Agenda item

Reports of the Cabinet

To consider the attached reports of the Cabinet:

(a) Capital Strategy;

(b) Key Objectives;

(d) Budgets and Council Tax Declaration - 2012/13.

Minutes:

(a) Capital Strategy

Mover: Councillor Mohindra, Finance and Economic Development Portfolio Holder

Councillor Mohindra reported that this year the Capital Strategy had focussed on current capital schemes and investment plans to 2015/16. It also had indentified partnership arrangements with other councils and organisations, which aimed to enhance the Capital Programme, and set out funding approved to date, having regard to forecast income generation. Councillor Mohindra also reported that the Cabinet had reassessed the Key Priorities and had reviewed the ranking of each priority in order of strategic importance for the district, having regard to the contribution that each one made to the achievement of relevant corporate aims.

Report as first moved ADOPTED

RESOLVED:

That the Capital Strategy attached to the report of the Cabinet be approved.

(b) Key Objectives 2012/13

Mover: Councillor Wagland, Leader and Legal Portfolio Holder

Councillor Wagland submitted a report on the Council’s Key Objectives for each of the four years to 2014/15. She pointed out that the Key Objectives had also been considered and agreed at a joint Cabinet and Management Board meeting and by the Overview and Scrutiny Committee. The Council noted that once adopted, the Key Objectives would be published on the Council’s website as an update to the Corporate Plan 2011/12 – 2014/15.

Report as first moved ADOPTED

RESOLVED:

That the Key Objectives for 2012/13 attached to the report of the Cabinet be agreed.

Mover: Councillor Mohindra, Finance and Economic Development Portfolio Holder

Councillor Mohindra submitted a report on the Council’s Treasury and Investment Strategy and Prudential Indicators.

Councillor Watts, Chairman of the Audit and Governance Committee advised that the documents had been considered at a meeting of that Committee on 9 February 2012 and the recommendations of the Cabinet had been supported. However, concern had been expressed that the Government appeared to have reserved the right to come back for another tranche in relation to the payment regime for the building of houses.

Councillor Mohindra acknowledged that the Government had reserved this right and pointed out that in discussion with officers it had been agreed that it would be very difficult if this aspect was to be revisited. Councillor Mohindra thanked Councillor Watts and the Audit and Governance Committee for their support.

Report as first moved ADOPTED

RESOLVED:

(1) That the following documents attached to the report of the Cabinet be adopted:

(a) Treasury Management Strategy Statement and Annual Investment Strategy 2012/13 to 2014/15;

(b) Minimum Revenue Provision (MRP) Statement;

(d) Treasury Management Policy Statement; and

(2) That the use of the average interest earned for the year on the Council’s investments as the rate of interest to be applied to any inter-fund borrowing between the General Fund and the Housing Revenue Account be approved.

(d) Budgets and Council Tax Declaration 2012/13

Mover: Councillor Mohindra, Finance and Economic Development Portfolio Holder

The Portfolio Holder submitted a report regarding Budgets and Council Tax Declaration for 2012/13.

Councillor Mohindra referred to the budget process which had included detailed consideration at a joint meeting of the Finance and Performance Management Cabinet Committee and the Finance and Performance Management Scrutiny Panel. In the light of that detailed consideration he advised that he did not intend to speak in detail on the various items within the budget.

He pointed out that the Localism Act 2011 had made provision for Council Tax referendums to be held if an authority increased its Council Tax by an amount exceeding principles determined by the Secretary of State and agreed by Parliament. He drew attention to the tabled supplementary report which indicated that the proposed amount of Council Tax being unchanged from 2011/12 was not excessive and therefore there was no need to hold a local referendum.

Councillor Mohindra reported that the Cabinet had given detailed consideration to the proposed rent increase at its meeting in December and that the proposed average increase of 6% was the lowest possible. The Portfolio Holder drew attention to the section of the Cabinet report regarding the self financing for the Housing Revenue Account. He also drew attention to the section regarding the New Homes Bonus.

Councillor Mohindra reported that the Cabinet was proposing that the Council’s policy of retaining revenue balances at no lower than £4,000,0000 or 25% of the net budget requirement whichever was the higher for the four year period to 2014/15 be amended to no lower than £4,000,000 or 25% of the net budget requirement whichever was the higher during the four year period up to and including 2015/16.

The Portfolio Holder drew attention to the section of the report regarding the localisation of Council Tax Benefit and emphasised the challenges this would present to the Council.

In summary Councillor Mohindra advised that whilst the Council was making good progress in relation to its finances there was still much work to be done in future years and there would be a need to take difficult decisions.

The Portfolio Holder expressed his thanks to fellow Portfolio Holders and Officers for their input into the proposals before the Council.

The Chairman pointed out that in discussing this item members needed to be aware that the proposals of the Cabinet had assumed that the recommendations in item 17 (Report of the Cabinet – Supplementary Estimate and Reduced Capital Receipt – North Weald Airfield Market Operator - Private Session) to be considered later in the meeting would be adopted.

Councillor Mohindra answered questions raised by members of the Council.

Report as first moved ADOPTED

RESOLVED:

(1) That the list of CSB growth and savings for the 2012/13 budget (set out in Annex 1 attached) be approved;

(2) That the list of District Development Fund items for the 2012/13 budget (set out in Annex 2 attached) be approved;

(3) That the revenue estimates for 2012/13 and the draft Capital Programme for 2012/13 be approved as set out in Annexes 3, 4 (a-i) and 5 attached including all contributions to and from reserves as set out in the attached Annexes;

(4) That the medium term financial forecast be approved as set out in Annexes 8 a and 8 b attached;

(5) That the 2012/13 HRA budget be approved and that the application of rent increases and decreases resulting in an average increase of 6.0% from £82.19 to £87.15, be approved;

(6) That the Council's policy of retaining revenue balances at no lower than £4.0M or 25% of the net budget requirement whichever is the higher for the four year period to 2014/15 be amended to no lower than £4.0M or 25% of the net budget requirement whichever is the higher during the four year period up to and including 2015/16;

(7) That the report of the Chief Financial Officer on the robustness of the estimates for the purposes of the Council’s 2012/13 budgets and the adequacy of the reserves (Annex 9 attached) be noted;

Declaration of Council Tax

(8) That it be noted that on 2 December 2011, the Finance and Economic Development Portfolio Holder in consultation with the Chairman of the Overview and Scrutiny Committee calculated the Council Tax Base 2012/13:

(a) for the whole Council area as 54,900.8 (Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended); and

(b) for dwellings in those parts of its area to which a Parish precept relates as set out below and in Annex 6 attached

Tax Base

Abbess, Beauchamp & Berners Roding 212.9

Buckhurst Hill 5,311.4

Chigwell 5,996.9

Epping Town 5,179. 1

Epping Upland 416.1

Fyfield 421.2

High Ongar 576.0

Lambourne 931.1

Loughton Town 13,077.4

Matching 446.4

Moreton, Bobbingworth and The Lavers 572.4

Nazeing 2,108.6

North Weald Bassett 2,646.4

Ongar 2,782.6

Roydon 1,322.7

Sheering 1,361.9

Stanford Rivers 359.0

Stapleford Abbotts 518.2

Stapleford Tawney 74.6

Theydon Bois 2,019.4

Theydon Garnon 67.4

Theydon Mount 112.0

Waltham Abbey Town 8,140.0

Willingale 247.1

(9) That the following amounts be calculated for the year 2012/13 in accordance with sections 31 to 36 of the Local Government Finance Act 1992:

(a) £130,286,737 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils;

(b) £118,952,358 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act;

(c) £11,334,379 being the amount by which the aggregate at 9 (a) above exceeds the aggregate at 9 (b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act);

(d) £206.45 being the amount at 9 (c) above (Item R), all divided by Item T (the amount at 8 (a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts);

(e) £3,166,787 being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the attached Annex 6);

(f) £148.77 being the amount at 9 (d) above less the result given by dividing the amount at 9 (e) above by Item T (8 (a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

(10) That it be noted that the County Council, the Police Authority and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each of the category of dwellings in the Council’s area as shown in Annex 7 (attached);

(11) That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts in Annex 7 Part B (attached) as the amounts of Council Tax for 2012/13 for each part of its area and for each of the categories of dwellings;

(12) That in accordance with Section 52ZB of the Local Government Finance Act 1992, the Council determines that the amount of Council Tax shown at (9)(f) of £148.77 for 2012/13, being unchanged from 2011/12 is not excessive and therefore there is no need to hold a local referendum.

Supporting documents: