Agenda item

To consider the recommendations made by the Cabinet, at their meeting on 14 February 2012, in relation to:

 

a)   The Council’s Capital Programme Budget for 2012/13 -2016/17

b)   The Council’s Revenue Budget proposals for 2012/13 and 2016/17 and

c)   The Council’s Treasury Management Strategy Statement and Prudential Indicators for 2012/13 – 2016/17

 

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

 

Note:

The original reports to Cabinet, on which their recommendations are based, were circulated to all Members on 3 February 2012 and can be found on the Council’s website, here:

 

http://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=6680&Ver=4

 

 

Cllr Alexander moved, and Cllr Gunnell seconded, the recommendations of the Cabinet in respect of the Council’s Capital Programme Budget for 2012/13 – 2016/17, the Financial Strategy for 2012 – 2017 (including detailed Revenue Budget proposals for 2012/13 and 2013/14) and the Treasury Management Strategy Statement and Prudential Indicators for 2012/13 – 2016/17, set out in the report at page 3 of the Council papers, as follows:

 

“Capital Budget

34.        Cabinet recommends that Council;

i)     Agree to the revised capital programme of £187.364m that reflects a net overall increase of £53.641m (as set out in paragraph 32, table 9 and in Annex A ‘growth’ column of the Cabinet report). Key elements of this include:

                               a.    Extension of prudential borrowing funded rolling programme schemes totalling £2.105m as set out in paragraph 10 table 2 and summarised in paragraph 32 table 9;

                               b.    New schemes totalling £10.405m including increase in prudential borrowing of £2.595m as set out in paragraph 13 table 3 and summarised in paragraph 30 table 10;

                               c.    Reduction of existing prudential borrowing funded schemes totalling £4.500m as set out in paragraph 15 table 4 and summarised in paragraph 32 table 9;

                               d.    New externally funded and HRA funded schemes totalling £16.381m including HRA balances of £4.447m and including £500k of New Homes Bonus funding for replacement of street lighting  as set out in paragraph 18 table 5 and summarised in paragraph 32 table 9.

                               e.    Extension of the existing IT development programme totalling £750k in 2016/17 funded by prudential borrowing paid for from with in existing revenue budgets as set out in paragraph 31, table 8 and summarised in paragraph 32, table 9.

ii)    Approve the re-profiling of £150k from future years to 2012/13 in relation to replacement of unsound lighting columns scheme as shown in Annex A to the Cabinet report.

iii)  Approve the full restated programme as summarised in Annex A totalling £187.364m cover financial years 2012/13 to 2015/16 as set out in paragraph 34 table 10 of the Cabinet report.

iv)  Approve the establishment of the Economic Infrastructure Fund (EIF) and the proposed priority themes of expenditure as follows:

                               a.    Get York Moving including

·        Access York Park and Ride - £2.5m

·        Better Bus Fund - £2.0m see Annex C

                               b.    Digital York

                               c.    Reinvigorate York

                               d.    Economic Inclusion York

                               e.    Sustainable Economy York

v)   Approve Council funding to the EIF from £20m of prudential borrowing over the next 5 years, all of the New Homes Bonus funds (currently estimated at £8.5m) from 2012/13 onwards, except for £0.5m in 2012/13 which is allocated for Street Lighting replacement.

vi)  Agree that the Director of CBSS be authorised to take decisions on the financing of any expenditure, and profiling of any borrowing, in accordance with the overall financial framework agreed by Council

vii) Agree that decisions on the actual schemes, and monitoring of such schemes will be considered through regular financial monitoring reports to Cabinet 

Revenue Budget

35.        Cabinet recommends that Council

a.   approve the budget proposals outlined in the Financial Strategy report, in particular

                                         i.    The net revenue expenditure requirement for 2012/13 of £122.235m

                                        ii.    The revenue growth proposals as outlined in the body of the Cabinet report

                                       iii.    The revenue savings proposals as outlined in annex 2 of that report.

                                      iv.    The housing revenue account proposals set out in annex 4 of that report.

                                        v.    The dedicated schools grant proposals set out in annex 5 of that report.

b.   Agree that the governance/financial administration of the Delivery and Innovation Fund be in accordance with the Council’s Venture Fund, specifically that the Director of CBSS (in consultation with the Leader) has the authority to make approvals of up to £100,000 and that any sums greater than this require the approval of Cabinet, and that further approval is given to reflect this decision in the Council’s Financial regulations.

 

c.   Note that the effect of approving the income and expenditure proposals included in the recommendations would result in a 2.9% increase in the City of York Council element of the council tax.

Treasury Management Strategy Statement and Prudential Indicators

 

36.       Cabinet recommends that Council approve;

a.   The proposed treasury management strategy for 2012/13, including the annual investment strategy and the minimum revenue provision policy statement

b.   The prudential indicators for 2012/13 to 2016/17 in the main body of the report (and Annex A to the Cabinet report)

c.   The specified and non specified investments schedule (Annex C to the Cabinet report)

d.   The scheme of delegation and the role of the section 151 officer (Annex E to the Cabinet report)

Conservative Amendment

 

Councillor Gillies then moved, and Cllr Steward seconded, an amendment to the above recommendations on behalf of the Conservative Group, as follows:

 

“Capital Budget

 

In paragraph 34 (i), first line, delete ‘£187.364m’ and replace with ‘£161.064m’and in the second line delete ‘£53.641m’ and replace with ‘£27.341m’.  At the end of the first sentence add ‘subject to the removal of the Economic Infrastructure Fund’

         

In paragraph 34 (iii), second line, delete ‘£187.364m’ and replace with ‘£161.064’ and at the end of the paragraph add ‘subject to the removal of the Economic Infrastructure Fund’

 

Delete paragraph 34 (iv) and replace with ‘Agree to use £2.2m of the New Homes Bonus funding for Park & Ride and put the remaining funding into reserves pending further work on identified areas of spend’

 

Delete paragraph 34 (v)

 

Revenue Budget

 

In paragraph 35 (i),sub paragraph (a), second line, delete ‘£122.235m’ and replace with ‘£120.102m’

 

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

·        a reduction of £463k to the Delivery & Innovation Fund, making a total budget for this fund of £537k in 2012/13. 

·        an additional £180k as a result of the revenue implications of the proposed capital programme changes as set out paragraph 34 (i), (iv) and (v) to be put into reserves’

 

In sub paragraph (c) add at the end of the sentence ‘other than proposal CSTS03 to increase parking charges, reducing the overall savings proposed by £169k’ 

 

In paragraph 35 (iii), second line, delete ‘2.9%’ and replace with ‘0%’.  Insert new text after ‘City of York Council element of the council tax’as follows ‘resulting in the Council being able to accept the Council Tax Freeze Grant of £1,839k.”

 

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

 

First Liberal/Democrat Amendment

 

Cllr Runciman then moved, and Councillor Reid seconded, their first amendment to the Cabinet recommendations, on behalf of the Liberal/Democrat Group:

 

“Capital Budget

In paragraph 34 (i) first line, delete ‘£187.364m’ and replace with ‘£167.522m’ and in the second line delete ‘£53.641m’ and replace with ‘£33.799m’.  At the end of the first sentence add ‘subject to the following amendments’

In paragraph 34 (i) sub paragraph (a) at the end of the paragraph add ‘subject to the increase of £500k for Highways R&R to be funded by prudential borrowing and the review of LTP schemes to prioritise highway safety maintenance’

In paragraph 34 (iii) second line, delete ‘£187.364m’ and replace with ‘£167.522m’

Delete paragraph 34 (iv) and replace with ‘Approve the establishment of the Future York Fund, to include £2.2m for Park & Ride.’

