Issue - meetings

Minute 603 refers.

The Leader referred to proposed amendments as indicated by the Executive Member for Finance in his budget presentation (see Minute 619 above).  These related to deleting the proposed saving on Police and Community Safety Officers (PCSOs) at a cost of £46k and extending the freeze on car parking charges until April 2013 at a cost of £39k.  These proposals, if accepted, would require the planning contingency to be reduced by £85k as well requiring consequent adjustments to the Medium Term Financial Plan.

Councillor M Wood referred to leaf clearance and expressed concern that reductions would impact on the elderly in particular.

The Leader responded by referring to the joint meeting of Scrutiny Committees which had recommended that Officers should explore partnership approaches to this issue.  He believed this was the correct approach and that Officers should continue to monitor the situation.

Council approved the proposals as now amended.

RESOLVED - that (A) the comments and proposals of the Joint Scrutiny Committees of 17 January 2012, be received;

(B)      the probable outturn for 2011/12 be approved and any variation at outturn showing an improved position against the £13k under spending reported be put to the interest equalisation reserve;

(C)      the revenue budget for 2012/13 be approved as submitted, subject to the following adjustments:

(1)       the proposed saving in respect of PCSOs  be deleted at a cost of £46,000;

(2)       there be no increase in car parking fees before 1 April 2013 at a cost of £39,000;

(3)       the planning contingency be reduced by an offsetting £85,000;

(4)       the remaining planning contingency of £740,000 be taken to the interest equalisation reserve

(D)      the Medium Term Financial Plan to 2015/16, be approved as submitted, subject to adjustment in each year from 2013/14 – 2015/16 as follows:

(1)       expenditure be increased by £46,000 as a consequence of not making the PCSO savings;

(2)       income be reduced by £79,000 as a consequence of not increasing car parking fees in 2012/13;

(3)       planning contingency sums be reduced by £125,000 in each year; and

(E)      there be no increase in council tax for 2012/13 and, in the absence of government making currently unplanned reductions in local authority funding, there be no increase in 2013/14.

The Executive Member for Finance submitted a report recommending the revenue budget for 2012/13.  The joint meeting of Scrutiny Committees, at their meeting held on 17 January 2012, had supported the proposals now detailed.

The Executive Member referred to the Medium Term Financial Plan (MTFP) and the proposed levels of Council Tax.  He was pleased to advise that there would be a 0% increase in 2012/13 and that the MTFP assumed a 0% increase in 2013/14.

Arising from Members’ comments, the Executive Member for Community Safety and Environment acknowledged the value of Police and Community Safety Officers to residents and confirmed that implementation of savings remained subject to the forthcoming Community Safety Review.

The Executive commended the proposals as now detailed.

RECOMMENDED - that (A) the comments and proposals of the Joint Scrutiny Committees of 17 January 2012, be received;

(B)      the probable outturn for 2011/12 be approved and any variation at outturn showing an improved position against the £13k under spending reported be put to the interest equalisation reserve;

(C)      the revenue budget for 2012/13 be approved and the planning contingency be taken to the investment income reserve, as detailed at paragraph 2.22 of the report submitted;

(D)      the Medium Term Financial Plan to 2015/16, as now submitted, be approved; and

(E)      there be no increase in council tax for 2012/13 and, in the absence of government making currently unplanned reductions in local authority funding, there  be no increase in 2013/14.

The Executive Member for Finance submitted a report recommending the consolidated budget for 2012/13 and the 2015/16 Medium Term Financial Plan.  The Executive Member invited the comments of the Joint Scrutiny Committees.

The budget for 2011/12 had been set in February 2011 and the final accounts had recorded a balance that had been £408,000 higher than expected.  The budget for 2012/13 had been prepared in the light of a significantly constrained income forecast for the Authority.

Members were advised that it was anticipated that there would be two further years of pay restraint after which there might be increases at or about inflation.  Members were referred to Essential Reference Paper ‘B’ for the Medium Term Financial Plan.

Essential Reference Paper ‘C’ was a new document that set out a stress testing of the MTFP which had considered different scenarios whereby the Council might be subject to unexpected financial pressures.  The intention was to illustrate the capacity of the Council’s finances to withstand a single or series of incidents.

The Joint Scrutiny Committees made a number of comments relating to government pay policy, predicted investment returns and the new homes bonus.  The Director of Internal Services stated that every opportunity would be taken to top up the interest equalisation reserve.  Members were also reminded that the new homes bonus provided an opportunity for the local economy in East Herts.

Councillor P Phillips commented that continuing cost pressures could make future increases in Council Tax a justifiable course of action moving forward.

The Committees decided to inform the Executive that the budget should be approved as detailed in the report now submitted.

RESOLVED - that the Executive be informed that the Joint Scrutiny Committees consider that the Consolidated Budget should be approved as detailed in the report now submitted.