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Meeting: 21/01/2019 - Babergh Overview and Scrutiny Committee (Item 45)

45 BOS/18/22 BCa/18/54 DRAFT GENERAL FUND BUDGET 2019/20 AND FOUR YEAR OUTLOOK pdf icon PDF 863 KB

Cabinet Member for Finance – Councillor John Ward

 

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Minutes:

45.1         John Ward introduced the report, commending the proposed budget.  Katherine Steel – Assistant Director for Corporate Resources and Melissa Evans, Corporate Manager for Financial were available to respond to questions.

 

45.2         Councillor Gasper had no issues with the Budget, however he expressed concern regarding the investment of a further £25 million in CIFCO as this was included in the Budget as opposed to previously when it had been separate item presented to Council. 

 

45.3         He suggested that a ‘stress test’ against the Council’s Budget be provided to determine the financial situation, in case the Council had to sell some of the assets acquired by CIFCO. 

 

45.4         Councillor Gasper proposed that stress testing of CIFCO be included in the recommendations to Cabinet.

 

45.5         The Assistant Director confirmed that the Council would not be losing any income unless the acquired assets had to be sold, as the income was generated from the rental income.

 

45.6         Councillor McCraw asked what specific impact on the (2019/20) Budget would be if the estimated income within the first year of the proposed CIFCO borrowing were not included.

 

45.7         The Assistant Director responded that if the investment of £25 million were not undertaken then this income would be removed and there would not be a balanced Budget.

 

45.8         The Chief Executive advised Members that the recommendation 3.3 was to approve the borrowing of £25 million for CIFCO to invest.

 

45.9         Councillor Ridley, Director of CIFCO, emphasised that the £25 million could not be spent until the Business Plan had been approved by Full Council.

 

45.10     Members generally agreed that due diligence and stress testing should be conducted before the Business plan was presented to Council.

 

45.11     Councillor Stephen William seconded Councillor Gasper’s proposal.

 

45.12     Councillor Ayres asked if the any resources left in the 2018/19 Budget for the Disabled Facilities Grant would be carried over to the next year and the Officers responded that was the case.

 

45.13     Members debated the issues around Council Tax Care Leavers Discount, paragraph 11, and how this would be managed.  Councillor Osborne, Cabinet Member for Housing, advised that various projects were being undertaken to find ways to help this group of vulnerable people and outlined what District Councillors could do to support this.

 

By a unanimous vote

 

It was RESOLVED:

 

1.1       That the Babergh Overview and Scrutiny Committee endorse Recommendations 3.1 to 3.5

 

1.2       The Committee recommended that ‘stress’ testing was undertaken of the investment of £25 million and that the information was provided to all Members.

 

 

 


Meeting: 17/01/2019 - Mid Suffolk Overview and Scrutiny Committee (Item 53)

53 MOS/18/23 MCa/158/52 DRAFT GENERAL FUND BUDGET 2019/20 AND FOUR YEAR OUTLOOK pdf icon PDF 929 KB

Cabinet Member for Finance – Councillor John Whitehead

 

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