Agenda item

66/16              

The Council considered a report that provided an update of the Council’s overall financial position and that detailed the formal recommendations of the Executive to achieve a balanced Budget for 2017/18 (Minutes E.55/16 and E.56/16 also refer).        

 

The Leader of Council proceeded to introduce the agenda item and made specific reference to:-

 

-        the ongoing cuts in central government funding;

-        his wish for income generation to be a top priority for the Council during 2017/18; and

-        his belief that the Council remained in a fairly strong financial position.

 

At this point, the 23 recommendations were PROPOSED and SECONDED and the Chairman subsequently invited any debate on each of them individually.  In so doing, the following points were raised:-

 

(i)     With regard to the financial pressures outlined in recommendation 2, a Member highlighted that the waste and recycling service continued to create the vast majority of these pressures.  As a result, the Member urged the Overview and Scrutiny Panel to have a detailed look at this service.  In reply, the Leader agreed that the Council could not continue to spend so much on the service.  He then proceeded to advise that the Waste and Recycling Task and Finish Group was currently looking at all aspects of the service and would be reporting its recommendations to the Overview and Scrutiny Panel in the upcoming months;

 

(ii)    Some disappointment was expressed that the joint meeting of the Overview and Scrutiny Panel and the Development Management Committee that had considered the draft Budget proposals had not been presented with the most up to date information;

 

 

 

(iii)  Some Members emphasised their lack of support for the proposed increases in car parking fees.  In their opposition, these Members cited reasons including: the consequent detrimental impact on the local economy by driving customers away from town centres and public transport provision being so poor that it did not offer a viable alternative to the car.

 

In contrast, other Members felt that, whilst regrettable, car parking fees had been frozen for the last five years and, such were the budget constraints facing the Council, that they would be supporting the recommendations;

 

(iv)  With regard to additional recommendation 23, a Member urged the Council to support this proposal and put pressure on central government to reverse the trend of such substantial grant funding reductions.  A number of Members echoed the sentiments that were contained in this recommendation and asked that local MPs also be sent a copy of the letter.

 

In line with statutory requirements, a recorded vote was then undertaken on part 11 of the motion.  The voting on this part was recorded as follows:-

 

For the motion (21):                  Cllrs Bastone, Blackler, Bramble, Brown, Cane, Cuthbert, Foss, Green, Hawkins, Hicks, Hodgson, Holway, Hopwood, May, Pearce, Pennington, Smerdon, Steer, Tucker, Wingate and Wright.

 

Against the motion (2):             Cllrs Baldry and Brazil.

 

Abstentions (4):                        Cllrs Gilbert, Rowe, Saltern and Vint.

 

       Absent (3):                               Cllrs Birch, Hitchins and Pringle.

 

 

In line with statutory requirements, a recorded vote was then undertaken on parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 and 23 of the motion.  The voting on these parts was recorded as follows:-

 

For the motion (26):                  Cllrs Baldry, Bastone, Blackler, Bramble, Brazil,  Brown, Cane, Cuthbert, Foss, Gilbert, Green, Hawkins, Hicks, Hodgson, Holway, Hopwood, May, Pearce, Pennington, Saltern, Smerdon, Steer, Tucker, Vint, Wingate and Wright.

 

Against the motion (0):    

 

Abstentions (0):               

 

Absent (4):                               Cllrs Birch, Hitchins, Pringle and Rowe.

 

It was then:

 

RESOLVED

 

1.     That Council Tax is increased by £5 (which equates to a Band D council tax of £155.42 for 2017/18, an increase of £5 per year or 10 pence per week). This equates to a Council Tax requirement of £5,809,541 (as shown in Appendix B of the presented agenda report));

 

2.     That the financial pressures in Appendix B of the presented agenda report (amounting to £1,215,000) be agreed;

 

3.     That the £10,000 discretionary budget bid for the Citizens Advice Bureau be agreed;

 

4.     That the schedule of savings identified in Appendix B of the presented agenda report (totalling £877,800) be agreed;

 

5.     That the Collection Fund Surplus of £143,000 (as shown in Appendix B of the presented agenda report) be agreed;

 

6.     That the level of contributions to reserves to be included within the Authority’s Budget (as set out in Appendix C of the presented agenda report) be agreed;

 

7.     That £153,900 of New Homes Bonus funding for 2017/18 be allocated to the Community Reinvestment Projects budget for 2017/18.  In addition, any underspend from the 2016/17 Community Reinvestment Projects budget of £153,900 be transferred into the Capital Programme Reserve;

 

8.     That £50,000 of New Homes Bonus funding be allocated to the Joint Local Plan;

 

9.     That the Council earmark £3,060 of its allocation of the New Homes Bonus for 2017/18 for the Dartmoor National Park Sustainable Community Fund, with delegated authority being granted to the Section 151 Officer, in consultation with the Leader and the Lead Executive Member for Support Services to agree the final amount transferred.  (NB. the funds are awarded as a one-off payment to Dartmoor National Park, to award projects on an application basis that they administer.  The following conditions will apply:

 

o   decisions must be taken in consultation with the South Hams District Council local Ward Member(s);

 

o   funding can only be used for capital spending on projects in those parts of Dartmoor National Park which fall with the South Hams District Council Boundaries and enable the Dartmoor National Park to carry out its social economic responsibilities; and

 

o   Dartmoor National Park reports on the progress in the application and use of the funds to the Overview and Scrutiny Panel in time for budget setting decisions to be made;

 

10.  That £75,000 of the Budget Surplus Contingency Earmarked Reserve be used to fund five additional Case Managers within Development Management for a period of one year;

 

11.  That an income target equivalent to a 2% increase in car parking fees (amounting to £37,800) be approved for 2017/18, with consultation taking place with communities as to how this is achieved through the community led tariffs policy;

 

12.  That the budget gap of £336,854 be closed by using £287,273 from the Budget Surplus Contingency Earmarked Reserve and £49,581 from the New Homes Bonus Reserve;

 

13.  That the Council adopt the principle that the future decision on the Dartmouth Lower Ferry (from the work of the Task and Finish Group) reduces the amount taken from the Budget Surplus Contingency Earmarked Reserve required to balance the Budget;

 

14.  That the Council Tax Support Grant paid to Town and Parish Councils be reduced by 9.85% for 2017/18, 2018/19 and 2019/20.  (NB. this equates to a payment of £91,644 for 2017/18);

 

15.  That the Council set its total net expenditure for 2017/18 at £8,346,076 (as shown in Appendix B of the presented agenda report);

 

16.  That the minimum level of the Unearmarked Revenue Reserves be maintained at £1,500,000;

 

17.  That the level of reserves as set out within the Executive report (2 February 2017) and the robustness of budget estimates be noted.  (NB. this is a requirement of Part 2 of the Local Government Act 2003);

 

18.  That delegated authority be given to the Finance Community Of Practice Lead (Section 151 Officer), in consultation with the Leader of the Council, to update the budget if there are any changes to the Government Finance Settlement when the final announcement is made;

 

19.  That the Capital Programme Proposals for 2017/18 (totalling £2,415,000) be approved;

 

20.  That, following the Budget scouring exercise, the 2016/17 capital projects be removed from the Capital Programme (amounting to £295,000);

 

21.  That the remaining Capital Programme contingency from the 2015/16 and 2016/17 programmes, totalling £167,000, be used to meet the increased costs detailed in Exempt Appendix D of agenda item 7: Capital Programme Budget Proposals report for 2017/18 (Executive agenda 2 February 2017 refers);

 

22.  That the 2017/18 Capital Programme of £2,415,000 be financed from the funding sources as set out in Section 4 of Item 7: Capital Programme Budget Proposals report for 2017/18 (Executive agenda 2 February 2017 refers); and

 

23.  That a letter be sent to the Prime Minister that includes the following text:

 

‘Dear Prime Minister,

 

South Hams District Council’s Settlement Funding Assessment (Revenue Support Grant and Business Rates) will be reduced by 39.3% over the four years of the finance settlement for 2016/17 to 2019/20.  The Council’s Revenue Support Grant is reduced to zero by 2018.

 

Central Government, prior to your election as our Prime Minister, decreed that Revenue Support Grants will be phased out by 2020.  Despite the current reduction, in 2016 South Hams District Council received an excellent Audit Committee report from External Auditors KPMG (appointed by the National Audit Commission) which complimented South Hams District Council on its ‘economy, efficiency and effectiveness’ on behalf of our Council Taxpayers.

 

Therefore, will you, as our newly elected Prime Minister, who recently stated so laudably that one of your first priorities will be “care and welfare of our people” be prepared to lead the Government in a change in policy for reductions in Revenue Support Grants to local councils.’