Decision details

Adoption of changes to the Council's budget by the Labour administration.

Matter for Decision: Budget amendment proposed by The Executive.

 

Decision of the Executive Councillor for Finance and Resources 

 

The Executive Councillor resolved:

 

       i.          To recommend to Council budget changes as outlined in the following:

 

General Fund Revenue Budgets:

Approve the following revenue budget changes:

 

-        for items funded from General Fund Reserves, as shown in Appendix A of the officer’s report.

 

-        for items funded from External or Earmarked Funds, as shown in Appendix B of the officer’s report.

 

Capital & Revenue Projects Plan:

Approve the capital amendment, as shown in Appendix C of the officer’s report.

 

Earmarked Reserves:

Approve changes as follows:

 

· Amend the ‘Keep Cambridge Moving Fund’.

 

The Budget-Setting Report approved by Council in February 2014 included a contribution to this fund of £1,063.9k. It was now proposed to reduce this to £263.9k in order to fund the new Earmarked Reserves outlined below. The updated Earmarked and Specific Funds were shown in Appendix D of the officer’s report.

 

· Establishing an earmarked reserve of £500,000 for ‘Sharing Prosperity Fund’, with the remit:

 

 

 

 

 

 

 

Establishing an earmarked reserve of £300,000 for ‘Fixed-Term Priority Project Fund’, with the remit:

 

 

Earmarked Reserves

 

‘Sharing Prosperity Fund’ (SPF)

It was recommended that £500,000 of the balance of unapplied New Homes Bonus Funding for 2014/15 (currently in “Keep Cambridge Moving” Earmarked Fund) be used to create a ‘Sharing Prosperity Fund’. It would provide resources to fund fixed term and one-off projects and proposals (which can be made through the budget process by members or officers, subject to consideration by the relevant scrutiny committee and the Anti-Poverty Strategy Project Board) that support the objectives of the council’s Anti-Poverty Strategy,

‘Fixed-Term Priority Project Fund’ (FTPPF)

Currently the Priority Policy Fund (PPF) could be used to fund ongoing revenue costs as well as fixed-term or one-off projects. It was recommended that in future years it be used solely to fund ongoing revenue costs, not fixed-term or one-off projects.

 

It was recommended that a new fund, similar to the PPF but only available for funding non-ongoing, fixed-term projects, be set up, called the Fixed-Term Priority Project Fund (FTPPF). This could then harness non-ongoing, potentially short-term or uncertain sources of income, most obviously NHB. The creation of this fund would allow such sources of income to be used for priority projects without building in unsustainable ongoing revenue commitments. It was recommended that £300,000 of the balance of unapplied New Homes Bonus Funding for 2014/15 (currently in “Keep Cambridge Moving” Earmarked Fund) be used to create this fund.

 

Capital

The Executive proposed the change identified in Appendix C of the officer’s report, namely to delete the 'Capital contribution to the 'Keep Cambridge Moving Fund' of £111,140 and delete from Capital Plan SC593.

 

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 Executive Councillor for Finance and Resources.

 

In response to member’s questions the Executive Councillor for Finance and Resources said the following:

 

i.                    The new ‘Fixed-Term Priority Project Fund’ (FTPPF) would be available for funding non-ongoing and fixed-term projects, and would not result in a reduction in flexibility.

ii.                    The Cambridgeshire Collective Switching Scheme would only be successful if promoted effectively. The proposed funding would therefore be used for this purpose.

 

iii.                    The Training, Seminar and Conference budget had been historically underspent, and these funds would now be redistributed according to need. A report on the reasons behind this historic underspend would be brought to a future Strategy and Resources Scrutiny Committee.

iv.                    Through informal discussions the Unions had expressed no concerns regarding cuts to the Training, Seminar and Conference budget.  Discussion would take place with the Head of Human Resources (HR) about the report also being considered at the Joint Staff Employer Forum (JSEF).

v.                    Only a very small number of public toilets in the City would be affected by the change to the pricing structure. This additional income would not be used to fund the Anti-Poverty Strategy as incorrectly report by the Cambridge News, and alterations to the toilets would be funded from existing R&R budgets.

 

Councillor Catherine Smart proposed the Liberal Democrat 2014/15 Budget amendment.

 

Full details of the Liberal Democrat 2014/15 Budget amendment available via:

 

http://democracy.cambridge.gov.uk/documents/b8353/Budget%20201415%20-%20Lib%20Dem%20Amendment%2014th-Jul-2014%2017.00%20Strategy%20and%20Resources%20Scrutiny%20Committee.pdf?T=9

 

In response to member’s questions Councillor Catherine Smart and Councillor Cantrill said the following:

 

i.       The funding for the Living Wage Week would enable a link to the national campaign. 

ii.     The seasonal part-time Park Rangers would provide guardianship to the most frequented public spaces in the City. The exact detail of their role would need to be discussed further with officers.

 

On a show of hands the amendment was lost by 3 votes to 5.

 

The Scrutiny Committee considered the recommendations and endorsed them by 5 votes to 3.

 

The Executive Councillor approved the recommendations.

 

 

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

 

Not applicable.