Agenda item

Overview of Budget Report

Minutes:

In addition to the report, the Executive Director for Finance and Corporate Resources delivered a short presentation focusing on expenditure for the period April to September 2014 and projected figures for 2014/15 at the end of the year. The Board was advised that Officers anticipated that there would be an underspend of £1,000 at the end of the financial year.

It was noted that there had been significant change to borrowing costs for the Council for the year when compared to the projected borrowing levels that had been anticipated at the start of the year. This was attributed to delays with the development of the Dolphin Centre and Parkside. As a result of these delays the costs associated with both initiatives would not, for the time being be met through borrowing but by using capital receipts.

A shortfall of £200,000 was expected in respect of Environmental Services at the end of the year, which could be offset by savings made by other departments. The shortfall related to a decision to investigate the potential to dispose of trade waste in-house rather than to contract this service out to the private sector as originally planned.

Members considered the Medium Term Financial Plan 2015/16 to 2017/18. Officers explained that the report had been designed to list costs in relation to the Council’s strategic purposes as part of a new approach to presenting budgetary information for scrutiny.

Whilst considering this report the following matters were discussed:

· Funding for the New Homes Bonus. This had been higher than anticipated and there would be a report to Cabinet in January 2015 on the subject.

· The causes of the delays of the development at Parkside. Officers explained that more lime plaster than had originally been anticipated was required for the building and this would take a number of weeks to dry.

· The inclusion of savings from vacancies in the budget figures. Members were advised that there would always be some unfilled vacancies due to unexpected staff resignations.

· The level of savings that had been accrued following the departure of the former Director of Planning and plans in the long-term to fill this post.

· The figures detailed in relation to the strategic purposes included contributions that had been made by partner authorities involved in shared services with the Council.

· The costs for emergency planning, listed as enabling services. The Board was informed that this figure referred to the Council’s contribution to the Emergency Planning Officer for North Worcestershire.

· The proposal to increase Council Tax by 1.9 per cent.

· The increase in business rates. This would be accompanied by an increase in the amount generated by business rates that local authorities would be required to pay to the government.

· The reasons why no income had been recorded for Amphlett Hall. Members were informed that the figures provided covered the Council’s costs as a landlord.

· The net expenditure of £1.8 million on ICT and the reasons for these costs. Members were advised that staff wages represented only a small fraction of the costs.

· The overall expenditure on CCTV at £488,869, which needed to cover both staff and licensing costs. Income was provided by partner authorities for use of this service.

· The disabled facilities grants and whether figures for these grants should be included within the report or treated as capital expenditure.

· Income from licenses for taxi drivers and concerns amongst drivers that they were subsidising other services provided by Worcestershire Regulatory Services (WRS). Officers explained that the charges for licenses could only be set at a level that covered the costs of providing the service.

· The investment property listed under the strategic purpose “help me run a successful business”.

· The need to pay full business rates for properties, regardless of whether they were vacant. A short period of void rates could apply when a property was empty and business rates could be reduced if a property was partly demolished.

· The lower business rates levied for car parks compared to properties.

· Contingency plans in the event that the site of the existing Council House did not sell following the move to Parkside.

· The listing of transport costs under a number of the strategic purposes. Officers explained that the transport costs listed under enabling services were for MOT testing and those detailed for ”keep my place safe and looking good” were for fleet vehicle maintenance.

· The income figures recorded for the museum. Officers clarified that this figure covered income from both the museum and sponsorship of the roundabouts in the district.

· The benefits of presenting comparative figures for each item and the potential for this to be done for the relevant strategic purposes.

· The inclusion of figures for general grants, donations and bequests. This included a grant to the CAB and a donation to the Bromsgrove Festival. Officers confirmed that other events in the district received Council funding from alternative budgets.

RESOLVED that the report be noted.

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