Agenda item

A report on the recommendations of the Council’s Executive Cabinet at its meeting on 22 February 2007 and the draft Council Tax resolution is enclosed together with the Director of Finances Statutory Section 25 report and the Shadow Cabinets alternative budget.

Before the Council debated the Budget three members of the public had been invited to ask questions that had been previously submitted by the deadline.

 

Each member of the public read out the question and received a response from the appropriate Executive Member.

 

They were then given an opportunity to ask a supplementary question if they wished and receive a response but this was not required.

 

In accordance with Paragraph 11.4 of the Council Procedure Rules it was RESOLVED that the length of the speeches by the proposers of the Ruling Group and Opposition Council Tax Resolutions, to be for a period which exceeded five minutes during the consideration on the Council Tax 2007/08 of the agenda.

 

The Executive Leader presented a report putting forward proposals for the General Fund Revenue Budget and Council Tax levels for 2007/08 which had received approval by the Executive Cabinet at its meeting held on 27 February 2007.

 

The report contained the representations received in response to consultations on the draft budget proposals and which highlighted the key concerns that had been expressed by respondents.

 

The Executive Leader explained that the proposals had been formulated to feed directly into the Council’s key objectives, targets and actions for 2007/2008 and beyond.  The Council’s priorities addressed the key issues identified and codified in the Community Strategy.  The updated Corporate Strategy represented the Council’s commitment to achieving the objectives and outcomes specified in that document.

 

The report set out the Executive Cabinet’s proposals, including appendices relating to budget consultation responses, including the Executive’s response to issues raised by the Overview and Scrutiny Committee in relation to its review of the budget.

 

Appended to the report was the Director of Finance’s report to satisfy the provisions of Section 25 of the Local Government Act 2003 requiring the officer to report independently to Members on the robustness of the estimates and the adequacy of the Councils’ reserves.

 

Treasury management issues were also included as a specific requirement following the introduction of the Prudential Code for Capital Finance in Local Authorities.  The report aimed to fulfil all these various requirements.

 

The report indicated that the budget continued to direct resources into key Corporate Priorities and addressed concerns identified by the Borough citizens.  Particular focus on this year’s budget in terms of involvement given to the Town Centre, were the administration was determined to build on the town’s strengths.  The objectives for the 2007/08 budget was a freeze in the Chorley Borough Council’s element in the Council Tax, together with the impact of the Stock Transfer had meant that significant savings/efficiencies had been made, with a balanced budget achieved.

 

It was moved by the Executive Leader and seconded by the Deputy Leader of the Council that the Executive Cabinet’s budget proposals as detailed in the submitted report, be approved.

 

In respect of the budget proposals it was moved by Councillor Alan Cullens and seconded by Councillor Peter Goldsworthy that the budget and estimates of the Executive Cabinet be amended as follows:

 

“To add an additional £50,000 to the Streetscene, Neighbourhood and Environment Department (SNED) budget, which will fund a Hot Spot rapid response team, which will operate afternoons and evenings.  This will be funded by reducing the contingency fund by the same amount and does not change the Council Tax Resolution previously circulated to Members of the Council”.

 

The amendment was put to the vote and the Mayor declared it carried.

 

In respect of the budget proposals it was moved by Councillor Dennis Edgerley and seconded by Councillor Adrian Lowe that the budget and estimates of the Executive Cabinet be amended as follows:

 

Reinstate 10 Neighbourhood Wardens                                                £229,000

Funded by increase in Council Tax 3.2%                                             £192,000

and contribution of £37,000 from headroom identified

in budget update

 

The amendment was put to the vote and the Mayor declared it lost.

 

In respect of the budget proposals it was moved by Councillor Dennis Edgerley and seconded by Councillor Adrian Lowe that the budget and estimates of the Executive Cabinet be amended as follows:

 

Additional Street Cleaning (Funding for 3 operatives)                       £ 70,000

Additional activities for Young People                                                  £ 50,000

Remove the charge for rodent control                                                  £ 10,000

Funded by amending the assumption regarding

the cost of job evaluation from a 2% increase to 1%                          £128,000

and a contribution of £2,000 from the headroom

identified in the budget update

 

This would provide a reduction of 0.5% in the Council Tax because of the availability of all the budget headroom.

 

The amendment was put to the vote and the Mayor declared it lost.

