I have a real problem justifying our reserves where we have an AGAR figure of almost twice our annual budget . Our EMR sub heads consist of
a third for projects which are agreed being planned and will happen
another third consisting of wish list projects used to park money in which will probably never happen and finally
another third of contingency pots that might happen once every 5 years
Meanwhile every year we are receiving advice saying we should really increase our General Reserves just in case x or y happens . I don’t buy into all the scare mongering here as PCs cant be forced to do anything . If we had to provide extra services then surely the money would come with it.? I see it that the electorate are nearly paying double up front for some things that might never happen. So here are my thoughts.
I would establish our General Reserve at a set fixed amount of say circa 6 months of the year round budget (say £150K) , I would then remove all the wish list and contingencies sub heads from our EMR and if they happen get them paid from General Reserves . Then in order to “compensate” for any spend I would have a sub head in the following year round budget for “top up general reserves” (to the fixed figure) . I have no clue as to how our accounting package work but is this logical and would it work? . I feel this is a better deal for the electorate who would in effect pay after the work is done rather than before . Views please