Agenda item

OSDM.4/18   

Members considered a report that asked for consideration of the draft Budget proposals for 2019-20.

In introducing this agenda item, the Chairman highlighted the need for the Meeting to focus on making recommendations to the Executive on how the Council should close the projected Budget gap of £75,007.

In discussion, the following points were raised:-

(a)   A number of Members expressed their disappointment that only half of the total membership had completed the annual budget survey;

(b)   Officers informed that the future position over New Homes Bonus funding remained unknown and it was hoped that clarity would be obtained in September 2019;

(c)    With regard to the budget pressure titled: ‘Car parking costs – collection fees’, it was noted that officers regularly assessed the market and assurances were given that this would continue to be reviewed to ensure that the Council was obtaining the best value for money;

(d)   To ensure accurate calculations of the Council Tax Base, the meeting was informed that strategic planning officers had been tasked with estimating the number of new dwellings that would be included with the rating list each year for the next five years;

(e)   Officers confirmed that other alternative fund managers to the CCLA Property Fund had been explored.  The CCLA Fund was the only such fund where the investment did not classify as ‘Capital Expenditure’ and also the CCLA Fund had a five year dispensation from the Government from the fair value movements affecting the Income and Expenditure Account.  In light of this, CCLA was felt to remain the most appropriate investment for the Council;

(f)     The Chairman of the Drug and Alcohol Task and Finish Group confirmed that he respected the view of the majority of Members in the Budget Survey who did not support the cost pressure that had been identified by the Group during its review;

(g)   Further to the Council decision at its meeting on 27 September 2018 to defer decisions to reduce funding to the South Devon Area of Outstanding Natural Beauty and South Devon Council for Voluntary Service (CVS) (Minute 36/18(h) refers) as part of the wider 2019/20 Budget Setting process, a lengthy debate ensued.

The overriding view of the meeting was that, whilst a number of Members did not particularly like the recommendations to reduce funding to the two organisations, there was a recognition that such difficult decisions had to be taken in the context of the Council’s significant Budget pressures;

(h)   Officers agreed to include with the Executive agenda papers for the meeting to be held on 7 February 2019:

-        Additional details on the one-off implementation costs for the Devon aligned service for waste; and

-        The list of contributions to Earmarked Reserves for 2016/17, 2017/18, 2018/19 and 2019/20.

(i)     Having been informed that views were being sought on options to close the £75,007 Budget Gap, the following motion was PROPOSED and SECONDED:-

‘That the following measures be implemented to close the predicted 2019/20 Budget Gap of £75,007:

-        To reduce the contribution to the Planning Policy and Major Developments from £75,000 to £50,000;

-        To remove the £7,000 allocated to the ‘Communities Together Fund’; and

-        To reduce the contribution to the Land and Development Reserve from £50,000 to £7,000 (with the £7 being incorporated within the roundings to the nearest £’000).

In discussion, some apprehension was raised over the proposal whereby the contribution to the Land and Development Reserve should be so drastically reduced.  In reply, assurances were given that the Council would still retain the ability to use Unearmarked Reserves if it was deemed necessary during the course of the year

When put to the vote, this proposal was declared CARRIED.

It was then:

RECOMMENDED

That the Executive RECOMMEND to Council that the joint meeting supports:-