Agenda item

To consider the recommendations made by Cabinet, at their meeting held on 10 February 2015, in relation to:

 

a)          The Council’s Capital Programme Budget for 2015/16 – 2019/20

b)          The Council’s Revenue Budget proposals for 2015 to 2020 and

c)           The Council’s Treasury Management Strategy Statement and Prudential Indicators for 2015/16 – 2019/20

 

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

 

Note:

The original budget reports to Cabinet, 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=8333&Ver=4

 

Councillor Williams moved, and Councillor Simpson-Laing seconded, the recommendations of the Cabinet, as set out in paragraphs 34 to 36 of the report at pages 1 to 3 of the additional Council papers, circulated prior to the meeting and republished with the online agenda, as follows, in relation to:

 

a)      The Council’s Capital Programme Budget for 2015/16 – 2019/20

b)      The Council’s Revenue Budget proposals for 2015 to 2020 and

c)      The Council’s Treasury Management Strategy Statement and Prudential Indicators for 2015/16 – 2019/20

 

“Capital Strategy

34.    Cabinet recommends that Council;

             i.        Agree to the revised capital programme of £187.019m that reflects a net overall increase of £44.107m (as set out in paragraph 55 table 7 and in Annex B). Key elements of this include:

a.   Extension of prudential borrowing funded Rolling Programme schemes totalling £5.970m as set out in table 2 and summarised in table 7;

 

b.   New schemes totalling £8.763m including an increase in prudential borrowing of £5.538m as set out in table 3 and summarised in table 7;

 

c.   New externally funded schemes totalling £15.140m as set out in table 4 and summarised in table 7;

 

d.   An increase in HRA funded schemes totalling £14.234m funded from a combination HRA balances/Right to Buy receipts of £14.234m as set out in table 5 and summarised in table 7 subject to the approval of the Director of CBSS in relation to the IT investment (£1.810m).

 

            ii.        Approve the full restated programme as summarised in Annex A totalling £187.019m cover financial years 2015/16 to 2019/20 as set out in table 8 and Annex A

 

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

Revenue Budget

35.    Cabinet recommends that Council;

             i.        approve the budget proposals outlined in the Financial Strategy report and, in particular;

 

                               a.    The net revenue expenditure requirement of £119.760m, having been adjusted by a further £162k, following receipt of the final grant settlement

 

                               b.    A Council Tax requirement of £72.736m

 

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

 

                               d.    The additional revenue growth of £162k, as a result of the final grant settlement

 

                               e.    The revenue savings proposals as outlined in Annex 3a to 3d

 

 

                               f.      The fees and charges proposals as outlined in Annex 5

 

                               g.    The Housing Revenue Account budget set out in Annex 6

 

                               h.    The dedicated schools grant proposals outlined in paragraphs 120 to 128.

 

            ii.        Note that the effect of approving the income and expenditure proposals included in the recommendations would result in no increase in the City of York Council element of the council tax.

 

Reason: To ensure a legally balanced budget is set.

Treasury Management Strategy Statement and Prudential Indicators

36.    Cabinet recommends that Council approve;

             i.        The proposed treasury management strategy for 2015/16, including the annual investment strategy and the minimum revenue provision policy statement

            ii.        The prudential indicators for 2015/16 to 2019/20 in the main body of the Cabinet report

           iii.        The specified and non specified investments schedule (Annex B to the Cabinet report)

          iv.        The scheme of delegation and the role of the Section 151 officer (Annex D to the Cabinet report)

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

 

 Conservative Amendment

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

“Capital Strategy

 

In relation to the Cabinet’s recommendations on the capital strategy (paragraph 34 of page 10 of Council papers refers):

 

In paragraph 34 (i), first line, replace ‘£187.019m’ with ‘£186.884m’ and second line, replace £44.107m’ with ‘£43.972m’

 

Under paragraph 34 (i), insert new sub paragraphs:

 

(e) Remove the Congestion Commission Scheme from the Economic Infrastructure Fund (EIF), bringing the corresponding amount of New Homes Bonus into the revenue budget and reducing the value of the programme by £135k

 

In paragraph 34 (ii), second line, replace ‘£187.019m’ with ‘£186.884m’

 

Revenue Budget

 

In relation to the Cabinet’s recommendations on the revenue budget (paragraph 35 of page 11 of Council papers refers):

 

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

 

·        An additional £32k to provide 1 additional green waste collection round

 

·        An additional £69k to increase the gully and drain cleaning budget

 

·        An additional £17k to fund 20 new salt bins and associated costs for 3 years

 

·        An additional £35k to fund 1FTE Planning Enforcement Officer

 

·        An additional £56k to increase the winter maintenance budget

 

·        An additional £360k to increase the highways maintenance budget 

 

·        An additional £950k budget available from  New Homes Bonus as a result of savings taken

 

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

·         Reduce the contingency from £812k to £650k to save £162k

 

·          Remove the Congestion Commission Scheme from the Economic Infrastructure Fund (EIF) and bring the corresponding amount of New Homes Bonus into the revenue budget to save £135k

 

·          Reduce trade union budgets, including accommodation costs to save £76k

 

·         Reduce Marketing & Communications budget to save £100k

 

·         Remove one off growth funded by New Homes Bonus and bring the corresponding amount of New Homes Bonus into the revenue budget to save £1,375k;

o   Voluntary Sector Capacity Building £200k

o   Adult Social Care Community Fund £300k

o   ASB Hub Enforcement £300k

o   Reducing Bus Fares (Young People) £100k

o   Environmental Improvement Fund £250k

o   Winter Maintenance Fund £225k

 

·        Reduction of Prioritisation Saving (Annex 3b):

o   CBSS – Apprentices: Reduce saving from £115k to £51k

 

·        Reduction of Transformation Savings (Annex 3c):

o   Children’s & Youth Services – Reduce saving by £200k to retain Castlegate Services on existing premises

o   Place Based Services – Reduce by £65k to reduce reductions to litter bins and street cleansing.”

In accordance with the regulations a named vote was then taken in relation to the Conservative amendment relating to the setting of the budget, with the following result:

 

For	Against	Abstained
Cllr Barton	Cllr Alexander	Cllr Gillies (Lord Mayor)
Cllr Brooks	Cllr Aspden	Cllr Warters
Cllr Douglas	Cllr Ayre	Cllr Watson
Cllr Doughty	Cllr Barnes
Cllr Galvin	Cllr Boyce
Cllr Healey	Cllr Burton
Cllr Richardson	Cllr Crisp
Cllr Steward	Cllr Cunningham
Cllr Wiseman	Cllr Cuthbertson
	Cllr D’Agorne
	Cllr Firth
	Cllr Fitzpatrick
	Cllr Fraser
	Cllr Funnell
	Cllr Gunnell
	Cllr Hodgson
	Cllr Horton
	Cllr Hyman
	Cllr King
	Cllr Levene
	Cllr Looker
	Cllr McIlveen
	Cllr Merrett
	Cllr Orrell
	Cllr Potter
	Cllr Reid
	Cllr Riches
	Cllr Runciman
	Cllr Scott
	Cllr Semlyen
	Cllr Simpson-Laing
	Cllr Taylor
	Cllr Waller
	Cllr Watt
	Cllr Williams
9	35	3

 

The Conservative amendment was declared LOST.

 

Liberal Democrat Amendment

Councillor Aspden then moved, and Councillor Reid seconded, anamendment on behalf of the Liberal/Democratic Group.

“Capital Strategy

 

In relation to the Cabinet’s recommendations on the capital strategy (paragraph 34 of page 10 of Council papers refers):

 

In paragraph 34 (i), first line, replace ‘£187.019m’ with ‘£175.063m’ and second line, replace £44.107m’ with ‘£32.151m’

 

In paragraph 34 (d), first line, replace ‘£14.234m’ with ‘£14.484m’ and third line replace ‘£14.234m’ with ‘£14.484m’.

 

Under paragraph 34 (i), insert new sub paragraphs:

 

(e) Increase expenditure on HRA funded schemes by £250k to fund improvements to Council House windows, improved car parking facilities and the resurfacing of some car parks.

 

(f) Reduce borrowing and expenditure totalling £11.386m related to the following existing schemes currently within the Economic Infrastructure Fund (EIF):

 

·        £9.0m related to the Infrastructure Investment Plan

·        £1.811m related to Reinvigorate York

·        £75k related to Arts Barge

·        £500k related to the Digital and Media Arts Hub

 

(g) Remove the following schemes from the Economic Infrastructure Fund (EIF), bringing the corresponding amount of New Homes Bonus into the revenue budget and reducing the value of the programme by £820k:

 

·        £120k Infrastructure Investment Plan

·        £500k Infrastructure Investment Plan for growth

·        £50k Promoting York

·        £150k Tour De Yorkshire (as funded elsewhere)

 

In paragraph 34 (ii), second line, replace ‘£187.019m’ with ‘£175.063m’

 

Revenue Budget

 

In relation to the Cabinet’s recommendations on the revenue budget (paragraph 35 of page 11 of Council papers refers):

 

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

 

·        A reduction of £865k in Funding the Capital Programme growth item as a result of the revenue implications of the proposed capital strategy changes to the Economic Investment Fund (EIF) (as set out in the proposed amendment to paragraph 34 (i) (f) and (g))

 

·        Removal of the £500k strategic transport fund growth item, as 2015/16 expenditure will be funded from the Venture Fund.

[Note this is a one off saving and the allocation from the fund is not on an invest to save basis, therefore this allocation will not be repaid to the fund]

 

·        £100k extra Investment into Children & Young People’s Services to enhance work with community partners, the Shine magazine and activities for young people

 

·        An additional £50k funding into ‘narrowing the gap’ support

 

·        An additional £50k investment in street lighting

 

·        An additional £50k to increase recycling promotion budget

 

·        An additional £50k to increase investment in Economic Development to support small businesses

 

·        An additional £64k to provide 2 additional green waste collection rounds

 

·        An additional £606k to establish a Community Fund Budget and increase investment in Ward Committees

 

·        An additional £100k to increase the gully cleaning budget

 

·        An additional £35k to fund 1FTE Planning Enforcement Officer

 

·        An additional £35k to create a new post to help with mental health issues. This role will help to ensure housing is properly utilised, tenants are supported, and tenancies are effectively maintained and managed.

 

·        An additional £5k to provide support to ensure the completion of the local list to protect heritage buildings across York.

 

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

·         Reduce the contingency from £812k to nil to save £812k

 

·          Reduce the following schemes from the Economic Infrastructure Fund (EIF) and bring the corresponding amount of New Homes Bonus into the revenue budget to save £820k

o   £120k Infrastructure Investment Plan

o   £500k Infrastructure Investment Plan for growth

o   £50k Promoting York

o   £150k Tour De Yorkshire (as funded elsewhere)

·        Restructure senior management to save £165k

 

·          Reduce trade union budgets, including accommodation costs to save £76k

 

·         Restructure Marketing & Communications Team to save £50k

 

·         Reduction of Efficiency Savings (Annex 3a):

o   CES514 – Road Safety (school crossing patrol) £13k

o   CANS12 – Community Centres £70k

o   CANS511 – Healthwatch £28k

o   CANS560 – Environment Protection £5k

o   H&W407 – EI&P Floating Support Scheme: Reduce saving from £63k to £31k

 

·         Reduction of Prioritisation Savings (Annex 3b):

o   CSES – Early Years Graduate Leader Fund: Reduce saving from £69k to £34k

o   CES – Highways Maintenance £300k

o   CANS – Support to External Organisations: Reduce saving from £200k to £125k to safeguard key grants

o   CBSS – Apprentices £115k

 

·         Reduction of Transformation Savings (Annex 3c):

o   Children’s & Youth Services – Reduce by £400k, to ensure:

i) The protection and enhancement of Children’s Centres services - £200k

ii) The protection and enhancement of advice, guidance and counselling services - £200k

o   Place Based Services – Reduce by £1,070k to ensure the first green bin collection remains free and to rule out further cuts to litter bins and street cleansing

 

In sub paragraph (g) add at the end of the sentence ‘subject to the following amendment’;

 

·        Additional £250k expenditure to fund estate regeneration including the following schemes: Removal of weeds, cutting back overgrown trees and hedges, repairs to communal areas and signs, audit and repair of fencing.”

