Archived decisions
Item 3
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 17 January 2008.
PRESENT:
Councillors: R. Smith (Chairman); I.F.E. Beagley; M.F. Cartwright; M.G. Cooper; D. Horne; P.R.C. Hutcheson; R.H. Price; D. Simpson; M.J. Woodhall.
89 APOLOGIES
Apologies for absence were received from Councillors P.A. Heath and K. House.
90 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.
91 MINUTES
The Minutes of the meeting held on 14 November, 2007 were confirmed as a correct record and signed by the Chairman, subject to the following change:
The addition to Minute 85 of `Members requested the preparation of a document detailing the cost implications resulting from the proposed new format of the Activity Report, and the wider cost of all publications produced by the Authority.'
92 DEPUTATIONS
There were no deputations made under this item.
93 BUDGET MONITORING 2007/08
Councillor M.J. Woodhall declared a personal interest as he had been assisting a friend in the purchase of a property that he had later found to be owned by the Authority.
The Committee considered the budget monitoring report prepared by the Treasurer and the Chief Officer (Item 5 in the Minute Book) setting out the latest budget predictions for the year. The cost of borrowing by the Authority had decreased due to lower interest rates and the switch to short-term borrowing from Hampshire County Council, as opposed to long-term borrowing from the Public Works Loans Board. There had been delays in receiving capital receipts from house sales, due to a slower housing market and some difficulties regarding the freehold status of certain properties in Winchester.
The recommended change to the Financial Regulations regarding the level of debt write-off was supported.
Members noted the fall in the cost of retained duty personnel pay, due to a reduction in incidents attended, and discussed a possible link between the fall in incidents and the roll-out of home fire safety visits. It was still too early to confirm a direct correlation in the data, but the trend was encouraging. The Committee noted that where underspends were referred to in the report as having to be accommodated within existing budgets, this was because it was not considered financially prudent to ring-fence underspends when other departments within the Service may have incurred overspends.
RESOLVED:
That the following be RECOMMENDED to the Authority:
(1) That the latest revenue budget position and virements over £100,000 as set out in Appendix A of the report be approved.
(2) That a change to the Financial Regulations to increase the upper limit for writing-off debt which must be reported to the Finance and General Purposes Committee from £3,000 to £5,000 be approved.
94 UPDATED DRAFT BUDGET 2008/09
The Committee considered the report of the Treasurer and the Chief Officer (Item 6 in the Minute Book) on the changes to the financial projections for 2008/09 since the draft budget was presented to the Authority at its meeting on 12 December 2007. The Committee received a short presentation, setting out some of the context and background in which the draft budget proposals had been prepared.
The Chief Officer reported on the outcome of consultations undertaken with stakeholders. Representatives of council tax payers and the business community felt that an increase of 3.9% would be generally welcome in that it would match 2008 state pensions increase. They acknowledged that while headline percentage increases above this level would appear high, they fully appreciated that the impact on council tax payers in cash terms is relatively very small proportion of the total council tax bill. Concern was expressed about the ability of the Authority to deliver efficiency savings and representatives did not want to see any reduction in standards of vehicles and equipment. Unions representatives were pleased to see proposed increase in capital programme for repairs and maintenance of buildings.
Members discussed the proposed reduction in reserves, focusing on the proposed reduction in the general reserve from £2,000,000 to £1,500,000. It was noted that this would be lower than comparable fire and rescue authorities. However, it was noted that the proposal also included in addition to other, specific, reserves, a capital payments reserve of £500,000 and restoration of the modernisation reserve to £600,000, which could be accessed if emergencies exceeded what officers had considered to be a prudent assessment.
Members discussed extensively the issues surrounding the budget, and the implications to the taxpayer and to the Authority of different levels of council tax increase. The Committee was conscious of the need to balance the impact of increases on those on low incomes against the need to provide an effective and modern fire service.
RESOLVED:
That the following be RECOMMENDED to the Authority:
(1) That the Budget be set as closely as possible to a level which requires a council tax increase of 3.9%.
(2) That the Capital Programme and associated Prudential Indicators, as set out in appendices 4 and 5 of the report, with the addition to the Capital Programme for 2008/09 of the purchase of a minibus for £19,000 from external funds, be approved.
(3) That the Treasury Management Strategy set out in appendix 7 of the report be approved.
95 DRAFT FIRE AND RESCUE SERVICE NATIONAL FRAMEWORK 2008/11 - HFRA RESPONSE
The Committee considered the report of the Chief Officer (Item 7 in the Minute Book) regarding the HFRA's response to the draft National Framework 2008/11. The draft response had been brought before the Finance and General Purposes Committee, as it was the only formal Committee of the Authority that had a meeting prior to the end of the consultation period on 31 January 2008.
Members discussed the omission of a request for a requirement that the Regional Management Board be politically balanced, but it was noted that this had been raised at the Regional Management Board in the past. The Committee was made aware that individual Members could submit their own, personal, response to the Framework if they so wished.
RESOLVED:
That the HFRA's response, included as an appendix to the report, be noted.