Agenda item

 

To consider the Executive’s Final Financial Plan Proposals 2018/19 to and set the Council Tax 2018/19.

 

Appendices 1 to 7, 10, 11, 11a, 12 and 14 are attached.

Appendices 8, 9, 13, and 15, as detailed in paragraph 1.3.3 of the report attached, will follow.

 

Members are kindly requested to note the following from the Council's Constitution: Part 3, Section 2 (Budget and Policy Framework Procedure Rules), Paragraph 2.2 (Process for Developing the Budget and Policy Framework), paragraph (e):

 

"That any Member who wishes to propose major changes, i.e. changes to the proposed Council Tax levels, or levels of reserves (to the budget proposed by the Executive) be required to give notice of such changes, in writing, to the Democratic Services Manager and the Chief Finance Officer at least 5 working days before the start of the Council (Budget) Meeting, e.g. if the meeting is at 10.00 a.m. on Monday the alternative proposal will need to be received by 10.00 a.m. on the immediately preceding Monday, so as to enable proper consideration to be given to the proposal........"

 

Alternative proposals that affect the council tax and levels of reserves will need to be submitted in writing before 2.15p .m., Thursday, 15 February 2018.

 

Information relating to a proposed major change to the budget will be circulated to all Members at least 24 hours before the Council Meeting.

 

Members considered a recommendation from the Executive in relation to the Final Financial Plan Proposals 2018/19 to 2020/21.    

 

In presenting the budget, the Portfolio Holder for Corporate Resources thanked officers for their help in the preparation of the budget.  He advised that Teignbridge would be setting a budget which was fair to residents.

 

He highlighted the following:

·         Revenue support grant becoming zero by 2020;

·         Rate relief being used for economy regeneration;

·         Capital had already been allocated for housing;

·         Government changing the formula resulting in a declining New Homes Bonus;

·         dwindling resources and increasing expenses;

·         budgeting for a 2% staff pay increase;

 

Cllr Barker proposed the recommendations as set out in the agenda papers.  Cllr Christophers seconded the proposals.

 

Cllr Dewhirst presented the Liberal Democrat budget proposals, as follows:

 

1)    A second Litter and Graffiti Hit Squad will be established at an initial set up cost of £80.000.

This will be funded by at least £30,000 underspend on the departments new bailer, a reduction of £36,000 in the new bins budget and £3000 from increased income from Osborne Street car parking. In addition a charge of £55 will be made on all second homes who have opted to be classified as business properties and are therefore not paying for their waste bins to be emptied. They will be given the option of paying or having their bin removed. This is estimated to raise £11,000 plus from approx. 200 properties.

 

2)    Further income will be generated by adaptions to the Leisure Centre offer. We seek to encourage healthier life styles and produce increased income from increased footfall. Income has declined of late, and this trend must be reversed. The following are therefore proposed.

·       a 4 month run of different activity offers Jan-April (inclusive)

·       Friday lunch time swim+50% off selected normal prices

·       weekend court hire (2-4pm) +50% off normal prices +Sep-Dec (incl.)

·       targeted fitness classes+50% off normal prices

These well promoted offers will stimulate interest and increase vital footfall when capacity exists. All such schemes will be well advertised, closely monitored and reviewed at regular intervals.

 

3)    To encourage greater use of Osborne Street Car Park in Newton Abbot a new parking permit scheme for local residents in near-by streets unable to participate in the Devon County Council Residents Parking Scheme will be introduced. The initial annual charge for this permit will be £250 (plus VAT). In the first instance 12 such permits will be made available, generating £3000. It is anticipated that this figure will rise.

 

4)    We will introduce variable charges in appropriate car parks to reflect variable use during the day. This measure is intended to help local business and to reduce air pollution. As an example, Newton Abbot is “bursting at the seams” on Saturday mornings, but is virtually empty on Saturday afternoons. This means that cars “crawl” through town in the mornings emitting noxious pollutants, while shops are “empty” in the afternoons. To redress this imbalance hourly parking rates will be altered to encourage visitors in the afternoons. Therefore from 3 til 6pm on Saturdays charges will be reduced to 50p an hour, but raised by 30p an hour from 9am til 2pm.

 

5)    A Working Party will be established as a priority to consider all means of increasing council income. We will consider selling advertising space to local businesses, for instance, on the foyer monitor (and elsewhere); we will consider a Teignbridge lottery; we will consider any innovative ideas, including retail management. We will explore methods currently being used by other local authorities. We will become more cost conscious and entrepreneurial, with an ethical and moral compass focused on local needs. Local successful business people will be invited to become members of this Working Party.

