Simply Complicated - The 2010/11 draft budgets.

I went down to the Town Council offices to collect the draft budget. Only to find there are two draft budgets! I've scanned in the summaries for Option1 and Option 2.

There has been a bit of rearranging the deckchairs on the Titanic. The first thing to point out is neither option has regard to any provision for public toilets or the Eaton Socon Car Park. The second point is some of the under budgeting in the 2009/10 budget have come back to bite this council. I blame Giles and Thorpe for this.

Option 1
This draft budget increased from £803,576 to £892,997. An increase of £89,421.  This is equal to £87.59 band D or  + 4 pence increase over 2009/10. The main cost increase is a massive £67,996 on Central Administration. The vast majority of this is a hike in salaries of £67,991. About half of this of this increase is due to the under budgeting for the Town Clerk in 2009/10. The other part I don't know. Other increases are: Priory Centre + £13,542; Capital Projects + £14,751.

Option 2
This draft budget increased from £803,576 to £858,727. An increase of £55,151. This is equal to £84.23 band D or -£3.32 decrease on 2009/10.

The main changes to Option 1 are:

Capital Projects are now zero. -£26,500
Priory Centre -£2,000
Eatons Community Centre -£4,650

The changes at the ECC are strange. (ECC Option 1 + ECC Option 2)

Staff salary: Option 1 = ££ / Option 2 = £9,000
Hall Hire: Option 1 = £25,000 / Option 2 = £40,000
Pre School Lease: Option 1 = £12,000 / Option 2 = £6,000

In my opinion there are three problems with these budgets.

The first problem is central staffing. We seem to be in the savage circle. An increase in the central bureaucracy without a massive increase in services delivered to the residents. The Town Council is over staffed and needs to be cut back rather than keep increasing.

The second problem is the budget for the Eaton Community Centre. Option 1 has an entry is just ££ for staffing. So the Town Council has made no budget for this section in Option 1. This is wrong. An estimate should be made and a figure entered. There are major differences in the estimates on income and on the lease for the pre-school. The assumptions behind these figures should be the same. The lease cannot be £12,000 in one option and £6,000 in another. Nor can you have hall hire income at £25,000 in Option 1 and £40,000 in Option 2. There should be only one view on these income items, not two.

The third is there is not much money for capital projects. This Council needs to keep setting aside large amounts of money in a capital programme to renew the Town Council facilities. Otherwise these facilities will continue to deteriorate and will cost more money in the future.

What we should remind ourselves is this budget would have been much worse if it wasn't for the extra £89,000 from the annexed areas. If we took the new council tax base and applied it to the old budget we would be paying £78.82.
Option 1 we would be paying £87.59. An extra £8.77 or 11%.
Under Option 2 we would be paying £84.23. An extra £5.41 or 6.4%.

Whilst this is not a cost increase for 2010/11 it should be remembered that Grounds Maintenance is still costing SNTC £83,000 more than in 2007/08. This is a major underlying cause of the budget problems.

In conclusion, this budget is partly a carry over from the 2008/09 casino budget which left SNTC in a right mess. What is troubling is the lack of funding for a capital programme or indeed a capital programme. But what is most troubling is the salaries increase of £67,991. We should be reducing the central bureaucracy instead of increasing it!

These draft budgets are due for discussion at a Special Town Council Meeting on 15th December 2009.

Documents
Option 1 Summary
Option 2 Summary
ECC Option 1
ECC Option 2
Salary Increase