TO:- Council Councillor Kath Williams , Councillor Lin Hingley , Councillor Penny Allen , Councillor Meg Barrow , Councillor Len Bates B.E.M. , Councillor Frank Beardsmore , Councillor Chris Benton , Councillor Joyce Bolton , Councillor Barry Bond , Councillor Anthony Bourke , Councillor Mike Boyle , Councillor Gary Burnett , Councillor Nigel Caine , Councillor Jo Chapman , Councillor Bob Cope , Councillor Brian Cox , Councillor Mike Davies , Councillor Philip Davis , Councillor Brian Edwards M.B.E. , Councillor Matt Ewart , Councillor Warren Fisher , Councillor Isabel Ford , Councillor Rita Heseltine , Councillor Steve Hollis , Councillor Diane Holmes , Councillor Ve Jackson , Councillor Janet Johnson , Councillor Dan Kinsey , Councillor Michael Lawrence , Councillor Roger Lees J.P. , Councillor Dave Lockley , Councillor Terry Mason , Councillor Vincent Merrick , Councillor John Michell , Councillor Kath Perry M.B.E. , Councillor Ray Perry , Councillor Christine Raven , Councillor John Raven , Councillor Robert Reade , Councillor Ian Sadler , Councillor Robert Spencer , Councillor Christopher Steel , Councillor Wendy Sutton , Councillor Ken Upton , Councillor Bernard Williams , Councillor David Williams , Councillor Henry Williams , Councillor Reg Williams , Councillor Victoria Wilson
Notice is hereby given that a meeting of South Staffordshire Council will be held as detailed below for the purpose of transacting the business set out below.
Date: Tuesday, 25 February 2020 Time: 19:00 Venue: Council Chamber Council Offices, Wolverhampton Road, Codsall, South Staffordshire, WV8 1PX
D. Heywood Chief Executive
A G E N D A
Part I – Public Session
1 Priority Business (if any)
To dispose of any business required by statute or by the Council's Procedure Rules to be brought before the Council before any other business.
2 Minutes 5 - 8 To confirm the minutes of the meeting of the Council held on the 3 December 2019
3 Apologies
To receive any apologies for non-attendance.
Page 1 of 76 4 Declarations of Interest
To receive any declarations of interest.
5 Questions pursuant to Council Procedure Rule 11.4
Note: A Councillor may ask the Chairman of the Council, a member of the Cabinet or the Chairman of any Committee, Sub-Committee or Panel a question on any matter in relation to which the Council has powers or duties or which affects the District of South Staffordshire provided that:-
(a) they have given at least seven working days' notice in writing of the question to the Chief Executive; or
(b) the question relates to urgent matters, they have the consent of the Cabinet Member to whom the question is to be put, and the content of the question is given to the Chief Executive by 11.00 a.m. on the day of the meeting. Every question shall be put and answered without discussion but the person to whom the question has been put may decline to answer.
6 Leader's Report February 2020 9 - 24 Report of the Leader of the Council
7 Audit and Risk Committee Update 25 - 26 Councillor John Michell - Chairman of the Audit and Risk Committee
8 Licensing and Regulatory Committee Update 27 - 28 Councillor Wendy Sutton - Chairman of the Licensing and Regulatory Committee
9 Overview and Scrutiny Committee Update 29 - 30 Councillor Dave Lockley - Chairman of the Overview and Scrutiny Committee
10 Planning Update Report 31 - 32 Councillor Terry Mason - Chairman of the Planning Committee
11 Standards and Resources Committee Update 33 - 34 Councillor Barry Bond - Chairman of the Standards and Resources Committee
12 Wellbeing Select Committee Update 35 - 36 Councillor Janet Johnson - Chairman of the Wellbeing Select Committee
13 The Council's Medium Term Financial Strategy and 2020/21 Budget 37 - 74 Report of the Corporate Director Resource (and S151 Officer)
14 Proposed Adoption of Staffordshire Act 1983 Provisions 75 - 76 Report of the Monitoring Officer
15 Appointment to Standards and Resources Committee To appoint one member to the Standards and Resources Committee and to elect a Vice- Chairman.
16 Amendment to Challenge Panel Membership To note the removal of Councillor D Williams from the Your Place Challenge Panel and to approve his appointment to the Your Council Challenge Panel.
17 Chairman's Announcements
To receive any announcements which the Chairman wishes to bring to the attention of the members.
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Note: Members, officers and the public are requested to stand at the conclusion of the meeting whilst the Chairman and Vice-Chairman leave the Council Chamber.
RECORDING Please note that this meeting will be recorded.
PUBLIC ACCESS TO AGENDA AND REPORTS
Spare paper copies of committee agenda and reports are no longer available. Therefore should any member of the public wish to view the agenda or report(s) for this meeting, please go to www.sstaffs.gov.uk/council-democracy.
A paper copy is available for inspection at the Council Offices, Wolverhampton Road, Codsall, South Staffordshire WV8 1PX.
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Page 4 of 76 11 December 2019
Minutes of the meeting of the Council South Staffordshire Council held in the Council Chamber Council Offices, Wolverhampton Road, Codsall, South Staffordshire, WV8 1PX on Tuesday, 03 December 2019 at 19:00
Present:- Councillor Penny Allen, Councillor Meg Barrow, Councillor Len Bates, Councillor Frank Beardsmore, Councillor Chris Benton, Councillor Joyce Bolton, Councillor Barry Bond, Councillor Anthony Bourke, Councillor Mike Boyle, Councillor Gary Burnett, Councillor Nigel Caine, Councillor Jo Chapman, Councillor Bob Cope, Councillor Brian Cox, Councillor Philip Davis, Councillor Brian Edwards, Councillor Matt Ewart, Councillor Rita Heseltine, Councillor Lin Hingley, Councillor Steve Hollis, Councillor Diane Holmes, Councillor Ve Jackson, Councillor Janet Johnson, Councillor Dan Kinsey, Councillor Roger Lees, Councillor Dave Lockley, Councillor Terry Mason, Councillor Vincent Merrick, Councillor John Michell, Councillor Kath Perry, Councillor Ray Perry, Councillor Christine Raven, Councillor John Raven, Councillor Robert Reade, Councillor Ian Sadler, Councillor Robert Spencer, Councillor Wendy Sutton, Councillor Ken Upton, Councillor Henry Williams, Councillor Kath Williams, Councillor Reg Williams, Councillor Victoria Wilson
40 PRIORITY BUSINESS (IF ANY) There was no priority business
41 MINUTES RESOLVED: that the Minutes of the meeting of the Council held on the 10 September 2019 be approved and signed by the Chairman
42 APOLOGIES Apologies for non-attendance were submitted on behalf of Councillors M Davies, I Ford, M Lawrence, B Williams and D Williams
43 DECLARATIONS OF INTEREST There were no declarations of interest
44 QUESTIONS PURSUANT TO COUNCIL PROCEDURE RULE 11.4 There were no questions pursuant to Council Procedure Rule 11.4
45 LEADER'S REPORT - DECEMBER 2019 Members received and noted the report of the Leader of the Council
46 ASSET SCRUTINY PANEL UPDATE RESOLVED: that Council note the content of the Asset Scrutiny Panel Update
Page 5 of 76 11 December 2019
47 AUDIT AND RISK COMMITTEE UPDATE RESOLVED: that Council note the content of the Audit and Risk Committee Update
48 LICENSING AND REGULATORY COMMITTEE UPDATE RESOLVED: that Council note the content of the Licensing and Regulatory Committee Update
49 OVERVIEW AND SCRUTINY COMMITTEE UPDATE RESOLVED: that Council note the content of the Overview and Scrutiny Committee Update
50 PLANNING COMMITTEE UPDATE RESOLVED: that Council note the content of the Planning Committee Update
51 STANDARDS AND RESOURCES COMMITTEE UPDATE RESOLVED: that Council note the content of the Standards and Resources Committee Update
52 2018/2019 ANNUAL AUDIT LETTER Council received the 2018/19 Annual Audit Letter
RESOLVED: that members note and support the content of the 2018/19 Annual Audit at Appendix A
53 PROPOSALS TO UPDATE THE CODE OF CONDUCT Council received the report detailing the proposed update to the Code of Conduct
RESOLVED: that Council adopt the revised Code of Conduct encompassing the changes identified (as at Appendix 1)
54 AMENDMENTS TO THE CONSTITUTION AND APPOINTMENT OF MONITORING OFFICER The Council received the revised joint report of the Chief Executive and Corporate Director Governance
RESOLVED: that:
2.1 the revisions to the Constitution set out at paragraph 4, and at appendix 1 be approved and come into force as set out at the relevant points and that the power to make the necessary amendments, as set out in paragraph 4, to the Constitution and the Pay Policy Statement for 2019/2020 be delegated to the Corporate Director Governance
Page 6 of 76 11 December 2019
2.2 Lorraine Fowkes be appointed as the Council’s Director Legal and Governance (and Monitoring Officer) with effect from 7.2.2020 for a period of 6 months
2.3 That Members approve a revision to the Members’ Allowances Scheme in Part 6 of the Council’s Constitution to provide for a Special Responsibility Allowance for the Assistant Cabinet Member post of £3,000 following the recommendation of the Independent Remuneration Panel.
55 APPOINTMENT OF MEMBERS TO THE ASSET SCRUTINY PANEL RESOLVED: that Councillor P Davies and Councillor W Sutton be appointed as members to the Asset Scrutiny Panel
56 AMENDMENT TO CHALLENGE PANEL MEMBERSHIP RESOLVED: that Council approve the appointment of Councillor L Bates B.E.M to the Your Community Challenge Panel in place of Councillor B Cox and the appointment of Councillor B Cox to the Your Council Challenge Panel in place of Councillor L Bates B.E.M. and note the appointment of Councillor R Heseltine to the position of Assistant Cabinet Member.
57 APPROVAL OF ABSENCE The Council received the report of Approval of Absence. This had been agreed to as a late item by the Chairman as the information that this report was needed only became available after the date of publication of the Council papers.
RESOLVED: that Council approves the reason of absence, namely that of serious ill-health, for Councillor Mrs I Ford
58 CHAIRMAN'S ANNOUNCEMENTS The Chairman of the Council, Councillor Kath Williams, thanked all Members who had supported her recent charity event at Halfpenny Green Vineyards which had raised £400 for the Chairman's Charity.
The Meeting ended at: 19:45
CHAIRMAN
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REPORT OF THE LEADER OF THE COUNCIL
FEBRUARY 2020
1.0 Leader’s Responsibilities
1.1 Updates on key priorities
Financial Planning
The Finance Team has completed their work with Service Managers and Assistant Directors to produce draft budgets for 2020/21 and beyond.
Council will receive the budget report and Medium-Term Financial Strategy for approval on 25 February 2020.
Residents, customers and staff are being informed about the move towards no cash payments from 1 April and signposted to other methods of payment.
The Finance Team continues to work on improving internal processes with regards to supplier payments and improvement of debt collection rates. The use of purchase orders will become compulsory from 1 April and teams are currently being supported to ensure this deadline is achieved. Suppliers are being contacted to inform them of the change.
Policy and Partnerships
The Good Life Website is having a redesign. The contract with Born is expiring shortly, so it’s an appropriate time to ensure the information is accurate, current and relevant. Staffordshire County Council will administer the database on our behalf and although the information will sit within the Staffordshire Connects Directory, it will be in a designated South Staffordshire profile.
Wombourne Parish Council has agreed to become a Dementia Friendly Parish Council. A training session is to be arranged for all councillors to become Dementia Friends.
The Community Innovation Fund has just awarded grants to various organisations in South Staffordshire who are supporting local residents. Awards from applications received in October/November 2019 include:
A Child of Mine received funding to hold support sessions for bereaved parents who have lost a child - £987 Cheslyn Hay Tennis Club received funding to promote tennis in the community through festivals - £893 Perton Brownies received funding for further resources and for future activities - £1000
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Good Life Wellbeing Association received funding for crafts and arts sessions to be held at Lifestyle Roadshows around the district - £540 Support Staffordshire received funding to support local Community Connectors - £750
Human Resources
Attendance The annual target is to not exceed an absenteeism rate of more than 6.95 average days per employee per year. Q3 indicated that we are broadly within target for the time of year. The top short-term absence reason was the Cough/Cold/Flu/Viral category which is anticipated during the winter months.
Our performance indicators to date indicate 100% of employees rate our employee assistance/welfare services as good or excellent.
Update on our Workforce Development Strategy Actions The Council’s ‘My Review’ development scheme has recently been evaluated and employee feedback indicates that it has been well received and is working well.
2.0 REGULATORY SERVICES
2.1 Updates on key priorities
Environmental Health and Licensing
Envirocrime The covert operation carried out between November 2019 – January 2020 was a success, with footage of offences being obtained enabling Officers to trace offenders. A large fine was issued for fly-tipping, a fixed penalty for domestic duty of care (where someone paid a third-party to remove waste which was subsequently fly-tipped) and two fixed penalties for littering offences. All fixed penalties have been paid, proving an appropriate and cost-effective way to deal with low-level environmental offences.
Fly-tipping figures are high with 224 fly tips being removed in January 2020. Four fly- tipping cases have been logged for investigation.
Other envirocrime figures for January 2020 are:
Abandoned vehicles - 7 Dog fouling - 3
Food and Safety In January we delivered a full day Foundation Certificate in Food Safety course, with ten candidates from various catering premises across the district, who all passed with flying colours and took the advantage of networking and discussing issues with food inspectors.
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This year there are two new family music events at Chillington Hall and we have convened a safety advisory group meeting with the organisers, the venue and Police and Fire service.
We have been working with the Food Standards Agency to ensure safety of the food chain. Examples include one company being implicated in a national outbreak of e- coli. Our investigations revealed no cause for concern for the food business in this District.
Animal Welfare In October 2018 The Animal Welfare (Licensing of Activities involving animals) (England) Regulations 2018 came into force. The new Regulations placed more stringent conditions on businesses undertaking activities involving animals such as animal boarding, doggy day care, dog breeders, horse riding establishments and pet shops.
Over the past 12 months nearly 30 boarding/day care licences have been issued under the new regulations. Four premises had their licence applications refused and will need to put in new applications once they have met the minimum conditions. One business within the district Lucknow Kennels had their Licence application refused following inspection due to the poor conditions found on site. The business was subsequently prosecuted for these poor conditions in January of this year. At court they pleaded guilty to eight charges. The two owners were sentenced to £200 per offence totalling £1600 each, plus costs and victim surcharge. Their total bill was £2741.23.
Environmental Protection In January 2020 a Part B Permit was issued under the Environmental Permitting Regulations 2010 to the new Gestamp factory at Four Ashes. This followed approximately six months of officers working closely with staff at Gestamp to ensure that they properly regulated when work starts at the factory.
A Housing Improvement Notice has been served on a landlord at a rented property due to excess cold. Some of the windows at the property are poorly fitted allowing uncontrollable drafts to enter the property. The notice requires the landlord to take any necessary action to ensure the gaps around the windows are correctly fitted and seal.
Three Community Protection Notices (CPN’s) under the ASB Crime and Policing Act 2014 have been served so far this year. They have been served on low-level nuisance issues covering dog barking, odour from dog kennels and smoke/odours from solid fuel burning appliance.
Licensing Since the last report in November 2019, we have seen the cancellation of the Midland Game Fair Licence at Weston Park, as the company has entered insolvency.
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Staff have undertaken a number of enforcements, especially around public houses owned by a group from Birmingham. One such pub owned by the outlet, has had a number of enforcement issues resulting in written warnings.
The usual number of general applications have also been dealt with since the last report.
3.0 BUSINESS TRANSFORMATION (ICT & Business Change)
3.1 Update on key priorities
The Council’s Business Transformation Programme (focussed on enabling more staff to work agile and more services to be delivered digitally) continues to be delivered:
Over 180 laptops have been deployed. Weekly agile ready delivery boards held with all service areas, to ensure all teams are ready when the Community Hub construction starts. 3 (digital) service reviews have been undertaken leading to action plans.
3.2 Update on operational priorities
Office 365 implementation has been achieved. There are more features to be added for users in the coming months. The intranet “The Core” has been replaced with a new site using SharePoint Online. Room bookings and staff directory have also changed, to promote agile working practices.
4.0 WELFARE SERVICES (including customer services)
4.1 Updates on Key Priorities
Council Tax The Council remains on course to achieve a collection rate in excess of its target of 98.0% for both Council Tax and Business Rates.
The collection rate for Council Tax as at 31 January 2020 is 93.8%, £62.1m collected against a total debit of £66.2m.
The collection rate for Business Rates stood at 89.8%, £25.0m collected against a total debit of £27.8m.
Single Person Discount Review In January and February, the Council sent review letters to residents who are getting a 25% Council Tax discount to check that they are still eligible for the reduction. The discount is awarded to households where there is only one adult living at the property.
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We know that most claims are genuine, but some people are getting the discount when they are not entitled to it – perhaps because they haven’t told us that they are no longer the only adult in the property.
Capita Local Government Services has been appointed to carry out a comprehensive review. They will work with Experian, the credit reference agency, using up-to-the- minute data-matching technology to identify where people are possibly claiming a discount on their Council Tax to which they are not entitled.
Housing Benefits Since 1 April 2019, the team has processed 790 new claims for Housing Benefit and Council Tax Support in an average of 15 days. During the same period 12,782 changes in circumstances have been processed in an average of 5 days. For the financial year 2018/19, South Staffordshire Council paid out circa £18m in Housing Benefit. The Local Authority receives a direct subsidy from Central Government of 100% to cover most of the qualifying expenditure, but there are certain areas of benefit spending which attract a lower rate of subsidy. The final subsidy claim for 2018/19 was extensively audited by Grant Thornton who determined that our claim was accurate and no adjustments needed to be made.
Discretionary Housing Payments Since 1 April 2019, £79,340 has been paid out in Discretionary Housing Payments (DHP) to help prevent homelessness; with a further £3,500 committed spend until the end of March. To date there has been 170 applications for a DHP and 60 of those paid has been to support residents to move to more suitable accommodation. A third of all applications is because of a shortfall in rent due to the property having more bedrooms than they require under the legislation.
Universal Credit (UC) Universal Credit has now fully rolled out across South Staffordshire for all new claims. The latest figures from the Department for Work and Pensions report that as at the end of November 2019, there were 1,949 households in South Staffordshire on Universal Credit, and 4,400 still in receipt of legacy benefits. Citizens Advice are providing support to make a claim and are available at the council offices in Codsall every Thursday. Our Welfare Support Team are supporting those who are struggling to meet their payments of rent and Council Tax and 43% of our Discretionary Housing Payment awards have been paid to residents in receipt of Universal Credit. Budgeting advice is being provided and signposting where required to ensure residents are supported to manage their monthly payments and avoid getting into debt.
Building Better Opportunities The extension to the Building Better Opportunities programme started on 1 January 2020 and runs until September 2022. The targets are broadly similar to those for the original programme however the customer journey has been improved and an Employment and Training hub is being developed to provide a tailored plan for those participants who are ready to begin the transition to look for work.
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Disabled Facilities Grants Millbrook Healthcare deliver the SILIS (Supported Living in Staffordshire) contract across Staffordshire on behalf of 6 of the district and borough councils. For the financial year 2019/20, a total of £758,214 has been spent on completed works with further adaptions costing £339,992 approved and due to be completed by 31 March 2020.
Housing and Welfare Support Housing applications continue at a steady pace with an average of 20 per week. The main reasons for applications are due to Section 21 notices issued by private landlords who want to regain possession of their property. The other main reason is due to relationship breakdowns.
The following table illustrates the number of live applications, and the banding into which they have been placed.
Housing Register – as at 31 January 2020 Banding High 48 Medium 207 Low 125 Total 351
Available Properties All nominations for the first phase of the new Essington development have now been completed, and we are informed that the next phase is due shortly. We are waiting for news from Bromford Housing to confirm what type of properties will become available for nomination.
Swallow Place Penkridge is the new build sheltered scheme for over 55’s. The scheme is owned by Walsall Housing Group and comprises of 65 flats. Many of these flats have been allocated through shared ownership but 20 of them were offered to South Staffordshire Council for applicants from the register with a local connection to Penkridge and a housing need.
To date there have been six successful nominations from the Council for the flats. Work continues to stimulate more interest in the properties.
Homelessness The team maintains its target of preventing homelessness wherever possible, and South Staffordshire Council has not been required to accept the legislative full duty to re-house any homeless applicants. To date, all homeless applicants have received advice to prevent their impending homelessness or they have been offered alternative accommodation through the nomination process or as a result of a direct offer from South Staffordshire Housing Association. The new Bromford properties in Essington have also helped prevent some potentially homeless situations.
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Stay–Safe Since in April 2019, the Council has received 32 referrals for the installation of security equipment to keep victims of domestic abuse safer in their own homes, potentially reducing the need to use refuge accommodation and alternative re- housing. The referrals are generally received from the Police, and the work can cover all different tenures from owner/occupiers, private tenancies and housing association tenants. The scheme goes from strength to strength and meets government requirements to provide greater support for victims of abuse.
Safeguarding A new District Business Plan for Safeguarding is being developed outlining outcomes for the South Staffordshire Council.
The Domestic Abuse Policy for South Staffordshire Council is being updated and will be introduced shortly with refresher training for staff. A Domestic Abuse Champion is to be identified as an initial contact point within the Council.
Information for taxi drivers around safeguarding is being updated specifically on identifying the signs of child sexual exploitation and how to report concerns.
Customer Services Activity The customer services team have managed the following activity between October and December 2019.
Oct-19 Nov-19 Dec-19 Face to Face Visits 223 204 144 Telephone Calls 5,685 5,978 4,045 Emails 492 536 437 TUO's 83 90 72 First Contact Resolution 81% 87% 82% Customer Services Compliments and Comments We have no comments for the service over the Quarter and 8 compliments.
We have always been helpful, sympathetic & professional every time she has called us. We are simple to deal with and it’s a credit to us. Said how lovely it is to deal with us, we always make things really easy and are helpful. We are so much better to deal with than others
Gov Delivery In December we sent 10 bulletins in total. Our engagement rate (the number of customers who open and/or click on links within bulletins over a 90 day period) was 65.6%, an improvement of 0.9% on the previous month.
Our overall Impression rate (Total number of bulletin open and clicks) increased by 10,700 to 110,000 in December.
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Our subscribers have also increased again in December. Successful bulletins include:-
The Bulletin ‘Making Council Tax Easier’ was sent to make people aware of the correct place to access council tax services online. We had 19 clicks on the link within the email for My Account and 16 people signed up for My Account on the day it was sent. The daily My Account sign up figure is usually in single figures so this was a positive step for online access to services. The Waste and Recycling Christmas Update achieved the highest click rate since October at 23%. 453 clicks in total, 404 of those being on the link to the calendar.
5.0 COMMUNITY SERVICES
5.1 Updates on Key Priorities
Waste & Recycling Christmas and New Year collections were completed with minimal disruption to residents. Additional collections were made on two Saturday’s over the Christmas/New Year period and residents were notified via the Guide to Recycling and Waste Collection, delivered to all properties during November/December 2019, in addition to communications via our website and social media channels.
Garden waste collections recommenced on 13 January 2020 and (real) Christmas trees will be collected at the kerbside for a two-week period through our ‘Treecycle’ campaign. Last year 500 real Christmas trees were collected and composted locally through the scheme.
The number of missed bins reported during December 2019, a key performance indicator for the service, remained low: on average across the three principal waste streams, the number was recorded as 11 per 100,000 collections.
Working with neighbouring authorities that comprise the Staffordshire Waste Partnership, we will shortly be relaunching our ‘Metal Matters’ campaign in conjunction with Alupro, the aluminium packaging recycling association. The aim is to promote awareness of the range of household metal packaging that we can accept in the blue bin as part of our kerbside recycling scheme.
During the first week of January 2020 we surpassed, since April 2019, 1000 bulky waste collection bookings via the Council’s My Account function. The service continues to enable residents to book a bulky waste collection with minimal effort at their own time and convenience.
Bereavement Services During November and December 2019 and January 2020, across the two cemeteries, 12 lawn burials, 12 burials of cremated remains and two scatterings of cremated remains were carried out. Income for the two sites for November to January (including memorial permit applications and sales of pre-purchased plots), has 8
Page 16 of 76 increased from £22,102.67 in 2018/19 to £27,238.60 in 2019/20, which is an increase of £5,135.93 (23.2%).
So far for February 2020, we have three bookings for lawn burials and one booking for a burial of cremated remains, which have generated an income of £4,405.00.
Nov & Dec 2018 – Jan 2019 Nov & Dec 2019 – Jan 2020 Sytch Lane £14,907.68 £14,903.60
Strawberry Lane £7,194.99 £12,335.00
Total £22,102.67 £27,238.60
Customer satisfaction rates for January to December 2019 show that 98.9% of people that returned the survey answered the questions ‘excellent’ or ‘good’.
The latest Review magazine includes an article about the 10-year anniversary of the opening of Sytch Lane Cemetery, which was on 15 December 2019. The article also includes useful information on things such as how to register a death and where you can go for advice and support in the local area.
To mark the 10-year anniversary, we had a logo created and ‘thank you’ cards designed, which we sent out to all of the funeral directors, churches and Parish Council’s that have supported us and worked with us since the cemetery opened in 2009.
Street Scene Two new starters will be commencing on 10 February 2020, as part of the Team. Our Tree Operatives have now completed the removal of the trees at the Council Offices, in readiness of the commencement of the Hub work.
Leisure and Facilities The current energy costs are now starting to show the benefits of the Powerstar and FIT payments with a reduction of £4,500 in electricity charges up to period 9 on last year.
Baggeridge Country Park The Country Park continues to perform well with income up by over £9,000.
The Tender for the new play area at the Country Park is currently ongoing, the closing date being 31 January 2020. This is being procured via the County Council and ESPO Framework.
Leisure Centres
The financial performance of our leisure centres is set out in the table below:
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April - March April - April - ALL LEISURE CENTRES Original December December Variation Variance Budget Budget YTD Actual YTD YTD £ £ £ £ % Employees (ex Agency) 1,335,800 1,000,230 1,008,907 8,677 0.87 Agency Staff 212,000 158,940 166,287 7,347 4.62 Other Direct Expenses 211,400 162,830 165,664 2,834 1.74 Joint User Recharge 488,900 366,750 366,756 6 0.00 Total Operating Costs 2,248,100 1,688,750 1,707,614 18,864 1.12 Total Income -2,298,600 -1,678,450 -1,774,744 -96,294 5.74 Operating Cost Less Income -50,500 10,300 -67,131 -77,431 -751.75 Service Team Admin 164,560 124,216 113,346 -10,870 -8.75 Financing Costs 57,900 43,470 41,850 -1,620 -3.73 Net General Fund Charge 171,960 177,986 88,066 -89,920 -50.52 Income (% of Operating Costs) 102.25% 99.39% 103.93% 4.54% Income (% of Total Costs) 93.04% 90.41% 95.27% 4.86%
Centre Performance remain strong, with income as a percentage of operating costs at period 9 being 103.93% against 98.99% for the same period last year.
Membership at the centres is positive, with total membership at 3,803, marginally down on the same period last year. However, length of stay is increasing from an average of 12.6 months in December 2019 to a current figure of 13.2 months. At December 2019, membership income is at £798,826.
Swim Academy membership is at 2,189 members, up by 48 on last year; this is despite a drop in Swim Academy membership numbers at Penkridge, due to the pool closure. The learn to swim programme is an area of focus for the Swim Coordinator.
Programming and Promotions The Centres are about to commence a health kick-starter programme. This is designed to drive a life-style change in its clients.
There has been significant social media activity with Christmas videos, video classes and Facebook boosts. There has been a significant number of posts with customers highlighting their new year fitness pledges.
The service will shortly be working with the Penkridge Medical Practice on a programme focusing and a referral programme focusing on slips trips and falls for the elderly members of the community.
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Emergency Planning Recent work has focused on the forthcoming exercises – CALLISTO (2) and FORTITUDE.
Resource planning has taken place with relevant staff for the week-long live exercise in March 2020. The Authority has committed to a live-play rest centre exercise as part of the wider exercise.
The live-play Rest Centre exercise on 12 March 2020, will involve up to 25 volunteers being displaced and looked after by the Council. We are using a number of on-call staff and 4 trained volunteers.
There will be a simultaneous Emergency Planning Group to tactically manage the problems, with Director-on-Call and Forward Control Officer involvement in all. Exercise Fortitude will also test all on-call capability and staff within the Council.
An Emergency Planning Group will sit throughout, with a Director-on-Call deployment to Police HQ. The storyboard has been built to enable the Council to contribute to the exercise and test the internal elements that have been identified. Forward Control Officers are supporting the multi-agency live-play at RAF Cosford to gain experience.
6.0 PLANNING & BUSINESS ENTERPRISE
6.1 Strategic Planning
Local Plans The 8-week public consultation on the Spatial Housing Strategy and Infrastructure Delivery stage of the Local Plan review ended on 12 December 2019. The Local Plans Team received over 4,000 representations and a number of petitions and these are currently being recorded and analysed by the Team. We received 59 representations from 55 statutory bodies and 225 representations from 43 planning agents and/or developers. These comments will be uploaded to the website in the next week or so.
The remaining representations are from members of the public and they will need to be read and redacted to remove personal details, before they are published online. This may take a few weeks, given the volume of representations and the need to adhere to data protection requirements. Despite the consultation being about broad locations for housing growth, the majority of representations from the public are site specific. All new representors will be added to the Local Plans database and will be kept informed about the progress of the Local Plan review.
The Local Plans Team is now working towards the development of Preferred Options with Members and undertaking evidence gathering and initial site assessments to inform the scheduled Member Workshops.
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Housing Strategy Continuing the focus on housing delivery, our consultation on a revised Affordable Housing and Housing Mix Supplementary Planning document (SPD) also concluded in December 2019. The SPD will help us to continue our strong track record of providing affordable housing across the District. This update reflects recent changes to national policy on affordable housing and other matters and strengthens the Council’s position when negotiating on housing sites that come forward in the District. We are now considering the comments received through the consultation and whether any changes need to be made to the document, before progressing to adoption by Full Council.
Energy Conservation
South Staffordshire Warmer Homes To help us find those most vulnerable residents, who are cold in their homes, this new year we are offering free Home Energy Checks and free Boiler Checks. The Energy Checks can help lower energy usage and together with the Boiler Checks, will ensure those most vulnerable have their boilers serviced properly to reduce carbon monoxide health risks. Both are available through Warmer Homes for those on lower incomes, young families, the elderly and those in ill health. Residents can apply at https://bit.ly/2L93LAH or can call 0800 193 1902 or email [email protected].
As part of our work, Warmer Homes has also been helping residents in the District, install a free gas connection and gas central heating where the neighbouring properties have mains gas heating. If you or someone you know doesn’t have central heating in their home and they’re using electric heaters, electric panels, gas fires or solid fuel fires, they can contact South Staffordshire Warmer Homes to find out more. Call Freephone 0800 193 1902 or email [email protected]
Planning Enforcement
The ‘Your Place’ Challenge Panel is continuing to review the Planning Enforcement policy along with other planning enforcement matters and a revised policy is in progress. Recommendations from the Panel will be in place from Spring 2020.
There remain ongoing issues with our software and as a result, we are currently unable to confirm the exact figure in relation to performance and will do so shortly. There has clearly been a significant improvement in planning enforcement, as a result of extra staff and a targeted approach to dealing with new cases. The number of planning enforcement complaints in the first two weeks of 2020 has been manageable and the triage system implemented has been effective in screening out non-planning related complaints therefore, reducing the number of complaints being logged. Between 1 January 2020 and 31 January 2020, 20 planning enforcement cases have been logged for investigation compared to 33 for the same period last year.
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Regeneration Team
Social Media Update Focus areas have been the advertisement of the Round-Table events for the Business Survey, the first of which was held in December 2019, with more to follow in January and February.
Energy Saving for Businesses Quarter 3 has been a significant time for planning of the ‘B Energy’ project launch in order to make sure the project is ready for market.
The launch has now taken place in January 2020, with first posts now on Social Media and the new webpage live on the Business Hub website.
The designs behind the B Energy pages and adverts have been done in a way to promote the ease of switching provider and the benefit of doing so. In addition, to saving businesses money within the District, we are also looking at how we can promote further ‘green’ ways of thinking. Each business that switches, will be offered a free energy review and we have also pledged to plant a tree within the District. The target areas we have agreed to focus on for January are our own commercial sites and tenants and fast food outlets. We would like to achieve a level of understanding as to where we best sit within the market and as such, have designed a plan accordingly, moving onto a new business sector type each month for Q3. It shall then be a period of review and feedback to plan our next steps.
Business Assists Eighty-nine businesses to date have received some level of business support from The Business Hub. One business that has received significant support is a local person wanting to open a micro-pub within the area. After discussions and wanting to step into this area of business, we explored many opportunities available to him, one of which has been to provide a pop-up bar for private functions. The business owner has experience in working in a bar, but not owning his own business, so this was a huge step for him to take and with pleasing results. Through our support, he has attended a course and business masterclasses from the Chamber of Commerce, spoken with our in-house Licencing Team to fully explore what he will need moving forward and feedback has been fantastic.
Business Survey The first of the Round-Table events to understand local business needs has taken place at Dunston Business Village and feedback received has suggested that businesses liked working in South Staffordshire, as it is ‘two hours from anywhere’. One area highlighted was the need for more business start-up support, as one business did a ‘trial and error’ method approach to marketing their business. This is something that is planned-in with the Chamber for regular Start-up Business Masterclasses planned for 2020 to support this area. Four more sessions across the District are planned for February and will help us to better focus the Council’s business support role to local needs.
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Brexit As we have now left the EU with a deal that preserves a degree of status quo whilst trade deals are negotiated, our support sessions for Brexit have been placed on-hold until matters become clearer. We are working closely with the Chamber of Commerce to find out the best time to plan our next event, but in the meantime any advisory items we are made aware of for businesses, shall be communicated via our website and Social Media.
Estates and Assets (including commercial property; Industrial Units; Hinksford)
Commercial Development We currently have 99.5% occupancy across all the industrial estates with only one unit currently available, however we are in negotiation with prospective a tenant and are confident that new tenant will be signed up very shortly to maintain full occupancy. There continues to be a good demand for industrial accommodation, and we have potential tenants interested in any future availability.
We have now secured a new tenant for the vacant office Unit at Element Court and Heads of Terms have been agreed. The tenant is an existing tenant at Element Court and the new agreement will accommodate their business expansion plans and secure their continued occupation for the long term.
The Four Ashes Enterprise Centre expansion project to provide in excess of 35,000 square feet of new industrial units has been delayed as regrettably the main contractor went into Administration in December 2019. The site is now being administrated by KMPG and the Council are working with them to novate the existing contract to a different construction company or to retender the contract. The new units are attracting interest from potential new tenants with terms agreed with three new tenants for a total of 12,000 square feet. In addition, discussions are well advanced with a further four tenants for a further 7,660 square feet and marketing will commence when the construction works restart.
As reported previously, the extension to Unit 4E Station Road, Four Ashes is progressing well and the planning application will be presented to Planning Committee on 18th February. Work has also started on preparing the tender documentation. It is anticipated subject to planning consent that works will commence in early spring 2020 with a 12-week programme. Terms have been agreed for an Agreement for Lease document which is with solicitors for completion and will provide the tenant with the opportunity for expansion to secure their long- term future and provide 25 new jobs.
Extensive work continues with our consultants on the redevelopment options for Wombourne Enterprise Park. Site investigation works and surveys to allow detailed plans are being produced for the proposed planning application, which is anticipated will be submitted shortly. We are working with our consultants to undertake consultation in the locality before the application is submitted.
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Building Control & Land Charges All performance indicators in both the Building Control and Land Charges partnerships continue to be met.
There has been a request by South Derbyshire District Council to join the Land Charges Shared Service Partnership hosted by Lichfield District Council. A separate report will be brought through the decision-making process over the next few weeks.
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SOUTH STAFFORDSHIRE COUNCIL
COUNCIL – 25 FEBRUARY 2020
AUDIT & RISK COMMITTEE UPDATE
COUNCILLOR JOHN MICHELL – CHAIRMAN OF THE AUDIT & RISK COMMITTEE
1. SUMMARY OF PROPOSALS
To update Council on the work undertaken by the Audit & Risk Committee for the period from 3 December 2019 to 25 February 2020.
2. RECOMMENDATION
2.1 That Council notes the contents of the report.
3. INFORMATION
3.1 The following meetings have taken place
11 February 2020
Internal Audit Progress Report – Members were informed of progress against the Internal Audit and Counter Fraud Plan for 2019/20.
External Audit Progress Report and Sector Update – the Council’s External Auditors, Grant Thornton, provided the update report to January 2020.
Quarterly Treasury Management Report Quarter 3 – Members noted the Quarter 3 (1 October 2019 to 31 December 2019) treasury management position as set out in the report.
3.2 Other Matters for Information
The Audit & Risk Committee is next due to meet on 21 April 2020.
4. BACKGROUND PAPERS
Reports of Audit & Risk Committee for 11 February 2020.
Report prepared by: Lorraine Fowkes – Director Legal and Governance
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Page 26 of 76 SOUTH STAFFORDSHIRE COUNCIL
COUNCIL – 25 FEBRUARY 2020
LICENSING AND REGULATORY COMMITTEE UPDATE
COUNCILLOR WENDY SUTTON – CHAIRMAN OF THE LICENSING AND REGULATORY COMMITTEE
1. SUMMARY OF PROPOSALS
To update Council on the work undertaken by the Licensing and Regulatory Committee for the period 3 December 2019 to 25 February 2020.
2. RECOMMENDATION
2.1 That Council notes the contents of the report.
3. INFORMATION
3.1 23 January 2020
Operator Licence Applications – Committee considered the applications from two applicants to hold licences as Operators of Private Hire Vehicles. Both applications were granted.
3.2 Other Matters for Information
The Committee is next due to meet on 19 March 2020.
4. BACKGROUND PAPERS
Reports and Minutes of Licensing and Regulatory Committee 23 January 2020.
Report prepared by: Lorraine Fowkes – Director Legal and Governance
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SOUTH STAFFORDSHIRE COUNCIL
COUNCIL – 25 FEBRUARY 2020
OVERVIEW AND SCRUTINY COMMITTEE UPDATE
COUNCILLOR DAVE LOCKLEY – CHAIRMAN OF THE OVERVIEW AND SCRUTINY COMMITTEE
1. SUMMARY OF PROPOSALS
To update Council on the work undertaken by the Overview and Scrutiny Committee for the period 3 December 2019 to 25 February 2020.
2. RECOMMENDATION
2.1 That Council notes the contents of the report.
3. INFORMATION
3.1 7 January 2020
Potential Charges for Garden Waste Collections – Members received a report on the proposed Key Decision; which was subject to scrutiny prior to being made. Following a lengthy debate, Members endorsed the proposed decision of the Cabinet Member.
21 January 2020
Council’s Medium-Term Financial Strategy and 2020/21 Budget – Members considered the proposed budget prior to consultation commencing and the Medium- Term Financial Strategy of the Council.
Update Report on Challenge Panels – Members were updated by the Challenge Panel Chairmen in respect of the work currently being undertaken by each of three Challenge Panels.
Work Programme 2019/2020 – confirmation of progress against the programme and changes accommodated within the programme.
3.2 Other Matters for Information
The next scheduled meeting is 24 March 2020.
4. BACKGROUND PAPERS
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Reports and Minutes of Overview and Scrutiny Committee of 7 and 21 January 2020.
Report prepared by: Lorraine Fowkes – Director Legal and Governance
Page 30 of 76 SOUTH STAFFORDSHIRE COUNCIL
COUNCIL – 25 FEBRUARY 2020
PLANNING COMMITTEE UPDATE
COUNCILLOR TERRY MASON – CHAIRMAN OF THE PLANNING COMMITTEE
1. SUMMARY OF PROPOSALS
To update Council on the work undertaken by the Planning Committee for the period from 3 December 2019 to 25 February 2020.
2. RECOMMENDATION
2.1 That Council notes the contents of the report.
3 INFORMATION
3.1 Meetings taking place
17 December 2019
The meeting considered 5 planning applications. 1 application was deferred, 2 applications were refused having been recommended for approval and 2 applications were approved as recommended.
The regular monthly update report was received informing Members on training, changes in policy, planning appeal decisions etc. 2 appeal decisions had been received; both were dismissed.
28 January 2020
The meeting considered 2 planning applications; both were approved as recommended.
The monthly update report was received with Members confirming that performance was within the Government’s thresholds across all areas. There had been one appeal decision, which had been dismissed.
18 February 2020
At the time of writing, the Committee were due to consider 4 applications with three recommended for approval and one for refusal. A verbal update will be given at the meeting.
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Members received the monthly update report. There were two appeal decisions, one had been dismissed and the other had been allowed relating to a Rural Exception Site in Oaken.
4. BACKGROUND PAPERS
Reports and Minutes of Planning Committee for 17 December 2019, 28 January and 18 February 2020.
Report prepared by: Lorraine Fowkes – Director Legal and Governance
Page 32 of 76 SOUTH STAFFORDSHIRE COUNCIL
COUNCIL – 25 FEBRUARY 2020
STANDARDS AND RESOURCES COMMITTEE UPDATE
COUNCILLOR BARRY BOND – CHAIRMAN OF THE STANDARDS AND RESOURCES COMMITTEE
1. SUMMARY OF PROPOSALS
To update Council on the work undertaken by the Standards and Resources Committee for the period from 3 December 2019 to 25 February 2020.
2. RECOMMENDATION
2.1 That Council notes the contents of the report.
3. INFORMATION
3.1 16 January 2020
Workforce Employment Trends – Members received a report from the Corporate Support Manager HR and Members noted the contents.
Corporate Health and Safety Update – Members received the Environmental Health and Licensing Team Manager’s report setting out how the Council meets its obligations with regard to Corporate Health and Safety.
Update Report on Work Programme/Complaints – Members received the Monitoring Officer’s report updating on performance against work programme and complaints made both under the Code of Conduct regime and the Council’s Complaints Procedure; Members noted the position.
3.2 Other Matters for Information
The next meeting of the Committee is on 12 March 2020.
4. BACKGROUND PAPERS
Reports and Minutes of Standards and Resources Committee of 16 January 2020.
Report prepared by: Lorraine Fowkes – Director Legal and Governance
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Page 34 of 76 SOUTH STAFFORDSHIRE COUNCIL
COUNCIL – 25 FEBRUARY 2020
WELLBEING SELECT COMMITTEE UPDATE
COUNCILLOR JANET JOHNSON – CHAIRMAN OF THE WELLBEING SELECT COMMITTEE
1. SUMMARY OF PROPOSALS
To update Members on the work undertaken by the Wellbeing Select Committee for the period 3 December 2019 to 25 February 2020.
