Agenda item - Recommendations from the Cabinet (to follow)

Agenda item

Recommendations from the Cabinet (to follow)

To consider the recommendations from the meeting(s) of the Cabinet held on 25th November 2020.

 

Minutes:

Worcestershire Regulatory Services Board Budget Recommendations 2020/21

 

Councillor A. Kent, Deputy Leader and Portfolio Holder for Planning and Regulatory Services, presented the recommendations arising from a meeting of the Worcestershire Regulatory Services (WRS) Board held on 1st October 2020.

 

The recommendations addressed the need for partner organisations to increase budget contributions in order to cover increased pension costs.  The increase in pension costs had arisen following the outcomes of a national court case in relation to age related contributions.  A refund had been requested to be paid to Wyre Forest District Council, which was withdrawing from the pest control service provided by WRS.  The revised budget contribution from Bromsgrove District Council to WRS in 2020/21 would be £468,000, or 14.59 per cent of the WRS budget.

 

During consideration of this item, it was noted that there appeared to have been a challenging debate at the WRS Board meeting when the budget position for 2020/21 had been discussed.  Members noted that Councillors A. Kent and H. Jones served on the WRS Board on behalf of Bromsgrove District Council. It was also noted that there would be further recommendations about the WRS budget coming forward in future months for Members’ consideration.

 

Members commented that WRS had been working very hard during the Covid-19 pandemic, which had created a number of challenges for the service.  Officers in the team were praised for their hard work at this difficult time.

 

RESOLVED that partner authorities approve the following for 2020/21:

 

1.1      the additional partner liabilities for 2020/21 in relation to increase in WRS pension forward funding rate and recommend the increase to individual partner councils:-

Bromsgrove District Council

£11k

 

 

 

1.2      the additional partner liabilities for 2020/21 in relation to the additional increase in pay award of 0.75% from the original estimated 2% and recommend the increase to individual partner councils:-

 

Bromsgrove District Council

£3k

 

1.3      the refund to Wyre Forest in relation to the change of Pest Control Services and recommend the refund to individual partner councils:-

 

Wyre Forest District Council

£7k

 

1.5         the revised budget for 2020/21 and partner percentage allocations for 2020/21 onwards, due to the change in pest control service at Wyre Forest:-

 

                                  

£’000

Revised %

Bromsgrove District Council

468

14.59

 

Domestic Abuse Policy

 

Councillor S. Webb, Portfolio Holder for Strategic Housing and Health and Wellbeing, presented the Domestic Abuse Policy for Members’ consideration.  Members were advised that the policy set out the Council’s approach to responding to cases of domestic abuse and supporting victims, which included participation in multi-agency partnership work to tackle domestic abuse.  The Domestic Abuse Act would introduce a legal duty, from April 2021 onwards, for Councils to house victims of domestic abuse and their children.  The legislation also introduced a statutory definition of domestic abuse, which acknowledged that this could be physical, emotional and / or coercive.

 

RESOLVED that

 

(1)      the draft Domestic Abuse Policy be adopted; and

(2)      the Head of Housing and Community Services be given delegated authority to update and amend the policy in line with any new legislation and guidance, as and when required.

 

(During consideration of this item an issue was raised about the Chairman’s location whilst participating in the meeting and questions were raised about the suitability of this location.  Reference was made to the Covid-19 rules, in respect of areas such as Bromsgrove District that had been placed under Tier Two restrictions.  An adjournment subsequently took place from 18.54 to 19.22.  At the end of this adjournment the Monitoring Officer advised that the matter of the location of the Chairman at the start of the meeting would be investigated further.  Members were advised that there were some exemptions which applied to individuals participating in business meetings from the same location and this would be explored further.

 

The Chairman left the meeting during the adjournment and did not return.  The Vice Chairman chaired the remainder of the meeting from 19.22 until the end of the meeting.)

 

Financial Monitoring Report Quarter 2 2020/21

 

Councillor G. Denaro, Portfolio Holder for Finance and Enabling Services, presented the Financial Monitoring Report for quarter 2 of the 2020/21 financial year and in so doing highlighted a typographical error in the report. Members were advised that this did not change the total figures that had been recorded. 

 

Council was informed that quarter 2 in the financial year was the first point at which the full impact of the Covid-19 pandemic could start to be identified in the budget.  The Council had received funding from the Government to help cover the financial costs arising from the pandemic and this had been provided in four tranches.  In total, £865,000 of this funding remained to be spent and Members could determine how this should be used. 

 

There was projected to be a variance in the budget by the end of the financial year.  To address this, the Leader, Deputy Leader and Portfolio Holder for Finance and Enabling Services were due to meet with senior Officers over the following weeks to discuss expenditure. 

 

For the strategic purpose ‘communities which are safe, well-maintained and green’ there was projected to be a variance in the budget of £165,000.  In part, this had occurred because Bereavement Services had not secured the income that had been anticipated at the start of the year.  There had also been overspends on the trees and waste management services and a business case was in the process of being developed for the latter service.

 

There had been some savings achieved in Enabling Services.  In particular, savings had been secured from vacant posts in Customer, Democratic and IT services.  There had been an underspend in respect of the strategic purpose ‘living independent, active and healthy lives’ primarily because it had not been possible to hold events during the Covid-19 pandemic.  However, the strategic purpose ‘run and grow a successful business’ was overspent by £779,000 and it was unlikely these costs would be covered by the remaining Covid-19 grant funding.

