Issue - meetings

The Portfolio Holder for Corporate Resources proposed that the Executive Budget as set out in the agenda papers and that the recommendations as per the circulated report be approved.

In presenting the budget, the Portfolio Holder for Corporate Resources thanked officers for their preparation of the budget and the Overview and Scrutiny Committee for their work and input into the budget proposals.

He stated that the budget addressed the councils funding shortfall whilst delivering its commitment to addressing climate change, increase planning enforcement and affordable housing and continuing to provide a capital programme which met the requirements in the Council Strategy. He was grateful to the Overview & Scrutiny Committee for the review of the rural aid which would continue with a budget of £26,000 and a revised criteria. He commented that the criteria would not include the reserves that the smaller parishes had set aside for Elections. With the changes to business rates, new homes bonus and the ceasing of right to buy payments from Teign Housing the Council had to look to become more commercial going forward.

This was seconded by the Leader.

Councillor Clarance as budget spokesperson for the opposition commented that the unpalatable cuts that were being proposed could be avoided if less funds were transferred from the revenue account to the capital account and the reduction in funding from the capital account be made up by increasing borrowing.

Some Members who objected to the proposed budget raised concerns regarding the negative impact of charging for Sunday parking; the cuts in the councillor’s community funds and rural aid and the charge for parish/towns to empty dog bins.

Members in support of the budget commented that this was a balanced budget to bridge the funding gap that had to be addressed by the reduction in central government funding.

RESOLVED:-

a          That the Teignbridge band D council tax for 2020/21 is increased by 2.94% or £5 to £175.17 per annum

b          That general reserves are increased to 12.3% of the net revenue budget for 2020/21 or just under £2.0 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          That 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 2020/21 is £16.1 million as shown at appendix 4. In particular the revenue budget includes:

• Assumptions of a 2% pay deal with higher increases for those on lower grades from 1 April 2020

• Revenue contributions to fund capital at £0.6 million in 2020/21 and increasing slightly thereafter

• Rural aid reducing to £26,000 from 1 April 2020

• A reduction in the councillors community fund grant to £1,000 each

f           That fees and charges are approved as shown summarised at appendix 6. This includes an increase in parking income of £185,000 from last years base budget

g          That the capital programme  ...  view the full minutes text for item 16

To consider the final financial plan proposals 2020/21 to 2022/23 for recommendation to Council on 24 February. These proposals include recommended revenue and capital budgets for 2020/21 and planned in outline for 2021/22 and 2022/23.

RECOMMENDED that Council approve:-

(1)          The final budget for 2020/21 and the outline plan for the subsequent years 2021/22 and 2022/23; and

(2)          The Commercial Strategy in appendix 8 subject to the amendments to the Commercial Property Investment Board composition to read ‘Chair of Overview & Scrutiny Committee and Leader of Opposition if different’ and to add ‘any Group Leader with 10% of the Members’; and

(3)          That delegate authority be given to the Chief Finance Officer to approve the purchase of assets meeting the prescribed criteria in section 6 of the Strategy subject to prior consultation with the Commercial Property Investment Board. 

Member question and response attached.

The Portfolio Holder for Corporate Resources presented the report to consider thefinal financial plan proposals 2020/21 to 2022/23 for recommendation to Council on 24 February 2020. These proposals include recommended revenue and capital budgets for 2020/21 and planned in outline those for 2021/22 and 2022/23.

Non-Executive Members raised concerns regarding the proposed Sunday car parking charges, the anomalies and conflicts that arose from this proposal and asked that a decision should be delayed until any implications had been reviewed; the proposed charging for emptying of dog bins; introduction of charges for bins for new properties; could the Community Infrastructure levy (CIL) schedule be revised to enable more income for the Council; the raising of Council tax levels beyond which a referendum would be required; and welcomed the amendment to enable a budget of £26,000 for Rural Aid.

The Portfolio Holder for Corporate Services clarified the Council should have previously been charging for emptying of dog bins and that the proposals to charge for bins for new households were to look to help address future shortfall in funding. He acknowledged that Sunday car parking charging had complexities and that these would these need to be worked through, the car parking review group could review this over the coming year. A council tax increase that would require a referendum would be an unnecessary public expense. 

Members were advised that 680 budget survey responses had been received of these:-

·         54% agree to increase in council tax

·         66% agree to supporting climate change

·         66% agree to supporting housing

·         81% agree to backing business and improving town centres

·         87% agree to investment in infrastructure.

Regarding what the Council should do to balance its budget the following had been received:-

·         42% agree Generating more income to re-invest in council services

·         26% agree Make more budget savings 

·         12% agree Reducing the services we provide 

·         20% agree Increasing council tax further. 

The Leader to address concerns raised at Overview & Scrutiny Committee proposed amendments to the membership of the Commercial Property Investment Board that:-

·         Chair of Overview & Scrutiny Committee and the Leader of the Opposition if different

·         Any Group Leader with 10% of the Members. 

RECOMMENDED that Council approve:-

(1)          The final budget for 2020/21 and the outline plan for the subsequent years 2021/22 and 2022/23; and

(2)          The Commercial Strategy in appendix 8 subject to the amendments to the Commercial Property Investment Board composition to read ‘Chair of Overview & Scrutiny Committee and Leader of Opposition if different’ and to add ‘any Group Leader with 10% of the Members’; and

(3)          That delegate authority be given to the Chief Finance Officer to approve the purchase of assets meeting the prescribed criteria in section 6 of the Strategy subject to prior consultation with the Commercial Property Investment Board.