Agenda and minutes

A member of the public referred to the National Pupil Database and raised concerns at the risk of security breaches and the types of information kept about pupils.  He asked what type of information was kept, who had access to it, how long this information was kept for, why reference was made to ethnicity etc. and whether the database covered those pupils going forward into higher and further education?

The Strategic Director of Children and Young People’s Services pointed out that access to this database was very limited, but would endeavour to find out further information and provide this in writing.

-        Strategic Director of Finance to report.

Councillor Wyatt, Cabinet Member for Resources, introduced a report by the Strategic Director of Finance, which provided details of progress on the delivery of the Revenue Budget for 2009/10 and covered the first ten months of the 2009/10 financial year. 

The report set out in some detail:-

·              The Overall Position.

·              The main areas contributing to this projected overspend position for each Directorate.

·              Other Issues.

Since the last report the following additional sources of income have been identified:-

·              VAT Refunds (-£1.119m).

·              Yorkshire Forward Income (-£0.500m).

·              Agency and Consultancy Savings.

·              Housing Revenue Account (HRA) (-£2.083m) .

The financial issues were set out in detail as part of the report.

Management actions have been put in place to address some of the issues identified to date and work was being undertaken to identify further actions. As these took effect they would be monitored to enable the impact of the actions to be assessed. Careful scrutiny of expenditure and income across all services and close budget monitoring, therefore, remained essential. 

Resolved:-  (1)  That the contents of the report be noted.

(2)  That any actions requiring further intervention be taken by Directorates before the end of the financial year, with a view to minimising overspends.

(3)  That the progress made to date in reducing the pressures on the Council’s Revenue Budget be noted.

-        Strategic Director of Finance to report.

The Leader introduced a report by the Strategic Director of Finance, which provided details of:-

·              The progress of the Budget process since December 2009, (including confirmation of the Government Grant Settlement).

·              The Council’s recommended Revenue Budget for 2010/11.

·              Spending plans for Directorates.

·              The assumptions reflected in the Budget and spending plans.

·              Precepts and levies made on the Council by other authorities.

·              Proposed Council Tax levels for the coming financial year.

·              Proposed future developments in the 3 year Medium Term Financial Strategy (MTFS) 2010/11 to 2012/13. 

As required by legislation, the report also contained the Strategic Director of Finance’s assessment of the robustness of the estimates included within the Budget and the adequacy of the reserves for which the Budget provided.

The proposals for the 2010/11 Budget and Council Tax contained within this report were put forward having regard to several factors.  These were:-

·              That the assumptions about the level of resources and reserves available to support the 2010/11 Revenue Budget were sound. The multi-year Grant Settlement again allowed a greater degree of certainty in preparing resource projections for 2010/11 and a prudent use of available reserves had been assumed, which meant that the resource projections were robust.

·              That the service plans upon which the Budget was predicated would be actioned by Elected Members and officers, as appropriate, and that this would be done having full and proper regard for the Council’s financial position. The prospects for this were good.

·              That through the Value for Money Review process and other scrutiny and strategic planning processes the Council would ensure the sustainability of its annual Budget and other financial plans. Again the prospects were good.

The report also recommended:-

·              A Council Tax increase of 2.7% (from £1,197.64 to £1,230.03 at Band D), which would necessitate the use of £1.3m from the estimated Collection Fund surplus.

·              A General Fund Revenue Budget for Rotherham Council in 2010/11 of £216,985,000.

·              The establishment of a £0.650m Contingency Fund to address potential Budget and service pressures and to mitigate any risks associated with the assumptions underlying the Budget, for example on pay and price increases.  For information,  the following general assumptions with respect to inflation have been provided for within the Budget:-

·              A nil% increase in pay, although actual pay increases were still subject to negotiation.  The employers’ organisation had recently indicated that no pay award would be offered for 2010/11.

·              A general inflation rate of 0%, and where known in relation to specific items of expenditure, a specific provision for inflation if significantly different. 

Should the inflation rate vary from these assumptions, a call on the Contingency Fund may be considered, but in the first instance, in line with Council policy, it was expected that all such pressures would be contained within Directorate Cash Limit budgets. 

The Chief Financial Officer of an Authority (in Rotherham Council’s case the Strategic Director of Finance) was required by Section 25 of the Local Government Act 2003 to report to the Authority when it was making the statutory calculations required  ...  view the full minutes text for item 190.

-        Strategic Director of Finance to report.

Councillor Wyatt, Cabinet Member for Resources, introduced a report by the Strategic Director of Finance, which provided details of the capital programme recommended for approval for the financial years 2010/11 to 2012/13.

The report reiterated the ongoing impact on the Council of the current economic down turn, which had led to reductions in the level of capital receipts estimated as being available to fund the capital programme.  The reduction of receipts available had significant implications for the resources available to fund the Council’s capital programme for both 2009/10 and in future years. 

The report set out in specific detail information relating to:-

·              Background - The Capital Programme.

·              Children and Young People’s Services Capital Programme 2010/11 to 2012/13.

·              Environment and Development Services (EDS) including Culture and Leisure Capital Programme 2010/11 to 2012/13.

·              Neighbourhoods and Adults Services Capital Programme 2010/11 to 2012/13.

·              Financial Services Capital Programme 2010/11 to 2012/13.

·              Funding of the Programme.

·              Funding Sources.

·              Grants and Contributions.

·              Supported Borrowing.

·              Unsupported (Prudential) Borrowing.

·              Capital Receipts.

·              General Fund.

·              Housing Revenue Account.

·              Major Repairs Allowance (MRA).

·              Revenue Contributions.

The capital programme was funded through a number of sources; borrowing, both supported and unsupported (i.e. prudential borrowing), capital grants/contributions, major repairs allowance, revenue contributions and capital receipts.  Any uncertainty over the funding of the programme rested on confirmation that grants/contributions and capital receipts continued to be available in coming years.  The specific nature of these risks was outlined in greater detail. Where funding sources were volatile in nature the risks would be managed by reviewing and where necessary amending the programme.

Recommended:-  That the 2010/11 TO 2012/13 Capital Programme be approved.

-        Strategic Director of Finance to report.

Councillor Wyatt, Cabinet Member for Resources, introduced a report by the Strategic Director of Finance, which detailed how, in accordance with the Prudential Code for Capital Finance, the Secretary of State’s Guidance on Local Government Investments, the CIPFA Code of Practice for Treasury Management in Local Authorities and with Council policy, the Strategic Director of Finance was required, prior to the commencement of each financial year to seek the approval of the Council to the following:-

·              The Prudential Indicators and Limits for 2010/11 to 2012/13.

·              A Minimum Revenue Provision (MRP) Statement which sets out the Council’s policy on MRP.

·              An Annual Treasury Strategy in accordance with the CIPFA Code of Practice on Treasury Management including the Authorised Limit.

·              An Annual Investment Strategy in accordance with the CLG investment guidance.

The report set out in-depth information relating to the background thus requiring changes to the Capital Finance system, the reason for a review of the currently approved Investment Strategy, the Council’s Counterparty List for investments, the Prudential Indicators, Minimum Revenue Provision Policy and the Revisions to the Council’s Constitution.

Treasury Management formed an integral part of the Council’s overall financial arrangements.

The assumptions supporting the capital financing budget for 2010/11 and for the future years covered by the MTFS of the Council have been reviewed in light of the current economic and financial conditions and the revised future years’ capital programme.

The proposed Treasury Management and Investment Strategy was not forecasted to have any further revenue consequences than those identified and planned for in both the Council’s 2010/11 Revenue Budget and approved MTFS.

The proposed Treasury Management and Investment Strategy sought to minimise the risks inherent in operating a Treasury Management function during these volatile economic and financial conditions.

Operational Treasury Management guidelines would continue to be kept in place and reviewed to ensure they were appropriate given the circumstances faced, supported by regular monitoring to ensure that any risks and uncertainties were addressed at an early stage and hence kept to a minimum.

Recommended:-  (1)  That the prudential indicators and limits for 2010/11 to 2012/13 contained in Appendix A to the report be approved.

(2)  That the Minimum Revenue Provision Statement contained in Appendix A which sets out the Council’s policy on MRP be approved.

(3)  That the Treasury Management Strategy for 2010/11 to 2012/13 and the Authorised Limit Prudential Indicator (Appendix B) be approved.

(4)  That the Investment Strategy for 2010/11 to 2012/13 (Appendix B and Annex B1) be approved.

(5)  That the revision to the Council’s Constitution at Annex B3 which seeks to nominate the Audit Committee as the responsible body for the Council on scrutinising the Treasury Management Strategy and policies be approved.

-        Chief Executive to report.

Councillor Hussain, Cabinet Member for Community Development Engagement, introduced a report by the Chief Executive which detailed Sections 10 to 22 of the Local Democracy, Economic Development and Construction Act, 2009 (c. 20) providing a statutory duty for principal local authorities to handle and respond to petitions. This included making provision for the submission of e-petitions and adopting a “scheme for handling petitions”. The Act provided that the Secretary of State may issue statutory guidance, may provide a model scheme and may make an Order setting out requirements and exclusions.

Ahead of commencing the new duty, the Government was now consulting on a draft guidance paper including a model scheme and draft Order. This report gave an overview of the consultation and provided for the Council to make a response.

The proposals set out that the Council would have flexibility to determine the details of the scheme and the Council may also include other information in the scheme including how petitions would be handled which did not qualify for consideration under the scheme.

The report set out further information relating to:-

·              E-Petitions.

·              Responding to Petitions.

·              Petition Debates.

·              Petitions calling officers to account.

·              Petition Reviews.

Direct financial implications were likely to arise from the introduction of the e-petitioning facility. Work was currently underway to assess the software requirements including gaining experience from authorities where e-petitioning had been piloted.

There were currently no commencement dates for the duty, with the Government stating that this would be addressed following the consultation.

The key risk was the unknown additional demand that may be brought about by the duty. Implications were likely to include:-

·              Administration of the e-petitions facility.

·              Time spent responding to an increased number of petitions.

·              Facilitating the work of scrutiny in dealing with referrals; taking evidence from senior officers and making reports.

Cabinet Members took account of the comments made at the meeting of the Performance and Scrutiny Overview Committee held on 19th February, 2010 in relation to clarification of Question 9 as part of the suggested responses to the consultation and were in agreement that the response set out more clearly matters relating to petitions regarding Planning and Licensing applications which were received once a decision had been made and for this wording to be agreed by the Chief Executive and the Cabinet Member for Community Development and Engagement.

Resolved:-  (1)  That the suggested responses to the consultation included in the report, together with comments received from the Performance and Overview Scrutiny Committee regarding Question 9, form part of the response to Government.

(2)  That the Council and local partners consider how the requirements of the duty could be incorporated into the CCI Framework and align with “Calls for action”.

(3)  That a further report be submitted to the Cabinet when final details of the “Model Petition Scheme” were available and commencement dates known.

-        Strategic Director of Neighbourhoods and Adult Services to report.

Councillor Akhtar, Cabinet Member for Housing and Neighbourhoods, introduced a report by the Strategic Director of Neighbourhoods and Adult Services, which provided an update on the proposals from the Wentworth South Area Assembly Co-ordinating Group for projects identified to be funded through Local Authority Business Growth Incentive (LABGI) within the 09/10 financial year.

These proposals were approved on 15th February, 2010 by the Cabinet Member for Housing and Neighbourhoods for recommendation to Cabinet on 24th February, 2010.

These proposals supported the corporate objective of devolved decision-making in the borough through Area Assemblies and the delivery of local projects and actions which met Corporate Objectives and community priorities as identified in the Area Plans of the Area Assemblies. 

In 2009 the Wentworth South Area Assembly Co-ordinating Group agreed several projects which have either not been able to commence for various reasons or have had to be re profiled.

In order to ensure that the LABGI funding was spent within the timescales and had the desired impact on the local area the Wentworth South Co-ordinating Group have met to consider a series of new project proposals and these were set out as an appendix to the report.

Because of timescales and the fact that LABGI funding ceased in 2010 the project proposals have not been through any element of public voting. The approval of the new projects would use all the under spend meaning that all the LABGI funding for Wentworth South has been allocated.

Local Authority Business Growth Incentive (LABGI) awarded over two years 2008/09 and 2009/10.  Each Area Assembly was allocated £100,000 to be spent approximately £35,000 in 2008/09 and £65,000 in 2009/10. 

Risks around the timescales and delivery of projects have been managed and through auditing and monitoring of the Area Assemblies Devolved Budget have resulted in the withdrawal of the funding for the projects identified and the subsequent replacement projects. If the project proposals were not approved then this may result in the LABGI funding being underutilised.

Resolved:-  That the project proposals to be funded from Local Authority Business Growth Incentive be approved.

-        Strategic Director of Environment and Development Services to report.

Councillor Smith, Cabinet Member for Economic Development, Planning and Transportation, introduced a report by the Strategic Director of Environment and Development Services, which detailed a request for Members to note and approve the proposals to establish an Investment Board, which would be tasked with establishing an inclusive, Rotherham wide, strategic approach for the development of the place experience and reputation of Rotherham in order to improve its economic competitiveness and attractiveness for business and investment.

The Rotherham Investment Board was to be a sub-board of the Partnership’s Achieving Spoke. It was proposed that the Board would have a remit to deliver actions that addressed the need identified in the Economic Plan to improve the image and identity of Rotherham, including creating a sense of place for Rotherham and building pride in the community.

This would be achieved by capturing the commitment of existing investors in the borough with a direct interest in supporting the borough’s regeneration with specific aims and responsibilities.

The Board would directly control a budget drawn from contributions made by the private sector members and matched by the Council. Funding for the Council’s contribution had already been agreed from the Local Authority Business Growth Incentive (LABGI) to a maximum of £120,000.  An initial approach would be made to Yorkshire Forward seeking funding for feasibility work.

Findings and recommendations from the Board may have financial implications in implementation. Until the Board began to operate it was not possible to quantify what the recommendations would be and consequently the financial implications of those recommendations. Part of the Board’s role would be to identify partnerships and opportunities that could maximise resources to deliver what was needed.

The risks and uncertainties associated with the establishment of this Board were set out in detail as part of this report.

Cabinet Members expressed concern at the accountability and reporting lines of this Investment Board and asked that further information be provided on this in relation to the work of the Local Strategic Partnership.

Resolved:-  That this report be deferred pending further information on the accountability and reporting lines in relation to the work of the Local Strategic Partnership.

-        Strategic Director of Environment and Development Services to report.

Councillor Smith, Cabinet Member for Economic Development, Planning and Transportation introduced a report by the Strategic Director of Environment and Development Services which sought approval to appropriate land at Barbers Avenue from the Department of Culture and Leisure to the Department of Asset Management.

This report dealt with the formal appropriation required in accordance with Item 76, Appendix C of the Council’s Financial Regulations.

It was noted that the Cabinet resolved on 21st October, 2009 to progress with the provision of a customer service centre on this site and allocate funds from the capital programme to enable its development with Council partners.

This asset had now been declared surplus to requirements and an appropriation from the Department of Culture and Leisure to the Department of Asset Management needed to take place to comply with the Council’s financial regulations.

The land to be appropriated had a value of £650,000 and there were no risks associated with an appropriation.

It was suggested that an appropriate press statement be released now it was confirmed that the Joint Service Centre was to be housed in this location.

Resolved:-  (1)  That an appropriation of the former Rawmarsh Leisure Centre from the Department of Culture and Leisure to the Department of Asset Management at a value of £650,000 is approved.

(2)  That the Assistant Chief Executive, Legal and Democratic Services complete the necessary documentation.

(3)  That the Director of Central Finance amend the Council’s financial records.

The following items are likely to be considered in the absence of the press and public as being exempt under Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (as amended March 2006) (information relating to the financial or business affairs of any particular individual (including the Council)):-

Resolved, that under Section 100A(4) 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 defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act (information relates to finance and business matters).

-        Strategic Director of Environment and Development Services to report.

Councillor Smith, Cabinet Member for Economic Development, Planning and Transportation introduced a report by the Strategic Director of Environment and Development Services which identified potential freehold commercial ground rents to support the Capital Programme.

The legal and financial information and risks and uncertainties associated with this update were set out in detail as part of the report.

Resolved:-  (1)  That the disposal of Ground Rents 1 and 2 and the retention of Ground Rents 3 and 4 be approved.

(2)  That the Director of Asset Management advertise the assets for sale at auction on the basis set out in this report

(3)  That the Assistant Chief Executive of Legal and Democratic Services complete the necessary documentation.

-        Strategic Director of Environment and Development Services to report.

Councillor Smith, Cabinet Member for Economic Development, Planning and Transportation introduced a report by the Strategic Director of Environment and Development Services which sought Cabinet approval to acquire the remaining part of the Guest and Chrimes site from the owner/developer Evans of Leeds and to authorise Officers to negotiate the detailed terms.

The legal and financial information and risks and uncertainties associated with the acquisition were set out in detail as part of the report.

Cabinet Members took account of all the risks identified in the risk analysis and were happy that these would form part of the negotiations on the final terms of the agreement.

Resolved:-  (1)  That the principle of the Council purchasing the site for Regeneration purposes including the construction of a new Community Stadium by Rotherham United Football Club be approved.

(2)  That officers be authorised to negotiate final detailed terms with the vendor based on the principles detailed in this report.

(3)  That Officers be authorised to negotiate detailed terms with Rotherham United Football Club for the grant of a long leasehold interest in the site to include the construction and occupation of a Community Stadium as detailed in this report.

(4)  That Officers be authorised to instruct solicitors to review and advise on any draft proposals submitted by the other parties.

(5)  That a further detailed report be submitted to Cabinet for approval once the final terms have been negotiated with the other parties.

(Councillor Sharman declared a prejudicial interest in this item on the grounds of being a Season Ticket Holder of Rotherham United Football Club and left the meeting whilst the item was discussed)

-        Strategic Director of Environment and Development Services to report.

Councillor Smith, Cabinet Member for Economic Development, Planning and Transportation introduced a report by the Strategic Director of Environment and Development Services which provided an update on:-

·              Project background, progress and options.

·              The current capital position.

·              The current revenue position for the Hellaby Depot site.

·              A comparison of 2008/09 revenue costs for Greasbrough, Bramley and Hope Street against forecasted costs for Hellaby.

·              Potential revenue savings.

The legal and financial information and risks and uncertainties associated with this update were set out in detail as part of the report.

Resolved:-  (1)  That the business case to fully develop the depot facility at Hellaby, be approved and that construction works now proceed.

(2)  That the Cabinet Member for Economic Development, Planning and Transportation use delegated powers to sign the Tender Report, once available.