Archived decisions

                      ITEM 9

    AT A MEETING of the HAMPSHIRE FIRE AND RESCUE AUTHORITY - FINANCE AND GENERAL PURPOSES COMMITTEE held at The Fire Brigade Headquarters, Eastleigh on Wednesday 15 January, 2003

PRESENT:

Councillors P.A. Heath (Chairman); Mrs. E.S.M. Barron; M.F. Cartwright; Mrs. P.G.E. Holden-Brown; P.R.C. Hutcheson; Mrs. A.M. McNair Scott; R.H. Price; P. Russell; R. Smith; J. Stocks; M.J. Woodhall.

39 APOLOGIES

Apologies for absence were received from Councillor J.E. Coles.

40 MINUTES

The Minutes of the meeting held on 30 October, 2002 were confirmed as a correct record and signed by the Chairman.

41 BUDGET MONITORING 2002/03 (3)

The Committee considered the report of the Treasurer and Chief Fire Officer (Item 3 in the Minute Book) setting out the 2002/03 budget position based on spending to 30 November, 2002.

The Treasurer reported that the overall budgetary position was satisfactory and that the projected outturn was marginally (-0.5%) below the budget. The Committee were advised that given the uncertainties around the costs of industrial action and any subsequent pay settlement, this allowed some useful potential flexibility.

RESOLVED:

That the budget monitoring report be noted.

42 DRAFT BUDGET 2003/04

The Committee considered the report of the Chief Fire Officer and Treasurer (Item 4 in the Minute Book) on the draft budget for 2003/04.

The Treasurer reported that in accordance with the resolution of the Authority of 4th December, 2002 consultation meetings had been held with the Unions on 6 January, 2003 and the three constituent authorities on 9 January, 2003.

      The resulting comments from the constituent authorities were circulated at the meeting for the Committee's consideration. Each of the constituent authorities showed a preference for no growth items in the budget given the current uncertainties regarding firefighters pay and changes resulting from the Government's review of local government finance.

      The Unions favoured the proposed draft budget including the full £1.035m of new growth options considered by the cross party working group, but made no formal response.

      At the date of this meeting the implications of the Bain Report were unknown and it had been assumed that the Government would fund any increase above the 4% for both years. The Treasurer reported that in the event that any additional pay was awarded but without additional grant or offsetting savings measures, consideration would need to be given to a supplementary levy on constituent authorities. It was noted that the authorities had been advised to take this into account when setting the levels of contingencies in their own budgets.

      The Chief Fire Officer also asked the Committee to take into consideration future funding implications which may arise from the introduction of precepting. It was noted that a detailed report on precepting would be submitted to the Authority's meeting on 5 February, 2003.

      The Committee discussed in detail the future funding uncertainties and the possible implications for the Authority. After a full debate it was agreed that the growth items identified by the cross-party working group (appendix 3) could not be supported because of the future funding uncertainties as identified. Accordingly, it was

      RESOLVED:

      That it be a RECOMMENDATION to the Authority.

      (a) That the base budget be approved.

      (b) That the budget for the capital programme be approved as set out in Appendix 4 to the report, leaving the Asset Management Working Party to give further consideration to detailed priorities within the programme and make recommendations to the Finance and General Purposes Committee in due course as to implementation.

      (c) As set out in Appendix 5 to the report.

        (i) That an overall borrowing limit be fixed at £12.544m for the year ending 31 March, 2004.

        (ii) That a short-term limit be fixed at £9.378m for the year ending 31 March, 2004.

        (iii) That the proportion of interest paid at rates which can be varied by the level of external factors be set at 32% for the year ending 31 March, 2004.

43 FIRST REPORT OF THE ASSET MANAGEMENT WORKING GROUP

The Committee received and noted the report of the Chief Fire Officer (Item 5 in the Minute Book) detailing the first report of the Asset Management Working Group.

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