To approve as a correct record the minutes of the meeting of the Customer and Central Services Overview and Scrutiny Committee held on 13 December 2010 (copy attached).

RESOLVED

that the Minutes of the meeting of the Customer and Central Services Overview and Scrutiny Committee held on 13 December 2010 be confirmed and signed by the Chairman as a correct record.

To receive from Members any declarations and the nature thereof in relation to:-

(a)    personal interests in any agenda item;

(b)    personal and prejudicial interests in any agenda item;

(c)     any political whip in relation to any agenda item.

To receive any announcements from the Chairman and any matters of communication.

The Chairman suggested that the receipt of verbal updates from the Directorate’s Portfolio Holders (Item 9) and consideration of the Committee’s current work programme and the latest Executive Forward Plan (Item 12) be deferred in order to allow additional time for consideration of the financial items before Members.

The Chairman then advised that the additional item on the Capital Programme Review, which he had agreed to take as a matter of urgency, would be considered prior to the report on the statutory review of fees and charges and the business cases arising from the Revenue Income Optimisation (RIO) Project (Item 11).

RESOLVED

That the agenda items relating to the receipt of verbal updates from the Portfolio Holders for Customers, Systems and Assets, Finance, Governance and People and Policy and Performance and consideration of the Committee’s current work programme and the latest Executive Forward Plan be deferred until the next meeting of the Committee on 24 January 2011.

To receive petitions from members of the public in accordance with the Public Participation Procedure as set out in Annex 2 of Part A4 of the Constitution.

No petitions were received from members of the public in accordance with the Public Participation Procedure as set out in Part D2 of the Constitution.

To receive any questions, statements or deputations from members of the public in accordance with the Public Participation Procedure as set out in Annex 1 of Part A4 of the Constitution.

No questions, statements or deputations were received from members of the public in accordance with the Public Participation Procedure as set out in Annex 1 of Part A4 of the Constitution.

To consider any decision of the Executive referred to this Committee for review in accordance with Procedure Rule 10 of Part D2 of the Constitution. 

No decisions of the Executive were called-in to be reviewed in accordance with the Call-In Procedure as set out in Part D2 of the Constitution.

To consider any items referred to the Committee at the request of a Member under Procedure Rule 3.1 of Part D2 of the Constitution.

No items were referred to the Committee for consideration at the request of a Member under Procedure Rule 3.1 of Part D2 of the Constitution.

To receive brief verbal updates from the Portfolio Holders for Policy and Performance, Finance, Governance and People and Customers, Systems and Assets.

The meeting was aware that this item had been deferred (minute 112 refers).

The Committee was aware that the Chairman, by virtue of the authority vested in him in accordance with Section 100(b)(4)(b) of the Local Government Act 1972, had agreed to allow this item to be considered at the meeting as a matter of urgency.  The revised Capital Programme for 2011/12 to 2014/15 had been considered by the Executive on 11 January 2011 and had been referred to the overview and scrutiny committees for consultation purposes. 

Members were further aware that consideration of this item could not be delayed until the next scheduled meeting of the Customer and Central Services Overview and Scrutiny Committee as the Committee was considering all other budget related items at its current meeting.  Further, the closing date for the receipt of responses by the Executive was 25 January.

On this basis the Committee was asked to consider the relevant report by the Portfolio Holder for Finance, Governance and People.

a)         Block/Rolling Budgets

Members referred to an item included within the capital programme for Customer and Shared Services entitled “CBC Corporate Property Block Budget”, which had a budget of £4M in 2011/12.  In response to queries Members were informed that the sum was made up of a number of individual projects, some of which were substantial in cost terms (i.e. over £100k).

Members also referred to an item entitled “ICT Infrastructure” which had a budget of £1M over the same period and expressed concern over the absence of any detail on the constituent projects for this item.

Following further comment Members were advised that there was no financial threshold within the capital programme above which items were required to be identified separately (rather than contained within block or rolling programmes).

It was Members opinion that this arrangement was unsatisfactory and that in future the capital programme should list all individual projects above £100k rather than, as was the case now, being contained within block and/or rolling programmes.

            RECOMMENDED to the Executive

that consideration be given to amending the presentation of the capital programme to ensure that all projects above £100k are listed individually.

b)         Affordability and Sustainability

The issue at (a) above led Members to discuss whether the review of the capital programme had been sufficiently robust and whether there was further opportunity to remove items not deemed a priority.  Whilst acknowledging that many of the Council’s intended savings were dependent on investment to enable changes to processes the Committee felt that, in some cases, the amounts stated appeared substantially larger than had been anticipated.   Members therefore felt the capital programme should be revisited to ensure its affordability and sustainability.

