Agenda and minutes

To confirm the Minutes of the Meeting held on 10 January 2017 (to be laid on the table for half-an-hour prior to the meeting).

The Minutes of the Meeting held on 10 January 2017 were confirmed and signed as a correct record.

To receive from members, declarations of interest in relation to any items included on the agenda for this meeting, in accordance with the Waverley Code of Local Government Conduct.

Cllr Kevin Deanus declared an interest in Agenda Item 8 relating to the budget management report because there was a specific recommendation relating to expenditure for development in the village of Alfold.  There was no specific discussion relating to Alfold and therefore Cllr Deanus remained in the Chamber for this item.

Background Papers

Unless specified under an individual item, there are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to the reports in Part I of these minutes.

The report outlines the latest General Fund Budget position for 2017/18.  Members are reminded of the need to achieve savings throughout the four-year period covered by the Financial Strategy.  Information is provided on the details of the provisional Local Government Finance Settlement 2017/18 and the Council’s financial position following this.

The Joint Overview and Scrutiny Committee was requested, in the light of the significant budget shortfall, to consider the cost savings, income generation and growth proposals identified in this report and their observations are set out in the report, including any proposals on how Waverley’s Budget can be balanced in 2017/18.

Recommendation

It is recommended that the Executive, after considering comments from the Joint Overview and Scrutiny Committee, makes the following recommendations to Council, to:

1.         agree a £5 per band D equivalent increase for Waverley’s element of Council Tax for 2017/2018;

2.         implement the income and cost saving proposals as shown at Annexe 4, including any staffing changes;

3.         implement the growth proposals as shown at Annexe 4, including any staffing changes;

4.         approve the changes to Fees and Charges as shown at Annexe 5 and agree to delegate the setting of charges for the use of the new Memorial Hall to the Strategic Director of Operations in consultation with the Leader;

5.         request officers to progress the projects identified in paragraph 15 that will achieve cost savings and/or generate additional income;

6.         approve the General Fund Budget for 2017/18, as amended by the above changes;

7.         approve the updated Financial Strategy, as set out at Annexe 1;

8.         agree that the Executive carries out a review of the Medium Term Financial Strategy and General Fund Budget in the Spring/Summer 2017 and takes any appropriate action in the light of the position at that time;

9.         approve the 2017/18 General Fund Capital Programme and financing proposals totalling £3.3m, as shown at Annexe 7, and the bringing forward of £20,000 of the new building control system budget into 2016/17;

10.       suspend, in the light of the significant cut to Waverley’s New Homes Bonus,  the progression of all other major capital schemes that do not appear in the capital programme and that do not generate a positive revenue benefit, with this position being reviewed in the Spring/Summer 2017; and

11.       agree that the budgets for capital schemes marked with an asterisk on the schedules be approved, but spending on these projects to be subject to the agreement of the Director of Finance and Resources and Finance Portfolio Holder or the Executive, if appropriate.

The reports from the Executive in respect of the 2017/18 budget are set out at Agenda Item 8 to the Council agenda, incorporating:-

8a.       General Fund Budget Revenue and Capital – 2017/18

8b.       Housing Revenue Account Business Plan, Revenue Budget and Capital Programme 2017/18

8c.       Council Tax Setting 2017/18 and Pay Award.

These reports have been dealt with at Agenda Item 8 of the Council agenda.

The report sets out the proposed Treasury Management Framework for 2017/18, comprising:

·        revised Treasury Management Policy;

·        2017/18 Treasury Management Strategy;

·        2017/18 Investment Strategy; and

·        Prudential Indicators for 2017/18 to 2019/20

Recommendation

It is recommended that the Executive recommends to the Council that

1.         the proposed Treasury Management Framework for 2017/18 be approved; and

2.         the delegation for decisions to borrow to finance capital expenditure to the Executive be approved, as set out in paragraph 8 of the report.

