Decision details

Matter for Decision:

The Budget-Setting Report (BSR) provides an overview of the review of the key assumptions. It includes the detailed revenue bids and savings and sets out the key parameters for the detailed recommendations and budget finalisation to be considered at the meeting of the Executive on 23 January 2014. The Executive will make final budget recommendations to Council, for consideration at it's meeting on 21 February 2014.

 

Decision of the Leader

 

The Leader resolved to:

 

General Fund Revenue Budgets: [Section 4, page 37 of the BSR refers] Budget 2013/14:

 

a) Approve, with any amendments, the revised budget items shown in Appendix C(a) of the BSR.

 

b) Approve, with any amendments, the Non Cash-Limit budget items for 2013/14 as shown in Appendix C(b) of the BSR.

 

c) Approve, with any amendments, the overall revised budget for 2013/14 for the General Fund, as shown in Section 4 [page 37 refers] and Appendix D(a) of the BSR.

 

Budget 2014/15:

 

d) Agree any recommendations for submission to the Executive in respect of:

 

·       Non Cash Limit items as shown in Appendix C(b) of the BSR.

·       Revenue Savings and Bids as shown in Appendix C(c), (d) & (e) of the BSR.

·       Priority Policy Fund (PPF) Bids as shown in Appendix C(f) – based on the position as outlined in Section 4 [page 37 refers] of the BSR.

·       Bids to be funded from External or Earmarked Funds as shown in Appendix C(g) of the BSR.

 

e) Note the Council Tax taxbase, as set out in Appendix B(a) of the BSR, as calculated and determined by the Director of Resources under delegated authority.

 

f) Recommend to Council the level of Council Tax for 2014/15 as set out in Section 3 [page 32 refers] of the BSR.

 

Note that the Cambridgeshire Police and Crime Panel will meet on 5 February 2014 to consider the precept proposed by the Police and Crime Commissioner, Cambridgeshire & Peterborough Fire Authority will meet on 13 February 2014 and Cambridgeshire County Council will meet on 18 February 2014 to consider the amounts in precepts to be issued to the City Council for the year 2014/15.

 

Treasury Management: [Section 6, page 58 of the BSR refers]

 

g) Recommend to Council to approve:

 

(i) the Prudential Indicators as set out in Appendix M(a) of the BSR and to confirm that the Authorised Limit for external borrowing determined for 2014/15 will be the statutory limit determined under section 3 of the Local Government Act 2003,

 

(ii) to delegate to the Director of Resources, within the borrowing totals for any financial year within (i) above, to effect movement between the separately agreed figures for ‘borrowing’ and ‘other long term liabilities’,

 

(iii) the Treasury Management Annual Borrowing and Investment Strategies set out in Appendices M(b) and M(c) of the BSR, and

 

(iv) the Council’s Counterparty List shown in Appendix M(c), Annex 3 of the BSR.

 

Other Revenue:

 

h) Delegate to the Director of Resources authority to finalise changes relating to any corporate and/or departmental restructuring and any reallocation of support service and central costs, in accordance with the CIPFA Service Reporting Code of Practice for Local Authorities (SeRCOP).

 

Capital: [Section 5, page 47 of the BSR refers]

 

Capital & Revenue Projects Plan: [Section 5, page 51 of the BSR refers]

 

i) Approve project appraisals that have been referred by Executive Councillors:

 

j) Agree any recommendations to the Executive in respect of the bids outlined in Appendix G(a) & (b) of the BSR for approval to include in the Capital Plan, or put on the Hold List, including any additional use of reserves required.

k) Agree to carry forward resources from 2013/14, resulting from variances as detailed in Appendix G(c) of the BSR, to fund re-phased capital spending.

l) Agree the revised Capital & Revenue Projects Plan as set out in Appendix G(d), the Hold list set out in Appendix G(e), and the Funding as set out in Appendix G(f) of the BSR for the General Fund.

 

Note that the Appendices do include new bids, but will be updated in subsequent versions to incorporate approved rephasing included in the above recommendations.

 

General Fund Reserves:

 

m) Note the impact of revenue and capital budget approvals and approve the resulting level of reserves to be used to:

 

(i) support the 2013/14 budget

(ii) support the 2014/15 and future year’s budgets.

 

as set out in Appendix D(c) of the BSR.

Reasons for the Decision: As set out in the Officer’s report

 

Any alternative options considered and rejected: As set out in the Officer’s report

 Scrutiny Considerations:

 

The committee received a report from the Director of Resources.

 

In response to member’s questions the Director of Resources said the following:

 

       i.          Whilst the New Homes Bonus (NHB) funding needs to be used flexibly, the Council has tried to avoid using it for anything not connected to growth. Officer posts that facilitate growth have obviously been funded but these are fixed term positions.

     ii.          The Priority Policy Fund (PPF) is a new amount of money allocated each year, and this lump sum approach allows flexibility. 

   iii.          Officers are undertaking further work as part of the Repairs and Renewals (R&R) Fund Review and will be looking at issues such as key criteria and projected expenditure. External Auditors and our own Service Reviews also challenge R&R assumptions.

   iv.          With regard to a Council Tax Referendum, the BSR retains the assumption from the Mid-Year Financial Review (MFR) of a 2% increase. When the threshold is announced there may be a need to revisit this and decide whether to go to a referendum – which would be tied into the next elections. As an example; a ½% difference in Council Tax would equate to a £30,000-£35,000 difference in the budget. There would also be costs associated with any rebilling and the collection of changed payments.

    v.          He was as confident as he could be that the Pension Fund was adequate.

   vi.          With regards to the Icelandic Bank Investments the Council has been informed that the auction is likely to take place within a week. A full update will be provided to members in due course.

 vii.          An adjustment has been made to the base line budgets for the underachievement of parking income in line with analysis of historic performance and revised forecasts. 

 

In response to member’s questions the Chief Executive said the following:

 

i.       The Council has a very structured approach to undertaking Service Reviews. Whilst the potential for savings needs to be identified this needs to be balanced by the capacity of the Council, as it cannot look at all of its services at the same time. There needs to be a phased approach and this, in part, is determined by what areas Councillors wish Officers to look at.

ii.     By the time Service Review savings feature in the BSR Officers are confident that they can be delivered.

iii.   The Council has a good track record of delivering the savings it identifies through Service Reviews.

iv.   For budgeting reasons savings have to be ‘rounded up’ to the nearest £100.

v.    Whilst the Council has a number of Service Reviews underway she was confident that the balance of the Efficiency Fund was adequate for the 2014/15 work programme.

 

Councillor Cantrill supported this view and reiterated the Council’s strong track record and structured approach to Service Reviews.

 

In response to member’s questions the Director of Environment said the following:

 

i.       The Pest Control Service has been discussed at length by the Environment Scrutiny Committee and Officers believe the proposed savings are realistic. The City Council is aware that there will still be statutory obligations to fulfil and a hardship fund of £10,000 has also been put in place. Modelling has been undertaken to ensure that this £10,000 is sufficient and takes into account seasonal aspects of the service.

ii.     Officers are confident that the proposed savings identified by the review and rationalisation of the Streets and Open Spaces Service can be achieved. A number of vacant posts are currently on hold until completion of the review.

iii.   Officers are confident that the proposed saving identified by the comprehensive review of the Bereavement Services Business Model can be achieved. This has been discussed at length with the relevant Heads of Service and Work Plans have been developed. The £100,000 saving represents only 2-3% of the overall expenditure so he was confident that it is achievable.

iv.   The Public Art Professional Support Services for ‘on-site’ public art delivery was discussed at the Environment Scrutiny Committee. It was agreed that more detail would be provided to Councillor Owers outside of the meeting.

 

The committee resolved by 4 votes to 0 to endorse the recommendations.

 

The Leader approved the recommendation.

 

Conflicts of Interest Declared by the Leader (and any Dispensations Granted):

 

Not applicable.