Issue - meetings

Report to follow.

The Leader of the Council, Councillor Simon Tagg introduced this report and moved the recommendations which set out the recommendations of Cabinet for Revenue and Capital Budgets for 2020/21. 

Cabinet proposed an increase in council tax for 2020/210 of £5.00 per year from the 2019/20 amount.  This represented an increase of 2.55 percent from 2019/20.  Detailed recommendations were set out in Appendix A of the report.    Appendix B set out the proposed Revenue Budget for 2020/21.  A summary of additional income, additional expenditure and loss of income and new pressures was given in the report.

In summary the Council’s updated Medium Term Financial Strategy (MTFS) indicated a forecast budget shortfall of £1.249m for 2020/21.  A summary of savings and funding strategies to bridge the £1.249m gap had been identified and agreed with managers and were given at Appendix C.

The Council’s s151 officer had carried out a review of the Council’s Balances and Reserves together with a risk assessment. Details were given in Appendices D and E.  The MTFS and budget proposals had been scrutinised by the Finance, Assets and Performance Scrutiny Committee. 

The Capital Programme for 2020/21 was given in Appendix F of the report.

The Leader advised Members that many vacant posts had been filled which eliminated the need for, often expensive interim cover.  The budget also included a further boost to the Council’s reserves.

The Interim Executive Director of Resources and Support Services, Jan Willis and her team were thanked for the work that had been put into the preparation of the Budget.  In addition the Cabinet members and members of the Finance, Assets and Performance Scrutiny Committee were thanked for their work.

Members’ attention was drawn to paragraph 4.5 of the report, the Borough Growth Fund which set out four areas that were important to the residents of the Borough.

The Portfolio Holder for Finance and Efficiency, Councillor Stephen Sweeney seconded the recommendations and thanked officers for their hard work in preparing the budget. 

Councillor Sweeney drew Members attention to paragraph 2.1 of the report regarding the £485,000 variance against the 2018/29 budget as at the end of quarter three and advised that savings had been identified from repairs and renewals, disused Council assets and digital delivery.  In addition, grants had been received.  Councillor Sweeney stated that the above grants and savings went a long way towards addressing the variance and that there was still time left to find the remainder.  Recent senior management appointments would reduce pressure on the revenue budget arising from the use of interims, saving the Council in the region of £240,000 a year.

The budget allowed for the introduction of the new recycling service, refurbishment and re-opening of Kidsgrove Sports Centre, upgraded CCTV, new parking machines and the provision of an electricity supply to market stalls to allow for evening trading.

A proposed amendment was tabled at the meeting and was shown on pages 109 – 110 of the supplementary agenda.  It was proposed by Councillor Stubbs and seconded by Councillor  ...  view the full minutes text for item 5

(i)            That the Revenue and Capital Budgets as detailed in this report and in the report to Cabinet dated 15 January 2020 be recommended to Full Council for approval.

(ii)           That the updated Medium Term Financial Strategy 2020/21 to 2024/25 (Appendix 2) be recommend to Full Council for approval.

(iii)          That the strategy for ensuring a balanced revenue outturn position for 2019/20 be approved.

(iv)          That the 2020/21 Borough Growth Fund priorities as set out at paragraph 4.5 be approved.

(v)           That the calculation of the Council Tax base and the Council Tax increase to be proposed for 2020/21 of £5 (2.55%) per Band D equivalent property be recommended to Full Council for approval.

(vi)          That the proposed Empty Homes Premium for long term empty properties (2-5 years 100%, 5-10 years 200% and 10 years plus 300%) be approved.

(vii)        That the proposed change in accounting policy for Minimum Revenue Provision from the straight line basis to the annuity basis (as per the Treasury Management Strategy) be approved.

(viii)       That the risk assessment at Appendix 3 and S151 Officer’s recommendation on the level of reserves and contingencies provisionally required to be maintained in 2020/21 be recommended to Full Council for approval.

(ix)          That the Flexible Use of Capital Receipts Strategy (Appendix 6), updated for 2020/21, be recommended to Full Council for approval.

(x)           That the Capital Strategy (Appendix 8) for 2020-30 be recommended to Full Council for approval.

(xi)          That the Treasury Management Strategy (Appendix 9) for 2020/21 be recommended to Full Council for approval.

(xii)        That the Investment Strategy (Appendix 10) for 2020/21 be recommended to Full Council for approval.

(xiii)       That the Local Council Tax Reduction Scheme (Appendix 11) for 2020/21 be recommended to Full Council for approval.

A report was submitted to Cabinet asking to recommend the 2020/21 General Fund Revenue Budget and the 2020/21 Capital Programme to Full Council at its meeting on 19 February, 2020.

The Revenue Budget and Capital Programme were considered by the Finance, Assets and Performance Scrutiny Committee on 16 January, 2020.

The Portfolio Holder for Finance and Efficiency, Councillor Stephen Sweeney thanked officers for their hard work in preparing the Budget and Capital Programme.

Members were advised that the Borough Council’s element of Council Tax would, this year, be an increase of 2.55% which equated to 10p per week or less for 82% of households.

Members’ attention was drawn to paragraphs 4.2 and 4.3 which showed factors giving rise to the budget gap and savings and funding strategies.

The Leader, Councillor Simon Tagg stated that this was a positive budget and referred Members to paragraph 4.5, the Borough Growth Fund.   Members’ attention was drawn to a supplementary paper presented at the meeting which expanded upon the four bullet points contained within paragraph 4.5 of the published agenda:

Borough Growth Fund

4.5 The savings and funding strategies identified in the table above and in

Appendix 1 will enable further investment of £250,000 in the Council’s priorities as per the Council Plan 2018-2022 via the Borough Growth Fund.  In accordance with the ‘Statutory Guidance on the Flexible Use of Capital Receipts’, the ‘Borough Growth’ fund will continue to be used to provide pump-priming investment in initiatives that are forecast to generate on-going revenue savings through reducing the costs of service delivery or through the generation of additional income.  The Council’s Section 151 Officer will determine whether any proposed use of the fund complies with this guidance on a case-by-case basis.  Priorities for 2020/21 are:

Council Modernisation – Local Services That Work For Local People (£80,000)

As part of the Council’s commitment to introducing streamlined and speedy processes to improve services to residents, we will embed digitalisation in everything we do, and we will take the first steps to introduce AI and Robotics into service delivery.

At the same time, we are investing in creating a workforce fit for the future by developing the skills of our staff and also investing in apprenticeship opportunities.

We will implement a Workforce Development Plan based around the ethos of ‘One Council’.

Building Financial Sustainability (£50,000)

With our Executive Director for Commercial Development & Economic Growth now in place the Council has embraced commercial working practices to reduce costs and generate income.

We will use innovative models to ensure that when development opportunities arise the Council retains an income stream or reinvests the income into other opportunities.

Recycling and Climate Change (£50,000)

2020 will see the launch of the new Recycling Service, which will make it easier for residents to recycle and finally put this area of the Council’s business on a sound financial footing.

As part of the Council’s commitment to a sustainable environment, we will plant more trees as part of a Borough-wide Carbon Capture Parks Initiative  ...  view the full minutes text for item 4