Agenda item

Report of Director of Finance and Support (Copy herewith)

1.      Cabinet agreed that the feedback from consultation with the public, organisations and the Overview and Scrutiny Committee be considered and welcomed (detailed at Appendices 1a, 1b, 1c and 1d of the report).

2.      Cabinet agreed that the Council’s representations on the provisional formula grant settlement be noted (Appendix 2 of the report)

3.      Cabinet agreed hat the changes to the proposed budget (detailed at Appendix 3 of the report), in light of the consultation responses, equalities issues and the final formula grant settlement.

4.      Cabinet agreed that a General Fund budget for 2012/13 of £27.38m (excluding parishes) be recommended to the Council (detailed in Appendices 4 and 5 of the report) for its own purposes.

5.      Cabinet noted the key medium term financial issues as set out at Appendix 6 of the report.

6.      Cabinet noted the Chief Finance Officer’s legal duties detailed in the letter from the Chairman of CIPFA (Appendix 7 of the report).

7.      Cabinet acknowledged the issues and risks detailed in the Section 151 Officer’s statement on the robustness of estimates and the adequacy of the reserves (Appendix 8 of the report).

8.      Cabinet noted the draft Fees and Charges set out in Appendix 9 of the report

9.      Cabinet agreed that authority be delegated to the Director of Finance to make any technical changes necessary to the papers for the Council meeting of 29 February 2012.

10. Cabinet agreed that Council be recommended to delegate authority to the Chief Executive and Director of Finance and Support to implement all budget options and restructures.

11. Cabinet agreed that authority be delegated to the Director of Finance and Support in consultation with the Portfolio Holder for Finance, and where appropriate the relevant Director and Portfolio Holder to:

·        transfer monies to/from earmarked reserves should that become necessary during the financial year.

·        update the budget tables and appendices, prior to Council should any further changes be necessary.

·        update prudential indicators in both the Prudential Indicators report and Treasury Strategy report, for Council for any budget changes that impact on these.

12. Cabinet agreed that the Council be recommended to confirm the reserves strategy of protecting balances wherever possible to allow the option of supporting future years’ budgets, aiming for a minimum level of unallocated general fund balances of £3m at the end of 2012/13 having regard to the outcome of the financial risk assessment and remaining at this level over the medium term.

13. That the Council be recommended not to increase the Council Tax for its own purposes, that is, excluding county, police, and parish precepts for 2012/13.

Councillor Mason addressed Cabinet and expressed her concerns about the reduction of CCTV and the decrease in the number of operators. She expressed apprehension about the impact of crime as a result of the cuts and feared for the safety of residents and asked Cabinet reconsider the reduction.

Councillor Wire commented that not only were the Labour group opposed to the cut in the numbers of PCSO’s, but residents too and stated that on this issue, the Conservatives had got it wrong. Residents had signed a petition, which had over two thousand signatures on it, which would be submitted to the next Council meeting and hoped that the Administration would reconsider and give thought to alternative options.

Councillor Marriott commented that he was concerned about problems of families being housed in bed and breakfast accommodation. He further commented that the increased enhanced Housing Management Charge would have a significant effect on Council tenants even with no increase in Council Tax and commented that it was an unfair budget.

Councillor Beardsworth referred to the consultation process and commented that 71% of respondents had disagreed with reduction of PCSO funding as they had a presence and offered residents a certain reassurance and warned that it would be a very unpopular decision with residents of Northampton.

Councillor Bottwood as the relevant Cabinet Member submitted a report. He commented that one of the recommendations stated that there would be no increase on Council Tax, which would assist in alleviating the financial burden experienced by residents. It was noted that delegation to the Chief Executive and the Director of Finance and Support on a number of issues would allow for flexible and adaptable approach. He explained that the General Fund Reserve would be increased to £3 million by the end of 2012/13.

The Chair commented that he was pleased that there would be no increase in Council Tax and that further savings had been made since the proposed budget, which included a saving of £325,000 from a senior management review.

Councillor Hadland explained that the administration's manifesto had included the pledge to introduce the ‘one hour free’ car parking, which had been implemented. This has led to increased car park usage, from which £70,000 had been generated and put back into the budget. He also mentioned the inclusion of nearly half a million pounds to support the promotion of the Enterprise Zone, which would increase jobs and prosperity in the whole of the town.

Councillor Eldred mentioned that the extra money agreed by Cabinet for the Councillor Empowerment Fund would also be beneficial to residents.                            

RESOLVED:

1.      That the feedback from consultation with the public, organisations and the Overview and Scrutiny Committee be considered and welcomed (detailed at Appendices 1a, 1b, 1c and 1d of the report).

2.      That the Council’s representations on the provisional formula grant settlement be noted (Appendix 2 of the report)

3.      That the changes to the proposed budget (detailed at Appendix 3 of the report), in light of the consultation responses, equalities issues and the final formula grant settlement be noted.

4.      That a General Fund budget for 2012/13 of £27.38m (excluding parishes) be recommended to the Council (detailed in Appendices 4 and 5 of the report) for its own purposes.

5.      That the key medium term financial issues as set out at Appendix 6 of the report was noted.

6.      That the Chief Finance Officer’s legal duties detailed in the letter from the Chairman of CIPFA (Appendix 7 of the report) be noted.

7.      That the issues and risks detailed in the Section 151 Officer’s statement on the robustness of estimates and the adequacy of the reserves (Appendix 8 of the report) be acknowledged.

8.      That the draft Fees and Charges set out in Appendix 9 of the report be noted

9.      That authority be delegated to the Director of Finance to make any technical changes necessary to the papers for the Council meeting of 29 February 2012.

10. That Council be recommended to delegate authority to the Chief Executive and Director of finance and Support to implement all budget options and restructures.

11. That authority be delegated to the Director of Finance and Support in consultation with the Portfolio Holder for Finance, and where appropriate the relevant Director and Portfolio Holder to:

·        transfer monies to/from earmarked reserves should that become necessary during the financial year.

·        update the budget tables and appendices, prior to Council should any further changes be necessary.

·        update prudential indicators in both the Prudential Indicators report and Treasury Strategy report, for Council for any budget changes that impact on these.

12. That the Council be recommended to confirm the reserves strategy of protecting balances wherever possible to allow the option of supporting future years’ budgets, aiming for a minimum level of unallocated general fund balances of £3m at the end of 2012/13 having regard to the outcome of the financial risk assessment and remaining at this level over the medium term.

13. That the Council be recommended not to increase the Council Tax for its own purposes, that is, excluding county, police, and parish precepts for 2012/13.