Agenda item

The following papers are relevant to this item:

·       The Council Tax Resolution report and its three appendices circulated with the Council agenda for this meeting.

·       The agenda report (pages 10 to 17), its four appendices in the agenda supplement (pages 1 to 55) and an amendment identified in the third agenda supplement considered by the Cabinet at its meeting on Tuesday 6 February 2018.

The Cabinet’s recommendations (set out below for information only in the second [Note]) have been superseded by the following:

RECOMMENDATION TO THE COUNCIL

(1)  That following consideration of the draft budget by the Cabinet the Budget for 2018-2019 be approved as follows:

                           i.          The 2018-2019 Net Revenue Budget in respect of Chichester District Council’s own services be approved at £13,025,600.

                          ii.          The 2018-19 Council Tax Requirement in respect of Chichester District Council’s own services be approved at £8,227,400.

                        iii.          A Council Tax of £155.81 (Band D equivalent) be approved.  This represents a £5.00 (3.32 %) increase on the Band D charge.

                        iv.          The Investment Opportunities Reserve be increased by £861,300.

(2)  That the Council approves the Resolutions in Appendix A to the Council Tax Resolution report.

[Note The foregoing recommendations are required by standing order 9.5 in Chichester District Council’s Constitution (pursuant to regulation 2 (3) of the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014) to be the subject of a recorded vote]

[Note The recommendations to the Council made by the Cabinet in respect of this agenda ite were as follows:

(1)  That a net budget requirement of £12,988,300 for 2018-2019 be approved.

(2)  That council tax be increased by £5 from £150.81 to £155.81 for a band D equivalent in 2018-2019.

(3)  That the Investment Opportunities Reserve be increased by £820,200.

(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.

(5)  The capital programme including the asset renewal programme (appendix 1c and 1d) be approved.]

The Council considered the recommendation (as amended) made to it by the Cabinet at its meeting on Tuesday 6 February 2018. The original and amended recommendations were in the Cabinet report (pages 10 to 17 of the agenda), its appendices (pages 1 to 55 of the agenda supplement) and the third agenda supplement. The recommendation had undergone subsequent revision as shown in the Council Tax Resolution report appended to the Council agenda (pages 18 to 33). The Council agenda set out the revised and the original recommendation. There had since been one additional change to the amended recommendation and this was set out in the update sheet circulated at this meeting: recommendation (1) i., ii., iii. and iv. were supplemented by v., which appeared as (5) in the Cabinet’s original recommendation and stated as follows: ‘v. The capital programme including the asset renewal programme (appendix 1c and 1d) be approved.’

Mr Wilding (Cabinet Member for Corporate Services) formally moved the Cabinet’s recommendation as amended and this was seconded by Mr Dignum (Leader of the Council). 

In commending the draft spending plans and the recommendation (as amended) in the report, Mr Wilding explained that this was the next stage after the Council’s approval on Tuesday 23 January 2018 of CDC’s Financial Strategy and Plan 2018-2019, namely to set the budget and the council tax.  The report focussed on the budget spending plans of each Cabinet portfolio, how they aggregated and, together with the various funding streams, underpinned the balanced budget. He acknowledged the impressive collaborative effort undertaken by budget managers and CDC’s finance team and overseen by the Strategic Leadership Team whereby service delivery priorities were met within the onerous constraints on public sector financial resources. The budget would be the third year in the four-year settlement agreed by CDC and the government.  The funding sources in the financial strategy set out the best estimate for funding going forward beyond 2019-2020 (the last year of the four-year settlement).  Final details from the government of the local government annual financial settlement were awaited and so the draft budget was based on the draft settlement released on 19 December 2017. The final settlement had resulted in additional funding of £41,000.  The balancing of the budget was undertaken in the context of a five-year financial strategy and some of the key variables and issues affecting that model were described in the report: income from fees, charges and rents; use of reserves; and council tax. It was firmly believed that CDC should once again take up central government’s offer of allowing a rise in council tax by £5 for band D properties (less than 10 pence per week) and equivalent increases for other property bands. This would help to offset the continued withdrawal of central government funding eg in 2018-2019 CDC would no longer receive any Revenue Support Grant. The modest council tax increase (assumed in the five-year financial strategy) would generate an extra £264,000 per year and assist in closing the budget deficit which would otherwise emerge in the medium term. In addition there was the continuing work on the deficit reduction plan which aimed to generate further income and savings amounting to £2.3m over the next five years. Those measures would help to minimise future council tax rises. With reference to Appendix B to the Council Tax Resolution report (page 24), he explained by way of illustration the calculation for the Band D council tax charge for Appledram.

He alluded to and summarised the following from the papers: the net revenue requirement in the income and expenditure statement; the effect any increase or decrease of the final government settlement on the amount of transfer into the Investment Opportunities Reserve; the major variances by department and service area between the 2017-2018 and 2018-2019 budgets (the service efficiency savings would more than fund the growth items); the portfolio budget summaries; the Capital and Projects Programme and Asset Replacement Programme; the Statement of Reserves (which was consistent with the Financial Strategy, remained robust and healthy and showed that the Capital Programme and Asset Replacement Programme were fully funded); and the section 151 officer’s statutory report in para 14.2 of the report, in which Mr J Ward (Head of Finance and Governance Services) advised that the financial estimates were sound, the resultant estimates robust and the reserves adequate.

At the end of his presentation he acknowledged the sterling efforts of Mr Ward, Mrs H Belenger (Accountancy Services Manager), Mr M Catlow (Group Accountant), Mr D Cooper (Group Accountant) and Ms D Hobbs (Assistant Accountant) in the preparation of the budget. At his request the last four of those named officers stood up in the Council Chamber and received appreciative applause from members.

During the ensuing discussion, in which the skill of preparing this balanced budget was commended, members’ questions and comments on points of details were answered by Mr Wilding, Mr Ward, Mrs Lintill and Mr Dignum. The subjects covered included: (a) the task and finish group for The Novium museum and tourist centre; (b) the variations or trends in revenue streams eg car parks, planning, the museum, and property investment, the reasons for them and how they could affect the budget; (c) the budget increases, which in turn led to a council tax increase, such as the Chichester Festival Theatre and Pallant House Gallery, pension contributions, additional cleaning of the A27 and A and B roads and clearing away fly-tipping: (c) the risk that certain funding might not continue to be available eg business rates retention and the New Homes Bonus; and (d) the assurance that CDC’s capital programme was and would remain full-funded.

Mr Dignum concluded the discussion by pointing out that the budget was not merely a collection of figures but represented CDC’s values and commitments with respect to, for example, helping the homeless, the health and safety of all residents, a highly efficient waste service and striving to do as much as possible to support the local economy. CDC was achieving its aims without cutting frontline services and had one of the lowest council taxes in the county. CDC was providing 80 services for just £3 a week for the average household.

As stated in the agenda, the recommendation (as amended) was required by standing order 9.5 in CDC’s Constitution to be the subject of a recorded vote. After the amended recommendation was read out, the Chief Executive conducted the recorded vote. As shown in the table below, the 38 members present voted as follows:

·       For: 38

·       Against: 0

·       Abstain: 0

Nine members were absent and there was one vacancy (Rogate).

Decision

In accordance with the aforesaid recorded vote, the Cabinet’s recommendations, as amended in the Council Tax Resolution report and the update sheet, were unanimously supported with no votes against and no abstentions. 

RESOLVED

(1)  That following consideration of the draft budget by the Cabinet the Budget for 2018-2019 be approved as follows:

                           i.          The 2018-2019 Net Revenue Budget in respect of Chichester District Council’s own services be approved at £13,025,600.

                          ii.          The 2018-19 Council Tax Requirement in respect of Chichester District Council’s own services be approved at £8,227,400.

                        iii.          A Council Tax of £155.81 (Band D equivalent) be approved.  This represents a £5.00 (3.32 %) increase on the Band D charge.

                        iv.          The Investment Opportunities Reserve be increased by £861,300.

                         v.          The capital programme including the asset renewal programme (appendix 1c and 1d) be approved.

(2)  That the Council approves the Resolutions in Appendix A to the Council Tax Resolution report.