Issue - items at meetings - Initial Estimates 2010/11 and Forecasts for 2011/12 and 2012/13

To approve the Initial Estimates for 2010/11 and Forecasts for 2011/12 and 2012/13.

(Report attached)

RECOMMENDED that

1) the Initial Estimates for 2010/11 be approved;

2) the Revenue Bids categorised as unavoidable and high detailed in Appendix 14 be approved , as follows:

2010/11 £279,210

2011/12 £ 98,210

2012/13 £ 97,210

3) The General Fund bids for capital resources categorised as high set out in Appendix 15 be approved, as follows:

2010/11 £325,000

2011/12 £165,000

2012/13 £845,000;

together with the associated revenue implications as follows:

2010/11 £ 6,500

2011/12 £54,200

2012/13 £96,400

Future years £188,800;

4) the proposal for how the Further Support for Town Centre Grant is utilised as set out in Appendix 18 be approved;

5) the bids as recommended by Overview and Scrutiny Committee be approved as follows:

a) 2nd December 2009 Redditch Matters to be published quarterly. Cost of an additional edition £6,000;

6) the bid for Church Hill District Centre Redevelopment for £60,000 2010/11 which was approved in principle at Council on 7^th December 2009, be approved;

7) that any Direct Action - Enforcement expenditure be funded from balances, pending recovery from the third party, and officers report back to Members on the success of any recovery action;

8) that any bids not approved at this stage be brought back to this Committee for reconsideration once the outturn position for 2009/10 is known and

9) the bid of £6,000 for the repair and maintenance of street lighting be included in the Initial Estimates 2010/11.

(Officers to write, in the first instance, to Worcestershire County Council highlighting the increasing pressure on the Council’s budgets for staff pensions.)

Members received a report which presented the estimates at Directorate level that had been prepared in accordance with the Budget Guidelines, which had been approved by Council on 7th December 2009.

The Head of Resources reported that since consideration of the Medium Term Financial Plan for the period 2010/11 to 2012/13 in July 2009 central government had announced an increase in National Insurance contributions to take effect from April 2011 at an estimated cost of £110k. She also reported that there had been a reduction in income form business centres, leisure services, local land charges and planning fees.

Members were informed that the Executive Committee at their meeting on 18th November 2009 had considered a number of revenue and capital bids. Members had approved the bids for 2009/10 and approved, in principle, the bids for the forthcoming three years, subject to the availability of resources. Following the outcome of the Initial Estimates process for 2010/11 the Strategic Management Team had reviewed the General Fund bids. As a result the following amendments had been made:

1) the bid for £110,000 for works to Public Building had been removed pending a further report to Members;

2) the bid for the repair and maintenance of street lighting had been changed to medium priority and would be reconsidered later in the year;

3) the bid for Landscape Maintenance had been changed to medium priority pending an investigation into the potential utilisation of Section 106 contributions to support the budget;

4) the bid for Direct Action – Enforcement had been removed from the list.

5) the capital bid for the Energy Management System had been removed form the list as it had been included in the list of projects for SALIX funding.

The Leader reported that, with the approval of Members, the bid for the repair and maintenance of street lighting at a cost of £6,000 would be included in the Initial Estimates 2010/11.

The Head of Resources reported that the Secretary of State had approved the Council’s application for a Capitalisation Direction in respect of the severance costs associated with the Single Management Team. She explained that this would mean that the severance costs could be met from capital receipts as opposed to a direct charge to the General Fund revenue account.

Officers were asked to write, in the first instance, to Worcestershire County Council highlighting the increasing pressure on the Council’s budgets for staff pensions.