Executive Cabinet

Minutes of the Meeting held on 8th July 2009

Time Commenced: 2.00pm   Time Terminated: 3.00pm

Present:

Councillor SR Oldham (Chair)
Councillors: Cooney, J. Fitzpatrick, Gwynne, Piddington, K. Quinn, Taylor, Warrington and Whitehead.

Apologies for Absence:

Councillor Kitchen.

1. Declarations Of Interest

There were no declarations of interest.

2. Minutes

Resolved:

That the Minutes of the Joint Meeting of the Executive Cabinet and the Overview (Audit) Panel held on 11 February 2009 and the Joint Meeting of the Executive Cabinet and the Audit Panel held on 1 April 2009 be taken as read and signed by the Chair as a correct record.

3. Revenue Outturn Report 2008/2009

Consideration was given to a report of the Borough Treasurer detailing the Council’s revenue out-turn position for 2008/09 against approved budgets, which detailed the following:-

• Inside the Expenditure Limit (excluding Schools) – an underspend of £0.269m, which included unspent Area Based Grant funding of £3.528m and would be carried forward to be used in future years. The net variation of £0.269m was an improvement of £0.869m from February 2009;
• Schools – the outturn position based on information available showed balances of £6.424m at 31 March 2009, which was within guideline levels; and
• Outside the Expenditure Limit – an underspend of £4.811m, an increase of £3.325, since February 2009.

The current economic climate had had a detrimental effect on a number of budgets and in order to recognise this and also some of the ongoing issues the Council was facing it was proposed that the following amounts be written off:-

• People and Performance – additional costs of administration and implementation of the job evaluation project (£0.129m);
• Exchequer – increased costs resulting from the economic conditions (£0.074m);
• Engineers –
• i) Car parks – reduced net income achievement (£0.251m)
• ii) Winter maintenance costs – additional gritting costs due to exceptional winter conditions (£0.173m)
• Environmental Health – additional refuse and recycling costs which were offset by savings on Waste Disposal Levy charges (£0.363m);
• Planning – reduced fee income in year as previously reported due to the impact of the adverse economic climate (£0.726m).
  

Reference was made to the write offs which would have an impact of reducing the overspends being carried forward into 2009/10 by service areas and where funds were placed in earmarked reserves, the costs were charged to revenue and counted against the relevant budget. The full list of reserves showing the movement in year were detailed at Appendix 6.

Details of the transfer for new reserves were as follows:- 

*The underspend would be carried forward to 2009/10 following the confirmation of the WNF Commissioning Strategy.

A summary of the outturn position was given as follows:- 

Reference was also given to the overall financing position, together with the impact on General Balances and the change in School balances:- 

The original year’s budget of £187.020m had increased to £188.258m due to approved changes that had occurred during the year.

Based on the projected outturn figures, the impact on balances was as follows:-

Resolved

1. That the revenue budget monitoring position be noted;
2. That the appropriations to earmark reserves as identified in Appendix 6 of the report be approved;
3. That the following amounts be written off: shortfall in Car Park Income £0.251m, additional costs in dealing with exceptional winter conditions £0.173m, implementation costs of the job evaluation project £0.129m, reduction in planning and building fees income £0.726m, refuse and recycling costs £0.363m (offset by a reduction in Waste Disposal Levy charges) and Exchequer costs in dealing with increased benefit claimant numbers; and
4. That the business rates write-offs detailed at Appendix 8 be written off.

5. Capital Monitoring Report – Outturn 2008/09

Consideration was given to a report of the Borough Treasurer which summarised the Council’s outturn position for 2008/09 and the impact on the programme for future years.

The Council had a capital programme totalling £52.361m in 2008/09 and had spent £49.923m, resulting in a service area underspend of £2.438m, when combined with the planned slippage of £3.800m, this had resulted in a net overspend for the year of £1.362m.

Reference was made to the actual spend in 2008/09 of £49.923, which represented 95.3% of the budget and had been an improvement on 2007/08 performance (91.9% on a budget of £61.699m). Details of the variation totalling £2.438m were shown by service area in Appendix 1, together with the most significant scheme variations by service and priority area.

The Council had successfully delivered a number of important projects in the 2008/09 programme, in addition to progressing and planning for a number of other substantial schemes, in accordance with the capital strategy. Details were also given of the achievements which had been delivered in 2008/09 against the priority themes for the future as set out in the Corporate Plan.

Particular reference was made to the major scheme variations, capital receipts, changes to the Capital Programme, the Capital Financing Statement, the details of slippage and the revised Capital Programme.

Resolved

1. That the capital outturn position for 2008/09 be noted;
2. That the capital receipts outturn position be noted;
3. That approval be given to the capital financing statement for 2008/09; and
4. That approval be given to the revised capital programme for 2009/10 – 2011/12, including the changes in Appendix 3 of the report.

6. Medium Term Financial Strategy 2009/10 – 2012/13

Consideration was given to a report of the Borough Treasurer detailing the Medium Term Financial Strategy, which was an integral part of the Council’s overall business planning framework and linked in with all major Council plans, policies and processes. The document was a dynamic statement and was updated regularly throughout the year.

The Comprehensive Spending Review 2007 had given more certainty to the level of government support up until 2010/11 and the Medium Term Financial Strategy set out the assumptions about the financial resources that were likely to be available during that period, together with estimated positions for 2011/12 and 2012/13. The level of resources in the next Comprehensive Spending Review was extremely uncertain due to the prevailing economic conditions and all indications were that resources for the public sector would be severely limited.

