Agenda item

Recommendations of the Executive on the Council’s Detailed Revenue Budget Proposals for 2009/10 and the Council’s Capital Programme Budget for 2009/10 – 2013/14

To consider the recommendations made by the Executive at their meeting on 16 February 2009 in relation to the Revenue Budget proposals for 2009/10 and the Capital Programme Budget for 2009/10 – 2013/14. These are set out in the attached report and will be moved by the Executive Leader.

Note:

The original reports to Executive, on which their recommendations were based, were circulated to all Members on 6 February and 13 February. The reports can be accessed by clicking on the link below.

http://democracy.york.gov.uk/ieListDocuments.asp?CId=102&MId=3585&Ver=4

Minutes:

Cllr Waller moved, and Cllr Runciman seconded, the recommendations of the Executive in respect of the Revenue Budget proposals for the 2009/10 Financial Year and the Capital Programme Budget for the period 2009/10 to 2013/14, as set out in the report at page 1 of the Council papers:

“Revenue Budget

The Executive recommends that Council approves and adopts the revenue budget proposals as set out below and in the annexes to the report of the Director of Resources (and the amended annexes attached to the report at page 1 of the Council agenda):

(i) The net revenue expenditure requirement for 2009/10 of £117.686m, as set out in Annex 1 (as amended);

(ii) The housing revenue account proposals outlined in Annex 12;

(iii) The dedicated schools grant proposals outlined in the report;

(iv) The revenue growth proposals of £8.969m on-going for 2009/10, plus one-off growth of £2.336m, outlined in Annex 3 (as amended), plus an additional £1.138m relating to one-off growth proposals brought forward from 2008/09;

(v) The revenue savings proposals for 2009/10 of £5.228m outlined in Annex 4 (as amended);

(vi) The use in 2009/10 of £3.474m revenue reserves, as outlined in Annex 6 (as amended);

(vii) The use in of prior year Collection Fund surplus of £0.236m;

(viii) The fees and charges proposals in Annex 8;

(ix) The IT Development Plan proposals as shown in Annex 10;

(xi) An advance from the Council’s Venture Fund of £627k in 2009/10 and £626k in 2010/11 to be made to phase 2 of the easy@york project, as outlined in Annex 11, which will enable the project to continue until 2014/15 (plus the £100k in 2009/10 and £200k in 2010/11, for the modernisation of the City’s street lighting stock).

The above recommendations resulting in a Council Tax increase of 4.25% for City of York Council.”

Capital Programme

The Executive recommends that Council:

(i) Approve the revised capital programme of £185.515m, as set out in the report and annexes, and specifically the inclusion in the capital programme of new schemes totalling £56.958m.

(ii) Approve:

a) the bids in paragraph 49 of the report, totalling £10,586m and

b) the additional externally funded schemes in paragraph 54, totalling £46,372m.

(iii) Agree to provision being made in the capital programme, subject to further detailed reports being brought back to the Executive, for five further additional schemes, as follows, resulting in a total capital programme of £194.165m:

a) Community Stadium and athletics facilities -£4m (this being an initial estimated net cost, in year 2011/12)

New recycling facility – net cost £2.5m (all in 2011/12)

Acomb Office - £1.75m gross, £0.9m prudential borrowing, £0.85m net cost (0.5m in 2010/11, £1.25m in 2011/12)

d) Street light modernisation expenditure of £100,000 in 2009/10 and £200,000 in 2010/11, to be financed from the Venture Fund.

e) £100,000 in 2009/10 to fund a programme aimed at improving energy conservation standards in homes in the City.

(iv) Note the overall funding position identified in the report, which highlights a current shortfall in resources over the next five years, which the Council will need to address through increased revenue contributions in the medium term.

(v) Note the additional impact on the funding position of the inclusion of the five new schemes as set out in Recommendation (iii) above.

(vi) Endorse the principle of any un-committed revenue budget under-spending, which may be considered as part of out-turn reports, being allocated to assist in balancing the capital programme.

(vii) Agree to establish a Capital Reserve, to support the funding of the capital programme, to be funded from any future revenue under-spending, together with potential contributions from general reserves, this to be regularly updated as part of ongoing reviews of Council Reserves.

(viii) Note, in view of the potential funding shortfall towards the end of the capital programme period, the need for regular updates of the 5 year plan to the Executive and Council, with such reports to provide an update on the overall 5 year plan and to identify any required amendments that may be needed to expenditure and resources projections, to ensure that the capital plan is fully resourced in the medium term.

(ix) Agree the use of £170k of prudential borrowing in respect of the Millfield Lane Community Sports Centre.

(x) Approve the use of £111k of Housing Revenue Account (HRA) balances to fund the HRA capital programme elements in 2009/10.”

First Labour Amendment (Revenue Budget)

Cllr Scott then moved, and Cllr Potter seconded, the following amendment to the Executive’s Revenue Budget recommendations, on behalf of the Labour Group:

“In paragraph 13 (i), replace the figure ‘£117.686m’ with ‘£117.661m.’

In paragraph 13(iv):

Replace the figure ‘£8.969m’ with ‘£9.929m’.

After the words ‘ongoing for 2009/10’ in the same line, add the words ‘subject to:’ and insert the following text:

(a) the inclusion of the following items to the revised Annex 3 (Annex B in the Council Summons papers - pages 11-15 refer):

1) ResPark fees - Reduction by 10% £71k

2) CYC Car Park Fees for Resident Badge Holders - Freeze parking charges £33k

3) Bus Tokens - restore to £40 £170k

4) Noise Nuisance Reduction Service Fund – restore to current levels £24k

5) School Meals - from September reduce by £1.00 to £1.05 school meals for all Primary Pupils and freeze the cost at £2.05 for Secondary Pupils £804k

6) Older People’s Assembly – funding £10k

7) Community Centres – Bell Farm, Foxwood and Tang Hall additional running costs of £1k each £3k

8) Mansion House urgent repairs -revenue contribution to a capital scheme £65k

9) Scrutiny Officer – new post £25k

b) the deletion of the following from the revised Annex 3 (Annex B in the Council Summons papers – pages 11-15 refer):

1) (CSCH1) – Inflation on Highway Maintenance -£150

(c) alterations to the following items contained in the revised Annex 3 (Annex B in the Council Summons papers – pages 11-15 refer):

1) (NSG_G2) – Bin Replacement reduction from £90k to £45k -£45k

2) Information Technology Budget – reduce from £350k to £300k-£50k

3) (CSCH1) ResPark Review - that the review be undertaken to investigate the physical size and eco-friendly aspects of vehicles.

In line 3 of the same paragraph, replace the figure ‘£2.336m’ with ‘£2.649m’ and after that figure add the following text:

‘with the following alterations:

1) Management Structure Review - to produce a report with the intention of reducing number of Directors £30k

2) Credit Crunch Economic Development - to be combined with the £186k LAGBI grant with a direction that it be spent at the guidance of the Economic Development Partnership £250k

3) Webcasting Trial £33k’

In paragraph 13(v), replace the figure ‘£5.228m’ with ‘£6.526m’.

At the end of paragraph 13(v), add the words:

‘subject to:

(a) the inclusion of the following to the revised Annex 4 (Annex C in the papers in the Council Summons, pages 17-28 refer):

1) Reducing Number of Directors, Ass Directors and Managers £200k

2) Centralise HR £30k

3) Advertising on bins (part year income) £20k

4) Advertising columns (part year income) £25k

5) Advertising on roundabouts (part year income) £25k

6) (CSHS3) Highway and Footpath £244K

7) (LS15) Library opening hours – review and rationalize £8k

8) Bootham Bar Toilets - close £10k

9) Bridge Inspection - reduce £8k

10) Council Tax – move the collection date to the 1^st of the month £10k

11) External Legal Fees and use of Consultants – Reduce £200k

12) Departmental Travel Budgets reduction £50k

13) Across Directorate Increase in Vacancy Factors £200k

14) Environmental Enforcement Team – remove £52K

15) Parking Services Cashiers – combine with City Finance £20k

16) Chewing Gum Machine – reduce usage spend £17k

17)Trade Waste - increase charge by 2% £35k

18) Your City - cancel £11k

19) York Grant 2.5% increase £1k

20) HMO Licence2.5% increase £2k

(b) the deletion of the following from the revised Annex 4 (Annex C in the papers in the Council Summons, pages 17-28 refer):

1) Economic Development saving £25k

2) (NSSEO_S1)Street Environment Officer £29k

3) (CXLS2) Democracy Post – part time saving £15k

4) (CXMS2) Member Services 0.6 post £11k

5) (CXHS1) Trade Union Facility time £20k

and (c) to alterations to the following items contained in the revised Annex 4 (Annex C in the papers in the Council Summons, pages 17-28 refer):

1) Increase Standard Stay Car Parking for Non Residents by 10p to 30p per hour and freeze the charge for York’s Resident badge holders by deleting the proposed 10p increase (CSHS1) £115k

2) Corporate Energy Cost Efficiency Target – increase from 75k to 248k £173k

3) (HASS 7) Efficiency against premises, supplies and service budgets - increase by an extra 0.5% from £200k to £234k £34k

4) (HASS15) Disability Relates Expenditure disregard– reverse cut from 80% to 75% -£92k

HASS 15 amend from £180k by £92k to £88k.’

In paragraph 13(vi), replace the figure ‘£3.474m’ with ‘£3.787m’

At the end of that paragraph, add the words:

‘subject to:

(a) the inclusion of the following:

1) Management Structure Review - to produce a report with the intention of reducing number of Directors. £30k

2) Credit Crunch Economic Development - to be combined with the £186k LAGBI grant with a direction that it be spent at the guidance of the Economic Development Partnership £250k

3) Webcasting Trial £33k’

At the end of paragraph 13(viii), add the following:

‘,as affected by the changes to the revised Annex 3 (Annex B in the papers to the Council Summons – pages 11-15 refer)

Note; such changes being in relation to new growth as follows:

1) Respark reduction by 10% £71k

2) CYC Car Park Fees for Resident Badge Holders - Freeze parking charges £33k

3) Increase Standard Stay Car Parking for Non Residents by 10p to 30p per hour and freeze the charge for York’s Resident badge holders by deleting the proposed 10p increase £115k

5) Increase in commercial waste by 2% £35k

6) York Grant 2.5% increase £1k

7) HMO Licence 2.5% increase £2k

At the end of paragraph 13(ix), add ‘subject to the reduction of £50k from the Plan further to the proposed saving in revenue growth, in respect of which the Director of Resources is asked to determine how such saving will be achieved.’

In paragraph 13(x), on line 5, after the words ‘street light stock’, add ‘and also £100k for York Markets economic stimulus’

At the end of paragraph 13 and after 13(x) specifically, in the paragraph that starts ‘The above recommendations’, replace the figure ‘4.25%’ with ‘3.75%’.”

On being put to the vote, the above amendment was declared LOST.

Conservative Amendment (Revenue Budget)

Cllr Gillies then moved, and Cllr Healey seconded, the following amendment to the Executive’s Revenue Budget recommendations, on behalf of the Conservative Group:

“We call upon the Executive to amend its Recommendations as set out in the Council Summons as follows:-

Net Revenue Expenditure

On page 4, paragraph 13, recommendation (i), replace ‘£117.686m’ with ‘£117.010m’.

Growth

On page 4, paragraph 13, recommendation (iv), replace ‘£8.969m on-going for 2009/10’ with ‘8.631m ongoing for 2009/10’.

At the end of the paragraph add the words ‘subject to the following amendment to the revised Annex A at page 9: replace the corporate growth for pay increment of £882k with a figure of £544k to be delivered through controlling the staffing budgets.’

Savings

On page 4, paragraph 13, recommendation (v) replace ‘£5.228m’ with ‘£5.566m’.

At the end of the clause add the following note:

‘Additional revenue savings of £338k will be delivered through a reduction in external consultancy costs, a review of legal services/costs with a view to providing greater in-house capability and reduced external legal fees and improved sickness absence resulting in improved productivity and reduced costs. The Director of Resources shall determine the detailed breakdown of savings across the areas following further review.’

Council Tax

On page 5, second paragraph, replace ‘a Council Tax increase of 4.25%’ with ‘a Council Tax increase of 3.25%’.

On being put to the vote, the above amendment was declared CARRIED.

Second Labour Amendment (Capital Programme)

Cllr Simpson-Laing then moved, and Cllr Hudson seconded, the following amendment to the Executive’s Capital Programme Budget recommendations, on behalf of the Labour Group:

“In paragraph 14(i), replace the figure ‘£185.515m’ with ‘£185.580m’ and the figure £56.958m with ‘£57.023m’.

In paragraph 14(ii) a) (as revised per erratum), replace the figure ‘£10.586m’ with ‘£10.651m’, then add the words ‘to include essential external repairs to the Mansion House, costing £65k approx’.

In paragraph 14(iii), replace the figure ‘£194.165m’ with ‘£194.230m (including Mansion House repairs)’.”

