Agenda item

Budget 2019/20

·              To consider and adopt the resolutions contained the joint reports of the Executive Member for Finance and the Corporate Director of Finance and Systems, presented to the Executive on 20 February 2019 and set out (a) - (d) below.

 

              To set and approve the Council Tax Requirement for the District for the year beginning 1 April 2019, in accordance with the Local Government Finance Act 1992, as amended.

 

              To set and approve, in accordance with the Local Government Finance Act 1992 as amended, the amounts as the amounts of the Council Tax for the year 2019/2020 for each of the categories of dwellings included in the respective valuation bands A to H.

 

Minutes:

(Note: PROCEDURAL ARRANGEMENTS - In respect of the main item of business on the agenda, the Mayor announced that the Leader of the Council (or his nominee) would have a maximum of 15 minutes to make the initial speech and a further maximum of 15 minutes to summarise the debate. The Leaders of the Main Opposition and the Minority Opposition Groups (or their respective nominees) would each have a maximum of 15 minutes and 10 minutes, respectively, to make their initial speeches and a further maximum of 5 minutes to summarise on behalf of their respective Groups. The Mayor also outlined the approach for dealing with amendments. Members were instructed that, should an amendment be made to the main motion, the mover of that amendment would have a maximum of 3 minutes to make their speech. The Mayor further confirmed that, the time for all other speeches would be restricted to a maximum of 3 minutes.)

 

The Executive Member for Finance presented a number of reports setting out the proposed budget for the forthcoming year which had been recommended by the Executive at its meeting held earlier that evening.

 

It was moved and seconded that the Executive’s recommendations set out in each of the following reports, be approved and that the Council sets and approves the amounts as the amounts of the Council Tax for the year 2019/2020, in accordance with the Local Government Finance Act 1992, as amended, for each of the categories of dwellings included in the respective valuation bands A to H:

 

-      Executive’s Revenue Budget Proposals 2019/20 and Medium Term Financial Strategy 2020/21 – 2021/22

-      Capital Strategy, Capital Programme and Prudential and Local Indicators 2019-2022

-      Treasury Management Strategy 2019/20 – 2021/22

-      Fees, Charges and Allowances 2019/20

 

Councillor Myers responded to the Motion on behalf of the Conservative Group and gave notice of an amendment. Councillor Bowker, on behalf of the Liberal Democrat Group and then Councillor Coggins, on behalf of the Green Party Group also responded to the Motion.

 

Dealing with the amendment signified, it was moved and seconded as an amendment that:

 

“The Council agrees these recommendations, subject to the following amendments:

 

Amendment

Some benefits

Impact on Revenue

Impact on Capital

Freeze at the present level the general Council Tax for the financial year

2019/20, reversing the proposed 2.99% increase.

Council tax forms a higher proportion of outgoing for lower income families.  There are already significant precept

increases being applied that lower income households will be required to budget for.

£2.97m

None

Reintroduction of weekly general refuse collections of household domestic waste.

The proposal will see a reduction in general litter and fly-tipping across the borough and offer a comprehensive household waste collection service.

£2.4m (maximum)

None

Cancel proposed parking charges for 1800 – 2000 period and stop proposed increase for short stay car parking.

Fairer for short term shoppers in town centres. Helps maintain night-time economy.

£84,000

None

Install 60 charging stations for electric cars.

For plug-in customers: Convenience. Attracts out of town visitors.  Supports local business.

Contained within present budget.  Ignores income from customers.

£150,000

Increase removal of old street trees which are in danger of falling or are dying and replace with smaller, ornamental trees on a 5 for 2 basis.

Safety. Improves air quality and street scene.  Reduces damage to footpaths and roadways.  Reduces insurance claims

None

£100,000

Institute a Council Accreditation Scheme for retail businesses that do not supply goods / foods in single-use plastic containers or plastic bags.

Less landfill, improved recycling. Boost for local retailers.

£2,000 (notional)

None

Introduce CCTV in public parks and areas prone to fly-tipping.

Increased public safety. Improves civic pride.  Acts as a deterrent. Saves clear-up costs.

None

£282,000

Proactively offer grants for resident groups that take on litter picking.  Increase funding for this initiative by £16,000.

Bags, reach-grabbers, yellow vests, etc. Website to attract volunteers and communicate with members.

£16,000

None

Proactively offer grants for Friends of Parks for marketing. Increase maximum grant from £2,000 to £4,000.

Websites, leaflet drops, membership management systems

£118,000

None

Establish scheme for employers to buy parking permits for staff.

Guarantees parking for workers. 

