Agenda item

This report presents the Cabinet’s draft medium term financial plan, and revenue and capital budgets for the 2012/13 financial year, together with a proposal for a Council Tax level for 2012/13.

This item has yet to be considered by the Cabinet on 8^th February and any changes to the report or proposed budget will be sent as a supplementary despatch.

The Council considered a report setting out the Cabinet’s draft medium term financial plan, and revenue and capital budgets for the 2012/13 financial year, together with a proposal for a Council Tax level for 2012/13 (Report 8).

In addition to the reports circulated with the agenda, all Councillors received a copy of the draft minute of the Resources Policy Development and Scrutiny (PDS) Panel meeting held on 6^th February with the Panel`s comments on the Budget proposals.  Councillors also received Appendix 5 – Formal Council Tax Setting resolutions (incorporating precepts from Parishes, Fire and Police).

On a motion from Councillor Paul Crossley, seconded by Councillor Francine Haeberling, it was RESOLVED that the Council suspends Council Rule 42, Content and Length of Speeches, for the duration of this debate to enable variations to be permitted to the length of the speeches by the Cabinet Member for Community Resources, the Conservative, Labour and Independent Groups and the Chair of the Resources Policy Development & Scrutiny Panel.

On a motion from Councillor David Bellotti, seconded by Councillor Paul Crossley, it was

RESOLVED

1.  To approve:

a.  The General Fund net revenue budget for 2012/13 of £120.156m with no increase in Council Tax.

b.  That no Special Expenses be charged other than Town and Parish Council precepts for 2012/13.

c.  The adequacy of reserves at Appendix 1, Table 9 of the report, with a risk-assessed level of £10.5m.

d.  The individual service cash limits for 2012/13 summarised at Appendix 1, Table 5 and detailed in Annex 1 of the report, subject to the removal of the proposal to discontinue the mobile library service and the adjustment of the cash limit by an additional £50,000 to be allocated from the £381,000 to be transferred to Revenue Budget contingency to provide for emerging priorities in the year ahead, to enable the continuation of the mobile library service

e.  That the specific arrangements for the governance and release of reserves, including invest to save proposals, be delegated to the Council’s Section 151 Officer, in consultation with the Cabinet Member for Community Resources and the Chief Executive.

2.  To include the precepts set and approved by other bodies including  the Local Precepts of Town Councils, Parish Councils and the Charter Trustees of the City of Bath, and those of the Fire and Police Authorities in its Council Tax setting.

3.  To acknowledge the Section 151 officer's report on the robustness of the proposed budget and the adequacy of the Council's reserves (Appendix 1, Annex 2 of the report) and approves the conditions upon which the recommendations are made as set out throughout Appendix 1 of the report.

4.  That, in relation to the capital budget, the Council:

a.  approves a capital programme of £37.471m for 2012/13 and notes items for provisional approval in 2012/13 and the programme for 2013/14 to 2016/17 as shown at Appendix 1, Annex 3 of the report including the planned sources of funding;

b.  approves the Minimum Revenue Provision Policy as shown at Appendix 1, Annex 4 of the report;

c.  approves the Capital Prudential Indicators as set out in Appendix  1 Table 7 of the report.

5.  To note the Policy Development & Scrutiny review of Medium Term Service and Resource Plans and 2012/13 Service Action Plans and instructs the relevant officers to finalise and publish their Medium Term Service and Resource Plans and Service Action Plans by end of March 2012, in consultation with the relevant Cabinet Member and in light of feedback from the PD&S reviews, and in line with the approved cash limits.

6.  To agree the Council’s proposed pay policy statement, as set out at Appendix 4 to the report.

7.  To approve the technical resolutions that are derived from the budget report, and all figures in that report including the precepts for towns, parishes and other precepting bodies as set out in Appendix 5 of the report.

THE COUNCIL APPROVES THE BUDGET AND COUNCIL TAX FOR 2012/2013 AS INDICATED ABOVE AND ACCORDINGLY RESOLVES:

8.  That the 2012/13 expenditure is funded as follows:

  * Includes 2011/12 recurring Council Tax Freeze Grant

9.  a) That it be noted that on 21st December 2011, the Divisional Director of Finance (as authorised section 151 officer) agreed 64,440.11 Band D property equivalent as the Council Tax Base for the year 2012/13 in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992 made under Section 35(5) of the Local Government Finance Act 1992.

b) The amounts calculated by the Council, in accordance with Regulation 6 of the Regulations, as the amount of its Council Tax Base for the year for dwellings in those parts of its area to which one or more special items relate is given as Annex 1 (1).

[Annex 1 (1) gives Band D Tax base by parish]

10.That the following amounts be now calculated by the Council for the 2012/13 financial year in accordance with Sections 31 to 36 of the Local Government and Finance Act 1992, as amended:

a.  £318,908,481 (=£316,741,984 (gross expenditure including contribution to reserves) +£2,166,497 (Parish precepts))being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

[This is the gross expenditure incurred in performing functions and charged to the revenue account, contingencies for revenue, any financial reserves to be raised, financial reserves to meet prior year deficit not yet provided for, any amounts transferred from its general fund to its collection fund in accordance with section 97(4) of the 1988 Act, and any amounts transferred from general fund to collection fund under section 98(5) of 1988 Act.]

b.  £239,294,584 (gross income) being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

[This is the income estimated to accrue which will be credited into the revenue account for the year in accordance with proper practices, any amounts transferred in the year from the collection fund to the general fund in accordance with section 97(3) of the 1988 Act, any amounts which will be transferred from the collection fund to the general fund pursuant to a direction under section 98(4) of the 1988 Act and will be credited to the revenue account for the year, and financial reserves used to provide for items in Section 31A(2)]

c.  £79,613,897 being the amount by which the aggregate at 5(a) above exceeds the aggregate at 5(b) above calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year.

d.  £1,235.47  being the amount at 5(c) above divided by the amount at 4(a) above, calculated in accordance with Section 31B of the Act, as the basic amount of Council Tax for the year.

[This is the average Council tax including B&NES and parish precepts]

e.  £2,166,497 being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act.

[This is the total of parish precepts]

f.  £1,201.85  being the amount at 5(d) above less the result given by dividing the amount at 5(e) above by the amount at 4(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 for dwellings in those parts of its area to which no special item relates.

[This is the B&NES Council tax only excluding parish precepts]

g.  The amounts given by adding to the amount at 5(f) above the amounts of special items or items relating to dwellings in those parts of the Council's area mentioned above divided in each case by the amount at 4(b) above, calculated by the Council, in accordance with section 34(3) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which one or more special items relate are given at Annex 1 (3).

[Annex 1 (3) gives the Band D Council tax for each area including the parish precepts]

h.  The amounts given by multiplying the amounts at 5(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 are given in Annex 1 (4).

[Annex 1 (4) shows the B&NES and parish Council Tax for all bands.]

Precepting Authorities

11.That it be noted that for the year 2012/13 Avon and Somerset Police Authority met on 8 February 2012 to determine the amount in precepts issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings shown below:-

12.Avon and Somerset Police Authority

Valuation Bands

13.That it be noted that for the year 2012/13 Avon Fire Authority met on 10 February 2012 to determine the amounts in precepts issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of the dwellings shown below:-

14.Avon Fire Authority

Valuation Bands

15.That, having calculated the aggregate in each case of the amounts 7, 9 and 5(h) above, the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992 hereby sets the following amounts as the amounts of Council Tax for the 2012/13 financial year for each of the categories of dwellings shown, as listed in Annex 1 (5).

16.To note that, on average (for a Band D, 2 adult household), the Council Tax for 2012/13 will be as follows:

[Overall annual increase in average Band D Council Tax is £4.64]

17.To agree that the Council’s basic amount of Council Tax for 2012/13 is not determined to be excessive in accordance with principles approved under section 52ZB Local Government Finance Act 1992.

(Notes:

1.  The above motion was carried with 36 Councillors voting in favour, 28 Councillors voting against and no Councillors abstaining from voting.  An adjustment to the wording was suggested on behalf of the Conservative group by Councillor Martin Veal, seconded by Councillor Les Kew, which was accepted by the mover and seconder of the motion.  This wording is incorporated and underlined in paragraph 1 d. of the resolution above.  The General Fund net revenue budget figure in Paragraph 1 a. of the resolution above reflects the adjustment.

2.  An amendment was moved on behalf of the Conservative Group by Councillor Francine Haeberling, seconded by Councillor Tim Warren, to move the recommendations as printed subject to the amendment to  paragraph 4 a. above to add the words “subject to the deletion of the provisionally approved proposal concerning gypsy and traveller sites and an allocation of £1.8 million for provisional approval to enable the delivery of new affordable housing and consideration given to developing initiatives to support first time buyers onto the housing ladder.”  A named vote was taken on the amendment which was not carried, with 36 Councillors voting against and 28 Councillors voting in favour and no absentions:  For -  Councillors Patrick Anketell-Jones, Colin Barrett, Gabriel Batt, Matthew Blankley, Bryan Chalker, Tony Clarke, Sally Davis, Peter Edwards, Michael Evans, Charles Gerrish, Francine Haeberling, Alan Hale, Malcolm Hanney, Lew Kew, Dave Laming, Malcolm Lees, Marie Longstaff, Barry Macrae, Paul Myers, Bryan Organ, Vic Pritchard, Brian Simmons, Kate Simmons, Martin Veal, David Veale, Geoff Ward, Tim Warren, Brian Webber.  Against – Councillors Simon Allen, Rob Appleyard, Sharon Ball, Tim Ball, Cherry Beath, David Bellotti, Sarah Bevan, Lisa Brett, John Bull, Neil Butters, Nicholas Coombes, Paul Crossley, Gerry Curran, Doug Deacon, David Dixon, Paul Fox, Andrew Furse, Ian Gilchrist, Katie Hall, Liz Hardman, Nathan Hartley, Steve Hedges, Eleanor Jackson, David Martin, Loraine Morgan-Brinkhurst MBE, Robin Moss, Doug Nicol, June Player, Manda Rigby, Caroline Roberts, Nigel Roberts, Dine Romero, Will Sandry, Jeremy Sparks, Ben Stevens, Roger Symonds.