Decision details

Decision details

Financial Planning - Draft Revenue and Capital Estimates 2014-2018 and the Treasury Management Strategy 2014-17 - RECOMMENDATIONS FROM CABINET 20 JANUARY 2014

Decision Maker: Council

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

Council received a report of Cabinet, including the original report presented to Cabinet at its meeting on 20 January 2014 and an additional report from the Shared Director of Finance setting out the Council Tax Resolution for 2014/2015.

 

The Mayor moved the budget report incorporating the following amendment to recommendation 2.1 b) in the Council Tax Resolution 2014/2015, which was seconded by Councillor Watkin:

 

“that the capital programme shall be set out in the Cabinet report with an addition of £80k added to the community and leisure services capital budget to fund approved improvements in non Council owned community centres where the need for support is established.”

 

Councillor Bell moved the following amendment which was seconded by Councillor Dhindsa:

 

“Economic Impact Reserve – Proposed forecast balance 31/3/14 £1,836,900–

We propose to draw down this reserve by £1,200,000 (Remained unchanged since 2010/11)

Future Pension Funding Reserve – Proposed forecast £1,375,000

We propose to draw down the reserve by £507,800 (Remained unchanged since 2005/6)

Therefore we propose to use a very modest amount of £1,707,800 of the reserves on new expenditure

 

We would fund projects related to combatting and addressing domestic violence with the Women’s Centre.

2014/15          £44,000

2015/16          £44,000

2016/17          £44,000

2017/18          £44,000 – Fund the project for 4 years (£44,000x4= £176,000 funded from drawing down on reserves)

 

Anti-social behaviour officer.

Anti-social behaviour officer – £40,000

2014/15          £40,000

2015/16          £40,000

2016/17          £40,000

2017/18          £40,000 – Fund the project for 4 years (£40,000x4=£160,000 drawing down from the reserves)

 

St Albans Road Regeneration Investment

2014/15 £1,500,000

 

The Mayor’s Office

The office costs £158,500 (p102-Budget Book)– on top of this a salary of £65,738 it comes to £224,238. We propose a cut of 20% to the office costs – saving of £31,700

We propose a cut of a Budget to pay for the Lib Dem Group hospitality involved in their meetings which comes to £350. (p103 Budget Book).

We propose a freeze to the CPZ for this year.

Proposals

2014/15

2015/16

2016/17

2017/18

Total cost of proposals

Womens Centre

44,000

44,000

44,000

44,000

176,000

Anti Social Behaviour

40,000

40,000

40,000

40,000

160,000

St Albans Road

1,500,000

 

 

 

1,500,000

Mayors Office

-31,700

-31,700

-31,700

-31,700

-126,800

Liberal Democrats Group Hospitality

-350

-350

-350

-350

-1,400

CPZ Freeze

0

0

0

0

0

 

 

 

 

 

1,707,800

 

1,584,000

84,000

84,000

84,000

1,836,000

 

-32,050

-32,050

-32,050

-32,050

-128,200

 

 

 

 

 

 

Use of Reserves

2014/15

2015/16

2016/17

2017/18

Total cost of proposals

Economic Impact Reserve

1,200,000

 

 

 

1,200,000

Pension Fund Reserve

351,950

51,950

51,950

51,950

507,800

Revenue Reserves Balance

-8,413,437

-6,561,427

-6,353,557

-6,503,347

1,707,800

Total Reserves Balance

-13,327,258

-9,916,924

-9,828,554

-9,978,344

 

 

CPZ Freeze Assumptions

Assume no other changes to number of permits issued etc.

In the fees and charges report there was an assumption that if the price goes up then the demand will decrease, therefore no additional income was assumed

Due to this I have not made any changes to income as it can be assumed that demand and income will remain as it currently is if this proposal is implemented.”

 

On being put to Council the amendment was LOST.

 

RESOLVED –

 

1.      that the proposals recommended by Cabinet on 20 January 2014 be agreed:

 

          a)      that the Council’s net General Fund expenditure for 2014/15 shall be £14,592,960.

 

          b)      that the Capital Programme shall be as set out in the Cabinet report with an addition of £80k added to the community and leisure services capital budget to fund approved improvements in non Council owned community centres where the need for support is established.

 

          and in approving these recommendations

 

          c)      has regard to the Director of Finance’s assessment of financial risks and the level of balances and provisions required, as set out in the Cabinet report.

 

          d)      agrees the existing Local Council Tax Reduction Scheme continues from 1 April 2014 (paragraph 7.6.4 of the Cabinet report refers)

 

          e)      agrees the Treasury management Strategy for 2014-2017 as set out in Appendix 11 of the Cabinet report

 

2.      that Watford Borough Council’s Council Tax Base for 2014/15 has been calculated at 30,112 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.

 

3.      that the following amounts be now calculated by the Council for the year 2014/15 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)

 

£67,367,020

(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)

 

£59,843,840

(C)

Being the amount by which the aggregate at 2.3 (A) above exceeds the aggregate at 2.3 (B) above calculated by the Council in accordance with Section 31A (4) of the Act as its Council Tax Requirement for the year

 

£7,523,180

(D)

Being the amount at paragraph 2.3 (C)divided by amount at 2.2 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)

 

£249.84

(E)

Council Tax Valuation Bands

Conversion Factor to Band D

Watford’s Share (£)

A

6 / 9

166.56

B

7 / 9

194.32

C

8 / 9

222.08

D

1

249.84

E

11 / 9

305.36

F

13 / 9

360.88

G

15 / 9

416.40

H

2

499.68

 

Being the amounts given by multiplying the amount at paragraph 2.3 (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 2014/15 in respect of categories of dwellings listed in different valuation bands

 

 

 

4.      that a report including the precepts of both the Police Authority and Hertfordshire County Council be presented to the Functions Committee on 27 February 2014 to set the total Council Tax.

 

Report author: Joanne Wagstaffe

Publication date: 05/02/2014

Date of decision: 29/01/2014

Decided at meeting: 29/01/2014 - Council

Accompanying Documents:

 

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