 

6)    We will invest in genuine low cost housing for local people. We will invest in off-site modular build environmentally high specification units, which have sale prices starting at £65,000. Sites are identified in various locations, but an initial investment in the region of £1M will produce at least 12 such properties. This money is already sitting in our accounts. £200,000 is available in the unallocated housing account, of which £86,000 is available this year, with £200,000 in subsequent years, while a £1M carry forward is available as part of the Capital Receipts. These sums can be replenished from on-going sales and/or rental income.

 

The amendments were moved by Cllr Dewhirst and seconded by Cllr Connett.

 

Cllr Dewhirst advised:

·       there were now two food banks in Newton Abbot, serving a real need;

·       the government gave tax breaks to the wealthy and tax cuts to the poorest;

·       the proposed Council budget increased car parking and leisure service charges;

·       of the increased littering in the district and the need for an additional litter hit squad;

·       the Council should be more entrepreneurial to raise standards and quality;

·       costs could be saved from the communications budget to fund projects;

·       his party prioritised the environment, local people and the local economy;

·       the car park proposals specifically mentioned Newton Abbot, he submitted that other car parks in the district could be considered;

·       housing proposals would benefit young people in the district;

·       there was a need for affordable self-build projects;

·       a bus pass for 16-18 year old, would reduce the number of cars on the roads.

 

Prior to continuing the debate, it was proposed by Cllr Barker that standing orders be waived.

 

Resolved

 

That standing orders be waived.

 

The Interim Chief Finance Officer advised that proposal six was an alternative budget proposal, as it affected council tax or reserves, it could not be considered at the meeting.  He confirmed that the remaining 5 were amendments as they proposed changes to existing budgets.

 

Speaking to the proposed amendments, The Interim Chief Finance Officer advised that:

·       amendment 1 proposed charging second homes for waste collection, this proposal required further investigation as there would be increased staff resources in the first year;

·       amendment 2 – research would be required into customer reactions to tariffs;

·       amendment 3 – reducing the permit charge to £250 plus VAT for local people could affect take-up by existing permit holders who currently pay £450, it would reduce income, there were also VAT considerations;

·       amendment 4 – introduced variable car parking charges, it could be difficult to identify car parks and customer reaction;

·       amendment 5 – was a statement of intent and had no implications for the budget.

 

Cllr Bullivant highlighted the Council’s achievement on the number of new homes built, increased employment in the district and no waste going to landfill.

 

Cllr Clarance referred to the new homes bringing in money to the district, the loss of revenue support grant and the need to generate income to address reduced income.  He highlighted the Council’s achievement of purchasing Market Walk and recommended the budget for approval.

 

Cllr Haines submitted he was unable to support the proposed amendments given the lack of detailed costings.  He advised the car park review group could investigate the proposals for Osborne Street car park, but raised concern that the proposed income would be used in other areas (not ring-fenced for car parking).  He asked for more information about waste collection from commercial properties and in conclusion advised he would be supporting the proposals as set out in the agenda report and not the amendments.

 

 

Cllr Connett advised the amended proposals were cost neutral to the Council, his party wished to show they were listening to the public.  East and West Devon councils had moved to a three weekly bin collection with lower costs, he suggested Teignbridge was not offering best practice.  He highlighted the leisure proposals as being cost neutral.

 

Cllr Morgan suggested public sector workers were struggling, that it was unfair to increase council tax as other costs rise as they were putting a burden on the electorate.

 

Cllr J Hook advised Osborne Street was an under used car park, with a third of spaces regularly unoccupied.  By offering a lower cost permit to those living within 400m of the car park, with no off street parking and who were not eligible for Devon County on street parking the proposal would increase usage.  She was disappointed with the increased complaints received about graffiti in the district.

 

Cllr Russell advised the Media & Communications department were a valuable resource, communicating with customers and providing well balanced reports on the Council actions. 

 

The Leader thanked the Portfolio Holder and officers for producing the budget, he advised that the Council:

·       had invested heavily in the bulking station;

·       officers were currently reviewing costs of a 3 weekly bin collection, it was important to take the time to get any new proposal right;

·       the new emerging leisure strategy and the support given to students taking part in the Youth Games;

·       had been nominated for Council of the year by the Royal Town Planning Institute for its work on self-build homes.

 

Cllr Wrigley referred to the lack of investment in Dawlish.  With new homes resulting in Dawlish growing by a third, funds were required to improve maintenance and renovation of the town.  He suggested Lea Mount Gardens required improvement works, pedestrian access to Dawlish County Park was poor.  He also raised the issue of access to Carhaix Way, suggesting the Council had failed to address the problems through the developer.

