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 C Whitbread   declared a personal interest in agenda item 9, Fees and Charges 2015/16. 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  18 September 2014 (previously circulated).

Resolved:

(1)          That the minutes of the meeting held on 18 September 2014 be taken as read and signed by the Chairman as a correct record.

(Director of Governance) To consider the attached report (FPM-011-2014/15).

The Director of Resources presented a report on the Quarter 2, Key Performance Indicators 2014/15.

The Director of Resources reported that pursuant to the Local Government Act 1999, the Council was required to make arrangements to secure continuous improvement in the way, in which its functions and services were exercised, having regard to a combination of economy, efficiency and effectiveness. As part of the Council’s approach to the continuous improvement duty, a range of Key Performance Indicators (KPI) relevant to the authority’s services and key objectives were adopted each year. Performance against the KPIs was reviewed on a quarterly basis.

A range of thirty-six Key Performance Indicators (KPI) for 2014/15 were adopted by the Committee in March 2014. The KPIs were important to the improvement of the Council’s services and the achievement of its key objectives and comprised a combination of former statutory indicators and locally determined performance measures. The aim of the KPIs were to direct improvement effort towards services, the national priorities and local challenges arising from the social, economic and environmental context of the District, that were the focus of the key objectives.

Progress in respect of each of the KPIs were reviewed by the relevant Portfolio Holder, Management Board, and Overview and Scrutiny at the conclusion of each quarter. In order to enhance the value of the on-going review of KPI performance, no indicators were subject to scrutiny or performance reporting at year-end only and were now the responsibility of the relevant scrutiny panel.

The overall position with regard to the achievement of target performance for all of the KPIs at the end of 30 September 2014 were that 25 (69%) indicators had achieved the cumulative second quarter target, 11 (30%) indicators did not achieve the cumulative second-quarter target although 2 (5%) of these performed within the agreed tolerance for the indicator and 30 (83%) indicators were currently anticipated to achieve the cumulative year-end target. 

The committee were asked to note the second quarter performance in relation to the KPIs for 2014/15.

The Director of Neighbourhoods advised that the Finance Performance Management Scrutiny Panel held on Tuesday 11 November 2014 had not put forward any further considerations for the Cabinet Committee.

Resolved:

(1)        That the performance in respect of the second quarter of 2014/15 in relation to the Key Performance Indicators be noted.

Reasons for Decision:

The KPIs provide an opportunity for the Council to focus attention on how specific areas for improvement would be addressed, and how opportunities would be exploited and better services and outcomes delivered.

A number of KPIs were used as performance measures for the authority’s key objectives. It was important that relevant performance management processes were in place to review and monitor performance against key objectives and indicators, to ensure their continued achievability and relevance, and to identify and implement appropriate corrective action in areas of slippage or under-performance.

Other Options Considered and Rejected:

No other options were appropriate in this respect. Failure to review and monitor KPI performance  ...  view the full minutes text for item 26.

(Director of Resources) To consider the attached report (FPM-012-2014/15).

The Director of Resources presented a report on the Annual Audit Letter, which would be presented to the Audit and Governance Committee on 24 November 2014.

The Director of Resources stated that the Annual Audit Letter had confirmed that the Financial Statements gave a true and fair view of the Council’s financial affairs, and that the Annual Government Statement was not misleading or inconsistent with other information. The external auditors concluded that the significant financial systems were adequate for preparing the Financial Statements and the work of Internal Audit could be relied upon.

The Director of Resources advised that the Council was also required to complete a return that the Department for Communities and Local Government consolidates to prepare the Whole of Government Accounts, which had required an amendment for the pension deficit figure following the revised statement from the actuary. 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 and it enabled them to issue an unqualified value for money conclusion.

Resolved:

(1)        That the Annual Audit Letter for 2014/15 produced by the External Auditors be noted.

Reasons for Decisions:

To ensure that the Cabinet Committee was aware of any significant issues arising from the Annual Audit.

