Agenda item
Environment and Neighbourhood Services Budget
The Director of Environment and Neighbourhood Services will attend the meeting to present to Members current budget issues facing the service.
Minutes:
The Director of Environment and Neighbourhood Services gave a presentation highlighting the current budget position and on-going pressures. The service consists of two divisions; the environment and protection division, which includes services such as recycling, waste, consumer and business protection and safer streets; and the neighbourhood services division which includes services such as transportation, sports, parks and cemeteries and libraries, arts and heritage. It was explained that following a restructure last year, although similar functions were provided, they were divided differently, with the environment and protection division consisting of three large contracted areas of spend. The department had recently achieved savings of £500,000 in 2010/11, £11,000,000 in 2011/12 and a further £3,000,000 in the current financial year. It was explained that the department was facing a number of pressures in-year such as achieving the £3,000,000 savings, staffing cost pressures from wave two across the department as well as shortfalls in income from highways operations and licensing.
The Director of Environment and Neighbourhood Services explained that structural issues within the budget were being addressed in the short and medium term. . It was explained that the transport service had a underspend due to holding deposits being released back into the budget which was a one off saving to help balance the budget in year. Work was being undertaken, including a restructure and reduction in staff to ensure that a balanced budget was achievable in future years.
It was explained that the recycling and waste service had an overspend partly due to the sign shop having an unachievable income target of £900,000, yet consistently achieving sales of £600,000, and partly due to the level of waste going to landfill being higher than budgeted for. A recovery plan was in place to address the budget gap for this year as outlined above and work was being undertaken to ensure that the sign shop had an achievable target prior to potentially being outsourced. It was clarified that flytipping was included within the waste contract and was not an additional cost and is picked up within the £93 per tonne landfill charge.
Discussions took place surrounding the parking account and it was confirmed that the figures include accrual from the previous year. It was confirmed that these had been accepted by audit. Members requested that an accurate budget for the figures of each year be produced to allow a comparison to take place and to have a clearer picture of the account. It was subsequently agreed that a monthly budget update from each service would be provided to the Committee highlighting the current budget position as well as highlighting any exceptions such as overspend and anticipated budget pressures. It was requested that figures for income from camera enforcement and the percentage of landfill waste that arises as a result from flytipping be provided.
The future pressures of the budget were highlighted in light of the LGA report as well as the increase landfill tax from £93 to £101 per tonne. It was explained that the council would no longer be able to deliver existing services if a similar pattern of spending cuts continued and a shift in resident’s expectations would be needed. The procurement of large contracts was also highlighted as being a budget pressures as targets have been set although the final price is dependent upon the competition of the market. The grounds maintenance tendering as part of the public realm contract would be cross borough with four other authorities and includes the purchase of a new depot to allow Brent to have a greater competitive edge as well as having a tangible asset at the end of the contract. During discussions it was agreed that future departmental presentations should contain fuller detail and be more granular.
RESOLVED:-
i) that the presentation be noted
ii) that a monthly budget update report be provided by each service