Cabinet - Tuesday, 16th February, 2021 6.00 pm - Agenda and minutes

To confirm the Minutes of the meeting held on 19th January, 2021 (copy attached).

The Minutes of the meeting of the Cabinet held on 19th January, 2021 were confirmed.

To consider Report No. FIN2106 (copy attached), which makes recommendations on the budget, Council Tax Requirement and proposals for budget savings for 2021/22, for submission to the Council on 25th February, 2021.

UPDATE AS AT 12TH FEBRUARY, 2021:

Tables 3, 4 and 5 in Report No. FIN2106 have been updated due to an incorrect brought forward balance being stated on:

·                     Stability and Resilience reserve

·                     Other earmarked reserves/Prior year grants

The updated opening balance does not impact on the proposed revenue budget or MTFS projections and it does not change the year in which the Stability and Resilience reserve is forecast to be depleted.

The Cabinet considered Report No. FIN2106, which made recommendations on the budget, Council Tax requirement and proposals for budget savings for 2021/22. Members noted that the Report had been republished prior to the meeting to provide corrected brought forward balances in respect of the Stability and Resilience Reserve and other earmarked reserves/prior year grants.

The Cabinet was reminded that the budget framework had been approved at its meeting on 13th October, 2020. The prospects for the Medium Term Financial Strategy, in the context of ongoing pressures caused by the impact of Covid-19, had been considered at the Cabinet meeting on 8th December, 2020. Members were advised that the Report had been prepared on the basis that there would be no change to the provisional local government finance settlement figure, which had been confirmed on 4th February, 2021 but had been subject to a Parliamentary debate on 10th February, 2021. The Medium Term Financial Strategy continued to provide a risk-based General Fund balance of £2 million being the minimum expected level for total working balances. The Cabinet was advised that, despite the uncertainties around levels of Government funding and the risks around Brexit and the general economic position, the Council had been able to prepare a sound budget that maintained services to residents. It was confirmed that the budget would also provide a platform for the Council to address future challenges.

The Capital Programme of £38.510 million in 2021/22 was set out in Appendix 3 of the Report. It was explained that the Capital Programme was focussed on delivering against the Council’s key priority of town centre regeneration, with further schemes aimed at enhancing the delivery of core services through improvement and enhancement of assets. The main areas where the Council would be facing increased levels of risk and uncertainty over the medium term were set out in Section 8 of the Report. Members were informed that the most significant risks were the uncertainty around the level of local government funding provided by central government, especially in light of the implementation of the Fair Funding Review and ongoing pressures caused by Covid-19. In discussing the details of the Report, it was confirmed to Members that the business case for the provision of a visitor centre at the Southwood Country Park would be submitted to the Cabinet for approval over the following months.

The Cabinet

(i)           RECOMMENDED TO THE COUNCIL that approval be given to:

(a)          the Medium Term Financial Strategy, as set out in Appendix 1 of Report No. FIN2106;

(b)          the additional items for inclusion in the budget, as set out in Appendix 2 of the Report;

(c)          the Council Tax requirement of £6,927,715 for this Council;

(d)          the Council Tax level for Rushmoor Borough Council's purposes of £214.42 for a Band D property in 2021/22;

(e)          the Capital Programme, as set out in Appendix 3 of the Report;

(f)           the Strategy for the Flexible Use of Capital Receipts, as set out in Appendix 4 of the Report;

(g)          the  ...  view the full minutes text for item 50.

To consider Report No. FIN2104 (copy attached), which seeks approval of the Treasury Management Strategy and Non-Treasury Investment Strategy (Investment Strategy) for the year 2021/22, for submission to the Council on 25th February, 2021.

The Cabinet considered Report No. FIN2104, which set out the Council’s proposed Treasury Management Strategy and Non-Treasury Investment Strategy (Investment Strategy) for 2021/22, along with the Minimum Revenue Provision Statement. Members were reminded that the main purposes of the treasury management operation were to ensure that cash flow was adequately planned and to provide funding for the Council’s capital plans. The Council’s investment advisers, Arlingclose, had recommended that the Council should diversify its investment risk wherever possible. Members were also informed that the Council’s investment holdings remained significant and that the accumulating debt in this respect would result in a need to incur some further borrowing to service the Council’s capital expenditure in future years.

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

(i)           the Treasury Management Strategy 2021/22 and Annual Borrowing Strategy 2021/22, as set out in Appendix A of Report No. FIN2104;

(ii)          the Annual Non-Treasury Investment Strategy 2021/22, as set out in Appendix B of the Report; and

(iii)         the Minimum Revenue Provision Statement 2021/22, as set out in Appendix C of the Report.

To consider Report No. FIN2105 (copy attached), which seeks approval of the Council’s Capital Strategy for the year 2021/22, for submission to the Council on 25th February, 2021.

The Cabinet considered Report No. FIN2105, which set out the Council’s Capital Strategy for 2021/22, which included the Prudential Indicators for Capital Finance. Members were informed that this Report complemented the Annual Treasury Management Strategy Report that had been considered earlier in the meeting.

Members were reminded that the purpose of the Capital Strategy was to give an overview of how the Council’s capital expenditure, capital financing and treasury management activities contributed to the provision of local services, along with an overview of how associated risks would be managed and the implications for future financial sustainability.

The Cabinet RECOMMENDED TO THE COUNCIL that approval be given to the Capital Strategy for 2021/22 to 2023/24 and Prudential Indicators for 2021/22, as set out in Appendix A of Report No. FIN2105.

To consider Report No. ACE2101 (copy attached), which provides details of progress made in delivering the priorities set out in the Council’s Business Plan for the third quarter of 2020/21.

The Cabinet received Report No. ACE2101, which set out progress in delivering the Council Business Plan projects during the third quarter of 2020/21. Members were reminded that, following a recent change in reporting arrangements, only projects which were either completed during Quarter 3 or were not on track at the end of Quarter 3 would be included in the report. Members were informed that the majority of projects had been identified as making good progress and details of these could be found on the Council’s website (www.rushmoor.gov.uk/councilplan). Overall, good progress was being made against an ambitious programme of work, taking account of the impact of the current pandemic and ongoing resource constraints.

The Cabinet NOTED the progress made towards delivering the Council Business Plan, as set out in Report No. ACE2101.

To consider Report No. EPSH2104 (copy attached), which seeks agreement for an Aldershot Military Conservation Area.

The Cabinet considered Report No. EPSH2104, which set out a proposed appraisal and management plan, following a review of the Aldershot Military Conservation Area.

Members were informed that a consultation had been carried out on the draft appraisal and six responses had been received. A response from Savills, on behalf of Grainger PLC, stated that the proposed removal of playing fields and open space to the west of the A325 Farnborough Road from the Conservation Area would be at odds with the appraisal, which had identified the importance of open spaces as a key feature of the Conservation Area. It was, therefore, proposed that these areas should Be included within the boundary of the Conservation Area.

The Cabinet RESOLVED that the Aldershot Military Conservation Area Appraisal and Management Plan, to include the historic playing fields to the west of the A325 Farnborough Road within the Conservation Area, as set out in Appendix 1 of Report No. EPSH2104, be approved.