Cabinet - Tuesday, 2nd February, 2016 4.30 pm - Agenda and minutes

To confirm the Minutes of the Meeting held on 12th January, 2017 (copy attached).

The Minutes of the meeting of the Cabinet held on 12th January, 2016 were confirmed and signed by the Chairman.

To consider the Head of Financial Services’ Report No. FIN1603 (copy attached), which makes recommendations on the budget, Council Tax Requirement and proposals for budget savings for 2016/17, for submission to the Council on 25th February, 2016.

The Cabinet considered the Head of Financial Services’ Report No. FIN1603, as amended at the meeting, which made final recommendations on the budget, Council Tax requirement and proposals for budget savings for 2016/17. 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 17th November, 2015, the Cabinet had considered and endorsed the Head of Financial Services’ Report No. FIN1518, which had included the Council's Medium Term Financial Strategy for 2015/16 – 2018/19 and 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 update to the Report provided a revised General Fund Summary due to the finalisation of the Council’s estimates for business rates for both 2015/16 and 2016/17, as reported to DCLG via the submitted NNDR1 form.

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 £900,000, to be delivered during 2016/17. The General Fund summary showed that the revenue balances were expected to be around £1.5 million by the end of 2016/17. 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 1.99% increase in 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 £3.66 per annum for a Band D  ...  view the full minutes text for item 79.

To consider the Head of Financial Services’ Report No. FIN1602 (copy attached), which seeks approval of the Treasury Management Strategy for the year 2016/17, Prudential Indicators for Capital Finance, the Minimum Revenue Provision Statement and revisions to treasury management practices, for submission to the Council on 25th February, 2016

The Cabinet considered Head of Financial Services' Report No. FIN1602, which set out the Treasury Management Strategy for 2016/17, the Annual Investment Strategy, the Prudential Indicators for Capital Finance, the Minimum Revenue Provision Statement and revisions to treasury management practices. 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.  This approach was in line with the latest advice from the Council's treasury advisers, Arlingclose.

            The Cabinet RECOMMENDED TO THE COUNCIL that

(i)           the Treasury Management Strategy, Annual Borrowing Strategy and Annual Investment Strategy, as set out in Appendix A of the Head of Financial Services' Report No. FIN1602, be approved;

(ii)          the Prudential Indicators, as set out in Appendix B, be approved; and

(iii)         the Minimum Revenue Provision (MRP) Statement, as set out in Appendix C, be approved.

To consider the Head of Community and Environmental Services’ Report No. COMM1602 (copy attached), regarding the outcomes of a recycling assessment carried out under the Waste (England and Wales) Regulations 2012 (as amended in 2014).

The Cabinet considered the Head of Community and Environmental Services’ Report No. COMM1602, which set out the results of a recycling assessment carried out under the Waste (England and Wales) Regulations 2012 (as amended in 2014).

It was reported that local authorities were required to maximise high quality recycling and apply the waste hierarchy as a priority order for the management of waste materials. The legislation required authorities to collect the range of materials separately but only where it was “Technically, Environmentally and Economically Practicable” (TEEP) to do so. Members heard that the Council, along with all other authorities within Hampshire, collected mixed recyclable materials in one container, with glass collected in a separate container. It was considered that the Council’s recycling yield was, currently, relatively low and this yield would decrease if residents were asked to further sort recycling materials into additional containers. Rushmoor’s assessment had been carried out in conjunction with consultants White Young Green and the Report broke down the process used.

The Cabinet RESOLVED that the TEEP assessment, as outlined in the Head of Community and Environmental Services’ Report No. COMM1602, be endorsed and that the current collection system be deemed fit for purpose.

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:

Item                Schedule      Category

Nos.               12A Para.

                        Nos.

6                      3                      Information relating to financial or business affairs

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      Categories

Nos.               12A Para.

                        Nos.

83                   3                      Information relating to financial or business affairs

To consider the Solicitor to the Council’s Exempt Report No. LEG1601 (copy attached), which sets out issues relating to the acquisition of a premises at the Blackwater Valley Industrial Park in Aldershot.

The Cabinet considered the Solicitor to the Council’s Exempt Report No. LEG1601, which sought approval for the purchase of the leasehold interest in Unit No. 20 Blackwater Valley Industrial Estate, Aldershot as an investment asset, subject to securing a pre-let.

Members heard how discussions had been held with the current leaseholders and that they were willing to surrender the lease for an appropriate payment. It was anticipated that this unit would attract a rent of up to £7 per square foot. Members were informed that a potential tenant had been identified. It was explained that this business would be displaced from its current location, should the council proceed with the purchase of its preferred site for its refuse and street cleansing depot. The purchase price had been recommended by the Council’s professional valuer.

The Cabinet RESOLVED that

(i)         subject to obtaining a pre-let agreement with the prospective tenant, a variation to the 2015/16 Capital Programme, in the sum of the purchase price of Unit No. 20 Blackwater Valley Industrial Estate, as set out in the Solicitor to the Council’s Exempt Report No. LEG1601, be approved; and

(ii)        if required, the establishment of a sinking fund towards future repairs and maintenance of the unit be approved.

On behalf of the Cabinet, the Leader of the Council thanked Mr. David Quirk for his excellent and long service to the Council and wished him well for his retirement. Mr. Quirk had been a great asset to the Council and would be deeply missed by Members and Officers.