Agenda and minutes

Apologies for absence were submitted on behalf of Councillors Crooks, Richards and Smith.

Minutes of the meeting held on 21 November 2016.

It was moved by Councillor Camamile, seconded by Councillor Cope and

RESOLVED - The minutes of the meeting of Finance & Performance Scrutiny held on 21 November 2016 be confirmed and signed by the Chairman.

No interests were declared at this stage.

To receive the 2017/18 – 2020/21 Medium Term Financial Strategy (MTFS). Members are asked to recommend the MTFS to Council.

Members were presented with the refreshed Medium Term Financial Strategy (MTFS) summary for 2016/17 to 2020/21. Key areas highlighted were the Developing Communities Fund of £1.4m, the use of the waste management reserve which would result in a borrowing requirement to fund a new fleet, business rates income and a contingency for losses on appeals.

During discussion, concern was expressed in relation to business rates and the need to ensure provision for appeals and reduction in rates was emphasised. It was highlighted that, should a large business leave the borough, this would have a great impact on the finances of the authority. The Head of Finance assured members that the provision made was sufficient and prudent.

Councillor Taylor entered the meeting at 6.58pm.

Concern was also expressed at the intention to deplete the waste management reserve and then to fund a new fleet by borrowing which, in turn, increased concern that there may be an intention to outsource refuse collection. Members wished it to be recorded that they would not support outsourcing of the refuse service.

In relation to council tax, Councillor Bray asked that it be recorded that the Liberal Democrat group did not support a £5 increase in council tax.

In response to a question about the Developing Communities Fund, it was noted that a report on criteria and eligibility would be brought to the next meeting of the Scrutiny Commission.

RESOLVED – the report be noted and the comments made be forwarded to Council.

To present the general fund budget for 2017/18. Members are asked to read this report in conjunction with the capital programme and HRA budget reports and make recommendations to Council.

Members gave consideration to the general fund budget for 2017/18. It was reported that almost £200k savings above those predicted in February 2016 had been achieved, the enforcement, appeals and planning capacity reserves had been merged, and that contributions to the Developing Communities Fund and business rates reserve had been incorporated.

In response to questions about Block C at the Crescent, it was noted that there were two units still to let, but that a joint agent had been appointed who was confident that they could attract interest. It was requested that members be provided with a total loss figure, including not only rental income but also business rates.

In relation to planning enforcement and appeals, it was noted that the reserve was recommended to be £90-100k less than the previous year, but members were reassured that this would be sufficient.

Councillor Rooney left the meeting at 7.21pm.

RESOLVED – the report be noted.

To present the housing revenue account (HRA) budget for 2017/18, including the housing repairs account. Members are asked to make recommendations to Council.

Members received the proposed housing revenue account (HRA) budget which included the housing repairs account. It was noted that balances had been increased and there was a reserve to meet costs arising from the stock condition survey.

On a separate matter, a member expressed concern that, whilst the authority’s housing was very well managed, housing associations were not subject to the same scrutiny. It was suggested that the chairman of the Scrutiny Commission give consideration to undertaking a review into housing associations.

RESOLVED – the report be noted.

To present the general fund capital programme for 2016/17 – 2019/20 for recommendation to Council.

The capital programme for 2016/17 to 2019/20 was presented to members. The cost of the leisure centre demolition being far lower than budgeted and the expenditure under the Developing Communities Fund of £700k in year one and a further £700k in year two were highlighted. A member suggested that the spending of £1.4m under the Developing Communities Fund in two years was ambitious.

It was noted that a procurement process had been undertaken in relation to the leisure centre, and the low costs of the winning tender had been realised, assisted by the high value of the equipment within the building. The ward councillor thanked officers and the contractor for the way the demolition had been managed, including the level of communication with the community. It was reported that the options for the site were still under discussion, and it was asked that ward councillors be kept informed and that the options be brought to the Scrutiny Commission when available.

A member noted the provision for accommodating the Hansom Cab within the frontage of the former Coop building and asked if that was an indication that the council was retaining the building. In response it was noted that the housing of the Hansom Cab was a medium term arrangements and that options were still being considered for the Coop site.

In relation to the former depot site on Middlefield Lane, a member expressed the need for it to be developed as soon as possible as it was becoming an untidy site.

RESOLVED –

(i)            the report be noted

(ii)           a report on options for the former leisure centre site be brought to the Scrutiny Commission in due course.

To recommend the fees & charges book to Council.

In presenting the fees & charges book for 2017/18, the Head of Finance reported a correction in that the “gym only membership” charge for the leisure centre should read £239.90.

A member requested clarification on the “staff season tickets” item, and in response it was noted that this was for staff parking on the Rock temporary car park which was recovered via salary sacrifice.

RESOLVED – the report be noted.

To inform members are recommended write-offs of debts over £10,000, prior to consideration by the Executive.

Consideration was given to the proposed council tax, non-domestic rates and overpaid housing benefit write-offs. A member asked if the level of debt was worsening, and it was agreed that a trend analysis would be sought.

RESOLVED – the report be noted.

To provide a quarterly update on the position in relation to sundry debts.

Members received the sundry debt position as at 31 December 2016.

RESOLVED – the report be noted.

To inform members of the position of and actions to reduce sundry debts held by Estates, as requested at a previous meeting.

In response to a request at a previous meeting, members were provided with an update on the position of and actions to reduce sundry debts held by the Estates team. Members were assured that all courses of action to recover the debts had been exhausted, but that even when written off, a note would be retained on the system to ensure that, should the debtor be located in the future, the debt would be pursued.

RESOLVED – the report be noted.

To inform members of the performance of HBBC’s commercial estates, in response to a request at a previous meeting.

Further to a request at a previous meeting, members received performance information in relation to HBBC’s commercial estates. Members welcomed the positive report and asked whether targets had been met. In response it was noted that targets were focussed on occupancy, rather than yield, and that to improve yield, some more basic units would need to be offered.

RESOLVED – the report be welcomed and noted.

Work programme attached.

The work programme was agreed.