Agenda item

The Committee gave consideration to the report and appendices of the Chief Financial Officer (Section 151 Officer) as set out in report pages 39 to 62, which should be read together with these minutes as a composite document.

The Chief Finance Officer explained the background to the report and recommendations sought.

Members were informed that the report and appendix contain detailed figures and  the budget and council tax report will be presented to Council on 19 February 2015.

The Leisure Centre Charges were included at Appendix 7 for Members to agree.

Members were informed that the leisure contract allowed for fees and charges to be increased in line with the Retail Price Index on an annual basis.

Bench marking has been done with neighbouring sites for comparison purposes.

In relation to the draft budget Members were informed that local government still has to save money and provisionally we have a 5.8% reduction in spending power and pressure will be on Local Government Budgets for at least 4 years.

Members were informed that the New Homes Bonus the Council received was the second lowest amount in the Country with an allocation of £313,000. This is due to the Borough’s compact nature. In relation to business rates the Council don’t have the land mass so miss out.  

Members were informed that the Council tax base figure has increased by £48,000 for 2015/16.

Members were informed that the New Leisure Facilities contract will save the Council £3.6 million over the life of the contract compared to the previous contract.

Members were informed that Reserves provide for when matters are not going to plan and that £300,000 had been moved to the Budget Equilibrium reserve.

A Member asked with regard to recycling what does the Council have in the reserve. The Chief Financial Officer (Section 151 Officer) informed Members that a reserve had been created a couple of years ago as income was uncertain.

The Director of Services explained that with regard to recycling the Council gets better rates than others. If the Council took over the recycling those businesses contract price will increase.

A Member raised concern with regards to Welfare Reform and the fact that six pilots for the universal credit were completed and reports suggest that Council Rent arrears levels in these pilots are running at between 10% & 20%. 

The Chief Financial Officer (Section 151 Officer) agreed that Welfare Reform is a concern and the implementation date for the Council is 2019.

A Member queried the Leisure Centre charges and asked if contractors can change the prices.

The Director of Services stated that the core prices are the maximum they can charge but the contract allows for fees to be increased by the Retail Price Index.  Other charges can be charged at prices deemed suitable by the contractors.  If the contractors want to increase more than the RPI then a business case has to be brought before the Committee.

A Member raised a query regarding Note two on Appendix 4 – Oadby & Wigston Capital Programme 2015/16 – 2017/18 on page 58.

The Chief Financial Officer (Section 151 Officer) stated that a further report will be going to the next Policy, Finance and Development Committee in March on the Capital Programme to update members on the various schemes.

A Member raised a question on the Customer Service Centre figure of £142,000 on page 58 due to the fact that it seems different figures were presented on page 172 of the agenda.

The Chief Financial Officer (Section 151 Officer) informed Members that the difference is just looking at the year 2015/16 whereas the figure on page 172 relates to the total expenditure.

Overall, in general it’s going to be circa £200,000.  The Director of Services will provide Members with the Customer Service Centre cost breakdown.

The Leader commended the Council on maintaining a balanced budget with 0% Council Tax for the Council.  He stated that we need to look at income generation and controlling costs.  The Leader sought clarification regarding point 8 on page 55 of the agenda.

RESOLVED:

(1)  That the overall revised General  Fund revenue budget position for 2014/15 (Appendices 1 and 2) be considered and noted.

                  (2) That Members recommend in principle to Council the overall draft General Fund revenue budget for 2015/16.  This will be the subject of a further and full report to Council on 19 February 2015 (Appendices 1 and 3).

                  (3) That Members recommend in principle to Council the overall draft Capital Programme for 2015/16 and note the forward programme to 2017/18. This will be the subject of a further and full report to Council on 19 February 2015 (Appendix 4).

                  (4) That Members approve a 300,000 transfer from the General Fund Reserve to the Budget Equilibrium Reserve in 2014/15.