SUPPLEMENTARY REPORT TO SCRUTINY COMMITTEE - 18 DECEMBER 2001

REVENUE BUDGET 2002/2003

The Executive considered the report at Agenda No 30 on 11 December 2001 and below is shown a summary of their recommendations.

Revised Estimates 2001/2002

No changes were made to the draft estimates although the Executive shared the concern of the Management Team of the potential overspend.  Growth or supplementary items would not be allowed for the remainder of the year.  Any overspend at the end of the year would have to be met from balances.

Original Estimates 2002/2003

Supplementary Information (as attached) was circulated on the Superannuation situation and the Executive agreed to go with Option 2.  This is a stepped increase over 3 years with lower contributions for the first two years from 2002/2003.  The main risk is the effect on the next 3-year revaluation.  This decision reduced the required contribution by £263,500 in 2002/2003.

The Director of Corporate Services emphasised the need to still make savings in the budget as the stepped superannuation and the lower interest from balances agreed in the financial strategy meant that a further £250,000 + savings would be required in 2003/2004 and the following year.

The Executive considered the Appendices showing the variations between the budgets (30.2 and 30.3) the savings already made (30.4) and the suggested further savings (30.5).  The following recommendations were made:

The Executive also agreed to fund the cost of Bed and Breakfast for the Homeless from the Homelessness Fund.

Management Team would also need to examine staffing requirements and report during the year on potential savings.

The revised position on Total Service Expenditure is therefore as follows:

The Executive also reconsidered the level of Council Tax and agreed to recommend an increase of 9.1% in view of the financial position.  This would lead to taking a lower amount from balances than forecast.  This was needed in view of the potential overspend in 2001/2002 and the need to reduce the amount from balances in 2003/2004.

The Director of Corporate Services reported that the Council Tax Base had now been calculated and will be 42,929.62.  This can only be done after 1st December each year and will be reported to the Council meeting on 5 January 2002.

The overall position on Council Tax from the preceding recommendations is therefore as follows:

The Executive were reminded that the grant amount is only provisional and the final amount will be announced at the end of January.   Any change to the above amount will be met by adjusting the amount from Interest From Balances.