THE “CALL IN”PERIOD FOR THESE DECISIONS EXPIRES AT 5.00 PM ON FRDIAY, 21 FEBRUARY 2003.  NONE OF THE DECISIONS CAN BE IMPLEMENTED UNTIL AFTER THAT DATE.

 

MINUTES OF A MEETING OF THE EXECUTIVE HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON WEDNESDAY 12 FEBRUARY 2003 COMMENCING AT 9.30 AM

 

Present :

 

Mrs S A Smart (Chairman), Mr R R Barry, Mr E Fox, Mr P G Harris,     Mr D J Knowles, Mrs B Lawson, Mr R G Mazillius, Mrs J L Wareham

 

Apologies :

 

                        Mrs M A Jarman, Mr H Rees

 

Also present non-voting :

 

Mr A C Bartlett, Mr B C Buckle, Mr J H Fleming, Mr A A Taylor

 

 

 


183.          MINUTES

 

RESOLVED :

 

THAT the Minutes of the meeting of the Executive held on 29 January 2003 be confirmed.

 

184.        DECLARATIONS OF INTEREST

 

Interests were declared in the following matters:

 

Mrs B Lawson declared a personal interest in Minute 185 - Part 6 Of The Homelessness Act 2002 And The Common Housing Register, as a member of Vectis Housing Association.

 

185.        PART 6 OF THE HOMELESSNESS ACT 2002 AND THE COMMON HOUSING REGISTER

 

The Portfolio Holder informed members of the new provisions contained in the Homelessness Act 2002 which amended the duties placed on local authorities to maintain a statutory housing register.  Section 14 introduced changes to the framework for determining allocations, which would repeal the obligation on local authorities to maintain a traditional waiting list.  This was designed to facilitate the introduction of a flexible, choice-based lettings schemes.

 

Members were updated on the progress on the development of the Common Housing Register which would be delivered through a service level agreement. £80,000 had been allocated for capital expenditure in 2002/3 to purchase the software and hardware required and the annual running costs would average £35,000 per year.  This amount would be apportioned between the Council and the housing associations who were involved.

 

RESOLVED :

 

(i)         THAT the changes introduced in section 14 of the Homelessness Act 2002 be noted

 

(ii)        THAT the introduction of the Common Housing Register and the terms of the Service Level Agreement as from 31 March 2003 be approved

 

186.        REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

 

(a)               Revenue Support Grant Settlement, The Island Council Budget for 2003/04, Council Tax 2003/04 and Forward Plan to 2005/06

 

A revised version of the report had been sent to members prior to the meeting.

 

Members received details of the Government’s final Settlement for 2003/04.  There had been a major change in the local government finance system for 2003/4 that had resulted in a major shift in resources away from the South East of England.  Following representations to the Minister of State for Local Government and the Regions, Nick Raynsford MP, a significant change from the consultation process had been achieved. This would result in an improved settlement in 2003-04 to just under £1 million (due to the temporary protection provided by the 3½% grant floor in the original proposals). Beyond next year the Council would eventually be £4.5 million per annum better off.

 

However, the general transfer of resources away from the South East remained an issue, with the effect in 2003/4 of a 9% Council Tax increase due to the system change alone, notwithstanding the restoration of the Area Cost Adjustment.  There remained therefore, a substantial loss of grant compared to the average local authority.

 

The Council would now receive a 5.4% cash increase in grant and business rates in 2003/4.  The increase in the Council’s Formula Spending Share was greater than this at 7.6%, so that the effect on Council Tax (which finances only part of spending) would produce a far greater percentage increase in Council Tax.

 

The Portfolio Holder stated his intention to propose that the Council Tax for services for 2003/04 be set at £1024 for band D taxpayers, an increase of 14.32% and that the draft recommendations be noted and put to Full Council.

 

RESOLVED TO RECOMMEND TO COUNCIL :

 

(i)                 THAT the revenue estimates for 2003/04 be £148,028,000 after making the changes set out in Appendix 4 of the report

 

(ii)               THAT the Council set a Schools Budget of at least £57,155,001 for 2003-04 exclusive of the Learning Skills Council allocation

 

(iii)             THAT the Schools Budget shares be determined by the Strategic Director of Education and Community Development within the approved service budget.

 

(iv)              THAT authority be delegated to the Executive to determine the initial capital programme within the limit of available capital resources and having given consideration to the views of Select Committees; and thereafter for the Directors Group to manage the programme from day to day within available resources and subject to any direction from the Executive.

 

(b)                Capital Programme 2003/04

 

Consideration was given to the recommendations of the Directors Group in respect of capital expenditure bids and capital resources for the 2003/04 financial year.  These had been analysed on the basis of the scoring mechanism in the Council’s approved capital strategy.

 

This was the second year of the Governments Single Capital Pot proposals for the capital programme.  These allocations now constituted the Single Capital Pot, and were not ring fenced.  The Council had the discretion to use it as it chose.  However, service plans as submitted to individual Government Departments such as Education, Housing and Transport meant that the Council was inhibited in the use of this discretion if it was to maintain current levels of Annual Capital Guidelines.

 

RESOLVED TO RECOMMEND TO COUNCIL :

 

(i)                 THAT the Education and Highways capital programmes be determined within their respective Annual Capital Guidelines.

 

(ii)               THT Officers proceed with a Housing Investment Programme consistent with the Housing Annual Capital Guideline and that further investment in Housing be considered in due course having regard to available resources.

 

(iii)             THAT the Annual Capital Guideline of £105,000 relating to Social Services be used in accordance with a programme to be determined by the Strategic Director for Social Services and Housing.

 

(iv)              THAT the bids contained at Appendix B attached to the report be approved, in accordance with the recommendations of the Directors Group.

 

(v)                THAT Coast Protection Schemes proceed on the basis of DEFRA approval, funded by SCA and Government Grant.

 

(vi)              THAT any further SCA received in respect of specific schemes be approved subject to release by the Directors Group.

 

(vii)            THAT the acquisition of plant and equipment by operating lease be considered where it would be cost effective to do so and where sufficient revenue resources exist to fund the leasing premiums and any other associated costs.  Such leases would be made centrally through the Council’s Finance Unit.

 

(c)                Code of Practice for Treasury Management and Treasury Strategy 2003/04

 

The Portfolio Holder for Resources presented the report on a revised Code of Practice for Treasury Management in the Public Sector produced by the Chartered Institute of Public Finance and Accountancy.  A new Treasury Management Policy Statement focused on the risk implications of the organisation and committed the Authority to best value in treasury management.

 

Consideration was also given to the Treasury Strategy for the 2003/04 financial year which proposed a strategy for dealing with the management of all money and capital relating to the funding resources of the Council.

 

RESOLVED TO RECOMMEND TO COUNCIL :

 

(i)                 THAT to conform with the new Code of Practice, it was recommended that the Isle of Wight Council adopts the key recommendations of CIPFA’s Treasury Management in the Public Services Code of Practice.

 

(ii)               THAT in accordance with the above, a Treasury Management Policy Statement, as set out as Appendix A attached to the report be agreed, stating the policies and objectives of its treasury management activities, and that suitable Treasury Management Practices as are adopted, as set out in Appendix B attached to the report, setting out the manner in which the organisation would seek to achieve those policies and objectives, and prescribing how it would manage and control those activities.  The content of the Policy Statement and Treasury Management Practices would follow the recommendations as contained in the code.

 

(iii)             THAT the Treasury Strategy for the 2003/04 financial year as contained at Appendix C as attached to the report be approved.

 

(iv)              THAT the Executive would receive reports on its policy practices and activities, including as a minimum, an annual strategy in advance of any year and an annual report after the close of each financial year.  Such reports would be consistent with its agreed Treasury Management Practices.

 

(v)                THAT the Executive would responsibility for the implementation and monitoring of its treasury activities and practices.   The Chief Financial Officer would have delegated authority to act in accordance with the Policy Statement, the Treasury Management Practices and with Chartered Institute of Public Finance and Accountancy’s Standard of Professional Practice on Treasury Management

 

(vi)              THAT the above would be consistent with existing financial regulations and delegated authority and would be incorporated into the latter document.

 

187.        MEMBERS’ QUESTION TIME

 

Questions were put to the Chairman as follows :

 

Mr B Buckle asked a question in relation to the report into the Music Festival         (MQ 8/03)

 

Copies of the questions and replies given are contained in the Members' Question Register.

 

 

 

 

CHAIRMAN