Decision - General Fund Revenue Budget & Council Tax 2014/15

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General Fund Revenue Budget & Council Tax 2014/15

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Decision Maker: Policy & Resources Committee (pre 2015), Council

Decision status: Recommendations approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

The annual report setting out the budget and council tax proposals for 2014/15 including details of the savings proposed and the consultation undertaken.

Decisions:

86.1 The Mayor noted that all three budget areas listed as Items 86, 87 and 89, along with Item 88 Supplementary Financial Information, had been fully debated at the previous Budget Council meeting on the 27^th February. She therefore stated that having received notification of two amendments in relation to the General Fund Revenue Budget & Council Tax, she proposed that these should be moved and seconded without any further debate, following which she would put the amendments to the vote prior to moving to the votes on the substantive items. The Mayor then invited Councillor J. Kitcat to propose the Administration’s budget for 2014/15, along with the Green Group’s amendment.

86.2 Councillor Kitcat stated that he wished to thank all the officers involved in enabling the council to reach the current position and to be able to consider the budget proposals for 2014/15. He stated that he wished to move an amendment on behalf of the Green Group which would enable a council tax increase of 4.75% and trigger a referendum. The council faced a very difficult situation having previously approved a council tax freeze last year; it could only increase council tax by 1.99% without having to hold a referendum. However, that was not sufficient to enable the services expected by residents to be maintained and supported and would result in significant changes to how services were provided should the council decide not to accept the Green amendment. He believed that a decision to increase council tax by 4.75% would stimulate debate and enable an open and honest discussion to be held so that residents could then take a democratic decision. He also hoped that the parties represented on the council would be able to come together for the benefit of the city and work together towards next year’s budget which was likely to be an even more difficult process.

86.3 Councillor Davey formally seconded the amendment.

86.4 The Mayor then invited Councillor J. Kitcat to move the joint Green, Conservative and Labour & Co-operative Groups’ amendment.

86.5 Councillor Kitcat formally moved the joint amendment and stated that he was pleased to see that the three Groups had been able to come to a consensus for the amendment.

86.6 Councillor G. Theobald formally moved and seconded the joint amendment and stated that the Conservative Group could not support the Green Group’s amendment. The Conservative Group believed that a council tax freeze could be achieved and with it services provided to meet the needs of the city. He did not believe that a referendum would result in support for a council tax increase and noted that the government grant of £1.2m would be built into future grant provision should a council tax freeze be approved. He therefore wished to urge the council to approve a council tax freeze.

86.7 Councillor Morgan formally moved and seconded the joint amendment and noted that there had been a great deal of time spent on debating the merits of a council tax freeze and an increase. He hoped that an agreement would be reached at the present meeting and an increase of 1.99% approved as it was the right thing to do.

86.8 The Mayor then asked for the electronic voting system to be activated and put the Green amendment to the vote.

	For	Against	Abstain		For	Against	Abstain
Barnett		X		Marsh		X
Bennett		X		Meadows		X
Bowden	?			Mears		X
Brown – absent				Mitchell		X
Buckley	?			Morgan		X
Carden		X		A Norman		X
Cobb		X		K Norman		X
Cox		X		Peltzer Dunn		X
Daniel		X		Phillips	?
Davey	?			Pidgeon – absent
Deane	?			Pissaridou		X
Duncan	?			Powell	?
Farrow		X		Randall	?
Fitch		X		Robins		X
Gilbey		X		Rufus	?
Hamilton		X		Shanks	?
Hawtree	?			Simson		X
Hyde		X		Smith		X
Janio		X		Summers	?
Jarrett	?			Sykes	?
Jones - absent				C Theobald		X
Kennedy - absent				G Theobald		X
A Kitcat	?			Wakefield	?
J Kitcat	?			Wealls		X
Lepper		X		Wells		X
Littman - absent				West	?
MacCafferty	?			Wilson		X

				Total	19	30

86.9 The Mayor confirmed that the motion had been lost by 19 votes to 30 votes.

86.10 The Mayor then put the Green, Conservative and Labour & Co-operative Groups’ joint amendment to the vote.

	For	Against	Abstain		For	Against	Abstain
Barnett	?			Marsh	?
Bennett	?			Meadows	?
Bowden	?			Mears	?
Brown - absent				Mitchell	?
Buckley	?			Morgan	?
Carden	?			A Norman	?
Cobb	?			K Norman	?
Cox	?			Peltzer Dunn	?
Daniel	?			Phillips	?
Davey	?			Pidgeon - absent
Deane	?			Pissaridou	?
Duncan	?			Powell	?
Farrow	?			Randall	?
Fitch	?			Robins	?
Gilbey	?			Rufus	?
Hamilton	?			Shanks	?
Hawtree	?			Simson	?
Hyde				Smith	?
Janio	?			Summers	?
Jarrett	?			Sykes	?
Jones - absent				C Theobald	?
Kennedy - absent				G Theobald	?
A Kitcat	?			Wakefield	?
J Kitcat	?			Wealls	?
Lepper	?			Wells	?
Littman - absent				West	?
MacCafferty	?			Wilson	?

				Total	49	0	0

86.11 The Mayor confirmed that the amendment had been carried by 49 votes to 0 votes.

86.2 The Mayor then put the recommendations affecting the General Fund and Revenue Budget 2014/15 as amended to the vote.

	For	Against	Abstain		For	Against	Abstain
Barnett		X		Marsh	?
Bennett		X		Meadows	?
Bowden	?			Mears		X
Brown - absent				Mitchell	?
Buckley			Ø	Morgan	?
Carden	?			A Norman		X
Cobb		X		K Norman		X
Cox		X		Peltzer Dunn		X
Daniel	?			Phillips		X
Davey	?			Pidgeon - absent
Deane	?			Pissaridou	?
Duncan		X		Powell			Ø
Farrow	?			Randall	?
Fitch	?			Robins	?
Gilbey	?			Rufus	?
Hamilton	?			Shanks	?
Hawtree	?			Simson		X
Hyde		X		Smith		X
Janio		X		Summers	?
Jarrett			Ø	Sykes	?
Jones – absent				C Theobald		X
Kennedy – absent				G Theobald		X
A Kitcat	?			Wakefield		X
J Kitcat	?			Wealls		X
Lepper	?			Wells		X
Littman - absent				West	?
MacCafferty		X		Wilson	?

				Total	26	20	3

86.3 The Mayor confirmed that the motion had been carried by 26 votes to 20 votes with 3 abstentions.

86.4 RESOLVED:

(1) That the core elements of the 2014/15 General Fund Revenue Budget proposals contained in the body of this report which have been based on a threshold council tax increase, subject to recommendation (4) below, be approved, including (i) – (ix) and the amended resolution (x) below:

(i) The 2014/15 budget allocations to services as set out in appendix 1.

(ii) The council’s net General Fund budget requirement for 2014/15 of £225.3m.

(iii) The budget savings package as set out in appendix 4.

(iv) The contingency budget of £4.37m as set out in table 8.

(v) The reserves allocations as set out in paragraph 3.39 and table 6.

(vi) The borrowing limit for the year commencing 1 April 2014 of £380m.

(vii) The annual Minimum Revenue Provision statement as set out in appendix 10.

(viii) The Prudential Indicators as set out in appendix 11 to this report.

(ix) The proposed responses to the scrutiny recommendations as set out in appendix 16.

(x)

BUDGET COUNCIL 5 MARCH 2014 - AMENDED RESOLUTION

General Fund Revenue Budget 2014/15

Formal Council Tax Resolution

1	That it be noted that at on 16 January 2014 the Council calculated the Council Tax Base 2014/15
(a)	for the whole Council area as 81,359.20 (Item T in the formula in Section 31B of the Local Government Finance Act 1992 (the "Act")); and

(b)	for dwellings in those parts of its area to which special items relate: -

	Rottingdean Parish – 1,467.50

	Hanover Crescent Enclosure – 40.70

	Marine Square Enclosure – 65.40

	Royal Crescent Enclosure – 30.10

2	Calculate that the Council Tax requirement for the Council's own purposes for 2014/15
	(excluding Parish precepts) is				£106,816,000

3	That the following amounts be calculated for the year 2014/15 in accordance with Sections 31 to
	36 of the Act:


(a)	£719,403,474		being the aggregate of the amounts which the Council estimates for the items
	set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish
	Councils.

(b)	£612,545,549		being the aggregate of the amounts which the Council estimates for the items
	set out in Section 31A(3) of the Act.

