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 invited 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.  Councillor Crisp declared a personal interest in agenda item 17 (minute 94 refers) as a member of the Regional Arts Council.

To consider the exclusion of the press and public from the meeting during consideration of the following:

Annex 1 to agenda item 18 (Disposal of Acres Farm, Naburn) on the grounds that it contains information relating to the financial or business affairs of particular persons.  This information is classed as exempt under paragraph 3 of Schedule 12A to Section 100A of the Local Government Act 1972 (as revised by The Local Government (Access to Information) (Variation) Order 2006).

Members considered whether to exclude the press and public from the meeting during consideration of Annex 1 to agenda item 18 (Disposal of Acres Farm, Naburn) on the grounds that it contained information relating to the financial or business affairs of particular persons, as this information was classed as exempt under paragraph 3 of Schedule 12A to Section 100A of the Local Government Act 1972 (as revised by The Local Government (Access to Information) (Variation) Order 2006.)

Members indicated that they did not intend to make a resolution to exclude the press and public from the meeting for consideration of this item, as they would not be entering into detailed discussion in relation to the exempt information contained at Annex 1 to this report.

To approve and sign the minutes of the last Cabinet meeting held on 8 January 2013.

RESOLVED:       That the minutes of the last meeting of Cabinet held on 8 January 2013 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 Monday 11 February 2013.  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.

It was reported that there had been two registrations to speak at the meeting under the Council’s Public Participation Scheme, and that eight Members of Council had requested to speak on a number of agenda items as follows:

5. Forward Plan

Cllr Warters expressed concern that the strategy on tethered horses was to be considered at a Cabinet Member Decision Session that was due to be held in private. 

6.  2012-13 Performance and Finance Monitor 3

Cllr Reid expressed concern that although Beckfield Lane Recycling Centre had been closed, the proposed savings had not been achieved.

9. Financial Strategy 2013-2018

Andrea Dudding, spoke on behalf of Unison in particular in relation to saving referred to in the report at CANS02/16 - Culture, Events & Festivals, CANS 42 - Cultural & Learning Services and CANS17 - Library Services.  She expressed concern at proposed cuts to expenditure on libraries, arts and culture and requested that Members reconsidered this proposal taking into account the impact that it would have on tourism, jobs and the economy.  Concerns were also expressed at cuts to the library service at a time when the city archives were being developed.  She drew attention to the recommendations of the Fairness Commission.

Heather McKenzie also spoke on behalf of Unison commenting generally on the proposed cuts.  She stated that, whilst recognising the financial pressures under which the proposals had been made, she was concerned at the outsourcing of care provision and the implications that this would have on terms and conditions and standards of care.  Concerns were also raised in respect of social enterprise.  She urged that procurement policy incorporated support for the staff concerned.   Concerns were also expressed at the short timescale for consultation but assurances were given that the union would continue to work with the council to mitigate job losses.

Cllr Warters raised concerns regarding the proposed increase in council tax and cuts to services.  He stated his concerns regarding the proposed allocation of funding for the expansion of Osbaldwick Gypsy Caravan Site and sought clarification as to whether the funding referred to on page 108 of the agenda papers included provision for the prosecution of those responsible for unlawful horse tethering.

Cllr D’Agorne stated that he appreciated the difficulties caused by the cuts to local government funding and supported the decision not to accept the government grant available to councils that did not increase council tax.  He stated that he was, however, concerned about the privatisation of council services in areas such as libraries, elderly people’s homes, looked after children, warden call and cleaning and security services.  He stated that he could not support libraries and archives being delivered by an organisation outside of the council.  Although social enterprise could be beneficial it should not be used as a cost-cutting strategy.  The savings that could be made by using libraries as community hubs could be made in-house.  He stated that he was also concerned at the decision to review staffing in older people’s homes and questioned the morality  ...  view the full minutes text for item 83.

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

This report sets out the performance of the Council in delivering its Council Plan priorities and report progress on delivering the revenue budget, covering the period 1 October 2012 to 31 December 2012.  The report sets out headline performance in the delivery of the Council Plan and projected performance against budget.

RESOLVED:                That Cabinet agree to:

i)             Note performance against the Council plan.

ii)            Note the current projected pressures of £1,721k.

iii)          Approve the strategies in place to mitigate the forecast as outlined in the body of the report

REASON: In order to ensure expenditure is kept within budget.

Consideration was given to a report which set out details of the Council’s headline performance in delivering the Council Plan priorities and the projected performance against budget, covering the period 1 October 2012  to 31 December 2012.

It was noted that the government had announced in December that the settlement for 2013/14 had been revised to include a further 1% cut in budget for the next financial year.  This required the council to accelerate existing work and initiate additional changes to enable a balanced budget to be set.  The impacts of the welfare reforms would also put further pressure on the council in supporting the most vulnerable residents. 

