Special Policy and Resources Committee
Thursday, 7 February 2008
Ryedale House, Malton
Present
Councillors Wainwright (in the Chair), Acomb, Andrews, Arnold,Aslett, Cottam, Keal, Knaggs and Legard
By Invitation
Councillors Mrs Arnold, Bailey, Clark, Mrs Cowling, Cussons,Mrs De Wend Fenton, Hemesley, Jackson, Maud, Mrs Shields, MsWarriner, Windress and Woodward.
In Attendance
T Anderson, Mrs L Carter, Mrs M Jackson, J Patten, Miss JWaggott and A Winship
Minutes
432. Apologies for Absence
Apologies for absence were received from Councillors MrsFrank, Hawkins, Hope, Raper and Mrs Wilford.
433. 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. The item was to be considered under exempt business.
434. Declarations of Interest
Councillor Andrews declared a personal interest in car parkingissues as a member of the Car Park Action Group.
Councillor Legard declared a personal interest in the centralRyedale sports facility as his wife is a governor of MaltonSchool.
Councillor Mrs Arnold declared a personal interest in thecentral Ryedale sports centre as she is a North Yorkshire CountyCouncillor.
Councillor Arnold declared a personal interest in the centralRyedale sports centre as his wife is a North Yorkshire CountyCouncillor.
All Members declared a personal interest in item 4 - Review ofMembers’ and Other Allowances by the Council’s IndependentRemuneration Panel.
435. To Consider a Review of Members’ and OtherAllowances by the Council’s Independent RemunerationPanel
The Council Solicitor submitted a comprehensive report(previously circulated) the purpose of which was to consider anyamendments to the Members’ Allowances Scheme to recommend to theCouncil, having regard to the review of those allowances carriedout by the Council’s Independent Remuneration Panel.
The Council Solicitor presented the report and drew attentionto the following amendments:
- Paragraph 6 of the report - bullet point five - delete 19% andadd 20.5%
- Annex 2 paragraph 7.1 - after the words ‘Spinal Column Point 34add ‘for the next 4 years’.
The Full Council must statutorily consider the final report ofan Independent Panel and decide upon its scheme of allowanceshaving taken into account the recommendations. Council should alsohave regard to its overall budgetary provision in determining itsscheme of allowances.
All Members of the Council have received a copy of the reportand in addition a copy has been made available for inspection inthe Members’ Room.
Council will need to:
- address the financial implications
- consider the affordability of the ‘package’ proposed by thePanel
- determine what level of increase it wishes to make, if any, andfrom when these should be applied; and
- consider whether it wishes to make any changes to otherexpenses reimbursed to Members
Accordingly the Policy & Resources Committee was asked tomake recommendations to Council on Members’ Allowances havingregard to the report of the Independent Remuneration Panel.
The Panel’s key recommendations were that:
That Members’ Allowances be asfollows:
(i) Basic Allowance.
This allowance should remain the same at£3,465.60 up to 31 March 2008 and be increased annually for thenext four years each 1 April by reference to the annual percentageaward to officers under the National Joint Council for LocalGovernment Services for spinal column point 34.
(ii) Special ResponsibilityAllowances.
The Panel recommended the introduction ofa new Special Responsibility Allowance for the Leader of theCouncil and that this allowance be backdated to 17 May 2007.
The Panel recommended that the SpecialResponsibility Allowances should be the following proportions ofthe basic allowance:
- Leader Basic x 1
- Chairman of P&R Basic x 1
- Vice Chairman of P&R Basic x 0.25
- Chairman of O&S Basic x 0.5
- Chairman of CS&L Basic x 0.5
- Chairman of Planning Basic x 0.5
- Group Leaders Basic x 0.1
- Council Representative - LGA GeneralAssembly Basic x 0.1
- Council Representative - LGA RuralCommission Basic x 0.1
- Council Representative - LGY&H AssemblyBasic x 0.1
(iii) That the Co-optees’ Allowance forthe Independent Chairman of the Standards Committee should be 33%of the Basic Allowance.
