City of York Council's Executive will be asked to consider proposals for the authority's 2010/11 budget at a meeting later this month (Tuesday, 16 February).

The results of the council's citywide budget consultation have been used to inform the budget proposals and, if agreed, the council will set a £118m net revenue budget for the forthcoming year.

The proposed budget reflects additional investment in key priority areas including Social Care (£2.6m), recycling and waste issues and ongoing support for additional capital investment in highways maintenance.  The budget also creates financial capacity to enable the council to manage the continuing and significant impact of the downturn in the economy.

In order to fund these priorities and pressures, fundamental reviews of current spending have resulted in savings being identified from non-priority areas of £6.6m. In addition, the council's corporate efficiency programme  (More for York) is planning to deliver efficiency savings of £4.5m, which will enable financial pressures to be addressed without the need for cuts or service reductions.

The council's budget is funded by three main sources: government funding, council tax and income generated from fees and charges.

York historically receives less government grant per person in the city than other comparable authorities. This year, the city will receive £224 per person from the government, compared to the average for similar councils of £318. Because York is one of the lowest funded authorities in the country decisions about the budget and the impact on services are particularly difficult.

To enable the council to continue to provide essential services and meet growing demands, the Executive will be asked to consider setting a 2.9 per cent rise in council tax - equivalent to an increase of £30.80 per year on a Band D property - for 2010/2011.

If agreed, this would allow the council to invest additional funding in four key areas:
1. Supporting an increasing number of Looked After Children [children in the council's care] in the city. Since March 2008 there has been a 35 per cent increase in the number of children and young people the council is looking after, and changes in the law mean that the council may have to support older youngsters as well - at a total additional cost of £1.557m.

2. Meeting increasing demands in Adults Social Services. Costs are increasing due to an increasing number of older people in the city, increased demand for services and an increasing number of individuals with very complex needs transferring to adult social services from children's services. The pressures include increasing costs of supporting people with mental health needs and an increase in the amount of home care needed to support people in their own homes at a total additional cost of £1.1m.

3. Meeting the significant costs arising from the economic recession, such as lower interest rates, and reduced income from fees and charges etc - at an additional cost of over £2m.

4. Meeting further increases in national Landfill Tax charges, which are levied on waste going into landfill, rather than being re-used or recycled. The increase in Landfill Tax in the next year is £8 per tonne and the authority sends an average of 60,000 tonnes of waste to landfill each year. Investment is also being made to enable the further roll out of the kerbside recycling service and to encourage the reduction of waste generated in the area. - at an additional £0.88m.

Members of the council's Executive will be asked to make recommendations on the budget and council tax level to a meeting of Full Council on Thursday 25 February.