Agenda item

The Council received a report which set out proposals for the budget and Council Tax for 2021/22, received details of expected funding including Business Rates and grants for 2021/22 and included a commentary on the financial challenges the Council faced in the future.  The 2021/22 budget had been built up from individual service budgets that were shown in detail in the budget book. Where possible inflationary pressures had been absorbed and no allowance had been made for pay or pension increases this year.

 

A number of fees and charges had been increased and had been approved in accordance with the Financial Regulations.  These changes were reflected within the budget.

 

Although the Council would be part of a Surrey-wide Business Rates pool in 2021/22, expected gains from this exercise had not been included in the budget.

 

The Council maintained a number of earmarked reserves and provisions. All reserves and provisions were considered appropriate and supportive of future expenditure requirements. Revenue reserves (including earmarked reserves) were projected to be approximately £33 million at 31 March 2021. These reserves were not only needed for future committed expenditure, such as SANGS, but also to manage the significant financial risks around commercial property and interest rates. They could also be used to balance the budget until new income streams or savings were available.

 

The shortfall in the Collection Fund arising from the financial year 2019/20 of £1,278,000 had been met from a call on the Council’s Business Rates Equalisation Fund.

 

The Council had acquired significant property holdings over the last five years, which was contributing to support Council services. The pandemic and associated economic downturn had had a significant impact on expected income for 2021/22 and it was proposed to set aside an earmarked reserve of £800,000 (re-purposed from existing reserves) to be drawn down on in the event of any further deterioration in economic conditions.

 

The Council only had limited capital receipts and so needed to borrow to fund its capital aspirations. If these projects were not in themselves self-financing then the interest and Minimum Revenue Provision must be covered from the overall revenue budget.

 

The General Fund Reserve, which was the Council’s contingency fund, needed to be sufficient to deal with any unexpected expenditure. The draft budget for 2021/22 required a call-down on the Reserve of £300,000. Provided Council Tax was increased as predicted and the budget delivered then the General Fund should be at least £2.0m at 31st March 2022, and this figure was confirmed as achievable by the Council’s Section 151 Officer.

 

In particular Members noted

 

·         The impact of reduction in Government funding and how this had been addressed.

·         Costs financed from reserves.

·         The use of property income to fund services.

·         The underlying assumptions in the budget.

·         The financial forecast and its implications in respect of the need for further savings/income if financial stability was to be achieved and the underlying assumptions in its preparation.

 

The Council’s S151 Officer confirmed he was confident that the estimates being presented had been based on sound knowledge of the costs and income, which would aim to deliver on the priorities within the Council’s Corporate Plans. The achievement of this balanced budget, would be through the use of tight controls and the success of delivering on the savings programmes.

 

It was moved by the Leader, Councillor Alan McClafferty, and seconded by the Finance Portfolio Holder, Councillor David Lewis, that the recommendations as set in the agenda report be approved.

 

An amendment was moved by Councillor Sashi Mylvaganam and seconded by Councillor Kristian Wrenn that the recommendations in the agenda paper be amended.  The amended budget had been circulated prior to the meeting and contained the following amended recommendation:

 

           (i)          to note that

 

a.      under delegated powers the Interim Executive Head of Finance calculated the amount of the Council Tax Base as 38,810.56 (Band D Equivalent properties) for the year 2021/22 calculated in accordance with the Local Government Finance Act 1992, as amended;

 

b.      expenditure totalling £1,100,000 is being charged directly to reserves;

 

c.      £187,223 is a special expense relating to the non-parished area of the Borough;

 

d.      the comments in respect of the robustness of the 2021/22 Budget and the adequacy of the Council’s reserves, provisions and the General Fund Working Balance;

 

e.      the comments in respect of the financial forecast, strategy and future financial sustainability of the Council;

 

          (ii)          that the Budget Requirement for 2021/22 be £13,316,998 and that the Table in Paragraph 5.1 of Annex A be amended as set out in the amended budget papers;

 

         (iii)          that the Council Tax Requirement for the Council’s own purposes for 2021/22 be £8,680,423 and that the Table at Paragraph 10.1 of Annex A be amended as set out in the amended budget papers;

 

        (iv)          that the Council Tax for 2021/22 (excluding special expenses and Parish precepts) be set at £223.66 for a Band D property;

 

          (v)          that there be no increase in Member Allowances for financial year 2021/22.

 

Following debate the amendment was put to the vote and lost, the voting was as follows:

 

In favour of the amendment:

Councillors Peter Barnett, Rodney Bates, Cliff Betton, Tim FitzGerald, Sharon Galliford, Ben Leach, Emma McGrath, Sashi Mylvaganam, Morgan Rise, John Skipper, Graham Tapper, Victoria Wheeler, Helen Whitcroft, Kristian Wrenn.

 

Against the amendment:

Councillors Dan Adams, Graham Alleway, Richard Brooks, Sarah Jane Croke, Vivienne Chapman, Paul Deach, Colin Dougan, Shaun Garrett, Edward Hawkins, Josephine Hawkins, Rebecca Jennings-Evans, David Lewis, David Mansfield, Alan McClafferty, Charlotte Morley, Adrian Page, Robin Perry, Darryl Ratiram, Pat Tedder, Valerie White.

 

A further amendment to the original motion was moved by Councillor Rodney Bates and seconded by Councillor Victoria Wheeler that the budget be adjusted to provide for a consolidated staff pay award of £250 to staff on Grades 1, 2 and 3 at a cost of £10,000 to be met by an equivalent reduction in the Theatre’s Artist fee budget.  It was noted that this amendment would not affect the overall budget total.

 

Following debate the amendment was put to the vote and carried. The voting was as follows:

 

In favour of the amendment:

Councillors Dan Adams, Graham Alleway, Peter Barnett, Rodney Bates, Richard Brooks, Sarah Jane Croke, Vivienne Chapman, Paul Deach, Colin Dougan, Tim FitzGerald, Sharon Galliford, Shaun Garrett, Edward Hawkins, Josephine Hawkins, Rebecca Jennings-Evans, Ben Leach, David Lewis, Alan McClafferty, Emma McGrath, Charlotte Morley, Adrian Page, Robin Perry, Darryl Ratiram, Morgan Rise, John Skipper, Graham Tapper, Pat Tedder, Victoria Wheeler, Helen Whitcroft, Valerie White.

 

Against the amendment:

Councillor Cliff Betton, Sashi Mylvaganam, Kristian Wrenn.

 

Abstained:

Councillor David Mansfield.

 

The original motion plus the amendment relating to the staff pay award became the substantive motion.  Following debate the substantive motion was put to the vote and carried.

 

RESOLVED

 

                           (i)       to note that

 

a)        under delegated powers the Interim Executive Head of Finance calculated the amount of the Council Tax Base as 38,810.56 (Band D Equivalent properties) for the year 2021/22 calculated in accordance with the Local Government Finance Act 1992, as amended;

 

b)        expenditure totalling £300,000 is being charged directly to reserves;

 

c)           £187,223 is a special expense relating to the non-parished area of the Borough;

 

d)           the comments in respect of the robustness of the 2021/22 Budget and the adequacy of the Council’s reserves, provisions and the General Fund Working Balance;

 

e)        the comments in respect of the financial forecast, strategy and future financial sustainability of the Council;

 

                         (ii)      that the Budget Requirement for 2021/22 be £12,714,998 as set out in the Table in Paragraph 5.1 of Annex A;

 

                        (iii)       that the Council Tax Requirement for the Council’s own purposes for 2021/22 be £8,874,423 as set out in the Table at Paragraph 10.1 of Annex A;

 

                        (iv)      that the Council Tax for 2021/22 (excluding special expenses and Parish precepts) be set at £228.66 for a Band D property;and

 

                         (v)      to note that the budget as set out in the agenda paper would be amended to reflect the consolidated staff pay award of £250 to staff on Grades 1, 2 and 3 at a cost of £10,000 to be met by an equivalent reduction in the Theatre’s Artist fee budget

 

Note1: In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken.

 

Voting in favour of the motion:

Councillors Dan Adams, Graham Alleway, Rodney Bates, Richard Brooks, Sarah Jane Croke, Vivienne Chapman, Paul Deach, Colin Dougan, Shaun Garrett, Edward Hawkins, Josephine Hawkins, Rebecca Jennings-Evans, David Lewis, David Mansfield, Alan McClafferty, Emma McGrath, Charlotte Morley, Adrian Page, Robin Perry, Darryl Ratiram, Pat Tedder, Victoria Wheeler, Valerie White.

 

Voting against the motion:

Councillor Peter Barnett, Cliff Betton, Tim FitzGerald, Sharon Galliford, Ben Leach, Sashi Mylvaganam, Morgan Rise, John Skipper, Graham Tapper, Helen Whitcroft, Kristian Wrenn.

 

Note 2: It was noted for the record that

 

(i)            Councillor Rodney Bates declared that he volunteered in a food bank in the Borough;

(ii)          Councillor Dan Adams declared that his company leased property in the Camberley Town Centre; and

(iii)         Councillor Paul Deach declared that he provided social media and marketing services to town centre organisations.