Agenda item

Report of the Chief Finance Officer

 

Council received a report of the Chief Finance Officer setting out the budget proposed and agreed at the Cabinet meeting on the 15^th of January 2024.

 

The Mayor introduced the budget highlighting that it was designed to help Watford deal effectively with the current economic state.  He then moved the budget and council tax to be approved, which was seconded by Councillor Watkin.

 

Councillor Khan moved an amendment, detailed below, seconded by Councillor Bell.  The amendment was circulated prior to the meeting.

 

Labour Budget Amendments

 

Revenue Budget

Savings	2024/25 £m	2025/26 £m	2026/27 £m	Total MTFS £m	Comments
Removal of Political advisor post to Mayor	(0.057)	(0.058)	(0.059)	(0.174)
Digitalising My Watford Magazine	(0.026)	(0.026)	(0.026)	(0.078)
Redesign communications department to deliver 20% efficiency	(0.055)	(0.055)	(0.055)	(0.165)
Town Boundary Signage			(0.002)	(0.002)	Revenue savings on borrowing costs from reduction in Capital Expenditure of £0.065m
Total Savings	(0.138)	(0.139)	(0.142)	(0.419)

 

Expenditure	2024/25 £m	2025/26 £m	2026/27 £m	Total MTFS £m	Comments
Extra street cleaner within Veolia contract	0.034	0.034	0.034	0.102
Lighting for safety within Cassiobury Park	0.015			0.015	This is to install lights so people feel safer walking through the park.
Mobile CCTV Chester Road (Fly-Tipping)	0.004			0.004	One off cost to redeploy existing mobile CCTV to this location.
Contribution to Economic Impact Reserve	0.085	0.105	0.108	0.298
Total:	0.138	0.139	0.142	0.419

 

Impact on reserves

 

Economic Impact Reserve	2024/25 £m	2025/26 £m	2026/27 £m
Opening Balance	0.000	(0.085)	(0.190)
Contribution to reserve	(0.085)	(0.105)	(0.108)
Closing balance	(0.085)	(0.190)	(0.298)

 

Capital Program

 

	2024/25 £m	2025/26 £m	2026/27 £m	Total MTFS £m
Remove budget to upgrade Town Boundary Signage			(0.065)	(0.065)
Total Capital Programme Changes	0.000	0.000	(0.065)	(0.065)

 

The original motion and amendment was debated by Council. 

 

The amendment was put to the vote.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 the votes were recorded as follows:

 

Those members voting in favour of the amendment:

 

Councillors Bell, Dhindsa, Ezeifedi, Khan, Shah, Smith, Trebar, Turmaine and Watling.

 

Those members voting against the amendment:

 

The Chairman Councillor Feldman, Mayor Taylor, Councillors Ahmed, Allen-Williamson, Clarke-Taylor, Devonish, Dychton, Hannon, Hill, Hofman, Jeffree, Johnson, Kloss, Martins, Newstead, Osborn, Pattinson, Rodrigues, A. Saffery, G. Saffery, Saunders, Stotesbury, Walford, Watkin, Wenham and Williams.

 

There were no abstentions.

 

The amendment was LOST by 9 votes to 26 with no abstentions.

 

The original motion was then put to Council.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 the votes were recorded as follows:

 

Those members voting in favour of the motion:

 

The Chairman Councillor Feldman, Mayor Taylor, Councillors Ahmed, Allen-Williamson, Clarke-Taylor, Devonish, Dychton, Hannon, Hill, Hofman, Jeffree, Johnson, Kloss, Martins, Newstead, Osborn, Pattinson, Rodrigues, A. Saffery, G. Saffery, Saunders, Stotesbury, Walford, Watkin, Wenham and Williams.

 

There were no votes against the motion.

 

Those members abstaining:

 

Councillors Bell, Dhindsa, Ezeifedi, Khan, Shah, Smith, Trebar, Turmaine and Watling.

           

The original motion was CARRIED by 26 votes to 0 with 9 abstentions. 

 

RESOLVED –

 

1.      That Council:

a)      Resolves in accordance with the Local Authorities (Calculation of Tax Base) Regulations 1992, the amount calculated by Watford Borough Council as its Council Tax Base for the year 2024/25 is 35,532.1 as outlined in the report.

b)      Approves the budget (Attachment 1) as laid out in the report, including:

·             the revenue budget for 2024/25

·             the Capital Investment Programme 2023/24 to 2026/27

c) Approves the Capital Strategy for 2024/25, and delegates to the Chief Finance Officer in consultation with the Portfolio Holder for Property, Resources and Customer Services responsibility for agreeing and maintaining the Treasury Management Strategy Statement. (Attachment 2)

d) Agrees to increase the annual Council Tax for a Band D property 2024/25 by 2.99%. This will apply to all other bands.

e) Agrees to the creation of a Redundancy Reserve and to rename the Riverwell Project Reserve to Commercial Risk Reserve

f) Notes the key risks identified and approves their proposed mitigations as set out in Appendix 11 to Attachment 1 – Budget Setting Report.

g) Notes the advice provided by the Chief Finance Officer on the robustness of estimates and the adequacy of reserves at Annex 3.

h) Notes the indicative budgets for 2025/26 and 2026/27 as set out in Attachment 1 and Attachment 3.

i) Approves the revenue virements for 2023/24 set out in Annex 4 (as noted by Cabinet on 15 January 2024 after consideration of the Financial Monitoring Report 2023/24 to Period 8).

 

2. Setting the Council Tax Requirement for Watford Borough Council:

a) That the Council’s net General Fund expenditure for 2024/25 shall be £14.626m.

b) That the 2024/25 band D precept is set at £299.55 and other bands and amounts are set in accordance with the table at paragraph 3.2 (E)

c) That Watford Borough Council’s Council Tax Base for 2024/25 has been calculated at 35,532.1 in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012 made under Section 31B (1) of the Local Government Finance Act 1992, as amended.

d) That the following amounts be now calculated by the Council for the year 2024/25 in accordance with Sections 31A to 36 of the Local Government Finance Act 1992:

(A) Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (2) of the Act. (Effectively the gross expenditure and transfers to reserves) £94,166,929

(B) Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the Act. (Effectively the gross income and transfers from reserves) £85,523,288

(C) Being the amount by which the aggregate at 2.5 (A) above exceeds the aggregate at 2.5 (B) above calculated by the Council in accordance with Section 31A (4) of the Act as its Council Tax Requirement for the year £10,643,641

(D) Being the amount at paragraph 2.5 (C)divided by amount at 2.4 above, calculated by the Council, in accordance with Section 33 (1) of the Act as the basic amount of its Council Tax for the year (at Band D) £299.55

(E)

 

Council tax valuation band	Conversion Factor to Band D	Watford’s Share £
A	6/9	199.70
B	7/9	232.98
C	8/9	266.27
D	1	299.55
E	11/9	366.12
F	13/9	432.68
G	15/9	499.25
H	2	599.10

 

Being the amounts given by multiplying the amount at paragraph 3.2 (D) above by the number which, in the proportion set out in Section 5 (1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in Valuation Band D, calculated by the Council, in accordance with Section 36 (1) of the Act, as the amounts to be taken into account for the year 2024/25 in respect of categories of dwellings listed in different valuation bands.

e) That a report including precepts of both the Hertfordshire County Council and the Police & Crime Commissioner for Hertfordshire be presented to the Functions Committee on 21 February 2024 to set the total Council Tax.