Agenda, decisions and minutes

Apologies for absence were received from Cllr Mrs Beeton.

To confirm the minutes of the meeting held on 7 December 2016 as a correct record.

RESOLVED:

That the minutes of the meeting held on 7 December 2016 be signed by the Chairman as a correct record.

To note any declarations of interest made by members in connection with an agenda item.  The nature of the interest must also be specified.

Members are asked to discuss any possible interests with Democratic Services prior to the meeting.

No declarations of interest were made by any member in connection with an agenda item.

To note any issues raised during the public participation period.

No issues were raised in the public participation period.

To consider the development of the Medium Term Financial Plan for 2017 onwards and to be advised of the factors that will influence its delivery and that of the annual budget strategy for 2017/18.

RESOLVED:

(a)     That the emerging draft Medium Term Financial Plan 2017-2019, as set out in Report Item 4 considered by the Cabinet, be approved to form the basis of the Council’s 2017/18 General fund Budget that will be reported in February 2017; and

(b)     That the commencement of the initial preparatory works with regards to the 2017/18 Asset Maintenance and Replacement and Capital programmes be approved.

The Cabinet was advised that the Government’s Autumn Financial Statement had significant implications for the Council’s budgets.  Although the 4 year guarantee for formula funding had been honoured there had been a significant reduction in the amount of New Homes Bonus that the Council would receive in 2017/18, with £726,000 being diverted to pay for adult social care.  The amount of New Homes Bonus received by the Council had been projected to decrease from 2018/19, but in addition to bringing that reduction forward by one year, the bonus payment would also be reduced in each succeeding year.

The 3 yearly actuarial review of the Hampshire Pension Fund had identified that, in addition to the already budgeted increase in the fixed element, there was also a need to increase the employer rate by 1% per annum over the next 4 years.  A summary of the additional budget requirement was set out in paragraph 4.4 of Report Item 4 considered by the Cabinet and had been built into the latest budget assumptions.

The Cabinet was updated on the revised funding and budget assumptions that had been incorporated in the Medium Term Plan, as set out in sections 5 and 6 of Report Item 4.

Despite the significant last minute reduction in New Homes Bonus, sufficient adjustments had been possible to achieve a balanced budget for 2017/18, as set out in Appendix 2 to Report Item 4 considered by the Cabinet.

Members were reminded that, in order to achieve the savings necessary over the last 3 years there had been a significant reduction in the number of employees, by around 50 full time equivalents (6% of the workforce).  A full summary of the financial implications of the decisions taken was set out in the Council’s Annual Financial Report.  Work was continuing on a number of service reviews, in addition to the budget stabilisation strategy, with the emphasis remaining on achieving efficiencies while protecting front line services.

The proposed Asset Maintenance and Replacement programmes and capital programme were set out in Appendices 3 and 4 of Report Item 4 considered by the Cabinet.  The programme had been supported by the Corporate Overview and Scrutiny Panel (minute 35, 16 December 2016 refers) and the Cabinet was also requested to indicate their support in order that preparatory work could start.  It was noted that General Fund Reserves would be used to support the Capital and Asset Maintenance and Replacement Programmes, as set out in section 9 of the report.

In response to concerns raised by Members, they were advised that representations would be made to Government about the difficulties faced by local authorities when significant elements of funding were removed, as had been the case this year, even though there had been a promise of greater stability through entering into the guaranteed deal for formula funding.  In addition, this area faced significant additional difficulties in attracting New Homes Bonus as a result of the constraints on development imposed by the National Park, which covered a significant  ...  view the full minutes text for item 47.

To consider the development of a commercial property investment strategy.

RESOLVED:

That the Cabinet approves, in principle, the proposal to invest in commercial property either for the purpose of economic development or regeneration within the District, or for the purpose of income generation for the provision of services, or a mixture of both, and requests that a commercial property investment strategy be developed for further consideration by the Cabinet.

The Cabinet considered whether, in principle, the Council should invest in commercial property as a means of promoting economic development or regeneration; or for income generation.  The Council already held 23 such properties that currently achieved a better yield than other investment modes.  Other authorities in the region had, over many years, developed considerably more extensive property investment portfolios.

The report set out in detail the factors that must be taken into consideration in deciding whether to acquire further properties and the potential risks involved. The report analysed the financial implications and the opportunities that could be generated through this route.

