Local democracy during coronavirus

During coronavirus, we've made some changes to how we're running council meetings. See our coronavirus updates for more information on meetings and decisions.

Agenda item

Recommendations of the Executive on the Council's Capital and Investment Strategy, Capital Budget 2020/21 to 2024/25, the Financial Strategy 2020/21 to 2024/25 and the Treasury Management Strategy Statement and Prudential Indicators for 2020/21 to 2024/25

To consider the recommendations made by the Executive, at their meeting on 13 February 2020, in relation to:

 

i)     The Financial Strategy 2020/21 to 2024/25

ii)    The Capital Budget 2020/21 to 2024/25

iii)  The Capital Financing and Investment Strategy

iv)  The Treasury Management Strategy Statement and Prudential Indicators 2020/21 to 2024/25.

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

 

Note:

The original budget reports to Executive, on which their recommendations are based, were circulated to all Members on 6 February and can be found on the Council’s website, here:

 

https://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=11116

 

 

Minutes:

Councillor Aspden moved and Councillor D’Agorne seconded, the following recommendations made by Executive at its meeting on 13 February 2020 in relation to:

·        the Financial Strategy 2020/21 to 2024/25

·        the Capital Budget 2020/21 to 2024/25

·        the Capital Financing and Investment Strategy

·        the Treasury Management Strategy Statement and Prudential Indicators 2019/20 to 2023/24,

as set out in paragraphs 43 to 46 of the report at Item 6 on the Council agenda:

 

“Revenue Budget

43. Executive recommends that Council:

              i.         Approve the budget proposals outlined in the Financial Strategy report and in particular:

 

                               a.    The net revenue expenditure requirement of £127.223m

 

                               b.    A council tax requirement of £93.808m

 

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

 

                               d.    The 2020/21 revenue savings proposals as outlined in annex 2

 

                               e.    The fees and charges proposals as outlined in annex 3

 

                                 f.    The consultation feedback as set out in annex 4

 

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

 

                               h.    The dedicated schools grant proposals outlined from paragraph 154

 

                                 i.    The use of £420k New Homes Bonus, £150k from the Lendal Bridge reserve and £150k Transport reserve to fund one off investment, as outlined in paragraphs 86, 87 and 92.

 

             ii.         Note that the effect of approving the income and expenditure proposals included in the recommendations would result in a 3.99% increase in the City of York Council element of the council tax, 2% of which would relate to the social care precept.

 

Reason: To ensure a legally balanced budget is set.

Capital Budget 2020/21 to 2024/25

44. Executive recommends that Council:

             i.        Agree to the revised capital programme of £559.617m that reflects a net overall increase of £57.730m (as set out in paragraph 89 table 12 and in Annex A). Key elements of this include:

 

a)   New Schemes funded by Prudential borrowing totalling £14.645m as set out in tables 3 and summarised in table 12;

 

b)   New Schemes funded by a combination of both Prudential borrowing and external funds of £695k as set out in table 4 and summarised in table 12;

 

c)   Extension of prudential borrowing funded Rolling Programme schemes totalling £12.485m as set out in table 5 and summarised in table 12;

 

d)   Extension of externally funded Rolling Programme schemes totalling £5.300m as set out in table 6 and summarised in table 12;

 

e)   An increase in HRA funded schemes totalling £9.605m funded from a combination HRA balances/Right to Buy receipts as set out in table 7 and summarised in table 12.

 

            ii.        Note the total increase in Council borrowing as a result of new schemes being recommended for approval is £40.655m the details of which are considered within this report and the financial strategy report.

 

          iii.        Approve the full restated programme, as summarised in Annex B, totalling £559.617m and covering the financial years 2020/21 to 2024/25 as set out in table 13 and Annex B.

 

Reason: In accordance with the statutory requirement to set a capital budget for the forthcoming financial year.

 

Capital and Investment Strategy

45. Executive recommends that Council approve the Capital and Investment Strategy at Annex A.

Reason: To meet the statutory obligation to comply with the Prudential Code 2017.

