Issue - meetings

Minute 206 refers

RESOLVED – that (A) the comments of Corporate Business Scrutiny Committee be received;

(B)      the proposed Financial Strategy, as now submitted, be adopted; and

(C)      the planning assumptions set out in the report now submitted, be adopted as the basis for framing the 2014/15 budget and Medium Term Financial Plan to 2017/18.

The Executive Member for Finance submitted a report which considered revisions to the Financial Strategy including the policy on Reserves and the proposed planning assumptions to be used in updating the Medium Term Financial Plan (MTFP).

The Corporate Business Scrutiny Committee, at its meeting held on 27 August 2012, had considered the report and had made a number of comments as now submitted.  Whilst supporting the Financial Strategy and the MTFP, the Committee had supported the concept of reducing the General Reserve, particularly in relation to keeping car park charges down and reducing the pension shortfall, and that these be fully costed for further consideration.

The Executive Member for Finance accepted these comments and stated that Reserves were currently over the ceiling.  He referred to the triennial review of pensions that would be published in November 2013, and suggested that any decisions would be best served by awaiting its outcome.

Members had a wide ranging discussion on the Government’s intentions on the future of the New Homes Bonus.  It was noted that consultation was ongoing and that the Council was contributing via the Local Government Association and the District Councils Network.  Some concern was expressed regarding potential reduced funding and its impact on parish and town councils.

The Executive supported the recommendations as now detailed.

RECOMMENDED – that (A) the comments of Corporate Business Scrutiny Committee be received;

(B)    the proposed Financial Strategy, as now submitted, be adopted; and

(C)    the planning assumptions set out in the report now submitted, be adopted as the basis for framing the 2014/15 budget and Medium Term Financial Plan to 2017/18.

The Executive Member for Finance submitted a report inviting Members of Corporate Business Scrutiny Committee to consider revisions to the Financial Strategy, including its policy on using reserves and the proposed planning assumptions to be used to update the Medium Term Financial Plan for 2014/15 to 2017/18, the detail of which was set out in the report now submitted and Essential Reference Papers.

The Director of Finance and Support Services explained how the various sections of the report had been broken down and drew Members’ attention to the announcements made in June 2013 around funding for Local Government in the Comprehensive Spending Review.  The key points were set out in the report now submitted.

The Director of Finance and Support Services reminded Members that savings would be achieved in relation to shared services for  ICT, Print and Design and Business Improvement,  and these had been included within the Medium Term Financial Plan as presented to this meeting.  Underlying assumptions had also been made around inflation, savings and growth.  Members noted that the budget would be set in January 2014.  Scrutiny would have an opportunity to consider the detailed budget setting at future meetings, prior to the final budget.  Officers are currently undertaking budget challenge sessions with budget holders and the outcome of these meetings would feed into the final budget process.

Councillor J Ranger supported the proposed £200,000 contingency to help meet any changes in funding.  He referred to the triennial review of pensions which would report in November 2013 and of the Council having to meet additional contributions.  This could be funded either through additional ongoing revenue funding or as a one off payment.  The Director of Finance and Support Services suggested that Members may wish to consider funding any one-off sums from the Council’s General Reserves if the financial implications of doing so were favourable.

Councillor J Ranger referred to the planning assumptions in relation to contract inflation and the different assumptions across contracts. The Director of Finance and Support Services explained the different factors that were included in the major contracts and stressed the importance of choosing the most appropriate inflation factor when procuring services.

Councillor J Wing sought clarification on the New Homes Bonus and how this was applied to parishes.  The Executive Member for Finance provided clarification.  He referred to the triennial review of Pension contributions and suggested that it might be prudent for the Council to make a one off payment to ease the burden going forward.  He sought Members views on the suggestion.

Councillor G Jones stated that it would be embarrassing for the Council to hold more in the general reserve pot than it should as this could be seen as having “taken from residents” more than was needed and that reserves should be used to assist the community and cut down pension deficit.

The Chairman stated that there was nothing embarrassing about achieving more with less and that there was merit in saving money by being able to  ...  view the full minutes text for item 203