Agenda item

Matters considered by the Cabinet

Minutes:

(a)         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 2017/18 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 2017/18 shall be 49,382.42;

 

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 2017/18 for the calculation of local precepts shall be:


Parish

Tax Base

Ash-cum-Ridley

2,417.81

Badgers Mount

329.71

Brasted

772.34

Chevening

1,448.06

Chiddingstone

595.80

Cowden

406.15

Crockenhill

647.99

Dunton Green

1,116.66

Edenbridge

3,505.34

Eynsford

929.09

Farningham

650.57

Fawkham

284.48

Halstead

760.41

Hartley

2,527.05

Hever

599.88

Hextable

1,650.64

Horton Kirby & South Darenth

1,292.20

Kemsing

1,824.29

Knockholt

619.36

Leigh

818.76

Otford

1,668.43

Penshurst

829.69

Riverhead

1,237.13

Seal

1,198.96

Sevenoaks Town

9,315.37

Sevenoaks Weald

619.66

Shoreham

682.88

Sundridge

924.22

Swanley

5,407.86

Westerham

1,979.25

West Kingsdown

2,322.38

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.

 

(b)         Treasury Management Strategy for 2017/18

Councillor Fleming proposed and Councillor Scholey seconded, the recommendations from Cabinet.  The report sought approval of the Treasury Management Strategy 2017/18.

Resolved:  That the Treasury Management Strategy for 2017/18 be approved.

 

(c)          Budget and Council Tax Setting 2017/18

Councillor Fleming proposed and Councillor Scholey seconded, the recommendations within the report and from Cabinet. 

Councillor Fleming stated that as with last year, the next financial year would continue to have a balanced ten year budget and the Council would continue to be fully self-sufficient from direct central government grant with the difference that the Council would not be receiving any grant anyway.

He stated that the country had the most centralised local government in the western world, but he truly believed that with the budget before Members, 21 February 2017, was Sevenoaks District Council’s independence day and the news would reverberate far beyond the district’s borders.  The Council would be seen as not only a shining example of what could be achieved when Councillors, Officers and communities committed to what, was seen by some as an unachievable goal, but also as a road map to a relationship less based on rannygazoo,  to one based on mutual respect between local and national government.  To even the casual observer the figures were quite extraordinary; in the last seven years Sevenoaks District Council’s revenue support grant had fallen by over five million pounds.  That meant the direct grant funding for every man, women and child within the District had reduced from £55.95 in 2010 to zero.

With that bleak outlook, many would have expected the recommendations the budget papers to be full of cuts and massive reductions in services, with the consequences of those decisions felt across all the Council’s communities and the hard fought reputation for high quality services quickly lost.  Instead, Members had before them a balanced ten year budget, that protected the services the public told Members they cared most about.  Members had made savings and efficiencies and would continue to need to do both, but not by sacrificing services or making decisions in an unplanned and haphazard way.

Since last year the property portfolio had grown, and the arm’s length company was up and running and he thanked all Members and Officers who had helped to make both of those a reality.

He stated that the Council as a whole came to the realisation some time ago that the risk of doing nothing was greater than risk of doing something, that something was to use the capital receipts the Council had in the bank, earning derisory interest, for the benefit of the community served.   The Council had built a portfolio of income earning assets, the return from which Members could see was supporting the budget in front of them.  It had gone quicker and ambition was now greater; property not just to support the budget but to support, encourage and regenerate our communities.  The next year would see plans brought forward in Swanley, Edenbridge and Sevenoaks looking to build out the aspirations of those communities.

Members knew that he strongly believed that the make-up of the money spend should always be balanced.  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 those destabilised the authority.  However, moving forward the Council should continue to look at how the burden of council tax on residents served could be reduced.

The new Secretary of State had continued with last year’s advice to districts, and made it possible for those districts where a five pound rise in the annual council tax rate was in excess of the 2% referendum limit such a rise would not only be allowed but recommended, as part of the more general move away from direct government support.  For Sevenoaks it would be an increase of £4.95 and in percentage terms this was a 0.5% increase on the figure in the 10 year budget or an additional 99 pence a year.  It was worth remembering that this remained below the original assumptions in the ten year budget of 3%, changed to 2% when it looked unlikely that the government would move its position on referendum limits.

He advised the Chairman that he could talk at length about the vagaries of central government largess, the fact that just weeks after asking Councils to sign up to a four year deal they reneged on the agreed New Homes Bonus funding, but for this Council us that would have seemed churlish, yes it would have an impact, but, like the Revenue Support Grant there was no longer a direct need for it to support the services provided, so least said soonest mended. 

The work that Members and Officers at Sevenoaks District Council had done and the outcomes achieved had gained national recognition, whether within the sector with a double win at last year’s Municipal Journal awards or beyond local government with another double win at the Guardian Public Service awards, including being named their overall winner.  Whilst awards weren’t why anyone there came into local government, they did act as a yard stick with which to measure against others not allowing backsliding or any resting on laurels.  Over the coming years the Council would need to go further, faster, and learning from others and leading.

There would undoubtedly be challenges ahead, the future was not without risk, some of them falling outside of the Council’s control, and all the Council could do was make sure it was fit for, ready for, and up for the challenges. The work done and the work to do, supported by the balanced ten year budget before members was the solid foundation that made him believe that the Sevenoaks District wouldn’t just survive but would thrive in the future.

The Leader commended the budget to Members.

Councillor Dr. Canet was pleased it had all been taken seriously and carefully but was concerned about the Property Investment Strategy and speculating with Council Taxpayers money.

Councillor Halford expressed a desire to keep business rates fair in order to encourage businesses in the District.

Councillor Fleming responded that the Council was now in its sixth year of the rolling 10 year budget which helped focus Officers and Members when making decisions which impacted on the future.  Indeed it was now a model being looked at by other local authorities.  It had long been decided that the risk of doing nothing was greater then that of doing something and money sitting in the bank was earning less than 0.5% and was not good stewardship of money held in trust for residents.  Yes there was a risk but it was balance and the Council no longer received government support.

The vote was taken.

For

Against

Abstention

Cllr. Abraham

Cllr. Mrs Bayley

Cllr. Ball

Cllr. C. Barnes

Cllr. Barnes

Cllr. Bosley

Cllr. Mrs. Bosley

Cllr. Brown

Cllr. Clark

Cllr. Dickins

Cllr. Dyball

Cllr.  Edwards-Winser

Cllr. Esler

Cllr. Eyre

Cllr. Firth

Cllr. Fleming

Cllr. Hogarth

Cllr. Horwood

Cllr. Mrs. Hunter

Cllr. Kitchener

Cllr. Krogdahl

Cllr. Lake

Cllr. Layland

Cllr. Lowe

Cllr. Maskell

Cllr. McGarvey

Cllr. McGregor

Cllr. Mrs. Morris

Cllr. Parkin

Cllr. Pearsall

Cllr. Pett

Cllr. Piper

Cllr. Purves

Cllr. Raikes

Cllr. Reay

Cllr. Scott

Cllr. Scholey

Cllr. Searles

Cllr. Ms. Tennessee

Cllr. Thornton

Cllr. Williamson

Cllr. Dr. Canet

Cllr. Hogg

 

Cllr. Halford

 

41

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1

It was therefore

Resolved:  That

a)     the Summary of Council Expenditure and Council Tax for 2017/18 set out in Appendix E to the report, be approved;

b)     the 10-year budget 2017/18 to 2026/27 which is the guiding framework for the detailed approval of future years’ budgets set out in Appendix B to the report, including the growth and savings proposals set out in Appendix C-D to the report be approved, and that where possible any variations during and between years be met from the Budget Stabilisation Reserve;

c)     the Capital Programme 2017/20 and funding method set out in Appendix H to the report, be approved;

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

e)     the Capital Programme 2017/20, and Asset Maintenance 2017/18 budget of £519,000  be approved (Cabinet 9 February 2017 – Capital Programme & Asset Maintenance 2017/20);

f)      it be noted that at the Cabinet meeting on 23 January 2017 the Council calculated as its council tax base for the year 2017/18;

(i)   for the whole Council area as 49,382.42 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 set out in Appendix L to the report;

g)            the Council tax requirement for the Council’s own purpose for 2017/18 (excluding Town and Parish precepts) be calculated as £202.77;

h)           the following amounts be calculated for the year 2017/18 in accordance with Sections 31 to 36 of the Act:

(i)

£55,312,649

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)

£41,293,000

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

(iii)

£14,019,649

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)

£283.90

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)

£4,006,376

being the aggregate amount of all special items (Town and Parish precepts) referred to in Section 34 (1) of the Act (as per the attached Appendix K).

(vi)

£202.77

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)      it be noted that for the year 2017/18 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

135.18

157.71

180.24

202.77

247.83

292.89

337.95

405.54

785.88

916.86

1,047.84

1,178.82

1,440.78

1,702.74

1,964.70

2,357.64

104.77

122.23

139.69

157.15

192.07

226.99

261.92

314.30

48.90

57.05

65.20

73.35

89.65

105.95

122.25

146.70

j)     the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in Appendix Nto the report as the amounts of council tax for the year 2017/18  for each part of its area and for each of the categories of dwellings;

k)    the Council’s basic amount of council tax for 2017/18, shown in (h)(vi) above, was not excessive in accordance with principles approved under Section 52ZB of the Local Government Finance Act 1992.

 

(d)         Financial Results 2016/17 - to the end of September 2016

Councillor Fleming proposed and Councillor Scholey seconded, the recommendation from Cabinet. 

Resolved:  That a supplementary estimate of £210,000 be approved in respect of timing issues arising from the Council’s Property Investment Strategy.

 

Supporting documents:

 

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