Agenda item

This report presents the financial strategy for 2012 - 2017, including detailed revenue budget proposals for 2012/13 and 2013/14, and asks Members to recommend to Council approval of the proposals.

RESOLVED:      i)     That, having considered:

a.      Expenditure pressures facing the council as set out in the report.

b.      Impacts of savings proposals set out in Annex 2.

c.       Medium term financial factors facing the council as outlined in the report.

d.      Projected levels of reserves as set out in the report.

e.      Statutory advice from the Director of CBSS.

It be

RECOMMENDED:     i)        That Council approve the budget proposals outlined in the report of the Director of Customer and Business Support Services and set out in detail within the financial strategy, in particular:

a.         The net revenue expenditure requirement of £122.235m.

b.         The revenue growth proposals as outlined in the body of the report.

c.         The revenue savings proposals as outlined in Annex 2.

d.         The Housing Revenue Account budget set out in Annex 4.

e.         The dedicated schools grant proposals outlined in Annex 5.

ii)      Council agree that the governance/financial administration of the Delivery and Innovation Fund be in accordance with the Council’s Venture Fund, specifically that the Director of CBSS (in consultation with the Leader) has the authority to make approvals of up to £100,000 and that any sums greater than this require the approval of Cabinet, and that further approval is given to reflect this decision in the Council’s Financial regulations.

iii)     Note that the effect of approving the income and expenditure proposals included in the recommendations would result in an increase in the City of York element of the council tax of 2.9%. 

REASONS:  i) and iii)           To ensure a legally balanced budget is set.

ii)       To ensure appropriate governance arrangements are in place for the Delivery and Innovation Fund.

Members considered a report which presented the Financial Strategy for 2012 -2017, including the detailed Revenue Budget proposals for 2012/13 and 2013/14, and asked them to recommend the proposals to Council.

The report presented a balanced budget over a 2 year period with savings proposals of £19.7m and a proposed council tax increase of 2.9% in 2012/13.

The key issues included:

·        Revenue savings of £19.7m over the two years

·        Growth of £1.5m in adult social care and £0.5m in Looked After Children for 2012/13

·        Creation of both a Delivery and Innovation Fund and an Economic Infrastructure Fund

·        Ensuring all libraries and children’s centres remained open and further reductions in senior management costs

·        Reduced formula grant funding of £5.04m and

·        A net revenue budget of £122.235m

A summary of the budget position for 2012/13 and 2013/14 was set out in Annex 1 reporting the total expenditure, expenditure pressures, expenditure reductions and funding.

It was reported that there were significant savings contained within the budget which reflected the scale of the challenge facing the council with the proposed overview of savings for each directorate summarised in Annexes 5a and 5b and detailed in Annex 2. Detailed proposals for fees and charges were set out at Annex 3, the Housing Revenue Account at Annex 4 and the Dedicated Schools Grant and Schools budget at Annex 5.

There had been extensive and increased budget consultation as part of the budget process and a summary of the various consultation streams was set out at Annex 6.

Consideration was also given to the motion submitted to Council in December requesting the council freeze council tax at the current level for the next two financial years. Details of the financial impact and potential results were set out at paragraph 7 of the report.

The effect of approving income and expenditure proposals included in the recommendations would result in an increase in the City of York element of the council tax of 2.9%.  It was intended that the total council tax increase including the parish, Police and Fire Authority precepts, would be agreed at the full council meeting on 23 February 2012.

Following further discussions it was

RESOLVED:      i)     That, having considered:

a.      Expenditure pressures facing the council as set out in the report.

b.      Impacts of savings proposals set out in Annex 2.

c.       Medium term financial factors facing the council as outlined in the report.

d.      Projected levels of reserves as set out in the report.

e.      Statutory advice from the Director of CBSS.

It be

RECOMMENDED:               That Council:

i)          Approve the budget proposals outlined in the report of the Director of Customer and Business Support Services and set out in detail within the financial strategy, in particular:

a.         The net revenue expenditure requirement of £122.235m.

b.         The revenue growth proposals as outlined in the body of the report.

c.         The revenue savings proposals as outlined in Annex 2.

d.         The Housing Revenue Account budget set out in Annex 4.

e.         The dedicated schools grant proposals outlined in Annex 5.

ii)         Agree that the governance/financial administration of the Delivery and Innovation Fund be in accordance with the Council’s Venture Fund, specifically that the Director of CBSS (in consultation with the Leader) has the authority to make approvals of up to £100,000 and that any sums greater than this require the approval of Cabinet, and that further approval is given to reflect this decision in the Council’s Financial regulations.

iii)        Note that the effect of approving the income and expenditure proposals included in the recommendations would result in an increase in the City of York element of the council tax of 2.9%. 

REASONS:  i) and iii)           To ensure a legally balanced budget is set.

ii)       To ensure appropriate governance arrangements are in place for the Delivery and Innovation Fund.