Agenda item

            (Mrs. J. Thompson, Director of Finance and Resources, attended in connection with this item.)

            The Committee considered a report, which had been prepared by the Director of Finance and Resources, in respect of the estimates of revenue expenditure for the year 2011/2012.  A copy of that section of the report, in so far as it applied specifically to the Development Committee, is set out hereunder:

“11.     A spending limit of £19,783,734 is recommended for the Development Committee which represents an decrease of £427,386 or 2.11% on 2010/11. The main items of expenditure are outlined in the attached Appendix and a summary of some of the proposed priority actions for the Committee,

            which will be funded by the 2011/12 estimates has been circulated to Members. The key drivers to the Departmental Estimates are:

            Uncontrollable costs

o        Superannuation – this cost has been increasing over the past number of years. The estimate for 2011/12 sees an increase of the employer’s contribution from 17% to 18% which amounts to £48.5k.

o        Employee costs – the increase of £72k represents increments due to movement on scale points and the assumed increase of £250 for staff earning less than £21k (subject to national negotiation).

Councilwide Savings – the savings of £418,920 were identified by the Department for its 2011/12 efficiency programme.

Departmental Savings – during the rate setting exercise further savings of £129k were identified through the departmental income maximisation and cost reduction programmes and these are incorporated within the 2011/12 estimates.

            Community Services continues to work with community groups, organisations and citizens to build community capacity and to offer front line services and advice to the community sector. Continued alignment of budgets to actual costs incurred and in service efficiencies have meant that the budget for 2011/12 has been reduced by £13k despite certain uncontrollable increases in areas such as employee and utility costs.

            During 2011/12 both the Waterfront and Ulster Halls will continue to provide world class entertainment and conference facilities that will help promote the cultural and economic regeneration of Belfast and so contribute to the economic benefit of not only the City but the region as a whole. Together with the City Events Unit, this service has decreased the budget by £51k.

            The Economic Initiatives budget has been reduced by £168k. The departmental budget reviews including the efficiency and the income maximisation and cost reduction programmes have been able to identify savings which enable the inclusion of the new Local Tourism Destinations project (£120k) whilst still providing the reduction of £168k. The Tourism, Culture & Arts Unit programme reflects priorities

            identified through the Belfast Integrated Strategic Tourism Framework which has been developed in partnership with the NI Tourist Board and through the Integrated Cultural Strategy, which has been developed in partnership with the Arts Council NI. Reductions of £141k were implemented from the efficiency programme and included the removal of fixed term posts, reduction of travel budgets and reductions in consultancy through carrying out more work internally. A further reduction was also enabled through the additional income from both Markets and Tourism. These reductions will not impact on the delivery of the Economic Initiatives service plan, nor impact on the funding of any existing programmes.

            The budget for Directorate is reduced by £195k. This is also due to departmental budget reviews which aligned budget to actual spend and the incorporation of efficiencies. These savings are incorporated into the Policy, SNAP, European, City Development and Directorate Units without adverse effect on the activity planned for 2011/12.

            Work is ongoing on a communication statement on key messages for the rates announcement which will be discussed further at the Strategic Policy and Resources meeting on 21 January.

            Recommendation

The Committee is requested to note the contents of the report and agree the cash limit for the Development Committee for 2011/2012 as £19,783,734.”

            The Director of Finance and Resources outlined the factors which had been taken into consideration in the preparation of the estimates and highlighted the costs which had contributed to a Departmental decrease of 2.11% from the previous year.  She informed the Members that on 7th January the Strategic Policy and Resources Committee had agreed that the cash limit for the Development Committee should be £19,783,734. She then answered questions which were put to her by the Members.

             Following further discussion, the Committee agreed unanimously that its cash limit for the 2011/2012 financial year be £19,783,734 and approved the allocation of resources as set out in the undernoted Appendix: