G - 1

PAPER G

Purpose: For Decision




Committee EXECUTIVE 9 SEPTEMBER 2014
FULL COUNCIL 17 SEPTEMBER 2014

Title BUDGET REVIEW

Report of LEADER OF THE COUNCIL AND THE EXECUTIVE MEMBER
FOR RESOURCES AND PFI


EXECUTIVE SUMMARY

1. As part of the Medium-Term Budget Strategy process, a mid-year budget review is
undertaken and a report is made to Full Council each September to provide an
update on the Councils financial position. This takes into account the previous
financial years outturn, the current years delivery of savings and budget monitoring
position, along with the projected budget position for the next and future financial
years.

2. In the context of this latest overall budget and financial position, and the development
of the new administrations priorities, the report sets out the broad framework for
achieving an updated Medium-Term Financial and Budget Strategy for 2015/16 and
future years.

OUTCOMES

3. To understand the overall financial position facing the Council and to agree the
overall framework for achieving an updated Medium-Term Financial and Budget
Strategy for 2015/16 and future years.

BACKGROUND

4. The Council set the 2014/15 Budget and Capital Programme at its meeting on 26
February 2014. In overall terms it was estimated that over the three financial years
2014/15 2016/17 there was a revenue budget gap of some 28m. A Budget
Strategy was agreed that sought to direct resources to the Councils priorities as set
out in the Vision and Corporate plan and an overall financial savings plan was
developed to achieve the necessary savings to deliver balanced budgets over the
three financial years.

STRATEGIC CONTEXT

5. The vision and priorities as agreed as part of the budget report were set out in the
Councils formal Corporate Plan and agreed at Full Council on 19 March 2014. This
Plan set out the outcomes to be delivered by May 2017.

G - 2



BUDGET REVIEW

6. This Budget Review takes into account a number of considerations that come
together to inform the Councils overall financial position and how the Council can
deal with it. These are:

The outturn position for 2013/14.
The delivery of the 2014/15 Budget.
The projected resources and need to spend position for 2015/16.
The longer term impact of Government proposals on Local Government
funding for 2016/17 and beyond.

2013/14 Outturn

7. Details of the revenue outturn position for 2013/14 were reported to the Audit
Committee on 26 J une 2014. After applying the full amount of year end carry forward
adjustments the overall net expenditure was 992,710 lower than anticipated in the
revised budget.

8. This represents a very positive outcome for the council based on a net revenue
budget of 132.2m. It is a particularly good result when considering the fact that the
council had to achieve net savings of 8.8m during the year following reductions in
Government funding whilst allowing continued investment in key priorities, in
particular childrens services, and managing demographic pressures. Strong financial
management and control measures in place across all service areas, including the
Authorisation Panel, Service and Budget Review Steering Group and Procurement
Board have all contributed to the achievement of a net saving at the year end.

9. Within this net position there was a net overspend of 2.871m on children and
families, mainly arising from the need for service improvement following the results of
the Ofsted inspection and arising from increased costs in childrens placements,
fostering and agency staff costs; a net overspend of 428k on education and
inclusion arising from pressures in special and alternative education and the music
service; and a net overspend of 762k on the community care budget arising from
residential care placements. These overspends were offset by a range of savings
across council services including capital financing costs, vacancy management,
support services and service budget savings.

Delivery of the 2014/15 Budget

10. The budget strategy for 2014/15 approved by Full Council on 26 February 2014
identified total savings to be achieved of 5.922m. Monthly monitoring reports are
considered by the Service and Budget Review Steering Group at each of its
meetings. The position as at 31 J uly 2014 indicates that 3.6m of savings have been
delivered with a further 2.0m projected to be achieved by the year end. It is currently
forecast that some 100k is unlikely to be achieved on car park income and 175k
will not to be achieved on residential care and reablement due to demographic
pressures, in particular increasing levels of need amongst the very elderly population
(aged 85+).

G - 3

11. In addition to the core savings of 5.922m provision was made in the revenue budget
to implement 2015/16 savings early thus delivering an extra 1.429m saving in
2014/15. At the Council budget meeting on 26 February 2014 a number of
amendments were made to the savings that would be delivered in 2014/15 deferring
a number of them. The opportunity to bring forward savings from 2015/16 is limited
and therefore it is proposed that the net savings from the 2013/14 outturn of
992,710 be used to partly offset the target saving of 1.429m. This proposal was
endorsed by the Scrutiny Committee budget task and finish group, by the Scrutiny
Committee on 3 J uly 2014 and by the Audit Committee on 26 J une 2014.

12. This approach would leave some 436k to find in year. It is proposed that this is met
from additional vacancy savings arising from voluntary redundancies and from further
restructuring flowing from moving to a more cost effective operating model.

13. In relation to the base budget, however, there are a number of emerging pressures
that are currently forecast to lead to an overspend at the year-end if action is not
taken to address the issue where it is possible to do so. These relate mainly to car
parking income, concessionary fares, waste contract, residential care, Wightcare
income targets and aspects of the highways pfi budget, principally a shortfall in third
party income and the cost of traffic management at events not within the scope of the
contract.

14. In addition there is a major pressure on Childrens safeguarding where the volume of
cases continues to increase and the current staffing levels are insufficient to manage
effectively and keep children safe. A number of options have been explored but to
maintain the significant improvement already achieved and to ensure that cases are
dealt with appropriately an additional children in need team has been established and
is being recruited to. Without this then it is likely that alternative remedial action
would be required that would be even more costly but less effective. This is
estimated to cost some 150k in 2014/15 and 320k in 2015/16, but it is anticipated
the cost will be accommodated within the overall childrens services budget.

15. These costs are offset to some extent by savings elsewhere but the net position at 31
J uly 2014 shows a projected overspend of 1.8m pending remedial action.

16. The total re-profiled capital budget for 2014/15 is currently 23.4m, including projects
slipped from 2013/14. The spend position at 31 J uly 2014 shows net spend of 2.4m
against a forecast of 3.0m, the main shortfall being in schools budgets where
expenditure has been committed and works will be completed during the school
holidays. Within the programme there is a capital contingency budget of 1.9m and
to date 1.1m has been allocated to projects, mainly specific issues requiring funding
as a result of the adverse weather conditions during the winter, leaving 800k
unallocated. The capital contingency budget is the subject of a separate report to the
Executive.

17. It should be appreciated that it is still very early in the financial year and there are a
range of issues and pressures that could arise and adversely impact on individual
budget areas such as an increase in need for statutory services, concessionary
fares, income shortfalls and general service pressures. There are also likely to be
additional savings that may offset these particularly through continued tight budget
and financial control being exercised.

G - 4

18. At this stage, after four months of the financial year we are still projecting to not
overspend the budget in 2014/15 in overall terms.

2015/16 Budget

19. The Local Government Finance Settlements that followed the 2010 Comprehensive
Spending Review set out the grants that the Council would receive in the four
financial years 2011/12 to 2014/15. In overall terms these reflected an on-going net
reduction in grants of some 27m per annum. For 2015/16 the provisional figures
announced in J anuary 2014 indicated a further net loss of grant (after allowing for
new homes bonus, heath transfer and Education Support Grant) of some 6.3m.With
a further projected loss in 2015/16 of 3.2m this gives a total reduction in grant on an
on-going basis over the six financial years 2011/12 2016/17 of 36.5m.

20. It is clear that future Finance Settlements, regardless of the outcome from the
General Election in 2015, will deliver further grant reductions even after 2016/17.

21. The Council therefore faces a significant financial challenge over the life of this
Council and in agreeing a budget for 2015/16 it needs to have due regard to the
position in 2016/17 and future years.

22. In considering the actual budget position there are a number of key factors to take
into account :-

Changing spending pressures and contractual and inflationary cost
increases
Capital spend requirements to meet essential capital projects
Government grant reductions
Income collection and generation
Council Tax increase
Ability to increase local resources through additional business rates

23. The key budget assumptions on these elements are set out in Appendix A together
with the resultant overall projected budget position that arises. This indicates a
revenue budget gap of 13.5m in 2015/16 and a further 8.5m in 2016/17.

24. The Budget Strategy agreed at Full Council in February 2014 set out a number of
potential savings targets for 2015/16 and 2016/17. The actual savings options and
resource allocation options are being worked up by the budget options target groups.

25. Because of the scale of the savings required a significant element of the savings was
earmarked for Adult Social Care through managing demand and growth in services;
management and support functions through a significant reduction in staffing and
activity and capital financing costs. Work is ongoing in relation to how these savings
can be delivered but they will not be easily achieved particularly bearing in mind the
budget pressures in Adult Social Care and income budgets already arising in the
current financial year.

