Agenda, decisions and minutes

Cabinet
Wednesday, 14th February, 2018 5.00 pm

Venue: Shield Room, Civic Centre, West Paddock, Leyland, PR25 1DH

Contact: Andy Houlker  Email: ahoulker@southribble.gov.uk

Items
No. Item

76.

Apologies for Absence

Minutes:

An apology for absence was submitted on behalf of Councillor Hughes.

77.

Minutes of the Last Meeting pdf icon PDF 115 KB

Minutes of the last meeting held on 25 January 2018 attached to be signed as a correct record.

Minutes:

RESOLVED (Unanimously):

 

That the minutes of the meeting held on 25 January 2018 be approved and signed as a correct record.

78.

Declarations of Interest

Members are requested to indicate at this stage in the proceedings any items on the agenda in which they intend to declare an interest. Members are reminded that if the interest is a Disclosable Pecuniary Interest (as defined in the Members’ Code of Conduct) they must leave the room for the whole of that item. If the interest is not a Disclosable Pecuniary Interest, but is such that a member of the public could reasonably regard it as being so significant that it is likely that it would prejudice their judgment of the public interest (as explained in the Code of Conduct) then they may make representations, but then must leave the meeting for the remainder of the item.

Minutes:

There were no declarations of interest.

79.

Corporate Planning (Corporate Plan, Risk Management, 2018/19 Budget and Medium Term Financial Strategy (MTFS))

79a

Corporate Plan 2018-2023 and Corporate Risk Register 2018-19 pdf icon PDF 467 KB

Report of the Interim Improvement Manager attached.

Additional documents:

Decision:

RESOLVED (Unanimously) that:

 

1.    Cabinet welcomes any comments on the draft Corporate Plan arising from the meeting of the Scrutiny Committee held on the 8th February 2017 and will consider how these can be reflected in the document presented to Council;

2.    subject to (1) above Cabinet recommends the Corporate Plan for 2018-2023 attached at Appendix 1 to Council for approval; and

3.    Cabinet recommends the Corporate Risk Register for 2018-19 attached at Appendix 2 to Council for approval.

Minutes:

The Interim Corporate Improvement Manager addressed the Cabinet and presented for approval the Council’s new Corporate Plan for 2018-2023 and the Corporate Risk Register for 2018-2019.

 

This followed extensive consultation on future priorities with residents, businesses, partners and members of the council. The outcome had been used to inform the development of a new vision for the Borough and the Council and new corporate priorities for the period 2018-2023. These were set out in a new Corporate Plan for 2018-2023 (Appendix 1 to the report).

 

A new Corporate Risk Register for 2018-19 had also been developed. This identified the risks to achieving the corporate objectives and the actions to mitigate those risks (Appendix 2 to the report).

 

The Scrutiny Committee had considered and made recommendations on the Corporate Plan at its meeting on 8 February 2018.

 

Decision Made (Unanimously) that:

 

1.    Cabinet welcomes any comments on the draft Corporate Plan arising from the meeting of the Scrutiny Committee held on the 8 February 2018 and will consider how these can be reflected in the document presented to Council;

2.    subject to (1) above Cabinet recommends the Corporate Plan for 2018-2023 attached at Appendix 1 to Council for approval; and

3.    Cabinet recommends the Corporate Risk Register for 2018-19 attached at Appendix 2 to Council for approval.

 

Reasons for the Decision:

 

The paramount importance of the Corporate Plan (and associated Risk Register) was clear as it set out a Vision and the Corporate Priorities for the Council.  Also the Council’s Medium Term Financial Strategy (MTFS) was aligned to the Corporate Plan to enable delivery of the Council’s ambitions and services for residents.

 

Alternative Options Considered and Rejected:

 

Option 1: Roll forward the existing corporate priorities for a further year. As these have not been refreshed for a number of years, this option is not recommended.

 

Option 2: Do nothing but this will leave the Council without a current Corporate Plan for 2018 and beyond and is therefore not recommended.

79b

Capital Strategy pdf icon PDF 91 KB

Report of the Deputy Section 151 Officer attached.

Decision:

RESOLVED (Unanimously) that:

 

1.    Cabinet approves the Capital Strategy detailed in Appendix 1and recommend its approval to Council;

2.    Cabinet approves the funding arrangements for the Capital Strategy and recommend its approval to Council;

3.    Cabinet notes the implications of using debt to fund the Strategy and the implications of future revenue budgets; and

4.    Cabinet agrees to the implications of the Capital Strategy being incorporated into the Corporate Risk Register.

 

Minutes:

The Deputy Section 151 Officer presented the Council’s five year Capital Strategy 2018/19 to 2022/23 and how it was funded. The implications of the strategy were reflected in the Council’s 2018/9 Budget and the Medium Term Financial Strategy (MTFS).  The strategy was an ambitious and deliverable key part of the Council’s Corporate Planning process setting out the major capital expenditure to deliver its ambitions and services for residents.

 

It was acknowledged that Penwortham Holme had suffered from flooding and other issues and it was confirmed that remedial works were programmed in 2017/8.

 

Decision Made (Unanimously) that:

 

1.    Cabinet approves the Capital Strategy detailed in Appendix 1 and recommend its approval to Council;

2.    Cabinet approves the funding arrangements for the Capital Strategy and recommend its approval to Council;

3.    Cabinet notes the implications of using debt to fund the Strategy and the implications of future revenue budgets; and

4.    Cabinet agrees to the implications of the Capital Strategy being incorporated into the Corporate Risk Register.

 

Reasons for the Decision:

 

The report was part of the overall financial strategy for the Council for the next 5 years that would enable delivery of the Corporate Plan ambitions. It sets out a clear affordable programme and the revenue implications were part of the Medium Term Financial Strategy to be recommended to Council.

 

Alternative Options Considered and Rejected:

 

There was no alternative, to support the Corporate Plan the Council needed to have a Capital Strategy in place.

79c

2018/19 Budget and Medium Term Financial Strategy (MTFS) pdf icon PDF 241 KB

Report of the Deputy Section 151 Officer.

Decision:

RESOLVED (Unanimously) that:

 

1.    Cabinet approves the revenue budget for 2018/19 as set out in Appendix A;

2.    Cabinet approves the 5 year Medium Term Financial Strategy (MTFS) 2018/19 through to 2022/23, summarised at Appendix B; and

3.    Cabinet recommends to Council a Council Tax increase of 2.99%.

 

Minutes:

Further to Minute Nos.79(a) and 79(b) above, the Deputy Section 151 Officer presented the proposed 2018/19 Revenue Budget for the Council and the Medium Term Financial Strategy (MTFS) for the next 5 years.  This was the financial plan for the Council for the next 5 years. It was aligned to and supported the Corporate Plan and accounted for the implications of the Capital Strategy in delivering the Council’s ambitions and services for residents.

 

It was explained that in part the new approach followed major changes in local authority finance.  One implication of this had been that this Council no longer received a revenue grant from Central Government.

 

A considerable amount of work had been carried out on Business Rate Retention and it was considered that the figures included in the budget were accurate. 

 

In respect of the Council’s Management Re-structure, it was confirmed that the figure in the report was correct for Year 1 with further savings in Year 2.

 

It was confirmed that the Council did not have performance related pay. 

 

Decision Made (Unanimously) that:

 

1.    Cabinet approves the revenue budget for 2018/19 as set out in Appendix A;

2.    Cabinet approves the 5 year Medium Term Financial Strategy (MTFS) 2018/19 through to 2022/23, summarised at Appendix B; and

3.    Cabinet recommends to Council a Council Tax increase of 2.99%.

 

Reasons for the Decision:

 

The Council has a statutory obligation to set a balanced budget and this was reflected in the report.

 

Alternative Options Considered and Rejected:

 

There was not alternative as Cabinet was under a legal duty to prepare and agree budget proposals which then must be referred to full Council for its consideration. The budget had been set with reference to all relevant legal requirements set out in the Local Government Finance Act 1992 and all other related legislation, statutory instruments and regulations.

80.

Treasury Strategy 2018/19 to 2022/23 pdf icon PDF 183 KB

Report of the Deputy Section 151 Officer attached.

Decision:

RESOLVED (Unanimously):

 

That Council be recommended to approve

 

·         the Prudential Indicators for 2018/19 to 2022/23 in paragraphs 9.2, 9.3, 9.5, and 9.6.

·         the annual Minimum Revenue Policy (MRP) statement in paragraph 9.4.

·         the Treasury Strategy, and Treasury Indicators for 2018/19 to 2022/23 in paragraphs 10.6, 10.7 and 11.4.

·         the Annual Investment Strategy including Investment Counterparties in section 11.

Minutes:

The Deputy Section 151 Officer presented the Prudential and Treasury Indicators and Treasury Management and Investment Strategies for 2018/19 to 2022/23, and the Minimum Revenue Policy Statement for 2018/19. The Treasury Strategy was aligned to the Capital Strategy and its delivery within the Council’s ambitious Corporate Plan. Whilst there were anticipated changes to the requirements by the Chartered Institute of Public Finance and Accountancy (CIPFA), the Council was currently fully compliant. 

 

Decision Made (Unanimously):

 

That Council be recommended to approve

 

·         the Prudential Indicators for 2018/19 to 2022/23 in paragraphs 9.2, 9.3, 9.5, and 9.6.

·         the annual Minimum Revenue Policy (MRP) statement in paragraph 9.4.

·         the Treasury Strategy, and Treasury Indicators for 2018/19 to 2022/23 in paragraphs 10.6, 10.7 and 11.4.

·         the Annual Investment Strategy including Investment Counterparties in section 11.

 

Reasons for the Decision:

 

The Treasury Strategy and associated documents are designed to ensure compliance with all relevant regulations and statutory codes of practice.

 

Alternative Options Considered and Rejected:

 

No alternative as the Treasury Strategy ensures the Council complies with the requirements for good governance procedures for self-regulation as set out in the CIPFA Prudential code and Treasury Management Code of Practice. These have been in place since April 2004, following the Local Government Act 2003 which introduced a new system of capital expenditure and borrowing.