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Agenda item
Consultation on the Revenue Budget 2016/17 (Revised) and 2017/18, plus Capital Programme 2017/18 to 2018/19
Minutes:
The Assistant Director, Financial Services and Revenues, presented a report to consult members of the Overview and Scrutiny Committee on the revenue budget and capital programme, as part of the public consultation process. The report noted significant ongoing reductions to the council’s funding and ongoing uncertainty regarding the economic conditions the council would be operating in. Significant risks to the authority were also posed by the compensation claim in respect of Hastings Pier and business rate appeals. The council continued to pursue opportunities to achieve savings, efficiencies and generate additional income.
Discussion took place regarding options to retain staff within the authority, given the limited increase in pay across the public sector. Members were mindful that retaining key staff was key to the council’s income generation activities. The committee were advised that staff were engaged with the income generation programme, as a way of improving the long-term sustainability of council services. The council continued to develop the training and career progression opportunities it offered for staff.
Members noted that demand for council services were likely to increase over the coming year. The Overview and Scrutiny Committee were due to receive an update from the Corporate Customer Services Manager on the channel shift in customer enquiries, as an increasing number of council services were made available online.
Discussion took place regarding the social lettings agency. Councillor Forward, having declared a prejudicial interest in this matter, left the chamber during the debate. Members were advised that the social lettings agency was not accepting any new leases until the government’s review of homelessness payments. The social lettings agency was a key imitative for addressing homelessness in the town, and the council would review the scheme once the government had clarified future grant arrangements.
Members noted that the selective licensing scheme had achieved a small surplus over the past year. The Assistant Director, Financial Services and Revenues, advised that this surplus would be used to repay the reserves used when the scheme was operating with a deficit. The initiative was still forecast to break-even over the life of the scheme.
The East Sussex Procurement Hub had undertaken an exercise on behalf of the council in respect of the publication of public notices. Although a limited number of companies could meet the required criteria, the Hastings Independent Press had won the tender. The paper was published fortnightly and had a circulation of around 14,000.
Discussion took place regarding the proposed closure of public conveniences in Ore Village. A suggestion had been put forward during the consultation period to introduce a charge for using the toilets, although it was difficult to estimate whether the income from the charge could cover the cost of maintaining the facilities.
A saving was proposed by removing a council tax exemption period for properties undergoing structural alteration. Concerns were raised that this may discourage residents from improving neglected properties. The Assistant Director, Financial Services and Revenues, responded that the proposal reflected the council’s financial position, a council tax support scheme had already been approved which was intended to protect vulnerable sections of the community.
Members were mindful that the budget setting process included the deletion 8.9 full time equivalent (FTE) posts. A number of the posts identified for deletion were already vacant. The Director of Corporate Services and Governance explained that the council sought to minimise the number of compulsory redundancies by exploring options to re-deploy staff where possible. A comprehensive programme of service reviews was also underway across the council, which would engage teams across the organisation.
Discussion took place regarding the impact of changes to interest rates on the council’s investment strategy. The Assistant Director, Financial Services and Revenues, commented that interest rates were expected to remain low for some time, and any increases would happen gradually. The council would continue to monitor its approach to investment to reflect broader economic conditions.
It was noted that members were issued with parking permits to assist them with carrying out their duties; consideration was given as to whether parking scratch cards would be a cheaper alternative. The committee requested that revised guidance be circulated to members and staff on the use of car parks around the town, to ensure parking remained available in the town centre. The committee were advised that routine works would be undertaken in the car park at Rock-A-Nore to remove pot holes. Councillor Forward, having declared a prejudicial interest in this matter left the chamber during the debate.
Members noted an item in the capital programme to introduce a new ERP system, which would replace the council’s existing financial, income, and HR systems. The project was being delivered in partnership with Rother District Council.
The committee discussed the council’s property disposal programme. The Assistant Director, Financial Services and Revenues, explained that each disposal was considered on a case by case basis, the council was also exploring potential additional income generation opportunities from the land and assets it owned.
Consideration was given to ongoing cultural regeneration of the town. Members commented that the events to mark the 950th Anniversary of the Battle of Hastings, including the ROOT1066 festival, had attracted around 75,000 visitors to the town and approximately 4,000 local people had participated in the events. The festival had also developed the profile of Hastings as an exciting place to visit.
Members were advised that the additional income from investment properties outlined in the budget, included rental income from the industrial estate the council recently purchased.
RESOLVED that members comments will be reported back to the Budget Cabinet on 13 February 2017
The reason for this decision was:
Members views are sought as part of the consultation process.
Supporting documents:
- Budget O&S - Covering report for Budget (26 01 17), item 3. PDF 102 KB
- Budget Report 2017-18 - Cabinet report February 2017 v1, item 3. PDF 290 KB
- Revised Budget Summary 2016-17 2017-18 (Draft), item 3. PDF 496 KB
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