Meeting documents

• (Attachment: 1)Minutes

RESOLVED that the minutes of the meeting held on 7 January 2016 be approved as a correct record and signed.

Executive Members: Councillors E. Humphreys and Mrs R. Mill.
 

Non-Executive Members: Councillor D.J. Pay.
 

None.

• (Attachment: 2)Item 4: Budget 2016/17 Report inc. Annexes (163K/bytes)

The Executive Member for Finance, Councillor G.J. Knight, introduced the proposed Budget for 2016/17 which included a 1.94% increase in Council Tax for recommendation to Full Council. The report also included an updated Capital Programme.

A consultation exercise had been undertaken on the savings and growth proposals that had been considered by the Executive in November 2015. These proposals had been the subject of review by the Budget Scrutiny Panel and the Overview and Scrutiny Committee and the Portfolio Holder thanked them for their hard work in ensuring that the proposals were sound.

Councillor G.J. Knight presented two amendments to the growth and savings proposals. Firstly, the near neighbour notification of planning applications would continue unchanged for now, and the Garden Waste membership fee would be increased by £5 per year and not the previously reported £2. The Executive Member also indicated that the proposed Council Tax increase would mean that the average Council Tax charge would increase by £3.99 per year (or less than 8 pence per week), which equated to a charge of £209.44 per year for all the Council’s services.

It was noted that the Council’s base budget grant had decreased further than was expected when constructing the draft budget in November 2014 and it was noted that this form of Government funding would cease for this Council in the 2017/18 financial year.

However, it was important to note that the savings proposed, coupled with the modest tax increase, would allow the Council to maintain and to continue to deliver its services to a high standard. It was noted that it had been possible to propose a balanced budget for 2016/17 because of good budget management activities in previous financial years in preparation for such eventualities occurring, albeit much sooner than the Executive had planned for. It was noted that the prudent budget planning had provided time to consider the implications for 2017/18 and beyond to ensure that the Council continued to achieve sustainable budgets.

The Executive noted that it was increasingly necessary to manage the business in a way that optimised income from non traditional sources such as property, commercial or partnership related opportunities.

The Executive noted the Chief Finance Officer’s statement on the proposed budget which pointed out the risks and uncertainties associated with the budget proposals. This included economic factors, implications of reduced government funding levels and a continuation of the austerity programme.

The Leader and Executive Members responded to questions in relation to the following:

• The level of NNDR that could be retained;
• Implications of the removal of the Revenue Support Grant;
• Property development activity being undertaken to introduce new revenue income streams to the Council; and
• Implications on increasing the level of Council Tax further and the associated costs of holding a referendum.
 

RECOMMENDED that:
(i) a budget of £14.890m including the savings and growth previously reported, a provision for a pay award and an increase in Council Tax of 1.94% be approved;
(ii) the updated Capital Programme (Annex 1 to the report presented) be approved; and
(iii) the statement of the Chief Finance Officer (Annex 2 to the report presented) be noted

RESOLVED that the Chief Finance Officer be authorised to make any necessary technical adjustments to the budget and Council Tax demand proposed to Council arising from final budget refinements or changes to government grant.
 
Reasons for decision:
The Council is required to set a budget by March 11 each year.

Alternative options:
To amend or reject any or all of the budget proposals.
 

• (Attachment: 3)Item 5: Council Tax Setting 2016/17 Report inc. Annexes (69K/bytes)

A report was submitted on the level of Council Tax for 2016/17. It set out relevant statutory powers, issues (the proposed Council Tax increase and information relating to precepting authorities), legal, financial and equalities implications, risk management considerations, consultation undertaken and policy framework factors.

The Executive Member for Finance, Councillor G.J. Knight informed the Executive that the proposed Council Tax would be the subject of a recommendation to the February Council meeting. That meeting would receive confirmation of the final precept levels from the County Council and the Police together with any necessary adjustments required.

It was noted that when the report was produced a 4% increase was assumed for the County Council and 2% for the Police Authority.

The Executive Member indicated that he would respond in writing to a question about possible precepts from local authorities with responsibility for Flood Defence.

RECOMMENDED that:
(i) it be noted that on 17 December 2015 the Council calculated:
(a) the Council Tax base 2016/17 for the whole Council as 58,301
[Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended (the “Act”)] and,
(b) for dwellings in those parts of its area to which a Parish precept relates:
Horley Town Council 8,963
Salfords & Sidlow Parish Council 1,371

(ii) the Council Tax requirements for the Council’s own purposes for 2016/17 (excluding Parish precepts) is calculated at £12,210,561;

(iii) the following amounts be calculated for the year 2016/17 in accordance with Sections 31 to 36 of the Act:
(a) £68,323,638 – being the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils;
(b) £56,265,929 – being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act;
(c) £12,057,709 – being the amount which the aggregate at (iii)(a) above exceeds the aggregate at (iii)(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year (item R in the formula in Section 31A(4) of the Act);
(d) £206.82 – being the amount at (iii)(c) above (Item R), all divided by Item T ((i)(a) above), calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its Council Tax for the year (including Parish precepts);
(e) £347,147 - being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the Appendix to the report presented);
(f) £209.44 - being the amount at (iii)(d) above less the result given by dividing the amount at (iii)(e) above by item T ((i)(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates;
(g) Horley Town Council- £244.68
Salfords & Sidlow Parish Council - £232.24
Being the amounts given by adding to the amount at (iii)(f) above the amounts of the special items relating to dwellings in those parts of the Council’s area mentioned above divided in each case by the amount at (i)(b) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its Council Tax for the year for dwellings in those parts of its area to which one or more special items relate;

(iv) it be noted that the figures in the Appendix to the report presented being the amounts given by multiplying the amounts at (iii)(f) and (iii)(g) above by the number which, in the proportions set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of dwellings listed in different valuation bands;

(v) it be noted that for the year 2016/17 Surrey County Council and Surrey Police have stated amounts in precepts issued to the Council, in accordance with Section 40 of the Act, for each of the categories of dwellings shown in Appendix 2 to the report presented;

(vi) having calculated the aggregate in each case of the amounts (i) to (v), above, the Council, in accordance with Section 30(2) of the Act, hereby sets the amounts of Council Tax for the year 2016/17 for each of the categories of dwellings shown in Appendix 3 to the report presented; and

(vii) the Chief Finance Officer be authorised to make any amendments to the Council Tax demands as might prove necessary as the result of changes to the estimated demands issued by preceptors on the Council’s Collection Fund.

Reasons for decision:
To provide the information to fulfil the requirement of the Local Government Finance Act 1992 which sets out the requirement for local authorities to set a budget for the next financial year.

Alternative options:
Unlike previous years, there is no Council Tax Freeze Grant available for 2016/17. Therefore the budget had been based on a recommended Council Tax rise of 1.94% in 2016/17.
 

• (Attachment: 4)Item 6: Treasury Management Strategy 2016/17 Report inc. Annexes (667K/bytes)

The Executive considered a report seeking approval to consult on a draft treasury management strategy. This was appended to the report. The report set out a range of issues for the Executive to consider (objectives, the current treasury position, proposed changes and prudential indicators) together with legal, financial and equalities implications, risk management considerations, consultation undertaken and policy framework factors.

It was noted that the Strategy was broken down into the following sections:
• Investment Strategy
• Borrowing Strategy
• Cash Management Strategy
• Risk Management Assessment

The Executive Member for Finance, Councillor G.J. Knight indicated that no changes were proposed to these Strategies for 2016/17 and that the overriding focus would be on counterparty security and keeping the Council’s money safe.
The Executive Member also referred to a Member Panel meeting that he had convened to review the position to support expected activity in 2016/17.

RESOLVED that the contents of the Treasury Management Strategy report and Annexes to the report presented be approved for formal consultation in accordance with the Council’s Constitution.

Reasons for decision:
To support the adoption of a Treasury Management Strategy for the 2016/17.

Alternative options: To not support the report or to defer the report and ask Officers to provide more information and/or clarification on any specific points.
 

• (Attachment: 5)Item 7: New Contract procedure Rules Report inc. Annex (273K/bytes)

The Executive Member for Finance, Councillor G.J. Knight informed the Executive that the Council’s Contract Procedure Rules (CPRs) formed an important part of the governance framework, helped to ensure best value and protected the Council from allegations of impropriety.

Since Procedure Rules had last been updated there had been new UK legislation and significant amendments to the EU regulations governing procurement.

The Council had also recently acquired an e-procurement system (In-Tend). This allowed the Council to meet the new regulatory requirements - as well as aligning with the regulations of other Surrey district councils to better support joint-procurement and other shared service arrangements in the future. It would also enable closer working with the County Council who host the system.

As a result of all of these changes it had become necessary to completely re-write the CPRs rather than just amend the existing ones in the Constitution. These were presented in full to the Executive and it was

RECOMMENDED that:
(i) the new Contract Procedure Rules set out at Annex 1 to the report presented be approved; and
(ii) the Monitoring Officer be authorised to amend the Constitution to include the new Contract Procedure Rules.

Reasons for decision:
To adopt new Contract Procedure Rules as part of the Council’s Constitution.

Alternative options:
To reject or request amendments to the proposed new CPRs.
 

• (Attachment: 6)Item 8: Marketfield Way Acquisition of Interests Report Part 1 (196K/bytes)

Councillor Mrs N.J. Bramhall, Executive Member for Property and Regeneration informed the Executive that in October 2015 it had confirmed the continued viability of the Marketfield Way redevelopment scheme in Redhill and approved it to proceed the Planning stage.

The Marketfield Way redevelopment was a cornerstone of the Council’s plans to support the regeneration of Redhill Town Centre. When completed, it would provide a multi-screen cinema, attractive retail offer, and high quality housing. It would increase footfall through the town and greatly improve the evening economy, as well as offering new jobs and much needed town centre housing.

Land on the site was presently in multiple ownership, and a vital part of the current stage was for the Council to acquire all of the lease and leasehold interests needed to enable this regeneration scheme to be progressed.

It was noted that excellent progress had been made in negotiating with leaseholders to make the necessary acquisitions without the need to utilise Compulsory Purchase Powers. These negotiations were in accordance with the previously approved financial parameters as set out in the Exempt part of the Executive’s agenda.

As an additional benefit, the acquisition of one of the significant interests in the site would provide a short-term revenue income stream for the Council, on top of the significant income which will be provided by the completed scheme. This revenue income, at a time of increasing financial pressure on the Council, would help to support the provision of vital services to residents across the whole borough.

RESOLVED that:
(i) the acquisition by agreement of the long leasehold interest at 18/34 High Street Redhill together with the other leases and leasehold interests for properties set out in the exempt information report (at Part 2 of the Executive’s Agenda) be approved, in accordance with the acquisition costs and contingency allowance set out in the same exempt information;
(ii) the Head of Property be authorised, in consultation with the Leader, Deputy Leader, and Executive Members for Finance and Property & Regeneration, to agree Heads of Terms for the acquisition by agreement of a long leasehold interest at 18/34 High Street Redhill together with the other leases and leasehold interests for properties identified in the exempt information report (at Part 2 of the Executive’s Agenda); and
(iii) the Head of Property be authorised to take all of the necessary steps to subsequently acquire the long leasehold interest at 18/34 High Street Redhill together with the other leases and leasehold interests for properties identified in the exempt information report (at Part 2 of the Executive’s Agenda).

Reasons for decision:
The development of the Marketfield Way site is a key element of regeneration plans for Redhill Town Centre, and would enhance the economic, environmental and social prosperity of one of Reigate & Banstead’s primary towns. Land on this site is currently in multiple ownership and, in order to progress this scheme, it was vital that the Council acquired all of the necessary interests.

Alternative options:
Pursue a Compulsory Purchase Order in respect of these interests; delay the acquisition of any interests until after re-confirmation of scheme viability at Stage 3 (following receipt of construction contractor tenders); or do nothing.
 

None.

None.

RESOLVED that members of the Press and public be excluded from the meeting for the following items of business under Section 100A(4) of the Local Government Act 1972 on the grounds that:
(i) it involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Act; and
(ii) the public interest in maintaining the exemption outweighs the public interest in disclosing the information.
 

• (Attachment: 7)Item 12: Marketfield Way Acquisition of Interests Report Part 2 (187K/bytes)

RESOLVED that the exempt information relating to the Marketfield Way acquisitions be noted.