MINUTES OF A SPECIAL MEETING OF THE FULL COUNCIL HELD ON TUESDAY, 8 MARCH 2016 AT 9.30 AM

Transcription

1 MINUTES OF A SPECIAL MEETING OF THE FULL COUNCIL HELD ON TUESDAY, 8 MARCH 2016 AT 9.30 AM Present: In Attendance: Apologies: Staff Present Councillor Mrs A J Martin (Chairman) G O'Neill, E W Moulson, F V Hicks, Mrs K M Bennett, G Bilsborough, C R Daly, J L Francis, Mrs F M Grottick, Mrs A W Mumford, M Nelhams, Mrs E M Peacock and S M Sims (Vice-Chairman) Mr J Korentin Abraham (Financial Consultant) Councillors R Dorrien-Smith, A S Guy, R I McCarthy and Mrs C S Savill Senior Officer: Democratic and Licensing, Officer: Democratic Services and Member Liaison, Senior Manager: Democratic & Corporate, Senior Manager: Infrastructure & Planning, Senior Manager: Services to Our Community, Senior Manager: Strategic Development and Chief Executive C1/16 Declarations of Interest Councillor Mrs K M Bennett declared a non-registerable interest as the coordinator of the Friends of Islands Transport (FRIST) lobby group. Councillors Mrs A W Mumford declared a non-registerable interest as a minor shareholder in the Isles of Scilly Steamship Company. Councillor F V Hicks declared a non-registerable interest as a minor shareholder in the Isles of Scilly Steamship Company. Councillor Mrs E M Peacock declared a Disclosable Pecuniary Interest in any matters pertaining to off-island boating. Councillor G Bilsborough declared a Disclosable Pecuniary Interest in matters pertaining to Life Long Learning as his wife was employed by them, and she was also employed by the Authority in the registration department. Councillor Mrs F M Grottick declared a non-registerable interest in matters that affected her role as a member of the Cornwall Partnership NHS Trust. Councillor G O Neill declared a disclosable pecuniary interest in any discussions that could affect the employment of his partner who worked for the Local Authority as a Senior Manager. The Senior Manager: Finance and Resources declared a disclosable pecuniary interest in any discussions that could affect his wife s employment as a member of bank staff at the school.

2 FC Page 2 The Chief Executive declared a disclosable pecuniary interest in any discussions that could affect his wife s employment by Age UK on the islands. All Senior Managers declared a disclosable pecuniary interest in any discussions that concerned their employment with the Local Authority. C2/16 Urgent Items Councillor E W Moulson asked that Item 7 Review of Regulatory Minimum Revenue Provision (MRP) be taken before Item 6 Budget, as he felt that it was not prudent to set the budget without taking the later Item into account. This was agreed by the Chairman. PART 1 REPORTS REQUIRING A DECISION C3/16 Council Tax Base 2016/17 The Senior Manager: Finance and Resources presented his report entitled Council Tax Base 2016/17 and dated 26 February Members discussed the report. 1. That a Council Tax Base of 1, band D equivalent properties be approved for 2016/ That a budgeted Council Tax collection rate of 97.9% be approved. 3. That the proposed National Non Domestic Rates (NNDR) estimated net yield of 1.677m, based on the NNDR return at Appendix, be approved. (Vote was unanimous) C4/16 Council Tax 2016/17 The Senior Manager: Finance and Resources presented his report entitled Council Tax 2016/17 and dated 25 February Members discussed the report. 1. That the Council Tax requirement for the Council s own purposes for 2016/17 be approved as 1,472, That the following amounts be calculated for the year 2016/17 in accordance with Chapter Three of the Local Government Act 1992 (a) 4,782,597 being the aggregate 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. (Nil) The budget requirement. (b) 3,310,597 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act. This includes the sum the Council estimates will be transferred from the

3 Page 3 FC (c) (d) Collection Fund to the General Fund ( nil). Sources of funding, less Council Tax. 1,472,000 being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(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). The Council Tax 1, being the amount calculated 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 parish precept relates. (Vote was unanimous) C5/16 Council Tax Reduction Scheme The Senior Manager: Finance and Resources presented his report entitled Council Tax Reduction Scheme and dated 25 February He said that the department had little time to fully consider the repercussions of altering the current levels, and so he recommended the continuance of the current scheme pending a review later in the year. Councillor E W Moulson agreed but asked that a re-examination of the scheme occur as soon as practicable. Councillor G O Neill seconded his amendment to the proposal. The Senior Manager: Finance and Resources pointed out that such a recommendation was already embedded in the report. 1. That the continuation of the existing Council Tax Support Scheme (CTSS) for 2016/17 be approved with uplift to payments in the event of an increase to Council Tax rates. 2. That reassessment of the Council Tax Support Scheme, directed in 2015/16, be re-scheduled to a future time when capacity can allow for a more detailed examination of the scheme. (Vote was unanimous) C6/16 Review of Regulatory Minimum Revenue Provision (MRP) The Senior Manager: Finance and Resources presented his report entitled Review of Regulatory Minimum Revenue Provision (MRP) and dated 26 February He pointed out that the Local Government Association had advised that the Minimum Revenue Provision be reviewed, and the report outlines the review.

4 FC Page 4 He explained that historically the Authority had looked to reduce debt by 4% per annum, but the report outlines a move towards repayment of debt at a rate of 2% for the proceeding 50 years. Councillor E W Moulson said that he could not justify the move as it would burden the debt onto the next generation of islanders. Mr J Abraham-Korentin, a consultant accountant for the Authority, explained that all future local government settlements were unknown going forward so a prudent approach was taken to forecasting settlements. Councillor G Bilsborough said that no forecast was accurate, so there was little point in looking at forecasts to the year 2067 when the debt was due to be paid in full. Councillor Mrs F M Grottick felt that the impact may be on the children of Scilly. Mr J Abraham-Korentin said that the report outlined an approach whereby borrowing rates were reduced, which would alleviate the financial burden on the Authority in future years. Councillor J L Francis thanked him for the clarity and felt the approach was the correct course of action. Councillor G O Neill proposed the recommendation, with an alteration from the 40 year period to a 50 year period. Councillor J L Francis seconded it. That an amendment to the 2016/17 Regulatory Minimum Revenue Provision Policy Statement be approved to enable the Council to provide for MRP on previously supported General Fund borrowing in equal instalments over a 50 year period commencing 1 April (The vote was passed by 8 votes to 3, with Councillors G Bilsborough, E W Moulson, and Mrs F M Grottick voting in opposition, and 1 abstention from Councillor C R Daly). (The Senior Manager: Services to Our Community, the Senior Manager: Infrastructure and Planning, and the Senior Manager: Strategic Development left the chamber). C7/16 Budget The Chief Executive presented his joint report with the The Senior Manager: Finance and Resources entitled Budget 2016/17 and dated 26 February 2016.

5 Page 5 FC He said that it had proved difficult to formulate a balanced budget under austerity measures applied to local government, and that the Local Government Association had warned the Authority to plan for further cuts through the government s Spending Review to be announced shortly. He explained that he had worked closely with the Senior Manager: Finance and Resources to formulate a financial road-map to take into account changes in the way that local government will be funded, and that the Authority will work closely with the government to identify ways to fund services for the islands. He pointed out that the Section 151 Officer (Senior Manager: Finance and Resources) had a duty to ensure a balanced budget was set for the financial year by 11 March 2016, and that a Section 114 Notice would have to be issued by the Section 151 Officer if he felt the budget was not realistically achievable. The Senior Manager: Democratic and Corporate outlined that the ramifications of setting an unbalanced budget could lead to the Secretary of State intervening and taking control of the Authority s financial matters. Councillor Mrs F M Grottick said she was unclear on the situation and asked for further advice from the legal advisor (Senior Manager: Democratic and Corporate). The Senior Manager: Democratic and Corporate replied that it was not his place to make comment on specific courses of action for Members in terms of budgets, and that the report put before Members was the culmination of extensive collaborative work between the Chief Executive and the Senior Manager: Finance and Resources and should be carefully considered. (The Senior Manager: Democratic and Corporate left the chamber). Councillor G Bilsborough proposed that the fees set by the Transport Economic Development and Infrastructure Committee be referred back to them on the basis of them being too high. He also proposed that the word preferably be struck from the report with regards to the future of residential care provision on the islands. Councillor Mrs F M Grottick said that it was inevitable that residential care fees would have to increase, and that a full options analysis needed to include the scenario of no residential care on the islands, so as to provide the most comprehensive report possible from which Members could make a decision. Councillor Mrs K M Bennett felt that the airport fees should be set for the year with no increase, and the matter sent back to the Transport Economic Development and Infrastructure Committee. She hoped that the subsequent debate on the matter would be chaired by an independent person from outside of the Authority.

