Agenda, decisions and minutes

Councillor Young had sent his apologies for absence and Councillor New was on his way from another meeting.

There were no declarations of members' interests.

A copy of the record of the previous decisions taken at Cabinet on 6 November 2014 are attached.

RECOMMENDED that the record of decisions of the Cabinet meeting held on 6 November 2014 are agreed as a correct record and signed by the Chair accordingly.

DECISION: that the record of decisions of the Cabinet meeting held on 6 November 2014 be agreed as a correct record to be signed by the Leader.

The purpose of the report for the Strategic Director for Regeneration is to provide an update on the outcome of the Feasibility Study undertaken into the Building Control Service entering a partnership with the Fareham and Gosport Building Control Partnership.

RECOMMENDED:

(1)  That PCC explore entering into a new partnership, working within the Fareham and Gosport Partnership as the future service delivery model on the terms outlined in this report.

(2)  That implementation costs and ongoing revenue costs are met from within the existing City Development Service cash limit.

(3)  That the final decision is delegated to the Strategic Director for Regeneration in consultation with the Cabinet member for Planning, Regeneration and Economic Development.

(1)  That PCC explore entering into a new partnership, working within the Fareham and Gosport Partnership as the future service delivery model on the terms outlined in the report.

(2)  That implementation costs and ongoing revenue costs are met from within the existing City Development Service cash limit.

(3)  The final decision was delegated to the Strategic Director for Regeneration in consultation with the Cabinet Member for Planning, Regeneration and Economic Development.

The Cabinet Members were supportive of this move to a more efficient provision of service that would also attract more income, and which would give more professional development of staff by sharing resources with neighbouring authorities.

DECISIONS:

(1)  That PCC explore entering into a new partnership, working within the Fareham and Gosport Partnership as the future service delivery model on the terms outlined in the report.

(2)  That implementation costs and ongoing revenue costs are met from within the existing City Development Service cash limit.

(3)  The final decision was delegated to the Strategic Director for Regeneration in consultation with the Cabinet Member for Planning, Regeneration and Economic Development.

The purpose of this report is to update members on the current Revenue Budget position of the Council as at the end of the second quarter for 2014/15 in accordance with the proposals set out in the “Portsmouth City Council - Council Tax Setting 2014/15 to 2017/18 & Medium Term Budget Forecast 2014/15 to 2017/18” report approved by the City Council on the 11th February 2014.  Also to take the opportunity to report on the key performance measures of the Council and highlight any relationships between financial performance and service performance that may indicate any potential or emerging matters of concern in relation to either.

RECOMMENDED that:

(i) The contents of this report be noted, in particular the overall forecast

overspend of £1,501,500 representing a variance of 0.9% against the City

Council Budget (as adjusted) of £175,030,000.

(ii) To enable the Children's & Education Portfolio to address the deficit against the Council approved cash limit, the Children's Social Care & Safeguarding savings proposals for 2015/16 totalling £1,917,000 outlined in Table 1 be noted.

(iii) To remedy the historic underlying budget deficit relating to Parking within the Traffic & Transportation Portfolio, it be noted that an annual appropriation from the Parking Reserve in the amount of £400,000 per annum has been made.

(iv) That the Council Leader works with the relevant portfolio holder to consider measures necessary to significantly reduce or eliminate the adverse budget position presently being forecast within Children & Education and Health & Social Care Portfolios and any necessary decisions presented to a future meeting of the relevant portfolio.

RECOMMENDED to Council that:

(i) The contents of this report be noted, in particular the overall forecast

overspend of £1,501,500 representing a variance of 0.9% against the City

Council Budget (as adjusted) of £175,030,000.

(ii) To enable the Children's & Education Portfolio to address the deficit against the Council approved cash limit, the Children's Social Care & Safeguarding savings proposals for 2015/16 totalling £1,917,000 outlined in Table 1 be noted.

(iii) To remedy the historic underlying budget deficit relating to Parking within the Traffic & Transportation Portfolio, it be noted that an annual appropriation from the Parking Reserve in the amount of £400,000 per annum has been made.

(iv) That the Council Leader works with the relevant portfolio holder to consider measures necessary to significantly reduce or eliminate the adverse budget position presently being forecast within Children & Education and Health & Social Care Portfolios and any necessary decisions presented to a future meeting of the relevant portfolio.

(as a referral to Council on 20 January 2015 this is not subject to call-in)

The Leader congratulated the Section 151 Officer and staff involved in the successful attraction of the non ring-fenced grants totalling £566,200 in 2014/15.

RECOMMENDED to Council that:

(i) The contents of this report be noted, in particular the overall forecast

overspend of £1,501,500 representing a variance of 0.9% against the City

Council Budget (as adjusted) of £175,030,000.

(ii) To enable the Children's & Education Portfolio to address the deficit against the Council approved cash limit, the Children's Social Care & Safeguarding savings proposals for 2015/16 totalling £1,917,000 outlined in Table 1 be noted.

