The Head of Financial Services will submit a report to the City Executive Board on 11 February which presents the outcome of the budget consultation and seeks agreement to the Council’s medium term financial strategy 2016-17 to 2019-20 and 2016-17 budget.

The draft minutes of the Board will be circulated with the briefing note.

The Leader will move the recommendations and the Head of Financial Services will be available to answer questions.

The published agenda for the City Executive Board contains the original recommendations to Council. The CEB supplement contains amended recommendations updated in light of changes to the settlement and to rent changes for sheltered housing to be considered on 11 February.

The amended recommendations before the City Executive Board are: to recommend Council to

1.    approve the General Fund Budget Requirement of £19.853 million for 2016/17 and an increase in the Band D Council Tax of 1.99% or £5.55 per annum as set out in Table 8 and Appendices 1-4, representing Band D Council Tax of £284.52 per annum. The additional amount of £146k over the four year period to go towards the funding of the Council’s General Fund Capital Programme;

2.    approve the continuance of the Council’s Council Tax Support scheme (formerly council tax benefit) ;

3.    approve the Housing Revenue Account budget for 2016/17 of £43.487 million and a reduction of 1% (£1.06/wk) in social dwelling rents from April 2016 giving a revised weekly average social rent of £104.79 as set out in Appendix 4 for all Council dwellings other than sheltered accommodation. In respect of sheltered accommodation that a rent increase of 0.9% is applied (average £0.88 per week increase) generating an additional income originally proposed of £27,000 for one year to be used in full or in part for improvements in the provision of sheltered accommodation.  Such changes will be subject to the Welfare Reform and Work Bill becoming law and no exemption being granted) but that in the event that an exemption or partial exemption is granted that the rent be increased in accordance with the terms of the exemption or partial exemption subject to notice being given to tenants of the proposed rent increase.  In that event a further report will be made to CEB and Council detailing the consequential effect on the Housing Revenue Account budget;

4.    approve the Capital Programme for 2016-20 as set out in Appendix 6 subject to funding availability from 2017-18 onwards;

5.    approve the fees and charges schedule as set out in Appendix 8; and

6.    delegate to the S151 officer on consultation with the Board Member for Finance, Asset Management and Public Health the decision to determine whether this is financially advantageous for the Council to enter into a Business Rates Distribution agreement as referred to in paragraphs 17-18 in the report.

The City Executive Board will consider these and may make these or alternative recommendations to Council.

Opposition Group alternative budgets and amendments will be circulated with the briefing note.

The procedure  ...  view the full agenda text for item 97

Councillors Goddard and Gotch left the meeting at the start of part b) and before the vote was taken.

Council had before it the report of the Head of Finance to the City Executive Board on 11 February 2016, referring to the appendices to the budget as circulated with that agenda, and the draft minutes of that meeting including seven recommendations.

Council had before it two alternative budget proposals submitted in advance as amendments to the City Executive Board’s budget, with supporting commentary. One set out the proposals of the Liberal Democrat Group, and one set out the proposals of the Green Group.

Councillor Ed Turner, seconded by Councillor Bob Price, moved the City Executive Board recommendations.

a)    Alternative budget proposals

Councillor Fooks, seconded by Councillor Altaf-Khan, moved and spoke to the Liberal Democrat Group alternative budget proposals (circulated with the briefing note).

After debate, these were put to the vote.

With more Councillors voting against than for, the Liberal Democrat Group alternative budget proposals were not carried.

Councillor Hollick, seconded by Councillor Simmons, moved and spoke to the Green Group alternative budget proposals (circulated with the briefing note).

After debate, these were put to the vote.

With more Councillors voting against than for, the Green Group alternative budget proposals were not carried.

b)   Amendment to the City Executive Board budget

Councillor Gant, seconded by Councillor Fooks, moved an amendment submitted in advance: £10,000 pa revenue spending from April 2016 indefinitely to support ESOL (English for speakers of other languages), to provide targeted help for an increasingly vulnerable group, funded by increasing parking charges at Alexandra Courts, Summertown.

The S151 officer confirmed this was feasible.

The Leader of the Council proposed an amendment to this which was accepted by the proposer:

£10,000 pa revenue spending from April 2016 indefinitely both to support ESOL and to provide general language support for refugees (to cover necessary unfunded services such as interpretation and translation including help with medical and legal cases), in order to provide targeted help for an increasingly vulnerable group, funded by increasing parking charges at Alexandra Courts, Summertown.

After debate, this further amendment was put to the vote.

With more Councillors voting for than against, the amendment was carried.

c)    Decision on City Executive Board budget as amended

After debate, the seven recommendations of the City Executive Board including the details of the medium term financial strategy, budget, capital programme, HRA, fees and charges and other matters as set out in the papers for the City Executive Board meeting and with the amendment agreed above, were put to the vote.

In accordance with procedure rules and as required by law a named vote was taken.

