Public Document Pack AGENDA PAPERS FOR BUDGET EXECUTIVE MEETING Date: Wednesday, 19 February 2014 Time: 6.15 pm Place: Committee Rooms 2 and 3, Trafford Town Hall, Talbot Road, Stretford M32 0TH A G E N D A PART I Pages 1. ATTENDANCES To note attendances, including officers, and any apologies for absence. 2. DECLARATIONS OF INTEREST Members to give notice of any interest and the nature of that interest relating to any item on the agenda in accordance with the adopted Code of Conduct. 3. EXECUTIVE'S REVENUE BUDGET PROPOSALS 2014/15 AND PROPOSED CAPITAL PROGRAMME 2014/7 To consider a report, and relevant supporting papers, from the Executive Member for Finance and Director of Finance, for recommendation to Council. NOTE: The reports on Revenue Budget, Fees and Charges, Capital Programme and Treasury Management, once approved by Executive, will be referred to the subsequent Budget Council Meeting for agreement; Members are asked to ensure they bring them to both meetings. (a) Executive's Revenue Budget Proposals 2014/15 (Pages 1 - 206) 1 - 206 The following documents are attached: i) Revenue Budget 2014/15 Proposals Report; supported by: ii) Public Consultation Response iii) Staff Consultation Response iv) Executive’s Response to Budget Scrutiny Report ( TO FOLLOW ) v) Fees, Charges & Allowances 2014/15 * Executive - Wednesday, 19 February 2014 * The Fees and Charges Book 2014/15 which supports the report is extensive, and is therefore not being circulated in hard copy.* It is being made available on the Executive Meetings page of the Council’s website: https://democratic.trafford.gov.uk/ieListDocuments.aspx?CId=141&MId =851&Ver=4 * Note: Hard copies will be made available to Members on request. (b) Capital Investment Programme & Prudential Indicators 2014/7 207 - 248 (Pages 207 - 248) Supported by: Treasury Management Strategy 2014/15 - 2016/17 4. URGENT BUSINESS (IF ANY) Any other item or items which by reason of:- (a) Regulation 11 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, the Chairman of the meeting, with the agreement of the relevant Overview and Scrutiny Committee Chairman, is of the opinion should be considered at this meeting as a matter of urgency as it relates to a key decision; or (b) special circumstances (to be specified) the Chairman of the meeting is of the opinion should be considered at this meeting as a matter of urgency. 5. EXCLUSION RESOLUTION Motion (Which may be amended as Members think fit): That the public be excluded from this meeting during consideration of the remaining items on the agenda, because of the likelihood of disclosure of “exempt information” which falls within one or more descriptive category or categories of the Local Government Act 1972, Schedule 12A, as amended by The Local Government (Access to Information) (Variation) Order 2006, and specified on the agenda item or report relating to each such item respectively. THERESA GRANT COUNCILLOR MATTHEW COLLEDGE Chief Executive Leader of the Council Executive - Wednesday, 19 February 2014 Membership of the Committee Councillors M. Colledge (Chairman), S. Anstee (Vice-Chairman), Dr. K. Barclay, Miss L. Blackburn, M. Cornes, J. Coupe, M. Hyman, A. Mitchell, A. Williams and M. Young Further Information For help, advice and information about this meeting please contact: Jo Maloney, 0161 912 4298 Email: [email protected] This agenda was issued on Tuesday 11 th February 2014 by the Legal and Democratic Services Section, Trafford Council, Trafford Town Hall, Talbot Road, Stretford M32 0TH. This page is intentionally left blank Agenda Item 3a Agenda TRAFFORD BOROUGH COUNCIL Item 3ai Report to: Executive Date: 19 February 2014 Report for: Decision Report of: Deputy Leader & Executive Member for Finance and the Director of Finance Report Title Executive’s Revenue Budget Proposals 2014/15 Summary The report sets out the Executive’s updated revenue budget proposals for 2014/15, taking account of; movements in Government funding, consultation feedback from stakeholders, staff and Scrutiny, changes to budget assumptions and estimates, and includes for some additional savings and investments. It is proposed that Council Tax should be frozen for the fourth year running to reduce the burden on residents at this time of limited economic growth. Instead the Council will take the opportunity of additional resources in the form of additional Government grant, £(0.9)m equivalent to a 1.1% rise, rather than raise tax to the allowed threshold level of 2.0%. The key summary points for the revenue budget proposals, are: • Budget will decrease by £(4.451)m or 2.8%, from £159.003m to £154.552m. • Government based support has reduced by £6.1m or 5.9%, and • planned base budget investment in services and other cost pressures amount to £10.0m, with a further £0.9m required to replace the non-sustainable reserves used to support the base budget brought forward. • The sum of reduced funding and expenditure pressures presents a gross budget deficit for 2014/15 of £17.0m. • Efficiency, additional income streams, the application of reserves and growth in the tax base will amount to £(13.7)m being 81% of the gross deficit, leaving, • 19% of the budget deficit that will be met by other savings in the sum of £(3.3)m. The Director of Finance has set out his view on the reasonableness and robustness of the budget, and the availability and adequacy of reserves, at Annex N. Page1 1 Recommendation(s) It is recommended that Council approve: • The net Revenue Budget for 2014/15 at £154.552m, a decrease of £(4.451)m, or (2.8)%, when compared to the 2013/14 base budget of £159.003m; • The calculation of the Council Tax Requirement as summarised in Section 8 and set out in the Formal Council Tax Resolution (Green Sheets to be circulated at Council); • That there is no increase in the proposed Council Tax level for Trafford related services in 2014/15 (valuation bands are detailed at Annex F); • The Fees and Charges for 2014/15, as set out in the booklet available on the Council’s web site, be approved, including specifically : Notice is given of the intent to increase allotment fees by 50p per week for a standard and additional concessionary plot, and a concessionary charge for a first plot to be increased by 25p per week, in 2015/16. Approval is given to Corporate Directors and the Chief Finance Officer with the joint delegation to amend fees and charges during 2014/15 in the event of any change in the rate of VAT, as appropriate • That the minimum level of General Reserve for 2014/15 be set at £6.0m, the same as in 2013/14 (Annex N); • That the overall Capital Investment Programme level of £83.2m be approved (as detailed in the Capital Investment Programme 2015/18 report attached) of which £40.9m relates to 14/15. • The Prudential Borrowing Indicators as set out in Appendix 1, page 10, of the attached Treasury Management Strategy. • The additional borrowing as detailed in paragraphs 17 of the Capital Investment Programme and Prudential Indicators 2014/17 report. and in approving the above, has taken into consideration : • The objective assessment by the Director of Finance of the robustness of budget estimates and adequacy of the General Reserve (Annex N). • The Executive’s response to the Scrutiny Committee’s recommendations to the budget proposals, which can be found elsewhere on the agenda. • The detailed report on the outcomes of the Staff and Trade Union Consultation which can be found on the agenda for the Employment Committee on 19 February 2014. Page2 2 In addition, the Council notes the following : • The approval on 23 January 2014 under delegated powers by the Director of Finance of the Council Tax Base for 2014/2015 at 71,940 Band D equivalents. Along with the calculation of the estimated Council Tax surplus, sufficient to release £(300)k to support the Council’s 2014/2015 revenue budget and a distribution of £(40.5)k and £(15.6)k representing the respective shares of the GM Police & Crime Commissioner and GM Fire and Rescue Authority. • That the Capital Investment Programme for 2015/2016 and 2016/2017 to be set at a notional £24.5m and £17.8m respectively. • The Council Tax figures included in the report for the Office of the GM Police and Crime Commissioner and the GM Fire & Rescue Authority are the recommended provisional amounts pending their formal approval. • The Treasury Management Strategy 2014/2017 detailed elsewhere on the agenda. • The base budget assumptions as set out in the Medium Term Financial Outlook as detailed in Annex B. Contact person for access to background papers and further information: Name: Cllr Sean Anstee Ian Duncan Extension: 4884 4884 Relationship to Policy Value for Money. Framework/Corporate Priorities The proposed budget for 2014/15 supports all key priorities and policies. Financial The report sets out the proposed budget for 2014/15, distributing available resource across service objective heads as detailed in the report. Legal Implications: It is a statutory requirement for the Council to set and approve a balanced, robust budget and Council Tax level. Budget proposals take account of various legislative changes as they affect Council services. The Council has begun the statutory processes associated with the effect of the proposed budget on staffing levels. Equality/Diversity Implications The recommendations proposed by this report are not considered to have any significant effects on groups with protected characteristics, and any impact will be mitigated where reasonable and appropriate. Sustainability Implications None arising out of this report. Staffing/E-Government/Asset Human Resources – statutory processes have Management Implications begun and the impact on staffing is still subject to Page3 3 consultation.