Agenda and minutes

Any Member who is substituting for another Member should so indicate, together with the name of the relevant absent Member.

The following substitutions were declared:

Councillor Ivor Mclatchy for Councillor Karen Richardson.

Apologies for absence were received from Councillor Karen Richardson.

To confirm the minutes of the meeting held on 24 November 2016 (copy attached).

The minutes of the meeting held on 24 November 2016 were unanimously accepted by the Committee as an accurate record and signed by the Chairman.

Members of the public who live or work in the Borough are invited to put one question or statement of not more than 3 minutes duration relating to items to be discussed in Part 1 of the agenda only.  If a question is asked and answered within 3 minutes, the person who asked the question may ask a supplementary question that arises from the reply.

A person who wishes to speak must register at least 15 minutes before the time of the meeting is scheduled to start.

There is an overall time limit of 15 minutes of public speaking, which may be extended at the Chairman’s discretion.

Public participation had been included within the previous informal discussions and there had been no questions/statements from members of the public.

Report No: PAS/SE/17/001

(For reference purposes Forest Heath District Council’s Report Number is PAS/FH/17/001)

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/001.

Members had scrutinised the report, and there being no decision required, the Committee noted the Council’s performance using the Balanced Scorecards for Quarter 3, 2016-2017.

Report No: PAS/SE/17/002

(For reference purposes Forest Heath District Council’s Report Number is PAS/FH/17/002)

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/002.

Members had scrutinised the report and asked questions to which responses were provided.

There being no decision required, the Committee noted the contents of the Quarter 3 West Suffolk Strategic Risk Register monitoring report.

Report No: PAS/SE/17/003

(For reference purposes Forest Heath District Council’s Report Number is PAS/FH/17/003)

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council’s Performance and Audit Scrutiny Committee, the Committee formally considered Report No: PAS/SE/17/003.

Members considered the report, and there being no decision required, the Committee noted the contents of its forward work programme.

Report No: PAS/SE/17/004

The Committee received Report No: PAS/SE/17/004, which set out the financial performance for the third quarter of 2016-2017 and forecasted outturn positon for 2016-2017.

Attached at Appendix A and B to the report was details of the Council’s revenue performance and year end forecasted outturn position.  Explanations of the main year end forecast over/(under) spends was set out within paragraph 1.2.3 of the report. Members were requested to note the current position and the significant variances over £25,000 (paragraph 1.2.3).  The current forecast position for the year end was expected to be a slight underspend against budget of £34,000.

Appendix C to the report set out the Council’s capital financial position for the first nine months of 2016-2017, which showed expenditure of £1,892,000.  Finally, a summary of earmarked reserves was attached at Appendix D, along with the forecast year end position for 2016-2017.

The Resources Team would continue to work with Budget Holders to monitor capital spend and project progress closely for the reminder of the financial year and an updated position would be presented to the Committee on a quarterly basis.

The Committee scrutinised the report in detail and asked a number of questions to which comprehensive responses were provided.  In particular discussions were held on the variances over £25,000 for trade waste; off-street car parks and homelessness.

In response to a question raised regarding homelessness, it was reported that the figure represented the cost of those who presented themselves as homeless to the Council. 

Members also discussed the brown bin service and the subscription renewals which would be due for renewal shortly.  Officers informed members that an on-line direct debit system would be brought in shortly, which would make it easier for residents to subscribe to the service.

There being no decision required, the Committee noted the Quarter 3 financial performance and the 2016-2017 year end forecast financial position.

Report No: PAS/SE/17/005

The Committee received Report No: PAS/SE/17/005, which updated members on progress made towards delivering a balanced budget for 2017-2018 and sustainable budget in the medium term.

In November 2016, the Committee received Report No: PAS/SE/16/029, which set out the context of the 2016-2017 budget and the MTFS, including details of savings targets, budget assumptions and know pressures for 2017-2020.  This report (PAS/SE/17/005) gave an update on that position.

Additional pressures and progress made to date in achieving the 2017-2020 savings target, were set out in Table 1 of the report.  It was proposed that these be incorporated into the budgets, over and above those items brought to the Committees’ attention in November 2016, as part of Report No: PAS/SE/16/029.

It was reported that the council’s pension contribution rate had risen from 27.7% to 28.2% in 2017-2018 following the triennial review, and this had been afforded within the existing salary budgets.  Work also continued on the property and projects work packages and would be concluded for the main Budget and Council Tax Report to Cabinet and Council in February 2017.  The aim being to achieve a balanced budget positon across the medium term and to use reserves and one-off budgetary savings, if necessary, to balance the budget in the short term.

The Performance and Audit Scrutiny Committee was asked to support and recommend to Cabinet the inclusion of the proposals, as set out in Table 1, in order to progress securing a balanced budget for 2017-2018 and delivering a sustainable MTFS 2017-2020.

