Meeting documents

To approve as a correct record the Minutes of the meeting held on 11 July, 2016, copy attached.

RESOLVED –

That the Minutes of the meeting held on 11 July, 2016, be approved as a correct record.

To consider the attached report.

Contact Officer: Andrew Small 01296 585507

The Committee received a report which provided an explanation of the business rates system and which covered issues including how Councils gained from it, how it might change in the future and how it was used to support local businesses.

Business rates were a tax based on property values and helped pay for public services.  Business rates were charged on all non-domestic properties (e.g. shops, offices and factories) that did not qualify for an exemption and were normally payable by occupiers of premises, rather than owners.  However, where properties were empty, the property owner might be liable for business rates. Business rates in England raise around £24 billion a year from around 1.8 million non-domestic properties.

Business rates were calculated according to a property’s ‘rateable value’ which was set by the Valuation Office Agency (VOA) for each non-domestic property in England. This was an amount equal to the annual rent for which it was estimated a property might be let at a set date. A business rates bill was worked out by multiplying the rateable value of a property (set by the VOA) by the business rates multiplier (set by central government) and then applying reliefs the ratepayer was eligible for, which could include transitional relief.

The system of mandatory reliefs was determined by central Government and currently gave 80-100% relief to charities and small businesses.  The system of mandatory reliefs had recently been used to extend reliefs to other organisations in accordance with Government policy objectives, such as smaller retail properties and empty shops.

The valuation date was currently set at two years before the revaluation comes into effect.  This allow the VOA time to collect rental evidence, prepare valuations and consult with ratepayers.  It included six months for ratepayers to check their rateable value and prepare for changes to their rates bills.  This approach ensured rateable values were based on evidence and ratepayers were given advance warning of changes to rates bills.

Revaluations normally took place every five years with a purpose of aligning rateable values with current rental values set by the market. As a result, revaluations reflected relative changes in the rental value of property between different sectors and locations, so that the total business rates bill was shared fairly across ratepayers.

A revaluation did not raise any extra revenue but aimed to redistribute the amount businesses pay based on changes in the rental market i.e. rises and falls in the rental value of the property.   To maintain the revenue raised through business rates at roughly the same amount when rateable values were changed at valuation, the government adjusted the business rates multiplier (the tax rate) either up or down.  If the rateable value of a property falls by more than the national average at valuation, the rates bill for that property will see a decrease. However, if a property’s rateable value falls by less than the national average, its rates bill would increase.

The most recent revaluation had come into effect on 1 April 2010  ...  view the full minutes text for item 2.

To consider the attached report.

Contact Officers: Andrew Small 01296 585507 and Isabel Edgar Briancon 01296 585862

The Committee received a report, that would be submitted to Cabinet on 11 October, 2016, for consideration, on the business needs and benefits of redeveloping the waste and recycling depot at Pembroke Road and the capital investment required to put in place the infrastructure necessary to meet the regulatory and growth needs of the Vale.  The report also covered a proposal for replacement of the vehicle fleet.  In relation to both issues, a schedule showing the projected rate of return was submitted as part of the confidential agenda.

The need to redevelop the depot was driven by the following factors which were detailed fuller in the report:-

·                    The need to address health and safety risks.

·                    The need to address environmental risks.

·                    Operational improvements.

·                    The need to accommodate the growth of the District.

·                    Existing disrepair.

·                    Income generation and development costs.

·                    Fleet procurement.

The Pembroke Road development would provide a mid term option to accommodate around ten year’s growth.  The depot design was submitted as part of the Cabinet report.  The total capital cost of the full redevelopment was circa £9.2 million, including professional fees and a contingency.

The depot design had been costed in two parts – option 1 and option 1a.  This would allow for a review towards the end of the 18 months development project to re-evaluate the needs of staff parking and complete build of the bulky waste storage shed, provide the necessary highways changes to manage vehicle access to the site and improve sight lines on the chicane roadway.  Also this would allow some income generation to continue from existing tenants in two of the units in Pembroke Road until their lease expired in late 2018.

The Cabinet report included a full budget breakdown, but the following was a summary of the net revenue impact of the capital loan:-

In November, 2011, approval had been given for the refurbishment of Pembroke Road and for negotiations to be commenced with Aylesbury Vale Estates (AVE) in relation to a land transfer (from AVE to AVDC).  These negotiations had been suspended temporarily while the Council reconsidered its position with regard to its longer term waste strategy and possible alternative locations for a waste transfer station and vehicle depot.  However, after an extensive period of research and the development of a business case for an enhanced vehicle maintenance workshop, Pembroke Road had been identified as the most suitable location for the Council’s mid term needs (ten years).

Pembroke Road had been acquired from AVE in July, 2016 and work had been underway to produce a layout and costings.  Pembroke Road was primarily a vacant site and many of the existing units were in a state of disrepair.  The existing tenancies had been factored into the phasing of the depot redevelopment.

The investment proposals for Pembroke Road required a Capital Programme provision of up to £9.2 million,  ...  view the full minutes text for item 3.

To consider the attached report.

Contact Officer: Tony Skeggs 01296 585273

The Committee received the report on the Council's financial performance for the period 1 April 2016 to 30 June 2016. The current position after the first quarter point of the year was that there was no change predicted in the year-end position, which was for a contribution from balances of £91,000.  Copies of the latest Quarterly Finance Digest had been circulated separately and Members referred to this document whilst considering the report.

The Council had spent £90,900 less on the provision of services than allowed in the budget.  There were a few areas where spend was more than currently budgeted:-

·                    Town Centre Properties where a Retail Investment Strategy had been commissioned for the Exchange Street North properties.

·                    Reactive Maintenance property costs had been more than expected.

·                    Legal Services – first quarter contract costs with HB Law had been higher than budgeted.

·                    Design and Conservation – higher salary costs had been incurred due to a redundancy.

·                    Chief Executive’s section – extra costs relating to the LGA Conference, training and consultants.

Areas that were currently under budget included Development Control and Building Control (who had seen an increase in income).  There had also been savings in the maintenance costs of the refuse vehicles and for the Kingsbury water feature.

In line with previous years, budget holders’ were asked continually to review all of their areas and to reforecast their budgets both positively and negatively in order to have as accurate a year end position as possible for the September Digest.

Although there was no real change in balances as a result of the revenue position, there was a change due to the Commercial AVDC Change project. The original budget was for a use of balances of around £600,000 but this has been revised to £946,000 following a report to Council on the 18 May 2016.  This agreed to an extra £506,000 use of balances for the project but it is envisaged that only £350,000 will be spent this financial year.

As well as the revenue budget the digest, on page 13, reported the level of reserves and provisions and any movements that have been made during the quarter. During this quarter there had been no movement in reserves and so the balance remained at £32.1m.  As in most years reserve movements tended to be in the last quarter so the position shown in this digest was not unexpected.

Page 15 of the Digest included information on the level of investments and borrowings during the first quarter. No new borrowing has been taken out during the quarter and so the current level remains at £23.5m. The next repayment was not due until May 2018.  The council had £56.0m invested at the end of the quarter, in a combination of banks, building societies and money market funds.

RESOLVED –

That the content of the Quarterly Finance Digest for the period April to June 2016, be noted.

To consider the future work programme.  Meetings are scheduled as follows:-

·                    1 December 2016 (Budget scrutiny, Public Sector Equality Duty, Waste Strategy)

·                    9 January 2017 (further Budget scrutiny, if required)

·                    6 February 2017 (Quarterly Finance Digest, Capital Programme)

Contact Officer:  Craig Saunders (01296) 585043

The Committee considered their work programme for the period up until February 2017.

The agenda items for future meetings would be:-

(i)            1 December 2016 – Budget scrutiny, Public Sector Equality Duty, Quarterly Finance Digest.

(ii)           9 January 2017 – further budget scrutiny (if required).

(iii)          6 February 2017 – no items as yet.

RESOLVED –

That the work programme be agreed, as discussed at the meeting.

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 10 – Capital Programme (Depot Development and New Fleet)

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.

RESOLVED –

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.

To consider the attached confidential information.

Contact Officers: Andrew Small 01296 585507 and Isabel Edgar Briancon 01296 585862

In reaching the decision referred to above in connection with the Capital Programme (Depot Development and New Fleet), consideration was given to the confidential financial information relating to the business case.