Agenda and minutes

Members and officers must declare any pecuniary or personalinterest in any business on the agenda. They should also make declarations at any stage such an interest becomes apparent during the meeting. Consideration should be given to leaving the meeting if the nature of the interest warrants it.  If in doubt please contact Democratic Services before the meeting.

47.1  Dr Walsh declared a personal interest in relation to the Medium Term Financial Strategy and Angel’s Nursery Barnham as a local Councillor for Arun District Council and Littlehampton Town Council.

47.2  Mr Cloake declared personal interest in relation to the Medium Term Financial Strategy and Total Performance Monitor items as his wife is employed as a Social Worker for the Council, and he and his wife are foster carers.

47.3  Mr Lea declared a personal interest in relation to the Medium Term Financial Strategy as a local Councillor for Mid Sussex District Council.

47.4  Mr Jupp declared a personal interest in relation to the Medium Term Financial Strategy as a local Councillor for Horsham District Council.

The Committee is asked to agree the Part I minutes of the meeting held on 9 July 2018 (cream paper).

48.1  Mr Lea commented in relation to the Quarter 4 Capital Programme Monitor and Annual Report item. Mr Lea had queried whether officers analysed data from all of the projects in order to decide which ones to highlight in the report, and the Cabinet Member for Finance and Resources confirmed this is the case. The Chairman commented that the minutes are intended to reflect the flavour of the debate rather than verbatim, and requested that Mr Lea’s comment be recorded here.

48.2  Resolved – That the Minutes of the Performance and Finance Select Committee held on 9 July be approved as a correct record and that they be signed by the Chairman.

The Committee is asked to note the response of the Cabinet Member for Finance and Resources to the recommendations made by the Committee at the meeting on 9 July 2018 concerning the Contracts Management Task and Finish Group.

49.1  The Committee received a response from the Cabinet Member for Finance and Resources regarding the Committee’s recommendations concerning the Contracts Management Task and Finish Group.

49.2  Resolved – That the Committee notes the response from the Cabinet Member for Finance and Resources.

A report by the Head of Communications and Engagement providing an update on the What Matters To You? survey 2018.

The Committee is asked to review the findings of the 2018 What Matters To You? survey and make comments to the Cabinet Member for Finance and Resources to consider as part of the 2019/2021 budget process.

50.1  The Committee considered a report by the Head of Communications and Engagement (copy appended to the signed minutes).

50.2  The Head of Communications and Engagement introduced the report, explained that the survey was undertaken every two years, and outlined key findings. It was noted that for the first time the District and Borough Councils were invited to input into the recent survey. The key priority for residents remains for West Sussex to be a strong, safe and sustainable place. Residents were surveyed on attitudes to local taxation and a medium level of increase was supported (i.e. 44% agreed with a rise of between 2.1 and 4.98%, whilst 31% agreed with a maximum 4.99% rise). It was noted that whilst findings were similar to the last survey, it isn’t possible to draw direct comparisons as a new West Sussex Plan has been implemented since the last survey containing different corporate priorities.

50.3  The Committee made comments in relation to the What Matters To You? Survey including those that follow. It:

·        Expressed a desire to understand the level of resident satisfaction with the Council, and how the comments in the survey will be translated into tangible actions within the portfolio areas that residents will see.

·        Expressed concern that whilst the information gained from the survey is very interesting, that it may not be very useful, and that some of the questions asked invited agreement. Members expressed concern that only 35% of respondents agreed that the Council provides good value for money and only 43% agreed to overall satisfaction with Council services. Members would like these ratings to be significantly higher, and suggested that the grants received from Government need to be explained more openly to the public so that they are informed on how and to what level the Council is funded by central Government. Some Members suggested that some of the responses may show the effect of previous Cabinet Member decisions, quoting in example that a rise in anti-social behaviour could considered to be linked to the closure of youth services.

