Agenda item

The Director for Corporate Services to submit a report which

 

(a)  provides information on the budget issues facing the Council in 2018/19 and beyond, and seeks a decision on the level of the budget including growth and savings and agree the level of Council Tax for Borough Council purposes; and

 

(b)  asks the Council  to ‘make’ a Member Allowances Scheme for each year that the scheme relates and review its scheme for the forthcoming Civic Year 2018/19.

Previously circulated with the agenda was a report prepared by the Director for Corporate Services which provided information on the budget issues facing the Council in 2018/19 and beyond, sought a decision on the level of the budget including growth and savings, and asked the Council to agree the level of Council Tax for the Borough Council purposes.  The report also included the proposed Member Allowances Scheme for the forthcoming Civic Year 2018/19.

 

A replacement Appendix A which set out the proposals for General Expenses and Special Expenses Melton Mowbray was circulated at the meeting.

 

The Leader presented the report and moved the recommendations as contained in the Order Paper.  In so doing, he made the following points:

 

(a)       the Council had suffered significant cuts in central government funding and awaited the outcome of the fair funding review as to whether this would direct resources to sparse rural areas such as Melton Borough that continued to be underfunded compared to rural areas;

 

(b)       despite the cuts in funding, the Council had managed its finances well and for this the officers were to be congratulated.  However, for 2018/19 there was a need to draw on the spending pressure and corporate priorities reserve after allowing for the proposed savings and growth.  The Council had developed a budget management strategy which saw the Council move to a balanced budget over the life of the MTFS even with the modest assumptions built into this;

 

(c)        the waste contract was yet to be awarded but this was likely to provide further significant savings from the full year impact;

 

(d)       the Member Allowance Scheme was part of the report and drew Members’ attention to the requirement that all Members were required to be registered with the Information Commissioner’s Office under the Data Protection Act which incurred a fee;

 

 

(e)       there were a number of risks:  the funding of the Distributor Road was not built into the MTFS, the withdrawal of funds for Wheels to Work scheme, and the present uncertainty over the funding for the Children’s Centres.  Taking this into account, the proposed rise in Council Tax was for  2.99% representing an increase of 1p per day on a Band D property.  Savings of £165K were identified in 2018/19 with a further £15K from charging parish councils for elections in 2019/20, a net growth of £83,860 and the balance of £173K from reserves;

 

(f)        the risks to the budget had been highlighted by the Peer Challenge group who had recommended that the Council puts in place a ‘Plan B’ should such savings not arise or there were any further reductions in funding. Members were informed that such a Plan B was now being considered with some urgency.

After a Member had sought and received clarification on the proposed percentage increase in Council Tax for Melton Borough, the Deputy Leader seconded the motion welcoming the news regarding the rural services delivery grant of £36K which had followed pressure from SPARSE.

 

The Deputy Mayor invited debate from the floor.  A Member referred to Appendix F (budget management strategy) which included the recharging of the elections costs to parish councils in 2019/20 and expressed both his concern and opposition to the proposal.  He also queried on what basis the costs would be recharged.  The Leader responded by stating this had been considered by the policy committees and at the budget away day and would realise savings of £15K.  Melton was the only district in the county that presently did not recharge for the cost of parish elections.  As over half the area was urban this meant that those residents contributed towards these parish costs.  The proposed recharge was not due to come into effect until the following year which would enable parishes to precept for this expense.  The recharge basis would be proportionate to the size of the parish.

 

A debate then ensued during which views for and against the principle of the proposed recharge to parishes were expressed.  A Member queried whether the parishes had been consulted.  The Director for Corporate Services pointed out that the proposed recharge was for 2019/20 thereby enabling sufficient time for discussion with the parishes and for them to include the cost within their precepts for that year.  A concern was raised that the consultation with parishes should have preceded the proposal being brought forward as part of the budget recommendations at this stage.

 

Arising from the concern over the parish election recharge for 2019/20, Councillor Graham proposed as an amendment that this item be withdrawn and brought back for reconsideration.  The amendment was seconded by Councillor Holmes.

 

Concern was then expressed about the impact of withdrawing this element from the budget proposals before Members and procedural advice was sought from the Chief Executive.  A Member moved that the amendment be put which was seconded; the Deputy Mayor asked the Chief Executive to clarify the amendment on which a vote would now be taken.  Following a vote, the amendment was lost.

 

[Councillor Holmes left the meeting at this point]

 

As mover of the original motion, the Leader summed up and reiterated his view that he had always felt it unfair that the town’s residents should pay towards parish elections.  Councillor Graham, as mover of the defeated amendment, requested that the recorded vote on the budget as required by the Constitution, be taken separately on those elements of the budget recommendations which were impacted by the parish council election recharge.  The Leader accepted the request for separate votes and in accordance with Council Procedure Rule 15.5(b), the vote on the parts (1), and (4) to (8) inclusive  was taken first by a recorded vote.

 

Councillor	For	Against	Abstain	Absent
Baguley	√
Bains				√
Beaken	√
Blase	√
Botterill			√
Chandler	√
Cumbers	√
De Burle	√
Douglas	√
Faulkner	√
Freer-Jones	√
Glancy	√
Graham	√
Greenow				√
Higgins	√
Holmes				√
Hurrell	√
Hutchison	√
Illingworth	√
Lumley	√
Orson	√
Pearson	√
Posnett	√
Rhodes	√
Sheldon				√
Simpson	√
Wright	√
Wyatt	√
Totals	23	0	1	4

 

 

A further recorded vote was then taken on parts (2) and (3) of the motion.

 

Councillor	For	Against	Abstain	Absent
Baguley			√
Bains				√
Beaken	√
Blase	√
Botterill			√
Chandler	√
Cumbers	√
De Burle	√
Douglas	√
Faulkner	√
Freer-Jones	√
Glancy	√
Graham			√
Greenow				√
Higgins	√
Holmes				√
Hurrell	√
Hutchison	√
Illingworth	√
Lumley	√
Orson	√
Pearson	√
Posnett	√
Rhodes	√
Sheldon				√
Simpson	√
Wright	√
Wyatt	√
Totals	21	0	3	4

 

The original motion as put was therefore carried, and accordingly it was

 

 

RESOLVED: that

 

(1)       any increase or shortfall against the target working balance on General Expenses at 31 March 2018 be adjusted by transfers to/from the Corporate Priorities Reserve and for Special Expenses Melton Mowbray any surplus/deficit be transferred to/from the Special Expenses Reserve (paras 3.4.2, 3.4.4 and 3.5.4 of the report refer);

 

(2)       the proposals for General Expenses and Special Expenses MM  as set out in Appendix A (as amended) be approved for inclusion in the 2018/19 budget resulting in the estimates set out in Appendix B;

 

(3)       the revenue budget for 2018/19 for General and Special Expenses as set out in Appendix B be approved resulting in an overall council tax increase of 2.99%, the individual council tax levels being as set out in para 3.5.5 of the report;

 

(4)       that delegated authority be given to the Director for Corporate Services to amend the estimates to account for any changes to the final Formula Funding amount over the provisional figure by adjusting the contribution to/from the Reserves as appropriate;

 

(5)       that delegated authority be given to the Director for Corporate Services to amend the estimates to account for any changes arising from the decisions taken regarding the Wheels to Work service by the Community and Social Affairs Committee when it meets to consider the reconfigured scheme by adjusting the contribution to/from the Corporate Priorities Reserve as appropriate;

 

(6)        to note the changes made to the risk categorisation of budgets as set out in para 3.6.3 of the report and at Appendix E;

 

(7)       that the New Homes Bonus Reserve be closed down and the balance       transferred to the Corporate Priorities Reserve.

 

(8)       to approve that the Member Allowances Scheme as set out at Appendix I commence in the Civic Year 2018/19.