Meeting documents

Policy and Resources Committee
Thursday, 2nd October, 2008

 
Thursday, 2 October 2008
Ryedale House, Malton
 
Present

Councillors Wainwright (in the Chair), Acomb, Arnold, Aslett,  Cottam, Keal, Knaggs, Legard and Maud.

By Invitation

Councillors Andrews, Clark, Mrs Cowling, Cussons, Jackson, Mrs Shields and Woodward.

Overview & Scrutiny Observers:  Councillors Mrs Wilford and Windress
 
In Attendance

T Anderson, Ms J Baldwin, Mrs L Carter, P Cresswell, Mrs J Holmes, G Housden,  Mrs M Jackson, J R Rudd, Miss J Waggott and A Winship.

Minutes

218.  Apology for Absence

An apology for absence was received from Councillor Mrs Burr.

219. Minutes

The Minutes of a meeting of the Policy & Resources Committee held on 31 July 2008 were submitted (previously circulated).

It was noted that, at the meeting of Council held on 4 September 2008, the above minutes had been approved and adopted. In addition it had been resolved “That Officers be authorised to investigate and pursue membership of the Local Government Flood Forum and that a report be submitted to a future meeting of the Committee”.

Resolved

That the minutes of a meeting of the Policy & Resources Committee held on 31 July 2008 be approved and signed by the Chairman as a correct record.

220. Urgent Business

The Chairman reported that there were two items to be considered at the meeting as a matter of urgency by virtue of Section 100B(4)(b) of the Local Government Act 1972. The items related to the Extraordinary Meeting of Council to be held on 13 October 2008 and to the North Yorkshire County Council’s Medium Term Financial Plan.

221. Declarations of Interest

In accordance with the Members’ Code of Conduct the following declarations of interest were made:

Councillor Cottam declared a personal interest in Resources Working Party Minute No. RWP.97 (Capital Programme) and the reference to the Milton Rooms, as he is the Chairman of the Milton Rooms Management Committee.

Councillor Andrews declared a personal interest in item 12 (Malton Town Centre Strategy - Consultation Update) as he had been involved in discussions regarding the Strategy with various people.

Councillor Legard declared a personal interest in item 12 (Malton Town Centre Strategy - Consultation Update) as he has an interest in a shop in Malton.

Councillor Knaggs declared a personal interest in item 10 (The Harrison Collection at Ryedale Folk Museum) as he had spoken with the Museum Director.

222. Minutes of a Meeting of the Resources Working Party held on 26 August 2008

The minutes of a meeting of the Resources Working Party held on 26 August 2008 (PDF, 34k).  were presented.

Resolved

That the minutes of a meeting of the Resources Working Party held on 26 August 2008 as submitted be endorsed.

223. Minutes of a Meeting of the Constitution Review Working Party held on 22 September 2008

The minutes of a meeting of the Constitution Review Working Party held on 22 September 2008 (PDF, 46k). were presented.

Resolved

That the minutes of a meeting of the Constitution Review Working Party held on 22 September 2008 be received.

224. Review of the Constitution:

Consideration by Council of Committee Minutes

The Chief Executive submitted a report (previously circulated) the purpose of which was to propose:

(i) Improvements in the application of the Constitution in elation to Council and Committee Meetings;

(ii) Changes to the Council’s Constitution.

All Members of the Council had been invited to attend the meeting and had been provided with a copy of the minutes of the meeting of the Constitution Review Working Party held on 22 September 2008 (minute no. 223 above refers) together with a copy of the aforementioned report.

The report sought to provide Members with further information about the issue of all minutes of Committees being included on the Council agenda. A comparison of procedures on the issue of placing the minutes of Committees/Cabinet on the Council agenda had been made between Ryedale District Council and other local authorities in the North Yorkshire area. The outcome of the research was summarised at Annex C to the report.

The recommendations in the report were are follows:

“That the Policy and Resources Committee be asked to recommend Council:

1. To suspend in accordance with Council Procedure Rule 24.1, Council Procedure Rule 24.2 in Part 4 (Part 1) (Meetings and Proceedings of Council) during consideration of this item to ensure any Motion to adopt the recommendations of this report is not adjourned without discussion to the next ordinary meeting.

2. Resolve that after the Council meeting on 6 November 2008, Council meetings will consider recommendations from Committees but will not receive and debate the minutes of Committees (including the minutes of associated working parties and Sub-Committees) in relation to decisions which the Committee has delegated authority to make under the Terms of Reference of those Committees or pursuant to statute in the case of statutory committees.

3. That provision be made the business of Council meetings includes receiving a statement from the Leader of Council and receive questions and answers on that statement.

4. That the notice period for Members Question on Notice be reduced from 7 working days to 3 working days.

5. That Members wishing to read the minutes relating to decisions made within the Terms of Reference of the Policy Committees, Overview and Scrutiny, the Standards Committee and the Planning Committee which those Committees have delegated authority to make together with the minutes of associated Working Parties and Sub-Committees are asked to do so by looking at those minutes on the Council’s web-site under Committee Meetings, Agenda and Minutes. One hard copy will be provided in the Members’ Room.

6. That the agendas and minutes of Policy Committees be divided into the following two parts:-

(i) PART A – Matters dealt with under delegated powers or matters determined by Committee.

(ii) PART B – Matters referred to Council

7. To adopt the changes to the Council’s Constitution listed in Annex B to the report.”

The Chief Executive reported that whilst these were straightforward proposals, they had significant implications for the Council’s custom and practice. The proposal that Council only considered recommendations made to it from Committees and did not debate or ask questions on decisions made within Committee Terms of Reference did represent a change. Committee agendas and minutes would be clearly split between matters for recommendation and referral to Council and matters to be dealt with under delegated powers. Council would therefore only receive the minutes that it needed to and would avoid the current situation whereby decisions were often revisited at Council. The Chief Executive drew attention to the table at Annex C of the report, which outlined the procedures adopted by other North Yorkshire Councils together with their Comprehensive Performance Assessment and use of resources scores.

Members’ views were sought on the recommendations.

In considering the report some Members expressed concern that, in the event of the recommendations being adopted by Council, Members who were not on the Policy & Resources and Community Services & Licensing Committees would be denied the ability to debate and challenge decisions made by those Committees. However, Members were reminded that any Member of the Council could attend and participate in the debate at meetings of Committees to which they were not appointed.

Committee minutes and agendas were published on the Council’s website and in addition it was proposed that a hard copy be made available for inspection in the Members’ Room.

The opinion was expressed that Committees must be allowed to do their job and non-Committee Members should not seek to overturn decisions without having had the benefit of considering background reports. In addition, it was considered that the proposals would strengthen the Overview & Scrutiny function.

Following the debate it was moved and seconded that the recommendations in the report be approved. Upon being put to the vote the motion was carried.

Resolved

That Council be recommended:

1. To suspend in accordance with Council Procedure Rule 24.1, Council Procedure Rule 24.2 in Part 4 (Part 1) (Meetings and Proceedings of Council) during consideration of this item to ensure any Motion to adopt the recommendations of this report is not adjourned without discussion to the next ordinary meeting.

2. Resolve that after the Council meeting on 6 November 2008, Council meetings will consider recommendations from Committees but will not receive and debate the minutes of Committees (including the minutes of associated working parties and Sub-Committees) in relation to decisions which the Committee has delegated authority to make under the Terms of Reference of those Committees or pursuant to statute in the case of statutory committees.

3. That provision be made the business of Council meetings includes receiving a statement from the Leader of Council and receive questions and answers on that statement.

4. That the notice period for Members' Question on Notice be reduced from 7 working days to 3 working days.

5. That Members wishing to read the minutes relating to decisions made within the Terms of Reference of the Policy Committees, Overview and Scrutiny, the Standards Committee and the Planning Committee which those Committees have delegated authority to make together with the minutes of associated Working Parties and Sub-Committees are asked to do so by looking at those minutes on the Council’s web-site under Committee Meetings, Agenda and Minutes. One hard copy will be provided in the Members’ Room.

6. That the agendas and minutes of Policy Committees be divided into the following two parts:-

(i) PART A – Matters dealt with under delegated powers or matters determined by Committee.

(ii) PART B – Matters referred to Council

7. To adopt the changes to the Council’s Constitution listed in Annex B to the report.”

225. Review of Council Reserves

The Corporate Director (s151) submitted a report (previously circulated) the purpose of which was to review the reserves held by the Council and identify resources available for investment in capital or revenue projects.

The Corporate Director (s151), being the Council’s Chief Finance Officer, was required to advise the Council on the level of reserves it should hold in order to ensure a sound financial standing, and also ensure that clear protocols existed for their establishment and use.

Clearly a well-managed Council, with a prudent approach to budgeting should be able to operate with a relatively low level of General Reserve. The Audit Commission was in turn required to review the level of reserves and financial performance over a period of time. However, it was not the responsibility of the auditor to prescribe or recommend an optimum or minimum level of reserves.

The introduction of the Prudential Code for Capital Finance reinforced the safeguards for financial planning. The Code emphasised the requirement to consider affordability when making decisions about the Council’s future capital programme. The development of three-year revenue forecasts and long-term capital programme focused greater attention on the levels and application of the Council’s Balances and Reserves.

A key issue of The Use of Resources Assessment, which the Council underwent on an annual basis, was how the Council reviewed and re-prioritised its reserves.

The Council’s Reserves and balances as at the 31 March 2008 were detailed in the report.

Resolved

That the Policy & Resources Committee recommend to Council:

(a) That the Council’s reserves are organised as follows:

Reserve;                £                    Review/Range Criteria                
General Reserve 500,000 5% - 7% NRE

Useable Capital Receipts and Contributions Reserve 

5,214,660 Balance Reviewed Annually
Capital Fund 4,170,903 Balance Reviewed Annually
Capital Contingency Fund 200,000 £100k - £400k
ICE Fund 308,060 Balance Reviewed Annually
Operational Reserve 568,602 £250k - £750k
Restructure Reserve 426,200 Balance Reviewed Annually
IT Fund 154,899 Balance Reviewed Annually
LDF Reserve 100,000 Balance Reviewed Annually
Grants Reserve 117,989 Balance Reviewed Annually
Community Investment Fund 85,203 Balance Reviewed Annually
Elections Reserve 19,631  Balance Reviewed Annually
Total

11,866,147

 

(b) That the Medium Term Financial Plan adopts a policy that all interest receipts from investments will be allocated to fund the capital programme and that the Revenue Account makes a comparable reduction of its contribution to capital funds.

226. Budget Strategy 2009/2010

The Corporate Director (s151) submitted a report (previously circulated) the purpose of which was to form the basis of budget preparation and planning.

The Medium Term Revenue Budget forecast as provided to Members on the 25 February 2008 highlighted the projected financial position for 2009/2010. Within those projections were that efficiency gains and other savings were to be required totalling £522,000 to balance the 2009/2010 budget. This figure took into account reductions in grant income to the Authority and was based on a Council Tax Increase of 4%.

The achievement of these savings would also assist the Council in meeting the Government ‘unofficial’ efficiency target of 3% per annum over three years. This equated to an annual target for Ryedale of £280,860. The report outlined the revenue pressures faced by the Council in the current year, including service costs, corporate costs, salary costs and government grants.

The Corporate Director (s151) reported that the 2009/2010 budget would require significant work over the forthcoming months to ensure a robust balanced budget. It was important that genuine efficiency savings were identified, evaluated, tested and delivered.

It was recommended that the Council’s current financial position be noted together with the proposals for preparing the 2009/2010 budget within the following parameters:

(i) Council Tax Increase to be at 4%

(ii) Increases in Fees and Charges to be not less than 4%

(iii) Only essential unavoidable growth bids to be considered

(iv) A Corporate Efficiency Programme to be prepared and presented to the Resources Working Party.

It was moved by Councillor Knaggs and seconded by Councillor Cottam that part (i) be amended to read “Council Tax increase not to exceed 4%”. Upon being put to the vote the amendment was carried. Upon being put to the vote as the substantive motion the recommendation in the report, as amended, was approved.

Resolved

That the Council’s current financial position be noted together with the proposals for preparing the 2009/2010 budget within the following parameters:

(i) Council Tax increase not to exceed 4%.

(ii) Increases in Fees and Charges to be not less than 4%.

(iii) Only essential unavoidable growth bids to be considered.

(iv) A Corporate Efficiency Programme to be prepared and presented to the Resources Working Party.

227. The Harrison Collection at Ryedale Museum

The Economy & Community Manager submitted a report (previously circulated) the purpose of which was to inform Members of Ryedale Folk Museum’s plans for development of the Museum, in order to house the Harrison Collection and secure its future, and to seek a financial contribution from the Council towards the same.

Ryedale Folk Museum (RFM) was a charitable educational trust that had operated since 1964 and held a collection that included archaeology, domestic and social history objects, ranging in size from a flint to a manor house. RFM also preserved natural heritage including a cornflower meadow, wetlands area and orchard of regional cultivars. It was governed by trustees and had nine paid staff and an impressive ongoing relationship with about 150 volunteers. It was open 11 months of the year and a 2006 ‘Audiences Yorkshire’ survey found an extremely high level of visitor satisfaction. RFM enjoyed a strong relationship with Ryedale District Council as a regularly funded organisation.

RFM has been offered a bequest of over 10,000 artefacts worth in excess of £1 million, although of irreplaceable value in social terms. The collection, amassed over 50 years by two Ryedale residents, Edward and Richard Harrison, was the subject of “Inside Out” on BBC1 where Eric Knowles (Antiques Roadshow) described it as a “breathtaking collection” and “jaw-dropping stuff”. It was currently un-catalogued and inappropriately stored, leaving it vulnerable to deterioration and damage, and required a large space for storage and display which was currently unavailable at the museum.

The Harrison Collection has been assessed by heritage professionals who concluded that “There are around 800 or 900 objects that are of major national significance, many unique, and the best one of only a handful of known examples…The collection compares with and can stand alongside any major national museum collection.” The Harrison’s want the collection to stay in Ryedale for public benefit, and work was progressing to transfer the ownership of the collection to the Folk Museum, which would be completed by March 2009. It is a truly eclectic, eccentric collection and very much in the spirit and tradition of the early collectors whose work is the basis of our major museums today.

It was imperative that the collection was kept intact and in Ryedale; Eric Knowles expressed his surprise that the collection had not been offered to a national museum. This would only be possible if RFM could raise the required funds within an acceptable timescale and the museum was asking for help from a variety of sources.

The bequest of the Harrison Collection to the Folk Museum was a unique and exceptional opportunity that RFM was well placed to develop to its full potential. The project could do much to expand the appeal of Ryedale to visitors, with associated benefits for the Ryedale economy. The Council’s support would significantly increase the Museum’s ability to attract external funding. Members were requested to strongly support the project, with a view to contributing £250,000 via the setting of the capital programme.

Resolved

That the project to house the Harrison Collection at the Ryedale Folk Museum be supported, with a view to this Council allocating the sum of £250,000 towards the project in the Capital Programme.

228. Ryedale Local Development Scheme

The Head of Planning submitted a report (previously circulated) the purpose of which was to consider and agree amendments to the Local Development Scheme (LDS), the three-year project plan for the delivery of the Local Development Framework (LDF).

The Government had recently issued a revised Planning Policy Statement on Local Spatial Planning (PPS12). The document introduced changes in the way in which Local Development Frameworks were produced.

Members were reminded that it was a legal requirement that the LDF was produced in accordance with the LDS. Consequently, the current LDS was in need of revision in order to reflect the new changes introduced through PPS12. This also provided the opportunity to revise the project plan to take account of the additional resources for the LDF that had been agreed in April 2008.

The report gave details of the following:

  •  The current Local Development Scheme
  •  New Planning Policy Statement 12
  •  Stages of Production
  •  Infrastructure Planning
  •  Rationalisation of Documents

The LDS included the key production milestones and these had been prepared in the context of a more detailed work programme, progress against which was to be reported at regular Member Briefing sessions.

It was moved by Councillor Knaggs and seconded by Councillor Keal that the revised LDS be endorsed subject to the inclusion of an additional recommendation that a first reserve Development Plan Document be brought forward, if resources permit, relating to Sustainable Design & Construction. Upon being put to the vote the motion was carried.

Resolved

That the revised Local Development Scheme as submitted be endorsed subject to the inclusion of an additional recommendation that a first reserve Development Plan Document be brought forward, if resources permit, relating to Sustainable Design & Construction.

NB Councillor Legard abstained from voting on the above item.

229. Malton Town Centre Strategy - Consultation Update

The Head of Economy & Housing submitted a report the purpose of which was:

  • To consider headline information from the consultation responses gathered at the Malton Town Centre Strategy “Have Your Say” event on 29 and 30 August 2008
  • To agree the next steps in progressing the Town Centre Strategy and related actions.

The report did not seek to finalise the Malton Town Centre Strategy; this would occur at a future meeting when all the detailed information required would be presented. The purpose of the report was to present the headline information from the significant public consultations undertaken. It was the start of the ‘place shaping’ of Malton Town Centre.

The report reminded Members of the background together with the key objectives for the Study. The report also included a quantitative analysis of the 509 questionnaire responses received as a result of the Milton Rooms event.

The report concluded that the “Have Your Say” event had been a considerable success. It had encouraged many local people to attend and to provide their views on how to improve Malton Town Centre. This had shown certain issues where there was a relatively clear public view and other issues that were much more finely balanced.

The District Council must now work quickly to consider the responses alongside the range of additional information that had been gathered since March 2008. A Strategy and actions were required that could be implemented with partners to the considerable benefit of Malton and Ryedale.

Resolved

(a) That this Council welcomes the significant public response to the “Have Your Say” event and takes account of the consultation responses alongside all other relevant information in agreeing the Malton Town Centre Strategy and related actions at a future meeting of the Committee.

(b) That the Resources Working Party considers current opportunities to undertake physical improvements to public areas in Malton Town Centre.

230. DEFRA Consultation on the Principle of Direct Elections to National Park Authorities

The Council Solicitor & Monitoring Officer submitted a report (previously circulated) the purpose of which was to inform Members of the consultation paper, which had been issued by the Department for the Environment, Food and Rural Affairs and to establish what responses should be made on behalf of the Council.

The North York Moors became a National Park in 1952. In 1995 it became a National Park Authority independent of the County Council.

The National Park falls within the areas of five local authorities, namely Hambleton District Council, North Yorkshire County Council, Redcar and Cleveland Borough Council, Ryedale District Council and Scarborough Borough Council.

The purposes and duties of National Parks in England and Wales, which are set out in the 1995 Environment Act, form the guiding principles of the North York Moors National Park Authority. They are:

  • To conserve and enhance the natural beauty, wildlife and cultural heritage of the National Park.
  • To promote opportunities for the understanding and enjoyment of the special qualities of the Park by the public.
  • Every local authority with land wholly or partly in a National Park is entitled to appoint at least one Member to the National Park. Of a total of 156 parish areas in the District of Ryedale, 44 parishes fall either wholly or partly in the North York Moors National Park area. Accordingly Ryedale District Council appoints two of its Members to the National Park. By virtue of Schedule 7 to the Environment Act 1995, the appointment stands for the full term of Council. The current appointees are Councillor Mrs Frank and Councillor Bailey.

From time to time the matter of the make up and selection of National Park Authority Membership is raised during parliamentary debates and elsewhere. The issue was raised during a Parliamentary debate surrounding the Broads Bill, which is being promoted by The Broads Authority. This was despite the issue being outside the remit of the Bill. In response, the government. Minister, Jonathan Shaw, indicated that the government would consult on the principle of direct elections to National Park Authorities and the Broads Authority.

The consultation document was issued by DEFRA on 28 July 2008 and responses were invited by Friday 28 November 2008. A copy of the consultation document and covering letter were appended to the report.

In considering the report Members endorsed the view of the North York Moors National Park Authority that the current arrangements were satisfactory and should not be changed. However, the view was expressed that residents within the National Park might prefer to elect their own representatives.

Resolved

(a) That the public consultation be noted.

(b) That the Council Solicitor be authorised to submit a formal response to the consultation outlining Members’ comments.

231. Freedom of Information - Model Publication Scheme

The Council Solicitor & Monitoring Officer submitted a report (previously circulated), the purpose of which was to adopt the Model Publication Scheme issued and approved by the Information Commissioner with effect from 1 January 2009 and to consider updating the officer delegation scheme.

The approval of all current schemes was to expire on 31 December 2008. The Council needed to adopt a new publication scheme before the expiry of the existing scheme. The Information Commissioner’s Office (ICO) was refreshing its approach to proactive disclosure of information. The ICO’s aim was to encourage maximum disclosure but also to reduce the burden on public authorities. The ICO had, therefore, approved (under section 20 of the Act) a model scheme, which was suitable for adoption by every public authority with effect from 1 January 2009, a copy of which was included in the report.

The model publication scheme had been prepared and approved by the Information Commissioner. It may be adopted without modification by any public authority without further approval and would be valid until further notice.

Sections 19 and 20 of the Freedom of Information Act provided that publication schemes must be approved by the ICO; the exception was model publication schemes, where approval was not needed provided that the scheme was used without any alterations.

Any deletions made to the model scheme required the approval of the Information Commissioner’s Office. Deletions to the scheme would only be considered for approval in exceptional circumstances.

This publication scheme committed an authority to make information available to the public as part of its normal business activities. The information covered was included in the classes of information mentioned in Annex 1 to the report.

The scheme committed an authority:

  • To proactively publish or otherwise make available as a matter of routine, information, including environmental information, which was held by the authority and fell within the classifications below.
  • To specify the information, which is held by the authority and falls within the classifications below.
  • To proactively publish or otherwise make available as a matter of routine, information in line with the statements contained within this scheme.
  • To produce and publish the methods by which the specific information is made routinely available so that it can be easily identified and accessed by members of the public.
  • To review and update on a regular basis the information the authority makes available under this scheme.
  • To produce a schedule of any fees charged for access to information, which is made proactively available.
  • To make this publication scheme available to the public.

It was proposed to use as far as is reasonably practicable the Council’s website as a repository for all information available under the Model Publication Scheme.

Members were asked to note that the register of Councillors’ financial and other interests was open to public inspection. The Model Publication Scheme made reference to this.

Resolved

(a) That the Model Publication Scheme issued and approved by the Information Commissioner be adopted with effect from 1 January 2009.

(b) That the Council’s website be used to publicise the publication scheme and provide information under the Scheme as far as reasonably practicable.

(c) That the Council Solicitor be given delegated authority to ensure compliance with the Freedom of Information Act 2000 including:

(i) Developing, implementing, monitoring and renewing the publication scheme required by the Freedom of Information Act 2000

(ii) Responding to specific requests for information and issuing decision notices.

232. Item Referred from Council and/or Committees -

Taxi Licensing Task Group Update

The Corporate Director submitted a report (previously circulated), which had been considered at the last meeting of the Community Services & Licensing Committee held on 25 September 2008. The Committee had been asked to consider the policy principles to be adopted as the basis for the future assessment of fees and charges for taxi licensing; a number of options had been presented for consideration.

The Community Services & Licensing Committee had been of the opinion that the Council should continue to seek to achieve a breakeven position. However, it was agreed that the period for achieving this should be extended. It was pointed out that as this represented a change to current policy the matter would need to be referred to the Policy & Resources Committee. It had, therefore, been resolved “that the Policy & Resources Committee be recommended to retain the current breakeven policy over an extended period”.

Resolved

That the recommendation of the Community Services & Licensing Committee as set out in resolved portion part (b) of Minute No. 216/2008 - Taxi Licensing Task Group Update - be endorsed and that the current breakeven policy be retained over an extended period.

233. Annual Governance Report 2007/2008

The Corporate Director (s151) submitted the Annual Governance Report 2007/2008.

Consideration of the report had been required by 30 September 2008; accordingly the Chairmen of the Policy & Resources and Overview & Scrutiny Committees had met with the Council’s external auditor on 30 September to consider the report.

The Corporate Director (s151) reported that the Authority had received a good report with a “satisfactory” rating. It was anticipated that the Corporate Director (s151) would be in a position to report on the Authority’s use of resources score at the Committee’s next meeting.

Resolved

That the Annual Governance Report 2007/2008 be approved.

234. Corporate Health, Safety & Wellbeing Policy

The Property Services Manager submitted a report (previously circulated), which sought the approval and adoption of the Corporate Health, Safety & Wellbeing Policy, a copy of which was appended to the report.

The Property Services Manager reported that the Policy had been reviewed and updated to take into account current legislation and the changes that had taken place.

Resolved

That the Corporate Health, Safety & Wellbeing Policy as submitted be endorsed and recommended to full Council for approval.

235. Treasury Management Annual Review 2007/08 and Monitoring Report 2008/09

The Corporate Director (s151) submitted a report (previously circulated) the purpose of which was to report on the treasury management activities for 2007/08 and to update Members on current investments in accordance with the CIPFA Code of Practice on Treasury Management.

The report detailed the activities of the Treasury function for the financial year 2007/08. The treasury position as at 30 June 2008 was included in the report for information.

The results of the investment strategy affect the funding of the Capital and Revenue Programmes.

Due to the continued good performance of the managed funds and the higher than predicted interest rates the investment income return for 2007/08 exceeded the budget by £293k. The extra funds were available to finance the Council’s capital programme and the Resources Working Party had given consideration to which of the schemes from the Council’s capital programme reserve list should be recommended for inclusion in the programme.

Interest receipts for the last financial year were significantly higher than estimated. The investment strategy and market changes had provided the Council with extra resources to finance its capital programme.

Since the commencement of this financial year interest rates have decreased by 25 base points. The latest Bank Rate forecast from the Council’s treasury advisors for the remainder of this year indicated that there could be a further decrease of 0.25% in the 4th quarter of 2008 with a further reduction in the first quarter of 2009 to 4.50%. However, the Council had locked into investments that are well in excess of these levels, therefore the return on the Council’s investments should still compare favourably with the estimated investment income included in the 2008/09 budget.

Resolved

(a) That the report be received.

(b) That the performance of the in-house and externally managed funds in 2007/2008 be noted.

(c) That the current investments and performance in 2008/2009 be noted.

236. Urgent Business

The following two items were considered as they were decided by the Chairman to be urgent by virtue of Section 100B(4)(b) of the Local Government Act 1972.

1. Extraordinary Meeting of Council

The Chairman reminded Members that an Extraordinary Meeting of Council was to be held on Monday 13 October 2008 for the purpose of considering the implications for the Council of the government’s under 16s free swimming proposals.

2. North Yorkshire County Council Medium Term Financial Plan

The Council had been invited to participate in the consultation process in respect of the County Council’s Medium Term Financial Plan. Members welcomed the opportunity to participate as a consultee.

 

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