Meeting documents

Venue: The Paralympic Room - AVDC. View directions

Contact: Bill Ashton; Email: bashton@aylesburyvaledc.gov.uk; 

Items
No. Item

1.

Minutes pdf icon PDF 116 KB

To approve as a correct record the Minutes of the meeting held on 8 November, 2016, attached as an appendix.

Decision:

RESOLVED –

 

That the Minutes of 8 November, 2016, be approved as a correct record.

Minutes:

RESOLVED –

 

That the Minutes of 8 November, 2016, be approved as a correct record.

2.

Budget Planning 2017/18 and Beyond - Initial Proposals pdf icon PDF 337 KB

Councillor Mordue

Cabinet Member for Finance, Resources and Compliance

 

To consider the attached report.

 

Contact Officer:  Andrew Small (01296) 585507

Decision:

(a)          Decision(s)

 

That, for the purposes of scrutiny, approval be given to the following initial set of (draft) budget proposals, together with the Medium Term Financial Plan:-

 

(1)  That 2.2 million of savings as set out in paragraph 4.6 of the Cabinet report be taken into budget planning.

 

(2)  That Council Tax be increased by an annual amount equal to £5 (3.59%) for a Band D property (equivalent to 10 pence per week) from 1 April, 2017.

 

(3)  That work be continued on the development of the budget proposals and that any net variance be either added to, or deducted from, General Balances.

 

(4)  That the revised list of fees and charges attached to the Cabinet report be agreed.

 

(5)  That the Band D Special Expenses charge for 2017/18 be held at the current level.

 

(b)          Reason(s) for Decision(s)

 

The Council is statutorily required to set a budget for 2017/2018 and plan for expenditure in subsequent years based upon the Medium Term Financial Plan.  These are draft proposals based upon the latest information which will be reviewed as further information becomes available and which will facilitate scrutiny of the overall strategy.

 

(c)        Alternative Options Considered

 

The development of the initial proposals has involved a number of key elements of choice as set out in previous reports and the latest report submitted to Cabinet.

 

(d)       Relevant Scrutiny Committee

 

Finance and Services.  That Committee will be considering Cabinet’s initial proposals at its meeting on 9 January, 2017.  Cabinet will then formulate firm proposals, taking account of the views expressed by the Scrutiny Committee, which will be submitted to Council for consideration.

 

(e)        Conflicts of Interest / Dispensation(s)

 

None.

 

 

Minutes:

The report to Cabinet on 8 November, 2016, had explained the context for 2017/18 budget planning and had highlighted the difficulties created by a number of high value factors, the greatest of which being those associated with retained business rates, further reductions in Government Grant and new homes bonus.  The report now before Members sought to bring together those elements that could be predicted with some certainty and proposed a strategy for dealing with those which were difficult to forecast.

 

Work would continue on refining the elements of uncertainty between this meeting and consideration of Cabinet’s final budget proposals in January, 2017.  This would be informed by any views that might be expressed by the Finance and Services Scrutiny Committee, the latest projected position on business rate growth and the initial proposed grant numbers, expected to be announced by the Government in mid to late December.

 

Because of the greater than usual number of uncertainties, it was appreciated that there would be a greater chance of amendments being required to the proposals to be submitted to Cabinet in January, 2017.

 

As had been set out in the November Cabinet report, the approach adopted for setting the budget for 2017/18 was similar to that followed in previous years and relied primarily on capitalising the savings delivered via reorganisation, income generation and restructuring during 2015/16 and 2016/17.

 

Since the prospect of greatly reduced Government Grant had first been mooted in 2010/11, the Council had devoted considerable effort and resources to identifying and delivering a smaller net budget requirement.  This had been achieved by the Council reconsidering what it did, what it could do and who should pay for the services provided.  This work had been badged "Commercial AVDC".

 

This had not specifically been about income generation but had instead involved a review of what customers want and need, who was best placed to provide those services, the most efficient and effective way of delivery, who should pay for the service and how much, and potentially for some services, whether they needed to be provided at all.

 

The work over the past twelve months in recognition of the forecast financial pressures had delivered significant savings, and many of these were already accruing in the current financial year.  This work had been carried out with the expectation that these transformational and efficiency measures would replace the need for a crude annual cuts exercise.  This planned response to budget reductions represented a cornerstone of the budget development process.

 

The Council was currently undertaking a full structural review and assessment centre process in order to shape the future organisation.  It was expected that the rationalisation of Council involving the removal of duplication, the breaking down of departmental silos and the reductions in unnecessary layers would deliver significant savings across the medium term planning period.  However, as some of these revisions were currently subject to a statutory consultation process, it was not possible at this stage to indicate specifically what these savings represented.

 

In some areas it  ...  view the full minutes text for item 2.

3.

Capital Programme pdf icon PDF 99 KB

Councillor Mordue

Cabinet Member for Finance, Resources and Compliance

 

To consider the report attached as an appendix.

 

Contact Officer:  Andrew Small (01296) 585507

Decision:

(a)          Decision(s)

 

That the Capital Programme for 2017/2018 onwards be approved for the purposes of Scrutiny.

 

(b)          Reason(s) for Decision(s)

 

The Council is required to set a capital budget for the coming financial year and as part of prudent financial management incorporate a longer term view of capital activity.  Regular review of the Capital Programme is essential, especially when a number of major schemes are running in parallel.

 

(c)        Alternative Options Considered

 

None as such.  The proposed Capital Programme represents the allocation of anticipated resources in accordance with corporate priorities.

 

(d)       Relevant Scrutiny Committee

 

Finance and Services.  That Committee will be considering Capital Programme at its meeting on 9 January, 2017, following which it will be submitted to full Council. 

 

(e)        Conflicts of Interest / Dispensation(s)

 

None.

 

 

 

Minutes:

The Council maintained an integrated strategic Capital Programme divided into three sections:-

 

·         Major Projects – These being the largest and highest profile.

 

·         Housing Schemes – These being the housing enabling and housing grant based schemes.

 

·         Other Projects – These being all other schemes included in the Capital Programme.

 

The Programme was reviewed annually and consideration was given to a report setting out the latest position.

 

The UK economy was still settling down after the decision to leave the European Union and would continue to do so for the foreseeable future.  Whilst the value of the pound had fallen, there had been a boost to exports, and with the recent cut in interest rates to a record low of 0.25%, the housing market was still taking time to react, which meant that the demand for land and its value might decrease.

 

House prices had fallen in July and August, 2016, which meant that the annual growth had fallen to 6.9%, the lowest level for more than a year.  This slow down had affected the anticipated income from Right to Buy sales, which was one of the Council’s major sources of capital income, to the point that actual receipts could be down on the level received over the past couple of years.

 

The number of house sale completions over the last couple of years had dropped below the 40 mark which was being achieved prior to 2014/15.  Last year, the Vale of Aylesbury Housing Trust (VAHT) were anticipating house completions to be only 20, but the final figure for 2015/16 was 33, which had boosted the level of receipts to £2,309,000.  For 2016/17, the number of applications was running at the same level as 2015/16 and so VAHT had increased their estimate for completions to 34, which would maintain the level of receipts AVDC could expect to receive.

 

During 2016/17, the final payments of the VAT shelter would be received, thus ending the ten year agreement put in place when the Council’s housing stock had been transferred to VAHT.  Whilst the amounts received had reduced over the years, they had been a valuable source of capital income.

 

These factors had a bearing on the available resources for the Capital Programme.  Any decrease in anticipated resources effectively reduced the level of resources available to fund new schemes and so increased the possibility of more borrowing.  The changes in anticipated resources which needed to be factored into the Programme were as follows:-

 

·         Share of house sale receipts from VAHT – These flowed from the stock transfer agreement and ran for 25 years from the transfer date.  The number of sales had been forecast to be 34 for 2016/17, with the same number being forecast for 2017/18.

 

·         Asset sales – These were sums released from the disposal of Council-owned assets, mainly land or property.

 

·         Lottery, grants and section 106 payments – these related to external resources not associated with asset sales.

 

·         Revenue contributions – Currently there were not expected to be any contributions from revenue  ...  view the full minutes text for item 3.

4.

Aylesbury Town Centre Plan pdf icon PDF 12 KB

Councillor Bowles

Deputy Leader and Cabinet Member for Economic Development Delivery

 

To consider the attached report.

 

Contact Officer:  Teresa Lane (01296) 585006

Additional documents:

Decision:

(a)          Decision(s)

 

That progress on actions included in the Aylesbury Town Centre Plan since its publication be noted and in particular, those which continue to be a priority, those that will be carried forward into the updated Plan to be published in January, 2017, and those which are no longer a priority.

 

(b)          Reason(s) for Decision(s)

 

            To facilitate progression of the enhancement of the town in accordance with the guiding principles contained within the Plan.

 

 (c)       Alternative Options Considered

 

None as such.  The Cabinet report (available on the Council’s web site) explains the rationale for updating the Plan.

 

(d)       Relevant Scrutiny Committee

 

Economy and Business Development.  That Committee received a report at its meeting held on 5 December, 2016 and endorsed the proposals.  The Committee Chairman attended the Cabinet meeting and elaborated on the Committee’s considerations. 

 

(e)        Conflicts of Interest / Dispensation(s)

 

None.

 

 

 

 

Minutes:

The Aylesbury Town Plan had been published in April, 2014.  It represented the shared vision and commitment of partners to continue to improve the town centre, building upon the multi-million pound investment that had already been made.  In summary, the vision was that Aylesbury:-

 

·         Would be a high profile sub-regional centre for entertainment and the arts, which added a distinctive edge to its market town heritage.

 

·         Would be a distinctive "best in class" modern market town which was attractive, sustainable, safe and accessible.

 

·         Would provide a quality day and evening environment in terms of leisure, retail and food and drink, which would attract and bring together people of all ages and communities from within its catchment.

 

The Plan also set out the challenges facing the town centre and the guiding principles to steer its future development.  AVDC, Aylesbury Town Council and Buckinghamshire County Council had developed the Plan, supported by a range of partners from the private and public sectors, who would not only be involved in helping to deliver the identified actions or improvements, but would also be mindful of the guiding principles when considering proposals for their own assets.  A summary brochure of the full Plan had been widely distributed.  The Plan continued to be an important document, particularly as at the time of publication, the existing but dated Local Plan (2004), was still being used to determine planning applications relating to the town centre.

 

The Town Centre Plan, whilst not a binding document in terms of planning policy, had been used very effectively as a reference point for comments (both positive and negative) made by, for example, the Aylesbury Town Partnership on planning applications.  It had also been widely used both by AVDC and private sector partners to help promote the town centre and attract new operators and investors.

 

Cabinet was advised that in recent months, the opportunity had been taken to ensure that the Aylesbury town centre policies in the draft Vale of Aylesbury Local Plan (VALP) reflected the ethos of the Aylesbury Town Centre Plan.  The guiding principles and vision had also been included within the VALP, aligning the Local Plan and the Town Centre Plan for the first time.  In drafting the text for the VALP, the challenges, vision and guiding principles had all been reviewed.  However, only minor changes had been made to the challenges to reflect the effects of the growth of the internet on traditional retail space.

 

The subsequent Aylesbury Town Centre Growth Opportunity Assessment Study carried out by the Retail Group to provide supporting evidence for the VALP, had confirmed that no other significant changes were needed.  The detail of this Study, which also covered an update on the catchment area of Aylesbury town and the catchment’s socio-economic profile, would be brought to a subsequent Cabinet meeting.

 

In January, 2017, AVDC planned to publish an update to the Town Centre Plan, identifying how the actions listed therein had been progressed.  These covered all areas of the town centre and had  ...  view the full minutes text for item 4.

5.

Aylesbury Vale Estates Business Plan 2017/2018 pdf icon PDF 10 KB

Councillor Bowles

Deputy Leader and Cabinet Member for Economic Development Delivery

 

To consider the attached report.

 

Contact Officer:  Andrew Small (01296) 585507

Additional documents:

Decision:

(a)          Decision(s)

 

(1)  That approval be given to AVE’s draft Business Plan for 2017/2018 (as set out in the confidential section of the Cabinet report) and that progress against key performance measures be reviewed in six months time.

 

(2)  That in conjunction with the above report, and at the conclusion of the finalisation/audit of AVE’s accounts, a commentary be submitted that would enable Cabinet to compare the performance made with the 2016/17 Business Plan against the key performance indicators for that financial year.

 

(b)          Reason(s) for Decision(s)

 

The Members’ Agreement requires AVE to prepare a Business Plan before the end of the accounting year and circulate this for approval by the Council and Akeman.

 

 (c)       Alternative Options Considered

 

Not to approve the Plan.  However this would constrain AVE in pursuing its objectives of generating investment and delivering income from the Commercial portfolio.  Cabinet wished to have the opportunity to review both progress on the 2017/18 Plan and progress made against the key performance indicators contained within the 2016/17 Plan.

 

(d)       Relevant Scrutiny Committee

 

Economy and Business Development.  That Committee received a report at its meeting held on 5 December, 2016 and had, based upon the information available, recommended approval of the 2017/2018 Business Plan.  The Chairman of the Committee attended the Cabinet meeting and elaborated upon the Committee’s deliberations.  Representatives form the AVE Board attended both the Scrutiny Committee meeting and the Cabinet meeting and were tested rigorously on the assumptions made in the draft 2017/18 Plan.

 

(e)        Conflicts of Interest / Dispensation(s)

 

None.

 

 

 

 

 

Minutes:

The Council and the Akeman Partnership LLP (Akeman) had established Aylesbury Vale Estates (AVE) as a limited liability partnership in October, 2009, following a competitive procurement exercise, to manage, improve and develop the Council’s commercial property portfolio, and provide an income stream to the Council.  On completion of the agreement, the Council had sold the majority of its industrial and commercial estate to AVE LLP at market value.

 

The Partnership was governed by a formal Members’ agreement and managed by a Partnership Board, on which the Council had three representatives.  Akeman had produced a draft Partnership Business Plan as part of their bid which had been approved by the Council in June 2009.  The final version of the Plan had formed part of the completion documentation approved in October, 2009.  The Board met on a regular basis to review progress made with the Business Plan and to monitor the performance of the Asset Manager, Akeman Asset Management LLP.

 

The Members’ Agreement required AVE to prepare a new Business Plan before the end of their accounting year (which now mirrored the Council’s financial year), and to circulate this to the Council and Akeman for approval.  The Agreement also provided that the Council and Akeman would use all reasonable endeavours to agree the Business Plan within 90 working days.  The Business Plan was a critical document.  The Members’ Agreement required the Business Plan to set out AVE’s objectives for the life of the Partnership (i.e. 20 years), and the annual overarching objectives for each accounting period.  In particular, the Plan had to include a statement to the effect that AVE’s business should be operated with a view to producing the best risk adjusted profit obtainable, and to maximise the adjusted rate of return to the Council and Akeman.  Subject to agreement between AVE, Akeman and the Council, the Plan was also expected to include the following matters, based upon a three year projection, where appropriate:-

 

·         Strategic business objectives and targets.

 

·         Gross and net rental income projections, including an assessment of operating costs, rental voids, rent arrears and any other losses and receipts.

 

·         Annual portfolio valuation prepared to a standard acceptable for AVDC financial reporting purposes.

 

·         Confirmation that the financial covenants regarding loan to value and interest cover were being maintained.

 

·         Projections of estimated receivable rent and confirmation of compliance with maintaining portfolio income levels.

 

·         Proposals for working capital budget, any new capital investments and re-investments plus any distributions to partners.

 

·         Performance against key indicators and targets and levels of achievement.

 

Once approved, the Business Plan provided the framework within which the AVE Board should work, similar in effect to the Budget and Policy Framework set by the Council for Cabinet.  Accordingly, if the Board wished to pursue any substantive action which was not provided for in the Business Plan, they had to obtain specific authority from the Council (either by Cabinet itself, or via a Cabinet Member Decision) and Akeman.

The draft 2017/18 Business Plan was submitted, as set out in full  ...  view the full minutes text for item 5.

6.

Exclusion of the Public

The following matter is for consideration by Members "In Committee". It will therefore be necessary to

 

RESOLVE –

 

That under Section 100(A)(4) of the Local Government Act, 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in the Paragraph indicated in Part 1 of Schedule 12A of the Act:-

 

Item 9: Budget Planning 2017/18 and Beyond – Initial Proposals

Item 10: Aylesbury Vale Estates Business Plan 2017/18

 

The public interest in maintaining the exemptions outweighs the public interest in disclosing the information because the reports contain information relating to the financial or business affairs of organisations (including the Authority holding that information) and disclosure of commercially sensitive information would prejudice negotiations for contracts and land disposals/transactions.

Minutes:

RESOLVED –

 

That under Section 100(A)(4) of the Local Government Act, 1972, the public be excluded from the meeting for the following items of business on the grounds that they involved the likely disclosure of exempt information as defined in the Paragraphs indicated in Part 1 of Schedule 12A of the Act:-

 

Budget Planning 2017/18 and beyond – Risk Management Plan. (Category – Paragraph 3)

 

AVE Business Plan for 2017/2018.(Category – Paragraph 3)

 

The public interest in maintaining the exemptions outweighed the public interest in disclosing the information because the reports contained information relating to the financial or business affairs of organisations (including the Authority holding that in formation) and disclosure of commercially sensitive information would prejudice negotiations for contracts and land disposals/transactions.

 

7.

Budget Planning 2017/18 and Beyond - Initial Proposals

Councillor Mordue

Cabinet Member for Finance, Resources and Compliance

 

To consider the attached confidential information.

 

Contact Officer:  Andrew Small (01296) 585507

Minutes:

In determining the draft budget proposals for 2017/18 and beyond, consideration was given to the Council’s Risk register.

8.

Aylesbury Vale Estates Business Plan 2017/2018

Councillor Bowles

Deputy Leader and Cabinet Member for Economic Development Delivery

 

To consider the attached confidential report.

 

Contact Officer:  Andrew Small (01296) 585507

Minutes:

In reaching the decision in relation to AVE’s Business Plan for 2017/18, Cabinet received and considered a full copy of the Plan.