Agenda item

To resolve recommendations in respect of:

·         Capital Programme 2016/17-2018/19

·         Revenue Budget 2016/17 (including Fees and Charges)

·         Council Tax 2016/17

 

The supporting information has been circulated separately.

The Council considered the report by the Borough Treasurer which set out the financial plans and revenue budgets for the financial year 2016/17 and supporting information which presented the Council’s spending plans for 2016/17 and detailed budgets for the General Fund and Capital Programme. It was noted that a replacement to page 25 of the agenda papers had been circulated as it contained updated information which was not available at the time of the agenda publication.

 

Councillor Heydon gave a comprehensive presentation placing a particular focus on:

 

·         Council’s initial budget plans were published for consultation on 15 December.  The Council had set its financial plans and published its budget based on advice that Revenue Support Grant would be reduced by 40% over the Spending Review period.

·         The provisional financial settlement was announced two days later and the actual grant cut was 80% which was £4.3m more than expected and was based on previously unannounced changes to the distribution of resources amongst authorities. The new approach, known as ‘resource equalisation’ is based on the presumption that where possible income should be raised locally.

·         Following a delegation of Berkshire Leaders, headed by Bracknell Forest Council’s Leader, meeting with the Minister for Local Government a new transitional grant was announced to assist those authorities that had been affected most severely by the cuts and the Council will receive additional funding of £0.9m in both 2016/17 and 2017/18.  This was acknowledged as a short term solution but provided additional time to plan and implement a whole range of economies and savings that will place the Council’s finances on sound foundations for the future.

·         He thanked the Chief Executive and his senior team for the hard work that they have put into the process.

·         Following five years of Council Tax freezes the key feature was the proposed Council Tax increase of 3.99%.  Just under half of this would be used to support the continued delivery of vital front line services, with the remaining 2% being spent entirely on adult social care functions.

·         To the average Band D Council Tax payer this would be an increase of just over £40 for the year, less than £1 per week, and as such still represented good value for our residents.

·         The net spending next year, before the use of reserves and balances would be £70.3m, but overall gross expenditure would exceed £100m. This would include:

·         In addition to this the Council is passporting from the government to our schools over £83m.  Schools are under additional cost pressures but schools will receive the same amount of funding in cash terms as last year.  Some schools will see an increase in their budgets, if for example, their pupil numbers have increased. 

·         The budget for schools is challenging and action will need to be taken to manage costs to ensure school budgets remain on a sustainable footing, especially when more new schools come on stream in support of the housing development that is taking place across the Borough.

·         Council has found initial savings of almost £4.5m across other Council services with an overriding approach to increase efficiency and reduce back office costs.

·         By managing demand for services and taking the opportunity to increase income this means that impact on services to residents has been minimised. 

·         The scale of the financial challenge the Council are facing means that not all services can be maintained at their present level, but will follow the principles set out in the recently agreed Council Plan

·         £79.8m of proposed Capital Programme spending next year to continue the Council’s programme of investment in the Borough. 

·         Redevelopment of the town centre is now a reality with a total of £12.4m already spent or committed to fund the purchase of the bus station, invest in a new park and deliver further public realm and highways works.  This was being supplemented with a further £2m per annum to facilitate transport movements around the Borough to ensure the regenerated town centre functions as a ‘whole centre’ and not just an isolated shopping outlet. 

·         The second area of significant capital spend will be the Binfield Learning Village which will deliver much needed schools places in the north of the Borough as well as delivering new housing and associated community facilities.  The overall project was expected to cost over £39m over a four year period.

·         Feedback from the consultation process was taken into account and he thanked everyone who had taken part by examining the proposals and providing feedback. 

·         He concluded that he was presenting a balanced budget supported by £5.1m from reserves but included a 3.99% increase in the rate of Council Tax.

·         He stated that transferring from balances was unsustainable and the Transformation Programme was key in replacing balances.

·         He added that the Executive had agreed a range of further savings proposals of almost £4m that would be consulted upon and were included for information on the blue pages within the financial plans and budgets supporting information.  These would be considered by Full Council on 13 July.

 

On the proposition of Councillor Heydon, Executive Member for Transformation and Finance, seconded by Councillor Bettison the recommendations as set out in the agenda report and in the supplementary report were moved.

 

As required by legislation a recorded vote was taken on the substantive motion and the voting was as follows:

 

FOR (39)         Councillors Allen, Angell, Mrs Angell, Dr Barnard, Bettison, D Birch, Mrs Birch, G Birch, Brossard, Brunel-Walker, Dudley, Finch, Finnie,Ms Gaw, Mrs Hamilton, Harrison, Mrs Hayes MBE, Ms Hayes, Heydon, Hill,Mrs Ingham, King OBE, Leake, Mrs Mattick, McCracken, Mrs McCracken, Mrs McKenzie, Mrs McKenzie-Boye, McLean, Ms Merry, Peacey, Phillips, Porter, Skinner, Thompson, Tullett, Turrell, Virgo and Wade.

