Agenda and draft minutes

To receive any apologies for absence.

There were no apologies for absence.

To receive any questions relating to items on the Agenda from members of the public and replies thereto.

The following questions were received from members of the public:

Paul Elstone

My questions relate to Agenda Item 6 2023/24 Quarter 2 Budget Monitoring

Question 1

A 3 Rivers Development estimated write off amount of £3.7 million is shown for 2023/24. Is this in addition to £4.5 million impairment previously stated by the S151 Officer in June 2023?

Answer

£3.7m is the impairment we believe is the figure that will need to be accounted for within the 23/24 year. I would reiterate that this is still an estimate based on a number of future costs and receipts and will be confirmed within the Outturn report. 

Question 2

Since the formation of 3 Rivers what is the total amount of 3 Rivers impairment or 

write-offs that so far needs to be accounted for in Council accounts?

Answer

The value of approved impairments that is accounted for within the Council’s accounts as of 31 March 2023 is £5.317m.

Question 3

I understand that the 3 Rivers start-up cost was estimated at £1 million, can this amount be confirmed.  If not £1 million, what was the start-up cost?

Answer

I haven’t seen the estimation that you refer to and I would be interested to understand the inclusions and calculations and I am very happy if Mr Elstone wishes to share this with me but my understanding is that the start up costs to create 3Rivers were around £200k - £250k.

Question 4

Has the 3 Rivers start-up cost also been impaired, in the Councils accounts, if not why not?

Answer

Yes, loans are impaired, not specific costs or projects. I understand the start-up costs were funded from a loan that had previously been impaired.

Question 5

In March 2022 the Earmarked Reserves were shown as £20.6 million.

In March 2023 the reserves were £18.1 million.

Now in March 2024 reserves are being estimated at £15.9 million therefore being very seriously eroded. 

Does the estimated year end figure for Earmarked Reserves fully include the 3Rivers known loss provisions?

Answer

No, the Council holds Earmarked Reserves for a number of legal requirements, for example S106 Planning obligations and ring fenced Government grants for specific schemes. In addition we make prudent provisions for estimated future known costs such as asset replacements and future projects. As we have impaired the forecasted future loan write-off, there is no need to create a reserve.

Question 6

An important financial health indicator is the percentage of reserves held against the Council’s annual spend.  

When the current known 3Rivers impairments and write-offs are accounted for what will this percentage be? 

Answer

Your question is probably based on an incorrect interpretation or misunderstanding. It would be helpful to explain that the Council’s General Fund has two types of reserves. Firstly Earmarked Reserves which, as explained in the answer to question 5 includes a number of legal requirements e.g. S106 Planning obligations and ring fenced Government grants for specific schemes and in addition they enable us to make prudent provision for unknown future  ...  view the full minutes text for item 62.

To record any interests on agenda matters.

No interests were declared under this item. Members were reminded of the need to make declarations of interest where appropriate.

To consider whether to approve the minutes as a correct record of the meeting held on 17 October 2023.

The minutes of the previous meeting held on 17 October 2023 were approved as a correct record and SIGNED by the Leader.

To receive a report from the Climate and Sustainability Specialist and the Corporate Manager for Finance, Property and Climate Change.

The Environment PDG has RECOMMENDED to the Cabinet the adoption of the attached guidance for officers and Members regarding climate and sustainability statements. This guidance relates to business cases and committee reports. Guidance was developed in consultation with the Net Zero Advisory Group and Corporate Managers and should now be used and maintained to help shape decisions and delivery in line with policy and statutory obligations. 

Cabinet had before it a report * providing an update on the Climate Action Plan (CAP) and the wider Climate and Sustainability Programme.

The Cabinet Member for Climate Change stated that the guidance, if adopted, would aid the Council in making well informed decisions and in moving towards its Net Zero targets.

Consideration was given to:

·       Officers across the Council needing to be fully aware of the impact of their service areas on the Climate Change agenda.

·       The guidance would further embed the need for this awareness and provide vital information to new and existing officers.

·       The good work undertaken by the Policy Development Group when making this recommendation.

·       The State of the District Debate would provide an important opportunity to work with Town and Parish Councils to strengthen knowledge and working practices in this area.

·       Mid Devon already employed a Climate Change Specialist and was one of the leading Councils in the South West regarding this issue.

RESOLVED that:

The report be accepted as an update on the Council’s response to the Climate Emergency, documenting progress with the Climate Action Plan (CAP) and the wider Climate and Sustainability Programme.

The guidance for officers and Members regarding climate and sustainability statements be adopted. This guidance relates to business cases and committee reports. Guidance was developed in consultation with the Net Zero Advisory Group and Corporate Managers and should now be used and maintained to help shape decisions and delivery in line with policy and statutory obligations. 

(Proposed by Cllr N Bradshaw and seconded by Cllr J Wright)

Reason for the decision

Progress on Performance Indicators (PI) provided separately by Performance and Risk Reports. There are 2 main risks (to the Council): 1) that the Council does not take sufficient actions to enable it to meet its Climate Emergency declaration ambitions; and 2) that the financial implications of Climate Change are not adequately measured and reflected in the Council’s decision making.

Note: * Report previously circulated.

To receive a report from the Deputy Chief Executive (S151) presenting the forecast Outturn position for the General Fund, Housing Revenue Account and Capital Programme for the financial year 2023/24.

The Cabinet had before it a report * from the Deputy Chief Executive (S151) presenting the forecast Outturn position for the General Fund, Housing Revenue Account and Capital Programme for the financial year 2023/24.

The Cabinet Member for Finance outlined the contents of the report with particular reference to the following:

·       Based on quarter 2 data the Cabinet were asked to note the Outturn position for the General Fund which was a £196k overspend. This needed to be set in context with the Council having set a budget back in March with an in year savings target of £1.025m. Therefore to have delivered all the services to a high standard and on time was a remarkable achievement.

·       Many other Council’s were facing serious financial difficulties. Under spending by over £800k needed to be recognised and praised.

·       Variances were symptomatic of economic circumstances e.g. Planning and Building Control fees were significantly lower than forecast due to the stagnation of the housing market.

·       Membership numbers continued to increase in Leisure.

·       Staff sickness continues to be quite high requiring more temporary staffing than expected.

·       These forecasts were before the final indications of the soft closure of 3Rivers takes place. This would incur further impairment of loans The funding of this impairment would need to be paid out of service underspends, Earmarked Reserves and additional borrowing in the future, all of which would impact future budget decisions.

·       The HRA was showing a healthy underspend of £485k, this was largely due to staff savings, partially offset by higher than budgeted materials.

·       Regarding the Capital Programme, there was a sizeable variance against the budget given the decision to close 3Rivers. There was also significant slippage regarding the Cullompton Relief Road.

Discussion took place regarding:

·       The sort of tendering process the Council went through to recruit agency staff.

·       There was a process from ‘Temporary’ to ‘Permanent’ but the need for this did not often occur as most people chose to work on a temporary basis in the service areas affected most.

·       Funds being used to do feasibility works in relation to Hydromills.

·       The larger number within the report were in relation to the Cullompton Relief Road, the Waste depot and 3Rivers. The remainder was due to slippage in the HRA development programme.

·       The long awaited announcement in relation to Council’s being able to increase Planning Application fees had been announced the previous day. This could potentially increase income to the Council by £200k a year.

·       There had been a well-attended Member briefing on the Budget.

RESOLVED that:

a.     The financial monitoring information for the income and expenditure for the three months to 30 September 2023 and the projected outturn position be NOTED;

b.     The use of Waivers for the Procurement of goods and services as included in Section 9 be NOTED;

c.     The estimated 2023/24 3Rivers write off of c£3.7m will be funded through a combination of Earmarked Reserves included New Homes Bonus and various sinking funds be NOTED. The precise make up of this will  ...  view the full minutes text for item 66.

To receive a report from the Deputy Chief Executive informing the Cabinet of the treasury performance during the first six months of 2023/24, to agree the ongoing deposit strategy for the remainder of 2023/24 and a review of compliance with Treasury and Prudential Limits for 2023/24.

The Cabinet had before it a report * from the Deputy Chief Executive (S151) informing it of the treasury performance during the first six months of 2023/24, to agree the ongoing deposit strategy for the remainder of 2023/24 and a review of compliance with Treasury and Prudential Limits for 2023/24.

The Cabinet Member for Finance outlined the contents of the report with particular reference to the following:

·       Changes in the Regulations required more regular reports to be presented to the decision makers of local authorities.

·       Higher returns had been achieved due to an increase in interest rates and a slippage on the Capital Programme.

·       No additional borrowing had been required.

·       An economic summary had been provided, showing the deposits held at the end of the quarter and the yields being achieved.

·       The report confirmed that the lending criteria remained appropriate.

Consideration was given to:

·       The security around short term deposits and whether these had reached maturity, it was confirmed that they had.

·       Reassurance was provided that the Council only borrowed from organisations with high ethical standards. This could be further strengthened as a requirement within the Treasury Management Policy approved by Council each year in February.

·       Funds placed with CCLA (Churches, Charities and Local Authorities) were currently doing well.

·       Some funds were only available for a finite amount of time.

RECOMMENDED to Full Council that:

a)    A continuation of the current policy outlined at paragraphs 4.0 – 4.5 be approved; and

b)    The changes to the Capital Financing Requirement, Operational Boundaries and Authorised Limits for the current year at paragraphs 5.4 – 5.5 be approved.

(Proposed by Cllr J Buczkowski and seconded by Cllr S Clist)

Reason for the Decision

Good financial management and administration underpinned the entire strategy. The Council’s Treasury Management Strategy should attempt to maximise investment return commensurate with minimum risk to the principal sums invested. The Council was under a statutory duty to “have regard” to the 2011 CIPFA Treasury Management Code of Practice. The Council’s own Financial Regulations included requirements as to the reporting of treasury management information. The Council considered deposit security as the paramount function in any treasury dealings or activities. It should be noted that any investment decisions would always be subject to a degree of risk. However, in complying with an agreed Treasury Management Strategy, these risks would be kept to an acceptable level.

Note: * Report previously circulated.

To receive a report from the Deputy Chief Executive (S151) detailing the statutory calculations necessary to determine the Tax Base for the Council Tax.

The Cabinet had before it a report * from the Deputy Chief Executive (S151) detailing the statutory calculations necessary to determine the Tax Base for the Council Tax. The calculations made follow a formula laid down in Regulations.

The Cabinet Member for Finance outlined the contents of the report with particular reference to the following:

·       It was reiterated that each year the Council had to set its Council Tax Base against which all Town and Parish Council’s could set their precepts.

·       Within the calculation were the actual numbers of properties within the district, the number of properties falling within the Council Tax Reduction Scheme, the forecast growth in properties and the likely level of collection, all of which are converted into an average amount for a Band D property.

·       For 2024/25 there was projected to be 30,222.10 Band D properties which was growth of 389 on the current year and the Council expected to collect 97.5% of the precept which was up from 96.5% in 23/24.

·       Although they did not affect the materiality of the report, some amendments needed to be highlighted within the report: The effective date in paragraph 3.7.1 should have been 2025 not 2024 and conversely in paragraph 3.8.2 it should have been 2024 not 2025.

Discussion took place regarding:

·       The effective commencement date of an empty property in terms of collecting Council Tax.

·       Discretionary relief was available via the Exceptional Hardship Fund.

·       The threshold figure used to discount savings was £16k.

·       The amount of Council Tax that could be applied for second homes. By law, residents needed to be given 1 years notice before Council Tax doubled to 200%.

·       In Mid Devon, a lot of the properties were Band D or below.

·       Some elements of the Council Tax regime were unfair.

·       Only 9.8% of the Council Tax collected by MDDC actually came back to the authority for use on service provision.

·       The difficulties involved in identifying second homes, although it was confirmed inspections took place.

·       Concerns amongst the parishes regarding second homes which could be further discussed at the State of the District Debate.

·       The rules regarding the use of second homes as holiday lets and the number of days properties could be let out for each year.

RECOMMENDED to Full Council that:

a)    That the calculation of the Council’s Tax Base for 2024/25 be approved in accordance with The Local Authorities (Calculation of Tax Base) (England) Regulations 2012 at 30,222.1 an increase of circa 389.12 Band D equivalent properties from the previous financial year.

b)    That the current collection rate of 96.5% be increased to 97.5% detailed in Section 2.

(Proposed by Cllr J Buczkowski and seconded by Cllr J Lock)

Reason for the decision

Mid Devon District Council was a Statutory Billing Authority and must set its Council Tax each year. If it were not to set a Council Tax then the Authority and all Precepting Authorities would be unable to raise money to pay for all the services they provide.This was a  ...  view the full minutes text for item 68.

To receive a report from the Director of Place informing members of the outcomes of the public consultation on the Meeting Housing Needs Supplementary Planning Document, the amendments that have been made in response to comments received and to formally adopt the Meeting Housing Needs Supplementary Planning Document (SPD).

The Cabinet had before it a report * from the Director of Place informing it of the outcomes of the public consultation on the Meeting Housing Needs Supplementary Planning Document, the amendments that had been made in response to comments received and to formally adopt the Meeting Housing Needs Supplementary Planning Document (SPD).

The Cabinet Member for Planning and Economic Regeneration outlined the contents of the report and made reference to the following:

·       The existing Meeting Housing Needs SPD was adopted in June 2012 and was now out of date. The SPD had therefore been updated to reflect the policies of the current adopted Local Plan ensuring that the guidance was consistent with the latest national planning policy and practice guidance. Additionally, the update sought to reflect on, and positively respond to, the Council’s Corporate Plan and Housing Strategy.

·       The scope and content of the new Meeting Housing Needs SPD was broader than the current version. It set out a series of positive measures to support housing diversification in Mid Devon including through community led housing, custom and self-build and modern methods of construction. The SPD also provided comprehensive guidance on affordable housing matters including tenure mix, dwelling size and design considerations, housing for older people and those with disabilities as well as planning to meet the needs of gypsies, travellers and travelling show people.

·       A six week public consultation on the draft SPD took place between 17^th July and 25 August 2023 where a total of 11 responses were received. Officers had provided a summary of the main comments received along with a response and where appropriate an explanation of how these comments had been addressed in the final version presented for adoption.

·       Once adopted, the Meeting Housing Needs SPD would be capable of being a material consideration in the determination of planning applications.

Discussion took place with regard to:

·       Why the consultation had taken place when it had? It was confirmed that there had been no specific reason, it had just been the earliest opportunity mindful of the timescales of the new Local Plan.

·       The allocation to key workers and how they were defined.

·       Community Land Trusts, how many existed and was the fact that funding was available widely advertised? It was confirmed that all Town and parish Council’s had been written to with an offer of officer support for those interested in submitting an application. Again, this could be an issue to be followed up through the State of the District Debate. It was confirmed that Government funding had been secured from the LGA.

·       The benefits of self builds in terms of meeting Net Zero targets, however, self builds were costly due to material costs having gone up.

      RESOLVED that The Mid Devon Housing Needs Supplementary Planning Document (Appendix 1 of this report) be adopted and is published on the Council’s website together with the Strategic Environmental Assessment Screening Report (Appendix 2), the Habitats Regulations Assessment Screening Report (Appendix 3), the Statement of Consultation (Appendix 4),  ...  view the full minutes text for item 69.

To receive a report from the Director of Place presenting an Infrastructure List which the Council maintains for the purposes of identifying those items of infrastructure that it intends to fund, either wholly or partly, through development (developer contributions, also known as Section 106 (S106) agreements). The Cabinet are asked to consider approving this. 

The Cabinet had before it a report * from the Director of Place regarding the Annual Infrastructure Funding Statement; The Infrastructure List which the Council was required to maintain for the purposes of identifying those items of infrastructure that it intended to fund, either wholly or partly, through development (developer contributions, also known as Section 106 (S106) agreements).

The Cabinet Member for Planning and Economic Regeneration outlined the contents of the report and provided the following summary:

·       The report related to infrastructure that could be funded partly or wholly by developer contributions.

·       The report identified several types of infrastructure that were necessary to support the delivery of adopted Local Plan.  These had been recorded in a list (the infrastructure list) and divided into three categories of priority; high importance, importance and desirable; based on a combination of strategic importance and a requirement to spend existing funding within a legally specified timescale.  Under each infrastructure type are further details of the required infrastructure item.

·       The list was not exhaustive, it was a live document that continued to evolve.

·       In addition to compulsory reporting the list was a key document in informing future S106 agreements. 

·       The Planning Policy Advisory Group had been asked to consider this list.  No changes had been suggested. 

Consideration was given to:

·       A possible need to have consulted with the Town and Parish Council’s.

·       The List needing to align with the Local Plan.

·       The List was only ever a ‘snapshot’ at one particular time and was therefore out of date quite quickly.

·       There was still a lot of work to do in terms of linking up with the Local Plan and ensuring that all available funds were accessed and used within relevant timescales.

RESOLVED that:

a)    The list of infrastructure (Appendix 1; the Mid Devon Infrastructure List) that the Council intends to fund, either wholly or partly, by developer contributions is approved.

b)    The Infrastructure List will be included within the annual Infrastructure Funding Statement (IFS) to be published on the Council’s website by 31^st December 2023.

(Proposed by Cllr S Keable and seconded by Cllr J Lock)

Reason for the decision

The Infrastructure List plays an important role in identifying when developer contributions can be used to assist in the delivery of infrastructure.  It is an easily accessible document that sets out the Council’s priorities for income from development and expenditure. Risk is multi-faceted, but publication of a clear IFS mitigates these by allowing transparency on the utilisation of S106 funds, allows monitoring of measures to be implemented to support planned development and also safeguards against the loss of S106 receipts through the passage of time.

Note: * Report previously circulated.

Discussion with regard to the next items, may require the Cabinet to pass the following resolution to exclude the press and public having reflected on Article 12 12.02(d) (a presumption in favour of openness) of the Constitution. This decision may be required because consideration of this matter in public may disclose information falling within one of the descriptions of exempt information in Schedule 12A to the Local Government Act 1972. The Cabinet would need to decide whether, in all the circumstances of the case, the public interest in maintaining the exemption, outweighs the public interest in disclosing the information.

Recommended that under Section 100A(4) of the Local Government Act 1972 the public be excluded from the next item of business on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 3 respectively of Part 1 of Schedule 12A of the Act, namely information relating to the financial or business affairs of any particular person (including the authority holding that information.

The Leader indicated that discussion with regard to the following items, required the Cabinet to pass the following resolution to exclude the press and public having reflected on Article 12 12.02 (d) (a presumption in favour of openness) of the Constitution. This decision was required because consideration of this matter in public would disclose information falling within one of the descriptions of exempt information in Schedule 12A to the Local Government Act 1972. The Cabinet decided, in all circumstances of the case, the public interest in maintaining the exemption interest in disclosing the information, outweighed the public interest in disclosing the information.

RESOLVED: That, in accordance with Part I of Schedule 12A to the Local Government Act 1972, the press and public be excluded from the meeting for  item’s 12 and 13, for the reason set out below:

Information under paragraph 3 (contains information relating to the financial or business affairs of any particular person including the authority holding that information).

(Proposed by the Leader).

To receive a report from the Deputy Chief Executive (S151) considering options relating to a number of car parking spaces in Halberton, currently being marketed by the Council’s development company.

The Cabinet had before it a report * from the Deputy Chief Executive (S151) considering options relating to a number of car parking spaces in Halberton, currently being marketed by the Council’s development company.

The Cabinet Member for Finance outlined the options available. Following discussion and having returned to open session, the Cabinet:

RESOLVED that:

a)     3Rivers is instructed to release the 5 car parking spaces to MDDC ownership in part consideration of outstanding liabilities, valued at the current price being marketed.

b)    Once the spaces are within the Council’s ownership, delegated authority be given to the S151 Officer to explore how they can be made available to Halberton Parish Council to manage on a Full Repairing and Insuring Lease and a further report be brought back to cabinet.

(Proposed by Cllr J Buczkowski and seconded by Cllr J Lock)

Reason for the decision

Value For Money / best value should be achieved on all asset disposals. 

Note: * Report previously circulated.

To receive a report from the Corporate Manager for Council Tax, Business Rate, Benefits, Corporate Recovery, Planning & Leisure.

The Community Policy Development Group has RECOMMENDED that the Cabinet approve the strategy to change fees and charges as proposed in this report.

The Cabinet had before it a report * from the Corporate Manager for Council Tax, Business Rate, Benefits, Corporate Recovery, Planning & Leisure informing it of proposals to change the Leisure fees and charges strategy.

The Community Policy Development Group had RECOMMENDED that the fees and charges proposed within the report be approved.

The contents of the report were outlined by the Cabinet Member for Community & Leisure. Following discussion and having returned to open session, the Cabinet:

RESOLVED that the strategy to change fees and charges as proposed in the report at sections 2.8.1 and 2.8.2 be approved.

(Proposed by Cllr D Wulff and seconded by Cllr S Keable)

Reason for the decision

There is a legal obligation to notify customers with direct debits of any changes to their payments with at least 10 day notice. As we are increasing these, for some customers, we will aim to give at least 2 weeks’ notice. The commercial nature of the industry and the cost of living crisis means that Mid Devon Leisure can be vulnerable to threats from; competition, substitutions and price sensitivity. It could also exclude certain priority groups the service is trying to encourage to use the facilities and get active, however the pricing strategy is trying to minimise the impact on these groups as much as possible. The service plans to ensure the marketing message around any price increases showcases the value attached to the service with the service’s unique selling points to ensure we continue to grow, and maintain, participation levels at mid Devon Leisure.

Following the decision made by the Cabinet, the Cabinet Member for Community & Leisure made the following statement:

“In looking at the leisure pricing, both the Community Policy Development Group and the Cabinet gave consideration to how we can encourage greater participation, and increased activity, amongst young people by giving access to the full facilities at an affordable rate.  This is particularly important given the life-long health benefits early access to health, fitness and sports can provide.  This is something that Mid Devon Leisure is uniquely positioned to deliver due to the high quality of its pools and courts, fitness equipment and instructors amongst its peers.

Inflation affects us all.  Whilst funding the service to ensure it continues to deliver that high quality, we need to be confident we do not put barriers up that prevent low-income users from accessing these services, and we must ensure we don’t pass on the increasing costs of the service to those least able to afford it.

Mid Devon Leisure will continue to support those members of the community accessing means tested benefits via Concessionary discounting to pay and play fees and charges, in addition to discounted membership opportunities.  And staff have already identified new services to offer that cater to younger people and help increase access to physical activity in fun and collaborative ways.

Additionally, we have also committed to making it easier for care leavers to access our leisure services by agreeing to offer care experienced  ...  view the full minutes text for item 73.

To consider the Schedule of Meetings for 2024/2025 and make recommendation to Council.

The Cabinet had before it the * Schedule of Meetings for 2024/2025.

RECOMMENDED to Council that the Schedule of meetings for 2024/2025 be approved.

(Proposed by the Leader)

Note: * Schedule previously circulated.

To note the contents of the Forward Plan.

The Cabinet had before it, and NOTED, the Notification of Key Decisions *.

A number of additions had been made to this since the publication of the document with the agenda for this meeting:

·         Strategic Grants Review

·         Purchase offer for land at Post Hill, Tiverton

·         Completion Notice Policy

·         Council Tax Empty Premises Policy

·         NDR DRR policy amendment

·         Pets and Animals Policy

Note: * Notification of Key Decisions previously circulated.