Agenda and minutes

To elect a Chair of the Committee for this Municipal Year 2023/4.

Councillor Essex nominated and Councillor Proudfoot seconded Councillor Booton as Chair of the Committee for the 2023/24 Municipal year.

Also, Councillor Hinton nominated and Councillor Buttironi seconded Councillor Harrison as Chair of the Committee for the 2023/24 Municipal Year.

Following a vote, it was RESOLVED that Councillor Harrison be elected Chair of the Overview and Scrutiny Committee for the 2023/24 Municipal Year.

To elect a Vice-Chair of the Committee for this Municipal Year 2023/24.

Councillor Blacker nominated and Councillor Sachdeva seconded Councillor Buttironi as Vice Chair of the Committee for the 2023/24 Municipal Year.

Also, Councillor Proudfoot nominated and Councillor Essex seconded Councillor Khan as Vice Chair of the Committee for the 2023/24 Municipal year.

Following a vote, it was RESOLVED that Councillor Buttironi be elected Vice Chair of the Overview and Scrutiny Committee for the 2023/24 Municipal Year.

To confirm as a correct record the Minutes of the previous meeting.

There had been some confusion over minute 73 Community Infrastructure Levy SIP2 Assessment Process. The minutes recorded that “Analysis of applicants’ detailed business plans was not part of the initial bid process; business plans and other matters such as legal requirements would be followed up and assessed as part of the ongoing monitoring of implementation.”

Clarification on this matter had been provided by the Principal Planning Officer:

One of the assessment criteria used in assessing all CIL bids was for organisations to have made an acceptable business case (as set out in Table 1 to the O&S Report): -

“Stage of project development within the bidding organisation; including feasibility and obtaining any internal authorisation needed.”

RESOLVED that with this clarification the minutes of the previous meeting held on 16 March 2023 be approved and signed.

To receive any apologies for absence and notification of any substitute Members in accordance with the Constitution.

Apologies were received from Councillor Ritter; Councillor Essex was substitute.

To receive any Declarations of Interest (including the existence and nature of any Party Whip).

There were no declarations of interest.

To consider progress in the Council’s performance for the fourth quarter 2022/23 including KPIs, and to make any observations to the Executive.

Overview and Scrutiny Committee to:

(i)            Note the Key Performance Indicators performance for Q4 2022/23 as detailed in the report and in Annex 1 and make any observations to the Executive;

(ii)          Note the Revenue budget outturn for 2022/23 and recommended budget-carry-forwards as detailed in the report and at Annex 2 and make any observations to the Executive;

(iii)         Note the Capital Programme outturn for 2022/23 as detailed in the report and at Annex 3 and make any observations to the Executive.

The Executive Member for Finance, Governance, and Organisation, Councillor Lewanski, presented the Quarter 4 Performance Report 2022/23 covering the period January to March 2023. The reports gave an overview of the Council’s performance for Quarter 4 2022/23, including Key Performance Indicator (KPI) reporting, as well as revenue and capital budget monitoring. The reports are due to be presented to Executive on 22 June.

Key Performance Indicators

Of the 11 KPIs reported on, 10 were on target or within the agreed tolerance. KPI 3 – Staff Turnover was off target and outside of its tolerance and therefore red rated. Although this performance indicator continues to remain outside of target and tolerance, there are no new causes of concern arising.

An advance question on this item had been submitted prior to the meeting. The advance question on KPI 8 Environmental Quality Surveys and its response can be viewed here:

Document Advance Questions and Answers OS 15 June 2023 | Reigate and Banstead Borough Council (moderngov.co.uk)

The Executive Member for Finance, Governance, and Organisation, Councillor Lewanski invited Members to ask questions on the Quarter 4 2022/23 Performance Report provided in the agenda pack. In response, the following clarifications were provided:

KPI 9 - Number of missed bins per 1,000 collected

There was very little public data made available by local authorities regarding reliability of their waste collection services so there is no data set to make a meaningful comparison. The Council’s target is set by the service at a level that is assumed to indicate a reliable service; for every 1,000 bins collected no more than 10 should be missed.

In-cab technology allows for data to be reported to the Council which is then analysed at service level. The in-cab technology also allows communication to cabs enabling missed bins to be reported and collected as soon as possible.

Members noted and commended the low rate of missed bin collections.

KPI 3 – Staff turnover

The Council’s staff turnover was compared to that of other local authorities, especially neighbouring authorities and at 19% was not an outlier. Private sector staff turnover is around 25%. Early assessment of Period 1 of 2023/24 also appears to be indicating a decrease in staff turnover. The employment market continues to be buoyant, and the Council conducts exit interviews. Staff turnover also provides an opportunity to attract new people, skills, and ideas.

Gaps left by employees leaving the Council may be filled by temporary resource, as well as being used to provide opportunities for current staff development; officers may be seconded from either within the team or elsewhere in the Council. The solution would depend upon the vacancy. A thorough vacancy approval process is in place as part of the Financial Sustainability Plan whereby all vacancies are scrutinised to determine whether they are needed, and at which level. Opportunities to share services with other local authorities, particularly in the east of the borough, were also identified. No significant impact on delivery of services has been experienced.

The number of  ...  view the full minutes text for item 6.

To consider and to provide feedback on the following which are to be finalised and submitted for approval by the Executive on 22 June 2023 and Council on 20 July 2023:

      i.        Treasury Management Strategy 2023/24;

    ii.        Investment Strategy 2023/24;

   iii.        Capital Strategy 2023/24.

The Executive Member for Finance, Governance, and Organisation, Councillor Lewanski, presented the Treasury Management strategy 2023/24.

The purpose of the strategy was to guide all treasury management activity for the coming year and comprises three sections.

Firstly, the Treasury Management Strategy Statement, which sets out details of the Council's traditional Treasury Management activities, covering topics such as sources of borrowing and investment counterparties and limits.

Secondly, the Investment Strategy which covered the Council's investments, including traditional Treasury Management investments, but also with increased coverage of the Council's other investments that have been made for service and other commercial reasons.

Thirdly, the Capital Strategy, which outlined the Council's capital expenditure plans and core borrowing and investing activities; this includes prudential indicators, that were required to be reported under CIPFA's Code of practice.

The report has been prepared against a backdrop of considerable change for local authority treasury activities, primarily in response to concerns about a small number of authorities that have borrowed significant amounts over recent years to invest in commercial assets; both the Government and CIPFA have made changes to the regulatory frameworks and guidance that govern how councils borrow and invest.

While these changes would not have significant impact on this Council's Treasury Management Plan, it did mean that some of the options that might have been considered going forward were no longer permitted.

An advance question on the investment managers used to hold funds received in advance of expenditure had been submitted prior to the meeting. The advance question and its response can be viewed here:

Document Advance Questions and Answers OS 15 June 2023 | Reigate and Banstead Borough Council (moderngov.co.uk)

The Executive Member for Finance, Governance, and Organisation, Councillor Lewanski invited Members to ask questions on the Treasury Management Strategy 2023/24 provided in the agenda pack. In response, the following clarifications were provided:

Treasury Management Investments

It was confirmed that the forecast fluctuation in balances between £10 million and £55 million during the 2023/24 financial year was largely due to the expectation of a £34 million capital receipt from the sale of the housing properties at The Rise, in addition to typical cash flow fluctuations within the year.

Service Investments: Loans

It was confirmed that the loss allowance reported at table 1 on page 94 was the IFRS9 impairment for credit loss and that losses are charged to the Commercial Risks Reserve. The loans were made by the Council to its own subsidiary, relating to specific assets held by the counterparty, backed by tangible fixed assets. Impairment allowances were not required for shareholdings.

Members asked for confirmation whether the Horley Business Park LLP loan was included in the tables. The Chief Finance Officer would provide a written response following the meeting.

Commercial Investments: Property

A Member pointed out that the property investments in Table 3 on page 96 showed that the current values were all less than the purchase cost of each asset. It was explained that the information was a snapshot at a point in  ...  view the full minutes text for item 7.

To consider the Revenues, Benefits & Fraud Service Provision report and to provide any observations to Executive on the plans for continued development of the Revenues, Benefits and Fraud service’s joint-working with other councils and external bodies, specifically with Tandridge District Council.

The Executive Member for Finance, Governance, and Organisation, Councillor Lewanski, presented the Revenues, Benefits & Fraud – Service Provision Report.

The report provides an overview and update of the Revenues, Benefits and Fraud service’s joint work with other local authorities and organisations and, in particular, future joint working with Tandridge District Council. Local authorities are allowed to trade with each other under section 113 of the Local Government Act 1972. Services may also be provided under section 93 of the Local
Government Act 2003, providing the services are on a cost recovery basis only. Therefore, if the Council is not making a profit, there is no requirement to set up a separate trading company,

This work for other local authorities started in 2015 and since then has developed and the service now provided services to 28 separate organisations including local authorities, housing providers, and private sector companies. In particular, the service's award-winning Counter-Fraud team now provided counter-fraud services for five other Surrey local authorities and carries out property inspections for local authorities across the country.

As well as generating additional income to cover the staff costs and overheads, these arrangements give the Council’s service areas added resilience, ensuring that capacity can be maintained to deliver high quality services, including collection and savings from fraud.

Information about the 2023/24 budget for Revenues, Benefits and Fraud was set out in the table at paragraph 26 of the report. It is noted there is provision to generate income of £600,000 within the overall service budget.

A further opportunity had now arisen to work more closely with Tandridge District Council around Revenues and Benefits. A Counter-Fraud service was already provided to Tandridge, and work has been carried out to identify the benefits of collaborating in more areas of work.

During 2022/23, external consultants were commissioned to review the options for future service provision of both councils. From this piece of work, four options were identified as being viable and these are set out at paragraph 10 of the report.

Of these four options, it was decided that the Centre of Excellence model would be more likely to provide the best outcome in terms of cost reduction, income generation potential, and enhanced resilience.

This approach was endorsed by the Tandridge Strategy and Resources Committee in March 2023 and it had been agreed that this report would also be submitted to the Reigate and Banstead Executive, to seek equivalent endorsement of the planned approach.

Members were assured that adoption of the Centre of Excellence model would be managed effectively so as not to disrupt current service activities. Both councils will be looking to share expertise and build resilience, while working towards offering a commercially attractive service with other local authorities.

The Executive Member for Finance, Governance, and Organisation, Councillor Lewanski invited Members to ask questions on the Revenues, Benefits & Fraud – Service Provision Report provided in the agenda pack. In response, the following clarifications were provided:

Creation of a Centre of Excellence

It was confirmed that the  ...  view the full minutes text for item 8.

To receive an introduction to the purpose of overview and scrutiny and the work of the Committee.

Committee Members received an introduction to the purpose of overview and scrutiny and the work of the Committee, and the use of the web library from the Chair, Councillor Harrison, and Democratic Services Officer, Marie Crabtree.

A virtual training session for Committee Members and substitutes run by the Centre for Governance and Scrutiny would take place on 17 July 2023.

Members requested guidance on accessing the extranet.

To consider and agree the schedule for Overview and Scrutiny Committee’s Forward Work Programme 2023/24 and to note the action tracker.

The Committee received the updated Overview & Scrutiny Forward Work Programme.

It was noted that there were five pending items on the work programme; these items could not be timetabled yet due to various pieces of work at differing stages of completion. Additional Overview & Scrutiny meetings may need to be scheduled to cover the full work programme.

It was noted that the Leisure and Culture Strategy part 2, when it was finalised, would also need to be added to the work programme.

It was suggested that speakers from outside organisations could be given guidance on the most appropriate information to present to the Committee.

RESOLVED – the Committee agreed the Overview and Scrutiny Committee’s Work Programme for 2023/24.

To consider any items arising from the Executive which might be subject to the ‘call-in’ procedure in accordance with the provisions of the Overview and Scrutiny Procedure Rules set out in the Constitution.

It was reported that there were no items arising from the Executive that might be subject to the ‘call-in’ procedure in accordance with the provisions of the Overview and Scrutiny Procedure Rules.

To consider any item(s) which, in the opinion of the Chairman, should be considered as a matter of urgency - Local Government Act 1972, Section 100B(4)(b).

(NOTE: Under the Committee and Sub-Committee Procedure Rules set out in the Constitution, items of urgent business must be submitted in writing but may be supplemented by an oral report.)

There were no items of urgent business.