(iv) That other Co-optees on the Committeeshould receive remuneration equivalent to 10% of the BasicAllowance.
(v) That allowances should not bepensionable.
(vi) That where Members use their ownvehicles to carry out their official duties, the mileage ratesshould be paid in accordance with the Inland Revenue ApprovedMileage Rates (AMAPs).
(vii) That the rate of allowances payableto Members for subsistence should be those shown in the attachedproposed scheme of Members’ Allowances with provision for suchallowances to be increased from time to time. The accommodationrates be updated with a meal allowance as shown in the proposedscheme of Members’ Allowances.
(viii) That with the exception oftravelling allowances payable under the Inland Revenue AMAPS schemethe Basic, Special Responsibility and Dependant Carer’s Allowancesshould be index linked by reference to the annual percentage awardunder the National Joint Council for Local Government Services forSpinal Column Point 34.
(ix) That a Dependant Carer’s Allowance of£6.35 per hour be introduced.
(x) Ensure that the Scheme of Members’Allowances includes provisions for Members renouncing allowancesand withholding allowances where Members have experienced full orpartial suspension.
(xi) That the approved duties be extendedto cover Members of the Overview & Scrutiny Committee observingPolicy Committees and representing the Council on outsidebodies.
(xii) That the Council publish attendancerecords alongside the annual publication of allowances and expensesreceived by Members.
Resolved
That Council be recommended to adopt theIndependent Remuneration Panel’s recommendations as outlined aboveand the Members’ Allowances Scheme attached at Annex A to theseminutes.
NB Councillor Knaggs, Leader of the Council, abstained fromvoting on the above item.
436. Budget Strategy 2008/09
The Interim Chief Financial Officer submitted a comprehensivereport (previously circulated), which set out a revised budgetaryposition for 2007/08, the budget for 2008/09, a proposed CouncilTax level, details of balances and reserves and the indicatorsunder the Prudential Code for capital finance as required by theLocal Government Act 2003.
The Revenue Budget had been prepared in accordance with therevised Budget Strategy agreed by Council on 17 January 2008 and aspreviously agreed in October 2007. It incorporated the effect ofthe Government’s three-year Revenue Support Grant (RSG) settlementand the Comprehensive Spending Review (CRS07). In particular itprovided:
- Commitment to efficiency savings
- Up to 4.5% Council Tax increase
- Authority to borrow up to £1.5m
- Loss of the Planning Delivery and LAGBI grants being madegood
- Provision for funding the capital programme
The effect of CSR07 meant that although direct RSG wouldincrease by 3% for the next three years, specific grants amountingto £400k per annum were to be withdrawn. There was, therefore, anet loss in grant of £250k, which had to be made good throughbudget reductions or efficiencies, in particular for year 2009/10.It was not yet clear how replacement grants on Housing and Planningwere to be distributed but the amounts could be significantlysmaller.
CSR07 also required local authorities to realise cashableefficiencies of 9.3% over a three-year period. By implication thiswas to fund the loss of grant as outlined in the above paragraphand any additional burdens imposed on district services.
In addition the Council had a programme of capitalexpenditure, which placed additional revenue costs on the Authorityand reduced capital balances. These costs would have to be providedfor in future years.
The report detailed the following:
- Local Government Finance Settlement
- Revised Budget 2007/08
- Budget for 2008/09
- Capital Programme
- Council Tax
- Public Consultation
- Special Expenses
- National Non-Domestic Rates
- Medium Term Financial Plan
- Prudential Code
- Funds and Reserves
At its meeting on 25 February 2008 the Council would need toset a total Council Tax level, taking account of preceptingauthorities and also set a balanced budget. The Council’s financialposition was strong but reserves were planned to reduce over thenext few years to finance capital expenditure. It was offundamental importance that the Council met the 3% efficiencytarget for the next three years i.e. 9.3% cumulative. Any reductionin Council Tax increase from 4% could have a detrimental effect onfuture budgets and service delivery.
Members discussed the report in detail. It was moved byCouncillor Legard and seconded by Councillor Cottam that part (h)be added to the resolution, as follows:
“(h) That when the budget report issubmitted to Full Council on 25 February 2008 for approval, thatCouncil be requested to consider an Officer report on the inclusionin the capital programme of a provision for payment by the Councilof a grant of £1.5 million for a new scheme to develop a dry sportscentre at Malton School subject to conditions including thecommunity use of the facility.”
Councillor Legard emphasised that the proposal related to anew approach and a new scheme, which was to be school led and notCouncil led. The Council would be a major contributor, however, thefunding of £1.5m would be a set figure.
Upon being put to the vote the motion was carried.
Councillor Knaggs referred to the current pilot schemes forplastics and cardboard recycling and expressed the opinion that theCouncil should explore the allocation of budgetary provision toenable further progress to be made in these areas. However, at thepresent time there was no spare capacity in the vehicle fleet toaccommodate additional work.
A further option which could be considered related to a pilotscheme currently being undertaken by Commercial Services wherebythe contents of the Council’s street sweeping vehicle, fallenleaves etc, were taken for composting. The scheme, which was in itsearly stages, had the potential to increase recycling levels andtherefore recycling credits. It was suggested that by investing inadditional driver hours there was the potential to further increaserecycling levels. It was moved by Councillor Knaggs and seconded byCouncillor Keal that Officers be requested to investigate whetheradditional driver hours for the street sweeping machine could beaccommodated within existing budgetary provision.
Upon being put to the vote the motion was carried.
Councillor Knaggs referred to the Community Investment Fund,which had come to an end. Councillor Knaggs reported that therewere various issues to be addressed with the District, such as PostOffice outreach services and small-scale flood mitigation schemes,all of which indicated the need for a further Community InvestmentFund with a revised remit. It was suggested that more focus andclarity was required in the use of ‘windfalls’. Councillor Knaggsrequested that Members take his comments on board.
Resolved
(a) That the revised budgetary positionrelating to 2007/08 be agreed.
(b) That the Revenue Budget for 2008/09 inthe sum of £7,912,420 be approved and submitted to Council.
(c) That the Prudential Indicators asoutlined in the report be recommended to Council forapproval.
(d) That the budgetary risks benoted.
(e) That the Special Expenses amounting to£40,630 be approved and submitted to Council.
(f) That a detailed report on proposals toachieve the 3% efficiency savings for three years (£750k) besubmitted during the next cycle of meetings.
(g) That the position relating to theCouncil’s reserves and balances be approved.
(h) That when the budget report issubmitted to Full Council on 25 February 2008 for approval, thatCouncil be requested to consider an Officer report on the inclusionin the capital programme of a provision for payment by the Councilof a grant of £1.5 million for a new scheme to develop a dry sportscentre at Malton School subject to conditions including thecommunity use of the facility.
(i) That Officers be requested toinvestigate whether additional street sweeper driver hours could beaccommodated within existing budgetary provision.
NB Councillor Andrews recorded his vote against parts (a) to(g) above by reason of the car parking fees issue.
437. Treasury Management Strategy Statement and AnnualInvestment Strategy 2008/2009
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 2008/09 and to update Members oncurrent investments.
The Treasury Management Strategy Statement detailed theexpected activities of the Treasury function in the forthcomingfinancial year 2008/09. 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 2008/09. 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 2008/09 were based upon advice from theCouncil’s treasury advisors, Sector. The treasury managementposition as at 31 December 2007 was included in the report forinformation.
Resolved
That the report be received and that thestrategies be noted and recommended to Council for approval, andthat the Prudential Code Indicators in the report also berecommended to the Council for approval.