Agenda item

To consider the joint report of the Director Economy and Development and Head of Treasury Services – report circulated

Councillor Prowse attended the meeting having given notice under Standing Order 44 and spoke on this item. (He also declared a personal interest as a Trustee of Shopmobility)

The Director Economy and Development presented a report outlining the strategic framework within which the estimates for 2009/10 had been prepared, the changes in accounting practices which affected all budgets and gave detailed reasons for any major changes in the Management Unit estimates. Detailed schedules containing the Capital Programme and proposed Fees and Charges for Economy and Development were also circulated. The Director highlighted a number of challenging factors including a reducing provisional grant settlement and Local Authority Business Growth Incentive Grant, (LABGI) and most significantly the additional £1.3 million cost of the concessionary fares scheme to be borne by the City Council.

The Director reported that since the estimates set out in the report had been compiled and discussed at the informal Scrutiny briefings in December, it had become clear that it was unlikely that the Government was going to amend the concessionary travel reimbursement arrangements, despite the representations to the Minister before Christmas.  The Council now had to set its council tax and budget for next year and account for the estimates shortfall of £1.3m in reimbursement for 2009/10 in its budget.  This required savings equivalent to this sum to be identified, to enable a balanced budget to be set by Council on 24 February. The Strategic Management Team and Portfolio Holders were therefore urgently reviewing all budget heads in order to close the funding gap.  Every effort will be made to report the ongoing work to identify the overall proposed savings to the Scrutiny Committee – Resources meeting before its submission to Executive on 10 February and Council on 24 February.  The detail of any savings made as a result of the budget setting will be reported to the relevant Scrutiny meeting in the March cycle, along with the position on any unresolved issues.

The Director responded on a number of points:-

• Staff savings had been identified following a review of the Directorate budget.
• Any further explanation concerning the FRS17 pension accounting practice would need to be sought from the Head of Treasury Services.
• A more detailed survey of the electrical work required at Broadwalk House car park would be obtained, to establish the most accurate cost of this work, before any work was committed.

Councillor Prowse enquired if any correction in respect of the civil parking enforcement service was needed, and sought clarification of the service being in a ‘break even situation in 2009/10’,adding that following some additional research this was unlikely to happen for a period of five years.  Councillor Prowse noted the City Council’s investment in the Farmers Market, but suggested the recent price increase of the stall tariff might have an effect on future take-up.  He also commented on the funding of Shopmobility. The Director responded to the points raised and reiterated that a service level agreement for the civil parking enforcement service was in place with the County Council, which left the revenue and costs liabilities with the County Council. He was not aware of a particular reduction in the usage of stalls week on week, at the Farmer’s Market.  He added that the tariff had remained unchanged since 2001.  He would respond directly to a letter from the Chair of the Trustees of Shopmobility on a number of points in relation to the negotiations which resulted in their present location within Princesshay. 

Members had differing points of view relating to a proposal to alternate the Summer Festival and Animated Exeter. It was acknowledged that in the current climate sponsorship levels were unlikely to make up for any funding shortfall, and following a lengthy discussion it was agreed that the Arts Working Group would be reconvened to look at the festivals budget to see if any other options could be explored.  The Head of Economy and Tourism referred to the contractual and financial commitments already made for this year’s Summer Festival, but agreed it was important to set out the criteria and ensure value for money before proceeding any further with a formal approach to Scrutiny Committee – Economy.  He confirmed that he would endeavour to see that the City Council would be represented at a forthcoming Arts Council meeting.

The Capital Programme and proposed fees and charges were also presented.  The Director confirmed that each element of the Capital Programme would be considered by Members before final approval.

Scrutiny Committee- Economy noted the draft Revenue Estimates, Capital Programme and proposed Fees and Charges for 2009/10 for further consideration by the Executive.

(Report circulated)