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Paper 8 - 30 January 1998 Meeting

ASSOCIATION OF HAMPSHIRE AND ISLE OF WIGHT LOCAL AUTHORITIES

30 January 1998

THE ASSOCIATIONíS BUDGET 1998/99

Paper from the Policy Officer

RECOMMENDATION

That Association subscriptions for 1998/99 remain at the same level as those for the current financial year.

BACKGROUND

1. The Associationís year is from 1 June to 31 May. This enables Member Local Authorities to appoint their representatives after the May elections. However, Authorities need to set their budgets now, and it is the Associationís policy to set its budget for next year in January.

2. Member Authorities pay in accordance with their voting rights. Hampshire County Council has four votes and so pays four units of subscription, Unitary Authorities pay three, and District Councils pay two units. Associate members pay one unit. The Associations of Parish and Town Councils (APTCs) pay £1 per parish a year. There are currently 29 units of subscription. The budget (minus the APTC contribution) divided by 29 units gives £2,400 as the current unit of subscription. The current subscriptions are shown in the table below:-

Subscriptions for 1997/98

No of Units of Subscription
(£2,400)

Individual
Subscription
*
£

Total
Income
*
£

Hampshire County Council

4

9,600

9,600

Isle of Wight Council

3

7,200

7,200

District Councils (10)

2

4,800

48,000

Associate Members (2)

1

2,400

4,800

APTCs

(£1.00 per parish)

120

Total income

£69,720

* Note: Excluding VAT

3. The Associationís budget for the current year and proposals for 1998/99 are shown in the Annex.

REVIEW OF EXPENDITURE 1997/98

4. Expenditure has been carefully monitored and the original budget has been shown to cover the office costs and staff salaries - the latter being by far the largest single cost.

5. The only unforeseen expenditure item so far was the calling of a conference of South of London Local Authorities hosted by Basingstoke and Deane in July 1997. This expenditure (£436) was met by the Borough Council on behalf of the Association. It is recommended that a small reserve should be built up to allow the Association to meet this type of contingency in future.

PROJECTIONS FOR 1998/99

6. With that one caveat there is no need to increase the budget for next year. The staff are on fixed-salary contracts, and other costs can be contained within the original projection for 1998/99 plus the small contribution from the APTCs. The original projection showed a reduction in total expenditure of £5,000 reflecting the set-up costs which applied in the first year only. If membership and subscriptions remain unchanged, then a surplus of £5,000 will be built into the budget for joint initiatives.

INCOME FOR 1998/99

7. Membership subscriptions for next year will depend on membership decisions by constituent authorities. Assuming no change in membership, then the subscriptions will be unchanged.

8. If the two Associate Members (Portsmouth and Hart) were to become full members, then the unit of subscription would reduce by 9% to £2,175, giving the following subscriptions:

No of Units of
Subscription
(£2,175)

Individual
Subscriptions
£

Total Income

£

Hampshire County Council

4

8,700

8,700

Unitary Councils (2)

3

6,525

13,050

District Councils (11)

2

4,350

47,850

APTCs

(£1.00 per parish)

240

Total income

69,840

9. Portsmouth City Council and the Isle of Wight Council gave protective notice keeping open their option to withdraw at the end of the Associationís first year. All these figures assume that they will remain in membership.

NICK GOULDER
Policy Officer

Copy of annex available on request

Last update: 05/09/2000
Author: Nick Goulder, Policy Manager

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