Agenda and minutes

Apologies for absence were submitted on behalf of Councillors Chris Fisher and Harry Grayson.

It was noted that all Councillors had been granted a dispensation to speak and vote in relation to setting Council Tax or a precept under the Local Government and Finance Act 1992.

To receive announcements from the Mayor, Leader of the Council, or Chief Executive.

1)     The Mayor referred to a letter which had been circulated at the meeting, from the Regional Director of HSBC Bank, advising the Council of the closure of the Accrington, Nelson and Rawtenstall branches, with effect from 29^th April 2016.

2)     In January, the Mayor had been asked to nominate a young person from Hyndburn to be considered for the High Sheriff of Lancashire’s Young Citizen Award.  She was now delighted to announce that her nominee, David Reid, from West End, Oswaldtwistle, had been selected for the final heat and invited to a special ceremony at Lancashire Police Headquarters on 17th March 2016. David’s achievement was to instigate a campaign to improve West End play area, on Blackburn Road, Oswaldtwistle, with £100,000 of investment.

3)    The Leader of the Council referred to the announcement that the owners of the Arndale Shopping Centre intended to introduce car parking charges. In view of concerns about the proposal, the Leader had requested discussions with the owners which would be taking place imminently.

To confirm as a correct record the minutes of the Council meeting held on 21^st January 2016 (attached).

The minutes of the Council meeting held on 21^st January 2016 were submitted.

Resolved                               -  That the minutes of the Council meeting held on 21^st January 2016 be approved as a correct record.

To consider the attached report, which was considered by Cabinet on 3^rd February 2016 and is referred to Cabinet for approval.

The Leader of the Council presented a report, which set out the Council’s policy and objectives in respect of treasury management and which sought agreement to an investment strategy for 2016/17 to 2018/19. The Prudential Code for Capital Finance in Local Authorities required the Council to set prudential indicators annually for the next three years to demonstrate that the Council’s capital investment plans were affordable, prudent and sustainable.

The Council was also required to set out its Treasury Management and Investment Strategy for borrowing and cash investment, in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice. In order to demonstrate compliance, the Council also needed to approve a Treasury Management Policy Statement, Treasury Management Practices Statement and a Minimum Revenue Provision Policy Statement, setting out how the Council would seek to achieve its treasury management policies together with details of how those activities would be managed and controlled.

The aspects addressed in the report included:-

•           Capital expenditure and the capital financing requirement

•           External debt overall limits   

•           External v internal borrowing

•           Debt rescheduling

•           Investment strategy 

•           Treasury management practices

Resolved                            (1)  That the prudential indicators and limits detailed in the report be adopted.

                                (2)  That the treasury management strategy, and associated indicators, as set out in section 8 of the report, be approved.

                                (3)  That the investment strategy set out in section 13 of the report be approved.

                                (4)  That the Minimum Revenue Provision Policy Statement for year 2016/17, set out in appendix 1, be approved.

                                (5)  That the Treasury Management Policy Statement 2015/16, set out in appendix 2, be approved; and

                                (6)  That the Treasury Management Practices Statement 2016/17 (Appendix 3) be approved.

To consider the attached report, which was approved by Cabinet on 3^rd February 2016.

The Leader of the Council presented an updated Medium Term Financial Strategy for the next three years, 2016/17 to 2018/19. The objectives of the Medium Term Financial Strategy were:

·        to be the financial expression of the Corporate & Performance Plan, providing the resources to deliver the plan,

·        to ensure that commitments did not exceed forecasted anticipated resources over the period and for each year,

·        to ensure that expenditure was increasingly focused on those areas which the Council had determined as its priority areas,

·        to ensure that the level of Council Tax was planned in line with what the Council and the community as a whole regarded as being acceptable, albeit within the context of guidelines from Central Government,

·        to review the effectiveness of delivery of additional resources into priority areas, to ensure that the objectives set for these target areas were actually being achieved,

·        to ensure that the Council was in a strong financial position as measured by size of balances and reserves (consistent with the Chief Financial Officer’s recommendations), and

·        to improve value for money assessments in all services by delivering increased efficiency savings.           

The key elements of the strategy were:-

·        Forecasting resources

·        Budget monitoring and forecasting commitments

·        Corporate strategic direction and priorities

·        Integrated resource planning with service plans

·        Links with human resource and IT resource plans

·        Capital strategy and asset management plan

Resolved                               -  That the report and the accompanying Medium Term Financial Strategy be approved.

To determine the General Revenue Fund, Capital Programme and Council Tax levels for 2016/17. To enable Council to make the required decisions, the following documents are submitted:-

a)         Revenue Budget 2016/17

The proposals put forward by Cabinet on 3rd February 2016 are set out in the attached report; the final proposals of the controlling group will be submitted at the meeting.

b)         Capital Programme 2016/17

The proposals put forward by Cabinet on 3^rd February 2016 are set out in the attached report; the final proposals of the controlling group will be submitted at the meeting.

c)         Comments and Recommendations of Overview and Scrutiny

The Resources Overview and Scrutiny Committee met on 16^th February 2016 to consider the budget proposals for 2015/16. The Committee’s comments will be circulated in due course.

The Leader of the Council presented the proposed revenue and capital budget and council tax levels for 2016/17. Proposals for the 2016/17 general fund revenue budget and capital programme had been put forward at Cabinet on 3^rd February 2016 and had been recommended to Council for approval. The Leader of the Council now put forward an updated report, with just one amendment, to reduce the savings required on the Culture and Leisure Services budget by £50,000 and to insert a corporate savings target of £50,000 instead. The revenue budget for 2016/17 would require a net expenditure of £11,283,000, with no increase in Council Tax.

Councillor Noordad Aziz, Chair of the Resources Overview and Scrutiny Committee, submitted a report of the Committee’s consideration of the budget proposals, to which the Leader responded.

A motion was proposed by Councillor Miles Parkinson and seconded by Councillor Gareth Molineux:-

“That the recommendations for the General Fund Revenue and General Fund Capital Programme Budget and Council Tax Levels for 2016/17, now submitted by the controlling group, be approved.”

A debate on the motion then followed, after which  it was put to the vote. In accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 a recorded vote was taken. The votes were recorded as follows:-

For the motion: Councillors Mohammad Ayub, Noordad Aziz, Clare Cleary, Loraine Cox, Paul Cox, Munsif Dad, Bernard Dawson, Wendy Dwyer, Diane Fielding, Melissa Fisher, June Harrison, Eamonn Higgins, Abdul Khan, Gareth Molineux, Kerry Molineux, Ken Moss, Jenny Nedwell, Tim O'Kane, Bernadette Parkinson, Miles Parkinson, Bill Pinder, Joyce Plummer, Malcolm Pritchard, Paul Thompson (24)

Against the motion: none

Abstentions:    Councillors Judith Addison, Lisa Allen, Peter Britcliffe, Tony Dobson Julie Livesey, Marlene Haworth, Terry Hurn, Kath Pratt, (8)          

The motion was therefore carried.

Resolved                            (1)  That the recommendations of Cabinet on the Revenue and Capital Budgets for 2016/17 be approved, subject to approval of one amendment, to reduce the savings required on the Culture and Leisure Services budget by £50,000 and to insert a corporate savings target of £50,000 instead.

                                            (2)  That Council Tax rates for Hyndburn Borough Council will remain the same, £230.52 for the year for a Band D property, for example.

                                            (3)  That the Council commits to continuing to strengthen its reserves during the year and requires the Chief Executive and the Deputy Chief Executive to take appropriate action to protect the Council’s overall financial position and further strengthen its reserves during the forthcoming year.

                                            (4)  That the Council delegates authority to the Chief Executive to take such action as he considers necessary to implement the measures contained in this budget. 

                                            (5)  That it be noted that on 6^th January 2016 the Council at its Cabinet calculated:

o   the Council Tax Base 2016/17 for the whole Council area as 19,089 (Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended (the “Act”)) and,

o   for dwellings in those parts of its area to which a  ...  view the full minutes text for item 421.