Decision details

Purpose of report: Present Financial Strategy 2010 - 2016, including the detailed Revenue Budget proposals for 2010/11

Members are asked to: Recommend to Council - net revenue requirements, savings and growth proposals, use of reserves and collection fund surplus, dedicated schools grant proposals, housing revenue account proposals, fees and charges and housing rent proposals, to enable Council to approve the Council budget and set the Council Tax levels for 2010/11

RESOLVED: (i)         That the following be noted:

a)     the expenditure pressures facing the Council in 2010/11, as detailed in Annex 1 to the report;

b)     the impacts in 2010/11 of the growth requirements and savings proposals outlined in Annexes 2 and 3;

c)      the medium term financial factors facing the Council, as outlined in the report;

d)     the levels of reserves projected to be held as at 31 March in 2010, 2011, 2012, 2013, 2014, 2015 and 2016 (Annex 6);

e)     the significant future pressures identified;

f)        the statutory advice from the Director of Resources (paragraphs 128-140);

g)     the need to ensure that any adjustments to the proposals in the report are self-balancing, within the requirements laid down by the Director of Resources as the Council’s responsible Financial Officer;

                        (ii)        That the following amendments be made to the proposals in the report, the combined effect of which will reduce the net expenditure by £98k and the call on Council Tax by £140k:

·        Reverse saving LS04 Community Arts with new designation of ‘Inclusive Arts’ (£67k)

·        Reverse saving CSTRS12 Park and Ride Additional Income (£50k)

·        Reduce cost of Respark Visitor Passes to £0.90 from £1.10 (£30k)

·        Reduce running costs for Yearsley Baths (£45k saving)

·        Reverse saving CEXES 16 Democracy Officer (£27k)

·        Reverse saving CEXES17/18 Review of Responsibility Allowances (£10k)

·        Reduction in Chief Executive’s department of printing costs and subscriptions (£9k saving)

·        Provide from Council reserves £42k funding to maintain the Arts Consultant posts CS11, with the projection that schools will be invited to maintain funding for these posts from September 2010

·        Reduce the contingency by £270k (from £855k to £585k)

                        (iii)       That, in relation to the More for York Programme:

a)     The revised More for York savings set out in Annex 5a be noted.

b)     Approval be given to undertake to incorporate into More for York a programme of efficiency in City Strategy to:

·        rationalise the administration teams in the light of changes HR, ICT, Customer Services EDRMS and Finance and

·        improve processes in Planning and Building control through better use of technology and improved customer contract arrangements.

c)      Approval be given to undertake to incorporate into More for York a programme of efficiency in the Chief Executive’s directorate to:

a)     rationalise use of administrative buildings over the Christmas period, saving on heating, lighting etc.

d)     A review of out of area placements for Looked After Children be incorporated into the Children’s Social Care blueprint.

e)     A revised More for York investment total of £1.241m be approved, as set out in Annex 5b, and that authority be delegated to the Chief Executive and the Director of Resources to decide on the early resourcing needs of the programme in advance of a detailed report to the Executive.

f)        The proposal to expand the programme, focusing initially on the areas identified in the report be noted, and a further report on this be received early in the new financial year.

RECOMMENDED:That Council approve the budget proposals outlined in the report and set out in detail within the financial strategy, in particular:

                                                                    i)                  The net revenue expenditure for 2010/11 of £117.880m as set out in Annex 1, amended by £0.098m.

                                                                  ii)                  The housing revenue account proposals outlined in Annex 8.

                                                                iii)                  The dedicated schools grant proposals outlined in the report.

                                                                iv)                  The revenue growth proposals of £13.786m on-going for 2010/11, plus one-off growth of £1.008m, as outlined in Annex 3, subject to the following amendments:

a) Reject growth proposals totalling £0.300m, as follows:

·              £0.045m (from £0.123m to £0.078m) for price increases in LCCS

·              CORPG41 in the sum of £0.255m for increased corporate contingency

b) Include new growth proposals totalling £0.030m, as follows:

·              reduction in the cost of Respark visitor badges from £1.10 to £0.90 at a cost of £0.030m;

resulting in revised figures of £13.516m for on-going growth in 2010/11, plus one-off growth of £1.008m.

                                                                  v)                  The revenue savings proposals of £10.352m for 2010/11 outlined in Annex 4, subject to the following amendments:

a)reject savings proposals totalling £0.154m, as follows:

·        CEXES 16 – delete 1 fte Democracy Officer in the sum of - £0.027m

·        CEXES 17/18 – review of responsibility allowances in the sum of - £0.010m

·        CSTRS 12 Park & Ride additional income in the sum of - £0.050m

·        LS04 Arts and Culture – cease funding the community arts service in the sum of £0.067m.

b)amend savings proposal totalling £0.042m, as follows:

·        CS11 Arts Consultants – reduce the saving from £0.100m to £0.058m in 2010/11 to defer implementation until September 2010, with the remaining £0.042m of the 2010/11 saving to be funded by the use of reserves.

c)include new savings proposals totalling - £0.024m, as follows:

·        reduction in printing costs and subscriptions in the Chief Executive’s department in the sum of - £0.009m

·        reduction in the corporate contingency provision in the sum of - £0.015m from £0.600m to £0.585m

resulting in a revised figure of £10.180m.

                                                                vi)                  In terms of the Council’s reserves, the use in 2010/11 of £0.500m from the Venture Fund and £42k from general reserves for the Arts consultants.

                                                              vii)                  Use of prior year collection fund surplus of £0.288m.

                                                            viii)                  That release of growth of £500k for 16/17 year olds be subject to a further report to the Executive setting out the full implications (paragraph 28).

                                                                ix)                  That the £2m transfer from general balances to the capital reserve fund not be made (paragraph 52).

                                                                  x)                  The increase in council dwelling rents by an average of 1.83%, in line with government guidance on rent re-structuring, as set out in Annex 9.

                                                                xi)                  Note the medium term financial strategy projections that indicate the need for savings / efficiencies in future years of £10m per annum.

                                                              xii)                  Note that the effect of approving the income and expenditure proposals included in the above recommendations will result in an increase in the City of York element of the Council Tax of 2.7%.

REASON:      In order to set a balanced budget that assists the most vulnerable and supports the local economy, whilst responding to concerns raised by residents and interested parties.