Decision details

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

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

 

1 the comments of the Public Accounts Select Committee of 27 January 2016

be received;

 

2 having considered the views of those consulted on the budget, and subject

to consideration of the outcome of consultation with business ratepayers, and

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

 

Capital Programme

 

3 notes the 2015/16 Quarter 3 Capital Programme monitoring position as set

out in section 5;

 

4 recommends that Council be recommended to approve the 2016/17 to

2019/20 Capital Programme of £337.2m, as set out in section 5 and attached

at Appendices W1 and W2;

 

Housing Revenue Account

 

5 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 17 December 2015, and subsequent postal consultation, as

attached at Appendix X2;

 

6 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 17th December 2015, as attached at

Appendix X3;

 

7 Council be recommended to set a decrease in dwelling rents of 1.0% (an

average of £0.99 per week) – as per the requirements from government as

presented in section 6;

 

8 Council be recommended to set a decrease in the hostels accommodation

charge by 1.0% (or £0.39 per week), in accordance with Government

requirements;

 

9 Council be recommended to approve the following average weekly

increases for dwellings for:

 

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

 caretaking 1.80% (£0.06)

 grounds 1.80% (£0.03)

 communal lighting 1.80% (£0.01)

 bulk waste collection 1.80% (£0.02)

 window cleaning 1.80% (£0.09)

 tenants’ levy -30.0% (-£0.03)

 

(b) service charges to Lewisham Homes managed dwellings:

 caretaking 1.20% (£0.07)

 grounds 68.0% (£0.66)

 window cleaning No increase

 communal lighting -10.7% (-£0.13)

 block pest control -4.3% (-£0.07)

 waste collection No change

 heating & hot water 23.1% (£1.85)

 tenants’ levy -30.0% (-£0.03)

 bulk waste disposal new service (£0.81)

 sheltered housing new service (£23.62)

 

10 Council be recommended to approve the following average weekly

percentage changes for hostels and shared temporary units for;

 service charges (hostels) – caretaking etc.; 2.90% (£2.09)

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

 water charges decrease; -5.26% (£0.01)

 

11 Council be recommended to approve an increase in garage rents by Retail

Price Inflation (RPI) of 0.80% (£0.09 per week) for Brockley residents and

0.80% (£0.09 per week) for Lewisham Homes residents;

 

12 Council be asked to note that the budgeted expenditure for the Housing

Revenue Account (HRA) for 2016/17 is £167.6m which includes the capital

and new build programmes;

 

13 Council be recommended to endorse the HRA budget strategy savings

proposals in order to achieve a balanced budget in 2016/17, as attached at

Appendix X1;

 

Dedicated Schools Grant and Pupil Premium

 

14 Council be recommended to agree, subject to final confirmation of the

allocation, that the provisional Dedicated Schools Grant allocation of £283.5m

be the Schools’ Budget for 2016/17; and

 the consultation with schools on the changes to the funding arrangements

for High Needs Pupils as set out in paragraph 7.12 be noted;

 the level of pupil premium anticipated for 2016/17 of £18.0m

General Fund Revenue Budget be noted

 

15 Council be asked to note the projected overall variance against the agreed

2015/16 revenue budget of £6.9m as set out in section 8 of this report and

that any year-end overspend will have to be met from reserves;

 

16 Council be asked to endorse the previously approved revenue budget

savings of £6.462m for 2016/17 and budget savings proposals of £10.752 as

per the Mayor and Cabinet meeting of the 30 September 2015, as set out in

section 8 of the report and summarised in Appendix Y1 and Y2;

 

17 Council be asked to agree the transfer of £5.0m in 2016/17 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 2017/18;

 

18 Council be asked to agree the use of £5.942m reserves to meet the budget

gap in 2016/17;

 

19 Council be asked to agree to fund budget pressures in the sum of £3.750m

in 2016/17;

 

20 Council be asked to agree to create a fund in respect of as yet un-

quantified revenue budget risks in the sum of £3.750m in 2016/17, 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;

 

21  Council be recommended to approve a General Fund Budget

Requirement of £236.218m for 2016/17, based on a 3.99% increase in

Lewisham’s Council Tax element. This will result in a Band D equivalent

Council Tax level of £1,102.66 for Lewisham’s services and £1,378.66 overall.

This represents an overall increase in Council Tax for 2016/17 of 1.72% and

is subject to the GLA precept for 2016/17 being reduced by 6.44% from its

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

 

22 Council be asked to note the Council Tax Ready Reckoner which for

illustrative purposes sets out the Band D equivalent Council Tax at various

levels of increase. This is explained in section 8 of the report and set out in

more detail in Appendix Y3;

 

23 the Executive Director for Resources & Regeneration issues cash limits to

all Directorates once the 2016/17 Revenue Budget is agreed;

 

24 the Chief Financial Officer’s Section 25 Statement will be presented in the

Budget Update Report on the 17 February for approval;

 

25 the draft statutory calculations for 2016/17 be approved as set out at

Appendix Y5;

 

26 the prospects for the revenue budget for 2017/18 and future years be

noted as set out in section 9;

 

27 officers continue to develop firm proposals as part of the Lewisham Future

Programme to help meet the forecast budget shortfalls;

Other Grants (within the General Fund)

 

28 the adjustments to and impact of various specific grants for 2016/17 on the

General Fund as set out in section 8 be noted;

 

Treasury Management Strategy

 

29 Council be recommended to approve the prudential indicators and treasury

limits, as set out in section 10;

 

30 Council be recommended to approve the 2016/17 treasury strategy,

including; the potential for debt restructuring and opportunity to invest for

longer than one year in pooled property funds, along with the investment

strategy and the credit worthiness policy, as set out at Appendix Z3;

 

31 Council be recommended to approve the revised Minimum Revenue

Provision (MRP) policy as set out in section 10;

 

32 Council be recommended to agree to delegate to the Executive Director for

Resources & Regeneration authority during 2016/17 to make amendments to

borrowing and investment limits provided they are consistent with the strategy

and there is no change to the Council’s authorised limit for borrowing;

 

33 Council be recommended to approve the credit and counterparty risk

management criteria, as set out at Appendix Z3, the proposed countries for

investment at Appendix Z4, and that it formally delegates responsibility for

managing transactions with those institutions which meet the criteria to the

Executive Director for Resources & Regeneration; and

 

34 Council be recommended to approve a minimum sovereign rating of AA- ;

 

35 Council be recommended to approve a change to the yellow and purple

durational investment bands from 1 to 2 years in the credit worthiness policy.