Agenda and minutes

(Director of Governance) To declare interests in any item on this agenda.

(a)          Pursuant to the Council’s Code of Member Conduct, Councillor S Stavrou  declared a personal interest in agenda item 5, Invest to Save proposal – Hillhouse Masterplanning Exercise by virtue of being a Waltham Abbey Town Councillor. The Councillor had determined that her interest was not prejudicial and would remain in the meeting for the consideration of the issue.

(b)          Pursuant to the Council’s Code of Member Conduct, Councillor C Whitbread   declared a personal interest in agenda item 11, Fees and Charges 2016/17. The Councillor had determined that his interest was prejudicial and would leave the meeting for the consideration of Lettings Agencies and Property Managers Fees and Charges of this item.

To confirm the minutes of the last meeting of the Committee held on 17 September 2015 (previously circulated at Cabinet 8 October 2015).

Resolved:

(1)       That the minutes of the meeting held on 17 September 2015 be taken as read and signed by the Chairman as a correct record.

(Senior Performance Management Officer) To consider the attached report (FPM-015-2015/16).

The Director of Resources presented a report on the Quarter 2, Key Performance Indicators 2015/16.

The Director of Resources reported that the Council was required to make arrangements to secure continuous improvement in the way in which its functions and services were exercised, whilst having regard to a combination of economy, efficiency and effectiveness. As part of the duty to secure continuous improvement, a range of Key Performance Indicators (KPI) relevant to the Council’s service priorities and key objectives was adopted each year and performance against all of the KPIs was reviewed on a quarterly basis.

A range of thirty-six Key Performance Indicators (KPI) was adopted for 2015/16. The KPIs were important to the improvement of the Council’s services and comprise a combination of former statutory indicators and locally determined performance measures. The aim of the KPIs was to direct improvement effort towards services, the national priorities and local challenges arising from the social, economic and environmental context of the District.

Progress in respect of all the KPIs was reviewed by Management Board and Overview and Scrutiny at the conclusion of each quarter, and service Directors reviewed KPI performance with the relevant Portfolio Holder(s) on an on-going basis throughout the year. The Select Committees were each responsible for the review of quarterly performance against specific KPIs within their areas of responsibility.

The position with regard to the achievement of target performance for the KPIs at the end of the second quarter (30 September 2015) was as follows:

(a)          26 (72%) indicators achieved target at the end of Q2;

(b)          10 (28%) indicators did not achieve target at the end of Q2; although 1 (10%) of these KPIs performed within the agreed tolerance for the indicator; and

(c)          27 (75%) of indicators were currently anticipated to achieve the cumulative year-end target. 

The Director of Resources advised that RES001 – Sickness absence had reduced compared to this time last year and further training for Managers had been arranged in relation to stress and mental Health awareness, which had been highlighted by further investigation into this KPI. RES002 – Invoice payments also looked like it would reach its target as well.

The Committee was asked to note the second quarter of 2015/16 in relation to the KPIs for 2015/16.

Councillor D Stallan asked whether there was any reason for the slippage in KPI RES002 – Invoices payments. The Director of Resources advised that there was no one reason, although factors such as annual leave may of possibly impacted the figure but only for a short period and was quickly recovered. The Assistant Director of Accountancy also monitored this KPI monthly and the introduction of e-invoices should also improve the performance.

Councillor A Lion advised that he had concerns for NEI011 – Commercial Rent Arrears. The Director of Resources advised that the figure was slightly behind, although it was improving and if required further details could be obtained from estates.

Resolved:

(1)        That the performance in respect of the second quarter of 2015/16  ...  view the full minutes text for item 30.

(Director of Resources) To consider the attached report (FPM-016-2015/16)

The Director of Resources presented a report on Invest to Save proposals, which were schemes that would reduce the Continuing Service Budget (CSB) in future years.

The Director of Resources advised that in setting the budget for 2015/16, the Council decided that, as the balance on the General Fund Reserve exceeded the minimum requirement and further savings were required, £0.5 million should be transferred from the General Fund Reserve into an Invest to Save earmarked reserve. A further  three proposals had been brought forward which included Rental Loans and Landlord Deposits for Homeless Applicants, Hillhouse Masterplanning Exercise and to appoint a consultant to review the management of off street car parks by the North Essex Parking Partnership (NEPP). It was appropriate at this stage to seek Member approval for the proposals and give Members the opportunity to put forward additional or alternative proposals.

1.         Rental Loans and Landlord Deposits for Homeless Applicants

The Assistant Director (Housing Operations) advised that Management Board had asked him to make a brief presentation to Members in order to explain the increased pressures on the Council due to homelessness.  It was reported that the Council’s Hostel at Norway House was full, along with Hemnall House, Epping and 20 Housing Association leasing direct properties for homeless applicants.  London Boroughs were now placing their homeless applicants in our District and paying private landlords incentives of between £1,000 to £3,000 which had made it difficult for the Homelessness Prevention Team to place our own homeless applicants in the private rented sector accommodation and Private landlords were now reluctant to accept Epping Forest Housing Aid Scheme (EFHAS) damage deposit bonds.  The numbers in bed and breakfast accommodation was also increasing and the Council’s housing stock was being increasingly used to house homeless applicants on non-secure tenancies.  The Council also had very few of its own properties becoming available to let.  Finally, the further risk to the Council was explained, whereby we were yet to hear from the Government if any grant would be provided next year for the Homelessness Prevention Service.

The invest to save proposal was for £90,000 over a 3 year period (£30,000 per year) for rental loans for homeless applicants and landlord deposits for homeless applicants where there were larger households.  This would assist the Council in trying to secure private rented sector accommodation in these cases.  Applicants would repay the loans on interest free basis over a 24 month period, consequently recycling the budget and enabling others to benefit from the Scheme in the future.

Councillor J Philip was concerned about the proportion of loans that were going to be received back. The Assistant Director of Housing Operations advised that recovery was very disappointing and around 10%. Various methods were used to recover the loans but the general nature of a homeless applicant meant that they moved around a lot and were very hard to trace.

Councillor D Stallan advised that as the Portfolio Holder for Housing, he was looking into other various solutions for  ...  view the full minutes text for item 31.

(Director of Communities) To consider the attached report (FPM-017-2015/16).

The Assistant Director of Housing Operations presented a report on the funding of two Citizens Advice Bureau (CAB) Debt Advisors following the CAB District Manager making a presentation to the Grant Aid Review Task and Finish Panel on 29 October 2015.

The Assistant Director of Housing Operations advised that the Cabinet Committee had agreed to a moratorium on spending from the HRA’s Housing Improvements and Service Enhancements Fund for 2016/2017 and agreed in principle that £42,000 could be used in 2016/2017 to extend the funding of the Citizens Advice Bureau’s (CAB) two existing Debt Advisors for a further year from 1 April 2016 subject to the CAB Manager attending an appropriate meeting, in order to explain the use and outcomes of all the Council’s grant funding received by the CAB.

The CAB had provided the Grant Aid Review Task and Finish Panel with a report setting out the work of the two Debt advisors, which showed that during the first 6 months of the financial year(2015/16) that the advisors had managed debts of around £713,000 and assisted 304 clients to date with around 32% (97) of these clients being Council tenants.  The CAB was required under the agreement to have one Debt Advisor based at the Limes Centre, Chigwell for one half day each week, which had been extended to 2 half days per week.  The CAB had reported that around 120 (40%) of the clients assisted were first seen at the Limes Centre during the 6 month period and had made repeat visits. There were also other drop-in clients that could not be predicted or controlled, which were seen for a much lesser period of time.  

The Cabinet Committee commented on the responsibilities that were now falling upon the Council and that the Council was the largest contributor of funding to the CAB. The Cabinet Committee agreed that future funding would be reviewed and that another presentation would be required in 2016.

Recommended:

1.         That an exception (already agreed in principle by the Cabinet Committee) be made to the moratorium for 2016/17 on the HRA service improvements and service enhancements fund and £42,000 be used from the Fund in order to extend the funding of the Citizens Advice Bureau (CAB) two existing Debt Advisors for a further year from 1 April 2016 subject to the following conditions;

(a)  that the CAB’s District Manager attends an appropriate meeting of the Overview and Scrutiny Committee in order to make a presentation on the use and outcomes of all of the Council’s Grant Funding to the CAB in 2016/17; and

(b)  That a review of the funding be undertaken in 2016.

Reasons for Decision:

To agree to extend the funding of the CAB’s two existing Debt Advisors for a further year from 1 April 2016, in order to provide support to residents with personal budgeting and debt advice  

Other Options Considered and Rejected:

(a) Not to agree to extend the funding of the CAB’s two existing Debt Advisors for a further  ...  view the full minutes text for item 32.

(Director of Resources) To consider the attached report (FPM-018-2015/16)

The Director of Resources presented a report on the mid-year Treasury Management and Prudential Indicators 2015/16.

The Director of Resources advised that the mid-year treasury report was a requirement of the CIPFA Code of Practice on Treasury Management and that the report covered the treasury activity for the first half of the financial year 2015/16. The Council had continued to finance all capital expenditure from within internal resources although borrowing was likely to be required to finance other capital developments. The original estimate, along with expenditure to month 6 (30 September 2015) was £14.222m, which included the land purchase at Langston Road for which Council agreed a supplementary capital estimate. The original Capital Programme for the three years to 2017/18 totalled £72.0m and was fully funded. It had been predicted that at the end of 2017/18 there would be still £3.0m available in Capital Receipts and £2.0m in the Major Repairs Reserve.

The Director of Resources confirmed that there were no breaches of the Authorised Limit (£230m), the Operational Boundary (£219m) and the Maturity Structure of Fixed Rate Borrowing during the period to 30 September 2015. It was anticipated that all borrowing would be repaid on maturity and the capital programme would be financed through internal resources, although the Council had intended to borrow later in 2016/17, to finance approved capital projects such as the Langston Road Retail Development.

The Treasury position as of 30 September 2015 was that the short term investments of £45.5m were in fixed rates, £2.6m in variable rates and £5.0m in long term investments. The Semi-annual Treasury Outturn Report 2015/16 reported that the counterparty credit ratings for 30 September 2015 remained  above target with the value weighted average credit risk score A+.

The Director of Resources advised that the Council had received a further dividend from the administrators of the Heritable Bank which had taken total dividends so far to 98% of the value of deposits. No further update had been received from Ernst and Young.

Resolved:

(1)        That the management of the risks associated with the Council’s Treasury Management for the first half of 2015/2016 be noted.

Reasons for Decision:

The report was presented for noting as scrutiny was provided by the Audit and Governance Committee who made recommendations to this Committee when necessary.

Other Options Considered and Rejected:

Members could ask for additional information about the CIPFA Codes or the Prudential Indicators.

(Director of Resources) To consider the attached report (FPM-019-2015/16).

The Director of Resources presented a report on the External Auditor’s Annual Audit Letter, which would be presented to the Audit and Governance Committee on 30 November 2015. The report had been placed on this agenda to ensure that Members of this Committee were aware of the key issues raised.

The Director of Resources advised that the Annual Audit Letter (AAL) confirmed that the Financial Statements gave a true and fair view of the Council’s financial affairs and that the Annual Governance Statement contained in the Financial Statements was not misleading or inconsistent with other information. The external auditors were able to satisfy themselves that the Council had proper arrangements in place to secure economy, efficiency and effectiveness in its use of resources, which enabled them to issue an unqualified value for money conclusion. The AAL confirmed that the auditors had not needed to exercise their statutory powers and that they had no matters to report. An audit certificate to close the audit for the year ended 31 March 2015 had been issued on 30 September 2015.

Resolved:

(1)        That the External Auditor’s Annual Audit Letter be noted.

Reasons for Decision:

To ensure that Members were informed of any significant issues arising from the annual audit.

Other Options Considered and Rejected:

The report was for noting, no specific actions were proposed.

(Director of Resources) To consider the attached report (FPM-020-2015/16).

The Director of Resources presented the quarterly Financial Monitoring report for the period 1 April to September 2015, which provided a comparison between the original profiled budgets for the period ended 30 September 2015 and the actual expenditure or income. The report provided details of the revenue budgets for both the Continuing Services Budget and the District Development Fund and the capital budgets including details of major capital schemes.

The Cabinet Committee noted that the salaries budget showed an underspend of £287,000 or 2.7%. A vacancy allowance of 1.5% had been allowed for but clearly vacancies were running at a rather higher level at the moment within all directorates (except Chief Executive) and showed a degree of underspend. Investment interest levels were below expectations at Month 6 by £45,000 and this was likely to continue as the second half of the financial year should see the start of the construction of the retail park which would deplete the cash balances further.

The Resources and Neighbourhoods Directorates had the largest underspend of £114,000 and £98,000 respectively. The former related mainly to Revenues, Benefits and to a lesser degree Accountancy and the latter to Grounds Maintenance and Estates.

