To confirm the Minutes of the meeting of the Executive held on 22 November 2021. (Copy Minutes herewith)
The reports in respect of the items listed under Agenda Item A.1 have been reproduced in a Budget Book and circulated under cover of a letter dated 12 November 2021 from the Corporate Director of Governance and Regulatory Services.
The Corporate Director of Finance and Resources to submit an update to report RD.46/21 with a summary of the Council’s revised revenue base estimates for 2021/22, together with base estimates for 2022/23 and forecasts up to 2026/27 for illustrative purposes. Potential new spending pressures, bids and savings are also considered. (Report RD.52/21 herewith)
Portfolio Finance, Governance and Resources
The report drew Members’ attention to the fact that a number of significant factors affecting the budget were currently unresolved. In particular, the following were key to the budget process and details thereon would be considered as the budget progressed.
Set out at Section 3 was an overview of the outstanding key issues and resource assumptions, with details of the potential new spending pressures/bids that needed to be considered also provided at Section 4.
The Council’s current levels of balances set out at Appendix A included any impact of the proposed pressures and savings outlined in the report. The Projects Reserve would be used as a first call for any projected revenue budget deficit however, maintaining the current level of reserves was dependent upon the achievement of the transformation savings. A risk-based review of reserve levels had been undertaken and showed that the minimum level of General Fund Reserves should remain at £3.1million due to uncertainties around future funding from Business Rates; however that would be reviewed during the budget process.
The Corporate Director of Finance and Resources to submit a report summarising the revised capital programme for 2021/22 together with the proposed method of financing as set out in Appendices A and B. The report also summarises the proposed programme for 2022/23 to 2026/27 in the light of new capital proposals identified and summarises the estimated capital resources available to fund the programme. (Report RD.55/21 herewith)
(Key Decision – KD.10/21) Portfolio Finance, Governance and Resources Relevant Scrutiny Panel Business and Transformation
Subject Matter
Pursuant to Minute EX.133/21, the Finance, Governance and Resources Portfolio Holder submitted report RD.55/21 which provided an update to the Corporate Director of Finance and Resources’ report to the Executive of 22 November 2021 (RD.47/21).
The report set out the proposed capital programme for 2022/23 to 2026/27 in the light of new capital proposals identified and summarised the estimated capital resources available to fund the programme.
The resources available to support the capital programme could only be estimated during the year. The final position was dependent, in particular, on how successful the Council had been in achieving Capital Receipts from the sale of assets against its target.
The cost of externally borrowing £1m to fund the capital programme would result in a charge to the revenue account in the next full year of approximately £50,000. That was made up of £20,000 for the cost of the interest payable (2% of £1m equated to £20,000) and a principal repayment provision of 3% of the outstanding sum (3% of £1m equated to £30,000).
The revised capital programme for 2021/22 (Appendix A) now totalled £30,378,800. The revised anticipated resources available and their use to fund the capital programme were depicted at Appendix B.
The Finance, Governance and Resources Portfolio Holder moved the recommendations, which were seconded by the Economy, Enterprise and Housing Portfolio Holder.
Summary of options rejected None DECISION
That the Executive: (i) Noted the revised capital programme and relevant financing for 2021/22 as set out in Appendices A and B of report RD.55/21; (ii) Given initial consideration and views on the proposed capital spending for 2022/23 to 2026/27 given in the report in the light of the estimated available resources; (iii) Noted that any capital scheme for which funding has been approved by Council may only proceed after a full report, including business case and financial appraisal, has been approved. Reasons for Decision To ensure that a balanced budget is set
The Corporate Director of Finance and Resources to submit a report setting out the Council’s draft Treasury Management Strategy Statement for 2022/23, in accordance with the CIPFA Code of Practice on Treasury Management. The Investment Strategy and the Minimum Revenue Provision (MRP) Strategy for 2022/23 are also incorporated as part of the Statement. So too are the Prudential Indicators as required within the Prudential Code for Capital Finance in Local Authorities. (Copy Report RD.53/21 herewith)
(Key Decision – KD.10/21)
Relevant Scrutiny Panel Business and Transformation
Pursuant to Minute EX.135/21, the Finance, Governance and Resources Portfolio Holder submitted report RD.53/21 setting out the Council's draft Treasury Management Strategy Statement for 2022/23 in accordance with the CIPFA Code of Practice on Treasury Management. The Investment Strategy and the Minimum Revenue Provision Strategy for 2022/23 were incorporated as part of the Statement, as were the Prudential Indicators as required within the Prudential Code for Capital Finance in Local Authorities.
The report had been considered by the Audit Committee on 10 December 2021 and would be considered by the Business and Transformation Scrutiny Panel on 6 January 2022.
The Finance, Governance and Resources Portfolio Holder moved the recommendation set out within the report and the Leader seconded the recommendation.
Summary of options rejected None
DECISION
That the Executive noted the draft Treasury Management Strategy Statement for 2022/23, which incorporated the Investment Strategy and the Minimum Revenue Provision (MRP) Strategy, together with the Prudential Indicators for 2022/23 as set out in Appendix A and the Treasury Management Policy Statement as set out at Appendix D to Report RD.53/21; and sought comments from the Business and Transformation Scrutiny Panel in January 2022.
Reasons for Decision
To ensure the Council’s investments are in line with the appropriate policies including the Treasury Management Strategy Statement
Pursuant to Minutes EX.129/21, EX.130/21, EX.131/21 and EX.132/21, the Executive will consider feedback from Scrutiny Panels on the Charges Reviews and make decisions on the level of charges to be applied as not yet resolved for Community Services; Economic Development; Governance and Regulatory Services; and Licensing. (Copy Scrutiny Panel Minute Excerpts herewith)
Executive Members are asked to refer to the Charges Review Reports contained within the Budget Book circulated on 12 November 2021 (CS.37/21; ED.39/21;GD.55/21 and GD.82/21)
Background Papers – various financial reports being considered as part of the Budget process are available on the Council’s website – https://carlisle.cmis.uk.com/
(Key Decision KD.10/21)
Portfolio Cross-cutting
Relevant Scrutiny Panel Health and Wellbeing; Economic Growth; Business and Transformation
Pursuant to Minutes EX.129/21, EX.130/21, EX.131/21 and EX.132/21, further consideration was given to the Charges Reviews in respect of charges falling within the responsibility of the Community Services; Economic Development; Governance and Regulatory Services Directorates; and the Licensing Section.
Extracts from the Minutes of the meetings of the Health and Wellbeing Scrutiny Panel on 25 November 2021 (HWSP.79/21); Economic Growth Scrutiny Panel on 2 December 2021 (EGSP.74/21); and Business and Transformation Scrutiny Panel on 7 December 2021 (BTSP.90/21) in respect of the proposed charges were submitted. The Economic Growth Scrutiny Panel had recommended that the Car Parking charges be frozen for the first hour in all City Council car parks.
Executive Members were asked to refer to the Charges Review Reports contained within the Budget Book.
The Finance, Governance and Resources Portfolio Holder moved and the Leader seconded the recommendation.
Summary of options rejected a number of alternative charges as detailed in the above reports
1. That the fees and charges for 2022/23 relating to those services falling within the responsibility of the Community Services Directorate (CS.37/21), including the proposal to freeze the first hour of car parking charges for Council owned car parks, be approved with effect from 1 April 2022. 2. That the fees and charges for 2022/23 relating to those services falling within the responsibility of the Economic Development Directorate (ED.39/21) be approved with effect from 1 April 2022. 3. That the fees and charges for 2022/23 relating to the areas falling within the responsibility of the Governance and Regulatory Services Directorate (GD.55/21) be approved with effect from 1 April 2022. 4.That the Executive noted the Licensing Charges which had been approved by the Regulatory Panel on 1 December 2021; and approved the fees under the Scrap Metal Dealers Act 2013 with effect from 1 April 2022. (GD.82/21)
Reasons for Decision The proposed charges and options reflected the Corporate Charging Policy as set out in the Medium Term Financial Plan, whilst attempting to recognise service pressures and trends.
The Finance, Governance and Resources Portfolio Holder reported that the Executive was issuing their 2022/23 Budget Proposals for consultation, copies of which were circulated.
The Executive had taken into consideration the recommendations of the three Scrutiny Panels and had included, for consultation, the recommendation to freeze the City Council portion of the Council Tax for 2022/23 and the recommendation to freeze the first hour of car parking charges in City Council car parks.
