Agenda and minutes

To approve as a correct record the Minutes of the meeting held on 10^th January 2013.

The Minutes of the meeting held on 10^th January 2013, were approved as a correct record and signed by the Chairman.

To receive from Members declarations as to disclosable pecuniary, non-disclosable pecuniary or non pecuniary interests in relation to any Agenda item. See Notes below.

Councillor Ms L A Duffy declared a non pecuniary interest in Minute No. 92 by virtue of her membership of Ramsey Town Council.

A copy of the current Notice of Executive Decisions is attached. Members are invited to comment as appropriate on any items contained therein.

The Panel considered and noted the current Notice of Executive Decisions (a copy of which is appended in the Minute Book). The Chairman reported that the item entitled ‘Land for Sale in Earith’ would be considered by the relevant Executive Councillors and would not be a matter for determination by the Cabinet.  The Business Plan for the Community Infrastructure Levy in 2013/14 would be presented to the Panel’s next meeting.

Councillors P G Mitchell and A H Williams indicated that they wished to withdraw this item from the Agenda. At the suggestion of the Chairman, it was agreed that the Panel’s informal discussions on budgetary savings, the capital programme and the suggestions which had been presented by representatives of the Liberal Democrat and UKIP groups would be considered at the Panel Meeting in April 2013. It was further agreed that issue of borrowing would also be considered as a separate item at that time.

RESOLVED

that the report by the Borrowing Working Group be deferred.

To consider a report by the Head of Financial Services prior to its consideration by the Cabinet.

A copy of Annex E – Controllable Budgets by Budget Holder has been circulated separately to the Agenda.

(All Members of the Council have been invited to attend for the discussion on this item).

(Councillors J D Ablewhite, Executive Leader and J A Gray, Executive Councillor for Resources were in attendance for this item).

With the aid of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Panel reviewed the Medium Term Plan (MTP) 2014 – 2018) and the Budget and level of Council Tax for 2013/14 in advance of their consideration by Cabinet and final determination by the Council. By way of introduction, Councillor Gray reminded the Panel of Executive Councillors’ four financial objectives relating to achieving a balanced budget by 2016, the level of reserves, securing the Council’s finances after the New Homes Bonus ceased and capital borrowing. He then thanked the Financial Services Division for producing the documents under consideration in unusually challenging and complex circumstances.

The Head of Financial Services provided Members with a detailed explanation of the contents of the report. Their attention was drawn to a revised version of Annex D, which had been amended following Government confirmation of this year’s financial settlement. He also reported that after the current budget round, in response to a proposal made by the Panel’s Borrowing Working Group, the implications of funding shorter life assets from revenue would be considered. The Executive Councillor also indicated that this was something in which the Cabinet had an interest. He then welcomed the Panel’s suggestions for savings, which had been made at its previous meetings. He explained that the Cabinet was working to develop a clear plan to reduce the gap between income and expenditure and that the Budget represented the best compromise between achieving a balanced financial position and maintaining services. The Panel then proceeded to examine each section of the report in turn.

A Member drew attention to the fact that the overall budget was 4.8% higher than the forecast outturn for 2012/13. This was attributed to multiple factors but inflation was a major contributor. The Panel was advised of the historical reasons for the provision for performance related pay and the risk provision for future years, which would in future be influenced by the pay review.

With regard to the level of Council Tax, a Co-opted Member questioned whether the Council should introduce the maximum increase allowed and commented on the public’s perception of such a decision. In response, the Panel was reminded that historically the Authority had a low Council Tax base, that significant financial pressures had been faced in recent years and that the Council continued to subsidise services from reserves. The Council’s most significant cost continued to be its employees but reducing this cost was not easy because there was anecdotal evidence that the Council’s rates of pay were no longer attractive in comparison with other authorities. The Executive Councillor stated that a freeze in Council Tax would affect the Council’s ability to deliver services to the public and to maintain standards and in this regard it was appropriate to seek to bring the Council Tax up to a  ...  view the full minutes text for item 92.

To consider a report by the Head of Financial Services prior to its consideration by the Cabinet.

(Councillor J A Gray, Executive Councillor for Resources, was in attendance for this item).

In accordance with its responsibility for scrutinising Treasury Management and with the assistance of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Panel reviewed the Treasury Management Policy for 2013/14 and the Treasury Management Strategy and Prudential Indicators for the same period.

In considering the contents of the Policy and Strategy and in response to questions raised by the Panel, Members were advised of the terms of the contract for the receipt of advice from an independent firm of Treasury Management Advisors and assured that the Treasury Management Advisory Group provided oversight of the Strategy and the actions taken under it. An explanation of the legal rules relating to the receipt of Council Tax, the onward payment of it to other precepting bodies and the use of the cash flow benefit that was created was also provided.

Having noted that a new element of the 2013/14 Policy and Strategy was the potential for the Council to provide loan finance to local organisations, Members were informed that this would enable the Council to make a margin on the loan, subject to adequate safeguards being in place. Although the Panel indicated their support for the suggestion that the District Council should investigate whether this might provide a contribution towards the savings that the Authority needed to find, Members were of the opinion that loans should only be made for the purpose of supporting Council services or creating benefit for the residents of Huntingdonshire. Whereupon, it was

RESOLVED

that the Cabinet be recommended to endorse the Treasury Management Policy and the Treasury Management Strategy and Prudential Indicators for 2012/13 for submission to the Council.

To consider the report of the Working Group.

(Councillors J D Ablewhite, Executive Leader, and J A Gray, Executive Councillor for Resources, were in attendance for this item).

With the assistance of a report by the Support Services Working Group (a copy of which is appended in the Minute Book) the Panel considered the findings following completion of the study, which had been undertaken to review the costs of the District Council’s Document Centre and to form a view on its efficiency and cost effectiveness. Members were reminded that the study had been selected to establish a trial methodology for use in future investigations and that the approach adopted had been largely successful. However, in future, the findings of any reviews by Internal Audit on a service area would be taken into account and consideration would be given to involving senior management in finalising any recommendations.

Having noted that the Working Group had been impressed with the way the Document Centre was run, Members were informed that there was scope to improve its financial performance. However, to do this, the Council would need to determine whether it had the appetite to undertake significant levels of investment to develop the service. It was explained that there was an opportunity to expand the printing operation to provide services to other organisations but this would require the production of detailed business and marketing plans for the service. In terms of the day to day operation, the Chairman drew attention to a number of specific recommendations relating to internal printing, design, post, mail handling and scanning services, which were designed to achieve further efficiencies and cost savings for the Centre. 

In considering the contents of the report, Executive Members recognised that there was clearly scope to improve the way the District Council handled its documentation internally. However a number of issues were raised in relation to the recommendations. These included the appropriateness of utilising taxpayers’ money to support competitive endeavours, the need to clarify the market in which the Council would seek to compete, how the challenges associated with competing with the private sector could be met particularly relating to public sector employment conditions and what weight should be given to the financial impact of the proposals in comparison with other priorities. The Executive Leader also suggested that when considering the recommendations the full range of options would be taken into account including technological advances and whether the Council should become a paperless authority. In this respect, it was reiterated that the Document Centre was not merely a printing facility and had a number of other functions.

In response to a suggestion regarding the electronic distribution of Council Tax bills, the Head of Financial Services explained that a contract was already in place for printing the booklet that accompanied the bills for the current year; however, this could be considered for 2014/15.

Having requested a report back on the Cabinet’s response to the Panel’s recommendations, it was

RESOLVED

that the report on the Document Centre be endorsed for submission to the Cabinet.  ...  view the full minutes text for item 94.

To consider with the aid of a report by the Head of Legal and Democratic Services, the programme of studies.

The Panel received and noted a report by the Head of Legal and Democratic Services (a copy of which is appended in the Minute Book) containing details of studies that were being undertaken by the Overview and Scrutiny Panels for Social and Environmental Well-Being. In response to comments by a Member regarding the recent discussions at Cabinet on the One Leisure Business Plan, the Executive Leader assured the Panel that the Cabinet always took into consideration the comments of the Overview and Scrutiny Panels during its deliberations.

It was agreed that the Panel would not pursue its study into the One Leisure business model.

To consider a report by the Head of Legal and Democratic Services, the programme of studies.

The Panel received and noted a report by the Head of Legal and Democratic Services (a copy of which is appended in the Minute Book) reviewing progress on matters that had previously been discussed. The Chairman reported that Councillor R B Howe and Mr R Eacott had volunteered to form a working group to assist with the development of a new Customer Services Strategy and would be meeting on 13^th February 2013 at 5pm. In the absence of any further volunteers, it was agreed that the Chairman should also join the group.

In terms of the item on the Community Infrastructure Levy, Members were informed that the Business Plan for 2013/14 would be submitted to their next meeting, which might address some of the issues which had been previously raised by Councillor M F Shellens.

To scrutinise decisions taken since the last meeting as set out in the Decision Digest and to raise any other matters for scrutiny that fall within the remit of the Panel. (TO FOLLOW).

The Panel considered and noted the latest edition of the Council’s Decision Digest (a copy of which is appended in the Minute Book).