Issue - meetings

Report outlining the Prudential Indicators for 2015/16 to 2018/19 and setting out the expected treasury operations for the same period for approval.

Members are asked to note and delete a duplicate paragraph on page 151 of the agenda pack – paragraph 3.27 is repeated in 3.28.

The statement made above (Finance Reports 10-16) still applies, with the exception of paragraphs 3.33 and 3.48, where the reference to the Deputy Chief Executive (Corporate Direction) is correct.

Further to the discussion on the finance reports (minute 400 refers), it was moved by Councillor Surtees, seconded by Councillor Camamile and

RESOLVED –

(i)            The Prudential Indicators and Limits for 2015/16 to 2018/19, including the Authorised Limit Prudential Indicator, be approved;

(ii)           The Minimum Revenue Provision (MRP) Statement be approved;

(iii)          The Treasury Management Strategy 2015/16 to 2018/19 and the Treasury Prudential Indicators be approved;

(iv)         The Investment Strategy be approved.

Report seeking approval of the Council Tax for 2016/17.

An updated report is attached following a change during the setting of a parish council’s precept.

Further to the discussion on the finance reports (minute 400 refers), it was moved by Councillor Surtees and seconded by Councillor Camamile that the recommendations within the Council Tax Setting report be approved. In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, voting on this item was recorded and was taken as follows:

Councillors Allen, Boothby, Camamile, Cook, Hall, Kirby, Ladkin, Morrell, Nickerson, Roberts, Rooney, Surtees, Sutton, Wallace, Ward, Williams and Wright voted FOR the motion (17);

Councillors Bill, Bray, Cartwright, Hodgkins, Hollick, Lynch, Nichols, Taylor and Witherford voted AGAINST the motion (9).

Councillor Richards, as Mayor, abstained from voting.

The motion was therefore declared CARRIED and it was

RESOLVED – in accordance with the Local Government Finance Act (1992):

(i)            A council budget requirement excluding Special Expenses and Parish Councils of £10,248,194 be approved for 2016/17;

(ii)           A total budget requirement including Special Expenses of £10,861,145 be approved for 2016/17;

(iii)          A total net budget requirement including Special Expenses and Parish Councils of £12,602,423 be approved for 2016/17;

(iv)         A contribution from Revenue Support Grant (including the element indicated for Local Council Tax Support) and Non Domestic Rates (indicated by the NNDR Baseline) of £3,635,744 be approved for 2016/17;

(v)          A forecast transfer of £53,112 surplus from the Collection Fund to the General Fund be approved for 2016/17;

(vi)         A Band D Council Tax for borough wide services, excluding Special Expenses and Parish Council precepts, of £100.25 be approved for 2016/17;

(vii)        A Band D Council Tax for borough wide services and an average of Special Expenses services of £117.09 be approved for 2016/17;

(viii)       An average Band D Council Tax relating to borough wide services and an average of Special Expenses and Parish Council services of £164.93 be approved for 2016/17;

(ix)         The total Council Tax, including amounts for the County Council, Police and Crime Commissioner and Combined Fire Authority and for each area and valuation band as detailed in appendix A to the report be approved for 2016/17.

Report seeking approval of the Fees & Charges book for 2016/17.

An amendment to correct an error in the fees & charges book is attached. The amended line is highlighted and amends the 2016/17 charge for ‘Aqua Lunchtime’ from £3.70 to £2.70 (page 83 of the agenda).

Appendix 2 which was omitted from the report is also attached.

Further to the discussion on the finance reports (minute 400 refers), it was moved by Councillor Surtees and seconded by Councillor Camamile that the recommendations within the Fees & Charges report be approved. Councillor Bray along with seven other councillors requested that voting on this item be recorded. The vote was taken as follows:

Councillors Allen, Boothby, Camamile, Cook, Hall, Kirby, Ladkin, Morrell, Nickerson, Roberts, Rooney, Surtees, Sutton, Wallace, Ward, Williams and Wright voted FOR the motion (17);

Councillors Bill, Bray, Cartwright, Hodgkins, Hollick, Lynch, Nichols, Taylor and Witherford voted AGAINST the motion (9).

Councillor Richards, as Mayor, abstained from voting.

