Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report which summarized the revised budget for 2018/19 and the Cabinet’s final budget proposals and pay policy statement for 2019/20. Her budget statement is attached in full to these minutes.

The budget was seconded by Councillor Jordan.

The following questions were then raised by Members and responses given:

·         Cheltenham Community Lottery-the Cabinet Member Healthy Lifestyles explained that the council had been receiving advice on this from Aylesbury council and there were now 60 councils nationwide operating a lottery. A technical report on this would be submitted to Cabinet on 5 March setting out how this would operate. The estimate was that it could raise between £90- £100k a year and this would be used for strictly local charitable purposes. The proposal for next year would be for any money raised to be allocated to No Child Left Behind.

·         Budget support reserve-confirmation was received from the Cabinet Member Finance that the total use of this reserve in the proposed budget amounted to £256k. In terms of plans to build the reserve back up again she confirmed that the strategy was to put all windfall into this reserve and this practice would continue until the government had announced its decision on business rates retention.

·         Planned maintenance budget –the Cabinet Member confirmed that this was a rolling programme with works allocated in terms of priority.

Group Leaders were invited to address Council.

Councillor Harman, Conservative group leader thanked the Cabinet Member Finance and all officers for their significant contributions in preparing the budget proposals. He also thanked Paul Jones in his role as S151 Officer for his assistance in working through the conservative group amendments.

He wished to table the following two amendments as laid out below.

Amendment  1

CAPITAL & ONE-OFF

• Reallocate Boots Corner reserve.  Save £1.8m.  
• Invest in repaving the High St.  Cost £1.5m contribution.
• Invest in anti-Loan Sharking campaign with Gloucestershire Credit Union.  Cost £10k.
• Balance to capital reserve

REVENUE

• Move to 4-yearly elections.  Save £35k pa.
• Reduce number of Cllrs to 30.  Save £55k pa.
• Additional recycle bring site collections at peak times of year.  Cost £10k pa.
• Balance and any temporary timing differences to budget reserve shortfall, with intention of using contribution toward part funding future weekly recycling service.  £80k pa.

Amendment 2

• Town Centre Bus/Coach Station
• Cycling hub
• Additional blue badge disabled parking
• Fully pedestrianise High St.  
• Initial project investigation & planning work.  Funded by £250k from Boots Corner reserve.

Speaking to amendment one Cllr Harman highlighted the plight of those vulnerable to loan sharks and believed the £10k one-off funding proposed would, together with the monies allocated by the County Council, assist the Credit Union in providing financial advice to those in difficulties. He then referred to the council’s bring sites being overwhelmed particularly over holiday periods which could be addressed via additional collections at a proposed £10k. He felt that by reducing the cost of democracy i.e reducing the number of Councillors and having four yearly elections would drive efficiencies and  ...  view the full minutes text for item 11

Report of the Cabinet Member Finance - Appendices 2-10 TO FOLLOW

RESOLVED THAT it be recommended to Council to :

1.    Approve the revised budget for 2018/19.

2.    Consider the budget assessment by the Section 151 Officer at Appendix 2 in agreeing the following recommendations.

3.    Approve the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £209.08 for the year 2019/20 (an increase of 2.99% or £6.07 a year for a Band D property), as detailed in paragraphs 4.18 to 4.23.

4.    Approve the growth proposals, including one off initiatives at Appendix 4.

5.    Approve the savings / additional income totalling £1,677,600 and the budget strategy at Appendix 5.

6.    Approve the use of reserves and general balances and note the projected level of reserves, as detailed at Appendix 6.

7.    Note that the Council will remain in the Gloucestershire business rates pool for 2019/20 (paragraphs 4.5 to 4.17).

8.    Approve the recommendations made by the Independent Remuneration Panel (IRP), as detailed in paragraph 5.14.

9.    Approve the Pay Policy Statement for 2019/20, including the continued payment of a living wage supplement at Appendix 9.

10.  Approve the Medium Term Financial Strategy (MTFS) detailed in Section 5 and Appendix 10.

11.  Approve a level of supplementary estimate of £100,000 for 2019/20 as outlined in Section 13.

The Cabinet Member Finance introduced the report and reminded Members that in February 2018 the council set itself a challenge to become an enterprising and commercially focused Council which people were proud to work for and which others wanted to work with, working towards the objective of being financially sustainable by the financial year 2021/22.

In response to the difficult national funding situation, the overriding financial strategy had been, and remained, to drive down the council’s costs. The aim was to hold down council tax as far as possible, now and in the longer term, whilst also protecting frontline services from cuts – an immensely challenging task in the present climate.

The council’s commercial strategy aligned closely with other key strategies including place-making, economic growth, digital transformation, workforce and skills development, investment and asset management which had a combined message that Cheltenham had entered a new era of business enterprise, growth and innovation.  The council wished to work with partners who shared its ambition and values and would continue to put the best interests of Cheltenham residents at the heart of everything.

The commercial strategy sought to bring service costs in line with available funding and seek additional forms of funding. The development of a new crematoria, and the acquisition of 4 new commercial investment properties (Ellenborough House, Sainsbury’s, Café Nero and 53-57 Rodney Road) had already resulted in the over-achievement of the new revenue income target. In addition, Public Realm investment across the Town had enabled the council to attract major new businesses which, has had a positive effect on both business rates income and the vibrancy across the Town.

The Cabinet Member Finance stated that the starting point for the 2019/20 budget was a projected funding gap of £2.019m. The final assessment of the budget gap for 2019/20, based on the detailed budget preparation and the final local government financial settlement was £1.934m.  Closing a gap of this size represented a huge challenge for the council, but the challenge had been met by a proactive approach which had identified efficiencies and additional income of £1.678m, leaving the shortfall balance to be funded from the budget strategy reserve.

As in previous years, the budget for the coming year was the result of a great deal of activity and hard work throughout the year, and the Cabinet Member wished to thank all involved. She believed that this budget would deliver for the residents of the town and therefore sought Cabinet’s approval of the recommendations to Council on 18 February. 

RESOLVED THAT it be recommended to Council to :

1.    Approve the revised budget for 2018/19.

2.    Consider the budget assessment by the Section 151 Officer at Appendix 2 in agreeing the following recommendations.

3.    Approve the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £209.08 for the year 2019/20 (an increase of 2.99% or £6.07 a year for a Band D property), as detailed in paragraphs 4.18 to 4.23.

4.    Approve  ...  view the full minutes text for item 9