Agenda item

Note: In accordance with paragraph, 14.4 of Council Procedure Rules and in- line with national Regulation the budget decision will be made by way of recorded vote.

 

Note: The County Council is yet to formally confirm its Council Tax (meeting being held 21 February) in the event that there are any changes from the figures published within this report, the following sections of this report will be re-issued prior to the Council Meeting.

 

a)        the table at 3.3 of the MTFP

b)         Appendix 8 and

c)         Appendix 12

Members gave consideration to a report which presented the Executive Business Plan and the Medium Term Financial Plan (MTFP) 2020/21 – 2024/25.  These documents were central to the Council’s financial and strategic planning.

 

The Chief Executive presented the report and in doing so placed on record his thanks to Tracey Bircumshaw and the finance team for their work in preparing the documents presented to Members.

 

The Executive Business Plan set out the current contextual environment at a national, regional and local level in which the Council operated and identified at a high level the deliverable outcomes over the next three years.

 

These outcomes were linked to the Members’ objectives as set out in the Corporate Plan 2019-2023.

 

The Medium Term Financial Plan set out how the Council intended to finance the Executive Business Plan and forecast over a five year period the revenue and capital financial position of the Authority.   In addition, it attempted to forecast for a ten year horizon the impact of the Council’s longer term projects.

 

The Budget presented to Members for 2020/21 of £14,357m was balanced with a transfer to reserves of £1.2m.

 

This position had been arrived at due to the one year roll over settlement which was announced in November 2019. However, with the Fairer Funding review, the Business Rate Reset, Business rate retention and the Spending Review to come in 2020, the settlement for future years was very uncertain.

 

The underlying assumptions for the budget could be found on page 69, section 2.3 and included 2% increase in Council Tax. It was noted this was lower than the maximum the Council could have charged, which would have been an increase of £5 equivalent to an increase of 2.35%.

 

The Chief Executive confirmed that the MTFP met the requirements of the regulations; the requirement for the local Authority to agree a balanced budget

for each financial year, prior to the start of that year; the requirement for the local Authority to establish the level of Council Tax for the coming year on the basis of that budget and, furthermore, met best practice (supported by CIPFA) by setting out the coming year’s budget in addition to a 5 year MTFP.

 

Finally the Chief Executive drew Members’ attention to his S151 Officer statement at page 74, section 2.10 on the robustness of estimates, the adequacy of reserves and the affordability of capital investments.

 

The Leader of the Council made the following speech in response: -

 

“Thank you, Chairman.

 

The Executive Business Plan and Medium-Term Financial Plan 2020/21 - 2024/25 are the documents that form the Council’s Budget.

 

As members who sit on the policy committees will know, the process of drawing together the budget is an almost never-ending task; and I would wish to record my thanks and that of colleagues on the Administration’s benches for all the officers who have played their part in the process. Thank you.

 

As you might expect, Chairman, the Budget documentation should contain no surprises; these have been through our committee structure over recent months and culminate here at Full Council this evening.

 

What I am pleased to say is that this budget for £14.357m of revenue spending next year aligns with the Administration’s policy priorities and recognises the good financial position the Council finds itself in.

 

This budget will support the delivery of the Council’s vision for West Lindsey to be a great place to be where people, businesses and communities can thrive and reach their potential.We can continue to deliver award winning services, improving the experience of our residents and continuing to deliver efficiencies.

 

Chairman, colleagues may be aware that the referendum threshold, which stood at 3% last year, has been reduced back to 2% this year (or £5, whichever is greater). On that basis if we wanted to increase the Council Tax by the maximum we could, without a referendum, we would be looking at an increase of 2.35%. However, I am pleased to say that the proposal in the paper is for a 2% rise in the district council’s portion of the Council Tax. This is because of the sound management of the Council’s finances by both councillors on these benches and our dedicated team of officers. It is my understanding that West Lindsey is the only authority in the county not to be increasing its share of the council tax by referendum limit.

 

This budget includes additional resource investing in our priority areas meaning an Environmental Health Officer, and additional CCTV Operator and makes a long-term commitment to supporting our visitor economy with long term funding for the post of a Visitor Economy Officer. We will also be filling a new post of Conservation and Heritage Projects Officer.

