Agenda item

Agenda item

Financial Planning

Report of Director of Finance

 

Report of Cabinet 16 January 2017 (to follow)

 

Please note that this report has been printed separately for Budget Panel on 10 January, Cabinet on 16 January and Council on 24 January. Members are reminded to bring their copy to this meeting, including any updates received.

Minutes:

Council received a report that had been considered at Cabinet on 16 January 2017 and Budget Panel on 10 January 2017.  The Cabinet minutes and Council Tax Resolution 2017/18 report were circulated separately to councillors. 

 

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

 

Councillor Bell moved an amendment to the budget report, attached as Appendix 1 to these minutes, which was seconded by Councillor Asif Khan.  The amendment included the following proposals –

 

“ – cutting the costs of mayor’s office – saving £237k

- pegging the Mayor’s salary to the leader of HCC

- freeze council tax – not increased

- remove the council tax subsidised Mayor’s Lib Dem adviser £130k over 3 years

- cut to printing budget – saves £225k over 3 years

- work with children’s play workers to make it self-sufficient over 3 years

- consultants – freeze the costs

- freeze taxi and cemetery fees – this reverses all increases and leaves income budgets set at 2016/17 level

- scrap bulky white goods

Use of reserves to create a £1,000,000 earmarked reserve for the regeneration of St. Albans Road: this will be a transfer from the Economic Impact Reserve “

 

Members debated the original motion and the amendment.

 

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

 

The amendment was then put to the vote

 

Those members voting in favour of the amendment

 

Councillors Bashir, Bell, Connal, Dhindsa, Joynes, Ahsan Khan, Asif Khan, Mauthoor, Shah and Turmaine

 

Those members voting against the amendment

 

Mayor Thornhill, the Chairman Councillor Walford, Councillors Barks, Bolton, Cavinder, Collett, Crout, Dychton, Fahmy, Grimston, Hastrick, Hofman,

J Johnson, S Johnson, Kent, Laird, Maestas, Rindl, Saffery, Scudder, Sharpe, Steele, Taylor, Watkin and Williams

 

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 original motion:

 

Mayor Thornhill, the Chairman Councillor Walford, Councillors Barks, Bolton, Cavinder, Collett, Crout, Dychton, Fahmy, Grimston, Hastrick, Hofman,

J Johnson, S Johnson, Kent, Laird, Maestas, Rindl, Saffery, Scudder, Sharpe, Steele, Taylor, Watkin and Williams

 

Those Members voting against the original motion:

 

Councillors Bashir, Bell, Connal, Dhindsa, Joynes, Ahsan Khan, Asif Khan, Mauthoor, Shah and Turmaine

 

The original motion was CARRIED by 25 votes to 10.  There were no abstentions. 

 

RESOLVED –

 

1.      that the proposals recommended by Cabinet on 16 January 2017 be agreed:

 

         a)      that the council’s net General Fund expenditure for 2017/18 shall be £14,261,936.

 

         b)      that the Capital Programme shall be as set out in the Cabinet report.

 

         and in approving these recommendations

 

         c)      to have 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.

 

2.      Setting the amount of Council Tax for Watford borough Council

 

         That Watford Borough Council’s Council Tax Base for 2017/18 has been calculated at 32,062.1 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.

 

3.      that the following amounts be now calculated by the Council for the year 2017/18 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)

 

£71,683,952

(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)

 

£63,513,246

(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

 

£8,170,706

(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)

 

£254.84

(E)

Council Tax Valuation Bands

Conversion Factor to Band D

Watford’s Share (£)

A

6 / 9

169.89

B

7 / 9

198.21

C

8 / 9

226.52

D

1

254.84

E

11 / 9

311.47

F

13 / 9

368.10

G

15 / 9

424.73

H

2

509.68

 

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 2016/17 in respect of categories of dwellings listed in different valuation bands

 

 

 

 

 

 

4.      that a report including precepts of both Hertfordshire County Council and the Police and Crime Commissioner for Hertfordshire be presented to the Functions Committee on 28 February 2017 to set the total Council Tax.

 

5.      that the continuation of the Local Council Tax Reduction Scheme for 2017/18 be approved.  This will then be subject to a review which will be carried out in 2017/18 with the intention of implementing a new scheme from 2018/19 onwards.

 

6.      that the estimate of surplus and deficit position on the Collection Fund be approved.

 

7.      that the schedule of fees and charges be approved.

 

8.      that the strategy for flexible use of capital receipts be approved.

 

9.      that the increase of the Council’s Key Decision Limit to £0.25 million be approved with immediate effect.

 

10.    that the indicative budgets for 2018/19 and 2019/20, the Council’s future spending plans which are supported by internal borrowing (see paragraph 6.4 onwards of the main report) utilising the Council’s reserves and cash balances, be noted.

 

11.    that the Treasury Management Strategy for 2017/18 be approved. 

Supporting documents:

 

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