D R A F T

CABINET

Minutes of the Meeting held on Thursday, 9th February 2017 at Retford Town Hall

Present:Councillor S A Greaves (Chair),

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

Advisory Member:Councillor H M Brand.

Liaison Members:Councillors H Burton, K H Isardand T Taylor.

Officers:D Armiger, S Brown, K Childs, J Hamilton,D Hill,L Prime,N Taylor, R Theakstone andS Wormald.

(The meeting opened at 6.30pm.)

(The Chair welcomed all to the meeting, especially Councillor H Burton after his absence,and the Fire Evacuation Procedure was read out. Members were reminded about the correct use of the speaker system and, as no members of the press or public were present, there were no request to film/record the meeting.)

99.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.

100.APOLOGIES FOR ABSENCE

Apologies for absence were received from Councillors S Fielding andS Scotthorne.

101.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.

102.MINUTES OF THE MEETINGS HELD ON 6THDECEMBER 2016 AND 10TH JANUARY 2017

RESOLVED that the Minutes of the meetings held on 6thDecember 2016and 10th January 2017 be approved.

103.MINUTES FOR ACTION AND IMPLEMENTATION

RESOLVED that the Minutes for Action and Implementation be received.

104.OUTSTANDING MINUTES LIST

A Laision Member enquired as to progress regarding Outstanding Minute No. 117(a) – Community Infrastructure Levy – local monies (Key Decision No. 493), and referred to the inclusion of villages when considering projects for CIL monies. The Cabinet Member for Regeneration replied that the Council is working with parish councils through the Neighbourhood Planning process regarding funding for local projects. The Director of Regeneration and Neighbourhoods added that a report on this item is scheduled for the 14th March 2017 Cabinet Meeting.

RESOLVED that the Outstanding Minutes List be received.

105.FORWARD PLAN

A revised Forward Plan was tabled at the meeting. Four additional Key Decisions had been added to the 14th March 2017 Cabinet as they were deemed to be urgent; these had been cleared with the Chair of the Overview and Scrutiny Committee in respect of the waive of publicity notice.

With regard to Key Decision No. 632 – Fracking on Council Land, a Liaison Member asked whether this would refer solely to “fracking” or would include other forms of extraction and, if so, would an alternative title be preferable as the term “fracking” is highly emotive and refers to shale gas extraction. The Leader replied that the item refers to all types of unconventional gas extraction and that a more suitable title would be appropriate.

RESOLVED that the revised Forward Plan, as tabled at the meeting, be approved, subject to the amendment of the title with regard to Key Decision No. 632.

SECTION A – ITEMS FOR DISCUSSION IN PUBLIC

Key Decisions

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

(a)Budget Monitoring and Capital Programme Update Report to 31st December 2016 (Key Decision No. 624)

Members were presented with:

  • The spending position for the period 1st April to 31st December 2016 for the Council’s General Fund, Housing Revenue and Capital Programme.
  • Income generation on fees and charges.
  • 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 2016.

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

A Liaison Member enquired as to the outstanding amount due from the Iceland Bank investments. It was reported that out of the £8m invested, only approximately £200,000 is outstanding, but this would be confirmed.

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 2017.

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.

The report is for the third quarter of the year, and current indications are that there will be a budget underspend of (£0.030m) in year for General Fund and an underspend of (£0.033m) in year for HRA. 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 have led to yet another challenging budget for 2016/17 and this is forecast to continue. A total of £0.587m was removed from the 2015/16 base budget to produce the 2016/17 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 ensure appropriate action is 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 central Government is 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 2016/17Capital Programme totalling £0.427m, as detailed in Appendix 3, be approved.
  3. The ‘other variations’ to the 2016/17 Capital Programme totalling £1.812m, as detailed in Appendix 3, be approved.
  4. The ‘reprofiling’ to the 2016/17 Capital Programme totalling (£0.464m) be approved.
  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 2016, 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)General Fund Revenue Budget 2017/18 to 2019/20 (Key Decision No. 609)

Members’ approval was sought for the General Fund Budget proposals for 2017/18 for recommendation to full Council on 7th March 2017. It was noted that a 1.9% Council Tax increase for Bassetlaw District Council 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
  • 2017/18, 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
  • Budget consultation, including the business community
  • Future issues and prospects

The Head of Finance and Property (Section 151 Officer) reported that it is becoming increasingly difficult to balance the budget, particularly with having to find £1.6m savings over the next two years. The Authority will have to find innovative ways to save money and the process for next year’s budget will start in nine months’ time.

