Agenda, decisions and minutes

At this point, Members are asked to declare:

·        any personal interests not included on the Register of Interests

·        any prejudicial interests or

·        any disclosable pecuniary interests

which they may have in respect of business on this agenda.

Members were asked to declare, at this point in the meeting, any personal interests, not included on the Register of Interests, or any prejudicial or disclosable pecuniary interests they may have in respect of business on the agenda. No additional interests were declared.

To approve and sign the minutes of the last Executive meeting held on 28 January 2016.

Resolved:  That the minutes of the last meeting of the Executive held on 28 January 2016 be approved and signed by the Chair as a correct record.

At this point in the meeting members of the public who have registered to speak can do so.  The deadline for registering is 5.00pm on Wednesday 10 February 2016.  Members of the public can speak on agenda items or matters within the remit of the committee.

To register to speak please contact the Democracy Officer for the meeting, on the details at the foot of the agenda.

Filming, Recording or Webcasting Meetings

“Please note this meeting will be filmed and webcast and that includes any registered public speakers, who have given their permission.  This broadcast can be viewed at http://www.york.gov.uk/webcasts.

Residents are welcome to photograph, film or record Councillors and Officers at all meetings open to the press and public. This includes the use of social media reporting, i.e. tweeting.  Anyone wishing to film, record or take photos at any public meeting should contact the Democracy Officer (whose contact details are at the foot of this agenda) in advance of the meeting.

The Council’s protocol on Webcasting, Filming & Recording of Meetings ensures that these practices are carried out in a manner both respectful to the conduct of the meeting and all those present.  It can be viewed at http://www.york.gov.uk/downloads/file/6453/protocol_for_webcasting_filming_and_recording_of_council_meetingspdf

It was reported that there had been seven registrations to speak at the meeting under the Council’s Public Participation Scheme, and that three Members of Council had requested to speak on the following items:

Forward Plan

Andrea Dudding representing Unison referred to the proposed operating model for the prevention and early intervention services, listed on the forward plan for the 17 March Executive meeting and confirmed their reassurance regarding consultation on this issue. 

Additional Primary School Places for Southbank

Richard Ludlow spoke as the Chief Executive Officer of the Ebor Academy Trust in relation to their proposals for a Creative Arts Academy for primary education on the former Tadcaster Road Park and Ride site.

Hudda Morgan spoke as the parent of two children enquiring if expansion of the existing Scarcroft School site could be considered as an additional option as she felt the interaction between pupils in different year groups would be lost with the split site option.

Juliet Bray spoke as a teacher and parent of two children at Scarcroft School. She also expressed support for expansion of the existing school site and concern at the suggested split site.

Evelyn Watson spoke as a resident of an apartment at the rear of the Millthorpe School site. She raised concerns at the option to build an annex on the Millthorpe site highlighting the issues of flooding, removal of trees and road safety and asked for these to be taken into account when considering the options.

Cllr Hayes thanked the Executive for the consultation already undertaken in relation to the options for the provision of additional places at Scarcroft School. However, he asked that every option should be fully considered, prior to a final decision being made.

Financial Strategy 2016/17 to 2020/21

Andrea Dudding confirmed that Unison’s comments had already been forwarded to the Executive. She expressed disappointment at the proposed Council Tax increase but support for the recent grant announcement the funds from which she hoped would be used to offset some of the proposed cuts to services.

Julie Crosby, spoke as the Deputy Chief Executive of the York Carers Centre, in relation to the cuts to public health and the effects these would have on the work of the Carers Centre.

Cllr Craghill confirmed that the comments of the Green Group had already been forwarded to the Executive, for their consideration. She also requested the use of the transitional grant to alleviate some of the proposed cuts. She highlighted cuts proposed to the review of the tree service and to the design and conservation team.

Treasury Management Strategy Statement and Prudential Indicators  for 2016/17 to 2020/21

David Judson spoke in relation to the Council’s investment policy. He requested Council to adopt a clear and robust strategy to ensure that the authority had no direct investment in any business that caused serious harm.

Cllr N Barnes, spoke as Chair of the Audit and Governance Committee in relation to discussion undertaken by the Committee in relation to ethical investments. In particular,  ...  view the full minutes text for item 107.

