Agenda and minutes

The minutes of the meeting held on 6 November 2013 and 9 December 2013 were submitted and approved and the Chairman was authorised to sign them as a correct record.

None reported.

Report of the Chief Finance Officer

Scrutiny considered the report of the Chief Finance Officer setting out the general fund revenue budget proposals for 2014/15 and a 3-year capital programme 2013/17. The medium term financial strategy (MTFS) had been revised in July 2013 and the Cabinet had agreed a draft 2014/15 budget proposal last December. The MTFS and resulting draft budget had been subject to extensive consultation and previously reported to Cabinet and the Scrutiny Committee.

The budget proposals included:

• No increase in the council tax in 2014/15.
• Overall savings totalling £0.808m (5% of the net budget).
• Efficiency savings of £0.608 (2.6% of the net budget).
• Inflation of £0.430m (2.6%).
• Other recurring service growth of £0.421m.
• Non recurring service investments of £0.446m.
• General reserves averaging in excess of £3.8m (against a minimum recommended of £2m).
• Capital receipts of £0.8m invested in new capital schemes.  Available earmarked reserves in addition to the budget:
• Strategic change fund £0.7m.
• Economic regeneration reserve of £0.5m.

The budget represented management of financial risks which were highlighted within the report.

The headline figures of the 2-year government settlement were detailed within the report.

The national non-domestic business rate base had reduced slightly

(£50,000) largely as a result of additional appeals, this was a provisional

figure that would not be finalised until 31 January as the government

had only just released the form used to calculate the base. In addition

to the formula grant, the government was financing the cost of a 1%

increase in council tax (£81,000) which it had confirmed would be put in

the base for 2015/16 and beyond. The government had announced that

Eastbourne would receive £897,000 in total of new homes bonus due to

the growth in housing in the area and the further reduction in empty

properties. Of this £500,000 would be transferred to the regeneration

reserve to fund economic initiatives in line with the MTFS. The grant was

paid in tranches for six years. The funding was not guaranteed beyond a

6 year horizon for each tranche. The projected award for 2015/15 was

£1.3m. The Council’s policy as outlined in the MTFS was to utilise any

surplus grant for economic regeneration initiatives. A separate reserve

had been set aside for that purpose. The government was financing the

additional new homes bonus from reductions in revenue support grant,

therefore, whilst volatile, it was becoming the preferred method of

distribution of resources.

Members noted that there would be no increase in council tax for 2014/15 was proposed and this would result in an unchanged band D rate of £224.19 (14% of the total council tax bill). A summary of the resources available was given wither in the report.  In order to achieve a balanced budget without using reserves, the Council would need to set a net expenditure budget for 2014/15 of £16.665m.

In December the Cabinet put forward their draft budget proposals, the main movements since then were detailed in appendix 1 to the report.

Details of proposed growth and savings were given in full in appendix 2  ...  view the full minutes text for item 22.

Report of the Deputy Chief Executive

Members considered the report of the Deputy Chief Executive and Chief Finance Officer updating Members on the Council’s performance against Corporate Plan Priority actions, indicators and milestones for 2012/13.

Members were advised that Appendix 1 detailed activities and outturns of the performance indicators listed within the Corporate Plan 2013/14.

The first section of Appendix 1 listed all the Corporate Plan priority actions whose in-year milestones had already been fully completed this year.

The second section of Appendix 1 listed the ongoing actions showing all milestones that were scheduled for completion in quarter 3 of 2013/4 and any incomplete milestones from earlier in the year along with commentary to explain the context behind them.

Of the 37 Key Performance Indicators reported in the Corporate Plan this quarter, 8 were currently showing as “Red,” 17 were showing as “Green,” 4 were showing as “Amber” and 8 were “data only” or contextual PIs.  The off target PIs were;

• TL_041 Number of visitors (day visitors and staying trips)
• ECSP_004 Violent crime in a public place
• TL_014 Towner visitors
• CD_008 Decent Homes programme
• CD_052 Number of homes where Category 1 hazards have been remedied
• CD_055 Number of completed adaptations
• CD_056 Average number of days for assistance with adaptations
• CS_011 Telephone call abandonment rate

Members noted the position of the General Fund as of the end of December showed a positive variance of £40,000 which was a movement of £118,000 compared to the position reported at the end of the second quarter in September. Service expenditure had a variance of £141,000 a positive variance from September £40,000.  The main reasons for the improvement were detailed within the report.

The projected outturn showed a favourable variance of £30,000, this was within 0.17% of the net budget and was within an acceptable tolerance level.  The contingency allowance currently stood at £241, 529 and had been used to offset service expenditure. Therefore there was no further funding available for any future unforeseen one off areas of expenditure during the year.

Financial procedure rules require all virements requests over £10,000 for revenue expenditure to be approved by Cabinet. There was one request for this quarter as set out in Appendix 3and related to the approved phased reduction in the grant payable to the Allotments Society.  Cabinet’s approval would also be sought for the transfer from reserves as set out in Appendix 3. These transfers were in line with the approved financial strategy.

The updated capital programme was shown at Appendix 4 of the report.  Actual expenditure at 52% of the budget was lower than expected as a number of schemes had been delayed in starting or had not yet started in particular in the following areas but expenditure was expected in the next quarter:

·         Housing Major Works schemes

·         Support Housing in Eastbourne Programme

·         Coastal Defence Works

·         Play Equipment

·         IT software upgrades

·         Bandstand works.

The 2013/14 programme had now been re-profiled to reflect start dates and planned works.

Members noted that he HRA surplus variance was due to a reduction  ...  view the full minutes text for item 23.

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 paragraphs of schedule 12A and descriptions of the exempt information are shown in the item below. (The requisite notices had been given under regulation 5 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.)

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 reasons are shown beneath the items 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 minutes of the meeting held on 6 November 2013  were submitted and approved and the Chairman was authorised to sign them as a correct record.