Agenda item
Recommendations of Executive on the Council's Financial Strategy 2022/23 to 2026/27, Capital Budget 2022/23 to 2026/27, Capital Financing and Investment Strategy and the Treasury Management Strategy Statement and Prudential Indicators for 2022/23 to 2026/27
- Meeting of Budget Council, Council, Thursday, 17 February 2022 6.30 pm (Item 59.)
- View the declarations of interest for item 59.
To consider the recommendations made by the Executive, at their meeting on 7 February 2022, in relation to:
i) The Financial Strategy 2022/23 to 2026/27
ii) The Capital Budget 2022/23 to 2026/27
iii) The Capital Financing and Investment Strategy
iv) The Treasury Management Strategy Statement and Prudential Indicators 2022/23 to 2026/27.
These recommendations are set out in the attached report and will be moved by the Executive Leader.
Note:
The original budget reports to Executive, on which their recommendations are based, will be circulated to all Members with this agenda and can be found on the council’s website, here:
https://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=12800&Ver=4
Minutes:
Cllr Aspden moved, and Cllr D’Agorne seconded, the following recommendations made by Executive at its meeting on 7 February 2022 in relation to:
· the Financial Strategy 2022/23 to 2026/27
· the Capital Budget 202223 to 2026/27
· the Capital Financing and Investment Strategy
· the Treasury Management Strategy Statement and Prudential Indicators 2022/23 to 2026/27,
as set out in paragraphs 45 to 48 of the report at Item 7 on the Council agenda:
“Revenue Budget
Executive recommends that Council:
i. Approve the budget proposals outlined in the Financial Strategy report and in particular;
a. The net revenue expenditure requirement of £135.384m
b. A council tax requirement of £102.043m
c. The revenue growth proposals as outlined in the body of the report
d. The 2022/23 revenue savings proposals as outlined in annex 2
e. The fees and charges proposals as outlined in annex 3
f. The consultation feedback as set out in annex 4
g. The Housing Revenue Account (HRA) savings proposals set out in annex 6 and the HRA 2022/23 budget set out in annex 7
h. The dedicated schools grant proposals outlined from paragraph 194
i. The use of £650k New Homes Bonus to fund one off investment, as outlined in paragraph 118
ii. That Council note that the effect of approving the income and expenditure proposals included in the recommendations would result in a 2.99% increase in the City of York Council element of the council tax, 1% of which would relate to the social care precept.
Reason: To ensure a legally balanced budget is set
Capital Budget 2022/23 to 2026/27
Executive recommends that Council:
i. Agree to the revised capital programme of £459.625m that reflects a net overall increase of £70.176m (as set out in table 2 and in Annex A). Key elements of this include:
a) New schemes funded by prudential borrowing totalling £1.9m as set out in tables 3;
b) New schemes funded by a combination of both prudential borrowing and external funds of £16.300m as set out in table 4
c) Extension of prudential borrowing funded Rolling Programme schemes totalling £31.411m as set out in table 5 and summarised in table 5;
d) Extension of externally funded Rolling Programme schemes totalling £10.475m as set out in table 8;
e) An increase in HRA funded schemes totalling £10.090m funded from a combination HRA balances/Right to Buy receipts as set out in table 9.
ii. Note the total increase in Council borrowing as a result of new schemes being recommended for approval is £37.611m the details of which are considered within this report and the financial strategy report.
iii. Approve the full restated programme as summarised in Annex B totalling £459.625m covering financial years 2022/23 to 2026/27 as set out in table 13 and Annex B.
Reason: In accordance with the statutory requirement to set a capital budget for the forthcoming financial year.
Capital and Investment Strategy
Executive recommends that Council approve the Capital and Investment Strategy at Annex A.
Reason: To meet the statutory obligation to comply with the Prudential Code 2017
Treasury Management Strategy Statement and Prudential Indicators
Executive recommends that Council approve:
i. The proposed treasury management strategy for 2022/23 including the annual investment strategy and the minimum revenue provision policy statement;
ii. The prudential indicators for 2022/23 to 2026/27 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
Cllr Kilbane sought Council’s consent to alter the amendment submitted on behalf of the Labour Group in order to correct some numerical errors relating to the Capital proposals.
Council having granted consent, Cllr Kilbane moved and Cllr Douglas seconded the altered amendment, as follows:
“In relation to the Executive’s recommendations on the revenue budget (paragraph 45 of page 50 of Council papers refers):
In sub paragraph (c) add at the end of the sentence ‘subject to the following amendments:
· £30k one off investment in development of planning policy (SPD) to restrict number of short term holiday lets, inc. Air BnBs
· £5k one off nominal funding necessary to enable the Theatre Royal to apply for external funding elsewhere of a far greater amount, to broaden participation and support its immediate future
· £50k one off investment for Front Street secondary shopping area investment
· Part Reversal of one off growth £85k – part reversal of the £500k one off growth to ensure that there is sufficient general reserve contingency.’
In sub paragraph (d) add at the end of the sentence ‘subject to the following amendments:
· Reverse saving proposal PE001 Home to School Transport - £150k
· Reverse saving proposal ECC1 Carbon Reduction Central Team - £100k
· Reverse saving proposal ECC2 Reduction in 1FTE in Transport and Parking - £25k
· Reverse saving proposal HASC2 Mental Health - £31k
· A reduction of 1 FTE in Executive policy team - £55k
· A reduction of two Executive Members - £38k
· Removal of 2 Scrutiny Chair - £12k
· Increase income from Corporate advertising £15k
· Reduction of 1.7 FTE in the Communications Team - £74k
· Delete vacant post – Head of Democratic Governance £82k’.
In sub paragraph (e) add at the end of the sentence ‘subject to the following amendments:
· PLA03: Bulky Waste collection charge increase from £24 to £30 for 10 items– £10k
· Additional green bin waste collection fee increase to better cover full cost of the service - £20k.’
In sub paragraph (g) add at the end of the sentence ‘subject to the following amendment:
· £100k recurring allocation of HEIP budget into minimum 2 FTE intensive support officers (Housing Services), helping to reduce ASB in our communities’.”
After debate, a named vote was taken on the above amendment, with the following result:
For |
Against |
Abstained |
Cllr Barnes |
Cllr Aspden |
Cllr Carr |
Cllr Crawshaw |
Cllr Ayre |
Cllr Warters |
Cllr Douglas |
Cllr Baker |
|
Cllr Fitzpatrick |
Cllr Barker |
|
Cllr Galvin |
Cllr Craghill |
|
Cllr Heaton |
Cllr Cuthbertson |
|
Cllr Kilbane |
Cllr D’Agorne |
|
Cllr Lomas |
Cllr Daubeney |
|
Cllr Looker |
Cllr Doughty |
|
Cllr Melly |
Cllr Fenton |
|
Cllr Musson |
Cllr Fisher |
|
Cllr Myers |
Cllr Hollyer |
|
Cllr Norman |
Cllr Hook |
|
Cllr Perrett |
Cllr Hunter |
|
Cllr K Taylor |
Cllr Mason |
|
Cllr Webb |
Cllr Orrell |
|
Cllr Wells |
Cllr Pearson |
|
|
Cllr Rowley |
|
Cllr Runciman |
|
|
Cllr Smalley |
|
|
|
Cllr D Taylor |
|
|
Cllr Vassie |
|
Cllr Waller |
|
|
|
Cllr Wann |
|
|
Cllr Waudby |
|
|
Cllr Widdowson |
|
|
Cllr Cullwick (Lord Mayor) |
|
17 |
27 |
2 |
The Labour amendment was therefore declared LOST.
Conservative amendment
Cllr Doughty then moved, and Cllr Rowley seconded, the following amendment on behalf of the Conservative Group:
“In relation to the Executive’s recommendations on the revenue budget (paragraph 45 of page 50 of Council papers refers):
In sub paragraph (a) delete ‘£135.384m’ and replace with‘£134.894m’
In sub paragraph (b) delete ‘£102.043m’ and replace with ‘£101.553m’
In sub paragraph (c) add at the end of the sentence ‘subject to the following amendments:
· £100k investment in additional pothole repair budget;
· £10k investment to cover the annual maintenance cost of 40 new street benches;
· £60k investment to cover 2FTE Public Realm Officers for City Centre and Out of Town hubs;
· £75k investment to target travel solutions to communities lacking adequate bus travel. Bid would be invited for schemes from the likes of the York Bus Forum and Parish Councils.’
In sub paragraph (d) add at the end of the sentence ‘subject to the following amendments:
· A reduction of 2 FTE in Executive policy team - £88k
· A reduction of two Executive Members - £38k
· Removal of Climate Change Committee Chair - £6k
· Increase income from advertising in ‘Our City’ - £60k
· Reduction of 2 FTE in the Communications Team - £87k
· A reduction of member allowances increase, including all special responsibility allowances, to 2019/20 levels, allowing only for inflation at the rate previously agreed in 2015 - £77k
· A reduction of purple flag promotion budget - £50k
· A reduction in the Climate Change Delivery Fund - £100k
· Reduction in overtime budgets - £100k
· Staff reduction of 2 FTE political assistant posts - £87k
· A reduction in the print budget, by switching to paperless meetings - £25k
· Reduction in Executive Support Assistants (Business Support) - £50k.’
In sub paragraph (e) add at the end of the sentence ‘subject to the following amendments:
· PLA03: Bulky Waste collection charge decrease from £24 to £20 for 10 items– £8k
· PLA04: reverse evening charge for Minster Badge holders - £25k’.
In paragraph 45 (ii) third line, delete ‘2.99%’ and replace with ‘2.5%.’”
After debate, a named vote was taken on the above amendment, with the following result:
For |
Against |
Abstained |
Cllr Doughty |
Cllr Aspden |
Cllr Warters |
Cllr Rowley |
Cllr Ayre |
|
|
Cllr Baker |
|
|
Cllr Barker |
|
|
Cllr Barnes |
|
|
Cllr Carr |
|
|
Cllr Craghill |
|
|
Cllr Crawshaw |
|
|
Cllr Cullwick |
|
|
Cllr Cuthbertson |
|
|
Cllr D’Agorne |
|
|
Cllr Daubeney |
|
|
Cllr Douglas |
|
|
Cllr Fenton |
|
|
Cllr Fisher |
|
|
Cllr Fitzpatrick |
|
|
Cllr Galvin |
|
|
Cllr Heaton |
|
|
Cllr Hollyer |
|
|
Cllr Hook |
|
|
Cllr Hunter |
|
|
Cllr Kilbane |
|
|
Cllr Lomas |
|
|
Cllr Mason |
|
|
Cllr Melly |
|
|
Cllr Musson |
|
|
Cllr Myers |
|
|
Cllr Norman |
|
|
Cllr Orrell |
|
|
Cllr Pearson |
|
|
Cllr Perrett |
|
|
Cllr Runciman |
|
|
Cllr Smalley |
|
|
Cllr D Taylor |
|
|
Cllr K Taylor |
|
|
Cllr Vassie |
|
|
Cllr Waller |
|
|
Cllr Wann |
|
|
Cllr Waudby |
|
|
Cllr Webb |
|
|
Cllr Wells |
|
|
Cllr Widdowson |
|
|
Cllr Looker (Lord Mayor) |
|
2 |
43 |
1 |
The Conservative amendment was therefore declared LOST.
After debate, a named vote was then taken on the original recommendations, with the following result:
For |
Against |
Abstained |
Cllr Aspden |
Cllr Barnes |
Cllr Galvin |
Cllr Ayre |
Cllr Crawshaw |
|
Cllr Baker |
Cllr Doughty |
|
Cllr Barker |
Cllr Douglas |
|
Cllr Carr |
Cllr Fitzpatrick |
|
Cllr Craghill |
Cllr Heaton |
|
Cllr Cuthbertson |
Cllr Kilbane |
|
Cllr D’Agorne |
Cllr Lomas |
|
Cllr Daubeney |
Cllr Looker |
|
Cllr Fenton |
Cllr Melly |
|
Cllr Fisher |
Cllr Musson |
|
Cllr Hollyer |
Cllr Myers |
|
Cllr Hook |
Cllr Norman |
|
Cllr Hunter |
Cllr Perrett |
|
Cllr Mason |
Cllr Rowley |
|
Cllr Orrell |
Cllr K Taylor |
|
Cllr Pearson |
Cllr Warters |
|
Cllr Runciman |
Cllr Webb |
|
Cllr Smalley |
Cllr Wells |
|
Cllr D Taylor |
|
|
Cllr Vassie |
|
|
Cllr Waller |
||
Cllr Wann |
|
|
Cllr Waudby |
|
|
Cllr Widdowson |
|
|
Cllr Cullwick (Lord Mayor) |
|
|
|
|
|
26 |
19 |
1 |
The original recommendations were therefore declared CARRIED and it was
Resolved: That the Executive’s recommendations to Council be approved.
Supporting documents: