Agenda item

(See report at agenda item 5 (pages 25 to 33) of the Cabinet agenda of 7 February 2017, pages 1 to 48 of the first supplement to the agenda and page 1 of the second supplement to the agenda)

RECOMMENDED BY THE CABINET

1)    That a net budget requirement of £12,362,700 for 2017-2018 be approved.

2)    That council tax is increased by £5 from £145.81 to £150.81 for a band D equivalent in 2017-2018.

3)    That the Investment Opportunities Reserve is increased by £470,600.

4)    That, should the final settlement differ from the provisional settlement, any increase or decrease be dealt with by adjusting the transfer to the Investment Opportunities Reserve above.

The Council received a report from Mr Ward (Head of Finance and Governance Services and the council’s S151 Officer), circulated with the supplement to the agenda (copy attached to the official minutes).

Mrs Hardwick (Cabinet Member for Finance and Governance Services), seconded by Mr Dignum (Leader of the Council), moved the recommendations of the Cabinet.

Mrs Hardwick introduced the report.  She advised that taking up the government’s offer of allowing, without a referendum, a rise in Council tax by £5 (band D equivalent) to offset the continued withdrawal of government funding would generate an extra £260,000 and assist in closing the budget deficit that would otherwise emerge in the medium term.  This measure would be taken alongside the continuing work on the deficit reduction plan which aimed to generate further income and savings amounting to £3.9m over the next 5 years so as to minimise future council tax increases.

The budget process identified the planned variances from the current year’s budget.  The Capital and Projects Programme detailed the projects, like Enterprise Gateway and Plot 21 Terminus Road, which had already been approved by the Cabinet and Council.  The Statement of Reserves remained robust and healthy, highlighted the purpose of specific reserves and the respective authorisations for their use and demonstrated that the Capital Programme and Asset Replacement programmes were fully funded.

The budget and the supporting council tax resolutions incorporated spending plans that support the council’s corporate plan objectives of looking after our community and the environment, facilitating the supply of affordable housing, and helping the local economy to prosper.  At the same time this budget demonstrated the council’s financial resilience by meeting all the tests of financial prudence.

Mrs Hardwick extended thanks to Mr Ward, and Group Accountants Mr Cooper and Mr Catlow and to all the finance team for their hard work and diligence on this year’s budget.

Mr Hayes and Mrs Duncton commended this positive budget.

Mr Plowman queried the total amount of money, both revenue and capital, which was to be spent on the Novium alone.  Mr Cooper (Group Accountant) responded that the total costs for the Novium alone (ie excluding the tourist information centre and Guildhall) were £586,000 in cash terms in 2017/18 (£239,000 staffing, £481,000 running costs and £134,000 income) plus an additional £33,000 in the Asset Replacement Programme.

Mr Oakley supported the budget however he was concerned that an amount for the A27 road cleaning had not been included in the revenue budget.  He was also concerned that a proportion of the cultural grant payments were being included in the revenue budget.  Mr Ward advised that the current cultural grant payments had been funded from an earmarked reserve which would be depleted part way through2017/18. This has arisen because interest earned on the balance had not been added to the reserve, but instead credited to general reserves.  The new cultural grant payments had been built into the base budget in accordance with the financial strategy principles, and rather than top up the cultural grants reserve from general reserves he felt it was more transparent to fund the 2017/18 shortfall from the revenue budget.

Chichester Contract Services had been requested to carry out a review of street cleansing and bring a report back to Cabinet in September 2017 with an estimate of ongoing commitments.  If the recommendation was that the 2017/18 revenue budget should be increased then this money would be allocated from existing budgets or as a one off from reserves.  Any on-going requirement would then be built into the base budget for 2018/19 onwards.

In response to a question from Mr Cullen, Mr Ward advised that in 2017 the council would retain approximately 4% of the area’s business rates.

Mr J F Elliot, referring to Mr Dignum’s opening address, was concerned at the state of the parks and gardens on the outside of the city walls.  Mr Dignum advised that the independent consultant had found this in fair order. Mr Carvell (Executive Director) undertook to look into this and respond to Mr Elliott.

The recommendations were put to the vote, and declared carried.

In accordance with the Standing Order 9 as required by the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken as follows:

For the recommendations: Mrs C Apel, Mr G Barrett, Mr J Brown, Mr P Budge, Mr J Connor, Mr M Cullen, Mr T Dempster, Mrs P Dignum, Mr T Dignum, Mrs J Duncton, Mr M Dunn, Mr J F Elliott, Mr N Galloway, Mrs N Graves, Mr M Hall, Mrs E Hamilton, Mrs P Hardwick, Mr R Hayes, Mr G Hicks, Mr L Hixson, Mr F Hobbs, Mrs G Keegan, Mrs J Kilby, Mrs E Lintill, Mr S Lloyd-Williams, Mr L Macey, Mr G McAra, Mr S Morley, Ms C Neville, Mr S Oakley, Mrs P Plant, Mr R Plowman, Mr H Potter, Mrs C Purnell, Mr J Ridd, Mr A Shaxson, Mrs J Tassell, Mrs S Taylor, Mr N Thomas, Mrs T Tull, Mr D Wakeham and Mrs S Westacott (42)

Against the recommendations: None

Abstained: None

RESOLVED

1)    That a net budget requirement of £12,362,700 for 2017-2018 be approved.

2)    That the 2017-18 Council Tax Requirement in respect of the Council’s own services be approved at £7,829,898.

3)    That council tax is increased by £5 from £145.81 to £150.81 for a band D equivalent in 2017-2018.

4)    That the Investment Opportunities Reserve is increased by £470,600.

5)    That the Council Tax Resolution as set out in Appendix A to the report by the Head of Finance and Governance Services be passed.