Archived decisions

    AT A MEETING of the HAMPSHIRE FIRE AND RESCUE AUTHORITY FINANCE AND GENERAL PURPOSES COMMITTEE held at the Hampshire Fire and Rescue Service Headquarters, Eastleigh on 18 January 2007

PRESENT:

Councillors: P.A. Heath (Chairman); I.F.E. Beagley; M.F. Cartwright; K. House; P.R.C. Hutcheson; R.H. Price; D. Simpson; R. Smith; M.J. Woodhall.

57 APOLOGIES

No apologies for absence were received.

58 DECLARATIONS OF INTEREST

Members were mindful that, where they believed they had a personal or personal prejudicial interest in any matter to be considered at the meeting, they should, normally at the time of debate, declare their interest and having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the Fire Authority's Code of Conduct consider whether to leave the meeting whilst the matter was discussed.

There were no declarations of interest made by members under this item.

59 MINUTES

The Minutes of the meeting held on 26 October, 2006 were confirmed as a correct record and signed by the Chairman.

    Matter Arising on Minute 52:

    The Committee were reminded that the Authority, at it's meeting on the 13 December 2006 and recorded in Minute 144, had amended recommendation two to read:

    "2. That, subject to the Clerk, Treasurer and Chief Officer being satisfied with the detailed contractual and governance arrangements, officers investigate the possibility of a five year buy-in for participating in the proposed mutual and subject to reporting back to the Finance and General Purposes Committee, the Authority becomes a full Member of the Company and authorises the Chief Officer, in consultation with the Clerk and Treasurer, to take all the necessary steps to achieve this."

60 DEPUTATIONS

There were no deputations made under this item.

61 BUDGET MONITORING 2006/2007 (3)

The Committee considered the report of the Treasurer and Chief Officer (Item 5 in the Minute Book) detailing the latest budget predictions for the year. Members discussed the effect of gas prices, the position in regard to the rollout of the new IT network and areas of increased income.

    RESOLVED:

    That, it be a RECOMMENDATION to the Authority that the latest 2006/07 budget position be noted.

62 UPDATED DRAFT BUDGET 2007/08

The Committee considered the report of the Treasurer and Chief Officer (Item 6 in the Minute Book) on the changes to the financial projections for 2007/08 since the draft budget was presented to the Authority at its meeting on 13 December 2006. A short presentation was given providing the Committee with some context in which the draft budget proposals had been prepared.

    The Chief Officer reported on the consultations undertaken with representatives from key stakeholders, including trades unions and resident associations. There was an appreciation of the risks that the Authority faced and general support for the budget proposals.

    There was a full and wide-ranging discussion on the issues surrounding the budget for 2007/08 and the implications of different council tax increases.

    Members discussed the Authority's policy of keeping council tax increases in line with the three-year rolling average increase in state pensions. Although it was seen as an important policy which helped to protect pensioners, it was beginning to constrain the budget when other factors were increasing beyond state pensions. In particular there was uncertainty in relation to pay increases which would significantly affect the budget. Members felt that the policy should be reassessed in the light of the Government's Comprehensive Spending Review 2007.

    The Committee discussed the proposed level of reserves to held by the Authority in relation to identified potential risks associated with the forward budget. It was noted that the Authority faced risks in many areas including: higher operational activity from abnormal weather conditions, higher than anticipated pay awards, some uninsured risks, and the potential merger with the Isle of Wight.

    Members expressed their confidence in the senior managers of the Service and congratulated them on the improvements and efficiencies they had made in the previous years.

    RESOLVED:

      1. That, it be a RECOMMENDATION to the Authority that the council tax increase be 4.5% which would fund the proposed 4.7% increase in the budget.

      2. That, it be a RECOMMENDATION to the Authority to approve the Capital Programme and associated Prudential Indicators (appendices 4 and 5 to the report).

      3. That, it be a RECOMMENDATION to the Authority to approve the Treasury Management Strategy (appendix 7 to the report).

      4. That, it be noted that the final budget and council tax will be set by the Authority at its meeting on 14 February 2007.