To receive details of those items that are listed on the Forward Plan for the next two Executive meetings.

Members received and noted details of those items on the Forward Plan for the next two Executive meetings, at the time the agenda was published.

This report considers the options for providingadditional primary school places in the Southbank area of York, following a consistent rise in demand, alongside pressures and trends in the area. 

Resolved:  That the Executive agree to:

(i)           Undertake further informal public consultation to examine all available options prior to undertaking formal public consultation on the options for the provision of school places in the Southbank area lasting four week;

(ii)          Identify option (b) as the council’s current preferred option, for the purposes of that consultation;

(iii)        Ask the Director of Children’s Services, Education and Skills to bring a report to a future meeting of the Executive describing the outcome of that consultation and making a recommendation for a proposal to be subject to statutory consultation.

Reason:     This will fulfil the LA’s legal obligation to ensure there is appropriate consultation that allows for the most effective solution to be identified.

Members considered a report which provided options for the provision of additional primary school place in the Southbank area of York, following a consistent rise in demand, alongside pressures and trends in the area.

It was noted that Ward Members had been consulted on a range of options and that they had recently held a well attended ward meeting to consult with residents on this issue.

The options considered had been:

(a)     provide no additional places in the Southbank area

(b)     build accommodation for 210 (1 form entry each year) additional places, as an annex to Scarcroft Primary on the Millthorpe School site

(c)     build a 210 (1 form entry) place primary school on the former Terry’s Car Park site at Nun Ings

(d)     build a 315 (1.5 form entry) place school on land behind The Grove and The Square off Tadcaster Road

(e)     build a 630 (3 form entry) place school at either Bishopthorpe Infant or Archbishop of York CE Junior school sites

The Executive Member expressed her appreciation for the contributions received to date in relation to the proposed options. However, in view of earlier comments and to enable consideration of the full range of options she proposed undertaking further informal public consultation, prior to the Executive meeting in March. This would then enable formal consultation to be undertaken on a preferred solution.

Officers also welcomed the opportunity to extend the consultation and confirmed that extension of the existing school would also be re-examined.

Resolved:  That the Executive agree to:

(i)           Undertake further informal public consultation to examine all available options prior to undertaking formal public consultation on the options for the provision of school places in the Southbank area lasting four week;

(ii)          Identify option (b) as the council’s current preferred option, for the purposes of that consultation;

⁽ⁱⁱⁱ⁾                Ask the Director of Children’s Services, Education and Skills to bring a report to a future meeting of the Executive describing the outcome of that consultation and making a recommendation for a proposal to be subject to statutory consultation. ^1.

Reason:     This will fulfil the LA’s legal obligation to ensure there is appropriate consultation that allows for the most effective solution to be identified.

This report presents the final report of the E-Democracy Scrutiny Review at Appendix 1 and asks Executive to approve the review recommendations. Cllr Lisle as Task Group Chair will present the final report.

Resolved:  That the Executive approve the recommendations of the E-Democracy Scrutiny Review Task Group as set out at paragraph 9 of the report.

Reason:   To conclude the Scrutiny Review in line with City of York Council Scrutiny procedures and protocols.

Consideration was given to the final report of the E-Democracy Scrutiny Review, at Annex 1, whose review aim had been to identify the potential for improving public engagement and take up of services through digital means and the Council’s ability to respond.

Members were asked to approve the following review recommendations, which had been agreed by the Corporate and Scrutiny Management Policy and Scrutiny Committee:

i.             To make the delivery of online services a priority to enable ease of access for residents and lead to potential efficiency savings within the Council

ii.            Identify any potential reasons which would lead to the poor take up of My Account by York residents as these could present a risk to the successful rolling out of the new system;

iii.           Carry out market research and public consultation during the My Account design process similar to that carried out for the website redesign;

iv.          Make My Account training sessions available for Members so they fully understand the features and utilisation of the system and are able to pass on this knowledge to residents;

v.           Implement a comprehensive online video tutorial outlining the key functionality of the My Account system;

vi.          Explore the strong integration of My Account so individuals can be “tagged” as a result of issue-based contact with CYC so they can then be signposted to the relevant decision session/committee with which they might have an interest.

vii.         Explore hyperlinking agenda items on CYC’s YouTube channel and the possibility of rolling this out to all webcast uploads for ease of access.