6 FC Page 6 Councillor E W Moulson said that he was strongly opposed to the 15% increase in airport fees and that it was sending the wrong signals to the community and to the Isles of Scilly Steamship Company, the sole commercial operator using the airport. (The Senior Manager: Infrastructure and Planning re-entered the chamber) Councillor Mrs K M Bennett proposed that no rise in airport fees be agreed. Councillor G O Neill felt that any discussion to refer the decision back to the Transport Economic Development and Infrastructure Committee was flawed as the decision of that committee was borne of a lengthy debate opposed to the relatively brief discussion at Full Council, with many Members missing, to ignore their decision. The Chairman agreed with this and said that such a decision by Council would infer that the committee s decision was not to be trusted. She highlighted the need to balance the budget of the airport, as indicated in the report and the recommendation of the committee. Councillor C R Daly asked for clarification around the impact of the airport budget being unbalanced, and how it related to the budget of the Authority as a whole. The Senior Manager: Finance and Resources replied that the airport budget was held separately to that of the Authority as a whole, and so one did not affect the other. Councillor E W Moulson proposed that an increase in airport fees be rejected and the matter be referred back to the Transport Economic Development and Infrastructure Committee for further consideration. Councillor J L Francis seconded this, and said that he would have voted against it as a Member of that committee had he been able to attend the meeting of the Transport Economic Development and Infrastructure Committee where airport fees were discussed. Councillor Mrs K M Bennett felt that a potential increase in passenger numbers would negate the need to increase airport fees. Councillor G O Neill replied that such a premise was not based on evidence and that the proposed airport budget would then be based on an entirely hypothetical forecast to suit the argument for no increase in airport fees. Councillor Mrs A W Mumford felt that Council would be better advised to accept the recommendation of the committee and revise it at a later date, should Council feel it necessary, following a further review by the committee and in discussion with the commercial operators.

7 The Vice-Chairman seconded the proposal. Page 7 FC A vote was held on the proposal of Councillor E W Moulson to reject the increase in airport fees and refer the decision back to the Transport Economic Development and Infrastructure Committee. In favour of the proposal: Councillor G Bilsborough Councillor M Nelhams Councillor Mrs K M Bennett Councillor F V Hicks Councillor E W Moulson Councillor J L Francis Councillor Mrs E M Peacock Councillor C R Daly Councillor Mrs F M Grottick Against the proposal: Councillor Mrs A J Martin (Chairman) Councillor S M Sims (Vice-Chairman) Councillor G O Neill Councillor Mrs A W Mumford (The vote was won by 9 votes to 4) (The Senior Manager: Infrastructure and Planning left the chamber) Councillor G Bilsborough illustrated his concern at the fees required for the disposal of paint at the waste management site. Councillor Mrs A W Mumford proposed recommendation 1 in the report, to propose the remainder of the fees and charges as outlined in the report. Councillor C R Daly seconded the proposal. (The vote was won by 11 votes to 1, with Councillor G Bilsborough voting against the motion) The discussion moved onto recommendations 2 and 3 of the report, relating to capital and revenue budget estimates, and the action plan at 4.10 of the report relating to efficiency saving measures. The Senior Manager: Finance and Resources said that it was important to take recommendations 2 and 3 together. The Chairman asked that and beyond be deleted from the capital budget estimate recommendation.

8 FC Page 8 Councillor C R Daly felt that the Sports Hall on St Mary s was being subsidised by the community for leisure activities for St Marys residents primarily, whereas offislands used community halls at no cost to the Authority. Councillor Mrs F M Grottick said that she had wide concerns about the savings plan, and that she considered that the process moved too quickly and felt pressured. She pointed out that people s jobs were being discussed in the chamber when discussing efficiencies in the report, and that a decision needed to be reached carefully by Members, with supporting evidence. Councillor E W Moulson said that he was concerned that the cuts proposed in the report were not achievable, and asked the Chief Executive for some categorical reassurance over the implementation of the savings. The Chief Executive replied that plans would be made to deliver the savings within the year 2016/17 and that he had no concerns presently about the viability of the plan. The Chairman pointed out that the Section 151 Officer had given his backing to the report and savings, and that the forecast was considered to be robust. She also pointed out that talks with central government were ongoing around funding arrangements for the islands, and that Member support was needed to deliver the savings and support the Authority. Councillor G O Neill remarked that he believed the workplan did not entirely represent the wishes of Members who attended the finance workshops, and that huge areas of concern raised by Members were not addressed in the plan. He added that cutting frontline services would not be well-met by the community without first addressing other issues raised by Members at the workshops, but that he would support the proposal with the understanding that all other areas discussed by Members be reinstated to the plan at the soonest opportunity. The Chairman said that a subsequent financial workshop will be held. Councillor G Bilsborough remarked that cuts were necessary in order to balance the budget, but that government should be lobbied further to assist with funding once the savings process had been exhausted and the Authority was still in financial difficulties. Councillor C R Daly said that staffing represented the majority of costs to the Authority, and so it was natural for staff savings to be the main focus for the Authority.

