Agenda and minutes

None.

Of the meeting held on 10 October 2014 (for confirmatiomn).

It is noted that with regard to minute 18, ‘Occupational Road Risk’ the Road Risk Group Action Plan will be submitted to a future meeting.

RESOLVED for the minutes of the last meeting held on 10 October 2014, to be confirmed and signed by the Chair.

Apologies for lateness were received from Councillors John Clarke (10.06am) and John Allin (10.07am).

Report of Chief Fire Officer

Neil Timms, Strategic Director of Finance and Resources, presented the report which details the financial performance of the Service between 31 March 2014 and 30 November 2014, highlighting key areas where outturn variances are most likely to occur.

The following points are highlighted in the report with a brief explanation of the predicted figures:

(a)  the Revenue Budget is £42.9million with an estimated overall variance of 0.67% totalling £290,000;

(b)  the net cost of industrial action during 2014/15 is estimated to be £442,000;

(c)  the whole time variance to date is £365,000 underspend with an estimated outturn underspend of £245,000;

(d)  retained pay is predicted to have an underspend of £244,000;

(e)  administrative and support staff pay, £344,000 underspend;

(f)  pension strain, has an outturn of £158,000 overspend;

(g)  Prince’s Trust, £86,000 deficit with an underspend of £33,000;

(h)  fleet maintenance has £40,000 of additional maintenance charges to pay;

(i)  premises underspend of £37,000;

(j)  insurance overspend of £22,000;

(k)  supplies and services, £50,000;

(l)  support services, overspend of £100,000;

(m)  earmarked reserves of £280,000;

(n)  depreciation and impairments of £6,000;

(o)  capital financing costs underspend of £239,000.

It is noted that the cost of the cost of industrial action is now predicted to be £373,000.

An explanation of the Capital Programme is provided in the report.

RESOLVED to approve the following earmarked reserves:

(i)  £200,000  potential costs arising from developments in communications;

(ii)  £  80,000  future ill health charges (top up to pensions reserve);

(iii)  £200,000  to support the transition to a joint control room.

Report of Treasurer

Peter Hurford, the Treasurer to the Authority, presented the report which outlines the performance to the Prudential Indicators for Capital Accounting and Treasury Management for the two-month period ending 30^th November 2014.

One small technical breach had occurred on the upper limit of loans between 12 months and 5 years. This was due to a reduction in total borrowing and is not considered a significant risk.

RESOLVED to note the report.

Report of Chief Fire Officer

Neil Timms, Strategic Director of Finance and Resources, presented the report which provides options for the recommendation to the full Fire Authority for a balanced revenue budget over the next 3 years including implications for Council Tax.

The following responses were given to Councillor’s questions:

(a)  the outline budget was set last February and now needs to be updated to include further potential savings identified by a Panel consisting of Councillor Wood as Chair of the Finance and Resources Committee, Peter Hurford, as Treasurer to the Authority and Neil Timms as Strategic Director of Finance and Resources;

(b)  Members have been concerned regarding the underspend on the capital programme, but this has often been due to delays, including the time between ordering fire appliances and receiving them which can be 14 months. Due to this, plans need to be in place at least a year before equipment is required;

(c)  construction of the new Fire Station at Gresham is taking longer than predicted due to unforeseen delays in purchasing land. This will result in the Fire Service not being able to perform to the programme as although some flexibility is built-in, it will not be sufficient in this instance so the programme will be reduced by 20% to allow for this slippage;

(d)  more detailed information will be available for the full Fire Authority meeting regarding the implications on council tax options;

(e)  in 2008 the Service assessed all of the Fire and Rescue Service estate and considered sustainability of the capital programme. The cost of refurbishment and new build were considered and it was found that refurbishment of fire stations was not feasible as better value for money could be achieved by building new properties. If building programmes were ‘slowed down’, there would only be a short term benefit with a greater long-term impact;

(f)  the capital spend on appliances and their expected working life has been considered but could be revisited. Lifespan varies for different equipment with pumping appliances currently active for 12 years but built with a 15 year life span. If members requested, this could be reconsidered but would need to include consideration of maintenance costs and again, a short term benefit could have a longer term negative impact;

(g)   a Fire Cover Review is taking place at the moment to ensure that all Fire Stations are sited appropriately. Land has not yet been identified for any new stations although several options are available.

RESOLVED

(1)  to note:

(i)  the Capital and Revenue Budgets for 2015/2016;

(ii)  the outline Capital and Revenue Budgets for 2016/2017 and 2017/2018;

(2)  to recommend that the full Fire Authority, subject to more in-depth complete and longer term information being available, including from Central Government, consider the following two funding options for the Service;

(i)  a zero increase in Council Tax;

(ii)  an increase in Council Tax below the referendum ceiling.

Report of Treasurer

Report of Chief Fire Officer

TO CONSIDER EXCLUDING THE PUBLIC FROM THE MEETING DURING CONSIDERATION OF THE REMAINING ITEMS IN ACCORDANCE WITH SECTION 100A(4) OF THE LOCAL GOVERNMENT ACT 1972 ON THE BASIS THAT, HAVING REGARD TO ALL THE CIRCUMSTANCES, THE PUBLIC INTEREST IN MAINTAINING THE EXEMPTION OUTWEIGHS THE PUBLIC INTEREST IN DISCLOSING THE INFORMATION

Report of Chief Fire Officer

Report of Chief Fire Officer