Cllr Lisle, as Task Group Chair presented the report and recommendations highlighting the key risks and proposed member training sessions. In answer to questions he confirmed that, although the Task Group had now completed their work, following the implementation of the Customer Relationship Management (CRM) system consideration may be given to undertaking a review of CRM use and experience at a later date.

Resolved: That having considered the final report and its annexes the Executive approve the recommendations from the E-Democracy Scrutiny Review as set out above. ^1.

Reason:   To conclude the Scrutiny Review in line with City of York Council Scrutiny procedures and protocols.

This report set out the proposed vision and principles which will drive the design of the new digital customer platform and the council’s future on-line interactions with residents and other customers. It also presents Members with details of the project management delivery arrangements for the expansion of digital services to residents and other service users and provides a response to the E-Democracy Scrutiny Review Task Group recommendations along with resident survey results.

Resolved:  That the Executive agree to:

(i)           The principles driving the design of the new customer digital platform;

(ii)          Endorse the plans in relation to the project for the delivery and expansion of on-line services to residents and other service users; and

(iii)        The response to the recommendations from the Corporate and Scrutiny Management Policy & Scrutiny Committee (CSMC) E-Democracy Scrutiny Review.

Reason:     To ensure Executive members have enough information in leading the agenda for digitalisation of services and improved access to services, with associated benefits for residents as well as the efficiencies generated.

Consideration was given to a report which provided the Executive with the proposed vision and principles that would drive the design of the new digital customer platform and the Council’s future on-line interactions with customers and residents. Details were also provided of the project management delivery arrangements for the expansion of digital services and a response to the E-Democracy Scrutiny Review Task Group recommendations and resident survey results.

Officers confirmed that residents and staff had been involved in the design of the website. It was noted that customer feedback would continue to shape the work of the project on an ongoing basis, and road testing with residents prior to any service launch. It was also noted that the hyperlinking of agenda items on CYC’s YouTube channel had already be implemented.

In answer to Members’ questions Officers confirmed that equalities implications had been considered throughout the project and that digital inclusion strategies had been developed as part of the new platform.

Members highlighted the need for user friendly access to the system, thorough testing prior to launch to ensure the success of the project and robust staff training.

Consideration was then given to the following options:

a.   To agree or amend the principles driving the design of the new customer digital platform;

b.   To agree or disagree to endorse the plans in relation to the project for the delivery and expansion of on-line services to residents and other service users; and

c.   To agree or amend the response to the recommendations from the Corporate and Scrutiny Management Policy & Scrutiny Committee (CSMC) E-Democracy Scrutiny Review.

Resolved:  That the Executive agree to:

(i)           The principles driving the design of the new customer digital platform;

(ii)          Endorse the plans in relation to the project for the delivery and expansion of on-line services to residents and other service users; and

(iii)        The response to the recommendations from the Corporate and Scrutiny Management Policy & Scrutiny Committee (CSMC) E-Democracy Scrutiny Review. ^1.

Reason:     To ensure Executive members have enough information in leading the agenda for digitalisation of services and improved access to services, with associated benefits for residents as well as the efficiencies generated.

This report presents details of the overall finance and performance position for the period covering 1 April to 31 December 2015, together with an overview of any emerging issues.

Resolved:  That Executive agree to:

(i)      Note the current finance and performance information;

(ii)     Present performance reports to the Council’s scrutiny committees.

Reason:     (i)      To ensure expenditure is kept within the approved  budget

(ii)     To ensure performance reporting and framework is in line with models of good practice across local authorities.

Members considered a report which detailed the overall finance and performance position of the Council for the period 1 April to 31 December 2015, assessed performance against budgets together with delivery of the Council’s savings programme.

With the Council’s budget for 2015/16 at £119,760k forecasts indicated financial pressures of £1,117k, an improvement of £133k on the previous forecast. Details of the financial position in relation to individual directorates were reported at paragraphs 10 to 33 of the report. It was noted that there was potential for an additional pressure of £3m in Adult Social Care owing to funding issues within the Vale of York Clinical Commissioning Group. It was also noted that, as a result of the severe flooding over the Christmas period, some assistance would be forthcoming from the Government’s emergency financial scheme and that the remaining unallocated contingency of £206k had provisionally been allocated to deal with the floods, with further details being provided in future reports.

Officers highlighted the main issues affecting the Council’s financial position and the risks involved and following further discussion it was

Resolved:  That Executive agree to:

(i)      Note the current finance and performance information;

(ii)     Present performance reports to the Council’s scrutiny committees. ^1.

Reason:     (i)      To ensure expenditure is kept within the approved  budget

(ii)     To ensure performance reporting and framework is in line with models of good practice across local authorities.

This report sets out the projected outturn position for 2015/16 including any adjustments and requests to re-profile budgets between years.

Resolved:  That Executive agree to:

(i)           Note the 2015/16 revised budget of £51.538m as set out in paragraph 6 and Table 1 of the report.

(ii)          Note the restated capital programme for 2015/16 – 2019/20 as set out in paragraph 43, Table 2 and detailed in Annex A of the report.

Reason:    To enable the effective management and monitoring of the Council’s capital programme.

[See also Part B minute]

Members considered a report which informed them of the likely outturn position of the 2015/16 Capital Programme including any adjustments and requests to re-profile budgets between years.

The current approved Capital Programme for 2015/16 was £94.389m, following amendments previously reported to Executive and Council. A decrease of £40.654m, details of which were set out in the monitor report and had resulted in a revised Capital Programme budget of £51.538m, the majority of which had due to re-profiling of budgets to future years. Offsetting this had been a net increase of £229k mainly due to an increase from the Better Bus Area Fund of £308k from external contributions.

The variances against each portfolio area, together with a summary of the key exceptions and implications on the capital programme, were set out at paragraphs 9 to 42 and at Annex A of the report. A summary of the revised 5 year Capital Programme incorporating the proposed changes highlighted in the report were shown at Table 2 and the proposed financing at Table 3.

It was noted that individual schemes previously referred to under the Economic Infrastructure Fund had now been allocated out under relevant departments.

Following discussion it was

Resolved:  That Executive agree to:

(i)           Note the 2015/16 revised budget of £51.538m as set out in paragraph 6 and Table 1 of the report.

(ii)          Note the restated capital programme for 2015/16 – 2019/20 as set out in paragraph 43, Table 2 and detailed in Annex A of the report.

Reason:    To enable the effective management and monitoring of the Council’s capital programme.

This report presents the financial strategy 2016/17 to 2020/21, including detailed revenue budget proposals for 2016/17, and asks Members to recommend to Council approval of the proposals. 

Resolved:           That Executive approve:

(i)           The average rent decrease of 1.0% to be applied to all ‘social housing rents’ for 2016/17, as required by legislation. This is shown in table 13 and described in paragraphs 110 to 112 of the report.

(ii)          The average rent increase of 0.9% to be applied to all rents which fall outside the definition on ‘social housing rents’ for 2016/17, as described in paragraph 113 of the report.

Reason:     To ensure the ongoing financial stability of the Housing Revenue Account and allow work on improving the quality of the council’s affordable housing to continue.

[See also Part B minute]

Members considered a report which presented the financial strategy for 2016 to 2021, including detailed revenue budget proposals for 2016/17 for Council approval.

Officers reported receipt of an additional £781k Local Government Finance Settlement which had been received following publication of the Executive agenda.

It was noted that the financial strategy delivered a balanced budget for 2016/17 with savings totalling £6.5m, equivalent to 5.5% of the net budget and a proposed Council Tax increase of 1%. In addition an increase of 2% in 2016/17, in line with the Government’s social care precept, which would e used to fund adult social care costs. The total council tax increase including the Parish, Police and Fire Authority precepts would be agreed at the full Council meeting on 25 February 2016.

Details of the national context and the local issues and challenges were reported with the consultation feedback and the equalities impact of the 2016/17 budget proposals.

The Leader referred to their financial strategy for the next four year period, noting the additional funds from the financial settlement and acknowledging that staff were the authorities’ biggest resource.

Executive Members thanked Officers for their work on the budget whilst also reporting on their individual budget pressures and any mitigation measures in their portfolio areas.

Resolved:           That Executive approve:

(i)           The average rent decrease of 1.0% to be applied to all ‘social housing rents’ for 2016/17, as required by legislation. This is shown in table 13 and described in paragraphs 110 to 112 of the report.

⁽ⁱⁱ⁾                 The average rent increase of 0.9% to be applied to all rents which fall outside the definition on ‘social housing rents’ for 2016/17, as described in paragraph 113 of the report. ^1.

Reason:     To ensure the ongoing financial stability of the Housing Revenue Account and allow work on improving the quality of the council’s affordable housing to continue.

This report provides an overview of the revised Housing Revenue Account Business Plan for the next 30 years and provides detail of the key priorities for the next five years, including the investment fund to support the delivery of more affordable new homes.

Resolved:   That Executive agree Option One to adopt the Housing Revenue Business Plan and finance projection as set out in Annex’s A and B of the report.

Reason:     The plan sets out the priorities for the housing revenue account for the next 5 years and gives clear messages as to the commitment to continue to invest in the council’s existing stock, the local communities and, if still viable, to build new much needed social rented housing.

Consideration was given to an overview of the revised Housing Revenue Account (HRA) Business Plan for the next 30 years, key priorities for the next 5 years and details of the investment fund to support the delivery of more affordable homes.

It was noted that following the general election in May 2015 a fundamental review of the plan had been required to take account of the local impact of changes announced at a national level. As a result, significant savings were needed from current revenue expenditure over the next 4 years and it was likely that any future building programme for new council homes would need to be significantly reduced. It was noted that the plan had been developed following extensive consultation.

The Executive Member referred to the significant changes required to the HRA Business Plan arising from national policy changes and to the effect for the city. Other Members expressed their concern at the loss of revenue income from that previously projected and to the effect on the future building programme.

Consideration was then given to the following options:

Option one – To adopt the revised plan and finance projection set out at Annex’s A and B. 

Option two – To ask officers to revise the document.

Resolved:   That Executive agree Option One to adopt the Housing Revenue Business Plan and finance projection as set out in Annex’s A and B of the report. ^1.

Reason:     The plan sets out the priorities for the housing revenue account for the next 5 years and gives clear messages as to the commitment to continue to invest in the council’s existing stock, the local communities and, if still viable, to build new much needed social rented housing.

This report provides an overview of housing’s new Strategic Asset Plan, which has been developed to support the Housing Revenue Account Business Plan.

Resolved:  That Executive agree Option One to adopt the Housing Revenue Account  Strategic Asset Plan.

Reason:     The HRA Strategic Asset Plan enables the council to objectively assess the quality of all HRA assets to guide future investment and development decisions within the housing stock in support of the aims of the HRA Business Plan.

The Executive considered a report which provided an overview of housing’s new Strategic Asset Plan which had been developed to support the Housing Revenue Account Business Plan. The Asset Plan established the decision making processes to achieve the five primary aims of the Plan and had been devised and developed with a wide range of staff.

It was noted that one of the key proposals within the plan was the introduction of a void management system to ensure automatic identification of properties that had potential for alternative uses and could be considered for intervention prior to re-letting.

The Executive Member thanked Officers for preparation of the report and consideration was then given to the following options:

1. To adopt housing’s Strategic Asset Plan as set out in Annex A 

2. To ask officers to revise the document and methodology

Resolved:  That Executive agree Option One to adopt the Housing Revenue Account  Strategic Asset Plan. ^1.

Reason:     The HRA Strategic Asset Plan enables the council to objectively assess the quality of all HRA assets to guide future investment and development decisions within the housing stock in support of the aims of the HRA Business Plan.

This report provides Members with an overview of current car parking provision and operation and seeks approval to develop a City wide Parking Management Plan with a private sector partner.

Resolved:  That the Executive agree to:

(i)           The development of a City wide Parking Management Plan and priorities to be the subject of approval by a further report to Executive.

(ii)          Continue the Marygate Pay on Exit provision and approve the principle of procuring a partner to develop proposals for the development and implementation of the Parking Management Plan in respect of off street parking. This would be subject to a further Executive report.

(iii)        Approve the transfer of parking enforcement operations from the Community and Neighbourhoods Directorate to City and Environmental Services.

Reason: (i)      To start the development of a parking policy context and Parking Management Plan for the provision of off street in the future.

(ii)       To bring more commercial expertise and acumen to bear on the Councils car parking estate.

(iii)     To seek to better align the City’s car parking provision within the Councils policy ambitions.

(iv)        To start to consolidate the management of parking operations within the council.

Consideration was given to a report which provided an overview of the current car parking provision which included:

·        public car parks

·        off-street and on-street and display parking

·        administration of the city’s Resident Parking Scheme (Respark)

Details of the pay on exit trial being conducted at the Marygate car park were reported, a trial undertaken to inform the wider implications of introducing the system more widely.

In order to take the high-level Council Plan objectives and other policy priorities Members were asked to consider the development of a city wide Parking Management Plan in conjunction with a private sector partner.

The Executive Member confirmed that this was the first stage to examine options for car parking provision prior to consideration of a further report by the committee.

Other Members confirmed their support for the review to overcome piecemeal parking arrangements, to rationalise provision and operation and for consideration in conjunction with the overall transport strategy for the city.

Resolved:  That the Executive agree to:

(i)           The development of a City wide Parking Management Plan and priorities to be the subject of approval by a further report to Executive.

(ii)          Continue the Marygate Pay on Exit provision and approve the principle of procuring a partner to develop proposals for the development and implementation of the Parking Management Plan in respect of off street parking. This would be subject to a further Executive report. ^1.

(iii)        Approve the transfer of parking enforcement operations from the Community and Neighbourhoods Directorate to City and Environmental Services. ^2.

Reason: (i)      To start the development of a parking policy context and Parking Management Plan for the provision of off street in the future.

(ii)       To bring more commercial expertise and acumen to bear on the Councils car parking estate.

(iii)     To seek to better align the City’s car parking provision within the Councils policy ambitions.

(iv)        To start to consolidate the management of parking operations within the council.

Recommended: That Council agree a decrease in the 2015/16 programme of£40.654m as detailed in the report and contained in Annex A.

Reason:              To enable the effective management and monitoring of the Council’s capital programme.

[See also Part A minute]

Members considered a report which informed them of the likely outturn position of the 2015/16 Capital Programme including any adjustments and requests to re-profile budgets between years.

The current approved Capital Programme for 2015/16 was £94.389m, following amendments previously reported to Executive and Council. A decrease of £40.654m, details of which were set out in the monitor report and had resulted in a revised Capital Programme budget of £51.538m, the majority of which had due to re-profiling of budgets to future years. Offsetting this had been a net increase of £229k mainly due to an increase from the Better Bus Area Fund of £308k from external contributions.

The variances against each portfolio area, together with a summary of the key exceptions and implications on the capital programme, were set out at paragraphs 9 to 42 and at Annex A of the report. A summary of the revised 5 year Capital Programme incorporating the proposed changes highlighted in the report were shown at Table 2 and the proposed financing at Table 3.

Following discussion it was

Recommended: That Council agree a decrease in the 2015/16 programme of£40.654m as detailed in the report and contained in Annex A. ^1.

Reason:              To enable the effective management and monitoring of the Council’s capital programme.

This report seeks the recommendation of Executive to Full Council for the approval of the Treasury Management Strategy and Prudential Indicators for the 2016/17 financial year.

Recommended:That Council approve:

(i)           The proposed Treasury Management Strategy for 2016/17 including the annual investment strategy and the minimum revenue provision policy statement;

(ii)          The Prudential Indicators for 2016/17 to 2020/21 in the main body of the report;

(iii)        The Specified and Non-Specified Investments schedule (Annex B) of the report;

(iv)        The Scheme of Delegation and the Role of the Section 151 Officer (Annex D) of the report;

(v)         The Council’s entry into the Framework Agreement and its accompanying schedules for the Municipal Bonds Agency, including the joint and several guarantee;

(vi)        Delegation of authority to the Director of Customer and Business Support Services as Section 151 Officer and the Assistant Director for Governance and ICT as Monitoring Officer to sign those documents, as appropriate, on behalf of the Council;

(vii)    Granting the Section 151 Officer delegated authority to agree amendments to the Framework Agreement as appropriate.

Reason:   To enable the continued effective operation of the Treasury Management function and ensure that all Council borrowing is prudent, affordable and sustainable.

Consideration was given to a report which provided Members with information on the following which required Council approval:

·          Treasury management strategy statement for 2016/17 covering the two main areas of Capital and Treasury management Issues ;

·        Prudential indicators for 2016/17 to 2020/21

·        Municipal Bond Agency Framework Agreement

·        Specified and non-specified investments schedule at Annex B.

·        Treasury management scheme of delegation and role of the section 151 officer at Annex D of the report.

It was noted that the Council were required to receive, scrutinise via the Audit and Governance Committee and approve these reports each year.

At a strategic level, there were a number of treasury management options available that depended on the Council’s stance on interest rate movements. The report set out the Council’s stance and recommended the setting of key trigger points for borrowing and investing over the forthcoming financial year.

Consideration was also given to the Audit and Governance Committee’s recommendations to the Executive in relation to the Council’s Treasury Management Strategy, circulated at the meeting. Officers reiterated that the Council only invested in money market funds or directly with banks and building societies, it had very little information as to where these counterparties placed their funds.

Members acknowledged that further information on the implications of implementing an ethical investment policy were required and that, if felt necessary, scrutiny of the issue should be undertaken.

Recommended:That Council approve:

(i)           The proposed Treasury Management Strategy for 2016/17 including the annual investment strategy and the minimum revenue provision policy statement;

(ii)          The Prudential Indicators for 2016/17 to 2020/21 in the main body of the report;

(iii)        The Specified and Non-Specified Investments schedule (Annex B) of the report;

(iv)        The Scheme of Delegation and the Role of the Section 151 Officer (Annex D) of the report;

(v)         The Council’s entry into the Framework Agreement and its accompanying schedules for the Municipal Bonds Agency, including the joint and several guarantee;

(vi)        Delegation of authority to the Director of Customer and Business Support Services as Section 151 Officer and the Assistant Director for Governance and ICT as Monitoring Officer to sign those documents, as appropriate, on behalf of the Council;

(vii)    Granting the Section 151 Officer delegated authority to agree amendments to the Framework Agreement as appropriate. ^1.

Reason:   To enable the continued effective operation of the Treasury Management function and ensure that all Council borrowing is prudent, affordable and sustainable.

Resolved:           That Executive, having considered;

·     Expenditure pressures facing the council as set out in the report

·     Impacts of savings proposals set out in annex 2

·     Medium term financial factors facing the council as outlined in the report

·     Projected levels of reserves as set out in the report

·     Statutory advice from the Director of Customer and Business Support Services

It be

Recommended:    (i)    That Council approve the budget proposals as outlined in the report, and in particular;

·     The net revenue expenditure requirement of £117.900m

·     A council tax requirement of £77.072m

·     The revenue growth proposals as outlined in the body of the report

·     The 2016/17 revenue savings proposals as outlined in annex 2

·     The fees and charges proposals as outlined in annex 4

·     The Housing Revenue Account (HRA) budget set out in annex 5 and the HRA savings proposals set out in annex 6

·     The dedicated schools grant proposals outlined in paragraphs 114 to 122

(ii)     To note the effect of approving the income and expenditure proposals included in the recommendations would result in a 3% increase in the City of York element of the council tax, 2% of which would relate to the social care precept.

(iii)     To note receipt of an additional £781k transitional grant.

Reason: To ensure a legally balanced budget is set

[See also Part A minute]

Members considered a report which presented the financial strategy for 2016 to 2021, including detailed revenue budget proposals for 2016/17 for Council approval.

It was noted that the financial strategy delivered a balanced budget for 2016/17 with savings totalling £6.5m, equivalent to 5.5% of the net budget and a proposed Council Tax increase of 1%. In addition an increase of 2% in 2016/17, in line with the Government’s social care precept, which would e used to fund adult social care costs. The total council tax increase including the Parish, Police and Fire Authority precepts, would be agreed at the full Council meeting on 25 February 2016.

Details of the national context and the local issues and challenges were reported with the consultation feedback and the equalities impact of the 2016/17 budget proposals.

Resolved:           That Executive, having considered;

·     Expenditure pressures facing the council as set out in the report

·     Impacts of savings proposals set out in annex 2

·     Medium term financial factors facing the council as outlined in the report

·     Projected levels of reserves as set out in the report

·     Statutory advice from the Director of Customer and Business Support Services

It be

Recommended:    (i)    That Council approve the budget proposals as outlined in the Financial Strategy report, and in particular;

·     The net revenue expenditure requirement of £117.900m

·     A council tax requirement of £77.072m

·     The revenue growth proposals as outlined in the body of the report

·     The 2016/17 revenue savings proposals as outlined in annex 2

·     The fees and charges proposals as outlined in annex 4

·     The Housing Revenue Account (HRA) budget set out in annex 5 and the HRA savings proposals set out in annex 6

·     The dedicated schools grant proposals outlined in paragraphs 114 to 122

(ii)     To note the effect of approving the income and expenditure proposals included in the recommendations would result in a 3% increase in the City of York element of the council tax, 2% of which would relate to the social care precept.

(iii)     To note receipt of an additional £781k Local Government Finance Settlement. ^1.

Reason: To ensure a legally balanced budget is set

This report set out the Capital Strategy for 2016/17 to 2020/21, and in particular sets out new capital schemes.

Recommended: That Council:

·        Agree to the revised capital programme of £180.206m that reflects a net overall increase of £28.451m (as set out in paragraph 54 table 10 and in Annex B). Key elements of this include

o        Extension of prudential borrowing funded Rolling Programme schemes totalling £4.921m as set out in table 3 and summarised in table 10;

o        New schemes totalling £2.415m including an increase in prudential borrowing of £643k as set out in tables 4 & 5 and summarised in table 10;

o        Extension of externally funded Rolling Programme schemes totalling £9.878m as set out in table 6 and summarised in table 10;

o        An increase in Housing Revenue Account funded schemes totalling £12.009m funded from a combination HRA balances/Right to Buy receipts of £12.009m as set out in table 7 and summarised in table 10

·        Approve the full restated programme as summarised in Annex A totalling £180.206m cover financial years 2016/17 to 2020/21 as set out in table 11 and Annex A

·          Approve the appropriation of the Housing Revenue Account shops into the General Fund as set out at paragraph 5 in the report.

Reason:     To set a balanced capital programme as required by the Local Government Act 2003

Consideration was given to a report which set out the Capital Strategy for the 5 year period covering 2016/17 to 2010/21 and provided information on new capital schemes.

Since current scheme approval in February 2015 a number of amendments had been made resulting in a current approved capital programme for 2015/16 to 2019/20 of £203.293m financed by £110.168m of external funding and £93.125m of Council controlled resources.

Requests in the sum of £29.223m had been made to increase the existing programme, details of which were set out in paragraphs 6 to 10 and summarised in table 10 in the report. With a summary of the new bids set out in Table 2 and the capital programme and growth summary in Annexes A and B.

It was noted that all bids received for capital funding had addressed the aspiration of the Council Plan with each proposal addressing at least one of the corporate priorities and that to mitigate risks the programme was regularly monitored by the Capital Asset Board.

Recommended: That Council:

·        Agree to the revised capital programme of £180.206m that reflects a net overall increase of £28.451m (as set out in paragraph 54 table 10 and in Annex B). Key elements of this include

o        Extension of prudential borrowing funded Rolling Programme schemes totalling £4.921m as set out in table 3 and summarised in table 10;

o        New schemes totalling £2.415m including an increase in prudential borrowing of £643k as set out in tables 4 & 5 and summarised in table 10;

o        Extension of externally funded Rolling Programme schemes totalling £9.878m as set out in table 6 and summarised in table 10;

o        An increase in Housing Revenue Account funded schemes totalling £12.009m funded from a combination HRA balances/Right to Buy receipts of £12.009m as set out in table 7 and summarised in table 10

·        Approve the full restated programme as summarised in Annex A totalling £180.206m cover financial years 2016/17 to 2020/21 as set out in table 11 and Annex A

·          Approve the appropriation of the Housing Revenue Account shops into the General Fund as set out at paragraph 5 in the report. ^1.

Reason:     To set a balanced capital programme as required by the Local Government Act 2003