26. Even if these areas deliver savings there is a significant level of savings that have yet
to be identified and to meet the projected budget gap in 2015/16 of 13.5m very
difficult decisions will need to be made.


G - 5


OVERALL BUDGET STRATEGY

27. It is clear from the above that whatever the actual figures turn out to be that the
Council faces a very significant financial challenge. The figures are by no means the
worst case scenario. The ability of the Council to increase its resources is extremely
limited and the net increased cost figure could also be optimistic and assumes that
interest rates will remain low, budgeted income levels will be achieved and pay
awards and general inflation will be absorbed by services.

28. With constraints on council tax increases, either through freezes or the government
imposed cap on increases at 2% and above, council tax income each year does not
cover basic cost increases let alone demographic and service pressures. In addition
the new business rates retention scheme makes no provision for increased need to
spend and the business rates share and top up grant is fixed by government.

29. This means that the current level of services and activities are unaffordable and
significant reductions will need to be made.

Developing the Corporate Plan and Resource Allocation

30. The Corporate Plan agreed at Full Council on 19 March set out the Vision and
Priorities of the Council over the life of this Council and the outcomes and the end
position that is being sought by May 2017. The Budget Strategy seeks to direct
resources to the priorities and the achievement of the Vision whilst delivering the
organisational and service delivery change required that will enable the required
savings to be made to meet the budget gaps.

31. The Service and Budget Review Steering Group, which comprises the Executive
members,
Chair and Vice Chair of Scrutiny meets regularly with senior officers to monitor the
achievement of savings, the 2014/15 budget and the Corporate Plan as well as the
development of the budget strategy for 2015/16 and future years.

32. In respect of the development of the 2015/16 budget options a number of Budget
Option Target Groups were set up covering the seven priorities within the Corporate
Plan as well as an overarching Budget Strategy Group. Each Group is led by the
relevant Executive member and includes other executive members as well. The
Chair of Scrutiny sits on the overarching Budget Strategy Group and the one
covering delivering statutory duties and VFM and working in partnership.

33. The objectives of the groups are to produce by 30 September 2014:-

Updated outcomes for the Corporate Plan set out in priority order
Budget option choices against resource allocation targets

34. To do this each group is considering current policies and strategies, relevant financial
and service data, benchmarking and outputs from root and branch reviews. In
arriving at what the updated outcomes for the Corporate Plan and the budget choices
should be particular attention is being focused on statutory duties, where the Council
can best add value to the outcomes for the Island, innovation and opportunities for
change and different delivery models.

G - 6

35. The overarching Budget Strategy Group will be considering cross-cutting issues,
developing the future operating model for the Council and overseeing the
organisational change programme.

36. The Broad Budget Timetable is set out in Appendix B.

Organisational Change

37. Of particular importance in meeting the financial challenge and delivering lawfully
balanced budgets is recognising that the Council will need to be significantly different
than it is now in what it does and how it does it and decisions will have to be made
that deliver this change. The key elements of this change are that the Council needs
to:-

move much further to being a commissioning council rather than a
provider of services by developing different delivery models and an overall
Council operating model that supports this approach

work in partnership to deliver outcomes for the island that the Council can
no longer afford to do by itself and to enable the opportunities of the social
capital of the Island to be fully utilised

agree an affordable and deliverable Vision and Corporate Plan together
with the allocation of ever diminishing resources it has to the priorities and
outcomes set out

manage expectations and recognise that there is not the capacity,
capability or financial resources in the Council to deliver what is currently
expected

understand that by setting out priorities and resource allocation that
inevitably decisions will have to be made to stop and reduce services that
are of a less priority and unaffordable

recognise that time is running out and that to achieve a lawfully balanced
budget for 2015/16 it is necessary to identify savings options early enough
to undertake any necessary consultation and preparations to enable
changes to be implemented in time.

Reserves and Balances

38. As part of the Budget Strategy, following amendments agreed at the budget setting
Council on 26 February 2014, 5.594m of general fund balances and reserves are to
be used as follows:-









G - 7


2014/15 k 2015/16 k Total k
Per Council Budget Report 26/2/14
3,520

2,294

5,814
Amendments agreed at meeting
Chain Ferry 100 400*
Beach Safety 20 40*
School Crossing patrols 46 92*
Lord Lieutenant 25 25*
Empty properties Officer 37 37*
228 594
Council tax increase 521 521 521
Net change in use of balances -293 +73 -220
Revised Use 3,227 2367 5,594
*Decisions have yet to be made in respect of 2015/16.

