CABINET

Minutes of the Meeting held on Thursday, 8th February 2018 at Retford Town Hall

Present:Councillor S A Greaves (Chair),

Councillors K Dukes, J Evans,J A Leigh, D G Pidwell,S Scotthorne and J White.

Advisory Member:Councillor H M Brand.

Liaison Members:CouncillorH Burton.

Officers:B Alderton-Sambrook, D Armiger,K Childs,D Hill,C Hopkinson, L Prime,N Taylor R Theakstone andS Wormald.

(The meeting opened at 6.30pm.)

(The Chair welcomed all to the meeting and referred to the Fire Evacuation Procedure and the recording regulations – however, there were nomembers of the public present).

98.QUESTION TIME - PUBLIC

Council Procedure Rules were suspended for fifteen minutes to allow questions from the public; however, there were no members of the public present.

99.APOLOGIES FOR ABSENCE

Apologies for absence were received from CouncillorsK H Isard, S E Shaw and T Taylor.

100.DECLARATIONS OF INTEREST BY MEMBERS AND OFFICERS

(a)Members

There were no Declarations of Interest by Members.

(b)Officers

There were no Declarations of Interest by officers.

101.MINUTES OF THE MEETINGS HELD ON 5TH DECEMBER 2017 AND 9TH JANUARY 2018

RESOLVED that the Minutes of the meetings held on 5th December 2017 and 9th January 2018 be approved.

102.MINUTES FOR ACTION AND IMPLEMENTATION

RESOLVED that the Minutes for Action and Implementation be received.

103.OUTSTANDING MINUTES LIST

RESOLVED that the Outstanding Minutes List be received.

104.FORWARD PLAN

RESOLVED that the Forward Plan be approved.

SECTION A – ITEMS FOR DISCUSSION IN PUBLIC

Key Decisions

105.REPORT(S) OF THE CABINET MEMBER – FINANCE – COUNCILLOR J EVANS

(a)Budget Monitoring and Capital Programme Update Report to 31st December 2017 (Key Decision No. 679)

Members were presented with:

  • The spending position for the period 1st April to 31st December 2017 for the Council’s General Fund, Housing Revenue and Capital Programme.
  • Updates on any significant variances from the approved budgets.
  • Information on the proposed resourcing of the Capital Programme and the level of Council capital resources available, including capital receipts.
  • Updates on Treasury Management budget issues.
  • The regular quarterly update on performance against the approved Treasury Management Prudential Indicators for the period ending 31st December 2017.

Members’ approval was sought for the new additions, variations and re-profiling to the existing Capital Programme.

Options, Risks and Reasons for Recommendations

The budget monitoring section of this report provides Managers’ forecasts and is for information only. There are always some risks that the actual outturn variance could be substantially different from that currently shown, (mainly due to the volatility of income), but the report sets out officers’ projections, and as such the financial risks that may occur by 31st March 2018.

The Council has responsibility for delivering its Capital Programme on time and not doing so could undermine the achievement of its objectives. The bi-monthly capital monitoring meeting will continue into the future.

This report is for the third quarter of the year. Current indications are that there will be a budget overspend of £0.144m in year for General Fund and for the HRA to be to budget with a nil forecast variance. However, it is important to note that this report is only highlighting that a problem may or may not arise, and draws to both officers and Members attention that these need to be closely monitored throughout the year.

The continual pressures on Local Government finances are well documented and led to another challenging budget setting process for 2017/18. A total of £0.719m was removed from 2016/17 base budget to produce the 2017/18 budget. The Financial Management of these budgets by spending officers’ is crucial. This quarterly report is just one element of the robust monthly budget monitoring process that the Council operates. Spending officers’ are pivotal in this process and are required to recognise and report any forecast variances to budget as early as possible, to enable appropriate action to be taken. The financial equation is simple, any overspends in the current year will increase the savings target for all services in future years if the Council is to survive the cuts to public sector funding that the central government are implementing.

