Agenda item

To consider a report from the Treasurer, which presents the 2019/20 revised budget and the 2020/21 forward budget to Hampshire Fire and Rescue Authority (HFRA).

Councillor Geoff Hockley left the meeting before the recommendations were approved by the Authority

The Authority considered a report from the Treasurer (item 7 in the minute book) regarding the budget and precept requirement for 2020/21.

The following paragraphs were highlighted to the Authority:

16 – that referendum limit had been assumed at 2% in the Medium Term Financial Plan (MTFP) and this had now been confirmed by the Government;

20 - £179,00 should read £179,000;

36 – there was a surplus being available within the budget of just over £1m;

46 - a small deficit of £116,000  was predicted for 2021/22;

47 – the plan was to balance the budget in 2021/22 through the use of reserves (or reduced contributions to reserves) as done in previous years;

51/52 – efficiency savings that were being considered; and

57 – the report was seeking approval for funding of up to £800,000 from the Capital Payments Reserve for the costs anticipated for the implementation of an Availability and Competency Management System.

During questions, Members learned that the increased cleaning costs as stated in paragraph 14 would be further investigated. Cleaning across HFRS estate were a combination of in-house and external contracts and that value for money was always a priority when setting up and continuing contracts. It was highlighted that Fire Fighters did do a lot of cleaning themselves to maintain operational areas and equipment and that was separate to cleaning costs under discussion.

Paragraphs 40-41 in the report covered the overspend with Phase 2 of the Strategic Headquarters and Members were happy that a compromise had been negotiated following two years of discussions.

RESOLVED:

Hampshire Fire and Rescue Authority approved:

1.         The Revenue Budget, as set out in Appendix A.

2.         The interim financial plan as set out in paras 44 to 53.

3.         The Capital Programme and funding as set out in Appendix C.

4.         The additional works at a cost of £80,000 on Basingstoke Fire Station, which would be funded from the Capital Payments Reserve.

5.         That the forecast overspend of £77,000 on the Strategic Headquarters capital programme be funded from the Capital Payments Reserve.

6.         Funding of £800,000 from the Capital Payments Reserve for implementation of the Availability and Competency Management System.

7.         The virement to create new posts within the FM function to bring the service fully in-house.

8.         A total of £1,035,000 to be budgeted and transferred to the Transformation Reserve in 2020/21.

9.         The Reserves Strategy as set out in Appendix D.

10.      The Treasury Management Strategy as set out in Appendix E, including the Annual Investment Strategy for 2020/21, (and the remainder of 2019/20).

11.      That authority be delegated to the Chief Finance Officer to manage the Fire and Rescue Authority’s investments and borrowing according to the Treasury Management Strategy Statement as appropriate.

12.      The Capital and Investment Strategy as set out in Appendix F for 2020/21, (and the remainder of 2019/20).

13.      The Section 25 Report as set out in Appendix G.

14.      The council tax requirement for the Authority for the year beginning 1^st April 2020 of £44,492,056.

15.      The Authority’s tax be increased by 1.99% for the year beginning 1^st April 2020 and for the properties in each band, as set out in para 18 of this report:

Band A:            £46.04                                    Band E:          £84.41

Band B:                        £53.71                                    Band F:          £99.75

Band C:                        £61.39                                    Band G:         £115.10

Band D:                        £69.06                                    Band H:         £138.12

16.      The precepts set out in para 19 of this report, totalling £44,492,056, which are to be issued on the billing authorities in Hampshire, requiring the payment in such instalments and on such dates set by them and previously notified to the Authority, in proportion to the tax base of each billing authority’s area as determined by them.