Cabinet - Tuesday, 7th February, 2017 7.00 pm - Agenda and minutes

To confirm the Minutes of the Meeting held on 10th January, 2017 (copy attached).

The Minutes of the meeting of the Cabinet held on 10th January, 2017 were confirmed and signed by the Chairman.

To consider the Head of Financial Services’ Report No. FIN1708 (copy attached), which makes recommendations on the budget, Council Tax Requirement and proposals for budget savings for 2017/18, for submission to the Council on 23rd February, 2017.

The Cabinet considered the Head of Financial Services’ Report No. FIN1708, which made final recommendations on the budget, Council Tax requirement and proposals for budget savings for 2017/18. The Report also set out the General Fund revenue budget summary, detailed base revenue budgets in Cabinet portfolio order, lists of additional items for inclusion in the budget and the Capital Programme.

At its meeting on 20th September, 2016, the Cabinet had considered and endorsed the Head of Financial Services’ Report No. FIN1619 which had included the Council's Medium Term Financial Strategy for 2016/17 – 2019/20 and had set out the high level strategic financial direction for the Council, after taking account of the Medium Term Financial Forecast. The main areas where the Council would be facing increased levels of risk and uncertainty over the medium term were set out in the Report, which also outlined the way in which these increased risks would be mitigated by maintaining current reserves, such as the Stability and Resilience Reserve, to protect the Council from adverse fluctuations in its financial position and the Service Improvement Fund, to ensure sufficient resources were available to progress key invest-to-save projects. This would enable the Council to take a strategic, longer term approach that built upon the Council’s 8-Point Plan, focusing on key projects that would contribute towards the savings required to maintain a balanced budget, while moving the Council towards financial stability in the medium to long term. 

The Cabinet was advised that the Report had been prepared on the basis that there would be no change to the provisional local government finance settlement figure. Any changes which materially altered the figures contained in the budget summary, particularly in respect of the local government finance settlement figure or the operation of the Business Rates Retention Scheme, would be made by the Council’s Section 151 Officer, in consultation with the Leader of the Council, under the delegation arrangements agreed by the Council on 20th January, 2014.

The General Fund Revenue Budget would enable the Council to deliver services at similar to current levels and identified reductions in the level of net spending of £550,000, to be delivered during 2017/18. The General Fund summary showed that the revenue balances were expected to be marginally above £1.5 million by the end of 2017/18. This was at the mid-point of the approved range of balances of £1 million - £2 million and was deemed to be acceptable given the levels of risks and uncertainty that had been identified. The General Fund Revenue Budget assumed a £5 increase in a Band D charge for Council Tax, which accorded with Government policy assumptions and fell within the permissible level of increase before triggering a local referendum. This equated to an increase of 2.66% per annum for a Band D property. The Cabinet was advised that the Business Rate Retention Scheme represented a volatile income stream and, for this reason, it was necessary to maintain sufficient reserves to meet any unforeseen shocks to the system.  ...  view the full minutes text for item 87.

To consider the Head of Financial Services’ Report No. FIN1705 (copy attached), which seeks approval of the Treasury Management Strategy for the year 2017/18, Prudential Indicators for Capital Finance and the Minimum Revenue Provision Statement, for submission to the Council on 23rd February, 2017.

The Cabinet considered the Head of Financial Services' Report No. FIN1705, which set out an update to the Treasury Management and Prudential Indicators for 2016/17, the Treasury Management Strategy for 2017/18, the Annual Borrowing Strategy, the Annual Investment Strategy, the Prudential Indicators for Capital Finance and the Minimum Revenue Provision Statement. Members were reminded that the purpose of the treasury management operation was to ensure that the Council’s cash flow was planned, so that sufficient cash was available when needed but also that any surplus funds were invested in counterparties or instruments, in line with the Council’s agreed Investment Strategy. The Strategy allowed for the use of a wide range of financial institutions and investments, after due consideration of security and liquidity, to enable the generation of improved returns. The Strategy also provided the flexibility to pursue a range of diverse investment opportunities, within appropriate investment boundaries, in line with the advice from the Council's treasury advisers, Arlingclose. It was reported that, while investment holdings remained significant, the Council would incur some borrowing to support the financing of its Capital Programme in the current year.

The Cabinet RECOMMENDED TO THE COUNCIL that approval be given to:

(i)           the revised Treasury Management and Prudential Indicators for the year 2016/17, as set out in Appendix A of the Head of Financial Services' Report No. FIN1705;

(ii)          the Treasury Management Strategy, Annual Borrowing Strategy and Annual Investment Strategy, as set out in Appendix B of the Report;

(iii)         the Prudential Indicators, as set out in Appendix C of the Report; and

(iv)         the Minimum Revenue Provision (MRP) Statement, as set out in Appendix D of the Report.

To consider the Directors’ Management Board’s Report No. DMB1701 (copy attached), which seeks approval of the Council Plan for the year 2017/18, for submission to the Council on 23rd February, 2017.

The Cabinet received the Directors’ Management Board’s Report No. DMB1701, which introduced the draft Rushmoor Borough Council Plan for 2017/18. 

Members were informed that the proposed Council Plan had built on the four priorities and 36 key actions that had been identified by the Cabinet. The development of the Plan had taken into account the need to respond to the continued economic pressures and uncertainty that local government faced. It was confirmed that the document would be regularly monitored to ensure that progress was being made against the agreed priorities.

The Cabinet RECOMMENDED TO THE COUNCIL that the Rushmoor Borough Council Plan 2017/18, as set out in the Directors’ Management Board’s Report No. DMB1701, be approved.

To consider the Head of Financial Services’ Report No. FIN1709 (copy attached), which gives details of applications for discretionary rate relief.

The Cabinet considered the Head of Financial Services' Report No. FIN1709, which set out discretionary rate relief applications made by organisations in respect of the beginning of the new five year rating list, which would take effect from April, 2017.

The Cabinet was reminded that discretionary rate relief was granted to charities and not-for-profit organisations to offset business rate liabilities. The Cabinet Member for Concessions and Community Support had carried out a review of the amounts and periods of discretionary rate relief and had made a number of recommendations, which were set out in the Report. It was proposed that, in the cases of four specific organisations, a different approach should be taken and the reasons for this were set out in the Report. Furthermore, it was proposed that, where organisations had not yet returned an application, the Cabinet Member for Concessions and Community Support should be authorised to decide on the level of relief to be awarded, based on the adopted approach.

The Cabinet RESOLVED that

(i)           discretionary rate relief awards, as set out in the Head of Financial Services’ Report No. FIN1709, be approved;

(ii)          the proposed approach for the four organisations, as set out at paragraph 4.9 of the Report, be endorsed; and

(iii)         where organisations had yet to return an application, the Cabinet Member for Concessions and Community Support be authorised to determine the level of support to be awarded, once the application had been received and assessed.

NOTE:  Cr. P.G. Taylor declared an interest in this item in respect of his involvement with The Triangle bookshop and café, which was, currently, in receipt of discretionary rate relief and, in accordance with the Members’ Code of Conduct, left the meeting during the discussion and voting thereon.

To consider the Head of Environmental Health and Housing’s Report No. EHH1703 (copy attached), which sets out a proposal for the deployment of Right to Buy receipts in support of the regeneration scheme at North Town, Aldershot.

The Cabinet considered the Head of Environmental Health and Housing’s Report No. EHH1703, which sought approval to utilise Right to Buy receipts, including all interest accrued, to the sum of £457,775.67 in support of the North Town regeneration scheme. The regeneration of North Town was a strategic housing priority for the Council. First Wessex had requested that the money was made available to contribute towards the funding of units of affordable housing. The Right to Buy Agreement stated that Right to Buy receipts would be used for the provision of affordable housing in Rushmoor.

The Cabinet RESOLVED that the deployment of Right to Buy receipts, including all interest accrued, to the sum of £457,775.67 in support of the North Town regeneration scheme be approved, as set out in the Head of Environmental Health and Housing’s Report No. EHH1703.

To consider the Head of Environmental Health and Housing’s Report No. EHH1704 (copy attached), which sets out a proposal to develop a wholly owned housing company.

The Cabinet considered the Head of Environmental Health and Housing’s Report No. EHH1704, which set out options for the development of a housing company to help the Council to meet the Borough’s housing needs.

The Report set out details of the demand for private rented accommodation. Officers had researched the options for setting up a housing company, through which the Council would be able to provide private rented homes. It was felt that the development of a wholly owned housing company would best enable the Council to deliver the priority of providing more homes in the Borough.

The Cabinet discussed the proposal and was supportive of the principle of developing a housing company.

The Cabinet RESOLVED that

(i)           the principle of setting up a wholly owned housing company, initially to develop and/or purchase property for private rent lettings, as set out in the Head of Environmental Health and Housing’s Report No. EHH1704, be approved; and

(ii)          the Head of Environmental Health and Housing, in consultation with the Solicitor to the Council and the Head of Financial Services, be authorised to:

-               prepare a brief and seek quotes for external advice on housing market demand, legal, financial, insurance and tax issues arising from setting up a company; and

-               progress the detailed arrangements for setting up the housing company, in consultation with the Cabinet Members for Health and Housing and Corporate Services, as required.

To consider the Head of Environmental Health and Housing’s Report No. EHH1706 (copy attached), which sets out a proposal to consult on the introduction of Public Spaces Protection Orders in Aldershot and Farnborough.

The Cabinet considered the Head of Environmental Health and Housing’s Report No. EHH1706, which set out the provisions set out in the Anti Social Behaviour, Crime and Policing Act 2014 in relation to the introduction of Public Spaces Protection Orders (PSPOs) to control individuals or groups committing anti social behaviour in a public space. The Leader of the Council welcomed Acting Chief Inspector Karen McManus of Hampshire Police and Ms. Caroline Ryan of Safer North Hampshire to the meeting.

The Report set out how, under the new legislation, existing Designated Public Places Orders (DPPOs) in relation to Aldershot and Farnborough would convert to PSPOs. Additionally, it was proposed to introduce new PSPOs in Aldershot and Farnborough town centres. It was reported that there would be some overlap between the new and converted PSPOs and that it was likely, therefore, that the converted PSPOs would be discharged later in 2017.

The Cabinet asked several questions in relation to the changes. Assurance was given that PSPOs could be extended to areas outside of the town centres if evidence was provided of ongoing anti social issues.

The Cabinet RESOLVED that the draft Public Spaces Protection Orders be approved for a period of public consultation.

To consider resolving:

That, subject to the public interest test, the public be excluded from this meeting during the discussion of the undermentioned items to avoid the disclosure of exempt information within the paragraphs of Schedule 12A to the Local Government Act, 1972 indicated against such items:

RESOLVED:            That, taking into account the public interest test, the public be excluded from the meeting during the discussion of the under mentioned items to avoid the disclosure of exempt information within the paragraph of Schedule 12A to the Local Government Act, 1972 indicated against the items:

Minute           Schedule 12A          Categories

Nos.               Para. Nos.

95                    1                                  Information relating to an individual

96 and 97      3                                  Information relating to financial or business                                                      affairs

To consider the Solicitor to the Council’s Exempt Report No. LEG1701 (copy attached), which sets out proposals in respect of the staffing structure within the Council’s Legal and Estates Services Teams.

The Cabinet considered the Solicitor to the Council’s Exempt Report No. LEG1701, which set out proposed changes to staffing within the Council’s Legal and Estates Services.

Members were informed that the work of both the Legal Services and Estates Services teams had changed substantially over the previous year to reflect the Council’s priorities under the 8-Point Plan. In particular, staff had faced an increased workload in respect of making better use of the Council’s assets and seeking to generate additional income from property acquisitions. The Report set out other areas of legal work where the workload had also increased.

The Cabinet was supportive of the additional work being carried out in this area and agreed that the proposals would provide the resources required. 

The Cabinet RESOLVED that

(i)        the establishment changes set out in the Solicitor to the Council’s Exempt Report No. LEG1701 be approved; and

(ii)       the associated costs, as set out in Appendix 3 to the Report, be approved for inclusion in the budget for 2017/18.

To consider the Solicitor to the Council’s Exempt Report No. LEG1703 (copy attached), which sets out a proposal to develop options for the future use of the site at No. 2A Windsor Way, Aldershot.

The Cabinet considered the Solicitor to the Council’s Exempt Report No. LEG1703, which set out a proposal to purchase the leasehold interest of No. 2A Windsor Way, Aldershot. It was reported that the Council was already the freehold owner of the land and property at the site, which was, currently, unoccupied following the vacation of St. John Ambulance, who had used it as an ambulance station. Members heard that, if the Council were to buy the leasehold interest, there would be a number of alternative options for the site. If approved, a further Report would be submitted to the Cabinet in this regard in due course.

The Cabinet RESOLVED that the Solicitor to the Council be authorised to:

-              purchase the leasehold interest, on the terms set in the confidential appendix to the Solicitor to the Council’s Exempt Report No. LEG1703; and

-              prepare options for the future use of the site.

To consider the Solicitor to the Council’s Exempt Report No. LEG1702 (copy attached), which sets out details of two urgency decisions taken in respect of the regeneration of the Union Street East area of Aldershot town centre.

The Cabinet considered the Solicitor to the Council’s Exempt Report No. LEG1702, which notified the Cabinet of two urgency decisions that had been taken in respect of the Union Street East regeneration project. The project involved a number of properties and the Council was making good progress in acquiring those that were necessary to intervene effectively in the regeneration of that part of Aldershot town centre.

The Cabinet RESOLVED that the actions taken, as set out in the Solicitor to the Council’s Exempt Report No. LEG1702, be noted.