Issue - items at meetings - Financial Strategy 2010

This report presents the Financial Strategy for the period 2010 - 2016, including the detailed Revenue Budget proposals for 2010/11, and asks Members to recommend the proposals to Budget Council.

Copies of this report will be sent to all Members.

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 ... view the full decision text for item 165

Members considered a report which presented a Financial Strategy for the Council for the period 2010 - 2016, including detailed Revenue Budget proposals for the 2010/11 financial year.

The report presented a balanced budget, key features of which included:

Revenue investment of £14.794m

A net revenue budget of £117.978m
A Council Tax increase of 2.9%
Funding for pupil-led aspects of education (primarily schools) of £92.905m, to be met by the Dedicated Schools Grant.

The latest estimate of the budget position for 2010/11 was set out in Annex 1 to the report. Annex 2 summarised the same information on a directorate basis. The corporate, priority investment and directorate spending pressures, including recommended revenue growth proposals of £13.786, were outlined in Annex 3. Revenue savings proposals, totalling £10.352m for 2010/11, were set out in Annex 4.

Executive Members responded individually to issues within their own portfolio areas and responded to the comments made under Public Participation / Other Speakers (Minute 153 refers). The Chair emphasised that the focus of the budget was on assisting the most vulnerable, particularly older people and looked after children, and on supporting the local economy in a climate of worsening constraints on public expenditure. It was then