Agenda item

            The Committee was reminded that, at its meeting on 22nd August, the Director of Corporate Services had informed the Members that the rates finalisation for the financial year 2007/08 had resulted in the Council owing the Land and Property Services agency £4,128,553.40.  At that meeting it had been agreed that the Party Group Leaders and the Chair of the Strategic Policy and Resources Committee should meet to discuss initially the implications of the 2007/08 rates finalisation on the 2008/09 budget and the rates setting process for 2009/10.  A number of key factors had arisen:

            2007/08

            The £4,128.553.40 clawback would have to be met from reserves.  That meant that the Council’s reserves now stood at £4 million.  Best practice would indicate that for a Council the size of Belfast the ideal reserve position should be £10 million.

            2008/09

            The projected rates finalisation for 2008/09 would result in a clawback of £700,000.  However, that projection did not include additional rate income which would accrue from Victoria Square and vacant property inspections.  When those had been included the projection would be a marginal positive outcome for 2008/09.  Work had been carried out to assess the impact of inflation and the level of current expenditure on the 2008/09 year-end position.  It was agreed that a revised year-end position would be provided to the Committee after the half-year results had become available in November.

            2009/10

            A preliminary projection for 2009/10 would indicate that, in order to stand still, a minimum rate increase of 5% would be required.  The Party Group Leaders had indicated that an inclusive rates setting process for 2009/10 would be required which would consider both financial and Council priorities at the same time.  They had indicated that briefings should be provided to all Members of the Council through the Strategic Policy and Resources Committee and the Departmental Committees on an ongoing basis as part of the rates setting process.

            The Party Group Leaders had recommended that a special meeting of the Strategic Policy and Resources Committee, to which all Members of the Council would be invited, be held in October in order to discuss rates issues and to provide representatives from the Land and Property Services agency with an opportunity to attend.  The key areas for discussion would include:

·         the accuracy of the current rates estimating model;

·         vacant properties;

·         debt management;

·         the accountability of the Land and Property Services Agency and the development of a Service Level Agreement with the Council; and

·         changes to rating policy and regulations.

            Following the special meeting, the Committee could then decide how it might wish to engage with the Minister for Finance and Personnel in order to advise him of the Council’s proposals on how the current process might be improved.

            Accordingly, the Committee:

(i)    noted the current financial issues facing the Council;

(ii)    agreed to receive a revised year-end position after the half-year results had become available;

(iii)   agreed that rates briefings be provided to all the Committees as outlined above;

(iv)  agreed to hold in October a special meeting of the Strategic Policy and Resources Committee, to which all Members of the Council would be invited, to discuss rates issues and that representatives of the Land and Property Services Agency be invited; and

(v)   noted that a number of special meetings of the Strategic Policy and Resources Committee would be required to be held in November and December in order to develop the rate for the next year.