BABERGH DISTRICT COUNCIL
OVERVIEW AND SCRUTINY (STEWARDSHIP) COMMITTEE
MINUTES OF A MEETING OF THE OVERVIEW AND SCRUTINY (STEWARDSHIP) COMMITTEE HELD IN THE COUNCIL CHAMBER, COUNCIL OFFICES, CORKS LANE, HADLEIGH ON TUESDAY, 25 JANUARY 2011
PRESENT: Mr D M Busby – Chairman
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Mr J C Brand
Mr J R B Cave
Mr P J Holbrook |
Mr B Riley
Mr C A Roberts
Mr D M Walton |
Mr D G Grutchfield and Mr H N Todd were unable to be present.
Quick links ...
51 Declaration of Interests
52 Minutes
53 Petitions
54 Questions from Members
55 External Inspection and Audit Reports
56 Financial Strategy and 2011/12 Draft Budget Proposals
57 Treasury Management Strategy 2011/12
58 Pension Fund
59 Work Plan
Mr P J Holbrook declared a personal interest in Paper K166(Minute No.56) in his capacity as a representative on the Dedham Vale AONB Joint Advisory Committee, but indicated that his interest was such that he was able to speak and vote on the matter concerned.
Mr B Riley declared a personal interest in Paper K166 (Minute No.56) in his capacity as a representative on the Hadleigh High School Dual Use Sports Centre Management Committee, but indicated that his interest was such that he was able to speak and vote on the matter concerned.
RESOLVED
That the Minutes of the meeting held on 16 November 2010 be confirmed and signed as a correct record.
None received.
None received.
The external Auditors (PKF) Annual Audit Letter for 2009/10 (Paper K188) and the Annual Audit Plan for 2010/11 (Paper K189) were submitted for consideration by the Committee.
Ms Zoe Thompson and Mr C Donovan from the external Auditors were in attendance at the meeting to present the reports and to answer questions from Members.
RESOLVED
That the external Auditor’s Annual Audit Letter for 2009/10 (Paper K188) and the Annual Audit Plan for 2010/11 (Paper K189) be noted.
The Director of Finance submitted a report (Paper K166), which was considered by Strategy Committee on 13 January 2011, and Paper K193 the detailed draft Budget supporting Paper Paper K166 which was still in draft form. Further updates to Paper K193 were provided by the Director of Finance at the meeting.
The Director of Finance and the Deputy Chief Executive then answered a number of detailed questions from Members on various issues relating to the budget proposals.
During consideration of this item a number of suggestions as to how these reports should be presented in future were suggested. The Director of Finance undertook to incorporate these suggestions into future reports when they are submitted for consideration by Committees. The Committee suggested that the Strategic and Financial Planning Task Group should focus on the strategic direction and future priorities in their future consideration of the Policy and Budget Framework.
RECOMMENDED TO STRATEGY COMMITTEE
That subject to further clarification and investigations being undertaken by the Director of Finance and appropriate amendments relating to these being incorporated, the draft Budget for 2011/12 set out in Paper K166 and K193 be approved.
The Director of Finance submitted a report (Paper K190) outlining the proposed Treasury Management Strategy, including the Annual Investment Strategy for managing surplus funds and borrowing strategy for the financial year 2011/12.
During the consideration of this item the following changes to Paper K190 were agreed:
Section 5.11 :
A new section 5.12 was added as follows:-
5.12 No investments will be made with Santander UK plc, even though they currently meet the Council’s high credit rating criteria, on the basis that Members and the Director of Finance believe that it is not appropriate at the current time to lend to any banks with connections to countries that are experiencing severe economic difficulties. This will be kept under review and the position will only be reconsidered, with member approval, should that position change.
The remaining paragraphs to be re-numbered.
In addition the following amendments to the Appendices to Paper K190 were agreed:-
Appendix 1, the table at 1.4 has been updated through to March 2014.
Appendix 2, the references in sections 21, 30 and 33 have been amended.
Appendix 4, the Westpac Banking Corp has been deleted from the Counterparty list.
RECOMMENDED TO STRATEGY COMMITTEE AND COUNCIL
(1) That the key factors and information on treasury management activities set out in the amended Appendix 1 of Paper K190 be noted.
(2) That the proposed Treasury Management Strategy for 2011/12, including the Policy Statement and the Annual Investment Strategy as set out in the amended Appendix 2 of Paper K190 be approved.
(3) That the Prudential Indicators and Limits 2011/12 to 2013/14 set out in Appendix 3 of Paper K190 be approved.
(4) That, with regards to the potential additional borrowing of £75m in relation to the proposed new Council Housing reforms, that this be subject to the Government’s emerging proposals and that further details on this be reported to Members in due course.
The Director of Finance submitted a report (Paper K191) informing Members on the outcome of the Pension Fund valuation for 31 March 2010 and the proposed level of contributions to the Pension Fund from the Council for the next 3 years.
It was noted in paragraph 6.6 of Paper K191 that although Option 2 would result in a reduced contribution, Option 3 was favoured and reflected in the Budget as it spreads the increases fairly evenly over the 3 years. This was supported by the Strategic and Financial Planning Task Group, as it was affordable within the financial strategy and relieve pressure slightly for 2012/13.
The impact of the reduced numbers of staff on the pension fund was to be addressed by appropriate officers.
RESOLVED
That the outcome of the Pension Fund valuation for 31 March 2010 and the proposed level of contributions to the Pension Fund from the Council for the next 3 years be noted.
The Director of Corporate Services submitted a report (Paper K192) providing details of the Committee’s anticipated work for 2010/11 including any items that might be the subject of call-in procedures.
RESOLVED
That the Work Plan submitted as Paper K192 be noted.
The Committee adjourned for refreshments between 11.20 a.m. and 11.42 a.m.
The business of the meeting was concluded at 1.25 p.m.
Chairman
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