Agenda item

Revenue Budget 2012/13

Joint report of the Chief Executive and Head of Corporate Finance and ICT

Minutes:

Further to Minute No. 90 of the meeting held on 16 February 2012, the Council considered the joint report of the Chief Executive and the Head of Corporate Finance and ICT which provided details of the remaining budget savings options to be considered under the Transformation Programme proposals, and the proposed framework budget referred by the Cabinet on 16 February 2012 to the Overview and Scrutiny Committee (Performance and Corporate Services) meeting on 21 February 2012 for consideration prior to this Council meeting.

The report incorporated the following information:

Executive Summary

Annex A Revenue Budget Proposals 2012/13

Annex B Revenue Budget Summary 2012/13

Part A Transformation Programme

· Work Programme and Prioritisation

· Consultation and Engagement Overview

· Impact Assessment Overview

· Risk Management

· Remaining relatively Low and Medium Impact Options

· Reviews

· Options requiring further consideration

Landscape Services
Supporting People
Adults Transport
Re-Commissioning of Nursing and Residential Care

· Conclusion

Annex C Work Programme Timetable

Annex D Remainder of options where the impact has been assessed as relatively low or medium following the analysis of the consultation and engagement activity

Annex E Community Care Practitioner Review

Annex F Voluntary, Community and Faith Sector Review

Annex G Terms of Reference - Library Services Review

Annex H Terms of Reference - Leisure Activity Review

Annex I Terms of Reference - 24 Hour Response Review

Annex J Terms of Reference - Street Lighting Review

Annex K Landscape Services Change Proposals

Annex L Supporting People Proposal

Part B “Framework” Budget

The Mayor reported that the details of the frequently asked questions on the Transformation Programme 2011-2104, had been circulated around the Council Chamber to enable all Members of the Council to consider the content.

The Mayor indicated that much of the information within the report was based on the large scale consultations held on the budget savings options and he expressed thanks to the Members of the public who had taken part in the consultation exercise.

The Mayor requested Members to take into account the issues raised at the Members’ Briefing Sessions held on 9 and 16 February 2012 and be aware of their responsibilities relating to the consideration of the key issues set out in the report.

This was a Key Decision and was included in the Council’s Forward Plan of Key Decisions.

It was moved by Councillor P. Dowd, seconded by Councillor Maher:

“That:

(1) the work programme timetable contained in Annex C of the report be noted;

(2) after taking into account the equality analysis assessment, the consultation feedback, risks and mitigating actions for each individual proposal, approval be given to the following actions being taken on the budget savings options set out in Annex D of the report:

Ref	Service Area	Proposal	Action to be taken
E4.4	Highways Maintenance	A further reduction in Highways Grounds Maintenance Works Budgets which will be delivered by a reduction in the number of cuts to all highway grassed areas	That a reduction of three cuts to all highway grassed areas at a saving of £50,000 be approved
E6.6	Public Conveniences	Public Conveniences - Market Test	That a formal procurement process to provide the public convenience operational service be approved, which would result in a saving of £100,000
E6.7	Tourism	Review of Service	(a) That approval be given to the Tourist Information Centre being relocated to the Southport Cultural Centre (SCC) in 2013, resulting in a saving of £90,000; and (b) It be noted that £38,000 will be taken from the Tourism event reserve budget in the 2012/13 financial year to achieve the £90,000 target in order to manage the transitional arrangements pending the opening of the SCC

(3) in respect of the Assessment and Care Management - Community Care Practitioners (CCP) Review, set out in Annex E of the report, it be noted that savings of £193,000, associated with the CCP Review have already been achieved through the Voluntary Early Retirement/Voluntary Redundancy process;

(4) in respect of the Voluntary, Care, Faith (VCF) Sector Review, set out in Annex F of the report:

(i) it be noted that the VCF Sector review is now concluded and any future changes would be considered within the prioritisation process;

(ii) the key messages identified from the results of the VCF consultation and equality analysis assessment be noted;

(iii) approval be given to the introduction of three year commissioning processes where grant aid is given to organisations subject to annual performance reviews;

(iv) approval be given to a budget reduction of £150,000; and

(v) the grant to the Sefton Play Council be retained at £40,000;

(5) in respect of the Landscape Services Change Proposals, set out in Annex K of the report:

(i) after taking into account the equality analysis assessment, the consultation feedback, risks and mitigating actions, approval be given to the following actions being taken:

Ref

Service Area

Proposal

Action to be taken

E4.6 E4.7

Landscape Services

Recharge sports users and allotment users the costs of provision of utilities and the costs of Grounds Maintenance

That the total saving to be achieved from the recharge of sports users and allotment users for utilities and maintenance be reduced from £170,000 (over 2 years) to £85,000. The specific achievement of these savings to be the subject of a negotiation with the users of these facilities

E4.8

Landscape Services

Closure of Aviary, Nursery Shop and Fernery at Botanic Gardens and Conservatory at Hesketh Park

That the Aviary, Nursery Shop and Fernery at the Botanic Gardens and the Conservatory at Hesketh Park be retained.

and

(ii) approval be given to the proposal (E4.5,10,11,12) to redesign the Parks and Green Spaces Service and Coast and Countryside Service in order to achieve a saving of £250,000 in 2012/13 and £330,000 in 2013/14 and it be noted that the final proposals would be reported to the Cabinet in June 2012 at the conclusion of the process;

(6) in respect of the Supporting People Proposals, set out in Annex L of the report:

(i) approval be given to an in principle budget reduction of £2m in 2012/13 and a further £1m in 2013/14;

(ii) approval be given to a further period of consultation on commissioning priorities and the detail of how the budget reduction could best be delivered whilst minimising/mitigating the impacts i.e. a further review;

(iii) it be noted that this further review would be completed by May 2012 and would determine the commissioning priorities and identify if and how services are to be ceased/de-commissioned/rationalised. (The outcome of this review would be reported to the Cabinet in June 2012 and it would also confirm if the in principle budget can be achieved); and

(iv) the high level project plan for the further review of the Supporting People budget and services be noted;

(7) a further review of the transport services provided for vulnerable adults be undertaken in order to establish a policy and appropriate provision of such transport;

(8) in respect of the Re-Commissioning of Nursing and Residential Care:

(i) approval be given to an in principle budget reduction of £1.5m in 2012/13 and a further £1.5m in 2013/14;

(ii) approval be given to the continuation of the review of Nursing and Residential “real cost of care”;

(iii) in parallel with the review referred to in relation to 8(ii) above, approval be given to the commencement of a procurement process and to continue to explore alternative commissioning approaches; and

(iv) it be noted that it is anticipated that the review referred to in resolution 8(ii) above would be concluded in May/June 2012. (The outcome of this will be reported to the Cabinet in June/July 2012. The review and the work identified in resolution 8(iii) above would also confirm if and how the in principle budget reduction can be achieved);

(9) in respect of the other reviews set out in Annexes G to J of the report:

(i) the terms of reference for the following reviews and the associated timescales be approved:

Annex G Terms of Reference - Library Services Review

Annex H Terms of Reference - Leisure Activity Review

Annex I Terms of Reference - 24 Hour Response Review

Annex J Terms of Reference - Street Lighting Review; and

(ii) it be noted that the terms of reference for other reviews would be presented to the Cabinet at a later date;

(10) the Revenue Budget options for 2012/13 contained within Annex A of the report be approved for inclusion in the Council’s Revenue Budget 2012/13 and the Medium Term Financial Plan with the following amendments

Annex A Line Ref	ITEM	2012/13
		£000	£000
49	Community Care Practitioners	61
1	Reviewing Officers	153
45	Sefton Play Council Grant	20
41	Recharge for sports users and allotments users	85
41	Aviary, Nursery Shop and Fernery at Botanic Gardens and Conservatory at Hesketh Park	50
	Total added back to Framework Budget		369

53	Framework Budget Surplus		-284

	Resulting deficit		85

(11) the use of one-off reserves to fund the £85,000 deficit detailed at resolution (10) above, be approved;

(12) Officers be authorised to prepare for implementation immediately in relation to those proposals in Annex A, then subject to the duty to consult with employees and trade unions, issue relevant statutory and contractual notifications;

(13) the overall Revenue Budget for 2012/13 as set out in Annex B of the report be approved, subject to the amendments contained in resolutions (10) and (11) above; and

(14) it be noted that subject to the approval of the above recommendations, the Revenue Budget for 2012/13 assumes that no savings would be taken from the following options:

E1.3 Children’s Special Transport

E2.3/4 Transportation for Adult Client Groups

E2.10 Fair Access for Care Criteria

E3.14 Crosby Civic Hall

E4.3 Capita Contract

E4.8 Aviary, Nursery Shop and Fernery at Botanic Gardens and Conservatory at Hesketh Park

E5.6 Home Improvement Agency

E6.1 Dispense with Mayoral/Twinning

E6.10 Southport Theatre/Floral Hall

Sefton Play Council – VCF Grant.”

An amendment was moved by Councillor Robertson, seconded by Councillor Brodie-Browne that the Motion be amended as follows:

Resolution in the Motion	Reference	Proposal	Description	Impact on 2012/13 Budget (+ve = increased net Council expenditure)
				£000
2	E6.7	Reinstate Tourism Marketing		27
10	New Proposal	Plastic and Cardboard Recycling	Assumed roll-out starting Jan 2013 estimated full year cost £1m. Estimated cost for 2012/13 is £160,000. Subject to a successful bid to the Department for Communities and Local Government Weekly Collections Support Scheme (WCSS). With contributions Council’s (25%) and WCSS (75%)	40
10	E6.9	Reduce Trade Union Facility time		-17
10	New Proposal	Rear Entry Cleansing	To reduce crews from 5 to 4	-50
10	New Proposal	One off refund Sefton residents as detailed:	One off refund of £12 per qualifying dwelling excluding exempt dwellings, second homes, and residents in receipt of 100% Council Tax Benefit. The refund be paid to the first named occupant on the Council Tax account for each dwelling in situ on 1st April 2012 only. The Council delegate final administrative arrangements to the Head of Finance and ICT	1116
10	New Proposal	Reduction in Member Allowances	Reduce Special Responsibility Allowances by 10% subject to Independent Remuneration Panel	-37
10	New Proposal	Review number of wards, councillors and ward boundaries	Formal request to Boundary Commission to review to achieve financial change in future years	0
10	New Proposal	One-off Reserves	Further use of one-off reserves to balance the budget	-1079
		Net budget impact		0

“

Following debate thereon, on a show of hands, the Mayor declared that the amendment was lost by 43 votes to 22.

A further amendment was moved by Councillor Parry, seconded by Councillor Porter that the Motion be amended as follows:

“The Council has a duty to balance the budget and in order to cover the budget gap and produce a balanced budget; it is proposed that Resolution 10 of the Motion should be amended by:

(1) Cancellation of the subscriptions to the Local Government Association (£47,000) and the North West Employers Association (£28,000) set out in Annex A of the report;

(2) Inclusion of further savings of £12,000 for Option E6.9 – Trade Union facility time, set out in Annex A of the report (It is proposed that this be achieved by deleting the vacant post); and

(3) The proposals in (1) and (2) above would create a budget surplus of £22,000 and this amount should be used to support Options E4.6 and E4.7 (Sporting Activities) referred to in resolution 5 in the Motion.”

Following debate on part (1) of the above Amendment, on a show of hands, the Mayor declared that part (1) was lost by 54 votes to 9.

Following debate on part (2) of the above Amendment, on a show of hands, the Mayor declared part (2) was carried by 35 votes to 28.

The Mayor ruled that part (3) of the above Amendment would not be considered following the lost vote on part (1) of the Amendment.

A further amendment was moved by Councillor Parry, seconded by Councillor Porter that the Substantive Motion be amended as follows:

“That Resolution (3) of the Substantive Motion be amended by the addition of the following text:

‘A review of the re-organisation of the Community Care Practitioners Staff be undertaken to identify further savings and the proposals be reported back to the Cabinet in October 2012’.”

Following debate thereon, on a show of hands, the Mayor declared that the further amendment was lost by 48 votes to 10 with 5 abstentions.

A further amendment was moved by Councillor Parry, seconded by Councillor Porter that the Substantive Motion be amended as follows:

“That Resolution 4(v) of the Substantive Motion be amended to read:

‘the grant to Sefton Play Council be reduced from £40,000 to £20,000’.”.

Following debate thereon, on a show of hands, the Mayor declared that the amendment was lost by 49 votes to 10 with 5 abstentions.

At this point in the meeting, the Mayor adjourned the meeting for a period of ten minutes to enable Members of the Council to have a refreshment break. The meeting then reconvened.

A further amendment was moved by Councillor Doran, seconded by Councillor Cuthbertson, that resolution (10) of the Substantive Motion be amended as follows:

“(1) That the Council reorganises its Governance Structures and

(a) abolishes all Area Committees at a saving of £467,980 which represents the costs of administration and direct spending budgets; and

(b) removes the position of shadow spokespersons with an estimated saving of £76,000

This results in a total permanent additional saving of £543,980 which should be used to offset future years savings and the use of one-off resources in 2012/13.

(2) In addition the Council should immediately seek the necessary review and approval for a reduction in the number of councillors per ward. It is recognised that no savings will accrue in the short term but this could contribute once the review was completed.”

Following debate on part (1) of the above Amendment, on a show of hands, the Mayor declared that the amendment was lost by 60 votes to 5.

Following debate on part (2) of the above Amendment, on a show of hands, the Mayor declared that the amendment was lost by 60 votes to 5.

A further amendment was moved by Councillor Robertson, seconded by Councillor Brodie-Browne that the Substantive Motion be amended as follows:

“That Resolution (2) be amended by the reinstatement of £27,000 for Tourism Marketing to be financed from a reduction of that amount in the Rear Entry Cleansing Service.”

Following debate thereon, on a show of hands, the Mayor declared that the further amendment was lost by 43 votes to 22.

A further amendment was moved by Councillor Robertson, seconded by Councillor Brodie-Browne that the Substantive Motion be amended as follows:

“That Resolution (10) be amended by the addition of £40,000 for Plastic and Cardboard Recycling to be financed by a reduction in Member Allowances of £37,000 and use of £3,000 from one-off reserves.”

At this point, it was moved by Councillor Ron Watson and seconded by Councillor Pearson “that the question be now put”. In accordance with Rule 15.11(c) of the Council and Committee Procedure Rules, the Mayor declared that the amendment had not been sufficiently discussed and he rejected the Motion.

Following debate thereon, on a show of hands, the Mayor declared that the further amendment was lost by 43 votes to 22.

On a show of hands, the Mayor declared that the Substantive Motion (including the further savings of £12,000 for Option E6.9 – Trade Union Facility Time) was carried by 44 votes to 2, with 18 abstentions and it was

RESOLVED:

That:

(1) the work programme timetable contained in Annex C of the report be noted;

Ref	Service Area	Proposal	Action to be taken
E4.4	Highways Maintenance	A further reduction in Highways Grounds Maintenance Works Budgets which will be delivered by a reduction in the number of cuts to all highway grassed areas	That a reduction of three cuts to all highway grassed areas at a saving of £50,000 be approved
E6.6	Public Conveniences	Public Conveniences - Market Test	That a formal procurement process to provide the public convenience operational service be approved, which would result in a saving of £100,000
E6.7	Tourism	Review of Service	(a) That approval be given to the Tourist Information Centre being relocated to the Southport Cultural Centre (SCC) in 2013, resulting in a saving of £90,000; and (b) It be noted that £38,000 will be taken from the Tourism event reserve budget in the 2012/13 financial year to achieve the £90,000 target in order to manage the transitional arrangements pending the opening of the SCC