northlincs.gov.uk

Present

THE MAYOR – Councillor Smith

Councillors Ali, Armitage, Bainbridge, Barker, Barkworth, Berry, B Briggs, J Briggs, Bunyan, Carlile, Cawsey, Clark, Collinson, Davison, Eckhardt, Ellerby, England, L Foster, T Foster, Glover, Gosling, Grant, Jawaid, Kirk, O’Sullivan, Poole, Mrs Redfern, Regan, N Sherwood, Mrs Sidell, Mrs Simpson, Stewart, Swift, K Vickers, P Vickers, Waltham, Wardle, Wells, Whiteley and Wilson.

The council met at Pittwood House, Ashby Road, Scunthorpe.

1966 MAYOR’S REMARKS – The Mayor welcomed fellow councillors, officers and members of the public to the council’s budget meeting. The Mayor then asked everyone to pay their respects to a former colleague and former councillor Betty Martin who had died recently. Betty had served this council and the former Scunthorpe Borough Council with great distinction and her death was a great loss to everyone who knew her. The council’s thoughts were with Betty’s family and friends at this sad time. Everyone then observed a minute’s silence to pay their respects.

1967 DECLARATIONS OF PERSONAL OR PERSONAL AND PREJUDICIAL INTERESTS – Declarations of personal interest were indicated as follows.

1968 (21) FINANCIAL STRATEGY – 2011/2015, REVENUE BUDGET 2011/2012 AND FINANCIAL PLAN 2011/2015, CAPITAL PROGRAMME 2010/2015 AND TREASURY MANAGEMENT AND STRATEGY REPORT 2011/2012 – The Service Director Finance submitted reports relating to –

• The Financial Strategy 2011/2015
• The Revenue Budget 2011/2012 and Financial Plan 2011/2015
• Capital Programme 2010/2015
• The Treasury Management and Strategy Report 2011/2012.

Each year the council decides it spending plans for the next financial year. This starts in April and the plans include –

• A revenue budget to cover the day to day running costs of council services.
• A capital programme of investment in buildings and infrastructure.
• A Treasury Management and Investment Strategy which says how it will invest its cash, borrow for investment in assets or to help its cash flow, and manage its debt.

Each of these issues was dealt with by a separate report. The budget is part of a long-term financial strategy because the council needs to be sure its spending on services is sustainable. It must also ensure that its resources are deployed in the most effective way to deliver improved public services and to do so with increased efficiency. The paper on the long-term financial strategy considered some key issues and their implications namely –

• The Government’s deficit reduction plan for the public finances.
• Council priorities and performance.
• The outcomes of consultation with the public and other stakeholders on service and spending priorities.

There is a legal requirement to set a revenue budget each year. The council had to decide the level of spending it could afford and must take account of how much government grant it would receive and the level of council tax it wished to set. The council must make sure that it sets a balanced budget – that it has identified adequate finance to pay for its spending plans.

The council also has a separate capital programme for longer-term investment in services. This is spending on the construction and improvement of assets such as schools, roads and other council-run facilities. It can fund these from grant, borrowing, capital receipts from asset sales, or direct from revenue. The Prudential Code governs borrowing decisions and the council must ensure that borrowing to support investment is affordable and prudent over the long-term.

The Council has also adopted the CIPFA Code of Practice for Treasury Management, the standard of best practice. This was revised in the light of the Icelandic banking crisis and the impact it had on local government investments. The Code required the council to set a strategy for the investment of cash surpluses, the management of its debt portfolio, and define how and in what circumstances it would borrow.

Each of the reports submitted by the Service Director dealt with revenue spending, capital investment and treasury management. Each report contained a great deal of detail in relation to those specific areas which, taken together, would enable the council to set a budget for 2011/2012.

Moved by Councillor Kirk and seconded by Councillor L Foster –

a) That a revised revenue budget for 2010/11 be approved as set out at Appendix B1 to report 2(b)

b) That the revenue budget for 2011/12 be set in total and for each service as follows and set out at revised Appendix B2 of report 2(b) attached.

c) That all budgets be strictly cash limited to the figures set by the Council, and that services ensure tight control of expenditure during the year and take immediate action to contain cost pressures

d) That it be noted that at its meeting held on 19 January 2011 the council calculated the following amounts for the year 2011/12. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:-

a. 51,590.9 as its Council Tax Base for the year (regulation 3)

b. the Council Tax Base for each part of the area as shown in Appendix C of report 2(b), column 2 (regulation 6).

e) That the following amounts for 2011/12, as required by Sections 32 to 36 of the Local Government Finance Act 1992, be approved-

(a) £352,497,801 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (2) (a) to (e) of the Act (gross expenditure including parish precepts and special expenses)

(b) £220,486,332 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (3) (a) to (c) of the Act(income)

(c) £132,011,469 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 32(4) of the Act as its budget requirement for the year (net budget)

(d) £64,375,553 being the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of redistributed business rates and revenue support grant, increased by the amounts of the sums which the Council estimates will be transferred in the year from the collection fund to its general fund in accordance with Section 22 of part III of the Act (external support and collection fund surplus)

(e) £1,311.00 being the amount at (c) above less the amount at (d) above all divided by the amount at (d)(a) above calculated by the Council, in accordance with Section 33 (1) of the Act as the basic amount of its council tax for the year (Band D council tax including parish precepts and special expenses)

(f) £1,916,332 being the aggregate amount of all special items referred to in Section 34(1) of the Act (total of Parish precepts and special expenses)

(g) £1,273.86 being the amount at (e) above less the result given by dividing the amount at (f) above by the amount at (d)(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 special items relates (Band D council tax excluding parish precepts or special expenses)

(h) The amounts given by adding the amount given at (g) above to the amounts of the special items relating to dwellings in those parts of the Council’s area mentioned above, divided in each case by the amount at (d)(b) above as 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 one or more special items relate (Band D council tax including parish precepts for each parish)

(i) The amounts given by multiplying the amounts given at (g) and (h) above by the number which in the proportion set out in Section 5 (1) of the Act is applicable to dwellings listed in a particular valuation band divided by the number in which that proportion is applicable to dwellings listed in valuation band D is calculated in accordance with Section 36(1) of the Act as the amounts to be taken into account in respect of categories of dwellings listed in different valuation bands. (Council tax including parish precepts for each council tax band and each parish)

f) That it be noted that for the year 2011/12 the major precepting authorities have stated the amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act, 1992 (police and fire precepts)

g) That the amounts of council tax for the year 2011/12 for each of the categories of dwellings be as specified in revised Appendices C1 and C2 of report 2(b) attached. Having calculated the aggregate in each case of the amounts at (e) – (i) and (f) above in accordance with Section 32 (2) of the Local Government Finance Act, 1992 (council tax including police, fire and parish precept for each band and each parish)

h) That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed

i) That the adequacy of reserves included in the budget in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section 3 and revised Appendix A2 of report 2(b)be confirmed.

j) That the financial strategy for 2011/15 be approved as set out at revised Appendices B2 and B3 of report 2(b) attached and indicative council tax increases be set at 3% in 2012/13, 2013/14, and 2014/15

k) That the Service Director Finance be authorised to produce the necessary taxpayer information

l) That the capital programme for 2010/15, including revisions to the current year 2010/11, be approved in line with revised Appendices A and Bof report 2(c) attached

m) That any further capital projects fully funded by external sources or which are self-financing be added to the capital programme when known, subject to a proper assessment of the business case

n) That vehicles and equipment be financed from borrowing or leasing as appropriate and that costs be met from within approved revenue budgets

o) That in accordance with Part 1, sections 3 and 5 of the Local Government Act, 2003 the Prudential Indicators contained in revised Appendix D of report 2(c)attached be approved

p) That the Service Director Finance be authorised to determine the methods of capital financing within the available funding (revenue budget, capital receipts, borrowing, specific external funding and leasing)

q) That the Service Director Finance be authorised, within the total authorised limit, and the total operational boundary, for external debt for any individual year, to effect movement between the separately agreed figures for borrowing and long term liabilities, in accordance with option appraisal and best value for money for the council. Any changes to be reported to cabinet or council as appropriate at the next meeting following the change

r) That the Service Director Finance report any amendments required to Prudential Indicators during 2011/12, to cabinet or council as appropriate at the next meeting following the change

s) That the Treasury Management and Investment Strategy for 2011/12 be approved

t) That the list of approved financial institutions at Appendix C to the report at 2(d)be approved

u) That the prudential indicators for 2011/14 at Appendix D to the report at 2(d)be approved

v) That the policy on the Minimum Revenue Provision at paragraph 4.25 to the report at 2(d)be approved.

Moved by Councillor Mrs Redfern and seconded by Councillor J Briggs as an amendment –

a) That a revised revenue budget for 2010/11 be approved as set out at Appendix B1 to report 2(b)

b) That the revenue budget for 2011/12 be set in total and for each service as follows and set out at revised Appendix B2 of report 2(b) attached

c) That all budgets be strictly cash limited to the figures set by the Council, and that services ensure tight control of expenditure during the year and take immediate action to contain cost pressures

d) That it be noted that at its meeting held on 19 January 2011 the council calculated the following amounts for the year 2011/12. These are as required by regulations made under Section 33(5) of the Local Government Finance Act 1992:-

a. 51,590.9 as its Council Tax Base for the year (regulation 3)

b. the Council Tax Base for each part of the area as shown in Appendix C of report 2(b), column 2 (regulation 6).

e) That the following amounts for 2011/12, as required by Sections 32 to 36 of the Local Government Finance Act 1992, be approved-

(a) £352,418,321 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (2) (a) to (e) of the Act (gross expenditure including parish precepts and special expenses)

(b) £220,406,852 being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (3) (a) to (c) of the Act(income)

(c) £132,011,469 being the amount by which the aggregate at (a) above exceeds the aggregate at (b) above, calculated by the Council, in accordance with Section 32(4) of the Act as its budget requirement for the year (net budget)

(d) £64,375,553 being the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of redistributed business rates and revenue support grant, increased by the amounts of the sums which the Council estimates will be transferred in the year from the collection fund to its general fund in accordance with Section 22 of part III of the Act (external support and collection fund surplus)

(e) £1,311.00 being the amount at (c) above less the amount at (d) above all divided by the amount at (d)(a) above calculated by the Council, in accordance with Section 33 (1) of the Act as the basic amount of its council tax for the year (Band D council tax including parish precepts and special expenses)

(f) £1,916,332 being the aggregate amount of all special items referred to in Section 34(1) of the Act (total of Parish precepts and special expenses)

(g) £1,273.86 being the amount at (e) above less the result given by dividing the amount at (f) above by the amount at (d)(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 special items relates (Band D council tax excluding parish precepts or special expenses)

(h) The amounts given by adding the amount given at (g) above to the amounts of the special items relating to dwellings in those parts of the Council’s area mentioned above, divided in each case by the amount at d)(b) above as 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 one or more special items relate (Band D council tax including parish precepts for each parish)

(i) The amounts given by multiplying the amounts given at (g) and (h) above by the number which in the proportion set out in Section 5 (1) of the Act is applicable to dwellings listed in a particular valuation band divided by the number in which that proportion is applicable to dwellings listed in valuation band D is calculated in accordance with Section 36(1) of the Act as the amounts to be taken into account in respect of categories of dwellings listed in different valuation bands. (Council tax including parish precepts for each council tax band and each parish)

f) That it be noted that for the year 2011/12 the major precepting authorities have stated the amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act, 1992 (police and fire precepts)

g) That the amounts of council tax for the year 2011/12 for each of the categories of dwellings be as specified in revised Appendices C1 and C2 of report 2(b) attached. Having calculated the aggregate in each case of the amounts at (e) – (i) and (f) above in accordance with Section 32 (2) of the Local Government Finance Act, 1992 (council tax including police, fire and parish precept for each band and each parish)

h) That the robustness of the estimates used in setting the level of council tax in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1)(a) of the Act) be confirmed

i) That the adequacy of reserves included in the budget in accordance with the Local Government Act, 2003 requirements (Part 2 Section 25 (1) (b) of the Act), and the policy for use of reserves as set out in Section 3 and revised Appendix A2 of report 2(b)be confirmed.

j) That the financial strategy for 2011/15 be approved as set out at revised Appendices B2 and B3 of report 2(b) attached and indicative council tax increases be set at 1.75% in 2012/13 & 2013/14, and 1.4% in 2014/15

k) That the Service Director Finance be authorised to produce the necessary taxpayer information

l) That the capital programme for 2010/15, including revisions to the current year 2010/11, be approved in line with revised Appendices A and Bof report 2(c) attached

m) That any further capital projects fully funded by external sources or which are self-financing be added to the capital programme when known, subject to a proper assessment of the business case

n) That vehicles and equipment be financed from borrowing or leasing as appropriate and that costs be met from within approved revenue budgets

o) That in accordance with Part 1, sections 3 and 5 of the Local Government Act, 2003 the Prudential Indicators contained in revised Appendix Dof report 2(c) attached be approved

p) That the Service Director Finance be authorised to determine the methods of capital financing within the available funding (revenue budget, capital receipts, borrowing, specific external funding and leasing)

q) That the Service Director Finance be authorised, within the total authorised limit, and the total operational boundary, for external debt for any individual year, to effect movement between the separately agreed figures for borrowing and long term liabilities, in accordance with option appraisal and best value for money for the council. Any changes to be reported to cabinet or council as appropriate at the next meeting following the change

r) That the Service Director Finance report any amendments required to Prudential Indicators during 2011/12, to cabinet or council as appropriate at the next meeting following the change

s) That the Treasury Management and Investment Strategy for 2011/12 be approved

t) That the list of approved financial institutions at Appendix C to the report at 2(d)be approved

u) That the prudential indicators for 2011/14 at revised Appendix D to the report at 2(d)be approved

v) That the policy on the Minimum Revenue Provision at paragraph 4.25 to the report at 2(d)be approved.

At the request of members and in accordance with Procedure Rule 1.23(d) the names of members voting for, against and abstaining from the amendment are as follows –

FOR: Councillors J Briggs, Bunyan, Clark, Eckhardt, England, T Foster, Glover, Poole, Mrs Redfern, N Sherwood, Mrs Sidell, Stewart, K Vickers, P Vickers, Walton, Wardle and Wells.

AGAINST: Councillors Ali, Armitage, Bainbridge, Barker, Barkworth, Carlile, Cawsey, Collinson, Davison, Ellerby, L Foster, Gosling, Grant, Jawaid, Kirk, O’Sullivan, Regan, Simpson, Smith, Swift, Whiteley and Wilson.

ABSTAINING: Councillors Berry and B Briggs.

Amendment Lost

At the request of members and in accordance with Procedure Rule 1.23(d) the names of members voting for, against and abstaining from the motion are as follows –

FOR: Councillors Ali, Armitage, Bainbridge, Barker, Barkworth, Berry, Carlile, Cawsey, Collinson, Davison, Ellerby, L Foster, Gosling, Grant, Jawaid, Kirk, O’Sullivan, Regan, Simpson, Smith, Swift, Whiteley and Wilson.

AGAINST: Councillor J Briggs, Bunyan, Clark, Eckhardt, England, T Foster, Glover, Poole, Mrs Redfern, N Sherwood, Mrs Sidell, Stewart, K Vickers, P Vickers, Waltham, Wardle and Wells.

ABSTAINING: Councillor B Briggs

Motion Carried