Agenda item

To consider the recommendations made by Executive, at their meeting held on 11 February 2016, in relation to:

 

a)   The Council’s Capital Programme Budget for 2016/17 to 2020/21

 

b)   The Council’s Revenue Budget proposals for 2016/17 to 2020/21and

 

c)   The Council’s Treasury Management Strategy Statement and Prudential Indicators for 2016/17 to 2020/21

 

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

 

Note:

The original budget reports to Executive, 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=8846&Ver=4

 

Councillor Steward requested the consent of Council to the alteration of the original Executive motions to incorporate the amendment previously circulated with the Council agenda papers.

 

Following receipt of Council’s consent Cllr Steward moved and Councillor Aspden seconded, the motions relating to the following proposals, as set out at pages 1 to 4 of the papers circulated at the meeting (now included in the republished agenda), in relation to:

 

a)   The Council’s Capital Programme Budget for 2016/17 to 2020/21

 

b)   The Council’s Revenue Budget proposals for 2016/17 to 2020/21and

 

c)   The Council’s Treasury Management Strategy Statement and Prudential Indicators for 2016/17 to 2020/21

 

Capital Strategy

 

32. Executive recommends that Council;

i. Agree to the revised capital programme of £180.206m that reflects a net overall increase of £28.451m (as set out in paragraph 54 table 10 and in Annex B). Key elements of this include:

 

a.   Extension of prudential borrowing funded Rolling Programme schemes totalling £4.921m as set out in table 3 and summarised in table 10;

 

b.   New schemes totalling £2.415m including an increase in prudential borrowing of £643k as set out in tables 4 & 5 and summarised in table 10;

 

c.   Extension of externally funded Rolling Programme schemes totalling £9.878m as set out in table 6 and summarised in table 10;

 

d.   An increase in Housing Revenue Account funded schemes totalling £12.009m funded from a combination of HRA balances/Right to Buy receipts of £12.009m as set out in table 7 and summarised in table 10.

 

ii. Approve the full restated programme as summarised in Annex A totalling £180.206m covering financial years 2016/17 to 2020/21 as set out in table 11 and Annex A.

 

iii. Approve the appropriation of the Housing Revenue Account shops into the General Fund as set out at paragraph 5 in the report.

 

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

 

Revenue Budget

 

33. Executive recommends that Council;

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

 

                               a.    The net revenue expenditure requirement of £117.900m

 

                               b.    A Council Tax requirement of £77.072m

 

                               c.    The revenue growth proposals as outlined in the body of the report, subject to the following amendments;

 

·   An additional £35k to fund the ongoing cost of maintenance for new litter and dog bins across the city

 

                               d.    The revenue savings proposals as outlined in Annex 2, subject to the following amendments;

 

·   Removal of saving CES9 Design and Conservation £45k on an ongoing basis

 

·   Reduction of saving CSES2 Prevention and Early Intervention Services (New Operating Model) £300k for two years until 2018/19

 

                               e.    The fees and charges proposals as outlined in Annex 4

 

                               f.      The Housing Revenue Account (HRA) budget set out in annex 5 and the HRA savings proposals set out in annex 6

 

                               g.    The dedicated schools grant proposals outlined in paragraphs 114 to 122.

 

ii)    Note that the effect of approving the income and expenditure proposals included in the recommendations would result in a 3% increase in the City of York Council element of the council tax, 2% of which would relate to the social care precept.

 

iii)  To note receipt of an additional £781k transitional grant which will support additional investment as follows;

·        An additional £35k to fund the ongoing cost of maintenance for 70 new litter and dog bins across the city

·        Removal of saving CES9 Design and Conservation £45k on an ongoing basis

 

·        Reduction of saving CSES2 Prevention and Early Intervention Services (New Operating Model) £300k for two years until 2018/19

·        Additional investment of £50k for one year to support the remodelling of bus subsidies as part of the work under CES1.

 

·        Additional investment of £150k for one year (with a further £150k in 17/18) to support the Pride in York local delivery of environmental projects, grounds maintenance and build capacity in the voluntary sector.

 

·        Additional investment of £26k for one year to ensure that substance misuse advice can continue to be offered at York Carers Centre ahead of a review and the move towards greater service integration

 

·        Additional investment of £20k for one year to support the building of greater capacity in planning enforcement work.

 

·        Additional investment of £30k for one year to support the continuation of elements of the Local Sustainable Transport Fund programme.

 

·        A one off increase of £125k in contingency to meet any further flood and drainage costs.

Reason:     To ensure a legally balanced budget is set.

