalling £314.611m covering financial years 2018/19 to 2022/23 as set out in table 11 and Annex A

 

Reason:     To set a balanced capital programme as required by the Local Government Act 2003.

 

Revenue Budget

Executive recommends;

 

(i)      That the £46k cut to the OAP Garden Scheme (HRA4) in the Housing Revenue Account (HRA) savings proposals at Annex 6 to the report be deleted, to be replaced by a balancing increase to the Housing Repairs savings (HRA1) through improved IT systems to avoid wasted appointments.

 

(ii)          That subject to the amendment above, Council approve the budget proposals outlined in the Financial Strategy report and in particular;

 

a)   The net revenue expenditure requirement of £121.877m

 

b)   A council tax requirement of £85.898m

 

c)   The revenue growth proposals as outlined in the body of the report

 

d)   The 2018/19 revenue savings proposals as outlined in annex 2

 

e)   The fees and charges proposals as outlined in annex 4

 

f)    The Housing Revenue Account (HRA) budget set out in annex 5 and the HRA savings proposals set out in annex 6

 

g)   The dedicated schools grant proposals outlined from paragraph 162

 

h)   The use of £373k New Homes Bonus funding to fund one off investment, as outlined in paragraph 54

 

i)     An £800k increase in the contingency budget to fund adult social care, in particular winter pressures and delayed transfers of care, subject to a further report to Executive

 

j)     The receipt of an additional £457k adult social care grant announced in the final settlement on 6 February, to be considered alongside i) above and subject to a further report to Executive

 

k)   The release of one off funding in the transport reserve of £450k to fund ongoing expenditure

 

l)     The use of £38k from the £156k funding from the Leeds City Region Business Rates Pool (budget report February 17) to support the city’s cultural sector by progressing the development and promotion of a clearly defined Cultural Strategy with the Cultural Leaders Group, as set out in a recent Scrutiny report to Executive.

 

(iii)     That Council note that the effect of approving the income and expenditure proposals included in the recommendations would result in a 3.49% increase in the City of York Council element of the council tax, 1.5% of which would relate to the social care precept.

 

Reason: To ensure a legally balanced budget is set.

 

Treasury Management Strategy Statement and PrudentialIndicators

 

Executive recommends that Council approve;

             i.        The proposed Treasury Management Strategy for 2018/19 including the annual investment strategy and the minimum revenue provision policy statement;

 

            ii.        The prudential indicators for 2018/19 to 2022/23 in the main body of the report;

 

 

           iii.        The specified and non-specified investments schedule (annex B)

 

          iv.        The scheme of delegation and the role of the section 151 officer (annex D)

 

Reason: To enable the continued effective operation of the treasury management function and ensure that all Council borrowing is prudent, affordable and sustainable.

 

Labour Amendment

 

Councillor Looker then moved and Cllr Neil Barnes seconded an amendment to the Revenue Budget  recommendations on behalf of the Labour Group as follows:

 

Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 39 of page 11 of Council papers refers):

 

In (ii), after ‘amendment above’, insert the words ‘and the further amendments outlined below’

 

In (ii) sub paragraph (a) delete ‘£121.877m’ and replace with ‘£122.707m’

 

In sub paragraph (b) delete ‘£85.898m’ and replace with ‘£86.728m’

 

In sub paragraph (c) add at the end of the sentence ‘subject to the following amendments;

 

·        An additional £100k investment in the Falls Service aspect of Adult Social Care

 

·        An additional £50k investment in improving dementia diagnosis and working towards York being a dementia friendly city

 

·        An additional £100k investment to tackle the Attainment Gap in education

 

·        An additional £178k investment in young person-centred emotional health and wellbeing support, including greater mental health support in schools

 

·        An additional £30k investment in Citizens Advice York Service to support Financial Inclusion objectives and offer an expanded service

 

·        An additional £200k investment in an Inclusive Growth Fund to support York’s local economy and build community wealth

 

·        An additional £50k investment in Youth Provision’.

 

In sub paragraph (d) add at the end of the sentence ‘subject to the following amendments;

 

·        50% Reversal of CEC6: Home to School Transport £103k

 

·        New saving: Savings on Member Allowances, through efficiencies in the number of Scrutiny Committees, and reduced budget for Executive Member allowances through a streamlined Executive £40k’.

