Agenda item

Members gave consideration to a report which presented the second Executive Business Plan and the Medium Term Financial Plan 2019/20 – 2023/24.

 

The purpose of the Executive Business Plan was to set out the actions to be taken by the Executive to deliver the Corporate Plan over the next three years.

 

The purpose of the Medium Term Financial Plan (MTFP) was to set a robust overall framework for the Council’s spending plans over the next five years in supporting the delivery of the Corporate Plan and underpinned by the delivery of the Financial Strategy. 

 

The report therefore outlined the Council’s revised financial plans having taken into account the Financial Analysis for changes in Government funding, the economic environment, local engagement and the priorities for the Council. 

The plan reflected the revisions to the previous estimates for the years 2018/19 to 2022/23 and included the proposed budget for 2019/20 and the inclusion of estimates for 2023/24.

 

The report also covered the setting of Council Tax for 2019/20, Fees and Charges for 2019/20, and the Capital Programme 2019/20 to 2023/24.

 

The Executive Director for Resources 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.

 

It was also noted that 4 Parish Councils had made late changes to their precept requirements, resulting in amendments having to be made to Appendices G, I J, and K.  These had been circulated to Members, however, additional copies had been placed on Members’ desks for ease of reference. 

 

The Business Plan reflected the deliverables the organisation would focus on over the next three years, whilst the MTFP showed the financial requirements to support that plan and deliver the Corporate Plan, agreed earlier in the meeting.

 

The MTFP was the primary strategic financial document of the Council and meet the regulatory requirement to: -

 

*        agree a balanced budget;

*        establish the level of Council tax for that year; and

*        Met best practice by setting out the coming year’s budget within a medium          term financial plan.

 

In 2017 the Government had provided Local Government with a four year projected settlement which established the basis for the Authority to have its Revenue Support Grant reduced to zero over the period.  The Council had managed the loss of over £1.4m of grant during that period through a range of efficiency and income generating measure which had ensured the Authority could continue to offer award winning services to its residents.  The on-ongoing revenue benefit to the Authority of those actions totalled in excess of £1.6m

 

The principles of the Financial Strategy were set out in paragraph 6 of the Executive Business Plan and the assumptions within the MTFP were listed at paragraph 9.2 of the Executive Business Plan.  It was noted that the proposed increase in Council Tax for 2019/2020 was 2.99%

 

A range of benchmarking information had been provided at paragraph 2.5 of the MTFP and within Appendix N.  This reflected that the Authority was well placed against its national peers for the challenges ahead.

 

Section 2.14 of the MTFP reflected upon the resilience indicators proposed by CIPFA and which indicated the Council was in a strong position in its ability to manage financial risk and future sustainability.

 

Sections 3.10 and 3.11 of the MTFP set out the Capital Investment Programme and Funding together with borrowing requirement which totalled £37m reflecting the ambitions of the Council.

 

Finally the Executive Director of Resources drew Members’ attention to his statement at Section 4 of the MTFP 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: -

 

“This is an MTFP that funds an ambitious growth programme, with the increased efficiencies already achieved. It supports our creative business aspirations whilst providing security for the council’s longer term ambitions.

 

I will mention the three main headings under our plan.

 

1.         Our People - Our Customer first programme is an investment in the way we do business / interact with our customers.  With the acquisition of new technology we will engage with residents and business in a more efficient and pro-active way, helping to create safer communities and positive enforcement in a timely manner.

        

2.         Our Place - Improved ways of working will again bring benefits to Housing and social regeneration.  Our delivery of the Japan road development with partners, a new Leisure facility at Market Rasen involving a £6m investment.  The largest single investment ever for Market Rasen.  Our growth agenda includes projects like the Food Enterprise Zone at Hemswell Cliff, the Townscape Heritage Initiative for Gainsborough breathing new life into the Town Centre. The Crematorium, another substantial investment as part of creating that complete community provision. Due to open early 2020.

 

3.         Our Council - Our ambition is to continue to improve operation efficiencies, building on the robust assurance provided by a number of recent internal audit reports to deliver a customer centric organisation with a work force fit for the 21st century. We will also be investing in an ICT infrastructure and estate to support and improve all our services. A comprehensive corporate strategy which supports the council for the next five years and continues to improve the experience of people living in the district of West Lindsey.

 

I’d like to take this opportunity to thank all staff and members for the part they have played in the production of our plan.  Thank you”

 

The Leader concluded his budget speech by moving the recommendations.

 

The Leader of the Opposition then addressed Council advising he was of the view that the Capital Investment Strategy was wholly inappropriate and that it was dreadfully wrong that two individuals were solely responsible for the investment of up to £30m of council tax payers money.  He proposed the delegation granted to these individuals be revoked and all such capital investments should be by way of Committee decision.

 

Members across the Chamber spoke in support of the Capital Investment Strategy noting that every decision had been made and reported via the Corporate Policy and Resources Committee.  Assurance was offered that investments were sensibly spread and would generate considerable sums of much needed money for the Authority.  Investments were made under strict guidelines agreed by Committee and were genuine property investments.  It was noted that such investments were now common practice and an accepted way of funding services in light of Government funding reductions.

 

In response to a Member’s question the Executive Director of Resources advised that whilst the world economy would always impact on the wider UK economy the Council was at no greater risk than that in the normal commercial environment.

 

Some Members reported of having previously being concerned, but having met with the Executive Directors, now considered the portfolio to be well balanced, investments well spread and the income generated was a welcome addition to Council funds.

 

The proposal to revoke the delegation was not supported

 

The recommendations, as set out in the report having being moved and seconded earlier in the meeting, 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: - Cllrs Bardsley, Bibb, Bierley, Brockway, Devine, England, Fleetwood, Howitt-Cowan, Kinch, Lawrence, J McNeill, Mewis, Milne, Oaks, Palmer, Parish, Patterson, Rodgers, Smith, Summers, Waller, Welburn and White

 

Against: - Cllrs Bond, Cotton, Rainsforth, and Young

 

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 2019/20 to 2023/24 (Appendix 2) be approved and Members are aware of the associated Risks included at Appendix B;

 

(d)          a Mid-Year Review of the Medium Term Financial Plan be received during 2019/20;

 

(e)          the Revenue Budget 2019/20 (Appendix A) be set;

 

(f)           the Fees and Charges 2019/20 (Appendix C/Ci) be set;

 

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

 

(h)         the Capital Programme 2019/20 to 2023/24 and Financing (Appendix E) be approved; 

 

(i)           the Treasury Management Strategy 2019/20 be adopted and  the Treasury Investment Strategy, the detailed Counter Party criteria, the Treasury and Borrowing Prudential Indicators (Appendix F)

 

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

 

(k)          a 2.99% increase in the Council Tax (Appendix G-K) be approved; and

 

(l)           the 2019/20 Pay Policy Statement (Appendix L) and Human Resources Statement 2019/20 (Appendix M) be approved.