(b)     Property Investment Strategy Update

 

Councillor Fleming proposed and Councillor Scholey seconded, the recommendation from Cabinet.  The report sought approval of amendments to the Property Investment Strategy.

 

Resolved:  That the following amendments be made to the Property Investment Strategy

 

a)     the income yield be amended to 3%+ above the Council’s average treasury management return (currently 0.7%) when not borrowing or internally borrowing, and 3%+ above the borrowing rate (currently 2.6% for 30 years) when externally borrowing, based on an average over 10 years. (Flexibility may be applied to those opportunities that show an acceptable social return on investment);

 

b)     the lot size be amended to £1m - £10m subject to multiple tenants for lots over £5m; and

 

c)      investment opportunities be restricted to those within a 50 mile radius of the Council’s Argyle Road offices or within Kent and Medway, recognising that this may need to be changed in future if legislation is amended.

 

 

(c)      Treasury Management Strategy 2019/20

 

Councillor Fleming proposed and Councillor Scholey seconded, the recommendation from Cabinet.  The report sought approval of the Treasury Management Strategy 2019/20.

 

Resolved:  That the Treasury Management Strategy for 2019/20, be approved.

 

 

(d)     Capital Strategy 2019/20

 

Councillor Fleming proposed and Councillor Scholey seconded, the recommendation from Cabinet, which sought approval of a Capital Strategy for 2019/20 in line with the new CIPFA Prudential Code and the CIPFA Treasury Management Code.

 

Resolved:  That the Capital Strategy for 2019/20 be approved.

 

 

(e)     Calculation of Council Tax Base and other tax setting issues

 

Councillor Fleming proposed and Councillor Scholey seconded, the recommendation from Cabinet.  The report set out details of the calculation of the District’s tax base for council tax setting purposes.

 

Resolved:  That

 

a)     the report of the Chief Finance Officer for the calculation of the Council’s tax base for the year 2019/20 be approved;

b)     pursuant to the report of the Chief Finance Officer and in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 1992 (as amended) the amount calculated by the Sevenoaks District Council as its council tax base for the whole area for the year 2019/20 shall be 50,772.34;

 

c)      pursuant to the report of the Chief Finance Officer and in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 1992 (as amended) the amount calculated by the Sevenoaks District Council as the council tax base for 2019/20 for the calculation of local precepts shall be:

 

Parish	Tax Base
Ash-cum-Ridley	2,460.65
Badgers Mount	334.28
Brasted	778.50
Chevening	1,450.74
Chiddingstone	602.66
Cowden	435.77
Crockenhill	660.41
Dunton Green	1,323.31
Edenbridge	3,556.04
Eynsford	945.99
Farningham	664.59
Fawkham	283.39
Halstead	782.28
Hartley	2,555.38
Hever	610.42
Hextable	1,666.94
Horton Kirby & South Darenth	1,299.56
Kemsing	1,839.00
Knockholt	634.77
Leigh	948.18
Otford	1,709.88
Penshurst	835.95
Riverhead	1,249.06
Seal	1,253.83
Sevenoaks Town	9,637.63
Sevenoaks Weald	615.09
Shoreham	685.46
Sundridge	932.07
Swanley	5,607.45
Westerham	2,068.71
West Kingsdown	2,344.35

d)     any expenses incurred by the Council in performing in part of its area a function performed elsewhere in its area by a parish or community council or the chairman of a parish meeting shall not be treated as special expenses for the purposes of section 35 of the Local Government Finance Act 1992.

 

(f)      Budget and Council Tax Setting 2019/20

 

Councillor Fleming proposed and Councillor Scholey seconded, the recommendation from Cabinet.  The report sought approval of the proposed budget and required level of Council Tax for 2019/20, and proposed a net expenditure budget of £15.251m in 2019/20 (£14.687m in 2018/19).

 

The Leader spoke to the motion stating that Members had before them another balanced 10 year budget, an achievement that remained unique within Local Government and an achievement recognised again this year, following on from previous year’s success with an international award for Leadership & Management, a win in which the council’s clarity of vision and boldness of purpose alongside financial self-sufficiency was recognised as delivering the high quality of services our residents deserve.

 

He stated that he could guarantee, with absolute certainty, that the budget in front of Members tonight would also be unique across local government in the positivity of its messages: investment in services, not cuts; increased investment in assets not cuts.  No-one looking at the council’s track record or future plans could deny we were a seriously different council.  He further stated that there was no getting away from the fact these were incredibly difficult times for the local government sector, with the council’s own figures bearing this out.

In the last 10 years Sevenoaks District Council’s revenue support grant had fallen by over five million pounds.  In simple terms that meant the direct grant funding for every man, women and child within the District had reduced from £55.95 in 2010 to zero, absolutely nothing the previous year. Risks remained, the uncertainty of the fair funding review and business rate retention was real and certain parts of the council’s financial future remained beyond the council’s control.

 

Despite this, all had been done to put the council in absolutely the best possible position for the future.  The property investment portfolio was growing, and performing well and the ambition to provide the district’s first new social rented housing for thirty years was on track.

 

He reported that the previous year he had spoken about current and future plans, and stated that the council was now days away from the new long stay car park in Sevenoaks opening and plans were being brought forward in Swanley for a new leisure centre and business hub as the council looked to build out the aspirations of its communities which was only possible due to the hard work and diligence put in by members and officers, for which he expressed his thanks.

 

He stated that self-sufficiency and a property portfolio were never going to be the end of the story, they gave the opportunity to make decisions which best served the communities represented.  Members knew that he strongly believed that the council should always balance the make-up of the money available to spend.  The main three pillars that remained after the removal of government support were Council Tax, Savings and Investment income, and over reliance on any one of the three he believed destabilised the council as an authority and put at risk the ability to deliver the positive agenda set out.

 

He advised that the secretary of state had made it clear at the dispatch box, that he believed council tax increases should keep pace with inflation and he made this possible by confirming the referendum limit at 3%, which followed a theme over the last few years as councils moved away from direct government support.  For Sevenoaks it would mean an increase of £6.21, as proposed taking the total Sevenoaks District Council Tax figure to £215.01, or £4.00 a week.

 

The work that members and officers at Sevenoaks District Council had done and the outcomes achieved had gained the council national and international recognition.  Whilst awards were not why anyone present came into local government they did act as a yard stick with which to measure performance against others and to coin a phrase ‘keep us honest’ not allowing backsliding or any resting on laurels.  The Council would, over the coming years, need to go further, faster, and would need to both learn from others and lead.

 

He concluded by saying that whilst there would undoubtedly be challenges ahead, the future was not without risk, some of which fell outside of the council’s control, and all that could be done was to make sure the council was fit for, ready for, and up for these challenges.  The work done and the work the council continued to do, supported by the balanced ten year budget before members was the solid foundation that made him believe that the Sevenoaks District would not just survive but would thrive in the future.  He commended the budget to members.

The vote was taken by all those present throughout the debate.

 

For	Against	Abstention
Cllr. Abraham Cllr. Ball Cllr. C. Barnes Cllr. J. Barnes Cllr. Mrs Bayley Cllr. Bosley Cllr. Mrs. Bosley Cllr. Dr. Canet Cllr. Carroll Cllr. Clack Cllr. Clark Cllr. Coleman Cllr. Dickins Cllr. Dyball Cllr. Edwards-Winser Cllr. Eyre Cllr. Firth Cllr. Fleming Cllr. Grint Cllr. Hogarth Cllr. Mrs. Hunter Cllr. Kelly Cllr. Layland Cllr. Lowe Cllr. Maskell Cllr. McArthur Cllr. McGarvey Cllr. McGregor Cllr. Mrs. Morris Cllr. Parkin Cllr. Parson Cllr. Pearsall Cllr. Pett Cllr. Piper Cllr. Purves Cllr. Raikes Cllr. Scholey Cllr. Searles Cllr. Miss. Stack Cllr. Thornton Cllr. Williamson
41	0	0

It was therefore

 

Resolved:  That

 

a)    the Summary of Council Expenditure and Council Tax for 2019/20 set out in Appendix E to the report, be approved;

 

b)    the 10-year budget 2019/20 to 2028/29 which was the guiding framework for the detailed approval of future years’ budgets set out in Appendix B to the report, be approved, including the growth and savings proposals set out in Appendices C-D to the report, and that where possible any variations during and between years be met from the Budget Stabilisation Reserve;

 

c)    the Capital Programme 2019/22 and funding method set out in Appendix H to the report, be approved;

 

d)    the changes to reserves and provisions set out in Appendix J to the report, be approved;

e)     the Capital Programme 2019/22 be approved, and Asset Maintenance 2019/20 budget of £672,000 be approved;

f)      it be noted that at the Cabinet meeting on 10 January 2019 the Council calculated as its council tax base for the year 2019/20:

(i)  for the whole Council area as 50,772.34 being Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended, (the “Act”); and

(ii)   for dwellings in those parts of its area to which a parish precept relates as in Appendix M to the report;

g)     the council tax requirement for the Council’s own purpose for 2019/20 (excluding Town and Parish precepts) be calculated as £215.01;

h)     the following amounts be calculated for the year 2019/20 in accordance with Sections 31 to 36 of the Act:

(i)	£57,526,904	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 Town and Parish Councils.
(ii)	£42,195,000	being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(iii)	£15,331,904	being the amount by which the aggregate at (h)(i) above exceeds the aggregate at (h)(ii) 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).
(iv)	£301.97	being the amount at (h)(iii) above (Item R), all divided by (f)(i) above (Item T), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its council tax for the year (including Town and Parish precepts).
(v)	£4,415,343	being the aggregate amount of all special items (Town and Parish precepts) referred to in Section 34 (1) of the Act (as set out in Appendix L to the report).
(vi)	£215.01	being the amount at (h)(iv) above, less the result given by dividing the amount at (h)(v) above by the amount at (f)(i) above (Item T), 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 Town or Parish precept relates.

 

i)       that it be noted that for the year 2019/20 the Kent County Council, the Kent Police & Crime Commissioner and the Kent & Medway Towns 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:

Valuation Bands	Precepting Authority
	Sevenoaks District Council £	Kent County Council £	Kent Police & C.C. £	Kent & Medway Towns Fire Authority £
A B C D E F G H	143.34 167.23 191.12 215.01 262.79 310.57 358.35 430.02	866.28 1,010.66 1,155.04 1,299.42 1,588.18 1,876.94 2,165.70 2,598.84	128.77 150.23 171.69 193.15 236.07 278.99 321.92 386.30	51.84 60.48 69.12 77.76 95.04 112.32 129.60 155.52

j)      that the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown as set in Appendix Pto the report, as the amounts of council tax for the year 2019/20 for each part of its area and for each of the categories of dwellings; and

k)     that the Council’s basic amount of council tax for 2019/20, shown in (h)(vi) above, is not excessive in accordance with principles approved under Section 52ZB of the Local Government Finance Act 1992.