Revenue hangs in the balance (From Borehamwood Times)

Revenue hangs in the balance

10:12am Friday 21st November 2008

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A report was released this week on Hertsmere Borough Council’s accounts. Janaki Mahadevan tries to decipher the figures that have ‘flummoxed’ councillors.

Ever wondered what your council tax goes towards? This week, councillors were presented with details of what has been spent on services in the borough.

The council’s main sources of revenue are Government grants, council tax, and fees and charges. Each year the authority sets a budget for areas including waste management, housing, and building control, using this money.

At a full council meeting on Wednesday night, the annual statement of accounts was presented following checks made by external auditors. Overall the council fared well, having come out of the last financial year [2007/8] with £141,000 left over.

But some areas did better than others. Money spent on waste management went over the £4.5 million budget by £342,000. According to the accounts, reasons for this included employing staff from agencies and two new vehicles needed for two extra collection rounds.

There was also an overspend on repairs to buildings, some of which were needed because of vandalism.

Housing and environmental health came in £10,000 under budget, with the council earning money because it charges more for pest control. The report states: “The surplus was primarily due to an increased pest control income of £23,935. Income steadily increased after the introduction of the new fees last year and it was a busy year for wasps’ nests.”

Although the council’s accounts are available for the public to view, detailing what is spent on everything from clearing wasps’ nests to the authority’s printing costs, some councillors are worried the figures are too complicated.

Addressing the meeting at the Civic Offices, in Elstree Way, on Wednesday night, Councillor Lynne Hodgson said: “This time last year we were flummoxed by the accounts and we wanted them to be clearer, but they aren’t. There is something drastically wrong. At the very least, the council should have understandable accounts, but confusion reigns.”

Publishing the accounts allows people to see if the council is achieving its aim of balancing the need to improve services with the cost to the taxpayer. Council leader Morris Bright believes it has.

He said: “In the most recent resident survey it was reported that 69 per cent of residents felt last year’s council tax provided value for money.

“Despite the current adverse economic conditions, the council has managed to achieve a surplus for 2007/8 of £141,000. This is a great achievement and demonstrates sound financial management.”

But with the economic problems facing councils across the country and increased demand on services including affordable housing, waste management and recycling, and improvement to public transport, next year may prove to be a little more challenging.

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