It was important that any investment strategy was supported by a clear asset management investment strategy document that would be applied when making investment decisions and consequently demonstrate that the Council was acting prudently in the management of its financial affairs.  The issues that such a strategy should cover were summarised in section 5 of Report Item 5 considered by the Cabinet.

The potential approach to the purchase and management of commercial property was set out in Appendix 2 to Report Item 5 considered by the Cabinet.

The Cabinet was advised of the views of the Corporate Overview and Scrutiny Panel (Minute 34, 16 December 2016 refers).

RESOLVED:

That the Cabinet approves, in principle, the proposal to invest in commercial property either for the purpose of economic development or regeneration within the District, or for the purpose of income generation for the provision of services, or a mixture of both, and requests that a commercial property investment strategy be developed for further consideration by the Cabinet.

To consider the scheme to be recommended to the Council to be applied from 1 April 2017.

RECOMMENDED:

That the current scheme of members’ allowances, with the individual allowances shown therein being increased by 1%, be made as the scheme to apply from 1 April 2017.

The Cabinet considered the Members Allowances Scheme to apply from 1 April 2017.

RECOMMENDED:

That the current scheme of members’ allowances, with the individual allowances shown therein being increased by 1%, be made as the scheme to apply from 1 April 2017.

To consider revised arrangements for the operation of the Industrial Relations Committee.

RESOLVED:

(a)         That with immediate effect, the Industrial Relations Committee be discontinued and replaced with the Employee Engagement Panel (EEP);

(b)         That the EEP meet  4 times per year, and on the following dates in 2017/18, (previously agreed for IRC):

16 February 2017 – 2.30pm

1 June 2017 – 10.00 a.m.

7 September 2017 – 2.30 p.m.

7 December 2017 – 10.00 a.m.

15 February 2018 – 2.30 p.m.

(c)         That the terms of reference of EEP be as set out in Appendix 1 to Report Item 7 considered by the Cabinet;

(d)         That the agenda and reports be not published to the press and public;

(e)         That the arrangements for EEP membership be as follows:

4 Elected Members (+ two nominated substitutes)

2 Unison Representatives (+1 nominated substitute)

1 Unite Representative, (+1 nominated substitute)

1 Representative from GMB. (Can be substituted by GMB, UNISON or UNITE)

[Elected Member appointments to be made by full Council.  The union representatives to be nominated to the Panel’s secretary (Democratic Services) and to be amended by giving notice in writing];

(f)          That the Chairmanship and Vice-Chairmanship alternate between the Employer’s and Employee’s sides, unless it is mutually agreed to vary the arrangement;

(g)         That the agreement of both the Chairman and the Vice-Chairman of the Committee be obtained before any meeting is cancelled;

(h)         That there be a 15 minute employee participation period at the start of each  meeting to allow any non-union member to speak on individual items on the agenda.  Notice of the issue to be raised must be given to Democratic Services two working days in advance of the meeting;

(i)           That the officers be authorised to make any consequential alterations to the Constitution; and

(j)              That operation of the new Panel be reviewed after 12 months.

The Cabinet considered the recommendations of the Industrial Relations Committee that a new Employee Engagement Panel should be established in its place, with revised membership and operating procedures.  Meetings would be more informal than those of the Industrial Relations Committee and would include the opportunity for all members of staff to address the Panel, in a session equivalent to the public participation period at other Member meetings.  The proposal had been supported by the Employee’s side.

The recommendations would also be considered by the General Purposes and Licensing Committee.

RESOLVED:

That, subject to the General Purposes and Licensing Committee also supporting the proposals, the recommendations be approved.

The Council approved the Tax Base for 2017/18 at its meeting on 12 December 2016.  An adjustment to the Totton and Eling figure needs to take place, amending that figure from 9,148.2 properties, to 9,316.4. The whole district figure becomes 70,155.2, from the originally reported 69,987.

RECOMMENDED:

That in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, the amount calculated by this Council as its tax base for the year 2017/18 be as follows;

RECOMMENDED:

That in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, the amount calculated by this Council as its tax base for the year 2017/18 be as follows;

The Cabinet was advised that, subsequent to the Council approving the Tax Base for 2017/18 at its meeting on 12 December 2016 (Minute 41 refers), an adjustment to the Totton and Eling figure was necessary.  That figure should increase from 9,148.2 properties to 9,316.4.  The whole district figure therefore became 70,155.2 from the originally reported 69,987.

RECOMMENDED:

That in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, the amount calculated by this Council as its tax base for the year 2017/18 be as follows: