Wednesday, 7 February 2007
Ryedale House, Malton
Present
Councillors Wainwright (in the Chair), Miss Anderson, Aslett,Clark, Jenkins, Knaggs, Legard and Mrs Schroeder
Substitute: Councillor Andrews (for Councillor Clarkson)
In Attendance
Councillors Bailey, Cottam, Mrs Cowling, Keal, Preston, MrsShields, Mrs Taylor, Mrs Trevelyan and Ms Warriner
T Anderson, Mrs L Carter, J Davison, Mrs M Jackson, J Rudd,Miss J Waggott and A Winship
Minutes
411. Apologies for Absence
Apologies for absence were received from Councillors MrsArnold, Mrs Burr, Clarkson, Cussons, Huntington, Mrs Keal, Maud,Murray-Wells, Parkin, Raper and Mrs Stilwell.
412. Urgent Business
The Chairman reported that there were no items which heconsidered should be dealt with at the meeting as a matter ofurgency by virtue of Section 100B(4)(b) of the Local Government Act1972.
413. Declarations of Interest
Councillors Miss Anderson and Andrews declared interests inthe item relating to the Central Ryedale Sports Facility asgovernors of Malton School.
414. Capital Programme Working Party - 17January, 25 January and 1 February 2007
The minutes of meetings of the Capital Programme Working Partyheld on 17 January, 25 January and 1 February 2007 (previouslycirculated) were submitted.
Resolved
That the minutes of meetings of theCapital Programme Working Party held on 17 January, 25 January and1 February 2007 as submitted be endorsed.
415. Budget Strategy 2007/08
The Interim Chief Financial Officer submitted a report(previously circulated), which set out a revised budgetary positionfor 2006/07, a proposed council tax level for 2007/08, results ofthe public consultation exercise, details relating to the Council’sbalances and reserves and the indicators under the Prudential Codefor capital finance as required by the Local Government Act2003.
The report reflected information presented in the ServiceDelivery Plans together with Member input at various Policy &Resources and Council meetings. The prioritisation of servicesremained a difficult area but the scoring grid methodology ensureda consistent approach although it could not always take account ofindividual Councillor’s preferences.
2007/2008 was the third year that the Council had to identify2.5% efficiency savings, of which half must be cashable. TheCouncil was on line for achieving the savings in the current yearand it was suggested that for 2007/08 £90,000 of the £178,000 totalGershon efficiency gains target should be cashable, as this was theamount needed to balance the budget.
The report updated Members on various budgetary issues. Italso took account of the final Revenue Support Grant Settlementannounced on 19 January 2007 and set out options for the inclusionof revenue bids.
The report also set out perceived budgetary risks and outlinedindicative projections or reserves and balances.
Members considered the report in detail. It was moved byCouncillor Knaggs and seconded by Councillor Miss Anderson that asum of £26,500 be provided from balances to fund a plastics(bottles) recycling trial for a period of one year. Upon being putto the vote the motion was carried.
Resolved
(a) That the report be received.
(b) That the 2006/07 budgetary position benoted.
(c) That the final Revenue Support GrantSettlement be noted.
(d) That the revenue bids as outlined inthe report be incorporated within the budget.
(e) That the Council’s overall budgetaryposition for 2007/08 be noted.
(f) That the results of the publicconsultation exercise be noted.
(g) That the Council be recommended toapprove a Council Tax increase of 3% for 2007/08 and that therevenue budget be submitted to Council for approval.
(h) That the Prudential Indicators asoutlined in the report be recommended to Council forapproval.
(i) That the budgetary risks benoted.
(j) That the position relating to theCouncil’s reserves and balances be noted.
(k) That the special expenses amounting to£50,430 be approved.
(l) That a sum of £26,500 be provided frombalances to fund a plastics (bottles) recycling trial for a periodof one year.
416. Capital Strategy 2007/08 to2010/11
The Interim Chief Financial Officer submitted a report(previously circulated), which set out a strategy and the proposedindividual schemes for inclusion in the Council’s Capital Programmefor the years 2007/08 to 2010/11.
The framework for managing and monitoring the CapitalProgramme was contained within the Capital Strategy Statement andConstitution. The Capital Programme Working Party had been involvedin producing a capital programme taking account of the Council’spriorities, the need to maintain its assets and the acknowledgementthat opportunities might arise, which were not currentlyfunded.
Regulations made under the Local Government Act 2003 gavestatutory force to the Prudential Code for Capital Finance in LocalAuthorities, as prepared by CIPFA. The controls were based onaffordability, prudence and sustainability and took account of theimpact of Capital Investment Strategies on council tax levels forthe current and subsequent financial years. This gave theflexibility to fund schemes by borrowing provided that theresultant debt charges could be paid back without significant risesin council tax levels. To comply with the Code Members must approvecertain indicators for 2007/08 and these were included on theagenda.
Service Unit Managers had submitted bids in accordance withService Delivery Plans. Members had also contributed by bringingforward schemes and generally debating the shape and funding of theprogramme.
2006/07 Capital Programme
Members were reminded that a revised capital monitoringstatement for 2006/07 had been submitted to the Capital ProgrammeWorking Party on 17 January 2007 for the period ending 31 December2006. The total spend forecast had originally been estimated atsome £3.2m. However, this had been revised to £2.1m, which wasconsidered to be a more realistic target.
Five schemes had been re-phased into the 2007/08 capitalprogramme. These included the Extreme Adventure Community Park,Pickering, Priorpot Beck, Norton, pumping station, EnvironmentalImprovements, Norton, and the Heritage Economic Regeneration andConservation Area Partnership grant schemes.
2007/08 - 2010/11 CapitalProgramme
The strategy for the prioritisation of capital works had beendevised by the Capital Programme Working Party and ensured thatpriority schemes were included in the programme with fundingprovided and that any revenue implications were identified andincorporated in the Revenue Budget before schemes wereapproved.
Consequently, the programme had been split into sixsections:
- Asset Management
- Priority Aims
- Major Schemes
- Externally Funded Schemes
- Investment Opportunities
- Other
The Capital Programme Working Party had agreed to recommend aprogramme that would amount to a capital investment of some £7.5m(net). The investment allocated to each of the six areas wasdetailed in the report.
The Capital Programme as submitted complied with the CapitalStrategy Statement, which had been adopted in February 2006. Theapproved programme would be incorporated into the Medium TermFinancial Plan.
The Council’s level of capital reserves would reduceconsiderably over the four-year period of the programme, whichwould impact on future investment opportunities until furthercapital receipts were realised, either on capital investment or thedisposal of surplus assets.
The Capital Programme was considered appropriate in relationto the size of the Authority and the funding available. Thedecision by Members to significantly increase the funding fromcapital reserves had provided the resources to undertake severalmajor schemes that would enable the Council to deliver against itsagreed priority aims as contained in the Corporate Plan. This wouldprovide a range of new or improved services and facilities for thecommunity of Ryedale.
Members considered the report in detail with particularreference to the schemes as outlined in the proposed CapitalProgramme for 2007/08 to 2010/11, detailed at Annex A of thereport.
With reference to Energy Efficiency Improvements to CouncilProperty it was moved by Councillor Clark and seconded byCouncillor Knaggs that the proposed allocation of £100k in thefirst year be increased by £30k. Upon being put to the vote themotion was lost.
Resolved
(a) That the report be received.
(b) That the latest out-turn position for2006/07 be noted.
(c) That the strategy as set out in thereport for the years 2007/08 to 2010/11 and as shown at Annex A ofthe report be approved.
(d) That the funding arrangements as setout in Section 7.2 of the report be approved.
(e) That the Capital Programme assubmitted be recommended to Council for approval.
NB Councillors Miss Anderson and Andrews declared interests inthe Central Ryedale Sports Facility as governors of MaltonSchool.
417. Treasury Management Strategy Statementand
Annual Investment Strategy 2007/08
The Interim Chief Financial Officer submitted a report(previously circulated) the purpose of which was to consider theTreasury Management and Annual Investment Strategy, set thePrudential Code Indicators for 2007/08 and to update Members oncurrent investments.
The Treasury Management Strategy Statement detailed theexpected activities of the Treasury function in the forthcomingfinancial year 2007/08. The production and submission of theStrategy to Council, following consideration by the Policy &Resources Committee, was a requirement of the CIPFA Code ofPractice on Treasury Management.
The Annual Investment Strategy detailed the Specified andNon-Specified Investment Instruments to be used by the Council andany fund managers in 2007/08. Approval was also sought for thespecified use of credit ratings and the maximum periods for whichfunds may be prudently committed in each asset category.
The Prudential Code required the council to set a number ofPrudential Indicators, and these were to be considered whendetermining the Council’s treasury management strategy. Thesuggested strategies for 2007/08 were based upon advice from theCouncil’s treasury advisors, Sector. The treasury managementposition as at 31 December 2006 was included in the report forinformation.
Resolved
(a) That the report be received.
(b) That the Council be recommended toapprove the Treasury Management Strategy Statement and AnnualInvestment Strategy for 2007/08 together with the Prudential CodeIndicators as outlined in the report.