The Advisory Member enquired as to whether the inclusion of Water Level Management Board levies could be included in the Council Tax leaflet, to which the Director of Finance and Property replied that what is included in the Council Tax leaflet is prescribed by legislation.

Members were reminded that any unspent community grant monies will not be carried forward to the following year.

Options, Risks and Reasons for Recommendations

The 2017/18 budget process has been planned and tightly controlled throughout the financial year, thus enabling managers and Members the opportunity to consider a number of work programmes to deliver the required £0.719m savings target for 2017/18 with the minimum amount of disruption.

RESOLVED that the following be agreed and recommended to full Council on 7th March 2017 for approval:

  1. The Budget for 2017/18 and future years, together with the associated comments from Audit and Risk Scrutiny Committee on 7th February 2017 and Cabinet on 9th February 2017, be considered.
  2. A Council Tax increase of 1.9% for 2017/18 be recommended.
  3. The declaration of a £1.35m surplus on the Collection Fund for 2017/18, as summarised in Paragraph 3.5 and detailed in Appendix 3 of the report, be noted.
  4. Authority be delegated to the Cabinet Member for Finance for addressing any issues arising from the Business Ratepayers meeting held on 13th February 2017.
  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, especially the Cabinet Member for Finance and Section 151 Officer.

(c)General Fund Capital Programme 2017/18 to 2021/22 (Key Decision No. 610)

Members’ approval was sought for the General Fund Capital Programme for 2017/18 to 2021/22 for recommendation to full Council on 7th March 2017.

The report outlined the following, on which the Cabinet Member for Finance summarised points:

  • Schemes already approved as part of the 2016/17 budget setting process
  • Schemes reprofiled from 2016/17
  • Adjustments to schemes already approved – Disabled Facilities Grant
  • Capital funding of new schemes
  • New Homes Bonus
  • Capital receipts
  • External grants
  • Prudential borrowing
  • Capital prioritisation process
  • Summary of Capital Programme 2017-2022

Liaison Members enquired as to funding in respect of flood alleviation schemes and the concept of the Bassetlaw Sports Hub. It was explained that this is at the scoping stage and involves broad discussions to develop the sporting infrastructure, and will not necessarily be a facility in a particular location, but is a Government initiative aspiring to the needs of young people.

The Leader of the Council commented that the Government’s mandate that the gap in social care is to be funded through an increase in Council Tax is “atrocious”.

Options, Risks and Reasons for Recommendations

Members can decide what schemes to include or exclude. Any schemes which include external finance will have implications for those organisations.

It is imperative that capital schemes are seen to be delivered on time and to budget. Resources are scarce and therefore capital expenditure is approved for three specific reasons: there is a demonstrable need for the project; it meets the strategic objectives of the Council; and the benefits are clearly measurable. It is therefore important that expectations from Members and the public are realistic when approving timescales, and determining that project outcomes are key to the successful delivery of projects.

RESOLVED that the following be agreed and recommended to full Council on 7th March 2017 for approval:

  1. The Capital Programme for 2017/18 of £3.207m, as detailed in Appendix A of the report.
  2. The indicative Capital Programme for 2018/19 to 2021/22 of £7.569m, as detailed in Appendix A of the report.

(d)Treasury Management Policy and Strategy 2017/18 to 2019/20 (Key Decision No. 611)

Members’ approval was sought for the Treasury Management Strategy, Borrowing Strategy, Investment Strategy, Minimum Revenue Provision Policy and Prudential Indicators, updated in accordance with latest guidance, for recommendation to full Council on 7th March 2017.

The following documents were appended to the report:

  • Treasury Management Strategy 2017/18 to 2019/20, including the Capital Prudential Indicators, the Borrowing Strategy and the Annual Investment Strategy
  • Capital Prudential and Treasury Indicators 2017/18-2019/20 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 Head of Finance and Property (and Section 151 Officer) added that it is a statutory requirement under Section 33 of the Local Government Finance Act 1992 for the Council to produce a balanced budget. Section 32 requires the local authority to calculate its budget requirement for each financial year to include the revenue costs that flow from capital financing decisions and, therefore, increases in capital expenditure must be limited to a level that is affordable for the foreseeable future.

