Agenda and minutes

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

            The minutes of the meetings of 7th and 21st January were taken as read and signed as correct.  It was reported that those minutes had been adopted by the Council at its meeting on 1st February, subject to the omission of the minute under the heading “Financial Estimates and District Rate 2011/12” which, at the request of Councillor Crozier, had been taken back to the Committee for further consideration.

            (Mr. J. McGrillen, Director of Development, attended in connection with this item.)

            The Committee considered the undernoted report:

“Purpose of the report

      To seek approval for the local area based initiatives identified by Members for £100k of underspend from the 2010/11 budgets.

Background

      As Members will recall, a report was considered and agreed at the Strategic Policy and Resources Committee meeting of 19th November 2010 regarding the utilisation of £100,000 of the 2010/11 underspend for the delivery of area-based initiatives. It was agreed that the monies would be distributed equally on a North, South, East, West basis within the current year. No decisions were made with regard to the boundary design for the North/South/East/West areas. The approach to this was Member led with Officers in support.

      It is anticipated that this pilot approach will be used to inform proposals to invest £1 million in new and innovative approaches to integrated service delivery at a neighbourhood level in 2011/12 which was approved at the January 2011 meeting of the Strategic Policy and Resources Committee as part of the revenue estimate setting process. It is recognised that this investment in 2011/12 is still under consideration due to the late change in estimated rates income notified by the Land and Property Services and the implications for the 2011/12 rates setting process (separate agenda item).

Key issues

      In order to drive the process forward, the following guiding principles were approved by the Committee for this pilot approach for the North/South/East/West spend:-

·         Alignment with the Council’s current corporate priorities;

·         Alignment to the priorities and requirements of local people;

·         The process should be assured as fair and equitable;

·         Initiatives should allow the budget to be spent by end of Mar 2011;

·         Expenditure must be within the Council’s legal powers and subject to any criteria and financial procedures as determined by SP&R;

·         Regular reports on progress to the SP&R Committee;

·         All learning from the pilot to inform future development of integrated service delivery at a local level.

·         Projects would be approved by the Strategic Policy and Resources Committee.

      A series of meetings have since taken place in January with Members on a North, South, East, West basis in order identify a range of projects within those areas that could be delivered within the timeframe and that would provide the greatest impact at a neighbourhood level. For the purposes of the exercise, the Shankill was included within the north of the city and Members were invited to workshops on this basis.

      Elected representatives from the Shankill area made it known to Officers that they were not happy with this approach and requested to have their own meetings and to submit their own projects for consideration. They have requested that funding should be apportioned from the North and West areas to accommodate these proposals. To this end, a number of proposals have also been tabled separately for the Shankill at the request of Members from that area which are in addition to those identified  ...  view the full minutes text for item 2.

            The Committee considered the undernoted report:

“1.0       Relevant Background Information 

1.1       Members will recall that in October 2009, the Strategic Policy and Resources Committee approved a corporate response to the Department of the Environment consultation on the ‘The Draft Local Government (Finance) Bill’ which set out high-level proposals to modernise the legislative framework for local government finance in Northern Ireland. 

1.2       The Local Government Finance was introduced to the Assembly on 19th April 2010 with the Environment Committee concluding the ‘Committee Stage’ consideration on 2nd December 2010.  It is understood that the Bill will come into operation on 1st April 2011.

1.3       The essence of the financial element of the Bill is to modernise the existing local government financial framework to ensure councils, as autonomous bodies, have increased financial flexibility and responsibility and therefore greater accountability for their own affairs.  In broad terms, the Bill seeks to:-

·         remove  the requirement for district councils to gain DOE approval for borrowings and the application of their funds or any proceeds from the sale of capital assets;

·         introduce a prudential regime for capital finance (refer to para 2.7 below), along similar lines to that which operates in England and Wales;

·         Introduce a code of practice on Treasury Management (refer to para 2.7 below )

·         introduce new financial powers including the power to invest;

·         seek to replace the general grant currently received by councils with a rates support grant and de-rating grant;

·         sets out proposals in respect to the circumstances and rates by which councils can make payments to Councillors; and

·         the creation of a Councillors’ Remuneration Panel.

1.4       In its response to the initial Finance Bill proposals, the Council requested that as part of a due diligence process, local government should be afforded the opportunity to review and comment on the detailed subordinate legislation (i.e. Regulations) which are to underpin the Local Government (Finance) Bill. 

2.0       Key Issues

2.1       Subsequently, correspondence has been recently received, dated 17th December 2010, from the DOE setting out proposals for consultation on the draft technical regulations and guidance which will underpin three important parts of the Local Government (Finance) Bill including:

            Part 1 – Financial Administration

2.2       The proposals as set out under these regulations seek to:

-     introduce a new financial management regime which is based on the CIPFA Prudential Code on Capital Finance and the CIPFA Treasury Management Code; which seeks to liberalise the ability of councils to both borrow and invest within appropriate affordability limits;

-     relax the Departmental controls for the financial management of council affairs;

-     update the circumstances whereby expenditure can or cannot be treated as capital expenditure;

-     provide for certain sums received by a council to be treated, or not to be treated, as capital receipts; and

-     outline the circumstances whereby capital receipts can be used.

            Part 2 – Grants to Councils

2.3       The proposals as set out under these regulations seek to:

-     replace the general grant currently received by some  ...  view the full minutes text for item 3.

The Committee considered the undernoted report and associated appendix:

“Purpose of the report

1.   To provide Members with a summary of the issues arising out of the various NICS Departmental Spending Plans 2011–12 to 2014?2015 which could have an impact upon the work of the Council.

      NICS Draft Departmental Budget Plans 2011-2012 to 2014-2015

2.   The NI Executive has produced a set of draft spending plans for the years 2011-12 to 2014-15 as part of the Budget 2010 process. These spending plans have been presented to the Assembly and are now available for public consultation.  The deadline for responding to each of the plans has been extended to the 16th February 2011.

3.   It is proposed that the Council respond to each of the spending plans individually.  Officers have therefore reviewed each of the plans with a view to highlighting those issues which have the potential to impact upon the work of the Council over the next 4 years and beyond.

      Key issues arising out of the NICS Spending Plans

4.   Members will be aware that the UK Spending Review announcement on 20th October 2010 presented the Executive with a much reduced funding envelope for the coming four year period.  A demand has therefore been placed on Departments to reduce the level of expenditure within their spending plans to ensure that the £4bn budget reduction in real terms over the four year period is achieved.

5.   Members will be aware that the implications of this budget include the potential for additional cost to local government, but may also negatively impact on the Council’s ability to deliver some of the capital project work currently identified in plans and programmes. 

6.   A summary of the issues identified within each of the departmental spending plans is attached at Appendix 1.  The summary contains a précis of what appears in each budget consultation document and an overview of both the positive and negative implications from each of the spending plans.

      Some of the potential key concerns for the Council include:

·         Removal of £200m capital allocation for strategic waste infrastructure

·         Emergency Planning Grant (reduction £200,000)

·         A reduction in DCAL capital funding

·         The impact of DEL funding deficit on competitiveness in the city

·         No capital provision for exhibition or conference facilities

·         No capital funding for the further development of existing business parks

·         No specific addition to NITB for 2012 events

·         NITB budget to reduce by 17% over the 4 year period

·         No allocation for York Street Flyover or Sydenham Bypass widening

·         Significant reduction in walking and cycling schemes

·         £0.55m reduction in Play Policy Implementation

·         DSD budget reductions in neighbourhood renewal

·         Lack of clarity around DSD capital spend in Belfast

·         Lack of clarity regarding part funded capital projects

7.   However the spending plans do contain a number of positive proposals for investment in the city, which provides the Council with opportunities for collaborative working with Departments and Agencies to maximise investment and regeneration.

      The most notable capital provision is £110m in the DCAL budget  ...  view the full minutes text for item 4.

            The Committee agreed to defer consideration of a report in relation to the review of the future use and management of the City Hall to enable Party Group briefings to be undertaken.

            The Committee was reminded that, at its meeting on 21st January, in considering a report on voluntary redundancy, it had deferred consideration of the two posts in the Facilities Management Section to enable a report on the review of that Section to be submitted to the next meeting of the Committee.

            The Director of Property and Projects submitted an interim report in relation to the review of the Property Maintenance Unit.  The report provided details in relation to the procurement of goods and services, the in-house workforce, the management/technical reporting structure and the financial implications associated therewith.

            After discussion, the Committee:

(i)      approved the release of the two members of staff of the Property Maintenance Unit on voluntary redundancy;

(ii)     noted the information in terms of the various factors which influenced the cost?effectiveness of the Property Maintenance Unit; and

(iii)    agreed that a report, which would be prepared by the Efficiency Unit, in respect of the Property Maintenance Unit be submitted to a future meeting of the Committee.

            The Committee deferred consideration of a report in relation to the consultation on the Local Government Reform Policy Proposals to enable Party Group briefings to be undertaken and that, if necessary, a revised report be submitted to the next meeting of the Committee scheduled to be held on 18th February.

To consider further the minute of the meeting of 21^st January which, at the request of Councillor Crozier, was taken back to the Committee for further consideration.(Copy of minute and additional report of the Director of Finance and Resources herewith.)

            The Committee considered further the minute of the meeting of 21st January which, at the request of Councillor Crozier, had been taken back to the Committee for further consideration.  An extract of the minute in this regard, together with a further report providing an update on the Revenue Estimates, is set out hereunder:

“Financial Estimates and District Rate 2011/12

      The Committee was reminded that, at its meeting on 7th January, it had agreed the cash limits for each of the Committees as follows:

      The Director of Finance and Resources reported that, since that meeting, each of the Committees had considered and agreed its Revenue Estimates in line with the aforementioned cash limits.  Based on the Estimated Penny Product of £4,893,170, which had been provided by Land and Property Services, that meant that the District Rate increase would be 2.5% for 2011/12 and would result in a Domestic Rate of 0.3002 pence and a Non-Domestic Rate of 26.2248 pence.  The summary of the key elements of the Council’s finances for the next financial year, as agreed by the Committee, would be as follows:

      Accordingly, it was

      Resolved – That the Council be recommended to approve the expenditure contained within the Departmental Estimates and, further to this, that the following District Rate be fixed to meet the estimated expenditure of the several Committees of the Council for the financial year commencing 1st April, 2011:

      Non-Domestic Rate - 26.2248 pence

      Domestic Rate - 0.3002 pence

      The Committee approved also the key messages associated with the rates increase, subject to a number of amendments which had been suggested by the Members.”

“1.   Relevant Background Information

1.1It was agreed at the Council meeting on 1 February that the revenue estimates for 2011/12 would be taken back for further consideration at Strategic Policy and Resources Committee on 4 February. This is due to the late notification by Land and Property Services (LPS) of a significant change to the estimated rates income. This report provides background on the change in estimated rates income and sets out the options for the way forward. The rates must be set by 14 February and a special Council meeting will held on Wednesday 9 February for this purpose. At the request of councillors, LPS have also been asked to attend the SP&R meeting on 4 February to respond to Members concerns. Separate information will be made available for councillors to aid their discussions with LPS at the meeting.

1.2As Members are aware, approximately 74% of the total funding for the Council’s activities comes from  ...  view the full minutes text for item 8.