Agenda item

Cabinet

RECOMMENDED THAT COUNCIL

Revenue and capital – General Fund (GF)

(a)  Approves the revenue estimates for 2017-18 as shown in the GF Budget Setting Reports (BSR) Section 5.

(b)  Approves the precautionary items for the GF, GF BSR Appendix B.

(c)  Approves the GF revenue forecasts as set out in GF BSR Section 6.

(d)  Instructs the Executive Management Team to identify additional income / savings of £163k for 2017-18, rising to £1,531k from 2018-19.

(e)  Approves the GF capital programme and associated funding up to the year ended 31 March 2022, as set out in Appendix D.

(f)   Instructs the Head of Finance, on the basis of the proposals set out in the GF BSR, to prepare formal papers to set the council tax requirement and amount of council tax for all Bands at the Council meeting on 23 February 2017.

Revenue – Housing Revenue Account (HRA)

(g)  Approves the HRA revenue budget as shown in the HRA Summary Forecast 2016-17 to 2021-22 in Appendix I of the HRA Budget Setting Report at Appendix 2 to this report.

(h)  Approves the retention of the balance of the 4 year savings target included as part of the 2016-17 HRA Budget Setting Report to mitigate the impact of some of the changes in national housing policy, recognising that the net savings proposed from 2017-18 over-deliver against the profile of £250,000 per annum for 4 years, reducing the balance to be sought in the remaining 3 years to £600,480.

Review of Rents and Charges

(i)    Approves that social housing rents for existing tenants be reduced by 1%, in line with legislative requirements, with effect from 3rd April 2017.

(j)    Approves that affordable rents are reviewed in line with rent legislation, to ensure that rents charged are no more than 80% of market rent, with this figure then reduced by 1% as with social housing. Local policy is to cap affordable rents at the lower level of Local Housing Allowance, which will result in a rent freeze from 3rd April 2017.

(k)  Approves inflationary increases of 2.4% in garage rents for 2017-18, in line with the base rate of inflation for the year assumed in the HRA Budget Setting Report.

(l)    Approves the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix B of the HRA Budget Setting Report.

Housing Capital

(m)Approves the latest budget, spend profile and funding mix for each of the schemes in the new build programme, as detailed in Section 5 and Appendix E of the HRA Budget Setting Report, recognising the most up to date information available as each scheme progresses through the design, planning, build contract and completion process.

(n)  Approves earmarking of the required level of additional funding for new build investment between 2017-18 and  2021-22 to ensure that commitments can be met in respect of the investment of all right to buy receipts retained by the authority, up to the end of December 2016. This expenditure will either take the form of HRA new build, with the 70% top up met by capital receipts anticipated from the sale of self-build plots or could alternatively be grant made to a registered provider, where the registered provider will provide the 70% top up to build new homes.

(o)  Approves the capital budget proposals, both bids and savings, detailed in Appendix G(2) of the HRA Budget Setting Report.

(p)  Approves the capital amendments, detailed in Appendix H of the HRA Budget Setting Report, which include the capital proposals in Appendix G(2), along-side re-profiling of investment, increase and re-allocation of resource for new build schemes and budget to fund the up-front costs for self-build plots, with the latter fully met from the resulting capital receipt.

(q)  Approves the revised Housing Capital Investment Plan as shown in Appendix J of the HRA Budget Setting Report.

Treasury Management

(r)   Approves the borrowing and investment strategy for the year to March 2018, Appendix F.

(s)   Approves the prudential indicators required by the Code for Capital Finance in Local Authorities for the year to 31 March 2018, Appendix G.

(t)    Approves the Capital Strategy 2017-18 to 2021-22, Appendix H.

(u)  Approves any unspent New Homes Bonus money allocated to the City Deal to be rolled into 2018-19.

General

(v)  Gives delegated authority to the Interim Chief Executive to issue the final version of the Estimates Book, incorporating any amendments required from the council’s decisions.

Council

AGREED        to

Revenue and capital – General Fund (GF)

(a)          Approve the revenue estimates for 2017-18 as shown in the GF BSR Section 5.

(b)          Approve the precautionary items for the GF, GF BSR Appendix B.

(c)          Approve the GF revenue forecasts as set out in GF BSR Section 6.

(d)          Instruct the Executive Management Team to identify additional income / savings of £163k for 2017-18, rising to £1,531k from 2018-19.

(e)          Approve the GF capital programme and associated funding up to the year ended 31 March 2022, as set out in Appendix D.

(f)           Instruct the Head of Finance, on the basis of the proposals set out in the GF BSR, to prepare formal papers to set the council tax requirement and amount of council tax at the Council meeting on 23 February 2017.

(g)          Set the Council Tax Requirement for 2017-18 at £8,234,344.17.

(h)          Set the amount of Council Tax for each of the relevant categories of dwelling in accordance with Section 30(2) of the Local Government Finance Act 1992 on the basis of the District Council Tax for general expenses on a Band D property of £135.31 plus the relevant amounts required by the precepts of the Parish Councils, Cambridgeshire County Council, the Cambridgeshire Police and Crime Commissioner and the Cambridgeshire Fire Authority, details of those precepts and their effect to be circulated with the formal resolution required at the Council meeting.

Revenue – Housing Revenue Account (HRA)

(i)            Approve the HRA revenue budget as shown in the HRA Summary Forecast 2016-17 to 2021-22 in Appendix I of the HRA Budget Setting Report at Appendix 2 to this report.

(j)            Approve the retention of the balance of the 4 year savings target included as part of the 2016-17 HRA Budget Setting Report to mitigate the impact of some of the changes in national housing policy, recognising that the net savings proposed from 2017-18 over-deliver against the profile of £250,000 per annum for 4 years, reducing the balance to be sought in the remaining 3 years to £600,480.

Review of Rents and Charges

(k)          Approve that social housing rents for existing tenants be reduced by 1%, in line with legislative requirements, with effect from 3rd April 2017.

(l)            Approve that affordable rents are reviewed in line with rent legislation, to ensure that rents charged are no more than 80% of market rent, with this figure then reduced by 1% as with social housing. Local policy is to cap affordable rents at the lower level of Local Housing Allowance, which will result in a rent freeze from 3rd April 2017.

(m)        Approve inflationary increases of 1.9% in garage rents for 2017-18, in line with the base rate of inflation for the year assumed in the HRA Budget Setting Report.

(n)          Approve the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix B of the HRA Budget Setting Report.

Housing Capital

(o)          Approve the latest budget, spend profile and funding mix for each of the schemes in the new build programme, as detailed in Section 5 and Appendix E of the HRA Budget Setting Report, recognising the most up to date information available as each scheme progresses through the design, planning, build contract and completion process.

(p)          Approve earmarking of the required level of additional funding for new build investment between 2017-18 and 2021-22 to ensure that commitments can be met in respect of the investment of all right to buy receipts retained by the authority, up to the end of December 2016. This expenditure will either take the form of HRA new build, with the 70% top up met by capital receipts anticipated from the sale of self-build plots or could alternatively be grant made to a registered provider, where the registered provider will provide the 70% top up to build new homes.

(q)          Approve the capital budget proposals, both bids and savings, detailed in Appendix G(2) of the HRA Budget Setting Report.

(r)           Approve the capital amendments, detailed in Appendix H of the HRA Budget Setting Report, which include the capital proposals in Appendix G(2), along-side re-profiling of investment, increase and re-allocation of resource for new build schemes and budget to fund the up-front costs for self-build plots, with the latter fully met from the resulting capital receipt.

(s)          Approval of the revised Housing Capital Investment Plan as shown in Appendix J of the HRA Budget Setting Report.

Treasury Management

(t)           Approve the borrowing and investment strategy for the year to March 2018, Appendix F.

(u)          Note the amendment to the capital financing requirement table, as described below and approve the prudential indicators required by the Code for Capital Finance in Local Authorities for the year to 31 March 2018, Appendix G.

(v)          Approve the Capital Strategy 2017-18 to 2021-22, Appendix H.

(w)         Approve any unspent New Homes Bonus money allocated to the City Deal to be rolled into 2018-19.

General

(x)          Gives delegated authority to the Interim Chief Executive to issue the final version of the Estimates Book, incorporating any amendments required from the council’s decisions.

In addition to resolution (g) above, Council AGREED the following statutory resolution in respect of Council Tax fro 2017-18:

That the following amounts be now calculated by the Council for the year 2017-18 in
accordance with Sections 31 to 36 of the Local Government Finance Act 1992:

(a)        £91,867,564                being the aggregate of the amounts which the Council

estimates for the items set out in Section 31A (2) (a) to (f) of the Act (gross expenditure including parish precepts, the Housing Revenue Account and additions to reserves)

(b)        £78,544,628                being the aggregate of the amounts which the Council

estimates for the items set out in Section 31A (3) (a) to (d) of the Act (gross income including the Housing Revenue Account and use of reserves)

(c)        £13,322,936                being the amount by which the aggregate at (a) above

exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 31A (4) of the Act, as its council tax requirement for the year (net expenditure to be met from council tax) being the district amount of £8,234,340 and the parish precepts of £5,088,596

(d)        £218.93                       being the amount calculated by the Council, in

accordance with Section 31B of the Act, as the basic amount of its council tax for the year (average council tax for a band D property for the District including parishes)

(e)        £5,088,596                  being the aggregate amount of all special items

referred to in Section 34(1) of the Act (parish precepts)

(f)        £135.31                       being the amount 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 special item relates (average council tax for a Band D property for the District excluding parishes), the amounts being for each of the categories of dwellings shown below in Table 1.

(h)        In accordance with Section 34(3) of the Act, the basic amounts of council tax

for the year for dwellings in those parts of its area to which a special item relates are shown by adding the amounts for band D for the District Council in Table 1 and Appendix A

(i)            In accordance with Section 36(1) of the Act, the amounts to be taken into

account for the year in respect of categories of dwellings listed in different
valuation bands are shown by adding the amounts for each band in Table 1 and Appendix A.

That it be noted that for the year 2017-18 Cambridgeshire County Council, Cambridgeshire Police and Crime Commissioner and Cambridgeshire and Peterborough Fire Authority have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings as shown in Table 1:

             and

j)            that the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the amounts set out in Appendix B as the amounts of council tax for the year 2017-18 for each of the categories of dwellings shown in Appendix B.

SUPPORTING INFORMATION IN RESPECT OF SETTING THE COUNCIL TAX

Including the precepts from the County Council, the Police and Crime Commissioner, Fire Authority and all of the parishes, the formal Council Resolution would produce a council tax for a band D property of:

On these figures the council tax would range from £1,052.85 for Band A to £3,439.02 for Band H before any discounts or benefits.

Appendix C shows the General Fund summary including Parish precepts and the final Formula Grant figure. 

Councillor Simon Edwards proposed the recommendation, which asked Council to approve the financial strategies and budgets, as detailed in the reports and appendices. Councillor Peter Topping seconded the recommendation.

Minor amendment

Councillor Edwards explained that the proposed inflationary increases of garage rents for 2017/18 was 1.9% and not 2.4% as stated in the report.

Spending of reserves

Councillor Edwards explained that it was not sustainable for the Council to continue spending its reserves to meet its spending commitments and this was why it was proposed that £0 would be spent from reserves in 2017/18.

Leader’s Portfolio

Councillor Edwards explained that the reduction in the budget for the Leader’s Portfolio was due to recharges. Concern was expressed regarding the lack of Leader’s Portfolio Holder meetings during 2016/17.

Council Tax

The proposed increase in Council Tax was supported with no councillors speaking against it. Members of the opposition group contrasted this with the Cambridgeshire County Council’s Conservative Group’s decision to argue for a Council Tax freeze for their authority.

Scrutiny

Councillor Tony Orgee reported that the Scrutiny and Overview Committee had supported the proposed Council Tax increase and had understood that savings were generated through staff turnover, although no single service was responsible for this and so it had to be monitored over the Council throughout the year.

Renting of communal rooms

Councillor Ingrid Tregoing expressed concern about the possible impact on community groups of charging for the use communal rooms. The rooms were free for residents to use. Councillor Harford assured Council that the impact of this charge was being carefully assessed.

Ermine Street Housing

In response to concerns whether the Council could be confident that Ermine Street Housing would continue to deliver the income as projected in the accounts, Councillor Edwards explained that Ermine Street Housing was projected to bring in an income of £600,000 per year and the position would be carefully monitored.

Council thanked all officers involved in the production of these accounts.

A vote was taken and were cast as follows

In favour (34)

Councillors David Bard, Val Barrett, Brian Burling, Tom Bygott, Nigel Cathcart, Grenville Chamberlain, Graham Cone, Christopher Cross, Kevin Cuffley, Simon Edwards, Sue Ellington, Andrew Fraser, Roger Hall, Lynda Harford, Mark Howell, Peter Johnson, Ray Manning, Raymond Matthews, David McCraith, Cicely Murfitt, Charles Nightingale, Des O’Brien, Tony Orgee, Alex Riley, Tim Scott, Ben Shelton, Edd Stonham, Peter Topping, Richard Turner, Robert Turner, Bunty Waters, David Whiteman-Downes, Tim Wotherspoon and Nick Wright.

Against (1)

Councillor Deborah Roberts

Abstain (11)

Councillors Henry Batchelor, John Batchelor, Anna Bradnam, Doug Cattermole, Tumi Hawkins, Sebastian Kindersley, Bridget Smith, Hazel Smith, Ingrid Tregoing, Aidan Van de Weyer and John Williams.

Council

AGREED to

Revenue and capital – General Fund (GF)

(a)          Approve the revenue estimates for 2017-18 as shown in the GF BSR Section 5.

(b)          Approve the precautionary items for the GF, GF BSR Appendix B.

(c)          Approve the GF revenue forecasts as set out in GF BSR Section 6.

(d)          Instruct the Executive Management Team to identify additional income / savings of £163k for 2017-18, rising to £1,531k from 2018-19.

(e)          Approve the GF capital programme and associated funding up to the year ended 31 March 2022, as set out in Appendix D.

(f)           Instruct the Head of Finance, on the basis of the proposals set out in the GF BSR, to prepare formal papers to set the council tax requirement and amount of council tax at the Council meeting on 23 February 2017.

(g)          Set the Council Tax Requirement for 2017-18 at £8,234,344.17.

(h)          Set the amount of Council Tax for each of the relevant categories of dwelling in accordance with Section 30(2) of the Local Government Finance Act 1992 on the basis of the District Council Tax for general expenses on a Band D property of £135.31 plus the relevant amounts required by the precepts of the Parish Councils, Cambridgeshire County Council, the Cambridgeshire Police and Crime Commissioner and the Cambridgeshire Fire Authority, details of those precepts and their effect to be circulated with the formal resolution required at the Council meeting.

Revenue – Housing Revenue Account (HRA)

(i)            Approve the HRA revenue budget as shown in the HRA Summary Forecast 2016-17 to 2021-22 in Appendix I of the HRA Budget Setting Report at Appendix 2 to this report.

(j)            Approve the retention of the balance of the 4 year savings target included as part of the 2016-17 HRA Budget Setting Report to mitigate the impact of some of the changes in national housing policy, recognising that the net savings proposed from 2017-18 over-deliver against the profile of £250,000 per annum for 4 years, reducing the balance to be sought in the remaining 3 years to £600,480.

Review of Rents and Charges

(k)          Approve that social housing rents for existing tenants be reduced by 1%, in line with legislative requirements, with effect from 3rd April 2017.

(l)            Approve that affordable rents are reviewed in line with rent legislation, to ensure that rents charged are no more than 80% of market rent, with this figure then reduced by 1% as with social housing. Local policy is to cap affordable rents at the lower level of Local Housing Allowance, which will result in a rent freeze from 3rd April 2017.

(m)        Approve inflationary increases of 1.9% in garage rents for 2017-18, in line with the base rate of inflation for the year assumed in the HRA Budget Setting Report.

(n)          Approve the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix B of the HRA Budget Setting Report.

Housing Capital

(o)          Approve the latest budget, spend profile and funding mix for each of the schemes in the new build programme, as detailed in Section 5 and Appendix E of the HRA Budget Setting Report, recognising the most up to date information available as each scheme progresses through the design, planning, build contract and completion process.