 

In sub paragraph (e) add at the end of the sentence ‘subject to the following amendments;

 

·        Halving the rate for bulky waste collection from £44 to £22.

 

In order to decrease fees and charges by £59k’.

 

At the end of paragraph 39 (ii), add an additional sub paragraph; m. The use of £100k from the Venture Fund to fund a feasibility study for an energy provision company

 

In paragraph 39 (iii) third line, delete ‘3.49%’ and replace with ‘4.49%’.

 

Following debate, and in accordance with the required legal regulations, a named vote was then taken in relation to the Labour amendment relating to the setting of the budget, with the following result:

 

For	Against	Abstain
Cllr Neil Barnes	Cllr Aspden	Cllr Craghill
Cllr Stuart Barnes	Cllr Ayre	Cllr D’Agorne
Cllr Cannon	Cllr Carr	Cllr Boyce
Cllr Crawshaw	Cllr Cullwick
Cllr Derbyshire	Cllr Cuthbertson
Cllr Flinders	Cllr Dew
Cllr Funnell	Cllr Doughty
Cllr Kramm	Cllr Douglas
Cllr Looker	Cllr Fenton
Cllr Danny Myers	Cllr Galvin
Cllr Pavlovic	Cllr Gates
Cllr Shepherd	Cllr Gillies
Cllr Dave Taylor	Cllr Hunter
Cllr Kallum Taylor	Cllr Jackson
Cllr Wells	Cllr Lisle
Cllr Williams	Cllr Mason
	Cllr Mercer
	Cllr Keith Myers
	Cllr Orrell
	Cllr Rawlings
	Cllr Reid
	Cllr Richardson
	Cllr Runciman
	Cllr Steward
	Cllr Waller
	Cllr Warters
16	26	3

 

The Labour amendment was declared LOST.

 

Green Amendment

 

Councillor D’Agorne then moved, and Councillor Taylor seconded, an amendment to the Capital Strategy and Revenue Budget recommendations, on behalf of the Green Group.

 

Capital Strategy

 

In relation to the recommendations on the Capital Strategy (paragraph 38 of page 10 of Council papers refers):

 

In paragraph 38 (i), first line delete ‘£314.611m’ and replace with ‘£316.611m’

 

In paragraph 38 (i), second line delete ‘£54.767m’ and replace with ‘£56.767m’

 

Under paragraph 38 (i), insert new sub paragraph:

 

(e) Include a new scheme to invest £2m for CPO of long term void premises to bring them back into use, funded by prudential borrowing.

 

In paragraph 38 (ii), second line delete ‘£314.611m’ and replace with ‘£316.611m’

 

 

Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 39 of page 11 of Council papers refers):

 

In (ii), after ‘amendment above’, insert the words ‘and the further amendments outlined below’

 

In (ii) sub paragraph (a) delete ‘£121.877m’ and replace with ‘£123.952m’

 

In sub paragraph (b) delete ‘£85.898m’ and replace with ‘£87.973m’

 

In sub paragraph (c) add at the end of the sentence ‘subject to the following amendments;

 

·        An additional £120k to support the revenue cost of additional prudential borrowing (£2,000k capital amendment, funded from prudential borrowing)

 

·        An additional £200k investment in the extension of falls-prevention service

 

·        An additional £59k investment in locking and unlocking of all municipal park gates

 

·        An additional £90k investment in 3 x FTE gardener posts based at the parks Rowntree, West Bank, Hull Road, Glen and Clarence Gardens

                                          

·        An additional £80k investment in 2 x FTE park rangers

 

·         An additional £100k investment in the Financial Assistance Scheme/Council Tax Discretionary Reduction Scheme              

 

·        An additional £44k investment in an Outreach Worker to promote the Financial Assistance Fund

 

·        A £3k investment in semi-permanent poster hoardings around defunct fountain on Parliament St.

                                                                       

·        An additional £18k investment in Citizens Advice Bureau - Debt advice        

·        An additional £12k investment to increase drop in sessions from 2 to 4                       

·        An additional £200k investment to reduce the cap on Council Tax Support by 5%                       

 

·        A £52k investment to continue free access to Yorkshire Museum Trust for York residents on lower incomes     

             

·        An additional £44k investment to fund 1 FTE Air Pollution Reduction Officer in the Transport Team

 

·        An additional £44k to fund 1 FTE External Funding Officer                                       

·        An additional £44k to fund 1 FTE Energy Poverty and Affordable Warmth Officer in the Housing Team                                                 

·        An additional £100k to reinvest in subsidised bus services                                            

·        An additional £100k investment in surface water drainage maintenance and repairs to reduce flooding                                                                                                                                   

·        An additional £25k to undertake a feasibility study on a move to ANPR enforcement and online payments for ResPark permits

 

·        An additional £450k to maintain the quality of adult social care under future pressures’.

