•   Agenda of Finance and General Purposes Committee Wednesday 19th November 2008

• Agenda of Finance & General Purposes Committee  Wednesday 15^th October 2008

     To:     Members of the Finance & General Purpose Committee

   To:     Other Councillors for information

Notice is hereby given that you are required to attend the meeting of the Finance & General Purposes Committee which will be held on Wednesday 19^th November 2008 in the Council Chamber, Parish Hall, South Street at 7.30 p.m.       

     AGENDA

1.         Apologies

2.         Declaration of Substitute Members.

3.         Declaration of Interest.

4.         Minutes of the Previous Meeting held on 15^th October 2008

The minutes of this meeting were sent to all members with the Full Council agenda and were due to be confirmed at Full Council on 5th November 2008

Matters arising

5.         Public Forum/Questions.

6.         Accounts for payment –

6.1       Expenditure (Current A/C) in the sum of £12,902.45. (Page 472)

6.2       Expenditure (Clerks Payment A/C) in the sum of £10,225.36. (Page 195)

A list of cheque payments for the month to date will be available at the meeting for signing by the designated signatories.

7.         Approval of Cash Balances & Investments in the sum of £272,279.09

8.         Correspondence Received.  

9.         Clerk’s Report(s).

9.1       New lighting system for the Jubilee Hall

The existing lighting system in the Jubilee Hall, which apparently pre-dates analogue has failed and is beyond repair. The failure occurred during the last Repertory production at the Parish Hall and fortunately a temporary lighting arrangement was possible but which has cost £550.

A new system will cost about £12k and Committee should consider the following;-

Commercially speaking the level of expenditure required is difficult to justify. Other than the Repertory Company the full lighting system is used on very few occasions. Some of the lights are used for some of the dancing events but other than that the system is used infrequently.

However, if we are going to promote the use of the Village Hall for a wider range of activities then a modern lighting system would be valuable marketable tool. A new digital lighting system would be able to be pre programmed for wider use such as parties and events etc and could attract other groups.

The Repertory Company is dependant on the lighting system and could not perform at the Village Hall if there were no lighting.  The company operate on tight margins and there is no possibility of any matched funding being available. Tentative enquiries are being made to the Arts Council for contributions but initial reactions are not favourable.

The Company are an integral part of the Village community and have given local performances over many years which have been enjoyed by many residents.

Council has a difficult decision to make and Members are requested to consider this matter and decide whether to finance a new lighting system.

It should be noted that a figure of £12k has been included in the budget for illustrative purposes. Should Members decide not to fund the new lighting system then the additional moneys could be added to the reserve funds. 

9.2       Budget 2008/9 & 2009/10

At its last meeting this Committee the Clerk presented the draft budgets for 2009/10 for consideration.

At that meeting Members are reminded that it was RESOLVED that:-

1.      A budget for Lancing Festival should be included in next year’s budget in the sum of £1500;

2.      The replacement furniture for the Council Chamber, budgeted for 2009/10, was to be brought forward to the current year to realise the hiring potential of the room as soon as possible. The existing tables are be offered for sale as there was some expected value;

3.      In view of the decision made at the Amenities and Environment Committee on 13^th October, not to replace the changing room facilities at East Lancing Recreation Ground, the relevant element shall be removed from the budget. However, a similar figure was to be allocated without title to allow for a pending report on a replacement lighting system for the Parish Hall to be considered at this meeting;

4.      To review the charging and hiring tariffs at this meeting and:

5.      To receive a second draft budget at this meeting which provided options for the setting of the precept for 2009/10 and outlining the consequential effects on reserves which will form the basis of a recommendation to Full Council in December.

Updates

Resolution 1 – A budget has been included in the new proposals (see 2403)

Resolution 2 – The new furniture is installed

Resolution 3 – is an item elsewhere on this agenda

Resolution 4 – To be determined in this item of the agenda

Resolution 5 – the second draft budget is as follows.

Attached is the detailed second draft budget proposal based upon zero budget principles, for the remainder of this year and the next full year.

This is the final draft to be presented to Full Council in December (Wednesday 3^rd December)
 

Summary

In summary, the headlines of next year’s budget are as follows:-

Income for the remainder of the year

Expected to be a little lower than forecast – down by 1%

Revenue expenditure for the remainder of the year

Is as detailed on the budget papers and attached as appendix A.

Major expenditure projects for the remainder of the year

Further to Council’s decision to infill part of Beach Green, an estimated maximum figure of £50k has been projected for the current year for this project at this time.

The only other outstanding project this year is the Beach Green kiosk scheme. A figure of £45k has been projected for budget purposes to be drawn from reserves. (See table below)

Income 2009/10

Next years income is expected to be similar to this year despite any rise in income tariffs. Attached to this agenda is appendix B which show projected income and appendix C which is the current charging rates.

Members should note that increases have been applied for consideration to the charging and hiring rates and ‘rounded up’ for budget illustration purposes.

Committee may wish to review individual charges at their discretion.

Expenditure 2009/10 - Revenue

Revenue expenditure is as proposed on the detailed sheets attached to this agenda as appendix A.

Expenditure 2009/10 – Proposed major projects

The refurbishments of the toilets in the Parish Hall, estimated at £15k will be subject to a separate report to be presented to the Finance & General Purposes Committee in due course.

The new lighting system in the Jubilee Hall, estimated at £12k is to be discussed earlier in the meeting.

Horizon expenditure beyond 2009/10

Reserve funds are proposed to be established for the following works which will be held in reserve and drawn equally over each of the next 3 years:-

o       Re-roofing of the Parish Hall (cost £36k)

o       Re-roofing to the Pavilion at Monks Recreation Ground (cost £10.5k) and

o       Election fees in 2012 (cost £12k)

Factoring all these proposals and measures, a projected precept scenario is presented as follows:-

Notes         (1)        £147,155 carried forward from 06/07

(2)        Includes a number of additional major improvements made this year, items brought forward and local election costs (totaling approx 32k)

(3)       Estimated £50k for Beach Green and £45k for kiosk proposed to be built in the current budget year (08/09) and drawn from existing reserves (currently £147k)

(4)        £147k - £50k (Beach Green) - £45k (Kiosk) - £4.2k (from reserves this year)

(5)       Includes two major replacement projects - £15k (Parish Hall Toilets) + £12k (lighting system) included in revenue expenditure.

(6)        £19.5k reserve funds for horizon expenditure consisting of :- £12k (Parish Hall re-roofing reserve fund) + £3.5k (Monks Rec Pavilion re-roofing reserve fund) + £4k (election costs)

(7)        For Members consideration in setting the precept for 2009/10.

This Committee is requested to consider the presented final budget and agree any changes necessary so that the 2009/10 budget can be confirmed at the Full Council meeting on 3rd December 2008.

10.       Any Other Urgent Business (Agreed with the Chairman in advance).

Please note that all meetings of the Finance & General Purposes Committee are open to members of the public, and that copies of the agenda will be available on the internet and at each meeting or by request, in advance, by telephoning 01903 753355.

Questions and statements from the public will be responded to at all meetings, at the time allocated for this.

Mobile phones must be switched off, or on vibrate only, during all Council Meetings.

Colin Hunt                        .

Clerk to the Council.

Date of Notice:  13^th November 2008

   To:     Members of the Finance & General Purpose Committee

   To:     Other Councillors for information

Notice is hereby given that you are required to attend the meeting of the Finance & General Purposes Committee which will be held on Wednesday 15^th October 2008 in the Council Chamber, Parish Hall, South Street at 7.30 p.m.       

     AGENDA

1.         Apologies

2.         Declaration of Substitute Members.

3.         Declaration of Interest.

4.         Minutes of the Previous Meeting held on 10^th August 2008

Minutes of the previous meeting were attached to the agenda of the Full Council on 7^th October for confirmation purposes.