None (Cost Neutral)

None

(Cost Neutral)

Borrowing for Capital Expenditure

To cover implementation of capital schemes referenced above

£45,000

None

 

 

£5,633,000

£532,000

 

The Corporate Director for Finance and Systems has advised that these proposals, if adopted, would enable the Council to set a legal budget.  These proposals would be funded through the application of the following funds:

 

-      General Reserve (£1 million)

-      Smoothing Reserve (£1 million)

-      Business Rates Growth Pilot (£1 million)

-      Budget Support Reserve (£2.633 million)”

 

Following a debate on the matter, the amendment was put to the vote and declared lost.

 

The Council proceeded to debate the substantive Motion and then, in accordance with procedures agreed at the outset of the debate, the Political Group Leaders summarised the essential views of their respective group and responded to some of the issues that had arisen from the debate.

 

The substantive Motion was then put to a recorded vote, in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014. The result was as follows:

 

Those in favour of the substantive Motion: Councillors Acton, Adshead, S.B. Anstee, S.K. Anstee, Dr. Barclay, Baugh, Bennett, Miss Blackburn, Bowker, Boyes, Mrs. Bruer-Morris, Brophy, Brotherton, Bunting, Butt, Carey, Cawdrey, Chilton, Cordingley, Coupe, Dillon, Duffield, Mrs. Evans,  N. Evans, Freeman, Harding, Holden, Hopps, Hyman, Hynes, Jarman, Lally, Lloyd, Longden, Malik, Mitchell, Myers, New, Patel, Procter, J.R. Reilly, Rigby, Ross, Sharp, Shaw, Slater, Stennett, Taylor, Thomas, Walsh, A. Western, D. Western, Whetton, Whitham, Whyte, A.J. Williams, Wright, M. Young and Mrs. Young.

 

Those against the substantive Motion: Councillors Coggins and Jerrome.

 

No Councillors signified that they wished to abstain. 

 

With the result of the vote being 59 in favour and 2 against, with no abstentions, the substantive Motion was declared carried.

 

        RESOLVED –

 

(A)   That the Council approves:

 

(1)        The 2019/20 net Revenue Budget of £169.94 million.

 

(2)        The 2020/21 to 2021/22 Medium Term Financial Strategy (MTFS) including the income and savings proposals.

 

(3)        The calculation of the Council Tax Requirement as summarised in Section 9.1 of the budget report and set out, as required under statute, at (D) below.

 

(4)        To increase Council Tax by 3.99% in 2019/20:

 

·       2.99% general increase in the ‘relevant basic amount’ in 2019/20, 2020/21 and 2021/22, and

·       1.0% for the ‘Adult Social Care’ precept in 2019/20.

 

(5)        The Fees and Charges for 2019/20 and those relating to Registration of Births, Deaths and Marriages also shown for 2020/21, as set out in the Fees and Charges booklet available on the Council’s web site.

 

(6)        The delegation of authority to each Corporate Director, in consultation with the Corporate Director of Finance and Systems, to amend fees and charges during 2019/20 in the event of any change in VAT rate, as appropriate.

 

(7)        The delegation of authority to each Corporate Director, in consultation with the Corporate Director of Finance and Systems to amend fees and charges during 2019/20 where the economics of the charge levels have changed (e.g. costs have risen unexpectedly), or for commercial reasons.

 

(8)        That the minimum level of General Reserve for 2019/20 be increased to £7.0 million, an increase of £1.0 million from 2018/19, as detailed in Section 7.2 of the budget report.

 

(9)        The Capital Strategy, Prudential and Local Indicators and overall level of the  Capital Programme and Asset Investment Fund of £212.28 million (as detailed in the Capital Strategy, Capital Programme and Prudential Indicators 2019/22) of which £167.93 million relates to 2019/20; this includes £106.91million of new prudential borrowing.

 

(10)    The Treasury Management Strategy 2019/20 to 2021/22, including the debt strategy (as set out in Section 3 of the report), the investment strategy (Section 5) and the Prudential Indicators, including the Authorised Limit (as required by Section 3(1) of the Local Government Act 2003), Operational Boundary, Minimum Revenue Provision and Investment Criteria, as set out in Appendix 3 of the report.

 

(11)    The distribution of Dedicated Schools Grant as recommended by the School Funding Forum and Executive, as summarised in Section 8 and detailed in Annex H of the budget report.

 

(B)   That, in approving the above, it is noted that the Council has taken into consideration

 

(1)        The objective assessment by the Corporate Director of Finance and Systems of the robustness of budget estimates and adequacy of the financial reserves (Section 7 and Annex G of the budget report).

 

(2)        The Executive’s response to the Scrutiny Committee’s recommendations to the budget proposals as included in a separate report considered at the Executive meeting held on 20 February 2019.

 

(3)        The Council’s Public Sector Equality duty.

 

(4)        The results of the consultation on the budget proposals.

 

(C)   That in addition, the Council notes the following:

(1)        The approval on 23 January 2019 under delegated powers by the Corporate Director of Finance and Systems of the Council Tax Base for 2019/20 at 76,999 Band D equivalents.

