Decision Maker: Council
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
1) A
NEW CORPORATE STRATEGY 2020-2024
The
Leader moved the recommendations in the report and provided the following
introduction:
Following
the District Council elections in May 2019, the council had taken the
opportunity to consider what the focus should be over the next 4 years. Working
with all members, officers and the community the Cabinet were proud to have
developed an ambitious new strategy which makes commitments to significantly invest
in our housing services, environmental enforcement, improving customer services
and delivering the homes, jobs and infrastructure the Borough requires. It also
directly responded to the issues heard on doorsteps, during the election
campaign, as well as those highlighted in the extensive 2019 residents’ survey.
At
a time of significant financial pressures, there was a need to prioritise and
redirect resources to different areas. With this in mind, the new strategy
sought to find a balance between affordability and ambition, a balance between
investing in core services and in new initiatives.
The
strategy would be underpinned by the vision to “become a first-class council;
on the side of our communities and providing great service, where the customer comes
first. We want to help people reach their potential, support the most
vulnerable, and protect our rural environment. We want to provide more and
better homes, create better jobs and regenerate the town. We want to ensure
Melton prospers, benefiting those who live here and attracting others to visit
and invest.”
As
well as drawing upon the residents’ survey, the Council had consulted on the
proposals during December 2019 and received positive feedback on our new
priorities and key investment decisions.
These
aspirations had been built into the budget and medium term financial strategy
also before members on the agenda.
The
Leader was very proud of the strategy and of what it would seek to achieve for
residents and was delighted to recommend it to council for adoption.
The
recommendation was seconded by Councillor Higgins.
--o0o--
Councillor Illingworth left the meeting.
--o0o--
During
debate of the recommendations points raised included:
i.
Councillor
Browne thanked those that had worked to develop the Corporate Plan and noted
its ambition to deliver to residents and communities with Council Housing being
a key priority. Delivery of growth and
regeneration was welcomed. The vision to
increase employment opportunities and improve skills would be a challenge but
was a positive aspiration. Focusing on
early years and focused intervention was key to ensuring that young people had
the opportunity to learn and develop. Schemes such as Me and My Learning would
be key to this. Working towards an
environment where intervention services would help to tackle social issues and
promote inclusivity and contribute to this key priority.
ii.
Councillor
Child welcomed the proposals to invest in commercial property to achieve long
term growth and regeneration. Such
investments would require case by case analysis.
--o0o--
Councillor Holmes left the meeting.
--o0o--
iii.
Councillor
Posnett commended some of the schemes that had contributed to increasing
opportunities and support for young people such as Me and My Learning; Sure
Start Centres; and the Learning Hub.
There were many good examples of positive outcomes attributable to these
valuable services;
iv.
Councillor
Evans highlighted that the Cabinet were in a difficult situation, the Council
had been struggling for some years and he hoped that this Strategy would
provide some solutions. He pointed out
that this was still not wholly inclusive as it referred to “Melton”, where it
should refer to the “Borough” as otherwise those living in rural areas outside
of the town would feel excluded.
v.
Councillor
Higgins highlighted that he represented both the rural areas and the town and
that the Strategy was inclusive and aimed at improving services and living
conditions in the whole Borough. There were many initiatives to support rural
areas, such as the Rural Pub Support Package which was being looked at. There were also events and celebrations which
were held in the Town, but were very much directed to attracting people from
both the town and villages.
RESOLVED
To
APPROVE the new Corporate Strategy
2020-2024.
The
above resolution was voted as follows:
FOR
THE MOTION (20)
Bains, Bindloss, Browne, Chandler, Child, Cumbers, de Burle, Douglas,
Faulkner, Fisher, Freer-Jones, Graham, Higgins, Lumley, Orson, Pearson,
Posnett, Smedley, Steadman, Wilkinson.
AGAINST
THE MOTION (0)
ABSTAINING
FROM THE MOTION (5)
Carter,
Evans, Hewson, Pritchett, Wood.
--o0o--
Councillor Holmes returned to the meeting.