 

ABSTAIN (1)   Councillor Mrs Temperton.

 

It was therefore RESOLVED that:

 

1          Capital Programme 2016/17 - 2018/19

 

i)              General Fund capital funding of £59.983m for 2016/17 in respect of those schemes listed on pages 229 to 233 of the Supporting Information be agreed;

ii)             The inclusion of an additional budget of £1m for ‘Invest to Save’ schemes be agreed;

iii)            The inclusion of £2.440m of expenditure to be funded from S106 as outlined in paragraph 5.33 on pages 225 and 226 and included on pages 229 to 233 of the Supporting Information be agreed;

iv)           That those schemes that attract external grant funding be agreed for inclusion within the 2016/17 capital programme at the level of funding received;

 

2          Revenue Budget 2016/17

 

i)              The budget proposals set out in Table 1 (page 5) of the Summary report for Council, subject to the changes identified in sections 6.2 (page 6 and 7), 6.3 (pages 7 and 8), 7 (page 9) and 8.3 (pages 10 and 11)  of the Supporting Information be agreed;

ii)             Fees and charges as set out on pages 97 to 186 of the Supporting Information be approved;

iii)            A provision for inflation of £0.765m be approved;

iv)           The commitment budget as set out in Annexe A be approved (page 25 of the Supporting Information);

            vi)        The Schools Budget be funded at the level set out in section 9.1 (pages 11 to 12) of the Supporting Information subject to any amendments agreed by the Executive Member for Children, Young People and Learning;

vii)        A contingency of £1.000m be included, use of which is authorised by the Chief Executive in consultation with the Borough Treasurer in accordance with the delegations included in the Council’s constitution;

viii)       Subject to the above recommendations the revised draft budget proposals be agreed;

ix)        A contribution of £5.174m (after allowing for the loss of interest on the use of balances of £0.013m) be made from revenue balances to support revenue expenditure;

x)         Total net expenditure (after use of balances) of £65.104m, be approved;

            xi)        The Council’s Council Tax requirement, excluding Parish Council precepts, be set at £49.795m;

xii)       The Council Tax for the Council’s services for each Valuation Band be set as follows:

 

Band	Tax Level Relative to Band D	£
A	6/9	758.40
B	7/9	884.80
C	8/9	1011.20
D	9/9	1137.60
E	11/9	1390.40
F	13/9	1643.20
G	15/9	1896.00
H	18/9	2275.20

 

                       

           

xiii)      the following indicators, limits, strategies and policies included in Annex E (pages 53 to 74 of the Supporting Information):

·        The Prudential Indicators and Limits for 2016/17 to 2018/19 contained within Annex E(i);

·        The Minimum Revenue Provision (MRP) Policy contained within Annex E(ii);

·        The Treasury Management Strategy Statement, and the Treasury Prudential Indicators contained in Annex E(iii);

·        The Authorised Limit Prudential Indicator in Annex E(iii);

·        The Investment Strategy 2016/17 to 2018/19 and Treasury Management Limits on Activity contained in Annex E(iv);

 

xiv)      The formal Council Tax Resolution contained in section 3 be approved.

 

3          COUNCIL TAX RESOLUTION

 

3.1       the recommendations of the Executive outlined in sections 2.1 and 2.2 be agreed.

 

3.2       the amounts calculated for the year 2016/17 in accordance with Section 67 of the Local Government Finance Act 1992 are :-

 

(a)        £43,772           TAX BASE FOR THE WHOLE COUNCIL AREA

 

being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, as amended, as its council tax base for the year

 

(b)       TAX BASE FOR PART OF THE COUNCIL’S AREA

                                               

EACH PARISH AREA

Binfield	3,697
Bracknell	18,601
Crowthorne	2,618
Sandhurst	7,720
Warfield	4,533
Winkfield	6,603

 

being the amounts calculated by the Council, in accordance with regulation 6 of the Regulations, as amended, as the amounts of its council tax base for the year for dwellings in those parts of its area to which one or more special items relate

 

3.3       the following amounts be now calculated by the Council for the year 2016/17 in accordance with Sections 31 to 36 of the Local Government and Finance Act 1992as amended (the Act):

(a)

£286,745,061

TOTAL EXPENDITURE INCLUDING GENERAL FUND, PARISH PRECEPTS AND THE COUNCIL’S SHARE OF ANY DEFICIT ON THE COLLECTION FUND

being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act

 

 

(b)

£233,993,587

TOTAL INCOME INCLUDING GOVERNMENT SUPPORT AND THE COUNCIL’S SHARE OF ANY SURPLUS ON THE COLLECTION FUND

being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act

 

 

(c)

£52,751,474

BOROUGH AND PARISH PRECEPTS NET EXPENDITURE TO BE FINANCED FROM COUNCIL TAX

being the amount by which the aggregate at 3.3(a) above exceeds the aggregate at 3.3(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its council tax requirement for the year

 

(d)

£1,205.14

AVERAGE BAND "D" COUNCIL TAX FOR WHOLE BOROUGH

being the amount at 3.3(c) above, divided by the amount at 3.2(a) above, calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its council tax for the year (including Parish precepts)

 

(e)

£2,956,447

PARISH PRECEPTS

being the aggregate amount of all special items referred to in Section 34(1) of the Act

 

 

(f)

£1,137.60

BOROUGH COUNCIL TAX FOR BAND "D" PROPERTIES

being the amount at 3.3(d) above less the result given by dividing the amount at 3.3(e) above by the amount at 3.2(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 if there were an area of the Borough to which no special item relates

 

(g)	Part of the Council’s area	BOROUGH AND PARISH COUNCIL TAX FOR EACH PARISH FOR BAND “D”
	Binfield	£1,181.69
	Bracknell	£1,216.26
	Crowthorne	£1,208.99
	Sandhurst	£1,210.89
	Warfield	£1,171.59
	Winkfield	£1,201.74

being the amounts given by adding to the amount at 3.3(f) above the amounts of the special item or items relating to dwellings in those parts of the Council's area mentioned above divided in each case by the amount at 3.2(b) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its council tax for the year for dwellings in those parts of its area to which one or more special items relate

 

(h)

Part of the Council's area

BOROUGH AND PARISH COUNCIL TAX IN EACH PARISH FOR EACH VALUATION BAND

 

Parish	A	B	C	D	E	F	G	H
	£	£	£	£	£	£	£	£
Binfield	787.79	919.09	1,050.39	1,181.69	1,444.29	1,706.89	1,969.48	2,363.38
Bracknell	810.84	945.98	1,081.12	1,216.26	1,486.54	1,756.82	2,027.10	2,432.52
Crowthorne	805.99	940.33	1,074.66	1,208.99	1,477.65	1,746.32	2,014.98	2,417.98
Sandhurst	807.26	941.80	1,076.35	1,210.89	1,479.98	1,749.06	2,018.15	2,421.78
Warfield	781.06	911.24	1,041.41	1,171.59	1,431.94	1,692.30	1,952.65	2,343.18
Winkfield	801.16	934.69	1,068.21	1,201.74	1,468.79	1,735.85	2,002.90	2,403.48

 

being the amounts given by multiplying the amounts at 3.3(g) 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 which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands

 

3.4       That it be noted that for the year 2016/17 the Police and Crime Panel have stated the following amounts in precepts issued to the Council regarding the Police and Crime Commissioner for the Thames Valley, in accordance with Section 40 of the Act, for each of the categories of dwellings shown below:-

 

	A	B	C	D	E	F	G	H
	£	£	£	£	£	£	£	£
Police and Crime Commissioner for the Thames Valley	111.31	129.86	148.41	166.96	204.06	241.16	278.27	333.92

 

 

3.5       That it be noted that for the year 2016/17 the Royal Berkshire Fire Authority have stated the following amounts in precepts issued to the Council, subject to confirmation by the Fire Authority on 17 February, in accordance with Section 40 of the Act, for each of the categories of dwellings shown below:-

      

	A	B	C	D	E	F	G	H
	£	£	£	£	£	£	£	£
Royal Berkshire Fire Authority	40.84	47.65	54.46	61.27	74.88	88.50	102.11	122.54

 

3.6       That, having calculated the aggregate in each case of the amounts at 3.3(h), 3.4 and 3.5 above, the Council, in accordance with Section 30(2) of the Act, hereby sets the following amounts as the amounts of council tax for the year 2016/17 for each of the categories of dwellings shown below:-

 

(a)

Part of the Council's area

TOTAL COUNCIL TAX FOR EACH VALUATION BAND

 

Parish	A	B	C	D	E	F	G	H
	£	£	£	£	£	£	£	£
Binfield	939.94	1,096.60	1,253.26	1,409.92	1,723.23	2,036.55	2,349.86	2,819.84
Bracknell	962.99	1,123.49	1,283.99	1,444.49	1,765.48	2,086.48	2,407.48	2,888.98
Crowthorne	958.14	1,117.84	1,277.53	1,437.22	1,756.59	2,075.98	2,395.36	2,874.44
Sandhurst	959.41	1,119.31	1,279.22	1,439.12	1,758.92	2,078.72	2,398.53	2,878.24
Warfield	933.21	1,088.75	1,244.28	1,399.82	1,710.88	2,021.96	2,333.03	2,799.64
Winkfield	953.31	1,112.20	1,271.08	1,429.97	1,747.73	2,065.51	2,383.28	2,859.94