To consider the submitted Policy Framework document on a review of the Council’s reserves and any recommendations from the Overview and Scrutiny Board.

Members considered the submitted report setting out a review of the Council’s financial reserves as part of the Council’s annual budget process.

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 objection to the motion as follows:

that the Council formally objects to the Mayor’s review of reserves proposalson the basis of the reallocation of reserves from Harbours (£272,000) and Regeneration (£201,000).

In accordance with the Constitution at F4.9, the Council therefore requires the Mayor to consider this objection by 17 February 2017 and either:

a)         submit a revision of the review of reserveswith the reasons for any amendments to the Council for its consideration;  or

b)        inform the Council of any disagreement that the Executive has with any of the Council’s objections and the Executive’s reasons for any such disagreement.

The objection was put to the vote and declared carried.

The objection (substantive motion) was then considered by members, which was agreed by Council (shown in bold text above).  The Mayor would consider the objection and publish his response by 17 February 2017 for consideration at the Council meeting on 23 February 2017.

To consider the submitted Policy Framework document on a review of the Council’s reserves and any recommendations from the Overview and Scrutiny Board.

The Board considered the report which set out the annual review of reserves.  The report highlighted the significant risks facing the Council in 2017/2018 and future years and how it was essential that the Council’s reserves provide sufficient contingency to meet the increasing risk.

Resolved:  (i)  that a task-and-finish group be established to consider the report in detail and make any recommendations to the Council; and

(ii)        that the Mayor acknowledges the Chief Finance Officer’s statement in relation to the financial challenges that the Council continues to face and is requested to present a revenue budget to the Council which assumes that Council Tax will be increased by a further 1% for Adult Social Care purposes in 2017/2018.