York Council Tax grant settlement announced

Council Tax levels set to be frozen

The York Council has fared relatively well in the grant settlement announced today.

The Councils “spending power” will fall by only 0.1% against a national average of 1.8%.

The “spending power” figure combines regular central government funding with one-off grants and things like Council Tax, a proportion of business rates and other fees and charges.

The government has also confirmed that it will underwrite the costs of freezing Council Tax levels. The new Labour leadership have promised to accept the offer of support unlike their predecessors who hiked up Council Tax rates unnecessarily.

York Council heading for £1.3 million overspend?

A report being considered next week suggests that the York Council could over spend its budget this year by £1.3 million.

Coppergate – York Council failure, to win appeal against unlawful fines issue, could plunge it into a financial crisis

The – much delayed – half year report does not include any deficit which may arise from outstanding issues on the Coppergate/Lendal bridge fine refund policy.

Other areas of concern identified in the report include

Waste There is a forecast overspend of £98k due to lower than budgeted income from commercial waste, £100k shortfall in income from garden waste subscription, £100k due to the forecast shortfall in dividend from Yorwaste and £233k pressure at Household Waste and Recycling Centres primarily due to lower than expected income from charges
Car Parking There is a continued shortfall from parking income (£408k) and “ongoing monitoring will be required to assess the impact of the current parking initiatives, including the charges for Minster Badges, the free parking introduced in late June and pay-on-exit at Marygate”.
Social Care There is a significant projected overspend of £864k within the Elderly Persons Homes budgets.

A separate report identifies problems with the Councils capital investment programme.

Failure to move ahead with the reuse of the Guildhall means that £350,000 of “critical” repairs will now be needed.

And a major problem is arising with the Councils existing Elderly Persons Homes. These were supposed to have closed by now having been replaced by the new care village at Lowfields. But that project is 3 years behind schedule and the existing buildings will need to be patched up at a cost of £500,000!

**The report ominously warns “existing EPH’s are currently in need of renovation, some aspects of which are threatening their ability to pass Care Quality Commission (CQC) inspection”.**

York Council set to increase charges by 3 times inflation rate from Jan 1st

Labour have published a list of the increases in charges that they intend to make from the end of the month.

Bulky waste removal charges increase to £40.

Most are around 5% (compared to the current inflation rate of 1.3%)

But there are some huge increases included.

The Burton Stone Community Centre hire charges are set to increase by 25% (main Hall). There will be a suspicion that this increase is a further attempt to drive out users who have already petitioned against the Councils plans for the centre.

Bulky household waste collection charges will get a 9% hike. It will cost £40 to get rid of up to 10 bulky items. Again this may be connected with Labours plans to charge for green bin emptying and to reduce the frequency of bin collections.

A full list can be seen by clicking here. No consultations on the proposals have taken place and the Council’s papers don’t include any indication of the number of users which each service has.

The council claims that the price increase will raise additional income of £146k in 2015/16. This is mainly from Bereavement Services (£88k) and Registrars (£25k).

Labour will consider further increases in prices in January when car parking, care services and planning charges will be amongst those under consideration.

Increased charges. Click for full list

Christmas fun…and money advice

City of York Council’s Family Information Service (FIS), Explore York Libraries and Archives Mutual Ltd and the Citizen’s Advice Bureau will be hosting a morning of fun crafts and information on Wednesday 10 December between 9am and 12noon in the reception foyer at West Offices.

There’ll be a host of crafts for little ones (and not so little ones) to get stuck into, including making Christmas decorations, colouring in Frozen characters and decorating paper Christmas trees. Explore York Libraries will also be on hand to provide information about the discounts available through York Cards and representatives from York CAB will be available to help with information on sensible festive spending.

The CAB’s top ten tips to avoid a Christmas Debt Hangover are:
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New energy deal offered to York communities

York residents and community groups are being urged to bid for a share of the £10m Urban Community Energy Fund.

The fund provides grants and loans to support urban communities, like York, to develop renewable energy projects.

Grants of up to £20,000 are available to help develop ideas into projects. The fund also will provide loans of up to £130,000 to develop projects through to the planning stages and to be in a position to attract funding to deliver the project.

The following groups are eligible to apply for the fund: (more…)

Liberal Democrat councillors are calling for an inquiry into the ‘Grand Departy’ music concert as part of a cross-party scrutiny review.

Meanwhile the minutes of two meetings of the Councils safety Advisory Group have confirmed that there was internal concern about the organisational arrangements for the concert.

Safety committee meeting July 2014 Click to read original minutes

The minutes suggest that, had the target audience numbers actually attended, then safety concerns could have been high.

The minutes of the meetings can be read by clicking the links below.

Safety Advisory Committee 30^th June 2014 (pre concert)

Safety Advisory Group 23^rd July 2014 (post concert)

Cllr Ian Cuthbertson, Lib Dem Spokesperson for Leisure, Culture and Tourism, has submitted an official request for a scrutiny review into the “planning, promotion and delivery” of council organised events for the Tour De France.

Last week it was revealed that City of York Council overspent its budget for the Tour by £60,000 with the ‘Events and Festivals’ programme losing taxpayers £252,000.

The poorly received ‘Grand Departy’ music concert at Huntington Stadium was the single biggest loss. The event cost £206,000 to stage but disappointing ticket sales meant only £19,000 in revenue was brought in, producing an overall loss of £187,000.

Cllr Cuthbertsoncommented:

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Loss on Huntington Stadium concert confirmed as £187,000

Event only took £12,000 in ticket sales

The York Council has finally revealed that it lost an astonishing £187,000 on the concert that it staged at the Huntington Stadium on 4^th July.

It spent £82,000 on artists fees and £94,000 on “infrastructure costs”

An “event management fee” of £18,000 was also spent

The Council went to extraordinary lengths to try to hide the scale of the failure with several Freedom of Information requests knocked back on largely spurious grounds and others still outstanding

With Labour now having lost their majority, officials have been ordered to reveal the full figures.

The mistakes will lead to renewed calls for the Cllr Crisp – who is responsible for Leisure activities – to resign.

She had been awarded a “medal” for her work on the event.

The costs given to leading Councillors were:

Cost Heading	£’000
Artists Fees	82
Infrastructure Costs	94
Marketing	10
Event Management Fee	18
Other CYC Costs	7	Repairs, seats and Gazebos and Charity Donations
Less costs shared with Spec Hub	-5	Screen and barrier cost shared with Huntington Stadium Spec Hub.
Total Expenditure	206

Gross Income
Ticket Sales	16
Less Refunds	-2
Catering	5
Total Event Income	19

Net Cost of Concert	187

NB. The Labour Cabinet on 1^st October 2013 set a budget for the Tour de France of £1,664k, to cover the cost of the event, funded from a variety of budgets.

The outturn shows that the final cost of the event totalled £1,827k. In addition there was an up front payment of a “hosting fee”.

Links (click)

Cllr Keith Aspden, Lib Dem Group Leader commented:

“There are serious questions to be asked as to how the council lost money on the Tour De France. The botched camping plans and the last-minute decision to hold a concert at Huntington Stadium have lost taxpayers £33,000 and £187,000 respectively.

“The Liberal Democrats argued all along that Labour needed to produce a proper public business case backed-up with detailed financial plans for these events. Instead Labour shrouded the plans in secrecy and took decisions behind-closed-doors without proper public involvement or opposition councillor scrutiny.

“Given this, it is unsurprising that these council organised events have lost money and will now worryingly hit the communities and neighbourhoods budget by £60,000.

“Despite the mistakes made by the Labour run council, I am pleased that overall the Tour De France has had a positive impact on York businesses and the wider Yorkshire economy.”

£3.9 million Social Care budget problem forces major rethink in York

“the service was not responding quickly enough or effectively enough to the challenges it faced” – Auditors

The Council has now published an outline of how it intends to recover from the Social Care budget deficit discovered by Auditors. The Auditors identified a budget pressure of £2.5 on this year’s budget together with outstanding actins needed to secure budgeted savings of £1.4 million.

In a separate report the Auditors they say

“Our view is that financial management and commissioning in the adult social care service needs to improve and this service has not responded quickly and effectively enough to the challenges that it faces.