In paragraph 34 (v), first line delete ‘EIF’ and replace with ‘Future York Fund’ and delete ‘£20m of prudential borrowing over the next 5 years’. In the second line delete ‘(currently estimated at £8.5m)’ and replace with ‘of £8.158m’. At the end of the sentence add ‘and £342k New Homes Bonus to be used to support the revenue budget amendments in 2012/13’

Revenue Budget

In paragraph 35 (i),sub paragraph (a), second line, delete ‘£122.235m’ and replace with ‘£120.102m’.

In paragraph 35 (i), sub paragraph (b) at the end of the sentence add the following text ‘subject to the following amendments;

·        Remove the Delivery & Innovation Fund £1,000k

·        Remove the Quality Bus Contract £100k

·        Remove the review of subsidised services £50k

·        Remove the contingency fund £250k

·        Reduce general reserve contribution by £196k to £54k

·        Reduce treasury management and capital costs by £135k as a result of the revenue implications of the proposed capital programme changes as set out in paragraph 34 (i), (iii) and (iv)’

·        Add a new growth proposal of £80k to look at the introduction of a living wage for council employees of £6.83 per hour subject to a detailed review, impact assessment and negotiation with all Trade Unions’

In paragraph 35 (i), sub paragraph (c) at the end of the sentence add the following text ‘subject to the following amendments;

·        Add new proposal to reduce cabinet members by two to save £34k

·        Add new proposal to reduce union facility time by £38k

·        Add new proposal to merge planning sub-committees to save £6k

·        Add corporate income from New Homes Bonus of £342k

·        Reduce savings proposal CANS101 charging for replacement bins by £25k

·        Remove the following proposals from the savings schedule

o   ACES02a – Fair Access to Care Services £80k

o   ACES08a – Yorkcraft / Greenworks Efficiency £20k

o   ACES48a – Early Intervention Fund £5k

o   ACES56 – Transforming Youth Support Services £50k

o   CANS12 – Target Hardening £25k

o   CANS19/20 – Highway Infrastructure £185k

o   CANS27 – Winter Maintenance £10k

o   CANS54/60 – Neighbourhood Management Unit £51k

o   CANS02 – Ward Committees £220k

o   CANS04 -  Smarter York £35k

o   CANS05 – Litter bins £40k

o   CANS06 – Street Environment & Enforcement Officers £54k

o   CANS103 – Waste Services £25k

o   CANS116 – removal of free black bin bags £29k

o   CANS21 – gully cleaning £100k

o   CANS22 – Highway infrastructure £200k

o   CANS25 – salt bins £17k

o   CANS31 – waste services £150k

o   CANS32 – Beckfield Lane £100k

o   CANS41 – Environmental Health £34k

o   CANS67 – Safer York Partnership £15k

o   CANS92 – Housing Services £28k

o   CSTS03 – Parking charges £169k

o   CSTS05 – Respark £20k

o   CSTS15 – School Crossing Patrol £40k

o   CSTS32 – Future Prospects £25k

 

Delete paragraph 35 (ii)

In paragraph 35 (iii), second line, delete ‘2.9%’ and replace with ‘0%’.  Insert new text after ‘City of York Council element of the council tax’as follows ‘resulting in the Council being able to accept the Council Tax Freeze Grant of £1,839k.”

 

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

 

Second Liberal/Democrat Amendment

 

Cllr Ayre then moved, and Councillor Runciman seconded, the second Liberal/Democrat Group amendment to the Cabinet recommendations, as follows:

 

“Revenue Budget

In paragraph 35 (i), sub paragraph (b) at the end of the sentence add the following text ‘subject to the following amendments;

·        Reduce general reserve contribution by £79k to £171k

In paragraph 35 (i), sub paragraph (c) at the end of the sentence add the following text ‘subject to the following amendments;

·        Remove the following proposals from the savings schedule

o   CANS54/60 – Neighbourhood Management Unit

o   CANS92 – Housing Services”

 

A named vote was then requested and taken on the amendment, with the following result:

 

For	Against	Abstained
Cllr Aspden	Cllr Alexander	Cllr Barton
ClllrAyre	Cllr Barnes	Cllr Brooks
Cllr Cuthbertson	Cllr Boyce	Cllr Doughty
Cllr D’Agorne	Cllr Burton	Cllr Galvin
Cllr Firth	Cllr Crisp	Cllr Gillies
Cllr Hyman	Cllr Cunningham-Cross	Cllr Horton (Lord Mayor)
Cllr Orrell	Cllr Douglas	Cllr Richardson
Cllr Reid	Cllr Fitzpatrick	Cllr Steward
Cllr Runciman	Cllr Fraser	Cllr Watt
Cllr Taylor	Cllr Funnell
	Cllr Gunnell
	Cllr Hodgson
	Cllr Jeffries
	Cllr King
	Cllr Levene
	Cllr Looker
	Cllr McIlveen
	Cllr Merrett
	Cllr Potter
	Cllr Riches
	Cllr Scott
	Cllr Semlyen
	Cllr Simpson-Laing
	Cllr Warters
	Cllr Watson
	Cllr Williams
10	26	9

 

The above amendment was declared LOST.

 

Green Amendment

 

Councillor Taylor, then moved, and Cllr D’Agorne seconded, the following amendment to the Cabinet recommendations, on behalf of the Green Group:

 

“Capital Budget

 

In paragraph 34 (i) first line, delete ‘£187.364m’ and replace with ‘£186.554m’ and in the second line delete ‘£53.641m’ and replace with ‘£52.831m’.  At the end of the first sentence add ‘subject to the following amendments’

In paragraph 34 (i) (b) delete ‘£10.405m’ and replace with ‘£9.595m’  and delete ‘£2.595m’ and replace with ‘£2.395m’

 

In paragraph 34 (iii) second line, delete ‘£187.364m’ and replace with ‘£186.554m’ and at the end of the paragraph add ‘subject to the removal of the £200k closed cycle circuit scheme’

Revenue Budget

In paragraph 35 (i), sub paragraph (b), at the end of the sentence add the following text ‘subject to the following amendments;

·        Remove the Delivery and Innovation Fund £1,000k

·        Reduce the Welcome to Yorkshire Funding to £8k

·        Reduce the reserve contribution by £100k

·        Reduce the Treasury management & capital costs by £17k as a result of the revenue implications of the proposed capital programme changes as set out in paragraph 34

·        Add in new growth item of £17k for Cycle Training

In paragraph 35 (i), sub paragraph (c), at the end of the sentence add the following text ‘subject to the following amendments;

·        Remove the following proposals from the savings schedule

o   CANS54/60 – Neighbourhood Management Unit £51k

o   CANS92 – Housing Services £28k

o   ACES04 – Resource Allocation System £105k

o   ACES45 – Support Living £164k

o   ACES49 – Parenting & Family Intervention £10k

o   ACES02a – Fair Access to Care Services £80k

o   CSTS32 – Future Prospects £25k

o   CANS03/13 – Neighbourhood Management Unit £181k

o   CANS12 – Target Hardening £25k

o   CANS116 - removal of free black bin bags £29k

o   CANS47 – Parks & Open Spaces £42k

o   CANS96 – Park Ranger Service £30k

o   CANS86 – Trading Standards £15k

o   CSTS24 – Rights of Way £15k

o   CANS87 – Waste Services £40k

o   CSTS20 – Cycle training £26k

o   CANS32 – Beckfield Lane £100k

·        Reduce the following proposals

o   CANS02 – Ward Committees by £110k

o   ACES56 – Youth Support Services by £32k”

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

 

The original motion, on being put to the vote, was then declared CARRIED and it was

 

RESOLVED:       That the Cabinet recommendations in respect of the Capital Programme, Financial Strategy and Treasury Management Strategy Statement and Prudential Indicators be approved.