 

In respect of the budget proposals it was moved by Councillor Dennis Edgerley and seconded by Councillor Adrian Lowe that the budget and estimates of the Executive Cabinet be amended as follows:

 

Free off peak concessionary travel across the

Borough for one year, funded from balances                                       £160,000

 

A request was made under the Council Procedure Rule 17(2) for a recorded vote on the Labour Group amendment.

 

For: Councillors Ball, Birchall, Brown, Davies, Edgerley, A Gee, D Gee, Hoyle, Miss M Iddon, Khan, M Lees, R Lees, A Lowe, M Lowe, McGowan, Miss Molyneaux, Mrs J Snape, R Snape, Snow, Mrs Walsh, J Wilson, Mrs M Wilson (22).

 

Against:  Councillors Baker, Bedford, Bell, Cain, Mrs Case, Caounce, A Cullens, M Cullens, Culshaw, David Dickinson, Doreen Dickinson, Goldsworthy, Mrs Gray, Heaton, K Iddon, Malpas, Morgan, Muncaster, Perks, G Russell, R Russell, E Smith, Mrs Smith, S Smith and Walker (25).

 

Abstentions:  None.

 

The Mayor declared the amendment lost.

 

In respect of the budget proposals it was moved by Councillor Dennis Edgerley and seconded by Councillor Adrian Lowe that the budget and estimates of the Executive Cabinet be amended as follows:

 

Implementation of alleygate pilot schemes

funded from Revenue Balances                                                            £40,000

 

It was resolved to suspend Standing Orders

in order for the Director of Finance to clarify the

funding arrangements for the scheme.

 

The Executive Member for Streetscene, Neighbourhoods and the Environment accepted the amendment.

 

The Mayor declared the amendment carried.

 

The necessary formal resolutions in the setting of the 2007/08 Council Tax for the Borough to reflect the Council’s net revenue estimates together with the necessary addition to meet Lancashire County Council, Lancashire Police Authority, Lancashire Fire Authority and Parish Council precepts were moved by the Executive Leader and Deputy Leader of the Council.

 

RESOLVED:

 

1.      That it be noted that acting under delegated powers the Director of Finance calculated the amount of 34,965.00 as its Council Tax Base for the year 2007/08 in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992 made under Section 33(5) of the Local Government Finance Act 1992.

 

(a)    34,965.00 being the amount calculated by the Council, in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, as its Council Tax Base for the year.

 

(b)    Part of the Council’s Area

 

 

         being the amounts calculated by the Council, in accordance with Regulation 6 of the Regulations, as the amounts of its Council Tax Base for the year for dwellings in those parts of its area to which one or more special items relate.

 

2.      That the following amounts be now calculated by the Council for the year 2007/08 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992:

 

(a)    £40,028,136 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(2)(a) to (e) of the Act;

        

(b)    £25,472,360 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(3)(a) to (c) of the Act;

 

(c)    £14,555,776 being the amount by which the aggregate at 2(a) above exceeds the aggregate at 2(b) above, calculated by the Council, in accordance with Section 32(4) of the Act, as its budget requirement for the year;

 

(d)    £8,008,230 being the aggregate of the sums which the Council estimates will be payable for the year into its general fund in respect of redistributed non-domestic rates, Revenue Support Grant, increased by the amount of the sums which the Council estimates will be transferred in the year from its collection fund to its general fund in accordance with Section 97(3) of the Local Government Finance Act 1988;

 

(e)    £187.26 being the amount at 2(c) above less the amount at 2(d) above, all divided by the amount at 2(a) above, calculated by the Council, in accordance with Section 33(1) of the Act, as the basic amount of its Council Tax for the year;

 

(f)     £1,243,411 being the aggregated amount of all special items referred to in Section 34(1) of the Act;

 

(g)    £151.69 being the amount at 2(e) above less the result given by dividing the amount at 2(f) above by the amount at 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 items relates;

 

(h)    Part of the Council’s Area

 

 

         being the amounts given by adding to the amount at 2(g) above to the amounts of the special item or items relating to dwellings in those parts of the Council’s area mentioned above divided in each case 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;

        

(i)      Part of the Council’s Area

 

 

         being the amounts given by multiplying the amounts at 2(g) and 2(h) above by the number which, in the proportion set out 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 the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

3.      That it be noted that for the year 2007/08 the Lancashire County Council, Lancashire Police Authority, and the Lancashire Combined Fire Authority have stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:

 

 

* These values are assessments and have to be confirmed by the precepting authority.

 

 

4.      That, having calculated the aggregate in each case of the amounts at 2(i) and 3 above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2007/08 for each of the categories of dwellings shown below:

 

         (i)      Part of the Council’s Area

 

 

5.      That the Director of Finance and his officers be authorised to take any action necessary to ensure collection and recovery of the Council Tax and Non-Domestic Rates.

 

6.      That an additional £50,000 be added to the Streetscene, Neighbourhood and Environment Department (SNED) budget, which will fund a Hot Spot rapid response team, which will operate afternoons and evenings.  This will be funded by reducing the contingency fund by the same amount and does not change the Council Tax Resolution.

 

7.            That an alley gate pilot scheme be funded from Revenue Balances at a cost of £40,000.

 

8.            That the advice of the Chief Finance Officer under Section 25 of the Local Government Act 2003, as set out in the submitted report be noted and the Council have regard to it when considering the budget for 2007/08.

 

9.            That the Treasury Management Strategy for 2007/08 be approved.

 

EXPLANATION OF COUNCIL TAX SETTING RESOLUTION

RESOLUTION 1

(a)    Before we can calculate the Council Tax to be charged, we first have to calculate the Council Tax base.  The Council Tax base is the amount which a Band D Council Tax of £1.00 would raise.  For 2007/08 we estimate that a £1.00 Council Tax at Band D would raise £34,965.00 in the Chorley area.

(b)    This shows the “base” figure for each Parish in the area.   For example, a £1.00 Band D Council Tax in Adlington would raise £1,959.40.

RESOLUTION 2

(a)    This is the grand total of money which the Council estimates it will spend on all services in 2007/08.  It also includes £549,835 which Parish Councils need to run their services.

(b)    This is the grand total of money which the Council estimates it will receive from various sources in the year.  This includes, for example, car park charges, investment income, government grants in respect of benefits, etc.

(c)    This is the difference between 2(a) and 2(b) and is in effect the Council’s and Parishes net spending on services.

(d)    This is the amount that the Government will contribute towards the cost of our services.  Also included is extra Council Tax resulting from new properties and expected collection rates in previous years.

(e)    The difference between 2(c) and 2(d) is £6,547,546 and this is the amount we need to charge Council Taxpayers.  This is divided by the base (see 1(a) above) and the resulting figure of £187.26 is the average Band D Council Tax for all Borough and Parish services.

(f)     The total of all the amounts needed from Council Taxpayers by the Parish Councils in the area and for Chorley Borough Special Expenses.

(g)    This is the Band D Council Tax for Chorley Borough Council’s own services, ie excluding Parish Council spending and Special Expenses

(h)    This table shows the Band D Council Tax for all parishes including the cost of the Parish Councils and Chorley Borough Council.  For example, Adlington’s Band D Council Tax is £151.69 for Chorley Borough services and £9.01 for Adlington Town Council services and £17.95 for Chorley Borough Special Expenses.

 

 

The rate for each property Band is calculated by reference to the Band D charge.  The following ratios apply:
		Band A Band B Band C Band D Band E Band F Band G Band H	6/9 ths of Band D 7/9 ths of Band D 8/9 ths of Band D 9/9 ths of Band D 11/9 ths of Band D 13/9 ths of Band D 15/9 ths of Band D 18/9 ths of Band D
For Adlington Band A, for example, the charge is £178.65 x 6 ÷ 9 = £119.10; for Band B it is £178.65 x 7 ÷ 9 = £138.95.
RESOLUTION 3
Lancashire County Council, Lancashire Fire Authority and Lancashire Police Authority are separate bodies who have worked out their own estimates of spending and income for 2007/08 and have set taxes in a similar way to Chorley Borough Council.  This resolution notes their final decision.
RESOLUTION 4
This pulls together the Council Taxes for Lancashire County Council, Lancashire Fire Authority, Lancashire Police Authority, Chorley Borough Council and the Parish Councils.  For example, the Band D for Adlington is £1,408.23 made up as follows:
	Lancashire County Council (as in 4 above) Lancashire Fire Authority (as in 4 above) Lancashire Police Authority (as in 4 above) Chorley Borough Council (as in 3(g) above) Adlington Town Council Special Expenses			£   1,046.20   57.44   125.95   151.69   9.01 17.95
RESOLUTION 5
Formally authorise the necessary staff to take legal action to collect arrears as and when this is necessary.  For the vast majority of taxpayers, this is not needed