2. RECOMMENDATION
2.1 That Members note the contents of the report.
3. INFORMATION
3.1 Date of Meeting – 10 December 2019
Update on Health Matters – Members received an update on the County Council’s Prevention Programme; giving rise to a number of local issues being discussed.
Update on Space Programme Summer 2019 – The Community Safety Officer provided an update to Members on the uptake and outcomes from the programme; Members suggested that community transport be looked at for next year’s programme.
Work Plan 2019/20 - Members noted progress against the work programme for 2019/20.
Together We’re Better Staffordshire and Stoke-on-Trent Health and Care Partnership Newsletter – Members received the newsletter for information.
Date of Meeting – 4 February 2020
Primary Care Networks Update – Members received an update from the Primary Care Commissioning Manager from Staffordshire CCG.
Page 35 of 76 Breast Screening in South Staffordshire – Following the recent siting of the mobile screening unit at Codsall, Members received an outcomes update; it was pleasing to note that screening rates had increased.
Work Plan 2019/20 - Members noted progress against the work programme for 2019/20.
3.2 The next meeting of the committee is due to be held on 7 April 2020.
4. BACKGROUND PAPERS
Reports to Wellbeing Select Committee of 10 December 2019 and 4 February 2020.
Report prepared by: Lorraine Fowkes – Director Legal and Governance
Page 36 of 76 SOUTH STAFFORDSHIRE COUNCIL
COUNCIL – 25 FEBRUARY 2020
THE COUNCIL’S MEDIUM TERM FINANCIAL STRATEGY AND 2020/21 BUDGET
REPORT OF THE CORPORATE DIRECTOR RESOURCE (AND S151 OFFICER)
LEAD CABINET MEMBER – COUNCILLOR BRIAN EDWARDS MBE, LEADER OF THE COUNCIL
1. Summary
1.1 This report sets out the Medium Term Financial Strategy (MTFS) for the period 2020/21 to 2024/25, projected revenue expenditure for 2019/20, revenue estimates for 2020/21 and the capital programme for 2020/21 to 2024/25.
1.2 The proposals present a balanced budget for a five year period to 2024/25 by utilising reserves. This represents an improvement from the previous MTFS which presented a balanced budget for three years.
1.3 On 10 December 2019, Cabinet members considered budget options. These were incorporated into the draft 2020/21 budget and MTFS following a wider Member briefing on 9 January 2020. The Council’s Overview and Scrutiny Committee considered these proposals on 21 January 2020 and public consultation on the proposals ran from 15 January 2020 to 10 February 2020. No significant changes have been made to the budget as contained in this report as a result of the steps taken to scrutinise and consult on these proposals.
1.4 The Provisional Local Government Finance Settlement was announced on 20 December 2019 and published on 6 February 2020. The details of these announcements were as expected and have been accounted for within this report.
1.5 It is proposed that members are asked to make use of the flexibility to increase Council Tax by £5 and utilise £56,000 of General Fund revenue reserves in 2020/21.
2. Recommendations
2.1 It is recommended that:
a) Members approve this report together with the Medium Term Financial Strategy, projected expenditure for 2019/20, revenue estimates and capital programme for 2020/21; b) Council pass a resolution in the form attached at Appendix 5; c) the Council notes the report of the Chief Finance Officer, on the robustness of the estimates and the adequacy of the Council’s reserves, attached at Appendix 6 d) the Leader of the Council be authorised to make any necessary amendments to include any late information or to correct any errors or omissions.
Page 37 of 76 3. Summary Impact Assessment
Do these proposals contribute to specific Council Plan objectives?
The budget is the financial expression of the Council’s priorities and therefore underpins all of the fundamental themes included within the Council Plan. Yes Incorporating appropriate key assumptions into the POLICY/COMMUNITY calculation of the budget requirement and the IMPACT preparation of the MTFS ensures that both are fit for purpose.
Has an Equality Impact Assessment (EqIA) been completed?
Decisions about assumptions underpinning the No preparation of the MTFS but do not impact on equality issues.
SCRUTINY POWERS Overview & Scrutiny Committee on 21 January 2020 APPLICABLE KEY DECISION No – Council decision TARGET COMPLETION/ March 2020 DELIVERY DATE
The report is concerned with the Council’s overall budget and the financial implications thereof.
FINANCIAL IMPACT Yes Finance professionals work in collaboration with budget holders to prepare budgets to enable services to be delivered in line with corporate priorities.
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The Council has a legal obligation to set a balanced budget (s32 of the Local Government Finance Act 1992) and must make three calculations namely:
• an estimate of the Council’s gross revenue expenditure; • an estimate of anticipated income; and • a calculation of the difference between the two.
The amount of the budget requirement must be sufficient to meet the Council’s budget commitments and ensure a balanced budget. The 2020/21 budget requirement must leave the Council with adequate LEGAL ISSUES Yes financial reserves. The level of budget requirement must not be unreasonable having regard to the Council’s fiduciary duty to its Council Tax payers and non-domestic rate payers.
A lawful Council Tax is required to be made on or before 11 March 2020.
Section 151 of the Local Government Act 1972 places a general duty on local authorities to make arrangements for ‘the proper administration of their financial affairs'.
The proposed approach in this report meets those duties.
The Council faces many risks to the successful delivery of a balanced budget. The strategic risk register records these risks and they are monitored in accordance with the Corporate Risk Strategy.
OTHER IMPACTS, RISKS & The key risk is: Yes OPPORTUNITIES Budget pressures, increased income volatility and uncertainty as to the future of local government finance – The budget, the MTFS and the financial stability of the Council is severely impacted by reductions and/or changes in the way in which local government is financed.
IMPACT ON SPECIFIC No WARDS
Page 39 of 76 4. Background
4.1 The Medium Term Financial Strategy (MTFS) puts in place a strategic approach to the planning of the Council’s spending and provides the framework for the planning of the Council’s revenue and capital spending each year via the annual budget. The MTFS covers the five years 2020/21 to 2024/25 and highlights the various financial challenges facing the Council over this period.
4.2 It must be noted that the future of the system of local government finance remains uncertain. The Government has committed to re-assess the baseline need for spend in each local authority. This was due to take place in 2019 but has been pushed back to 2020. This could have a significant impact on the Government’s calculation of the Settlement Funding Assessment for (and therefore the amount of funding available to) this Council. This would impact from 2021/22 and remains a strategic risk for the Council.
4.3 Under Government plans, the share of business rates retained locally by councils (districts and county) will rise from 50% to 75% in 2021/22. We await confirmation of how that local share will be distributed.
4.4 The Local Government Finance Settlement (LGFS) provides each Council with a Settlement Funding Assessment (SFA). The SFA has two parts: Revenue Support Grant (RSG) and Baseline Funding Level (BFL) which represents the baseline level of business rates the Council will retain. Anticipated settlement figures for 2020/21 have been built into this report.
4.5 This paper:
Sets out the annual budget setting cycle and timetable
Re-visits the previous Medium Term Financial Strategy (MTFS) (as at February 2019)
Sets out the 2020/21 budget proposals and the updated MTFS for the period 2020/21 to 2024/25
Sets out the key changes to the Council’s financial plans
Provides an analysis and explanation of the key changes and assumptions underpinning the updated MTFS
Sets out the updated Capital Programme
Reviews the Council’s reserve balances
Page 40 of 76 5. The Annual Budget Setting Cycle and Timetable
5.1 The construction of the budget and the MTFS involves a number of key stages;
• Establishment of the base annual budget and MTFS;
• Identification of budget risks and opportunities as part of ongoing budgetary control which includes formal monthly and quarterly reporting;
• Assembly of savings, efficiencies and additional budget requirements through the Resource Planning and Prioritisation process;
• Review Draft Budget – Cabinet 14 January 2020;
• Consultation with Stakeholders 15 January 2020 – 10 February 2020
• Overview and Scrutiny Committee consider the draft budget - 21 January 2020
• Review of Final Budget – Cabinet 18 February 2020
• Formal approval by Council – 25 February 2020
6. Medium Term Financial Strategy 2019/20 – 2023/24 (approved February 2019)
6.1 The Council’s MTFS is updated annually and was previously approved for the five year period 2019/20 to 2023/24 by full Council in February 2019.
6.2 The following table sets out what, at that point, the MTFS forecast in terms of annual budget deficits and opening and closing general fund balances.
MTFS (prior year) 2019/20 2020/21 2021/22 2022/23 2023/24 £000's £000's £000's £000's £000's General Fund 7,937 6,918 4,687 2,339 290 Opening Balance (Annual Deficit) (963) (2,071) (2,078) (1,676) (1,668) Less Transfers to (56) (160) (270) (373) (373) Earmarked Reserves General Fund 6,918 4,687 2,339 290 (1,752) Closing Balance
6.3 The table shows that the previously (Feb’ 2019) approved MTFS predicted an annual deficit of £0.963 m in 19/20 rising to an annual deficit of £2.078 million by 2022/23 before reducing to £1.668 million in 2023/24.
6.4 Annual deficits require the Council to utilise its General Reserve balances. As at February 2019, the MTFS, based on the annual deficits forecast above, showed that
Page 41 of 76 the Council’s General Fund Balances would reduce from £7.937 million at 1st April 2018 to a deficit position of £1.752 million at 31st March 2024.
6.5 Updated Forecast Outturn Position for 2019/20
6.6 The outturn position for this financial year (2019/20) is forecast as at 30 September 2019 (per the Integrated Performance Management Report) to be a £0.580m deficit (after contribution from earmarked reserves). This represents a £0.439m favourable variance against budget.
6.7 As reported in the Quarter 2 Integrated Performance Management Report, service expenditure in 2019/20 is broadly in line with budget. The main reasons for the overall underspend against 2019/20 budget being higher than anticipated business rate growth (and pool retentions) and higher than anticipated interest earned on cash held due to capital programme slippage.
6.8 As a result, the opening position of General Funds will be better than forecast within last year’s MTFS.
7.0 The Medium Term Financial Strategy (MTFS) for the period 2020/21 - 2024/25
7.1 The MTFS has been updated for the period 2020/21 to 2024/25 to model the impact of changes in assumptions, budgetary pressures, reductions in funding and savings. These matters are explained further in section 7.13.
7.2 The updated summary MTFS for the period 2020/21 to 2024/25 is as follows:
INCOME AND EXPENDITURE ACCOUNT AND MEDIUM TERM FINANCIAL PLAN
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Budget Forecast Estimate Projected Projected Projected Projected Outturn £000s £000s £000s £000s £000s £000s £000s
Total Service Expenditure 12,843 12,567 13,415 14,661 14,873 15,048 15,182 Capital Financing and Treasury (424) (585) (495) (147) 208 207 221 Net Expenditure 12,419 11,982 12,921 14,514 15,081 15,255 15,403
Funding: Total External Funding (11,456) (11,315) (12,865) (13,039) (13,292) (13,733) (14,017) Forecast Annual Surplus / (Deficit) (963) (667) (56) (1,475) (1,789) (1,522) (1,386) Total Funding (12,419) (11,982) (12,921) (14,514) (15,081) (15,255) (15,403)
General Revenue Reserves Opening Balance 1st April 8,452 8,452 7,871 7,815 6,340 4,552 3,029 Forecast Annual Surplus / (Deficit) (963) (667) (56) (1,475) (1,789) (1,522) (1,386) Less Transfers (to)/ from Earmarked (1) (56) 87 0 0 0 0 0 Closing Balance 31st March 7,433 7,871 7,815 6,340 4,552 3,029 1,643
Note 1: Transfers to earmarked reserves represents monies set aside for specific purposes that would otherwise flow through to general fund balances.
7.3 The above table sets out how the Council’s expenditure profile will be met by a combination of external funding and use of reserves over the period.
Page 42 of 76 7.4 The updated revenue forecast for 2019/20 and the detailed MTFS is set out in full in Appendix 1.
7.5 Analysis of key changes to the MTFS – Forecast General Fund Balances
7.6 The following table sets out how the MTFS (as summarised in Section 7.2) compares to the previous MTFS in terms of forecast closing general fund balances:
General Fund* 19/20 20/21 21/22 22/23 23/24 24/25 Closing Balance £000's £000's £000's £000's £000's £000's Previous (Feb 19) 6,918 4,686 2,339 290 (1,752) n/a Updated (Feb 20) 7,871 7,815 6,340 4,552 3,029 1,643 *Note: The above excludes earmarked reserves
7.7 The above table demonstrates that this MTFS forecasts an improvement in the expected level of the General Fund Reserve in each year compared to the previous MTFS. This reflects the delay in Fair Funding Review, significant ongoing achievements in controlling expenditure effectively and embedding the Council’s Efficiency and Income projects.
7.8 The rate of forecast decline in Council General Fund balance has therefore been slowed. However, the table above still forecasts a reduction to the Council’s General Fund balance over the period.
7.9 The table shows that the 2019/20 closing position is now forecast to be much improved (£7.871 million v £6.918 million). This is due to both a more favourable outturn for 2018/19 than anticipated at Month 6 last year, and the impact of this year’s anticipated favourable variance.
7.10 It shows that the General Fund balance (which excludes Earmarked Reserves) is now forecast to total £4.552 million at the end of 2022/23 (compared to £0.290 million in the previous MTFS). It also shows that the General Fund balance is forecast to remain above minimum adequate levels (which have been set at £1.5 million) over the period to 2024/25. The budget is therefore now balanced for a five year period to 2024/25 by utilising reserves. This represents an improvement from the previous MTFS which presented a balanced budget for three years.
Analysis of key changes to the MTFS – Forecast annual deficit / surplus position
7.11 The following table sets out how the current MTFS compares to the previous in terms of annual outturn (surplus) or deficit forecasts.
MTFS Deficit 19/20 20/21 21/22 22/23 23/24 24/25 £000's £000's £000's £000's £000's £000's Previous (Feb 19) 1,019 2,233 2,346 2,050 2,041 N/A Updated (Feb 20) 580 56 1,475 1,789 1,522 1,386
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7.12 The above table shows that the current MTFS forecasts a deficit of £0.056 million in 2020/21, rising to £1.789 million in 2022/23 before reducing to £1.386 million in 2024/25.
7.13 Reconciling the current updated MTFS to the Feb 2019 Approved MTFS
7.14 Changes need to be made to the Council’s budget and MTFS to keep them up to date and robust. The table below summarises these changes. It should be noted that these adjustments should not be seen in isolation (for example not all additional income can be generated without the financing of debt, and some RPP savings are linked to cost pressures).