Details of the Council’s available reserves and balances were contained in the strategy alongside the identification of risks facing the Council during this period and the Medium Term Financial Strategy demonstrated clearly the ways in which the Council’s corporate and financial planning frameworks were linked and showed how these links were essential to ensure the achievement of the Council’s strategic objectives.

The Borough Treasurer referred to the objectives of the Medium Tern Financial Strategy as follows:-

• To explain in financial terms the political objectives of elected members as set out in the corporate plan;
• To ensure that commitments did not exceed forecast resources over the period and for each year;
• To focus expenditure on the areas which the Council had chosen as its priorities;
• To plan the level of Council Tax in line with what the Council and the community as a whole regarded as being acceptable, within the context of guidelines from Central Government;
• To generate efficiency savings in line with the assumptions of future years’ funding requirements of at least 3% per annum of the net budget and rising to 4% from 2010/11;
• To deliver a 9% maximum Council Tax for the Council between the period 2008/09 and 2010/11; and
• To ensure that the Council was in a strong financial position was as measured by size of balances and reserves (consistent with the Borough Treasurer’s recommendations), but not to the detriment of service provision or local Council Tax payers.

Reference was also given to the content of the Medium Term Financial Strategy as follows:-

• Aims and Objectives;
• Elements of the Medium Term Financial Strategy;
• Detailed Financial Planning Principles;
• Financial Planning Timetable;
• Risk Assessment and Sensitivity;
• Value for Money and Efficiency Strategy;
• Reserves and Balances;
• External Funding;
• Revenue Budget Forecast;
• Summary of Strategy; and
• Recommendations.

Resolved

1. That the Medium Term Financial Strategy be approved;
2. That the combination of the approaches set out in Section 10.15 be approved;
3. That the measures identified to date outlined in the report to produce a balanced budget be approved and that risk items be noted;
4. That a further report be submitted in the summer, setting detailed proposals to achieve a balance budget in 2010/11 and beyond;
5. That the Medium Term Financial Strategy be communicated to Members, staff and stakeholders through the Wire and Citizen; and
6. That the Executive Team work with Cabinet Deputies to develop a programme of Improvement and Efficiency and be reported to a future meeting.

7. Greater Manchester Transport Scheme Prioritisation And Funding Strategy

Consideration was given to a report of the Assistant Executive Director (Technical Services) which explained the Greater Manchester Scheme Prioritisation and Funding Strategy and the effects on Tameside in respect of the 40% Local Transport Plan top-slice funding.

Members were informed that the scheme prioritisation agreed by the AGMA Board had identified three major schemes to be delivered in Tameside. These were Metrolink 3B (Droylsden to Ashton); Ashton Northern Bypass Stage 2 and Mottram Bypass/Glossop Spur. The report set out the latest position with each of these schemes and further reports would be submitted to Executive Cabinet in respect of major scheme progress.

Agreed:

1. That the report be noted;
2. That further progress reports be submitted to Board in respect of the major scheme progress; and
3. That a further report be submitted to Executive Cabinet once the full impact of the 40% LTP top-slice was fully understood.

8. The Longdendale Integrated Transport Strategy

Consideration was given to a report of the Executive Director, Economy and Environment which proposed the development of an integrated transport strategy for Longdendale which would include alternative proposals to the current Mottram to Tintwistle Bypass and Glossop Spur schemes.

Members were informed that AGMA had approved a budget of £100m for the development and implementation of an alternative scheme as part of the major transport scheme programme for Greater Manchester. It was proposed that the funding previously identified by Tameside Council for the Glossop Spur could be used for the development of the new strategy.

Members were reminded of the background to the Mottram to Tintwistle Bypass/Glossop Spur and were provided with details of the Greater Manchester Prioritisation exercise undertaken by AGMA. It was stated that the current circumstances presented an opportunity to develop a comprehensive integrated transport strategy for Longdendale, which in line with expectations set out in the Greater Manchester Local Transport Plan would not only address the immediate traffic congestion and environmental problems, but would also address the need to improve public transport, encouraging non-motorised travel and improve the living environment within the Longdendale villages.

Resolved:

1. That the principle of the Longdendale Integrated Transport Strategy as set out in the report be agreed;
2. That progress the elements of the Longdendale Integrated Transport Strategy through the planning and statutory approval procedures as required; and
3. That authorisation be given to enter into discussions and establish legal agreements with relevant agencies where required.

Recommended:

That the amendments to the existing capital budget namely that the existing budgets set out in the Capital Programme for the Glossop Spur:

• Public Inquiry £161,000 2009/10.
• Design £75,000 2009/10; £400,000 2010/11; £125,000 2011/12
• Advanced Land Acquisitions £1,320,000 2009/10.

be used to fund the Longdendale Integrated Transport Strategy and any advanced land acquisitions for the new proposals.

9. Agma Executive Board Meetings

Consideration was given to a report of the Chief Executive which informed Members of the issues considered at the May and June meetings of the AGMA Executive Board which had considered the following items:

• AGMA Business Leadership Council – Progress and Plans;
• Statutory City Region and Greater Manchester Strategy;
• Future Jobs Fund Proposals;
• Climate Change Agency Proposal and Energy Plan Proposal;
• Planning and Housing Commission: Draft Work Programme and Terms of Reference;
• Transport Governance;
• Congestion Performance Award Funding Distribution;
• Membership of Commissions;
• Committee of the Regions 2010 – 2015;
• Annual Council Business;
• Greater Manchester Innovation Prospectus;
• Greater Manchester Brussels Office Annual Report;
• Proposed Constitutional Amendments – Operation of Commissions
• AGMA Units – Provisional Outturn 2008/2009.

Resolved:

That the report be noted.

Chair