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Paper 7 - 29 January 1999 Meeting

ASSOCIATION OF HAMPSHIRE AND ISLE OF WIGHT LOCAL AUTHORITIES

29 January 1999

SUBSCRIPTIONS AND BUDGET FOR THE ASSOCIATION 1999/2000

Paper from the Policy Manager

RECOMMENDATION

That the membership subscriptions be reduced for 1999/2000 so that the subscription unit is 2,250, a reduction of 6%.

BACKGROUND

1. The Association's year is from 1 June to 31 May. This enables Member Local Authorities to appoint their representatives after the May elections. However, Member Authorities need to set their budgets now, and it is the Association's policy to set its budget for next year and agree subscriptions at this time of year.

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 31 units of subscription. The budget (minus the APTC contribution) divided by 31 units gives 2,400 as the current unit of subscription. The current subscriptions are shown in the table below:-

Subscriptions for 1998/99

No of
Units of
Subscription
(2,400)

Individual
Subscription
*

Total
Subscriptions
*

Hampshire County Council

4

9,600

9,600

Unitary Authorities

3

7,200

14,400

District Councils (10)

2

4,800

48,000

Associate Member (Hart)

1

2,400

2,400

APTCs

(1.00

per parish)

240

Total subscriptions income

74,640

* Excluding VAT

3. The Association's budget for the current year and proposals for 1999/2000 are shown in the Annex.

REVIEW OF EXPENDITURE 1998/1999

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, with a small percentage increase approved at the last meeting. Expenditure over the first eighteen months of the Association's life has been slightly lower than anticipated. Income has been higher than anticipated with Portsmouth City Council becoming a member in year 2. The former Association of District Councils left a reserve of 2,500 to HIOW and this has now been supplemented by underspends running at around 8,000 a year.

PROJECTIONS FOR 1999/2000

5. Funds are more than sufficient to cover foreseeable costs given the current membership. There is now room for a small reduction in subscriptions.

SUBSCRIPTION INCOME FOR 1999/2000

6. Membership subscriptions for next year will depend on membership decisions by constituent authorities. Assuming no change in membership, then it is recommended that the subscription unit should be reduced by 150 to 2,250 (a reduction of 6.25%).

7. If the one Associate Member (Hart District Council) were to become a full member, then the unit of subscription could reduce by 8.3% to 2,200, giving the following subscriptions:

No. of
Units of
Subscription
(2,200)
Payable

Individual
Subscription

Total
Subscription
Income

Hampshire County Council

4

8,800

8,800

Unitary Councils (2)

3

6,600

13,200

District Councils (11)

2

4,400

48,400

APTCs

(1.00

per parish)

240

Total income

70,640

NICK GOULDER
Policy Manager

 

ANNEX

ASSOCIATION OF HAMPSHIRE AND ISLE OF WIGHT LOCAL AUTHORITIES

OUTTURN

1997/98

ORIGINAL BUDGET

1998/99

EXPECTED OUTTURN

1998/99

BUDGET

1999/2000

Staff Costs

41,993

46,800

47,340

50,500

Hon. Sec. Committee Support

4,000

4,120

4,120

4,220

Travel and Subsistence

711

800

900

900

Office Costs

4,968

7,870

6,520

8,070

Host Authority reimbursement

5,000

5,150

5,150

5,500

Furniture and equipment

3,599

3,500

2,400

700

Increase in reserve

8,787

6,400

8,210

0

Contribution to Area Cost Adustment

1,500

 

Less contributions from APTCs

70,558

(123)

74,640

(240)

74,640

(240)

69,890

(240)

ADJUSTED TOTAL

70,435

74,400

74,400

69,650

Last update: 21/09/2000
Author: Nick Goulder, Policy Manager

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