Agenda item

62/17           

The Council considered a report that provided an update of the overall financial position and detailed the formal proposals of the Executive to achieve a balanced Budget.

In his introduction, the Leader of Council particularly highlighted that:

-         the Council would not be in receipt of any Revenue Support Grant in 2018/19 and would also see a reduction of up to 50% in its New Homes Bonus.  As a consequence, he was particularly keen on the Council investigating potential new income streams;

-         new employment units had recently been constructed in Dartmouth and Totnes;

-         he had recently attended the annual conference of the District Council Network.  Following this conference, the Leader was convinced that the time had come for the Council to start to build housing.  It was therefore his intention to ask officers to work up a report that presented an in-depth review into the merits of building Council housing;

-         there was a need to look at the provision of public conveniences in a more sustainable way;

-         the additional Business Rates funding.  The Leader reminded the Council that the amount of additional funding received was reliant upon continued business growth in Devon; and

-         it was his belief that the Council maintained strong financial management.

 

Upon the conclusion of the introduction, the Chairman invited questions from Members, during which the following issues were raised:-

-         A Member sought clarification around the recommendations to transfer monies into Reserves with the purposes of ‘creating local jobs and better supporting the local economy’ and ‘towards economic regeneration projects’.  In reply, the Leader informed that items would be brought forward over the next twelve months and all Members were therefore urged to closely monitor the Executive Forward Plan;

-         With regard to recent correspondence relating to the proposal to impose a ‘pay on entry’ charge at the Steamer Quay, Totnes, the Leader confirmed that further work was required.  As part of this further work, assurances were given that consultation would be undertaken with relevant tenants, stakeholders and local Ward Members;

 

In accordance with Budget and Policy Framework Procedure Rule 7(j), an amended Budget had been received and was PROPOSED and SECONDED as follows:

 

       ‘It is RECOMMENDED to Council that:-

 

1.       internal borrowings up to £3 million be used to fund the leisure investment saving £55,000;

2.       £1.5 million be invested long-term in the CCLA, upfront costs to be covered by the £103,000 underspend in the 2017/18 Budget, generating £65,000 income from 2019/20;

3.       the Senior Leadership Team be reorganised (thereby saving £70,000);

4.       funding to the LEP be ceased (thereby saving £5,000);

5.       car parking charges in our market towns be reduced by 10% costing £175,000, with a target to reduce charges by 50% by 2022/23.  £45,000 shortfall to be covered from the Economic Regeneration Projects reserve for 2018/19;

6.       the closure of public toilets be stopped (costing £90,000 from 2019/20 and £180,000 from 2020/21);

7.       the Community Investment Fund of £150,000 be reinstated and funded by using £100,000 from the Play Parks Capital Programme, £25,000 from the New Homes Bonus and £25,000 from the Economic Regeneration Projects;

8.       a more thorough introduction of charging for domestic properties that have switched to business rates be explored;

9.       the immediate and systematic transfer of assets (including car parks) but not liabilities (public toilets) to the relevant Town or Parish Council be started.  (NB. these can be leased back to the Council at a peppercorn rent);

10.    a housing trust/company be set up to act as a vehicle to deliver genuinely affordable and social housing for young working families;

11.    investment from reserves in incubator and start up business units and the delivery of genuinely affordable housing based on the average local wage be accelerated;

12.    work be undertaken with Devon County Council and other Devon District Councils to harmonise rubbish collection and car parking enforcement (on and off-street);

13.    it joins with North Yorkshire Councils to lobby government for local councils to charge 200% or more Council Tax on Second and Holiday Homes;

14.    it invests in Commercial Property in our Market Towns.

 

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.  It shows our trust and confidence in local Parish and Town Councils believing they are best placed to deliver for their local communities.’ 

 

       The proposer and seconder of the amendment introduced it to the meeting and highlighted that:-

 

(a)        they considered the Budget recommendations made by the Executive to be uninspiring.  In contrast, they felt that their amendment contained imaginative ideas that would be beneficial to residents of the district;

(ii)     investment in Commercial Property opportunities would be restricted to the South Hams;

(iii)    they were supportive of the Leader’s comments relating to the building of Council houses;

(iv)    there had been very few ‘invest to earn’ concepts or ideas to date that had been presented for consideration;

(v)     these proposals presented a real opportunity to support local businesses and market towns and would help residents to drive economic growth.

