presentation to staff

Presentation to Staff

Budget 2012/2013

North Yorkshire Fire & Rescue Service


Financial Update

2012/2013 Budget Balanced All about 2013/2014 and beyond For 2012/13 Council Tax Freeze Grant and

4% Trigger for Referenda Effectively Decision was a Council Tax

increase of O%, 1.6% or 4% for 2012/13


Outcome Opted for Freeze in 2012/2013 3% Council tax Increase in Future Years Use of Reserves in 2013/14 £2.5m Savings over three years £900,000 in 13/14 £1,200,000 in 14/15 £400,000 in 15/16 Unlikely to Stop There – up to 2020

From £4m to £2.5m

November projection for Worst Case was £4m Savings by 2016/2017

Option of £1.8m by 2015/16 Now £2.5m by 2015/2016 Why? 3 Main Areas Acceptable Council Tax Increases Forecast Pay and Prices Use of Reserves


£4m By 2016/17 Based On..

Council Tax Freeze in 2012/13 2% Increase Thereafter 2.5% Pay Award in 2012 2% Thereafter No Use of Reserves


£1.8m Based On 1% on Council Tax (Roughly) = £200,000 1% on Paybill (Roughly) = £200,000 4% On Council Tax 2012/2103 (£800,000) 3% Thereafter (£200,000 per year for

three years - £600,000) 1% Pay 2012 and 2013 (£500,000) Reserves £300,000 Total £2.2m Less £4m = £1.8m


£2.5m Based On

0% On Council Tax 2012/2013 3% Thereafter (£200,000 per year for

three years - £600,000) 1% Pay 2012 and 2013 (£500,000) Reserves £400,000 Total £1.5m Less £4m = £2.5m £700,000 difference on Freeze over three

years


Savings/Reserves/Council Tax Increases

First Call - Legal Duty of Best Value “continuous improvement…economy, efficiency and effectiveness”

Second Call – Council Tax Increases Third Call – Use of Reserves Balance Between the Three as a Medium

Term Approach to Grant Cuts and a Sustainable Service to 2020


Considerations

Fairness and Flexibility of a “Middle Way” “Retribution” in 2013/14 For CT Increases 3% Increases less likely to be “Excessive”

after two years of Freeze Some Use of Reserves but 2020 Savings represent c.7.5% Current Annual

Budget Delivered over Three Years Underspend of 3.2% in 2011/12 Alone


Use of Reserves

Estimated £6.2m @ 31.3.12 Contingency £600,000 Pensions £1,250,000 Pay/Price £2,350,000 New Developments £100,000 General £1,900,000


A Sustainable Organisation in 2020?

No Savings Then Bankrupt by 2015/16 unless Council Tax Increase > 11% (inc Referendum) in that Year

Pensions Reserve – Possible Employers’ increase £350,000 extra p.a (3.5 years)

Possible Financing of Support Service Reductions (LGPS)


Cont’d

Pay/ Price covers 12% variation from assumptions

1%,1%,2%,2%,2% = 8.3% (Planned) Short Term may be different But e.g 2%, 2%, 4%,4%,4% = 17% Contingency £600,000 New Developments £100,000 Capital £Nil


Cont’d

General £1,900,000 Competing Demands Less Use 13/14 £4-500,000 Council Tax Benefit £250,000 Grant Reductions £+/-??? Repayment of Debt Loss of Income Est £250,000 p.a. available 2016 to2021


Conclusions 2012/13 Done All About 2013/2014 and After Risk and the Balance between: Efficiencies, Allowable Demands on Council Tax, A Sustainable Organisation to 2020 www.northyorksfire.gov.uk/about-us/

financial-information/accounts


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