Issue - meetings

Cabinet RECOMMENDED TO COUNCIL:

(a)               approval of a Medium Term Financial Strategy (MTFS) based on Appendix 3B, the full savings in Appendix 2 and the following issues:

(i)                 the financial context for the strategy and the future issues facing the Council, in particular the growth agenda;

(ii)                how the Council compares with other councils in terms of spending, performance and value for money;

(iii)              how well the Council manages its finances;

(iv)              clear objectives for the strategy;

(v)               how the Council will deliver a balanced MTFS;

(vi)              how it will improve future planning and link planning with its priorities

(vii)            the future policy for the level of the Council Tax;

(viii)           the future policy for the use of capital receipts;

(ix)              how the Council will continue to seek efficiency savings and value for money;

(x)               how the Transformation Project will contribute to the delivery of the MTFS;

(xi)              how the workforce plan will be linked to the MTFS; and

(xii)            how the Council will monitor the MTFS and take action where financial targets are at risk;

(b)               approval of the spending plans in Appendix 1 for 2007/08 (based on the justifications in Appendix 5) for inclusion in the budget and to approve the spending plans for 2008/09 onwards as the basis for future planning;

(c)               approval of the capital programme in Appendix 5;

(d)               that officers be requested to investigate and report back on the “Other initiatives to be pursued / possible avenues for additional sources of finance” in Appendix 2 by June 2007, for consideration in the budget for 2008/09;

(e)               approval of the arrangements for consultation in paragraph 28; and

(f)                 that the MTFS be reviewed formally twice a year (in the autumn and in February / March, in the light of the final budget), but that reports be made as part of the quarterly monitoring process at other times of the year when issues affective the deliverability of the MTFS occur.

(Note – Appendices identified in the above recommendation refer to the report submitted to Cabinet on 9 November 2006).

Cabinet agreed to authorise the Chief Executive and Resources, Staffing, Information & Customer Services Portfolio Holder to prepare the final strategy for submission to Council

In accordance with this recommendation Council is recommended to RESOLVE that the Medium Term Financial Strategy (report and appendices attached) be approved.

This item will be considered by the Scrutiny and Overview Committee at its meeting on 16 November 2006. Any alternative or additional recommendations to Council following this meeting will be reported.

Council RESOLVED that the Medium Term Financial Strategy be approved.

Councillor SM Edwards, Resources, Staffing, Information and Customer Services Portfolio Holder, presented the Medium Term Financial Strategy 2007/08 to 2010/11 to Council. Members asked questions and made comment on the strategy, and specific savings identified within it. Members congratulated Officers for working up proposals for savings which would not entail cutting services, and considered that the Strategy set out the Council’s future financial commitments and in a balanced and realistic way.

Council RESOLVED that the Medium Term Financial Strategy be approved.

In accordance with Standing Order 16.5, six Members requested a recorded vote. Due to a technical error, the names were not recorded on the system.The numbers reported in the minutes are those which were displayed in the Council Chamber at the time of the meeting.  Members have been asked to state how they voted on the resolution and the responses received are set out below.

FOR (48):

AGAINST (0)

ABSTAINED (3):

NOT VOTED (1):

Councillor SM Edwards, the Resources, Staffing, Information and Customer Services portfolio holder, presented this report, which focussed on the General Fund, and highlighted the approach towards achieving a balanced strategy. In was noted that last week’s Cabinet had recommended to Council the approval of the Medium Term Financial Strategy based on Appendix 3B and the full savings in Appendix 2.

Risks

Concern was expressed at the list of unquantifiable spending pressures in Appendix 1, as any one of the 20 unquantifiable spending pressures could have serious financial implications for the Council.

Risk: implementing Climate Change Bill

In response to questioning, Councillor Edwards agreed that the possible implications of the Climate Change Bill were a real concern to the Council. It was suggested that the Climate Change Meeting should meet to discuss this issue.

Risk: homelessness

Concern was expressed at the possibility of further costs in providing housing advice and dealing with homelessness cases, especially in the event of a downturn in the housing market.

Risk: financing the restructuring of the second and third tiers

In response to questioning, Councillor Edwards reported that there would have to be a strengthening of the third and fourth tiers as a consequence of the redundancies of staff in the top and second tiers.

The Chief Executive explained that it would be meaningless to try and estimate the savings that will result from the second tier restructuring before the process was agreed and the posts to be made redundant were identified.

Risk: Local Government Pension Scheme

Councillor Edwards explained the changes to the Local Government Pension Scheme. The exact details of the Scheme had not yet been agreed.

Saving: phasing out postal payments

Councillor Edwards explained that the Council will save money by phasing out the acceptance of payment by cheque. He recognised Members’ concerns regarding this matter, which was why he had taken the decision to phase it out, instead of an immediate cessation, as this would give the Council time to discuss alternate methods of payment, such as direct debit, with those residents who still paid bills by cheque.

Saving: increasing the cost of a summons

Councillor Edwards explained that the cost of a summons for non payment would be increased from £15 to £65. He hoped that this would act as a deterrent resulting in fewer missed payments.