The Committee scrutinised the report in detail and asked a number of questions to which officers duly responded.  In particular discussions were held on the process used for setting the Council Tax levels, which was carried out at the end of the budget process.

The Committee noted the progress made on delivering a sustainable Medium Term Financial Strategy 2017-2020.

Councillor Beccy Hopfensperger moved the recommendation, this was duly seconded by Councillor Patricia Warby, and with the vote being unanimous, it was:

          RECOMMENDED

That the proposals as detailed in Table 1 at paragraph 1.2.1 of Report No: PAS/SE/17/005 be included in order to progress securing a balanced budget for 2017-2018.

Report No: TMS/SE/17/001 will be considered by the Treasury Management Sub-Committee on 16 January 2017.  The Chairman/Head of Resources and Performance will update the Committee verbally on any issues or recommendations arising from the consideration of this report.

The Committee received Report No: TMS/SE/17/001, which had been considered by the Treasury Management Sub-Committee on 16 January 2017.  The Head of Resources and Performance provided a verbal update on the Sub-Committee’s consideration of the report which presented the Council’s third quarter Treasury Management Report summarising the investment activities for the period to 31 December 2016.

It was reported that at the end of December 2016, interest earned during the first nine months of the financial year amount to £327,926, an over-achievement of £119,814.  The over-achievement of interest was predominantly due to higher cash balances being available for investment than expected.  These increases were mainly due to timing differences in the collection and payment of Council Tax, NNDR and other revenue streams, and underspends relating to the budgeted capital programme.  The reduced average rate of return was due to the reduction in the Bank of England base rate and resulting reduction of interest rates offered by institutions.

As at 31 December 2016, the Council held £55,450,000 in investments, and the Council had no borrowings or temporary loans.

The Sub-Committee had scrutinised the investment activity for 1 April to 31 December 2016, and asked questions to which officers duly responded.  In particular members discussed the different daily interests rates offered by various institutions. 

The Performance and Audit Scrutiny Committee considered the report and asked questions to which responses were provided.

Councillor David Nettleton moved the recommendation, this was duly seconded by Councillor Patricia Warby, and with the vote being unanimous, it was

          RECOMMENDED

That subject to the approval of Council, the Treasury Management Report for the period 1 April to 31 December 2016, attached at Appendix 1 to Report No: TMS/SE/17/001, be approved.

Report No: TMS/SE/17/002 will be considered by the Treasury Management Sub-Committee on 16 January 2017.  The Chairman/Head of Resources and Performance will update the Committee verbally on any issues or recommendations arising from the consideration of this report.

The Committee received Report No: TMS/SE/17/002, which had been considered by the Treasury Management Sub-Committee on 16 January 2017. 

The Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management required that, prior to the start of the financial year, the Council formally approved an Annual Treasury Management and Investment Strategy, setting out the Council’s treasury management policy and strategy statements for the forthcoming year.

The Head of Resources and Performance provided a verbal update on the Sub-Committee’s consideration of the report, which sought approval of the Annual Treasury Management and Investment Strategy Statements 2017-2018 including Treasury related Prudential Indicators (attached as Appendix 1 to Report No: TMS/SE/17/002) and Treasury Management Code of Practice (attached as Appendix 2).

The revised investment counterparty limits, reported to the Sub-Committee on 21 November 2016, had been incorporated into the new 2017-2018 Investment Strategy Statements.

The new Treasury Management Code of Practice (Appendix 2) had also been updated accordingly to reflect the proposed Annual Treasury Management and Investment Strategy Statements 2017-2018.  The revised investment counterparty limits, report to the Sub-Committee on 21 November 2016, had been incorporated into the 2017-2018 Treasury Management and Investment Strategy, along with the use of Enhanced Money Funds, which had been added to the approved types of investments.  The report also included information on interest rate projections and counterparty ratings and lending criteria.

The Sub-Committee noted that the final prudential indicators would be updated as part of the Medium Term Financial Strategy, and approved by Council in February 2017.

The Sub-Committee scrutinised the report in detail and asked a number of questions, to which responses were provide.  In particular discussions were held on the revised interest rate projections from Sector (the Council’s advisors), which were based on the current economic climate; and the option of short or long term borrowing available to the Council and whether there was any other prospects for borrowing. 

The Performance and Audit Scrutiny Committee considered the report and asked questions to which responses were provided.

Councillor David Nettleton moved the recommendation, this was duly seconded by Councillor Betty Mclatchy, and with the vote being unanimous, it was

          RECOMMENDED

That subject to the approval of Council:

1)  The Annual Treasury Management and Investment Strategy Statements 2017-2018, attached as Appendix 1 to Report No: TMS/SE/17/002, be approved.

2)  The Treasury Management Code of Practice 2017-2018, attached as Appendix 2 to Report No: TMS/SE/17/002, be approved.