9 Page 9 FC He proposed that the Sports Hall be removed from the Authority s portfolio and area of service. Councillor J L Francis felt that the beaurocratic and clerical side of operations of the Authority needed to be streamlined before other elements of cuts were to be considered. The Chairman said it was incumbent on Chairmen of committees to identify savings wherever possible and that the savings plan represented a minimum level of savings. Councillor Mrs F M Grottick proposed that the residential care line entry in the savings plan be amended to show: phased introduction of new service arrangements following on from a full options analysis and further discussion and sanction from Members. She said that she was concerned that the document seemed to second-guess the outcome of the options analysis prior to it taking place. A vote was taken on the proposal. (The motion was passed unanimously, with Councillor G Bilsborough abstaining from the vote) Councillor Mrs A W Mumford proposed that recommendation 2 of the report be approved. Councillor G O Neill seconded the proposal. (The vote was won by 11 to 1, with Councillor C R Daly voting against the motion). Councillor Mrs F M Grottick said that she had reservations about the capital budget with regards to the proposed cost of demolition of Carn Thomas, and investment in Smart Islands. She said that she had expected a workshop to be held before today s meeting to support Members making any decision on the Smart Islands project. She also described her disappointment that the cost of demolition of Carn Thomas was now estimated to be 600,000 when she felt that Members were initially advised that the contribution would be in the region of 75,000. The Chairman said that the decision made in 2007 by the Planning and Development Committee to ratify the Sustainable Plan was a key decision and the Smart Islands project was simply putting that Plan into motion. The Chief Executive explained that no spend on Smart Islands would be incurred by the Authority in ratifying the Capital Programme as a standalone document, and that any commitment to spend would have to be ratified through the normal

10 FC Page 10 mechanism of Members having a business plan before them, as per all other decisions where Officers have proposed expenditure. Councillor J L Francis felt that the Authority was historically very inefficient in the area of procurement compared to the private sector, and that the Authority should seek to secure some freedoms in that regard to ensure better value for money. The Chief Executive replied that the Authority were governed by legislation relating to procurement for Local Authorities, and that the report outlining the demolition costs for Carn Thomas were estimated in the original report to Members. Councillor Mrs F M Grottick asked which reserve fund the demolition would come from. The Senior Manager: Finance and Resources replied that he envisaged it would come from the housing reserves. He also pointed out that the amount was only an estimate and that cost against projects would be evaluated to ensure money was being spent in the most effective places. Councillor G O Neill remarked that Smart Islands seemed like a luxury that the Authority could not afford and that he lamented the lack of a workshop for Members prior to the recommendation before them. Councillor E W Moulson felt that the Authority should support tourism wherever possible, and focus more attention and resources on helping tourism grow on the islands. Councillor J L Francis agreed and opined that tourism was vital to the islands and represented the greatest economic benefits. The Chairman said that it was entirely regrettable that the workshop had not happened sooner, but that the Authority had to show to government that it was working towards responsibly sustaining its own future, and that the Smart Islands project was considered to be a key way of demonstrating that. The Senior Manager: Finance and Resources pointed out that the Capital Programme was entirely notional from a financial point of view and did not commit the Authority to any spend. The Vice-Chairman proposed that Smart Islands be removed from the capital programme and that recommendation 3 of the report be approved without it, though could later be reinstated by Council at a subsequent meeting. Councillor E W Moulson seconded the proposal. (Vote was unanimous in favour of this proposal)

11 Page 11 FC Councillor G Bilsborough proposed acceptance of recommendation 4 of the report. Councillor Mrs F M Grottick seconded the proposal. (Vote was unanimous in favour of this proposal) 1. That the consolidated Fees and Charges for 2016/17 as presented and modified at each committee be approved, with the exception of the airport fee increase recommended by the Transport Economic Development and Infrastructure Committee. 2. That the Transport Economic Development and Infrastructure Committee recommendation of a 15% increase in airport fees be referred back to them for consideration, and that a 0% increase in airport fees be implemented for the year 2016/ That the revenue and capital budget estimates, as presented to committees, for 2016/17 be approved. 4. That actions proposed in paragraph 4.10 of this report to address forecast budget deficit in 2016/17 be approved. 5. That the projected position on reserves be noted. (The Senior Manager: Infrastructure and Planning, the Senior Manager: Services to Our Community, and the Senior Manager: Strategic Development returned to the chamber). (The Vice-Chairman left the chamber). C8/16 Treasury Management Strategy 2016/17 The Senior Manager: Finance and Resources presented his report entitled Treasury Management Strategy 2016/17 and dated 25 February Councillor G Bilsborough proposed acceptance. Councillor G O Neill seconded the proposal. 1. That the key recommendations of CIPFA s Treasury Management in the Public Services: Code of Practice (the code) provided at Appendix A and as recommended at paragraph 3.1, as described in Section 5 of the Code be accepted. Accordingly, the Authority will create and maintain, as the cornerstones for effective treasury management: 2 A Treasury Management policy statement, stating the policies, objectives and approach to risk management of its treasury management activities is provided at Appendix A.

12 FC Page 12 3 Suitable Treasury Management Practices (TMPs), setting out the manner in which the organisation will seek to achieve those policies and objectives, and prescribing how it will manage and control those activities. 4 The Authority (i.e. Full Council) will receive reports on its treasury management policies, practices and activities, including, as a minimum, an annual strategy and plan in advance of the year and an annual report after its close, in the form prescribed in its TMPs. 5 The Authority accepts responsibility for the implementation and regular monitoring of its TMPs and for the execution and administration of treasury management decisions to its Chief Finance Officer, who will act in accordance with the organisation s policy statement and TMPs and, if he/she is a CIPFA member, CIPFA s Standard of Professional Practice on Treasury Management. C9/16 Park House Fees and Charges (The Vice-Chairman returned to the chamber) The Senior Officer Adult Social Care presented his report entitled Park House Fees and Charges and dated 2 February Councillor G Bilsborough remarked that dementia care should be funded by the NHS as it was a disease. The Senior Officer: Adult Social Care said that it was the same situation across the country. Councillor E W Moulson lamented the need to increase fees but noted that the prices for care on the islands were considerably lower than those charged on the mainland. The Vice-Chairman said it was vital to set fees and charges at the responsible level for every service, otherwise the short-fall will hit the Authority down the line, as had been happening currently. Councillor Mrs K M Bennett asked if there was a risk of out-pricing the service, thereby making it too expensive to reasonably access. The Senior Officer: Adult Social Care said it was a risk, and that was why in his opinion the model for residential service on the islands was not a viable business model. He said that if fees were to go up and the health service did not wish to pay those fees then those people funded by the health service could be affected. Councillor C R Daly proposed the recommendations in the report. Councillor Mrs F M Grottick seconded the proposal.

13 Page 13 FC That the proposed fee increases for all new residents from 1 April 2016 be approved. 2 That the proposed staged increase for existing residents to commence on 1 April 2016 be approved. 3 That the 2% Council Tax level to support the ongoing funding of Adult social Care provision be approved. (Vote was unanimous, with Councillor G Bilsborough abstaining) C10/16 Member's Allowances Scheme and Mainland Subsistence Rates for The Senior Officer: Democratic Services & Licensing presented her report entitled Members Allowances Scheme and Mainland Subsistence Rates for 2016/17 and dated 27 January Councillor E W Moulson proposed that the rates remain at the current level. Councillor G O Neill seconded the proposal. The Chairman noted that in some cases she was struggling to attend all relevant meetings on the mainland as the scheme was not fully commensurate with people living on a lower wage, or even an average wage. The Chief Executive said that any and all expenses had to be evidenced with receipts, and that all expenditure was to help Members attend vital meetings on the mainland when required for them to attend. The Vice-Chairman said that the timing of the report was unfortunate but could not be helped, but the fact remained that it was the sensible and fair approach to enable all Members to discharge their democratic responsibility and better serve their community. Councillor Mrs A W Mumford proposed the recommendation. The Vice-Chairman seconded it. (The vote was won by 7 votes to 5) 1 That the Members Scheme of Allowances be approved, 2 That the scheme for Members Mainland Subsistence Rates for be approved.

14 FC Page 14 PART 2 REPORTS FOR INFORMATION ONLY C11/16 Notification of Executive Decision - Boating Fees and Charges and New Structure That the report of the Senior Officer: Democratic & Licensing entitled Notification of Executive Decision Boating Fees and Charges and New Structure and dated 18 February 2016 be accepted for information only. PART 3 REPORTS CONTAINING EXEMPT INFORMATION There were no reports in Part 3. The Meeting ended at pm