To consider the record of decision setting out the Mayor’s formal response to the Council’s objections to the Review of Reserves.

Further to the adjourned Council meeting held on 9 February 2017, members considered the submitted report on the Mayor’s response to the objections on the review of reserves and the reallocation of reserves from Harbours and Regeneration.

Mayor Oliver proposed and Councillor Mills seconded a motion as set out below:

(i)         that the transfer of £2.750m identified from a number of individual earmarked reserves (as detailed in paragraph A2.19 of the submitted report) to the following reserves be approved:

a)   £2.0m to the Comprehensive Spending Review to fund the predicted 2016/17 Council overspend primarily as a result of budget pressures in children’s and adults social care;  and

b)   £0.750m to the General Fund Reserve to be used as a contingency to support the Council’s financial risks in future years;  and

(ii)        that, given the significant financial pressures facing the Council in future years, the allocation of additional funds, as required, to the Comprehensive Spending Review Reserve in each budget process from 2018/2019 onwards to increase, and then maintain, an ongoing minimum balance in the reserve of £2m be agreed.

During the debate Councillor Bye proposed and Councillor Ellery seconded an amendment to the motion as follows:

(i)         that the transfer of £2.750m £2.277m identified from a number of individual earmarked reserves (as detailed in paragraph A2.19 of the submitted report with the exception of reserves for Harbours and Regeneration) to the following reserves be approved:

a)   £2.0m to the Comprehensive Spending Review to fund the predicted 2016/17 Council overspend primarily as a result of budget pressures in children’s and adults social care.

b)   £0.750m £0.277m to the General Fund Reserve to be used as a contingency to support the Council’s financial risks in future years.

A recorded vote was taken on the amendment.  The voting was taken by roll call as follows   For:  Councillors Amil, Barnby, Bent, Brooks, Bye, Carter, Cunningham, Darling (M), Darling (S), Doggett, Ellery, Hill, Kingscote, Lewis, Morey, Morris, O’Dwyer, Pentney, Robson, Sanders, Stocks, Stubley, Sykes, Thomas (D), Thomas (J), Tolchard, Tyerman and Winfield (28);  Against:  Mayor Oliver; Councillors Mills and Parrott (3); Abstain:  Councillors Excell, Haddock, King and Manning (4);  and Absent: Councillors Stockman and Stringer (2). Therefore, as more than two-thirds of members present and voting had cast their vote in support of the amendment, it was carried.

The amended (substantive) motion was then considered by members and as more than two-thirds of members present and voting had cast their vote in support, it was agreed by the Council as follows:

(i)         that the transfer of £2.277m identified from a number of individual earmarked reserves (as detailed in paragraph A2.19 of the submitted report with the exception of reserves for Harbours and Regeneration) to the following reserves be approved:

a)   £2.0m to the Comprehensive Spending Review to fund the predicted 2016/17 Council overspend primarily as a result of budget pressures in children’s and adults social care.

b)  £0.277m to the General Fund Reserve to be used as a contingency to support the Council’s financial risks in future years.

(ii)        that, given the significant financial pressures facing the Council in future years, the allocation of additional funds, as required, to the Comprehensive Spending Review Reserve in each budget process from 2018/2019 onwards to increase, and then maintain, an ongoing minimum balance in the reserve of £2m be agreed.