Issue - meetings

To consider report 69/11 of the head of finance. 

Cabinet considered report 69/11 of the head of finance.  This contained the draft revenue budget for 2012/13, the medium term financial plan, the capital programme to 2016/17, and the amended version of the chief finance officer’s report on the robustness of the estimates and the adequacy of the council’s financial reserves.  The Cabinet was asked to consider the report and recommend the budget to Council. 

The chairman invited Councillor Jim Halliday to ask his question.  Councillor Halliday asked if the chairman was content with the level of response to the budget consultation, and if not, would he consider changing the procedure?  Councillor Halliday also asked which parts of the budget had been amended following the budget consultation. 

The chairman reported that a wider engagement on the budget proposals might be desirable and he would keep this under review.  He was pleased with the budget proposal.  This froze council tax, protected services, and made savings.  More money was available for the information advice centres in Abingdon and Wantage, there was an increase in the community grants fund, and there were funds available to assist open market homebuyers.  As for the new homes bonus, in 2012/13 this would be allocated to reserves and might be used to support two-hours’ free car parking from 2014/15 only.  Later in 2012, Cabinet would consider a policy on the use of the new homes bonus.  Finally, the chairman welcomed the county council’s decision to take over the management of the dial-a-ride scheme.  This had saved this council £30,000, which was allocated to grants. 

RECOMMEND to Council to:

(a)               approve the medium term financial plan to 2016/17 as set out in appendix A to report 69/11;

(b)               set the revenue budget for 2012/13 at £10,744,216, as set out in appendix A1 to report 69/11;

(c)               approve the capital programme for 2012/13 to 2016/17 set out in appendix E and the capital growth bids as set out in appendix F, both to report 69/11;

(d)               set the council’s prudential limits as listed in appendix G to report 69/11; and

RESOLVED

(e)       to authorise the cabinet member for finance to make minor adjustments to the budget report to Council and the prudential indicators, in conjunction with the head of finance, should they prove necessary prior to its submission to Council on 22 February 2012. 

To consider report 55/11 of the head of finance. 

The committee considered report 55/11 of the head of finance, which set out the politically neutral budget position for 2012/13.  This showed the draft medium term financial plan and its supporting papers, the draft growth bids, and the draft capital programme.  The strategic director briefed the committee on the budget position and the options open to the council to balance the budget both in the short and medium term. 

The chair invited Councillor Dudley Hoddinott to ask his question.  Councillor Hoddinott asked (1) where in the budget papers were the costs of introducing free car parking, and (2) how would the council modify the draft budget and medium term financial plan to find £4.98 million to satisfy the legal requirement to produce a balanced budget. 

In response, the strategic director reported that car parking was one of many council services, the costs of which were in the relevant service costs section of the medium term financial plan (under ‘Economy, Leisure & Property’ in the case of car parking).  The council had options to balance the medium term financial plan over its five-year period.  The council has always had options such as reducing service costs, increasing income, or raising Council Tax.  The council also had the option of using the new homes bonus from the government to help balance the revenue budget.  These were political choices.  Cabinet would recommend its solution to the Council in February 2012.  Councillors noted that the committee could scrutinise Cabinet’s proposals in February. 

The government had effectively capped Council Tax increases at 3.5 per cent for 2012/13.  If the council chose not to increase its Council Tax for 2012/13, it would qualify for additional government funds. 

The committee noted that the officers had made a best estimate and had taken a cautious view of the budget position, based on the latest information available.  The officers were reasonably confident this position would not significantly change before Council approved the budget in February but the committee noted there were many variables that could affect the council’s budget, such as government grant and the cost of housing benefit.  The officers regularly monitored the current year’s budget; they would feed any changes in to the draft budget for 2012/13. 

Councillors asked for details of last year’s investment income figures.  The officers agreed to provide these outside of the meeting.  Officers reported on their estimated rate of return on investments in the draft budget; some committee members questioned these estimates and suggested that the officers reviewed these. 

In answer to a question, the leader of the council and Cabinet member for finance reported that with regard to the proposed reduction in partnership grants, the affected organisations had been contacted and the officers were in discussions with them.  However, these were draft proposals at this stage; the final detail would be included in the Cabinet’s budget proposals in February. 

RESOLVED: To note the report.