 

Treasury Management Strategy Statement and Prudential Indicators

 

34.        Executive recommends that Council approve;

i.             The proposed treasury management strategy for 2016/17, including the annual investment strategy and the minimum revenue provision policy statement

ii.            The prudential indicators for 2016/17 to 2020/21 in the main body of the report

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

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

v.            The Council’s entry into the Framework Agreement and its accompanying schedules for the Municipal Bonds Agency, including the joint and several guarantee

vi.          Delegation of authority to the Director of Customer and Business Support Services as Section 151 Officer and the Assistant Director for Governance, ICT and Legal as Monitoring Officer to sign those documents, as appropriate, on behalf of the Council

vii.         Granting the Section 151 Officer delegated authority to agree amendments to the Framework Agreement as appropriate

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

 

Councillor Looker then moved and Councillor Neil Barnes seconded, an amendment to the above recommendations on behalf of the Labour Group, as follows:

 

“Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 33 of page 10 of Council papers refers):

 

In (i) sub paragraph (a) delete ‘£117.900m’ and replace with ‘£118.620m’

 

In sub paragraph (b) delete ‘£77.072m’ and replace with ‘£77.792m’

 

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

 

·        An additional £100k to provide additional investment in Mental Health services

 

·        An additional £151k to increase the gully and drain cleaning budget, including one 1FTE officer

 

·        An additional £36k to fund 1FTE Planning Enforcement Officer

 

·        An additional £50k to fund 1FTE Community Engagement Officer

 

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

·         Removal of saving CAN14 Grounds Maintenance £72k

 

·         Removal of saving CAN18 York Learning £38k

 

·         Removal of saving ASC6 Care Home Fees £68k

 

·         Removal of saving ASC8 Contracted Services £35k

 

·         Removal of saving CES3 Transport Planning £60k

 

·          Reduction in saving CES4 to reverse Respark charge increase for first car permit £20k

 

·         Reduction of saving CES1 Bus Subsidies £90k

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

 

·          Removal of saving ASC6 Care Home Fees £68k

 

·          Reduction in saving CES4 to reverse Respark charge increase for first car permit £20k

In order to decrease fees and charges by £88k

 

In paragraph 33 (ii) second line, delete ‘3%’ and replace with ‘3.99%’.

 

In paragraph 33 (iii) add at the end of the sentence; which will support additional one off investment as follows;

 

·        £100k to build capacity and support transforming care for learning disability customers

 

·        £131k to build capacity and support the new operating model for prevention and early intervention services

 

·        £150k for a Green Space Fund to improve parks and open spaces

 

·        £150k to invest in local high street environment and shopping parades in communities outside of the city centre

·        £50k to invest in Financial Inclusion Steering Group activities to support pressures on related services as result of introduction of Universal Credit by the Government

 

·        £200k to invest in one-off public health projects to offset the impact of Government cuts.”

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

 

For	Against	Abstained
Cllr Crisp (Lord Mayor)	Cllr Aspden	Cllr Hayes
Cllr N Barnes	Cllr Ayre
Cllr S Barnes	Cllr Brooks
Cllr Boyce	Cllr Carr
Cllr Cannon	Cllr Cullwick
Cllr Craghill	Cllr Cuthbertson
Cllr D’Agorne	Cllr Dew
Cllr Derbyshire	Cllr Douglas
Cllr Flinders	Cllr Doughty
Cllr Funnell	Cllr Fenton
Cllr Gunnell	Cllr Galvin
Cllr Kramm	Cllr Gates
Cllr Levene	Cllr Gillies
Cllr Looker	Cllr Jackson
Cllr D Myers	Cllr Lisle
Cllr Shepherd	Cllr Mason
Cllr Wells	Cllr Mercer
Cllr Williams	Cllr K Myers
	Cllr Orrell
	Cllr Rawlings
	Cllr Reid
	Cllr Richardson
	Cllr Runciman
	Cllr Steward
	Cllr Waller
	Cllr Warters
18	26	1

The Labour amendment was declared LOST.

 

Green Amendment

 

Councillor D’Agorne then moved, and Councillor Craghill seconded, an amendment on behalf of the Green Group.

 

“Capital Strategy

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 32 of page 9 of Council papers refers):

 

In paragraph 32 (i), first line, replace ‘£180.206m’ with ‘£180.506m’ and second line, replace ‘£28.451m’ with ‘£28.751m’

 

Under paragraph 32 (i), insert new sub paragraph:

 

(e) Include a scheme to bring Fossgate into the footstreets following further consultation, increasing prudential borrowing by £300k

 

In paragraph 34 (ii), second line, replace ‘£180.206m’ with ‘£180.506m’

 

Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 33 of page 10 of Council papers refers):

 

In (i) sub paragraph (a) delete ‘£117.900m’ and replace with ‘£120.081m’

 

In sub paragraph (b) delete ‘£77.072m’ and replace with ‘£79.253m’

 

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

·        An additional £36k to fund 1FTE York Financial Assistance Scheme (YFAS) Outreach Worker, to promote awareness and access to taking up the scheme from least well-off residents

 

·        An additional £217k to invest in an Adult Social Care (ASC) Mitigation Fund, which is to be allocated by Executive to mitigate budget reductions in the ASC budget e.g. care budgets, support for people with learning disabilities, day care services and residential fees

 

·        An additional £36k to fund 1FTE External Funding Officer to generate income across the Council from external funding

 

·         An additional £24k to support the revenue cost of additional prudential borrowing (£300k capital amendment)

 

·        An additional £100k investment in a Public Health Investment Fund

 

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

·        Removal of saving CAN1, CAN2 and CAN3 Homelessness support £35k

 

·        Removal of saving CAN16 Tree Service £25k

 

·        Removal of saving CES3 Transport Planning £60k

 

·        Removal of saving CES9 Design and Conservation £45k

 

·        Removal of saving CBSS11 YFAS and focus budget on supporting less well off residents to pay their council tax costs £200k

 

·        Removal of saving CSES7 The Glen Respite Care Centre £50k

 

·        Removal of Public Health Savings CAN23 to CAN29 £665k

 

·        Reduction of saving CSES2 Prevention and Early Intervention £491k

 

·        Reduction of saving CES4 to reverse charge increase for first car permit £20k

 

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

 

·        Reduction of saving CES4 to reverse charge increase for first car permit £20k

·        Reduce the Minster badge permit fee to £15 per annum

 

·        Increase the evening visitor car parking charge to £3

 

In order to increase fees and charges by a net amount of £3k

 

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

 

·        Deferral of saving HRA2 Housing Repairs general maintenance budget £75k

 

In paragraph 33 (ii) second line, delete ‘3%’ and replace with ‘6%’.

Insert new text after the end of the paragraph as follows ‘This would result in the Council having to hold a referendum.’

 

In paragraph 33 (iii) add at the end of the sentence; which will support additional one off investment as follows;

 

·        £155k to cover the cost of a referendum and rebilling as a result of proposing a basic Council tax increase (excluding social care precept) higher than 2%

 

·        £76k to set up a contingency fund over two years to support savings proposals under development in CAN14 (Ground Maintenance)

 

·        £375k to set to set up a contingency fund over two years to support savings proposals under development in CSES2 (Prevention and Early Intervention) to ensure that any new operating model does not reduce service levels

 

·        £25k to defer saving CAN19 (Parking Services) for one year  until  the parking review is complete

 

·        £40k to defer saving CSES 5 (Home to School Transport) for one year  until  the review is complete

 

·        £20k to invest in a part-time post to complete the Tree Strategy

 

·        £54k to invest in a feasibility study and implementation plan for a Renewable Energy Company,  to reduce energy bills for the Council itself and for York residents

 

·        £36k to invest in 1FTE Affordable Warmth/ Energy Poverty Officer, to draw in funds to improve insulation in public and private properties, reduce energy bills and tackle fuel poverty.”

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

For	Against	Abstained
Cllr Craghill	Cllr Aspden	Cllr Crisp (Lord Mayor)
Cllr D’Agorne	Cllr Ayre	Cllr N Barnes
Cllr Kramm	Cllr Brooks	Cllr S Barnes
	Cllr Carr	Cllr Boyce
	Cllr Cullwick	Cllr Cannon
	Cllr Cuthbertson	Cllr Derbyshire
	Cllr Dew	Cllr Flinders
	Cllr Douglas	Cllr Funnell
	Cllr Doughty	Cllr Gunnell
	Cllr Fenton	Cllr Hayes
	Cllr Gates	Cllr Levene
	Cllr Galvin	Cllr D Myers
	Cllr Gillies	Cllr Looker
	Cllr Jackson	Cllr Shepherd
	Cllr Lisle	Cllr Wells
	Cllr Mason	Cllr Williams
	Cllr Mercer
	Cllr K Myers
	Cllr Orrell
	Cllr Rawlings
	Cllr Reid
	Cllr Richardson
	Cllr Runciman
	Cllr Steward
	Cllr Waller
	Cllr Warters
3	26	16

 

The Green amendment was declared LOST.

 

A named vote was then taken on the original motion, with the following result:

 

For	Against	Abstained
Cllr Aspden	Cllr N Barnes	Cllr Crisp (Lord Mayor)
Cllr Ayre	Cllr S Barnes	Cllr Hayes
Cllr Brooks	Cllr Boyce
Cllr Carr	Cllr Cannon
Cllr Cullwick	Cllr Craghill
Cllr Cuthbertson	Cllr D’Agorne
Cllr Dew	Cllr Derbyshire
Cllr Douglas	Cllr Flinders
Cllr Doughty	Cllr Funnell
Cllr Fenton	Cllr Gunnell
Cllr Galvin	Cllr Kramm
Cllr Gates	Cllr Levene
Cllr Gillies	Cllr Looker
Cllr Jackson	Cllr D Myers
Cllr Lisle	Cllr Shepherd
Cllr Mason	Cllr Wells
Cllr Mercer	Cllr Williams
Cllr K Myers
Cllr Orrell
Cllr Rawlings
Cllr Reid
Cllr Richardson
Cllr Runciman
Cllr Steward
Cllr Waller
Cllr Warters
26	17	2

 

The original motion was then declared CARRIED and it was

 

Resolved:  That the Executive recommendations, in respect of the Capital Strategy, Financial Strategy and Treasury Management Strategy Statement and Prudential Indicators be approved. ^1.