It was reported that York and its partners had however delivered a number of significant successes in 2012 and maintained strong performance in key areas. Since Monitor 2, as a result of the implementation of mitigation strategies, the forecast pressures had reduced by £800k to £1.7m however further work would continue to ensure that the revenue budget was balanced.

Full details of the performance and delivery of the Council Plan in all five areas was set out in the report at paragraphs 8 to 79. Financial performance was also reported with the mid year forecast indicating financial pressures of £1.721k, an improvement of £792k compared to £2,513k reported at Monitor 2. Further information in respect of the financial outturn of each directorate and corporate budgets was set out at paragraphs 87 to 128.  It was reported that although the City and Environmental services budget was reporting financial pressures, which had been exacerbated by the extreme weather, it was intended that the final outturn would be on budget.  Information on the position of the General Fund Reserve and minimum level required was also stated. 

Members commented on the work that was taking place to attract jobs and inward investment into the city.  Members stressed their commitment to continuing to work with partners and national bodies in order to attract funding.  They stated that the city’s economy was performing well compared to the situation nationally.

The Cabinet Member for Corporate Services stressed the importance of ensuring that expenditure came in on budget at the end of Quarter 4.

RESOLVED:                That Cabinet agree to:

i)             Note performance against the Council plan.

ii)            Note the current projected pressures of £1,721k.

iii)  Approve the strategies in place to mitigate the forecast as outlined in the body of the report. ^1.

REASON: In order to ensure expenditure is kept within budget.

This report inform Members of the likely outturn position of 2012/13 Capital Programme based on the spend profile and information to January 2013; informs of any under or overspends; seeks approval for changes to the programme andinforms of any slippage and seeks approval for the associated funding to be slipped to or from the relevant financial years to reflect this.

RESOLVED:       That Cabinet agree to:

·       Note the 2012/13 revised budget of £57.281m as set out in paragraph 6 and Table 2.

·       Note the restated capital programme for 2012/13 – 2016/17 as set out in paragraph 43, Table 4 and detailed in Annex A.

·       Note the re-profiling and adjustments of the Economic Infrastructure fund to align to spend and approval as set out in the Economic Infrastructure reports to Cabinet noting the overall fund remaining at £28.5m and Annex B showing current EIF position.

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 2012/13 Capital Programme based on the spend profile and information to January 2013, including under and over spends, programme changes together with any slippage.

The current approved Capital Programme for 2012/13 was £69.033m, financed by £27.438m of external funding, and internal funding of £41.595m.  A decrease of £11.752m, details of which were set out in the report, and had resulted in a revised Capital Programme  budget of £57.281 made up of under spends and net re-profiling to future years. The variances against each portfolio area, together with a summary of the key exceptions and implications on the capital programme, was set out at paragraphs 6 to 38 and at Annex A of the report. A summary of the revised 5 year Capital Programme incorporating the proposed changes highlighted in the report was shown at Table 4 together with the proposed financing at Table 5. The schemes which made up the under spend of £1.126m reported  in 2012/13 were set out at paragraph 47.

The overall spend and the commitment profile on the Economic Infrastructure Fund over the existing 5 year programme was reported at paragraphs 41 and 42 and at Annex B of the report.

RESOLVED:       That Cabinet agree to:

·       Note the 2012/13 revised budget of £57.281m as set out in paragraph 6 and Table 2.

·       Note the restated capital programme for 2012/13 – 2016/17 as set out in paragraph 43, Table 4 and detailed in Annex A.

·       Note the re-profiling and adjustments of the Economic Infrastructure fund to align to spend and approval as set out in the Economic Infrastructure reports to Cabinet noting the overall fund remaining at £28.5m and Annex B showing current EIF position. ^1.

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

This report provides Members with an update on treasury management activities as required through regulations issued under the Local Government Act 2003 and the revised 2011 (Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management (as revised).

RESOLVED:       That, in accordance with the Local Government Act 2003 (revised), Cabinet agree to:

i)             Note the Treasury Management activities in 2011/12.

ii)            Note the movements in the Prudential Indicators at Annex A.

REASON:                     To ensure the continued performance of the Council’s Treasury Management function.

Consideration was given to a report which provided Members with an update on Treasury Management  Activities for the period 1 April 2012 to 31 December 2013 as required through regulations.

The report reviewed the economic background under which the activities had been operating at paragraphs 4 to 8, the annual investment strategy at paragraphs 9 to 12, the investment and borrowing portfolios at paragraphs 13 to 33 together with information on compliance with Prudential Indicators at paragraphs 34 to 36.

Monitoring of the Prudential Indicators during this period was detailed at Annex A of the report and it was confirmed that during the 2012/13 financial year the Council had operated within the treasury limits and Prudential Indicators set out.

RESOLVED:       That, in accordance with the Local Government Act 2003 (revised), Cabinet agree to:

i)             Note the Treasury Management activities in 2011/12.

ii)            Note the movements in the Prudential Indicators at Annex A.

REASON:                     To ensure the continued performance of the Council’s Treasury Management function.

This report presents the financial strategy 2013-2018, including detailed revenue budget proposals for 2013/14 and 2014/15, and asks Members to recommend to Council approval of the proposals. 

RESOLVED:       That Cabinet approve the average rent increase of 4.36% as set out in paragraphs 81 to 84 of the report.

REASON:            To ensure the ongoing financial stability of the HRA and allow work on improving the quality of the council’s affordable housing to continue.

[see also Part B minute]

Cabinet considered the financial strategy for the period 2013 to 2018 which included details of the revenue budget proposals for 2013/14 and 2014/15. The strategy delivered a balanced budget over a two year period with savings of £20m and proposed a Council Tax increase of 1.9% in 2013/14.

Members discussed the key issues in the proposals, as outlined in paragraph 2 of the report.  It was agreed that a two year budget better enabled longer term investments and savings to be developed and implemented, providing a stable, sustainable financial basis for the delivery of services. 

Members commented on the context in which decisions on the budget were being made.  Factors such as the significant changes in financial regulations, the increased pressures on demand for adult social care, formula grant reductions and reductions in other grant funding had resulted in very difficult decisions having to be taken.  The budget proposals had sought to protect the most vulnerable, including the elderly, Looked After Children, and families on low income.  The proposals also sought to promote growth in the local economy and hence measures such as the investment in the city centre, in the park and ride and in the market.  The council would continue to work with partners and with the voluntary sector in an effort to mitigate the impact of the cuts. 

Referring to issues that had been raised under agenda item 4 regarding proposed expenditure on the expansion of the traveller site at Osbaldwick, Members stated that the council had statutory responsibilities in respect of this provision and was also seeking to ensure that all residents of the city were treated fairly.   The Cabinet Member for Crime and Stronger Communities also clarified that decisions in respect of the tethered horse policy would be taken in public.

Members commented on the risks associated with the proposed savings, for example the reduction in children’s services expenditure.  The proposals posed significant challenges and it was unavoidable that there would be an impact on front line services.  The Chair urged Members of all Groups to work together to mitigate the impact of the cuts and to lobby against further cuts to local government financing.

The Chair expressed appreciation of the work that had taken place in preparing the budget proposals.

Following further discussions it was

RESOLVED:       That the average rent increase of 4.36%, as set out in paragraphs 81 to 84 of the report, be approved. ^1.

REASON:            To ensure the ongoing financial stability of the HRA and allow work on improving the quality of the council’s affordable housing to continue.

The purpose of this paper is to provide Cabinet with details of the new power to grant business rate Discounts.  It also sets out the changes to existing discretionary and mandatory rate relief when business rates are localised in April 2013.  The report provides draft policies and procedures for dealing with both Business Rate Reliefs and Business Rate Discounts for Cabinet approval.         

RESOLVED:       That Cabinet agree to:

i)             Approve the draft business rate discount policy attached at Annex A;

ii)            Approve the discretionary business rate relief process attached at Annex B.

REASON:           i)        To provide a policy to deal with any requests for business rate discounts. 

ii)       To provide a policy and process to manage future requests for discretionary rate relief that allows for proper consideration of the financial impact of any award.

Members considered a report that provided details of the new

power to grant business rate discounts.  It also set out the changes

to existing discretionary and mandatory rate relief when business

rates are localised in April 2013. 

Consideration was given to the draft policies and procedures for dealing with both Business Rate Reliefs and Business Rate Discounts.  Members agreed that it would be necessary for the policies to be reviewed within two years of them being implemented.

RESOLVED:       That Cabinet agree to:

i)             Approve the draft business rate discount policy attached at Annex A;

ii)            Approve the discretionary business rate relief process attached at Annex B. ^1.

REASON:            i)       To provide a policy to deal with any requests for business rate discounts. 

ii)       To provide a policy and process to manage future requests for discretionary rate relief that allows for proper consideration of the financial impact of any award.

This reports looks at options to enable the Council to meet its statutory and policy targets and continue to provide a high quality waste collection and disposal service that is financially sustainable and provides a robust base for future growth.

RESOLVED:       That Cabinet agree to:

i)             Give approval to undertake consultation on the options for garden waste.

ii)       Give approval to undertake consultation on amending the opening hours at Towthorpe HWRC and

iii)          Receive a further report following these consultations before making a final decision.

iv)          Give approval to introduce the changes set out in Paragraphs 25 and 26 with the exception of the changes to the opening hours of Towthorpe HWRC, which are subject to consultation.

REASON:           To enable the Council to meet its statutory and policy targets and continue to provide a high quality waste collection and disposal service that is financially sustainable and provides a robust base for future growth.

Members considered a report that outlined options to enable the Council to meet its statutory and policy targets and continue to provide a high quality waste collection and disposal service that was financially sustainable and which provided a robust base for future growth.

The Cabinet Member for Environmental Services stressed the need to make savings whilst ensuring that workable systems remained in place and were satisfactory to residents.  A wide range of options were being considered and there would be full consultation with residents prior to a report being presented to Cabinet in April.  The changes would then be implemented in May.  He gave details of some of the options under consideration. 

Referring to an issue that had been raised under agenda item 4, the Cabinet Member stated that, although it was proposed that consultation would take place on amending the opening hours at Towthorpe Household Waste Recycling centre, the closure of the centre was not being considered.

Members suggested that consideration also be given to the introduction of a sliding scale in respect of the collection of extra or bulky items from residents rather than the current flat rate of charging for ten items.

RESOLVED:       That Cabinet agree to:

i)             Give approval to undertake consultation on the options for garden waste.

ii)            Give approval to undertake consultation on amending the opening hours at Towthorpe HWRC and ^1.

iii)          Receive a further report following these consultations before making a final decision. ^2.

iv)          Give approval to introduce the changes set out in Paragraphs 25 and 26 with the exception of the changes to the opening hours of Towthorpe HWRC, which are subject to consultation. ^3.

REASON:            To enable the Council to meet its statutory and policy targets and continue to provide a high quality waste collection and disposal service that is financially sustainable and provides a robust base for future growth.

The report sets out proposals for amending the City and Environmental Services Directorate to reduce costs; introduce a more coherent and efficient management structure; and to streamline and re-align the Directorate structure to focus on delivery. 

RESOLVED:       That Cabinet agree to:

i)             Approval for CONCEPT 2 established through Phase 1 of the review of the City and Environmental Services Directorate as a transitional arrangement to mitigate risk to senior management capacity and delivery, in the short to medium term, based on current known commitments.

ii)         Delegate to the Director of City and Environmental Services the completion of the review process through the detailed Phase 2 stage and to implement the outcomes of the review; in consultation with the appropriate Cabinet Spokespersons; and supported by interim expert external resource to drive delivery and embed proposed outcomes.

iii)        Note that this will facilitate the future opportunity to further transform the transitional CONCEPT 2 structure into a structure based, in principle, around CONCEPT 1;  but not bound by all the detail as presented at Annex A; subject to future funding position and how wider Council strategic initiatives are taken forward.

REASON:           i)        This will enable timely implementation of the Phase 1 review outcomes to deliver the revenue savings in line with commitments and expectation for the Directorate by May 2013, along with facilitating Phase 2 of the review.

ii)            This will enable the full revenue savings to be realised in the most expedient manner for financial years 2013/14 and 2014/15 in line with commitments and expectation.

Members considered a report that set out proposals for amending the City and Environmental Services Directorate to reduce costs; introduce a more coherent and efficient management structure; and to streamline and re-align the directorate structure to focus on delivery.  Details were given of the two stage process.

Options had been developed through the consultation process taking into account the feedback given and the range of structure proposals presented for consideration.  Details of the existing structure and each concept option were presented at Annex A of the report and summarised below:

CONCEPT 1 – 2 Assistant Directors and 4 Heads of Service Model (Refer to Annex A)

CONCEPT 2 – 2 Assistant Directors and 5 Heads of Service Model (Refer to Annex A)

The Cabinet Member for City and Environmental Services stated that the proposals were very radical and would result in substantial savings whilst still maintaining continuity in the delivery of services.  Nevertheless it was important to recognise that issues such as success in income generation would be important factors.

RESOLVED:       That Cabinet agree to:

i)             Approval for CONCEPT 2 established through Phase 1 of the review of the City and Environmental Services Directorate as a transitional arrangement to mitigate risk to senior management capacity and delivery, in the short to medium term, based on current known commitments.

ii)            Delegate to the Director of City and Environmental Services the completion of the review process through the detailed Phase 2 stage and to implement the outcomes of the review; in consultation with the appropriate Cabinet Spokespersons; and supported by interim expert external resource to drive delivery and embed proposed outcomes. ^1.

iii)          Note that this will facilitate the future opportunity to further transform the transitional CONCEPT 2 structure into a structure based, in principle, around CONCEPT 1;  but not bound by all the detail as presented at Annex A; subject to future funding position and how wider Council strategic initiatives are taken forward.

REASON:         i)          This will enable timely implementation of

the Phase 1 review outcomes to deliver the revenue savings in line with commitments and expectation for the Directorate by May 2013, along with facilitating Phase 2 of the review.

ii)       This will enable the full revenue savings to be realised in the most expedient manner for financial years 2013/14 and 2014/15 in line with commitments and expectation.

This report outlines the current state of the building industry within York and the direct role stimulating the house building industry will have on achieving the council’s priority to create jobs and grow the economy. 

RESOLVED:       That Cabinet agree to:

i)       Option1 as set out in Paragraph 20 of the report to:

·     Update the Affordable Housing Targets (as set out in Table 1) and approve as a material consideration for Development Management purposes;

·     Accept, on sites of less than 15 homes in rural areas, an off site financial contribution in lieu of on site affordable housing, (as set out in Annex 1) for a period of 18 months and approve as a material consideration for Development Management purposes;

·     Invest £1m in addressing overcrowding in existing council homes from the HRA;

·     Agree a first phase of building new council homes with funding from the HRA as set out in the HRA Business Plan.

·     Work up options for a mortgage advice scheme;

·     Review general S106 requirements and development of new approaches to facilitate greater flexibility in the payment of contributions

·     Develop opportunities for Institutional investment in to new Private Rented Sector homes within the city. 

REASON:            To ensure that the council plays a full and active leadership role in delivering quality sustainable new homes, creating jobs and growing the economy of the city.

Members considered a report that outlined the current state of the building industry within York and the direct role that stimulating the house building industry would have on achieving the council’s priority to create jobs and grow the economy.   The report also discussed real and perceived barriers to building and considered options for the Council to play a leadership role in developing the climate where stalled development could be brought forward whilst protecting the historic and green nature of the city. 

Members expressed concern at the problems associated with the high costs of housing in the city.  They stated that the Get  York Building programme would help drive the local economy, provide a boost to employment, reduce benefits dependency and create a knock on impact in the wider prosperity of the city as well as providing much needed sustainable homes to meet the housing needs of the city.

Details were given of the consultation that had taken place and the issues that had been raised, including the bureaucracy regarding off site financial contributions.  The Cabinet Member for City and Environmental Services stated that the paper had recently been considered by the Local Plan Working Group and he reported on the views of the group.

Members welcomed the proposed establishment of a mortgage advice scheme which would be of particular benefit to smaller building companies.

Consideration was given to the following options:

Option 1 – To approve the proposed interventions to:

·        Update the Affordable Housing Targets (as set out in Table 1) and approve as a material consideration for Development Management purposes;

·        Accept, on sites of less than 15 homes in rural areas, an off site financial contribution in lieu of on site affordable housing, (as set out in Annex 1) for a period of 18 months and approve as a material consideration for Development Management purposes;

·        Invest £1m in addressing overcrowding in existing council homes;

·        Agree a first phase of building new council homes;

·        Work up options for a mortgage advice scheme;

·        Review general S106 requirements and development of new approaches to facilitate greater flexibility in the payment of contributions

·        Develop opportunities for Institutional investment in to new Private Rented Sector homes within the city. 

Option 2 – To ask officers to amend the proposed interventions.

RESOLVED:       That Cabinet agree to:

Option1 as set out in Paragraph 20 of the report to:

·        Update the Affordable Housing Targets (as set out in Table 1) and approve as a material consideration for Development Management purposes;

·        Accept, on sites of less than 15 homes in rural areas, an off site financial contribution in lieu of on site affordable housing, (as set out in Annex 1) for a period of 18 months and approve as a material consideration for Development Management purposes;

·        Invest £1m in addressing overcrowding in existing council homes from the HRA;

·        Agree a first phase of building new council homes with funding from the HRA as set out in the HRA Business Plan.

·        Work up options for a mortgage advice scheme;  ...  view the full minutes text for item 92.

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

RESOLVED:       That Cabinet agree to:

i)             Approve the overall HRA Business Plan, in particular the creation of an investment fund of £20m and recommend to Council the adoption of the HRA business plan as set out in Annex A

ii)            Agree in principal the release of £6m funding from the investment fund for the first phase of 60 new Council homes. Following detailed work identify the specific sites and construction costs a further report will be brought Cabinet setting out the exact costs of development for Cabinet to consider and recommend to full Council for approval.

REASON:            The plan sets out a sustainable financial projection for the next 30 years and the priorities for the housing revenue account for the next 5 years.  It gives clear messages as to the commitment to continue to invest in the council’s exist stock, the local communities and build new much needed social rented housing.

Members considered a report that provided an overview of the new Housing Revenue Account Business Plan for the next 30 years and provided details of the key priorities for the next five years, including the creation of an investment fund to support the delivery of more affordable new homes.

Consideration was give to the following options:

          Option one – To adopt the plan set out at Annex A 

          Option two – To ask officers to revise the document

The Cabinet Member for Health and Adult Social Services stated that the authority’s costs for keeping stock up to date compared well with that of other councils.  Because of the changes to benefits it was difficult to accurately project income for the next few years and hence a prudent plan had been put in place. 

RESOLVED:       That Cabinet agree to:

i)             Approve the overall HRA Business Plan, in particular the creation of an investment fund of £20m and recommend to Council the adoption of the HRA business plan as set out in Annex A.

ii)            Agree in principal the release of £6m funding from the investment fund for the first phase of 60 new Council homes. Following detailed work identify the specific sites and construction costs a further report will be brought Cabinet setting out the exact costs of development for Cabinet to consider and recommend to full Council for approval.

REASON:            The plan sets out a sustainable financial projection for the next 30 years and the priorities for the housing revenue account for the next 5 years.  It gives clear messages as to the commitment to continue to invest in the council’s exist stock, the local communities and build new much needed social rented housing.

This paper outlines proposals for York’s participation in the activities supporting the “The Grand Départ” of The Tour de France in Yorkshire in July 2014.  It outlines the associated benefits and operational costs and implications and seeks agreement to enter into an arrangement with Welcome to Yorkshire and Leeds City Council, as the lead local authority, to host the second day start of the Grand Depart. 

RESOLVED:                That Cabinet agree to:

i)             Approve the Council’s commitment to staging the Grand Départ within the parameters outlined and agree that the £500k hosting fee will be met from the Economic Infrastructure Fund.

ii)            Give delegated authority to the Chief Executive, in consultation with the Leader of the Council, to enter into an agreement with Welcome to Yorkshire and Leeds City Council to host the Grand depart.

iii)          The approach of the regional and local legacy and cultural work as outlined in the report.

REASON:            To support the efficient and effective implementation of the work needed to successfully host the Grand Départ in the region and the legacy work for York’s regional leading role and York element of the legacy implementation.

Members considered a report that outlined proposals for York’s participation in the activities supporting the “Grand Départ” of the Tour de France in Yorkshire in July 2014.  The report outlined the associated benefits and operational costs and implications.  Members’ approval was sought to enter into an agreement with Welcome to Yorkshire and Leeds City Council, as the lead local authority, to host the second day start of the Grand Départ.

Members were delighted that the bid had been successful and York would be hosting the second stage start, as had been its preference.   There would also be a range of activities and cultural events marking the occasion.  Members commented on the inward investment that the event would bring to the city.  It offered a unique opportunity to provide a showcase for the city in the international perception of York as a sporting city and a place to visit and do business.  The event would also leave a legacy for cyclists for many years to come.

Members noted the operational costs and logistics, as outlined in paragraph 19 of the report.  Leeds City Council would act as administrative body and guarantor for all the authorities with involvement in the stages and each of the authorities had been asked to commit in principle to providing the financial support required.  This would commit the city to a payment of the hosting fee of £500k  in three stages, on signing, one year before the event and on the first day of the Grand Départ.

It was noted that further reports would be presented to Cabinet as the project developed.

The Chair thanked all those involved in the successful bid.

RESOLVED:                That Cabinet agree to:

i)             Approve the Council’s commitment to staging the Grand Départ within the parameters outlined and agree that the £500k hosting fee will be met from the Economic Infrastructure Fund.

ii)            Give delegated authority to the Chief Executive, in consultation with the Leader of the Council, to enter into an agreement with Welcome to Yorkshire and Leeds City Council to host the Grand depart.

iii)          The approach of the regional and local legacy and cultural work as outlined in the report. ^1.

REASON:            To support the efficient and effective implementation of the work needed to successfully host the Grand Départ in the region and the legacy work for York’s regional leading role and York element of the legacy implementation.

This report seeks Cabinet approval for the sale of Acres Farm to the fourth highest bidder following the earlier approval to sell the property given by the Executive on 17 April 2003.

RESOLVED:       That, subject to the inclusion of a condition regarding any future change of use, Cabinet agree to the sale of Acres Farm to Bidder D on the grounds that it reflects a reasonable market value for the land and creates a significant economic benefit for the city through the creation of jobs and training and best meets the requirements of the Asset Strategy and Council Plan.

REASON:            To ensure the Council disposes of the land and buildings for the best consideration reasonably obtainable whilst also helping to deliver the objectives of the Council Plan.

Consideration was given to a report that sought approval for the sale of Acres Farm, Naburn to the fourth highest bidder.  The sale of the property, which was located in a semi rural position approximately three miles south of York city centre, had been approved by the Executive on 17 April 2003.

Consideration was then given to the following options:

Option1  Dispose of Acres Farm to Bidder A

Option 2 Dispose of Acres Farm to Bidder B

Option 3 Dispose of Acres Farm to Bidder C

Option 4 Dispose of Acres Farm to Bidder D

Members agreed that it was important to put safeguards in place regarding any future change of use of the site.

RESOLVED:       That, subject to the inclusion of a condition

regarding any future change of use, Cabinet agree to the sale of Acres Farm to Bidder D on the grounds that it reflects a reasonable market value for the land and creates a significant economic benefit for the city through the creation of jobs and training and best meets the requirements of the Asset Strategy and Council Plan. ^1.

REASON:            To ensure the Council disposes of the land and buildings for the best consideration reasonably obtainable whilst also helping to deliver the objectives of the Council Plan.

This report highlights the need for specific targeted resources to deliver against the Council’s Climate Change Framework and Action Plan and to address fuel poverty in the city.

The Chair stated that this report, which highlighted issues and ambitions regarding additional investment in Sustainability and tackling Fuel Poverty and had been included on the republished agenda, had now been withdrawn from the agenda and would be revisited at a later date.

REASON:  Because of the difficult budget situation it is not currently possible to move forward with this issue.

RECOMMENDED:      That Council agree the adjustments in the Capital programme of an overall decrease of £11.752m in 2012/13 with re-profiling of budget from 2012/13 to 2013/14 and 2014/15 of £10.626m as detailed in the report and contained in Annex A of the report.

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 2012/13 Capital Programme based on the spend profile and information to January 2013, including under and over spends, programme changes together with any slippage.

The current approved Capital Programme for 2012/13 was £69.033m, financed by £27.438m of external funding, and internal funding of £41.595m.  A decrease of £11.752m, details of which were set out in the report, had resulted in a revised Capital Programme budget of £57.281 made up of under spends and net re-profiling to future years. The variances against each portfolio area together with a summary of the key exceptions and implications on the capital programme, was set out at paragraphs 6 to 38 and at Annex A of the report. A summary of the revised 5 year Capital Programme incorporating the proposed changes highlighted in the report was shown at Table 4 together with the proposed financing at Table 5. The schemes which made up the under spend of £1.126m reported in 2012/13 were set out at paragraph 47.

The overall spend and the commitment profile on the Economic Infrastructure Fund over the existing 5 year programme was reported at paragraphs 41 and 42 and at Annex B of the report.

RECOMMENDED:       That Council agree the adjustments in the Capital programme of an overall decrease of £11.752m in 2012/13 with re-profiling of budget from 2012/13 to 2013/14 and 2014/15 of £10.626m as detailed in the report and contained in Annex A of the report. ^1.

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

Following further discussions it was

RESOLVED:            i)   That, having considered:

a.           Expenditure pressures facing the council as set out in the report

b.           Impacts of savings proposals set out in Annex 2

c.           Medium term financial factors facing the council as outlined in the report

d.           Projected levels of reserves as set out in the report

e.           Statutory advice from the Director of CBSS

It be

RECOMMENDED:       That Council:

i)             Approve the budget proposals outlined in the report and set out in detail within the financial strategy, in particular:

a.   The net revenue expenditure requirement of £127.778m

b.   The revenue growth proposals as outlined in the body of the report

c.   The revenue savings proposals as outlined in Annex 2

d.   The fees and charges proposals as outlined in Annex 3

e.   The Housing Revenue Account budget set out in Annex 4

f.     The dedicated schools grant proposals outlined in Annex 5

ii)                      Note that the effect of approving the income and expenditure proposals included in the recommendations would result in an increase in the City of York element of the council tax of 1.9%. 

REASON:  To ensure a legally balanced budget is set

[see also Part A minute]

Cabinet considered the financial strategy for the period 2013 to 2018 which included details of the revenue budget proposals for 2013/14 and 2014/15. The strategy delivered a balanced budget over a two year period with savings of £20m and proposed a Council Tax increase of 1.9% in 2013/14.

Members discussed the key issues in the proposals, as outlined in paragraph 2 of the report.  It was agreed that a two year budget better enabled longer term investments and savings to be developed and implemented, providing a stable, sustainable financial basis for the delivery of services. 

Members commented on the context in which decisions on the budget were being made.  Factors such as the significant changes in financial regulations, the increased pressures on demand for adult social care, formula grant reductions and reductions in other grant funding had resulted in very difficult decisions having to be taken.  The budget proposals had sought to protect the most vulnerable, including the elderly, Looked After Children, and families on low income.  The proposals also sought to promote growth in the local economy and hence measures such as the investment in the city centre, in the park and ride and in the market.  The council would continue to work with partners and with the voluntary sector in an effort to mitigate the impact of the cuts. 

Referring to issues that had been raised under agenda item 4 regarding proposed expenditure on the expansion of the traveller site at Osbaldwick, Members stated that the council had statutory responsibilities in respect of this provision and was also seeking to ensure that all residents of the city were treated fairly.   The Cabinet Member for Crime and Stronger Communities also clarified that decisions in respect of the tethered horse policy would be taken in public.

Members commented on the risks associated with the proposed savings, for example the reduction in children’s services expenditure.  The proposals posed significant challenges and it was unavoidable that there would be an impact on front line services.  The Chair urged Members of all Groups to work together to mitigate the impact of the cuts and to lobby against further cuts to local government financing.

The Chair expressed appreciation of the work that had taken place in preparing the budget proposals.

Following further discussions it was

RESOLVED:            i)   That, having considered:

a.           Expenditure pressures facing the council as set out in the report

b.           Impacts of savings proposals set out in Annex 2

c.           Medium term financial factors facing the council as outlined in the report

d.           Projected levels of reserves as set out in the report

e.           Statutory advice from the Director of CBSS

It be

RECOMMENDED:       That Council:

i)             Approve the budget proposals outlined in the report and set out in detail within the financial strategy, in particular:

a.   The net revenue expenditure requirement of £127.778m

b.   The revenue growth proposals as outlined in the body of the report

c.   The revenue savings proposals as outlined in Annex  ...  view the full minutes text for item 98.

This report asks Cabinet to recommend that Council approve the:

·        Integrated treasury management strategy statement including the annual investment strategy and the minimum revenue provision policy statement;

·        Prudential indicators for 2013/14 to 2017/18

·        Revised treasury management policy statement

·        Specified and non-specified investments schedule

·        Treasury management scheme of delegation and role of the section 151 officer

RECOMMENDED:      That Council approve:

i)          The proposed Treasury Management Strategy for 2013/14 including the annual investment strategy and the minimum revenue provision policy statement;

ii)        The Prudential Indicators for 2013/14 to 2017/18 in the main body of the report;

iii)       The Specified and Non-Specified Investments schedule (Annex B)

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

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

Cabinet considered a report that asked them to recommend that Council approve the:

·        Integrated treasury management strategy statement

including the annual investment strategy and the minimum revenue provision policy statement;

·        Prudential indicators for 2013/14 to 2017/18

·        Revised treasury management policy statement

·        Specified and non-specified investments schedule

·        Treasury management scheme of delegation and role

                   of the section 151 officer

It was noted that the Treasury Management Strategy and Prudential Indicators were aimed at ensuring that the council maximised its return on investment and minimised the cost of its debts.

RECOMMENDED:       That Council approve:

·        The proposed Treasury Management Strategy for 2013/14 including the annual investment strategy and the minimum revenue provision policy statement;

·        The Prudential Indicators for

2013/14 to 2017/18 in the main body of the report;

·        The Specified and Non-Specified Investments schedule (Annex B)

·        The Scheme of Delegation and

                                       the Role of the Section 151 Officer (Annex D) ^1.

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

This report summarises the current capital programme position covering 2012/13 – 2016/17 reflecting the Capital Monitor 3 report on this agenda, highlights the existing funding position and associated pressures and then presents the new bids received as part of this years Capital Resource Allocation Model (CRAM) process covering the period 2013/14 – 2017/18.

RECOMMENDED:    That Council:

i)    Agree to the revised capital programme of £176.709m, that reflects a net overall increase of £48.381m as set out in paragraph 30 table 10 and in Annex A ‘budget amendments’ column). Key elements of this include:

o    Extension of prudential borrowing funded Rolling Programme schemes totalling £3.365m including the IT development fund as set out in paragraph 10 table 2 and summarised in paragraph 27 table 9;

o    Creation of 2 new prudential borrowing funded Rolling Programme schemes totalling £1.500m as set out in paragraph 14 table 3 and summarised in paragraph 27 table 9

o    New  schemes totalling £3.585m including an increase in prudential borrowing of £3.185m as set out in paragraph 16 table 4 and summarised in paragraph 27 table 9;

o    New externally funded schemes totalling £25.974m as set out in paragraph 18 table 5 and summarised in paragraph 26 table 9

o    An increase in HRA funded schemes totalling £13.957m funded from HRA balances of £13.957m as set out in paragraph 19 table 6 and summarised in paragraph 27 table 9.

ii)   Approve the full restated programme as summarised in Annex A totalling £176.709m cover financial years 2013/14 to 2017/18 as set out in paragraph 30 table 10.

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

Cabinet considered a report that summarised the current capital programme position covering 2012/13 – 2016/17, reflected  the Capital Monitor 3 report on the agenda, highlighted the existing funding position and associated pressures and presented the new bids received as part of this year’s Capital Resource Allocation Model (CRAM) process covering the period 2013/14 – 2017/18.

Members considered the capital investment requests, as detailed in the report.

RECOMMENDED:    That Council:

i)        Agree to the revised capital programme of £176.709m, that reflects a net overall increase of £48.381m as set out in paragraph 30 table 10 and in Annex A ‘budget amendments’ column). Key elements of this include:

·        Extension of prudential borrowing funded Rolling Programme schemes totalling £3.365m including the IT development fund as set out in paragraph 10 table 2 and summarised in paragraph 27 table 9;

·        Creation of 2 new prudential borrowing funded Rolling Programme schemes totalling £1.500m as set out in paragraph 14 table 3 and summarised in paragraph 27 table 9

·        New  schemes totalling £3.585m including an increase in prudential borrowing of £3.185m as set out in paragraph 16 table 4 and summarised in paragraph 27 table 9;

·        New externally funded schemes totalling £25.974m as set out in paragraph 18 table 5 and summarised in paragraph 26 table 9

·        An increase in HRA funded schemes totalling £13.957m funded from HRA balances of £13.957m as set out in paragraph 19 table 6 and summarised in paragraph 27 table 9.

ii)       Approve the full restated programme as summarised in

Annex A totalling £176.709m over financial years 2013/14 to 2017/18 as set out in paragraph 30 table 10. ^1.

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