Agenda item

(Cabinet Member with Special Responsibility Councillor Bryning)

 

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

(Cabinet Member with Special Responsibility Councillor Bryning)

 

The Corporate Director (Finance and Performance) and the Head of Financial Services submitted a joint report informing members of the latest position following Council’s consideration of the Budget and Policy Framework at its meeting held on 4^th February, to make recommendations back to Council in order to complete the budget setting process for 2009/10.

 

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

 

Cabinet are now requested to finalise their preferred revenue budget and capital programme proposals for referral on to Council, using the latest information as set out in this report.

           

Corporate Plan and Policy Framework

 

This is for noting only and therefore no options have been put forward.

 

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 additional capital resources (e.g. receipts, direct revenue financing 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 2013/14.

 

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 have now determined the City Council Tax Rate for 2009/10, there are no options to change the total net revenue budget for next year (recommended at £23.999M) 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 noted that Officers may require more time in order to do this.  The Head of Financial Services (as s151 Officer) would advise as strongly as possible that 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.

 

With regard to the use of surplus balances, Cabinet could put forward alternative arrangements with regard to the £191K available, but this would result in the need to make other budget savings.

 

Medium Term Financial Strategy (MTFS)

 

In terms of target Council Tax increases for future years and Government’s position on capping, it is felt that there is little scope for increasing the target above 4%, as Government has made it very clear about expecting increases to be substantially below 5%.  In considering any lower target, Members should have regard to the impact on service delivery, the need (and capacity) to make savings, or to provide for growth, and the impact on subsequent years.

 

Officer Preferred Option and Comments

 

The recommendations as set out in the report are in line with Officer recommendations.

 

Recommendations put forward by Cabinet should fit with any external constraints and the budgetary framework already approved (i.e. establishing a balanced, affordable capital programme, approving a budget level to tie in with a 4% increase in Council Tax and the Government’s stance regarding capping).  The recommendations as set out meet these requirements; the detailed supporting budget proposals are then a matter for Members.

 

Members firstly considered the General Fund Capital Programme and the Corporate Plan.

 

It was moved by Councillor Bryning and seconded by Councillor Gilbert:-

 

“That recommendations 2-7, as set out in the report, be approved.”

 

Members then voted:-

 

Resolved:

 

(5 Members (Councillors Archer, Blamire, Bryning, Gilbert and Kerr) voted in favour, 2 Members (Councillors Charles and Mace) voted against and 2 members (Councillors Barry and Fletcher) abstained.)

 

(1)               That Cabinet notes the actions of the Head of Financial Services with regard to the funding of asset acquisitions as outlined in section 3.1 of the report.

 

(2)               That Cabinet approves the current year’s revised General Fund Capital Programme as set out at Appendix B (as amended for items elsewhere on the agenda), for referral on to Council.

 

(3)               That Cabinet approves the draft Capital Investment Priorities for 2009/10 onwards, as set out at Appendix C.

 

(4)               That Cabinet approves the five-year draft Capital Programme from 2009/10 onwards as set out at Appendix B (as amended for items elsewhere on the agenda), together with the supporting principles and information as set out in section 3 of the report, and refers the resulting 5-year Programme on to Council, for final approval.

 

(5)               That the associated Prudential Indicators at Appendix D be updated in line with (4) above, and be referred on to Council for approval.

 

(6)               That the existing Capital Investment Strategy be updated in line with (3) and (4) above, for referral on to Council.

 

Members were provided with the current draft of the Corporate Plan and were reminded that Council approved the Plan at its meeting on 4^th February 2009, and asked that the remained outstanding sections of the Plan be completed and referred to the Council’s Business Committee for further consideration prior to Council formally signing off the Plan.

 

Councillor Bryning moved and Councillor Barry seconded:-

 

“That Cabinet notes the latest position regarding the Corporate Plan.”

 

Members then voted as follows:-

 

Resolved unanimously:

 

(7)               That Cabinet notes the latest position regarding the Corporate Plan.

 

The meeting adjourned for a comfort break at 2.30pm and reconvened at 2.40pm.

 

Cabinet then considered the General Fund Budget.

 

(The Corporate Director (Finance and Performance) declared an interest with regard to the part of the report relating to Williamson Park, in view of his role as Secretary to the Williamson Park Board of Directors).

 

Councillor Fletcher proposed and Councillor Kerr seconded:-

 

“(8)      That Cabinet recommends that £12,700 of the Every Child Matters reserve of £22,700 be retained, thereby offering up £10,000”.

 

Members then voted:-

 

Resolved:

 

(5 Members (Councillors Barry, Blamire, Fletcher, Gilbert and Kerr) voted in favour, 2 Members (Councillors Charles and Mace) voted against and 2 members (Councillors Archer and Bryning) abstained.)

 

(8)        That Cabinet recommends that £12,700 of the Every Child Matters reserve of £22,700 be retained, thereby offering up £10,000.

 

Councillor Bryning moved and Councillor Blamire seconded:-

 

“(9)      That Cabinet notes the position regarding estimated Collection Fund balances.

 

(10)      That Cabinet approves the reassessment of reserves as set out in section 5 of the report (as amended by Resolution 8 above), and notes that the full policy on provisions and reserves, as updated, will be reported into Council in support of Cabinet’s budget proposals.”

 

Members then voted:-

 

Resolved unanimously:

 

(9)        That Cabinet notes the position regarding estimated Collection Fund balances.

 

(10)      That Cabinet approves the reassessment of reserves as set out in section 5 of the report (as amended by Resolution 8 above), and notes that the full policy on provisions and reserves, as updated, will be reported into Council in support of Cabinet’s budget proposals.

 

Members then looked, item by item, at the information in Appendix G to the report, relating to Provisional Savings and Growth.

 

Councillor Blamire proposed and Councillor Mace seconded:-

 

“(11)    That Cabinet recommends the reduction to Cemeteries Grounds Maintenance of £8,800 in 2009/10; £8,900 in 20010/11 and £9,000 in 2011/12, as set out in Appendix G to the report”

 

Members then voted:-

 

Resolved:

 

(4 Members (Councillors Blamire, Bryning, Charles and Mace) voted in favour, 1 Member (Councillor Kerr) voted against and 4 Members (Councillors Archer, Barry, Fletcher and Gilbert) abstained.)

 

(11)      That Cabinet recommends the reduction to Cemeteries Grounds Maintenance of £8,800 in 2009/10; £8,900 in 20010/11 and £9,000 in 2011/12, as set out in Appendix G to the report.

 

Regarding Community Transport and the introduction of a flat fee, Councillor Mace proposed and Councillor Charles seconded:-

 

“(12)    That Cabinet recommends that a cap on the budget should not be introduced for this service.”

 

Members then voted:-

 

Resolved:

 

(4 Members (Councillors Barry, Charles, Gilbert and Mace) voted in favour and 5 Members (Councillors Archer, Blamire, Bryning, Fletcher and Kerr) abstained.)

 

(12)      That Cabinet recommends that a cap on the budget should not be introduced for this service.

 

Councillor Barry proposed and Councillor Gilbert seconded:-

 

“(13)    That Cabinet requests a further report on the Community Transport service level agreement.”

 

Resolved:

 

(7 Members (Councillors Archer, Barry, Blamire, Bryning, Fletcher, Gilbert and Kerr) voted in favour and 2 Members (Councillors Charles and Mace) voted against.)

 

(13)      That Cabinet requests a further report on the Community Transport service level agreement.

 

Members then went on to consider Financial Support to External Organisations (Minute 151 refers) before returning to Provisional Savings and Growth.

 

Councillor Bryning proposed and Councillor Barry seconded:-

 

(14)           That Council be recommended to approve the General Fund Revenue Budget at £23.999M for 2009/10, excluding parish precepts.

 

(15)           That, after consideration of provisional savings and growth within the table in Appendix G to the report, Cabinet makes the following recommendations regarding a balanced revenue budget for 2009/10, for referral on to Council:

 

·         reductions in support to outside bodies as detailed in Minute 151,

·         adjustments to the figures for Public Toilets and Grounds Maintenance (Minutes 140 and 148 refer)

·         removal of proposed savings on Community Pools, the Dog Warden service and Special Responsibility Allowances for Group Leaders and Administrators

·         removal of both the Legal and HR provisional growth items for voluntary registration with the Land Registry and increased Occupational Health advice.

 

The revised table of provisional savings and growth is attached as an Appendix to these minutes.

 

(16)           That the existing Medium Term Financial Strategy be updated in line with Cabinet’s budget proposals, for consideration by Council.

 

Resolved:

 

(7 Members (Councillors Archer, Barry, Blamire, Bryning, Fletcher, Gilbert and Kerr) voted in favour and 2 Members (Councillors Charles and Mace) voted against.)

 

(14)      That Council be recommended to approve the General Fund Revenue Budget at £23.999M for 2009/10, excluding parish precepts.

 

(15)      That, after consideration of provisional savings and growth within the table in Appendix G to the report, Cabinet makes the following recommendations regarding a balanced revenue budget for 2009/10, for referral on to Council:

 

·         reductions in support to outside bodies as detailed in Minute 151,

·         adjustments to the figures for Public Toilets and Grounds Maintenance (Minutes 140 and 148 refer)

·         removal of proposed savings on Community Pools, the Dog Warden service and Special Responsibility Allowances for Group Leaders and Administrators

·         removal of both the Legal and HR provisional growth items for voluntary registration with the Land Registry and increased Occupational Health advice.

 

The revised table of provisional savings and growth is attached as an Appendix to these minutes.

 

16.              That the existing Medium Term Financial Strategy be updated in line with Cabinet’s budget proposals, for consideration by Council.

 

Officers responsible for effecting the decision:

 

Corporate Director (Finance and Performance)

Head of Financial Services

 

Reasons for making the decisions:

 

The decisions enable Cabinet to make recommendations back to Council in order to complete the budget setting process for 2009/10. The report outlined the actions required to complete the budget setting process for 2009/10 and to set the financial planning framework for future years.