Agenda item

Agenda item

Financial Planning

Report of Director of Finance

Report of Cabinet 22 January 2018

 

Minutes:

Council received a report of the Director of Finance including

 

·             a report of the Cabinet meeting held on 22 January 2018

·             Council Tax Resolution 2018/19 report

·             Medium Term Financial Strategy 2017/18 to 2020/21

·             Income Charging Policy 2018/19

·             Treasury Management Strategy 2018/19

·             Section Head Pay – proposal for an extended pay band

·             Clarendon Road Improvements report

 

The reports 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, which was seconded by Councillor Asif Khan.  The amendment was as follows –

 

“that a balanced budget be put forward, increasing Council Tax by 2%.  This includes –

 

·             50% cut to the Mayor’s office costs

·             Free bulky waste collection

·             Freeze burial fees for residents and an increase cost to non-residents

·             Set up an investment fund for North Watford St Albans Road

·             £50,000 seed funding for community energy scheme

·             £10,000 for a Private tenants’ association

·             Reinstatement of play workers, year 1 £150,000, year 2 £100,000 and year 3 £50,000”

 

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

 

The Chairman Councillor Dhindsa, Councillors Bashir, Bell, Connal, Ahsan Khan, Asif Khan, Mauthoor, Mills, Shah, Smith and Turmaine

 

Those members voting against the amendment

 

Mayor Thornhill, Councillors Barks, Bolton, Cavinder, Collett, Crout, Dychton, Fahmy, Grimston, Hastrick, Hofman, Jeffree, J Johnson, S Johnson, Kent, Laird, Martins, Parker, Saffery, Scudder, Sharpe, Steele, Taylor, Walford, Watkin and Williams

 

The amendment was LOST by 11 votes to 26.  There were no abstentions.

 

The original motion was then put to Council.

 

Those Members voting in favour of the original motion:

 

Mayor Thornhill, Councillors Barks, Bolton, Cavinder, Collett, Crout, Dychton, Fahmy, Grimston, Hastrick, Hofman, Jeffree, J Johnson, S Johnson, Kent, Laird, Martins, Parker, Saffery, Scudder, Sharpe, Steele, Taylor, Walford, Watkin and Williams

 

Those Members voting against the original motion:

 

The Chairman Councillor Dhindsa, Councillors Bashir, Bell, Connal, Ahsan Khan, Asif Khan, Mauthoor, Mills, Shah, Smith and Turmaine

 

The original motion was CARRIED by 26 votes to 11.  There were no abstentions. 

 

RESOLVED –

 

1.      that the proposals recommended by Cabinet on 22 January 2018 be agreed:

 

         a)      that the Council’s net General Fund expenditure for 2018/19 shall be £13.520 million.

 

         b)      that the continuation of the Local Council Tax Reduction Scheme for 2018/19 be approved.

 

         c)      that the estimate of the surplus position on the Collection Fund be approved.

 

         d)      that the budget as laid out in the report be approved, including:

 

·             the base budget for 2018/19

·             the growth and savings

·             the Capital Investment Programme 2017-21

 

         e)      that the schedule of fees and charges be approved and that delegated authority be given to the Director of Finance in conjunction with the Managing Director and the Portfolio Holder (Resources) to implement any recommendations emanating from a full review of the Council’s discretionary fees and charges.

 

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

 

         g)      that the annual Council Tax for a Band D property be increased in 2018/19 by 2.99%.  This will apply to all other bands.

 

         h)      that the creation of an enhanced band 11 pay band for some of the section head posts within the council be approved.

 

         i)       that delegated authority be approved for the Managing Director in consultation with the Director of Finance to provide parental guarantees for the Council’s projects as required subject to those guarantees complying with an approved business plan.

 

         j)       that the key risks be noted and their proposed mitigations be approved.

 

         k)      that the advice provided by the Director of Finance on the robustness of estimates and the adequacy of reserves be noted.

 

         l)       that the indicative budgets for 2019/20 and 2020/21 be noted.

 

         m)     that the Treasury Management Strategy for 2018/19 be approved including:

 

·             delegated authority to the Portfolio Holder, in consultation with the Director of Finance, to approve any variation to the Treasury Management Strategy during the year with the objective of maximising the Council’s returns without significantly increasing risk.  Any changes will be notified to Council at the earliest opportunity.

·             the Council’s Minimum Reserve Provision (MRP) Strategy and Policy Statement (paragraph 2.3 of the Treasury report).

·             the Council’s treasury prudential indicators (paragraph 3.3 of the Treasury report)

·             the Annual Investment Strategy (paragraph 3.5 of the Treasury report) including the counterparty list contained in the Annex A to the report (Treasury Management Practices 1).

·             the flexibility for the Property Investment Board to invest treasury funds within its scheme of delegation.

 

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

 

         That Watford Borough Council’s Council Tax Base for 2018/19 has been calculated at 32,393.9 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 2018/19 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)

 

£71,626,746

(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)

 

£63,124,643

(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

 

£8,502,103

(D)

Being the amount at (C)divided by amount at 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)

 

£262.46

(E)

Council Tax Valuation Bands

Conversion Factor to Band D

Watford’s Share (£)

A

6 / 9

174.97

B

7 / 9

204.14

C

8 / 9

233.30

D

1

262.46

E

11 / 9

320.78

F

13 / 9

379.11

G

15 / 9

437.43

H

2

524.92

 

Being the amounts given by multiplying the amount at (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 2018/19 in respect of categories of dwellings listed in different valuation bands

 

 

 

4.      that a report including precepts of both the Police and Crime Commissioner for Hertfordshire and Hertfordshire County Council be presented to the Functions Committee on 26 February 2018 to set the total Council Tax.

 

5.      that the capital spend of £1,600,000 as front-funding for the improvement works to Clarendon Road as part of the Town centre improvement works be approved and Council notes and accepts the risks in the project.

 

6.      Council notes that a LEP bid has been made for £2,000,000 and this sum will be placed back into capital financing to repay the sums set aside by the Council up front to cover the cost of the works should the Council be successful in the bidding process.

Supporting documents:

 

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