On being put to the vote, the above amendment was declared CARRIED.

On being put to the vote the main motion, as amended, was declared CARRIED and it was

RESOLVED: That the recommendations of the Executive in relation to the Revenue Budget for the 2009/10 Financial Year and the Capital Programme Budget for the period 2009/10 to 2013/14, as amended, be approved, as follows:

Revenue Budget

The Executive recommends that Council approves and adopts the revenue budget proposals as set out below and in the annexes to the report of the Director of Resources (and the amended annexes attached to this report):-

(i)The net revenue expenditure requirement for 2009/10 of £117.010m, as set out in Annex 1 (as amended);

(ii)The housing revenue account proposals outlined in Annex 12;

(iii)The dedicated schools grant proposals outlined in the report;

(iv)The revenue growth proposals of £8.631m on-going for 2009/10, plus one-off growth of £2.336m, outlined in Annex 3 (as amended), plus an additional £1.138m relating to one-off growth proposals brought forward from 2008/09, subject to the following amendment to the revised Annex A at page 9: replace the corporate growth for pay increment of £882k with a figure of £544k, to be delivered through controlling the staffing budgets.

(v)The revenue savings proposals for 2009/10 of £5.566m outlined in Annex 4 (as amended); additional revenue savings of £338k will be delivered through a reduction in external consultancy costs, a review of legal services/costs with a view to providing greater in-house capability and reduced external legal fees and improved sickness absence resulting in improved productivity and reduced costs. The Director of Resources shall determine the detailed breakdown of savings across the areas following further review.

(vi)The use in 2009/10 of £3.474m revenue reserves, as outlined in Annex 6 (as amended);

(vii)The use in of prior year Collection Fund surplus of £0.236m;

(viii)The fees and charges proposals in Annex 8;

(ix)The IT Development Plan proposals as shown in Annex 10;

(xi)An advance from the Council’s Venture Fund of £627k in 2009/10 and £626k in 2010/11 to be made to phase 2 of the easy@york project, as outlined in Annex 11, which will enable the project to continue until 2014/15 (plus the £100k in 2009/10 and £200k in 2010/11, for the modernisation of the City’s street lighting stock).

The above recommendations resulting in a Council Tax increase of 3.25% for City of York Council.

Capital Programme

That Council:

(i)Approve the revised capital programme of £185.580m, as set out in the report and annexes, and specifically the inclusion in the capital programme of new schemes totalling £57.023m

(ii) Approve:

a) the bids in paragraph 49 of the report, totalling £10.651m, to include essential external repairs to the Mansion House, costing £65k approx. and

b) the additional externally funded schemes in paragraph 54, totalling £46.372m.

a) Community Stadium and athletics facilities -£4m (this being an initial estimated net cost, in year 2011/12)

b) New recycling facility – net cost £2.5m (all in 2011/12)

c) Acomb Office - £1.75m gross, £0.9m prudential borrowing, £0.85m net cost (0.5m in 2010/11, £1.25m in 2011/12)

d) Street light modernisation expenditure of £100,000 in 2009/10 and £200,000 in 2010/11, to be financed from the Venture Fund.

e)£100,000 in 2009/10 to fund a programme aimed at improving energy conservation standards in homes in the City.

(iv)Note the overall funding position identified in the report, which highlights a current shortfall in resources over the next five years, which the Council will need to address through increased revenue contributions in the medium term.

(v)Note the additional impact on the funding position of the inclusion of the five new schemes as set out in Recommendation (iii) above.

(vi)Endorse the principle of any un-committed revenue budget under-spending, which may be considered as part of out-turn reports, being allocated to assist in balancing the capital programme.

(vii)Agree to establish a Capital Reserve, to support the funding of the capital programme, to be funded from any future revenue under-spending, together with potential contributions from general reserves, this to be regularly updated as part of ongoing reviews of Council Reserves.

(viii)Note, in view of the potential funding shortfall towards the end of the capital programme period, the need for regular updates of the 5 year plan to the Executive and Council, with such reports to provide an update on the overall 5 year plan and to identify any required amendments that may be needed to expenditure and resources projections, to ensure that the capital plan is fully resourced in the medium term.

(ix)Agree the use of £170k of prudential borrowing in respect of the Millfield Lane Community Sports Centre.

(x) Approve the use of £111k of Housing Revenue Account (HRA) balances to fund the HRA capital programme elements in 2009/10.

Supporting documents: