Agenda and minutes

            An apology for inability to attend was reported from Councillor Rodway.

            The Committee considered the undernoted report in relation to the Council’s high level strategy and Corporate Plan for the period 2008-2011:

“1.0      Relevant background information

1.1        This report sets out the context of the special Strategic Policy & Resources Committee meeting which is scheduled for 13th June.  At this meeting members will be asked to:

·         agree the Council’s high level strategy, its corporate plan, for the period 2008-2011;

·         note the arrangements which will allow the committee to fulfil its role in ensuring delivery of the corporate plan in line with affordability;

·         agree that reports are brought to the Committee in September outlining how the Council will move towards area and thematic working on a more consistent basis and outlining the programme management and accountability arrangements for the main programmes and projects;

·         agree a proposed approach to working up detailed project proposals relating to the city investment strategy;

·         agree a series of recommendations to put in place an effective asset management strategy which will align the use of Council assets with the Council’s strategy and

·         agree the capital programme for 2008/09 and agree a process for development of the programme for 2009/10 onwards.

      Reports on each of these items are attached with this cover report.

2.0       Corporate Plan – Strategy 2008-11

2.1       The document setting out the corporate plan 2008-2011 represents the culmination of 9 months work with the Committee and with Party Groups to set out the Council’s ambitions for the future.  The Plan is based upon extensive internal and external analysis, including our large-scale public consultation exercise and all Party Groups have been briefed on the emerging strategy.

2.2       The corporate plan embodies what we stand for.  The messages that flow from the plan are as multi-layered and diverse as the organisation it represents.  The challenge is to express the philosophy of Belfast City Council within the plan in as clear and concise a way as possible.  This means cutting away the detail, shrinking the work of the last 9 months to a few pages of positive messages about what the Council stands for, about the way its Members and officers will behave, of its commitment to the people of Belfast and the city and the action that will reflect this in the year ahead.

2.3       The key messages emerging from the corporate plan are:

·         Better together – working with others to create a shared vision and delivering together;

·         Today’s action, tomorrow’s legacy – city investment that improves quality of life now and in the future;

·         Value for Money, minimising the rates burden, freeing up resources for more delivery on the ground;

·         Better Services – continuing to enhance the level of service offered to the citizen.

      In short; Better together; Better for the Future; Better Value; Better Services.

2.4       More information on the key messages can be found at page 3 of the draft Corporate Plan and it is recommended that a workshop be held with Members to explore the communication of the corporate plan in more detail and  ...  view the full minutes text for item 2.

            The Committee considered the undernoted report in relation to the City Investment Strategy:

“1.0     Relevant background information

1.1       Members, as part of their Corporate Planning deliberations, have indicated their support on a number of occasions for the creation of a City Investment Strategy and Fund.  The intention of the Strategy is to provide tangible examples of the Councils leadership role within the city and create a lasting legacy for future generations.

1.2       A series of Party Group briefings took place in April in regard to the City Investment Strategy, the associated Asset Strategy and the linked Capital Programme. Members will accept that these strands of activity are not divorced from one another and are mutually reinforcing, with the City

            Investment Strategy giving expression to the impact that the Council wants to make within the city, with its deliverability to be considered within the context of financial affordability.

2.0       Key Issues

2.1       Members will accept that Belfast is now at an important stage of development where a further step change in its fortunes is possible.  The Council can help to facilitate and deliver these changes through its vision and leadership which enables things to happen through the efficient and innovative allocation of its resources.  Real hands on civic leadership can now be applied to push Belfast over the tipping point to consolidate prosperity by focusing resources on a limited number of strategic projects within the city.

2.2       Why a City Investment Strategy

2.2.1    A key characteristic of the City Investment Strategy, as identified by Members, is the idea of growing and maximising revenue from the city’s rate base.  Members have stated that a key benefit of the Investment Strategy is its potential to create a virtuous cycle whereby the Council’s investment grows the rate base and provides income to improve services and connect more people to the opportunities which emerge and, thereby, improving the quality of life within the city and attracting further investment.

2.2.2    It is the intention that the City Investment Strategy would support the development of a number of landmark capital schemes within the city and would pump-prime or lever additional investment into the city.  It will be a clear demonstration of the Council’s commitment to action and its wish to contribute to the vibrancy, prosperity, culture and attractiveness of the city.

2.3       What criteria will be used

2.3.1    Overall the City Investment funding needs to be used strategically with a view to securing the Council’s overall strategic objectives and vision for Belfast and ensure a positive return for the city.  In that context, Members have agreed the following criteria for the City Investment Strategy.

Overall criteria:

1.   Contribute to the Council’s corporate priorities and vision for the city.

2.   Encourage investment from and engagement of public, private and voluntary sectors, in the achievement of that aim.

3.   Create a focal point for the Council to play a leading role in the development of the city; creating a ‘can do’ attitude amongst its citizens and a  ...  view the full minutes text for item 2a

            The Committee considered the undernoted report in relation to the development of a Council Asset Strategy:

“1.0     Relevant background information

            Current position and feedback from the Party Group Briefings in April

1.1      The Council is a major asset holder with a portfolio of over 260 land and property assets. Currently operational and non?operational property is held under the stewardship of the responsible department with surplus assets held in the corporate land bank which is managed by the Core Improvement Team (Estates Management Unit). Whilst there are many examples of effective and proactive management of some assets, the management of the entire council asset base lacks a joined-up corporate approach and strategic framework. The Council is also increasingly being approached by third parties in regard to the disposal of assets. These approaches are dealt with in a reactive way on the ad-hoc basis that they are received with little overall acknowledgement of the wider context of the organisation.

1.2      Members will recall that a series of Party Group briefings took place in April in regard to the development of a City Investment Strategy, an Asset Management Strategy and the Capital Programme. Members accepted that these strands of activity are not divorced from one another and are mutually reinforcing.  At these briefings there was a clear acceptance of the need for an effective asset management strategy and recognition of the potential scope to rationalise and potentially dispose of non-operational assets which have been declared surplus to either Service and/or Council requirements to enable the Council to both fulfil its strategic priorities for the city and to improve service delivery.

2.0      Key Issues

            What is Asset Management?

2.1      There are many definitions of asset management but essentially it is the activity that ensures that the land and property asset base makes the maximum possible contribution to achieving the goals and objectives of an organisation. It is important that assets are not viewed solely in economic terms but that the wider social and environmental benefits of assets are also recognised.

            Reasons why an Asset Strategy is needed now in Belfast City Council

2.2      In addition to the reasons highlighted above there are a number of other reasons why it is timely for the Council to start looking more strategically at how it uses its assets in order to maximise their benefit for the Council.  These include -

§         ensuring greater alignment with the Council’s Capital Programme priorities, the emerging City Investment Strategy and the Council’s strategic priorities and vision

§         meeting growing user expectations

§         reinforcing the Council’s civic leadership role

§         public sector reform and modernisation – increasing focus on VFM and efficiency

§         ageing assets – many of the Council’s property assets are coming to the end of their life spans and it will be necessary to start looking at how these assets will be used/replaced in the future

§         potential release of under-utilised assets – under?utilised assets are a major drain on resources as they are ineffective and  ...  view the full minutes text for item 2b

            The Committee was reminded that the Council invested through its Capital Programme, significant sums of money to improve service provision and its stock of assets.  The scale and content of the Capital Programme was inextricably linked to the Revenue Budget and issues of affordability, financial prudence and sustainability.  It was therefore important that there was a clear link between the Programme and the Council’s strategic objectives for the City and an alignment with the budgeting process.  This would support an integrated system of financial planning and resource allocation.

            A series of Party Grouping briefings had been held during April in order to update the Members on the current status of the Capital Programme and to provide information on the range of projects which were currently included or proposed, with a view to seeking the direction of the Members on how the Capital Programme could be rationalised and brought within affordability limits.  At those briefings, the Members had accepted that a number of Capital projects had reached a certain stage of development and commitment and could be proceeded further.  However, the Members had indicated also that there was now an opportunity to take affirmative steps to rationalise the Capital Programme in terms of need, affordability and the Council’s capacity to deliver.

            To date those schemes included in the Capital Programme had emerged and/or had been proposed by Standing Committees or officers with a limited challenge put forward in terms of priorities, finance, level of need and the capacity to deliver.  Consequently, it was unlikely that the levels of investment contained currently within the Capital Programme were achievable within the Council’s financial constraints, were not adequately justified and would be difficult to align with the corporate priorities.  The overall capital expenditure, if the Council were to implement the 150 projects proposed currently for the period 2008-2013, would be £122.5 million, most of which would need to be funded via rate-financed loans.  In order to align the Capital Programme to both the corporate priorities and affordability, it was recommended that the following approach be adopted:

            1.  Capital Programme 2008-2009

            For the period 2008-2009, all the projects underway and/or committed to (numbers 1 – 57 as set out in Appendix 1) be progressed.  These projects had either commenced or had reached a point where they would be difficult contractually to stop and would result in abortive expenditure.  While these projects equated to £26.73 million capital expenditure, £5.375 million of that amount had been allocated as part of the North Foreshore Closure Plan.  Furthermore, the £2.235 million included for the rolling replacement vehicle programme had been budgeted for within the Revenue Estimates.  Therefore, the estimated total net capital spend for 2008-2009 would be £19.5 million.

            2.  Capital Programme 2009-2010 Onwards

            The remainder of the projects proposed, estimated to be in excess of £80 million, be put through the revised Capital Programme prioritisation “Gateway” process.  This process would involve:

·         Initial agreement and prioritisation of projects by the Strategic Policy and Resources Committee;

·         consideration of potential new  ...  view the full minutes text for item 2c