Agenda and minutes

The Chairman will read the following announcement:

“I would like to remind everyone present that this meeting will be recorded for subsequent repeated viewing on the Internet and copies of the recording could be made available for those that request it.

By being present at this meeting it is likely that the recording cameras will capture your image and this will result in the possibility that your image will become part of the broadcast.

You should be aware that this may infringe your human and data protection rights. If you have any concerns please speak to the webcasting officer.

Please could I also remind members to put on their microphones before speaking by pressing the button on the microphone unit”

The Chairman made a short address to remind all present that the meeting would be broadcast on the Internet, and that the Council had adopted a protocol for the webcasting of its meetings.

To confirm the minutes of the last meeting of the Cabinet Committee held on 8 December 2008 (previously circulated).

RESOLVED:

That the minutes of the meeting held on 8 December 2008 be taken as read and signed by the Chairman as a correct record.

(Assistant to the Chief Executive) To declare interests in any item on this agenda.

There were no declarations of interest pursuant to the Council’s Code of Member Conduct.

Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 25 of the Council Procedure Rules contained in the Constitution require that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

In accordance with Operational Standing Order 6 (non-executive bodies), any item raised by a non-member shall require the support of a member of the Committee concerned and the Chairman of that Committee. Two weeks’ notice of non-urgent items is required.

It was noted that there was no other urgent business for consideration by the Cabinet Committee.

(Director of Finance & ICT) To consider the attached report (FCC-022-2008/09).

The Director of Finance & ICT presented a report concerning the updated Corporate Risk Register. The Corporate Risk Register had been considered by both the Risk Management Group and Corporate Governance Group, and it had been proposed to increase the scoring of two existing risks. With the current state of the economy and the ongoing trading difficulties being experienced by businesses, it was felt that the score for the risk on Key Contracts (risk 20) should be increased to B2 (High Likelihood, Critical Impact). The average number of days lost to sickness absence had increased during the first half of 2008/09 and it was anticipated that the figures for the third quarter would show a further deterioration. Hence, it had been proposed to increase the score of this risk (risk 15) to C3 (Significant Likelihood, Marginal Impact).

The Chairman requested that a further risk relating to the expected loss of income from the Council’s Investments, Local Land Charges and Building Control be considered by Officers and reported back to the Cabinet Committee at its next scheduled meeting on 16 March 2009 for addition to the Register.

RECOMMENDED:

(1)        That the score for the risk relating to Key Contracts (risk 20) be increased from C2 (Significant Likelihood, Critical Impact) to B2 (High Likelihood, Critical Impact);

(2)        That the score for the risk relating to Sickness Absence (risk 15) be increased from E3 (Very Low Likelihood, Marginal Impact) to C3 (Significant Likelihood, Marginal Impact);

(3)        That a further new risk be identified in relation to the potential loss of income from the Council’s Investments, Building Control and Local Land Charges, to be considered at the next meeting of the Cabinet Committee;

(4)        That the current tolerance line on the risk matrix be considered satisfactory and not be amended; and

(5)        That, incorporating the above agreed changes, the amended Corporate Risk Register be approved.

(Director of Finance & ICT) To consider the attached report (FCC-023-2008/09).

The Director of Finance & ICT presented a report regarding the review of the Risk Management Strategy and Policy Statement, and the Terms of Reference for the Risk Management Group. These were reviewed on an annual basis by the Cabinet Committee before being recommended to the Cabinet for approval. It was reported that there had been no significant amendments to the Documents on this occasion.

RECOMMENDED:

(1)        That the updated Risk Management Strategy and Policy Statement be adopted; and

(2)        That the updated Terms of Reference for the Risk Management Group be noted.

(Director of Finance & ICT) To consider the attached report (FCC-024-2008/09).

The Finance & Performance Management Portfolio Holder introduced a report about the proposed Council Budgets for 2009/10, before inviting the Director of Finance & ICT to provide a summary for the benefit of the Cabinet Committee.

The Director of Finance & ICT stated that the largest Continuing Service Budget (CSB) growth item for next year was £217,000 for the for the expected reduction in investment income, following the reduction in the Bank of England base rate from 5% six months ago to its current level of 1.5%. Other significant growth items within the CSB included an allowance of £175,000 for the reduction in income from Local Land Charges and £150,000 for the recently agreed changes to the Waste Management service regarding the collection of kitchen and green waste. Further CSB growth was expected for the extension of the contract for the management of Epping Sports Centre and the implementation of the recommendations of the Customer Services Transformation Scrutiny Panel. The current CSB total of £18.074million was £174,000 above the budget guideline target, however this was partly offset by the level of the General Fund Reserve being higher than anticipated.

In respect of the District Development Fund (DDF), the Director of Finance & ICT reported that the largest items of expenditure were £432,000 for the development of the Local Development Framework, £215,000 for the revised Waste Management service, and £148,000 for remedial work to watercourses. The current DDF programme of £1.181million had exceeded the budget guideline by £481,000, however it was felt that, as the outturn would be unlikely to exceed £1million, this excess was not considered significant.

The Director of Finance & ICT reported that the proposed Council Tax increase of 2.5% was in line with the revised budget guideline agreed by the Cabinet Committee at its last meeting. Additionally, with current projections indicating that the Council’s reserves would be £6.475million by 2012/13, or approximately 36% of net budget requirement, the Council’s target of not allowing General Fund balances to fall below 25% of net budget requirement would also be met. As previously reported, the Formula Grant settlement for the three-year period 2008/09 to 2010/11 had resulted in small increases for the Council of 1%, 0.5% and 0.5% respectively. The Medium Term Strategy for the next four years indicated deficit budgets for the next three years before breaking even, as well as CSB savings of £300,000 per annum in each of the three years from 2010/11.

The Cabinet Committee’s attention was drawn to some of the significant risks and uncertainties for 2009/10. The effects of the current economic depression would impact not only upon the Council’s revenue streams, but could also lead to additional demands being placed on services such as Benefits and Housing. The recent arbitration of the pay award dispute between the Employers and Trades Unions was also an area of concern, along with the pending clarification of whether the Department of Communities and Local Government would provide a capitalisation direction to cover the pension deficit payments for 2008/09 and subsequent years.

The  ...  view the full minutes text for item 47.