Agenda item

Agenda item

To note the Minutes of the Budget Cabinet meeting held on the 6th February 2012 and to consider the recommendations of Cabinet in relation to the Budget for 2012/13 further to the following attached reports;

a)     Treasury Management Strategy Statement 2012/13 including the Minimum Revenue Provision Policy Statement, Annual Investment Strategy and Prudential Indicators

b)     Capital Strategy 2012/16

c)      Capital Programme 2012/16

d)     Housing Revenue Account Estimates 2011/2012 to 2015/2016

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

f)        (i) Administration Budget Proposals – A Co-operative Future for Oldham -2012/13

(ii) Opposition Budget Proposals – A Citizen Driven Budget 2012/13

g)     Medium Term Financial Strategy 2012/13 to 2015/16

 

And if thought fit, pass the following resolutions:

 

1.

That it be noted that on 3 January 2012, the following amounts were approved by the Cabinet as the Council's Council Tax Base for the financial year 2012/13:

 

 

(a)

63,180 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)

9,990 for dwellings in the Saddleworth Parish area to which a Parish precept relates

 

 

 

6,511 for dwellings in the Shaw and Crompton Parish area to which a Parish precept relates

 

2.

That the Council Meeting approve the Council Tax Requirement for the Council’s own purposes for 2012/13 (excluding Parish precepts) as being £85,030,803

 

3.

That the following amounts be calculated by the Council for the year 2012/13 in accordance with sections 31 to 36 of the Local Government Finance Act 1992:

 

 

(a)

£695,424,345

 

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)

£610,105,552

 

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

 

 

(c )

£85,318,793

 

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)

£1,350.41

 

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)

£287,990

 

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)

£1,345.85

 

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)

£1,365.20

 

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) above divided by the 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 dwellings in those parts of its area to which one or more special items relate.

 

 

(h)

£1,360.39

 

Shaw & Crompton 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) above divided by the 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 dwellings in those parts of its area to which one or more special items relate.

 

 

 

4.

That it be noted that for the year 2012/13 the Greater Manchester Police Authority and the Greater Manchester Fire and Rescue 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:

 

 

 

 

 

 

 

5.

That the Council, in accordance with Sections 30 to 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 2012/13 for each part of its area and for each of the categories of dwellings.

 

 

Valuation Bands

Authority/Parish

                                             £

 

 

A

B

C

D

E

F

G

H

Oldham Council

897.23

1,046.77

1,196.31

1,345.85

1,644.93

1,944.01

2,243.08

2,691.70

GM Police Authority Precept

96.22

112.26

128.29

144.33

176.4

208.48

240.55

288.66

GM Fire and Rescue Authority Precept

35.10

40.95

46.80

52.65

64.35

76.05

87.75

105.30

Saddleworth Parish Precept

12.90

15.05

17.20

19.35

23.65

27.95

32.25

38.70

Shaw and Crompton Parish Precept

9.69

11.31

12.92

14.54

17.77

21.00

24.23

29.08

 

 

 

 

 

 

 

 

 

 

 

 

 

AGGREGATE OF COUNCIL TAX REQUIREMENTS

 

 

 

 

 

Valuation Bands

Authority/Parish                                                 £

 

 

 

A

B

C

D

E

F

G

H

Saddleworth Parish area

1,041.45

1,215.03

1,388.60

1,562.18

1,909.33

2,256.49

2,603.63

3,124.36

Shaw & Crompton Parish area

1,038.24

1,211.29

1,384.32

1,557.37

1,903.45

2,249.54

2,595.61

3,114.74

All other parts of the Council's area

1,028.55

1,199.98

1,371.40

1,542.83

1,885.68

2,228.54

2,571.38

3,085.66

 

 

 

 

 

 

 

 

 

 

 

Minutes:

 

 

The Deputy Mayor requested, and it was RESOLVED –

That Council Procedure Rule 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 and the Leader of the Opposition Group in moving the Opposition Budget, a time limit of 10 minutes. All other speakers to be limited to 5 minutes.

 

The Deputy Mayor requested and it was RESOLVED –

That the order of business be amended to allow Item 3 (e) - the Statement of the Chief Financial Officer, Item 3 (f) (i)  the Revenue Budget and Item 3 (f) (ii) the Amendment – Opposition Budget to be heard at the beginning of Item 3.

 

Prior to considering the budget proposals, Councillor McMahon MOVED and Councillor Akhtar SECONDED that the Minutes of Cabinet on 6th February 2012 be noted.

 

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

 

RESOLVED – That the Minutes of the meeting of the Cabinet held on 6th February 2012 be noted.

 

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

 

Councillor McMahon MOVED and Councillor Jabbar SECONDED the report of the Cabinet Member for Finance and Human Resources, which recommend that Council agreed the level of reserves necessary to support the 2012/13 budget and revised Medium Term Financial Strategy.

 

 

No Member spoke on this item.

 

RESOLVED - That

 

1. The General Balances for 2012/13 be set at £15,650k.

2. The increase from 2011/12 general reserves be funded from a transfer from earmarked reserves of £1,460k, as set out in the report, be approved.

3. The projected levels for the following two years at £16,839k and £16,764k be noted.

4. The Borough Treasurer’s assurance about the robustness of the estimates and reserves as set out in paragraph 7.1 of the report and what this assurance was based on be noted.

 

 

f) i) Councillor McMahon MOVED and Councillor Jabbar SECONDED the joint report of the Leader of the Council and the Cabinet Member for Finance and Human Resources, which presented the updated 2012/13 revenue budget position incorporating all information that was currently available including the recommendations of the Council meeting on 14th December 2011, Performance and Value for Money on 24th January 2012 and Cabinet on 6th February 2012 and which specifically set out:

 

  • The latest projections for the budget for 2012/13 including the implications of the final notification of the Local Government Finance Settlement in January 2012;
  • Savings and investment proposals that bridge the remaining budget gap for the consideration and approval of the Council;
  • The final stage of the budget process leading to the setting of the 2012/13 budget and Council Tax at this meeting of the Council  held on the 22nd February 2012;
  • Information arising from the budget consultation process.

 

AMENDMENT

 

Councillor Sykes MOVED and Councillor Thompson SECONDED the following amendment:

 

The Alternative Budget Proposals 2012/13 - A Citizen Driven Budget, as circulated and detailed in the Council Summons.

 

Councillors Hulme, Alcock, Blyth, Heffernan, McCann, L Dawson, Buckley, Beeley, P Dillon and Hindle spoke in support of the Amendment.

 

Councillors Akhtar, Hudson, Battye, Wrigglesworth, Bashforth, Houle, Dean, Rehman, Stretton and Malik spoke against the amendment.

 

Councillor McMahon exercised his right of reply.

 

Councillor Sykes exercised his right of reply.

 

In accordance with Council Procedure rule 12.3, at least five Members requested a recorded vote on this Amendment. The Vote was recorded as follows:

 

Akhtar

Against

Jabbar

Against

Alcock

For

Judge

Against

Alexander

Against

Knowles

NO VOTE

Azad

Against

Larkin

Against

Barker

Against

Malik

Against

Bashforth

Against

Martin

For

Battye

Against

Masud

For

Beeley

For

McCann

For

Blyth

For

McDonald

Against

Brownridge

Against

McLaren

Against

Buckley

For

McMahon

Against

Butterworth

Against

Moores

Against

Chadderton

Against

Newton

Against

Dawson B

NO VOTE

Qumer

Against

Dawson L

For

Rehman

Against

Dean

Against

Roughley

For

Dillon J

For

Salamat

Against

Dillon P

For

Sedgwick

For

Dinoff

For

Sheldon

Against

Harrison J

Against

Shuttleworth

Against

Harrison P

Against

Stanton

NO VOTE

Heffernan

For

Stretton

Against

Hibbert

Against

Sykes

For

Hindle

For

Thompson

For

Holley

NO VOTE

Toor

Against

Houle

Against

Ur-Rehman

Against

Hudson

Against

Williams

Against

Hulme

For

Williamson

For

Hussain

Against

Wingate

For

Iqbal

Against

Wrigglesworth

Against

 

 

On a recorded vote being taken, the Amendment was LOST with TWENTY votes cast IN FAVOUR and THIRTY SIX votes cast AGAINST.

 

Without further debate a vote was then taken on the original motion – the Administration Budget Proposals – A Co-operative Future for Oldham 2012/13.

 

On being put to the vote the Motion was CARRIED with THIRTY SIX Votes cast IN FAVOUR and TWO Votes cast AGAINST with EIGHTEEN abstentions.

 

RESOLVED – That

 

1. The Council Tax Freeze Grant be accepted;

2. Tranches 5 and 6 savings proposals of £2.380m be approved;

3. The total budget for 2012/13 set at £225.354m, subject to confirmation of precepts, be approved;

4. The total draw on the Collection Fund for boroughwide services of £97.476m, with £85.031m for Council services, subject to confirmation of precepts, be approved;

5. The Council Tax, subject to confirmation from preceptors, as set out in Appendix 8 to the report be approved;

6. The fact that there was no requirement to hold a referendum on the changes in the relevant basic amount of Council Tax be noted.

 

 

3.a) Treasury Management Strategy 2012/13: including the Minimum Revenue Provision Policy Statement, Annual Investment Strategy and Prudential Indicators

 

Councillor McMahon MOVED and Councillor Jabbar SECONDED the report of the Cabinet Member for Finance and Human Resources, which outlined the Treasury Management Strategy for 2012/2013; which included the Prudential Indicators and Minimum Revenue Provision policy.

 

No Member spoke on this item.

 

RESOLVED – That

1. The Treasury Limits for 2012/13 to 2014/15, as detailed in sections 2.1.1 and 2.1.2 of the report, be approved.

 

2. The Limits to interest rate exposures, as set out in section 2.2.1 of the report, be approved.

 

3. The Upper and lower limits on fixed rate debt maturity structure, as set out in section 2.2.2 of the report, be approved.

 

4. The projected position as at 31st March 2012, as detailed in paragraph 2.3.2 of the report, be noted.

 

5. The Borrowing Strategy for 2012/13, as detailed in section 2.6 of the report, be approved.

 

6. The Annual Investment Strategy, as per section 2.9 of the report, including the investment credit rating criteria and the level of investment in non specified investments, be approved.

 

7. The Minimum Revenue Provision policy and method of calculation, as detailed in section 2.11 of the report, be approved.

 

8. The 2012/13 to 2014/15 Prudential Indicators, as detailed in section 2.12 of the report, be approved.

 

 

b) Capital Strategy 2012/16

 

Councillor McMahon MOVED and Councillor Jabbar SECONDED the report of the Cabinet Member for Finance and Human Resources, which set out the strategy for the 2012/16 capital programme and the proposed 2012/13 capital programme including identified capital requirements having regard to the resources available.

 

 

RESOLVED - That the capital strategy for 2012/16, as set out in Appendix 1 to the report and summarised in section 3 of the report, be approved.

 

 

c) Capital Programme 2012/16

 

Councillor McMahon MOVED and Councillor Jabbar SECONDED the report of the Cabinet Member for Finance and Human Resources, which set out the proposed 2012/13 capital programme and the indicative programme for 2013/16 including identified capital requirements, having regard to the capital strategy for 2012/16 and the level of resources available.

 

 

RESOLVED - That the Capital Programme for 2012/13 and the indicative programmes for 2013/14 to 2015/16, as summarised in Table 7 of the report and detailed at Appendix 1 to the report, be approved.

 

 

d) Housing Revenue Account Estimates 2011/12 to 2015/16

 

Councillor Hibbert MOVED and Councillor Jabbar SECONDED the joint report of the Cabinet Member for Finance and Human Resources and Cabinet Member for Housing, Transport and Regeneration, which set out the latest Housing Revenue Account (HRA) outturn estimate for 2011/12 and the detailed budget for 2012/13, together with the arrangements for the move to a Self Financing HRA effective from 1st April 2012. In addition strategic estimates for 2013/14 to 2015/16 were provided along with the dwelling, non dwelling rents and service charges increases to be applied from 4th April 2012.

 

Councillor McCann spoke on this item and Councillor Hibbert exercised his right of reply.    

 

RESOLVED – That

 

1. The forecast out-turn for 2011/12 be noted.

2. The arrangements for the introduction of Self Financing be noted

3. The proposed HRA budget for 2012/13 be approved.

4. The proposed increases in dwelling rents, non-dwelling rents, service charges and leaseholder service charges be approved.

 

 

g) Medium Term Financial Strategy 2012/13 to 2015/16

 

Councillor McMahon MOVED and Councillor Jabbar SECONDED the joint report of the Leader of the Council and the Cabinet Member for Finance and Human Resources, which set out the Medium Term Financial Strategy for the financial years 2012/13 to 2015/16 having regard to the uncertainties around a number of issues including reductions in future funding from Central Government and changes to the way in which Local Government Finance is operated.

 

RESOLVED – That the Medium Term Financial Strategy, as detailed at Appendix 1 to the report, be approved.

 

The Deputy Mayor asked if Council agreed to the resolutions detailed in the summons.

 

On a vote being taken, the recommendation was CARRIED.

 

RESOLVED: - That

 

1.

It be noted that on 3 January 2012, the following amounts were approved by the

Cabinet as the Council's Council Tax Base for the financial year 2012/13:

 

 

(a)

63,180 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)

9,990 for dwellings in the Saddleworth Parish area to which a Parish precept

relates

 

 

 

6,511 for dwellings in the Shaw and Crompton Parish area to which a Parish

 precept relates

 

2.

The Council Tax Requirement for the Council’s own purposes for 2012/13 (excluding Parish precepts) as being £85,030,803 be approved.

 

3.

The following amounts be calculated by the Council for the year 2012/13 in

accordance with sections 31 to 36 of the Local Government Finance Act 1992:

 

 

(a)

£695,424,345

 

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)

 

 

 

£610,105,552

 

 

 

 

being the aggregate of the amounts which the Council

estimates for the items set out in section  31A(3) of the Act

 

 

(c )

£85,318,793

 

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)

£1,350.41

 

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)

£287,990

 

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)

£1,345.85

 

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)

£1,365.20

 

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) above divided by the 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

dwellings in those parts of its area to which one or more

special items relate.

 

 

(h)

£1,360.39

 

Shaw & Crompton 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) above divided by the 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

dwellings in those parts of its area to which one or more

special items relate.

 

 

 

 

4.

That it be noted that for the year 2012/13 the Greater Manchester Police Authority and the Greater Manchester Fire and Rescue 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.

That the Council, in accordance with Sections 30 to 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 2012/13 for each part of its area and for each of the categories of dwellings.

 

 

 

 

 

 

 

 

Valuation Bands

 

Authority/Parish

                                             £

 

 

 

A

B

C

D

E

F

G

H

 

Oldham Council

897.23

1,046.77

1,196.31

1,345.85

1,644.93

1,944.01

2,243.08

2,691.70

 

GM Police Authority Precept

96.22

112.26

128.29

144.33

176.40

208.48

240.55

288.66

 

GM Fire and Rescue Authority Precept

35.10

40.95

46.80

52.65

64.35

76.05

87.75

105.30

 

Saddleworth Parish Precept

12.90

15.05

17.20

19.35

23.65

27.95

32.25

38.70

 

Shaw and Crompton Parish Precept

9.69

11.31

12.92

14.54

17.77

21.00

24.23

29.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AGGREGATE OF COUNCIL TAX REQUIREMENTS

 

 

 

 

 

 

 

Valuation Bands

 

 

Authority/Parish                                                 £

 

 

 

 

A

B

C

D

E

F

G

H

 

 

Saddleworth Parish area

1,041.45

1,215.03

1,388.60

1,562.18

1,909.33

2,256.49

2,603.63

3,124.36

 

 

Shaw & Crompton Parish area

1,038.24

1,211.29

1,384.32

1,557.37

1,903.45

2,249.54

2,595.61

3,114.74

 

 

All other parts of the Council's area

1,028.55

1,199.98

1,371.40

1,542.83

1,885.68

2,228.54

2,571.38

3,085.66

 

 

 

 

Supporting documents: