Decision details

Having considered an officer report, and a presentation by the Cabinet

Member for Resources, Councillor Kevin Bonavia, the Mayor agreed that:

 

(i) the comments of the Public Accounts Select Committee of 5 February

2015, which incorporate the views of the respective select committees on the

revenue budget savings proposals for 2015/16 be received;

 

(ii) having considered the views of those consulted on the budget, and having

been informed of the outcome of consultation with business ratepayers, and

subject to proper process and consultation, as required, the Mayor agreed

that:

 

Capital Programme

 

(iii) the 2014/15 Quarter 3 Capital Programme monitoring position set out be

noted;

 

(iv) Council be recommended to approve the 2015/16 to 2018/19 Capital

Programme of £424.3m, there are two new proposed major capital projects

for 2015/16 and it includes an allocation of £90,000 of capital to Phoenix

Housing in respect of their proposals for developing the Fellowship Inn, as set

out in section 5 of this report and attached at Appendices W1 and W2;

 

Housing Revenue Account

 

(v) Council be asked to note the consultation report on service charges to

tenants’ and leaseholders in the Brockley area, presented to area panel

members on 11th December 2014,

 

(vi) Council be asked to note the consultation report on service charges to

tenants’ and leaseholders and the Lewisham Homes budget strategy

presented to area panel members on 15th December 2014;

 

(vii) Council be recommended to set an increase in dwelling rents of 2.61%

(an average of £2.51 per week) – option B as presented in section 6 of the

report, in accordance with current Housing Revenue Account financial

strategy;

 

(viii) Council be recommended to set an increase in the hostels

accommodation charge by 2.20% (or £1.50 per week), in accordance with the

Rent Restructuring formula;

 

(ix) Council be recommended to approve the following average weekly

increases for dwellings for:

 

service charges to non-Lewisham Homes managed dwellings (Brockley);

• caretaking 2.20% (£0.07)

• grounds 2.20% (£0.04)

• communal lighting 2.20% (£0.01)

• bulk waste collection 2.20% (£0.02)

• window cleaning 0.00% (£0.00)

• tenants’ levy No increase

 

service charges to Lewisham Homes managed dwellings:

• caretaking No increase

• grounds No increase

• window cleaning No increase

• communal lighting 40.70% (£0.35)

• block pest control 5.16% (£0.08)

• waste collection No change

• heating & hot water -18.93% (-£1.87) decrease

• tenants’ levy No increase

 

(x) Council be recommended to approve the following average weekly

percentage increases for hostels and shared temporary units for;

• service charges (hostels) – caretaking etc.; 4.08% (£2.77)

• no energy cost increases for heat, light & power; 0.0% (£0.00)

• water charges increase; 5.88% (£0.01)

 

(xi) Council be recommended to approve an increase in garage rents by

Retail Price Inflation (RPI) of 2.3% (£0.20 per week) for Brockley residents

and 2.3% (£0.27 per week) for Lewisham Homes residents;

 

(xii) Council be asked to note that the budgeted expenditure for the Housing

Revenue Account (HRA) for 2015/16 is £130.9m;

 

(xiii) Council be asked to endorse the HRA budget strategy savings proposals

in order to achieve a balanced budget in 2015/16,

 

(xiv) 20 cases of Former Tenants’ Arrears be written off totalling £265,843.81;

 

Dedicated Schools Grant and Pupil Premium

 

(xv) Council be recommended, subject to final confirmation of the allocation,

that the provisional Dedicated Schools Grant allocation of £275.8m be the

Schools’ Budget for 2015/16; and the changes to the funding arrangements

for High Needs Pupils as set out be approved and the level of pupil premium

anticipated for 2015/16 of £18.2m be noted;

 

General Fund Revenue Budget

(xvi) Council be asked to note the projected overall variance against the

agreed 2014/15 revenue budget as set out and that any year-end overspend

will be met from reserves;

 

(xvii) Council be asked to endorse the previously approved revenue budget

savings of £1.48m for 2015/16 and delegated budget savings proposals as

per the Mayor and Cabinet meeting of the 12 November 2014, as set out in

section 8 and summarised in Appendix Y1;

