Agenda item

The Council had before it a joint report by the Director of Corporate Governance and the Director of Housing and Environment which presented the 2014/15 General Fund revenue budget along with indicative five year budgets.

 

The report recommended:-

that the Council -

(a)          approve the revenue budget for 2014/15 as at appendix 1 to the report, along with an indicative five year budget;

(b)          approve the continuation of a Risk Fund to mitigate against any in year cost pressures;

(c)          approve the Council’s Workforce Plan as at appendix 4 to the report;

(d)          agree to freeze the level of Council tax for 2014/15 at the same level as 2013/14; and

(e)          continue to retain uncommitted revenue reserves in accordance with the Reserves Strategy, which presently showed a requirement for £11.3million to be held.

 

Councillor Crockett moved, seconded by Councillor Boulton:-

            That the Council -

(1)      approve the recommendations contained within the report;

(2)      note the significant cost of living challenges faced by our employees and instruct officers, in consultation with trades unions, to gather evidence on the cost of this and other relevant factors affecting City Council employees and present this evidence to a future meeting of the Finance, Policy and Resources Committee for consideration;

(3)      in the interim, instruct the Chief Executive to write to the Cabinet Secretary of Finance and Sustainable Growth to request the Scottish Government to consider funding for an Aberdeen Weighting Allowance;

(4)      instruct the Chief Executive to write to COSLA before 31 March 2014 to advise that the Council would terminate its membership of the organisation with effect from 1 April 2015 but reserved its right to withdraw such notice at any point during 2014/15 in view of the impending review of the COSLA Constitution and Standing Orders; and

(5)      instruct the Chief Executive to write to the Cabinet Secretary for Finance and Sustainable Growth seeking an assurance that as part of the next three year settlement starting in 2015/16, no local authority would receive less than a minimum of 85% of the Scottish average in terms of revenue support.

 

During the course of his budget speech, Councillor Crockett:-

• announced that an additional £200,000 was contained within the budget to deliver on strategic procurement, and instructed all Directors to report back in terms of how a reduction of approximately £1.5million could be achieved in contract pricing;
• highlighted that to deliver on the priority of smarter living (quality of life), the following items were contained within the budget:-

• highlighted that to deliver on the priority of smarter people, the following items were contained within the budget:-

·           a commitment of £1.8million to provide 600 hours of nursery care for three and four year olds

·           an investment of £1.2million in developing service delivery, which included formalising support for curriculum for excellence specifically focusing on the core areas of literacy and numeracy, and extending the city campus model to offer greater opportunities for vocational learning

·           £639,000 additional funding for all schools across the city to be spent at local level on priorities to be determined locally

·           £20,000 for Aberdeen Lads Club

·           additional funding for leased community centres - £500 each plus additional funding to meet insurance costs (£20,000 in total);

• highlighted that to deliver on the priority of smarter environment, the following items were contained within the budget:-

·           £861,000 investment in waste to continue to expand the food waste collection service across the city

·           50% reduction in allotment charges for the over 60s

·           a reduction in residents’ parking permit fees of £10 per year saving users £150,000

·           a limitation on parking charges to 8pm saving users £50,000 per year

·           £200,000 to improve the carbon reduction plan;

• highlighted that to deliver on the priority of smarter governance, the following items were contained within the budget:-

·      £66,000 set aside for the European Parliamentary Elections and the Scottish Independence Referendum

·      £10,000 to improve communication with citizens;

• highlighted that to deliver on the priority of smarter economy, an additional £2million was contained within the budget towards increased fuel costs, and that in order to mitigate against these costs in the future, Aberdeen Heat and Power would be rolled out wherever possible; and
• highlighted that to deliver on the priority of smarter mobility, significant investment in roads, traffic management and ICT was proposed within the capital programme

 

Councillor McCaig moved as an amendment, seconded by Councillor Noble:-

            That the Council -

(1)      approve the amended revenue budget for 2014/15 as set out below, along with an indicative five year budget;

(2)      remove the Risk Fund;

(3)      approve the Council’s Workforce Plan as at appendix 4 to the report;

(4)      freeze the level of Council tax for 2014/15 at the same level as 2013/14; and

(5)      continue to retain uncommitted revenue reserves in accordance with the Reserves Strategy, which presently showed a requirement for £11.3million to be held.

 

	2013/14	2014/15	2015/16	2016/17	2017/18	2018/19
Service	£'000	£'000	£'000	£'000	£'000	£'000
Corporate Governance	28,113	28,095	28,025	28,312	28,586	28,823
Social Care and Wellbeing	121,514	122,938	123,781	126,589	129,197	131,605
Education, Culture and Sport	162,319	169,288	172,132	178,000	180,036	182,428
Housing and Environment	36,644	36,176	34,458	37,381	37,649	37,921
Enterprise, Planning and Infrastructure	40,489	39,485	40,279	41,975	43,386	43,524
Office of Chief Executive	871	937	904	969	1,270	1,002
Council Expenses	2,150	2,150	2,150	2,150	2,150	2,150
Miscellaneous Services	41,265	39,788	46,122	50,627	58,812	63,577
Joint Boards	1,512	1,512	1,512	1,512	1,512	1,512
Net Cost of Service	434,877	440,368	449,363	467,516	482,598	492,543
Funding
General Revenue Grant - Note 1	(144,345)	(132,717)	(133,418)	(133,418)	(133,418)	(133,418)
Non Domestic Rates	(177,084)	(193,738)	(193,738)	(193,738)	(193,738)	(193,738)
Assumed Settlement Position	0	0	(3,500)	(7,000)	(9,000)	(9,000)
Teachers Induction Scheme Grant		0	0	0	0	0
Council Tax	(99,793)	(100,273)	(102,903)	(105,314)	(107,773)	(107,773)
Trading Services Surplus	(13,654)	(13,640)	(13,879)	(13,642)	(13,566)	(13,479)
Children & Young People's Bill		0	0	0	0	0
Funding	(434,876)	(440,368)	(447,438)	(453,112)	(457,495)	(457,408)
Budget (Surplus)/Deficit	0	0	1,925	14,404	25,103	35,134
Trading Adjustment	0	0	0	0	0	0
Current (Surplus)/Deficit	0	0	1,925	14,404	25,103	35,134
Amendments:
Early Years Education Spend in Regeneration Areas		750	750	750	750	750
Removal of Administration Proposal to Reduce Parking permits		(150)	(300)	(450)	0	0
5% Reduction in Enhanced Councillor Salaries and Removal of Second Vice Convener in Social Work		(20)	(20)	(20)	(20)	(20)
Permit Charges for Town House (£250 per annum)		(14)	(14)	(14)	(14)	(14)
Remove 2 Taxi Marshals		(12)	(12)	(12)	(12)	(12)
Remove Roads Building Inspector Post		(35)	(35)	(35)	(35)	(35)
Efficient Use and Maintenance of Grass Cutting Equipment		(53)	(53)	(53)	(53)	(53)
Removal of Fairer Scotland Fund Saving		0	250	250	250	250
Capital Financing Costs on Additional Capital Proposals		0	0	0	528	672
		467	2,491	14,820	26,497	36,673
Use of contingencies		(467)	(467)	(467)	(467)	(467)
SNP Net Budget		(0)	2,024	14,353	26,030	36,206

 

 

Councillor Yuill moved as a further amendment, seconded by Councillor Jennifer Stewart:-

That the Council -

(1)      approve the amended revenue budget for 2014/15 as set out below, along with an indicative five year budget;

(2)      approve the continuation of a Risk Fund to mitigate against any in year cost pressures;

(3)      approve the Council’s Workforce Plan as at appendix 4 to the report;

(4)      freeze the level of Council tax for 2014/15 at the same level as 2013/14; and

(5)      continue to retain uncommitted revenue reserves in accordance with the Reserves Strategy, which presently showed a requirement for £11.3million to be held.

 

	2013/14	2014/15	2015/16	2016/17	2017/18	2018/19
Service	£'000	£'000	£'000	£'000	£'000	£'000
Corporate Governance	28,113	28,095	28,025	28,312	28,586	28,823
Social Care and Wellbeing	121,514	122,938	123,781	126,589	129,197	131,605
Education, Culture and Sport	162,319	169,288	172,132	178,000	180,036	182,428
Housing and Environment	36,644	36,176	34,458	37,381	37,649	37,921
Enterprise, Planning and Infrastructure	40,489	39,485	40,279	41,975	43,386	43,524
Office of Chief Executive	871	937	904	969	1,270	1,002
Council Expenses	2,150	2,150	2,150	2,150	2,150	2,150
Miscellaneous Services	41,265	39,788	46,122	50,627	58,812	63,577
Joint Boards	1,512	1,512	1,512	1,512	1,512	1,512
Net Cost of Service	434,877	440,368	449,363	467,516	482,598	492,543
Funding
General Revenue Grant - Note 1	(144,345)	(132,717)	(133,418)	(133,418)	(133,418)	(133,418)
Non Domestic Rates	(177,084)	(193,738)	(193,738)	(193,738)	(193,738)	(193,738)
Assumed Settlement Position	0	0	(3,500)	(7,000)	(9,000)	(9,000)
Teachers Induction Scheme Grant		0	0	0	0	0
Council Tax	(99,793)	(100,273)	(102,903)	(105,314)	(107,773)	(107,773)
Trading Services Surplus	(13,654)	(13,640)	(13,879)	(13,642)	(13,566)	(13,479)
Children & Young People's Bill		0	0	0	0	0
Funding	(434,876)	(440,368)	(447,438)	(453,112)	(457,495)	(457,408)
Current (Surplus)/Deficit	0	0	1,925	14,404	25,103	35,134
Amendments:
Deletion of one of two posts of Vice Convener of Social Care & Wellbeing Committee		(5)	(10)	(15)	(20)	(25)
Education: Increase in per capita		100	100	100	100	100
Environmental initiatives (local improvements, dog waste bins, warning signs, etc.)		50	50	50	50	50
Additional street tree planting		50	50	50	50	50
Provision of additional bus shelters		50	50	50	50	50
Undertake public consultation on the possible introduction of controlled parking zones at "Ashley" and Hill of Rubislaw / Carnegie		70	70	70	70	70
Abolition of Sunday on-street parking charges		64	128	192	256	320
Adjustment of Monday-Saturday on street parking charges to end at 6.30pm		53	106	159	212	265
Adjustment of Monday-Saturday off street parking charges to end at 6.30pm		93	186	279	372	465
Flood guards grant scheme		50	50	50	50	50
Capital Financing Costs on Additional Capital Proposals		120	280	440	600	760
		695	2,985	15,829	26,893	37,289
Use of contingencies		(695)	(695)	(695)	(695)	(695)
Liberal Democrats'  Net Budget		0	2,290	15,134	26,198	36,594

 

 

During the course of his summing up, Councillor McCaig advised that he was willing to accept points (2) and (5) of Councillor Crockett’s motion within the terms of his amendment and this was accepted.

 

There being a motion and two amendments, the Council first divided between the amendment by Councillor McCaig and the amendment by Councillor Yuill.

 

On a division, there voted:-

 

For the amendment by Councillor McCaig  (15)  -  Councillors Blackman, Cameron, Corall, Cormie, Dickson, Jackie Dunbar, Jaffrey, Kiddie, MacGregor, McCaig, May, Noble, Samarai, Sandy Stuart and Townson.

 

For the amendment by Councillor Yuill  (5)  -  Councillors Delaney, Greig, Malone, Jennifer Stewart and Yuill.

 

Declined to vote  (23)  -  Lord Provost; Depute Provost; and Councillors Allan, Boulton, Carle, Cooney, Crockett, Donnelly, Lesley Dunbar, Finlayson, Forsyth, Graham, Grant, Ironside, Laing, Lawrence, Malik, Milne, Jean Morrison, Nathan Morrison, Taylor, Thomson and Young.

 

The Council then divided between the motion and the amendment by Councillor McCaig.

 

On a division, there voted:-

 

For the motion  (28)  -  Lord Provost; Depute Provost; and Councillors Allan, Boulton, Carle, Cooney, Crockett, Delaney, Donnelly, Lesley Dunbar, Finlayson, Forsyth, Graham, Grant, Greig, Ironside, Laing, Lawrence, Malik, Malone, Milne, Jean Morrison, Nathan Morrison, Jennifer Stewart, Taylor, Thomson, Young and Yuill. 

 

For the amendment by Councillor McCaig  (15)  -  Councillors Blackman, Cameron, Corall, Cormie, Dickson, Jackie Dunbar, Jaffrey, Kiddie, MacGregor, McCaig, May, Noble, Samarai, Sandy Stuart and Townson.

 

The Council resolved:-

(i)           to adopt the motion; and

(ii)          to thank the Chief Executive and her staff for their hard work, with particular mention to the Head of Finance and his team for their valued assistance with the budget process.