Report of the Head of Finance

Further reports to follow after it has been considered by Cabinet at its meeting on 17 January 2022 and minutes are available from Licensing Committee held on 13 January 2022.

Council received the report of the Director of Finance including:

·                     Budget setting report

·                     Income charging policy

·                     Schedule of fees and charges

·                     Capital Strategy (Including the Treasury Management Policy, Minimum Revenue Provision Policy and Prudential Indicators)

·                     Budget and Council Tax Resolution 2022 to 2023

·                     Medium Term Financial Strategy 2022-23 to 2024-25

·                     Report of Licensing Committee 13 January 2022

·                     Report of Cabinet 17 January 2022

The Mayor moved the budget report which was seconded by Councillor Watkin. The Mayor presented the budget which would help the town to continue to respond to the pandemic, support those most in need, enable businesses to grow and succeed, provide the best local services and ensure value for money for residents.

Councillor Turmaine moved an amendment to the budget report, which was seconded by Councillor Khan.  The full amendment was circulated prior to the meeting and is shown below:

“Introduction: 

The Labour Group would like to propose an amendment to the budget for 2022/23. This relates to the proposed increase in burial fees and charges as outlined in section Community Services, 2022/23 Fees and Charges Proposed for Cemeteries. 

Proposed Change: 

Currently, the proposed increase in charges for most services is in the region of 3%. Officers have identified that projected increase in income across the three related income streams would be around £20,000 for 2022/23. A 3% increase in fee would be expected to generate income of around £11,000. 

COVID-19 has imposed incredibly harsh economic circumstances on many people in our town. Further, those having to deal with the consequences of a death owing to COVID-19 will no doubt be feeling particularly hard hit. 

Therefore, the Labour Group proposes that £11,000 is set aside from the Economic Impact Reserve in order to freeze the charges at their current rates for the period of 2022/23. This will help alleviate the devastating impact of residents dealing with deaths and is proposed for one year only, meaning that fees would increase by 3% plus inflation in 2023/24. Most opinion suggests that the impact COVID-19 is having on us will have depleted by the time we get to 2023/24.”

Councillor Turmaine argued that it would alleviate the impact of the pandemic on bereaved families and was intended to be for one year only.

Members debated the amendment and the original motion.          

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

The amendment was put to the vote.

Those members voting in favour of the amendment:

The Chairman Councillor Mauthoor, Councillors Bell, Dhindsa, Ezeifedi, Khan, Shah, Smith, Trebar, Turmaine and Watling.

Those members voting against the amendment:

Mayor Taylor, Councillors Allen-Williamson, Clarke-Taylor, Devonish, Dychton, Feldman, Hamid, Hannon, Hofman, Jeffree, Johnson, Kloss, Martins, Osborn, Parker, Pattinson, A Saffery, G Saffery, Stanton, Stiff, Stotesbury, Walford, Watkin, Wenham and Williams.

There were no abstentions.

The amendment was LOST by 10 votes to 25.  There were no abstentions.

The original motion was then put to Council.

Those members voting in favour of the motion:

The Chairman Councillor Mauthoor, Mayor Taylor, Councillors Allen-Williamson, Clarke-Taylor, Devonish, Dychton, Feldman, Hamid, Hannon, Hofman, Jeffree, Johnson, Kloss, Martins, Osborn, Parker, Pattinson, A Saffery, G Saffery, Stanton, Stiff, 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.  There were 9 abstentions. 

RESOLVED –

1.         To agree proposals recommended by Cabinet on 17 January 2022 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 2022/23 is 33,891.3 as outlined in the report.

b)                      Approves the continuation of the Local Council Tax Reduction Scheme for 2022/23.

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

·                the budget for 2022/23

·                    the Capital Investment Programme 2021/22 to 2024/25

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

e)                      Approves the Capital Strategy for 2022/23, amended as necessary for the decisions of Cabinet on 17 January 2022, 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 2022/23 by 1.5%. 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 2023/24 and 2024/25.

2.         Setting the amount of Council Tax for Watford Borough Council:

a)                      That the Council’s net General Fund expenditure for 2022/23 shall be £13.734 million.

b)                      That the 2022/23 band D precept is set at £282.41 and other bands and amounts are set in accordance with the table at paragraph 2 (E)

c)                       That Watford Borough Council’s Council Tax Base for 2022/23 has been calculated at 33,891.3 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 2022/23 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)                                                    £78,016,111

(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)                                                                  £68,444,869

(C) Being the amount by which the aggregate at (A) above exceeds the aggregate at (B) above calculated by the Council in accordance with Section 31A (4) of the Act as its Council Tax Requirement for the year  £9,571,242

(D) Being the amount at paragraph (C) divided by amount at 2 c) 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)                £282.41

 (E)

Being the amounts given by multiplying the amount at paragraph 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.

(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 22 February 2022 to set the total Council Tax.

3.       Appointment of External Auditors

That Council agrees to opt in to the national scheme for auditor appointments from April 2023.