CABINET
MINUTES of a meeting held on 25th
April, 2007.
Present: Councillor Ms. M.E. Alexander
(Chairman); Councillor N. Moore (Vice-Chairman), Councillors R.F.
Curtis, S.C. Egan, C.P. Franks, N.J. Gibbs, G. John,
Mrs. M. Randall, Mrs. M.R. Wilkinson and C.J.
Williams.
Also Present: Councillor Mrs. V.M.
Hartrey.
C2987
MINUTES -
RESOLVED - T H A T the minutes of the meeting
held on 18th April, 2007 be approved as a correct record
subject to Minute No. C2980 being amended to read “Clerks of Town /
Community Councils” not Committee Councils.
C2988
DECLARATIONS OF INTEREST -
No declarations were received.
C2989
INTERNAL
COMMUNICATIONS STRATEGY (CX) (SCRUTINY – CORPORATE RESOURCES)
–
Cabinet’s endorsement was sought for the
Council’s proposed Internal Communications Strategy 2007 - 2009 and
its associated action plan. The Council’s previous Internal
Communications Strategy had been adopted in April 2003 and had been
implemented. The revised strategy sought to further develop
the Council’s internal communications over the next two
years.
This matter was for Executive decision.
RESOLVED – T H A T the Internal Communications
Strategy for 2007 - 2009 and the action plan attached to the report
be endorsed.
Reason for decision
To provide an effective base for the
development of the Council’s internal communications
activities.
C2990
PROGRESS REPORT:
EXTERNAL COMMUNICATIONS STRATEGY (CX) (SCRUTINY – CORPORATE
RESOURCES) –
a.
the MRA under-spend of £2,832,300 at 31st March, 2006
would be recovered unless a satisfactory investment plan was
received by the Welsh Assembly Government no later than
30th September, 2007 and,
b.
the MRA indicative allocation of £2,700,000 for 2007-08 would be
suspended pending receipt by the Welsh Assembly Government of the
satisfactory plan.
Further representations had been made
by the Leader and Deputy Leader to WAG regarding the importance of
the MRA to the Vale’s tenants and of the Council’s ability and
intention to utilise the MRA. Consequently a revised Interim
Investment Programme for 2007 / 2008 and
2008 / 2009 was produced and was attached at Appendix 1
to the report. This was based on a re-assessment of the data
from the original stock condition survey together with knowledge
and information from property records and officers. The Chief
Executive had exercised his emergency powers in order that it could
be submitted to WAG, with the HRA Business Plan, by 31st
March, 2007. On 10th April, 2007 the Welsh
Assembly Government confirmed in writing that they had approved
£2,832,330 to be carried forward into 2006 / 2007 and 2007 /
2008 and that they agreed to offer a MRA grant of £2,7m. to the
authority. Both grants were subject to the usual terms and
conditions and the 2007 / 2008 allocation had to be accepted in
writing. The Director of Finance, ICT and Property had notified WAG
of the acceptance of the grant. The MRA would be used to fund
the Interim Investment Programme and it was proposed that this be
included as part of the Council’s Capital Programme. In order
to provide better and more up to date information for the longer
term investment, work was currently ongoing to commission a new
stock condition survey in early 2007. It was proposed that a
revised specification be considered that would consist of a 10%
sample survey and be subject to a future Cabinet report. The stock
condition survey would result in the development of evidenced work
programmes for the Council’s housing stock in 2008 / 2009 and
onwards. The report noted that the lead Scrutiny Committee
was Corporate Resources.
Action 1 – Increase Service Charges by
approximately £127k. per annum from 2008 / 2009 (Year 2)
onwards. Cabinet would be presented with the results of a
review currently ongoing during the summer of 2007.
Action 2 – Achieve a stepped reduction in
supervision and management costs of 1.30% every 5 years to reflect
the estimated reduction in the housing stock due to Right-to-Buy
sales.
Action 3 – Building Maintenance Client to
reduce their recharge to the Housing Revenue Account by £200k. from
2008 / 2009 onwards, due to efficiencies being found within the
service.
Action 4 – The Housing Service to achieve
efficiency savings of 1% per annum for 15 years from 2008 / 2009 to
2021 / 2022 on Supervision and Management costs.
Action 5 – Achieve HRA Land Asset sales
totalling £3m. in 2008 / 2009. Current financial
rules allowed the Council to use 50% of the total value and quotes
were due for marketing/valuation advice for the sites originally
highlighted in the Tribal report.
Action 6 – Undertake Prudential Borrowing
totalling £34.780m. over 30 years to achieve, and maintain,
housing stock to the WHQS.
The report noted that this model demonstrated
that the WHQS could be achieved and the Housing Revenue remain
viable over the period of the Business Plan and it was suggested
that this model form the basis of the Council’s financial strategy
to retain its Housing Stock and achieve the WHQS.
A number of additional sensitivities to the adjusted base model
outlined in the above paragraph had also been analysed and formed
the basis of the remaining two models included in the HRA Business
Plan :-
·
Sensitivity 1 – Management & Maintenance (M&M) Allowances
to increase by 2% plus RPI p.a. until 2012 / 2013
(instead of RPI only). WAG’s current guidance was that
M&M allowances should increase by inflation only, however over,
the last few years allowances had increased on average by 2% plus
RPI, and for 2007 / 2008 the increase was 5% plus
RPI.
·
Sensitivity 2 - Rent increases at 5% plus RPI from
2008 / 2009 to 2013 / 2014. Rents in the
adjusted base model were assumed to increase by RPI plus 1%, which
was in line with notional rents in the Subsidy.
The two sensitivities
improved the overall financial position however Sensitivity 1 was
beyond the control of the Council and Sensitivity 2 required an
increase in rent above WAG guidelines. Consequently, it was
not recommended that they be adopted at this stage as part of the
strategy. Attached at Appendix (G) to HRA Business Plan
was a risk appraisal for the stock retention model. The risk
appraisal highlighted the key issues that the Council needed to
consider to ensure that a stock retention strategy was
successful. It was proposed that the use of prudential
borrowing be delayed until at least April 2009, to allow the
Council to more fully assess the viability of the Retention
Strategy. Until that time the Business Plan proposed to use Major
Repair Allowance (MRA) Funding and Capital Receipts.
(2) T H
A T the Financial Strategy as outlined in paragraph 9 and
exemplified in the adjusted Base Model included in the HRA Business
Plan be agreed and the following Actions be approved:
Action 1
Review Service Charges for implementation for
2008 / 2009
Action 2
Reduce supervision
and management costs in steps to reflect the reduction in the
housing stock due to Right-to-Buy sales.
Action
3 Reduce by
£200,000 the recharge to HRA from Building Maintenance Client from
2008 / 2009 onwards.
Action
4 Housing
Service to make Efficiency Savings of 1% per annum for 15 years on
Supervision and Management costs.
Action 5
Identify potential
HRA Land Asset sales totalling at least £3 million by
2008 / 2009 and bring a further report for Cabinet to
consider.
Action
6 Approve In
principle, Prudential Borrowing of £34.780 million should Stock
Retention remain viable from 2009 / 2010.
Reasons for decisions
(1) and
(2)
To ensure that the Council considers all the relevant issues that
need to be actioned to support a stock retention strategy.
(a) The
feasibility of operating the Barry Island TIC on the same basis as
the revised opening hours of the Penarth TIC.
(b) The potential involvement
of Barry Island Traders in the provision of tourism information
literature.
(c) Options to allow for
the utilisation of space within the Barry Island TIC building for
alternative leisure uses.
(5) T H A
T the Director of Environmental and Economic Regeneration submit a
further report in respect of any service delivery issues that may
arise as a result of the revised opening arrangements of both Barry
Island and Penarth TICs.”