ITEM No
Budget & Audit Scrutiny Committee
Action Sheet – 11th January 2006
Councillor V. Burgoyne
Councillor J. Dawson
Councillor K. Garrido
Councillor D. Jolley (Chair)
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Councillor R. Jones
Councillor R Lightup
Councillor I. Macdonald
Councillor Morris
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A
Councillor B. Pennington
Councillor J. Pooley
Councillor A. Smyth
Councillor Kean
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PresentApologies received A
Invitees and Officers: Councillors Hinds and Devine, Russell Bernstein & Peter Kidd (Scrutiny Support), John Spink (Head of Finance),
Mike Thomas – CPA inspector.
Item
Responsible Member
Officer
Discussion
Action
Required By
Timescale
John Spink
July
Reports of the Strategic Director of Customer and Support Services
Budget Consultation
2006/2007 a
presentation by Geoff
Topping, Assistant
Director Finance &
Exchequer
Geoff provided a report and a presentation highlighting the outcomes that
have been received and analysed so far, from each of the different aspects of
stage 1 of the public consultation exercise on the 2006/07 budget.
Changes in the process this year, have resulted in improved responses both
in numbers and quality. This is due in part to the use of the “Big Listening”, the
council’s citizen panel. The outcomes will be fed into stage 2 of the
consultation, the public meeting, which takes place on the 12th January. The
eventual outcomes will be used to influence, where possible, the budgets
priorities.
Whilst acknowledging the success of the exercise, members agreed that the
process would be the subject of a detailed review later in the year, in order to
ensure continual improvements.
Members suggested that public understanding and participation could be
improved by;
Comparing the council tax bill to other items of household expenditure.
Clearly demonstrating the effects of different levels of increases in the level
of council tax.
Budget & Audit Scrutiny Committee
Action Sheet – 11th January 2006
Provisional Revenue
Support Grant (RSG)
An update report and
Salford’s proposed
response to the ODPM
presented by John
Spink, Head of Finance
Demonstrations using a virtual Budget
Clear explanation of the effects of budget precepts
Revisiting questions on the Big Listening and consultation questionnaires
The purpose of revisiting the exercise is to try and increase participation, to
capture personal points of view, from the general public who may have little
knowledge of budgets or the operations of the council on what priorities
should be considered.
The committee agreed that the Council Tax increase for Salford’s services,
which excludes the precepts, should be kept to 3% or below.
Members thanked Geoff and his team for all their efforts.
Following on from the previous meeting John was able bring more detail on
the proposed RSG and its impact on Salford, and the proposed written
response to be sent to the Office of the Deputy Prime Minister.
As explained previously, the method of calculation has changed completely
this year, and for the first time the government has published 2 years
settlement, which will be increased to 3 next year, in order to assist authorities
with longer term financial planning. Though Salford’s position looks favourable
compared to metropolitan authorities and other authorities in the region, the
settlement is tighter than expected and combined with the impact of the
damping adjustment, has meant that the available resources will not meet the
spending requirement of a stand still budget. As a result the council needs to;
 Look for potential to increase resources
 Identify any scope to reduce expenditure
 Seek further savings In excess of Gershon efficiency savings
 Review the minimum level of reserves required to meet identified risks.
Some additional Budget pressures for 2007/2008 have also been identified in
certain areas, which will have to be examined and managed closely.
Members considered the response in the light of the report and agreed with
the comments on population, and also that more should be made of the
effects of the damping adjustment on Salford, and an additional comment be
raised about the net reduction in the councils resources caused by the
introduction of the dedicated schools grant.
It was suggested that, as indicated, Ministers would be prepared to accept
John Spink
11th
January
2
Budget & Audit Scrutiny Committee
Action Sheet – 11th January 2006
Revenue Budget
Monitoring 2005/06
presented by John
Spink, Head of Finance.
Capital Budget
Monitoring 2005/2006
presented by John
Spink, Head of Finance.
Medium Term
Financial Strategy
(MTFS) presented by
John Spink, Head of
Finance.
representations in person, the council would explore this as an option, but
await a reply before considering it, though Salford’s MP’s should be briefed on
the response.
It was reported that most services were either on target or within budget.
There are potential problems arising with children’s outsides placements and
within Environmental Services, further information was requested in these
areas.
DSOs/DLO/s are in line with budget projections one significant exception,
Refuse Collection though this will be resolved when the client makes a
significant payment for recycling services later this month.
As the year-end approaches overall, provided services can keep within
budget, there should be an underspend when this years budget is finalised.
Members also considered the updated Risk Assessment for the requirement
of reserves.
Members also made points that must be considered in the future;
Whether Children’s Services could look into specialised provisions for child
placements within Salford, which may also attract income from other
authorities, as well noting the demand for older peoples services is going to
grow rapidly and Community Health and Social Services must bear this in
mind when planning future service delivery.
It was reported that the budget was broadly inline following some re-profiling
and additional capital receipts, above estimate.
Following a recent update, Members requested further information on the
value for money aspect of the recent and planned office relocations. Also
members requested they be kept informed on the funding situation relating to
Albion High School, following the liquidation of Ballast PLC., and the inner
relief ring road.
The MTFS is a source document, bringing together the key objectives, the
principles, practices and responsibilities currently in use. The committee
decided that the document should be considered in depth later in the year
exploring further;
The role of Scrutiny in budget setting,
Earlier public consultation,
John Spink
Regular
Item
John Spink
Regular
Item
John Spink
May / June
3
Budget & Audit Scrutiny Committee
Action Sheet – 11th January 2006
Lender Offer
Borrowers Option
(LOBO) Loans
presented by John
Spink, Head of Finance.
Action Sheet from
previous meeting, and
Work Programme
The potential changes to the Housing Revenue Account
Alignment of the budget with the city council’s Pledges
Strengthening the examination of value for money.
Members requested that the planned council tax increase of 3% per annum
be amended to introduce a degree of flexibility in case the policy is overtaken
by events and it should read “as close to the rate of inflation as possible”.
As reported previously, there are differences of opinion between local
authority accountants and the audit commission on the treatment of interest
and premiums on LOBO loans. This report clarified the issues and potential
impact of the different treatments. The definitive opinion has not been
decided, though the way forward is believed to be through influencing CIPFA.
Members asked had this issue been assessed for risk, had there been any
indication that it could happen. This issue was totally unexpected.
The committee is to be kept informed of developments.
The action sheet was considered and no further action required.
The date of the February meeting was discussed and has now changed to
allow more time for the finalisation of the proposed budget,
The work programme will be amended to reflect the outcome of today’s
meeting
John suggested that the April meeting would be an ideal opportunity to
present some form of budget related training for members.
John Spink
Done
Johns Spink
Updates as
appropriate
John Spink
February
9th
Scrutiny Support
Done
Next meeting 9th February 2006 - a committee room at the Civic Centre
Chairman
Assistant Director
Scrutiny Support Officer
Cllr. D. Jolley
Russell Bernstein
Peter Kidd
0161 787 7259
0161 793 3530
0161 793 3322
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