 

       Following this introduction, a Member asked for his disappointment at the general lack of debate into these alternative budgetary proposals to be noted.

 

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

 

For the motion (6):          Cllrs Baldry, Birch, Brazil, Hodgson, Huntley and Vint

 

Against the motion (23):  Cllrs Bastone, Blackler, Bramble, Brown, Cane, Foss, Gilbert, Hawkins, Hicks, Hitchins, Holway, Hopwood, May, Pearce, Pennington, Pringle, Rowe, Saltern, Smerdon, Steer, Tucker, Wingate and Wright

 

Abstentions (1):               Cllr Green

 

Absent (1):                      Cllr Cuthbert

 

and the vote on the amendment was therefore declared LOST.

 

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).  The voting on this part was recorded as follows:-

 

 

For the motion (29):        Cllrs Baldry, Bastone, Birch, Blackler, Bramble, Brazil, Brown, Cane, Foss, Gilbert, Green, Hawkins, Hicks, Hitchins, Hodgson, Holway, Hopwood, May, Pearce, Pennington, Pringle, Rowe, Saltern, Smerdon, Steer, Tucker, Vint, Wingate and Wright.

 

Against the motion (0):    

 

Abstentions (0):              

 

Absent (2):                      Cllrs Cuthbert and Huntley.

 

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 part 16 of the motion.  The voting on this part was recorded as follows:-

 

For the motion (23):        Cllrs Bastone, Blackler, Bramble, Brown, Cane, Foss, Gilbert, Hawkins, Hicks, Hitchins, Holway, Hopwood, May, Pearce, Pennington, Pringle, Rowe, Saltern, Smerdon, Steer, Tucker, Wingate and Wright.

 

Against the motion (6):    Cllrs Baldry, Birch, Brazil, Hodgson, Huntley and Vint

 

Abstentions (1):              Cllr Green

 

Absent (1):                     Cllr Cuthbert

 

and the vote on part 16 of the motion was therefore declared CARRIED.

 

In discussion on the remaining parts of the recommendation, reference was made to:-

 

(a)    public conveniences.  In light of the wording of the Executive Budget report, some Members were unable to support the recommendations relating to the public conveniences.  Of particular concern to those Members was the inference that, if a transfer could not be negotiated and/or agreed, then a public convenience would automatically close.  In reply, other Members gave an assurance that, in the event of any unforeseen issues coming to light, then these would be presented back to the Executive for further consideration.  Despite these assurances, some Members still felt that the published Executive report did not include any provision for such flexibility in approach and they were therefore unwilling to support these recommendations as drafted;

 

(b)    the proposal to cease accepting cash and cheques at Council premises (excluding Car Parks).  A Member repeated his previously raised objections to this proposed saving;

 

 

(c)    withdrawal of the Community Reinvestment Projects Fund.  Since previous assurances had been made that Section 106 monies could be used for similar purposes to this Fund, it was requested that a report be presented to a future Overview and Scrutiny Panel meeting outlining how this alternative process would operate;

 

(d)    future budget reports.  In response to some concerns over the method in which the budget reports were presented (and subsequently voted on), the Leader confirmed that he would review the process in time for the budget setting process next year.

 

In line with statutory requirements, a recorded vote was then undertaken on parts 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 17, 18, 19, 20, 21, 22, 23 and 24 of the motion.  The voting on these parts was recorded as follows:-

 

For the motion (23):        Cllrs Bastone, Blackler, Bramble, Brown, Cane, Foss, Gilbert, Hawkins, Hicks, Hitchins, Holway, Hopwood, May, Pearce, Pennington, Pringle, Rowe, Saltern, Smerdon, Steer, Tucker, Wingate and Wright.

 

Against the motion (7):    Cllrs Baldry, Birch, Brazil, Green, Hodgson, Huntley and Vint.

 

Abstentions (0):              

 

Absent (1):                      Cllr Cuthbert

 

             It was then:

 

RESOLVED

 

1.       That Council Tax is increased by £5 (which equates to a Band D council tax of £160.42 for 2018/19, an increase of £5 per year or 10 pence per week). This equates to a Council Tax Requirement of £6,072,207;

 

2.       That the financial pressures in Appendix B of the presented agenda report (amounting to £895,700) 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 £689,350) be agreed;

 

5.       That the budget proposals for Public Conveniences (as set out in paragraphs 6.11, 6.23 and 6.24 of the Revenue Budget report to the Executive on 1 February 2018) be approved.  (NB. This requires a decision as part of the 2018/19 Budget process, due to the implementation timescales);

 

6.       That the Collection Fund Surplus of £73,000 (as shown in Appendix B of the presented agenda report) be agreed;

 

7.       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. (NB. This includes using £641,084 of New Homes Bonus funding to fund the 2018-19 Revenue Budget and a contribution of £475,000 into an Economic Regeneration Projects Earmarked Reserve);

 

8.       That the Community Reinvestment Projects budget of £153,900 be withdrawn in 2018/19 onwards.  (NB. This was previously funded by New Homes Bonus funding as set out in Appendix E of the Revenue Budget report presented to the Executive meeting on 1 February 2018);

 

9.       That Delegated Authority be granted to the Section 151 Officer, in consultation with the Leader of Council and lead Executive Member for Support Services, to agree the final amount of New Homes Bonus funding for the Dartmoor National Park Sustainable Community Fund for 2018/19;

 

10.    That £3.5 million be ringfenced from the Business Rates Retention Earmarked Reserve for employment for the creation of local jobs and to better support the local economy (as per Appendix D of the Revenue Budget report presented to the Executive meeting on 1 February 2018);

 

11.    That the Council Tax Support Grant paid to Town and Parish Councils be reduced by 9.85% for 2018/19 (as per Appendix A of the presented agenda report).  (NB. this equates to a payment of £82,615 for 2018/19);

 

12.    That the Council sets its total net expenditure for 2018/19 as £8,983,194 (as shown in Appendix B of the presented agenda report);

 

13.    That the minimum level of the Unearmarked Revenue Reserves be maintained at £1,500,000 (as per Section 9 of the Revenue Budget report presented to the Executive on 1 February 2018);

 

14.    That the level of reserves (as set out within the presented agenda report to the Executive on 1 February 2018) 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);

 

15.    That the proposed fees and charges set out for Parks, Open Spaces and Outdoor Sports (as outlined in the report presented to the Joint Development Management Committee and Overview and Scrutiny Panel meeting held on 18 January 2018) be approved;

 

16.    That the proposed Environmental Health Charges (as outlined in the report presented to the Joint Development Management Committee and Overview and Scrutiny Panel meeting held on 18 January 2018) be approved;

 

17.    That the proposed Fees and Charges for Development Management (as set out in Appendix C of the report presented to the Joint Development Management Committee and Overview and Scrutiny Panel meeting held on 18 January 2018) be approved;

 

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

 

19.    That an overall percentage increase of 2% to car park charges be approved, with responsibility for implementing this increase being delegated to the Group Manager for Commercial Services, in consultation with the lead Executive Member, following consultation with representative bodies (including town and parish councils).  In addition, approval also be given to the withdrawal of weekly parking tickets;

 

20.    That delegated authority be given to the Group Manager for Commercial Services, in consultation with the lead Executive Member, to set the Commercial Waste Charges, once all the price modelling factors are known;

 

21.    That delegated authority be given to the Group Manager for Commercial Services, in consultation with the lead Executive Member, to set the Public Conveniences ‘Pay on Entry’ charges (which should not exceed 20 pence), following completion of works and a review of appropriate charges;

 

22.    That the changes to Boat Storage Charges (as set out in paragraph 3.7 of the report presented to the Joint Development Management Committee and Overview and Scrutiny Panel meeting held on 18 January 2018) be approved;

 

23.    That the Capital Programme Proposals for 2018/19 (totalling £2,555,000) be approved; and

 

24.    That the 2018/19 Capital Programme of £2,555,000 be financed from the funding sources (as set out in Section 4 of the Capital Programme Budget Proposals report that was presented to the Executive meeting on 1 February 2018).