Agenda item

To consider the recommendations made by the Executive, at their meeting on 16 February 2010, in relation to the Revenue Budget proposals for 20010/11 and the Capital Programme Budget for 2010/11 – 2014/15.  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 8 February 2010.  The reports can be accessed by clicking on the link below.

 

http://democracy.york.gov.uk/ieListDocuments.aspx?CId=102&MId=4324&Ver=4

A - Revenue Budget

 

Cllr Waller moved, and Cllr Runciman seconded, the recommendations of the Executive in respect of the Revenue Budget proposals for the 2010/11 Financial Year, as set out in the report at page 3 of the Council papers:

 

“The Executive recommends that Council approve the budget proposals outlined in the report of the Director of Resources and set out in detail within the financial strategy, in particular:

 

i)                    The net revenue expenditure for 2010/11 of £117.880m, as set out in Annex 1, amended by £0.098m.

 

ii)                  The housing revenue account proposals outlined in Annex 8.

 

iii)                The dedicated schools grant proposals outlined in the report.

 

iv)                The revenue growth proposals of £13.786m on-going for 2010/11, plus one-off growth of £1.008m, as outlined in Annex 3, subject to the following amendments:

a)     Reduce growth proposals by £0.045m, as follows:

·        £0.045m (from £0.123m to £0.078m) for price increases in LCCS

b)     Reject growth proposals totalling £0.255m, as follows:

·        CORPG41 in the sum of £0.255m for increased corporate contingency

c)     Include new growth proposals totalling £0.030m, as follows:

·        Reduction in the cost of Respark visitor badges from £1.10 to £0.90 at a cost of £0.030m;

Resulting in revised figures of £13.516m for on-going growth in 2010/11, plus one-off growth of £1.008m.

 

v)                  The revenue savings proposals of £10.352m for 2010/11 outlined in Annex 4, subject to the following amendments:

a)     Reject savings proposals totalling £0.154m, as follows:

·        CEXES 16 – delete 1 fte Democracy Officer in the sum of - £0.027m

·        CEXES 17/18 – review of responsibility allowances in the sum of - £0.010m

·        CSTRS 12 Park & Ride additional income in the sum of - £0.050m

·        LS04 Arts and Culture – cease funding the community arts service in the sum of £0.067m

b)     Amend savings proposals totalling £0.042m, as follows:

·        CS11 Arts Consultants – reduce the saving from £0.100m to £0.058m in 2010/11 to defer implementation until September 2010, with the remaining £0.042m of the 2010/11 saving to be funded by the use of reserves.

c)     Include new savings proposals totalling £0.024m, as follows:

·        Reduction in printing costs and subscriptions in the Chief Executive’s department in the sum of - £0.009m

·        Reduction in the corporate contingency provision in the sum of - £0.015m from £0.600m to £0.585m

Resulting in a revised figure of £10.180m.

 

vi)                In terms of the Council’s reserves, the use in 2010/11 of £0.500m from the Venture Fund and £42k from general reserves for the Arts consultants.

 

vii)              Use of prior year collection fund surplus of £0.288m.

 

viii)            That release of growth of £500k for 16/17 year olds be subject to a further report to the Executive setting out the full implications (paragraph 28).

 

ix)                That the £2m transfer from general balances to the capital reserve fund not be made (paragraph 52).

 

x)                  The increase in council dwelling rents by an average of 1.83%, in line with government guidance on rent re-structuring, as set out in Annex 9.

 

xi)                Note the medium term financial strategy projections that indicate the need for savings / efficiencies in future years of £10m per annum.

 

xii)              Note that the effect of approving the income and expenditure proposals included in the above recommendations will result in an increase in the City of York element of the Council Tax of 2.7%.”

 

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 14 iv) c), replace the figure ‘£0.030m’ with ‘£0.952m’ and at the end of the bullet point relating to Respark Visitor Badges, add the words ‘subject to the addition of:

• YoZone Extension 16-19 year olds in education - £1 reduced fare.  £0.367m
• Breakfast Club – free provision for all free school meals children.  £0.028m
• £25.00 reduction in Council Tax for over 75s.  £0.154m
• Reduce Respark permit by 10%.  £0.047m
• Green Travel Co-ordinator and Smart Travel Plan.  £0.050m
• Increase Respite Care.  £0.020m
• Pump prime additional Apprenticeships.  £0.025m
• Bus Review.  £0.050m
• Community centres.  £0.003m
• Statutory Bus Partnership – 6 months.  £0.158m
• Prudential borrowing for Highways to fund the increased capital investment.  £0.020m.’

 

In the next sentence, replace the figure ‘£13.516m’ with ‘£14.438m’.

 

In paragraph 14 v) a), replace the figure ‘£0.154m’ with ‘£0.284m’ and after the words ‘as follows’ in that line, insert the words ‘subject to CSTRS12 below (Park & Ride additional income in the sum of -£0.050m) not being rejected.’

 

After the bullet point relating to LSO4 Arts & Culture, add the following:

• CEXES13 Graduate Management Trainee Chief Executive’s Office. £0.012m
• CS36 Graduate Trainee in LCCS.  £0.007m
• CS28 Accounting Technician Training Post.  £0.011m
• HASS06 Respite Care.  £0.020m
• CSTRS05 Planning Development Control re-structure.  £0.130m

 

In paragraph 14 v) c), replace the figure ‘£0.024m’ with ‘£1.076m’ and after the bullet point relating to corporate contingency provision, add the following:

• Reduce travel budgets across Directorates.  £0.050m
• Removal of Environmental Enforcement Team.  £0.084m
• Remove Park & Ride benefit.  £0.035m
• Reduce staff and councillor wage increase funding from 1% to 0.75%.  £0.250m
• Across Directorate saving for premises hire, buffets and taxis.  £0.150m
• Increase Vacancy Factor.  £0.100m
• Increase Corporate Efficiency Target.  £0.102m
• Reduction in Highway Maintenance (to be replaced with capital provision).  £0.220m
• Bootham Bar toilets closure.  £0.043m
• Bridge Maintenance.  £0.008m
• Council Tax collection date change to 1^st of the month. £0.010m

 

At the end of paragraph 14 v) c), replace the revised figure of ‘£10.180m’ with ‘£11.102m’.”

 

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

 

Second Labour Amendment (Revenue Budget)

 

Cllr Gunnell then moved, and Cllr Bowgett seconded, the following amendment to the Revenue Budget recommendations, on behalf of the Labour Group:

 

“In paragraph 14 v) a), replace the figure ‘£0.154m’ with ‘£0.156m’ and after the bullet point relating to LSO4 Arts & Culture, add the following:

• LSO9 Bowling Green maintenance - £0.002m

 

In paragraph 14 v) c), replace the figure ‘£0.024m’ with ‘£0.026m’ and after the bullet point relating to corporate contingency provision, add the following:

• Increase HMO Licences - £0.002m.”

 

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

 

Third Labour Amendment (Revenue Budget)*

 

Cllr Crisp then moved, and Cllr Looker seconded, the following amendment to the Revenue Budget recommendations, on behalf of the Labour Group:

 

“In paragraph 14 iv) c), replace the figure ‘£0.030m’ with ‘£0.032m’ and at the end of the bullet point relating to Respark Visitor Badges, add the following:

• Festival of Remembrance to help with venue hire (one- off) - £0.001m
• Carol Services to help with venue hire (one-off)- £0.001m

In the next sentence, replace the figure ‘£1.008m’ with ‘£1.010m’

 

In paragraph 14 vi), replace the figure ‘£42k’ from general reserves for the Arts Consultants with ‘£44k’.”

 

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

 

*Note: Cllr Horton, having declared a prejudicial interest in the above amendment, left the Chamber during the debate on the amendment and took no part in the discussion or decision thereon.

 

Fourth Labour Amendment (Revenue Budget)

 

Cllr Simpson-Laing then moved, and Cllr Pierce seconded, the following amendment to the Revenue Budget recommendations, on behalf of the Labour Group:

 

“In paragraph 14 v) a), replace the figure ‘£0.154m’ with ‘£0.175m’ and after the bullet point relating to LSO4 Arts & Culture, add the following:

• CEXES08 Scrutiny Assistant - £0.021m

 

In paragraph 14 v) c), replace the figure ‘£0.024m’ with ‘£0.045m’ and after the bullet point relating to corporate contingency provision, add the following:

• Reduce use of consultants and external legal advice - £21k.”

 

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 Revenue Budget recommendations, on behalf of the Conservative Group:

 

“In paragraph 14 i), replace the figure of ‘£117.880m’ with ‘£117.315m’.

 

In paragraph 14 v) c), replace the figure of ‘£0.024m’ with ‘£0.589m’ and after the bullet point relating to corporate contingency provision, add the following:

• Reduction in the Council newspaper and consultation costs - £100k
• Increased vacancy rate provision across the Council - £100k
• Extended review through More for York of travel and subsistence costs - £100k
• Reduction in the pay award provision made from 1% to 0.75% - £250k
• Reduction of one Executive Member post to reflect the change in the Council structure - £15k.

 

At the end of paragraph 14 v) c), replace the revised figure of £10.180m’ with ‘£10.745m’.

 

In paragraph 14 xii), replace the figure of ‘2.7%’ with ‘1.9%’.”

 

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

 

The Revenue Budget recommendations, as amended by the second and third Labour amendments, now read as follows:

 

“That Council approve the budget proposals outlined in the report of the Director of Resources and set out in detail within the financial strategy, in particular:

 

i)                    The net revenue expenditure for 2010/11 of £117.880m, as set out in Annex 1, amended by £0.098m.

 

ii)                  The housing revenue account proposals outlined in Annex 8.

 

iii)                The dedicated schools grant proposals outlined in the report.

 

iv)                The revenue growth proposals of £13.786m on-going for 2010/11, plus one-off growth of £1.008m, as outlined in Annex 3, subject to the following amendments:

a.     Reduce growth proposals by £0.045m, as follows:

·        £0.045m (from £0.123m to £0.078m) for price increases in LCCS

b.     Reject growth proposals totalling £0.255m, as follows:

·        CORPG41 in the sum of £0.255m for increased corporate contingency

c.      Include new growth proposals totalling 0.032m, as follows:

·        Reduction in the cost of Respark visitor badges from £1.10 to £0.90 at a cost of £0.030m

·        Festival of Remembrance to help with venue hire (one-off) - £0.001m

·        Carol Services to help with venue hire (one-off) - £0.001m;

Resulting in revised figures of £13.516m for on-going growth in 2010/11, plus one-off growth of £1.010m.

 

v)                  The revenue savings proposals of £10.352m for 2010/11 outlined in Annex 4, subject to the following amendments:

a.     Reject savings proposals totalling £0.156m, as follows:

·        CEXES 16 – delete 1 fte Democracy Officer in the sum of - £0.027m

·        CEXES 17/18 – review of responsibility allowances in the sum of - £0.010m

·        CSTRS 12 Park & Ride additional income in the sum of - £0.050m

·        LS04 Arts and Culture – cease funding the community arts service in the sum of £0.067m

·        LSO9 Bowling Green maintenance - £0.002m

b.     Amend savings proposals totalling £0.042m, as follows:

·        CS11 Arts Consultants – reduce the saving from £0.100m to £0.058m in 2010/11 to defer implementation until September 2010, with the remaining £0.042m of the 2010/11 saving to be funded by the use of reserves.

c.      Include new savings proposals totalling £0.026m, as follows:

·        Reduction in printing costs and subscriptions in the Chief Executive’s department in the sum of - £0.009m

·        Reduction in the corporate contingency provision in the sum of - £0.015m from £0.600m to £0.585m

·        Increase HMO Licences - £0.002m

Resulting in a revised figure of £10.180m.

 

vi)                In terms of the Council’s reserves, the use in 2010/11 of £0.500m from the Venture Fund and £44k from general reserves.

 

vii)              Use of prior year collection fund surplus of £0.288m.

 

viii)            That release of growth of £500k for 16/17 year olds be subject to a further report to the Executive setting out the full implications (paragraph 28).

 

ix)                That the £2m transfer from general balances to the capital reserve fund not be made (paragraph 52).

 

x)                  The increase in council dwelling rents by an average of 1.83%, in line with government guidance on rent re-structuring, as set out in Annex 9.

 

xi)                Note the medium term financial strategy projections that indicate the need for savings / efficiencies in future years of £10m per annum.

 

xii)              Note that the effect of approving the income and expenditure proposals included in the above recommendations will result in an increase in the City of York element of the Council Tax of 2.7%.”

 

On being put to the vote, the above recommendations, as amended, were declared CARRIED and it was

 

RESOLVED: That the recommendations of the Executive on the Revenue Budget proposals, as amended by the second and third Labour amendments, as set out above, be approved.

 

B - Capital Budget

 

Cllr Waller moved, and Cllr Runciman seconded, the recommendations of the Executive in respect of Capital Programme Budget for the period 2010/11 to 2014/15, as set out in the report at page 3 of the Council papers:

 

“The Executive recommends:

 

i)          That Council approve the revised capital programme of £235.191m (amended from £234.916m), including specifically the inclusion in the programme of new schemes totalling £89.065m, as set out in the ‘growth’ column in Annex B to the report, plus a further Street Lighting Improvement scheme of £0.250m and £0.025m for further investment in the targeted home insulation programme to continue the £0.100m scheme commenced during 2009/10; the whole programme comprising:

a)                 the bids recommended in paragraph 70 (table 5), totalling £7.618m and including the allocation of receipts to Access York Phase 1;

b)                 the additional externally funded schemes in paragraph 77 (table 8) totalling £72.860m;

c)                 the use of prudential borrowing for the IT development plan in paragraph 79 (table 9), totalling £5.141m and containing specific schemes of £1.141m, with the remaining £4m subject to further approval and for the capital element of the More for York programme as in paragraph 80, totalling £210k;

d)                 the use of HRA balances to fund HRA capital schemes, as set out in paragraph 81 (table 10), totalling £3.236m;

e)                 an additional scheme of Street Lighting Improvements of £250k, on an Invest to Save basis, with a view to achieving energy / carbon savings, the repayment period to be determined by the Director of Resources;

f)                   an additional scheme of £25k to continue the existing area based programme for home insulation grants in designated areas with the lowest SAP ratings and the highest incidence of fuel poverty.

 

ii)         That Council 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.

 

iii)        That Council endorse the principle of postponing asset sales until such time as the market picks up sufficiently to allow optimum values to be realised.

 

iv)        That Council approve the full re-stated programme as summarised in Annex B to the report and as amended by recommendation (i) above, totalling £235.191m up to 2014/15.”

 

The amendment to the Capital Budget recommendations submitted by the Labour Group was not put, as it was dependent upon the first Labour amendment to the Revenue recommendations being carried.

 

The above recommendations were therefore put to the vote and declared CARRIED and it was

 

RESOLVED: That the recommendations of the Executive in respect of Capital Programme Budget for the period 2010/11 to 2014/15, as set out above, be approved.