 

(2)        Along with the calculation of the estimated Council Tax surplus, sufficient to release £(1.324) million to support the Council’s 2019/20 revenue budget and a distribution of £(187,000) and £(74,000) representing the respective shares of the Mayoral Police and Crime Commissioner Precept and Mayoral General Precept (including Fire Services).

 

(3)        The base budget assumptions as set out in the Medium Term Financial Strategy (MTFS) as detailed in Annex A of the budget report.

 

(4)        The budget gap for the two years 2020/21, £15.71 million and 2021/22, £12.81 million.

 

(5)        That the Capital Investment Programme for 2019/20, 2020/21 and 2021/22 is to be set at an indicative £167.93 million, £32.99 million and £11.36 million respectively (indicative at this stage as a number of capital grants not yet known).

 

(6)        That the Council Tax figures included in the report for the Mayoral Police and Crime Commissioner Precept and Mayoral General Precept (including Fire Services) are the recommended provisional amounts pending their formal approval.

 

(D)   That, as referred to in A3 above, the Council calculates the formal Council Tax Resolution as follows:

1.

It be noted that on 23 January 2019 the Council calculated

 

 

(a)    the Council Tax Base 2019/20 for the whole Council area as 76,999 [Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended (the "Act")] and;

 

 

(b)    1,577 for dwellings in the Parish of Partington;

 

to which Parish Precepts relate.

 

 

 

2.

That the Council approve the Council Tax Requirement for the Council’s own purposes for 2019/20 (excluding Parish precepts) as £99,499,648.

 

 

 

3.

That the Council agrees the calculation of the Aggregate Amounts for the year 2019/20 in accordance with Sections 31 to 36 of the Act:

 

 

 

(a)

£482,463,213

being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.

(b)

£382,896,542

being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

(c)

£99,566,671

being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31A(4) of the Act).

(d)

£1,293.09

being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).

(e)

£67,023

being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act, as detailed below:


(f)

 

 

 

 

 

 

(g)

 

 

 

 

 

£1,292.22

 

 

 

 

 

 

£1,334.72

 

 

 

 

 

 

 

being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

 

Parish of Partington

being the amounts given by adding to the amount at 3(f) above the amounts of the special item or items relating to dwellings in those parts of the Council’s area mentioned at 3(e) above divided by the amount at 1(b) above, calculated by the Council, in accordance with section 34(3) of the Act, as the basic amounts of its council tax for the year for dwellings in those parts of its area to which one or more special items relate.

4.

 

 

 

5.

 

 

 

 

 

 

6.

 

The council tax set by Trafford Council includes a 1.0% increase to be spent exclusively on supporting the delivery of adult social care services.

 

That it be noted that for the year 2019/20 the Mayoral Police and Crime Commissioner and the Mayoral General (including Fire Services) have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each category of dwellings in the Council’s area as indicated in the table below.

 

That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate shown in the tables below as the amounts of Council Tax for 2019/20 for each part of its area and for each of the categories of dwellings.

 

Valuation Bands

 

Council Tax Schedule
2019/20

Band A
£

Band B
£

Band C
£

Band D
£

Band E
£

Band F
£

Band G
£

Band H
£

Trafford Council (including Adult Social Care Precept)

861.48

1,005.06

1,148.64

1,292.22

1,579.38

1,866.54

2,153.70

2,584.44

Mayoral Police and Crime Commissioner Precept

 

 

132.20

154.23

  176.27

198.30

242.37

286.43

330.50

396.60

Mayoral General Precept (including Fire Services)

51.29

59.84

68.39

76.95

94.05

111.15

128.24

153.90

Sub total

1,044.97

1,219.13

1,393.30

1,567.47

1,915.80

2,264.12

2,612.44

3,134.94

 

 

 

 

 

 

Partington

Band A
£

Band B
£

Band C
£

Band D
£

Band E
£

Band F
£

Band G
£

Band H
£

Parish only

28.33

33.06

37.78

42.50

51.94

61.39

70.83

85.00

Parish & District only

889.81

1,038.12

1,186.42

1,334.72

1,631.32

1,927.93

2,224.53

2,669.44

Aggregate of Council Tax requirements (incl. – Mayoral Precepts)

1,073.30

1,252.19

1,431.08

1,609.97

1,967.74

2,325.51

2,683.27

3,219.94

 

PARISH COUNCIL PRECEPTS

 

 

2018/19

2019/20

 

 

Parish/Town Council

Tax

Precepts

Council Tax

Tax

Precepts

Council Tax

C Tax

 

Base

£

Band D (£)

Base

£

Band D (£)

Increase

  Partington

1,550

65,875

42.50

1,577

67,023

42.50

0.0%

TOTAL

1,550

65,875

 

1,577

67,023

 

 

 

Supporting documents: