To receive a report.

Christine Marshall, Deputy Chief Executive (Corporate Development) and S151 Officer presented Members with the Draft Budget Report 2025/26 – 2029/30.

The report highlighted to Members the final details of the 2025/26 budget, the 5-year Medium Term Financial Strategy (MTFS) from 2025/26 to 2029/30 and Capital Programme which included the recommended level of Council Tax for 2025/26 taking into account budgetary pressures including that of the Internal Drainage Board (IDB) levy, pages 1 to 52 of the Supplementary Agenda refer

Members received a presentation that provided an overview of budget progress which included highlighting budget pressures, risks and considerations, improvements and further opportunities, a summary of the consultation response and a review of the risks.  A copy of the presentation is attached at Appendix A to the Minutes.

Members were invited to put their comments and questions forward.

·       A Member queried the background for the utilisation of the S113 Recharge, page 29 of the Supplementary Agenda refers.  In response, the Section 151 Officer advised Members that due to the Memorandum of Agreement between the three authorities of the Partnership, Section 113 of the Local Government Act 1972 had been activated to enable the placing of staff at the disposal of the other authorities.

·       A Member queried whether multiyear staff salaries were being negotiated by unions and sought clarification on the capitalisation of salaries.  In response, the Section 151 Officer advised Members that she was not aware of any considerations for multiyear settlements and that the continuation of the flat rate pay rise was expected.  Members were further advised that capitalisation referred to capitalising on project management costs for the people working on projects within the Capital Programme.

·       In reference to Table 16 - Efficiency Target, a Member requested an explanation for the £592,000 Budget Savings Requirement, page 34 of the Supplementary Agenda refers.  In response, the Section 151 Officer advised Members that a final figure would be reached and that the Savings, Transformation and Efficiency Plan operated as part of the Annual Delivery Plan.  Members were further advised that service reviews aimed to generate efficiencies and that the PSPS Transformation Plan was also looking to align savings opportunities across the Partnership.

·       In reference to Internal Drainage Board (IDB) levies, a Member queried who was responsible for setting the fees.  In response, the Section 151 Officer advised Members that IDBs operated a committee structure and were responsible for setting their own levies. 

·       A Member further queried whether IDBs would be categorised as a third-party service provider.  In response, the Section 151 Officer advised Members that IDB levies were effectively a precept embedded in the Council’s budget whereas historically residents had been billed separately by the IDBs.

·       A Member commented that IDB levies were a significant risk that was not separately identified as a strategic risk.  In response, the Section 151 Officer advised Members that she was working with the Group Manager (Insights and Transformation) to ensure that the risks were recognised and up to date.

·       The Section 151 Officer drew Members attention to Table 17 – Key Risks, page 36 of the Supplementary Agenda refers.

·       In reference to increased maintenance costs of ageing physical assets, a Member queried whether the accuracy of risk registers and insurance costs should be included as a risk, page 37 of the Supplementary Agenda refers.  In response, the Section 151 Officer advised Members that the inclusion of the risk referred to the condition of the assets and not the insurance.   Members were assured that insurance was not considered to be a risk as there was adequate cover in place.

·       In reference to Table 7 – Fees, Charges and Rental Income, the Chairman commented that it was unclear how much income was coming in though anticipated demand changes and that it would be beneficial for demand forecast information to be provided for areas such as carparking, Kingfisher Caravan Park and waste services, page 21 of the Supplementary Agenda refers.  In response, the Section 151 Officer advised Members that volumetric data would be requested to highlight trends in areas which were being volume or price driven.

·       In reference to Table 10 - Spending Plans, a Member queried what opportunities were available to understand the way in which IDBs spent their funds, page 25 of the Supplementary Agenda refers.  In response, the Section 151 Officer advised Members that IDBs were their own constituted bodies and had been receptive to supporting wider understanding of how IDBs were managed and financed. 

·       A Member queried whether IDBs had the same checks and balances that Councils had to comply with.  In response, a Member speaking as the Council’s IDB representative advised the Committee that the Council had good representation on all IDBs in East Lindsey district.  Members were assured that IDBs were well managed and had similar governance requirements to Councils and that Members were encouraged to attend IDB meetings to improve relationships and understanding.

·       A Member highlighted that IDBs were subject to similar governance requirements as town and parish councils such as the Joint Practitioners Advisory Group (JPAG).

The Chairman thanked the Section 151 Officer and Finance Team for an excellent and detailed report.

Following which it was,

RESOLVED:

That the Draft Budget Report 2025/26 – 2029/30 be noted and relevant Member comments be fed back to Executive Board.