Agenda item

The Panel scrutinised report CHFR29, which contained proposals for the 2007/8 budget.

• Budget management would be devolved to Service Managers. Virements would be controlled on a corporate level by Financial Services and adhere to financial regulations.
• A report would be submitted to Cabinet on 5^th March 2007 on settling the pension capital costs in advance of the triennial review due in April 2007. Costs could be settled on a year-by-year basis or split over three years. The council would be charged interest if payment was split over three years.

ACTION POINT:

The Resources DSP will scrutinise the report on settling the pension capital costs at their meeting on 15^th March 2007.

• A new nationally negotiated pension scheme would be introduced from 2008. There would be limited local flexibilities.

ACTION POINT:

At the first meeting of the newly appointed Resources DSP following the 2007 District Council elections, a presentation should be given on the new local government pension scheme.

• A 2% salary efficiency was required. Service managers would be presented with the reduced figure. Efficiencies would be monitored on a corporate level because of variation in staff turnover between sections.

ACTION POINT:

A numerical breakdown of staff efficiencies should be supplied for consideration at the Cabinet meeting on 12^th March 2007.

• Managers would be encouraged to project when spending would take place. Profiled budgets would facilitate reviewing capital programme delivery.
• Salary inflation for 2007/8 had been estimated at 2.5%, in line with guidance. Additional posts and increases in grade had been incorporated in service planning.
• A one-off bid for funding had been made for “Communications Priorities”. This was for Gateway signs to the district and media training.

CONCLUSION:

Panel members expressed their concern to Cabinet on the bid for one-off budget provision for “Communications Priorities”, and that this bid should be removed.

• A report was to be prepared on Special Expense Areas to assess whether the net expenditure was fully recovered.

ACTION POINT:

At the first meeting of the newly appointed Resources DSP following the 2007 District Council elections, the report on Special Expense Areas should undergo pre-decision scrutiny.

• The Community DSP had requested information on the Building Control Reserve. Scrutiny of this could be referred to the Resources DSP.
• There were concerns that any Local Area Agreement could require the aligning of funds between all councils in Lincolnshire. The District Council would need to look into rationalising funding streams.
• Grant funding of £10,000 for 2006/7 and £52,000 for 2007/8 had been received for the implementation of smoke-free legislation.
• Local Forums had been consulted on proposed increases in council tax. Of the five that had taken place, three were in favour of an increase of 4.9%, one was in favour of an increase of 2.5% and the final one was closely balanced.
• No formal guidance on capping had been received. Informal guidance stated that there was no power for the government to cap district councils on the basis of parish councils.

CONCLUSION:

Members of the Resources DSP acknowledged that the district council was working within current legislation but were not reassured by the legislative position.

• Rent increases were in-line with the RPI. The maximum rent increase would be 4.1% plus £2.00 in individual cases.
• Resources DSP had already requested that a fundamental review of all fees and charges should be carried out and reviewed then annually.

ACTION POINT:

Reports required under recommendations f, h and i should be submitted to the Resources DSP for scrutiny.

CONCLUSIONS:

1.                  The Resources DSP fully endorsed the contents of report CHFR29 on the Budget 2007/8 to the Cabinet with the caveat that, under recommendation f (ii), funding for communications priorities should be removed.

2.                  The Portfolio Holder should present the budget within the normal standing orders of the Council (Part 4 section 14.4 of the District Council’s constitution) and the Section 151 Officer should present the detailed budget.