Council and councillors

To receive Report No.19/2016 from the Director for Resources.

Members are requested to bring their copy, distributed under separate cover.

·         The above report was presented at Cabinet on 12 January 2016.

·         Cabinet has requested that Scrutiny review and comment on proposals before the Cabinet meeting on 9 February 2016 so as to inform the decision-making process.

·         The report and its proposals and the date which it is presented to Cabinet may be amended following the outcome of the Scrutiny panel.  Scrutiny is therefore asked to consider the report and provide feedback to the Portfolio Holder and Director.

Report No. 19/2016, which was previously circulated under separate cover, was received from the Director of Resources.  The Assistant Director (Finance), Mr Della Rocca, introduced the report.   

During discussion the following points were noted:

a)    The Council’s overall financial position had changed since the Quarter 2 financial management report.

b)    The proposed plan to increase Council Tax by 3.99% would be the first increase in 6 years but would still leave a £2.4 million funding gap by 2019/20.

c)    Costs were increasing because of the introduction of the Apprenticeship Levy, and changes in National Insurance Contributions and the Pension Fund Costs.

d)    The increase in the number of Deprivation of Liberty Safeguarding cases following the Supreme Court judgement in October 2015 and the rise in the ageing population had caused the budget to be increased from £30k to £150k. 

e)    £399k had so far been saved within the People Directorate.  The target for 2015/16 was £300k.

f)     The 2015/16 ‘over-spend’ in the Home Care budget would be covered by the under-spend in the other services and budgets had been rebased from 2015/16 to cover this.

g)    The recruitment of good quality social workers was important to the service so funding was required to entice people to work in Rutland.

h)   The commissioning of services continued to be a high priority within the Directorate.  It is the intention for contracts to be commissioned on a Payment by Results (PBR) method so ensuring value for money.  The Head of Commissioning, Karen Kibblewhite, specialised in renewing contracts and decreasing costs not just in the People Directorate but across the Council as a whole.

i)     Public health costs were constantly being reviewed to ensure better value for money.

j)      The budget for the Better Care Fund had not yet been confirmed by Central Government so the budget was based on 2015/16 figures.  This would be amended once the actual budget had been confirmed.

k)    The number of vulnerable people requiring support in Rutland was rising so more efficiency was required to provide a good quality service within the allocated budget.

l)     There was an increased cost regarding the specialist support needed for children.  The Long Term Children’s Care Team was now fully staffed – the first time in a long while.

m)  The budget for ‘Youth Housing’ had decreased by nearly £23k.  This was the result of using the provision for other means and the non-replacement of staffing vacancies.  However, changes would still need to be made to the budget in light of the ongoing ‘Youth Services Review’.

n)   There was a ‘high cost’ children’s placement of £100k which was not included in the budget figures as the costs involved were unknown at the time of publication.  The budget figures would be amended in due course.

o)    More schools were becoming Academies and therefore not under Local Authority control so fewer School Officers were needed, leading to a decrease in the budget.

AGREED:

1.    That the Panel NOTED the content of the Report.

2.  ...  view the full minutes text for item 529

To receive Report No.19/2016 from the Director for Resources.

Members are requested to bring their copy, distributed under separate cover.

·         The above report was presented at Cabinet on 12 January 2016.

·         Cabinet has requested that Scrutiny review and comment on proposals before the Cabinet meeting on 9 February 2016 so as to inform the decision-making process.

·         The report and its proposals and the date which it is presented to Cabinet may be amended following the outcome of the Scrutiny panel.  Scrutiny is therefore asked to consider the report and provide feedback to the Portfolio Holder and Director.

Report No. 19/2016, which was previously circulated under separate cover, was received from the Director of Resources.  The Assistant Director (Finance), Mr Della Rocca, introduced the report.   

During discussion the following points were noted:

a)    The Council’s overall financial position had changed since the Quarter 2 financial management report.

b)    The proposed plan to increase Council Tax by 3.99% would be the first increase in 6 years but would still leave a £2.4 million funding gap by 2019/20.

c)    Costs were increasing because of the introduction of the Apprenticeship Levy, and changes in National Insurance Contributions and the Pension Fund Costs.

d)    The increase in the number of Deprivation of Liberty Safeguarding cases following the Supreme Court judgement in October 2015 and the rise in the ageing population had caused the budget to be increased from £30k to £150k. 

e)    £399k had so far been saved within the People Directorate.  The target was £300k.

f)     The 2015/16 ‘over-spend’ - in the Home Care budget - would be covered by the under-spend in the other services and budgets had been rebased from 2015/16 to cover this.

g)    The recruitment of good quality social workers was important to the service so funding was required to entice people to work in Rutland.

h)   The commissioning of services continued to be a high priority within the Directorate.  It is the intention for contracts to be commissioned on a Payment by Results (PBR) method so ensuring value for money.

i)     Public health costs were constantly being reviewed to ensure better value for money.

j)      The budget for the Better Care Fund had not yet been confirmed by Central Government so the budget was based on the 2015/16 figures.  This would be amended once the actual budget had been confirmed.

k)    Savings within the Better Care Fund would be rolled over into the next financial year in order to cover related costs if the targets were not met.  Any underspend would stay within the Better Care Fund, it could not be moved to cover another area.

l)     Adult Social Care Services would be supported by the 2% increase in Council Tax.  If there was no increase in Council Tax then savings would have to be found from other areas but not from front-line services.

m)  The number of vulnerable people requiring support in Rutland was rising so more efficiency was required to provide a good quality service while staying within the allocated budget.

---oOo---

Mr J Dale and Ms S Gullan-Whur arrived at 7.04 p.m.

---oOo---

n)   The budget for children’s oral health was £200k.  This included a one off payment of £50k in order to support a rising issue within Rutland.

---oOo---

Miss R Burkitt and Mr E Baines arrived.at 7.08 p.m.

---oOo---

AGREED:

1.    That the Panel NOTED the content of the Report.

2.    That the Panel NOTED the hard work that had gone into the Budget and the Medium Term Financial Plan.

To receive Report No.19/2016 from the Director for Resources.

Members are requested to bring their copy, distributed under separate cover.

·         The above report was presented at Cabinet on 12 January 2016.

·         Cabinet has requested that Scrutiny review and comment on proposals before the Cabinet meeting on 9 February 2016 so as to inform the decision-making process.

·         The report and its proposals and the date which it is presented to Cabinet may be amended following the outcome of the Scrutiny panel.  Scrutiny is therefore asked to consider the report and provide feedback to the Portfolio Holder and Director.

520      REVENUE AND CAPITAL BUDGET 2016/17 AND MEDIUM TERM FINANCIAL PLAN

Report No. 19/2016 from the Director for Resources was received.

The Assistant Director for Finance made a short presentation, the purpose of which was to show Members an overview of the Council’s current and future financial position.

Councillor Mathias made a short statement to the panel as a member of the Cabinet.

---oOo---

7.40pm Mr Mathias left the meeting and did not return.

---oOo---

The Director for Resources introduced the report with a brief introduction outlining the Resources Directorates Savings and Pressures.

During the discussion the following points were noted:

i.          In reference to page 7, paragraph 2.8 Members did not want to see the borrowing of money increased. In response to Members concerns Mr S Della Rocca assured the panel that the Council would be borrowing money internally and that this was the preferred option as the cost of borrowing would be outweighed by revenue savings in due course.  Mrs Briggs explained that the Council would be looking at further invest to save proposals in the future;

ii.         Members raised concerns about the current financial position of the Council and why this situation had arisen. Mrs Briggs stated that the Council had been planning ahead and looked at a 5-7 year window. Rutland County Council (RCC) were in a more positive position than some other Local Authorities because of the planning that had been undertaken.  Mr Della Rocca explained that the funding methodology had changed from prior years;

iii.         If RCC did not raise Council Tax rates then the current predicted funding gap would increase;

iv.        Members requested that the public be notified why RCC are in this position and why we are having to raise Council Tax rates. Mrs Briggs informed the panel that a budget consultation was currently underway on the RCC website, displays had been placed in Customer Services and all RCC sites including libraries contained information on this;

v.         Members requested Officers to give consideration to setting up a Local Authority company. Mrs Briggs said that this would be considered but had to be the right opportunity for the Council going forward. Oakham Enterprise park was a good example of this;

vi.        Mrs Mogg explained to the panel that there was not a capital sum for IT equipment as provision was contained within the Revenue budget;

vii.       Members raised concerns in regards to the Pension provision. Mrs Mogg explained that RCC were part of the Local Government scheme and as such ad-hoc amendments could not be made;;

viii.       Members asked if RCC looked at sharing services and resources with other Local Authorities. Mrs Briggs assured the panel that this was continually being looked at across the Authority. The zero budget proposal for the Places Directorate would be able to look at this in more detail;

ix.        Members asked if any savings or reductions had been considered that were not included within the final report. Mrs Mogg stated that there was  ...  view the full minutes text for item 520

To receive Report No.19/2016 from the Director for Resources.

Members are requested to bring their copy, distributed under separate cover.

·         The above report was presented at Cabinet on 12 January 2016.

·         Cabinet has requested that Scrutiny review and comment on proposals before the Cabinet meeting on 9 February 2016 so as to inform the decision-making process.

·         The report and its proposals and the date which it is presented to Cabinet may be amended following the outcome of the Scrutiny panel.  Scrutiny is therefore asked to consider the report and provide feedback to the Portfolio Holder and Director.

515      REVENUE AND CAPITAL BUDGET 2016/17 AND MEDIUM TERM FINANCIAL PLAN

Report No. 19/2016 from the Director for Resources was received.

The Assistant Director for Finance made a short presentation, the purpose of which was to show Members an overview of the Council’s current and future financial position.