(iii) To remedy the historic underlying budget deficit relating to Parking within the Traffic & Transportation Portfolio, it be noted that an annual appropriation from the Parking Reserve in the amount of £400,000 per annum has been made.

(iv) That the Council Leader works with the relevant portfolio holder to consider measures necessary to significantly reduce or eliminate the adverse budget position presently being forecast within Children & Education and Health & Social Care Portfolios and any necessary decisions presented to a future meeting of the relevant portfolio.

(This would be considered by Council on 20 January 2015)

The purpose of the report by the Head of Financial Services and Section 151 Officer, which is also being considered by Council on 9 December 2014 is to describe the challenging financial climate facing the City Council for the three years 2015/16 to 2017/18 and the likely implications for Council services to businesses and residents.   It describes in, overall terms, the Medium Term Financial Strategy that the Council is following in order to achieve its stated goal as follows:

“In year” expenditure matches “in year” income over the medium term whilst maintaining our most important and valuable services

The report sets out the need to find £37m of savings over the next three years with a minimum of £12.5m (or £13.1m assuming a Council Tax freeze) for 2015/16.  It recommends the level of savings to made across Portfolio's and other activities in 2015/16 consistent with both the outcomes of the recent budget consultation exercise and the overall financial strategy.  The report then proceeds to describe the likely savings and implications associated with the overall Portfolio savings levels proposed.

Finally, the report stresses the important contribution that the Capital Programme can make to the Council's overall Medium Term Financial Strategy.  This is particularly relevant to regeneration schemes and the effect that has on overall prosperity (with the consequent reduced need for Council Services) and the generation of additional business rates plus the opportunities for savings from Invest to Save schemes.  In that context, a recommendation is made to supplement the Capital Resources available to the Council from the improvement in the Council's overall financial position that has arisen from the financial results of the previous year. 

This report is being brought at this time to provide greater opportunity for any necessary consultation, notice and other lead-in times to take place prior to implementation in order that full year savings can be made.  Should approval of the savings be considered at a later date, a greater number or deeper savings will be required in order to compensate for any delay in implementation.

The recommendations as set out in Paragraphs 3.1 (a)-(i) and 3.2 (a)-(j) of the report are referred to Council of 9 December for decision and are not therefore subject to call-in.

(A commitment was given by the Administration to work with the current providers to deliver an alternative, not-for-profit service for the existing users of Dial-a-Ride)

Deputations were made by:

i)             Tracey Jones, of Pete's Airlink, as manager of the Dial-a-ride scheme which had between 900-1000 customers a month, 80% of whom were over the age of 65, whose mobility and disability needs were wide-ranging.  She explained the difference between this service and a standard taxi service, as they knew their clients and their needs and covered areas not well-served by bus routes. She was grateful for the meeting held with some of the cabinet members that morning which had been constructive in looking at a way forward so that the service would not be lost.

ii)            Karen Silman, as a user of Dial-a-ride and MS sufferer explained the value of the existing service which took her to receive physiotherapy.   The drivers gave extra help and were knowledgeable in assisting wheelchair users who did not always have access to buses, depending on routes and availability of the dedicated disabled space on board.  Dial-a-ride gave her independence and safety, and she found them the most professional service providers and felt it was important to keep this service when Portsmouth was aspiring to be a Dementia Friendly City, as the drivers knew the history of their clients.

iii)           Steve Bonner, representing The Portsmouth Pensioners Association spoke in opposition to the cuts in Adult Social Care, concentrating on the removal of podiatry care and free swimming for the over 60s, both of which currently helped to promote health and mobility, and this group would be least able to pay for these services.  He felt these would be false economies which could lead to a greater call on critical care later on.  Portsmouth Pensioners also regretted the removal of their £2500 grant which was used for their Pompey Pensioner magazine, 25% of which promoted PCC services and events and which was important in their campaigns for their members, so hoped part of the £500,000 being made available for voluntary organisations (within the Transition Fund) could be used to help them develop the magazine and source advertising opportunities.

A written deputation had also been submitted by Mrs Cross of Farlington as a user and supporter of the Dial-a-Ride scheme, which was read out by the Leader.

The Leader explained that the initial savings proposals had been made available 4 weeks in advance gauge the strength of public feeling and to explore the alternatives with experts.  Therefore a meeting had been held with Tracey Jones as the manager of the Dial-a-ride service to work on an alternative not for profit model to help the service continue, with PCC providing advice on this.  

In response to the concerns of Portsmouth Pensioners, the Leader felt that there is potential for them to raise income for their magazine from other sources and offered the assistance of PCC's income generation expert.  Whilst the value of swimming was acknowledged, many of those participating in the 60+ sessions would be able to afford to continue.