 

Treasury Management Strategy Statement and Prudential Indicators

46. Executive recommends that Council approve:

             i.        The proposed treasury management strategy for 2020/21 including the annual investment strategy and the minimum revenue provision policy statement;

            ii.        The proposed addition of ethical, social and governance as a 4th criteria for investments after security, liquidity and yield as set out in paragraphs 78 to 82;

          iii.        The prudential indicators for 2020/21 to 2024/25 in the main body of the report;

          iv.        The specified and non-specified investments schedule (Annex B);

           v.        The scheme of delegation and the role of the section 151 officer (Annex D).

 

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 1

 

Cllr Myers then moved, and Cllr Douglas seconded, the following amendment on behalf of the Labour Group:

 

“Revenue Budget

 

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

·        An additional £40k to fund 1 FTE Officer to improve the early evening family friendly activities and services in the city centre

 

·        An additional £100k to fund youth clubs and young people’s outreach

 

·        Reversal of blacksmith apprenticeship growth - £25k

 

·        £50k reduction of graffiti removal team growth relating to utilities premises (£20k growth retained for private premises)

 

·        Reduction of safer and inclusive communities fund growth - £170k

 

·        Reversal of purple flag promotion growth - £50k

 

·        Revision of narrative in relation to one off growth of £200k Transport Plan Refresh to include ‘making provision within it for options to remove non-essential car journeys through the city centre, and to conclude LTP4 by December 2022’

 

·        £20k one off investment in community wealth building to prepare a report on working in partnership with anchor organisations in York to procure more goods locally, in order to retain more wealth in the city

 

·        £30k one off investment in a Good Employment Charter to benefit all workers in the city around fair pay, in work progression, training, union recognition, flexibility and predictability of shifts, all geared towards raising living standards of all

 

·        £70k one off investment in substance misuse funding

 

·        Reversal of one off growth £40k - Children and Young People cultural educational opportunities

 

·        Reversal of one off growth £80k – Organisational development programme.’

 

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

·        Reverse saving proposal CEC7 Early Help - £150k.’

 

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

·        EP7: Reversal of inflationary increase to Household Waste Recycling Centre fees - £5k.’

 

After sub paragraph (i) add a new sub paragraph ‘(j);

·        The one off use of £48k from the Venture Fund to invest in a S106 developer tax tracker to record and monitor s106 to ensure planning gain isn't lost as a result of absence of departmental records

 

·        The one off use of £75k from the Venture Fund to invest in a Children’s Commissioner

 

·        The one off use of £200k from the Venture Fund to invest in proof of concept for robotics

 

·        The one off use of £100k from the Venture Fund to invest in development of  initial proposals for a voluntary tourist tax and consult on it in 12 months

 

·        The one off use of £60k from the Venture Fund to invest in York Central economic appraisal

 

·        The one off use of £15k from the YFAS reserve to invest in the pension credit campaign

 

·        The one off use of £20k from the YFAS reserve to invest in a Child Poverty Strategy

 

·        The one off use of £20k from the YFAS reserve to invest in child food justice and independent recommendations

 

·        The one off use of £45k from the YFAS reserve to invest in substance misuse funding

 

·        Note the revenue saving of £29k, effective from financial year 2021/22, as a result of the reduction in the prudential borrowing requirement (£410k capital amendment).’ “

 

After debate, and in accordance with legal requirements, a named vote was taken on the above amendment, with the following result:

 

For

Against

Abstained

Cllr Barnes

Cllr Aspden

Cllr Carr

Cllr Crawshaw

Cllr Ayre

Cllr Galvin

Cllr Douglas

Cllr Baker

Cllr Rowley

Cllr Fitzpatrick

Cllr Barker

Cllr Warters

Cllr Heaton

Cllr Craghill

 

Cllr Kilbane

Cllr Cullwick

 

Cllr Lomas

Cllr Cuthbertson

 

Cllr Melly

Cllr D’Agorne

 