Councillor Mathias made a short statement to the panel as a member of the Cabinet.

The Directors for Places introduced the report with a brief introduction outlining the Places Directorates Savings and Pressures.

---oOo---

6.20pm Mr W Cross joined the meeting

---oOo---

During the discussion the following points were noted:

i.          Members asked what the length of time would be to recover the £100,000 spend on the solar panels for Oakham Enterprise Park. Mr Phillipson explained to the panel that this would be likely to take 7.5 – 8 years if the panels are fitted as soon as possible;

ii.          Members raised concerns in regards to the £9.56 million set aside for specific projects/areas. The panel was reassured that any projects relating to these funds were holding pending allocation and that Cabinet or Council would have to approve their usage when plans are submitted.  ;

iii.         Rutland County Council (RCC) has one of the highest Council tax charges amongst Unitary Authorities but Mr S Della Rocca explained that this is because the Council is inefficient or wasteful as its spending per head is low.  The Chief Executive pointed out that  if the Council had not accepted freeze grant in the past year then its funding position would be worse;

iv.        Members raised their concerns in regards to the pension funds and costs of this to the Authority. Mrs Mogg explained that the Council could not opt out of the Pension Fund. Mr S Della Rocca assured the panel that whilst there were few options available to the Council a meetings will be held with the pension providers to look at what could be done;

v.         Members raised their concerns about cost centre 1537 – Pool Cars and Car Hire and its £100,000 budget. Members asked if the Authority had enquired about electric vehicles. Mr D Brown stated that the Authority had made £250,000 worth of savings since using the new pool car system. The technology for electric vehicles was not practicable at the time of entering into the contract but would be kept under review;

vi.        Members asked what the future held for the Authority in light of the financial projections.. Mrs Briggs assured the panel that the Authority were in a better position that others and will continue to plan ahead to balance the budgets and look at other ways of generating income;

vii.        Cost Centre 2615 – Closed Churchyards – Members asked if Parishes or Churches could assist with the maintenance of the closed churchyards. Mr T Mathias explained that we as an Authority have a legal obligation to take over responsibility of any closed churchyards but would look at negotiations to reduce costs;

viii.       Members  ...  view the full minutes text for item 515

(KEY DECISION)

Report No. 19/2016

Report No. 19/2016 from the Director for Resources was received.

The Assistant Director – Finance, Mr Della Rocca, introduced the report, the purpose of which was that the Council was required to set a balanced budget and agree the level of Council Tax including whether a social care precept of up to 2% should be levied for 2016/17.  The report presented a draft budget and updated Medium Term Financial Plan to be approved for consultation prior to the budget being formally set in February 2016.

During consideration the following points were noted:

i)             That there was one new capital project to be approved, solar photovoltaic panels at Oakham Enterprise Park, at a total of £100k.  The Director for Places (Development and Economy), Mr Phillipson, advised Members that with the installation of the solar panels the Authority was looking to save £7k in the first year; after 8 years the panels should have paid for themselves and over the lifespan of the panels (20 years) income of £279K was expected; a cumulative figure from the fuel savings and government feed-in tariff.  It was noted that solar panels would also help to reduce the carbon footprint of the industrial estate.

ii)            That further initiatives were contained within the budget report.

iii)           That Cabinet could receive specific reports on the business case for an initiative prior to agreement being given.

iv)           The refurbishment of the Rutland Active Hub was designed to allow for solar panels.

v)            If the Oakham Enterprise Park Solar Panel project was approved by Cabinet and Council a progress report could be placed on the Cabinet Forward Plan.

vi)           The reduction to funding as a result of the reform of the New Homes Bonus was based on the policy questions included in the Government consultation; subsequent conversations with the Minister and other local authorities implied that the conclusions contained within the report were correct.

vii)         Members queried the difference in £’s between 3.75%, referred to on several occasions in the report and the 3.99% that was being sought.  Members were advised that for a Band D property this equated to £3.50 per annum.  Mr Della Rocca was requested to provide a table for the Scrutiny Panel meetings to show the differences in increases at 1%, 2% etc up to 3.99%.

viii)        Members were advised that £379k non pay inflation related to inflation assumptions built into the budget to allow for non pay on utilities, business rates and consumables. 

THE MEETING RETURNED TO PUBLIC SESSION

DECISIONS

1)    Cabinet APPROVED for consultation:

·         The General Fund Budget for 2016/17 detailed in Section 3 of Appendix 1 of Report No. 19/2016

·         The savings proposals set out in Appendix 6 of Report No. 19/2016.

·         The service pressures contained within Appendix 7 of Report No. 19/2016 and other pressures listed in 3.5.1. of Appendix 1 of Report No. 19/2016 including the interim cost reduction programme

·         The indicative Directorate budgets per Appendices 3 – 5 of Report No. 19/2016

·         That Council Tax for 2016/17 is increased by  ...  view the full minutes text for item 507