The Head of Finance has submitted a report, which presents the Council’s Medium Term Financial Strategy for 2013/14 to 2016/17 and the Council’s 2013/14 Budget.

This report was submitted to the City Executive Board on 13^th February 2013. An extract from the minutes of this meeting is attached.

Liberal Democrat Group alternative budget proposals.

Green Group alternative budget proposals.

Council is asked to:

(a)       Approve the Council’s General Fund Budget Requirement of £25,027k for 2013/14 and in doing so approves an increase in the Band D Council Tax of 1.99% or £5.23 per annum representing a Band D council tax of £268.19 per annum;

(b)       Approve the Council’s General Fund Medium Term Financial Strategy for 2013-14 to 2016-17 and indicative budgets as set out in Appendices 1-5 attached;

(c)        Approve the Housing Revenue Account budget for 2013/14 as set out in Appendix 5 and in doing so approves an increase in average dwelling rent of 4.62% (£4.27 per week) resulting in an annual average rent of £96.83;

(d)       Approve the Capital Programme for 2013/14 -2016-17 as set out in Appendix 6;

(e)       Approve the Fees and Charges schedule as set out in Appendix 7;

(f)         Approve the level of exemptions and discounts on empty homes and unoccupied properties as outlined in para 20-21 of the report.

Council had before it the following (previously circulated, now appended):

(1)       Report of the Head of Finance;

(2)       Extract from the minutes of the City Executive Board held on 13^th February 2013;

(3)       Liberal Democrat Group amendments;

(4)       Green Group amendments.

Councillor Ed Turner, seconded by Councillor Bob Price, moved and spoke to the Administration’s budget.

Councillor Jean Fooks, seconded by Councillor Jim Campbell, moved and spoke to the Liberal Democrat Group alternative budget.

Nigel Kennedy, Head of Finance made the following comments on the Liberal Democrat Group alternative budget.

“I have reviewed the alternative budget submitted by the Liberal Democrat Group to Council on 18^th February and I confirm that the budget does balance and could be implemented. The strategy makes use of a £100k reduction in contingencies to use for one-off expenditure. The Council would normally review all such contingencies at year end and whilst the reduction only represents a 1% reduction in forecast contingencies, my Section 151 report on the Adequacy of Reserves and Balances does take into account budgeted contingencies and therefore there is a degree of risk, albeit limited, should these contingencies drop below this recommended level.”

Councillor Michael Gotch, seconded by Councillor Jean Fooks, moved an amendment to the Liberal Democrat Group alternative budget as follows to appendix 7 of the Medium Term Financial Strategy, relating to car park charges:

Following the introduction by the County Council of a Controlled Parking Zone around Cutteslowe Park, a review within 12 months of the effectiveness or not of the CPZ may encourage the introduction in the Cutteslowe car parks of a zero parking charge for 1 hour – thus reducing on street parking even more – funded by increasing the parking charges at Alexandra Courts to the same level as most car parks around the City.  Tennis Club members should continue to be able to buy season tickets.

Nigel Kennedy, Head of Finance made the following comments on the Green Group alternative budget.

“I have reviewed the alternative budget submitted by the Green Group to Council on 18^th February 2013 and I confirm that the budget does balance and could be implemented.  The strategy makes use of forecast underspends on the General Fund Revenue Account as reported to Members based on the November 2012 monitoring position, in the order of £1.5 million at the end of 2012/13.  There is a degree of risk in this strategy since it relies on surpluses which have yet to be achieved and won’t be known for certain until May 2013 and there is an opportunity cost of alternative use of those underspends which Council may wish to consider at year end, such as establishing a contingency to protect against shortfalls in Retained Business Rate income.  However, notwithstanding this it is acknowledged that the alternative budget presented by the Green Group does de-risk this position by including items of expenditure which are one-off in nature and could be reined back should these surpluses not materialise.”

Councillor Craig Simmons, seconded by Councillor David Williams, moved and spoke to the Green Group alternative budget.

Following a debate, Council voted on the Liberal Democrat Group’s amendments and the Green Group’s amendments, but these were not carried.

Councillor Craig Simmons, seconded by Councillor David Williams, moved and spoke on a Green Group amendment to reduce the contingency amount in Year one by £100k and to use this money in year one as follows:

ESOL - £20k

Ward spend (increased by £1k per Councillor - £48k

Cowley Road Carnival - £12k

Neighbourhood Planning - £20k

Following a debate, Council voted and the Green Group’s amendment was not carried.

Councillor Jean Fooks, seconded by Councillor Craig Simmons moved and spoke on a joint Liberal Democrat/Green Group’s amendment to reduce the contingency amount in year one by £100k and to use this money to repair potholes and undertake cycle safety work.

Following a debate, Council conducted a named vote as follows:

Councillors voting in favour of the amendment: Armitage, Altaf-Khan, Benjamin, Brett, Campbell, Fooks, Goddard, Gotch, Hollick, Jones, McCready, Royce, Simmons, Wilkinson, Williams and Wolff.

Councillors voting against the amendment: Abbasi, Sinclair, Bance, Baxter, Canning, Clack, Clarkson, Cook, Coulter, Curran, Darke, Fry, Humberstone, Kennedy, Shah Khan, Lloyd-Shogbesan, Lygo, Malik, Pressel, Price, Rowley, Sanders, Seamons, Tanner, Turner and Van Nooijen.

The amendment was not carried as more voted against than for.

Council voted upon the City Executive Board’s recommendations and these were carried.

The full decision of Council on the Council’s Budget 2013/14 is set out below to:

(a)       Approve the Council’s General Fund Budget Requirement of £25,027,000 for 2013/14 and in doing so to approve an increase in the Band D Council Tax of 1.99% or £5.23 per annum representing a Band D Council Tax of £268.19 per annum;

(b)       Approve the Council’s General Fund Medium Term Financial Strategy for 2013-14 to 2016-17 and indicative budgets as set out in Appendices 1-5 of the report;

(c)        Approve the Housing Revenue Account budget for 2013/14 as set out in Appendix 5 to the report and in doing so to approve an increase in average dwelling rent of 4.62% (£4.27 per week) resulting in an annual average rent of £96.83;

(d)       (i)         Approve the Capital Programme for 2013/14 -2016-17 as set out        in Appendix 6 to the report;

            (ii)        To vire £65,000 from underspends in the current year’s Capital                         Programme for the purpose of providing and improving                             floodlights, seating and dugouts at the Oxford City Football                                  Club’s stadium at Court Place Farm;

(e)       Approve the Fees and Charges schedule as set out in Appendix 7 to the report;

(f)         Approve the level of exemptions and discounts on empty homes and   unoccupied properties as outlined in paragraphs 18-19 of the report.