To review revised draft budget changes identified and discuss any further changes required in order for the Council to move towards a balanced budget for 2018/19.
Additional documents:
Minutes:
The Group had before it and NOTED an update on the budget * from the Director of Finance, Assets and Resources setting out the revised draft budget changes identified.
The officer outlined the contents of the report stating that following initial meetings of the Cabinet and the Policy Development Groups, the Finance team and service managers had been revisiting a range of budgets to deliver more savings or increase income levels. The officer outlined the following table which showed the main budget variances affecting the 2018/19 budget:
Variances |
Amount £k |
|
|
18/19 Budget Shortfall (Cabinet Report 26/10/17) |
617 |
|
|
Further Cost Pressures identified |
570 |
Additional savings identified |
(231) |
|
|
18/19 Revised Budget Shortfall |
956 |
|
|
2% Staff Pay award offer (1% previously built in) |
116 |
Business Rate 100% Pilot bid accepted (1 year only) |
(230) |
Business Rate Growth (Solar & Benefit of Devon Pool) |
(150) |
Funding from sinking funds & reserves (ICT & Leisure) |
(215) |
Other additional savings identified |
(174) |
|
|
18/19 Revised Budget Shortfall |
303 |
|
|
No reduction in Rural Services Delivery Grant |
(86) |
3% increase in C/Tax (2.6% previously built in) |
(22) |
|
|
Draft budget gap for 2018/19 |
195 |
The officer highlighted the provisional formula grant ward for 2018/19 which amounted to £2.7m and the fact that the Council had also been given the freedom to raise its council tax by an additional 0.4%.
Consideration was given to areas that fell within the remit of the Group and had been discussed by the Working Group. These were AGREED.
The additional costs required for the transfer of the Grounds Maintenance service from the Park Nursery to Carlu Close were discussed.
Further discussion took place regarding:
· Land drainage projects;
· The ongoing Mills Project;
· Delays to the implementation of Universal Credit in the area;
· The need to start work now towards the budget for the following year which would require further savings;
· The need for income generation and the potential to sell services to Town and Parish Councils.
Note: - Report * previously circulated and attached to Minutes.