Meeting documents

• (Attachment: 1)Minutes

RESOLVED that the minutes of the meeting held on 27th October 2016 be approved as a correct record and signed.

Executive Member: Councillor Mrs R. Mill.

Non-Executive Members: Councillors D.J. Pay, R.C. Newstead and C.T.H. Whinney.
 

None.

• (Attachment: 2)Item 4: Mid Year Treasury Management Performance 2016/17 Report (303K/bytes)

The Executive received a report on treasury management performance for the first half of the financial year. The report covered treasury management performance up to Period 6, which showed that the overall projected outturn was a small underspend against the budget.

The report also provided an update on the Investment Strategy, Borrowing Strategy, and Cash Management Strategy. The Executive noted that no changes were proposed to any of these strategies.

It was noted that from the Prudential Indicators that the Capital Programme and the Capital Financing requirement had been updated to take account of carry forwards and other proposed changes (the details of which were set out in the report under the Service and Financial Planning 2017/18 item) and the Borrowing Limits were unchanged from when the current Strategy had been adopted earlier in the year.

The Executive also received an update on the Economic Conditions and Expected Movements in Interest Rates provided by the Council’s advisors, Capita Asset Services.

Councillor T. Schofield, Executive Member for Planning Policy and Finance summarised the position by indicating that overall the Council’s treasury management activity was, for the first half of the year, on track to meet its projected outcomes.

RECOMMENDED that the Treasury Management Performance for the year to date and the prudential indicators be noted.

Reasons for decision:
To comply with the requirements of the regulatory framework for treasury management and meet the Council’s reporting requirements.

Alternative options:
Accept the report, but ask Officers to provide more detail on some specific issues contained in the report.
 

• (Attachment: 3)Item 5: Service & FInancial Planning 2017/18 Report (476K/bytes)

The Executive Member for Planning Policy and Finance, Councillor T. Schofield presented a report that set out the national and local context within which the Council was managing its service and financial planning arrangements, including the provisional budget proposals for 2017/18.

Councillor Schofield indicated that the Council had a strong and focussed service and financial planning process in place, between Members and Officers, that continually allowed issues, opportunities and challenges to be discussed so that the Council could change and adapt accordingly.

The Executive Member indicated that a series of savings and income measures (of over £800,000) had been identified that would allow a balanced budget for 2017/18 to be achieved. They had also been examined against their impact on reserves. The Executive noted that the proposals were planned changes to the way that the Council ran its business to meet current and future challenges. In addition the proposals also allowed for essential growth items required to reflect the Council’s 5 Year Plan priorities. This included a stronger focus on supporting people – particularly vulnerable people - and on promoting prosperity.

An updated copy of the proposed Capital Programme was received which would enable the Council to deliver high quality services and to continue to explore efficient and effective ways of delivering services. In particular, leisure and regeneration schemes which would make great contributions to the “people” and “place” based priorities within the 5 Year Plan.

The Executive Member emphasised that it was essential that the Council continued to become financially self-sufficient as it would no longer receive revenue support grant and the proportion of the business rates that the Council would be allowed to keep was projected to decline steeply by 2019.

Councillor Schofield congratulated the Council on its financial management arrangements. Despite the many challenges it had faced Council Tax had only risen by the equivalent of 30 pence per week in the last 5 years. To ensure that the continued reductions in government funding and that high quality services to residents were maintained the budget proposals assumed a £5 rise in the band D Council Tax bill, which represented an increase of less than 10 pence per week.

Members noted that the budget would be the subject of review by the Budget Scrutiny Panel as part of the Policy Framework consultation process.

RESOLVED that:

(i) the national and local service context be noted;

(ii) the service proposals set out in the report, which seek to respond to the context and deliver our 5 Year Plan, be endorsed;

(iii) the draft 3 year business plans 2017/18 – 2019/20 be approved, and the Head of Corporate Policy and Performance be authorised to finalise these plans, in consultation with the relevant Portfolio Holder;

(iv) the Head of Corporate Policy and Performance be authorised, in consultation with the Leader of the Council and Head of Finance, to make any necessary changes to the Corporate Business Plan 2016-20 arising from the service and financial planning changes agreed for 2017/18;

(v) the following proposed budget changes and financial planning be approved for consultation under the Council’s budget and policy framework:
a) Medium Term Financial Plan for 2017/18-2021/22 (Annex 1)
b) Savings and income totalling £1.552m (Annex 2)
c) Growth totalling £0.703m (Annex 3)
d) Updated Capital Programme (Annex 4)

Reasons for decision:
To ensure that the Council continued to plan and manage its resources well, deliver high standards of service and meet the aims and objectives of our adopted 5 Year Plan.
 

Alternative options:
• Only approve some of the proposed budget and financial planning changes set out within the report, for consultation under the Constitution.
• Reject the proposed budget and financial planning changes set out within the report, and request that further work be undertaken to develop new proposals for consultation under the Constitution.
 

• (Attachment: 4)Item 6: Local Council Tax Support Scheme (135K/bytes)

Councillor Mrs R. Renton, Executive Member for Community Support informed the Executive that local authorities were required to introduce a local reduction scheme each year to replace the national Council Tax Benefit scheme. The scheme affected residents of working age and receiving benefits, or on low levels of income or earnings. The initial scheme established in 2013/14 was continued into 2016/17 and the proposal was to extend it for a fifth year.

The Executive noted that the government funded around 90% of the Council Tax Support cost, with the remainder shared between the Council, Surrey County Council and Surrey Police.

It was noted that the scheme currently provided support to those who need it, but sought a contribution from most residents towards their Council Tax and for using services within the borough. Important elements of the scheme were to ensure that residents did not lose out on support when they entered work and to ensure that disabled residents or those providing care were protected from any reduction in the support they received.

The scheme included a cost of living increase for households in line with those increases applied to the National Housing Benefit scheme. It was noted that currently some allowances were subject to zero increases and that it was proposed that this would be reflected in the local scheme.

It was also recognised that there would be instances where households were genuinely unable to pay their Council Tax, and these households would be able to receive a further discretionary reduction in their Council Tax under the legislation.

RECOMMENDED that the local Council Tax Reduction Scheme for 2017/18, as outlined in the report, be adopted.

RESOLVED that the Council Tax Reduction Scheme, being recommended, be noted as a continuation of the Scheme introduced in 2013/14 with some changes to reflect increases in the cost of living in line with other benefits and allowances.

Reasons for decision:
The initial local scheme was introduced from 2013/14 and had been effective in reducing the level of support awarded whilst ensuring that those residents who were most vulnerable were not penalised unfairly.
Those residents who were disabled or provided care for other disabled people were exempt from any reductions in their support compared to the former national scheme, and would receive maximum support based on the Council Tax Benefit scheme which was abolished in 2013.
Council Tax collection rates from residents receiving support had been positive, and processes were in place to recover arrears from residents who choose not to pay.

Alternative options:
To further reduce the level of support or to adopt the criteria of the former Council Tax Benefit scheme and increase the level of support payable.
 

• (Attachment: 5)Item 7: Park Farm Depo - Conversion Feasibility (240K/bytes)

Councillor Mrs N.J. Bramhall, Executive Member for Property, introduced a proposed feasibility study to ascertain whether the former depot at Park Farm was suitable for residential conversion (at an anticipated cost of £75,000).

It was noted that Park Farm was a cluster of former farm buildings, last used as a Council depot, located off Holly Lane, Banstead. Originally a farm and mansion constructed in the 1880s, the buildings, two of which were listed, had served a variety of uses including a POW camp in WW2. The buildings were all in poor condition and the historic listed buildings were in need of refurbishment. The majority of the buildings were currently let on a short term basis to a waste management contractor and a vintage car restorer.

