Agenda, decisions and minutes

The minutes of the meeting held on 10 December 2014 were submitted and approved and the chairman was authorised to sign them as a correct record.

Declarations of disclosable pecuniary interests (DPIs) by members as required under Section 31 of the Localism Act and of other interests as required by the Code of Conduct and regulation 12(2)(d) of the 2012 Access to Information Regulations.  (Please see note at end of agenda).

Declarations of disclosable pecuniary interests (DPIs) by members as required under section 31 of the Localism Act and other interests as required by the council’s code of conduct and regulation 12(2)(d) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.

No declarations were made.

Report of Senior Head of Community.

Cabinet lead member:  Councillor Steve Wallis.

(1) Principle of setting up a wholly owned local authority company for building control services subject to a business case, legal advice and proposed governance arrangements endorsed.

(2) Senior Head of Community given delegated authority to work with Wealden District Council to develop the business case, for consideration at a future Cabinet meeting.

52.1 Cabinet considered the report of the senior head of community.  In April 2011 Eastbourne Borough Council and Wealden District Council had entered into a 5 year partnership agreement for the joint provision of building control services across the respective districts.  The partnership had worked successfully for the past 4 years, however the building control market had grown rapidly and with increased competition from private companies providing building control services and pressures on budgets, councils were facing a reduction of their market share as well as increasing costs.

52.2 To assist in reducing current and future financial pressures it was proposed that the partnership set up a wholly owned local authority company.  Taking advantage of recent developments in public procurement law, this company would then be able to operate more fully in the building control market by offering additional services such as new house warranties, and warranties for extensions and other works, sound resting, fire risk assessments, access audits, energy performance certificates and standard assessment procedure calculations for energy use.  The revenue raised by offering these additional services could be used to off-set the increasing financial burden of the non-chargeable work the council was obliged to undertake to meet its statutory obligations.

52.3 Current costs of delivering the non-chargeable aspects of the service were in the region of £199,000 split (£127,000/£72,000 Wealden/ Eastbourne). Without mitigating the threats coming from the private sector, both councils were at risk from increased costs in performing their statutory building control duties.  The objective would be for costs to remain at the current level and for a reduction over time.

52.4 Resolved (key decision):  (1) That the principle of setting up a wholly owned local authority company for building control services subject to a business case, legal advice and proposed governance arrangements be endorsed.

(2) That the senior head of community be given delegated authority to work with Wealden District Council to develop the business case, for consideration at a future Cabinet meeting

Report of Deputy Chief Executive and Chief Finance Officer and Senior Head of Corporate Development and Governance. 

Cabinet lead members:  Councillors Gill Mattock and Troy Tester.

(1) Performance against national and local performance indicators and actions from the 2010/15 corporate plan (2014 refresh) agreed.

(2) General fund, housing revenue account and collection fund financial performance for the quarter ended December 2014, as set out in sections 3, 4, 5 and 6 of report agreed.

(3) Transfer to and from reserves as set out in appendix 3 to th report approved.

(4) Amended capital programme as set out in appendix 4 to report approved.

(5) Treasury management performance as set out in section 7 of report agreed.

53.1 Cabinet considered the report of the deputy chief executive and chief finance officer and senior head of corporate development and governance reviewing the council’s performance against corporate plan priority indicators and action targets; financial performance of general fund revenue expenditure, housing revenue account and capital programme; and treasury management activities for the third quarter of 2014/15.  Throughout the year, performance against these key indicators and milestones was reported to cabinet on a quarterly basis and to scrutiny committee members each month. 

53.2 Devolved budget scheme progress was highlighted; with a record 80 projects funded and a total spend to date of £81,537.  The projected general fund revenue outturn showed an underspend of £187,000.  This was within 1.1% of the net budget and was within an acceptable tolerance level.  The contingency allowance currently stood at £112,950; £40,000 of which had been earmarked for use leaving a balance of £72,950 for funding any future unforeseen one off areas of expenditure during the remainder of the year.  The projected outturn for the housing revenue account indicated a surplus of £104,000.  Actual expenditure on the capital programme, at 47% of the budget, was lower than expected as a number of schemes had been delayed.  The 2014/15 programme would be re-profiled to reflect start dates and planned works.

53.3 Other performance matters highlighted included:

·         Time taken to process housing and council tax benefit claims where migration to a new system had necessitated a close down period and resultant backlog of work.

·         Good collection fund and investment performance.

·         The impact of tenant refusals on the decent homes programme.

·         The increase in the number of fly-tipping reports being received as a result of the new report-it app.

52.4 Resolved (key decision): (1) That the performance against national and local performance indicators and actions from the 2010/15 corporate plan (2014 refresh) be agreed.

(2) That the general fund, housing revenue account and collection fund financial performance for the quarter ended December 2014, as set out in sections 3, 4, 5 and 6 of the report be agreed.

(3) That the transfer to and from reserves as set out in appendix 3 to the report be approved.

(4) That the amended capital programme as set out in appendix 4 to the report be approved.

(5) That the treasury management performance as set out in section 7 of the report be agreed.

Report of Deputy Chief Executive and Chief Finance Officer.

Cabinet lead member:  Councillor Gill Mattock.

Full Council recommended to approve (a) a general fund budget for 2014/15 (revised) and 2015/16 (original) as set out in appendix 1 to report, including growth and savings proposals for 2015/16 as set out in appendix 2 to report; (b) no increase in council tax for Eastbourne Borough Council resulting in an unaltered ‘Band D’ charge of £224.19 for 2015/16; (c) a general fund capital programme and financing 2014/18 as set out in appendix 3 to the report.

54.1 Cabinet considered the report of the deputy chief executive and chief finance officer setting out the general fund revenue budget proposals for 2015/16 and a 3-year capital programme 2014/18.  The medium term financial strategy (MTFS) had been revised in July 2014 and the cabinet had agreed a draft 2015/16 budget proposal last December. The MTFS and resulting draft budget had been subject to extensive consultation and previously reported to cabinet and members of the scrutiny committee.  Scrutiny committee, at their meeting on 2 February 2015, made no comments and noted the report.

54.2 The budget was the product of various plans and strategies as part of an integrated and corporate planning process and was linked principally to:

·         The medium term financial strategy

·         Asset management plans

·         The corporate plan

·         Workforce strategy

·         Treasury management strategy

·         Service plans

·         Housing revenue account business plan

·         DRIVE corporate transformation programme

·         Sustainable service delivery strategy

54.3 The chief finance officer had a legal responsibility to give positive assurances on the robustness of the estimates used in the budget and the level of reserves.  He commented that if the recommendations in his report were agreed then these assurances would prevail.

54.4 The budget proposals included:

·         No increase in the council tax in 2015/16.

·         Overall savings totalling £1.5m (9% of the net budget).

·         Efficiency savings of £1 (6% of the net budget).

·         Inflation of £0.6m (4% of the net budget).

·         Other recurring service growth of £0.4m.

·         Non recurring service investments of £0.5m.

·         General reserves averaging in excess of £4m (against a minimum recommended of £2m).

·         Capital receipts of £0.8m invested in new capital schemes.

54.5 The budget represented management of financial risks by:

·         Building on a favourable outturn position.

·         Balancing the base budget requirement without needing to use reserves for recurring expenditure.

·         Identifiable and deliverable savings with accountability and no general unidentified targets.

·         Reserves well above the minimum level.

·         Zero basing of minor reward grants.

·         Providing the funding required for the DRIVE change programme to deliver the future savings required by the MTFS via the strategic change fund.

54.6 The underlying methods of local government financing were changing significantly from 2013/14 and 2014/15 onwards and included the wrapping up of grants in the base “Start Up Funding” notably:

• The localisation of council tax grant (previously £1.2m).
• The council tax freeze grants.
• Some new burdens grants.

For Eastbourne the headline figures of the government settlement were:

• A reduction in revenue support grant (RSG) of £1.2m (30%).
• Partially offset by new homes bonus (NHB) (additional £0.2m in 2015/16). 

54.7 The national non-domestic business rate base had increased slightly (£0.2m), largely as a result of the inflationary increase which had been capped at 2%.  In addition to the formula grant, the government was financing the cost of a 1% increase in council tax (£86,000) which it had confirmed would be put in the base for 2016/17 and beyond.  The government had announced that Eastbourne would receive £1.1m in total of NHB due to the growth in housing in the area and  ...  view the full minutes text for item 54.

Report of Deputy Chief Executive and Chief Finance Officer.

Cabinet lead member:  Councillor Gill Mattock.

Full council recommended to approve (a) treasury management strategy and annual investment strategy as set out in report; (b) methodology for calculating the minimum revenue provision set out at paragraph 2.3 of report; (c) prudential and treasury indicators as set out in report; (d) the specified and non-specified investment categories listed in appendix 3 to report.

55.1 Cabinet considered the report of the deputy chief executive and chief finance officer seeking approval to the council’s borrowing and investment strategies in line with legislative and other regulatory requirements as described in the report.  The council was required to receive and approve, the prudential and treasury indicators and treasury strategy as part of the budget setting process each year. This covered:

·       the capital plans (including prudential indicators);

·       a minimum revenue provision policy (how residual capital expenditure was charged to revenue over time);

·       the treasury management strategy (how the investments and borrowings were to be organised) including treasury indicators; and

·       an investment strategy (the parameters on how investments were to be managed).

*55.2 Resolved (budget and policy framework): That full council, at their meeting on 18 February 2015, be recommended to approve the following:

(a) The treasury management strategy and annual investment strategy as set out in the report;

(b) the methodology for calculating the minimum revenue provision set out at paragraph 2.3 of the report;

(c) the prudential and treasury indicators as set out in the report; and

(d) the specified and non-specified investment categories listed in appendix 3 to the report.

Report of Senior Head of Community and Deputy Chief Executive and Chief Finance Officer.

Cabinet lead members:  Councillors Margaret Bannister and Gill Mattock.

Full council recommended to approve (a) HRA budget 2015/16 and revised 2014/15, as set out in appendix 1 to report; (b) rents set in line with the rent convergence target of 2016 set by government resulting in an average increase in rents of 2.28%; (c) void HRA properties due for re-let moved to target rent automatically; (d) service charges for general needs properties increased by 2.31%; (e) service charges for older persons’ sheltered accommodation currently available for let increased by 2.57%; (f) heating costs set at a level designed to recover the estimated actual cost; (g) water charges set at a level designed to recover the estimated cost of metered consumption; (e) garage rents set to increase by 2.28% in line with the average increase in housing rent; (f) delegated authority be granted to the Senior Head of Community, in consultation with the lead cabinet members for community services and finance and the Chief Finance Officer to finalise Eastbourne Homes’ management fee and delivery plan; (i) HRA capital programme as set out in appendix 2 to report.

56.1 Cabinet considered the report of the senior head of community and deputy chief executive and chief finance officer in respect of the rents, service and other charges to be set for all of the council’s housing tenants.  The report outlined the revenue account budget proposals for 2015/16 and housing capital programme 2014/17 and arrangements for agreeing Eastbourne Homes Limited’s (EHL) management fee and delivery plan.

56.2 From the 1 April 2012 the way that council social housing was financed was changed and the HRA became self financing.  This meant that expenditure had to be entirely supported from rental and other income. The main tool for the future financial management of the HRA was the 30 year business plan which had been approved by cabinet on 8February 2012.  The introduction of HRA self financing did not end the requirement to maintain a statutory ring fenced HRA and the council was still required to maintain a separate account for the income and expenditure on council housing.  The report reflected the recommendations made by Eastbourne Homes in relation to the increases in rent levels, service and other charges. 

56.3 The HRA revenue budget (appendix 1 to the report) had been produced based on the policies set out in the HRA 30 year business plan and showed an overall surplus of (£296,130) for 2015/16.  This was mainly due to a number of favourable factors including the rent and service charge review, the change in requirement for the provision of bad debts and the savings from treasury management activities on borrowing.

56.4 The council had been following the government’s guidance for rents for social housing since December 2001.  Under the HRA self-financing settlement the government had assumed that rent convergence would be achieved in 2015/16.  In May 2014, the government issued new guidance setting out its policy on rents for social housing from April 2015.  The new guidance simplified the approach to setting the rent for each property.  The government recognised that some properties would not have reached their formula rent by April 2015 and recommended that rent only moves up to formula rent when the property was re-let following vacancy. It was noted that most the council’s properties had reached convergence; those remaining properties below would now achieve convergence at a slower rate.  The new guidance suggested an increase of 2.2%.  In order to reduce the number of properties trying to reach their formula rent, it was recommended that council rents were set at a slightly higher level with an average increase of 2.28%.  This would eave 5.87% of housing rents outstanding to converge.

56.5 Service charges, heating and water charges were fixed weekly amounts set at a level to recover the expected actual cost to be incurred for the respective properties in the forthcoming year.  Garage rents were recommended to increase in line with the average increase in housing rents 2.28%.

56.6 Total budgeted expenditure on the HRA capital programme was planned at £9,668,512 for 2015/16.  The major works element  ...  view the full minutes text for item 56.

Report of Senior Head of Regeneration, Planning and Assets.

Cabinet lead member: Councillor Steve Wallis.

Community infrastructure levy charging schedule endorsed in line with the recommendations of the examiners final report and full Council recommended to adopt so as to come into force from 1 April 2015.

57.1 Cabinet considered the report of the senior head of regeneration, planning and assets.  The community infrastructure levy (CIL) allowed local authorities in England and Wales to raise funds from developers undertaking new building projects.  It effectively replaced much of the existing process of planning obligations commonly known as 'section 106' agreements.  The primary use of CIL was to gain financial contributions from certain types of viable development to help fund new or improved strategic infrastructure required to support the growth identified in a local authority’s core strategy.  CIL placed a charge per square metre on development.  It would not be the sole funding source for all infrastructure delivered, but would supplement other public sector revenue streams.

57.2 The council had prepared a community infrastructure levy (CIL) charging schedule which is proposed for adoption.  This document had undergone extensive public consultation in line with the CIL regulations, and had been through the relevant examination stages.  The examination was dealt with via written representations, and the production of matter statements in November/December 2014.  The council received the examiners final report on 12 January 2015 which concluded that the charging schedule, subject to one modification, was sound and should be adopted by the council.

57.3 The council had proposed rates of £50 per square metre for residential (C3) development, and £80 per square metre for retail (A1-A5) development.  All other uses would be subject to no charge.  The rates would be charged in all parts of the borough excluding those that were within the South Downs National Park.

57.4 The examiner’s report recommended a modification, now made, to exempt residential apartments from CIL liability.  It was felt that the evidence demonstrated that the CIL charge would affect the viability of apartment development, which would in turn prevent that type of residential development coming forward for development.

57.5 The proposed rates were justified by evidence and ensured that they did not compromise the ability for the council to deliver its spatial development strategy.  It was in the interest of the council to adopt the charging schedule on 1 April 2015, at which date further significant restrictions are placed on Section 106 agreements.

57.6 Planning committee, on 3 February 2015, had also received a report on this matter and had noted the contents.

*57.7 Resolved (budget and policy framework):  That cabinet endorse the community infrastructure levy charging schedule in line with the recommendations of the examiners final report and recommend full council to adopt and come into force as from 1 April 2015.

The Chief Executive considers that discussion of the following item is likely to disclose exempt information as defined in Schedule 12A of the Local Government Act 1972 and may therefore need to take place in private session.  The exempt information reason is shown beneath the item listed below.  Furthermore, in relation to paragraph 10 of Schedule 12A, it is considered that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. (The requisite notices having been given under regulation 5 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.)

(Note: Exempt papers are printed on pink paper).

Resolved:  That the public be excluded from the remainder of the meeting as otherwise there was a likelihood of disclosure to them of exempt information as defined in schedule 12A of the Local Government Act 1972.  The relevant paragraph of schedule 12A and description of the exempt information are shown in minute 59 below.  (The requisite notices having been given under regulation 5 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.)

Report of Senior Head of Community.

Cabinet lead member: Councillor Margaret Bannister.

Exempt information reason 3.  Information relating to the financial or business affairs of any particular person (including the authority holding that information).

(1) Proposals for the award of small grants as recommended by Grants Task Group approved

(2) Reasons given by Task Group for the allocation of funding based on an assessment against the criteria set out in the Council’s community grants policy endorsed.

(3) Remaining eligible applications refused.

(4) Resolutions subject to approval by full Council’s of budget for 2015/16.

59.1 Cabinet considered the report of the senior head of community on the small grants element of the community grants programme.  It was proposed that a budget of £60,000 be made available.  Given the financial constraints on the Council at present, the proposed budget continued to protect the voluntary and community sector as a whole from significant reductions in spending on their activities by this Council.

59.2 In addition to the small grants programme, cabinet had previously agreed major grants for the three years from 2013/14 to 2015/16 as follows:

Citizen’s Advice Bureau                    £115,000

East Sussex Credit Union                 £  15,000

Salvation Army                               £  19,000

Eastbourne & Wealden YMCA            £  40,000

3VA                                                £  14,000

Total                                              £203,000 

59.3 It was reported that the council also supported voluntary and community organisations in a variety of other ways including:

·         The award of rent support grants to some organisations occupying Council properties to the value of £148,250. 

·         Discretionary rate relief awards to voluntary and community sector occupying premises in the town with a budget in 2013/14 of £41,671.

·         the council’s housing service awards grants totalling £58,500 for work to prevent homelessness using funds provided for this purpose by the Department of Communities and Local Government.

·         Allocation of £90,000 each year to the council’s devolved ward budget scheme, with ward councillors were able spend up to £10,000 on quick fix one-off works or initiatives to improve the lives of local residents. Local residents could make suggestions on how this money should be spent by contacting their local councillor.

In total the council’s direct support to voluntary and community organisations amounted to over £541,521. 

59.4 Fifty two expressions of interest were submitted totalling £322,924.  Thirty three organisations had submitted eligible applications and were therefore invited to apply in full. Twenty eight full applications were received then requesting £144,733, more than twice the amount of grant funding available.  Of these, two were found to be ineligible for funding under the small grants programme.

59.5 The current community grants policy agreed by cabinet in 2012 set out the eligibility criteria for applications. These were designed to reflect the limited budget available and the wide demand for funding within the voluntary and community sector. The aim was to ensure that resources were spent where services were most needed and that robust arrangements were in place for managing any grant.  Applications for large capital items could not be considered.  Similarly applications for services which duplicated existing services and were available and funded elsewhere were ineligible. There must also be a clear financial need for funding and organisations with large unrestricted reserves or which made a significant surplus could not be funded.  The policy also excluded any organisation which itself awarded grants to other organisations.  Applicants were also required to have adequate governance and equality policies in place.

59.6 Sixteen expressions of interest with a total value of over £133,000 were deemed to be ineligible this year and a further two applications with a total value of £16,000 were deemed to  ...  view the full minutes text for item 59.