Report of the Interim Director of Finance

Reports considered by Cabinet at its meeting on 18 January 2021 included and extract from Licensing Committee on 14 January 2021..

Council received the report of the Director of Finance including:

·      Budget Gap, as recommended by Cabinet on 18 January 2021

·      Medium Term Financial Strategy 2020-24 as recommended by Cabinet on 18 January 2021

·      Medium Term Financial Strategy 2021/22 to 2023/24

·      Income Charging Policy 2020-23

·      Capital Strategy 2021/22

·      Report of Finance Scrutiny Committee on 12 January 2021

·      Report of Licensing Committee on 14 January 2021

·      Report of Cabinet on 18 01 21

The Mayor moved the budget report which was seconded by Councillor Watkin.

No amendments had been received and Councillor Turmaine, as Labour Group representative, was invited to speak.  Councillor Turmaine set out the activities of Finance Scrutiny Committee, of which he was chair, and the proposals and feedback which had arisen from discussions.  Members then debated the budget report. 

The motion was then put to Council.

Those members voting in favour of the original motion:

Chairman, Councillor Dychton, Mayor Taylor, Councillors Allen-Williamson, Bolton, Collett, Crout, Grimston, Hamid, Hastrick, Hofman, Jeffree, J Johnson, S Johnson, Kloss, Martins, Parker, Pattinson, Saffery, Scudder, Sharpe, Stanton, Stiff, Stotesbury, Walford, Watkin, Wenham and Williams.

No members voted against the original motion.

Those members abstaining:

Councillors Bashir, Bell, Dhindsa, Ezeifedi, Khan, Mauthoor, Shah, Smith and Turmaine.

The original motion was CARRIED by 27 votes.  There were 9 abstentions. 

RESOLVED –

1.      To agree proposals recommended by Cabinet on 18 January 2021 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 2021/22 is 32,786.1 as outlined in the report.

b)      Approves the continuation of the Local Council Tax Reduction Scheme for 2021/22. 

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

o   the budget for 2021/22

o   the Capital Investment Programme 2020-24.

d)      Approves the schedule of fees and charges & income charging policy (Attachment 2).

e)      Approves the Capital Strategy for 2021/22, amended as necessary for the decisions of Cabinet on 18 January 2021, and delegates to the Director of Finance and Portfolio Holder Resources responsibility for agreeing and maintaining the Treasury Management policy.  (Attachment 3)

f)        Agrees to increase the annual Council Tax for a Band D property 2021/22 by 1.7%.  This will apply to all other bands.

g)      Notes the key risks identified and approves their proposed mitigations.

h)      Notes the advice provided by the Director of Finance on the robustness of estimates and the adequacy of reserves.

i)         Notes the indicative budgets for 2022/23 and 2023/24.

Setting the amount of Council Tax for Watford Borough Council

2.          That the Council’s net General Fund expenditure for 2021/22 shall be £13.684 million. 

3.          That the 2021/22 band D precept is set at £278.24 and other bands and amounts are set in accordance with the table at paragraph 2.5 (E).

4.          That Watford Borough Council’s Council Tax Base for 2021/22 has been calculated at 32,786.1 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.

5.          That the following amounts be now calculated by the Council for the year 2021/22 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)                            £76,371,951

(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)              £67,249,547

(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 £9,122,404

(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)           £278.24

 (E)      

             Being the amounts given by multiplying the amount at paragraph 2.5 (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 2021/22 in respect of categories of dwellings listed in different valuation bands.        

6.          That a report including precepts of both Hertfordshire County Council and the Police Authority be presented to the Functions Committee on 23 February 2021 to set the total Council Tax.