 

West Lindsey is a district that is making real progress. We are delivering on the commitments that we made to local residents in last year’s elections. The Administration’s record is one that has not been about short-term opportunism, or quick fix solutions to the challenges we face; but the dedicated, deliberate and steady long-term approach to policies designed to make the Council’s financial position more resilient – at a time when central government continue to reduce grant funding and consider limiting our ability to find innovative solutions to fund the frontline services that local people expect and rely on from this Council.

 

The Administration is committed to investing locally to deliver a bright future for everyone across the district. Which is why the tabled paper includes our ambitious plans for £24,117,619 of capital expenditure next year and a total of £37,767,275 over the five-year period of the medium-term financial plan.

 

We are investing in our Market towns

Gainsborough

•        £40,000 for the Gainsborough Shop Front Improvement Scheme

•        £100,000 for the Unlocking Housing, Living over the Shop grant       scheme

•        £250,000 for improvements at the Trinity Arts Centre

•        £332,775 Heritage regeneration in Gainsborough – not just this        year but over the next four years a like for like amount each year

•        £352,300 for the redevelopment of the 5-7 Market Place,        Gainsborough

•        £1,010,000 contribution for the improvements to the Corringham      road junction scheme

•        Funding for the Riverside Gateway project to make progress on        that site

•        £2,162,000 for the regeneration Gainsborough and the housing        scheme on Bowling Green Lane

•        £2,350,000 for the new cinema on the old Lindsey Centre site in       partnership with Savoy to transform and regenerate          Gainsborough’s Market Place.

Market Rasen

•        £300,000 to develop the Market Rasen 3-year vision,

•        And we will complete the new Leisure Centre this summer

Caistor

•        We are putting in place a seven-figure sum of funding for the             delivery of key improvements to health services in Caistor next          year

 

And in other communities across the district we will be investing money too:

Hemswell

•        £150,000 to make improvements to the public realm as part of the   Hemswell Masterplan

Glentham

•        £4,600,000 for the new central depot at a site near the Caenby         Corner roundabout on the A46 in Glentham.

 

But whilst we are investing substantial sums in the communities of West Lindsey we shall also be investing in our own institution. We will be implementing modern technology which will put the customer at the centre of everything we do by improving accessibility and creating service improvements in addition to cost savings through efficiency. We will invest:

•        £19,400 for updated and improved telephony including the    contact centre

•        £97,000 to refresh and improve storage facilities

•        £100,000 to refresh the public sector hub on the ground floor of        the Guildhall

•        £110,000 to enhance our asset stock

•        £220,000 for a new financial management system

•        £280,000 in our Customer First programme which is leading the       way in which this council delivers effective and efficient services

 

And we are earmarking £7,000,000 for further commercial property portfolio investments should suitable properties come forward on the market.

 

Of the more than £24m of capital expenditure next year, over £6m will be financed through grant funding streams, £5½m will be from revenue finance, just over £2m will come from capital receipts and the rest (£10.2m) will come from prudential borrowing.

 

But, Chairman, as good as the papers tabled in the agenda-pack tonight are, I have wanted for sometime to restore this chamber’s function as the place where we debate ideas and engage in topics; not simply nod through and ratify decisions made elsewhere. To that end I am pleased to move the recommendations of the paper as published – but I have a number of amendments that I would like to make.

 

Firstly, Chairman, you will remember our visit to Nettleham C of E Aided Junior School at the end of last year? The children were very impressive and there is a deep commitment in our young people that we all have a responsibility to tackle the unsustainability of human activity on our shared environment. So, I propose that we provide the opportunity of educational talks to every primary school in the District, a cost pressure of £6,000, regarding environmental sustainability and recycling – helping our young people to be even better champions and using their influence with their parents and grandparents to improve recycling behaviours at home.

 

Chairman, I note that on these benches Members made a commitment to freeze the charge for the green waste service at £35. I am pleased to confirm that that promise is being kept. And let us not forget that we fought so hard to keep the green bin service included within the Council Tax far longer than other colleagues across the county, until it became financially unviable to continue – as austerity cuts from central government continued to squeeze well beyond the original horizon of 2015 – and continue a decade on.

 

Chairman, West Lindsey District Council should surely be a council that always strives to provide the best possible value for money services? To that end, I propose that Council increases the number of collections of the Green garden-waste wheelie bin service, for a one-year pilot scheme, with an additional collection at the end of the current cycle and an additional collection at the start of the next cycle. Officers have kindly provided an estimate figure of £76,000 as a cost pressure.

 

Many in this chamber will be wondering just exactly how I’m going to pay for these rabbits that I am pulling out of the hat!  To balance the budget, I propose to reduce the transfer to the general fund, identified on page 85 (appendix 1, 3rd table) from £927,500 to £845,500.

 

That, Chairman, is two extra collections of green wheelie bins for residents who subscribe for the service, and engaging with our young people to make the next generation drivers for behavioural change in the households of the district – without the need to collect additional Council Tax or charge a higher fee for the service. I trust that our officers will confirm that these proposals will require no changes to the calculations in the paper regarding Council Tax?

 

I am pleased to commend this budget to the Chamber. and move the additional recommendations I have set out. This is a budget that will help us to deliver our commitment to build a brighter future for everyone across the district. Chairman, thank you”

 

The matter was opened for debate and the deputy Leader seconded the additional recommendations the Leader had made through the course of his budget speech.

 

The Leader of the Opposition questioned whether the budget went far enough, with no mention of monies set aside for the impact of flooding, something the District had experienced recently and would undoubtedly face again in the near future.  He was of the view that a resilience fund should be being established for such emergencies. 

 

In response, the Leader re-iterated that it was being proposed that £845,500 be transferred to the general fund balance.  Rather than establish a specific resilience fund for flooding, this would give the Authority greater flexibility to tackle such emergencies, whether they be flooding or of another nature.   The Authority also needed to bear in mind the future uncertainty regarding future settlements and thereby transferring money to the general balance fund allowed flexibility in uncertainty.

 

Councillor Bunney took the opportunity to thank the Administration for the money afforded to Market Rasen, more than had been anticipated.  The Leader of the Council apologised for his oversight confirming that £200k as opposed to the £300k he had verbally stated had been allocated, offering apologies again.

 

The amendments proposed and seconded throughout the course of the debate, and shown in bold above, were put to the vote and CARRIED 

 

The recommendations, as set out in the report, including the amendments, having being moved and seconded, were then put to the vote. In accordance with required legislation for voting on the Council’s budget, a recorded vote was taken.

 

Votes were cast as set out below:

 

For: - Councillors Bierley, Brockway, Coulson, Darcel, Davies, Devine, Ellis, England, Fleetwood, Grimble, Hill, Howitt-Cowan, Lawrence, McCartney, McNeill G, McNeill J, Milne, Patterson, Regis, Rodgers, Waller, Welburn (22)

 

 

Against: - Councillors Boles, Cotton, Dobbie, Rollings, Snee, J, Snee M, Young (7)

 

Abstain: - Councillors Bunney, Clews, Rainsforth, White (4)   

 

With the majority of Councillors voting for the proposals, the motion was declared CARRIED and on that basis it was:-

 

RESOLVED that: -

 

a)    the external environment and the severity of the financial challenges being faced as detailed in the Financial Strategy be recognised;

 

b)    the Statement of the Chief Finance Officer on the Robustness of Estimates and Adequacy of Reserves be accepted;

 

c)    the Medium Term Financial Plan 2020/21 to 2024/25 be approved and the associated Risks be noted (Appendix 2);

 

d)   the Revenue Budget 2020/21 (Appendix 1) be set; subject to the amendments approved during the course of the debate and highlighted in bold above;

 

e)   the movement to and from Reserves (Executive Summary 1.4) be approved; 

f)     the Fees and Charges 2020/21 (Appendix 3) be set;

 

g)   the Capital Investment Strategy (Appendix 4) be adopted;

 

h)   the Capital Programme 2020/21 to 2023/24 and Financing (Appendix 5 and 6) be approved;  

 

i)     the Treasury Management Strategy 2020/21 be approved and as such  the Treasury Investment Strategy, the detailed Counter Party criteria, the Treasury and Borrowing Prudential Indicators (Appendix 7) be adopted;

 

j)     the Minimum Revenue Provision (MRP) Policy as contained in the Treasury Management Strategy (Appendix 7) be approved;

 

k)    a 2% increase in the Council Tax and set a charge of £217.74 Band D Equivalent. (Appendix 8-12) be approved;

 

l)     the 2020/21 Pay Policy Statement (Appendix 13) be approved; and

 

m) the Human Resources Statement 2020/21 (Appendix 14) be accepted.