--o0o--
2) INTERIM
HRA BUSINESS PLAN JANUARY 2020
The
Portfolio Holder for Housing and Communities introduced and moved the
recommendations in the report. The
Portfolio Holder provided a short introduction confirming that this was an
interim plan with a full 30 year plan expected to be developed by Autumn 2022.
The business plan was critical in ensuring that maintenance of high quality
housing assets, focus on customer service and improving homes and
neighbourhoods could be delivered in a financially sustainable way. The Housing Improvement Plan had already
brought about significant changes, but there was still much to do. The interim business plan retained focus on
project areas and prioritised compliance; stock condition; housing delivery;
and customer care.
The
recommendation was seconded by Councillor Orson.
RESOLVED
a)
To APPROVE the Interim HRA Business
Plan as set out in Section 6 of the
report.
b)
To APPROVE the proposed Capital programme
as proposed in Appendix A of the report.
The
above resolutions were voted as follows:
FOR
THE MOTION (26)
Bains, Bindloss, Browne, Carter, Chandler, Child, Cumbers, de Burle, Evans,
Douglas, Faulkner, Fisher, Freer-Jones, Graham, Hewson, Higgins, Holmes,
Lumley, Orson, Pearson, Posnett, Pritchett,
Smedley, Steadman, Wilkinson, Wood.
AGAINST
THE MOTION (0)
ABSTAINING
FROM THE MOTION (0)
--o0o--
Councillor Carter left the meeting.
--o0o--
3) REVENUE
BUDGET PROPOSALS 2020-21 - HOUSING REVENUE ACCOUNT (HRA)
The
Portfolio Holder for Housing and Communities introduced and moved the
recommendations in the report. The
Portfolio Holder provided a brief summary of the recommendations and advised
that provision and availability of high quality social housing also had a
positive impact on the private rental and housing market.
The
recommendation was seconded by Councillor Orson.
During
debate of the recommendations points raised included:
i.
Councillor
Evans confirmed that he wholly supported the revitalisation of the housing
stock and had faith in the Portfolio Holder and the newly appointed Director
for Housing and Communities to deliver the required improvements as a matter of
urgency.
RESOLVED
a)
To APPROVE the estimates for 2020-21
subject to receipt of the rent standard, with delegated authority being given
to the Portfolio Holder for Housing & Communities in consultation with the
Director for Corporate Services to amend the estimated working balance based on
any changes to this standard;
b)
To APPROVE an average rent increase of
2.69% for all Council dwellings for 2020-21 with effect from 1 April 2020 and
that when a property is re-let the rent continues to be brought into line with
the Government’s formula rent;
c)
To APPROVE a delegation to the Director
for Housing & Communities in consultation with the Director for Corporate
Services to access the Regeneration & Development Reserve balance for
schemes and projects supporting the HAMP and in line with the HRA Business
Plan.
The
above resolutions were voted as follows:
FOR
THE MOTION (25)
Bains, Bindloss, Browne, Chandler, Child, Cumbers, de Burle, Evans, Douglas,
Faulkner, Fisher, Freer-Jones, Graham, Hewson, Higgins, Holmes, Lumley, Orson,
Pearson, Posnett, Pritchett, Smedley,
Steadman, Wilkinson, Wood.
AGAINST
THE MOTION (0)
ABSTAINING
FROM THE MOTION (0)
4) CAPITAL
PROGRAMME AND CAPITAL STRATEGY2020/21
The
Portfolio Holder for Corporate Finance and Resources moved the recommendations
in the report and provided the following introduction:
I’m pleased to present the proposed Capital
Programme for 2020/21 along with the updated Capital Strategy which has been
recommended for approval by Cabinet.
The report outlines the proposed capital
schemes for the forthcoming year along with how the schemes will be funded.
This covers the capital programmes for the general Fund only with the Housing
Revenue Account being presented as part of the interim HRA business plan.
The capital programme is integral to the
council’s budget framework and sits alongside the Treasury Management and
Capital Strategies.
In particular the requirement for an updated
Capital Strategy has been a key focus for the council over recent months in
order to provide an overarching document which sets the policy framework for
the development, management and monitoring of capital investment. The capital
strategy seeks to align with the priorities set out in the Corporate Plan. The
Strategy aims to drive the authority’s capital investment ambition whilst
ensuring capital expenditure and its associated
financing are sustainable in the long term.
However, members may have noticed that the
capital programme is relatively light which is a reflection of the need for
condition surveys to be undertaken on Councils assets to help inform the future
capital requirements. Officers will
prioritising this work during 2020 with any associated capital requirement
arising from this work being presented to members in due course as the capital
programmes and strategies are further developed.
Future resources available to support
further capital aspirations will be influenced by an Asset Disposal Policy. The
developing Investment Strategy will consider strategic regeneration initiatives
and the potential for commercial investment supported by borrowing.
The
recommendation was seconded by Councillor Orson.
RESOLVED
a) To APPROVE
funding for capital schemes in respect of General Expenses for 2020/21 and the
sources that funding will be taken from, be as set out in Appendix A.
b) To APPROVE
the Capital Strategy at Appendix C.
The
above resolutions were voted as follows:
FOR
THE MOTION (20)
Bains, Bindloss, Browne, Chandler, Child, Cumbers, de Burle, Douglas,
Faulkner, Fisher, Freer-Jones, Graham, Higgins, Lumley, Orson, Pearson,
Posnett, Smedley, Steadman, Wilkinson.
AGAINST
THE MOTION (0)
ABSTAINING
FROM THE MOTION (6)
Carter,
Evans, Hewson, Holmes, Pritchett, Wood.
5) GENERAL
FUND REVENUE BUDGET 2020/21 AND MEDIUM TERM FINANCIAL STRATEGY 2020/21 TO
2023/24
The
Portfolio Holder for Corporate Finance and Resources moved the recommendations
in the report and provided the following introduction:
Melton Borough Council like many council’s
has lost significant funding in the last few years and continuing to provide
the same services going forward without reviewing these is not an option if the
council is going to balance its budget and focus limited financial resources in
our priorities. In order to address this Members are approving a new corporate
plan following consultation with our residents to ensure our budget and future
investment decisions are built upon a new vision and priorities that will guide
us in shaping a better future for Melton.
Growth and investment in housing,
enforcement and service improvement is proposed in line with the new Strategy,
but through redirecting resources and anticipated additional income and
efficiencies delivered, it is proposed that there will be no draw on reserves
to fund ongoing expenditure
The key elements in the budget proposed are:
•
A balanced budget is set 2020/21
•
Overall council tax increase of £5 the
maximum allowed for a district council
•
Recurring Expenditure growth on the general
fund of £46,780
•
One off growth expenditure of £158,750
(£100k funded from LLEP grants)
There is still much uncertainty regarding
the council’s finances as evidenced by the forward projections set out in the
report. A review is underway of local
government funding which will consider how scarce resources are distributed
between the various local government tiers and individual authorities. Whilst a
case has been made for the lack of funding in rural areas such as Melton, as a
district we do not have the pressures of social care and children’s services
and central government will be looking to ensure these demand led services are
adequately resourced from what will be a limited pot of funding for the sector.
As such the Council needs to be prudent and ensure it can secure a sustainable
financial position moving forward.
As a result of funding reductions the
council has seen its reserves depleted due to the need to invest in key areas
and deliver its capital programme, but the position has stabilised, with the
budget for 2020/21 being a balanced one with no draw on reserves to fund
ongoing expenditure. The government are also undertaking a Fair Funding Review
around how councils are funded in the future which could have a further
significant impact on the council’s financial position moving forward. The
council will also continue to explore opportunities to become more commercial
as a way of helping to become more self-sufficient.
The risks in the report clearly show the
extent of risk that now affects local authority
budgets.
The
recommendation was seconded by Councillor Orson.
