58 BUDGET AND MEDIUM TERM PLAN 2010-2015 draft proposals PDF 198 KB
To consider a report by the Head of Financial Services.
Contact: S Couper 388103
Decision:
Recommended the draft Medium Term Financial Plan to full Council as the basis for the development of the 2010/2011 budget, the revised MTP to 2014/2015 and the Financial Strategy to 2023/2024.
Minutes:
By way of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Cabinet were acquainted with the present position on the draft 2010/2011 budget, the Medium Term Plan for the period up to 2014/2015 and the longer term financial forecast to 2023/2024.
In reviewing the issues involved, Members’ attention was drawn to the conclusions reached by the Overview and Scrutiny Panel (Economic Well-Being) on the proposals for Huntingdon bus station, public toilets and the arts service. In that respect, Members concurred with the Panel that the level of spending proposed for Huntingdon bus station should be considered further and that investigations into other lower cost options should be undertaken. In that respect, the Executive Councillors for Environment and Information Technology and for Planning Strategy and Transport agreed to revisit the proposals.
With regard to the proposal to transfer responsibility for public toilets, Members’ attention was drawn to the initial reactions of the town councils to the proposal and noted that they would be meeting to discuss a collective response.
Reference having been made to the proposal to end the Council’s direct activities in the arts, Members noted that the Council would retain a role through grant funding for a limited range of activities for arts in rural areas and for young people. Under the circumstances, it was
RESOLVED
that the draft Medium Term Financial Plan be recommended to Council as the basis for the development of the 2010/2011 budget, the revised MTP to 2014/2015 and the Financial Strategy to 2023/2024.
47 Budget and Medium Term Plan 2010-2015 -Draft Proposals PDF 257 KB
To consider and comment on a report by the Head of Financial Services on the Budget and Medium Term Plan prior to its submission to the Cabinet.
Contact: S Couper 388103
Minutes:
Councillor T V Rogers, Executive Councillor for Finance, was in attendance for this item.
With the aid of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Panel considered the draft 2010/11 budget, the Medium Term Financial Plan (MTP) to 2014/15 and the longer term financial forecast to 2023/24, prior to their submission to Cabinet and final determination by the Council.
In introducing the report the Executive Councillor for Finance explained that the financial forecast considered by the Cabinet in September had not been altered. The current proposals had been the subject of extensive discussion by Executive Councillors. Current revenue reserves of £19m would be drawn on over the next four years until the recommended minimum level of £3m remained to cover unexpected expenditure. Income from government grant and Council Tax was likely to be substantially lower than the level assumed in the financial plan approved by the Council in February 2009. Councillor Rogers then informed Members of the initial responses to consultation with the Town Councils on proposals relating to the District’s public toilets.
The Director of Commerce and Technology advised the Panel that the forecast increase in Council Tax had been reduced from 4.99% to 2.49%. This combined with an expected reduction in the Revenue Support Grant for 2011/12 equated to an income £567k lower than the approved MTP. The figure did not include an adjustment for Concessionary Bus Fares, which were expected to be transferred to the County Council in April 2011. This was likely to reduce net expenditure by £0.9m but a corresponding reduction of £1.4m was expected in the Council’s Revenue Support Grant. On the other hand substantial efficiency savings had been made in waste recycling and leisure centres and as a result of holding empty posts vacant. In addition, increases in provision for pay had also been limited with an uplift of 1% proposed for 2010/11. Finally, the Panel was advised that, following the three yearly revaluation of the Local Government Pension scheme, requirements for additional payments were forecast to be £180k in 2011/12 and £800k per year by 2014/15. As a result of these and other factors overall savings to be identified for the following three years amounted to £1m, £2.5m and £5.7m.
In response to a question by a Member the Panel was informed that with the exception of the Arts Service, the proposed budget should enable the Council to achieve its service delivery targets. While Members expressed reservations at the proposal effectively to end the Council’s direct activities in the arts, it was noted that the Council would continue to promote the arts through grant funding.
Following a further question on whether the Council’s Corporate Plan had been taken into account in devising the budget, assurances were provided that this had been the case. Although the point was made that the proposals relating to parking charges could conflict with the Council’s objectives to promote the local economy, it ... view the full minutes text for item 47