POLICY AND STRATEGY COMMITTEE (SPECIAL)

MONDAY 2 MARCH 1998 - 3.00 pm

Present:- Provost Allan, Councillors Calvert, Clocherty, Morrison (M), O'Rourke, Jackson, McGhee, Robertson (Y), Mulholland, Sir Simpson Stevenson, Mitchell and Finnie, Councillor Mulholland, Convener, in the Chair.

In Attendance:- The Chief Executive, the Assistant Chief Executive (Economic Development and Urban Regeneration), the Assistant Chief Executive (Social and Community Development), the Assistant Chief Executive (Contract Services), Mr A S Grant (for the Director of Central Services), the Director of Legal Services, the Director of Finance, the Director of Economic Development, the Director of Education Services, Mr I Taylor (for the Director of Property and Technical Services), the Director of Leisure and Recreation, the Director of Social Work, the Director of Housing and Customer Services, the Director of Personnel Services, the Director of Information Technology, the Director of Transportation and Roads, the Chief Environmental Services Officer and the Chief Consumer Protection and Trading Standards Officer.

205 REVENUE BUDGET 1998/99 205

SUBMITTED: Report dated 27 February 1998 by the Director of Finance advising that the Revenue Budget 1998/99 had been prepared using the budget for the previous year as a starting point and summarising the various factors affecting the budget for 1998/99. The report advised that any increase in the budget between 1997/98 and 1998/99 in excess of 0.75% would be considered excessive if the resultant budget was above the Council's Grant Aided Expenditure Assessment for 1998/99 of £96,514,000.

The report indicated that the Scottish Office had advised of a spend to save scheme open to Councils which would involve Councils relinquishing a chosen amount of their 1998/99 non-Housing Capital Allocation in return for an equivalent increase in their capping limit and Revenue Support Grant. In addition, the Scottish Office had announced a further new capping flexibility scheme which would allow the Council to increase its capping limit by £252,000 subject to an equivalent amount of capital consent being given up for 1998/99 and to the Council Tax for 1998/99 not exceeding £891 for Band D properties. It was noted that no additional

grant support would be forthcoming for such increased revenue expenditure and the scheme would be available for one year only.

The report advised that the Council's capping limit, taking account of the above restriction, had been set at £103,573,000 (without flexibility) or £103,825,000 (including the flexibility scheme). On this basis, savings of up to £3,645,000 (£107,218,000 less £103,573,000) would be required to avoid capping. It was noted that should one or both of the flexibility/spend to save schemes be utilised, this would have the effect of reducing the savings figure.

There was also submitted a report dated 24 February 1998 by the Chief Executive with recommendations of the Senior Management Team on a number of initiatives and options for consideration by the Committee in determining the Revenue Budget and the Council Tax and also on the development of a policy-led approach to the Budget over the next 3 years.

Following discussion, Councillor Mulholland moved:-

205 (a) That the Council's Revenue Budget for 1998/99 be set, taking account of the capping 205

flexibility scheme of £252,000;

(b) That the identified adjustments to the budget totalling £733,000 detailed in Appendix 1 in the report by the Director of Finance be accepted;

(c) That the anticipated increase in Pre-5 grant income, the adjusted figure for pay inflation and the provision for 1% staff turnover be accepted;

(d) That funding for the Strone Farm economic etc. initiatives and the Football Development Officer be included in the 1998/99 Revenue Budget;

(e) That further savings in the 1998/99 Revenue Budget be made as follows:

Improved Contract Services performance £100,000

Property Repairs (Non-HRA to Capital) £200,000

(f) That the Council agree to a further programme of voluntary severance, utilising the Scottish Office spend to save scheme, that a provision of £300,000 be made and therefore that the overall Budget for 1998/99 be set at £104,125,000;

(g) That the spend to save proposals detailed in Appendix 2 to the report by the Chief Executive be agreed with a view to saving £164,000 in 1998/99;

(h) That other savings and initiatives totalling £2,283,000 be presented to the Council;

(i) That the Council agree that, with effect from 1997/98, loan charge repayments be made by the annuity method;

(j) That the Chief Executive be instructed to institute an ongoing scheme of voluntary severance and that employees be allowed to leave, taking account of the overall needs and demands on Council services, the final decision resting with the Chief Executive;

(k) That, taking account of the implications of the Best Value Regime, a review of the existing Client/Contractor position take place and a report be submitted to Committee as soon as possible;

(l) That, taking account of changes already made in staffing structures, the further programme of voluntary severance and the implications of the Best Value Regime, the Chief Executive submit a report on existing departmental structures and options as soon as possible;

(m) That the Committee agree to proceed with the development of a three year policy-led approach to the budget and that a report be submitted to Committee as soon as possible;

(n) That the level of Band D Council Tax be set within the limit required by the capping flexibility scheme;

(o) That Committees and departments again exercise strict control over their budgets and that, if agreed savings cannot be found, other savings must be achieved, those other savings being subject to the approval of the appropriate spending Committee; and

(p) That strict budgetary control be implemented on a corporate and divisional basis as part of the corporate and strategic plans of the Council.

As an amendment, Councillor Finnie moved that the motion be rejected as it lacks sufficient detail for the purposes of setting the Revenue Budget 1998/99 and is an insult to the due process. On a vote, 3 Members voted for the amendment and 9 for the motion which was declared carried.

DECIDED:

(a) That the Council's Revenue Budget for 1998/99 be set, taking account of the capping flexibility scheme of £252,000;