Policy and Strategy Committee

Tuesday 10 February 2004 at 4.00 pm

Present:  Provost Rebecchi, Councillors Blair, Forbes, Hill, McCabe, McCormick (M), Mitchell, Nimmo, Roach, Robertson and Snoddy.

Chair:  Councillor Blair presided.

In attendance:  Chief Executive, Director of Community & Protective Services, Director of Corporate Services, Director of Education Services, Director of Legal & Support Services, Director of Social Work Services, Head of Housing & Building Services, Head of Personnel Services, Head of Property Services and Managing Solicitor (Committees/Contracts).

Apologies:  Councillor Fyfe.

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3 Year Revenue and Capital Budgets 2004/05 - 2006/07

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There was submitted a report dated 4 February 2004 by the Director of Finance (1) on the 3 Year Revenue and Capital Budget position resulting from the Local Government Finance Settlement for 2004/05 - 2005/06 issued by the Scottish Executive on 10 December 2003, (2) making recommendations with regard to the level of General Services Revenue Reserves and (3) advising of matters which should be taken into account when determining the budgets and recommending Council Tax levels.

Decided:

(1)      that the savings identified from section one of the savings booklet forming an Appendix to this minute be approved;

(2)      that the annual 2% efficiency savings identified from section two of the said savings booklet be approved;

(3)      that any salary increases above 2.75% (excluding school teachers subject to the McCrone Agreement) be self funded through efficiencies;

(4)      that additional budgets be allocated as follows:

Education - Record of Needs                                                        £308,000

Education/Social Work - Residential Schools                               £387,000

Community - General Budget increase to meet pressures          £300,000

Peoples Network                                                                              £40,000

Art Strategy (Match Funding)                                                           £40,000

Economic Regeneration - Local Plan further increase                   £60,000

Corporate - Insurance Fund contribution                                       £334,000

(5)      that the savings in Appendix 4 of the report be approved subject to adjustment as detailed in the said booklet in respect of the 3.5% savings not taken in 2003/04, and the 2% efficiency savings;

(6)      that the savings proposals as detailed in the said booklet be approved;

(7)      that the reserve level be maintained and utilised as required to facilitate the reductions in manpower agreed as part of the Budget;

(8)      that if redeployment/voluntary severance cannot be implemented over the three/six month period then, on the basis that reserves will not be able to sustain the situation, the Committee agrees there will be a redundancy situation.  Further, the Committee agrees continuing dialogue and consultation with employees and their trade unions to implement redeployment/voluntary severance and also agrees that any employee not redeployed after a maximum& three month period is issued with a twelve week notice period of redundancy;

(9)      that the Committee agree the indicative budgets for 2005/06 and 2006/07;

(10)    that the Committee recommend a Council Tax increase of 5% for 2004/05 (fixing the Band D Council Tax at £1,143) and indicative levels of a maximum increase of 5% for 2005/06 and 2006/07;        

(11)    that approval be given to the 2004/05 - 2006/07 Capital Programme as identified in Appendix 7 of the report and that authority be delegated to the Chief Executive in consultation with the Director of Finance to progress the secondary list as funding becomes available and progress the Health and Safety, Business Continuity and Area Renewal funding as appropriate in line with current policy, it being noted that there will be a further report to the next Policy & Strategy Committee identifying specific proposals for consideration;

(12)    that the Common Good Budget as detailed in Appendix 8 of the report be agreed; and

(13)    that consultation with the trade unions and other interested parties continue and that consideration be given to any proposals made by them subject to there being no change in the level of Council Tax for 2004/05 and that substitute savings to implement such proposals are found.