Agenda item

Setting the Budget for 2007/2008

Meeting of Budget, Council, Wednesday, 21 February 2007 6.30 pm (Item 61.)

Minutes:

Councillor Steve Galloway moved, and Councillor Waller seconded, the recommendations of the Executive in relation to the Council’s Budget for 2007/08, including the Revenue Budget, the Fees and Charges and Housing Revenue Account recommendations, the Capital Programme Budget and the Treasury Management Strategy Statement and Prudential Indicators.

Councillor Merrett then moved the following amendments to the Executive recommendations, the first of which was seconded by Councillor Potter and the second by Councillor Looker:

1. Amendment to Executive Minute 140 (Revenue Budget)

Under “RECOMMENDED”:

Paragraph a)

Replace the figure “£104.538m” with £104.753m”.

Delete the words “as set out in Table 1 at paragraph 15”

Paragraph b)

Add the following words at the end:

“Subject to the inclusion of the following additional HRA growth items totaling £52k:

Additional Post of Community Adviser £20k

Additional Funding to Residents' Associations £32k

To be funded through a reduced revenue contribution to capital schemes from £912k to £860k.”

Paragraph d)

Add the following words at the end:

“Subject to the addition of the following new growth areas, totaling £812k:

LPG1	Introduce one additional round to begin the roll out of door step recycling to terraced areas	£74k
LPG2	Improve Street Cleaning by introducing an additional cleaning team and funding more anti graffiti work.	£70k
LPG3	Tackling anti-social behaviour and providing reparation for offences	£50k
LPG4	Improve CCTV monitoring by introducing an additional monitoring room post for Fridays, Saturdays and Sundays to help tackle city centre violent crime	£18k
LPG5	Restore previous reductions in YOT funding.	£10k
LPG6	Restore previous reductions in Safer York Partnership Grant funding.	£28k
LPG7	Improve youth provision through the purchase of an additional Urbie bus (£40k one off, £10k on going).	£50k
LPG8	Cut Respark fees for first vehicle and visitor passes by 25%.	£100k
LPG9	Introduce free evening parking for York residents from 1^st September 2007.	£35k
LPG10	Restore previous reduction in Ward Committee funding	£80k
LPG11	Restore previous reduction in Future Prospects funding	£18k
LPG12	Restore the Scrutiny Manager post deleted by Urgency Committee on 18 August 2006.	£16k
LPG13	Replacement funding for Children's Trust Manager Post due to termination of fixed term government funding.	£40k
LPG14	Address impact of inflation on CE's budget for Voluntary sector	£18k
LPG15	Address impact of inflation on HASS's budget for Voluntary sector	£13k
LPG16	Address impact of inflation on LCCS's budget for Voluntary sector	£2k
LPG17	Fund OCAY £10k and Older People’s Assembly £5k	£15k
LPG18	One off pump priming funding to enable the roll out of a WiFi CCTV system to cover streets in nightclub area and encourage matching business contributions	£25k
LPG19	One off funding to enable the production of a 21^st Century leisure facilities strategy, including incorporation into the LDF as a basis for securing future developer contributions.	£25k
LPG20	One off pump priming funding to lever in additional support for the introduction of further alleygating	£50k
LPG21	One off pump priming to pilot wider community use of schools.	£50k
LPG22	One off funding to enable the production of a new climate change/environment strategy for the City	£25k

And subject also to the deletion of the following:

CXG04

Unachieved saving in 2006/07 re changes to recruitment advertising.

£52k

Paragraph f)

Add the following words at the end:

“Subject to rejecting the following saving proposals, totalling £82k:

CXS02	Not to create a Safer City Co-ordinator	£35k
CXS13	To reduce the core skills training budget by 20%	£2k
CSS17	Development Control – Reduction in levels of consultation	£17k
HAS4	Combine New Horizons and Community Base	£28k

inserting the following new savings, totalling £624k:

LSP1	A reduction in Resources of one Assistant Director	£34k
LSP2	Savings in Neighbourhood Services as the result of DSO/DEDS client amalgamation	£62k
LSP3	Management efficiencies in City Strategy	£30k
LSP4	LCCS as a result of the current senior management departures and the proposed funding of the Children's Trust manager.	£40k
LSP5	Additional net income target for Neighbourhood Services arising from additional repair work for external bodies.	£25k
LSP6	Negotiate new Park and Ride contract to deliver cash saving.	£100k
LSP7	Reintroduce historic proposals for City Centre JC Deceaux contract for city centre/ bus shelter advertisements	£75k
LSP8	Cut private street adoption officer	£22k
LSP9	Increase number of street trader licences	£30k
LSP10	Reduce parks and open spaces maintenance.	£38k
LSP11	Reduce contingency fund	£100k
LSP12	Remove uncommitted element of double taxation provision	£8k
LSP13	Review staff travel expenditure to identify savings through more cost effective and efficient practices.	£50k
LSP14	Replace EMAPs with a revised structure for the devolution of power to Executive Managers and Directors combined with enhanced Director: Executive Member liaison requirements	£10k

and the adoption of the following alternate saving proposals identified at Annex 5, totalling £13k:

RSS25	Revised date for National Non-Domestic Rate Direct Debits	£6k
RSS26	Revised date for Council Tax Direct Debits	£7k

Delete the first bullet point under f) and replace with the following at a cost of £10k:

Debt Restructure (TM02) from £146k to £136k to reflect income lost through the proposed additional use of reserves in 2007/08.

