Agenda item - Resources Directorate Revenue Budget Estimates 2007/08 with Service Plans

This report presents the 2007/08 budget proposals for the Resources Directorate.

Advice of the Advisory Panel

That the Executive Member be advised:

(i) That the following be recommended to the Executive:

a) 2007/08 Base Budget as set out in paragraph 10 of the report;

b) The Service Pressure Proposals as set out in Annex 2 of the report;

c) The Savings Proposals as set out in Annex 3 of the report;

d) Fees and Charges as set out in Annex 4 of the report;

e) The Treasury Management Budget as set out in paragraphs 27-30 of the report;

(ii) That the 2007/08 Stage 1 Service Plans for the Resources Directorate, as set out in Annex 5 of the report, be approved.

Decision of the Executive Member

RESOLVED:That the advice of the Advisory Panel be accepted and endorsed.

REASON:(i) As part of the consultation in setting the overall 2007/08 Council Budget;

(ii) As part of the consultation in agreeing the 2007/08 Service Plans for the Directorate.

Members received a report which presented the 2007/08 budget proposals for the Resources Directorate.

The report included:

· The budget for 2006/07 (at Annex 1 of the report) to show the existing budgets;

· The budget adjusted and rolled forward from 2006/07;

· The allocation of pay and price increases for the portfolio;

· Budget service pressure proposals and savings options for the portfolio area (at Annexes 2 and 3);

· Fees and charges proposals (at Annex 4);

· Service Plans (at Annex 5).

Table 1 provided a summary of the budget proposals:

	£(000)
Base Budget 2007/08	3,092
Provision for pay increases	245
Provision for price increases	112
Other Budget Pressures: Staff Increments Rent reviews on administrative accommodation Rates bill at new Depot	130 27 133
New expenditure/income due to grant and service transfers	0
Full year effect of 2006/07 growth and supplementary estimate items	132
Service Pressure proposals (Annex 2)	319
IT Development Plan	467
Savings proposals (Annex 3)	-717
Proposed Budget 2007/08	3,940

The Treasury Management function, which managed all of the Council’s loans and investments and was part of the Resources Directorate, was so specialised that the budget proposals were shown separately at paragraph 27 of the report:

	£(000)
Base Budget 2007/08	6,875
Full year effect of 2006/07 growth and supplementary estimate items Interest on Property sales income (one off saving in 2006/07) Minimum Revenue Provision (MRP)	120 -180
Other Budget Pressures: Capital Programme financing costs Additional cost of MRP - new borrowing Additional cost of MRP - commutation adjustment	414 331 99
Savings proposals (Annex 3)	-180
Proposed Budget 2007/08	7,479

The Director of Resources advised Members that they would be receiving fuller Service Plans in March 2007. Some concern was expressed regarding the length of the service plans and that giving too much information to Members may result either in it not being read or in involvement in every detail, which amounted to inappropriate micromanagement. The Director advised that the plans had to be presented to Members to fulfil the requirements of District Audit and the Comprehensive Performance Assessment.

Members of the Labour Group reserved their position on the budget proposals.