 

In response, Cllr Clemens advised £14M had been spent at Dawlish Warren with Teignbridge committing a considerable sum towards the re-charge of the beach.  He highlighted flood relief works for Powderham and Starcross and £2.9M spent on SANGS.  Further, that £4.2M had been awarded for Dawlish’s new link road and the railway was to spend £600M on the line between Newton Abbot and Exeter.  Also that money would be spent on Boat Cove and Dawlish had a renowned all weather hockey pitch.

 

Cllr Dewhirst advised the amendments were a wish list, he highlighted the Council spending £404,000 on 77 agency staff this year and £747,043 being spent the previous year.  He advised his proposals alone could be financed from the agency staff budget.

 

Cllr Barker advised he did not support the amendments, in the absence of detailed costings it would be very difficult for Members support the proposals.  He advised that some of the proposals were currently being investigated by officers.  Referring to Osborne Street car park, he advised that a free half hour parking was given to parents collecting their children from Marsh Primary School.  Finally, further education colleges received government funding for travel for young people.

 

The Chairman took the vote on proposals 1-5:

 

For:  Cllrs Connett, Cook, Cox, Dewhirst, Eden, Evans, Hayes, J Hook, Keeling, Morgan, Nutley, Parker, Pilkington, Rollason and Wrigley (15).

 

Against:  Cllrs Barker, Bromell, Bullivant, Christophers, Clarance, Clemens, Colclough, Dennis, Ford, Fusco, Golder, Goodey, Gribble, Haines, Hockin, Hocking, Jeffery, Kerswell, Lake, Matthews, Mayne, Orme, Peart, Prowse, Russell, Smith, Thorne and Winsor (28).

 

Abstain: Cllr Jones (1).

 

The amendment was defeated.

 

The Chairman moved to the vote on the budget proposals as set out in the agenda papers.

 

For:  Cllrs Barker, Bromell, Bullivant, Christophers, Clarance, Clemens, Colclough, Cook, Dennis, Ford, Fusco, Golder, Goodey, Gribble, Haines, Hockin, Hocking, Jeffery, Kerswell, Lake, Matthews, Mayne, Orme, Peart, Prowse, Russell, Smith, Thorne and Winsor (29).

 

Against:  Cllrs Connett, Cox, Dewhirst, Eden, Evans, Hayes, J Hook, Keeling, Morgan, Nutley, Parker, Pilkington, Rollason and Wrigley (14).

 

Abstain: Cllr Jones (1).

 

It was therefore

 

Resolved

 

(a)    That the Teignbridge band D council tax for 2018/19 is increased by 3.12% or £5 to £165.17 per annum.

 

(b)    That general reserves are increased to 11.3% of the net revenue budget for 2018/19 or just under £1.9 million.

 

(c)    That £100,000 of the general reserve balance in any one year continues to be available to the Executive to meet unexpected expenditure in addition to the agreed revenue budget.

 

(d)    All other decisions with regard to budgetary change will be approved by reference to virement rules in the financial instructions.

 

(e)    That the summary revenue budget for 2018/19 is £16.6 million as shown at Appendix 4. In particular the revenue budget includes:

 

·         The final pay offer including increases linked to the national living wage for 2018/19 and a 2% increase for all other staff from 1 April 2018.

 

·         Significant revenue contributions to fund capital at £1.3 million in 2018/19 but reducing thereafter.

 

·         Rural aid continuing at £40,000.

 

(f)      That fees and charges are approved as shown summarised at Appendix 6. This includes an increase in parking income of £125,000.

 

(g)    That the capital programme as shown at Appendix 7 be approved. In particular this includes:

 

·         Increasing jobs and homes through continuing support for housing whilst backing business and encouraging community-led planning.

 

·         Infrastructure delivery plan investment contributing to improving education, transport links, sports and open spaces.

 

·         Indicative figures are shown for three major projects investing in town centres and employment sites over the three years. These would be funded through prudential borrowing but individual business cases (BC) will be brought to Members for consideration as they are developed. They are not being approved in this budget and are described as Provisions with funding as BC: Prudential Borrowing.

 

(h)    That the prudential indicators are noted and the prudential limits approved all as set out in Appendix 10.

 

(i)      That the updated treasury management strategy statement and authorised lending list as set out in Appendix 11 be approved together with the capital strategy in Appendix 11a.

 

(j)      That each scheme will be considered on its merits as explained at the end of Appendix 11 to decide the calculation of minimum revenue provision for capital expenditure in 2018/19.

 

(k)    That the treasury management mid-year review for 2017/18 as taken to Executive on 5 December and shown in Appendix 12 is noted.     

 

(l)      That the council tax resolutions as recommended in Appendix 15 be approved.