Saving: bin delivery charge

A new bin delivery charge would be introduced for new properties and this would be paid by the developer.

Saving: reduction in maintenance cost at Cambourne

The budget for Grounds Maintenance around the office in Cambourne would be reduced by 50%.

Saving: cheaper visual impairment software

It was understood that although the Council would not now be paying £4,700 for enhancing the web site for the visually impaired, improvements would be made with the introduction of a cheaper software package, which was currently being used by East Cambridgeshire District Council.

Saving: office space

Councillor Edwards agreed that if possible the Council’s available office space should be rented out to a  ...  view the full minutes text for item 7

Cabinet RECOMMENDED TO COUNCIL:

(a)               approval of a Medium Term Financial Strategy (MTFS) based on Appendix 3B, the full savings in Appendix 2 and the following issues:

(i)                 the financial context for the strategy and the future issues facing the Council, in particular the growth agenda;

(ii)                how the Council compares with other councils in terms of spending, performance and value for money;

(iii)              how well the Council manages its finances;

(iv)              clear objectives for the strategy;

(v)               how the Council will deliver a balanced MTFS;

(vi)              how it will improve future planning and link planning with its priorities

(vii)            the future policy for the level of the Council Tax;

(viii)           the future policy for the use of capital receipts;

(ix)              how the Council will continue to seek efficiency savings and value for money;

(x)               how the Transformation Project will contribute to the delivery of the MTFS;

(xi)              how the workforce plan will be linked to the MTFS; and

(xii)            how the Council will monitor the MTFS and take action where financial targets are at risk;

(b)               approval of the spending plans in Appendix 1 for 2007/08 (based on the justifications in Appendix 5) for inclusion in the budget and to approve the spending plans for 2008/09 onwards as the basis for future planning;

(c)               approval of the capital programme in Appendix 5;

(d)               that officers be requested to investigate and report back on the “Other initiatives to be pursued / possible avenues for additional sources of finance” in Appendix 2 by June 2007, for consideration in the budget for 2008/09;

(e)               approval of the arrangements for consultation in paragraph 28; and

(f)                 that the MTFS be reviewed formally twice a year (in the autumn and in February / March, in the light of the final budget), but that reports be made as part of the quarterly monitoring process at other times of the year when issues affecting the deliverability of the MTFS occur.

Cabinet AGREED to authorise the Chief Executive and Resources, Staffing, Information & Customer Services Portfolio Holder to prepare the final strategy for submission to Council.

The Resources, Staffing, Information & Customer Services Portfolio Holder presented the report, which focussed on the General Fund, and highlighted the approach towards achieving a balanced strategy, as agreed by Cabinet on 12 October 2006.  Future spending pressures had been examined and it would be possible to meet the target of £400,000 in 2007/08, although there would be additional work to identify pressures in future years; necessary savings had been identified, with every effort taken to avoid impacting on front-line services.

Confirmations were sought and given:

·                      additional funding did not exist currently to extend the plastics recycling bank scheme to include growth areas, and that officers would be seeking to secure section 106 funding from developers to increase bank provision;

·                      the Internal Drainage Boards, Interest and Financing Charges in Appendix 3B did not allow for a substantial increase in the levy on account of Northstowe;

·                      contributions to Arts Development Officer posts in Village Colleges had always been phased to decrease over time.

Cabinet was asked to choose between two options for the basis for the MTFS, as set out in Appendices 3A and 3B.  The first, 3A, with a further £793,000 savings to be identified in 2007/08, would result in the General Fund balances achieving their target reduction to £1.5 million by 2011/12, with the Council Tax levied equalling the underlying spend per household the following year; however, an additional £1.4 million savings would be required in 2012/13 to maintain the minimum General Fund balance.  This option would see the amount of council tax collected meet the level of underlying council tax, or average spend per household, by 2012/13.

The other option, 3B, required £1.133 million savings to be identified in 2007/08, and would achieve the target reduction of General Fund balances to £1.5 million by 2012/13 without further savings to be identified during that time, but the council tax collected would not meet the underlying council tax until the following year and balances would be affected from 2013/14 onwards.  Option 3B, however, allowed for greater flexibility in future years and the Portfolio Holder commended it to Cabinet, citing the number of unknowns during the life of the MTFS such as the forthcoming White Paper on local government, the outcome of the Lyons review and possibly a general election.

Councillor SM Edwards proposed, seconded by Councillor Mrs DSK Spink, that Option 3B be recommended to Council as the basis for the Medium Term Financial Strategy to 2011, and that the MTFS be reviewed twice annually, in the autumn and in February / March as part of the final budget.  On a show of hands this motion was CARRIED.

Growth Area Delivery Arrangements

Although not strictly related to the Medium Term Financial Strategy, the Leader allowed discussion of this issue at this time.  He clarified that the recent article in the Cambridge Evening News had been incorrect and the Council was not having its powers of determination removed.  A proposal was being considered through which planning powers would be shares between  ...  view the full minutes text for item 5

Cabinet RECOMMENDED TO COUNCIL approval of the posts previously approved in principle, with effect from 1 January 2007 where appropriate, otherwise from 1 April 2007.

Council RESOLVED that the posts previously approved in principle, with effect from 1 January 2007, be approved. 

Council RESOLVED that the posts previously approved in principle be approved, with cash limits for the 2006/07 financial year being relaxed to provide funding for those posts being added to the authorised establishment from the 1^st January 2007.

Cabinet RECOMMENDED TO COUNCIL approval of the posts previously approved in principle, with effect from 1 January 2007 where appropriate, otherwise from 1 April 2007.

Cabinet AGREED:

(a)               to include in the Medium Term Financial Strategy to 2011 levels of future expenditure indicated in Table 2 of the report;

(b)               to retain current policies and programmes for the capital plan, as shown in Appendix 2a of the report, and to review the position further in the light of the outcome of the stock condition survey and the clarification of the future capital spending pressures in Appendix 1;

(c)               in principle, the targets in paragraph 16 (a)-(d) and (f)-(h) of the report to progress the Council’s three priorities in 2007/08, to request service heads and portfolio holders to work up more quantified targets, and to seek to retain the Council’s capacity to deliver these targets in the savings exercise;

(d)               adoption of the projections in Appendix 3A of the report as the basis for the Medium Term Financial Strategy to 2011;

(e)               to request portfolio holders and service heads to report to the November Cabinet with recommendations to meet the savings targets in Appendix 3A to the report, informed by the methodology devised last year;

(f)                 to request that the further areas for savings identified in paragraph 28 of the report (together with any further suggestions from Members) be pursued;

(g)               to make approaches to the Government and Cambridgeshire Horizons as suggested in paragraph 30 of the report;

(h)               to request all service heads to produce service plans for growth areas to provide greater certainty in financial planning; and

(i)                  in principle to reduce the number of council meetings to 50% of the current level.

Cabinet NOTED the scale of future spending pressures on the Council as indicated in Appendix 1 to the report.

The Resources, Staffing, Information & Customer Services Portfolio Holder introduced the draft Medium Term Financial Strategy, the final version of which would establish the basis for a sustainable budget over the next five years.  Members’ attention was drawn to the spending pressures in Appendix 1, which required further refinement.

Priorities for 2007/08

Concern was expressed at setting a target for affordable housing completions, into which the Council had little input as the actual build rate was dependent upon developers and the current economic climate.  The Council, however, had an influence upon the percentage of residential planning permissions for affordable housing and Cabinet supported setting a target for this area.

Position on Capital

Two projections of capital spending were considered and the Resources, Staffing, Information & Customer Services Portfolio Holder advised Cabinet that restricting the housing repair programme to necessary spending to meet Decent Homes minimum standard and other statutory requirements would benefit the General Fund for the five-year period 2007/08-2011/12, but the subsequent negative impact on the Housing Revenue Account (HRA) would leave the Council worse off financially.

Draft Medium Term Financial Strategy

Cabinet acknowledged that the Medium Term Financial Strategy (MTFS) had a deficit which must be addressed.  To balance the strategy, it was necessary to:

(i)                  reduce future spending commitments;

(ii)                maximise savings / cost reductions across all services; and

(iii)               seek external help through partnership work, developer contributions, business sector, etc.

Members acknowledged that the amount of Council Tax raised did not meet the current cost of providing services to residents and that the Council was one of the lowest-taxing authorities in the country.  The authority either could continue to draw down on its reserves, which would soon run out, or could review all services to see if there were ways to achieve better value for money.  Cabinet was unanimous in its support of addressing the financial situation now, rather than waiting to see if there were any changes to local government finance regulations and / or withdrawal of the capping regime.  It was felt that this approach would also remove much uncertainty from staff, although there would be redundancies.

The Leader, through Cambridgeshire Horizons, had been making representations to the government, demonstrating that the growth agenda, costs of which continued to rise, could not be done on the current levels of government funding.

Councillor Mrs SA Hatton asked that officers investigate whether savings could be achieved on empty Council properties, although it was pointed out that this would be advantageous to the HRA rather than to the General Fund.

Reducing the Number of Meetings

The Scrutiny and Overview Committee previously had recommended replacement of the existing Advisory Groups with four cross-cutting panels focussing on larger service areas.  Councillor NIC Wright, highlighting the increased use of delegation to reduce the Planning Committee agenda, suggested that further delegation could leave sufficient time to hold site visits and the Committee meeting on the same day.  Cabinet welcomed the suggestion and noted that it was not only the number of meetings to  ...  view the full minutes text for item 6

The review of the MTFS will now be considered by Cabinet on 12 October 2006 and not in July as previously included in the Council's Forward Plan. The reasons for this are as follows:

(a)               Earlier closure and approval of the accounts this year by the statutory date of 30 June has rendered it impractical to review the Financial Strategy in June for reporting in July due to limited staff resources;

(b)               Delaying to October gives Cost Centre Managers the opportunity to consider the inescapable bids for 2007/08 onwards to be considered as part of the Review and allows for the inclusion of final audited figures for balances as at 31 March 2006; and

(c)               A review in October will reduce the number of revisions to be considered during the year. 

The Advisory Group noted the contents of the report and that the Head of Community Services would continue to investigate ways in which to make savings.