OSDM.10/20
Members
considered a report that sought to recommend a series of options in
order to produce an amended Revenue Budget for 2020/21.
In her
introduction, the Leader of Council thanked Members for their
invaluable contributions during the recent Budget Workshop and
wished to put on record her gratitude for the hard work of the
Section 151 Officer and her finance colleagues in producing such a
comprehensive draft amended Budget for 2020/21.
In
discussion, particular reference was made to:-
(a)
car parking
income. In light of the summer season
in the South Hams being busier than previously envisaged, a Member
asked whether this had seen a positive impact on car parking
income. In reply, officers advised that
the information was still being compiled but would be available in
time for the Executive meeting to be held on 17 September
2020;
(b)
the leisure
contract. The Joint Meeting was
reminded that a further report on the leisure contract was to be
considered by the Council at its meeting to be held on 24 September
2020;
(c)
an amendment to part 1 of the
motion. An amendment was PROPOSED and SECONDED that read as
follows:
‘That the
Joint Meeting recommend to the Executive to recommend to Council
that the options 1 to 4 (as set out in Section 5.2 of the presented
agenda report) be agreed (totalling £433,000) and the
remainder of £880,000 be taken from the Unearmarked Reserve, in order to produce an Amended
Revenue Budget for 2020-21.’
In their support for the
amendment, some Members were of the view that it would be more
appropriate (bearing in mind the nature of the COVID-19 pandemic
being deemed an Emergency) for Unearmarked Reserves to be used to balance the
Revenue Budget for 2020-21. In
contrast, other Members felt that it would not be prudent to use
Unearmarked Reserves and believed that
Members should trust the advice of their highly respected Section
151 Officer.
When put to the vote, the
amendment was declared LOST.
It was
then:
RECOMMENDED
That the Joint Meeting of the Overview and
Scrutiny Panel and Development Management Committee RECOMMEND to the Executive to RECOMMEND to
Council that:
1.
the ten options totalling
£1,313,000 (as summarised below) be approved in order to
produce an Amended Revenue Budget for 2020/21:
- use the third
tranche of COVID-19 funding received from Central
Government (£121,000);
-
use the New Burdens Government Grant funding
received for the
administration of the Business Rates
Grants (£170,000);
- utilise the 2019-20 Statement of Accounts
underspend (£112,000);
- use funding from
the Strategic Change Transformation Programme (T18)
Earmarked Reserve (£30,000);
- cease the 2020/21
annual contribution towards building up a budget for
future years for the Follaton Roof and
Follaton Lift (£80,000);
- use funding from
Unearmarked Reserves
(£200,000);
- use funding from
the Economic Regeneration (Business Rates Pilot Gain)
Earmarked Reserve (£127,000);
- cease the Repairs
and Maintenance (R&M) contribution for the R&M
Earmarked Reserve (£80,000);
- use funding from
the Business Rates Retention Reserve (£343,000);
and
- cease making a
contribution to the Planning Earmarked Reserve in
2020/21 (£50,000);
2.
Unearmarked Reserves be replenished through a range of
measures to be agreed as part of the Medium Term Financial Strategy
as set out at Section 5.8 of the presented agenda
report;
3.
it be noted that the future
capacity of Reserves (as set out at Section 5.13 of the presented
agenda report) may have to be called upon to meet any future
financial challenges and/or additional requirements; and
4.
the funding within the Business Rates Retention
Fund be earmarked for employment land opportunities (as outlined at
Section 8.7 of the presented agenda report).