(a)

SHADOW EXECUTIVE – 20 JANUARY 2009

(i)

Reserves Policy

Minute No. SE/08/77

The Shadow Executive considered the report of the Director of Corporate Resources, which asked for an appropriate policy for the level of general fund reserve for 2009-10 be agreed.

The Portfolio Holder (Corporate Resources) informed the Committee that the level of reserves had been calculated using the information available.

In response to questions regarding the level proposed in paragraph 17, the Portfolio Holder and Director of Corporate Resources confirmed that the figure was realistic and had been risk assessed. The level would be reviewed each year with a target of £6m to £7m reserves once transitional costs had been repaid. It had been noted that until the three legacy authorities had closed down their accounts an accurate review would not be possible. It was agreed that this be done as soon as possible after account closure.

Reason for decision: To agree an appropriate policy for the level of general fund reserves during 2009/10.

RECOMMENDED

that the Shadow Council:-

(a)               approves the reserves policy for 2009/10 as set out in the report of the Director of Corporate Resources;

(b)               approves the setting of the minimum General Fund Reserve level for 2009/10 at £4.68m for Central Bedfordshire as indicated in paragraph 17 of Appendix 1 to the report of the Director of Corporate Resources; and

(c)                determines that the Authority will review the reserves policy following the closure of the accounts of the three legacy authorities.

 (b)

SHADOW EXECUTIVE – 17 FEBRUARY 2009

NOTES:

1.

This Agenda has been despatched prior to the Executive’s meeting on 17 February 2009.  However it is anticipated that recommendations on the following items will be submitted for Council approval:-

(a)

Treasury Management Strategy

(b)

Capital Programme and Investment Strategy

(c)

Revenue Budget 2009/10 and Medium Term Financial Plan

2.

The recommendations will be circulated as soon as possible after the Shadow Executive’s meeting, together with any comments of the Scrutiny Committee upon the budget following its meeting on 19 February.  The Chairman will permit these recommendations to be dealt with as urgent items of business to allow the setting of the Budget and Council Tax within the statutory timescales.

3.

The Chairman has exercised his authority under Council Procedure Rule No. 2 to vary the order of business to take this item in conjunction with the report on the Council Tax at item 9.

(a)

Shadow Executive – 20 January 2009

(i)

Reserves Policy

(Minute No. SE/08/77)

RESOLVED

that the Shadow Council:-

(a)

approves the Reserves Policy for 2009/10 as set out in the report of the Director of Corporate Resources;

(b)

approves the setting of the Minimum General Fund Reserve level for 2009/10 at £4.68m for Central Bedfordshire as indicated in paragraph 17 of Appendix 1 to the report of the Director of Corporate Resources; and

(c)

determines that the Authority will review the Reserves Policy following the closure of the accounts of the three legacy authorities.

(b)

Shadow Executive – 17 February 2009

The Chairman drew attention to recommendations of the meeting of the Shadow Executive held on 17 February 2009 which had been circulated separately to Members on 24 February 2009.  The Chairman determined to admit these recommendations with supplementary papers prepared by the Director of Corporate Resources setting out the further options requested by the Shadow Executive in relation to the revenue budget as urgent items of business in accordance with Section 100B(4)(b) of the Local Government Act 1972 to allow the setting of the Budget and Council Tax within the statutory timescale.

(i)

Treasury Management Policy and Strategy 2009/10

(Minute No. SE/08/87)

The Portfolio Holder introduced the recommendations of the Shadow Executive and moved the recommendation in an amended form as follows:-

That the Council be recommended to:-

1.

approve the Treasury Management Policy Statement, as set out in Annex 1 to the report of the Director of Corporate resources; and

2.

approve the Annual Treasury Management Strategy 2009/10, as set out at Annex 2 to that report and specifically to resolve to adopt:-

(a)

the Investment Policy and Strategy 2009/10 – 2011/12, as set out at paragraph 6 of the Annual Treasury Management Strategy;

(b)

the Prudential Indicators for 2009/10 – 2011/12, as set out in Appendix A to the Strategy; and

(c)

the Annual Minimum Reserve Position (MRP) Statement as set out in Appendix C to the Strategy;

3.

adopt the CIPFA Code of Practice on Treasury Management in the Public Services (Revised 2001).

(Amendments to original recommendation denoted in italics)

RESOLVED

that the Shadow Council:-

1.

approves the Treasury Management Policy Statement, as set out in Annex 1 to the report of the Director of Corporate Resources;

2.

approves the Annual Treasury Management Strategy 2009/10, as set out at Annex 2 to that report and adopts:-

(a)

the Investment Policy and Strategy 2009/10 – 2011/12, as set out at paragraph 6 of the Annual Treasury Management Strategy;

(b)

the Prudential Indicators for 2009/10 – 2011/12, as set out in Appendix A to the Strategy;

(c)

the Annual Minimum Reserve Position (MRP) Statement as set out in Appendix C to the Strategy;

3.

adopts the CIPFA Code of Practice on Treasury Management in the Public Services (Revised 2001).

(ii)

Capital Programme 2009/10 – 2012/13

(Minute No. SE/08/88)

RESOLVED

that having noted that the Shadow Executive has considered the comments of the Shadow Scrutiny and Corporate Resources Transitional Task Force on the proposed Draft Capital Programme, the Shadow Council:-

(a)

approves the General Fund Capital Programme for 2009/10 and 2010/11 attached at Appendix B to the report of the Director of Corporate Resources submitted to the Shadow Executive;

(b)

approves in principle the indicative Capital Programme proposals for 2011/12 – 2012/13 attached at Appendix C to that report subject to:-

(i)

a limit of expenditure of £50m, as indicated in paragraph 5 of the aforementioned report and that the Shadow Scrutiny Committee be requested to establish a Task Force to review the Capital Programme having regard to the requirements of Central Bedfordshire Council, early in the new Municipal Year;

(ii)

adoption of the principle that the Capital Programme should not include provision for bridging loans in respect of Section 106 Agreements except where exceptional circumstances dictate;

(c)

approves the Housing Revenue Account Capital Programme for 2009/10 – 2012/13, attached at Appendix E of the aforementioned report;

(d)

approves the Capital Investment Strategy, attached at Appendix F to the aforementioned report.

(iii)

Revenue Budget 2009/10 and Medium Term Financial Plan

(Minute No. SE/08/89)

In advance of the consideration of this matter, the Chairman advised that under the provisions of Rule No. 2 he wished to vary the order of business to enable the recommendation set out in Minute No. SE/08/89 to be taken in conjunction with item 9 on the Agenda on the subject of the Council Tax 2009/10.  Accordingly the Council considered recommendations of the Shadow Executive from its meeting held on 17 February 2009 together with the report of the Director of Corporate Resources relating to the setting of the Council Tax together with the report of the Director of Corporate Resources providing an update to the previously circulated Budget report which set out the implications of two alternative Council Tax strategies as requested by the Shadow Executive.  Details of town and parish council/meetings precepts were set out at Appendix A to the Council Tax report of the Director of Corporate Resources and an outline of the Council Tax resolution 2009/10 was set out at Appendix B to that report.  Alternative resolutions were set out in the update report relative to the Revenue Budget 2009/10 and Medium Term Financial Plan.

The Leader of the Council referred to the receipt of a petition from the Biggleswade and District Pensioners Association signed by 149 people which read as follows:-

"Are you working together to sort out how we meet the financial cost of our essential costs?

Those who lose their employment and those who rely on income from savings will be forced to reduce normal purchases.  With evidence of the financial crisis in the private sector struggling to survive the crash. 

The public sector must also ration the use of finance and immediate help will be to freeze the intended increase of Council Tax for 2009/2010.

Would you kindly indicate your current action and future plans that will assist the increasing numbers of those with reduced income?"

The Portfolio Holder (Corporate Resources) proposed the Revenue Budget 2009/10 and Medium Term Financial Plan, recommendations of the Shadow Executive and consideration of the updated report of the Director of Corporate Resources on this subject, and it was proposed and seconded as follows:-

"1.

that having regard to the advice of the Chief Finance Officer (Director of Corporate Resources) as set out in his update  report previously circulated, the Revenue Budget for 2009/10 and the Medium Term Financial Plan 2009/10 to 2013/14 be approved in accordance with the summary revenue account, reserves position and Council Tax schedule set out in Annex 1 (2.5% Council Tax option) to that update report;

2.

that a Band D Council Tax of:-

(a)

£1,263.52 for former Mid Beds residents; and

(b)

£1,314.11 for former South Beds residents

be set for 2009/10;

3.

that the Housing Revenue Account Business Plan, as set out at Appendix 7 to the report of the Director of Corporate Resources, be approved;

4.

that:-

(a)

the proposed differential fee structure for 2009/10 in respect of the limited number of district fees and charges set out in paragraph 8 of the report now submitted be approved, save for the reinstatement of the concession for collection of cement bound asbestos for people in receipt of means tested benefits; and

(b)

subject to (a) above and the rounding up of figures where appropriate, the fees and charges as set out in Appendix 8 of the report, be approved for implementation with effect from 1 April 2009;

5.

that the formal Council Tax resolution as set out in Appendix B1 previously circulated (based on 2.5% increase), be approved".

As an amendment to the motion, it was moved and duly seconded:-

"1.

that having regard to the advice of the Chief Finance Officer (Director of Corporate Resources) as set out in his update report previously circulated, the Revenue Budget for 2009/10 and the Medium Term Financial Plan 2009/10 to 2013/14 be approved in accordance with the summary revenue account, reserves position and Council Tax schedule set out in the annex now attached (tabled at the meeting);

2.

and a Band D Council Tax of:-

(a)

£1,264.09 for former Mid Beds residents; and

(b)

£1,313.45 for former South Beds residents

be set for 2009/10;

3.

that the Housing Revenue Account Business Plan, as set out at Appendix 7 to the report of the Director of Corporate Resources, be approved;

4.

that:-

(a)

the proposed differential fees structure for 2009/10 in respect of limited number of district fees and charges set out in paragraph 8 of the report now submitted be approved, save for the reinstatement of the concession for collection of cement bound asbestos for people in receipt of means tested benefits; and

(b)

subject to (a) above a rounding up of figures where appropriate, the fees and charges as set out at Appendix 8 of the report, be approved for implementation with effect from 1 April 2009;

5.

that the formal Council Tax resolution now attached (tabled at the meeting) be approved."

(Amendments to original motion denoted in italics)

In order to provide clarification on the effect of the revised budget proposal now submitted, it was confirmed that the amendment varied the original motion by:-

(a)

the deletion in paragraph 1 of the words "Annex 1 (2.5% Council Tax option) to that update report and their replacement by "the Annex now attached";

(b)

(i)

the deletion in paragraph 2 (a) of the figure "£1,263.52" and its replacement by "£1,264.09";

(ii)

the deletion in paragraph 2 (b) of the figure "£1,314.11" and its replacement by "£1,313.45";

(iii)

the deletion in paragraph 5 of the words "set out in Appendix B1 previously circulated (based on 2.5% increase)" and their replacement by "now attached."

Following extensive debate upon both the motion and amendment the Portfolio Holder (Corporate Resources) agreed to incorporate the amendments to his motion as a measure on which the Council could achieve a degree of unity within the new unitary authority. 

Upon being put to the vote, the substantive motion was carried.

RESOLVED

1.

that, having regard to the advice of the Chief Finance Officer (Director of Corporate Resources) as set out in his update report previously circulated, the Revenue Budget for 2009/10 and the Medium Term Financial Plan 2009/10 to 2013/14 be approved in accordance with the summary Revenue Account, Reserves Position and Council Tax schedule set out in the option tabled at the meeting for 2.5% average Council Tax in 2009/10 amended for equal cash increases.

2.

that the Shadow Council sets the level of Band D Council Tax as follows:-

(a)

£1,264.09 for former Mid Beds residents; and

(b)

£1,313.45 for former South Beds residents

be set for 2009/10;

3.

that the Housing Revenue Account Business Plan, as set out at Appendix 7 of the report of the Director of Corporate Resources, be approved;

4.

that:-

(a)

the proposed differential fee structure for 2009/10 in respect of the limited number of District Fees and Charges set out in paragraph 8 of the report now submitted be approved, save for the reinstatement of the concession for collection of cement bound asbestos for people in receipt of means tested benefit; and

(b)

subject to (a) above and rounding up of figures where appropriate, the fees and charges as set out in Appendix 8 of the report now presented, be approved for implementation with effect from 1 April 2009;

5.

that the following amounts be calculated in accordance with Sections 32 and 36 of the Local Government Finance Act 1992:-

(a)

aggregate of the amounts which the Council estimates for the items set out in Section 32(2)(a) to (e) of the Act as its Budget expenditure, transfers to reserves and town and parish precepts

£508,442,534

(b)

aggregate of the amounts which the Council estimates for the items set out in Section 32(3)(a) to (c) of the Act as its Budget income and grants

£329,667,243

(c)

the amount by which the aggregate at 5(a) above exceeds the aggregate at 5(b) above, calculated by the Council in accordance with Section 32(4) of the Act as its Budget requirement for the year

£178,775,291

(d)

aggregate of the sums which the Council estimates for 2009/10 will be payable into its General Fund in respect of:-

(i)

Formula Grant

£49,411,615

(ii)

the amount that the Council estimates will be transferred to its General Fund from its Collection Fund in respect of the estimated surplus on its Collection Fund 2008/09 (including prior year assessment)

£204,000

£49,615,615

(e)

the amount at 5(c) (Budget requirement for the year)

£178,775,291

less the amount at 5(d)

£49,615,615

net budget requirement for the year

£129,159,676

(£67,539,308 – Mid Beds area

£61,620,638 – South Beds area)

(f)

divided by the Council Tax Bases (calculated in accordance with Section 33 (1) of the Act) as approved by Shadow Executive on 17 February 2009 (94,040; 50,450; 43,590 respectively) equal of the basic amounts of Council Tax for 2009/10

£1,373.45

(£1,338.74 - Mid Beds area

£1,413.64 - South Beds area)

(g)

aggregate of all special items referred to in Section 34(1) of the Act (Town and Parish precepts)

£8,133,051

(£3,765,968 - Mid Beds area

£4,367,083 - South Beds area)

(h)

the amount at 5(f) above

£1,373.45

(£1,338.74 - Mid Beds area

£1,413.64 - South Beds area)

less the amount at 5(g) above divided by the Council Tax Bases of 94,040; 50,450 and 43,590 respectively

£86.49

(£74.65 -

Mid Beds area

£100.19 - South Beds area)

(i)

equals the basic amount of its Council Tax for 2009/10 for dwellings in those parts of the area to which no special item relates (calculated in accordance with Section 34(2) of the Act)

£1,286.97

(£1,264.09 -

 Mid Beds area

£1,313.45 - South Beds area)

(j)

the amounts shown in Appendix A to these Minutes  in column "Band D", lines (b), being the amounts given by adding to that amount in 5(i) above, the amounts of special items relating to dwellings in those parts of the Council's area shown in the schedule divided in each case by the tax base for the relevant area calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amount of its Council Tax for 2009/10 for dwellings in those parts of its area to which the special items relate

(k)

the amounts shown in Appendix A to these Minutes, lines (b), being the amounts given by multiplying the amounts at 5(i) and 5(j) above by the number which, in the proportion set in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation Band D, calculated by the Council, in accordance with Section 36(1) of the Act, as amounts to be taken into account for 2009/10, in respect of the categories of dwellings listed in the different valuation bands; and

6.

that the Shadow Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2009/10 for each part of its area and for each of the categories of dwellings;

Valuation Bands