A named vote was then taken on the Liberal/Democrat amendment, with the following result:

 

For	Against	Abstained
Cllr Aspden	Cllr Alexander	Cllr Gillies (Lord Mayor)
Cllr Ayre	Cllr Barnes	Cllr Warters
Cllr Cuthbertson	Cllr Barton
Cllr Firth	Cllr Boyce	Cllr Watson
Cllr Hyman	Cllr Brooks
Cllr Orrell	Cllr Burton
Cllr Reid	Cllr Crisp
Cllr Runciman	Cllr Cunningham
Cllr Waller	Cllr D’Agorne
	Cllr Doughty
	Cllr Douglas
	Cllr Fitzpatrick
	Cllr Fraser
	Cllr Funnell
	Cllr Galvin
	Cllr Gunnell
	Cllr Healey
	Cllr Hodgson
	Cllr Horton
	Cllr King
	Cllr Levene
	Cllr Looker
	Cllr McIlveen
	Cllr Merrett
	Cllr Potter
	Cllr Richardson
	Cllr Riches
	Cllr Scott
	Cllr Semlyen
	Cllr Simpson-Laing
	Cllr Steward
	Cllr Taylor
	Cllr Watt
	Cllr Williams
	Cllr Wiseman
9	35	3

 

The Liberal Democrat amendment was declared LOST.

 

Labour Independent Amendment

Councillor King then moved, and Councillor Scott seconded, anamendment to the Revenue Budget, on behalf of the Labour Independent Group.

“Revenue Budget

 

In relation to the Cabinet’s recommendations on the revenue budget (paragraph 35 of page 11 of Council papers refers):

 

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

 

·        An additional £240k to be paid into reserves as a contribution towards maintaining Yearsley over the next 4 years

 

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

 

·        Subject to Council receiving and considering recommendations from the Independent Remuneration Panel, with their review being commissioned as a matter of urgency;

 

·        Reduce special responsibility allowance (SRAs) to save £42k

1.   Deputy Leader of the Council to cabinet member SRA

2.   Remove Deputy Leader of the opposition SRA

3.   All SRAs reduced by 25%

 

·        Remove telephone and internet allowance for Councillors and replace with a £300 fixed allowance per annum to save £4k

 

·        Remove Councillor travel expenses for travel within the City boundary (including taxis booked on the CYC system) to save £1k

 

·        Remove 1 Director post to save £115k

 

·        Remove 3 Assistant Director Posts to save £288k

 

·        Reduce Trade Union facility time by 50% to save £31k

 

·        Reduce consultancy and external legal advice to save £30k

 

·        Reduce the contingency from £812k to £759k to save £53k

 

·        Reduction of Efficiency Savings (Annex 3a):

o   CANS12 – Community Centres. Reduce saving from £70k to £47k to maintain subsidy to Burton Stone Community Centre

 

·        Reduction in Transformation Savings (Annex 3c):

o   Children’s & Youth Services – Reduce by £200k to keep existing Castlegate services in operation at existing premises

 

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

 

·        Reduce resident parking permit for first vehicle by 5%

 

·        Remove charge for pre-planning application for residents

 

·        Reduce evening parking charges for CYC residents to £1 in Castle and Bootham car parks

 

In order to reduce fees and charges by £100k.”

 

A named vote was then taken on the Labour Independent amendment, with the following result:

 

For	Against	Abstained
Cllr King	Cllr Alexander	Cllr Gillies (Lord Mayor)
Cllr Scott	Cllr Barnes	Cllr Aspden
	Cllr Barton	Cllr Ayre
	Cllr Boyce	Cllr Cuthbertson
	Cllr Brooks	Cllr Firth
	Cllr Burton	Cllr Hyman
	Cllr Crisp	Cllr Reid
	Cllr Cunningham	Cllr Runciman
	Cllr D’Agorne	Cllr Waller
	Cllr Doughty	Cllr Warters
	Cllr Douglas	Cllr Watson
	Cllr Fitzpatrick
	Cllr Fraser
	Cllr Funnell
	Cllr Galvin
	Cllr Gunnell
	Cllr Healey
	Cllr Hodgson
	Cllr Horton
	Cllr Levene
	Cllr Looker
	Cllr McIlveen
	Cllr Merrett
	Cllr Orrell
	Cllr Potter
	Cllr Richardson
	Cllr Riches
	Cllr Semlyen
	Cllr Simpson-Laing
	Cllr Steward
	Cllr Taylor
	Cllr Watt
	Cllr Williams
	Cllr Wiseman
2	34	11

 

The Labour Independent amendment was declared LOST.

 

Green Amendment

Councillor D’Agorne then moved and Councillor Taylor seconded, an amendment to the Revenue Budget on behalf of the Green Group, as follows:

“Revenue Budget

 

In relation to the Cabinet’s recommendations on the revenue budget (paragraph 35 of page 11 of Council papers refers):

 

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

 

·        Increase funding for design and conservation £35k

 

·        One off investment in city centre bus improvements and 6 month trial of free service serving the station and hospital £150k

 

·        One off investment to support front line services in Children’s Centres whilst the 'Delivering differently in Neighbourhoods Project' is in progress £100k

 

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

·         Reduce the contingency from £812k to £449k to save £363k

 

·         Use the balance remaining on the Delivery and Innovation Fund (DIF) – one off saving of £228k

·         Reduce the winter maintenance fund from £280k to £258k to save £22k (one off)

 

·        Removal of Efficiency Savings (Annex 3a):

o   CANS17 – Library Services £50k

o   CES514 – Road Safety (school crossing patrol) £13k

o   CES 515 – Road Safety Partnership £22k

 

·        Removal of Prioritisation Saving (Annex 3b):

o   CBSS – Apprentices £115k

 

·        Reduction in Transformation Savings (Annex 3c):

o   Children’s & Youth Services – Reduce by £200k to keep existing Castlegate services in operation at existing premises while alternative options are explored

 

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

 

·        Extend evening parking rates at standard stay car parks for ‘regular user discount permit holders’ to commence one hour earlier from 5pm on Friday and Saturday evenings

 

·        Increase season ticket car parking charges by 4%

 

·        Increase short and standard stay car parking rates by 10p/hour (excludes ‘regular user discount permit holders’)

 

·        Increase on street car parking charges by 10p/hour

 

In order to increase fees and charges by £72k

 

After sub paragraph (h) insert new sub paragraph (i)

 

i.             Earmark unallocated future New Homes Bonus up to £300,000 pa for up to 5 years, from 2016/17 onwards, to maintain the Yearsley Pool.”

 

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

 

For	Against	Abstained
Cllr Alexander	Cllr Aspden	Cllr Gillies (Lord Mayor)
Cllr Barnes	Cllr Ayre
Cllr Boyce	Cllr Barton
Cllr Burton	Cllr Brooks
Cllr Crisp	Cllr Cuthbertson
Cllr Cunningham	Cllr Doughty
Cllr D’Agorne	Cllr Douglas
Cllr Fitzpatrick	Cllr Firth
Cllr Fraser	Cllr Galvin
Cllr Funnell	Cllr Healey
Cllr Gunnell	Cllr Hyman
Cllr Hodgson	Cllr King
Cllr Horton	Cllr Orrell
Cllr Levene	Cllr Reid
Cllr Looker	Cllr Richardson
Cllr McIlveen	Cllr Runciman
Cllr Merrett	Cllr Scott
Cllr Potter	Cllr Steward
Cllr Riches	Cllr Waller
Cllr Semlyen	Cllr Warters
Cllr Simpson-Laing	Cllr Watson
Cllr Taylor	Cllr Wiseman
Cllr Watt
Cllr Williams
24	22	1

 

The Green amendment was declared CARRIED.

 

A named vote was then taken on the original motion, as amended by the Green amendment above, with the following result:

 

For	Against	Abstained
Cllr Alexander	Cllr Gillies  (Lord Mayor)
Cllr Barnes	Cllr Aspden
Cllr Boyce	Cllr Ayre
Cllr Burton	Cllr Barton
Cllr Crisp	Cllr Brooks
Cllr Cunningham	Cllr Cuthbertson
Cllr D’Agorne	Cllr Doughty
Cllr Fitzpatrick	Cllr Douglas
Cllr Fraser	Cllr Firth
Cllr Funnell	Cllr Galvin
Cllr Gunnell	Cllr Healey
Cllr Hodgson	Cllr Hyman
Cllr Horton	Cllr Orrell
Cllr King	Cllr Reid
Cllr Levene	Cllr Richardson
Cllr Looker	Cllr Runciman
Cllr McIlveen	Cllr Scott
Cllr Merrett	Cllr Steward
Cllr Potter	Cllr Waller
Cllr Riches	Cllr Watson
Cllr Semlyen	Cllr Warters
Cllr Simpson-Laing	Cllr Wiseman
Cllr Taylor
Cllr Watt
Cllr Williams
25	22	0

 

The original motion, as amended by the above Green amendment was then declared CARRIED and it was

 

Resolved:           That the Cabinet recommendations, as amended by the Green amendment above, in respect of the Capital Programme, Financial Strategy and Treasury Management Strategy Statement and Prudential Indicators be approved. ^1.