The Director of Resources reported that the non-domestic rate estimated at the end of September 2015 had reduced by £576,602 and as the Council retained the 40% of gains and losses it would mean a reduction in funding of £230,641. Cash Collections was £19,093,976 and payments out were £17,076,138, which meant that the Council held £2,017,838 of cash and so the Council’s overall cash position was benefitting from the effective collection of non-domestic rates.

Within the Neighbourhoods Directorate the Public Hire licence income was in line with expectations but other licensing was below expectations and Income from MOT’s carried out by Fleet Operations was £3,000 above expectations. The Car Parking income was £41,000 below the estimate with the telephone payments being two months behind and accounting for £12,000 of the shortfall. Also the Season ticket income was £8,000 down. Local Land Charge income was £14,000 below expectations because of a reduction in searches undertaken and the waste management contract recycling credits were behind expectations due to late billing.

Within the Governance Directorate Development Control income was £179,000 higher than the budget to date and pre-application charges were £12,000 higher. Building Control income was £31,000 higher than the budgeted with the ring-fenced account showing an in-year surplus of £51,000.

Within Communities the Housing Repairs Fund showed an underspend of £314,000. There was also a significant variance on HRA Special Services which relate partly to heating and lighting and some savings were also due in part to the work undertaken by Smith Bellerby.

There were three projects included on the Major Capital Schemes schedule which were related to the Museum redevelopment, the House Building package 1 and the Epping Forest Shopping Park.

Resolved:

(1)        That the Quarterly Finance Monitoring Report for the period 1 April to 30 September 2015 be noted.

Reasons for Decision:

To note  ...  view the full minutes text for item 35.

(Director of Communities) To consider the attached report (FPM-021-2015/16).

The Director of Communities presented a report on a proposed Charging Plan for Housing Related Support Services covering the Council’s Careline Service, Scheme Management Service and Intensive Housing Management Support.

The Director of Communities advised that although the Careline Service currently broke even when the income was compared to the expenditure, there was currently a deficit on the income and expenditure for the Council’s Scheme Management Service.  The Council was dependent on funding for Housing Related Support (HRS) services from Essex County Council (ECC), which was reducing in 2016/17 and was likely to reduce further in future years. Therefore the Cabinet had previously agreed that the Housing Portfolio Holder should come forward with a Charging Plan on how HRS charges could be increased each year from April 2016, until the cost of the Scheme Management Service became self-funded, taking account of any annual reductions in HRS funding from Essex County Council. Both the Tenants and Leaseholders Federation and the Resources Select Committee had been consulted and supported the proposals suggested.

The Cabinet Committee considered the current deficit for providing the Scheme Management Service which was approximately £50,250 per annum and the plan put forward to recover the debt over 10 years. The Cabinet Committee had concerns over the time period for the recovery of costs and that the service would need to be self financing sooner and felt that a target of 5 years would be more appropriate, without any cap on the maximum percentage increase on charges made to tenants but to look at the figure increase instead.

The Housing Portfolio Holder commented that further reductions in ECC funding were not known and that if/when further reductions were made this, would also increase the cost of the service to residents.

The Leader asked what the future was for the service. The Director of Communities advised that a report would be brought forward to the Housing Select Committee in 2016 on options for the future of the service including the possibility of providing the service to non Council residents.

Recommended:

(1)        That the separate charges for the Council’s Careline Service, Scheme Management Service and Intensive Housing Management Support be increased annually in accordance with the following principles:

(a)   The expected amount of reduction in ECC funding for the forthcoming year should be added to the current service deficit (or subtracted from the current service surplus) - this is the total deficit/surplus to be recovered/repaid;

(b)   The deficit for the Scheme Management Service should be recovered over a 5 year period and should therefore be divided by the number of years remaining between April 2016 and April 2021 - this is the service deficit to be recovered in the forthcoming year;

(c)   Any deficit/surplus for the Careline Service should be recovered/repaid in the following year - this is the service deficit/surplus to be recovered/repaid in the forthcoming year;

(d)   The prevailing level of annual pay increases, as calculated by the Office of National Statistics (ONS), should then be applied to  ...  view the full minutes text for item 36.

(Director of Resources) To consider the attached report (FPM-022-2015/16).

The Director of Resources presented a report on the fees and charges to be levied by the Council in 2016/17 and what, if any scope there was to increase particular charges.

The Director of Resources advised that the Medium Term Financial Strategy identified the need to find savings of £1m over the four year period with £150,000 falling in 2016/17. The traditional use of the September Retail Prices Index (RPI) or Consumer Prices Index (CPI) as a guide for inflation had been replaced by the labour inflation rate because of employee costs representing the largest element of expenses when carrying out the services for which a charge was made. The latest figure available was 2.8% and this had been used as a guide for any proposed increase in fees and charges.

The Director of Resources stated that it had been proposed to increase the fees and charges within the Communities Directorate by rounding up charges to the nearest 10 pence, 50 pence or pound, with the exception of charges already agreed earlier in the agenda in relation to Housing Related Support Services.  A review of museum related fees and charges would be reported to Cabinet in February 2016 in readiness for the opening of the Museum in March 2016 and following a discussion at the Resources Select Committee about the hire charges at The Limes Centre, Registered Charities had been moved into Scale 1, although as there were none currently using the facilities there would be no loss of rental income to the Council. The bed and breakfast accommodation rates for 2016/17 were also not included because of a competitive tender process being completed and a charge of £26.20 for Care gardening service had been applied and for benefit recipients the first visit would be free of charge.

Within the Governance Directorate, the situation regarding Land Charge income was still very uncertain and the fee income had dwindled, although it was not proposed to increase the fees as this might drive more people to do personal searches which were free. The Development Control fee levels were controlled by Central Government and the levels of income were somewhat dependant on the economic climate and the number and size of planning applications. With regard to pre-application charges that applied to major applications, income was buoyant at the moment and the budget had been exceeded substantially. The work required to generate the fee was quite labour intensive and it was felt that an increase was appropriate. The Building Control Fee levels were felt to be reasonable and income levels had improved.

Within the Neighbourhoods Directorate the MOT income was subject to a maximum charge set by the Vehicle Operating Service Agency (VOSA) which was currently £54.85 and the Council’s fee was set at £49.00. With regard to Car Parking charges, the recent changes to the fee structure had only just come into effect and it was a little premature to review these again. From 1 October 2015 there was a change to  ...  view the full minutes text for item 37.

Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 25 of the Council Procedure Rules contained in the Constitution require that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

In accordance with Operational Standing Order 6 (non-executive bodies), any item raised by a non-member shall require the support of a member of the Committee concerned and the Chairman of that Committee. Two weeks’ notice of non-urgent items is required.

Resolved:

(1)        That, in accordance with Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs (6) and (24) of the Council Procedure Rules, the Chairman had permitted the following item of urgent business to be considered following the publication of the agenda:

(a)        Draft General Fund CSB and DDF lists and Savings Update.

(Director of Resources) To consider the attcahed report (FPM-023-2015/16).

The Director of Resources presented a report on the first draft Continuing Services Budget (CSB) and District Development  Fund (DDF) schedules for 2016/17 and the savings achieved so far.

The Director of  Resources stated that the Financial Issues Paper was considered by the Cabinet Committee on 20 July 2015, which highlighted a number of financial uncertainties and risks facing the Authority including the reductions in Central Government funding, Retention of Business Rates, Welfare reform and the Leisure Management Contract Renewal.

The Medium Term Financial Strategy (MTFS), which formed part of the Financial Issues Paper, identified that savings of around £1 million, which were required over the forecast period. The savings required in 2016/17 were identified at £150,000 after savings of £410,000 had been taken into account. Since then there had been a number of other items identified which included an increase to the employers national insurance contributions of approximately £0.5 million from 1 April 2016 and a lost investment income as a result of the Construction of the Shopping Park, St Johns Development, Oakwood Hill and the North Weald Housing depot construction estimated at £200,000 over the next two years. Although offsetting this was the Grant income from Central Government, given to Local Authorities in recognition of the lost Business Rates due to the various government led reliefs given to businesses, which was expected to be around £700,000 in 2015/16.

The current contract for the North Weald Market ends on the 31 December 2015 and it was unclear what would be replacing it at the moment but whatever the outcome was, it was likely to affect the CSB in some way.

Resolved:

(1)        That the draft of the Continuing Services Budget and District Development Fund schedules for 2016/17 be noted; and

(2)        That the savings achieved to date as part of the 2016/17 budget process be noted.

Reasons for Decision:

Members were asked to note the first draft of these schedules and make comments as appropriate.

Other options Considered and Rejected:

No other options applicable.