“Why has allocation to reserves been reduced this year when it was only set at £1.5m last year, especially if we are so low on reserves.”
- Cllr Pervez said: Due to strong financial management, the city council was able to increase its general reserves slightly in 2010/11. It is also planning to make a further £1.5m contribution in 2011/12 with a further contribution planned in 2012/13. These additional contributions will meet the advised reserves level by the Section 151 officer. The situation will need to be monitored throughout 2012/13.
Cllr Pervez reply differs from what is in the Budget Proposal
2-BS04 saving of £1.5Million – This saving assumes that the General Fund delivers a balanced budget this year. The s151 Officer’s professional opinion is that a further contribution to the General Fund Reserve in 2012/13 and beyond would not be needed if the financial plans that have been approved this year are delivered. The reserves position will need to be monitored on a quarterly basis.
I would hardly call the £1million increase in 2010 as slight from £500,000 to £1.5million per year, it could of been a less drastic increase, meaning less drastic cuts would have need to be made. This is now bourne out by the fact that no further addition is required meaning a steady increase like the original £500,000 a year would of achieved, with added bonus extra £1million for the budget last year
Which is correct the budget report or the Council Leader, was the reserve allocation set too high last year?