Agenda and minutes

The Chairman will read the following announcement:

“I would like to remind everyone present that this meeting will be recorded for subsequent repeated viewing on the Internet and copies of the recording could be made available for those that request it.

By being present at this meeting it is likely that the recording cameras will capture your image and this will result in the possibility that your image will become part of the broadcast.

You should be aware that this may infringe your human and data protection rights. If you have any concerns please speak to the webcasting officer.

Please could I also remind members to put on their microphones before speaking by pressing the button on the microphone unit”

The Chairman made a short address to remind all present that the meeting would be broadcast on the Internet, and that the Council had adopted a protocol for the webcasting of its meetings.

To confirm the minutes of the last meeting of the Committee held on 17 November 2008 (previously circulated).

RESOLVED:

That the minutes of the meeting held on 17 November 2008 be taken as read and signed by the Chairman as a correct record.

(Assistant to the Chief Executive) To declare interests in any item on this agenda.

There were no declarations of interest pursuant to the Council’s Code of Member Conduct.

Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 25 of the Council Procedure Rules contained in the Constitution require that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

In accordance with Operational Standing Order 6 (non-executive bodies), any item raised by a non-member shall require the support of a member of the Committee concerned and the Chairman of that Committee. Two weeks’ notice of non-urgent items is required.

It was noted that there was no other urgent business for consideration by the Cabinet Committee.

(Director of Finance & ICT) To consider the attached report (FCC-021-2008/09).

The Director of Finance & ICT presented a report concerning the Draft General Fund Budget summary for 2009/10, incorporating the Continuing Service Budget (CSB) and District Development Fund (DDF) lists.

The Cabinet Committee were reminded of the process for determining next year’s budget, which would culminate in its final approval by Council on 17 February 2009, and that the Council’s Formula Grant would only increase by 0.5% to £9.368million in 2009/10; this being the second year of the Government’s three-year settlement with the Council. The revised estimates for 2008/09 were currently indicating an underspend, largely due to salary savings, with the balance on the General Fund Reserve anticipated to exceed £8million. Consequently, the contribution of £636,000 from the General Fund Reserve included in the budget for 2009/10 would still leave a higher balance in the Reserve at 31 March 2010 than had been the case two years previously.

The Director of Finance & ICT informed the Cabinet Committee that the projected CSB growth for 2009/10 had increased to £647,000 to give a total of £17.9million. The major items in this increase were: £150,000 for additional Waste Management costs; £110,000 for increased costs in Leisure; and £110,000 for Safer, Cleaner, Greener items brought forward. In addition, it was anticipated that Investment Income would reduce by £45,000. It was highlighted that the two key areas of higher expenditure were Leisure and Waste Management. There were opportunities to achieve considerable savings in both areas as indicated by recent reports to the Cabinet, but if these opportunities were not pursued then it would be necessary to identify similar savings elsewhere. Although the proposed increase in CSB had been greater than anticipated, the balance on the General Fund Reserve would also be higher than previously forecast and this gave the Council an opportunity to assist in the stimulation of the local economy.

In relation to DDF expenditure, the Director of Finance & ICT reported that the list of items for inclusion in the 2009/10 budget had increased by £411,000 to £681,000 and a ceiling of £700,000 was being recommended for approval. The DDF programme for 2008/09 had been examined and a number of items had been rescheduled, along with the addition of a number of income items, which had accounted for the increase. One of the DDF income items was the transfer of £480,000 from the Insurance Reserve, as recommended by the external Auditors, to leave a balance on the reserve of £500,000. Additional Investment Income of £313,000 had also been forecast, however this might be reconsidered in the light of the interest rate cut by the Bank of England last week.

The Director of Finance & ICT concluded by stating that the Council was well placed to meet the key areas of financial risk it faced, although if the highlighted savings opportunities were not realised then alternative substantial savings would need to be identified in the medium term. It was emphasised that if the Council added further funds to reserves without allowing additional expenditure in the future then  ...  view the full minutes text for item 40.