39. Prior to these amendments at Council the Budget had already made provision for
150k in respect of apprenticeships and removal of savings on blue badge parking
concessions 30k; Pay and display 70k and a reduction in the savings on
environmental officers of 50k. A total of 300k. This resulted in a higher level of
general fund balances and reserves being used above the 5m originally
recommended.

40. General fund balances are not linked to any specific liability or risk but are held as a
contingency against overall overspends and unforeseen budget pressures. It is felt
prudent to maintain at least 5m in general fund balances at the very minimum. At 31
March 2015 it is projected that there will be 7.3m in the general fund.

41. A number of reserves and provisions are also held against specific risks and
liabilities. These were reviewed by an Overview and Scrutiny Committee task group
on reserves and balances in early 2014 and they recommended use for the budget
strategy for 2014/15 and 2015/16 of 5m. In the end the use of reserves and
balances to assist the budget strategy on a one-off basis is currently forecast to be
5.594m.

42. A projection of reserves and balances available at 31 March 2015 together with the
risks and liabilities that they are held against is set out in Appendix C. The appendix
analyses reserves and balances between general reserves, which are available to
assist the budget strategy where it is prudent to do so, and specific reserves and
provisions which are retained for specific purposes. In particular members will see an
increase each year in the highways pfi cashflow reserve. This amount represents a
surplus in the early years of the project, generated as a result of the councils
contribution and the government grant exceeding the amount paid to Island Roads.
However the contract includes a requirement to make a payment of 30m to Island
Roads as a capital contribution in year 7 of the contract, and the councils reserve is
set aside to facilitate that payment.

G - 8

43. Another issue to address in terms of the overall management of reserves and
balances is with specific regard to the Teachers Redundancy Fund. Despite the
council having little control over decisions to make teachers redundant, with ongoing
pension implications, the legislation states that in a situation where there are falling
school rolls the local authority is responsible for the redundancy and ongoing pension
costs rather than charging such costs to the schools budget. The costs of teachers
redundancy and pension costs in the current financial year exceeds 500k, and
whilst that amount can be met from the amount set aside in the Teachers
Redundancy Fund in the current financial year there will be nothing left in the fund to
meet similar costs in future years. As a result it is considered prudent to transfer an
appropriate amount from the General Redundancy Fund to the Teachers
Redundancy Fund to allow such costs to be met in future. It is anticipated that this
will not be an ongoing issue and that the requirement will reduce as school rolls
stabilise in future years.

44. There is some further limited scope to use balances for pump- priming change, invest
to save initiatives, supporting the budget strategy to enable planned savings to be
made or making one-off investment in developing priorities particularly where this
reduces future revenue costs. They are only a one off resource and once spent they
are no longer available.

PROPOSED WAY FORWARD

45. It would be wrong to consider 2015/16 in isolation from 2016/17 and future years,
given the significant grant reductions that will be faced.

46. For certain savings proposals there will need to be consultation and a lead in time for
implementation. To get full year savings from 1 April 2015 will require early
consideration of options.

47. The Budget Option Target Groups will provide a basis for updating the Corporate
Plan and prioritising the outcomes flowing from it and will provide initial budget
options against resource allocation targets. The Overarching Budget Strategy Group
and the Service and Budget Review Steering Group will be considering the outcomes
from these in October /November 2014 with a view to having a broad budget for
2015/16 by early J anuary 2015.

48. This work include:

Examining all opportunities for funding services through new or increased
fees and charges where it is appropriate to do so
Examining opportunities for adopting a more commercial approach to the
provision of council services where it is appropriate to do so
Identify absolute statutory duties and highlight areas where statutory services
can be delivered differently at less cost and identify all areas of discretionary
services that are no longer affordable and need to be delivered at nil cost,
transferred to other providers or ceased
Engaging town and parish councils and local community groups at an early
stage with proposals to transfer services to local control, particularly those
where the service benefit is more local in nature rather than Island wide e.g.
public conveniences

G - 9

49. Bearing in mind the timescales involved to agree and implement budget options it is
necessary to work up a number of public consultation exercises related to potential
service changes particularly where there is a statutory requirement to consult and to
avoid judicial review. This work needs to commence now.

50. It needs to be recognised that to meet a savings target of some 13.5m in 2015/16
will require looking at all services and options. The 13.5m needs to be contrasted
with 2014/15 where only 5.772m of real savings was budgeted and the budget
monitoring position at J uly is showing a projected overspend of 1.8m.

51. As well as developing savings plans for back office support services, and making
some services such as leisure centres cost neutral some major front line service
areas will require looking at different options and this will include:

Adult Social Care
Fire and Rescue Service
Supporting People
Planning services
Regulatory services
Enforcement activity
Libraries
Public Toilets
Public Realm
Discretionary elements of concessionary fares and subsidised buses

CONSULTATION

52. During October 2013 seven budget engagement events were held at venues across
the Island and an on-line survey was also undertaken. A number of budget
consultation focus groups were also held in December with a range of stakeholders.

53. As part of the root and branch review process a council-wide on-line staff survey was
undertaken as well as a number of staff focus groups.

54. A summary of the outcomes from these were published on the councils web site

55. The scrutiny committee is focusing on the budget as part of their work, and has a
budget task and finish group to consider specific issues. The chair and vice-chair of
the scrutiny committee sit on the service and budget review steering group.

56. For this year it is intended to arrange targeted focus groups, Island-wide events and
online surveys for late October and November to involve residents, business,
voluntary sector, other organisations and staff in a conversation about the councils
priorities and resource allocation. This will be a real opportunity to help shape what
the council does with the resources it has to meet its statutory duties, as well as
areas to invest in that will have the biggest gain for the Island, its residents
,businesses and visitors.

57. All consultation responses will be used to update the equality impact assessments
and the outcomes will be taken into account in making final decisions.

58. There is continuing consultation with staff and unions on the overall budget.
Depending on the savings options developed and agreed for implementation there
G - 10

will need to be appropriate consultation with stakeholders, staff and unions. Those
savings that relate to staffing may result in redundancies and will require issuing a
further formal statutory HR1 notification.

59. Specific consultation exercises are being worked up in respect of potential service
changes arising from the budget options being developed and these will be
implemented as required.

FINANCIAL / BUDGET IMPLICATIONS

60. This report is entirely about the overall financial and budgetary position of the
Council and updates the financial and budget issues that the Council is now facing
following the outturn position for 2013/14, the first four months performance in
2014/15 and the projected resources position for 2015/16 and future years.

61. The budget gap relates to the revenue position of the Council .For capital spend
those costs not able to be met from government grants or capital receipts have to
be met from borrowing. The borrowing costs have to then be provided in the
revenue budget.

62. The Council faces a significant level of reduction in the resources that it will have
available to fund services. The level of grant reductions from government is
significant each and every year for the foreseeable future. The current level of
service delivery and the activities it undertakes is not affordable and therefore
budget options must be developed to deal with this position.

LEGAL IMPLICATIONS

63. The Council will need to set a lawful and balanced budget and Council Tax level for
2015/16 at the Council meeting on 25 February 2015. In developing any proposals
the necessary equality impact assessments and consultation processes will need to
be followed, and consultation responses will be taken into account before any
decisions are taken.

64. The ability to implement savings that deliver a full year effect in 2015/16 is dependent
on undertaking the necessary statutory processes and consultation within a
timescale that enables savings proposals to be implemented with some effect from 1
April 2015. It is therefore necessary now to identify any areas that are likely to be the
subject of savings proposals so that they can be properly worked up to allow for a full
year effect in 2015/16.

PROPERTY IMPLICATIONS

65. There are no specific property implications of this report but the ability to support the
capital programme is dependant in part on the ability to dispose of surplus assets
and generate capital receipts from the sale of assets. The delivery of the strategic
asset management strategy is also essential in driving the Councils on-going
revenue costs down.

EQUALITY AND DIVERSITY

66. The Council has to comply with Section 149 of the Equality Act 2010. This provides
that decision makers must have due regard to the elimination of discrimination,
G - 11

victimisation and harassment, advancing equalities, and fostering good relations
between different groups (race, disability, gender, age, sexual orientation, gender
reassignment, religion/belief and marriage/civil partnership). Equality impact
assessments will be completed in respect of relevant proposals as part of the
decision making process to enable members to take into account and if necessary
mitigate the impacts as part of the decision making process. An updated Equalities
Impact Assessment on the overall Medium-Term Financial Strategy will be completed
for the budget considerations in February 2015.

OPTIONS

67. In relation to developing the approach to the 2015/16 Budget there are three main
options:

(i) To agree the overall approach and strategy as set out in this report as the
basis for developing the Budget Strategy for 2015/16 and the Medium-Term
Financial Strategy. i.e.

(a) The overall approach to developing the Corporate Plan and resource
allocation set out in paragraphs 30 -36.

(b) The overall direction for organisational change set out in paragraphs 37.

(c) To undertake focus groups, Island-wide events and online surveys for late
October and November to involve residents, business, voluntary sector,
other organisations and staff in a conversation about the councils priorities
and resource allocation.

(d) To undertake specific consultation exercises arising from the budget
options being developed by the budget target groups.


(ii) To identify and agree any specific further areas that should be worked up for
consideration in the budget decisions in February 2015 and consult with
residents / stakeholders as appropriate and to develop relevant Equality
Impact Assessments.

(iii) To not agree the overall approach and strategy as set out in this report and
ask that an alternative version be developed for consideration by members in
due course.

EVALUATION

68. For 2015/16 and beyond the council faces a significant financial challenge and it is
essential that budget options for dealing with these are developed in a timescale that
enables effective implementation. This needs to include options that reflect the longer
term financial position not just for 2015/16.Option (iii) is not recommended as it
delays any action and risks not achieving required budget options within the
timetable required. Option (i) is recommended together with any additional areas
under option (ii)



G - 12

RISK MANAGEMENT

69. Currently interest rates are low and no new long-term external borrowing has taken
place since J anuary 2005. This has led to significant one-off savings on capital
financing costs. The Councils reserves and surplus cash flow is used instead of
long-term borrowing. If this was invested short term the interest earned would be very
low some 0.5% whereas the long-term rates would be in excess of 4%. Ultimately
when longer-term borrowing and/or interest rates rise then additional revenue costs
of 2m+per annum may need to be met.

70. The key risks of the 2015/16 Budget Strategy relate to budget pressures being even
higher than anticipated, government grant reductions being even higher, savings
and efficiencies not being achieved, proposed income levels not being achieved
and inflation being higher than expected. These risks are contained in the strategic
risk register.

71. If full year effect of savings are to be achieved in 2015/16 then savings options need
to be developed and agreed within timescales that enable appropriate consultation
and consideration of equality impact assessments to take place.

72. It is considered that General Fund balances of at least 5m need to be maintained
on top of earmarked reserves to provide a sustainable position which protects the
financial health of the Council in the medium-term. Savings implementation plans
have been adopted and are rigorously monitored through Service Boards and the
performance management framework. The Budget and Service Review Steering
Group consider the overall budget monitoring position at each of its meetings.

73. The first four months budget monitor indicates that the overall budget could
overspend by 1.8m in 2014.15.This would make the position in 2015/16 even
worse.

74. For 2015/16 and future years it is essential that the Council identifies the necessary
measures to deliver a lawful, balanced and sustainable budget. Proposals need to
be developed so that the necessary decision-making processes can be followed.



G - 13

75 RECOMMENDATIONS

That the EXECUTIVE considers the overall financial position of the Council set out in
the report and agrees :-

(e) The overall approach to developing the Corporate Plan and resource
allocation set out in paragraphs 30 36.

(f) The overall direction for organisational change set out in paragraphs 37.

(g) To undertake focus groups, Island-wide events and online surveys for late
October and November to involve residents, business, voluntary sector,
other organisations and staff in a conversation about the councils priorities
and resource allocation.

(h) To undertake specific consultation exercises arising from the budget
options being developed by the budget target groups

That COUNCIL considers the overall financial position of the Council set out in the
report and the recommendations of the Executive and agrees:

(a) The overall approach to developing the Corporate Plan and resource
allocation set out in paragraphs 30 36.

(b) The overall direction for organisational change set out in paragraphs 37.

(c) To undertake focus groups, Island-wide events and online surveys for late
October and November to involve residents, business, voluntary sector,
other organisations and staff in a conversation about the councils priorities
and resource allocation.

(d) To undertake specific consultation exercises arising from the budget
options being developed by the budget target groups

APPENDICES ATTACHED

APPENDIX A - projected budget gaps 2015/16 to 2016/17
APPENDIX B - outline budget timetable
APPENDIX C - reserves and balances

Contact Point: David Burbage Managing Director & Strategic Director of Resources
01983 823606 e-mail david.burbage@iow.gov.uk

DAVID BURBAGE
Managing Director
STUART FRASER
Head of Finance and S151 Officer

CLLR IAN STEPHENS
Leader of the Council
CLLR J ON GILBEY
Cabinet Member for Resources and PFI