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Agenda item

Recommendations of Executive on the Council's Financial Strategy 2021/22 to 2025/26, Capital Budget 2021/22 to 2025/26, Capital Financing and Investment Strategy and the Treasury Management Strategy Statement and Prudential Indicators for 2021/22 to 2025/26

To consider the recommendations made by the Executive, at their meeting on 11 February 2021, in relation to:

 

i)     The Financial Strategy 2021/22 to 2025/26

ii)    The Capital Budget 2021/22 to 2025/26

iii)  The Capital Financing and Investment Strategy

iv)  The Treasury Management Strategy Statement and Prudential Indicators 2021/22 to 2025/26.

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, will be circulated to all Members with this agenda and can be found on the council’s website, here:

https://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=12508&Ver=4

 

Minutes:

Councillor Aspden moved and Councillor D’Agorne seconded, the following recommendations made by Executive at its meeting on 11 February 2021 in relation to:

·        the Financial Strategy 2021/22 to 2025/26

·        the Capital Budget 2021/22 to 2025/26

·        the Capital Financing and Investment Strategy

·        the Treasury Management Strategy Statement and Prudential Indicators 2021/22 to 2025/26,

as set out in paragraphs 42 to 45 of the report at Item 7 on the Council agenda:

 

Revenue Budget

“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 £131.392m

 

                               b.    A council tax requirement of £98.051m

 

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

 

                               d.    The 2021/22 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,  the HRA savings proposals set out in annex 6, HRA 2021/22 budget set out in annex 7 and the HRA 30 year plan set out in annex 8.

 

                               h.    The dedicated schools grant proposals outlined from paragraph 156

 

                                 i.    The use of £52k New Homes Bonus to fund one off investment, as outlined in paragraph 87.

 

ii)    That Council note that the effect of approving the income and expenditure proposals included in the recommendations would result in a 4.99% increase in the City of York Council element of the council tax, 3% of which would relate to the social care precept.

 

Reason: To ensure a legally balanced budget is set.”

Capital Budget 2021/22 to 2025/26

“Executive recommends that Council:

i)     Agree to the revised capital programme of £546.880m that reflects a net overall increase of £41.037m (as set out in table 2 and in Annex A). Key elements of this include:

 

a.   New schemes funded by prudential borrowing totalling £7.513m as set out in tables 3;

 

b.   New schemes funded by a combination of both prudential borrowing and external funds of £3.300m as set out in table 4 and summarised in table 5;

 

c.   New schemes funded by a combination of prudential borrowing and other internal funds of £200k as set out in table 6;

 

d.   Extension of prudential borrowing funded Rolling Programme schemes totalling £10.870m as set out in table 5 and summarised in table 7;

 

e.   Extension of externally funded Rolling Programme schemes totalling £7.200m as set out in table 9;

 

f.     An increase in HRA funded schemes totalling £11.954m funded from a combination HRA balances/Right to Buy receipts as set out in table 10;

 

ii)    Note the total increase in Council borrowing as a result of new schemes being recommended for approval is £20.483m 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 £546.880m covering financial years 2021/22 to 2025/26 as set out in table 14 and Annex B

 

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

 

Capital and Investment Strategy

“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

“Executive recommends that Council approve;

i)     The proposed treasury management strategy for 2021/22 including the annual investment strategy and the minimum revenue provision policy statement;

ii)    The prudential indicators for 2021/22 to 2025/26 in the main body of the report;

iii)  The specified and non-specified investments schedule (annex B)

iv)  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

 

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

 

Revenue Budget

In relation to the Executive’s recommendations on the revenue budget (paragraph 42 of page 50 of the Council papers refers):

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

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

·        An additional £90k for Early Talk for York

·        An additional £23k for Training for Wellbeing for Education Return

·        An additional £13k for Your Choice, Your Voice

·        An additional £30k to fund a 4 year council tax exemption for care leavers

·        An additional £45k to fund 1 FTE Officer to lead on monitoring social value policies in procurement and insourcing

·        An additional £230k to TUPE staff from Make it York to City of York Council to support economic growth

·        £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

·        £50k one off investment for York Future Goals

·        Reversal of one off growth £30k Organisational development programme.’

 

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

·        Reverse saving proposal PEO11 outsourcing to independent sector- £147k.”

·        Reduction of blacksmith apprenticeship budget with vacant post - £25k

·        A reduction of 1 FTE in Executive policy team - £50k

·        A reduction of two Executive Members - £37k

·        Removal of a committee Chair - £6k

·        Reduce Ward Committee budget - £200k

·        Reduction in Communications Team budget - £45k

·        Remove Economic Growth function budget to Make it York - £230k

·        Reverse one off budget (unspent from 20/21) for Children and Young People cultural educational opportunities - £40k.’

 

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

·        PLA04: Reversal of fee increase to Household Waste Recycling Centre fees - £5k

·        CCS13: Reversal* of fee increase to Cremation and Bereavement Services - £10k.’

 

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 £100k from the Venture Fund to invest in proof of concept for robotics

·        The one off use of £15k from the Venture Fund to invest in an apprentice to co-ordinate NEETS

·        The one off use of £50k from the YFAS reserve to invest in targeted benefits advice for Pension Credit, Carers Allowance, Universal Credit and Council Tax support

·        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 the Right to Food and to adopt the independent recommendations from York Food Justice Alliance.’

 

*Cllr Ayre having raised a point of order in respect of the proposed amendment to CCS13 at sub-paragraph e above, the Monitoring Officer confirmed that there was an error in the published papers and that the word ‘reversal’ should read ‘reduction’.

 

After debate, a named vote was taken on the above amendment, with the following result:

For

Against

Abstained

Cllr Barnes

Cllr Aspden

Cllr Warters

Cllr Crawshaw

Cllr Ayre

 

Cllr Douglas

Cllr Baker

Cllr Fitzpatrick

Cllr Barker

 

Cllr Heaton

Cllr Carr

 

Cllr Kilbane

Cllr Craghill

 

Cllr Lomas

Cllr Cullwick

 

Cllr Melly

Cllr Cuthbertson

 

Cllr Musson

Cllr D’Agorne

 

Cllr Myers

Cllr Daubeney

 

Cllr Norman

Cllr Doughty

 

Cllr Pavlovic

Cllr Fenton

 

Cllr Perrett

Cllr Fisher

 

Cllr K Taylor

Cllr Galvin

 

Cllr Webb

Cllr Hollyer

 

Cllr Wells

Cllr Hook

 

Cllr Looker (Lord Mayor)

Cllr Hunter

 

Cllr Mason

 

 

Cllr Orrell

 

 

Cllr Pearson

 

Cllr Rowley

 

 

Cllr Runcimsan

 

 

Cllr Smalley

 

 

Cllr D Taylor

 

 

Cllr Vassie

 

 

Cllr Waller

 

 

Cllr Wann

 

 

Cllr Waudby

 

17

29

1

 

The 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:

 

“In relation to the Executive’s recommendations on the revenue budget (paragraph 42 of page 50 of Council papers refers):

 

In sub paragraph (a) delete ‘£131.392m’ and replace with ‘£130.967m’

In sub paragraph (b) delete ‘£98.051m’ and replace with ‘£97.626m’

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

·        Additional pothole repair budget of £113k allowing for targeted work for requests from residents/wards

·        An additional £42k to fund 40 new street benches, including ongoing maintenance costs, for the city centre and other shopping locations such as Acomb and Haxby in consultation

·        Reduction of climate change delivery programme - £100k.

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

following amendments:

·        A reduction in printing budget by £100k

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

·        A reduction of member allowances increase, including all special responsibility allowances, to 2019/20 levels, allowing only for inflation at the rate previously agreed in 2015 - £77k

·        A reduction of purple flag promotion budget - £50k

·        A reduction of two Executive Members - £37k

·        Removal of the Climate Change Committee Chair - £6k

·        Reduction in overtime budgets - £100k

·        Staff reduction of 2 FTE Political Assistant posts £90k

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

 

In paragraph 42 (ii) third line, delete ‘4.99%’ and replace with ‘4.49%’.”

 

After debate, 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.

 

After debate, named vote was then taken on the original recommendations, with the following result:

 

For

Against

Abstained

Cllr Aspden

Cllr Barnes

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 Warters

Cllr Pearson

Cllr Webb

Cllr Runciman

Cllr Wells

Cllr Smalley

Cllr Looker

(Lord Mayor)

Cllr D Taylor

 

Cllr Vassie

 

Cllr Waller

 

Cllr Wann

 

 

Cllr Waudby

 

 

Cllr Widdowson

 

 

27

20

0

 

The original recommendations were therefore declared CARRIED and it was

 

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

 

Supporting documents:

 

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