Issue - meetings

(Cabinet Member with Special Responsibility Councillor Thomas)

Joint report of the Corporate Director (Finance and Performance) and Head of Financial Services to follow. 

(Cabinet Member with Special Responsibility Councillor Thomas)

(It was noted that Mr T Hamilton-Cox, had spoken to this item at the start of the meeting in accordance with the City Council’s agreed procedure for public speaking at Cabinet.)

The Corporate Director (Finance and Performance) and Head of Financial Services submitted a joint report to inform Cabinet of the latest position following Council’s consideration of the Budget and Policy Framework at its meeting held on 3 February, and to make recommendations back to Council in order to complete the budget setting process for 2010/11.

The options, options analysis, including risk assessment and officer preferred option and comments, were set out in the report as follows:

Corporate Plan and Priorities

Cabinet has the option of updating the proposed priorities to take account of the consultation and other information.  In doing so, the impact and scope for any redirection of resources must be considered, particularly should any major changes be proposed.

Funding Assumptions and Achieving a Balanced Capital Programme

The broad options for achieving a balanced programme are set out below and are very much dependent on Members’ views on spending priorities.  As such, a full options appraisal and risk assessment cannot be completed until budget proposals are known in more detail.  That said, the basic options for achieving savings include:

-            removing schemes from the draft programme, taking account of service needs and priorities;

-            reducing proposed net expenditure on schemes, where possible;

-            generating or allocation additional capital resources (e.g. receipts, direct revenue financing, use of reserves or borrowing), within affordable limits;

-            deferring projects into later years – although this would not help with the overall five-year programme unless schemes were deferred until after 2014/15.

Should surplus resources be available, these could be used:

–         to repay borrowing, or to reduce the call on the revenue budget;

–         to fund new capital schemes;

–         to make provision for other anticipated liabilities.

As referred to in earlier reports, setting a balanced capital programme is an iterative process, essentially balancing service delivery impact and aspirations against what the Council can (and is prepared to) afford.  The programme attached represents the outcome of the work undertaken to date.

In deciding the way forward, Cabinet is asked also to take into account the relevant basic principles of the Prudential Code, which are:

-          that the capital investment plans of local authorities are affordable, prudent and sustainable, and

-          that local strategic planning, asset management planning and proper options appraisal are supported.

      Revenue Budget

As Council has now determined the City Council Tax Rate for 2010/11, there are no options to change the total net revenue budget for next year (recommended at £24.740M) but Cabinet now needs to put forward detailed budget proposals that add back to that amount.  Detailed options would be dependent very much on Members’ views on spending priorities and as such, a full options analysis could only be undertaken once any alternative proposals are known and it should be  ...  view the full minutes text for item 134

(Cabinet Member with Special Responsibility Councillor Thomas)

Reports of Corporate Director (Finance and Performance), Corporate Director (Community Services) and Head of Financial Services to follow.

(Cabinet Member with Special Responsibility Councillor Thomas)

The Corporate Director (Finance and Performance) and Head of Financial Services submitted a joint report providing Members with information on the latest budget position for current and future years, to allow Cabinet to make recommendations to Council on Council Tax levels for 2010/11.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Options are dependent very much on Members’ views on spending priorities balanced against Council Tax levels.  As such, a full options analysis could only be undertaken once any alternative proposals are known and it should be noted that Officers may require more time in order to do this.  Outline options are highlighted below, however.

·         With regard to the Revised Budget and resulting overspending, Cabinet could consider other proposals that may influence the Revised Budget for the year.

·         In terms of surplus Balances generally, it could consider retaining balances at a higher level than the minimum.

·         Regarding Council Tax increases, various options are set out at section 8 of the report.  In considering these, Members should have regard to the impact on service delivery, the need to make savings or provide for growth, the impact on future years and the likelihood of capping.

·         With regard to items for noting, no options are presented.

·         With regard to developing savings and growth options to produce a budget in line with preferred Council Tax levels, any proposals put forward by Cabinet should be considered alongside the development of priorities and in light of the public consultation.  Emphasis should be very much on achieving recurring reductions to the revenue budget, and avoiding any “unidentified” savings targets that undermine the robustness of the budget and financial planning arrangements generally.

Under the Constitution, Cabinet is required to put forward budget proposals for Council’s consideration, in time for them to be referred back as appropriate.  This is why recommendations are required to feed into the Council meeting in February, prior to the actual Budget Council in March.

The Officer Preferred options are as reflected in the report’s recommendations.

There is no specific officer preferred option with regard to Council Tax levels.  That said, both the Chief Executive and the s151 Officer would advise against planning for a Council Tax increase much lower than 4% at this time, at least for 2010/11, if Members aim to continue to provide a wide range of services to the public and wish to avoid more potential for major service cuts in future years.  Conversely, they would advise against aiming for an increase of around 5% or above at this time. 

Members asked if the comments from the public, rather than just the statistics shown at Appendix G of the report, could be circulated and were informed that this information would be made available to Cabinet Members shortly.

It was moved by Councillor Thomas and seconded by Councillor Langhorn:-

“That recommendations (1)-(5), as set out in the report, be approved.”

It was proposed by  ...  view the full minutes text for item 106