20/21 21/22 22/23 23/24 £’000 £’000 £’000 £’000 Deficit per MTFS (Feb 19) 2,232 2,346 2,050 2,041 Adjustments made: a) Base Assumptions 0 0 0 0 b) E&I Savings Programme (169) (186) (210) (172) c) Additional Income (422) (557) (517) (875) d) Costs pressures 677 467 754 688 e) RPP (619) (716) (784) (813) f) Changes to Funding (1,173) 395 660 885 g) Council Tax (64) (120) (173) (222) h) Financing of debt (245) 113 382 364 i) Earmarked Reserve (160) (270) (373) (373) j) Other (1) 3 0 (1) Deficit per MTFS (Feb 20) 56 1,475 1,789 1,522
The above table therefore tracks through the adjustments made to the MTFS since it was last approved in February 2019. The main changes are as follows:
a) Changes in Base Assumptions: Appendix 2 details the underlying base assumptions in relation to inflation, pay awards and pension costs.
Since the budget for 2019/20 was approved in February 2019 there has been no change in these underlying assumptions so no requirement therefore to alter any budgets in the MTFS for this reason.
b) Efficiency and Income Savings Programme: Savings previously targeted in the Council’s Efficiency & Income Savings Programme have, since the February 2019 MTFS, been included in the budget where it is prudent and appropriate to do so. Some examples included within the overall total above are;
Finance Team salary savings on casual posts arising from ongoing Debtor/Creditor review and cessation of cash deposits at the Council House. This will save upwards of £35,000 p.a. Post room savings of £9,000 p.a.
Page 44 of 76 Waste and Recycling savings on gate fees (reduced tonnage) and reduced Green waste costs saving £24,000 p.a. Within Elections savings of £21,000 p.a. realised against historically high canvassing budgets.
c) Additional Income: The MTFS recognises areas of income growth within the Council where the application of existing policies is expected to yield more income than previously assumed in February 2019. Some examples include;
Significant improved rental incomes from new and redeveloped industrial sites. This will include £126,000 for Four Ashes in 2020/21 rising to £272,000 in 2024/25, an additional £87,000 p.a. for Unit 4E at Four Ashes and £395,000 at Wombourne once redevelopment is completed in 2024/25. This additional income will be partially offset by increases in financing of debt costs. £51,000 additional income to reflect Street Scene work on behalf of Staffordshire County Council. An additional £24,000 p.a. to reflect sales income for pre-purchased cemetery plots. £90,000 (2020/21 and 2021/22) and £45,000 (2022/23) of funding to sustain the Building Better Opportunities programme. d) Costs pressures (linked to ongoing Budgetary Control) Regular budgetary control linked to the RPP process identifies a large number of required changes to individual budgets. The more significant examples of these include;
Changes in relation to Wombourne industrial estate budgets (re current tenants, upfront development costs etc) of circa £100,000 – £160,000 reducing to zero by 2023/24 (noting that this is linked with the £395k improved position noted above from 24/25). £175,000 cost/ income reductions in 2023/24 and 2024/25 representing changes in the Community Hub business case since prior year (noting that this is only the gross income line and financing costs have also reduced elsewhere). Introduction of an IT Cloud based system within Revenues and Benefits will cost £40,000 p.a. Recognition of reduced 3G pitch and other bookings at Cheslyn Hay Leisure Centre will reduce income budgets by £35,000 p.a. Additional properties have led to an approximate £18,000 p.a. increase in the BIFFA waste collection contract. Reductions in the credits available for dry recycling of approximately £25,000 p.a. Increases in depreciation charges of up to £77,000 p.a. against Service Budgets. This is a technical adjustment, reversed out in the changes to funding line (see f). e) Resource Planning and Prioritisation: The Council’s approach to strategic planning changed during 2018. ‘Service Challenge’ was replaced with ‘Resource Planning and Prioritisation’. The focus of RPP shifted to planning and prioritising resources based
Page 45 of 76 on quality conversations supported by insight into the finances, other resource considerations (eg workforce), risk and issues, performance, challenges and opportunities. The methodology worked well and has been retained for 2020/21.
RPP identified the following budget changes (over the period rather than per year) which have been included in the MTFS:
The introduction of charging residents for the collection of Green Waste is expected to achieve (net) income of £3.350 million for the Council over the life of the MTFS. It should be noted that this is predicated on a 45% subscription take up rate being achieved. Income achieved will change by circa £100,000 (over the life of the MTFS) for every 1% variation against the 45% take up target. A shared Legal Service in collaboration with Tamworth DC and Lichfield DC will drive efficiency and costs savings of £375,000 over five years. A targeted reduction in the Bad Debt provision as a result of improved debt collection practices should yield £90,000 over the MTFS. A total investment of £172,000 across the MTFS for a raft of measures in Business Transformation, all aimed to enable savings opportunities to be realised and/or customer service improved across all Services. f) Changes to funding: Indications are that the Government’s Fair Funding Review (FFR) will next year reduce the amount of business rate income we are allowed to retain locally from 2021/22. This was previously expected to impact funding levels in 2020/21 - which is no longer the case. When FFR is implemented however, it is anticipated to reduce funding by an even greater extent that that predicted in last year’s MTFS. Budget assumptions have been adjusted accordingly (further detail on which is set out in 7.15 below). g) Council Tax: The MTFS assumes Council Tax increases of the maximum currently allowable without a referendum, namely £5 per annum. The previous year MTFS had assumed 2.99% from 2021/22. h) Financing of debt: Borrowing costs and the Council’s Minimum Revenue Provision (which are monies set aside to repay capital financed by debt) will generally increase over the period reflecting the Council’s capital programme. Changes in the profiling of the capital programme will however mean that cash balances (and therefore interest income levels) will be higher in 2020/21 (and borrowing costs lower). i) Earmarked Reserves: The previous MTFS made provision to contribute to Earmarked Reserves any windfall New Homes Bonus that may have been received. There is now greater certainty in relation to the level of New Homes Bonus to be allocated - so this provision is no longer required to be reflected in the MTFS. j) There are a number of low value other adjustments and roundings.
Page 46 of 76 7.15 Business Rates Retention
7.16 A key assumption (and risk) within the budget relates to the amount of business rate funding we will retain under the system of local government finance.
7.17 The Government has committed through its ‘Fair Funding Review’, to re-assess the baseline funding level of all councils. This will impact on the amount of business rates locally we are allowed to retain from 2021/22 onwards.
7.18 At this stage we do not know the outcome of the Fair Funding Review (FFR). Early indications are however that through the FFR, that the quantum of funding that is available for local government will be increasingly allocated to those councils with Adult, Social Care and Children’s responsibilities (i.e. not District Councils).
7.19 The Council’s baseline funding level is at 2020/21 £2.403m which compares to the amount we actually retain from business rates (after growth) of £3.125m. Under FFR (expected to be in place for 2021/22) it could be a ‘full’ (where the Council would ‘lose’ all of its growth) or ‘partial’ (where the Council would lose some of its growth) ‘reset’. It is now seen as being increasingly likely that funding levels of District Councils will be ‘fully’ reset to their ‘baseline’ funding level (adjusted for grant).
7.20 On that basis, the MTFS has prudently assumed that there will be a ‘full’ (rather than ‘partial’) reset in business rates retained locally, thereby taking the Authority back closer to baseline levels (adjusted for grant). It has however also assumed that within this reset scenario not all the downside decisions that could (within a complex formula) go against the Council, do go against the Council. Simply put, the outcome of the FFR could be better or worse that that assumed within the MTFS.
7.21 It must be emphasised that all steps have been taken to make prudent assumptions, but still the outcome of the Fair Funding Review (FFR) could be better or worse for this Council. The table below summarises how sensitive the Council’s forecast position (as set out in 7.2 above) is to the outcome of the FFR:
Sensitivity Analysis: Impact of Business Rates Retention on General Fund Balance
2020/21 2021/22 2022/23 2023/24 2024/25 £’000 £'000 £'000 £'000 £'000 Partial (25%) reset and medium level baseline 7,815 6,815 5,502 4,454 3,543 Full reset per MTFS, medium level baseline 7,815 6,340 4,552 3,029 1,643 Full reset (plus lower level baseline) 7,815 6.240 3,952 1,929 (57)
7.22 The above table illustrates how significant the outcome of the Fair Funding Review is to the Council’s finances – where the highlighted row represents the forecast MTFS position as set out in this report. The table shows that in under a ‘partial reset’ scenario the Council’s General Fund Balance could be as much as £3.543m by 2024/25. It also shows however that under a more pessimistic full reset scenario the General Fund Balance could be a negative £57,000.
Page 47 of 76 7.23 At this stage the assumptions applied to the MTFS are considered balanced and prudent. However a constant watching brief is required on this area.
8. Collection Fund
8.1 Each year the Council is required to make an estimate as to whether that part of the statutory account that deals with council tax and business rates will finish the year in surplus or deficit or whether it will be broadly in balance. Deficits and surpluses have to be shared amongst the major precepting authorities for council tax and with Central government, the county and the fire authority for business rates, in the following year. The MTFS assumes that there will be a break even position.
9. Capital Programme
9.1 The Capital Programme was previously approved in February 2019 as part of the budget setting process, and can be summarised as follows:
2019/20 2020/21 2021/22 2022/23 2023/24 £m £m £m £m £m
Capital 14.0 6.4 1.4 1.0 1.1
9.2 During the course of the current financial year the following changes have been approved in respect of the 2019/20 Programme:
2019/20 Capital £m Comments Programme
Original 14.0 Approved by Council in February 2019 as approved part of the MTFS.
Plus slippage 6.2 Approved by Council on 25 June 2019. from 2018/19
Add 2.5 Approved by Council 10th September in supplementary relation to the Commercial Asset Strategy. estimates
Other changes 0.5 In relation to additional grant funding re Better Care Fund Football Foundation Grant
Total 23.2
The planned resourcing of the 19/20 Capital programme is detailed below.
Page 48 of 76
Capital Financing £000 Grants and Other Contributions 2,123 Capital Receipts 475 Credit Arrangements (internal and external borrowing) 20,378 Application of Earmarked Reserve 300 Revised Capital Financing 23,276
9.3 The 2020/21 to 2024/25 Capital Programme:
9.4 The full capital programme over the period to 2024/25 is detailed in Appendix 3 to this report. This can be summarised as follows:
19/20 20/21 21/22 22/23 23/24 24/25 Total 23.2 6.4 1.4 1.0 1.1 0.9
9.5 The above table shows that other than the changes set out in 9.2 above (primarily re approved capital slippage) there are no significant proposed changes to the capital programme.
10. Reserves
10.1 In total the Council had £11.401m in reserves at the start of the year. This is split between the General Fund Reserve and a collection of Earmarked Reserves.
Balance at 31st Balance at 31st March 2018 March 2019 £000 £000 General Fund Reserve 6,873 8,452 Earmarked Reserves 2,868 2,949 Total Useable Revenue Reserves 9,741 11,401
10.2 There are a number of earmarked reserves, all of which, as the name suggests, are earmarked for a specific purpose. These are set out in the table below:
Page 49 of 76 Ref Balance Anticipated Projected at 31st (Usage) / Balance 31st March Addition March 2020 2019 2019/20 £’000 £’000 £’000 a Fairer Funding Reserve 700 56 757 b Commercial Development Maintenance 452 452 c Income Generation 296 (240) 56 d Highways (s106 income) 225 225 e Grounds Maintenance (s106) 165 165 f DWP Projects 119 119 g TCA Funding 109 109 h New Burdens 110 (24) 86 i Electoral Registration 105 105 J Planning Income Re-investment 101 101 K Other Earmarked Reserves 567 (79) 488 l Business Transformation and Change 0 200 200 Total 2,949 (87) 2,862
10.3 Anticipated (usage) / additions refers to plans in place and reported within Q2 monitoring as at the end of September 2019. Opportunities to use Earmarked Reserve resources to fund in-year expenditure or, setting aside likely underspends for a specific purpose are reviewed throughout the year.
10.4 Details of the Earmarked Reserves above are described below;
a) The Fairer Funding reserve is in place to mitigate against uncertainties and future volatility in Business Rate income. b) The Commercial Development (dilapidations) reserve relates to monies set aside for maintaining and improving the condition of assets which generate a return. c) Income Generation relates to spend to save projects in relation to the Council’s E&I programme and residual grant monies to support the Codsall Community Hub investment. d) Highways s106 monies relates specifically to the Berricote Development at Gravelly Way, Four Ashes. e) Other Grounds Maintenance s106 monies primarily relate to Miller Homes developments and promises in relation to the maintenance and future upkeep of Council space. We will be bringing forward a separate report detailing all s106 monies and how they are being spent. f) DWP Projects relates to software developments within Welfare where requirements are outside the scope of the main IT contract. g) Transformation Challenge Award is a grant award. Since Quarter 2 monitoring, incurred expenditure on Capita 360 and Office 365 can be funded through this reserve. There are further pipeline expenditure plans to spend the remainder. h) New Burdens is residual Grant Income which can be used to fund any costs in updating the Council Tax support system.
Page 50 of 76 i) Electoral Registration will cover any additional costs incurred by the Council developing and enhancing Individual Electoral Registration. j) Planning income re-investment, recognises that additional income receipts received in 2018/19 as a result of increased planning fees are intended to be re-invested in future service improvements. Whilst no such spend was identified explicitly at Q2, this reserve will be continually monitored. k) Overall, the Council has in excess of forty specifically set aside Earmarked Reserves including the significant items listed above. There are a number of smaller reserves making up the overall total including items such as proceeds of crime awards (POCA), community lottery reserves and grant monies from central government to fund any costs incurred through Brexit. l) Within Q2 monitoring, it was reported that £0.200m could be set aside (should latest projections materialise) to fund future investments in Business transformation.
11 Projected General Fund Balance and minimum adequate levels
11.1 The Council approved increasing its target minimum level of general reserves from £1m to £1.5m two years ago. It is recommended that this minimum level is maintained at £1.5m – but is kept under review.
11.2 The MTFS forecasts a general fund reserve balance of £4.552m at the end of 2022/23 (that being the initial three-year period of our five-year MTFS).
11.3 At the end of 2024/25 our five-year MTFS forecasts a general fund reserve balance of £1.643m - above our minimum level.
11.4 Work is still required however to implement current saving plans as well as develop new ones in order to balance income and expenditure. There remains time to put this programme into action in a measured way to ensure reserve balances are maintained over the medium term.
12. Financial Framework
12.1 The Overall Financial Framework is delivered through various plans and policy documents, of which the MTFS is one, as set out in the table below:
Medium Term The medium term financial plans of the Council. Financial Strategy How capital spend is planned and managed (including how Capital Strategy and assets are identified for acquisition) in order to deliver Capital Programme against the Council’s priorities. Treasury How cash and investments are managed to ensure the Management security and liquidity of any council money invested. Strategy These are the detailed rules which are used by Council Financial Regulations officers on a daily basis to govern their operations. Setting out when fundamental financial and other systems Internal Audit Plan will be reviewed over time to test the effectiveness of internal control.
Page 51 of 76 13. IMPACT ASSESSMENT – ADDITIONAL INFORMATION
N/A
14. PREVIOUS MINUTES
None
15. BACKGROUND PAPERS
Appendix 1 – Income and Expenditure Account and MTFS Appendix 2 – Budget Assumptions Appendix 3 – Capital Programme – Summary of Capital Investment Plans Appendix 4 – Cabinet Summaries (MTFS) Appendix 5 – Form of Resolution to approve the budget and set the council tax Appendix 6 – Report of the Corporate Director Resource (Section 151 Officer) on the robustness of estimates and adequacy of reserves
Report prepared by: James Howse Corporate Director Resource (Section 151 Officer)
Page 52 of 76 Appendix 1
INCOME AND EXPENDITURE ACCOUNT AND MEDIUM TERM FINANCIAL PLAN
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 PROJECTED OUTURN AT BUDGET M6 ESTIMATE PROJECTED PROJECTED PROJECTED PROJECTED £000s £000s £000s £000s £000s £000s £000s
Business Transformation 1,004 1,176 1,164 1,128 1,119 1,118 1,136 Community Services 4,045 3,954 3,576 3,616 3,631 3,682 3,758 Corporate 3,331 3,507 2,832 4,152 4,360 4,649 4,650 Democratic & Regulatory 819 810 867 874 876 896 915 Planning & Business Enterprise (789) (798) (832) (994) (1,185) (1,708) (1,724) Welfare Services 1,018 942 997 1,021 1,110 1,244 1,278 9,426 9,591 8,603 9,797 9,911 9,880 10,014 Other Service Expenditure Enterprise Zone Spend 3,417 2,976 4,812 4,864 4,962 5,168 5,168
Total Other Service Expenditure 3,417 2,976 4,812 4,864 4,962 5,168 5,168
Total Service Expenditure 12,843 12,567 13,415 14,661 14,873 15,048 15,182
Capital Financing and Treasury Investment Income (72) (98) (72) (86) (140) (144) (136) Borrowing Costs 150 0 75 360 592 583 572 Minimum Revenue Provision 165 180 247 315 492 504 521 Depreciation included in Cabinet estimates (667) (667) (744) (736) (736) (736) (736) Capital Financing and Treasury (424) (585) (495) (147) 208 207 221
Net Expenditure 12,419 11,982 12,921 14,514 15,081 15,255 15,403
Funding:
New Homes Bonus (515) (515) (312) (186) (55) 0 0 Net Retained Business Rates (3,131) (3,431) (3,125) (3,152) (3,215) (3,279) (3,335) Enterprise Zone (3,417) (2,976) (4,812) (4,864) (4,962) (5,168) (5,168)
(7,063) (6,922) (8,249) (8,202) (8,232) (8,447) (8,503)
Demand on Collection Fund / Council Tax Requirement (4,393) (4,393) (4,616) (4,837) (5,060) (5,286) (5,514)
TotaL External Funding (11,456) (11,315) (12,865) (13,039) (13,292) (13,733) (14,017)
Forecast Annual Surplus / (Deficit) (963) (667) (56) (1,475) (1,789) (1,522) (1,386)
Total Funding (12,419) (11,982) (12,921) (14,514) (15,081) (15,255) (15,403)
General Revenue Reserves Opening Balance 1st April 8,452 8,452 7,871 7,815 6,340 4,552 3,029 Forecast Annual Surplus / (Deficit) (963) (667) (56) (1,475) (1,789) (1,522) (1,386) Less Transfers (to)/ from Earmarked Reserves (56) 87 0 0 0 0 0 Closing Balance General Revenue Reserves 31st March 7,433 7,871 7,815 6,340 4,552 3,029 1,643
Note: MTFS assumes increase of £5 council tax (band D) and 233 increased taxbase per year Note: Cabinet (service) expenditure set out above is analysed at Appendix 4. Note: ‘Corporate’ service expenditure above excludes Section 31 grant monies which is included in the ‘Net Retained Business Rates’ from 2021/22.
Page 53 of 76 Appendix 2
Budget Assumptions
This paper sets out in more detail some of the judgements and estimations made in relation to budget and MTFS.
It cross references to section 7 of this report (an excerpt of which is set out below) which reconciled how changes made in underlying assumptions impacts upon the MTFS.
20/21 21/22 22/23 23/24 £’000 £’000 £’000 £’000 Impact of changes to: a) Base Assumptions 0 0 0 0 e) Changes to Funding (1,173) 395 660 885 f) Council Tax (64) (120) (173) (222)
Base Assumptions
Vacancy Adjustments
The vacancy factor estimate has been increased from 1.5% to 2.0% to reflect recent experience of the actual difference between full establishment and actual pay costs. This is offset by an increase in pay for Assistant Directors approved by Council on June 25th.
Employer’s Pension Costs
Based on actuarial advice the Council’s employer contribution rates to the Staffordshire Pension Fund remain unchanged at 16.4% per employee plus the schedule of lump sum (deficit recovery) payments previously approved.
Inflation assumptions
The Bank of England’s inflation target remains 2%. It is assumed that inflation will remain at this level over the medium term. This in line with the MTFS as approved in February 2019 (for both salaries and supplies and services).
Changes to Funding
New Homes Bonus
Under the scheme, grant funding is provided annually by central government matching the extra council tax raised by new-build homes, conversions and long-term empty homes brought back into use, over and above a target growth rate currently set at 0.4%.
For the MTFS approved in 2019/20, the MTFS modelled a growth of 270 houses per annum (and a level ‘deadweight’ baseline which could not be guaranteed). To reflect the
Page 54 of 76 uncertainty, provision was made to appropriate funding at risk to Earmarked Reserves to insulate the General Fund reserve from any undue fluctuations.
For 2020/21, there is greater certainty although funding with the New Homes Bonus label will be reduced over the term of the MTFS. This is reflected in the revised figures, alongside a removal of any need to appropriate monies to Earmarked Reserve.
Uncertainties remain in relation to Business Rate baselines and retentions, and any replacement grants that may emerge from the Fairer Funding Review which are detailed below.
Business Rate Growth
There remains considerable uncertainty in relation to the business rates reset planned for 2021/22. Currently local authorities are able to retain 50% of business rate growth over and above a baseline set in 2012/13, based upon a needs-based system of top-ups and tariffs. In recent years, South Staffordshire has benefitted from growth in the collection of business rates. A full reset, effectively capping (in the first year) the authorities business rate income to a centrally determined level of need would have a significant detrimental impact upon the MTFS and represents a significant risk to the Council’s finances.
Local Government Multi-Year Finance Settlement
The Council was anticipating a new multi-year financial settlement for local government to be announced in 2019. This has been delayed to 2020 (with a one year spend round announced for 2020/21 only) and will impact from 2021/22. This announcement along with the outcome of the Fair Funding Review will be critical elements of the Council’s finances over the medium term.
Council Tax
Council Tax Increase and Capping
District Councils are allowed (before reaching the referendum limit) to increase their council tax by a maximum of £5 per year or 1.99%, whichever is greatest for 2020/21.
The recent Government Spending Round re-affirmed the commitment to the £5 limit and there are currently no indications that this policy will be reversed. The MTFS has therefore assumed Council Tax will be increased by £5 per annum between 2020/21 and 2024/25. The MTFS previously assumed a 2.99% increase from 2020/21.
Housing Completions
The previous MTFS assumed a tax base for 2020/21 of 38,323 properties, representing the number of Band D equivalent properties that we collect Council Tax from. The Council Tax base is a key component in the calculation of resources available to the Council. The actual tax base for 2020/21, based on latest information is currently 38,355, an increase of 22 Band D properties.
Page 55 of 76 A prudent assessment of latest building ambitions within the authority has allowed an assumption of a further 233 band D equivalent properties being built per annum from 2020/21 per annum over the span of the MTFS. This increase is as per the budget set in 2019/20.
Taken together, these changes have the following impact in terms of additional income within this MTFS compared to the MTFS last year:
(Positive) Impact on MTFS £’000 £’000 £’000 £’000 Budgeted Council Tax Receipts (64) (120) (173) (222)
Discretionary Fees and Charges
The budgets within the MTFS make a broad assumption that budgeted income targets are increased by 2%. There is however considerable local management discretion in terms of how these revised targets are achieved. Specific income lines are examined and pay increases only applied where this is considered the most appropriate means of achieving revised income targets.
Page 56 of 76 Appendix 3 – Capital Programme
Revised CAPITAL PROGRAMME - SUMMARY OF CAPITAL INVESTMENT Budget Budget Budget Budget Budget Budget PLANS 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Corporate Services Asset Strategy 1,897 1,897 Asset Strategy - Four Ashes development 4,037 4,037 Asset Strategy - Wombourne development 6,509 6,509 Asset Strategy - Unit 4E extension 1,302 1,302 Codsall Community Hub 5,022 4,609 9,631 I-Trent Upgrade 20 20 Income Generation Initiatives 52 52 Capital Loans 25 25 25 25 25 25 150 18,864 4,634 25 25 25 25 23,598
Business Transformation Replacement of workstations 100 25 25 45 45 45 285 Pulse Secure Licences 4 4 Wireless Access Points 16 16 ICT requirements 66 74 0 0 83 55 278 Printing Requirements (subject to business case) 78 78 156 264 99 25 45 206 100 739
Welfare Services Renovation and Disabled Facilities Grants 1,664 764 764 764 764 764 5,484 1,664 764 764 764 764 764 5,484
Community Services Street Scene Grounds Maintenance Vehicles 91 91 Street Scene Vehicles / Plant (subject to business case) 270 107 74 105 556 Ten Year Leisure Centre Cardiovascular renewal programme 74 74 68 97 313 Leisure Centre indoor cycling renewal scheme 20 19 29 12 80 Leisure Centre resistance equipment replacement scheme 99 42 140 Leisure Centre Air Conditioning (subject to business case) 33 33 Leisure Centre Refurbishment 1,080 490 400 1,970 Wombourne Leisure Centre - 3G Pitch 730 730 S106 - Baggeridge Country Park play equipment 21 21 Baggeridge Country Park - play equipment (subject to business case) 200 200 2,347 895 603 184 105 0 4,133 Planning and Business Enterprise Other Housing - Regional Housing Board 137 137 137 0 0 0 0 0 137
GRAND TOTAL 23,276 6,392 1,417 1,018 1,100 889 34,092
Financing Capital Receipts 708 301 177 254 180 81 1,700 Capital Grants - Disabled Facilities Grant Better Care Fund 1,664 764 764 764 764 764 5,484 Capital Grants - Regional Housing Board 137 137 Section 106 Funding 91 91 Revenue Contributions (EMR for Wombourne EP) 300 300 Leased Expenditure 169 228 76 156 628 Borrowing 20,207 5,099 400 44 25,750
23,276 6,392 1,417 1,018 1,100 889 34,092
Page 57 of 76 Appendix 4 – Cabinet Summaries
BUSINESS TRANSFORMATION Net Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 SERVICE UNIT/SERVICE Budget Projected Estimate Projection Projection Projection Projection £000's £000's £000's £000's £000's £000's £000's INFORMATION & COMMUNICATION TECHNOLOGY Information & Communication Technology 805 976 957 914 902 896 911 Printing 14 14 14 14 14 14 15 Telephony 85 85 87 88 89 91 92 Geographical Information System 100 101 106 112 114 116 119 1,004 1,176 1,164 1,128 1,119 1,118 1,136
BUSINESS TRANSFORMATION TOTAL 1,004 1,176 1,164 1,128 1,119 1,118 1,136
Page 58 of 76
COMMUNITY SERVICES Net Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 SERVICE UNIT/SERVICE Budget Projected Estimate Projection Projection Projection Projection £000's £000's £000's £000's £000's £000's £000's EMERGENCY PLANNING Emergency Planning 24 24 28 28 29 30 30 24 24 28 28 29 30 30 FACILITIES Catering 21 21 21 21 21 21 21 Jubilee House -12 -12 -13 -13 -13 -12 -12 Public Offices 700 685 727 738 724 734 743 Surplus Office Accomodation -296 -296 -318 -474 -552 -567 -567 412 398 417 273 180 176 185 BEREAVEMENT Cemetery -41 -60 -73 -74 -74 -75 -75 -41 -60 -73 -74 -74 -75 -75 LEISURE SERVICES (OPERATIONS) Baggeridge CP & Railway Walk 54 61 38 39 39 42 45 Cheslyn Hay Leisure Centre 26 55 73 78 75 71 71 Codsall Leisure Centre -63 -63 -48 -55 -58 -68 -70 Facilities Development 212 212 217 220 224 227 231 Penkridge Leisure Centre 32 47 36 35 34 30 29 Wombourne Leisure Centre 12 -34 22 21 17 11 9 274 279 337 337 330 312 315 STREET SCENE Car Parking - General 23 23 24 25 26 27 28 Environmental Improvements 7 7 7 7 7 7 7 Highways & Lighting 56 56 54 57 60 63 66 Lane Green Depot 14 14 15 15 15 15 15 Street Scene Operational 775 695 698 760 770 779 788 Street Scene (office) 247 247 250 265 271 278 283 1,122 1,042 1,048 1,129 1,149 1,169 1,188 WASTE & RECYCLING Waste and Recycling 2,254 2,272 1,819 1,923 2,017 2,070 2,116 2,254 2,272 1,819 1,923 2,017 2,070 2,116
COMMUNITY SERVICES TOTAL 4,045 3,954 3,576 3,616 3,631 3,682 3,758
Page 59 of 76 CORPORATE Net Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 SERVICE UNIT/SERVICE Budget Revised Estimate Projection Projection Projection Projection £000's £000's £000's £000's £000's £000's £000's
FINANCIAL SERVICES Afs Service Unit Support 523 510 466 476 490 500 530 Corporate Management -145 -17 -355 933 1,028 1,117 1,204 Democratic Representation 400 400 400 401 401 402 402 Pensions (Former Employees) 182 182 190 190 190 190 190 959 1,074 701 1,999 2,110 2,209 2,326 CORPORATE LEADERSHIP TEAM Chief Executive 167 167 170 173 176 180 183 Governance 108 108 110 112 115 117 119 Commercial 107 107 109 112 114 116 118 Resource 134 141 137 139 142 145 148 Assistant Directors. 433 433 461 472 481 490 500 949 956 987 1,008 1,027 1,048 1,068 HUMAN RESOURCES Corp Mgmt 102 102 103 103 103 104 105 Human Resources 246 267 273 262 267 272 276 Training 7 7 7 7 7 7 7 354 375 383 372 377 383 388 INTERNAL AUDIT Fraud 77 77 74 75 77 78 80 Internal Audit 124 124 126 128 137 133 134 201 201 200 203 214 211 214 POLICY AND PARTNERSHIP Elections 149 132 51 50 51 160 53 Electoral Registration 118 90 100 102 104 155 109 Gen Grants & Donations 196 188 0 0 0 0 0 Locality Commissioning Partner 0 48 0 0 0 0 0 P & P Communications 132 132 134 137 140 143 145 P & P Health 8 8 8 8 8 8 8 P & P Localities 56 56 56 57 108 109 110 Policy 209 248 212 215 221 225 228 867 901 561 570 632 799 654
CORPORATE TOTAL 3,331 3,507 2,832 4,152 4,360 4,649 4,650
Note: The Corporate Management budget line above included Section 31 grant income until 2020/21
Page 60 of 76 DEMOCRATIC AND REGULATORY Net Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 SERVICE UNIT/SERVICE Budget Projected Estimate Projection Projection Projection Projection £000's £000's £000's £000's £000's £000's £000's
ENVIRONMENTAL HEALTH AND LICENSING Food Safety 125 125 -4 -4 -4 -4 -4 Health & Safety 36 36 0 0 0 0 0 Health And Safety - Corporate 78 89 13 13 13 13 13 Health Licensing Services 27 27 -12 -12 -12 -12 -12 Housing Standards 32 32 -10 -10 -10 -10 -10 Licensing -71 -68 -153 -153 -159 -153 -153 Pest Control 22 22 12 12 12 12 12 Pollution 54 53 -10 -10 -10 -10 -10 Service Unit Support 34 34 604 615 626 637 649 337 349 442 453 458 475 487 LEGAL AND DEMOCRATIC SERVICES Dem Rep & Management 7 7 7 7 7 7 7 Democratic & Scrutiny 39 32 77 79 80 82 83 Legal Services 198 183 103 94 86 84 86 Other Public Health Services 23 23 0 0 0 0 0 268 246 188 180 174 173 177 PLANNING ENFORCEMENT AND COMMUNUNITY SAFETY Cctv 20 24 40 40 40 41 41 Enviro-Crime 37 37 38 38 39 39 40 Parking Enforcement 0 -3 0 0 0 0 0 Planning Enforcement 157 157 160 163 165 168 171 214 216 238 241 244 248 252
DEMOCRATIC AND REGULATORY TOTAL 819 810 867 874 876 896 915
Page 61 of 76 PLANNING AND BUSINESS ENTERPRISE Net Expenditure Net Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 SERVICE UNIT/SERVICE Budget Revised Estimate Projection Projection Projection Projection £000's £000's £000's £000's £000's £000's £000's
BUILDING CONTROL AND LAND CHARGES Building Control 3 -2 3 3 3 3 3 Local Land Charges -13 -13 -13 -14 -14 -14 -14 -10 -15 -10 -11 -10 -10 -10 BUSINESS INFRASTRUCTURE S&G Economic Development 156 131 159 162 164 167 172 Income Generation 64 89 65 66 67 68 69 220 220 224 228 231 235 241 ESTATES AND ASSETS Commercial Development 104 98 105 107 108 110 111 Hinksford Mobile Home Park -178 -194 -194 -198 -202 -205 -209 Industrial Units -1,347 -1,320 -1,351 -1,610 -1,725 -2,169 -2,208 -1,421 -1,415 -1,440 -1,701 -1,819 -2,264 -2,306 PLANNING SERVICES Conservation 18 18 18 19 20 20 20 Development Management -126 -131 8 20 32 -56 -44 Energy Conservation 44 38 26 26 27 28 29 Landscape Planning 55 55 29 30 31 31 32 Local Plans 371 374 312 396 304 309 315 363 354 394 490 413 332 352 HOUSING STRATEGY Strategic Housing 59 59 0 0 0 0 0 59 59 0 0 0 0 0
PLANNING AND BUSINESS ENTERPRISE TOTAL -789 -798 -832 -994 -1,185 -1,708 -1,724
Page 62 of 76 WELFARE AND CUSTOMER SERVICES Net Expenditure Net Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 SERVICE UNIT/SERVICE Budget Projected Estimate Projection Projection Projection Projection £000's £000's £000's £000's £000's £000's £000's
CUSTOMER SERVICES Customer Services 478 516 489 474 483 493 502 Post Opening Room 98 90 69 69 70 70 70 Printing 77 77 73 73 74 75 75 653 682 630 616 627 637 648 HOMELESSNESS AND WELFARE SUPPORT Homelessness initiative 0 0 0 0 0 0 0 0 0 0 0 0 0 0 HOUSING OPERATIONS Housing Services (Operations) 132 136 143 145 148 151 156 132 136 143 145 148 151 156 REVENUES AND BENEFITS Housing Benefits Payments -265 -267 -263 -263 -263 -263 -263 Local Tax Collection 239 223 274 282 287 295 303 Rebate Administration 259 185 213 241 312 424 434 Social Care Assessment 0 -17 0 0 0 0 0 233 124 224 259 335 456 474
WELFARE AND CUSTOMER SERVICES TOTAL 1,018 942 997 1,021 1,110 1,244 1,278
Page 63 of 76
Appendix 5
FORM FOR RESOLUTION TO APPROVE THE BUDGET AND SET THE COUNCIL TAX 2020/21
The Council is recommended to resolve as follows:
1. Resolved to recommend to Council that it pass the necessary resolution to determine the Council Tax relevant to each part of the District at this meeting, namely,
a) that it be noted that at the meeting on the 25 February, 2020 the Council approved:-
(i) the revised revenue estimates for the year 2019/20 and the revenue estimates for 2020/21
(ii) the revised capital programme for the year 2019/20 and the capital programme for 2020/21
(iii) the following positive assurance statement from the Chief Finance Officer, under the terms of section 25 of the Local Government Act 2005: “I consider that the estimates that have been made as the basis for the calculations set out below are robust, and that the levels of financial reserves proposed are adequate.”
2. That it be noted that the Council calculated:
(a) the Council Tax Base 2020/21 for the whole Council area as 38,355.90 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)] and,
(b) for dwellings in those parts of its area to which a Parish precept relates as in the table below:
Page 64 of 76 Parish of: Tax Base
ACTON TRUSSELL, BEDNALL & TEDDESLEY HAY 601.22 BILBROOK 1488.84 BLYMHILL & WESTON- UNDER- LIZARD 345.15 BOBBINGTON 241.25 BREWOOD 2992.39 CHESLYN HAY 2157.02 CODSALL 3067.24 DUNSTON WITH COPPENHALL 260.71 ENVILLE 223.66 ESSINGTON 1513.41 FEATHERSTONE 1048.56 GREAT WYRLEY 3360.09 HATHERTON 277.70 HILTON 50.72 HIMLEY 498.98 HUNTINGTON 1276.25 KINVER 3248.67 LAPLEY, STRETTON & WHEATON ASTON 998.53 LOWER PENN 472.72 PATTINGHAM & PATSHULL 999.60 PENKRIDGE 3097.56 PERTON 3456.26 SAREDON 305.76 SHARESHILL 308.85 SWINDON 485.35 TRYSULL & SEISDON 572.34 WOMBOURNE 5007.07
38,355.90
3. Calculate that the Council Tax requirement for the Council’s own purposes for 2020/21 (excluding parish precepts) is £4,615,761.
4. That the following amounts be now calculated by the Council for the year 2020/21 in accordance with Sections 31 to 36 of the Act:
(a) £39,051,375.32 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.
(b) £32,115,739.00 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act. Page 65 of 76 (c) £6,935,636.32 being the amount by which the aggregate at 4 (a) above exceeds the aggregate at 4 (b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).
(d) £180.82 being the amount at 4(c) above (Item R), all divided by Item T (2(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its council tax for the year (including Parish precepts).
(e) £2,319,875.32 being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act.
(f) £120.34 being the amount at 4 (d) above less the result given by dividing the amount at 4 (e) above by Item T (2(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its council tax for the year for dwellings in those parts of its area to which no special item (Parish precept) relates.
(g) in the following parts of the Council's area
Parish of: Band D ACTON TRUSSELL, BEDNALL & TEDDESLEY HAY £159.43 BILBROOK £173.74 BLYMHILL & WESTON- UNDER- LIZARD £136.28 BOBBINGTON £139.49 BREWOOD & COVEN £175.77 CHESLYN HAY £211.21 CODSALL £177.60 DUNSTON WITH COPPENHALL £135.68 ENVILLE £152.04 ESSINGTON £235.97 FEATHERSTONE £204.16 GREAT WYRLEY £176.02 HATHERTON £185.16 HILTON £243.37 HIMLEY £141.88 HUNTINGTON £192.43 KINVER £164.88 LAPLEY, STRETTON & WHEATON ASTON £238.58 LOWER PENN £157.36 PATTINGHAM & PATSHULL £169.15 PENKRIDGE £201.05 PERTON £181.10 SAREDON £183.72 SHARESHILL £195.35 SWINDON £157.84 TRYSULL & SEISDON £170.31 WOMBOURNE £160.84
Page 66 of 76 being the amounts given by adding to the amount at 4 (f) above the amounts of the special item or items relating to dwellings in those parts of the Council's area mentioned above divided in each case by the applicable amount at 2 (b) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its council tax for the year for dwellings in those parts of its area to which one or more special items relate.
(h) in the following parts of the Council's area
VALUATION BAND A B C D E F G H PARISH COUNCILS £ £ £ £ £ £ £ £ ACTON TRUSSELL, BEDNALL 106.29 124.00 141.72 159.43 194.86 230.28 265.72 318.86 & TEDDESLEY HAY BILBROOK 115.83 135.13 154.44 173.74 212.35 250.95 289.57 347.48 BLYMHILL & WESTON- 90.86 106.00 121.14 136.28 166.56 196.84 227.14 272.56 UNDER- LIZARD BOBBINGTON 93.00 108.49 123.99 139.49 170.49 201.48 232.49 278.98 BREWOOD & COVEN 117.18 136.71 156.24 175.77 214.83 253.89 292.95 351.54 CHESLYN HAY 140.81 164.28 187.74 211.21 258.14 305.08 352.02 422.42 CODSALL 118.40 138.14 157.87 177.60 217.06 256.53 296.00 355.20 DUNSTON WITH 90.46 105.53 120.61 135.68 165.83 195.98 226.14 271.36 COPPENHALL ENVILLE 101.36 118.26 135.15 152.04 185.82 219.61 253.40 304.08 ESSINGTON 157.32 183.53 209.75 235.97 288.41 340.84 393.29 471.94 FEATHERSTONE 136.11 158.79 181.48 204.16 249.53 294.89 340.27 408.32 GREAT WYRLEY 117.35 136.91 156.46 176.02 215.13 254.25 293.37 352.04 HATHERTON 123.44 144.02 164.59 185.16 226.30 267.45 308.60 370.32 HILTON 162.25 189.29 216.33 243.37 297.45 351.53 405.62 486.74 HIMLEY 94.59 110.35 126.12 141.88 173.41 204.93 236.47 283.76 HUNTINGTON 128.29 149.67 171.05 192.43 235.19 277.95 320.72 384.86 KINVER 109.92 128.24 146.56 164.88 201.52 238.16 274.80 329.76 LAPLEY, STRETTON & 159.06 185.56 212.07 238.58 291.60 344.61 397.64 477.16 WHEATON ASTON LOWER PENN 104.91 122.39 139.88 157.36 192.33 227.29 262.27 314.72 PATTINGHAM & PATSHULL 112.77 131.56 150.36 169.15 206.74 244.32 281.92 338.30 PENKRIDGE 134.04 156.37 178.71 201.05 245.73 290.40 335.09 402.10 PERTON 120.74 140.86 160.98 181.10 221.34 261.58 301.84 362.20 SAREDON 122.48 142.90 163.31 183.72 224.54 265.37 306.20 367.44 SHARESHILL 130.24 151.94 173.65 195.35 238.76 282.17 325.59 390.70 SWINDON 105.23 122.77 140.30 157.84 192.91 227.99 263.07 315.68 TRYSULL & SEISDON 113.54 132.47 151.39 170.31 208.15 246.00 283.85 340.62 WOMBOURNE 107.23 125.10 142.97 160.84 196.58 232.32 268.07 321.68
being the amounts given by multiplying the relevant amounts as above by the number which, in the proportion set out in Section 5(i) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in
Page 67 of 76 accordance with Section 36(1) of the Act as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.
(i) that it be noted that for the year 2020/21 the Staffordshire County Council, the Staffordshire Police Authority and the Stoke-on-Trent and Staffordshire Fire Authority have stated the following amounts in precepts issued to the Council in accordance with Section 40 of the Local Government Finance Act, 1992, for each of the categories of dwellings shown below:
VALUATION BAND A B C D E F G H PRECEPTING AUTHORITY £ £ £ £ £ £ £ £ Staffordshire County Council 863.97 1007.96 1151.96 1295.95 1583.94 1871.93 2159.92 2591.90 OPCC Staffordshire 150.06 175.07 200.08 225.09 275.11 325.13 375.15 450.18 Staffordshire Fire & Rescue 51.49 60.08 68.66 77.24 94.40 111.57 128.73 154.48 Authority
j) that having calculated the aggregate in each case of the amount at 4 (h) and (i) above, the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act, 1992, hereby sets the following amounts as the amounts of council tax for the year 2020/2021 for each of the categories of dwellings shown below:
VALUATION BAND A B C D E F G H PARISH COUNCILS £ £ £ £ £ £ £ £ ACTON TRUSSELL, BEDNALL 1171.81 1367.11 1562.42 1757.71 2148.31 2538.91 2929.52 3515.42 & TEDDESLEY HAY BILBROOK 1181.35 1378.24 1575.14 1772.02 2165.80 2559.58 2953.37 3544.04 BLYMHILL & WESTON- 1156.38 1349.11 1541.84 1734.56 2120.01 2505.47 2890.94 3469.12 UNDER- LIZARD BOBBINGTON 1158.52 1351.60 1544.69 1737.77 2123.94 2510.11 2896.29 3475.54 BREWOOD & COVEN 1182.70 1379.82 1576.94 1774.05 2168.28 2562.52 2956.75 3548.10 CHESLYN HAY 1206.33 1407.39 1608.44 1809.49 2211.59 2613.71 3015.82 3618.98 CODSALL 1183.92 1381.25 1578.57 1775.88 2170.51 2565.16 2959.80 3551.76 DUNSTON WITH 1155.98 1348.64 1541.31 1733.96 2119.28 2504.61 2889.94 3467.92 COPPENHALL ENVILLE 1166.88 1361.37 1555.85 1750.32 2139.27 2528.24 2917.20 3500.64 ESSINGTON 1222.84 1426.64 1630.45 1834.25 2241.86 2649.47 3057.09 3668.50 FEATHERSTONE 1201.63 1401.90 1602.18 1802.44 2202.98 2603.52 3004.07 3604.88 GREAT WYRLEY 1182.87 1380.02 1577.16 1774.30 2168.58 2562.88 2957.17 3548.60 HATHERTON 1188.96 1387.13 1585.29 1783.44 2179.75 2576.08 2972.40 3566.88 HILTON 1227.77 1432.40 1637.03 1841.65 2250.90 2660.16 3069.42 3683.30 HIMLEY 1160.11 1353.46 1546.82 1740.16 2126.86 2513.56 2900.27 3480.32 HUNTINGTON 1193.81 1392.78 1591.75 1790.71 2188.64 2586.58 2984.52 3581.42 KINVER 1175.44 1371.35 1567.26 1763.16 2154.97 2546.79 2938.60 3526.32 LAPLEY, STRETTON & 1224.58 1428.67 1632.77 1836.86 2245.05 2653.24 3061.44 3673.72 WHEATON ASTON LOWER PENN 1170.43 1365.50 1560.58 1755.64 2145.78 2535.92 2926.07 3511.28 PATTINGHAM & PATSHULL 1178.29 1374.67 1571.06 1767.43 2160.19 2552.95 2945.72 3534.86 PENKRIDGE 1199.56 1399.48 1599.41 1799.33 2199.18 2599.03 2998.89 3598.66 PERTON 1186.26 1383.97 1581.68 1779.38 2174.79 2570.21 2965.64 3558.76 Page 68 of 76 VALUATION BAND A B C D E F G H PARISH COUNCILS £ £ £ £ £ £ £ £ SAREDON 1188.00 1386.01 1584.01 1782.00 2177.99 2574.00 2970.00 3564.00 SHARESHILL 1195.76 1395.05 1594.35 1793.63 2192.21 2590.80 2989.39 3587.26 SWINDON 1170.75 1365.88 1561.00 1756.12 2146.36 2536.62 2926.87 3512.24 TRYSULL & SEISDON 1179.06 1375.58 1572.09 1768.59 2161.60 2554.63 2947.65 3537.18 WOMBOURNE 1172.75 1368.21 1563.67 1759.12 2150.03 2540.95 2931.87 3518.24
5. Determine that the Council’s basic amount of Council Tax for 2020/21 is not excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992.
Page 69 of 76
COUNCIL TAX RESOLUTION EXPLANATORY NOTES
Paragraph 2 refers to the Council Taxbase at Band D at 2(a) and to the taxbase at Band D for each parishes at 2(b).
Paragraph 4 (a) refers to the total spending to be met from Council Tax and Exchequer support, in respect of Parish and District Services.
Paragraph 4 (b) refers to the income, grossed up from the approved estimates, to be deducted from the expenditure at 4 (a) to arrive at:-
Paragraph 4 (c) which is the net sum to be met from Council Tax and Exchequer support, in respect of District and Parish Services.
Paragraph 4 (d) is the average Council Tax at Band D for District and Parish Services.
Paragraph 4 (e) is the total of the Parish precepts.
Paragraph 4 (f) is the Council Tax for District services only.
The Table at 4 (g) shows the Council Tax applicable to Band D for each Parish, for District and Parish services.
The Table at 4 (h) shows the Council Tax applicable to each band, for each parish, for District and Parish services.
Paragraph 4 (i) shows the Council Tax for each band to be added to meet the precepts of Staffordshire County Council, Staffordshire Police and Staffordshire Fire and Rescue Service.
Paragraph 4 (j) gives the total amount to be raised for all services by parish and by band.
Page 70 of 76 APPENDIX 6
REPORT OF THE CORPORATE DIRECTOR RESOURCE (SECTION 151 OFFICER) ON THE ROBUSTNESS OF ESTIMATES AND THE ADEQUACY OF RESERVES
1. I am making this report in compliance with the personal responsibilities placed upon me as Chief Finance Officer by sections 25 to 28 of the Local Government Act 2003. The legislation requires me to report to the authority on two matters.
The robustness of the estimates it makes when calculating its budget requirement; and
The adequacy of the authority’s reserves, taking into account the experience of the previous financial year.
This report fulfils this requirement and provides councillors with assurance that the budgets have been compiled appropriately and that the levels of reserves is adequate. It is a statutory requirement that councillors must consider this report when considering and approving a budget.
In presenting this report I am mindful of other associated statutory safeguards designed to prevent the authority from over-committing itself financially:
Section 151 of the Local Government Act 1972 which requires the authority to make arrangements for the proper administration of its financial affairs and that the Chief Finance Officer has personal responsibility for such administration;
Sections 32 of the Local Government Finance Act 1992 which requires the authority to set a balanced budget;
The prudential code introduced as part of the Local Government Act 2003 sets out the framework within which the authority must manage its investments, including adequate planning and budget estimates; and
The external auditor’s duty to satisfy itself that the authority has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.
To reinforce these obligations, section 114 of the Local Government Finance Act 1988 requires the Chief Finance Officer to report to all the authority’s councillors, in consultation with the Monitoring Officer, if there is or is likely to be unlawful expenditure or an unbalanced budget.
Page 71 of 76 Robustness of Estimates – preparation, review and scrutiny
2. The process for preparing the budgets started in the summer of 2019. The detailed budget preparation was overseen by an experienced qualified accountant, supported by other finance staff, both qualified and unqualified, familiar with the requirements of the budget preparation process. The basis of the estimates included the following elements which are in my view crucial to setting realistic budgets. Staffing budgets are prepared on a zero base approach, and are built up based on the actual staffing establishment and its current costs. The budgets reflect, as far as can be determined, costs of major contracts including likely cost increases. The budgets are informed by the results of the 2019/20 budget monitoring and recognise those issues that are unavoidable and would carry through into 2020/21. The budget identifies the on-going cost of council decisions taken where the financial impact has been quantified.
3. The detailed budgets have been scrutinised by: Service Team Managers; Corporate and Assistant Directors; Cabinet members; and the Overview and Scrutiny Committee
4. In particular, proposals for growth and savings have been carefully reviewed in order to be satisfied of their robustness and for their relationship to the priorities of the Council. The budget does not contain any unspecified or unrealistic savings proposals or contingencies. However the budget is balanced by the use of reserves and more work needs to be done in order to be financially secure over a 5 year period. Efficiencies and income opportunities are being targeted in order to close the funding gap. These proposals must now be actively pursued through to delivery.
5. The budgets have been assessed as part of the authority’s approach to risk management and the major financial risks identified. Whilst financial risks remain paramount, change management and transformation need adequate focus to ensure they don’t become a risk to the sustainability of the authority. Continued strong governance and leadership are needed to identify and manage the plans for the future to create an organisation that is fit for purpose to face our financial challenges.
Robustness of the estimates conclusion 6. Taking all these factors into account, I am satisfied that the estimates have been prepared on a robust basis.
Page 72 of 76 Adequacy of Reserves
7. The Chartered Institute of Finance and Accountancy (CIPFA) has produced guidance on local authority reserves and balances. As a member of this accounting body and the authority’s Chief Finance Officer, I am bound to give my advice in the context of this guidance. The guidance does not consider it appropriate or practical to be prescriptive on the minimum level of reserves. It does outline the factors that must be weighed in coming to the view on the level of reserves appropriate at a point in time. 8. In considering the level of general reserves in addition to the cash flow requirements CIPFA recommends that the following factors are considered: -
Budget assumptions Financial standing and management
The treatment of inflation and The overall financial standing of the interest rates authority (level of borrowing, debt outstanding, council tax collection rates)
Estimates of the level and timing The authority’s track record in budget of capital receipts and financial management
The treatment of demand led The authority’s capacity to manage pressures in-year budget pressures
The treatment of efficiency The strength of financial information savings/productivity gains and reporting arrangements
The financial risks inherent in any The authority’s virement and end of significant new funding year procedures in relation to budget partnerships, major outsourcing under/overspends at authority and deals or major capital service team level developments
The availability of other funds to The adequacy of the authority’s deal with major contingencies insurance arrangements to cover major unforeseen risks.
9. An appropriate level of reserves is determined by a professional judgement based on local circumstances. Not keeping a minimum prudent level of reserves can have serious consequences in the event of a major problem or a series of adverse events. Adequate reserves will help avoid potentially harmful cuts to services in year.
10. The Council holds earmarked reserves to provide against known commitments and general fund reserves to protect against a wide range of financial risks.
11. In arriving at the recommendation on the minimum prudent level of reserves, strategic operational and financial risks have been taken into account. These include:
Uncertainty about whether the full effects of any efficiency measures/increased income will be achieved;
Page 73 of 76 The risk of major litigation;
Potential insurance claims and outstanding liabilities;
Increases in demand led budgets above those planned, particularly in the context of an ageing population;
The need to maintain a general contingency to provide for any unforeseen circumstances which may arise;
The need to retain some reserves for general day to day cash flow management.
12. Taking the above into account alongside guidance from CIPFA and the robustness of the estimates (see above) I recommend that a minimum prudent level of reserves be set at £1,500,000 for 2020/21, which is to be reviewed annually.
13. At the start of the financial year 2019/20 the Council’s general reserve stood at £8,452,000. This is in excess of the minimum level of £1,500,000. However, the continuing reductions in government grant mean that these currently healthy levels of reserves will be required to buy the time necessary for the Council to deliver against further income and efficiency savings and arrive at a balanced budget without the call on general reserve balances.
14. Regarding the issue of risk, none of the elements of the base budget that members have agreed to include in either the capital or revenue budget result in the exposure of the Council to increased financial risk over and above those already identified in the budget papers considered by members. All current capital developments have been assessed and full revenue implications taken into account. I consider that the current and projected future levels of revenue and capital reserves as set out in the Medium term Financial Strategy are adequate to cover any unforeseen cost overruns that may arise from current and future operations.
Adequacy of reserves conclusion
15. I am of the opinion that, because of our record of prudent spending, careful budgeting and effective budgetary control, and especially because the Council has proved that it is willing and capable of taking the necessary actions to reduce the overall net cost of services, the desired level of general fund reserves can be maintained above £1,500,000. It can be seen from the MTFS this year that the reserves are projected to be in excess of this level at the end of the five year period. A specific programme has commenced to close the funding gap so I therefore consider that no specific action above that which is already being progressed is necessary at this time.
James Howse, Corporate Director Resource (Section 151 Officer)
Page 74 of 76 SOUTH STAFFORDSHIRE COUNCIL
COUNCIL – 25 FEBRUARY 2020
PROPOSED ADOPTION OF STAFFORDSHIRE ACT 1983 PROVISIONS
REPORT OF THE MONITORING OFFICER
PART A – SUMMARY REPORT
1. SUMMARY OF PROPOSALS
The report proposes that the relevant provisions of the Staffordshire Act 1983 in relation to street naming and numbering are adopted by the Council.
2. RECOMMENDATION
2.1 That Section 4 of the Staffordshire Act 1983 be adopted from the appointed day of 1 April 2020.
3. SUMMARY IMPACT ASSESSMENT
Do these proposals contribute to specific Council Plan objectives? The adoption of the Acts provisions will form part of POLICY/COMMUNITY Yes the legal basis for the introduction of charges for IMPACT street naming and numbering. Has an Equality Impact Assessment (EqIA) been completed? Adoption of the Act does not impact on any No particular group. SCRUTINY POWERS N/a APPLICABLE KEY DECISION No TARGET COMPLETION/ 1st April 2020 DELIVERY DATE There will be no material impact on the MTFS as a result of adopting Section 4 of the Staffordshire Act. FINANCIAL IMPACT Yes Minimal costs incurred in relation to advertising the adoption will be offset by additional income received through fees and charges. The Council has powers to introduce charges for the street naming and numbering function it undertakes. LEGAL ISSUES Yes The adoption of Section 4 of the Staffordshire Act 1983 forms part of the legal basis for such charges.
Page 75 of 76
OTHER IMPACTS, RISKS & No OPPORTUNITIES
IMPACT ON SPECIFIC Applies to all of the district No WARDS
PART B – ADDITIONAL INFORMATION
4.1 The Council currently undertakes the function of street naming and numbering as part of the wider planning service. Historically this function has not been charged for but as a discretionary service a charge may be levied. It is intended to introduce charges for street naming and numbering on a cost recovery basis and the proposed charges will be advertised prior to the proposed implementation date of 1 April 2020.
4.2 There are a number of statutory provisions that allow the Council to charge for street naming and numbering including a local act, the Staffordshire Act 1983.
4.3 In accordance with the provisions of the Staffordshire Act 1983 (the Act), the Council can, by resolution, adopt the provisions of the Act. A notice must be published in a local newspaper setting out the passing of the resolution and the general effect of the provision being adopted. The provision then cannot be adopted until at least one month from the date of publication of the notice.
4.4 Section 4 of the Act provides that the Council may allocate numbers to buildings in streets in their district and sits alongside other statutory provisions, such as the Public Health Act 1925, to allow the Council to name and number properties and streets and to charge for doing so.
4.5 Should Council agree to the adoption of the Act’s provisions, then a notice will be published and it is intended that the provisions will then be effective from 1 April 2020.
5. IMPACT ASSESSMENT – ADDITIONAL INFORMATION
None
6. PREVIOUS MINUTES
None
7. BACKGROUND PAPERS
Staffordshire Act 1983
Report prepared by: Lorraine Fowkes, Director Legal & Governance (Monitoring Officer)
Page 76 of 76