Apologies were received from Councillor Allen

In accordance with the Members’ Code of Conduct, Members are requested to declare any interests orally at the start of the meeting and again immediately before consideration of the matter. Members are reminded to specify the agenda item number to which it refers and whether the interest is of a personal or prejudicial nature.

Members are also reminded of the requirements of Section 106 of the Local Government Finance Act 1992 that they should declare and not vote on specified matters if they are two months or more in arrears with their Council Tax payments.

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To consider and approve the minutes of the last meeting held on 27^th January 2010 (attached).

The minutes of the meeting held on 27th January 2010 were received and approved and the Chair was authorised to sign them, subject to the following amendment:

Re: Minute 4 – Community Safety Partnership Strategic Assessment

Page 1 - delete first bullet point

Page 2 - replace penultimate bullet point with the following:

• The number of offences for all priority crimes reduced from 2007/08 to 2008/09, except for theft from motor vehicles which has since reduced following a high profile local campaign.

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This item relates to a number of 2010/11 Finance matters, beginning with a summary which highlights the key points raised in the following four reports:

• Revenue Budget and Council Tax 2010/11(incorporating the Medium Term Financial Strategy)
• Capital Budget 2010/11
• Treasury Strategy
• Finance and Corporate Services Revenue Budget 2010/11

The reports offer the Commission the opportunity to review and comment upon the Budget and Council Tax proposals and the Treasury Strategy for 2010/11. Any comments or proposed changes will be given to Cabinet in advance of their consideration of the first three reports on 22^nd February 2010.

Report of the Director of Finance and Corporate Services attached.

The Chair welcomed Councillor Knight, the Deputy Leader and Cabinet Member for Resources, Gillian Norton, Chief Executive, and Graham Russell, Assistant Director Finance, to the meeting for consideration of this and the following item.

The Commission received a summary and four reports relating to a number of 2010/11 Finance matters, beginning with:

Revenue Budget Strategy and Council Tax 2010/11

Councillor Knight highlighted the key elements affecting the budget for2010/11, including the prospects for future years. In light of the current economic situation, no Council Tax increase is recommended for 2010/11. The strategy assumes the achievement of over £4m in efficiencies/savings in the year. Councillor Knight also referred to the Medium Term Financial Strategy, which includes the challenge of achieving further significant efficiencies/savings if Council Tax increases are to be kept below 5% in future years.

In response to Councillor Samuel, the Assistant Director, Finance explained that inflation projections in the Budget are based on Treasury forecasts. Councillor Knight highlighted the distinction between inflation and interest rates.

In response to a query by Councillor Samuel, regarding the current status of the Pension Fund, the Assistant Director Finance reported that the latest re-evaluation of the Fund is imminent. Employee contributions are likely to rise significantly from 2011/12.

In response to a query from Councillor Arbour regarding funding and the level of Council Tax in Bromley, the Assistant Director Finance explained that there are a number of factors to take into account when making budgetary comparisons with other Local Authorities.

At the request of Councillor Arbour, Councillor Knight outlined the current position with regard to General Reserves. The target range is between 5% and 10% of the net budget, estimated currently near the upper level at approximately £11m. Surplus reserves have been invested in services over the last four years.

In response to Councillor Porter, the Assistant director Finance explained that a recent Appeal case had influenced the level of VAT reserve.

Capital Budget 2010/11 to 2014/15

Councillor Knight outlined the 5 year Capital Budget for 2010/11 to 2014/15, which amounted to a £77.5m investment programme, with a particularly emphasis on Primary School investment.

With regard to programme slippage, Councillor Knight explained that it was not always possible to accurately predict the year in which a scheme bill would fall. The Assistant Director Finance undertook to provide members with further information regarding slippage.

The Chief Executive highlighted that rigorous steps were being taken to achieve level 3 for Asset Management in the next CAA assessment.

Councillor arbour expressed reservations regarding the capacity to deliver the allocated £3.5m spend on the Avenue Centre in the next financial year. Councillor Knight explained that the level of spend will depend on progress with the project. However, the resources will remain allocated even if the level of spend is not achieved in the next financial year.

In response to Councillor Arbour, Councillor Knight stated that subsidy provided to Richmond Theatre was pivotal to its continued viability.

Treasury Management Policy & Strategy For 2010/11 

Councillor Knight outlined the key  ...  view the full minutes text for item 15.

This item updates the Commission on the externally led whole organisation efficiency review which has now completed, and the outcomes of which are being submitted to Cabinet on 22^nd February 2010.

Report of Gillian Norton, Chief Executive attached

The Commission received a report updating members on the externally led whole organisation efficiency review which has now completed and the outcomes of which will be reported to Cabinet on 22^nd February 2010.

Councillor Knight, the Deputy Leader and Cabinet Member for Resources, explained that the efficiency programme presents a number of key challenges to the way that the Council operates. The review findings identify the potential for £10m to £13m savings and the one off investments required to realise these. The strategic objective is to continue to provide quality front line services and keep the Council Tax as low as possible against the background of a worsening public sector financial position.

In response to Councillor Samuel, the Chief Executive confirmed that the Executive Board had accepted most but not all of the findings in the PwC report. There is now a degree of confidence that the more realistic savings projection adopted can be achieved.

In response to Councillor Elloy, the Chief Executive outlined the rationale behind the Property and Asset Management Outline Business Case. The aim is to improve integration and use of property and assets not only within the Council but also through the adoption of a pan-public sector approach to strategic planning, provision and use of public estates across the Borough. The initiative relies on delivery managed by a single Corporate Property and Facilities Team. The centralisation of staff in the Civic Centre will assist in this process.

With regard to the financing of possible redundancy costs, the Chief Executive confirmed that funding had not been identified at this stage, although the normal practice is to capitalize such costs. The aim over the 3 year programme is to minimize redundancies.

In response to Councillor Samuel, the Chief Executive referred to an average staff turnover of approximately 10%, and to reducing staffing levels across the Local Government sector generally. The aim in Richmond over time is to bring together activities spread across the Council where this can be shown to be more efficient. This is not an easy process but communication with all staff had been a priority and the recent survey showed that staff morale continues at a high level. The proposals in the review indicate a reduction of 200 – 300 posts, but it is not possible at this stage to give any specific numbers on potential redundancies.

RESOLVED

That the findings from the whole Council review, the scale of the potential savings identified, and the challenges in realising these be noted.

This report gives details of the proposed Commission Work Programme for the remainder of the municipal year.

Report of the Interim Scrutiny Manager attached

The Commission received a report from the Interim Scrutiny Manager outlining the Work Programme for the remainder of the municipal year.

RESOLVED

That the Work Programme for the remainder of the 2009/10 municipal year be agreed.