Agenda item

Councillor Willmott submits a report that outlines a 3 year corporate budget strategy, 3 year departmental revenue strategies for each department, and a general fund budget for 2009/10.  Cabinet is asked to consider the recommendations set out in paragraph 3.1 of the report.

A copy of the appendices and Departmental Revenue Strategies are attached at appendix L for Members only.  Copies can be viewed at www.cabinet.leicester.gov.uk or from the Customer Service Centre, King Street.

A minute extract from the meeting of the Overview and Scrutiny Management Board, held on 4 February 2009, will be circulated as soon as it is available.

Councillor Willmott submitted a report that outlined a 3 year corporate budget strategy, 3 year departmental revenue strategies for each department, and a general fund budget for 2009/10.

Councillor Willmott stated that this had not been an easy budget but that they would continue with the initiatives that had been started last year. He wished to place on record his thanks to the Task Groups, Scrutiny Committees, Officers and the Chief Finance Officer for their contributions to the budget process.

RESOLVED:

that Cabinet

1)     taking into account the matters described in the report and the consultation responses received

Ø      that the draft budget be amended by the addition of £50,000 (in 2009/10 only) to improve libraries’ book stock, and other library resources, as recommended by the Culture and Leisure Task Group;

Ø      that (subject to the above change) the draft 3 year financial strategy for 2009/10 to 2011/12, the draft departmental revenue strategies prepared by each corporate director, and the draft overall budget for 2009/10 be approved as the Cabinet’s proposals to Council;

2)     to thank scrutiny committees and others for their comments and suggestions, and:

Ø      note that further funding has been made available to improve Link (over and above the amounts originally consulted), in response to views received (including the people’s panels);

Ø      that other suggestions for additional funding be reviewed should additional resources be available, and in the light of the long-term outlook for the Council’s finances;

Ø      that officers be asked to consider a proposal that additional cleaning in the Cultural Quarter should include Humberstone Gate, and to implement this if resources permit;

Ø      note proposals to keep future years’ proposed tax rises under review in the light of economic conditions, responding to comments made by the Leicestershire Business Council; and ask officers to bring a report to Cabinet on strategies for dealing with the backlog of maintenance to Council assets identified in the corporate budget strategy;

Ø      note that work is taking place to reduce the cost of agency staff;

Ø      note that the Leader has written to Unison in response to their comments and intends to write to the Leicestershire Business Council.

3)     to ask the Chief Finance Officer to prepare a formal budget and council tax resolution, and consequent prudential indicators, for Council approval;

4)     subject to the approval of the budget by the Council on 25 February and the Council’s normal procedures, to authorise strategic and service directors to take any action necessary to deliver the departmental revenue strategies for 2010/11 to 2011/12;

5)     to recommend to Council that the Chief Finance Officer be authorised to calculate and give effect to the following budget adjustments, for which provision is presently held corporately:

Ø      the impact of any increase in the costs of energy, within the available provision;

Ø      the first phase of Delivering Excellence efficiency savings, described in section 6 of the report;

6)     to recommend to the Council 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:

Ø      the Cabinet may authorise the addition, deletion or virement of sums within the budget up to a maximum amount of £2m (either one-off or per annum) for a single purpose (this being a higher figure than approved in previous years);

Ø      the Cabinet may determine the use of corporate budget provisions for job evaluation;

7)     to note that, on 27 January 2009, the Cabinet authorised additional budget provision of £1m for the project management costs associated with job evaluation, this being a pre-commitment against the 2009/10 budget; and, subject to the Council agreeing (f) above, to approve commitment of a further £1.374m for this purpose;

8)     to recommend to Council that £2m of the Council’s reserves be earmarked for mitigation of equal pay claims, as described in section 11 of the report;

9)     to approve, and recommend Council to approve, the treasury strategy included as Appendix 6 and the investment strategy included at Appendix 7 of the report;

10)to request Council 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;

11)to recommend that Council approves the proposed policy on minimum revenue provision described in section 23 of the report;

12)to note that Finance Procedure Rules are being 

      revised, and will be submitted to Council in March, together with any appropriate limits in relation to the 2009/10 budget.