Cllr Myers

Cllr Daubeney

Cllr Norman

Cllr Doughty

Cllr Pavlovic

Cllr Fenton

Cllr Perrett

Cllr Fisher

Cllr K Taylor

Cllr Hollyer

 

Cllr Webb

Cllr Hook

Cllr Wells

Cllr Hunter

Cllr Looker (Lord Mayor)

Cllr Mason

 

Cllr Orrell

 

Cllr Pearson

 

Cllr Runciman

 

Cllr Smalley

Cllr D Taylor

 

Vassie

 

 

Cllr Waller

 

 

Cllr Wann

 

 

Cllr Waudby

 

 

Cllr Widdowson

 

17

26

4

 

The first Labour amendment was therefore declared LOST.

 

Conservative Amendment

 

Cllr Doughty then moved, and Cllr Rowley seconded, the following amendment on behalf of the Conservative Group:

 

“Revenue Budget

 

In sub paragraph (a) delete ‘£127.223m’ and replace with‘£126.764m’

 

In sub paragraph (b) delete ‘£93.808m’ and replace with ‘£93.339m’

 

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

·        An additional £40k for one additional green waste round for christmas tree collection

 

·        An additional £50k to the mental health early intervention fund

 

·        An additional £45k to ‘HENRY’ (Heath, exercise and nutrition for the really young) public health scheme

 

·        An additional £75k to target travel solutions to communities lacking adequate public transport

 

·        An additional £5k to increase the contingency budget

 

·        Reversal of member allowances increase, including all special responsibility allowances, to 2019/20 levels, allowing only for inflation at the rate previously agreed in 2015 - £107k

 

·        Reversal of purple flag promotion growth - £50k

 

·        Reversal of Community engagement officer growth - £40k

 

·        Reduction of climate change delivery programme - £100k

 

·        Further reduction/ removal of climate change delivery programme £50k to fund a scheme to provide grants to subsidise the provision of free electric vehicles to York businesses for 2 months.’

 

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

·        Increase savings proposal CCS16 – reduction in printing budget by £50k

 

·        A reduction in 1 FTE from the Communications Team staff budget - £45k

 

·        A reduction in one Executive Member - £16k

 

·        Removal of the climate change committee Chair - £6k

 

·        Additional income from improved use of West Offices - £100k

 

·        Reduction in overtime budgets - £50k

 

·        Staff reduction of 2 FTE political assistant posts £92k

 

·        Removal of member enquiries service – reduction in staff – £25k

 

·        Staff reduction of 2 FTE Policy Officer posts - £90k

 

·        Delay recruitment of corporate management team member vacancy for one year to ascertain if this post is required in the long term (assumes existing acting up arrangements continue) - £143k.’

 

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

·        EP4: Reversal of 10p parking increase on the day rate - £90k

 

·        EP4: Reversal of £1 evening parking increase for non minster badge holders - £140k.’

 

In paragraph 43 (ii) third line, delete ‘3.99%’ and replace with ‘3.49%’.”

 

After debate, and in accordance with legal requirements, a named vote was taken on the above amendment, with the following result:

 

For

Against

Abstained

Cllr Doughty

Cllr Aspden

Cllr Warters

Cllr Rowley

Cllr Ayre

 

 

Cllr Baker

 

 

Cllr Barker

 

 

Cllr Barnes

 

 

Cllr Carr

 

 

Cllr Craghill

 

 

Cllr Crawshaw

 

 

Cllr Cullwick

 

Cllr Cuthbertson

 

Cllr D’Agorne

 

Cllr Daubeney

 

Cllr Douglas

 

 

Cllr Fenton

 

Cllr Fisher

 

Cllr Fitzpatrick

 

Cllr Galvin

 

Cllr Heaton

 

Cllr Hollyer

 

Cllr Hook

Cllr Hunter

 

Cllr Kilbane

 

 

Cllr Lomas

 

 

Cllr Mason

 

 

Cllr Melly

 

 

Cllr Musson

 

 

Cllr Myers

 

 

Cllr Norman

 

 

Cllr Orrell

 

 

Cllr Pavlovic

 

 

Cllr Pearson

 

 

Cllr Perrett

 

 

Cllr Runciman

 

 

Cllr Smalley

 

 

Cllr D Taylor

 

 

Cllr K Taylor

 

 

Cllr Vassie

 

 

Cllr Waller

 

 

Cllr Wann

 

 

Cllr Waudby

 

 

Cllr Webb

 

 

Cllr Wells

 

 

Cllr Widdowson

 

 

Cllr Looker (Lord Mayor)

 

2

44

1

 

The Conservative amendment was therefore declared LOST.

 

Labour Amendment 2

 

Cllr Perrett then moved, and Cllr Wells seconded, another amendment on behalf of the Labour Group, as follows:

 

“Revenue Budget

 

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

·        An additional £30k to increase the care leavers council tax exemption period for an additional 3 years

 

·        Reduction of safer and inclusive communities fund growth - £80k.’

 

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

·        CCS9: Reversal of 2.5% increase to bereavement services fees  - £50k.’”

 

After debate, and in accordance with legal requirements, a named vote was taken on the above amendment, with the following result:

 

For

Against

Abstained

Cllr Barnes

Cllr Aspden

Cllr Carr

Cllr Crawshaw

Cllr Ayre

Cllr Warters

Cllr Douglas

Cllr Baker

Cllr Fitzpatrick

Cllr Barker

Cllr Galvin

Cllr Craghill

 

Cllr Heaton

Cllr Cullwick

 

Cllr Kilbane

Cllr Cuthbertson

 

Cllr Lomas

Cllr D’Agorne

 

Cllr Melly

Cllr Daubeney

 

Cllr Musson

Cllr Doughty

 

Cllr Myers

Cllr Fenton

Cllr Norman

Cllr Fisher

Cllr Pavlovic

Cllr Hollyer

Cllr Perrett

Cllr Hook

Cllr K Taylor

Cllr Hunter

 

Cllr Webb

Cllr Mason

Cllr Wells

Cllr Orrell

Cllr Looker (Lord Mayor)

Cllr Pearson

 

Cllr Rowley

 

Cllr Runciman

 

Cllr Smalley

 

Cllr D Taylor

Vassie

 

Cllr Waller

 

 

Cllr Wann

 

 

Cllr Waudby

 

 

Cllr Widdowson

 

18

27

2

 

The second Labour amendment was therefore declared LOST.

 

After debate, and in accordance with legal requirements, a named vote was then taken on the original recommendations, with the following result:

 

For

Against

Abstained

Cllr Aspden

Cllr Barnes

Cllr Warters

Cllr Ayre

Cllr Crawshaw

 

Cllr Baker

Cllr Doughty

Cllr Carr

Cllr Douglas

Cllr Craghill

Cllr Fitzpatrick

 

Cllr Cullwick

Cllr Heaton

 

Cllr Cuthbertson

Cllr Kilbane

 

Cllr D’Agorne

Cllr Lomas

 

Cllr Daubeney

Cllr Melly

 

Cllr Fenton

Cllr Musson

 

Cllr Fisher

Cllr Myers

Cllr Galvin

Cllr Norman

Cllr Hollyer

Cllr Pavlovic

Cllr Hook

Cllr Perrett

Cllr Hunter

Cllr Rowley

 

Cllr Mason

Cllr K Taylor

Cllr Orrell

Cllr Webb

Cllr Pearson

Cllr Wells

Cllr Runciman

Cllr Looker (Lord Mayor)

Cllr Smalley

 

Cllr D Taylor

 

Cllr Vassie

 

Cllr Waller

 

Cllr Wann

 

 

Cllr Waudby

 

 

Cllr Widdowson

 

 

27

19

1

 

The original recommendations were therefore declared CARRIED and it was

 

Resolved:  That the Executive’s recommendations to Council be approved.

Supporting documents:

 

Feedback
Back to the top of the page