(i)            That the Council’s objections in relation to the Corporate Plan be accepted;  and

(ii)          That the Council be recommended to revise the current Corporate Plan under ‘Use reducing resources to best affect’ as set out below (changes shown in bold red text):

Use reducing resources to best effect

Thinking for the future

We will continue to ensure we are working to maximise efficiencies, ensuring every pound and every hour of work is well spent but the scale of the budget gap means this alone will not be enough. Therefore we will need to think and act differently:

•We may stop providing some services.

Including reducing the Connections Service in Torquay and Brixham, but maintaining an appointments system for face to face customer service presence for one day per week in Brixham and Torquay libraries,  with any further changes made to the locations of face to face customer service being determined by Full Council.

(i)            that the Executive Lead for Business accepts the Council’s objection; and

(ii)          that the Mayor’s final budget proposals include a revised amount of £744,000 (an increase of £10,000) for Customer Services to enable an appointments system for face to face enquiries one day per week in Council libraries in Torquay and Brixham.  The additional £10,000 funding for Customer Services to be allocated from the Grant Income and Contingencies budget.  This revision updates recommendation 2.1 (c) of the original submitted report.

(i)              That the Council’s objections in relation to the Corporate Plan be accepted;  and

(ii)             That the Council be recommended to revise the current Corporate Plan under ‘Use reducing resources to best affect’ as set out below (changes shown in bold red text):

Use reducing resources to best effect

Thinking for the future

We will continue to ensure we are working to maximise efficiencies, ensuring every pound and every hour of work is well spent but the scale of the budget gap means this alone will not be enough. Therefore we will need to think and act differently:

•We may stop providing some services.

•  Some services will need to be provided differently with greater community support and/or with integrated working with our partners.  Including reviewing the delivery of libraries whilst maintaining libraries in Torquay, Paignton, Churston and Brixham.

(i)         That the Mayor’s funding proposals in relation to the Strand as outlined at recommendation 3.8 of the submitted report be withdrawn;

(ii)        That the Mayor accepts the objections of the Council in relation to Matrix Scoring Criteria whereby the prioritisation of unfunded capital projects by a Matrix Scoring Criteria is undertaken by the Executive Director – Operations and Finance and Chief Finance Officer in consultation with the Mayor and Group Leaders.  The Matrix Scoring Criteria and the resulting prioritised list of unfunded capital projects will be included in future revisions of the Capital Strategy for consideration by the Council;

(iii)       That the Council’s objections in relation to the criteria for the management of the Investment Fund be accepted;

(iv)       As a result of (i) to (iii), the Mayor’s final budget proposals are set out below:

1.         That the latest position for the Council’s Capital expenditure and funding for 2015/16 be noted.

2.         That 2016/17 Capital Strategy (set out at Appendix 1 of the submitted report) be approved.

3.         That prudential borrowing of £10 million for an Investment Fund to enable acquisition of properties for investment purposes to be funded from future rental income be approved.  Criteria for the purchases within the Fund be presented to Council for approval in due course.

4.         That prudential borrowing of £3 million for essential capital repair works be approved with the cost of borrowing to be included in future year revenue budgets and that the allocation of the budget be agreed by the Executive Head – Business Services in consultation with the Chief Finance Officer and the Mayor and Group Leaders with the Overview and Scrutiny Co-ordinator being notified in advance of any decisions.

5.         That prudential borrowing of £0.350 million to upgrade and update the Council’s CCTV equipment be approved with the cost of borrowing to be included in future year revenue budgets offset by any future external contributions and any resulting revenue savings.

6.         That prudential borrowing of £1.0 million for an IT Investment Fund for 2016/17 to 2019/20 be approved with the cost of borrowing to be included in future year revenue budgets and that the allocation of the Fund be agreed by Executive Director of Operations and Finance consultation with the Chief Finance Officer, the Executive Head – Customer Services and the Executive Lead for Customer Services.

7.         That the reallocation of £0.5m within the existing schools capital allocation to provide two mobile accommodation buildings at Paignton Community Sports Academy be approved to meet an immediate need for pupil places.

8.         That the Council will not take up the option in 2016/17 of using capital receipts to fund one off revenue costs of transformation to meet future budget reductions.

9.         That, subject to approval of 3. to 8. above, the budget forecast for 2016/17 to 2019/20 at Appendix 2 of the submitted report be approved as the Capital Plan.

10.       That the Corporate Asset Management Plan for 2015 – 2019 (as set out in Appendix 4 of the submitted report) be approved.

That the Mayor disagrees with the objection.

That it be recommended to the Council:

(i)       that the latest position for the Council’s Capital expenditure and funding for 2015/16 be noted;

(ii)      that 2016/17 Capital Strategy (set out at Appendix 1 to the submitted report) be approved;

(iii)      that prudential borrowing of £10 million for an Investment Fund to enable acquisition of properties for investment purposes to be funded from future rental income be approved and that purchases within the Fund to besubject to specific criteria:

-        Rate of Return expected to exceed 6% per annum net of costs;

-        Property assessed as an asset life in excess of 50 years (or repayment period);

-        Tenants assessed as reasonable credit quality and pre lets agreed if possible;

-        Independent valuation of asset to support purchase price

-        Any UK property to be considered subject to no more than 50% in any county area;

-        Any sale proceeds of assets purchased to be reinvested in fund;

and that the allocation of the Fund, if the criteria is met, be agreed by Executive Director  of Operations and Finance in consultation with the Chief Finance Officer and the Mayor and Group Leaders with the Overview and Scrutiny Co-ordinator being notified in advance of any decisions;

(iv)     that prudential borrowing of £3 million for essential capital repair works be approved with the cost of borrowing to be included in future year revenue budgets and that the allocation of the budget be agreed by the Executive Head – Business Services in consultation with the Chief Finance Officer and the Mayor and Group Leaders with the Overview and Scrutiny Co-ordinator being notified in advance of any decisions;

(v)      that prudential borrowing of £0.350 million to upgrade and update the Council’s CCTV equipment be approved with the cost of borrowing to be included in future year revenue budgets offset by any future external contributions and any resulting revenue savings;

(vi)     that prudential borrowing of £1.0 million for an IT Investment Fund for 2016/17 to 2019/20 be approved with the cost of borrowing to be included in future year revenue budgets and that the allocation of the Fund be agreed by Executive Director of Operations and Finance consultation with the Chief Finance Officer, the Executive Head – Customer Services and the Executive Lead for Customer Services;

(vii)     that the reallocation of £0.5m within the existing schools capital allocation to provide two mobile accommodation buildings at Paignton Community Sports Academy be approved to meet an immediate need for pupil places;

(viii)    that the allocation of £0.350m to improvements at The Strand in Torquay in line with the proposed Corporate Plan Delivery Plans be approved and that the Council determine whether this is funded from:

Option 1:  prudential borrowing when the scheme is deemed to be self financing; or

Option 2: the Comprehensive Spending Review Reserve;

(ix)     that the Council will not take up the option in 2016/17 of using capital receipts to fund one off revenue costs of transformation to meet future budget reductions;

(x)      that, subject to approval of (iii) to (ix) above, the budget forecast for 2016/17 to 2019/20 at Appendix 2 to the submitted report be approved as the Capital Plan;

(xi)     that the Corporate Asset Management Plan for 2015 – 2019 (as set out in Appendix 4 to the submitted report) be approved.

That it be recommended to Council:

(a)            that the net revenue expenditure and council tax requirement for 2016/17 as shown in paragraph 3.3, that includes the funding raised by the 2% council tax increase specifically for adult social care, be approved;

(b)            that in relation to (a) above Council confirms  its commitment (by a statement signed by the s151 officer) to allocate the additional funding raised by the 2% council tax increase to adult social care in 2016/17 and in future years;

(c)            that the 2016/17 allocation of the revenue budget to services as per the budget digest and the associated fees and charges (both circulated separately) be approved;

(d)            that the Dedicated Schools Grant be used in accordance with the nationally laid down Schools Financial Regulations (para 11) and that the Chief Finance Officer be authorised to make amendments as required when the final figures are confirmed and this authorisation be included in the officer scheme of delegation;

(e)            that in accordance with the requirement of the Local Government Act 2003, to consider and note the advice given by the Chief Finance Officer with respect to the robustness of the budget estimates and the adequacy of the Council’s reserves (para 12);

(f)             that Council approve the temporary use of £2.5m from the Insurance Reserve in 2015/16 to fund the projected 2015/16 overspend, which is  to be repaid from the 2016/17 budget;

(g)            that Council note that Brixham Town Council have yet to set their budget for 2016/17 and this precept, when known, will be included as part of the Torbay Council budget for Council Tax setting purposes;

(h)            that, subject to clarification of the acceptance process from DCLG, that Council delegate acceptance of a four year funding settlement for Revenue Support Grant to the Chief Finance Officer in consultation with the Mayor  and Executive Director of Operations and Finance;

(i)              that, the Review of Reserves 2016/2017 as set out in the submitted report attached at appendix 3, be approved; and

(j)              that, the Treasury Management Strategy 2016/2017 (incorporating the Annual Investment Strategy 2016/2017 and the Minimum Revenue Provision Policy 2016/2017) as set out in the submitted report attached at appendix 4 be approved.

That further to the decision taken by the Mayor on 6 November 2015 set out at http://www.torbay.gov.uk/DemocraticServices/ieDecisionDetails.aspx?ID=415 consultation be undertaken on a proposal to raise Council Tax by up to 2% to generate new funding to spend exclusively on Adult Social Care.  This proposal is in addition to the existing proposal to increase Council Tax by 1.99%.

(i)       That all Members and the Overview and Scrutiny Board consider the draft revenue and capital budgets and implications of the draft service change, income generations and savings proposals. The Overview and Scrutiny Board (through its Priorities and Resources Review Panel) will consider certain specific issues arising from these savings proposals and report back to the Mayor and the Council on 3 February 2016 on the outcomes of its deliberations and stakeholder representations.

(ii)      The draft service change income generation and savings proposals are based upon the expected reduction in government grant.   The actual grant allocations are expected to be announced in December 2015.

(iii)      That detailed consultation be undertaken with service users who may be affected by specific proposals and that Equality Impact Assessments continue to be developed as required.  (The results from this consultation will also be considered by the Mayor and the Council on 3 February 2016.)

(iv)     That the Chief Finance Officer be given authority to amend these budget proposals for any technical adjustments necessary between services and within the overall envelope of funding in agreement with the Mayor.

(v)      That the Chief Finance Officer report to Council on 3 February 2016 on the implications for 2016/2017 as a result of these proposals currently being considered and in light of the final settlement which is expected in late January or early February.