MEMORANDUMDate 8 March 2007

To:All Members of the County CouncilFromCOUNTY SECRETARY’S

All Chief OfficersDEPARTMENT

Ask forAdrian Service

Ext25564

Minicom6611

My RefAS/

Your Ref______

RESOURCES SCRUTINY COMMITTEE

WEDNESDAY 14FEBRUARY 2007

MINUTES

ATTENDANCE

MEMBERS OF THE COMMITTEE

G M Cook, S M Holmes, I H Laidlaw – Dickson, D B Lloyd, A Mitchell (Vice – Chairman in the Chair), A Oaten, H M Saunders, A M R Searing, R A G Thomas.

EXECUTIVE MEMBERS

D A Ashley (Planning, Partnerships & Waste), D Beatty (Leader of the Council),

K F Emsall (Community Safety & Culture), R I N Gordon (Resources)

S N P Newton (Adult Care & Health), S Pile (Highways, Transport & Rural Affairs)

Also in Attendance

R S Clements (Vice – Chairman of Overview & Scrutiny Committee), T J Price,

R H Smith.

PART I ('OPEN') BUSINESS

APOLOGIES FOR ABSENCE

Apologies for absence were submitted on behalf of M D Colne [the Committee Chairman]

the Chief Executive, C. Tapster.

MINUTES

That the Minutes of the meeting of the Committee held on 25January 2007 were

confirmed as a correct record and signed by the Chairman.

PUBLIC PETITIONS

None

QUESTIONS

None.

1.
1.1
1.2
1.3
1.4 / CORPORATE SERVICES RESOURCE BUDGET FOR 2007/2008 – 2010 / 11
[Officer contact:Tolu Cliffe Tel: 01992 555391]
The Committee considered the Corporate Services Resource Budget for 2007/08 – 2010/11 which had been put forward by the Cabinet following its meeting on 5 February 2007.
In response to questions, the Finance Director advised that the other technical adjustments referred to on page 5 of the report submitted to Cabinet [Item 6] on 5 February 2007 related to £2.6 m of recharges being switched from Corporate Services [the centre] back to service departments.
He stated that in respect of the 3 year projections for inflation that there would be a need to look at this in the future and how they would be provided for / met.
Conclusions :
That the Cabinet be advised that the Committee has no comments to make on the Corporate Services Resource Budget for 2007/8 -2010 /11. / Adrian Service
2.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.17.1
2.17.2 / COUNTY COUNCIL RESOURCE BUDGET FOR 2007/2008 – 2010/11
[Officer contact:Chris Sweeney Tel: 01992 555304]
The Finance Director outlined the main changes to the Budget and new informationavailable since the Committee considered the Base Budget at its meeting on 25 January 2007.
The Committee considered the County Council’s full Resource Budget for 2007/08 – 2010/11 which had been put forward by the Cabinet following its meeting on 5 February 2007.
It was commented that a briefing note requested at the last meeting concerning additional savings / income arising from accommodation being surrendered by Housing Associations to the County Council had not yet been produced. It was wondered that based on this example should further accommodation be surrendered back to the County Council whether significant greater savings could be achieved.
The Finance Director stated that the briefing note to be produced could include this possibility.
In response toa question as to where the LPSA1 reward grant of
£2.7 m would be allocated to support service funded by the revenue budget in 2007 / 08, the Executive Member for Resources advised that this money would be use to meet part of the resource gap identified and fund schemes within the Council’s budget.
In response toa question as to whether and where the potential underspend of £4.7 m in 2006 / 07 on uncommitted schemes would be utilised, the Executive Member for Resources, stated that it would be used to fund other capital schemes such as new classrooms at RoundwoodSchool, Harpenden.
The Committee noted that as a consequence of the new revenue support grant formula, the Council would have to fund the cost of borrowing money for capital schemes which would mean having to reduce its Capital Programme to reflect what it could afford to borrow given the contents of the revenue budget.
The Executive Member for Resourcescommented that the new revenue support formula imposed a greater burden on the Council on having to use its own revenue funds to finance the borrowing costs of its capital schemes.
It was noted that the totals of the reserves stated in Appendix 15 for the start and end of the year 2007 / 2008 were incorrect.
Comment was made that the impact of the policy changes in respect of the capital programme made by the Cabinet on 5 February 2007 needed to be more precisely identified plus how this information would be presented to the County Council in the future
.
The Executive Member for Resources considered that the Budget papers were well structured and stated that necessary updating of the papers would be undertaken for the next Cabinet meeting on
19 February 2007. He commented in preparing the current Budget relatively very few concerns had been raised by Members and those which had had been considered by the Cabinet.
The Leader of the Opposition advised that the revised budget scrutiny process this year had brought about improvements but he felt that the scrutiny process was a process involving consensus rather than politics.
He commented that consideration should be given to highlighting changes to the budget papers during the process.
The Committee, most of whom attended the meeting of the Adult Care & Community Safety Scrutiny Committee [ACCS] held previous to this meeting this morning were refreshed ofthat Committee’s following decisions: -
a)The Committee was reassured by the Director of Adult Care Services
that the reductions and efficiency savings could be made without
impacting on users and noted that the measures would bring ACS in
line with neighbouring authorities eg the administration cost relating
toSensory Services.
b) The ACCS Committee noted the activities which had been
undertaken with external providers regarding the achievement of the
capped inflation level and the Director’s confidence that this could be
achieved.
c) The ACCS Committee noted the budgets in relation to Community
Safety matters.
The Committee in noting the role of service scrutiny committees having specialist knowledge of their services budgets, felt that where service scrutiny committees put forward recommendations a short briefing note on the issue concerned would be beneficial i.e Necessitous Clothing grant.
Comment was made that the public consultation events on the coming year’s budget and spending appears to have been successful and should be looked at further as part of the process for future years.
The Finance Director stated that he intended to take away all the comments made during the consideration of this year’s budget and put forward a paper on possible modified arrangements and process for the consideration of the following year’s budget.
Conclusions
That the Cabinet be advised that : -
a) the Resources Scrutiny Committee notes the recommendations and comments made by the Adult Care & Community Safety; Environment and Children, Schools & Families Scrutiny Committees.
b) further clarity is wanted on the following :-
i) the anticipated level of the reserves shown in Appendix 15 both at the beginning and end of the financial year
ii) how the policy changes / service reductions put forward by the
Cabinet on 5 February 2007 will be applied to schemes within the
Budget
c) further consideration should be given to the Resource Budget
information proposed to be submitted to the County Council meeting
on 27 February 2007.
That information on County Council housing accommodation being surrendered by housing associations requested by the Committee at the last meeting be supplied promptly. / Alan
Haines /
Chris Sweeney
Chris Sweeney
Adrian
Service
Chris Sweeney
HERTS RESILIENCE CONFERENCE – 21 MARCH 2007
The Chairman for the meeting drew Members attention tothe Herts Resilience Annual Conference being held on Wednesday 21 March 2007 at the Stevenage Arts & Leisure Centre and suggested that more Members may wish to attend.

Andrew Laycock

CountySecretary

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