 

(xviii) notes that the revenue budget savings presented at this meeting under

a separate report and as summarised in Appendices Y1 and Y2 will be used

to balance the budget;

 

(xix) Council be asked to agree the transfer of £5.0m in 2015/16 from the New

Homes Bonus reserve to the General Fund for one year to meet funding

shortfalls and that the position be reviewed again for 2016/17;

 

(xx) the use of £5.4m reserves to fill the budget gap in 2015/16 be approved;

 

(xxi) Council be recommended to agrees to create a fund in respect of

quantified revenue budget pressures in the sum of £4.3m in 2015/16, allowing

the Executive Director for Resources & Regeneration to hold these resources

corporately until such time that these pressures emerge during the year, and

authorises the Executive Director for Resources and Regeneration to allocate

these funds to meet pressures when satisfied that those pressures cannot be

contained within the Directorates’ cash limits;

 

(xxii) Council be recommended to agree to create a fund in respect of as yet

un-quantified revenue budget risks in the sum of £3.2m in 2015/16, allowing

the Executive Director for Resources & Regeneration to hold these resources

corporately in case these pressures emerge during the year, and authorises

the Executive Director for Resources and Regeneration to allocate these

funds to meet such pressures when satisfied that those pressures cannot be

contained within the Directorates’ cash limits;

 

(xxiii) Council be recommended to agree that a General Fund Budget

Requirement of £245.5m for 2015/16 be approved, based on a 0% increase in

Lewisham’s Council Tax element and the 1% Council Tax freeze grant of

£1.0m being accepted. This will result in a Band D equivalent Council Tax

level of £1,060.35 for Lewisham’s services and £1,355.35 overall. This

represents an overall decrease in Council Tax for 2014/15 of 0.3% and is

subject to the GLA precept for 2014/15 being reduced by 1.3% from its

existing 2014/15 level, in line with the GLA’s draft proposal;

 

(xxiv) the Council Tax Ready Reckoner which for illustrative purposes sets out

the Band D equivalent Council Tax at various levels of increase be noted;

 

(xxv) the Executive Director for Resources & Regeneration be asked to issue

cash limits to all Directorates once the 2015/16 Revenue Budget is agreed;

 

(xxvi) Council be asked to receive the draft Chief Financial Officer’s Section

25 Statement,

 

(xxvii) the draft statutory calculations for 2015/16 be approved;

 

(xxviii) the prospects for the revenue budget for 2016/17 and future years as

set out be noted:

 

(xxix) officers continue to develop firm proposals as part of the Lewisham

Future Programme to help meet the forecast budget shortfalls in 2015/16 and

for future years;

 

Other Grants (within the General Fund)

 

(xxx) the adjustments to and impact of various specific grants for 2015/16 on

the General Fund as set out be noted;

 

Treasury Management Strategy

 

(xxxi) Council be recommended to approve the prudential indicators and

treasury limits, as set out;

 

(xxxii) Council be recommended to approve the 2015/16 treasury strategy,

including the investment strategy and the credit worthiness policy, as set out;

 

(xxxiii) Council be recommended to agree to delegate to the Executive

Director for Resources & Regeneration authority during 2015/16 to make

amendments to borrowing and investment strategies provided there is no

change to the Council’s authorised limit for borrowing;

 

(xxxiv) Council be recommended to agree the Minimum Revenue Provision

(MRP) policy as set out;

 

(xxxv) Council be recommended to agree the credit and counterparty risk

management criteria; the proposed countries for investment, and that to

formally delegate responsibility for managing transactions with those

institutions which meet the criteria to the Executive Director for Resources &

Regeneration;

 

(xxxvi) Council be recommended to agree to decrease the maximum deposit

limits with the part nationalised banks from £65m to £40m for each of Lloyds

Banking Group and Royal Bank of Scotland (RBS) Group;

 

(xxxvii) the one incidence of a breach of the investment policy in November

2014 when an investment with an approved counter party was made for 12

months which should have been limited to 6 months be noted; and

 

(xxxviii) the development of the Municipal Bond Agency be noted.