Agenda item

            (Mr. T. Salmon, Director of Corporate Services, attended in connection with this item.)

            The Committee considered a report which had been prepared by the Director of Corporate Services in respect of the estimates of revenue expenditure for the year 2009/2010.  A copy of that section of the report, in so far as it applies specifically to the Development Committee, is set out hereunder:

      “A spending limit of £24,226,210 is recommended for the Development Department in respect of the financial year 2009/10.  Excluding capital charges of £1,326,950 this represents an increase of £429,760 or 1.91% over last year.

      The main budgetary intentions of the Department for 2009/10 are set out below:

      The Department’s increased budget of £429,760 provides for increased employer’s superannuation and utility costs of £75,180 and £207,470 respectively.

      The Department will also incur increased costs with the opening of the Ulster Hall  and the new funding arrangements with DETI for Local Economic Development.

      The Ulster Hall will be fully operational in 2009/10. This will increase the Department’s expenditure by £751,150 but will be mostly offset with income of £574,300.

      The first phase of the European Development Funding for Local Economic Development is complete. Under this arrangement 50% funding was from the European Union through DETI with the remaining 50% funding being provided by the Council. Under the new programme, with the change in priority areas, it is anticipated that income from DETI will fall to 40% leaving the Council bearing 60% of the cost of the programme. This funding change will result in additional costs of £180,000 in 2009/10 and may lead to further additional costs in subsequent years. 

      Members will recall that a budget of £400,000 was included in the 2008/09 estimates to support the Tall Ships event. A budget of £200,000 has been included in the 2009/10 estimates resulting in a reduction of £200,000.

      Approval was also granted in 2008/09 to support the World Irish Dancing Championships. This budget will not be required in 2009/10 resulting in cost reductions of £100,000.

      Costs associated with Interreg and BERI projects of £59,660 and £66,780 respectively have not been included in this year’s estimate. These three year European funded projects, aimed at promoting best practice across Europe, are now complete.

      Cost reductions have also been made in the Policy and Research Unit. As a result of work carried out by Business Improvement, the Policy and Research Unit is now structured to allow much of its work to be carried out internally. This will reduce it’s reliance on external consultants and as a result savings of £60,940 have been included in the 2009/10 estimates.

      The Department will make a contribution of £163,840 to the efficiency programme in 2009/10.  Efficiency savings will be made as follows:

      Departmental efficiencies will be made in employee costs as a result of reviews carried out by Business Improvement Section.

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      Belfast City Council like all other Local Authorities across the country is faced with the constant pressure of balancing increasing demands against ever decreasing resources and 2009/2010 will be no exception.

      A major effort has been made by all concerned to ensure that the estimates presented are meaningful, realistic and correlate closely with the key tasks and activities within the Corporate Plan.

      On February 2009 the estimates of the various Council Departments and Committees will be approved and adopted.  In due course a full copy of the Corporate Plan incorporating a summary of the financial information will be distributed to each Member of Council.

      My thanks are due to all for the continued co-operation and assistance which I have received over the past months in what has been a long and exhausting exercise to compile the Revenue Estimates.

DECISIONS REQUIRED:

1.   To approve the Cash Limits for the Development Committee for the year commencing 1st April 2009 – Appendix 1.1.

DEVELOPMENT DEPARTMENT

REVENUE ESTIMATES 2009/2010

DEVELOPMENT DEPARTMENT

MAIN ITEMS OF ESTIMATED EXPENDITURE 2009/2010

            The Director of Corporate Services outlined the factors which had been taken into consideration in the preparation of the estimates and highlighted the costs across a number of areas which had contributed to a Departmental increase of 1.91% from the previous year.  He informed the Committee that on 9th January the Strategic Policy and Resources Committee, when it had been considering the cash limits for all of the Council’s Committees had agreed, inter alia, that each of the Departmental estimates be examined in order to identify any further cost savings, together with their subsequent consequences, and that briefings be held for each of the Party Groupings on the Council in relation to the revenue estimates 2009/2010.

            The Director of Development informed the Committee that the Development Department’s estimates, compared to previous years, contained significantly less amounts towards the costs associated with overtime, staff training and attendance at conferences and that, following the Strategic Policy and Resources Committee decision, other areas of expenditure had been examined with a view to identifying further savings.  This work had ascertained that two items could be removed from the Departmental Plan which would result in savings of £310,000 and result in the Committee’s estimates increasing by 0.5%, rather then 1.91% from the previous year.  These were as undernoted:

(i)   the event held on New Year’s Eve which, at a cost of £250,000, offered poor value for money and meant that the Council was competing with the private sector on that date; and

(ii)  the proposal to organise street markets, at a cost of £60,000, which, in the current economic climate, could adversely affect St George’s Market and the independent retail sector in the City.

            Following a lengthy discussion, the Committee agreed not to hold a New Year’s Eve event in 2009 and that no work be undertaken in connection with street markets in the financial year 2009/2010, which would result in savings of £310,000.  In addition, the Committee noted that the Strategic Policy and Resources Committee, at its meeting on 23rd January, would be deciding the Committee’s cash limits for the 2009/2010 financial year.