 

Expenditure in the Capital Programme was not as advanced as had been anticipated.  Therefore, reprofiling work would be required.  However, some activity had commenced with regard to the Burcot Lane site and it was likely that this would result in expenditure early in the new year.

 

RESOLVED that the reprofiling of the Burcot Lane project in the capital programme 2020/21 due to officers completing a review of the Capital budget for 2020/21 – 2023/24 as detailed in appendix 3 be approved.

 

Capital Strategy 2020/21 Incorporating the Treasury Management Strategy

 

Councillor G. Denaro, Portfolio Holder for Finance and Enabling Services, presented the Capital Strategy and Treasury Management Strategy for 2020/21.  Council was informed that these strategies would usually be considered earlier in the municipal year but had been postponed due to the impact of the Covid-19 pandemic.

 

Council was informed that in respect of short-term investments, the authority had previously worked with the Bank of England but this resulted in a low rate of return.  Officers had worked hard to encourage Money Markets, which provided a greater rate of return, to consider working with the Council on short-term investments.

 

The Investment Strategy had been altered.  In previous years the Council had only permitted investments to be made where there would be a good rate of return.  The strategy had now been updated to enable the authority to make purchases that might break even or could result in a loss, in cases where the investment would benefit the local community.

 

During consideration of this item Members questioned whether the Capital Strategy and Treasury Management Strategy had been considered at the latest meeting of the Finance and Budget Working Group.  Further information was requested about the use of capital receipts as well as the structure costs of the ERP system, or new finance system, and service delivery for this system.  The Head of Financial and Customer Services explained that the capital receipts were used to help cover costs that would usually be covered using revenue budgets.  In relation to the ERP system, some of the costs related to staff redundancies.

 

RESOLVED that

 

(1)      the Capital Strategy as an appropriate overarching strategy for the Council be approved;

(2)      the Treasury Management Strategy for 2020/21 and the associated MRP policy be approved;

(3)      the policy for Flexible use of Capital Receipts be approved; and

(4)      the Investment Strategy be approved.

 

Fees and Charges 2021/22

 

Councillor G. Denaro, Portfolio Holder for Finance and Enabling Services, presented the proposed fees and charges for the 2021/22 financial year.  In presenting the report, Councillor Denaro thanked both the Finance and Budget Working Group and Officers working in the finance department for their hard work in reviewing the figures.  In some cases, fees had been set in order to achieve full cost recovery.  In other cases, fees had not been increased due to concerns about the impact of the Covid-19 pandemic on the customers in receipt of those services.  An additional fee had been proposed for the Birdbox.

 

RESOLVED that

 

a)    all fees and charges included in appendix 1 to the report be approved;

b)    an additional charge for the electric supply at the Birdbox be approved and

c)    all fees and charges included in appendix 1 are charged commencing 1st February 2021.

 

Bromsgrove District Council Car Parks – Capital Works Programme

 

Councillor K. May, Leader of the Council and Portfolio Holder for Economic Development, the Town Centre and Strategic Partnerships, presented the Bromsgrove District Council Car Parks – Capital Works Programme report for Members’ consideration.  Members were advised that there were no risks to any of the car parks in the district arising from the proposals detailed in the report.  There would be a full maintenance schedule and a fully costed business case had been prepared.

 

Some Members welcomed the report and the proposed investment in the town’s car parks.  It was suggested that this was an exciting time to invest in car parks and would help the local economy, following the impact of the Covid-19 pandemic.  Unfortunately, during the pandemic, nationally there had been reports of businesses struggling financially, particularly in the retail sector.  Action needed to be taken to make Bromsgrove a desirable place to visit and the proposals in respect of car parking would contribute to this.  In addition, questions were raised about the extent to which Bromsgrove District council could afford to pay for the repairs and maintenance costs required to refurbish this car park.

 

However, some Members raised concerns about the potential for a third party to manage one of the Council’s car parks in Bromsgrove town centre.  In particular, concerns were raised that the Council might potentially lose income if a third party managed the car park on the Council’s behalf.  Concerns were also raised about the extent to which the Council could ensure that the charges for the car park levied by a third party would be equitable.

 

Members noted that further information in respect of the offer from a third party to manage one of the Council’s car parks, which related to the first recommendation in the report, had been provided on pink papers and would need to be discussed in exempt session.  In this context, Members agreed to determine recommendations 2 – 7 during consideration of this item and to determine the first recommendation in the report at the end of the meeting.

 

RESOLVED that

 

(1)      delegated powers be given to the Head of Environmental and Housing Property Services, Head of Finance and Customer Services and the Portfolio Holder, to explore, negotiate and agree the final lease details with the third party, be approved;

 

(2)      a decrease in the 2020/2021 Capital Programme of £34.5k to provide a total budget of £85.5k for replacement of parking machines be approved;

 

(3)      an increase of £432.0k, £307.0k or £267.0k in 2021/2022 to be funded from borrowing or balances following consideration as part of the medium term financial plan review be approved;

 

(4)      an increase of £136.0k to the 2022/2023 Capital Programme to be funded from borrowing or balances following consideration as part of the medium term financial plan review be approved;

 

(5)      an increase of £116.0k to the 2023/2024 Capital Programme to be funded from borrowing or balances following consideration as part of the medium term financial plan review be approved; and

 

(6)      an increase of £441.0k or £121.0k in 2024/2025 to be funded from borrowing or balances following consideration as part of the medium term financial plan review.

 

(During consideration of this item there was a brief adjournment, from 20.02 to 20.11).

 

 

Supporting documents: