Agenda item

53/18              

Consideration was given to a report that detailed the formal proposals of the Executive to achieve a balanced Budget for 2019/20.

 

In discussion, reference was made to:-

 

(a)   an alternative set of Revenue Budget Proposals.  In accordance with the Budget and Policy Framework Procedure Rules, the Chairman informed that an alternative set of Revenue Budget Proposals had been submitted three working days in advance of this Council meeting.  At this point, the proposals were MOVED and SECONDED as follows:-

 

1.     Following the outsourcing of rubbish collection and other commercial services, re-organise the Senior Leadership Team (saving £200,000);

2.     Use internal borrowings (up to £3 million) to fund the leisure investment/waste expenditure rather than Public Works Loan Board (saving £53,300);

3.     Cease funding the Local Enterprise Partnership (saving £5,000);

4.     Reduce car parking charges in our market town centres by 10% (costing £175,000) with a target to reduce charges by 50% by 2022/23;

5.     Stop the introduction of Pay On Entry for public toilets (costing £36,000) for 2019/20;

6.     Cancel cuts to the South Hams CVS and the South Devon AONB unit (costing £22,300);

7.     Employ a dedicated officer to monitor Environmental Mitigation Measures (£30,000);

8.     Start the immediate and systematic transfer of assets (including car parks) but not liabilities (public toilets) to the relevant Town or Parish Council.  (These can then be leased back to SHDC at a Peppercorn Rent);

9.     Set up a wholly owned housing company to act as a vehicle to deliver genuinely affordable and social housing for young working families and reduce the housing waiting list that currently stands at over 1,600;

10.  Accelerate the investment from Reserves (including Section 106 Monies) in incubator and start-up business units and the delivery of genuinely affordable housing based on the average local wage;

11.  Work with Devon County Council and other Devon District Councils to harmonise rubbish collection and car parking enforcement (on and off-street);

12.  Lobby Central Government for local councils to charge up to 200% or more Council Tax on Second and Holiday Homes.  And continue to call for an end to the business rates loophole for domestic properties.  If these changes were implemented, this would raise in the region of £1 million for the District Council.  These extra funds would be used to reduce car parking charges in our market towns and invest in social housing;

13.  Direct commercial investment into town centres so as to secure their future in the face on on-line shopping;

14.  Take urgent steps to identify opportunities for the expenditure of £1,671,000 of the Community Housing Fund on affordable social housing projects and report to Members within two months.

 

‘This is a dynamic, vibrant and strategic budget for the medium and long term. It supports our local businesses, market towns and the tourism industry. It will help to unlock the potential of our young entrepreneurs and creative talents in order to drive economic growth in the South Hams and build genuinely affordable housing for young working families.’

 

The Chairman advised that it was his intention for each part of this amendment to be debated individually before the vote was then taken on block.

 

In their introductions, the proposer and seconder of the amendment made particular reference to:

 

-        re-organising the Senior Leadership Team.  In support of the proposal to save £200,000, Members highlighted the recent Council decision to award the Frontline Services (Waste and Cleansing) contract to an external provider (Minute 41/18 refers) and the consequent scope to reduce the senior management support for these services;

-        the Local Enterprise Partnership not providing any value for money;

-        their proposals striving to promote the South Hams as a ‘destination of choice’;

-        the provision for Council assets to be safeguarded for local communities in the future;

-        the severe budget pressures facing the Council requiring Members to look at alternative methods of increasing revenue.  In highlighting the wish for local councils to be able to charge up to 200% or more Council Tax on Second and Holiday Homes, the Members felt that this would help to ease the current financial pressures on the Council.

 

     During the ensuing debate, the following points were raised:-

 

(a)   Members noted that the Council was unable to reverse its decision to fund the borrowings associated with the leisure contract from the Public Works Loan Board;

 

(b)   Whilst accepting that it was unpopular with a number of Members, the importance of the Council being represented on the Local Enterprise Partnership was highlighted;

 

(c)    A Member stressed that any reductions in Car Parking Charges would have a significant impact upon the Council’s financial position.  Furthermore, the proposals were not felt to suggest an alternative means of offsetting this cost to the Council;

 

(d)   Having been informed that the installation of Pay On Entry equipment on Council owned public toilets would help to ensure they remained open, a Member was of the view that the payback period was such that the proposals did not constitute good value for money;

 

(e)   Some Members expressed their disappointment that, despite a Task and Finish Group having undertaken a detailed review and the recommendations being considered at great length at a number of Member meetings, the matter of funding for the CVS and AONB was still being debated;

 

(f)     With regard to the monitoring of Environmental Mitigation Measures, a Member highlighted the role that was played by the Council’s Mobile Locality Officers.  Also, the view was expressed that all Members had to be proactive in their local Wards to ensure that the planning system was not undermined;

 

(g)   Some Members made reference to the debate at the Overview and Scrutiny Panel meeting on 6 September 2018 (Minute O&S.35/18 refers) and felt that the objective to delivery genuinely affordable and social housing for young working families could be achieved irrespective of whether or not a Wholly Owned Company was formed;

 

(h)   During the budget consultation exercise with local businesses, there was a consistent message that the Council should be developing more small employment units;

 

(i)     Members repeated their wish for the business rates loophole for domestic properties to be closed as soon as was practically possible;

 

(j)     Despite the Leader stating in May 2018 that he wished to give great emphasis to the building of Council houses, a Member expressed his disappointment at the apparent lack of significant progress in this regard.  

 

In line with statutory requirements, a recorded vote was then undertaken on this amendment and the vote was recorded as follows:-

 

For the amendment (5): Cllrs Baldry, Birch, Brazil, Green and Vint.

 

Against the amendment (19): Cllrs Bastone, Blackler, Bramble, Brown, Cane, Cuthbert, Foss, Hitchins, Holway, May, Pearce, Pennington, Pringle, Rowe, Saltern, Smerdon, Steer, Wingate and Wright.

 

Abstentions (0):

 

Absent (6): Cllrs Gilbert, Hawkins, Hicks, Hodgson, Hopwood and Tucker

 

and the vote on this amendment was therefore declared LOST.

 

During the debate on the substantive motion, reference was made to:-

 

-        on-street and off-street car parking enforcement.  A number of Members believed that the current practice was inefficient and an additional recommendation was PROPOSED and SECONDED as follows:

 

‘That officers be instructed to contact Devon County Council colleagues in an attempt to amalgamate the practices of on-street and off-street car parking enforcement.’

 

When put to the vote, this additional recommendation was declared CARRIED;

 

-        the Totnes Town Council precept for 2019/20.  In highlighting that the Totnes Town Council precept for 2019/20 was actually higher than the South Hams District Council precept for 2019/20, it was PROPOSED and SECONDED and on being put to the vote declared CARRIED that ‘the Section 151 Officer be instructed to formally write to the Town Clerk of Totnes Town Council to ask them to provide a statement explaining the increase in their element of the Council Tax.’

 

In line with statutory requirements, a recorded vote was then undertaken on part 1 of the motion (i.e. that Council Tax is increased by £5 for 2019/20).  The voting on this part was recorded as follows:-

 

For the motion (24):      Cllrs Baldry, Bastone, Birch, Blackler, Bramble, Brazil, Brown, Cane, Cuthbert, Foss, Green, Hitchins, Holway, May, Pearce, Pennington, Pringle, Rowe, Saltern, Smerdon, Steer, Vint, Wingate and Wright.

 

Against the motion (0):

 

Abstentions (0):

 

Absent (6): Cllrs Gilbert, Hawkins, Hicks, Hodgson, Hopwood and Tucker

 

and the vote on part 1 of the motion was therefore declared CARRIED.

 

In line with statutory requirements, a recorded vote was then undertaken on parts 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20 of the motion.  The voting on these parts was recorded as follows:-

 

For the motion (19):      Cllrs Bastone, Blackler, Bramble, Brown, Cane, Cuthbert, Foss, Hitchins, Holway, May, Pearce, Pennington, Pringle, Rowe, Saltern, Smerdon, Steer, Wingate and Wright.

 

Against the motion (5):Cllrs Baldry, Birch, Brazil, Green and Vint

 

Abstentions (0):            

 

Absent (6): Cllrs Gilbert, Hawkins, Hicks, Hodgson, Hopwood and Tucker

 

and the vote on these parts of the motion was therefore declared CARRIED.

 

It was then:

 

RESOLVED

 

1.     That Council Tax be increased by £5 (which equates to a Band D Council Tax of £165.42 for 2019/20, an increase of £5 per year or 10 pence per week).  This equates to a Council Tax Requirement of £6,315,689;

 

2.     That the financial pressures outlined in Appendix B of the presented agenda report (amounting to £1,383,700) be agreed;

 

3.     That the schedule of savings identified in Appendix B of the presented agenda report (totalling £1,067,226) be agreed;

 

4.     That the Collection Fund Surplus of £112,000 (as illustrated in Appendix B of the presented agenda report) be agreed;

 

5.     That agreement be given to the net contributions to Reserves (£714,300) being included within the Authority’s Budget (as set out in Appendix C of the presented agenda report).  (NB. this includes using £500,000 of New Homes Bonus funding to fund the 2019/20 Revenue Budget);

 

6.     That delegated authority be given to the Section 151 Officer, in consultation with the Leader of Council and the lead Executive Member for Finance, to agree the final amount of New Homes Bonus funding for the Dartmoor National Park for 2019/20;

 

7.     That the Council Tax Support Grant paid to Town and Parish Councils be reduced by 9.85% for 2019/20 (as set out at Appendix A of the presented agenda report).  (NB. this equates to a payment of £74,473 for 2019/20);

 

8.     That the Council should set its total net expenditure for 2019/20 at £8,832,752 (as shown in Appendix B of the presented agenda report);

 

9.     That the minimum level of the Unearmarked Revenue Reserves be maintained at £1,500,000 (as set out at Section 10 of the Revenue Budget report presented to the Executive meeting on 7 February 2019);

 

10.  That the level of Reserves (as set out within the Revenue Budget report presented to the Executive meeting on 7 February 2019) and the assessment of their adequacy and the robustness of budget estimates be noted.  (NB. this is a requirement of Part 2 of the Local Government Act 2003);

 

11.  That the proposed Fees and Charges set out for Parks, Open Spaces and Outdoor Sports be approved;

 

12.  That the proposed Environmental Health Charges (as outlined in Appendix B of the Fees and Charges report presented to the joint Overview and Scrutiny Panel / Development Management Committee held on 24 January 2019) be approved;

 

13.  That the proposed Fees and Charges for Development Management (as set out in Appendix C of the Fees and Charges report presented to the joint Overview and Scrutiny Panel / Development Management Committee held on 24 January 2019) be approved;

 

14.  That delegated authority be given to the Group Manager for Commercial Services and the Section 151 Officer, in consultation with the lead Executive Member for Commercial Services, to set the Dartmouth Lower Ferry Fees to take account of market conditions, including competitor charges;

 

15.  That there are no changes to the Car Park Charges for 2019/20, except for where this has been agreed as an alternative to the implementation of Pay on Entry at public toilets;

 

16.  That the proposed changes to Boat Storage Charges (as set out in paragraph 3.7 of the Fees and Charges report that was presented to the joint Overview and Scrutiny Panel / Development Management Committee meeting held on 24 January 2019) be approved;

 

 

17.  That delegated authority be given to the Group Manager for Commercial Services and Section 151 Officer, in consultation with the lead Executive Member for Commercial Services, to set the Commercial Waste charges, once all the price modelling factors are known;

 

18.  That officers undertake a review into all aspects of Fees and Charges related to Zoo Licensing, with these being reported back to the joint Overview and Scrutiny Panel / Development Management Committee Budget Consultation meeting held in January 2020;

 

19.  That the Section 151 Officer (Strategic Finance Lead) be instructed to formally write to the Town Clerk of Totnes Town Council to ask them to provide a statement explaining the increase in their element of the Council Tax (the Parish Precept), which is increasing from £125.98 in 2018/19 to £171.33 for 2019/20 for a Band D property.

 

The increase of £45.35 represents a 36% increase in the parish precept (this compares to the South Hams District Council element of the Council Tax, which is increasing by £5 for next year, an increase of 3.12%).

 

It is noted that the Band D Council Tax of Totnes Town Council for 2019/20 (£171.33) will now be £5.91 higher than that of South Hams District Council for 2019/20 (£165.42).

 

As South Hams District Council is responsible for sending out the Council Tax bills and collecting the Council Tax from residents, it is anticipated that the Council Tax increase set by Totnes Town Council will cause a significant amount of telephone calls into the Council’s Contact Centre and letters from residents querying the reason for the significant increase; and

 

20.  That officers be instructed to contact Devon County Council colleagues in an attempt to amalgamate the practices of on-street and off-street car parking enforcement.