Agenda for Policy & Resources
Committee.
Councillors Wainwright (in the Chair), Acomb, Arnold, Aslett, Mrs Burr, Cottam, Keal, and Knaggs.
Substitutes: Councillor Mrs Cowling (for Councillor Legard), Councillor Hemesley (for Councillor Maud)
Councillors Andrews, Mrs Arnold, Clark, Cussons, Mrs De Wend Fenton, Hope, Jackson, Raper, Mrs Shields, Ms Warriner, Windress and Woodward.
T Anderson, Ms J Baldwin, P Cresswell, G Housden, Mrs M Jackson, Mrs A Lightfoot, Miss J Waggott and A Winship
363. Apology for Absence
Apologies for absence were received from Councillors Legard and Maud.
364. Urgent Business
The Chairman reported that there were no items to be considered at the meeting as a matter of urgency by virtue of Section 100B(4)(b) of the Local Government Act 1972.
365. Declarations of Interest
In accordance with the Members’ Code of Conduct the following declarations of interest were made:
Councillor Andrews declared a personal non prejudicial interest in item 4 Annex A on the agenda as he regularly has meetings with local businesses and also a personal interest in item 4 Annex A (Appendix C) in relation to the Milton Rooms.
Councillor Cottam declared a personal interest in item 4 Appendix C on the agenda as he is a member of the Milton Rooms Management Committee.
Councillor Mrs Cowling declared a prejudicial interest in item 4 Appendix C on the agenda as an owner of property which is subject to flooding.
Part ‘A’ items - Matters to be dealt with under delegated powers or matters determined by Committee.
There were no items to be dealt with under the Committee’s delegated powers.
Part ‘B’ items - Matters referred to Council
366. Financial Strategy 2009/2010
The Corporate Director (s151) Officer submitted a comprehensive report (previously circulated), which set out a revised budgetary position for 2008/09, the budget for 2009/10, a proposed Council Tax level, details of balances and reserves and the indicators under the Prudential Code for capital finance as required by the Local Government Act 2003.
The Budget had been prepared in accordance with the Budget Strategy agreed by this Committee on 4 October 2008 within the following parameters
(i) Council Tax Increase not to exceed 4%;
(ii) Increases in Fees and Charges to be not less than 4%;
(iii) Only essential unavoidable growth bids to be considered;
(iv) A Corporate Efficiency Programme to be prepared and presented to the Resources Working Party.
The report detailed the following:
To ensure that the Council maintained a healthy financial standing, significant efficiency gains will need to be made in the coming years. This is perhaps the most significant challenge facing the Council over the next 4-5 years. It is unlikely that the Government’s next Comprehensive Spending review will provide significant additional funds for the Council and efficiency targets will continue to be imposed as will low Council Tax increases. The Council’s approved capital programme and in particular the approved investment in IT over the next 4 years will underpin the change agenda and provide the bulk of efficiencies.
Members’ comments at the Budget Briefing had been taken into account and the budget proposed was below the 4% maximum set by the Policy & Resources Committee. The budget can be delivered with a 3.5% increase in Council Tax without the need for cuts to services other than the withdrawal of the plastics recycling scheme (£21,500) and a relatively small reduction in grant spend (£25,000).
Sample research from the Local Government Association had indicated an average increase nationally was projected to be around 3.5%. Should Members wish to set an increase below the recommended 3.5%, for every additional 1% reduction savings of £36,000 will be required. The Government had restated that they expected increases to be substantially below 5%.
Members discussed the report in detail.
It was moved by Councillor Knaggs and seconded by Councillor Keal that the officer’s recommendation be moved with the following amendment to part (b), as follows:
“(b) approve a Revenue Budget for 2009/10 of £8,146,050 which represents a 3% increase in the Ryedale District Council Tax to £177.58 for a band D property (note that total Council Tax, Including the County Council, Fire and Police is covered within the separate Council Tax setting report to Full Council) to be financed from additional grant income (£8,000) and the deletion of the Programme Manager post (£10,000);”
An amendment was then moved by Councillor Mrs Burr and seconded by Councillor Aslett that the increase be reduced to 2.5% to be financed from savings from within staffing budgets.
Upon being put to the vote this amendment was lost.
The motion was then put to the vote and carried.
Resolved
The Policy & Resources Committee makes the following recommendations to Full Council:
(a) That the Council’s Financial Strategy be agreed which includes:
(i) the prudential indicators;
(ii) the revised capital programme for 2009-2013;
(iii) Savings/efficiency proposals totalling £461,000
(iv) Investment in priorities of £197,000
(b) a Revenue Budget for 2009/10 of £8,146,050 which represents a 3% increase in the Ryedale District Council Tax to £177.58 for a band D property (note that total Council Tax, Including the County Council, Fire and Police is covered within the separate Council Tax setting report to Full Council) to be financed from additional grant income (£8,000) and the deletion of the Programme Manager post (£10,000) be agreed and submitted to Council;
(c) that the Special Expenses amounting to £42,540 be approved and submitted to Council.
367. Treasury Management Strategy Statement and Annual Investment Strategy for 2009-10
The Corporate Director (s151) submitted a report (previously circulated) the purpose of which was to consider the Treasury Management and Annual Investment Strategy, consider the MRP Policy, set the Prudential Code Indicators for 2009/10 and to update Members on current investments.
The Treasury Management Strategy Statement detailed the expected activities of the Treasury function in the forthcoming financial year 2009/10. The production and submission of the Strategy to Council, following consideration by the Policy & Resources Committee, was a requirement of the CIPFA Code of Practice on Treasury Management.
The Annual Investment Strategy detailed the Specified and Non-Specified Investment Instruments to be used by the Council and any fund managers in 2009/10. Approval was also sought for the specified use of credit ratings and the maximum periods for which funds may be prudently committed in each asset category.
The Prudential Code required the Council to set a number of Prudential Indicators, and these were to be considered when determining the Council’s Treasury Management Strategy. The suggested strategies for 2009/10 were based upon advice from the Council’s treasury advisors, Sector. The treasury management investment position as at 31 December 2008 was included in the report for information.
Members discussed the report in some detail.
Resolved
That the report be received and that the Treasury Management and Investment Strategies be noted and recommended to Council for approval, and that the Prudential Code Indicators in the report also be recommended to the Council for approval.