The location and nature of the site meant that potential future commercial uses were limited and its rental value was therefore restricted. It was anticipated that capital expenditure on the buildings would not yield a justifiable return and that it was more viable to consider a conversion of these buildings to residential use.

Councillor Mrs Bramhall indicated that capital funding was required to procure the necessary consultants to carry out the feasibility studies. Issues to be considered as part of the studies would be the listed nature of some of the buildings status; the Green Belt location together with it being in an Area of Great Landscape Value and being in close proximity to Banstead Woods (an ancient woodland).

The Executive noted that the Banstead & District Scouts Association had a lease over the adjacent site and would surrender the small section of one building occupied in order to facilitate the proposed conversion. At the same time they would be granted a new lease over the two sheds in the car park and a field which did not form part of the proposed conversion.

If the initial studies were positive and, subject to planning permission being obtained, it was suggested that the site could be disposed to obtain a capital receipt for the Council.

RECOMMENDED that the Capital programme be revised to provide £75,000 funding for the feasibility surveys detailed in the report to the Executive.

RESOLVED that:

(i) the Head of Property Services be authorised, in consultation with the Executive Member for Property, to make the necessary consultant appointments to carry out feasibility studies to assess the possibility of residential conversion of the former depot buildings, not exceeding the budget of £75,000;

(ii) subject to the results of the feasibility studies, the Head of Property be authorised, in consultation with the Executive Member for Property and the Head of Finance, to prepare and submit a planning application; and

(iii) the Head of Property be authorised, in consultation with the Executive Member for Property, to agree terms for, and complete, the disposal of the site in accordance with the minimum value set out in the exempt information at Part 2 of the agenda or, in the event that the feasibility study identified that there was potential value in the Council building out the development itself, that a further report be brought to the Executive to consider the details of that option.

Reasons for decision:
One of the Council’s stated objectives in the 5-Year Plan was to maximise the value of our assets; this included disposing of surplus assets. This former depot site had ceased to be used for operational purposes and the buildings were let on a short term basis. Pending the results of the feasibility studies (to determine the possibility of conversion to residential use) it would provide the highest and best return for the asset. If the study results were positive detailed planning approval for residential conversion would be sought as part of the sale to generate a capital receipt.

Alternative options:
Take no action and continue to lease out the buildings; explore refurbishment for continued commercial uses or, assuming that the results of the studies were positive, the Council consider carrying out the conversion.
 

• (Attachment: 6)Item 8: Guest House Acquisition (120K/bytes)

Councillor Mrs N.J. Bramhall, Executive Member for Property presented a proposal to the Executive to acquire a guest house in Horley to be converted for use as emergency accommodation.

It was noted that the agreement had been achieved for the purchase of a 10 bed guest house in Horley for £852,000 which, subject to survey and contract, was proposed to be acquired through the use of s106 monies received. The necessary due diligence activity was underway at a cost of approximately £12,000 which was also proposed to be funded through the s106 resources.

The Executive noted that planning consent would be sought for the change of use and external alterations of the property (including Conservation Area consent). Additionally independent building, mechanical, electrical, asbestos and drainage surveys would be carried out prior to purchase.

The proposed alterations included a rear two storey extension (to replace the existing conservatory); the replacement of the wooden lean to with a single storey extension; the addition of a small kitchen area to each unit; a bathroom pod per two units; one laundry for the whole block and high quality CCTV in communal areas and externally. It was projected that the works would be approximately £200,000 funded from s106 funds.

The Housing team would seek to employ a staff member to manage the hostel (together with 7 other properties acquired and two others being constructed for emergency accommodation). This would replace the existing managing agent arrangement.

The Executive Member indicated that savings (estimated at £170,600 pa) on B & B expenditure were projected which would be in addition to increased income estimated to be £93,800 pa. Running costs were estimated at £58,000 pa.

The acquisition formed part of the Councils strategy to reduce its costs and overheads (from homelessness) and keeping vulnerable households within the borough.

