PLEASE BRING ALONG YOUR CABINET AGENDA FOR 18 JANUARY, 2012
Minutes:
The Committee received a report on the completion of the revenue and capital budgets for 2012/13 following agreement of the 5 year Medium Term Financial Strategy.
The report had been to Cabinet that morning where it had been agreed that a 0% increase in Council Tax be recommended. It was stated that all expenditure was under control but there were some areas where income was down such as land charges fees, planning fees and car parking fees. It had been predicted that all of these areas would be affected by the economic situation and an allowance of £200,000 had been included in the budget to take account of it. Further allowances had now been made for the shortfalls following clear identification of the affected areas and actions had been taken to reflect them in the MTFS such as a reduction in the anticipated income from land charges,
There was a ‘gap’ for 2012/13 of £2.621m and a number of proposals had been identified to bridge it which would leave a deficit on the draft budget of £523,000.
The question was raised as to whether there were areas in the MTFS that had led to the deficit or whether the primary cause was a shortfall in government funding. It was stated that one reason for the shortfall were the holding costs for Jubilee 1 and Knutton Recreation centre and a rule change that had come into law regarding empty properties, this had been taken into consideration for 2012/13. There was however still uncertainty regarding how long the holding costs would be paid for as they were dependant on how the sites were classed, what they were used for and how long they remained the property of the Council. It was as yet uncertain how long Knutton Recreation Centre would remain operation and it was confirmed that only the outdoor football area was operation with staff employed to cover this activity only. The timing and nature of any full closure would be dependant on the outcome of public consultation exercises.
The Committee questioned whether steps were being taken to increase income to the Council. Promotional activities were due to start to help promote car parking in the Borough through improved signage and the marketing and promotional plan for Jubilee 2 would kick in from April 1st 2012 and would be closely monitored. Members stated that they would need to monitor both of these areas closely.
The Committee discussed the restructurings that had recently been undertaken in the Council and those that were still ongoing and proposed. Members requested clarity regarding how many actual jobs were included in the 60 FTE jobs that had removed from the Councils structure; it was agreed that information regarding this provided in writing to Committee Members.
It was reported that £30,000 savings in energy costs had been made through the re tendering of contracts to fixed rates through partnership working with the County Council and the new procurement framework.
Clarity was requested regarding the energy costs that would need to be met when the new tenants moved into the Civic Offices and information was sought regarding how these costs would be calculated. It was stated that costs would be allocated depending on the proportion of floor space occupied by the tenants and that negotiations were still ongoing with the police due to the fact that they would be using the premises seven days a week, 24 hours a day. There would be no additional costs for the Borough Council.
Concerns were raised by Members regarding the impact that a 0% increase in Council Tax this year could have on future year’s budgets due to the grant from the government being a one off. There was however no suggestion that there should be an increase in the rate of Council Tax. Officers confirmed that in order to receive the grant from Government no increase in Council Tax could be made.
The Committee queried whether there had been further areas of potential savings that had been identified in the Service Reviews in 2010 that had not been followed up or that could still be addressed. Officers agreed to provide further details of these in writing for the next meeting.
The Committee queried section 7.4 of the report which referred to the need to top up the Insurance Fund by £120,000. Members questioned why the fund needed to be increased. Officers agreed that a written answer regarding this be provided to Members of the Committee.
The Committee requested that further information was required to enable Members to fully evaluate the budget proposals and it was agreed that the 100 page 2011/12 budget book be circulated electronically to the Committee.
The Committee thanked Officers for having provided a comprehensive and well written report.
Resolved: (a) That the following written response be provided to Members prior to the next meeting on Wednesday 25th January 2012:
I. A Breakdown of the Full Time Equivalent Posts Job Savings.
II. A list of the outstanding items from the Budge Service Reviews in 2010.
III. Information regarding the need to top up the insurance fund.
(b) That the comments of the Committee be put forward to Cabinet