Councillor Ellcome, as Cabinet Member for Traffic & Transportation, was pleased that discussions were taking place for a continuity of a Dial-a-ride type service to ensure continuity for the users.  Councillor Wemyss also supported the continuity of this service which was valued by many residents in Drayton & Farlington, and the Leader thanked Councillor Potter for his involvement for Paulsgrove users of the service, as well as Tracey and Keiran for meeting with her and Councillors Ellcome, Stubbs and Jonas to seek a way forward.

A commitment was given by the Administration to work with the current providers to deliver an alternative, not-for-profit service for the existing users of Dial-a-Ride.

RECOMMENDED to Council that:

(1)       That the following be approved:

(a)  That the Council's Budget for 2015/16 be prepared on the basis of a Council Tax freeze

(b)  The savings proposals for each Portfolio amounting, in total, to £13.1m for 2015/16, £13.1m for 2016/17 and £13.1m in 2017/18 as set out in Appendix A to enable appropriate consultation and notice periods to be given to affected parties

(c)  Given the capital investment needs of the City, the funding gap between need and available resources and the importance of the Capital programme in delivering the Medium Term Financial Strategy, that £3.0m of the overall £5.2m financial improvement in the City Council's financial position be transferred to the Revenue Reserve for Capital in order to supplement the capital resources available for new Capital Investment (see paragraphs 8.11 and 8.12)

(d)  Given the current uncommitted balance on the MTRS Reserve of £2.1m is very modest in the context of the £37m of savings that the Council is required to make over the next 3 years and that it is also the Council's primary vehicle for providing funding for redundancies and Spend to Save initiatives, that the remaining £2.2m of the overall £5.2m financial improvement in the City Council's financial position be transferred to the Medium Term Resource Strategy Reserve (see paragraph 8.14)

(e)  That £500,000 be released from the MTRS Reserve to create a Voluntary Sector Capacity & Transition Fund to enable the voluntary sector to reconfigure their service or enhance their capacity / infrastructure in order to support / provide council services as set out in paragraph 10.16

(f)   In the event that the Voluntary Sector Capacity & Transition Fund is created, that the use of those funds be released on the same spend to save criteria adopted for other MTRS funds and that the allocation of these funds be delegated to the Head of Financial Services & S151 Officer in consultation with the Leader of the Council

(g)  To undertake the necessary business intervention work described in paragraphs 10.17 and 10.18 at the necessary scale and pace to deliver significant change and cost reduction, it is recommended that a Business Intervention Fund be created in the sum of £500,000 to be used flexibly across years and funded from the MTRS Reserve

(h)  In the event that the Business Intervention Fund is created, that the use of those funds be used both, independently of, and in synergy with, the Voluntary Sector Capacity & Transition Fund and that the allocation of these funds be delegated to the Head of Financial Services & S151 Officer in consultation with the Leader of the Council

(i)    That the funds released under recommendations (e) and (g) be used flexibly across the 2014/15 and future financial years and that the S151 Officer be given delegated authority to determine the annual allocations as necessary

(2)       That the Council note:

(a)  The Budget Savings Requirement for 2015/16 approved by the City Council and based on a Council Tax increase of 1.95% is £12.5m; based on a Council Tax freeze, that savings requirement increases to £13.1m

(b)  The key themes arising from the budget consultation

(c)  The indicative savings proposals set out in Appendix B which are provided for the purpose of demonstrating to the Council that the Portfolio savings as recommended in paragraph 3.1(b) above are robust and deliverable

(d)  The likely impact of savings as set out in Appendix B based on the scale of the Portfolio savings as recommended in paragraph 3.1(b)

(e)  That the responsibility of the City Council is to approve the overall Budget and the associated cash limits of its Portfolios and Committees; it is not the responsibility of the City Council to approve any individual savings within those Portfolios / Committees

(f)   That it is the responsibility of the individual Portfolio Holders (not the City Council) to approve the individual savings proposals and the Portfolio Holder can therefore, in response to any consultation, alter, amend or substitute any of the indicative savings proposal(s) set out in Appendix B with alternative proposal(s) amounting to the same value within their Portfolio

(g)  Managers will commence any necessary consultation process or notice process necessary to implement the approved Portfolio / Committee savings

(h)          That there is no general provision for Budget Pressures and that it is the responsibility of the Portfolio Holder to manage any Budget Pressures which arise from the overall resources available to the Portfolio (which includes their Portfolio Reserve)

(i)            In accordance with the approved financial framework, it is the responsibility of the Portfolio Holder, in consultation with the Head of Finance & S151 Officer, to release funds from the Portfolio Reserve in accordance with the provisions set out in paragraph 10.10

(j)                 The MTRS Reserve held to fund the upfront costs associated with Spend to Save Schemes, Invest to Save Schemes and redundancies holds a very modest uncommitted balance of £3.3m (see footnote 2 of the report, page 8) and will only be replenished from an approval to the transfer of any non-Portfolio underspends at year end into this reserve.