Agenda item

To receive the report of the Finance Manager (S151 Officer).

The Finance Manager (S151 Officer) presented the 2021/22 Budget and Medium Term Financial Strategy (MTFS) 2021/22 – 2025/26.  He highlighted the fall in income; expenditure pressures; revenue sources and the impact of declining Government grants.  He spoke about the decline in the share of Council Tax received and explained the affects of not increasing Council Tax in previous years.  MTFS deficits were presented and the Finance Manager (S151 Officer) warned that, without corrective action, the Transition in Government Funding reserve will be exhausted early in 2023/24.  Having shown the shortfall in the Capital Programme, he went on to illustrate how the gap could be bridged.

 

Community & Resources’ approval of the proposed increases to fees and charges (Garden Waste and Car Parking) means that, on the current projections:

 

•     Revenue budgets come into balance by 2024-25

•     The Council doesn’t exhaust its Transition in Government Funding reserve, which is needed to manage the uncertainties of the funding environment going forward.

 

Councillor Hodson, Deputy Leader, addressed the meeting, recognising the necessity to maintain service provisions and the need to raise additional funding through fees and an increase in Council Tax.  Councillor Hodson endorsed the recommendations in the report.

 

Councillor James, Leader, re-enforced the comments made by Councillor Hodson. 

 

Both Councillor Hodson and Councillor James acknowledged the excellent presentation given by the Finance Manager (S151 Officer).

 

Questions/concerns raised by Members and addressed by Officers included:

 

• Capital Income – sale of 2 assets, Westcombe and Brunswick Wharf did not appear to be included.  The Chief Executive explained that the disposal of Westcombe had been built into the Capital Programme in 2017 when the decision to pursue options for a new depot had been taken by Members.    Brunswick Wharf will be included in the capital income should the development progress as approved by Full Council.

 

• Loss of car parking at Brunswick Wharf, had this been built into car parking income?  It is anticipated that car parking will be re allocated to other sites in and around Bideford.   The Head of Communities & Place confirmed there will be capacity in other car parks and it is envisaged that discussions will take place with the Developer for a residents parking scheme.

 

• 3-weekly refuse collections was not something which Members had brought forward for inclusion in the Strategic Plan.

 

• Council Tax increase – the reasoning for the recommendation stated in the report was explained.

 

• Maintenance/repairs to Town Hall buildings - Information was given in relation to the district council’s obligations, under the Local Government Act 1974, to provide office space for town councils.  Town Councils were not required to contribute towards the upkeep of the buildings; this was the responsibility of the landlord.

 

• Sensitivity checks around the increased charges for garden waste and car parking – The Finance Manager (S151 Officer) confirmed that this would be easy to quantify in terms of garden waste but less so for parking, perhaps easier in the town centres but not at tourist locations.  It was noted that both Torrington car parks are short and long term and attract the 30p for 30 minutes tariff.

 

The Finance Manager (S151 Officer) clarified that the recommendations to Internal Overview & Scrutiny were in fact a – d in the report and e – h were for noting.

 

It was proposed by Councillor Cottle-Hunkin, seconded by Councillor Langford  and –

 

Recommended:

 

That a recommendation be added that the Notices of Motion, as detailed in the report, that is the Pannier Market, the Market and the pool cover, be properly reported, considered and debated, following the proper procedures and not just through the informal workshop.

 

A recorded vote was taken.

 

 

 

(Vote: For - unanimous)

 

It was proposed by Councillor Newton, seconded by Councillor Manley and -

 

Recommended:

 

That the recommendations by Community and Resources to Full Council on the 25^th January 2021 be approved, subject to an amendment to d):

 

a)     Torridge’s Band D Council Tax for 2021/22 be increased by £5 (2.96%) from £168.66 to £173.66 per year.

 

b)     Torridge’s Net Revenue Budget 2021/22 is £6.956m

 

c)      The contributions to the Council’s reserves as outlined in paragraph 12.4 are approved.

 

d)     The new PiDs detailed in Appendix 1 – Capital Report are added to the Council’s approved capital programme and the recommendations that the Notices of Motion, as detailed in the report, that is the Pannier Market, the Market and the pool cover, be properly reported, considered and debated, following the proper procedures and not just through the informal workshop. 

 

 

A recorded vote was taken.

 

 

 

(Vote: For - unanimous)

 

 

The decisions made by Community & Resources were noted:

 

e)         That the garden waste collection charges currently £35 per annum; is increased by £5 per annum for 2021/22, 2022/23 & 2023/24 at which point the charge will be £50 per annum, as detailed in Appendix 1 Capital Report section 3.7.3

 

f)          Increase car parking charges within Westward Ho! and Appeldore as detailed in Appendix 1 Capital Report section 3.7.4  (increase phased in over 3 years)

 

g)         Increase car parking charges within the Towns of Bideford, Holsworthy and Torrington as detailed in Appendix 1 Capital Report section 3.7.4 (increase phased in over 3 years)

 

h)         Increase other car parking permits charges as detailed in the Appendix 1 Capital Report section 3.7.4

 

 

The assurance of the Chief Finance Officer (s151 Officer) in relation to the robustness of the budget 2021/22 set out in section 14 of the report was noted.

 

The assumptions and forecast applied to develop the MTFS outlined in section 9 were noted.

 

The risks associated with the Budget 2021/22 and MTFS outlined in section 13 were noted.