First quarterly review to go before Executive
3 September 2010
Cheshire West and Chester Council is preparing to meet the
anticipated cuts in Government funding with a projected healthy
£22.5m in reserves at year end.
The figure, that will help meet any threat to front line
services, is revealed in the authority's first quarterly review of
finance due to come before the Executive on Wednesday,
8 September.
And today (Wednesday) Finance Executive Member, Cllr Les Ford,
told authority’s council taxpayers that prudent management was the
only possible way to meet the unknown.
Cllr Ford, said: "Whilst there has been much speculation, no-one
absolutely is sure about the level of cuts expected in
October."
"Our projected reserves are higher than normal - the result
of deliberate and careful management which will provide some
insurance against the possible effects on our front line
services."
Director of Resources, Julie Gill, emphasises that despite
challenges not to be underestimated her first detailed report on
the 2010-11 financial position builds on the firm foundations laid
in 2009-10.
In the first year of the Council's operations over £35m was
wiped from the authority’s running costs and at year end general
reserves, subject to audit, stood at £19.5m.
And a further £6.9m savings target has been set for the current
year.
The Director identifies departmental budget pressures of around
£6m. However management action plans are in place to reduce
this.
By using various contingencies the Council plans to
arrive at £1.8m by year end on a budget of £700m-plus. This will be
covered by reducing the authority’s contribution to the general
reserves.
Julie Gill stresses: "However, to achieve this position,
Directorates will need to continue to ensure financial management
is a priority and particular emphasis will need to be placed on the
remedial measures they have identified."
"It is also subject to unforeseen changes to service outturn
forecasts. Clearly officers will be monitoring this position
carefully and the Corporate Management Team will be receiving
monthly reports on the financial performance to facilitate
this."
The Executive is asked to approve a revised expenditure budget
of £246m including service expenditure of £216m and capital
financing totalling £19.2m.