Agenda item

To receive the report of the Strategic Manager (Resources)

Recommend to Full Council:

 

a)     That the assurance of the Chief Finance Officer (s151 Officer) of the robustness of the budget 2019/20 as set out in section 12 of the report be noted.

 

b)     That the assumptions and forecast applied to develop the MTFS outlined in section 14 of the report be noted.

 

c)     That the forecast deficit of £0.752m in the MTFS for 2023/24 be noted.

 

d)     That the risks associated with the Budget 2019/20 and MTFS outlined in section 16 of the report be noted.

 

e)     That a Joint Internal & External Scrutiny committee to review the grants made to external bodies for the financial year 2020/21be noted.

 

f)      That Torridge’s Band D Council Tax for 2019/20 be increased by £5 (3.15%) from £158.86 to £163.66 per year be approved.

 

i)     That Torridge’s Net Revenue Budget 2019/20 to be £10.149m be approved.

 

j)     That the contributions to the Council’s reserves as outlined in paragraph 10.4 of

        the report be approved.

 

k)    That the Head of Paid Service, Senior Management and the new council, review

       and revise the strategic plan & priorities and prepare options to achieve the

       savings going forward be approved.

 

 

The Strategic Manager (Resources) introduced the report, the purpose of which was to present to Members the Medium Term Financial Strategy (MTFS) indicating the possible extent of the budget and funding shortfall that the Council will face in the future.   It is an aid in identifying the extent of service changes that the Council will need to make to achieve a balanced budget in each financial year up to 2023/24.  Members were also asked to consider and recommend the Budget 2019/20 to Full Council.

 

The Strategic Manager (Resources) informed the Committee of the challenging year ahead and the need for the Council to find savings and to make decisions in terms of bridging the gap in the budget. 

 

A slide presentation was given by the Finance Manager which highlighted the salient points in the report.   The main point emphasised to Members was the deficit which is projected to grow significantly over the period under consideration.   The projected deficit had moved adversely due to the LGA pay award which had resulted in an increased salary bill for the Council and a large increase in homelessness costs.  Other points highlighted included the impact of increasing the council tax, budget pressures and savings, New Homes Bonus, challenges for the Council in future years and new Capital Project bids.

 

The Strategic Manager (Resources) and Finance Manager also provided reasons and rationale to support the recommendations detailed in the report.

 

During the presentation clarification was given by Officers on a number of concerns/issues raised by Members.   These included:

 

·         Homelessness  -  the number of people in bed and breakfast and hostels, the statutory duties of the Council, the increased homelessness demand and the impact on the Council’s finances

 

·         Business Rates – although successful with the pilot bid in 2018, the Authority had been unsuccessful for the coming year due to the Government wanting new areas to pilot bid status.

 

Due to the recommendations being interlinked with those on Agenda items 7a and 7b, those reports to be brought forward for presentation and consideration.

 

 

Agenda item 7a - Proposed Changes to Council Tax Legislation – Long Term Empty Properties

& Review Current Council Tax Local Discount Policy

 

Councillor D Brenton declared a prejudicial interest and took no part in the debate and decision making

 

The Customer Support Manager presented the report, the purpose of which was for Members to review the changes to Council Tax legislation for Long Term Empty Properties and the existing Torridge District Council Tax Local Discount Policy for properties that are unoccupied and unfurnished or undergoing major structural alterations or uninhabitable to enable any changes to be agreed by 31 March 2019.

 

The Customer Support Manager gave an update, following an email received prior to the meeting, in relation to the negotiations that had taken place with Devon County Council regarding the potential to allow the Council to retain a higher percentage of the income generated from the changes to Council Tax Legislation.  The Strategic Manager (Resources) confirmed he had emailed the County Treasurer outlining the Council’s concerns and asking that they reconsider their decision.

 

During the discussion that followed it became evident that Members were in support of increasing charges for empty properties.

 

It was proposed by Councillor Hurley, seconded by Councillor Hackett and:

 

Recommend to Full Council:

 

1. That the ‘Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill’ be adopted and the premiums be applied from 1^st April 2019;

 

1. That 100% 3 month discount for unoccupied & substantially unfurnished properties be reduced to a maximum of 1 month from 1^st April 2019.

                                                                                   

2. That the 100% 12 month discount for properties undergoing major structural alterations be reduced asfollows:

 

• April 2019 – 100% discount for 6 months maximum
• April 2020 -  No discount

 

 

(Vote:  For 8, Against 1)

 

 

Councillor Brenton returned to the meeting.

 

Agenda item 7b – New Homes Bonus - Community Grants

 

The purpose of the report, presented by the Strategic Manager (Resources), was for Members to determine how the New Homes Bonus funding is to be utilised in its fourth year of operation.    He explained there are no proposals to change the principle of the scheme, but to look at the funding available for the scheme and for any reductions to balance the overall budget.

 

A lengthy discussion took place when Members acknowledged the importance of retaining the personal Councillor grants at £2,000 and noted the uncertainty over future New Homes Bonus Funding beyond 2019/20.   Due to the uncertainty of this funding Members felt keeping the Councillor grants at £2,000 became more significant.

 

The Strategic Manager (Resources) addressed all concerns raised by Members.

 

It was proposed by Councillor Whittaker, seconded by Councillor Lock and –

 

Recommend to Full Council:

 

1. That the personal Councillor grants remain at £2,000 be approved

 

(Vote:  For 8, Against 2)

 

It was proposed by Councillor McGeough, seconded by Councillor Himan

and -

 

Recommend to Full Council:

 

2. That £115k is top-sliced from the New Homes Bonus – Community Grants Allocation to utilise in the Revenue Budget 2019/20 be approved.

 

(Vote:  For 9, Against 1)

 

 

The Chair referred Members to the report for Agenda item 7 and votes were taken on the recommendations.

 

It was proposed by Councillor Hurley, seconded by Councillor Whittaker recommendations a) – e) be noted -

 

Recommend to Full Council:

 

a)     That the assurance of the Chief Finance Officer (s151 Officer) of the robustness of the budget 2019/20 as set out in section 12 of the report be noted.

 

b)     That the assumptions and forecast applied to develop the MTFS outlined in section 14 of the report be noted.

 

c)     That the forecast deficit of £0.752m in the MTFS for 2023/24 be noted.

 

d)     That the risks associated with the Budget 2019/20 and MTFS outlined in section 16 of the report be noted.

 

e)     That a Joint Internal & External Scrutiny committee to review the grants made to external bodies for the financial year 2020/21be noted.

 

(Vote:  For – Unanimous)

 

 

Recommend to Full Council

It was proposed by Councillor Whittaker, seconded by Councillor Hackett

and –

 

Recommend to Full Council:

 

f)      That Torridge’s Band D Council Tax for 2019/20 be increased by £5 (3.15%) from £158.86 to £163.66 per year be approved.

 

(Vote:  For 7, Against 3)

 

It was proposed by Councillor McGeough, seconded by Councillor Hicks –

 

Recommend to Full Council:

 

i)    That Torridge’s Net Revenue Budget 2019/20 to be £10.149m be

       approved.

 

j)    That the contributions to the Council’s reserves as outlined in paragraph   

      10.4 of the report be approved.

 

k)   That the Head of Paid Service, Senior Management and the new council,

       review and revise the strategic plan & priorities and prepare options to 

       achieve the savings going forward be approved.

 

(Recommendations g) and h) had been considered and recommendations made as above).

 

(Vote:  For 9, Against 1)