Paragraph g)

In the first bullet point, replace the figure “£1.312” with “£1.527m”.

Paragraph i)

At the end of the paragraph, add “Subject to the following amendments:

ResPark Passes:

Household Permit (Standard) £66.00

Household Permit (Standard), Quarterly Charge £21.75

Visitor (Standard) £0.80

Car Parking Charges (to apply from 1^st September 2007)

Resident Evening Charge (6.00pm to 8.00am) - Short Stay Car Parks Free

Resident Evening Charge (6.00pm to 8.00am) - Standard Stay Car Parks Free

Resident Evening Charge (6.00pm to 8.00am) - On Street Parking Free”

2. Amendment to Executive Minute 141 (Capital Programme)

Under “RECOMMENDED”:

Paragraph c)

In line 1, delete the words “York Pools Scheme and” and add the following text at the end “The York Pools scheme to be progressed with the additional aims of providing a six lane pool at Oaklands and securing a pool at the Kent Street site, through the following actions:

An additional £250k to be included in the capital programme to provide a sixth lane at the new Oaklands pool, funded by prudential borrowing
The Kent Street coach park element of the current site disposal to be discontinued, with any net income from this temporary retention being retained to help fund the costs of the York Pools Scheme.
The £2m funding currently earmarked for a University Pool to be retained by the council and allocated to the capital programme in 2010/11 for pump priming a pool development at the Kent Street site.”

Paragraph e)

Replace the figure ‘£250k’ with “£1.862m”.

Paragraph f)

Delete all text after the phrase “Annex 6” and replace with “subject to the amendment of item 9 (Kent Street Coach Park) to reflect the retention of Kent Street Coach Park, and the deletion of the 6^th (Balfour Street Play Area) and 21^st (Leeman Road Bowling Green) items listed under ‘Usable Capital Receipts Previously Approved for Sale’. The impact of which to be met by future additional/enhanced receipts and prudential borrowing.”

REASON

At the end of the reason for the recommendations, add “and to provide the opportunity for the council to develop a sustainable scheme for the re-establishment of city centre swimming provision at the Kent Street site to serve the centre and south of the city .”

At the conclusion of the debate on the above amendments, the Lord Mayor announced her intention to take a separate vote on each amendment and indicated that the vote on the first amendment (Revenue Budget) would be split, to enable those Members who had declared prejudicial interests in the proposals that related to Respark permits to participate in the vote on the remaining parts of the amendment.

The first of the above amendments, in relation to the Revenue Budget (excluding the Respark proposals), was then put to the vote and was declared LOST.

Those Members who had declared a prejudicial interest in the Respark permit proposals having left the Council Chamber, the remaining part of the first amendment was put to the vote and was declared LOST.

The second of the above amendments, in relation to the Capital Budget, was then put to the vote and was also declared LOST.

[At this point, the Lord Mayor moved, under Standing Order 1(c), that the time allowed for the meeting be extended to 10:15 pm to enable the remaining business to be dealt with. This having been agreed by all Members, the meeting continued].

Councillor D’Agorne moved, and Councillor Hill seconded, the following amendment to the Executive recommendations in relation to the Revenue Budget:

Green Amendment to Executive Minute 140 (Revenue Budget)

Under “RECOMMENDED”:

Paragraph d)

Add the following words at the end:

“and subject:

(i) to the inclusion of the following new one-off investments in services, totalling £21k:

GGP1	One year allocation of funding to establish the practical issues and demand for St Georges Toilets to be opened as a year round facility. (re-investment of savings from closure of Kent St toilets nearby)	£17K
GGP2	One year pump priming for the enhanced promotion of community use of leisure facilities at school sites in areas previously served by the Barbican	£4k

(ii) to the following reductions in proposed growth, totalling £80k:

LCCS2	Contribution to 2010 Mystery Play to be reduced from £20k to £10k per annum	£10k
NS6	Waste Strategy development to be reduced from £250k to £230k per annum	£20k
CSG02	York Central/British Sugar Area Action Plan to be reduced in 2007/08 from £75k to £50k	£25k
CSG04	York Races Traffic Management contribution to be reduced from £30k to £5k per annum	£25k

Paragraph f)

Add the following words at the end:

“Subject:

(i) to reinstating the following savings, totalling £30k:

CHS07	Future Prospects - maintain funding in line with inflation for enrolment service	£2k
CHS08	Adult Education Centre closure - keep all existing centres open	£5k
LCS02	Halt further reduction in funding to Stagecoach Theatre and Yorkshire Film Archive	£4k
LCS03	Maintain policy of waiving charge for use of leisure land for charitable events	£3k
LCS10	Swimming pool Sunday evening/ bank holiday - maintain current hours (and promote use at these times)	£2k
CSS19	Countryside management funding - retain current level	£2k
CXS07	Staff survey focus groups - retain current level	£4k
CXS14	Stress counselling for staff - retain current level	£8k

(ii) to reducing the following proposed savings, totalling £41k:

CSS01	Transport planning section - restructure to safeguard one of the two fte posts, changes saving from £46k to £23k.	£23k
CSS11	Network management - Public Rights of Way Asst - retain 0.5fte post	£10k
CHS09	Music in schools - maintain tuition fees at current level plus inflation, reducing the saving from £35k to £27k.	£8k

and (iii) inserting the following new savings, totalling £12k:

GSP1	Income to be generated through sponsorship and alternative funding for salt bins	£5k
GSP2	A new annual Charge for Members car parking permits	£7k

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

The original motion, as proposed by Councillor Steve Galloway was then put to the vote and was declared CARRIED and it was

RESOLVED: (i) That the Executive’s recommendations in relation to the revenue budget proposals for 2007/2008 be approved, as outlined in Executive minute 140, at agenda item 5(a) (page 1 of the Council papers) and with reference to the Revenue Budget report circulated to all Members, and in particular:

a) The net revenue expenditure requirement for 2007/08 of £104.538m, as set out in Table 1 at paragraph 15;

b) The Housing Revenue Account proposals outlined in Annex 10;

c) The Dedicated Schools Grant proposals outlined from paragraph 78 onwards;

d) The revenue growth proposals outlined in Annex 3, which include the post-EMAP amendments detailed at paragraph 42 plus:

· Investing an additional £40k into increased investment in CCTV allowing the extension of provision into priority areas;

e) To allow the Chief Executive, if required, to utilise in 2006/07 £50k of the proposed £215k budget for the 2007/08 elections;

f) The revenue savings proposals for 2007/08 outlined in Annex 4, whilst:

· Increasing TMS 02 (Debt Restructure) from £100k in 2007/08 to £146k, to reflect the one-off beneficial impact of recent changes in interest rates

· Deleting CXS06 (Reductions to the Messenger Service, £6k)

· Replacing CSS20 (Design and Conservation, £14k) with comparable savings secured through vacancy savings within City Strategy;

g) In terms of the Council’s reserves, to:

· Agree the use in 2007/08 of £1.312 of revenue reserves, as outlined in paragraph 50

· Authorise the transfer of balances held on the Bellwin reserve into the general reserve, as detailed in paragraph 54

· Endorse the adoption of a risk-based calculation to inform the Director of Resources’ opinion on the appropriate minimum level of general reserves, as described in paragraph 52;

h) The release of further funds to support the job evaluation project, as outlined from paragraph 26 onwards;

i) The fees and charges proposals set out in Annex 8.

REASON: To enable the Council to set a balanced budget for the 2007/08 financial year.

(ii)That the Executive’s recommendations in relation to the capital programme budget proposals for 2007/2008 to 2010/11 be approved, as outlined in Executive Minute 141, at agenda item 5(b) (page 21 of the Council papers) and with reference to the Capital Programme Budget report circulated to all Members, and in particular:

a) The inclusion in the capital programme of all existing approved schemes, as detailed in Annex 1 and paragraph 8;

b) The inclusion in the capital programme of all fully funded schemes, as detailed in Annex 3 and discussed at paragraph 18;

c) The continuation of the York Pools Scheme and Museums Lottery Scheme, as detailed in paragraph 20;

d) The extension of existing rolling programme schemes, as illustrated in Table 2, except for:

· The Ward Committees Scheme, which will be reduced by £70k per annum from 2008/09, as outlined in paragraph 16 (with a compensatory increase in revenue funding)

· The Property Investment Scheme, which will be reduced by £50k per annum from 2008/09, as outlined in paragraph 23;

e) The use of £250k of prudential borrowing in 2010/11, as per paragraph 23;

f) The asset sales shown in (exempt) Annex 6, subject to the deletion of one of the items listed under “Usable Capital Receipts Previously Approved for Sale” (the 21^st item on that list).

REASON: To achieve a balanced four year capital programme which will ensure the continuation of existing approved schemes.

(iii)That the Executive’s recommendations in relation to the Treasury Management Strategy Statement and Prudential Indicators for 2007/2008 to 2010/11 be approved, as set out in Executive Minute 142, at agenda item 7 (page 33 of the Council papers) and with reference to the Treasury Management Strategy Statement and Prudential Indicators report circulated to all Members, and in particular:

a) The Prudential Indicators for 2007/08 to 200/11, as set out in Annex A to the report;

b) The proposed Treasury Management Strategy for 2007/08 to 2010/11;

c) The annual investment strategy;

d) The use of LOBOs for debt management purposes;

e) The adoption of a predetermined LOBO repayment rate of 4% for LOBOs taken out before 31 March 2008;

f) The use of the PWLB in year borrowing trigger rate as a trigger to repay LOBO loans;

g) A maximum limit of 10% of total debt portfolio to be funded through LOBO loans at any one time.

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

Supporting documents: