Agenda and minutes

To sign the minutes of the meeting held on 24 November 2010.

The minutes of the meeting held on 24 November 2010 were taken as read and signed by the Chair as correct.

Councillors are reminded of the need to declare personal and prejudicial interests, including the nature and extent of such interests, in relation to business on the agenda, before any discussion takes place on the item.  Councillors requiring clarification should seek the advice of the Monitoring Officer prior to the day of the meeting.

Members made no declarations of interest.

The Council’s External Auditor, Grant Thornton, will present the plan to Members – plan circulated

Mr Morris and Mr Sethi of Grant Thornton, the Council’s External Auditor, presented the Audit Plan for 2010/11.

Mr Morris outlined to Members the overview of the Audit Plan for 2011/12 including how the fee was set, the accounts risk assessment and value for money audit.

Mr Sethi outlined to Members the key audit areas affected, the audit approach which took into account the Annual Governance Statement, the Whole of Government Accounts, Certification of Grants and Returns and National Fraud Initiative. He updated Members on the value for money audit.

Mr Morris clarified that the fee to the Council would reduce from that advised in the Audit Letter of March 2010 by 7.5%, the details of this reduction to be reported to the next Scrutiny Committee - Resources meeting.

The Chair thanked Mr Morris and Mr Sethi for their presentation.

The Scrutiny Committee – Resources noted the plan.

(Plan circulated)

The Council’s External Auditor, Grant Thornton, will present the report to Members – report circulated

Mr Morris, the Council’s External Auditor, presented the Certification Work Report for 2009/10.

Mr Morris outlined to Members the certification arrangements, the results of the certification work, the significant issues identified and the details of claims and returns certified for 2009/10.

The Director Corporate Services clarified the position with regards to the issues audit of housing and Council tax benefit assessments and confirmed that issues raised would be addressed.

Mr Morris advised that tolerance levels with regards to the certification of works were very strict and were not subject to a ‘material’ effect judgement.

The Chair thanked Mr Morris, Mr Sethi and Ms Williams for their attendance.

The Scrutiny Committee – Resources noted the report.

(Report circulated)

To consider the report of the Head of Treasury Services – report circulated

The Head of Treasury Services presented the report outlining the strategic framework within which the estimates had been prepared and circulated for discussion and comment during December.

The Head of Treasury Services advised Members that savings proposals to reduce the base budget by £2.421 million had been incorporated within the budget papers presented to the individual Scrutiny Committees. He updated on the provisional local government finance settlement for 2011/12, monitoring of revenue savings, equality impact assessments, Central Government advice on the level of Council Tax, future spending pressures and review of the medium term financial planning process.

Members were informed that the latest medium term financial planning forecast indicated that a cumulative reduction of £4.710 million would be required over the next four years.

In response to Members’ questions, the Head of Treasury Services stated that the provisional grant settlement confirmed that a local authority that freezes or reduces its Band D Council Tax in 2011/12 would receive an additional grant equivalent to having set a 2.5% increase from their 2010/11 level.  The medium term financial plan assumed an increase in Council Tax of 2.5% and any grant paid to an authority for freezing or reducing its Council Tax in 2011/12 would be matched in each subsequent year of the Spending Review to compensate for the income foregone for a freeze.

The Chief Executive clarified that all local authorities were united in their opposition to the proposal in the Localism Bill to order English councils to contribute to EU fines imposed on the UK government. The Local Government Association and the District Council Network were protesting strongly against this proposal.

Members discussed the costs of the Lord Mayors limousine. The Director Corporate Services stated that the car was owned by the Council and the costs of maintaining the vehicle were lower than the alternative of hiring vehicles when transport was required. The situation was kept under review.

The Scrutiny Committee – Resources noted the report and recommended that:-

(1)        Executive approve the Draft Revenue budget proposals for 2011/12; and

(2)        the minimum level for the General Fund Working Balance remain at £2 million.

(Report circulated)

To consider the report of the Head of Treasury Services – report circulated

The Head of Treasury Services presented the report seeking approval of the General Fund and Housing Revenue Account Capital Programmes for 2011/12 along with schemes identified for the following two years.

Members were advised that a borrowing requirement of £21.9 million had been identified over the next four financial years, which would have an ongoing impact on the Council Tax.  The current revenue cost of borrowing was approximately £66,000 for each £1 million that was borrowed which was historically low.  The affordability of the General Fund capital programme would be ultimately decided by the incremental impact of capital investment decisions on the Council Tax.

The Scrutiny Committee - Resources supported the following for approval by Executive:-

(1)        the General Fund capital programme for 2011/12, as set out in Appendix 4 of the report;

(2)        the HRA capital programme for 2011/12, as set out in Appendix 5 of the report; and

(3)        the Council House Building programme for 2011/12, as set out in Appendix 6 of the report.

(Report circulated)

To consider the report of the Head of Treasury Services – report circulated

The Head of Treasury Services presented the report seeking adoption by the Council of the Treasury Management Strategy Report, incorporating the Annual Investment Strategy 2011/12, as required under section 15(1)(a) of the local Government Act 2003.

Members were advised that the Strategy had been extended to form an overall Treasury Management Strategy as required by the CIPFA Treasury Management Code of Practice.  The Council had taken the decision to disinvest the externally managed fund and to use the investments to reduce overall borrowing.  This had been reflected in the new strategy.  Investments with the highest rated UK banks and local authorities had been increased to £3m per institution (or group of institutions).

In response to Members’ questions, the Head of Treasury Services clarified that there was only a limited number of organisations that the Council could invest with, the Council did not have any flexibility with regards the credit rating agencies it could use and the finances were managed so as to keep borrowing to a minimum.

The Scrutiny Committee - Resources noted the report and recommended that the Executive recommend to Council the adoption of the new Treasury Management clauses for inclusion in Financial Regulations and the Treasury Management Strategy and delegations contained therein.

(Report circulated)

To consider the report of the Head of Corporate Customer Services – report circulated

The Head of Corporate Customer Services presented the report proposing that an application be submitted to Devon County Council for the Guildhall to be licensed for marriages and civil partnerships.

The County Highway Authority had confirmed that it was making changes to the Road Traffic Order which would mean that the Council’s proposal of allowing principal cars to drop off and pick up from the Guildhall could be included in that order. This would be at no charge to the Council.

In response to Members’ questions, the Head of Corporate Customer Services clarified that only one car would be able to drop off and pick up from the Guildhall, the ceremonies would generally be held on alternative Saturdays. There would be a review after 12 months and receptions would not be held at the Guildhall.

The Scrutiny Committee – Resources supported the proposal and recommended that Executive approve the use of the Guildhall for marriages and civil partnerships as detailed in the report.

(Report circulated)

To consider the joint report of the Head of Contracts and Direct Services, Head of Treasury Services and Acting Head of Estates - report circulated

The Head of Contracts and Direct Services presented the report detailing the work proposed to non-housing properties in order to maintain and service such buildings in 2011/12. The work financed from the Asset Improvement and Maintenance fund, referred to as AIM, was contained within the Council’s overall revenue budgets.

The Scrutiny Committee – Resources noted the sum of £1,622,140 which had been split into the categories of work in the year 2011/12, as outlined in the report.

(Report circulated)

To consider the report of the Head of Treasury Services – report circulated

The Head of Treasury Services presented the report outlining the strategic framework within which the estimates had been prepared, changes in accounting practices which affect all budgets and detailed reasons for any significant changes in the Management Unit estimates.

The Scrutiny Committee – Resources noted the report.

(Report circulated)

To consider the report of the Head of Corporate Customer Services – report circulated

The Head of Corporate Customer Services presented the report which sought Members’ views on moving the City’s Sheriff’s Coach from its current location (the Livestock Centre at Matford) to a private collection and storage arrangement. He advised Members that the environmental controls for the storage unit had recently broken down but the cost of repair had not yet been ascertained.

Members supported the proposed relocation of the Sheriff’s Coach and welcomed that the Coach would be added to the list of vehicles available to hire.  They acknowledged that any potential hirings would be first agreed with the City Council, as would the fee, which would then be paid to the Council.

The Scrutiny Committee – Resources supported the storage of the coach as outlined in the report.

(Report circulated)

RESOLVED that, under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of items 15 and 16 on the grounds that they involve the likely disclosure of exempt information as defined in paragraphs 1 and 4 of Part I, Schedule 12A of the Act.

RESOLVED that, under Section 100A (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the consideration of the following items on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 1 and 4 of Part I, Schedule 12A of the Act.

To consider the report of the Head of Treasury Service seeking approval to a restructure of the Accounts Payable and Cashiering Services – report circulated to members

The Head of Treasury Services presented the report seeking approval to a restructure of the Accounts Payable and Cashiering Services to create a new Administrative Finance Service that would provide a comprehensive payment and cashiering service to the Council.

The Scrutiny Committee – Resources noted the report and recommended that the Executive approve:-

(1)        the new structure as outlined in Appendix 1 of the report be approved and implemented in accordance with the Council’s Organisational Change Policy, and any displaced employees be confirmed as redundant; and

(2)        where, despite all efforts, notice of redundancy is confirmed and suitable alternative employment not found, those employees with two or more years’ service be paid a compensation payment upon employment termination in accordance with the discretion exercised by the Council under the provisions of the Local Government (Early Termination) (Discretionary Compensation) (England and Wales) Regulations 2006.

(Report circulated to members)

To consider the report of the Head of Treasury Services seeking approval to a restructure of Housing Benefits – report circulated to members

The Head of Treasury Services presented the report seeking approval to a restructure of Housing Benefits.

The Scrutiny Committee – Resources noted the report and recommended that the Executive approve:-

(1)        that the posts of CS6238, CS6115, CS6210, CS6211 and CS6212 be deleted from the establishment of the Council, and the employment of the holders of those posts be terminated on the grounds of redundancy on 31 March 2011 with compensation being paid to the holders of the posts in accordance with the discretion exercised by the Council under the provisions of the Local Government (Early Termination) (Discretionary Compensation) (England and Wales) Regulations 2006.

(Report circulated to members)