If the underlying financial pressures are not robustly addressed and actions to secure significant future base budget reductions are not effective, there is a risk that the Council will not be in a position to deliver the best possible value for money in adult social care services.

Of critical importance to the delivery of sustained improvement is a review of existing contracts and a new commissioning approach that secures the required services at an affordable price”.

The crisis had led to the demotion of the Cabinet member, who had responsibility for the department, earlier in the year with several senior staff following her out of the door last month.

A summary of the action that the Council intends to take can be read here

10 substantial issues, raised by the Auditors, are addressed. They include:

Producing a clear and unambiguous budget for the current year which eliminates overspends
Improved accountability for senior officials
More delegation of responsibility
Improvements in the budget build process for next and subsequent years
A clear savings plan
Improved management information systems and IT

Council Leader with Cllr Simpson Laing (right) a few weeks before she was sacked from her Social care post

Challenged on the problems at the last Council meeting, the Leader declined to say why he had not taken action last year to address the emerging issues.

Council officials has earlier declined to say why one of the saving projects – the opening of a new “super care village” at Lowfields – was running 3 years behind schedule.

Big York Council Departmental overspends in 2013/14

Council took £1.8 million in spy camera fines which may have to be refunded

Social care budgets were over spent by £1.3 million last year with Environmental Services (mainly waste collection) clocking up a £443,000 and Children’s Services/Education a £309,000 loss.

Overall York Council Departments spent £1.7 million more than had been budgeted.

The budget broke even only because of a £2 million surplus on “centrally administered” budgets.

The figures are revealed in a report to be considered by the Councils “Cabinet” tomorrow (Tuesday)

As previously reported, the biggest problems arise in Social Care where the Council reveals overspends on community support (£236k) due to a higher number of customers than forecast, a continued increase above forecast level in the number of customers taking up Direct Payments (£129k), increased use of external placements for emergency and short term breaks (£252k) and a higher than budgeted number of customers in residential nursing placements (£718k).

The Councils financial position was saved only because it continued to enjoy the benefits of low interest rates on its borrowing (equivalent to a £990,000 budget saving).

It achieved only 73% of its planned capital investment programme storing up a massive £83 million backlog in work which it says it will try to address during the current financial year.

The government gave the City an extra £732,000 to reduce the Rate burden on small businesses although there has been a slow take up on this important concession.

The position is also masked by £1.765 million in fines income received from spy camera use in the Lendal Bridge and Coppergate.

The Council has now admitted that the trials cost a whopping £718,000 to implement. £1.047 million has been put in a reserve account which will presumably be used to refund fines imposed unlawfully.

The balance would have to come from Council taxpayers (the equivalent of a 1% rise in Council Tax levels).

The spy cameras on Lendal Bridge have been removed while those on Coppergate were switched off on 1^st April.

The housing revenue account (Council house rents income) showed a £12.1 million surplus at the end of the year.

The report to the Cabinet pointedly fails to contain performance data on the quality of public services being provided to York residents.

NB As at April 1^st 2014, 6717 York Council Taxpayers had arrears of £ 4,769,989.36

Highway condition declines in York

A meeting next week will hear the – not unsurprising – news that the majority of York’s highways and footpaths are declining in standard.

11% of unclassified roads (the vast majority of the City’s network) are now in urgent need of repair.

click to enlarge

Only on its classified network does the City compare well to some other Yorkshire authorities.

As reported recently (see right) the Council has belatedly realised the implications of the work backlog which started to build in 2012 when the Council imposed a 37% cut in maintenance budgets.

It is estimated that there is now a £32 million back log in work.

The Council is now saying that it will reveal in April an additional list of streets that it hopes to resurface in the run up to next years local elections.

A list of the roads and paths currently on the list to be resurfaced before March 2015 can be found here

NB. In the Dringhouses and Woodthorpe Ward part of the Moor Lane carriageway is due to be resurfaced.

Cllr Stephen Fenton, Cllr Ashley Mason & Cllr Paula Widdowson

Dringhouses and Woodthorpe Liberal Democrats