Agenda item

Agenda item

Financial Planning - Draft Revenue and Capital Estimates 2015-18 and the Treasury Management Strategy 2015-18 - Recommendations from Cabinet 19 January 2015

Report of Cabinet – 19 January 2015 (to follow)

 

Please note that this report has been printed separately for Budget Panel on 15th January, Cabinet on 19th January and Council on 28th January.  Members are reminded to bring their copy to this meeting.

Minutes:

Council received a report of Cabinet, including the original report presented to Cabinet at its meeting on 19 January 2015 and an additional report from the Shared Director of Finance setting out the Council Tax Resolution for 2015/2016.

 

The Mayor moved the budget report incorporating the following amendments to the minutes from Cabinet, which was seconded by Councillor Watkin –

 

·       £250,000 to be added to the Capital Programme for work to community centres;

·       Saving of £1,650 would not be taken from the Democratic Services budget.

 

Councillor Bell moved the following amendment which was seconded by Councillor Khan –

 

·               £30,000 for weekend burials (paid from the net revenue from fees and charges) in 2015/16, 2016/17 and 2017/18

·               £40,000 for free graffiti and bulky waste removal in 2015/16, 2016/17 and 2017/18

·               Cut the cost of the Mayor’s office £70,198 – 2015/16; £120,190 – 2016/17; £120,190 – 2017/18

·               Cut £1,680 for the cost of mobile phones for Cabinet in 2015/16, 2016/17 and 2017/18

·               £50,000 from Reserves for Watford Women’s Centre for three years, 2015/16, 2016/17 and 2017/18

·               £1,500,000 from Reserves for St Albans Road 2015/16

 

Members debated the original motion and the amendment.

 

During the debate Councillor Sharpe raised a point of order following an allegation made by Councillor Dhindsa.

 

After consultation with the Head of Democracy and Governance and the Managing Director the Chairman invited Councillor Dhindsa to withdraw the allegation, which he did.

 

The amendment was then 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 Bashir, Bell, Connal, Dhindsa, Joynes, Khan, Mauthoor, Mills, Shah and S Williams

 

Those Members voting against the amendment:

 

Mayor Thornhill, The Chairman Councillor Derbyshire, Councillors Aron, Bolton, I Brown, J Brown, Collett, Counter, Crout, Greenslade, Hastrick, Hofman, Jeffree, Johnson, Lynch, Mehta, Saffery, Scudder, Sharpe, Taylor, Walford, Watkin and T Williams

 

Those Members abstaining from voting

 

Councillor Brandon

 

The amendment was LOST by 10 votes to 23 and 1 abstention.

 

The original motion was then put to Council.

 

Those Members voting in favour of the original motion:

 

Mayor Thornhill, The Chairman Councillor Derbyshire, Councillors Aron, Bolton, I Brown, J Brown, Collett, Counter, Crout, Greenslade, Hastrick, Hofman, Jeffree, Johnson, Lynch, Saffery, Scudder, Sharpe, Taylor, Walford, Watkin and T Williams

 

Those Members voting against the original motion:

 

None

 

Those Members abstaining from voting

 

Councillors Bashir, Bell, Brandon, Connal, Dhindsa, Joynes, Khan, Mauthoor, Mehta, Mills, Shah and S Williams

 

The amendment was CARRIED by 22 votes to 0.

 

RESOLVED –

 

1.      that the proposals recommended by Cabinet on 19 January 2015 be agreed:

 

a)      that the Council’s net General Fund expenditure for 2015/16 shall be £15,176,500.

 

          b)  that the Capital Programme shall be as set out in the Cabinet report with the addition of £250,000 for improvements to the community centres.

 

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)      the current Local Council Tax Reduction Scheme continues for financial year 2015/16 (paragraph 7.6.5 of the Cabinet report refers).

 

e)      the Treasury management Strategy for 2015-2018 as set out in Appendix 11 of the Cabinet report be agreed.

 

f)       that the Portfolio Holder, in consultation with the Director of Finance, be given the delegated authority to approve any variation to the Treasury Management Strategy during the year which may be brought about by investigating the opportunity to invest for greater than 1 year and to invest in other investment instruments i.e Government bonds, Gilts and property with a view of maximising the Councils returns without significantly increasing risk.

 

2.      that Watford Borough Council’s Council Tax Base for 2015/16 has been calculated at 30,805 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 2015/16 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)

 

£65,150,020

(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)

 

£57,453,800

(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

 

£7,696,220

(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 2015/16 in respect of categories of dwellings listed in different valuation bands

 

 

 

4.      that a report including the precepts of both the County Council and the Police and Crime Commissioner be presented to the Functions Committee on 26 February 2015 to set the total Council Tax.

 

Supporting documents:

 

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