RESOLVED that:

  1. The position with regard to revenue and capital budget monitoring be noted.
  2. The ‘new approvals funded from capital receipts’ to the 2017/18Capital Programme totalling £0.004m, as discussed in paragraph 3.19 and detailed in Appendix 3, be approved.
  3. The ‘other variations’ to the 2017/18 Capital Programme totalling £0.012m, as discussed in paragraph 3.19 and detailed in Appendix 3, be approved.
  4. The ‘reprofiling’ to the 2017/18 Capital Programme totalling (£0.126m) be approved, as detailed in Appendix 3.
  5. The proposed resourcing of the Capital Programme and the level of capital receipts currently available to fund any further capital expenditure be noted.
  6. The quarterly update on performance against the approved Treasury Management Prudential Indicators for the period ending 31st December 2017, as detailed in Appendix 6, be noted.
  7. The weekly investment balances made throughout the third quarter of the financial year, in conjunction with the Security, Liquidity and Yield benchmarking data for the Council, as detailed in Appendix 7, be noted.

(b)Treasury Management Policy and Strategy 2018/19 to 2020/21 (Key Decision No. 655)

Members’ approval was sought for the Treasury Management Strategy, which incorporates the Borrowing Strategy, Investment Strategy, Minimum Revenue Provision Policy and Prudential Indicators, updated in accordance with latest guidance, for recommendation to full Council on 8th March 2018.

The following documents were appended to the report:

  • Treasury Management Strategy 2018/19 to 2020/21, including the Capital Prudential Indicators, the Borrowing Strategy and the Annual Investment Strategy
  • Capital Prudential and Treasury Indicators 2018/19-2020/21 and Minimum Revenue Provision Statement
  • Interest rate forecasts
  • Economic background
  • Credit and Counterparty Risk Management (TMP1)
  • Treasury Management Scheme of Delegation
  • The treasury management role of the Section 151 Officer

The Cabinet Member for Finance added that it is a statutory requirement for the Council to produce a balanced budget; this includes the revenue costs that flow from capital financing decisions.

Options, Risks and Reasons for Recommendations

The only option is to accept the recommendations and adopt the Treasury Management Strategy, Borrowing Strategy, Annual Investment Strategy and MRP Statement and to approve the Prudential Indicators. Not to approve these policies would contravene the requirements of both legislation and good practice. In addition, the KPMG External Auditors may pass comment in their Report to those charged with governance (ISA260).

RESOLVED that the following be agreed and recommended to full Council on 8thMarch 2018 for approval:

  1. The Treasury Management Strategy 2018/2019 to 2020/21, incorporating the Borrowing Strategy and the Annual Investment Strategy, as detailed in Appendix 1 of the report.
  2. The Prudential Indicators and Limits for 2018/19 to 2020/21, as detailed in Appendix 2 of the report.
  3. The Authorised Limit Prudential Indicator, as detailed in Appendix 2 of the report.
  4. The Minimum Revenue Provision (MRP) Policy Statement which sets out the Council’s policy on MRP, as detailed in Appendix 2 of the report.

(c)Capital Investment Strategy 2018/19 to 2022/23 (Key Decision No. 656)

Members’ approval was sought for the Capital Investment Strategy 2018/19 to 2022/23, which was appended to the report, for recommendation to full Council on 8th March 2018.

The Strategy outlines the principles and framework that shape the Council’s capital investment decisions. The principal aim is to deliver a programme of capital investment that contributes to the achievement of the Council’s priorities and objectives as set out in the Council Plan.

The Strategy defines at the highest level how the Capital Programme is to be formulated, it identifies the issues and options that influence capital spending, and sets out how the resources and Capital Programme will be managed.

Options, Risks and Reasons for Recommendations

The Capital Investment Strategy is a key document that sets out how capital resources will be used to meet the priorities of the Council.

RESOLVED that the Capital Investment Strategy 2018/19 to 2022/23 be agreed and recommended to full Council on 8th March 2018 for approval.