Other Options for Considered and Rejected:

There were no other options for action as the report was for noting by the Cabinet Committee.

(Director of Resources) To consider the attached report (FPM-013-2014/15).

The Director of Resources presented a report on the mid-year Treasury Management and Prudential Indicators 2014/15.

The Director of Resources reported that the mid-year treasury report was a requirement of the CIPFA Code of Practise on Treasury Management and covered the treasury activity for the first half of the financial year 2014/15. During the first half of the year, the Council had continued to finance all capital expenditure from within internal resources and the average net investment position had been approximately £62million with no significant breaches on any of the prudential indicators.

The probably capital outturn for the current financial year was £24.7million. The prudential indicator assisted the Council in controlling and monitoring the level of useable capital receipts that would be available at the end of a five-year period, which for three years to 2016/17 totalled £60m and was fully funded. It was predicted that at the end of 2016/17 there would be £1.8m available in Capital Receipts and £4.1m in the Major Repairs Reserve. Therefore it could be concluded that adequate resources existed for the Capital Programme in the medium term.

The Director of Resources confirmed that there were no breaches of the Authorised Limit, Operational Boundary and Maturity Structure of Fixed Rate Borrowing during the period to 30 September 2014, in relation to the borrowing for the HRA self-financing. It was anticipated that all borrowing would be repaid on maturity and all future capital expenditure would be financed through internal resources, therefore no risk currently existed for refinancing.

The Treasury position as of 30 September 2014 was that short term investments of £38.3m in fixed rates, £13.8m in variable rates and £10m in long term investments. It was important that cash flow of the Council was carefully monitored and controlled to ensure enough funds were available each day to cover the outgoings. This would become more difficult as the Council used up Capital Receipts and reduces investment balances. The Semi-annual Treasury Outturn Report 2014/15 reported that the counterparty credit quality measured by credit ratings for 30 September 2014 remained that the value weighted average credit risk score A+ and the credit rating was 5.07 with the time weighted average for credit risk score being AA- and the credit rating was 3.87.

The Director of Resources advised that no additional dividends had been received from Heritable Bank and were not expected until all the outstanding litigation had been settled and the administration process completed, which was possibly expected in November 2014.

The Director reported that the continued low interest rate would result in estimated investment income to the Council of £416,000 in 2014/15, which was slightly above the original estimate of £399,000. Interest rates were not expected to rise in the short term.

Resolved:

(1)        That the management of the risks associated with the Council’s Treasury management function during the first half of 2014/15 be noted.

Reasons for Decision:

To comply with the CIPFA Code of Practice on Treasury Management.

Other Options Considered and Rejected:

None, although the  ...  view the full minutes text for item 28.

(Director of Resources) To consider the attached report (FPM-014-2014/15)

The Director of Resources presented the quarterly Financial Monitoring report for the period 1 April to September 2014, which provided a comparison between the original profiled budgets for the period ended 30 September 2014 and the actual expenditure or income. The report provided details of the revenue budgets for both the Continuing Services Budget and 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 £163,000 or 1.6%. Investment interest levels were slightly above expectation after two quarters due to an increase in surplus cash available for investment.

Within the Governance Directorate, Development Control income was £120,000 higher than the budget and pre-application charges were £23,000 higher. Building Control income was £4,000 higher than budgeted with the ring fenced account showing an in-year surplus of £7,000 compared to the original budget which predicted a deficit of around £40,000.

Within the Neighbourhoods Directorate, the Hackney Carriage income was £4,000 above expectations and other licensing £2,000 below expectations. The income from MOT’s carried out by Fleet Operations was £4,000 above expectations. The Local Land Charge income was £22,000 above expectations and had continued the upward trend of recent months although there was still a significant uncertainty surrounding the future of these services. It was reported in September that there had been problems with information for the Recycling Credits and raising invoices although things had improved, officers would be raising the issue with County Council to ensure that unreasonable delays would be avoided. Income from the Car Parking had been a little sporadic and with NEPP having recently changed their cash collector, it had been expected that cash receipts would become more timely.

Within the Communities Directorate, the Housing Repairs Fund was showing an underspend of £510,000 but a large proportion of the expenditure was normally spent in the winter months.

The Director of Resources reported that the non-domestic rate estimates at the end of September 2014 had reduced by £182,495 and as the Council retained 40% of the gains and losses, there would be a decrease in funding of £72,998, although the Government would reimburse the General Fund in part for these losses. The Cash Collections at the end of September 2014 was £18,889,598 and payments out were £16,203,000 meaning that the Council held £2,686,598 of cash, therefore the overall cash position benefitted from the effective collection of non-domestic rates. The overall value of the rating list was a concern but cash collection was going well.

In conclusion, the Director of Resources stated that generally income was up on expectations and expenditure was down. The main area of concern was that income from North Weald Market and the Director of Resources referred to the reports that had been to the Asset Management and Economic Development Cabinet committee and Cabinet. The Cabinet Committee was requested to note the Council’s financial position as of 30 September 2014.

Resolved:

(1)        That the Quarterly financial Monitoring Report for the period 1  ...  view the full minutes text for item 29.

(Director of Resources) To consider the attached report (FPM-015-2014/15).

The Director of Resources presented a report on the fees and charges to be levied by the Council in 2015/16 and what, if any scope there was to increase particular charges.

The Director of Resources reported that the Medium Term Financial Strategy identified the need to find savings of around £1.5m over the four year period with £500,000 falling in 2015/16. Since then growth on the Economic Development budget and expected further losses on the North Weald Market, meant that the figure may be nearer £1m. The September Retail Prices Index (RPI) had recently been published at 2.3% 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 for services such as New Horizons, Sports Development, Museums and Arts and Lifewalks and the majority of housing-related Fees and Charges for 2015/16 by 2.3%. However the exception to this approach was the Telecare packages and monitoring of alarms for other organisations, that would increase by £10.50 (11%) for 2015/16 for private users andorganisations that use the Careline Service.  Also the charge for monitoring additional sensors would be increased by 10%, from £10 per annum to £11 per annum. It was noted that the Housing Portfolio Holder intended to ask the Housing Scrutiny Panel to consider the future costs, income and viability of the Council’s Careline Service, and to make recommendations to the Cabinet, once the funding position from County Council was clearer.

Within the Governance Directorate, the situation regarding Land Charge income was still very uncertain following the introduction of the Local Land Charges (Amendment) Rules 2010, although it was probable that there would be a reduction in the fee for a full search from £90 to £85. 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 apply to major applications, income was buoyant at the moment and the budget had been exceeded substantially. The fee could be increased but there was a fear that if the fee was set too high pre-application advice might be forgone leading to more difficulties later in the planning process, so it was proposed that the scope of charging be widened to include householder advice although charging had not yet been determined. Building Control Fees were felt to be reasonable and indeed income levels had improved meaning the account was expected to remain in surplus. There was also scope to increase charges for the provision of documents relating to Building and Development Control to the general public which could provide an additional £5,000.

The Cabinet Committee noted that the Neighbourhoods Directorate included Car Parking Charges, North Weald Airfield rents and charges, MOT’s, various environmental health related charges and Licencing. The Car Parking charges were to be considered within item  ...  view the full minutes text for item 30.

(Director of Resources) To consider the attached report (FPM-016-2014/15).

The Director of Resources presented a report on the draft General Fund Lists and Savings for the 2015/16 budget, which provided the first draft of the Continuing Services Budget (CSB) growth and District Development Fund (DDF) Schedules for 2015/16 as well as an update on the budget process for 2015/16 and the savings achieved so far.

The Director of Resources stated that the Financial Issues Paper was considered by the Cabinet Committee on 28 July 2014, highlighting a number of financial uncertainties and risks facing the Authority including the reductions in Central Government funding, Retention of Business Rates, Welfare Reform and Waste and Leisure Management Contract Renewals.

