North Ayrshire Council agrees budget for 2011/12
North Ayrshire Council has agreed an overall budget of almost £440 million for the forthcoming financial year (2011/12).
The package agreed by the full Council today includes £8.9m worth of General Services Revenue efficiency savings over the year along with new investment of:
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£250,000 in creating 46 new Modern Apprenticeships
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£175,000 in introducing a living wage minimum of £7.15 per hour for the lowest paid Council workers
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£475,000 in Economic Development, and
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£642,000 in Kilwinning Sports Club
Efficiency savings agreed for the coming year include a restructure of school management; personalisation of care for people with disabilities; a review of Council services and facilities and a reduction in staffing levels.
The Council faced a shortfall in funding of £7.4m in its 2011/12 revenue budget due to a range of factors, including a reduced financial settlement from the Scottish Government and an increasing demand for services.
Councillors were presented with a range of efficiency options totalling £9.589m for next year and agreed to accept £8.9 million of those.
The efficiency options rejected by the Council for next year included the removal of free school milk at a cost of £129,000. The Council also agreed to delay by one year the savings associated with the proposed review of Community Halls and the re-structure of the Council's Libraries in order to allow Elected Members to consider full proposals for these.
Council Leader David O'Neill said: "The budgets agreed today will allow the Council to continue to address our key priorities of regenerating communities and increasing employment; protecting vulnerable people and improving educational attainment while ensuring that we operate more efficiently and effectively.
"This has been the single most difficult budget process since North Ayrshire Council was formed in 1995. No-one should doubt that there is a lot of pain in this budget but we have sought to minimise the negative impact on North Ayrshire communities."
Elected Members also agreed to examine the Council's General Services Capital programme over the coming two years. Council officers have been asked to investigate the possibility of introducing further projects in the coming year to make use of a projected £2.2m capital underspend for 2011/12.
The Council heard however that the projected overspend in the capital programme for the following year - 2012/13 - is £5.3 million. Officers have therefore been instructed to review the costs of replacing the Magnum Leisure Centre with a view to addressing the overspend. They have also been asked to examine alternative forms of procurement and funding for the project.
The Council also agreed to increase rents by 5.5% for the next four years in order to finance a significant investment in future council house building and to improve standards in the existing housing stock. The Council plan to build 500 new houses over the next 10 years, creating a further 50 new Modern Apprenticeships in the process.
The Council's overall budget for the forthcoming financial year (2011/12) is £438.5 million. This comprises:
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£341 million of General Services Revenue budget
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£46.5 million of Housing Revenue Account Budget
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£29.5 million of Housing Revenue Account Capital Programme
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£22.5 million General Services Capital Programme