(d)General Fund Revenue Budget 2018/19 to 2022/23 (Key Decision No. 675)

Members’ approval was sought for the General Fund Budget proposals for 2018/19 for recommendation to full Council on 8th March 2018. It was noted that a £5 Council Tax increase for Band D equivalent properties will be proposed at full Council.

The report gave an introduction and outlined the following, on which the Cabinet Member for Finance summarised points:

  • Revenue Budget overview
  • 2018/19 and 2019/20 budget pressures
  • General Fund Revenue reserves and balances
  • Local Government Finance Settlement 2017/18
  • Business Rates and appeals
  • New Homes Bonus
  • Inflation and other budget provisions
  • Discretionary Grants to Outside Bodies
  • Council Tax and the collection rate
  • Collection Fund surplus
  • Business Rates
  • Robustness of Estimates and Adequacy of Reserves
  • Future Years
  • Budget Consultation
  • Future Issues and Prospects

The Head of Finance and Property (Section 151 Officer) noted that in previous years a costly Budget Book has been produced, Members have still been provided with the same information and the detailed information is available on the Members Portal and in the Members Room. The Property Asset Management Plan and General Fund Capital Programme have been presented to previous Cabinet meetings.

The provisional Local Government Finance Settlement 2018/19 was agreed by Parliament yesterday and there has been one small change which is an increase in Rural Services Delivery Grant of £10k.

The Chief Executive thanked the Head of Finance and Property. The Chair and Members also thanked the Finance Team and the Cabinet Member for Finance for their hard work putting the budget together.

The Advisory Member expressed her support that the discretionary grants to outside bodies would still be provided. It was noted that public awareness should be raised of how Members are supporting local groups.

Options, Risks and Reasons for Recommendations

The Council is exposed to a number of risks and uncertainties which could affect its financial position and the deliverability of the proposed budget. These risks include:

  • Savings plans may not deliver projected savings to expected timescales;
  • Assumptions and estimates, such as inflation and interest rates, may prove incorrect;
  • Funding from central government (Settlement Funding Assessment, New Homes Bonus, and other grants) may fall below projections;
  • The actual impact and timing of local growth on the demand for some services may not reflect projections used;
  • Increases in council tax and business rates receipts due to local growth may not meet expectations;
  • Business rates appeals may exceed the provision set aside for this purpose;
  • The local and national economic climate may change, impacting on some of the Council’s income streams such as car parking income, commercial rents and planning fee income;
  • New legislation or changes to existing legislation may have budgetary impacts.

The Council is required to set a balanced budget, but may otherwise vary its spending and taxation proposals below the excessive capping referendum trigger. For the 2018/19 revenue budget, the following decisions are available to Members:

i)Change the level of service spending or income projections;

ii)Revise the level of any reserves to support the revenue Budget;

iii)Change the planned level of increase in Council Tax for 2018/19.

RESOLVED that the following be agreed and recommended to full Council on 8thMarch 2018 for approval:

1.The Budget for 2018/19 and future years, together with the associated comments from Audit and Risk Scrutiny Committee on 6th February 2018 and Cabinet on 8th February 2018, be considered.

2.A Council Tax increase of £5 for Band D equivalent properties for 2018/19 be recommended.

3.The declaration that there will no surplus on the Collection Fund for 2017/18, as summarised in Paragraph 3.44 of the report, be noted.

4.The Business Rates figures shown on the NNDR1 Form be noted regarding:

  • The net yield form local business rates;
  • The cost of collection allowance;
  • The amounts retained in respect of renewable energy schemes;
  • The declared surplus at the end of 2016/17

4.Authority be delegated to the Cabinet Member for Finance for addressing any issues arising from the Business Ratepayers meeting held on 12th February 2018.

5.Authority be delegated to the Head of Finance and Property to deal with amendments to the Budget for any changes to Drainage Board and Parish Town Council precepts.

FURTHER RESOLVED that officers and Members be thanked for their hard work involved in the budget setting process.

106.REPORT(S) OF THE CABINET MEMBER –HOUSING – COUNCILLOR S SCOTTHORNE

(a)Revised Tenancy Agreement (Key Decision No. 649)

Members’ approval was sought for the following to adopt the revised tenancy agreement for Bassetlaw Council tenants.

The Agreement details the expectations and clauses that it expects tenants to comply with; and the obligation the Council has to maintaining properties. The current tenancy agreement has been in operation since 2006 and needs small revisions to account for legislation changes. The revised Tenancy Agreement was appended to the report.

The Director of Regeneration and Neighbourhoods advised that some further minor technical amendments have been required to the new Tenancy Agreement. The amendments have been checked by the Council Solicitor and are minor and deal with things such as simplifying the reference to solar panels.

Options, Risks and Reasons for Recommendations

To adopt the proposed revised tenancy agreement. This has been revised to align with current legislation and best practice.

To reject the proposal and retain the existing tenancy agreement. This has not been updated in12 years and needs to be brought up to date.

RESOLVED that the revised Tenancy Agreement be approved subject to any final amendments being signed off by the Portfolio Holder for Housing and thereafter can be implemented.

Other Decisions

107.REFFERAL(S)

(a)Joint Employee Council – 24th January 2018 – Minute No. 26(a) – Alcohol and Substance Abuse at Work Policy and Procedure

Members’ approval was sought to adopt the Alcohol and Substance Abuse at Work Policy and Procedure. The Policy and Procedure has been revised following consultation and was presented to the Joint Employee Council on 24th January 2018. The revised Policy and Procedure includes random and with cause alcohol and drug testing.

RESOLVED that the revised Alcohol and Substance Abuse at Work Policy and Procedure be adopted.

108.REPORT(S) OF THE CABINET MEMBER – POLICY, STRATEGY, COMMUNICATIONS – COUNCILLOR S GREAVES

(a)Living Wage Rate for 2018/19

Members’ approval was sought to adopt the revised Living Wage rate with effect from 1st April 2018. On 6th November 2017, the new Living Wage rate was announced at £8.75 per hour, up by 30p from £8.45 per hour.

Separate from the discretionary Living Wage, the Government introduced a mandatory Living Wage for workers aged 25 and over, set at £7.83 from April 2018, an increase of 33p per hour from the previous year.

Options, Risks and Reasons for Recommendations

Option 1 - To adopt the revised Living Wage rate in applying the Living Wage supplement, effective from 1 April 2018, as set out in this report. This will ensure the Council meets the requirements for maintaining accreditation in relation to its own staff.

Option 2 - Not to adopt the revised Living Wage rate. This will mean that the Council is not meeting the requirements for accreditation and may lead to that accreditation being withdrawn.

RESOLVED that the revised Living Wage rate of £8.75 per hour be adopted, with effect from 1st April 2018, as set out in the report.

109.REPORT(S) OF THE CABINET MEMBER – ECONOMIC DEVELOPMENT – COUNCILLOR J WHITE

(a)Local Plan Update

Members were presented with an update on the delivery of the Local Plan evidence base. A presentation of various background work to be reported to Cabinet on a regular basis, this report provided information on the:

  • Brownfield Land Register;
  • Annual Monitoring Report;
  • Five Year Housing Land Supply Position Statement;
  • Strategic Housing Market Assessment;
  • Local Plan Member Advisory Group.

The Head of Regeneration noted that the underachievement of a five year housing supply was not through the fault of the Council or officers and this was acknowledged by the Leader. Planning permissions are being granted however developers are not commencing construction on sites and many are using permissions to uplift land values. Officers are in regular contact with developers to try to get sites moving.

Members commented that they do not want to see the erosion of character in local villages. It was noted that thought has been given to this in the development of the Local Plan and Bassetlaw should be commended on the wide use of Neighbourhood Plans, especially in our rural communities.