Report of Cabinet 21 January 2019

 

Report of Director of Finance

Council received a report of the Director of Finance including

 

·             a report of the Cabinet meeting held on 21 January 2019 and its supporting documents

·             Council Tax Resolution 2019/20 report

·             Budget Gap, as amended by the decision by Council 23 January 2019

·             Medium Term Financial Strategy 2019 – 2022, as amended by the decision of Council 23 January 2019

 

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

 

Councillor Bashir moved an amendment to the budget report, which was seconded by Councillor Khan.  The full amendment was circulated at the meeting.  (It has been attached to these minutes as Appendix 1.) 

 

The key points were as follows –

 

·             “Cancel on demand transport scheme, making a total saving of £990,000 over the four years of the Medium Term Financial Strategy

·             Reduction in the Mayor’s office costs, £100,000 for the next four years

·             Reduction in redundancy costs which were still to be determined

·             An additional £38,000 each year for four years to Citizen’s Advice

·             An additional £31,000 each for four years towards homelessness

·             Womens Centre to receive £25,000 each year for four years

·             £75,000 each year for four years to fund three PCSOs, to be located in Leggatts, Meriden and Central wards

·             Bus Fund £56,000 each year for four years”

 

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 put to the vote

 

Those members voting in favour of the amendment

 

Councillors Bashir, Bell, Connal, Dhindsa, Khan, Mauthoor, Mills, Shah, Smith and Turmaine

 

Those members voting against the amendment

 

The Chairman, Councillor Martins, Mayor Taylor, Councillors Barton, Bolton, Cavinder, Collett, Dychton, Fahmy, Grimston, Hamid, Hastrick, Hofman, Jeffree, J Johnson, S Johnson, Kloss, Laird, Parker, Saffery, Scudder, Sharpe, Stotesbury, Walford, Watkin and Williams

 

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

 

The original motion was then put to Council.

 

Those Members voting in favour of the original motion:

 

The Chairman, Councillor Martins, Mayor Taylor, Councillors Barton, Bolton, Cavinder, Collett, Dychton, Fahmy, Grimston, Hamid, Hastrick, Hofman, Jeffree, J Johnson, S Johnson, Kloss, Laird, Parker, Saffery, Scudder, Sharpe, Stotesbury, Walford, Watkin and Williams

 

Those Members voting against the original motion:

 

None

 

Those Members abstaining

 

Councillors Bashir, Bell, Connal, Dhindsa, Khan, Mauthoor, Mills, Shah, Smith and Turmaine

 

The original motion was CARRIED by 25 votes to 0.  There were 10 abstentions. 

 

RESOLVED –

 

1.      that the proposals recommended by Cabinet on 21 January 2019, as amended by the decision taken at Council on 23 January 2019, be agreed:

 

         a)      that 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 2019/20 is 32,840.6 as outlined in the report.

 

         b)      that the continuation of the Local Council Tax Reduction Scheme for 2019/20 be approved.

 

         c)      that the budget (Attachment 1) as laid out in the report, as amended by the decision taken at Council on 23 January 2019, be approved, including:

 

·             the base budget for 2019/20

·             the growth and savings

·             the Capital Investment Programme 2018-22

 

         d)      that the schedule of fees and charges and incoming charging policy (Attachment 2) be approved.

 

         e)      that the Capital Strategy for 2019/20, as amended by the decision taken at Council on 23 January 2019, be approved

 

·             that the council’s operational boundary be £194M

·             that the council’s authorised limit be £209M

·             that the Director of Finance be authorised to make appropriate investment of the Croxley Park top up fund of £88m in accordance with the financial model, providing the right balance between security, liquidity and yield, based on advice from the council’s investment manager

 

                   and delegates to the Director of Finance and Portfolio Holder Resources responsibility for agreeing and maintaining the Treasury Management policy.  (Attachment 3)

 

         f)       that the annual Council Tax for a Band D property be increased in 2019/20 by 2.2%.  This will apply to all other bands.

 

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

 

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

 

         i)       that the indicative budgets for 2020/21 and 2021/22 and the need for further work to close the budget gap be noted.

 

                   Setting the amount of Council Tax for Watford Borough Council

 

2.      that the council’s net General Fund expenditure for 2019/20 shall be £12.696 million.

 

3.      that the 2019/20 band D precept is set at £268.23 and other bands and amounts are set in accordance with the table at paragraph 5 (E).

 

4.      that Watford Borough Council’s Council Tax Base for 2019/20 has been calculated at 32,840.6 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 2019/20 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)   £74,281,2088 (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)   £65,472,374 (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   £8,808,834 (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)   £268.23 (E) Council Tax Valuation Bands Conversion Factor to Band D Watford’s Share (£) A 6 / 9 178.82 B 7 / 9 208.62 C 8 / 9 238.43 D 1 268.23 E 11 / 9 327.84 F 13 / 9 387.44 G 15 / 9 447.05 H 2 536.46   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 2019/20 in respect of categories of dwellings listed in different valuation bands

 

6.      that a report including precepts of both the Police and Crime Commissioner for Hertfordshire and Hertfordshire County Council be presented to the Council Functions Committee on 27 February 2019 to set the total Council Tax.