To consider the recommendations from the meetings of the Executive held on 12 January 2010 and 9 February 2010 and answer questions asked under Rule No. 12.1.

 

(Note: It is anticipated that the Chairman will exercise his authority to take the recommendations of the Executive in relation to the Medium Term Financial Plan and Budget 2010/11 to 2014/15 in conjunction with the report on the Council Tax at item 18.)

 

 

 

Executive – 12 January 2010

 

(a)    Treasury Management Strategy

 

The Council considered a recommendation from the meeting of the Executive held on 12 January 2010 which sought approval of the Treasury Management Policy and the Treasury Management Strategy. 

 

Members noted that since the Executive meeting held on 12 January 2010, a change in advice had been received from CIPFA necessitating a correction to the counterparty list in the Treasury Management Strategy, as the list could not now rely on a single indicator for credit rating counterparties.  Additionally, a variation to accommodate the views of the Overview and Scrutiny Committee was also proposed to the section on “Maturity Structure of Borrowing”.

 

The Portfolio Holder for Corporate Resources therefore moved an amended recommendation as set out in the Chairman’s Briefing Note.

 

RESOLVED

 

1.      that the Treasury Management Policy and the Treasury Management Strategy, attached as Appendices A and B to the submitted report, be approved subject to:-

 

(a)         Maturity Structure of Borrowing

Appendix B – page 18

        

(i)      Addition of a new paragraph 11.3 as follows:-

 

“The maturity of the Council’s borrowing is profiled in order that no more than 20% matures in any one financial year”; and

 

(ii)     Deletion of Table 11 and renumbering of Table 12 as Table 11.

 

(b)        Counterparty list

Appendix D – page 23

 

(i)      Delete the following:-

 

         “For credit rated counterparties, the minimum criteria will be the highest short term and a long term rating (equivalent to AA- or higher) assigned by various agencies which may include Moody’s Investor Services, Standards and Poor’s, Fitch rating.”

 

(ii)         Replace with the following:-

 

“With credit rated counterparties, the minimum criteria will be the highest short term and a long term rating (equivalent to A+ or higher) assigned by Moody’s Investor Services, Standards & Poor’s, Fitch rating and either have access to the UK Government’s Credit Guarantee Scheme or are systemically important to the sovereign state’s economy.”

 

2.      that the CIPFA Treasury Management in the Public Services Code of Practice 2009 and The Prudential Code for Capital Finance in Local Authorities, be adopted.

 

 

(b)    Review and Refresh of the Local Area Agreement

 

The Council considered a recommendation from the meeting of the Executive held on 9 February 2010 which sought approval of the revised Local Area Agreement targets.

 

RESOLVED

 

1.            that the revised Local Area Agreement (LAA) target being proposed by Central Bedfordshire Council for National Indicator 152 working age people on out of work benefits, as detailed in paragraph 12 of the submitted report, be approved; and

 

2.            that the revised LAA targets being proposed by Central Bedfordshire Council for National Indicator 154 Net Additional Homes Provided, as detailed in paragraphs 13 and 14 of the submitted report, be approved.

 

 

(c)    Capital Programme 2010/11 to 2014/15

 

         The Council considered a recommendation from the meeting of the Executive held on 9 February 2010 which sought the approval of the Capital Programme 2010/11 to 2014/15.

 

         In particular Members raised the following matters:-

 

·        Section 106 funding was provided for a lower school as part of the southern Leighton Buzzard development which was due to be built in 2010.  A concern was raised that due to the delay in developing the houses in this area, this would lead to delay in developing a lower school and that the funding in the Section 106 Agreement would be lost.  Members were advised that a review was being carried out looking at the legacy authorities’ Section 106 Agreements

 

·        a request was made that as well as the rescheduled scheme for the extension of Sandy Sports and Recreation Centre, that Stotfold Leisure Centre should be considered.  It was noted that this would be included in the review and

 

·        assurance was requested that funding for the building works to be carried out at Tithe Farm Lower School, Houghton Regis would go ahead.  The Portfolio Holder for Children’s Services advised that she would supply the Member concerned with a written response.

 

RESOLVED

 

1.      the Capital Programme 2010/11 to 2014/15 as submitted to the Executive report be approved, subject to:-

 

(a)         all borrowing associated with the Capital Programme being kept to the minimum necessary, with a target of achieving at least 20% reduction in borrowing; and

 

(b)        reducing the value of the scheme known as ‘ICT’ Infrastructure’ in the 2010/11 starts by £247,000 and substituting it, to the same value, with the scheme known as ‘Timberlands Travellers Site’ from the reserve listing;

 

2.      that the future resourcing issues and risks associated with the delivery of a robust Capital Programme beyond 2011/12 be noted;

 

3.      the Housing Revenue Account Capital Programme as set out at Appendix F to the Executive report, be approved;

 

4.      that, having taken account of the comments of the Corporate Resources Overview and Scrutiny Committee:-

 

(a)    a further review of the Capital Programme should be undertaken at the end of the first quarter of the next financial year with the objective of minimising the borrowing impact during 2011/12; and

 

(b)    that as part of the review referred to in (a) above:-

 

(i)           the comments of the Overview and Scrutiny Committees relating to capital projects should be addressed; and

 

(ii)     the position regarding the scheme for the extension of Sandy Sports and Recreation Centre should be considered.

 

 

(d)    Medium Term Financial Plan and Budget 2010/11 to 2014/15

 

In advance of the consideration of this matter, the Chairman advised that under the provision of Rule No. 5 of the Council Procedure Rules he wished to vary the order of business to enable the recommendation set out in Minute E/09/173 to be taken in conjunction with item 18 on the agenda on the subject of the Council Tax 2010/11.

 

The Council considered a recommendation from the meeting of the Executive held on 9 February 2010 which sought approval of the Medium Term Financial Plan and Budget for 2010/11 to 2014/15.  The Leader introduced the recommendation, commenting that it was important to restore the Council’s reserves to be able to respond to unexpected events; that services must be delivered; and that the Council must embrace localism.

 

The Portfolio Holder for Corporate Resources proposed the Revenue Budget 2010/11 and the Medium Term Financial Plan 2010/11 to 20104/15.  A revised Housing Revenue Account (HRA) Summary and Council Tax Resolution report was tabled at the meeting, to correct a number of errors in the banding calculations.

 

In his introduction, the Portfolio Holder for Corporate Resources made a number of points.  He drew attention to the need to face the results of the worst recession in living memory together with drastically reduced investment income arising from plummeted interest rates.  He advised that the true cost of Adult Social Care was £5.1 million greater than had been projected.  He drew attention to the need for reserves at the minimum level of £4.9 million.  He indicated that consultation was underway over some of the proposed efficiency savings and that there may be a need to make some adjustments to reflect the outcome of those consultations.  It was noted that savings of £12 million would nonetheless be required to balance the budget.

 

Following debate, it was

 

RESOLVED

 

(a)    that the Revenue Budget for 2010/11 and the Medium Term Financial Plan 2010/11 to 2014/15 as set out in Appendix A of the submitted report to the Executive, be approved;

 

(b)    that the requirement to achieve targeted efficiency savings of      £12.074m be noted and that the Corporate Management Team be instructed to implement these savings, or to propose      compensatory savings, where any specific proposal now identified could be delivered;

 

(c)    that the Council Tax Base for 2010/11 as set out in Appendix E to the Executive report, be noted;

 

(d)    that the Band D Council Tax for 2010/11 be set at:-

 

(i)        £1,308.33 for residents in the north of Central Bedfordshire (ie: within the area of the former Mid Bedfordshire District Council  as listed in Appendix E (i)); and

 

(ii)       £1,344.15 for residents in the south of Central Bedfordshire (ie; within the area of the former South Bedfordshire District Council as listed in Appendix E (i));

             

(e)    that the Housing Revenue Account Business Plan as set out in    

         Appendix I including the revised HRA Summary tabled at the meeting, be approved;

 

(f)     that delegated authority be given to the Portfolio Holder for Housing, in consultation with the Director of Social Care, Health and Housing, to amend the rent increase accordingly, in the event of the final HRA rent/subsidy determination being amended;

 

(g)    that, having taken into account the views of the Corporate Resources Overview and Scrutiny Committee, any additional savings being identified over and above those already included within the Revenue Budget now submitted:-

 

(i)      should be separately identified;

 

(ii)     should not be retained within the service budget within which the savings originated, but should be returned to reserves and the original service budget adjusted accordingly; and

 

(iii)    should not be utilised without the approval of the Executive;

 

(h)    that the Council Tax resolution set out in Appendix A to the minutes, be approved.

 

 

(e)    The Gambling Act 2005 – Gambling Policy

 

         The Council considered a recommendation from the meeting of the Executive held on 9 February 2010 which proposed a Statement of Principles Policy under the Gambling Act 2005.

 

         RESOLVED

 

1.         that the Gambling Act 2005, ‘Statement of Principles’ policy, as attached to the submitted report, be adopted; and

 

2.         that delegated authority be given to the Director of Sustainable Communities, in consultation with the Portfolio Holder for Safer and Stronger Communities, to undertake any necessary minor amendments to the policy prior to its publication.