5.1

Executive

13th February 2007

Draft Extract

EXE 206

Revenue and Capital Budgets for 2007/08, and financial projections for 2008/09 and beyond (Agenda Item 12(5))

Councillor Bell and the Director of Finance and Resources presented a report.

Councillor Bell reported on the public consultation that had taken place on the Budget and the thanked the Policy/Overview and Scrutiny Panels for their observations, some of which had been included in the proposals. Council Tax was an unfair system of raising funds locally and funding from the Government was also inadequate in comparison with settlements for other authorities, however, for residents, the proposed low increase in Council Tax was a successful conclusion particularly bearing in mind increases in previous years. He acknowledged the concerns raised by Panels regarding some of the proposed savings but indicated that these had been taken into account.

The Executive considered the proposed Budget amendments (as put forward at the Council Meeting and referred to in Section 3.7 and Appendices 3 and 4 of the report) and the comments of the Policy/Overview and Scrutiny Panels (referred to above).

The comments of the Director of Finance and Resources, as the Section 151 Officer, on the robustness of the estimates, the adequacy of reserves, the financial risks and uncertainties and his advice relating thereto, as detailed in section 3.6 of the report, were noted and taken into account.

Members noted that the Avon and Somerset Police Authority was considering its precept in the near future.

Non-Executive Members expressed concern on the Budget. Generally they considered it to be unsustainable and some risks had not been provided for particularly concerning pay increases. Issues concerning the Transport DSO were discussed and opportunities for future income generation were acknowledged. Some items that the Policy/Overview and Scrutiny Panels had considered to be important had been ignored. Councillor Leimdorfer’s specific Budget proposals had also not been adequately addressed. Some non-Executive Members considered that a higher Council Tax rise should be approved to enable the Council to meet reasonable demands on its services.

Recommended to the Council:

(1) that the Revenue and Capital Budgets for 2007/08 (as set out in Appendices 5 – 9 and summarised in Appendix 2 of the report), including special expenses, and the use of reserves, be approved;

(2) that a Council Tax rise of 3% in respect of North Somerset Council services be approved;

(3) that following the Municipal Elections in May 2007, the Executive consider its financial strategy at the earliest opportunity in order that a medium term financial plan, to provide a sustainable Budget, can be developed;

(4) that the list of the Council’s Prudential Indicators for 2007/08, 2008/09 and 2009/10 be approved; and

(5) that the Investment and Treasury Management Strategy (ITMS) for 2007/08 be approved.

It was further

Resolved:

(1) that the likely increases in the Fire Authority, the Police Authority and Town and Parish Council precepts, which give rise to an overall average Council Tax increase of 3.34%, at the time of writing the report, be noted;

(2) that the financial projections for 2008/09 and beyond be noted and that this aspect of the report be referred to the Finance and Performance Policy and Scrutiny Panel for its comments as part of its contribution to the ongoing Budget process; and

(3) that the concerns and ideas raised by Members be noted and that the Executive indicate that it particularly appreciates the contribution from the Labour Group regarding how best to get value for money from the Council’s expenditure and that the following be added to the workplans of the appropriate Policy/Overview and Scrutiny Panels to provide for further investigation of three specific issues -

(a) the controls and processes that ensure value for money from the use of management consultants,

(b) the opportunities for deriving income and energy from street

furniture, and

(c) closer working with the staff to develop ideas and innovations to

improve productivity and enhance value in services.