Issue - meetings

Report number CHFCS61 by the Assets and Resources Portfolio Holder.                                                                                                             (Enclosure)

DECISION:

(1)         To approve the Medium Term Financial Plan for the period 2009/10 to 2012/13 as appended to report number CHFCS61;

(2)         To approve a further supplementary estimate in the current financial year of a maximum of £400,000 to meet the costs of the business rates and the management fee of the leisure centres and stadium in South Kesteven subject to Cabinet agreeing interim management arrangements at their meeting on 7 September 2009.  This amount to be met from the capacity building, priority setting and service improvement reserve.

Members had before them report number CHFCS61 attached to which was the Council’s Medium Term Financial Plan (MTFP), a document which brought together the Council’s financial position and demonstrated how the revenue and capital finance resources were organised in order to deliver the authority’s priorities.

Before the officer began his presentation, the Deputy Leader reminded members that the report referred to in the agenda papers would not be discussed by Cabinet until Monday and that it was an exempt report.

The Assets and Resources portfolio holder moved the recommendations contained in the report CHFCS61, subject to the addition of the word “further” before supplementary estimate in the second part of the recommendation.  The motion was seconded.

The Corporate Head of Finance and Customer Services explained that since the MTFP had been considered by Cabinet on 3 August 2009 (having previously been reviewed by the Resources PDG on 23 July) there had been clarification about the future delivery of the leisure services and the MTFP had been updated to include this issue.  Before summarising the MTFP, the officer highlighted the present uncertainty surrounding the level of government grant that may be available to local authorities during the latter two periods of the plan.  It was anticipated that the Government would reduce its public spending from 2011/12 the effect of which would be that the grant settlement would be significantly less in real terms than in previous years.  The MTFP reflected this uncertainty and included financial modelling for a 5% and 10% reduction.  Additional pressure would also be brought to bear by the requirement to meet increased efficiency savings.

After highlighting other key pressures on the Council’s finances, the Corporate Head of Finance and Customer Services advised that the Cabinet and senior officers would now be working towards the preparation of a balanced budget.  There would be challenging times ahead based on a variety of potential scenarios and a degree of uncertainty.  The MTFP would need to be kept up to date to meet changing circumstances and resources needed to be aligned to deliver the Council’s stated priorities.  The officer advised that South Kesteven district council was better placed than many other authorities and public sector bodies both within and outside Lincolnshire because of its history of prudent financial management.  This position afforded the Council a window of opportunity to gear itself up for the future and take the opportunities to ensure it was based placed to meet these challenges.

The Corporate Head was  ...  view the full minutes text for item 43