(p)          Approve earmarking of the required level of additional funding for new build investment between 2017-18 and 2021-22 to ensure that commitments can be met in respect of the investment of all right to buy receipts retained by the authority, up to the end of December 2016. This expenditure will either take the form of HRA new build, with the 70% top up met by capital receipts anticipated from the sale of self-build plots or could alternatively be used by way of a grant to a registered provider, where the registered provider would then provide the 70% top up to build new homes.

(q)          Approve the capital budget proposals, both bids and savings, detailed in Appendix G(2) of the HRA Budget Setting Report.

(r)           Approve the capital amendments, detailed in Appendix H of the HRA Budget Setting Report, which include the capital proposals in Appendix G(2), along-side re-profiling of investment, increase and re-allocation of resource for new build schemes and budget to fund the up-front costs for self-build plots, with the latter fully met from the resulting capital receipt.

(s)          Approval of the revised Housing Capital Investment Plan as shown in Appendix J of the HRA Budget Setting Report.

Treasury Management

(t)           Approve the borrowing and investment strategy for the year to March 2018, Appendix F.

(u)          Note the amendment to the capital financing requirement table, as described below and approve the prudential indicators required by the Code for Capital Finance in Local Authorities for the year to 31 March 2018, Appendix G.

(v)          Approve the Capital Strategy 2017-18 to 2021-22, Appendix H.

(w)         Approve any unspent New Homes Bonus money allocated to the City Deal to be rolled into 2018-19.

General

(x)          Gives delegated authority to the Interim Chief Executive to issue the final version of the Estimates Book, incorporating any amendments required from the council’s decisions.

In addition to resolution (g) above, Council AGREED the following statutory resolution in respect of Council Tax fro 2017-18:

That the following amounts be now calculated by the Council for the year 2017-18 in
accordance with Sections 31 to 36 of the Local Government Finance Act 1992:

(a)        £91,867,564                being the aggregate of the amounts which the Council

estimates for the items set out in Section 31A (2) (a) to (f) of the Act (gross expenditure including parish precepts, the Housing Revenue Account and additions to reserves)

(b)        £78,544,628                being the aggregate of the amounts which the Council

estimates for the items set out in Section 31A (3) (a) to (d) of the Act (gross income including the Housing Revenue Account and use of reserves)

(c)        £13,322,936                being the amount by which the aggregate at (a) above

exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 31A (4) of the Act, as its council tax requirement for the year (net expenditure to be met from council tax) being the district amount of £8,234,340 and the parish precepts of £5,088,596

(d)        £218.93                       being the amount calculated by the Council, in

accordance with Section 31B of the Act, as the basic amount of its council tax for the year (average council tax for a band D property for the District including parishes)

(e)        £5,088,596                  being the aggregate amount of all special items

referred to in Section 34(1) of the Act (parish precepts)

(f)         £135.31                       being the amount 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 special item relates (average council tax for a Band D property for the District excluding parishes), the amounts being for each of the categories of dwellings shown below in Table 1.

(h)        In accordance with Section 34(3) of the Act, the basic amounts of council tax

for the year for dwellings in those parts of its area to which a special item relates are shown by adding the amounts for band D for the District Council in Table 1 and Appendix A

(i)            In accordance with Section 36(1) of the Act, the amounts to be taken into

account for the year in respect of categories of dwellings listed in different
valuation bands are shown by adding the amounts for each band in Table 1 and Appendix A.

That it be noted that for the year 2017-18 Cambridgeshire County Council, Cambridgeshire Police and Crime Commissioner and Cambridgeshire and Peterborough Fire Authority have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings as shown in Table 1:

             and

j)            that the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the amounts set out in Appendix B as the amounts of council tax for the year 2017-18 for each of the categories of dwellings shown in Appendix B.

SUPPORTING INFORMATION IN RESPECT OF SETTING THE COUNCIL TAX

Including the precepts from the County Council, the Police and Crime Commissioner, Fire Authority and all of the parishes, the formal Council Resolution would produce a council tax for a band D property of:

On these figures the council tax would range from £1,052.85 for Band A to £3,439.02 for Band H before any discounts or benefits.

Appendix C shows the General Fund summary including Parish precepts and the final Formula Grant figure.