Issue - meetings

Members considered the Corporate Policy and Resources draft budget for 2020/21 and estimates to 2024/25.  Also included were details of the recommendations from Prosperous Communities Committee.

The Business Support Team Leader gave Committee the highlights from the report:

·         The net movement from 2019/20 base budget figures was a decrease of £770,000; however, this included approved use of the reserves for earmarked projects of £40,000, and the transfer of £541,400 of pension deficit to the Prosperous Communities Committee.  This had previously been a line in the Corporate Policy and Resources Committee budget, but from 2020/21 it would be allocated across all services based on staffing levels.

The overall pension deficit had increased by £77,000 following the actuarial review, but there had been a reduction in the Corporate Policy and Resources Committee budget;

·         Excluding the above figures, there had been a £345,400 decrease from the 2019/20 base budgets, made up of increased income and approved pressures.  The significant movements were:

o   An increase of property investment income of £524,700 due to acquisition of £21.7 million of investment properties and higher than anticipated rental yields;

o   There had been a reduction in ‘other’ property rental income of £120,000;

o   An increase of £36,000 for the income management system and other software licences and renewals;

o   Ongoing software costs, as identified in the IT 15 year plan had resulted in an increased budget of £32,600;

o   Approved changes to the establishment at WLDC had resulted in a net decrease of £141,000.

·         Prosperous Communities Committee budget had decreased £124,000 from the 2019/20 base figure.  The significant movements here were:

o   An increased of £60,000 in green waste income based on the income from the first two years of charging;

o   Leisure contract management income had increased by £125,800;

o   The Crematorium was estimated to generate an income of £115,800 in the first full year of operation; however the costs related to the financing of the build fell outside the scope of this committee.  The impact of the Crematorium on the budgets of both the Corporate Policy and Resources and Prosperous Communities Committees was expected to be £0;

o   Trade waste income had increased by £22,500 for 2020/21 to reflect a two year contract secured during 2019/20;

o   The budget for grounds maintenance had been increased by £54,400 due to the current contract being extended by one year to January 2021.  This extension would allow WLDC to carry out an options appraisal;

o   A contract for town centre markets had been extended for 2 years at a cost of £38,000 per year;

o   Approved changes to the establishment had led to a net increase in budgets of £90,000.

Following questions to officers from Members, further information was provided:

·         The 35% increase for the cost of gas usage was recommended by WLDC’s gas providers due to this rise being forecasted;

·         Pensions contributions recommendations were based on the pensions actuary report, which was fully checked and audited against market conditions;

·         Waste services costing £15 per head was cheaper  ...  view the full minutes text for item 87