Agenda and minutes
- Attendance details
- Agenda frontsheet PDF 167 KB
- Agenda reports pack
- Supplementary item for Cabinet - Consultation Responses PDF 232 KB
- Supplementary Item for Cabinet - Revenue Budget Appendices PDF 272 KB
- Updated Budget report 2019-20 Cabinet 11 February 2019 Post Cabinet Version PDF 1 MB
- Printed minutes PDF 81 KB
Venue: Town Hall, Queens Road, Hastings TN34 1QR
Contact: Coral Harding on 01424 451764 email email@example.com
Items No. Item
Apologies for Absence
Apologies for absence were noted for Councillor Fitzgerald
Declaration of Interests
153. (recommendation 15)
Prejudicial- he has a car park season ticket
Minutes of Last Meeting
RESOLVED – that the minutes of the meeting held on 4th February 2019 be approved as a true record
- Enc. 1 for Draft Corporate Plan 2019/20 , item 152. PDF 2 MB
- Draft corporate plan and budget 2019 consultation responses post report publication110219 , item 152. PDF 73 KB
Draft Corporate Plan 2019/20
The members were informed that there was a Supplementary sheet to go with this itemdetailing the consultation responses received since the closure of the consultation on Friday 8th February.
The Director of Corporate Services and Governance presented a report to present the draft corporate plan 2019/20, together with feedback from the public consultation. The draft plan showed the key programmes for the coming year. These are categorized differently to last year, i.e. they are set out as our ‘Must Dos and our ‘Choose to dos’. The report also includes the performance indicators, the targets for 19/20 will be agreed in June.
Councillor Forward proposed approval of the recommendations of the report. This was seconded by Councillor Rogers.
It was confirmed that the East Sussex figure in the diagram does include Hastings. Members thanked officers for their hard work and help with this report.
RESOLVED (5 for 2 against) that:
1. That the Cabinet recommends to the Full Council, that the content of the attached documents, including the supplementary papers, form the basis of the council’s corporate plan 2019/20, subject to the proviso that any significant amendment made to the council’s draft budget be reflected in the final corporate plan text.
2. That delegated authority be given to the Director of Corporate Services and Governance, after consultation with the Leader of the Council to make further revisions as is considered necessary to the attached plan prior to publication to reflect decisions made on the council’s budget.
3. That all those who submitted views as part of the consultation process be thanked for their contributions
The reason for this decision was:
The council needs to approve the corporate plan as its statement of Hastings Borough Council’s strategic direction.
- Appendix A (continued) , item 153. PDF 70 KB
- Appendix M (cont) , item 153. PDF 51 KB
- Updated Budget Report 2019-20 - Cabinet 11 February 2019 post cabinet version , item 153. PDF 959 KB
Revenue Budget 2018/19 Revised and 2019/20, plus Capital
programme 2019/20 - 2021/22
The Assistant Director - Financial Services & Revenues (Chief Finance Officer) presented a report:
To present the revised revenue budget for 2018/19 and a budget for 2019/20. The revised budget for 2018/19 takes account of the known variations to expenditure and income streams that have occurred since setting the budget in February 2018.
Mr Grace explained that in setting the budget for 2019/20, recognition has to be taken of the ongoing reductions in external funding for the years ahead. The report identifies that a balanced budget can be achieved in 2019/20 although this involves using £1.75m of reserves. The forecast deficit for 2020/21 is some £2.44m, in 2021/22 it is estimated at £1.79m, and in 2022/23 it is estimated at £1.9m. The alignment of the Council's available resources to its priorities requires the achievement of additional income streams and the continuing review and reduction of services during the next 12 months in order to achieve balanced and sustainable budgets in the years beyond. The levels of reductions required and the near absence of Transition Reserves in future years provide an enormous challenge.
The Full Council meeting on the 20 February 2019 is responsible for setting a balanced budget and determining the Council Tax. If the recommendations in the report are approved by Council there will be an increase in the Borough’s part of the Council Tax in 2019/20 of some 2.99%.
The final grant settlement figures from government have now been received and match the figures in the consultation document (save for Discretionary Housing Payments). The figures for Disabled Facility Grants are not expected until well into 2019/20. Once final figures are received adjustments will be made to the figures detailed in this report.
The Chief Finance Officer outlined the key challenges identified in the report and the key risks facing the Council in addressingthe deficit in 2019/20 and the years ahead. He also advised that the budget figures could change if the Council Tax Reduction scheme being considered by Council on the 13 February 2019 was altered.He further advised that the Fire Authority had not yet determined their precept requirements and as such the overall Council Tax requirements would result in revised figures being presented to full Council on the 20 February i.e. a revised Appendix M to the budget report.
Cllr Chowney moved the motion (apart from 15 due to prejudicial interest). Councillor Batsford seconded.
RESOLVED (5 for 2 against) that:
Cabinet recommends that full Council:-
1. Approve the revised revenue budget for 2018/19 (Appendix A).
2. Approve the draft 2019/20 revenue budget (Appendix A)
3. Approve a 2.99% (rounded up) increase in the Borough Council's part of the Council Tax.
4. Agree that the absolute minimum level of reserves that shall be retained be £6m (plus General Fund Balance).
5. Approve the Capital Programme 2018/19 (revised) to 2021/22 (Appendix P).
6. Approve the proposed expenditure from the Renewal and Repairs Reserve, and Information Technology ... view the full minutes text for item 153.
- Treasury Managment Strategy 2019-20 - Cabinet 11 Feb 2019 , item 154. PDF 856 KB
- Capital Strategy -19-20 , item 154. PDF 440 KB
The Chief Finance Officer presented a report to consider the draft Treasury Management Strategy, Annual Investment Strategy, Minimum Revenue Provision (MRP) Policy and Capital Strategy. These documents set out the arrangements to ensure that there is an effective framework for the management of the Council's investments, cash flows and borrowing activities prior to the start of the new financial year.
The Council has some £46.7 million of debt (as at 1 January 2019), and investments which can fluctuate between £15m and £30m in the year. The level of debt is set to increase to some £78m by 2020/21. No changes to current borrowing limits were being proposed at present. The one significant change proposed was to expand the investment strategy to include an investment of £3m within a Diversified Income Fund.
The Chief Finance Officer explained that the Capital Strategy is a new requirement, and it is likely the Council will be asked to agree a revised one later in 2019/20 once the councils development plans are further advanced, and the borrowing requirements and timings are clarified.
Councillor Chowney thanked Mr Grace and his team for all the work which has gone into preparing these strategies.
Councillor Chowney proposed approval of the recommendations of the report. This was seconded by Councillor Batsford. It was agreed that recommendation 1 be separated from 2, 3 and 4 for the purposes of voting.
RESOLVED (5 for, 2 against) that:
1. The Council approve the Treasury Management Strategy, Minimum Revenue Provision (MRP) Policy, Annual Investment Strategy, and the Capital Strategy.
RESOLVED (Unanimously) that:
2. That the strategies be updated as necessary in 2019/20 in the light changing and emerging risks, the Council’s evolving future expenditure plans, along with further expected guidance on the Codes of Practice and government regulations.
3. That the Financial rules and the Financial Operating Procedures of the Council are reviewed and revised (as necessary) to meet the new requirements of the Code.
4. That the Investment Policy includes the use of CCLA’s Diversified Income Fund with a limit of up to £3m being invested within it (£5m in total with CCLA).
The reason for this decision was:
The Council seeks to minimise the costs of borrowing and maximise investment income whilst ensuring the security of its investments. The Council continues to make substantial investments in commercial property, housing and energy generation initiatives, and this will continue to involve the Council in taking on additional borrowing.
The sums involved are significant and the assumptions made play an important part in determining the annual budget. The CIPFA Code of Practice (2017 Edition), adopted by the Council last year, was released to take account of the more commercialised approach being adopted by councils and the enhanced levels of transparency required. The Code represents best practice and helps ensure compliance with statutory requirements.
The Council has the ability to diversify its investments and must consider carefully the level of risk against reward against a background still of historically low interest rates. Investments can ... view the full minutes text for item 154.