The motion was therefore declared CARRIED and it was

RESOLVED – the Fees and Charges book for 2016/17 be approved.

Council is requested to approve the 2016/17 Housing Revenue Account (HRA) budget, including the Housing Repairs Account.

Further to the discussion on the finance reports (minute 400 refers), it was moved by Councillor Surtees and seconded by Councillor Camamile that the recommendations within the report be approved. Councillor Bray along with seven other councillors requested that voting on this item be recorded. The vote was taken as follows:

Councillors Allen, Boothby, Camamile, Cook, Hall, Kirby, Ladkin, Morrell, Nickerson, Roberts, Rooney, Surtees, Sutton, Wallace, Ward, Williams and Wright voted FOR the motion (17);

Councillors Bill, Bray, Cartwright, Hodgkins, Hollick, Lynch, Nichols, Taylor and Witherford voted AGAINST the motion (9).

Councillor Richards, as Mayor, abstained from voting.

The motion was therefore declared CARRIED and it was

RESOLVED –

(i)            The Rent Policy for 2016/17 be approved;

(ii)           The revised Housing Revenue and Housing Repairs Account budgets for 2015/16 be approved;

(iii)          The Housing Revenue and Housing Repairs Account budgets for 2016/17 be approved;

(iv)         The proposed movement in reserves be approved.

Report seeking approval of the General Fund Capital Programme for the years 2015/16 to 2018/19.

Further to the discussion on the finance reports (minute 400 refers), it was moved by Councillor Surtees, seconded by Councillor Camamile and

RESOLVED – the proposed Capital Programme for the years 2015/16 to 2018/19 be approved.

Members are asked to consider and approve the Medium Term Financial Strategy 2016/17 to 2019/20.

Further to the discussion on the finance reports (minute 400 refers), it was moved by Councillor Surtees and seconded by Councillor Camamile that the recommendations within the Medium Term Financial Strategy report be approved. Councillor Bray along with seven other councillors requested that voting on this item be recorded. The vote was taken as follows:

Councillors Allen, Boothby, Camamile, Cook, Hall, Kirby, Ladkin, Morrell, Nickerson, Roberts, Rooney, Surtees, Sutton, Wallace, Ward, Williams and Wright voted FOR the motion (17);

Councillors Bill, Bray, Cartwright, Hodgkins, Hollick, Lynch, Nichols, Taylor and Witherford voted AGAINST the motion (9).

Councillor Richards, as Mayor, abstained from voting.

The motion was therefore declared CARRIED and it was

RESOLVED – the Medium Term Financial Strategy 2016/17 – 2019/20 be approved.

Report seeking approval of the 2016/17 General Fund Revenue Budget.

Further to the discussion on the finance reports (minute 400 refers), it was moved by Councillor Surtees and seconded by Councillor Camamile that the recommendations within the General Fund Budget report be approved. In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, voting on this item was recorded and taken as follows:

Councillors Allen, Boothby, Camamile, Cook, Hall, Kirby, Ladkin, Morrell, Nickerson, Roberts, Rooney, Surtees, Sutton, Wallace, Ward, Williams and Wright voted FOR the motion (17);

Councillors Bill, Bray, Cartwright, Hodgkins, Hollick, Lynch, Nichols, Taylor and Witherford voted AGAINST the motion (9).

Councillor Richards, as Mayor, abstained from voting.

The motion was therefore declared CARRIED and it was

RESOLVED –

(i)            The General Fund budget for 2015/16 and 2016/17 be approved;

(ii)           The Special Expenses area budget for 2015/16 and 2016/17 be approved;

(iii)          The proposed movement in General Fund reserved and balances for 2015/16 and 2016/17 be approved;

(iv)         The reason for and impact of introducing the green waste charge in the 2016/17 budget and the longer term finances of the Council, as set out in the Medium Term Financial Strategy, be noted.

The Committee is asked to endorse the proposed revenue budgets and council tax for 2016/17 for the Special Expenses Area of Hinckley and recommend them to Council.

Members received the revenue budget and council tax for 2016/17 for the special expenses area of Hinckley. During discussion, the following points were noted:

·         The increase in parks costs

·         The reduction in cemetery costs

·         The increase in fees and charges

·         The continuation of paying a contribution to car parking

·         The suggested 71p increase in council tax for the special expenses area in line with the recommended increase in the borough council’s precept

·         The contribution to Neighbourhood Watch

·         The loss of the New Homes Bonus to the special expenses budget.

In relation to the contribution to Hinckley town centre car parks, members were reminded that this was agreed a few years previously when the car park charges were reduced to encourage shoppers to Hinckley. A member recalled that the agreement was that the Hinckley Business Improvement District (BID) would contribute the same amount as this committee and it was subsequently noted that the BID had not contributed. Whilst it was suggested that the contribution be withdrawn unless the BID matched it, it was agreed that, in light of the current review of car parking by a working group and the Parking Places Order being drafted for consideration by Council on 18 February, the matter be fully considered during the budget setting for 2017/18.

RESOLVED – the report be noted and a discussion on car parking be given consideration during 2017/18 budget setting.

Report of the Deputy Chief Executive (Corporate Direction) presenting the 2016/17 General Fund budget prior to consideration by Council.

The Scrutiny Commission reviewed the General Fund budget for 2016/17 ahead of consideration by Council. In response to a member’s question, it was explained that the special expenses area budget had to be included in the council’s budget setting, but that the Hinckley Area Committee would also be considering its budget the following week.

RESOLVED – the report be noted, pending further consideration of the MTFS.

Report of the Deputy Chief Executive (Corporate Direction) presenting the Housing Revenue Account budget prior to consideration by Council.

The Commission was presented with the 2016/17 Housing Revenue Account (HRA) budget which, it was reported, showed the impact of the 1% rent reduction. Members discussed the previous government’s policy of convergence and the resulting increase in rents to move towards this, and the decision to buy out of the HRA subsidy and expressed anger at the change in direction by HM Government.

In response to a question about whether there was still a hardship fund, it was agreed that a report on this be brought to the next meeting.

RESOLVED –

(i)            The revised Housing Revenue and Housing Repairs Account budgets for 2015/16 be noted;

(ii)           The Housing Revenue and Housing Repairs Account budgets for 2016/17 be noted;

(iii)          The proposed movement in reserves be noted;

(iv)         The approved rent decrease and the policy that void properties will be re-let at formula rent from 1 April 2016 be noted;

(v)          A report on the Hardship Fund be brought to the next meeting.

Report of the Deputy Chief Executive (Corporate Direction) presenting the proposed Capital Programme prior to consideration by Council.

The Scrutiny Commission received the General Fund Capital Programme for 2015/16 to 2018/19. Members were pleased to see key projects being delivered.

RESOLVED – the report be noted.

Report of the Deputy Chief Executive (Corporate Direction) providing a review of the 2016/17 Medium Term Financial Strategy (MTFS) summary.

Consideration was given to the Medium Term Financial Strategy summary 2016/17 – 2019/20. Members were reminded that, whilst the report presented a balanced budget for 2016/17, putting the minimum measures in place to achieve this would not address the increasing deficit in following years, as shown in section 4 of the report.

A member referred to the previously discussed possibility of a council tax referendum for increasing the rate by £16 per year (average band D) and asked why this was not included in the options. In response, the Leader explained that, since the consultation on that option was held, the Finance Settlement had been released which gave authorities in the bottom quartile for council tax the ability to impose a £5 increase for four years, so a greater increase would not be required for a balanced budget for 2016/17. The Leader explained that there were other unknown factors in future years, such as the progress of the local housing company which, he felt, may reduce the financial burden on the authority.

During discussion, the following concerns were raised:

·         the large gap for future years’ budgets

·         the possibility of rising direct service costs

·         the likelihood of not receiving 100% of business rates and a worsening New Homes Bonus receipt

·         the certainty of the removal of dry recycling credits by the County Council

·         the potential need to consider reducing ‘non-essential’ services in future years.

Some members asked that the Executive be requested to reconsider the MTFS in order to produce a strategy which addressed the financial gap in years 2017/18 to 2019/10, since the Chief Executive had indicated that, in its present form, the Strategy would not be presented for approval. The Leader reassured members that a Medium Term Financial Strategy which provided a balanced budget for the term of that strategy would be presented to Council on 18 February.

RESOLVED – the report be noted and the Executive be requested to reconsider and produce a balanced MTFS for Council on 18 February.