RESOLVED that the use S106 funds be authorised for:

(i) the acquisition of a guest house in Horley to use as emergency accommodation; and

(ii) the necessary alterations, surveys and application for planning consent to convert the guest house for that purpose be approved.
 
Reasons for decision:
One of Housing’s business plan objectives was the targeted use of Section 106 funding to contribute to reducing the cost implications of increased homelessness and the increased use of Bed & Breakfast / emergency accommodation. Acquisition and conversion of this property would significantly contribute to that objective.

Alternative options:
The Council to consider building their own emergency accommodation having acquired a suitable site; or to take no action and continue to place the homeless in B & B accommodation (at a cost to the Council of £170,600 pa. and increasing).
 

• (Attachment: 7)Item 9: Tattenham Way Recreation Ground Appropriation (831K/bytes)

Councillor Mrs N.J. Bramhall, Executive Member for Property sought the Executive’s approval to proceed with the appropriation of the toilet building at Tattenham Way recreation ground.

The premises comprised an underused toilet block that was proposed to be converted to a café with WC. This would provide an enhanced facility for the users of the recreation ground and an additional rental income stream for the Council.

The proposal followed from an expression of interest from a small catering business to convert the block into part café, part WC. Following a tendering process the successful applicant also obtained planning consent for the conversion.

The block, currently dilapidated and underused, would be converted by the applicant. It was noted that the WC would remain available for the use of the general public and allotment holders and the opening hours would be determined by the café operator.

The Executive noted that the land was currently held by the Council under the Town & Country Planning Act 1990 as open space land and that it must be appropriated before it could be let to a third party.

Councillor Mrs Bramhall indicated that the improvements to the building and the enhancement of facilities at Tattenham Way recreation ground would be of significant value to local residents. It would also support the Council’s Corporate Plan policies for the reuse of underused facilities, bringing forward existing assets for redevelopment, producing a new income source, encouraging more use of recreation grounds and the growth of existing businesses to assist the economy.

Ward members from the area commented that there was more opposition to this proposal than had been reflected in the report, as had been evidenced in the recent planning application, which received a number of objections from the allotment holders who wished to retain 24 hour access to the toilet facility. There was also concern that the café would result in increased litter in the area and that consideration be given to managing this activity. It was noted that contingency plans were in place in the event that the current proposal was not successful.
 

RESOLVED that, with immediate effect, the building at the Tattenham Way recreation ground, held by the Borough Council for Planning Purposes (environmental improvement by retaining of open space), be appropriated to other Planning Purposes in accordance with appropriation of land under section 122 of the Local Government Act 1972 as shown (for identification purposes only) edged red on the plan attached to the report presented.

Reasons for decision:
The premises comprised an underused toilet block at Tattenham Way recreation ground that was proposed to be converted to a café with WC. This would provide an enhanced facility for the users of the recreation ground and an additional rental income stream for the Council.
The land was currently held by the Council under the Town & Country Planning Act 1990 as open space land and must be appropriated before it could be let to a third party.

Alternative options:
Do not appropriate the land for a new planning purpose.
 

None.

The Leader informed the Executive that the proposed Urgent Business (published as an Addendum for consideration in Part 2 of the agenda) in relation to the acquisition of a property investment had been withdrawn by the Chief Executive.

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 involved 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 outweighed the public interest in disclosing the information.
 

• (Attachment: 8)Item 13: Park Farm Deport - Part 2 Report (43K/bytes)

RESOLVED that the exempt information relating to the former Park Farm Depot be noted.

• (Attachment: 9)Item 14: Guest House Acquisition - Part 2 Report (43K/bytes)

RESOLVED that the exempt information relating to the acquisition of a Guest House to be converted to emergency accommodation be noted.

• (Attachment: 10)Item 15: Acquisition of Investment Opportunity - Part 2 Report (289K/bytes)

This item was withdrawn by the Chief Executive.