134.1  Treasury management is the management of the Council’s investments and cash flows, its banking, money market and capital market transactions, the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks. The Treasury Management Framework for 2017/18 contains only minor changes to the existing framework.

134.2  For Waverley Borough Council, this means collecting around £130m per annum and managing a similar amount of revenue expenditure together with an average investment of around £65m each day invested in financial markets and, with the introduction of HRA Self-financing in 2012/13, it now also includes borrowing of £192m.

134.3  The latest revision to the Code by CIPFA in November 2011 incorporates the implications of the new HRA Self-Financing framework and tightens up on the requirements for the management of risk. These changes were incorporated in Waverley’s Policy and originally approved in February 2012.

134.4  The Code requires local authorities to maintain their Treasury Management Policy in accordance with the code, and any of its revisions, and with legislation. It also requires local authorities to determine their Treasury Management strategies and Investment strategies on an annual basis and their Prudential Indicators on an annual basis.  CIPFA has produced this Code and the accompanying guidance notes to help satisfy nine main purposes:

i.       To assist public service organisations in the development and maintenance of firm foundations and clear objectives for their treasury management activities, and thereby to add to their credibility in the public eye.

ii.      To emphasise the over-riding importance of effective risk management, as the foundation for treasury management in all public service bodies.

iii.    To provide transparency for treasury management decisions including the use of counterparties and financial instruments that individual public service organisations intend to use for the prudent management of their financial affairs.

iv.     To encourage the pursuit of value for money in treasury management, and to promote the reasoned use, development and appreciation of appropriate and practical measures of performance.

v.      To enable CIPFA members to fulfil their professional and contractual responsibilities to the organisations they serve and, in accordance with the members’ charter, “to maintain and develop the professional competence of both themselves and those they supervise”.

vi.     To help facilitate a standardisation and codification of treasury management policies and practices in the public services.

vii.    To assist those involved in the regulation and review of treasury management in the public services, particularly those charged with the audit of the same

viii.   To foster a continuing debate on the relevance and currency of the statutory and regulatory regimes under which treasury management in the various parts of the public services operates.

ix.     To further the understanding and confidence of, and to act as a reference work for, financial and other institutions whose businesses bring them into contact with the treasury management activities of public service organisations.

134.5  The key documents in line with the requirements of the Code are approved by Council annually as follows:

·               Treasury Management Policy  ...  view the full minutes text for item 134.

The report provides a review of the 2016/17 budget for the General Fund and the Housing Revenue Account against forecast to 31 March 2017, based on the latest information available. 

Recommendation

It is recommended that the Executive notes the report and

1.            approves the appointment of a temporary support for the Garden Waste team, and approves the carry forward of savings achieved in the 2016/17 financial year to fund the appointment in 2017/18, as set out in paragraph 4 (iii);

2.            approves the extension of the Emergency Planning and Projects Assistant post until 31March 2018, as set out in paragraph 4 (IV) from the General Fund forecast underspend;

3.            approves £10,000 from the projected underspend to bring forward the budget growth item to review the options for the future of the building control service as set out in paragraph 5;

4.            approves £50,000 of the underspend in 2016/17 to be transferred to an earmarked reserve for commercial property voids as set out in paragraph 12, subject to sufficient underspend being available at the year end;

5.            recommends to Council to approve the rescheduling of £1,000,000 for Wey Court into 2017/18, as set out in paragraph 22;

6.            recommends to Council to approve the rescheduling of £1,000,000 for Nursery Hill into 2017/18, as set out in paragraph 23;and

7.            recommends to Council to approve the rescheduling of £360,965 for Chilton Close, Alfold into 2017/18, as set out in paragraph 24.

135.1  The Executive considered and noted the report reviewing the 2016/17 budget for the General Fund and Housing Revenue Account against the forecast to 31 March 2017 and

RESOLVED  to approve

1.            the appointment of a temporary support for the Garden Waste team, and approved the carry forward of savings achieved in the 2016/17 financial year to fund the appointment in 2017/18, as set out in paragraph 4 (iii);

2.            the extension of the Emergency Planning and Projects Assistant post until 31March 2018, as set out in paragraph 4 (iv) from the General Fund forecast underspend;

3.            £10,000 from the projected underspend to bring forward the budget growth item to review the options for the future of the building control service as set out in paragraph 5; and

4.            £50,000 of the underspend in 2016/17 to be transferred to an earmarked reserve for commercial property voids as set out in paragraph 12, subject to sufficient underspend being available at the year end.

135.2  The New Build capital programme approved budget for 2016/17 is made up as follows:

135.3  Works at Wey Court are underway and progressing, however it is expected that a proportion of the project spend will be incurred in the next financial year. It is therefore requested that £1,000,000 is moved into 2017/18 to enable the completion of these works.

135.4  Due to a longer than expected tendering process for the Nursery Hill project, the works will not have progressed as far as estimated earlier in the year.  Therefore it is requested that £1,000,000 is rescheduled into 2017/18.

135.5  The Chilton Close, Alfold project is currently on hold. This is due to planning considerations and other site considerations. It is therefore requested that this budget of £360,695 is rescheduled into the next financial year.

135.6  The Executive therefore

RECOMMENDS that

113.    the rescheduling of £1,000,000 for Wey Court into 2017/18 be approved, as set out above;

114.    the rescheduling of £1,000,000 for Nursery Hill into 2017/18 be approved, as set out above; and

115.    the rescheduling of £360,965 for Chilton Close, Alfold into 2017/18 be approved, as set out above.

[Reason: to provide a review of the 2016/17 budget based on the latest information available]

The purpose of the report is to advise Members of the Annual Pay Policy Statement for 2017-18.

Recommendation

It is recommended that the Annual Pay Policy Statement for 2017-18 be approved and recommended to the Council for adoption.

136.1  The Localism Act 2011 requires all public authorities to publish Annual Pay Policy Statements.  The Council is required to adopt the Annual Pay Policy Statement each year and the Council is not legally permitted to depart from the policies set out in that statement when it considers actual decisions in relation to individuals’ remuneration, including redundancy and/or severance.

136.2  There have been no changes to the Annual Pay Policy for 2017-18, attached as Annexe 5.  The Executive now

            RECOMMENDS that

116.    the Annual Pay Policy Statement for 2017-18, as set out at Annexe 5, be approved.

[Reason: to approve the updated Annual Pay Policy Statement]

The report summarises the findings of the Strategic Review of Waverley Borough Council that was completed in December 2016 and the Council’s proposed action plan in response to it.  The consultants’ report and the Council’s proposed action plan are provided in full as Annexes 1 and 2 to the report. 

It is recommended that Members note and consider the findings and recommendations within the report provided by Cratus and, subject to any changes they wish to make, recommend the proposed action plan to the Council for approval. 

Recommendation

It is recommended that the Executive:

1.            note and consider the findings and recommended way forward within the Strategic Review report, attached as Annexe 1; and

2.            subject to any changes or amendments made by the Executive, recommend the proposed action plan attached as Annexe 2 to the Council for approval.

137.1  The way that local government is funded is changing and the Council recognises that it cannot continue to operate in the same way if services are to be protected.  The implications of reduced funding, coupled with the need to deliver high quality services, require the Council to think differently about how service delivery is sustained and supported so that it meets the needs of our communities.  It is also essential that the Council continues to remain positive and ambitious so it is able to plan for the future.

137.2  The Executive therefore agreed in November 2016 to fund a Strategic Review of Waverley Borough Council and, following a procurement exercise, Cratus Communications were appointed to undertake the review.  The review commenced on 21 November 2016 and concluded on 15 December 2016.  The work was neither an inspection nor a peer review of a council in difficulties but was rather a strategic review intended to be a catalyst for Waverley to develop a more ambitious strategic vision and improved ways of working.  These two areas of focus – ‘strategic vision’ and ‘how the council works’ – underpinned the structure and methodology of the consultants’ review, its findings and its recommendations for a way forward.

137.3  Waverley Borough Council’s current vision statement was agreed by the Council when the new Corporate Plan 2016-2019 was agreed in February 2016.  It is to ‘make Waverley a better place to live and Work’.  The plan agreed at that time included four corporate priorities: ‘Customer service’; ‘Community wellbeing’; ‘Environment’ and ‘Value for money’.  There was no formally agreed vision statement in the Council’s previous corporate plan.

137.4  There are numerous factors that have shaped and defined how Waverley currently works as an organisation.  However, in respect of the structure, culture and arrangements relating to the Council’s senior management team, the principal driver is the outcome of the 2013 senior management review. 

137.5  In December 2013, the Council agreed, in order to reduce its support costs, to make a number of changes to the staffing structures in respect of the Council’s senior management team.  The post of Chief Executive was deleted and the post of Deputy Chief Executive was redesignated as Executive Director (who would also fulfil the statutory function of Head of Paid Service).  It was agreed that the civic duties previously undertaken by the Chief Executive would be undertaken by the Mayor, other Council members and other officers as appropriate. 

137.6  The 2013 review aimed to respond to the need to make budget savings but also to respond to the wish articulated by elected members at that time to refocus management responsibility to a greater degree on operational service delivery, performance and customer service and to a lesser degree on strategy, partnership working and non-statutory activity.  A number of other changes were agreed in line with this, including the redesignation of the ‘Strategic Director’ as the ‘Director of Operations’ and the removal of two heads of service (with their functions being absorbed by the  ...  view the full minutes text for item 137.

The report recommends, in light of the findings and recommendations from the 2016 Strategic Review, that the planned review of the Council’s Constitution and Scheme of Delegation (action 1.2 of the draft 2017/18 Policy and Governance Service Plan) commences straight away. 

Accordingly, the report sets out a number of immediate recommendations for Council approval in respect of financial thresholds for virements and supplementary estimates and the need to gain Council approval for any change to the Council’s staffing establishment. 

Beyond this, the report sets out recommended principles for reviewing the Constitution and Scheme of Delegation in all other respects as well as a timetable for doing so.  Officers will undertake the initial review and make recommendations for change and options for consideration by the Constitution SIG in the first instance. 

Recommendation

It is recommended that the Executive:

1.            recommends to Council that paragraph 4.01(b) within part 1 of the Constitution be amended so that Council approval is only needed in respect of virements and supplementary estimates, no matter what they relate to, over £100,000 (meaning that the Executive will be able to approve these so long as they are £100,000 or less);

2.            recommends to Council that paragraph 1 of the Scheme of Delegation  and the relevant sections of Finance Regulations be updated to reflect these new Executive limits of £100,000 for virements and supplementary estimates;

3.            recommends to Council that paragraph 13.03(b)(i) within part 1 of the Constitution be amended to change the threshold for a key decision to £100,000;

4.            recommends to Council that paragraph 4.02(n) within part 1 and paragraph B.11 of part 3 of the Constitution be amended to state that it will be a function of the Council to approve ‘the addition or deletion of posts from the agreed permanent staffing levels where the costs of doing so do not fall within existing controllable expenditure budgets and where the changes have financial implications in excess of the Executive’s threshold of up to £100,000’; and 

5.            agrees, subject to any amendments they wish to make, the recommended principles and timetable for a wider review of the Council’s Constitution set out in sections 3 and 4 respectively. 

138.1  Like many local authorities, although Waverley has made incremental changes to the content and structure of its Constitution and Scheme of Delegation over time, it has not fundamentally reviewed either since the Local Government Act 2000 introduced Executive arrangements.

138.2  Officers advise that a fundamental review would be beneficial and for this reason the draft 2017/18 Policy and Governance Service Plan already includes a commitment to

‘Review and update the Council’s Constitution and Scheme of Delegation to promote and facilitate swifter and more responsive decision-making at Waverley, without compromising democratic integrity and accountability, transparency or risk management.’ (action 1.2)

138.3  The 2016 Strategic Review described the Council’s formal decision-making processes as ‘slow’ and ‘cumbersome’ and recommended that the scheme of delegation be ‘reviewed to improve speed of decision-making particularly on implementation matters where the substantive matter has already been approved and has the necessary budget provision.’

138.4  In light of this, it is recommended that the planned review of both the Constitution and the Scheme of Delegation begin earlier than planned.  Accordingly, this report sets out a number of recommendations for immediate change in respect of financial thresholds for virements and supplementary estimates and the need to gain Council approval for any change to the Council’s staffing establishment.  It also recommends a timetable for a more fundamental review and suggests what the principles of a more streamlined, flexible and simplified constitution and scheme of delegation should be. 

138.5  Some recommendations for immediate change (quick wins) are set out below:

            Financial thresholds

138.6  The Constitution currently reserves decisions relating to virements (transferring funds from one budget area to another) exceeding £50,000  and supplementary estimates (additional funds required within the financial year) exceeding £20,000 (or £50,000 if they relate to costs arising from either a civil emergency, a planning appeal or a planning enforcement action) for Council approval.  This means that the Executive may currently only approve requests for virements or supplementary estimates if they do not breach these thresholds. 

138.7  These thresholds are considered to be too low and, of course, inflation over time has and will continue to gradually increase the number of in-year budget matters that exceed them as the real value of money falls.  This has a tangible impact on the Council’s ability to progress vital day-to-day matters swiftly whilst Council approval is pending.  The sprit of a Strong Leader and Executive model of governance is that the day to day decision-making should be handled by the Executive.  Having too low a threshold for budget decisions potentially undermines this and also has the effect of inadvertently making items that should be subject to overview and scrutiny exempt from this.  It is not unusual for Council’s to have significantly higher thresholds for Executive approval.

138.8  It is therefore recommended that the thresholds are increased and in the interests of simplicity it is suggested that a new limit of £100,000 be applied in respect of virements and supplementary estimates regardless of why they arise.  The Local Government Act 2000  ...  view the full minutes text for item 138.

The report seeks approval for a proposed addition to the Scheme of Delegation for Housing, to enable legal action to be taken against perpetrators of social housing fraud and in accordance with the Prevention of Social Housing Fraud Act 2013. 

Recommendation

It is recommended that the Executive agrees the proposed changes set out in paragraph 5 and recommends to the Council that the Scheme of Delegation be amended accordingly.

139.1  The Prevention of Social Housing Fraud Act 2013 introduced a range of new powers for housing providers in addition to making it a criminal offence for tenants to sublet or part possession of their socially rented home.  The Act gives local authorities the power to prosecute for this new offence.  There is no obligation to bring criminal proceedings social housing landlords can decide the most appropriate way forward. 

139.2  The penalties for committing social housing fraud, if convicted, range from a £5,000 fine to up to two years imprisonment and a fine of £50,000.  The Corporate Overview and Scrutiny Housing Improvement Sub-Committee received a revised Tenancy Fraud Policy and cover report on 9 January 2017.  The Committee supported the Policy and requested the addition of a reference to data protection and expanded the awareness section.

139.3  It is proposed that the Scheme of Delegation be amended as follows to include this provision :

“152A             Authority to prosecute persons for offences under the Prevention of Social Housing Fraud Act 2013.

Borough Solicitor upon the recommendation of the Head of Housing Operations.”

and

“152B             Authority to seek restitutionary payments in accordance with the Proceeds of Crime Act 2002, and request data sharing with banks, utility, telecommunication companies and any other organisation that information may be required from to tackle and detect tenancy fraud in accordance with the Prevention of Social Housing Fraud Act 2013.

Head of Housing Operations after consultation with the Portfolio Holder for Housing."

139.4  The proposed changes to the Scheme of Delegation are intended to give the Housing Service the ability to seek, detect, tackle and deter social housing fraud in addition to holding fraudsters to account.  The Executive set out in paragraph 139.3 and

RECOMMENDS that

122.    the proposed changes set out in paragraph 139.3 be approved and the Scheme of Delegation be amended accordingly.

[Reason: to approve an addition to the Scheme of Delegation in accordance with legislation]

To consider the following recommendation on the motion of the Chairman:-

Recommendation

That, pursuant to Procedure Rule 20, and in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of the following item(s) on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items, there would be disclosure to them of exempt information (as defined by Section 100I of the Act) of the description specified at the meeting in the revised Part 1 of Schedule 12A to the Local Government Act 1972.

At 8.05 pm it was

RESOLVED    that, pursuant to Procedure Rule 20, and in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of the following item on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during this item, there would be disclosure to them of exempt information (as defined by Section 100I of the Act) of the description specified at the meeting in the revised Part 1 of Schedule 12A to the Local Government Act 1972:-

                                    Information relating to the financial or business affairs of any particular person (including the authority holding that information) (paragraph 3).

To consider the (Exempt) report, attached.

The Executive has considered a report on this matter, attached as (Exempt) Annexe 8 and

RECOMMENDS that

123.    the recommendations set out in (Exempt) Annexe 8 be approved.

[Reason: to deal with property matters in the Borough]

The background papers relating to the following items are as set out in the reports included in the original agenda papers.

To adopt the forward programme of decisions for Waverley Borough Council.

RESOLVED    that the Forward Programme be approved, subject to the addition of the Joint Enforcement Team (JET) project under the Community Safety portfolio.

The report presents the draft Service Plan objectives for Council’s services for 2017/18.

Recommendation

It is recommended that, taking into account any observations from the Joint O and S Committee, the Service Plan Objectives for 2017/18 be approved.

RESOLVED  that, having taken into account the observations from the Joint Overview and Scrutiny Committee, the Service Plan Objectives for 2017/18 be approved.

[Reason: to set out the strategic objectives for each service to deliver the Council’s corporate priorities]

The purpose of this report is to summarise progress with the development of the Cultural Strategy since the Community Overview & Scrutiny Committee and Executive in September 2016 and introduce the Cultural Strategy Action Plan 2017/18 for approval.

Recommendation

It is recommended that the priorities and goals as set out in the Cultural Strategy Action Plan be endorsed.

RESOLVED  that the priorities and goals as set out in the Cultural Strategy Action Plan be endorsed.

[Reason: to seek approval for the action plan priorities and goals]

Haslemere Bowling Club has approached the Council for consent to surrender their existing lease of the Pavillion land and to take a new long lease of both the Pavilion land and the Bowling Green itself.

Recommendation

It is recommended that approval be given to the surrender of the current lease to Haslemere Bowling Club and consent to the simultaneous grant of a new lease on the proposed terms.

[This item contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

            Information relating to the financial or business affairs of any particular person (including the authority holding that information)]

RESOLVED  that approval be given to the surrender of the current lease to Haslemere Bowling Club and consent given to the simultaneous grant of a new lease, on the proposed terms.

[Reason: to consider the property-related matter]

To consider the (Exempt) report, attached.

[This item contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

            Information relating to the financial or business affairs of any particular person (including the authority holding that information)]

RESOLVED that the recommendation set out in the (Exempt) Annexe to these minutes be approved.

To consider the (Exempt) report attached.

[This item contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

            Information relating to the financial or business affairs of any particular person (including the authority holding that information)]

RESOLVED that the recommendation set out in the (Exempt) Annexe to these  minutes be approved.

To consider the (Exempt) report, attached.

[This item contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 1 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

            Information relating to an individual.]

RESOLVED that the recommendation set out in the (Exempt) Annexe to these minutes be approved.