Agenda item

To consider a report – to follow.

Mover:  Councillor Stavrou, Finance and Technology Portfolio Holder

 

Councillor Stavrou thanked Mr R Palmer and Mr P Maddock and other officers in the Finance and ICT Directorate in interpreting and incorporating a raft of legislative changes which had emerged in the build-up to the draft budget.

 

The Portfolio Holder apologised for the delay in issuing the report to this meeting but stated that changes to the Localisation of Council Tax with the reduction in Tax Bases and the allocation of grants had caused a degree of confusion for a small number of Town and Parish Councils.  She pointed out that as the Council Tax Declaration included the total for Parish precepts the report could not be issued until all of the Parish precepts had been received.  She expressed the hope that as the main report had been issued a week in advance all members would have had the opportunity to consider it.

 

The Portfolio Holder sought leave of the Council to move the following amendment to recommendation 5 of the report to the Cabinet:

 

“Recommendation 5 to be renumbered 5(a) and the following to be added:

 

(5)(b) That a new Housing Revenue Account (HRA) usable reserve called the Self?Financing Reserve be set up in the current financial year (2012/13) with the intention of setting aside resources to repay the Council’s variable rate loan due to be repaid in March 2022;  and

 

(5)(c) That although this reserve be set aside for the purpose stated this does not preclude a future meeting of the Council resolving to use part of the reserve for another HRA purpose if necessary”.

 

Councillor Bassett seconded the amendment.

 

Councillor Stavrou referred to the lengthy and robust process which had been adopted in considering the draft budget.  She stated that the detailed growth lists had been considered by both the Finance and Performance Management Scrutiny Panel and the Finance and Performance Management Cabinet Committee as well as the Cabinet itself.  In addition a joint meeting of the Cabinet Committee and the Scrutiny Panel had received the detailed Directorate budgets and at that meeting members had been given an opportunity to question the Directors and the Portfolio Holders.

 

Councillor Stavrou stated that at the joint Cabinet Committee and Scrutiny Panel meeting concerns had been expressed about how much the amount of reserves exceeded the Council’s minimum requirement.  She stated that given the economy was on the brink of a triple dip recession and that the Reform to Non?Domestic Rates and Council Tax Benefit had transferred considerable financial risk from Central Government to the Council, it was a good time to have substantial reserves.

 

Councillor Stavrou continued that the budget for 2013/14 had always been a matter of consolidation in view of the numerous current uncertainties.  She stated that as the Council’s grant figure had not been provided until late December and the mechanics behind Non-Domestic Rates were still emerging it would not have been prudent to plan for expansion or new initiatives at this time.  She advised that the Cabinet had ideas and proposals for the future but more certainty was required before these could be pursued.

 

The Portfolio Holder stated that the Cabinet wished to see Economic Development taken forward.  She stated that members would be aware that the Council would benefit from increases in the Non-Domestic Rate List and this would be an important consideration of the Council’s finances in future.  She advised that it was also important to invest in the economic development to help the business community and residents.  She advised that the proposed budget included an additional £35,000 support for the District’s Town Centres and that as part of the initiative a Town Team Task Force was being established to lead on Town Centre matters.  Councillor Stavrou emphasised that investment in economic development would not be achieved through increases in Council Tax and the intention of the Cabinet was for this Council to remain a low Council Tax authority for the long term. 

 

In addition to no increase in the District Council Tax she pointed out that there were no proposed cuts to front line services and no increases to car parking charges.

 

Councillor Watts on behalf of all Town and Parish Councils expressed his thanks to the Portfolio Holder and to the officers for their work on the budget.  Group Leaders and other members thanked the Portfolio Holder and officers for their work and expressed support for the budget.

 

In response to comments, Councillor Stavrou assured members that the Cabinet had been mindful of the effects of welfare reform and residents would be directed to the assistance available.  She also confirmed that in setting the budget, account had been taken of the ability of Council Tax payers to spread payments over 12 months rather than the previous limitation of 10 months.

 

Amendment moved earlier in the debate by Councillor Stavrou and seconded by Councillor Bassett in relation to Recommendation 5 in the Report of the Cabinet was put to the meeting.

 

                                                                                                                          Carried

 

Report as amended ADOPTED

 

            RESOLVED:

 

(1)  That the list of CSB growth and savings for the 2013/14 budget (set out in Annex 1 attached) be approved;

 

(2)  That the list of District Development Fund items for the 2013/14 budget  (set out in Annex 2 attached) be approved;

 

(3)   That the revenue estimates for 2013/14 and the draft Capital Programme for 2013/14 be approved as set out in Annexes 3, 4 (a-i) and 5 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)(a)  That the 2013/14 HRA budget be approved and that the application of rent increases and decreases resulting in an average increase of 4.36% from £87.06 to £90.85, be approved;

           

            (5)(b)  That a new Housing Revenue Account (HRA) usable reserve called the Self Financing Reserve be set up in the current financial year (2012/13) with the intention of setting aside resources to repay the Council’s variable rate loan due to be repaid in March 2022;

 

(5)(c)    That although this reserve be set aside for the purpose stated this does not preclude a future meeting of the Council resolving to use part of the reserve for another HRA purpose if necessary;

 

(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 2015/16 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 2016/17;

 

(7)  That the report of the Chief Financial Officer on the robustness of the estimates for the purposes of the Council’s 2013/14 budgets and the adequacy of the reserves (see Annex 9 attached) be noted;

 

Declaration of Council Tax

 

(8)  That it be noted that on 10 January 2013, the Finance and Technology Portfolio Holder in consultation with the Chairman of the Overview and Scrutiny Committee calculated the Council Tax Base 2013/14:

 

(a)        for the whole Council area as 50,169.2 (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                                            202.1

Buckhurst Hill                                                                                  4,979.7

Chigwell                                                                                           5,673.6

Epping Town                                                                                   4,799.7

Epping Upland                                                                                   390.0

Fyfield                                                                                                407.6

High Ongar                                                                                        529.4

Lambourne                                                                                        820.1

Loughton Town                                                                            11,682.8

Matching                                                                                           409.8

Moreton, Bobbingworth and The Lavers                                           535.3

Nazeing                                                                                          1,960.3

North Weald Bassett                                                                      2,408.4

Ongar                                                                                             2,530.6

Roydon                                                                                           1,249.8

Sheering                                                                                         1,273.4

Stanford Rivers                                                                                  343.4

Stapleford Abbotts                                                                             492.8

Stapleford Tawney                                                                               74.4

Theydon Bois                                                                                  1,911.9

Theydon Garnon                                                                                  78.9

Theydon Mount                                                                                  105.8

Waltham Abbey Town                                                                     7,080.1

Willingale                                                                                            229.3

 

 

(9)   That the following amounts be calculated for the year 2013/14 in accordance with sections 31 to 36 of the Local Government Finance Act 1992:

 

(a)        £124,036,809 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)        £113,583,422 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act;

 

(c)        £10,453,387 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)        £208.36 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)        £2,989,715 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 and crime Commissioner 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 2013/14 for each part of its area and for each of the categories of dwellings; and

 

(12)    That in accordance with section 52ZB of the Local Government Finance Act 1992, Council determines that the amount of Council Tax shown at (9) (f) of £148.77 for 2013/14, being unchanged from 2012/13 is not excessive and therefore there is no need to hold a local referendum.