Agenda item

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

 

 

Mr Nick Quinn

 

Regarding Agenda Item 8 – Medium Term Financial Update.

 

Appendix 1 shows a Savings Options Summary Table, listing various areas and the potential savings which it is believed can be made.

 

I have questions about some of the items shown on the table:

 

Q1: Corporate Management shows no savings at all, but Staffing shows a Total Saving of £779k. Why? Is it easier to get rid of Workers than Managers?

 

Answer: Staffing savings is a generic savings figure and therefore aggregates all Council services including Corporate Management. At item 7 this evening we are actually looking at the makeup of the senior officer structure.

 

Q2: The Pannier Market shows a Budget of £79k but Total Savings of £100k. How can more money be saved than is budgeted?

 

Answer: The budget is net of income, plans are being considered to move this from a net cost to a net income generator for the Council.

 

Q3: Licensing is shown as a statutory function. How can a budget of £24k be reduced to just £4k and still provide the required Statutory service?

 

Answer: Again, the budget is net of income. The specific savings options are shown in Appendix 2, rows 15 and 17.

 

Q4: On the Staffing line, there are no figures in the Budget or the Percentage change columns.  Why is this?

 

Answer: The budgets are included within the specific service lines above.

 

Q5: If Staffing, and possibly Services, are being reduced - why does the Council still need the same amount of Management?

 

Answer: Item number 7 this evening we are specifically looking at the make-up of the senior officer structure.

 

Mr Paul Elstone

 

My questions relate to Agenda Item 8 – Medium Term Financial Plan Update and associated financials.

 

Question  1

Appendix 1 - Savings Options Summary Lists Parks and Open Spaces, shows a £50K saving. This amount it is believed to be the money required to keep both the Westexe, Tiverton, and Crediton paddling pools open and maintained over a year, plus perhaps the children's play equipment. Additionally, the Pannier Market is showing a saving of £100K.

 

Appendix 2 Headline Savings Options Round 1: Row 5 says and specifically against these budget items:

 "Therefore, as indicated previously some services will cease" and "Reputational risk are likely”.

 

Will the Council Leader provide categorical assurance, this evening, that he fully supports both the Westexe Tiverton and Crediton Paddling pools being fully open for use next summer and in the 2024/25 budget year and that he is not in agreement with officer recommendations? 

 

Question 2

Will the Council Leader also state that he is against the Tiverton Pannier Market being impacted irrespective of any Tiverton Town Council Funding decision?

 

Question 3

It has been stated, in answer to a previous question, that all 3 Rivers funding came from temporary cash flow treasury lending.

How precisely is this Treasury Account funded?

 

Question 4

The previous 3 Rivers loan impairment of £790,000 was required to be written off over a 5-year period. This despite the S151 Officer initially saying it was not necessarily a loss but prudent accounting.

How long will the additional £4.5 million 3 Rivers loan impairment take to be written off?  

 

Question 5.

When setting the budget for 2023/24 there was a requirement to draw down General Fund reserves by around £500K. This was justified by officers stating there was a requirement to compensate for lost interest payments due from 3 Rivers - given the then Full Council’s decision not to approve future new developments.

Can it be explained, and in simple terms, that while the 3 Rivers receive loans from a Treasury Account, the interest is paid to support the General Fund.

Surely interest should be paid back to loan source account.  If not, why not?

 

The Leader stated that a written response would be provided to the questioner following the meeting as he had not provided questions in advance. The Clerk would notify him when the answers had been provided.

 

Barry Warren

My first questions relate to Agenda Item 7.

When I became Leader of the Council at the end of February 2023 a recruitment process had been commenced to replace the retiring Director. As the result of representations made to me I had discussions with the Chief Executive and put forward the idea of potential savings for the budget by not replacing the Director. Some of the savings could be used to reward other officers who had taken on more responsibilities. He was insistent that the post had to be filled and said he took this position as the result of advice obtained from the Local Government Association and South West Councils.  I asked to see that advice but was never shown it.  The Chief Executive advised Elected Members that he and I had agreed not to fill the post for an interim period before further review.

Is this current report the end result of that period of review?

 

Answer: Yes

 

1.            The recommendation now is not to replace the retired Director and delete that post.  The report states that advice has been sought from the Local Government Association and South West Councils who support the recommendation. This appears to be a complete ‘U’ turn from what I was told the previous external advice had been.  What has changed to bring forward this different advice?

Answer: Time and context.

The advice had previously been given relating to that of the council’s housing function, specifically in light of emerging changes to the regulatory framework arising from the need for quality assurance in social housing. In the time since Mr Warren was a councillor, things have moved on and it is now clear that housing functions can sit appropriately in the structure without the need to create a Director level post. Recent advice confirms this.

In the first paragraph of the report it states that this is being done to achieve financial savings.  Under Financial Implicationsit states ‘when implemented it will deliver financial savings as compared to the currently-budgeted structure.

 

a)    If this recommendation is adopted when will it be implemented and what savings will be made?

Answer: As the report states; as soon as possible, and unknown at this point, hence making it clear that savings will be reported in the usual way.

b)    There has not been a Director in place since the previous one retired and so in simple terms what financial savings have been made to date?

Answer: Circa £25k.

2.            If one looks at Agenda Item 8, Appendix 1 on page 81 of the papers on the top line against Corporate Managementthe annual budget for 2023/24 is shown as £1,338,000.  The Total Savings are shown as Zero. 

One report says there will be savings and another shows there will be none.  Are Cabinet sure of what they are going to be agreeing to?

Answer: For Cabinet to consider during debate.