31 01 2006

 

An apology for inability to attend the meeting was submitted on behalf of Councillor Davis. 

 

 

 

 

 

Consideration was given to a report of the Deputy Chief Executive and Borough Treasurer (a copy of which is affixed in the Minute Book as Appendix “A”), which outlined the financial situation of the Council’s General Fund in the current year and, after consideration of the main factors affecting the outlook for 2006/07 including Exchequer support and Reserve levels, recommended a budget level for that year.  The Deputy Chief Executive and Borough Treasurer updated his report in the light of the recently received Revenue Support Grant Settlement for the Council.

 

The proposed budget, contained in the draft budget book, consolidated the requirements of the Policy and Organisation Board plus the Community and Environment and Housing (General Fund) Boards as cross referenced.  The proposed budget was expected to result in an increase in the Borough’s share of the Council Tax of 2.4% after taking account of reserve and tax collection fund balances.  This increase equated to an extra 6.5p per week Council Tax for an average Gosport property (Band B).

 

The report advised that the revised 2005/2006 budget totalled £10,934,110, the same as the original.  The draft budget book contained a list of variations that had arisen between the Council’s original spending plans for the current year and the latest estimate of expenditure and income.  The working balance was being maintained at its target level of 7% (£765,000) by 31 March 2005 and the newly established Revenue Financing Reserve (RFR) was already proving its worth in assisting the Council to meet unexpected repair and maintenance bills that would otherwise impact on Working Balance.

 

The report advised that, with regard to the budget proposals for 2006/2007, there were substantial variations to the Council’s budget requirements compared to the revised 2005/2006 figure, arising from inflation of over 3%, the new bus pass scheme, Homelessness, Housing Benefits, Priddy’s Hard Site, Interest transactions and the cost of holding local elections.  A detailed analysis was contained in the draft budget book.

 

The Deputy Chief Executive and Borough Treasurer advised that the 2006/2007 budget totalled £11,739,310 including a contribution to Reserves.  The budget total was £805,200 higher than the current year’s original budget. 

 

The report advised that the Capital Programme for the next six years amounted to over £39 million and would require external funding in excess of £10 million to be raised.  This process had already been commenced in order to take advantage of market conditions. 

 

RECOMMENDED: That Council approve a revised 2005/2006 budget totalling £10,934,110 and a budget for 2006/2007 totalling £11,739,310 (including a net contribution to reserves of £18,920).

 

 

 

 

 

The Board received a report of the Financial Services Manager (a copy of which is affixed in the Minute Book as Appendix “B”), which recommended the Board’s fees and charges for 2006/2007, the revised budget for 2005/2006 and the 2006/2007 budget.

 

The report advised members that the revised budget for 2005/2006 for this Board was £3,775,340, which represented an increase of £610,130 (19%) on the original budget for 2005/2006 of £3,165,210.  The budget for 2006/2007 for this Board was  £4,870,010, which represented an increase of £1,704,800 (54%) on the original budget for 2005/2006 of £3,165,210 and an increase of £1,094,670 (29%) on the revised budget for 2005/2006 of £3,775,340.

 

The major variations for the 2006/2007 budget were listed in the variance analysis under the following headings:

 

 

The Board’s recommended fees and charges were included within the draft Fees and Charges book.   They had been examined in line with the Council’s budget strategy to ensure that they stayed in line with the costs of providing the service so that the bottom line cost to the Council Tax payer did not increase in real terms.

 

The draft capital programme for 2005/2006 to 2010/2011 for the Policy and Organisation Board was included on pages 89 – 90 of the Budget book.  The Council’s generally available capital resources were diminishing and it was now clear that there would be a significant impact on future revenue costs from those schemes that required local funding.  The Board was asked to consider the programme in the light of this. 

 

RESOLVED:  That the Financial Services Manager’s report be accepted and forwarded without debate for consideration under Minute No. 44 above. 

 

 

 

 

CHAIRMAN