POLICY AND STRATEGY COMMITTEE (SPECIAL)

 

WEDNESDAY 17 FEBRUARY 1999 - 3.00 pm

 

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

 

In Attendance:-  The Chief Executive, the Depute Chief Executive, the Executive Director Legal, Information and Support Services, the Executive Director Community and Protective Services, the Executive Director Resource Services, the Executive Director Education Services, the Executive Director Social Work and Housing Services, the Director of Central Services, the Director of Personnel Services, the Director of Transportation and Roads, the Head of Property Services and the Head of Cleaning Services.

 

   187      REVENUE BUDGET 1999/2000                                                                                                            187

 

SUBMITTED:  Report dated 12 February 1999 by the Executive Director Resource Services advising that the Revenue Estimates 1999/2000 had been prepared using the budget for the previous year as a starting point and summarising the various factors affecting the budget for 1999/2000.

On this basis, the cost of the current level of service as summarised in Appendix 1 of the report amounted to £126,595,000 while the Government guideline for the Council had been set at £121,907,000.  The guideline represented an increase of 3% over the current year's guideline equivalent figure and, for the sixth year in succession, overall contained no allowance for pay inflation.  Consequently, after taking account of a number of adjustments, savings of £4,076,000 would be required to comply with the guideline.

There was also submitted a report dated 12 February 1999 by the Chief Executive commenting on the various issues identified in the report by the Executive Director Resource Services and recommending that the Committee consider (i) the implications of pay awards and determine whether or not they should be financed from efficiency and other savings within each service, (ii) the position regarding reductions in fee income from Capital Programme projects and decide either to make savings within each service or to seek savings elsewhere and (iii) determine policy priorities to direct the allocation of resources and to identify areas where budgets can be reduced.

Following discussion, Councillor Mulholland moved:-

(a)  That the implications of financing pay awards from efficiency and other savings within each service be addressed, with the exception of those areas such as teaching and learning, residential homes, etc, where agreed standards and ratios apply, emphasising that, if savings can be made from within these services, they are highlighted.

(b)  That the position regarding reductions in fee income within Technical Services and Roads Services be addressed and options for reducing costs presented, including voluntary and compulsory redundancy.  In addition, further reviews of these services take place and reports be submitted to the appropriate Committees detailing current costs and sources of income, options for reducing these costs and the implications of entering into fee competition for all services provided.

   187      (c)  That service priorities be within Education Services, Social Work, Economic                                       187

              Development and Information Technology and that options for savings in other services be considered, including those where voluntary and compulsory redundancy will be required.

(d)  That the Chief Executive carry out a further review of the management structure, taking account of service priorities and the savings options included in the 1999/2000 Revenue Budget.

(e)  That, in releasing employees under any circumstances, the Chief Executive be authorised to exercise the maximum discretion in applying the relevant legislation and that, in selecting posts from within groups, the criteria will be attendance record, disciplinary record, work performance and length of service.

DECIDED:

(a)  That the motion as detailed above be approved;  and

(b)  That the reports be otherwise noted.