Resources Committee Minutes - 27 January 2005

Present

Res/60 Apology for Absence

An apology for absence was received from the Chairman, Councillor D I A Nattrass, with Councillor I Graham deputising and Councillor P T Evans taking the chair.

Councillor Evans, on behalf of the committee, wished Councillor Nattrass a speedy recovery following his recent surgery.

Res/61 Order of Agenda Items

Members considered the order of agenda items

RESOLVED that items be taken in order, as they appeared on the agenda.

Res/62 Minutes

Minutes Res/44 to Res/57 of the meeting of this Committee held on 2 December 2004; were signed as a correct record of those proceedings.

Res/63 Declarations of Interest

Councillor S Simpson declared a Personal Interest in item 18 of the agenda.

Councillor N Hughes declared a Personal Interest in item 19 of the agenda

Councillor R A Brunskill declared Personal interest which he considered prejudicial to his consideration of items 18, 19 and the Late item.

Res/64 Change to Benefit Fraud Guidelines

The Committee considered report F15/05 of the Director of Finance which proposed changes to the guidelines for sanctions in Benefit Fraud cases. The guidelines were last reviewed in July 2003. Changes to benefits legislation, practice and procedure have had an impact on the guidelines. The proposed revised guidelines take account of these changes. The main change was to allow the use of either a formal caution or administrative penalty for overpayments of less than £2,000 depending on the circumstances of the case. Previously the amount of the overpayment determined whether a formal caution or administrative penalty was offered. This sometimes meant that an administrative penalty (which is 30% of the overpayment amount) had to be offered when it was clear that a formal caution would have been a more effective deterrent. The Council had previously adopted the same overpayment amount parameters as those specified by the Department for Works and Pensions. This ensured that where the Council takes part in a joint exercise there is no conflict when determining the course of action to be pursued. The Department for Works and Pensions had recently changed its parameters and the proposed guidelines reflected these changes.

RESOLVED that the revised Benefit Prosecution Guidelines as set out be approved (appended to these minutes at Appendix 1 (PDF:39Kb) )

Reasons for decision

Revision of the guidelines kept the Council in step with Department for Works and Pensions' practices and ensured that the administration of benefit sanctions followed current best practice.

Other options considered

None

Res/65 Treasury Management Transactions Report: 1 April 2004 to 31 December 2004

The Committee considered report F11/05 of the Director of Finance summarising levels of Treasury Management activity and performance for the period from 1 April 2004 to 31 December 2004.

RESOLVED that the report be noted (appended to these minutes at Appendix 2 (PDF:180Kb) )

Reasons for decision

The requirement to receive a report every committee cycle is contained within the Council's Policy Statement on Treasury Management

Other options considered

None

Res/66 Collection Fund Precepts 2005-6

The Committee considered report F13/05 of the Director of Finance which advised Members that the Council was legally required by the Local Authority (Funds) (England) Regulations to consult with major precepting authorities, Cumbria County Council and Cumbria Police Authority, on proposed precept dates for 2005-6, before 31 December 2004. The report advised Members of those dates for the year in question.

RESOLVED that Members approve the payment dates as set out below.

Reasons for decision

At a previous meeting of Cumbria Chief Financial Officers agreement had been reached on the proposed precept payment dates for 2005-6

Other options considered

None

Res/67 Cumbria Local Government Pension Scheme 2004 Actuarial Valuation

The Committee considered report F17/05 of the Director of Finance which reported that over recent years, Cumbria County Council had performed well in the management of its assets, relative to other administering authorities. However, like all public and private pension funds, the shock to stock markets caused by the 11 September terrorism strikes had produced a substantial deficit to the fund. The level of solvency of the fund then stood at some 76%. Whilst stock markets had recovered much of the absolute loss the Pension Fund had lost much of the equity growth that would have been assumed in the last actuarial valuation. It is a statutory requirement that the Pension Fund should aim for solvency over the long term. This requires that any identified deficit is recovered over a reasonable time scale. It was suggested that the Council's deficit be recovered over a twenty year period, with no phasing, which was also the option of the County Council as an employing organisation. The additional employer's contribution costs for Eden District Council if approved resulted in an extra cost of £192,500 per annum.

RESOLVED that the deficit on this Council's share of the Cumbria Local Government Pension Scheme be recovered over a twenty year period, with no phasing.

Reasons for decision

1. As a local authority, the Council's employees have the right to be members of the Local Government Pension Scheme and, therefore, the Council is statutorily required to make employer contributions which, over a reasonable period, will ensure full solvency of the fund.
2. Recovering over too long a period may lead to a more difficult decision if the fund deficit was increased at the next valuation. Recovery over too short a period may produce financial pressure in the short term that is over-severe, especially if the next valuation shows a reduction in the deficit.

Other options considered

Res/68 Annual Review of Fees and Charges

The Committee considered report F67/04 of the Director of Finance detailing this part of the Council's annual budget exercise, whereby spending committees were asked to review the level of fees and charges, which were to be implemented from 1 April 2005. Most of the proposed increases were in line with inflation. It was further proposed to leave unchanged, the Eden District Council element of Land Charges, due to the increased competition in this area. Charges in connection with the Register of Electors were, included within fees and charges.

RESOLVED
that Members approve the report (appended to these minutes at Appendix 3 - PDF66Kb )

Reasons for decision

To ensure sound financial planning

Other options considered

Res/69 Revenue Estimates 2005-6

The Committee considered report F10/05 of the Director of Finance which proposed that the 2005-6 estimates were based on the 2004-5 estimates, plus inflation, less any known savings. Detailed estimates would be scrutinised by Management Team for possible savings before being presented to the service committee. Growth items were not included in the service committee estimates as they would be considered separately by service committees. Items agreed by service committees would then form part of the final growth list which the Resources Committee would then consider when it set the overall budget. The report further recommended raising charges in the light of market circumstances.

Motion by Councillor J M Smith
Seconded by Councillor M Davidson

That the recommendations set out in the report be approved

Amendment by Councillor N Hughes
Seconded by Councillor J M Smith

That as a contribution to reducing Committee and Member costs the provision of bottled water to Members of this Council when attending meetings be terminated

A vote was taken on the amendment when there were:

For the amendment: 2
Against the amendment: 6

The amendment fell

A vote was taken on the motion when there were:

For the motion: 7
Against the motion 1 (Councillor N Hughes)

The motion was carried and it was RESOLVED that

1. the revenue estimates for 2005-6 for inclusion in the Authority's overall General Fund estimates, which are subject to consideration later on this agenda (appended to these minutes at Appendix 4 (PDF:66Kb) ); and
2. the list of uncommitted growth items for further consideration as part of the overall estimates (appended to these minutes at Appendix 5 (PDF:83Kb) )

be approved

Reasons for decision

1. The Council's revenue budget is a key element of the overall budget and policyframework.
2. The Council has a legal duty to ensure its expenditure is met by its income, inclusive of reserves.

Other options considered

None

Res/70 Capital Programme 2005-6

The Committee considered report F3/05 of the Director of Finance which reported to Members on the Council's draft Capital Programme for 2005-6. The Director of Finance noted that the vendor had withdrawn from sale land adjacent to Eden Business Park, therefore the capital programme provision (£160,000 in 2004/5) for this purchase was no longer required. The report also identified the total capital resources available to the council and covered funding levels

RESOLVED that:

1. the agreed Capital Programme be the committed schemes (appended to these minutes at Appendix 6 (PDF:38Kb) )
2. the schemes listed below be included in the agreed Capital Programme;

   Essential	£'000	Year	Committee	Priority Area?
   Car Parks Blue Bell Lane and Appleby Pool	60	2005-6	Community and Economy
   Discretionary Renovation Grants	280	2008-9	Community and Economy
   	340

   
   

   Desirable	£'000	Year	Committee	Priority Area?
   Recycling - Bring Sites	25	2005-6	Environment	ü
   Recycling - Extension of Current Scheme	36	2005-6	Environment	ü
   Coronation Gardens, Penrith	10	2005-6	Community and Economy
   Penrith Chapel Refurbishment	100	2005-7	Community and Economy
   Castle Park Enhancement Feasibility	10	2005-6	Community and Economy
   	181

3. St Andrew's Church are informed that they need to confirm their funding arrangements by 31 December 2005

Reasons for decision

1. It is a priority for the Council to prepare and closely monitor its Capital Programme.
2. Failure to properly monitor could lead to capital funding being over-committed.

Other options considered

None

Res/71 General Fund Revenue Estimates 2005-6

The Committee considered report F16/05 of the Director of Finance on the Council's General Fund revenue estimates so as to inform and enable Members to make recommendations on a Budget Requirement for 2005-6 to Council. The Provisional Local Government Financial Settlement produced a cash increase of £149,000 (4.1%) which was considerably better than expected and was part of extra grant given to all councils in an effort to keep Council Tax increases to 'low single figures'. Whilst the Settlement was better than expected, it was more than matched by inflationary pressures and the cost of new duties, such as the implementation of the Licensing Act and the new emergency planning requirements.

Concern however was expressed at the suggested level of withdrawal from balances of which £718,654 related to recurring expenditure. The medium term projection showed that, even with the rental income from Southend Road, the Council had an on-going financial deficit. The strength of the Council's balances meant that this did not create any immediate difficulties, but a clear strategy to bring the expenditure and income back into line was essential, which was why this Committee had set up a Best Value review of its financial strategy to report in advance of 2006-7 budget cycle.

Motion by Councillor J M Smith
Seconded by Councillor R A Brunskill

That the proposals of the Leaders of the Council as to a Budget Requirement recommendation to Council, as contained within the report, be approved.

A vote was taken when there were:

For the motion: 8

Against the motion: 1 (Councillor N Hughes)

RESOLVED that the proposals of the Leaders of the Council as to a Budget Requirement recommendation to Council, as set out below be approved.

Whilst it is important that new growth is minimised, it is important that the Council's services meet the needs of the people of Eden, the requirements of the Government and, in particular, the Council's statutory obligations. It is therefore proposed that the uncommitted growth items are dealt with as follows:

As last year, the excess of cost of the play area upgrade programme over the base budget provision be funded from second homes' monies, this being £56,260. Council Tax be increased by 4.0% from £134.26 to £139.63. The level of increase is a very reasonable increase given the additional pressures being faced by the Council. The increase is also consistent with increases of 4.5% and 3.8% in 2003-4 and 2004-5 respectively. We are aware that there is a substantial contribution of £828,094 from balances and funding of £288,560 from second homes. This level of contribution from balances cannot be funded in the longer term. Similarly, we are aware that the funding from second homes is only certain for the next three years. Therefore, whilst we feel there is a sensible balance between growth in expenditure, increase in Council Tax and withdrawal from balances for2005-6, we are clear that the Council must make some very hard choices when it undertakes the agreed Best Value review of its financial strategy in the early part of the next financial year.

Reasons for decision

The Council is required to set a balanced budget which sets out how expenditure is to be funded from income and any required contribution from balances.

Other options considered

None

Res/72 Freedom of Information - Authorisation of a Qualified Person and amendments to Schedule 12(a) of the Local Government Act, 1972

The Committee considered report CLS4/05 of the Director of Corporate and Legal services which sought to inform Members of the proposals of the Secretary of State to amend Schedule 12(a) to the Local Government Act, 1972 and to authorise the Council's Monitoring Officer and Chief Executive as qualifying persons for the purposes of Section 36 of the Freedom of Information Act, 2000.

RESOLVED that:

1. the proposed amendments to Schedule 12(a) to the Local Government Act, 1972 and the authorisation of the Monitoring Officer and Chief Executive for the purposes of Section 36 of the Freedom of Information Act, 2000, be noted; and
2. the Director of Corporate and Legal Services be authorised to take whatever action is necessary to amend the Council's practices and procedures to accord with the new legislation once it is brought into force.

Reasons for decision

To amend the Council's practices and procedures to accord with the new legislation once it is brought into force.

Other options considered

None

Res/73 Alston Mill Race

The Committee considered report TS3/05 of the Director of Technical Services which examined an opportunity for providing financial support to Alston Moor Parish Council to enable a CCTV survey of the Mill Race at Alston. There was a long standing concern that the stone culvert that forms the Mill Race in Alston would eventually break down and cause damage and flooding. There were concerns over the capacity of the Mill Race, which had a number of pinch points along its length and was enclosed along much of its length which made it difficult to identify precisely its route through the town.

The Mill Race fell within the land drainage interests of the Environment Agency North East which was undertaking a review of the watercourse to determine if it should be classed as a Critical Ordinary Watercourse. If this classification is approved the Mill Race will be enmained and become the responsibility of the Environment Agency on 1 April 2006 relieving existing riparian ownerships of any further liability.

The parish council wished to undertake a CCTV survey of the Mill Race system to determine its condition and was seeking a financial contribution from the Council to achieve this. The cost of the survey had been quoted at £450 per day and it was expected to take approximately four days to complete. Due to the lack of access to the Mill Race and its unknown condition this might or might not be sufficient time for a complete survey of the full system. The parish council was hoping to establish a budget of £2,000 to fund the CCTV survey based on a £500 contribution from its own resources, £750 from the Environment Agency North East which had been agreed and a contribution of £750 from Eden. The survey would be commissioned and managed by the parish council.

RESOLVED that Resources Committee:

1. was unable to support a request from Alston Moor Parish Council for a contribution of £750 towards the cost of a CCTV survey of the Mill Race at Alston
2. was unable to approve a supplementary estimate in support of that application.

Res/74 Any other items

The Chairman informed the meeting that he had accepted a late item to the agenda which would be taken at the end of part 2 of the meeting

Res/75 Exclusion of Press and Public

RESOLVED that in accordance with Section 100A(4) of the Local Government Act 1972, Members of the Public (including the press) be excluded from the meeting during discussion of the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraphs 8 and 9 of Part 1 of Schedule 12A of the Act.

Res/76 Minutes

The minutes Res/58 to Res/59 of the meeting of this Committee held on 2 December 2004 were approved and signed as a correct record of those proceedings.

The following minutes Res/77 to Res/80 contain exempt information as described in the relevant paragraph of part 1 of schedule 12A of the Local Government Act 1972 and are excluded from this document by virtue of section 100A of the Act. Below is a summary of these proceedings.

Southend Road Retail Development - Legal Agreement (Paragraph 9)(Res/77)

The Committee considered a report of the Director of Technical Services which provided a progress report on the legal agreement with their preferred developer and sought endorsement of members for the various 'Heads of Terms' to that agreement. Approval was also sought for proposals for a portion of substantially unused Council land

The Committee approved the recommendations on the report.

Land at Highfield, Tebay (Paragraph 9)(Res/78)

The Committee considered a report of the Director of Technical Services which sought for approval in principal for the sale of building land and should that approval be given to, extend to the Director of Technical Services and the Chairman of Resources Committee, delegated powers.

The Committee approved the recommendations on the report.

BACSTEL IP and Paperless Direct Debit Provision (Paragraphs 8)(Res/79)

The Committee considered a report of the Director of Finance which advised Members as to the progress officers have made in ensuing the satisfactory migration of the Council's payment services to BACSTEL IP, which is recommended by banking institutions.

The Committee approved the recommendations contained within the report

The Chairman decided that the following item should be considered as a matter of urgency at this meeting because a delay of one committee cycle would not be in the best interests of the efficient operation of the service

Land at Eden Business Park (Paragraph 8)(Res/80)

The committee considered a report of the Director of Corporate and Legal Services which sought inform of recent discussions sought confirmation from Members that they were content for the sale of Council land to proceed.

The Committee approved the recommendations contained within the report

The meeting closed at 8:32pm