            RECOMMENDED to the Executive

that consideration be given to revisiting the capital programme to ensure that all items contained within it are essential, affordable and sustainable.

c)         Optionality: Schools Capital Funding

Members briefly discussed the recently received capital grant of £18M from the Department for Education for schools capital funding and requested that this item be included in the Council’s capital programme, together with details of the optionality  ...  view the full minutes text for item 118.

To consider and comment on a report on the revised Fees and Charges to be effective from 1 April 2011 and the business cases resulting from the Revenue Income Optimisation (RIO) Project.

The Committee received a report by the Portfolio Holder for Finance, Governance and People which asked Members to consider and comment on a report, originally submitted to the meeting of the Executive 11 January 2011, which had set out the proposed fees and charges rates to be effective from 1 April.  The Executive had agreed that the rates be approved as the basis for consultation with overview and scrutiny committees.  In addition the Committee was asked to consider the related business cases arising from the Revenue Income Optimisation (RIO) Project. 

The meeting noted that any recommendations were required by 25 January so that they could be considered by the Executive at its next meeting on 15 February.

The meeting further noted that Members’ comments were only being sought on those fees and charges for which the Committee was responsible.  Accordingly, car parking charges were specifically excluded as these were being examined by a dedicated task force which was to submit its findings to the Sustainable Communities Overview and Scrutiny Committee.

Following discussion Members endorsed the fees and charges relating to the Customer and Shared Services Directorate mindful that the Executive had approved a minimum increase of 5%, in line with the Retail Price Index, for the majority of fees and charges.

Members asked that appropriate rounding up or down be applied to all fees and charges contained within the Executive report.  In addition, Members wished to ensure that all directorates were confident that they were recovering in full the service costs associated with these fees and charges. If such confidence was missing, it was the Committee’s opinion that further investigative work be undertaken to ensure full cost recovery in future years.

RECOMMENDED to the Executive

1          that all fees and charges are appropriately rounded up or down;

2          that assurance be sought from officers that the service costs associated with fees and charges are being recovered in full and that, if this is not the case, the officers be requested to undertake further investigatory work with the aim of ensuring full cost recovery in the future.

NOTED

the business cases arising from the Revenue Income Optimisation (RIO) Project.

To consider budget proposals for 2011/12 (including the capital programme).

The Committee considered a report by the Portfolio Holder for Finance, Governance and People which set out the draft budget proposals for 2011/12 to 2013/14 based on the most up to date information on the Council’s future resources.  The meeting was aware that the report had originally been considered by the Executive on 11 January 2011 where it had been agreed that the report should be used as the basis for consultation with the Council’s overview and scrutiny committees and other interested parties.  It had also been agreed that, in order that the Executive could finalise its budget proposals at its meeting on 15 February 2011, the closing date for representations would be 25 January 2011.

In addition Members considered a revised Appendix A2 to the report which set out amended projections.

The Chairman stressed that the Committee should focus on examining the robustness of the financial information before it and how the base budget had been constructed.  He also expressed the view that more detailed information should be made available in the future to ensure that the Committee could give fuller consideration of this matter.

The meeting then turned to consider the draft budget proposals for each of the Council’s Directorates and the Office of the Chief Executive in turn.  Members raised a number of queries and sought additional background information from relevant Portfolio Holders, Members and officers where possible.

a)         Clarity, Transparency and Detail

Members expressed concern over the budget process to date and the level of transparency and relevant detail provided to the Committee regarding both the base and draft budgets. It was some Members’ opinion that whilst there had been a considerable quantum of numbers provided, these lacked clarity and missed key details and explanation, and hence had been insufficient to allow thorough scrutiny of the budget and in terms of its presentation had also lacked clarity. These factors had conspired to reduce transparency overall and it was Members wish that the process, presentation, detail and explanation of numbers be improved in the future.

            RECOMMENDED to the Executive

that consideration be given to improving the level of detail and transparency of the budget and budget process in future years.

b)         Grants

With regard to Item (a) above, Members were particularly concerned about the lack of clarity and detail provided regarding grant income. The treatment of grants and how they were presented in both the base and draft budget was, in Members opinion, ambiguous.  It was therefore Members’ wish that a comprehensive list of grants received in the current financial year, together with those expected in 2011/12, be presented to the Executive and full Council when each considered the final budget for 2011/12.

            RECOMMENDED to the Executive

that the Executive and full Council receive a comprehensive list of grants received in 2010/11 and expected in 2011/12 when considering the final budget for 2011/12.

c)         Previous OSC Recommendations regarding Savings Proposals

Members noted that the Executive had yet to consider or respond to the Overview and Scrutiny Committees’  ...  view the full minutes text for item 120.

To consider the Committee’s current work programme and the latest Executive Forward Plan.

The meeting was aware that this item had been deferred (minute 112 refers).