Agenda item

Councillor Coley submits a report that requests Cabinet to consider a 3 year corporate budget strategy, 3 year departmental revenue strategies for each department, and a general fund budget for 2007/08 and to recommend these to the Council.  Cabinet is asked to approve a number of recommendations as set out in paragraph 3.1 of the report.

The appendix to the report is attached for Members of the Cabinet only.  Further copies are available on the Council’s Web Site at:  http:www.cabinet.leicester.gov.uk or by phoning Committee Services on (0116) 252 6021.

Councillor Coley submitted a report that requested Cabinet to consider a 3-year corporate budget strategy, 3 year departmental revenue strategies for each department, and a general fund budget for 2007/08 and to recommend these to the Council.

Councillor Coley recommended that Cabinet approve the budget for recommendation to Council but signalled his intention to propose amendments at Council as follows:-

a)         to provide funding for pastoral care in primary schools; and

b)         to delete proposals R2 to R4 in the Housing Department revenue strategy given the reported adverse effect of these measures.

Councillor Coley noted the comments of the Scrutiny Committees and the Unions.  He also referred to an amended Appendix 6 of the Regeneration and Culture budget strategy and an addition to Appendix C of the Resources budget strategy, the latter of which had been omitted from the papers and both of which had been circulated.

Also further to the report, Councillor Coley reported the increases in the Police and Fire precepts of 5%.  It was noted that the proposed increase of the City Council's budget was 2.6%, bringing an overall proposed Council Tax increase of 3% for 2007/08.

RESOLVED:

(1)that the draft corporate budget strategy for 2007/08 to 2009/10, the draft departmental revenue strategies prepared by each director, as amended by the additional papers and the draft overall budget for 2007/08 as described in the report be approved for recommendation to Council;

(2)that the Chief Finance Officer be asked to prepare a formal budget and council tax resolution, and consequent prudential indicators, for Council approval;

(3)that subject to the approval of the budget by the Council on 21 February and the Council’s normal procedures, authorisation be given to corporate directors to take any action necessary to deliver their departmental revenue strategies for 2008/09 to 2009/10;

(4)that the Director of Resources be authorised to spend £0.3m of monies set aside for the cost of job evaluation on project management costs;

(5)that the Chief Finance Officer be authorised to give effect to the budget adjustments arising from the Business Improvement Programme, when these are known;

(6)that the Council, notwithstanding (7) below, recommend that authority be given to the Cabinet (after consulting the party spokespersons for Resources and Corporate Issues Scrutiny Committee) to enter into contracts with individual members of staff to discharge potential “equal pay” liabilities; to determine how the cost shall be met; and to make arrangements for the administration of such agreements;

(7)that Council be asked to agree that the approved budget shall form part of the policy and budget framework of the Council, and that future amendments shall require the approval of Full Council, subject to the following:

that Cabinet may authorise the addition, deletion or virement of sums within the budget to a maximum amount of £1m for a single purpose;

flexibilities and permissions provided in finance procedure rules.

(8)that the schedule of determinations to the Council’s finance procedure rules as shown at Appendix 6 be agreed

(9)that subject to its approval of the budget, Council be recommended that the elements of the budget shown at Appendix 7 of the report shall be controllable budget lines for the purposes of Finance Procedure Rule 4.3.6 (being the level at which the budget is disaggregated for the purposes of applying the Council’s virement rules);

(10)that the Council be recommended to approve the treasury strategy included as Appendix 8 and the investment strategy included at Appendix 9 to this report;

(11)that the Council be requested to delegate authority to the Chief Finance Officer to vary components within the Council’s overall borrowing limit (the “authorised limit”) which relate to borrowing and other forms of finance; and

(12)that the following reports which are outstanding from previous years’ budget recommendations be sought;-

a)Asset management plan for the City's highways by June 2007

b)Review of Subsidised bus services by October 2007