(c)	£106,857,925		being the amount by which the aggregate at 3(a) above exceeds the aggregate
	at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

(d)	£1,313.41		being the amount at 3(c) above (Item R), all divided by Item T (1(a) above),
	calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts)

(e)	£67,490	being the aggregate amount of all special items referred to in Section 34(1) of the Act

(f)	£1,312.58		being the amount at 3(d) above less the result given by dividing the amount at
	3(e) above by Item T (1(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 items relates

(g)	Parts of the Council's area
	£1,341.15		Rottingdean Parish

	£1,492.85		Hanover Crescent

	£1,479.20		Marine Square

	£1,556.13		Royal Crescent

	being the amounts given by adding to the amount at 3(f) above the amounts of the special item or items relating to dwellings in those parts of the Council's area mentioned above divided in each case by the relevant amount at 1(b) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its council tax for the year for the dwellings in those parts of its area to which one or more special items relate




Valuation Band:			A*	A	B	C	D	E		F		G		H
Parts of the Council's area			£	£	£	£	£	£		£		£		£
Rottingdean Parish			745.08	894.10	1,043.12	1,192.13	1,341.15	1,639.18		1,937.22		2,235.25		2,682.30
Hanover Crescent			829.36	995.23	1,161.11	1,326.98	1,492.85	1,824.59		2,156.34		2,488.08		2,985.70
Marine Square			821.78	986.13	1,150.49	1,314.84	1,479.20	1,807.91		2,136.62		2,465.33		2,958.40
Royal Crescent			864.52	1,037.42	1,210.32	1,383.23	1,556.13	1,901.94		2,247.74		2,593.55		3,112.26
All other parts of the the councils area			729.21	875.05	1,020.90	1,166.74	1,312.58	1,604.26		1,895.95		2,187.63		2,625.16
* Entitled to disabled relief

4	To note that the Police and Crime Commissioner and the Fire Authority have issued precepts to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each category of dwellings in the Council's area as indicated in the table below.

Band:		A*	A	B	C	D	E	F		G		H
Sussex Police & Crime Commissioner		78.40	94.08	109.76	125.44	141.12	172.48	203.84		235.20		282.24
		* Entitled to disabled relief

Band:		A*	A	B	C	D	E	F		G		H
East Sussex Fire Authority		46.36	55.63	64.91	74.18	83.45	101.99	120.54		139.08		166.90
		* Entitled to disabled relief

5	That the Council, in accordance with Section 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2014/15 for each part of its area and for each of the categories of dwellings.

Valuation Band:			A*	A	B	C	D	E	F		G		H
Parts of the Council's area			£	£	£	£	£	£	£		£		£
Rottingdean Parish			869.84	1,043.81	1,217.79	1,391.75	1,565.72	1,913.65	2,261.60		2,609.53		3,131.44
Hanover Crescent			954.12	1,144.94	1,335.78	1,526.60	1,717.42	2,099.06	2,480.72		2,862.36		3,434.84
Marine Square			946.54	1,135.84	1,325.16	1,514.46	1,703.77	2,082.38	2,461.00		2,839.61		3,407.54
Royal Crescent			989.28	1,187.13	1,384.99	1,582.85	1,780.70	2,176.41	2,572.12		2,967.83		3,561.40
All other parts of the the councils area			853.97	1,024.76	1,195.57	1,366.36	1,537.15	1,878.73	2,220.33		2,561.91		3,074.30
* Entitled to disabled relief

6	Pursuant to Section 52ZB of the Local Government Finance Act 1992 the Council
	determines that its relevant basic amount of council tax for the financial year 2014/15 is not excessive as measured against the principles determined by the Secretary of State pursuant to section 52ZC of the 1992 Act.

(1) That the Equalities Impact Assessments set out in Appendix 13 to the report be noted;

(2) That the revised Medium Term Financial Strategy and resource projections for 2014/15 to 2019/20 as set out in appendix 8 to the report be noted;

(3) That it be noted that supplementary information needed to set the overall council tax will be provided for the budget setting Council as listed in paragraph 4.4 of the report; and

(4) That for the purposes of enacting the Business Rates discount and relief changes announced in the government’s Autumn Statement 2013, delegated authority be granted to the Executive Director of Finance & Resources to design and administer the scheme in accordance with government guidelines as set out in paragraph 3.17 of the report.

Report author: Mark Ireland

Publication date: 10/04/2014

Date of decision: 05/03/2014

Decided at meeting: 05/03/2014 - Council

Accompanying Documents:

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