For the recommendations from the City Executive Board including the agreed amendment to the budget – Councillors Abbasi, Brown, Clack, Clarkson, Cook, Coulter, Darke, Fry, Haines, Hayes, Henwood, Hollingsworth, Kennedy, Lloyd-Shogbesan, Lygo, Malik, Munkonge, Pegg, Pressel, Price, Rowley, Sanders, Simm, Sinclair, Smith, Tanner, Tarver, Taylor,  ...  view the full minutes text for item 97

The Chair of Finance Panel will submit a report to the City Executive Board on 11 February 2016 which sets out the Finance Panel’s comments and recommendation on the budget (updated version attached here).

The draft minutes of the Board will be circulated with the briefing note.

The Chair of the Finance Panel will present the report and recommendations.

Recommendations: Council is askedto note the report and the City Executive Board’s response set out in the minutes of the meeting of 11 February.

Council considered the report of the Finance Panel submitted to the City Executive Board on 11 February 2016 and the draft minutes of the Board.

The Chair of the Scrutiny Committee presented the report. Using boxes of soup as an illustration he drew Council’s attention to the Council’s gross budget; the proportion of the council’s overall income and expenditure which was not directly scrutinised; and the need to also focus on these elements.

Council noted the report and the City Executive Board’s response set out in the minutes of the meeting of 11 February.

Report of the Head of Financial Services on the soundness of the financial proposals before Council (to follow in the briefing note)

The Head of Financial Services will present the report and recommendations.

Recommendations: Council is recommended to note the report and its implications.

Council considered the report of the Head of Financial Services on the soundness of the financial proposals before it.

The Head of Financial Services presented his report in his capacity as the Council’s S151 officer.

He reported that he had reviewed the alternative proposals submitted as amendments by the Liberal Democrat and Green groups and confirmed these were arithmetically correct and capable of implementation.

The Leader of the Council thanked Financial Services staff for their hard work in preparing the budget and outlined the key budget pressures and uncertainties.

Council noted the report and its implications.

The Head of Financial Services has submitted a report which presents the outcome of the budget consultation and seeks agreement to the Council’s Medium Term Financial Strategy for 2016-20 and 2016-17 Budget for recommendation to Council.

Recommendations: That the City Executive Board resolves to recommend Council to:

a)    approve the General Fund Budget Requirement of £19.784 million for 2016/17 and an increase in the Band D Council Tax of 1.99% or £5.55 per annum as set out in Table 8 and Appendices 1-4, representing a Band D Council Tax of £284.52 per annum;

b)    approve the continuance of the Council’s Council Tax Support Scheme (formerly Council Tax Benefit);

c)    approve the Housing Revenue Account budget for 2016/17 of £43.460 million and a reduction of 1% (£1.06/wk) in social dwelling rents from April 2016 giving a revised weekly average social rent of £104.79 as set out in Appendix 4. (subject to the Welform Reform and Work Bill becoming law and no exemption being granted) but that in the event that an exemption or partial exemption is granted that the rent be increased in accordance with the terms of the exemption or partial exemption subject to: 1) a further report to CEB and Council detailing the effect on the Housing Revenue Account budget and; 2) notice being given to tenants of the proposed rent increase ;

d)    approve the Capital Programme for 2016-20 as set out in Appendix 6 subject to funding availability from 2017-18 onwards;

e)    approve the Fees & Charges schedule as set out in Appendix 8; and

f)     delegate to the Section 151 Officer in consultation with the Board Member for Finance, Asset Management and Public Health the decision to apply for the four year funding settlement and determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 13 and 17-18 below.

Councillor Brown joined the meeting.

The Head of Financial Services submitted a report which presented the outcome of the budget consultation and seeks agreement to the Council’s Medium Term Financial Strategy for 2016-20 and 2016-17 Budget for recommendation to Council.

The Executive Board Member Finance, Asset Management and Public Health presented the report.  He thanked the Scrutiny Finance Panel for their contribution and recommendations. The Board agreed that the involvement of the Scrutiny Finance Panel was a welcome and productive part of the Council’s budgeting process.  He thanked the Head of Financial Services and his team for all their hard work in preparing the budget and noted that they had been accurate in their predictions concerning the Government’s financial settlement.

He informed the Board that the Government’s Final Finance Settlement announcements on 8 February 2016 together with the passage of the Welfare Reform and Work Bill through Parliament had necessitated the changing of two of the recommendations to Council as detailed in the supplementary report submitted to the Board.

In discussion the Board noted the following points:

Settlement Funding Assessment (SFA) – the forced reduction in funding over the period represented a significant challenge and it was to the Council’s credit that services had been safeguarded 

Retained Business Rates – this was an area of significant uncertainty and volatility

Revenue Support Grant four year funding settlement - the opportunity to bid for this funding was welcome but there was no guarantee that the income would be forthcoming. The Executive Board Member Finance, Asset Management and Public Health confirmed that he and the s151 Officer would refer any substantive considerations to the Board.

