12th December 2005 - Minutes of Joint Meeting

BABERGH DISTRICT COUNCIL

OVERVIEW AND SCRUTINY (COMMUNITY SERVICES) COMMITTEE AND OVERVIEW AND SCRUTINY (STEWARDSHIP) COMMITTEE

MINUTES OF A JOINT MEETING OF THE OVERVIEW AND SCRUTINY (COMMUNITY SERVICES) COMMITTEE AND THE OVERVIEW AND SCRUTINY (STEWARDSHIP) COMMITTEE HELD IN THE COUNCIL CHAMBER, COUNCIL OFFICES, CORKS LANE, HADLEIGH ON MONDAY 12 DECEMBER 2005

PRESENT: Ms J A Jenkins - Chairman

Mr K Grimsey, Mr N H J Irwin, Mr R E Kemp, Mr J A B Long, Mr J M Owen, Mr J W Roberts and Mrs W J Sadler were unable to be present.

1     ELECTION OF CHAIRMAN

RESOLVED

That Ms J A Jenkins be elected to Chair the meeting.

2     SUBSTITUTE

It was noted that in accordance with Council Procedure Rule No. 5, a substitute was in attendance as follows:-

Mr D C Rose (substituting for Mr R E Kemp)

3     DECLARATION OF INTEREST

Mr D G Grutchfield declared a personal interest in Papers E227 and E227A by virtue of his membership of Hadleigh Town Council and Suffolk County Council, but indicated that his interest was such that he was able to speak and vote on the matters concerned.

4     PETITIONS

None received.

5     QUESTIONS FROM MEMBERS

None received.

6     BUDGET 2006/07

Mr D M Busby declared a personal interest in Paper E227 by virtue of the fact that he is a member of the National Market Traders Association, but indicated that his interest was such that he was able to speak and vote on the matters concerned.

Dr M R Miller, Chairman of the Service and Financial Planning Group, presented a report (Paper E227) setting out proposals for the Council’s 2006/07 budget.

In doing so he drew Members’ attention to the following points:-

• The Group’s objective had been to make proposals for the 2006/07 budget which would support the development of the Council’s priorities and the delivery of the Corporate Plan, whilst at the same time achieving a Council Tax increase for Babergh at the rate of inflation. Significant savings and additional income had been identified to achieve these objectives.
  
• The CAST programme had particularly large spending requirements as set out in paragraphs 4.16 to 4.19 of Paper E227. Over the next three years there would be a capital requirement of £1M plus a gross revenue requirement of nearly £2M. It was expected that cashable savings of £1.35M would arise from the programme in the three-year period, with further savings in subsequent years.
  
• In order to meet the estimated cost of the CAST project and also to make provision for replacing Hadleigh pool there would be, in addition to the planned reduction of reserves, a need to end the Council’s debt-free status and potentially borrow over £3M, the reasons for which are set out in paragraphs 4.6 and 4.7 of Paper E227.

The Head of Finance presented a report (Paper E227A) setting out changes and variations which had arisen since the last meeting of the Service and Financial Planning Group on 18 November 2005. He summarised these as follows:-

• Improved grant settlement of £146,000 compared to the assumption of £5,348,000 resulting in a total grant of £5,494,000 for 2006/07.
  
• Replacement of the general inflation assumption of a 3% Council Tax increase with the actual Government RPI level that is used for the Business Rates multiplier of 2.7%, reducing projected Council Tax income by £11,000.
  
Additional changes to specific areas of the draft budget which had emerged and were felt to be appropriate totalling £65,000.

In the discussion on Papers E227 and E227A the following were among the points noted:-

• Members believed that even if, in the light of the improved provisional grant settlement, it is possible to set a Council Tax increase for 2006/07 below the RPI, it would not be financially prudent to do so. The Council’s objective should be to set a Council Tax increase at the rate of inflation.
  
• Members were concerned at the large amounts of money required for CAST and at the fact that it was as yet unclear whether it would be possible to work in partnership with other authorities. Geoff Kistner, Corporate Director, explained the position in relation to the planned use of reserves for CAST and the budget generally and that the estimated costs, savings and use of reserves for CAST would be closely monitored by officers and Members.
  
• Currently two Business Process Re-engineering pilot studies were underway. It was hoped that the work would be completed by the end of January 2006. The results would be evaluated by the CAST Group, the Strategy Committee and then the Council at its meeting in April 2006.
  
• Some Members expressed misgivings about ending Babergh’s current debt-free status. However, it was noted that the Council had borrowed in the past and capital receipts available were reducing with the only alternative being to reduce the Capital Programme.
  
• Members wished it to be made clear that if they approved the CAST budget and funding arrangements set out in paragraph 4.17 of Paper E227, the situation would need to be reviewed regularly by the Strategy Committee and Council. To this effect an amendment to the recommendations set out in Paper E227 was proposed, seconded and carried and is incorporated in the wording of Recommendation 4 below.
  
• Officers were asked to clarify the definition of a Street Trader as opposed to a Market Trader and to provide information on the number of licensed Street Traders in the District.
  
• Officers also agreed to clarify the latest financial position on licensing.

RECOMMENDED TO STRATEGY COMMITTEE

(1) That the General Fund Capital Programme for 2006/07, as set out in Appendix 1 to Paper E227, be approved.

(2) That the Council Housing Capital Programme for 2006/07, as set out in Appendix 2 to Paper E227, be approved.

(3) That the General Fund new revenue Service Priorities, as set out in Appendix 5 of Paper E227 and the General Fund Savings/Additional Income, as set out in Appendix 6 to Paper E227 as amended by Paper E227A, be approved.

(4) That the CAST budget and funding arrangements in the table in paragraph 4.17 of Paper E227 be approved, with any costs only being incurred with the agreement of the Strategy Committee and with staged reviews of the position every six months by full Council.

(5) That Revised Charges for 2006/07, as set out in Appendix 8 to Paper E227, be approved.

(6) That a Council Tax increase at the rate of inflation of 2.7% be approved.

Mr B D Hurren abstained from voting on resolution 4 above and requested that his abstention be recorded in the Minutes.

It was noted that the comments and recommendations of the joint meeting would be included in a report to a meeting of the Strategy Committee scheduled to be held on 12 January 2006. The report would include the information provided in Paper E227, as updated by Paper E227A.

The Members of the Service and Financial Planning Group, Geoff Kistner, the Head of Finance, his staff and Service Heads were thanked for their hard work in preparing their proposals relating to the 2006/07 Budget.

Note:- The Committee adjourned for refreshments between 10.55 a.m. and 11.20 a.m.

The business of the meeting was concluded at 12.35 p.m.

………………………………………

Chairman