The Medium Term Financial Strategy (MTFS), which formed part of the Financial Issues Paper, identified that savings of around £1.5 million were required over the forecast period. The savings required in 2015/16 were identified at £0.5 million after savings of £0.285 million already identified had been taken into account. Since then growth had been agreed for increasing the resources available for Economic Development work and that there was likely to be a reduction on the North Weald rent, meaning the target was closer to £1 million. There were also some CSB budgets that either had a one off element or a degree of uncertainty around whether they would be spent or not. In both cases treating an appropriate element as DDF rather than CSB would make managing those budgets easier and give a degree of flexibility.

Resolved:

(1)          That the draft Continuing Services Budget and District Development Fund schedules for 2015/16 be noted; and

(2)          That the savings achieved to date as part of the 2015/16 budget process be noted.

Reasons for Decision:

To monitor the General Fund schedules and savings achieved at this stage of the budget process for 2015/16.

Other Options Considered or Rejected:

No other options were considered at this stage of the process.

(Director of Resources) To consider the attached report (FPM-017-2014/15).

The Director of Resources presented a report on the net saving suggestions and overall saving targets for 2015/16 and subsequent years, allowing Members to evaluate the various ideas, determine which they would like to take forward and make other suggestions.

The Director Resources stated that given the greater financial challenge in 2015/16, the budget process had been started two months earlier in July 2014. The net Continuing Service Budget (CSB) target for 2015/16 in the Medium Term Financial Strategy (MTFS) was £13.15 million and included a target for additional net savings of £0.5 million. In total the MTFS included net savings of £1.5 million over the four years with £0.5 million in both 2015/16 and 2016/14, £0.3 million in 2017/18 and £0.2 million in 2018/19. Furthermore this year the North Weald Market had a probable reduction in income of approximately £0.3 million per annum and there had been an increase in staffing in Economic Development, which had added an additional £125,000 to the budget. Consequently, if the CSB target were to remain at £13.15 million then the savings required for 2015/16 would increase to £0.93 million.

The Director of Resources advised that the Leadership Team had discussed a number of saving opportunities and they were presented to Members for consideration.

The Businesses cases were set out for the following areas;

·         Community Safety Work and HRA – This involved the work of the Community Safety Team undertaken on behalf of Housing being paid from the Housing Revenue Account.

·         Review of Councillors – To reduce the number of Councillors within the Council, this would require an Electoral Review by the Local Government Boundary Commission.

·         The Forester Magazine – To discontinue with the production and distribution of the Forester Magazine.

·         Review of Discretionary Business Rate Relief – To remove or vary the level of relief provided or amend the policy to further restrict who received the relief.

·         Increase in Fees and Charges – To raise additional income from Communities for Arts, the Museum and Sports development, lettings at Limes Farm Hall, increase of charges for document copying and General Fund increases in Fees and Charges.

·         Development Management Income and Savings – Reductions in Planning Applications advertisements in Newspapers, ending On-Line Planning Law annual subscription, reduction in costs associated to paper documents to Parish and Town Councils, charging for pre-application services, charging for paper copies of planning and building control information.

·         Improving Cost Recovery – Charging Parish Councils for services such as information or assistance given and enforcement services.

·         New Hangar at North Weald – To build a new hangar to generate income.

·         Flexible Working/Accommodation Review – To review working practises and space utilisation across the whole Council.

·         Leisure Management Contract – To procure the new Leisure Management Contract by Competitive dialogue, increase income and reduce costs.

·         Reduction in Facilities Management (FM) Spend – To reduce the underspend within the FM budget and improve procurement and contract management processes.

·         Car parking income – To increase car parking charges.

·         Grants to Voluntary Organisations – To  ...  view the full minutes text for item 32.

Exclusion: To consider whether, under Section 100(A)(4) of the Local Government Act 1972, the public and press should be excluded from the meeting for the items of business set out below on grounds that they will involve the likely disclosure of exempt information as defined in the following paragraph(s) of Part 1 of Schedule 12A of the Act (as amended) or are confidential under Section 100(A)(2):

The Local Government (Access to Information) (Variation) Order 2006, which came into effect on 1 March 2006, requires the Council to consider whether maintaining the exemption listed above outweighs the potential public interest in disclosing the information. Any member who considers that this test should be applied to any currently exempted matter on this agenda should contact the proper officer at least 24 hours prior to the meeting.

Confidential Items Commencement: Paragraph 9 of the Council Procedure Rules contained in the Constitution require:

(1)        All business of the Council requiring to be transacted in the presence of the press and public to be completed by 10.00 p.m. at the latest.

(2)        At the time appointed under (1) above, the Chairman shall permit the completion of debate on any item still under consideration, and at his or her discretion, any other remaining business whereupon the Council shall proceed to exclude the public and press.

(3)        Any public business remaining to be dealt with shall be deferred until after the completion of the private part of the meeting, including items submitted for report rather than decision.

Background Papers:  Paragraph 8 of the Access to Information Procedure Rules of the Constitution define background papers as being documents relating to the subject matter of the report which in the Proper Officer's opinion:

(a)        disclose any facts or matters on which the report or an important part of the report is based;  and

(b)        have been relied on to a material extent in preparing the report and does not include published works or those which disclose exempt or confidential information (as defined in Rule 10) and in respect of executive reports, the advice of any political advisor.

Inspection of background papers may be arranged by contacting the officer responsible for the item.

That the public and press be excluded from the meeting for the items of business set out below on the grounds that they would involve the likely disclosure of exempt information as defined in the paragraphs of Part 1 of Schedule 12A of the Local Government Act 1972:

Agenda                                                                                   Exempt Information

Item No           Subject                                                           Paragraph Number

12                    Saving Suggestions                                                    3

(Director of Resources) To consider the restricted appendix to (FPM-017-2014/15).

The Director of Resources presented a report on the net saving suggestions to be considered in private session that could involve redundancies or contained other confidential information.

Case 1 – The Cabinet Committee felt that there were better ways of using the funding and that the funding could be used to the benefit of more individuals. The Committee felt that officers should come forward with suggestions on how this funding could be better used. On discussions about the level of any savings, the Cabinet Committee;s view was that, whilst any savings would be welcomed, the best use of funding was the main driver..

Case 2 – The Cabinet Committee considered the proposal and the viable alternative to provide the service. The Cabinet Committee agreed to pursue the proposal.

Case 3 – The Cabinet Committee considered the review and reduction of one member of staff and agreed to pursue the proposal.

Case 4 – The Cabinet committee considered that the proposal would not be taken any further and officers could look at pursuing other services that they could charge for, which did not involve volunteers. Additional income of £15,000 was targeted.

Case 5 – The Cabinet Committee considered the proposal and felt that this was not worth any further consideration as it would be more of a detriment to the District. Officers were asked to pursue funding from Local Highways Panel and Essex County Council.

Case 6 – The Cabinet Committee considered the proposal to reduce the service and the number of staff by one without impacting on the service provided to the public.

Recommended:

(1)        That Case 1 be discontinued in it’s current form and that the Director of Communities reports to the Cabinet Committee during 2015, on ways that the budget for this service could be better utilised, benefiting more service recipients.

;

(2)        That Case 2 be pursued and create a potential saving of £22,000 in 2016/17;

(3)        That Case 3 be pursued and create a potential saving of £29,000 in 2015/16;

(4)        That Case 4 not be pursued and officers secure additional income of £15,000;

(5)        That Case 5 was not pursed and officers were to pursue Essex County Council Highways Panel for funding;

(6)        That Case 6 be pursued and create a potential saving of £30,000 in 2016/17.