 

In sub paragraph (d) add at the end of the sentence ‘subject to the following amendments;

 

·        Reversal of HHASC3: Sexual Health Outreach £22k

·        Reversal of HHASC5; Substance mis-use post £16k

·        Reversal of HHASC8: Wellness Service £50k

·        Reversal of HHASC19: Small Day Services £100k

·        Reversal of HHASC25: Sheltered housing with extra care £23k’.

 

In sub paragraph (e) add at the end of the sentence ‘subject to the following amendments;

 

·        10p per hour further increase on non- resident city centre parking charges to incentivise the use of park and ride  (£40k additional income)

 

·        Reduce standard ResPark fee to £90 per annum (cost £40k)

 

·        Increase second car parking permit to £200pa (£10k additional income)

 

·        Re-instate discount for vehicle emission bands  A-C (cost £30k)

 

·        Halving the rate for bulky waste collection from £44 to £22 (cost £59k)

 

In order to decrease fees and charges by £79k.’

 

In paragraph 39 (iii) third line, delete ‘3.49%’ and replace with ‘5.99%’.

 

In paragraph 39 (iii) fourth line, delete ‘1.5%’ and replace with ‘3%’

 

Following debate, the required named vote in accordance with legal regulations was taken on the Green Group amendment, with the following result:

 

For	Against	Abstain
Cllr Craghill	Cllr Aspden	Cllr Boyce
Cllr D’Agorne	Cllr Ayre
Cllr Kramm	Cllr Neil Barnes
Cllr Dave Taylor	Cllr Stuart Barnes
	Cllr Cannon
	Cllr Carr
	Cllr Crawshaw
	Cllr Cullwick
	Cllr Cuthbertson
	Cllr Derbyshire
	Cllr Dew
	Cllr Doughty
	Cllr Douglas
	Cllr Fenton
	Cllr Flinders
	Cllr Funnell
	Cllr Galvin
	Cllr Gates
	Cllr Gillies
	Cllr Hunter
	Cllr Jackson
	Cllr Lisle
	Cllr Looker
	Cllr Mason
	Cllr Mercer
	Cllr Danny Myers
	Cllr Keith Myers
	Cllr Orrell
	Cllr Pavlovic
	Cllr Rawlings
	Cllr Reid
	Cllr Richardson
	Cllr Runciman
	Cllr Shepherd
	Cllr Steward
	Cllr Kallum Taylor
	Cllr Waller
	Cllr Warters
	Cllr Wells
	Cllr Williams
4	40	1

 

The Green amendment was declared LOST.

 

The required named vote, in accordance with legal regulations, was then taken on the original motion, with the following result:

 

For	Against	Abstained
Cllr Aspden	Cllr Neil Barnes	Cllr Boyce
Cllr Ayre	Cllr Stuart Barnes
Cllr Carr	Cllr Cannon
Cllr Cullwick	Cllr Craghill
Cllr Cuthbertson	Cllr Crawshaw
Cllr Dew	Cllr D’Agorne
Cllr Doughty	Cllr Derbyshire
Cllr Douglas	Cllr Flinders
Cllr Fenton	Cllr Funnell
Cllr Galvin	Cllr Kramm
Cllr Gates	Cllr Looker
Cllr Gillies	Cllr Danny Myers
Cllr Hunter	Cllr Pavlovic
Cllr Jackson	Cllr Shepherd
Cllr Lisle	Cllr Dave Taylor
Cllr Mason	Cllr Kallum Tayor
Cllr Mercer	Cllr Warter
Cllr Keith Myers	Cllr Wells
Cllr Orrell	Cllr Williams
Cllr Rawlings
Cllr Reid
Cllr Richardson
Cllr Runciman
Cllr Steward
Cllr Waller
25	19	1

 

The original motion was then declared CARRIED and it was

 

Resolved: That the Executive recommendations in respect of the Capital Strategy, Financial Strategy and Treasury Management Strategy Statement and Prudential Indicators be approved. ¹