Agenda and minutes

(Budget), Council
Wednesday, 27th February, 2019 6.00 pm

Venue: Council Chamber, Civic Centre, Oldham, West Street, Oldham, OL1 1NL. View directions

Contact: Liz Drogan 

Items
No. Item

1.

To receive apologies for absence

Minutes:

Apologies for absence were received from Councillors G. Alexander, Curley, Harkness, Larkin, Rehman and Turner.

2.

To receive communications relating to the business of the Council

Minutes:

The Mayor made reference to the recent death of former Councillor Glynis Shaw. Councillors Hudson, Ur-Rehman and Sykes paid tribute to the work of former Councillor Shaw.

 

Council held a minute’s silence.

3.

To receive declarations of interest in any matter to be determined at the meeting

Minutes:

The Mayor informed the meeting that the Standards Committee had granted a dispensation to allow members who had an interest arising from ownership or occupation of property in Oldham, to participate and vote on the setting of the Council tax and matters directly related to such decisions including the budget calculations.  All members declared a pecuniary interest in Item 4 – Budget Proposals, but the dispensation was applicable allowing Members to participate and vote on Item 4.

 

In accordance with the Code of Conduct, the following Councillors declared an interest in Item 4 as indicated:

 

Councillor C. Gloster declared a pecuniary interest by virtue of his employment by Greater Manchester Police.

Councillor H. Gloster declared a pecuniary interest by virtue of her husband’s employment by Greater Manchester Police.

Councillor E. Garry declared a pecuniary interest by virtue of her husband’s employment by Greater Manchester Police.

Councillor Chauhan declared a personal interest by virtue of his appointment to the MioCare Board.

Councillor Heffernan declared a personal interest by virtue of his appointment to the MioCare Board.

Councillor F. Hussain declared a personal interest by virtue of his appointment to the MioCare Board.

Councillor M. Bashforth declared a personal interest by virtue of her appointment to the MioCare Board.

Councillor Cosgrove declared a personal interest by virtue of her being a tenant of First Choice Homes Oldham.

Councillor Hudson declared a personal interest by virtue of his belng elected to Saddleworth Parish Council.

Councillor Sheldon declared a personal interest by virtue of his belng elected to Saddleworth Parish Council.

Councillor Byrne declared a personal interest by virtue of her belng elected to Saddleworth Parish Council.

 

4.

To note the Minutes of the Budget Cabinet Meeting held on the 11th February 2019 and to consider the recommendations of Cabinet in relation to the Budget for 2019/20 further to the following attached reports: pdf icon PDF 220 KB

a)    Housing Revenue Account Estimates for 2019/20 to 2023/24 and Proposed Outturn for 2018/19

 

b)    Capital Strategy and Capital Programme 2019/20 to 2023/24

 

c)     Treasury Management Strategy Statement 2019/20

 

d)    Statement of the Chief Financial Officer on Reserves, Robustness of Estimates and Affordability and Prudence of Capital Investments

 

e)    Council Tax Reduction Scheme 2019/20

 

f)      Revenue Budget 2019/20 and Medium Term Financial Strategy 2019/20 to 2023/24

 

g)    Liberal Democrats Budget Amendment Proposals 2019/20

 

And if thought fit, pass the following resolutions:

 

  1. That it be noted that on 17 December 2018, the following amounts were approved by the Cabinet as the Council's Council Tax Base for the financial year 2019/20:

 

a)    56,693 for the whole Council area [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the "Act")

 

b)    8,627 for dwellings in the Saddleworth Parish area to which a Parish precept relates

 

c)     5,438 for dwellings in the Shaw and Crompton Parish area to which a Parish precept relates

 

  1. That the Council Meeting approve the Council Tax Requirement for the Council’s own purposes for 2019/20 (excluding Parish precepts) as being £92,089,841

 

  1. That the following amounts be calculated by the Council for the year 2019/20 in accordance with sections 31A to 36 of the Local Government Finance Act 1992:

 

a) £580,552,436

 

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 any Precepts for the Saddleworth and Shaw & Crompton Parish areas

 

b) £488,184,981

being the aggregate of the amounts which the Council estimates for the items set out in section 31A(3) of the Act.

 

c) £92,367,455

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) £1,629.26

 

being the amount at 3(c) above, 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) £277,614

being the aggregate amount of all special items referred to in section 34(1) of the Act, being the Saddleworth and Shaw & Crompton Parish precepts.

 

f) £1,624.36

being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by the amount 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 item relates.

 

g) £1,646.12

Saddleworth Parish area

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 at 3(e)  ...  view the full agenda text for item 4.

Additional documents:

Minutes:

The Mayor requested and it was RESOLVED that Council Procedure 10.7 (Rules of Debate) be suspended to enable the Leader of the Council to exceed the time limit for his contribution in moving the Administration Budget to 15 minutes with a 30 second extension and the Leader of the Main Opposition Group in moving the Main Opposition Budget, a time limit of 10 minutes with a 30 second extension.  All other speakers would be limited to 4 minutes with a 30 second extension.

 

The Mayor informed members that regulations had been implemented which required recorded votes on specific decisions at the Budget Council meeting.  Members would be advised when a recorded vote was required.

 

Prior to the consideration of the Budget Proposals, the Mayor asked the Council to note the draft minutes of the Cabinet meeting held on 11th February 2019.

 

On a vote being taken, the recommendation was CARRIED UNANIMOUSLY.

 

RESOLVED that the minutes of the Cabinet meeting held on 11th February 2019 be noted.

 

a)         Housing Revenue Account Estimates for 2019/20 to 2023/24 and Proposed Outturn for 2018/19

 

            Councillor Roberts MOVED and Councillor Jabbar SECONDED a joint which report which set out the Housing Revenue Account (HRA) detailed budget for 2019/20 and strategic estimates for the four years 2020/21 through to 2023/24 and the latest outturn estimate for 2018/19.  The report also set out the recommended dwelling and non-dwelling rents and service charge increases to be applied from April 2019.

            It was reported that after taking all relevant issues into account, the projected financial position for 2018/19 was estimated to be a £2.506m positive variance when compared to the original budget forecast for 2018/19 which had been approved at the February 2018 Budget Council meeting.  The majority of the variance was attributable to the re-profiling of HRA funded capital schemes in to later years due to revisions to planned spending profiles.  The financial position for 2019/20 showed an estimated HRA closing balance of £19.477m which was considered to be sufficient to meet future operational commitments and the potential financial pressures identified in the risk assessment.  The 2019/20 position had been presented after allowing for an increase in rent of 3.4%.  It was noted that the Government had already advised that PFI properties were exempt from the Central Government’s 1% Social Rent Reduction Programme.  As all Oldham housing stock was contained within two PFI schemes, then the 2019/20 budget would follow historic rent setting guidance of CPI plus 1%, which resulted in an increase of 3.4% (CPI was taken as at September 2018).

 

            The HRA detailed report had been presented to Overview and Scrutiny Performance and Value For Money Select Committee on 24 January 2019.  The Select Committee was content to accept the recommendations in the report but requested a revision so that the Council would, where possible, assist tenants in receipt of Universal Credit impacted by the 53-week rent year.  This was included in the report and commended to Cabinet for approval.  Cabinet duly considered the  ...  view the full minutes text for item 4.