Agenda item

Draft Revenue and Capital Budget Proposals for 2023/24

Minutes:

E.69/22                 

The Executive was presented with a report that outlined a series of draft revenue and capital budget proposals for 2023/24.

 

In discussion, the following points were raised:

 

a)     Members stated that they were aware of the current financial pressures that South Hams’ residents were facing but due to the Governments’ assumptions on core spending power (as described at paragraph 3.5 of the presented agenda report), then they considered there to be no alternative but to increase Council Tax for the forthcoming year;

 

b)     There was widespread support expressed for the Council’s intention to impose a 100% Council Tax rate on second homes in the district;

 

c)      In response to a question, it was confirmed that, from an initial budget of £93,000, £21,000 of the Members’ Climate Change Locality Fund remained unspent to date. It was further confirmed that any remaining balance would be rolled forward into the new Council term starting in May 2023;

 

d)     The Leader highlighted the two additional recommendations that had been generated by the Budget Advisory Committee at its meeting held on 19 January 2023 (Minute BA.4/22 refers) concerning the cessation of charging for the use of Council owned public conveniences and the addition of a further tree officer post to the Council’s staffing complement. 

 

Having reflected on these since that meeting, the Leader expressed her support for the recommendation relating to public conveniences and advised that, coincidentally, a recruitment process for the employment of a new Aboricultural Officer had commenced on the day of the Budget Advisory Committee.  As a consequence, the Leader PROPOSED the following two additional recommendations:

 

That the Executive RECOMMEND to Council:

 

1.       That the Council no longer imposes a charge to use Council owned public conveniences in the South Hams; and

 

2.       To note that the Council is currently advertising for a new Aboricultural Officer post and that all Members be sent a copy of the role profile.

 

These were subsequently SECONDED and, when put to the vote, both were declared CARRIED.

 

It was then:

 

RESOLVED

 

1. That the Executive RECOMMENDS to Council:-

 

i)       To increase Council Tax for 2023/24 by £5 (Band D of £185.42 for 2023/24 – an increase of less than 10 pence per week or £5 per year – equates to a 2.77% increase);

 

ii)      The financial pressures shown in Appendix A of £4,107,700;

 

iii)     The net contributions to/(from) Earmarked Reserves of £412,000) as shown in Appendix D of the presented report, including the proposed use of £500,000 of New Homes Bonus funding to fund the 2023/24 Revenue Budget as set out in 3.23 of the report and £400,000 from the Business Rates Retention Earmarked Reserve as set out in 3.17 of the report;

 

iv)     The savings/additional income of £2,422,000 as shown in Appendix A; and

 

v)      The recommendation of the s151 Officer to agree to take up the ‘stepped pension contribution rates’ being offered by the actuaries of the Devon Pension Fund, following the results of the Triennial Pension Revaluation (at paragraph 3.24 of the presented report).

 

vi)     That the Council should set its total net expenditure for 2023/24 as shown in Appendix B of the presented report as £11,738,067.

 

vii)    The proposed Capital Programme Proposals for 2023/24 of £2,035,000 and the proposed financing of the Capital Programme as set out in Appendix E of the presented report.

 

viii)   That Unearmarked Reserves should continue to have a minimum level of £1.5million (as set in the Medium Term Financial Strategy in September 2022), but an operating level of a minimum of £2million.

 

ix)     That the Council no longer imposes a charge to use Council owned public conveniences in the South Hams.

 

x)      That the level of reserves as set out within this report and the assessment of their adequacy and the robustness of budget estimates are noted. This is a requirement of Part 2 of the Local Government Act 2003.

 

2.      it be noted that a further formal Resolution would be considered at Full Council at its meeting on 16 February 2023, regarding charging second homeowners a 100% premium on council tax when the Levelling Up and Regeneration Bill was enacted.

 

3.      To note that the Council is currently advertising for a new Aboricultural Officer post and that all Members be sent a copy of the role profile.

 

Supporting documents: