Agenda item

To consider the report (attached).

The Assistant Director (Accountancy) reported on the first draft of the Continuing Services Budget (CSB), District Development Fund (DDF) and Invest to Save (ITS) Schedules for 2019/20.

The report outlined the following points:

·                The Medium Term Financial Strategy (MTFS) had identified that savings of £600,000 were required over the forecast period of 2020/21 and 2021/22 – £300,000 in each year, over and above those previously identified on the growth/savings lists. Savings of £2,500,000 (£1,700,000 General Fund, £800,000 HRA), or as additional income from the implementation of the People Strategy (spread over three years beginning in 2018/19), was also needed.

·                Savings through the implementation of the People Strategy to meet the General Fund target of £437,000 might not be achieved by 31 March 2018 and therefore, some savings originally expected in 2018/19 would fall into 2019/20. There was also a very challenging General Fund target in 2019/20 of £1,058,000. However, additional income of at least £300,000 should be generated through the parking tariff changes that Cabinet had agreed, which were due to commence by March 2019.

·                Income from the Shopping Park was showing as a lower figure than previously given in the lists, as additional income was accounted for in 2017/18. Therefore, this formed part of the opening CSB figure rather than in year growth, and overall the total CSB was unchanged.

·                The lists themselves represented bids for growth for 2019/20 and would be submitted to Cabinet and Council during February when if successful would form part of the 2019/20 budget.

·                The DDF was now in balance for 2018/19 mainly due to slippage on the Local Plan budget and a number of other movements. If there were no further significant bids, this should stay solvent over the forecast period.

·                The Invest to Save fund’s remaining balance at the end of 2017/18 had been fully allocated. Any further bid would require replenishment from the General Fund, which was currently not allowed for in the MTFS.

·                The current position of the CSB growth/savings, DDF and ITS expenditure was detailed in this report, and work was ongoing on these lists.

·                Emphasis in this budget cycle would again need to be on CSB savings rather than growth. There would inevitably be significant financial challenges ahead.

The Finance and Performance Management Cabinet Committee (FPMCC) would be considering the detailed budget at its meeting on 24 January 2019. This was an opportunity for members of the Resources Select Committee to attend this meeting.

A member training course on Treasury Management had been organised for the evening of 22 January 2019 with an external trainer. Members would find this a useful course to attend, as it would be looking at processes and investing etc. Although the members training course on Risk Management had been cancelled, it was expected to be rescheduled for February / March 2019.

Councillor A Lion commented that the January ‘budget’ meeting of the FPMCC had been poorly attended by members from this Select Committee in previous years.

Councillor G Mohindra commented that he thought the Council did not pass over the fee cost on the credit card fees. He also remarked that costs, like redundancies, to the People Strategy could be significant if these were to staff resources for the Local Plan, as the Council needed to ensure it succeeded.

            RESOLVED:

That the report of the first draft of the Continuing Services Budget (CSB), District Development Fund (DDF) and Invest to Save (ITS) schedules be noted.