Agenda item

To receive a report from the Cabinet on recommendations referred to the Council for determination and on Key Decisions made since the publication of the agenda for the previous Council meeting held on 18 December 2019:

 

1. New Corporate Strategy 2020-2024
2. Interim Housing Revenue Account Business Plan
3. Housing Revenue Account Revenue Budget Proposals 2020/21 (updated version)
4. Capital Programme and Capital Strategy 2020/21
5. General Fund Revenue Budget 2020/21 and Medium Term Financial Strategy 2020/21 to 2023/24
6. Prudential Indicators and Treasury Management Strategy 2020/21
7. Cabinet Report to Council

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.

 

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Councillor Illingworth left the meeting.

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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.

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Councillor Holmes left the meeting.

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                   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.

 

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Councillor Holmes returned to the meeting.

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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)

 

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Councillor Carter left the meeting.

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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)