Agenda item

Joint report of the Cabinet Member for Community Development and Finance and the Chief Finance Officer.

The Cabinet Member for Community Development and Finance introduced the joint report of himself and the Chief Finance Officer which had been circulated with the budget papers.  The report summarised the revised budget for 2010/11 and the Cabinet’s final budget proposals for 2011/12.

The Chief Finance Officer highlighted an amendment to the report. The council had received notification on 7 February of a change to the government settlement and the figure for the Formula Grant in 2012/13 set out in table 4.1 of the report should now read £5.518 million and not £5.473 milion. He emphasised that this was a one-off amount in that particular year where the government had found some additional funding to support councils.

The Cabinet Member highlighted the changes that had been made to the draft budget presented to Cabinet on 21 December 2010 following a period of extensive consultation. These changes were supported by additional funding made available by a rephasing of pensions costs.

§         A one-off reinstatement of verge cutting for 2011/12. The council would also be giving the county council notice of their intention to terminate the contract so that it can be renegotiated on more favourable terms.

§         There would be no transitional funding to Cheltenham Festivals but instead the budget proposed £140,000 worth of funding for improvements to Montpellier and Imperial Gardens. The Festivals will also continue to have free use of the gardens in the coming year. The changes would support the festivals in their aims but would also be for the benefit of the people of Cheltenham as the Cabinet recognized the need to manage any potential conflicts in the use of the gardens. The renegotiation of the catering contract in 2012 would give the festivals more opportunity to raise additional catering income. He felt that these changes would provide a framework for Cheltenham Festivals being commercially successful in their own right without the need for ongoing financial support from the Council.

§         An additional two years extra funding had been allocated for the oiling of seagull eggs to combat the problems with seagulls in the town.

§         The budget proposed to reinstate £6,000 of the original £10,000 allocated to the Arts Council. This money was redistributed by the Arts Council and provided valuable support to organisations in the town.  

§         Finally the Cabinet Member Finance referred members to recommendation 9 which approved the creation of a budget working group to support the process of developing the budget. He felt there was a real need for scrutiny members to keep up to speed with the budget throughout the year and develop their expertise in budget matters and this working group would provide a focus for that.

In commenting on the budget, Cabinet Members made the following points:

• The public consultation had been very effective and had resulted in changes to the draft budget. There had been some very meaningful input from the initial red/green dot exercise and the focus groups that followed and valuable lessons had been learned for the future.
• The council was in a much better position than it might have been because of the long-term planning done in previous years and initiatives such as shared services, the Bridging the Gap programme, the disposal of surplus assets and generally making all services more efficient and reducing the public subsidy element of services such as leisure@. All these initiatives provided the right framework for further efficiency savings in the future
• Because of the above, the Council had avoided major closures and maintained the facilities that provide the distinctive qualities of the town
• The decision regarding concessionary fares was very unsatisfactory.
  
  

Resolved that it be recommended to Council that:

1. The revised budget for 2010/11 be approved;
   
   
2. The final budget proposals detailed in this report and supporting appendices, including a proposed council tax for the services provided by Cheltenham Borough Council of £187.12 for the year 2011/12 (a 0% increase based on a Band D property) be approved.
   
   
3. The growth proposals, including one off initiatives at Appendix 3 be approved.
   
   
4. The reserve re-alignments at Appendix 8, as outlined in section 10 be approved.
   
   
5. The proposed capital programme at Appendix 9, as outlined in Section 11 be approved and the intention to fund the replacement of vehicles and recycling bins through prudential borrowing where deemed appropriate be noted.
   
   
6. The proposed Property Maintenance programme at Appendix 10 be approved.
   
   
7. The updated Medium Term Financial Strategy at Appendix 11 including the impact of the ‘bridging the gap’ programme on the forecast budget gap be approved;
   
   
8. A level of supplementary estimate of £100,000 for 2011/12 as outlined in section 15 be approved.
   
   
9. The creation of the budget working group be approved, with 2 members nominated from each overview and scrutiny committee, to support the process of developing the budget process and improving scrutiny as outlined in Appendix 13.