Matters arising

5.         Public Forum/Questions.

6.         Accounts for payment –

6.1       Expenditure (Current A/C) in the sum of £25,964.37. (Page 468)

6.2       Expenditure (Clerks Payment A/C) in the sum of £5,652.51. (Page 193)

A list of cheque payments for the month to date will be available at the meeting for signing by the designated signatories.

7.         Approval of Cash Balances & Investments in the sum of £279,339.50

8.         Correspondence Received.  

9.         Clerk’s Report(s).

9.1       Murphy’s Bar site.

At the A&E Committee meeting on 8^th September (Item 36.4) it was agreed to grant an easement for the area of land encroached by the foundations of the new building. The extent of the encroachment was measured at 1’3” (imperial) or 0.38m, along one side. A total of approximately 6 square metres of land.

The A&E Committee has requested that the F&GP committee fix an annual rent.

 The developers wish to have a long term lease agreement (99 years or longer) and are willing to pay all associated legal costs for this facility. As a guide, Members are advised that commercial rent in this area for leisure orientated purposes is currently £180 per square metre per year, although this rate is for useable space. For this reason Members may consider a £500 per year ground rent to be a reasonable charge for the lease agreement.

9.2       Applications for Grants.

Letters requesting grant funding have been received from the following organisations:-

·        Lancing and Sompting CAB;

·        Samaritans;

·        WRVS Cars and Companions and;

·        4Sight – West Sussex Association for the blind

The letters are attached to this agenda.

Committee is advised that the CAB application has already been agreed in principle and is an annual contribution to the running costs of the organisation.

The current budget for Grants various (£1000) has yet to be allocated. There may be other applications yet to be received from other organisations.

Committee is requested to consider the applications and recommend any levels of grant funding that it considers appropriate.

9.3       Budget 2008/9 & 2009/10

At its last meeting this Committee resolved (Item 39.3) that the Clerk prepares the draft budgets in consultation with the Chair and Vice Chair of this Committee and present those proposals to this meeting.

Attached is the detailed draft budget proposal based upon zero budget principles, for the remainder of this year and the next full year. The final budget will determine the precept for 2009/10

This is the first draft to be presented and Members are reminded that to meet financial planning deadlines matters will need to be finalised by Full Council in December (Wednesday 3^rd  - refer to new timetable)

This means that there is only one more meeting of this Committee before that date (Wednesday November 19^th - refer to new timetable) to discuss and agree the final budgets for resolution by Full Council.

In summary, the headlines of the budgets are as follows:-

Income this year 2008/9

·        A slight fall in expected income this year is expected to what was projected – Down by 1%.

Income 2009/10

·        Next years income is expected to be similar to this year despite the recommended 3% rise in income tariffs. This is due to a declining usage of the Village Hall although efforts are being made to improve the appearance and facilities of the Hall, which hopefully will stem this trend.

·        There is some doubt whether Partnership 2000 will continue to run events on Beach Green due to the bad weather experienced during Bank Holiday weekends over the past two years. Negotiations are ongoing but failure to agree a further contract will have a significant effect on next year’s income (£20k). It is hoped that offering car boot sales on Beach Green may be a positive factor in negotiations.

·        There may be some additional income derived from the re-tendering of the car parks and new Beach Green kiosk facility once constructed.

·        There has been an enquiry from a circus organiser for a 3 or 4 day show in Lancing next year which would bring a welcomed income (£2k) but this will be dependant upon the Beach Green issue being resolved.

Expenditure this year 2008/9

·        There has been some savings identified in this year’s budget which has allowed some major and much needed improvements to be planned and made within the current budget.  These will be:-

o       CCTV in the Village Hall

o       New furniture and a new ceiling in the Jubilee Hall

o       Internal redecoration

o       A new kitchen

o       New IT & support services

o       Increased public indemnity insurance

o       New steam floor cleaning equipment

o       In addition, increased election costs of £10k have also been absorbed into the current budget.

Expenditure 2009/10

·        There may be substantial costs involved with Beach Green. These costs will be better known once the issue is determined but currently there is approximately £106k in reserves. However, the uncertainty regarding this element of the budget will have consequences in 2009/10 and possibly beyond.

·        Currently there are no approved capital projects for next year (2009/10) although there are certain key projects which may be approved by Council before the end of the financial year and therefore require consideration and factored into this years budget equation:-

(1)        Beach Green Kiosk – A new building is now required. Although this will be a considerable cost, a significant income is derived from the lease and it makes commercial sense to prioritise this project.

Depending upon the final scheme, reconstruction costs could be as much as £45k albeit for a much improved facility. Ideally the new build would be completed by April 2009 to coincide with the new lease agreement. Excluding external borrowing to achieve this would require financing within the current budget by drawing on reserves and replacing this through next year’s precept thus maintaining current levels of reserves for the Beach Green project.

(2)        The toilets in the Parish Hall are in need of refurbishment. A sum of £15k has been suggested for this purpose and a report will be presented to the Finance & General Purposes Committee in due course. This project will complete the major internal refurbishment programme of the Village Hall.

• Energy costs are expected to rise although an agreement to buy at a reduced rate for the coming year will effectively save the Council in excess of £2k over the coming year.

Horizon expenditure beyond 2009/10

·        There are two elements of major maintenance works which have been identified and will be required to be undertaken within the next three years. These are:-

o       Re-roofing of the Parish Hall – (£35k) and

o       Re-roofing to the Pavilion at Monks Recreation Ground (£10k)

o       East Lancing Rec changing rooms

It is prudent to make a budget provision now by adding sum to the reserves each year for the next three years for expected expenditure in 2012.

Projected precept scenario:-

Notes   (1) £45k for kiosk proposed to be included in this year’s budget drawn from reserves (currently £106k)

(2) Made up of £15k (Parish Hall Toilets to be undertaken next year), £12k (Parish Hall re-roofing reserve fund), £3.5k (Monks Rec Pavilion re-roofing reserve fund) & £15k (Lancing Rec changing room reserve fund)

(3) Includes a number of major improvements this year (see above expenditure this year 2008/9)

(4) Members may consider a higher or lower precept figure dependant upon the level of reserves expected to be required for major projects such as the Beach Green works.

(5) Once the Beach Green issue is resolved, a strategy of use of reserves will be possible.

It should be noted that there may be other unexpected costs not foreseen and therefore not budgeted between now and the end of year which will need to be drawn from reserves as necessary.

This Committee is requested to consider the draft budget and agree any changes necessary so that the final budget will be confirmed at its next meeting.

9.4              External Audit

The audited accounts for 2007/8 have now been satisfactorily completed and attached is a copy of the External Auditors certificate and opinion.  The recommendations relating to the assets and risk assessments are being implemented.

The original certificate is being held in the Lancing Parish Offices for inspection purposes and the report will be advertised in accordance with Regulation 12 of the Accounts and Audit Regulations 2003.

Two matters for noting are:-

(1)  that the Annual Return for the year ending 31^st March 2009 must be approved by the Council by 30^th June 2009, which is earlier than last year and

(2) The council has incurred an additional charge of £490 as the Auditors were required to seek legal advice in investigating the concerns of a member of the public in relation to an allegation that last years budget may have been unlawful.

Although this matter has been repudiated by the Auditors, the Council is nevertheless required to incur this cost. This cost has been included in the expected out turn budget figures.

10.       Any Other Urgent Business (Agreed with the Chairman in advance).

Please note that all meetings of the Finance & General Purposes Committee are open to members of the public, and that copies of the agenda will be available on the internet and at each meeting or by request, in advance, by telephoning 01903 753355.

Questions and statements from the public will be responded to at all meetings, at the time allocated for this.

Mobile phones must be switched off, or on vibrate only, during all Council Meetings.

Colin Hunt                        .

Clerk to the Council.

Date of Notice:  8^th. October 2008