RESOLVED
a) To APPROVE
the proposals for General Expenses and Special Expenses MM as set out in
Appendix A (i) and (ii) and summarised in paras 6.10
to 6.12 for inclusion in the 2020/21 budget resulting in the estimates set out
in Appendix B;
b) To APPROVE
the revenue budget for 2020/21 for General and Special Expenses as set out in
Appendix B resulting in an overall council tax increase of £5, the individual
council tax levels being as set out in para 6.12;
c) To APPROVE
that the permanent establishment be updated in line with the growth proposals;
d) To APPROVE
that any increase or shortfall against the target working balance on General
Expenses at 31 March 2020 be adjusted by transfers to/from the Corporate
Priorities Reserve and for Special Expenses Melton Mowbray any surplus/deficit
be transferred to/from the Special Expenses Reserve;
e) That members NOTE the changes made to the risk categorisation of budgets as set
out in para 6.14 and Appendix D.
The
above resolutions were voted as follows:
FOR
THE MOTION (20)
Bains, Bindloss, Browne, Chandler, Child, Cumbers, de Burle, Douglas,
Faulkner, Fisher, Freer-Jones, Graham, Higgins, Lumley, Orson, Pearson,
Posnett, Smedley, Steadman, Wilkinson.
AGAINST
THE MOTION (0)
ABSTAINING
FROM THE MOTION (6)
Carter,
Evans, Hewson, Holmes, Pritchett, Wood.
6) PRUDENTIAL
INDICATORS AND TREASURY MANAGEMENT STRATEGY 2020/21
The
Portfolio Holder for Corporate Finance and Resources moved the recommendations
in the report and provided the following introduction:
I am pleased to present the annual treasury
management strategy for 2020/21 alongside the prudential indicators which is a
key strategy for the Council that sits alongside annual budget report and
capital strategy which are being presented to Council elsewhere on the agenda
this evening.
This report outlines the Council’s prudential
indicators for 2020/21 – 2022/23 and sets out the expected treasury operations
for this period covering the legislation requirements placed upon the Council
to manage its Treasury function effectively.
These policies and parameters provide an
approved framework within which the officers undertake the day to day capital
and treasury activities.
I am not proposing to go through all of the
indicators and information in detail but the Director for Corporate Service and
the Corporate Services Manager will be happy to answer any specific queries.
The Treasury Management Strategy is attached
as Appendix A and covers the operation of the treasury function and its
activities for the forthcoming year and reflects the Council’s capital and
commercial investment strategies.
Officers have reviewed and taken advice from the Council's treasury
management advisors when developing the strategy.
Two new areas have been included:
1. Sustainable
and Ethical Investments
The Council recognises the importance of
supporting sustainability and ethical investments and will be taking these
issues in account when considering its investments.
2. Multi
Asset Funds
This investment option has been added in as
another long term investment option which will provide a greater level of
return which would sit between the normal banking deposit returns and that of
the property fund. This provides some
more flexibility for investments over the medium term.
I would also like to highlight in terms of
investment performance the Council is currently achieving an average rate of
return of nearly 1.24% which is very good in the current economic environment
with bank rates remaining low. Through effective management of the treasury
portfolio officers are forecasting an additional £60k in additional investment
returns during 2019/20 compared to the original budget.
The
recommendation was seconded by Councillor Orson.
During
debate of the recommendations points raised included:
i.
Councillor
Child confirmed his understanding that any commercial strategy and funding
requirements in relation to the housing company
would come back to Council for approval.
RESOLVED
a)
To ADOPT and APPROVE the prudential indicators and limits.
b)
To ADOPT and APPROVE the Treasury Management Strategy and treasury management
prudential indicators.
c)
To APPROVE the Minimum Revenue Provision
(MRP) Statement which sets out the Council’s policy on MRP.
The
above resolutions were voted as follows:
FOR
THE MOTION (26)
Bains, Bindloss, Browne, Carter, Chandler, Child, Cumbers, de Burle, Douglas,
Evans, Faulkner, Fisher, Freer-Jones, Graham, Higgins, Hewson, Holmes, Lumley,
Orson, Pearson, Posnett, Pritchett, Smedley, Steadman, Wilkinson, Wood.
AGAINST
THE MOTION (0)
ABSTAINING
FROM THE MOTION (0)
Publication date: 26/02/2020
Date of decision: 26/02/2020
Decided at meeting: 26/02/2020 - Council
Accompanying Documents: