Minutes:
The Executive Director for Finance and Corporate Resources delivered a presentation on the Council’s budgetary position as of 20th January 2014 (Appendix 1).
During the delivery of this presentation the following points were highlighted for Members’ consideration:
· The Council’s budget for the period 2014/15 – 2016/17 had not yet been set. £100,000 of savings still remained to be identified.
· In addition to reductions to the Government grant there had also been a decrease in the amount that the Council received from the Department for Work and Pensions (DWP) in the form of housing benefit.
· Heads of Service had been working to identify potential savings. Many of these savings would be achieved through service reviews and from job vacancies.
· The budget was being planned in accordance with the Council’s strategic purposes.
· Every effort was being made to minimise the impact of budget savings on the delivery of frontline services.
· Officers were attempting to identify savings that could be made to enabling services, or services which were not delivered directly to the customer.
· The borrowing costs that had been taken into account by Officers included the costs for Parkside and the costs for a new leisure centre, though Officers recognised that no decision had yet been taken by Members in respect of a new leisure centre.
· A Council Tax increase of 1.9% had been proposed by Officers. This would mean that the local authority would not be eligible to apply for the Council Tax freeze grant.
· The Council would need to meet additional pension costs of £154,000 for 2015/16 – 2016/17.
· The Council’s balances were £3 million at the date of the meeting. Officers were keen to maintain balances of at least £1.1 million going forward. There was therefore the potential for £700,000 to be used from balances to help to meet the Council’s budgetary requirements over the following 3 year period.
· Heads of Service had been assessing the potential impact of the proposed County Council cuts on services delivered by the district Council. This would include considering the potential increase in demand for district Council services as a result of the removal or reduction of County Council services due to funding cuts.
· A tool had been developed to enable Officers to compare the fees charged by the Council to deliver services with other local authorities in the country and to identify the potential for changes to be made to the Council’s current charging levels.
Following the presentation Members raised a number of further points for discussion:
· The arrangements for spending funding secured through the budget bid for economic and cultural events over the following six year period. Members were advised that it was anticipated that this process would be facilitated by Officers rather than in the form of grants to local Voluntary and Community Sector (VCS) organisations. Officers would continue to consider the best way to manage the funding.
· The potential impact of the Longbridge development and internet shopping on custom in Bromsgrove town centre as well as on revenue for the Council from car parking charges. Members were advised that at present the Council was anticipating that a similar amount in revenue would be generated from parking fees in the following financial year.
· The potential impact of efficiency savings for enabling services on frontline services. Officers urged Members to notify senior managers of any instances where cuts to enabling services were observed to have a negative impact on frontline services.
RESOLVED:
(a) that a further update on the Council’s budget for the period 2014/15 – 2016/17 be provided for the Board’s consideration on 24th February; and
(b) that the report be noted.