Capital programme – this would provide some buffer and delay/minimise any immediate adverse impact on the revenue budget; all schemes on the waiting list had been moved to the main capital programme

Efficiency savings – the management and administration reviews had delivered savings in the current year.  There were two areas to consider for future efficiency savings:

·         creating a more sustainable income from exploiting assets and commercial rents

·         encourage the take up of more web-based transactions / payments

The Chair of the Scrutiny Committee presented the Finance Panel’s recommendations on the budget noting that 18 of the 24 recommendations had been accepted. He urged the Board to consider the benefits of adopting a gross budget based approach in the future.  With regard to the remaining 6 recommendations the Board noted the following responses:

·         Recommendation 6 – Agreed in part but noting the environmental and planning considerations.

·         Recommendation 8 – Agreed in part.  The Board agreed in principle but ultimately it was not in the Council’s control.

·         Recommendation 9 – Agreed in part.  The Board agreed in principle but did not think that the examples given were particularly representative of the point at issue.

·         Recommendation 11 – Not agreed. There was no underspend in this area.

·         Recommendation 16 – Not agreed.  The Board would maintain a watching brief and meet its legal obligations.

·         Recommendation 19 – Not agreed. The  ...  view the full minutes text for item 170

Lead Member: Councillor Turner, Executive Board Member for Finance, Corporate Asset Management and Public Health

The Head of Financial Services has submitted a report which presents the Medium Term Financial Strategy 2016-20 and 2016-17 Budget for approval prior to consultation.

Recommendations:  That the City Executive Board resolves to:

1.            Approve the 2016-17 General Fund and Housing Revenue Account budgets for consultation and the General Fund and  Housing Revenue Account Medium Term Financial Plan as set out in  Appendices 1-10 noting:

a)     the Council’s General Fund Budget Requirement of £19.823 million for 2016/17 and an increase in the Band D Council Tax of 1.99% or £5.55 per annum representing a Band D Council Tax of £284.52 per annum;

b)     the continuance of the Council’s Council Tax Support scheme (formerly Council Tax Benefit) as referred to in para 34;

c)     the Housing Revenue Account budget for 2016/17 of £43.460 million and a reduction of 1% (£1.06/wk) in social dwelling rents from April 2016 giving a revised weekly average social rent of £104.79 as set out in Appendix 4;

d)     the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6.

2)    Agree the fees and charges shown in Appendix 8 and the change to concessions as referred to in para 37i(viii);

3)    To note the prioritised list of Capital Schemes that are held in reserve, pending the receipt of further resources, as shown in Appendix 7; 

4)    Delegate to the Section 151 Officer in consultation with the Board Member for Finance and Assets the decision to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 25-26; and

5)    To note the intention of officers to seek an exemption from the requirement to decrease dwelling rents by 1% as referred to in paragraph 44 and the potential changes to the HRA budget.

The Head of Financial Services submitted a report which presented the Medium Term Financial Strategy 2016-20 and 2016-17 Budget for approval prior to consultation.

Cllr Turner, Board Member Finance, Corporate Asset Management and Public Health presented the report and highlighted the following points:

·         The budget had been prepared in the context of the Autumn Statement announcement of a further 24% cut in local government spending

·         the Government was passing the Business Rate risk to local authorities and this was treated as a substantial risk item in later years of the draft budget

·         the expiry of the staff pay settlement was another risk area

·         there were no cuts to front line services

·         the capital programme had been trimmed back but the Council remained committed to all the projects on the reserve list

·         The Housing Revenue Account was the highest risk area as a result of government policy changes and as a result the Council was looking at other alternative options to deliver its commitment to council housing

·         the City Council’s element of the council tax increase was capped at 1.99%

The Head of Financial Services said that this had been a particularly challenging year and that there were still a number of uncertainties in the draft budget. 

The Chief Executive reminded the Board of the scale of recent changes underpinning the Budget.  It was a significant achievement to maintain service levels and the capital programme against a significant reduction in income in recent years.  He commended the work of the Council staff in delivering efficiency savings.  

The Board thanked the Head of Financial Services and his staff for their hard work in preparing the 2016-17 Budget for consultation.

The City Executive Board resolved to:

1.     Approve the 2016-17 General Fund and Housing Revenue Account budgets for consultation and the General Fund and Housing Revenue Account Medium Term Financial Plan as set out in Appendices 1-10 noting:

a)     the Council’s General Fund Budget Requirement of £19.823 million for 2016/17 and an increase in the Band D Council Tax of 1.99% or £5.55 per annum representing a Band D Council Tax of £284.52 per annum;

b)     the continuance of the Council’s Council Tax Support scheme (formerly Council Tax Benefit) as referred to in para 34;

c)     the Housing Revenue Account budget for 2016/17 of £43.460 million and a reduction of 1% (£1.06/wk) in social dwelling rents from April 2016 giving a revised weekly average social rent of £104.79 as set out in Appendix 4;

d)     the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6.

2)    Agree the fees and charges shown in Appendix 8 and the change to concessions as referred to in para 37i(viii);

3)    Note the prioritised list of Capital Schemes that are held in reserve, pending the receipt of further resources, as shown in Appendix 7;

4)    Delegate to the Section 151 Officer in consultation with the Board Member for Finance and Assets the decision to determine whether it is financially advantageous for  ...  view the full minutes text for item 128