Apologies for absence were received from Councillor Barnby and Penny Burnside (Co-optee).

To discuss the Revenue Budget 2012/13 Provisional Spending Targets for Residents and Visitors

The Executive Lead for Tourism and Environment introduced the item to the meeting, outlining the difficulties and challenges faced by the Council in the budget setting process. In response to questioning the Executive Lead for Tourism and Environment assured the Board that as outlined in the documents and reports issued in December 2010 the savings identified and required from 1^st April 2012 can be achieved, and some are already in the early stages of implementation, with some already implemented. The Board heard how the cost implications of not implementing some of the savings identified are outlined within the documentation issued in December for consideration at Full Council. The Board were advised that Residents and Visitor Services also faces additional budget pressures in terms of increased rate costs and utility costs – however these have been factored into the base budget.

The Board questioned whether the income outlined in the budget proposals regarding Beach Huts was achievable. The Executive Lead for Tourism and Environment advised the Board that the income from Beach Huts was achievable, and that the income lines proposed were calculated based upon current service usage (with 7 year waiting lists in some areas) and that a slight decrease in service usage had also been factored into these figures. The Board were advised that subsequent areas of income generation and savings, along with the associated risks, are again detailed within the paperwork issued in December.

In response to questioning the Board heard how grants and grants in kind (which includes rent and rate rebates, arts and museums) do not form part of the proposals. The Board were advised that where income was generated (and it is usually limited) it would be used to support of offset other pressures as outlined in earlier questioning. The Board heard how implementation costs associated with the budget proposals are outlined with the budget papers.

In response to questioning the Board heard how a subsidy grant of £232,000 is proposed within the budget papers for Torbay Coast and Countryside Trust for 2012/2013. The Board were advised that this is subject to inflation and that Torbay Coast and Countryside Trust have additional pressures which they are working to reduce and a recovery plan is being prepared.

The Board were advised that full impact assessments on the detailed proposals for libraries would be available for the meeting on the 25^th January and that the full consultation results would also be made available.

In response to questioning the Board were advised that there were other services within Residents and Visitors Services from which savings can be found to lessen the impact on libraries, however cuts to these services would also impact the customer. The Board heard how some services with Residents and Visitors Services are already very small and that many are now outsourced (i.e. TOR2). They were advised that libraries is the biggest service offered with the largest budget, and in outlining the budget proposals the Executive Head for Residents and Visitor Services advised  ...  view the full minutes text for item 469.

The Executive Lead for Finance and the Executive Head for Business Services presented the budget proposals for the business unit to the Board.

The board questioned whether Business Services would still be able to manage expectations as a result of the budget reductions in this area, and as a result the loss of staff.

The Board were advised that there could be some loss of service and that it would be up to the managers within the business unit to mitigate this.

The Board were advised that a recent restructure has taken place within the business unit which will result in a multi skilled team.

The Board were advised that a work programme will be prepared to ensure that the workload is structured within the new teams.

The Board were advised that the Business unit will still have the capacity to deal with ad-hoc requests.

The Executive Lead for Finance and the Executive Head for Finance presented the budget proposals for the business unit to the Board.

The Board questioned whether the reforms for the localisation of council tax benefits and business rates (and the need to develop these proposals in 2012/13 for implementation in 2013/14) and the proposed savings from this would have an adverse impact on delivery.

The Board were advised that although staff reductions would take place the Executive Head of Finance was reasonably confident that there will not be any adverse impact on delivery.

The Board questioned whether there would be any impact on the ability to recover debts following the re-structure of the debt recovery team. The Board were advised that since the original papers had been dispatched there is now no reduction proposed as part of this team.

The Board questioned whether the DAP [Devon Audit Partnership] reduction been agreed. The Board were advised that this has been agreed and was endorsed by the committee in December 2011. There will be a 10% reduction per annum.

The Board sought clarification as to why it was taking longer than 28 days to pay invoices and were concerned that this would have an adverse impact on small local businesses. The Board were advised that a few invoices may take longer to pay and that this would distort the figures that are reported.

Resolved:

1)    That the board recommend to the Mayor the RICC should provide Torbay Council with a subsidy reduction plan for the next 2/3 years once the new Board is established.

The Executive Head for Information Servicespresented the budget proposals for the business unit to the Board.

The Board advised that they understood that there is a renewals fund for IT equipment and questioned whether, given office rationalisation and reduced staffing numbers is was still appropriate to keep this fund at existing levels.

The Board were advised that the fund has been built up over the last 12 years. They were advised that the Council currently holds IT assets (computers etc) worth £5 million and that the Councils IT infrastructure was worth £3 million, therefore the renewals fund currently held was proportionate.

The Board were also advised that some of the money held in the fund would also be used to support council wide change projects such as the Productivity Improvement Programme Council Design Project.

The Board questioned whether the reduction in the training and supervision budget would adversely affect the service customers receive from our customer service centre. The Board were advised that there is only a £3,000 reduction proposed here and that it would not affect the service.

The Board questioned how much the internal print service currently cost the council per annum. They were advised that it cost the Council £930k however it also generates £230k income per annum. The Board were advised that there is the potential to generate more income through this service and that this is being investigated.

The Executive Leave for Finance and the Executive Head for Commercial Servicespresented the budget proposals for the business unit to the Board.

The Board questioned whether the reduction in posts within Commercial Services would have an adverse impact on child protection issues. They were advised that there would be no impact.

The Board questioned whether in the event of pressure on the service, for example child protection / legal challenge, whether the local authority would be able to respond or would we have to pay for external services previously provided in-house.

The Board were advised that the service would be provided internally as far as possible. The Board were advised that sometimes officers may need to seek advice externally i.e. specific legal advice on particular projects. The Board were also advised that a “virtual” shared service was in place with the Devon Solicitors Group to cope with peaks and troughs of work.

The Mayor and the Chief Executive Officer for the EDC presented the budget proposals for the business unit to the Board.

The Board questioned whether in terms of the overall budget build, would the EDC be able to make the savings required form 1^st April 2012. The Board were advised that the EDC would be able to make the savings and they were confident that the savings would be implemented from the 1^st April 2012.

The Board questioned how confident the CEO of the EDC was to meet the targets for income generation as set out in the budget proposals. The Board were advised that the CEO of the EDC was confident the income would be generated.

The Board questioned how far advanced the proposals are to transfer Brixham Town Hall to the Town Council and move connections staff out. The Board were advised that discussions are ongoing and that a meeting is taking place on the 26^th January with Brixham Town Council to discuss this further. The Board advised that there are also ongoing discussions taking place with Brixham Library regarding the potential moves. 

The Board questioned whether there are any development items or cost pressures within the EDC which O&S should be aware of at this time. The Board were advised that there are no immediate pressures, however they were reminded that the EDC no longer had any unallocated reserves in place as a consequence of the 2012//13 budget build. The Board were advised that if any pressures were to arise that the CEO of the EDC would come back to Council to discuss.  The Board were advised that the EDC was presently looking at further opportunities to maximise economic growth associated with the recently confirmed South Devon Link Road and on-going negotiations relating the future development of the Whiterock Business Park.
  

The Board asked whether the EDC provided any grants and grants in kind (reduction in fees etc) and if so what changes are proposed in these areas. The Board were advised that the EDC does not provide grants/grants in kind.
 

The Board questioned when additional income is generated within the EDC what the process is for recovering over target amounts into a central pot. The Board were advised that as the EDC is a separate ‘not for profit’ legal entity (although wholly owned by Torbay Council) and that any surplus would normally be reinvested in front line delivery. The Board were advised that EDC does receive a formal Contract Fee from Torbay Council for services provided and that this can be reduced if service delivery surpluses are made. The Board were advised that the EDC is likely to return £150,000 back to the Council this year.

The Board questioned whether there were any implementation costs associated with the proposals as there are none outlined in the budget papers. The Board were advised that there were none.

The Board questioned whether the proposal to close administrative offices over Christmas and New Year would  ...  view the full minutes text for item 474.