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 Minimum Revenue Provision Statement, and to approve the Prudential Indicators.

To not approve these policies would contravene the requirements of both legislation and good practice. In addition, the KPMG External Auditors may pass comment on their Report “to those charged with governance (ISA260)”.

RESOLVED that the following be agreed and recommended to full Council on 7thMarch 2017 for approval:

  1. The Treasury Management Strategy 2017/18 to 2019/20, incorporating the Borrowing Strategy and the Annual Investment Strategy, as detailed in Appendix 1 of the report.
  2. The Prudential Indicators and Limits for 2017/18 to 2019/20, 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.

(e)Capital Investment Strategy 2017/18 to 2022/22 (Key Decision No. 612)

Members’ approval was sought for the Capital Investment Strategy 2017/18 to 2021/22, which was appended to the report, for recommendation to full Council on 7th March 2017.

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 which sets out how capital resources will be deployed to meet the priorities of the Council.

RESOLVED that the Capital Investment Strategy 2017/18 to 2021/22 be agreed and recommended to full Council on 7th March 2017 for approval.

(f)Property Asset Management Plan 2017/18 to 2021/22 (Key Decision No. 613)

Members’ approval was sought for the 2017/18 update to the Property Asset Management Plan 2015/16 to 2019/20, which was appended to the report, for recommendation to full Council on 7th March 2017, and which sets out how the Council’s property portfolio will contribute to the Council’s main aims/key priorities identified in the Corporate Plan.

The update detailed:

  • Co-location of services
  • Maintaining assets, including condition surveys
  • Investment portfolio review
  • Property disposals

During 2017/18, the Asset Management Plan will be subject to a more robust review and the outcome of the review will be reported to Cabinet.

Options, Risks and Reasons for Recommendations

The Asset Management Plan is a key document that sets out how the Council effectively manages its assets to support the efficient delivery of its priorities and objectives.

RESOLVED that the Property Asset Management Plan 2017/18 Update be recommended for approval to full Council on 7th March 2017.

(g)The Regal, Carlton Road, Worksop (Key Decision No. 619)

Members were presented with options in respect of the future of The Regal, after being apprised of the background, ongoing discussions and the current position.

A recent stock condition survey of The Regal estimates that between £850,000 and £1m is required to bring the premises back into a good state of repair. The directors of Bassetlaw Arts and Entertainment have prepared a business plan based on the property condition survey undertaken by the Council and an earlier feasibility study funded by the East Midlands Development Agency (EMDA). Their business plan identifies short, medium and long-term priorities.

Should the Council wish to sell The Regal for a nominal sum, covenants will be imposed into the conditions of the sale that will restrict the use of the building. Additionally, if at some point in time the owners wish to either demolish the building for redevelopment purposes or change its use to commercial or residential use, the Council would be entitled to claw back a percentage of the enhanced value.

The Cabinet Member for Finance added that the Ward Members have been consulted and no objections to the proposal have been raised. Members and officers commended the proposals as a positive way forward.

Options, Risks and Reasons for Recommendations

Option One – To take back control of the Regal and mothball the building. This will not address the issues and is not recommended on the basis that the Council would continue to incur vacant property management costs. The condition of the building would continue to deteriorate and become potentially subject to vandalism and break-ins.

Option Two – To grant a long lease of the building to the directors of Bassetlaw Arts and Entertainment

Option Three – To sell the freehold of The Regal to Bassetlaw Arts and Entertainment.

The option to dispose of The Regal subject to the covenants detailed in paragraph 4.3 of the report is the recommended option in that the future use of the building can be controlled through the proposed covenants. An outright sale of the building divests the Council of any further landlord responsibilities for the building.

RESOLVED that the Property Manager be authorised to dispose of The Regal to the directors of Bassetlaw Arts and Entertainment on terms to be agreed.

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

(a)Quarter 2 2016/17 Performance (Key Decision No. 597)

Members were presented with the Quarter 2 performance for 2016/17 which provided an update on the delivery of the Corporate Plan and the performance of a suite of key performance indicators. Members were asked to confirm what action is being taken to address performance that is currently off target and to identify anyrequired additional action.