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Council Budgets - They Are Skint Too!

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York City Council Budget

Funding

Council Tax: 72.7m

Revenue Support Grant: 20.9m

Business rates: 24.1m

from reserves: 500k

collection fund surplus: 1.2m

Total £119.6m

Total expenditure is also £119.6m so the budget is balanced

The council has debts of £239m at an average of 3.87% interest

What is the chance of the council ever clearing those debts? I will start the ball rolling on that one by suggesting that there is no chance, ever.

How is it for your local council? Would you regard it as prudent?

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York City Council Budget

Funding

Council Tax: 72.7m

Revenue Support Grant: 20.9m

Business rates: 24.1m

from reserves: 500k

collection fund surplus: 1.2m

Total £119.6m

Total expenditure is also £119.6m so the budget is balanced

The council has debts of £239m at an average of 3.87% interest

What is the chance of the council ever clearing those debts? I will start the ball rolling on that one by suggesting that there is no chance, ever.

How is it for your local council? Would you regard it as prudent?

Ah ******** to it.

Edited by shindigger

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As I understood it historically towards the end of the year they always spent their budget and more (often wasting it just to get it spent)......knowing that if they had a surplus they would be penalised for it the following year, so wouldn't get so much as by having a surplus showed they were over paid......always spend/waste more so as to get even more next time......it worked for a while. ;)

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How did the council amass such a debt?

Time for some forensic accounting ...

Most councils have three big sources of debt: historic debt (dates from before the current structures which are mostly products of the 1970s-1990s), housing debt (when historic housing assets & liabilities were transferred to local government in the early 2010s), and own debt (resulting from the decisions & actions of the councils as they exist now).

In York's case, a quick check online suggests around 170m of the 270m is in the first two, meaning they've borrowed around 100m themselves in the last 30 years. That'll be for capital investment (buildings, equipment) and possibly ongoing services (esp if they generate a revenue to cover the cost of servicing the debt).

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York reserves are about £7.5m

In light of the debt figure you quoted the reality is that they have no reserves at all. It would be like me having a £239k loan and telling people I had £7.5k of savings because that was the balance I had in a particular bank account.

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Budget cuts of 40% over the last 5 years. Central government financing moving from 60% of income to 0% in next 5 and not allowed to increase taxes.

Of course they are going bust.

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Is council executive pay falling.

They just seem to be extending the no parking/pay for parking zones.

Plenty more white lines on the roads and extra traffic lights as well - for their road works cronies. Roundabouts were the modern replacement for traffic lights to facilitate traffic flow and now they're replacing roundabouts with traffic lights - full circle (no pun intended).

Helping the country to grind to a stand still. They need cheap labour to help in doing that.

Edited by billybong

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In light of the debt figure you quoted the reality is that they have no reserves at all. It would be like me having a £239k loan and telling people I had £7.5k of savings because that was the balance I had in a particular bank account.

Succinctly put and pretty much describes the masses who have little savings and whopping great big mortgages on Barratt boxes up and down the country. They don't see the debt... Only the monthly payment and their savings much like YORK COUNCIL extend and pretend I say.

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As I understood it historically towards the end of the year they always spent their budget and more (often wasting it just to get it spent)......knowing that if they had a surplus they would be penalised for it the following year, so wouldn't get so much as by having a surplus showed they were over paid......always spend/waste more so as to get even more next time......it worked for a while. ;)

Still happens ;)

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How is it for your local council? Would you regard it as prudent?

Northampton.....

http://www.northamptonchron.co.uk/news/local/budget-cuts-of-148-million-will-result-in-northamptonshire-county-council-outsourcing-95-per-cent-of-staff-1-6463894

The most dramatic changes to public services for 125 years will see Northamptonshire County Council reduce its workforce from 4,000 to 150 people in a bid to carve £148 million out of its budget within the next five years.

http://www.bbc.com/news/uk-england-northamptonshire-31544256

Budget report figures showed the cost of providing services would be expected to rise by £104m over the next five years, while money received from government will fall by £79m.

God knows how all of this will unfold....

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How did the council amass such a debt?

Time for some forensic accounting ...

Mine handed road maintenance over to a private company and paid for their services via a PFI.

The private company then went through the contract with a fine tooth comb and decided they didn't actually have to do very much road maintenance at all because the contract was so leaky (thank you very much).

Cash kept (longterm contract).... other companies now brought in at great expense to carry out necessary highway repairs.

The department that used to do it internally for the council was closed and broken up ages ago.

At the time there was great fanfare about how shifting a public service over to a private company would save us all a tonne of money.

It didn't.

About 3 times as expensive annually so far and rising....

Edited by byron78

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What is the difference between Greece running debts of 201% of GDP and York City Council running debts of 201% of its 'GDP' ?

There is no chance what so ever of either Greece or York City Council paying back the principal.

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How about lots and lots of mobile speed cameras. They'll make millions in weeks.

They could then have public buildings sponsored by big business - e.g. The Spinaker Tower in Portsmouth will bring in a few million as it might be sponsored by Arab Emirate Airlines.

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I was talking to someone last week who is coming up for retirement. Was contacted by a council he worked for at the start of his career for 7 years. Turns out he has a pension he didnt know about.

During his time was paid x a year.

Will be getting x as a lump sum.

Will be getting between a third and a quarter of x annually as a pension .

Madness

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I was talking to someone last week who is coming up for retirement. Was contacted by a council he worked for at the start of his career for 7 years. Turns out he has a pension he didnt know about.

During his time was paid x a year.

Will be getting x as a lump sum.

Will be getting between a third and a quarter of x annually as a pension .

Madness

Don't understand why people don't take their personal finances more seriously. I know where every penny is, how much I'm paying in expenses, how tax efficiently I'm invested and importantly how I'm going to improve on all that going forwards. His/Her ignorance has just meant they've worked far longer than they probably had to. Those are years they'll never get back.

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Barnsley Council is now selling on eBay Barnsley Council is selling unwanted items on eBay. How are they doing?

http://tamebay.com/2015/08/barnsley-council-is-now-selling-on-ebay.html

http://www.ebay.co.uk/sch/barnsleymbc/m.html

Green work jackets, £80

http://www.ebay.co.uk/itm/23-x-Green-work-jackets-/121730031599?hash=item1c57acdfef

Everywhere else I look you can buy similar ( hard to tell quality etc though ) for £30-£50

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