Agenda for Executive on Wednesday, 22 January 2020, 2.00pm

Agenda and decisions

Venue: Shimkent Room, Daneshill House, Danestrete

Contact: Ian Gourlay (01438) 242703  Email: ian.gourlay@stevenage.gov.uk

Items
No. Item

1.

APOLOGIES FOR ABSENCE AND DECLARATIONS OF INTEREST

Decision:

Apologies for absence were received from Councillor Rob Broom.

 

There were no declarations of interest.

2.

MINUTES - 16 DECEMBER 2019 pdf icon PDF 143 KB

To approve as a correct record the Minutes of the meeting of the Executive held on 16 December 2019 for signature by the Chair.

Decision:

It was RESOLVED that the Minutes of the meeting of the Executive held on 16 December 2019 be approved as a correct record for signature by the Chair.

3.

MINUTES OF THE OVERVIEW & SCRUTINY COMMITTEE AND SELECT COMMITTEES pdf icon PDF 90 KB

To note the following Minutes of meetings of the Overview and Scrutiny Committee and Select Committees –

 

Overview & Scrutiny Committee – 18 December 2019

Decision:

The Leader asked Officers to put on hold any future All-Member Seminar on Community Wealth Building, pending the outcome of the Main Debate on this matter at the Council meeting on 29 January 2020.

 

In respect of the level of charges in the Community Infrastructure Levy (CIL) Charging Schedule, the Leader commented that it would be possible to review the level of charges in 12 months’ time.

 

It was RESOLVED that the Minutes of the meeting of the Overview & Scrutiny Committee held on 18 December 2019 be noted.

4.

FINAL HOUSING REVENUE ACCOUNT (HRA) AND RENT SETTING REPORT 2020/21 pdf icon PDF 769 KB

To consider a report for recommendation to Council concerning the 2020/21 Housing Revenue Account and Budget.

Additional documents:

Decision:

The Assistant Director (Housing and Investment) was requested to submit a report to the Executive in the Autumn of 2020 in respect of the outcome of Housing Service Charges Review to be conducted in the Summer, prior to the charges being built into the 2021/22 Housing Revenue Account Budget.

 

The Executive noted that the discount level for Right to Buy properties had virtually doubled over the past few years, thereby increasing the difficulty for Local Authorities to build new properties funded from capital receipts.

 

The Executive supported an additional recommendation requesting officers to write to the Secretary of State (MHCLG) to request that new build right to buy receipts that are projected to be returned in the last quarter of 2019/20 (estimated at £790,000) are not returned to the Government, but used to increase funding for the Council’s ambitious house building programme, such as Kenilworth or other pipeline programmes.

 

It was RESOLVED:

 

1.         That HRA dwellings be increased, week commencing 1 April 2020, by 2.7% an average increase of £2.56 for social rents £4.17 for affordable rents and £3.16 for Low Start Shared Ownership homes per week. This has been calculated using the rent formula, CPI +1% in line with the Government’s rent policy as set out in Paragraph 4.1.1. of the report.

 

2.         That the rent policy update to reflect the rent increase guidance of CPI+1%, (revised from a minus 1% rent reduction excluding LSSO properties) agreed at the December 2020 Executive, be confirmed.

 

3.         That Council be recommended to approve the 2020/21 HRA budget, as set out in Appendix A to the report.

 

4.         That the revised 2019/20 HRA budget, as set out in Appendix A to the report, be approved.

 

5.         That Council be recommended to approve the HRA Fees and Charges, as outlined in Appendix C to the report.

 

6.         That Council be recommended to approve the 2020/21 service charges.

 

7.         That Council be recommended to approve the minimum level of reserves for 2020/21, as shown in Appendix E to the report.

 

8.         That the contingency sum of £250,000 within which the Executive can approve supplementary estimates, be approved for 2020/21 (unchanged from 2019/20).

 

9.         That Council be requested to note the comments from the Overview and Scrutiny Committee, as set out in the report.

 

10.      That officers write to the Secretary of State (MHCLG) to request that new build right to buy receipts that are projected to be returned in the last quarter of 2019/20 (estimated at £790,000) are not returned to the Government, but used to increase funding for the Council’s ambitious house building programme, such as Kenilworth or other pipeline programmes.

 

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

5.

DRAFT GENERAL FUND AND COUNCIL TAX SETTING 2020/21 pdf icon PDF 745 KB

To consider the Draft General Fund and Council Tax Setting for 2020/21.

 

Additional documents:

Decision:

It was noted that Paragraph 5.5.1 would be amended in the final General Fund report to refer to the Council’s resolution to work towards a target of achieving next zero emissions by 2030 (as opposed to 2050 quoted in the report).

 

The Leader commended officers for the inclusion of Appendix B to the report, which set out the potential General Fund risk areas.  In this regard, she asked officers to arrange an All-Member seminar on Financial Risks, to ensure that Members were fully aware of the challenging General Fund position going forward.

 

It was agreed that Executive and Overview & Scrutiny Committee Members be requested to retain their copies of the appendices to the report for their meetings on 12 February 2012 and 17 February 2012, respectively.

 

The Executive agreed to an additional recommendation amending growth options G20 and G21 relating to the cost of managing the allotments for one year only (£22,000 full year cost) and implementing increased allotment charges from 1 October 2020 and not 1 April 2021, as included in the report.

 

It was RESOLVED:

 

1.         That the 2019/20 revised net expenditure on the General Fund of £9,664,250 be approved.

 

2.         That a draft General Fund Budget for 2020/21 of £9,136,430 be proposed for consultation purposes, with a contribution from balances of £150,401 and a Band D Council Tax of £215.57 (assuming a 2.37% increase).

 

3.         That the updated position on the General Fund Medium Term Financial Strategy (MTFS), as shown at Appendix A to the report, and the Risk Assessments of General Fund Balances, as shown at Appendix B to the report, be approved.

 

4.         That a minimum level of General Fund reserves of £2,920,935, in line with the 2020/21 risk assessment of balances, as shown at Appendix B to the report, be approved.

 

5.         That the contingency sum of £400,000 within which the Executive can approve supplementary estimates, be approved for 2020/21 (unchanged from 2019/20).

 

6.         That the 2020/21 proposed Fees and Charges increase of £117,490 (Appendix D to the report) be noted and included in the draft budget.

 

7.         That the 2020/21 proposed Financial Security Options of £864,644 (Appendix C to the report and including fees and charges detailed in Appendix D) be included in the draft budget for consideration by the Overview & Scrutiny Committee.

 

8.         That the approval of the level of business rates (NNDR1) for 2020/21 be delegated to the Assistant Director (Finance and Estates), following consultation with the Resources Portfolio Holder (Paragraph 4.6.8 of the report refers).

 

9.         That 2020/21 business rate gains totalling £1.105Million above the baseline need be allocated, as set out in Paragraph 4.6.7 of the report.

 

10.      That the 2020/21 Council Tax Support scheme be approved, as set out in Section 4.8 to the report.

 

11.      That New Homes Bonus of £30,000 be transferred to the reserve to fund future potential shortfalls in funding (Paragraph 4.4.4 of the report refers).

 

12.      That the revised Financial Security targets for the General Fund, as set out in Paragraphs 4.11.1  ...  view the full decision text for item 5.

6.

DRAFT CAPITAL STRATEGY 2019/20 - 2024/25 pdf icon PDF 1 MB

To consider a report that includes proposals for revisions to the 2019/20 General Fund and Housing Revenue Account Capital Programme and the draft Capital Programme for 2020/21 onwards for consideration by the Overview & Scrutiny Committee.

Additional documents:

Decision:

The Executive accepted the reasons why capital bid C59 (Improving the environmental credentials of the build at the Kenilworth Close scheme) had not been recommended for inclusion the Capital Strategy for 2020/21.  However, the Leader requested that, should there be a financial overachievement of land and asset sales during the year, then priority should be given to some of this income being earmarked for improvement of the environmental credentials of the build at the Kenilworth Close scheme.

 

It was RESOLVED:

 

1.         That the draft 2020/21 General Fund Capital Programme, as detailed in Appendix C to the report, be approved for consideration by the Overview and Scrutiny Committee.

 

2.         That the draft 2020/21 HRA Capital Programme, as detailed in Appendix D to the report, be approved for consideration by the Overview and Scrutiny Committee.

 

3.         That the updated forecast of resources, as summarised in Appendix C (General Fund) and Appendix D (HRA) to the report, be approved.

 

4.         That the Council’s investment strategy for non-treasury assets (Section 3.2 of the report) be approved for consideration by the Overview and Scrutiny Committee.

 

5.         That the approach to resourcing the General Fund Capital Programme, as outlined in the report, be approved.

 

6.         That the actions required to ensure the General Fund programme is funded, as outlined in Paragraphs 4.9.5 - 4.9.8 of the report, be noted.

 

7.         That the approach and progress on Locality Reviews be noted.

 

8.         That the growth bids identified for inclusion in the Capital Strategy (Appendix A to the report) be approved.

 

9.         That the return of Right to Buy one for one receipts, as outlined in Section 4.14 of the report, be noted.

 

10.      That the 2020/21 de-minimis expenditure limit (Section 4.15 of the report) be approved for consideration by the Overview and Scrutiny Committee.

 

11.      That the 2020/21 contingency allowance (Section 4.16 of the report) be approved for consideration by the Overview and Scrutiny Committee.

 

12.      That the work undertaken by Leader’s Financial Security Group (LFSG) on behalf of the Executive in reviewing and challenging the General Fund Capital Strategy be noted.

 

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

7.

URGENT PART I BUSINESS

To consider any Part I business accepted by the Chair as urgent.

Decision:

None.

8.

EXCLUSION OF PRESS AND PUBLIC

To consider the following motions –

 

1.         That under Section 100(A) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as described in paragraphs1 – 7 of Part 1 of Schedule 12A of the Act as amended by Local Government (Access to Information) (Variation) Order 2006.

 

2.         That Members consider the reasons for the following reports being in Part II and determine whether or not maintaining the exemption from disclosure of the information contained therein outweighs the public interest in disclosure.

Decision:

It was RESOLVED:

 

1.         That, under Section 100(A) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as described in Paragraphs 1 to 7 of Schedule 12A of the Act, as amended by SI 2006 No. 88.

 

2.         That, having considered the reasons for the following items being in Part II, it be determined that maintaining the exemption from disclosure of the information contained therein outweighed the public interest in disclosure.

9.

APPOINTMENT OF A DEVELOPMENT PARTNER AT KENILWORTH CLOSE

To seek approval for the appointment of a development partner at the development site of Kenilworth Close, also known as the Kenilworth Close Scheme; and to seek permission for the necessary capital budget adjustments following the return of the tender documents from suppliers.

Decision:

It was RESOLVED that the recommendations contained in the report be approved.

 

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

10.

URGENT PART II BUSINESS

To consider any Part II business accepted by the Chair as urgent.

Decision:

None.