Over the next four weeks, the Executive would be consulting on its budget proposals with businesses, trade union representatives and its residents. The deadline for comments was 9.00 am on 18 January 2022. The Executive would respond to consultees’ feedback at its meeting on 19 January 2022.
The Finance, Governance and Resources Portfolio Holder concluded by moving the recommendation that the Executive’s draft Budget proposals be agreed and circulated for consultation; the Leader seconded the recommendation.
Summary of options rejected A number of options which had been considered as part of the Council’s 2022/23 budget deliberations as identified in various reports
That the Executive's draft Budget proposals, as circulated at the meeting and appended to these Minutes as Appendix A, be agreed and circulated for consultation.
To produce the draft Budget proposals for consultation purposes.
(Key Decision – KD.19/21)
The Corporate Director of Governance and Regulatory Services to submit the Statement of Gambling Policy 2022 – 2025 for approval. The Licensing Committee considered the matter on 1 December 2021. (Copy Report GD.86/21 and Minute Excerpt herewith)
Background Papers – are available on the following websites https://www.gamblingcommission.gov.uk/print/guidance-to-licensing-authorities https://www.legislation.gov.uk/ukpga/2005/19/contents
(Key Decision - KD.19/21)
**(In accordance with Paragraph 15(i) of the Overview and Scrutiny Procedure Rules, the Mayor had agreed that call-in procedures should not be applied to this item) Portfolio Finance, Governance and Resources
The Finance, Governance and Resources Portfolio Holder reported (GD.86/21) that Section 349 of the Gambling Act 2005 required all licensing authorities to prepare and publish a Statement of Principles that they proposed to apply in exercising their functions under the Act during the three year period to which the policy applied.
The Finance, Governance and Resources Portfolio Holder advised that the Licensing Committee had considered the response to the consultation and noted that no amendments had been made to the Policy (Minute Excerpt LC.34/21 referred).
The Chair of the Licensing Committee was in attendance. In addressing the Executive, the Chair stated that the Gambling Act 2005 came into effect in 2007 and the Licensing Authority must review, consult and then publish its policy statement every 3 years.
The Policy covered the premises and activities that the authority had responsibility for and how applications were considered, monitoring and enforcement was undertaken and also included a Local Area Profile where gambling premises were mapped out to look at potential clusters and locations in relation to various properties, such as local hostels, community centres, schools and colleges
The Chair stated that the Licensing Committee agreed the reviewed Policy to be consulted upon at their meeting on 18th August 2021. As there had been a limited number of changes to both regulations issued by the Secretary of State and guidance issued by the Gambling Commission in the intervening 3 year period, there had been no substantial changes to the Policy. The Policy was consulted upon until 8th October 2021 and no responses had been received. The Policy was circulated widely and publicised on the council’s website and social media sites.
The Licensing Committee approved the draft policy to be forwarded to the Executive on 1st December 2021 in order for the Executive to forward to Council to adopt the statement on 4th January 2022.
The Finance, Governance and Resources Portfolio Holder moved that the Policy be referred to Council for approval and the Leader seconded the recommendation.
Summary of Options Rejected Not to refer the Policy for approval.
That the Executive: 1. Had considered the responses to the consultation (GD.86/21) 2. Had given consideration to the amended draft Gambling Policy with a view to adoption by Council on 4 January 2022. Reasons for Decision To meet the requirements of the Gambling Act 2005.
(Key Decision KD.20/21)
The Corporate Director of Governance and Regulatory Services to submit a report asking for the approval of a revision of the Housing Renewal Assistance Policy, to revise the discretionary housing assistance funding available through the Disabled Facility Grant. The matter was considered by the Health and Wellbeing Scrutiny Panel at their meeting on 25 November 2021. (Copy Report GD.70/21 herewith and Minute Excerpt herewith)
The Communities, Health and Wellbeing Portfolio Holder highlighted that the recommendation would allow specific DFG funding to be used for grants to assist the elderly, disabled or other vulnerable groups to live independently and to improve their living conditions and well-being. Specifically, minor works that supported ill health prevention, promote independence and delay transfer into care. She clarified that the Disabled Facilities Grants were not means tested. The Health and Wellbeing Scrutiny Panel had considered the report on 25 November 2021 (HWSP.83/21 referred) and received the report. The Chair of the Health and Wellbeing Scrutiny Panel had been invited to attend to speak but was not in attendance today. The Communities Health and Wellbeing Portfolio Holder moved the recommendations and the Economy, Enterprise and Housing Portfolio Holder seconded them.
