Agenda item

Report of Councillor P Parkin, Portfolio Holder for Finance

The report to Council set out the Current Budget for 2020-21, the proposed Original budget for 2021/22 for the General Fund, Housing Revenue Account and Capital Programme, along with the financial plans for the remaining years of the Medium Term Financial Plan (2022/23-2024/25). Members were informed that Cabinet had considered and endorsed the budgets and agreed that they be recommended to Council for approval.

 

Councillors K Bone, P Bone, S Clough, M Potts and N Whitehead, who had declared Significant Interests as Killamarsh Parish Councillors in the budget provisions for the Killamarsh Leisure Centre, left the meeting at this point.

 

Members were reminded that at its January 2021 meeting Council had considered a report on the Killamarsh Leisure Centre. This specified Cabinet’s preferred approach on the future operation of the Centre.  Council subsequently resolved to note the decision of Cabinet and the recommendations to be presented to Council in February 2021. It also resolved to support Cabinet’s decision and the impending recommendations for its implementation (Minute: COU/86/20-21.)

 

The report to Council explained that the budget in respect of Killamarsh Leisure Centre had now been included as part of the Original Budget 2021/22 and the financial projections in respect of 2022/23 to 2024/25. Council was asked to support these provisions.

 

Following a discussion about the process to be followed for Council to consider and determine the budget proposals, Councillor P Parkin and Councillor A Dale moved and seconded the recommendations at set out in the report at sections 6.3 and 6.13 in the report.

 

The motion was put to the vote and was carried. As required by law, a recorded vote was taken:

 

For the Motion (25): Councillors P Wright, R Welton, M Thacker, K Tait, D Ruff, M Roe, C Renwick, A Powell, P Parkin, H Liggett, B Lewis, J Kenyon, A Hutchinson, R Hall, O Gomez Reaney, J Funnell, M Foster, A Foster, M Emmens, P Elliot, L Deighton, A Dale, C Cupit, W Armitage, P Antcliff

 

Against the Motion (3) Councillors Windley, R Shipman, D Hancock

 

Abstained (13) Councillors L Stone, J Ridgway, T Reader, S Pickering, J Lilley, P Kerry, M Jones, E Hill, L Hartshorne, S Cornwell, A Cooper, J Birkin, N Barker

 

RESOLVED:

 

(1)             That Council approved the budget in respect of Killamarsh Leisure Centre, as set out in Appendix 2to the report as the Original Budget 2021/22 and as the financial projections in respect of 2022/23 to 2024/25.

 

(2)            That Council approved the Capital Programme for 2021/22 in respect of Killamarsh Leisure Centre as set out in Appendix 1 to the report

 

Councillors K Bone, P Bone, S Clough, M Potts and N Whitehead, returned to the meeting at this point.

 

With the agreement of the Chair, Council then considered the other parts of the General Fund and Capital Programme.  Members were reminded of the significant problems which had to be faced during the current financial year as a result of the Coronavirus (Covid-19) outbreak. In particular, they heard that the Council had received far less incomed from the leisure facilities and other services, such as Commercial Waste Collection, than projected. Income growth from Business Rates was also expected to be considerably lower.

 

Members were informed that the Council had received substantial support from Central Government during the year, to offset the financial impact of the virus outbreak. This support had helped to stabilise its financial position. In particular, Members heard that the Council had received a grant of £1.44m,to assist with the costs of delivering services during the outbreak. Council also learned that the Government’s Income Compensation Scheme would compensate for a proportion of the income lost from fees and charges.

 

Council considered the proposed Council Tax increase of £3.70 (or 1.95%) to be levied in respect of a notional Band D property, which had been recommended to Members by Cabinet. It was suggested that an increase in the Council Tax at this level would help to maintain the important services provided to local communities, while not placing unnecessary pressures on householders.

 

Council noted that the Original Budget for 2021-22 included a shortfall of £0.133m, which would have to be saved during the year. It was explained that these savings would need be achieved either by permanent reductions in expenditure or through sustained increases in the amount of income received. In this context, Members reflected on the financial challenges which the Council might face during the remaining period of the Medium Term Financial Plan.

 

At the conclusion of the discussion Councillor P Parkin and Councillor A Dale moved and seconded the recommendations as set out in the report at 6.1 to 6.2 and 6.4 to 6.6 and 6.14. The motion was put to the vote and was carried. As required by law, a recorded vote was taken

 

For the Motion (43): Councillors P Wright, N Whitehead, R Welton, M Thacker, K Tait, L Stone, D Ruff, M Roe, J Ridgway, C Renwick, T Reader, A Powell, M Potts, S Pickering, P Parkin, J Lilley, H Liggett, B Lewis, P Kerry, J Kenyon, M Jones, A Hutchinson E Hill, L Hartshorne, R Hall, O Gomez Reaney, J Funnell, M Foster, A Foster, M Emmens, P Elliot, L Deighton, A Dale, C Cupit, S Cornwell, A Cooper, S Clough, P Bone, K Bone, J Birkin, N Barker, W Armitage, P Antcliff

 

Against the Motion: (3) Councillors P Windley, R Shipman and D Hancock

 

There were no abstentions.

 

RESOLVED

 

(1)            That the view of the Chief Financial Officer, that the estimates included in the Medium Term Financial Plan 2020/21 to 2024/25 are robust and that the level of financial reserves whilst at minimum levels are adequate, be accepted.

 

(2)            That officers report back to Cabinet and the Audit and Corporate Governance Scrutiny Committee on a quarterly basis regarding the overall position in respect of the Council’s budgets. These reports to include updates on achieving the savings and efficiencies necessary to secure a balanced budget over the life of the medium term financial plan. 

 

(3)            A Council Tax increase of £3.70 be levied in respect of a notional Band D property (1.95%).

 

(4)            The Medium Term Financial Plan in respect of the General Fund, as set out in Appendix 1to the report, be approved as the Current Budget 2020/21, as the Original Budget 2021/22, and as the financial projections in respect of 2022/23 to 2024/25.

 

(5)            That any under spend in respect of 2020/21 be transferred to the Resilience Reserves, to provide increased financial resilience for future years of the plan.

 

(6)            That the Capital Programme as set out in Appendix 4to the report be approved as the Current Budget in respect of 2020/21, and as the Approved Programme for 2022/23 to 2024/25.

 

Councillors S Clough, O Gomez Reaney and D Ruff left the meeting at this point

 

With the agreement of the Chair, Council then discussed the proposed Housing Revenue Account. Members were informed that a 1.5% increase in housing rents had been recommended for 2021/22. This would be in line with the Social Housing Rent Standard, set by the Government. Council was reminded that this Standard allowed all registered providers of social housing, including local authorities, to apply annual rent increases of up to the Consumer Price Index (CPI) plus 1%.

 

At the conclusion of the discussion Councillor P Parkin and Councillor A Dale moved and seconded the recommendations as set out in the report at 6.7 to 6.12. The motion was put to the vote and was carried. As required by law a recorded vote was taken.

 

For the motion (43): Councillors P Wright, P Windley, N Whitehead, R Welton, M Thacker, K Tait,  L Stone, R Shipman, M Roe, J Ridgway, C Renwick, T Reader, A Powell, M Potts, S Pickering, P Parkin, J Lilley, H Liggett, B Lewis, P Kerry, J Kenyon, M Jones, A Hutchinson, E Hill, L Hartshorne, D Hancock, R Hall, J Funnell, M Foster, A Foster, M Emmens, P Elliot, L Deighton, A Dale, C Cupit, S Cornwell, A Cooper, P Bone, K Bone, J Birkin, N Barker, W Armitage, P Antcliff

 

There were no votes against the motion and no abstentions

 

RESOLVED:

 

(1)            That the rent levels for 2021/22 be set in line with the Social Housing Rent Standard increasing rents by 1.5% from 1^st April 2021.

 

(2)            That all other charges be implemented in line with the table shown at 1.38 in the report above with effect from 1 April 2021.

 

(3)            That the Medium Term Financial Plan in respect of the Housing Revenue Account as set out in Appendix 3 to the report be approved as the Current Budget in respect of 2020/21, as the Original Budget in respect of 2021/22, and the financial projection in respect of 2022/23 to 2024/25.

 

(4)            That the Management Fee for undertaking housing services at£9.692m and the Management Fee for undertaking capital works at£1.1m to Rykneld Homes in respect of 2021/22 be approved.

 

(5)            That the section in the current Financial Protocol, which enabled the Council to pay temporary cash advances to Rykneld Homes in excess of the Management Fee in order to help meet the cash flow requirements of the company should unforeseen circumstances arise in any particular month, be endorsed.

 

(6)            That Council noted the requirement to provide Rykneld Homes with a ‘letter of comfort’ to the company’s auditors. Delegated authority was granted to the Council’s Chief Financial Officer, in consultation with the Portfolio Holder for Finance, to agree the contents of that letter.