Agenda item - WRS Budgets 2017/2018 - 2019/2020

Agenda item

WRS Budgets 2017/2018 - 2019/2020

Minutes:

The Financial Services Manager, Bromsgrove District Council and Redditch Borough Council introduced a report which detailed the Worcestershire Regulatory Services Budget for 2017/2018 and 2019/2020.

 

The Financial Services Manager drew Members’ attention to page 18 of the report and the assumptions that had been made in relation to the projections.  A 1% pay award across all staff, this was subject to the ongoing National Pay Negotiations.  Therefore the final position would reflect any formally agreed increases.  The budget also included any employee entitled to an incremental increase. 

 

A draft pension revaluation had been received from the actuary, which had resulted in an increase in forward funding to 15.7% from 14.8%.  The additional cost of £18,000 per annum was included in the budget projections.  The back funding element remained under discussion with the actuary in relation to the transfer of Trading Standards.

 

The income of £266,000 included £68,000 of additional revenue to be generated from the marketing of the service.

 

In response to questions from Members, the Financial Services Manager, informed the Board that with regard to pensions, every three years the demographics of employees, was reviewed.  Officers were currently awaiting confirmation from Worcestershire County Council (WCC) that all WCC staff had been removed.

 

Further discussion followed whereby Members made the following comments:-

 

·         Uncomfortable with approving a budget based on savings without understanding how these might be achieved.

·         Additional income should be clearly shown and not included as savings.

·         Additional revenue income from the marketing of the service, further detail should be provided on how this might be developed depending on potential income streams.

·         Looking at income streams, if the additional income required cannot be achieved, Board Members should be made aware at the earliest opportunity.  Officers should then report back to the Board with the various options identified for making additional savings.

 

In response the Head of Regulatory Services (WRS) agreed and stated that,  following the valid comments made by Members, he would work with the Executive Director, Finance and Corporate Resources, Bromsgrove District Council (BDC), and the Financial Services Manager to ensure that future budget information was presented to the Board in a more concise and clear format.

 

The Head of Regulatory Services, WRS, further responded and highlighted that WRS were continually looking to work differently in order to identify efficiencies that could help deliver the required savings.  However, given the level of transformation already undertaken these were likely to be marginal.  He was trying to be optimistic by looking at other income streams, as income generation was a key element in making the service prosper and the Management Team would continue to look at growth income. 

 

With regard to the suggestions from Members in respect of future budget information presented, he would provide more detailed information on how the income target could be achieved; and would endeavour to work with officers and report back to the Board at a future date.

 

RESOLVED:

a)    that the district partners gross expenditure budget of £3,291k, as shown in Appendix 1 to the report, be approved;

b)    that the district partners income budget of £266k,  as shown in Appendix 1 to the report, be approved; 

c)    that the district partners revenue budget allocations for 2017/2018 and 2019/2020, as detailed below, be approved;

 

Bromsgrove

£439k

Malvern

£386k

Redditch

£529k

Worcester City

£507k

Wychavon

£701k

Wyre Forest

£463k

 

£3,025k

 

d)    that, as detailed in the preamble above, the Head of Regulatory Services, WRS to work with the Executive Director, Finance and Corporate Resources, Bromsgrove District Council (BDC), and the Financial Services Manager to ensure that future budget information was presented to the Board in a more concise and clear format; and

e)       that the Head of Regulatory Services, WRS to work with officers and report back to the Board on the various options identified in order to make additional savings at a future meeting of the Board.

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