Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 04 February 2014 at the
Council Offices, Holt Road, Cromer at 10.00am.
Members Present:
Mrs A Fitch-Tillett
Mr B Cabbell Manners
Mr T FitzPatrick
Mr R Oliver
Mr W Northam
Also attending:
Mrs S Arnold
Mrs A Claussen-Reynolds
Mrs H Cox
Mrs P Grove-Jones
Mr P W High
Mrs A Moore
Mr P W Moore
Officers in
Attendance:
85.
Ms B Palmer
Mr J Perry-Warnes
Mr R Reynolds
Mr R Shepherd
Mr B Smith
Mr N Smith
The Chief Executive, the Head of Finance, the Chief Accountant, the
Technical Accountant, the Head of Economic and Community
Development, the Growth and Communities Manager and the
Democratic Services Team Leader.
APOLOGIES FOR ABSENCE
Mr T Ivory, Mr J Lee and Mr R Wright
86.
MINUTES
The minutes of the meeting held on 02 December 2013 were confirmed as a correct
record and signed by the Chairman.
87.
PUBLIC QUESTIONS
None received
88.
ITEMS OF URGENT BUSINESS
None
89.
DECLARATIONS OF INTEREST
None
90.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
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91.
MEMBER DEVELOPMENT GROUP
The Leader informed Members that a recommendation had been made by the
Member Development Group regarding the terms of reference for the Group.
It was proposed by Mrs A Fitch-Tillett, seconded by Mr W Northam and
RESOLVED
To receive the minutes of the Member Development Group meeting held on 16
September 2013 and to approve the following recommendations:
i.
ii.
Representation on the Member Development Group to be on non- political lines
and should include Members and Officers.
The future role and objectives of the Member Development Group should
include:
a) the development and delivery of the agreed Development Programme
b) to support the delivery of a Human Resources Strategy and Workforce
Development Plan
c) to develop an Induction Programme for the new Council following Elections,
including the recruitment of candidates on a non- political basis.
d) to focus on appropriate development for members towards strengthening their
role externally in the community within North Norfolk, as well as internally with
regards to the corporate direction of the council.
92.
JOINT STAFF CONSULTATIVE COMMITTEE
RESOLVED
To receive the minutes of the meeting of the Joint Staff Consultative Committee held
on 09 September 2013
93.
BUDGET MONITORING 2013/14 – PERIOD 9
Mr W Northam, Portfolio Holder for Finance introduced this item. He explained that
the report summarised the budget monitoring position for the revenue account to the
end of December 2013. He advised members that this was the third consecutive
reported underspend. He went on to inform members that the costs of the tidal surge
of 5th December 2013 were still being assessed, with current estimate at £2.7m.
Several options for recovering some of the costs were being explored. Mr Northam
thanked the Leader, Mr T FitzPatrick for acting so promptly in pressing the case with
the Government for financial support.
Mr Northam then highlighted some of the service areas where there were savings
and additional income. He also drew members’ attention to the inclusion of a capital
budget for the Splash Roof Remedial works, which would be funded by a virement
from the underspends within the capital programme and a proposed external match
grant funding of £30,000.
Mr Northam concluded by saying that the revenue budget was showing an estimated
full year underspend for the current financial year of £163,455 and that it was
anticipated that the overall budget for the current year would be achieved.
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It was proposed by Mr W Northam, seconded by Mr R Oliver and
RESOLVED
1. To note the contents of the report and the current budget monitoring position.
2. To agree to delegate authority to the Chief Executive, to provide funding from the
Enabling Fund (of a sum not exceeding £24,000) to support the development of
both the design and business case for the future re-development of the Melton
Constable Goods Shed site and buildings.
To make the following recommendation to Council:
The updated budget as set out in section 5.1, Table 3 of the Budget Monitoring
Report.
Reason for the decision:
To ensure that Members are updated on the current budget monitoring position for
the Council.
94.
TREASURY MANAGEMENT STRATEGY
Mr W Northam, Portfolio Holder for Finance introduced this item. He explained that
the report set out the details of the Council’s treasury management activities and
presented a strategy for prudent investment of the Council’s surplus funds. He
informed Members that regulatory changes were taking place in the UK, United
States and Europe that moved away from bank bail-outs to bank resolution regimes
in which shareholders, bond holders and unsecured creditors were ‘bailed in’ to
participate in the recovery process. In addition, there were also proposals for EU
regulatory reforms to Money Market Funds which would result in these funds moving
to a variable net asset value basis (VNAV) and losing their ‘triple A’ credit rating.
Consequently, in light of these developments, diversification of investments between
creditworthy counterparties to mitigate bail-in risk would become even more
important in the Council’s investment strategy.
It was proposed by Mr W Northam, seconded by Mr B Cabbell Manner and
RESOLVED to recommend to Council:
The Treasury Management Strategy Statement is approved.
Reason for the decision:
To ensure that the Council is provided with a flexible treasury strategy enabling it to
respond to changing market conditions and ensure the security of its funds.
95.
2014/15 BUDGET REPORT
Mr W Northam, Portfolio Holder for Finance, introduced this item. He explained that
the provisional Local Government Finance Settlement (LGFS) for 2014/15 had been
announced. Total funding (excluding the New Homes Bonus) was expected to
reduce by 13.3% in 2014/15 (compared to 2013/14) and then by a further 15.4% in
2015/16. Mr Northam said that the provisional settlement for supporting sparsely
populated areas for 2014/15 equated to £56,738 in each of the next two years.
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The provisional LGFS had announced that the Council Tax Freeze Grant would be
extended for both 2014/15 and 2015/16 and would be equivalent to a 1% increase in
council tax. Mr Northam confirmed that there would be no council tax increase for the
third year running.
The provisional LGFS included announcements on the New Homes Bonus (NHB) for
2014/15. The provisional allocation of NHB for 2014/15 for NNDC was £1,264,722.
This was based on the council tax data return submitted in October 2013 and
included additions of 172 and a reduction in empty properties of 325. Mr Northam
confirmed that 80% of the NHB would be taken into the base budget and 20% would
be placed into an earmarked reserve.
Mr Northam concluded by informing Members that the most significant impact of the
recent storm surge was in relation to the emergency repairs to assets and the coastal
assets and sea defences. Whilst various avenues were being pursued to try and
recover as much of the costs incurred as possible, in the meantime funding for these
costs would need to be allocated from NNDC reserves.
It was proposed by Mr W Northam, seconded by Mrs A Fitch-Tillett and
RESOLVED to recommend to Council:
1)
2)
3)
4)
5)
6)
7)
8)
9)
The 2014/15 revenue budget as outlined at Appendix E;
That the surplus of £533,425 be allocated to the
general reserve;
That the demand on the Collection Fund, subject to any
amendments as a result of final precepts still to be
received be:
a. £5,205,386 for District purposes
b. £1,599,741 (subject to confirmation of the final
precepts) for Parish/Town Precepts;
The statement of and movement on the reserves as
detailed at Appendix I;
The updated Capital Programme and financing for
2013/14 to 2016/17 as detailed at Appendix J;
The new capital bids as detailed at Appendix K;
The prudential indicators as included at Appendix L;
The approval of a three year arrangement for the
provision of Monitoring officer through NP Law as
detailed within section 5.3.4 of the report;
That members note the current financial projections for
the period 2015/16 to 2017/18.
Reasons for the decision:
To recommend a balanced budget for 2014/15 for approval by
Council on 26 February 2014.
96.
MANAGING PERFORMANCE Q3 2013/14
The Leader, Mr T FitzPatrick introduced this item. He acknowledged the good
progress that was being made and endorsed the actions being taken by management
where there were any areas of concern.
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It was proposed by Mr T FitzPatrick, seconded by Mr B Cabbell Manners and
RESOLVED
To note the report, welcome the progress being made and endorse the actions laid
out in Appendix M being taken by management where there were areas of concern.
Reason for the decision:
To ensure the objectives of the Council are achieved.
97.
NORTH LODGE PARK ASSET TRANSFER
The Portfolio Holder for Assets, Mr R Oliver introduced this item. He informed
members that there had been lengthy discussions with Cromer Town Council
regarding the future of North Lodge Park. Both parties agreed that an asset transfer
would provide the opportunity for Cromer Town Council to achieve long-term benefits
for the local community in line with local views regarding its future use. The transfer
would also lead to revenue savings for the District Council in the long-term.
Mr P W Moore wondered whether this would set a precedent for other towns across
the District to take over NNDC assets such as car parks. Mr R Oliver replied that
each proposal for an asset transfer would be considered on a case by case basis.
However, they would need to demonstrate that they could operate the asset more
effectively than the District Council. He reminded members of the recent transfer of
the Wells Tourist Information Centre to Wells Town Council.
It was proposed by Mr R Oliver, seconded by Mrs A Fitch-Tillett and
RESOLVED
1. To agree the principle of disposing of North lodge Park on a 99 year leasehold
basis as set out in this report;
2. To delegate authority to the Chief Executive (in consultation with the Cabinet
Members for Assets and for Localism & the Big Society) to settle the terms of, and
complete a lease of North Lodge Park to Cromer Town Council, including:
 extent of the asset
 use of the Park and any covenants and overage
 costs
3. To delegate authority to the Chief Executive (in consultation with the Cabinet
Members for Assets and for Localism & the Big Society) to make to Cromer Town
Council a Council grant not exceeding £150,000 to be funded from the 2nd homes
Council Tax reserve for community initiatives to cover the initial period of
ownership.
Reasons for the decision:
To provide the opportunity for Cromer Town Council to achieve the long-term benefits
of the Park for the local community and align control of the asset with local views
over its management and use. Also for NNDC to realise savings in the long-term over
the management and maintenance of North lodge Park
The Meeting closed at 10.23 am
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_______________
Chairman
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