(Key Decision KD.24/21)
The Deputy Chief Executive to submit an update of the Tullie House Museum and Art Gallery Trust 2021/2022 – 2030/31 Business Plan for the 2022/23 financial year. The matter was considered by the Health and Wellbeing Scrutiny Panel at their meeting on 25 November 2021. (Copy Report CS.46/21 and Minute Excerpt herewith)
**(In accordance with Paragraph 15(i) of the Overview and Scrutiny Procedure Rules, the Mayor had agreed that call-in procedures should not be applied to this item)
Relevant Scrutiny Panel Health and Wellbeing
The Culture, Leisure and Heritage Portfolio Holder presented report CS.46/21, the purpose of which was to introduce and allow consideration of the Tullie House Museum and Art Gallery Trust 2022/23 Business Plan in order that the Council may, in due course, agree core funding for the Trust. That was in line with Section 5 of the Partnership Agreement between the Council and Tullie House Trust, which stated that the Business Plan submitted by the Trust should be used as the basis for agreeing
(Key Decision KD.26/21) The Corporate Director of Economic Development to submit a report regarding the governance arrangements for the Future High Street Programme Governance and requests approval to take forward two of the projects through a grant funding agreement with Cumbria County Council to manage and deliver the projects. (Copy Report ED.33/21 herewith)
(Key Decision KD.20/21) Portfolio Leader / Economy, Enterprise and Housing Relevant Scrutiny Panel Economic Growth Subject Matter The Economy, Enterprise and Housing Portfolio Holder submitted report ED.33/21 outlining the governance arrangements in place for the Future High Street Fund (FHSF) Programme. The report requested approval to take forward two of the projects, pedestrian enhancement of Devonshire Street and reimagining Greenmarket / Market Square as Carlisle's event space, through a grant funding agreement with Cumbria County Council to manage and deliver the projects. Carlisle City Council was the accountable body for the FHSF Programme delivery and as such the Council would make the ultimate decisions in delivery of the programme, however, consideration of the views of the Cumbria County Council’s Local Area Committee was required in reference to the two highways related projects. This ensured that the FHSF programme was ultimately accountable to the Council’s elected members, who would monitor spending, delivery progress and support in the management of any risks through the Council’s governance structure.
The governance structure for the FHSF Programme as set out in the business case was outlined in section 2.1.2 of the report. Although Carlisle City Council was the lead Council, Cumbria County Council would manage the delivery of the two projects as Highways Authority. A grant funding agreement had been drafted and outlined the responsibilities of both authorities with respect to the use of the grant for the delivery of two projects. The agreement outlined the trigger points for the drawdown of the grant funding to the County Council. The Economy, Enterprise and Housing Portfolio Holder thanked the Economic Development team for their excellent work on the projects. The Economy, Enterprise and Housing Portfolio Holder moved the recommendations as set out in the report and the Communities, Health and Wellbeing Portfolio Holder seconded them. Summary of options rejected Not to continue with the Future High Street Fund projects DECISION That the Executive:
(Key Decision)
(The Leader agreed to this Key Decision item being considered at this meeting, although not in the Notice of Executive Key Decisions) The Deputy Chief Executive to submit a report seeking approval for the release of the One Public Estate (OPE) sustainable grant funds in the manner set out in the report and the appended draft grant funding agreement. (Copy Report CS.48/21 herewith)
The One Public Estate (OPE) programme was a partnership between the Office of Government Property (OGP) in the Cabinet Office, the Local Government Association (LGA) and the Department for Levelling Up, Housing and Communities (DLUHC). The collective aim of the partnership was to bring public sector bodies together; to create better places by using public assets more efficiently, creating service and financial benefits for partners; and releasing public land for housing and development. During late 2019 the OPE Cumbria Partnership applied for further funding under ninth round of the programme. This application was approved and an award of £360,000 was made to the partnership to assist with the delivery of the programme. This award was also accepted via an Officer Decision Notice in February 2021. The allocation and grant arrangements for this project were proposed to be via the OPE Programme Board with Carlisle City Council acting as the accountable body. The scheme required the release of funds from the £300,000 partnership funding currently being held by Carlisle City Council. To facilitate the release and protect the Council from risks associated with the repayment of the sustainable grant a Grant Funding Agreement had been drafted to ensure good governance and bind the receiving body (Morecambe Bay NHS Foundation Trust) to repaying this grant before the City Council was required to repay this to OPE.
The Finance, Governance and Resources Portfolio Holder moved, and the Leader seconded, the recommendations. Summary of options rejected That Carlisle City Council not act as Lead Body on the Cumbria OPE 8 sustainable funding project. DECISION That the Executive 1. Give authority for the Council to act as Lead Body (equivalent to Accountable Body) on the Cumbria OPE 8 sustainable grant funding project to deliver NHS services within local authority owned leisure facilities. 2. Reviewed the proposed arrangements set out in report CS.48/21 and the appended grant funding agreement and approved the release of OPE funds to enable timely delivery of the project objectives. 3. Delegated the approval of future grant funds and repayment arrangements under this OPE round to the Deputy Chief Executive in consultation with the Portfolio Holder for Finance, Governance and Resources. Reasons for Decision The OPE programme represented an important step forward in determining the future use of public sector assets and property. This OPE grant provides a key opportunity to develop new joint service arrangements that would support the county Public Health Strategy and more efficient property use arrangements. The risks associated with the allocation of these grants would be mitigated by the deployment of a Grant Funding Agreement to govern the payment and repayment of the funds.
(Non Key Decision)
The Notice of Executive Key Decisions, published on 19 November 2021, is submitted for information. (Copy Notice herewith)
A Schedule detailing decisions taken by Officers under delegated powers is attached for information.(Copy Schedule herewith) Background Papers – as detailed within the Schedule
The Minutes of the meeting of the Joint Management Team held on 22 November 2021 are submitted for information. (Copy Minutes herewith)
The Corporate Director of Governance and Regulatory Services to submit a report on the dates and times of meetings for the 2022/23 Municipal Year prior to submission to Council. (Copy Report GD.89/21 herewith)
Background Papers – Carlisle City Council’s Constitution; Report GD.38/21 (Dates and Times of Meetings 2021/22 from Council on 24 May 2021) are available on the Council’s website - http://cmis.carlisle.gov.uk/cmis/
The Policy and Communications Manager to submit the Quarter 2 2021/22 performance against the current Service Standards and a summary of the Carlisle Plan 2021-23 actions as defined in the Plan. Performance against the 2021/22 Key Performance Indicators is also included. (Copy Report PC.41/21 herewith / Minute Excerpts herewith / to follow)
(Non Key Decision) Portfolio Finance, Governance, Resources Relevant Scrutiny Panel
Health and Wellbeing; Economic Growth; Business and Transformation Subject Matter The Finance. Governance and Resources Portfolio Holder submitted report PC.41/21 containing the Quarter 2 performance against the current Service Standards, together with an update on the delivery of the Carlisle Plan 2021-23 actions as defined in the Plan. Performance against the 2021/22 Key Performance Indicators was also included.
Summary of options rejected none
(Key Decision KD.23/21)
The report is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972, as the report contains exempt information relating to the financial or business affairs of any particular person (including the authority holding that information)
The Corporate Director of Economic Development to submit the proposals for the redevelopment of the Citadels and approve the land assembly activity required by the Council to enable the delivery of scheme. (Copy Report ED.41/21 herewith)
Councillor J Mallinson (Leader's Portfolio)
Councillor G Ellis (Deputy Leader, and Finance, Governance and Resources Portfolio Holder)
Councillor S Higgs (Culture, Heritage and Leisure Portfolio Holder)
Councillor Mrs E Mallinson (Communities, Health and Wellbeing Portfolio Holder)
Enquiries, requests for reports, background papers etc to: committeeservices@carlisle.gov.uk
Also Present: Councillor Mrs Bowman, Chair of the Licensing Committee Officers: Deputy Chief Executive Corporate Director of Governance and Regulatory Services Corporate Director of Finance and Resources Corporate Director Economic Development