·        Queried the percentage of survey respondents that were employees of the Council, noted the positive response to a raise in Council Tax rates, and queried whether the rate of responses from Council employees may unduly influence the acceptance of increases to Council Tax rates. The Head of Communications and Engagement confirmed 5% of respondents identified as working for the Council. This is less than previous years, as staff completion of the survey hadn’t been promoted as much as it has been in previous years. The Head of Intelligence and Performance explained all the percentages given are unweighted and the data will be provided to members of the Committee so they can be satisfied in relation to Council Tax rise feedback.

·        Expressed disappointment in the low numbers of West Sussex residents taking part in the survey, queried whether this was a good basis for making decisions affecting all residents, and suggested a breakdown by District/Borough area would have been helpful.  ...  view the full minutes text for item 50.

A report by the Director of Finance, Performance and Procurement, providing an update regarding the Medium Term Financial Strategy 2019/20 to 2022/23.

The Committee is asked to note the forecasts and assumptions leading to the current budget gap, note that assuming a council tax increase of 4.99% next year followed by 1.99% for the subsequent period that the budget gap would be £92.3m, and comment on the indicative timetable for setting the 2019/20 budget.

51.1  The Committee considered a report by the Director of Finance, Performance and Procurement (copy appended to the signed minutes).

51.2  The Cabinet Member for Finance and Resources introduced the Medium Term Financial Strategy 2019/20 (MTFS) report which sets out the budget challenges over the next four years. £216m of savings have been made over the last four years including efficiency savings; a further £145.1m gross (£92.3m assuming the predicted rise of Council Tax) of savings are needed over the next four years in order to close the budget gap, which equates to 10% of the Council’s budget. The savings decisions which now need to be taken are very difficult, but are necessary in order to protect other Council services and the Cabinet Member does not wish to use Council reserves to bridge the gap.

51.3  The Director of Finance, Performance and Procurement introduced the report and accompanying presentation (copy appended to the signed minutes), detailing the impact of eight years of austerity upon this Council and how this compares to other authorities. The Council currently has sufficient levels of reserves, of which some is earmarked for designated spending, however the focus is on avoiding unplanned use of reserves as has happened in other authorities. It is hoped the Government’s draft finance settlement figure may be released before Christmas with the final settlement figure being confirmed in January 2019.

51.4  The Committee made comments in relation to the Medium Term Financial Strategy including those that follow. It:

·        Commented that the effects of austerity are continuing to affect residents and the Council should be doing all it can to loudly and clearly lobby central Government for increased funding. 

·        Queried the figures in Table 8 Summary Budget Gap; if no Council Tax rise is made for 2020/21 why the total funding rises by £22m by 2021/22.  The Director of Finance, Performance and Procurement explained that the 2020/21 figures assume a balanced 2019/20 budget and therefore expenditure is increased to cover that budget. If Council Tax were then kept at the same level with no rise in 2020/21, the base expenditure for the same services would be at that higher level; effectively the starting point would be increased.

·        Members queried whether service provision would be lower if Council Tax was not increased. The Director of Finance, Performance and Procurement confirmed that in 2022/23 if no Council Tax increase was agreed real cuts to services would need to be made due to inflation. Council Tax needs to increase to maintain or slightly reduce current services. The total expenditure detailed in Table 8 of £625.4m for 2022/23 is as predicted in order to protect services at the current level of provision.

·        Commented that the expenditure to provide the same services rises between 2019/20 to 2022/23 by £45m. This context needs to be borne in mind and needs very careful explanation to residents by both officers and Councillors so it is clear what is being asked of Council Tax payers.

·        Queried whether success in applying for  ...  view the full minutes text for item 51.

Reports by the Director of Finance, Performance and Procurement setting out the performance and finance position as at the end of June 2018 and July 2018.

If a new Total Performance Monitor (TPM) is ready between the date of despatch of the agenda and the date of the meeting it will be tabled at the meeting.

The Committee is asked to examine the data and supporting commentary for the June and July TPMs and make any relevant recommendations for action to the Cabinet Member or a relevant Select Committee.

52.1  The Committee considered the June and July TPM reports from the Director of Finance, Performance and Procurement (copies appended to the signed minutes).

52.2  Mr Crow, Chairman of the recent TPM TFG, outlined changes to the report following the Group’s feedback. Monthly reporting will be more concise and report performance by exception, and this will be complemented by a larger quarterly report.

52.3  The Cabinet Member for Finance and Resources introduced the June and July TPM reports and outlined key information for the Committee. The June TPM provides additional workforce information. The July report shows continued financial pressure and an overspend of less than 1% of the net budget, but the overspend is being mitigated.

52.4  The Director of Finance, Performance and Procurement introduced the finance aspect of the TPM reports and highlighted key budget pressures including school transport and procurement of the new Highways contract. Pressures exist within Waste Services and Facilities Management, and vacancy control is in place to reduce staff cost across the Council alongside miscellaneous spend control.

52.5  The Committee made comments in relation to the TPM finance reports including those that follow. It:

·        Queried whether there is a risk of the projected overspend continuing. The Director of Finance, Performance and Procurement explained that some underspends may come to light in January-March however it is likely there will be an overspend at year end. Contingency funds are likely to need to be used due to winter health and highways spend pressures.

·        Commented that a number of school transport arrangements were for taxis transporting only one child, queried if this was necessary, and suggested that parents be approached to offer payment for transporting the children in their own vehicles. The Cabinet Member for Finance and Resources confirmed that many of these journeys are for Special Education Needs children for whom solo travel is necessary and that the Cabinet Member for Education and Skills is looking at this issue. The suggestion will be considered alongside other innovative suggestions and the budget determined accurately.

·        Expressed concern regarding the ongoing costs to the Council of the Beechfield Secure Unit, and commented that the children are now looked after elsewhere at a higher cost. The Leader explained the children are receiving and benefitting from therapeutic care. The Director of Finance, Performance and Procurement confirmed the overall number of Children Looked After up to age 18 was now stabilising, with some housed after 18 receiving a reduced package.

52.6  The Head of Intelligence and Performance introduced the performance aspect of the TPM reports and highlighted key changes including improved performance in Key Stage 1 and 2 results, increased take up of apprenticeships and solar energy. Levels of social isolation have worsened and action is being taken on this.

52.7  The Committee made comments in relation to the TPM performance reports including those that follow. It:

·        Queried whether the 31 grants given under Crowdfunding were more or less in number and value than in previous years under the former grant scheme, and  ...  view the full minutes text for item 52.

A report by the Executive Director of Economy, Infrastructure and Environment.

The Committee is asked to review, comment on and make any relevant recommendations for action to the Cabinet Member in relation to the quarterly performance report of the capital programme. 

53.1  The Committee considered a report by the Executive Director of Economy, Infrastructure and Environment (copy appended to the signed minutes).

53.2  The Capital Programme Manager introduced the report and summarised key aspects of the report including the pipeline.

53.3  The Committee made comments in relation to the Capital Programme performance report including those that follow. It:

·        Queried in relation to the A259 Corridor Improvement project whether the project is still on track following a revision of the cost estimate. The Executive Director of Economy, Infrastructure and Environment explained that statutory undertakings will begin and that the project is part funded by the Coast to Capital Local Enterprise Partnership (LEP).

·        Queried whether the whole Northgate Primary School project was completed by the end of September 2018. The Capital Programme Manager confirmed this was the intention and that officers are awaiting the end of September report for confirmation.

·        Commented that the Appendix B Capital Monitor was a useful addition to the report, and that it would be helpful to understand the value of the capital pipeline for the current and next year. The Cabinet Member for Finance and Resources confirmed this has been raised with officers and the information will be provided from the Quarter 2 report onwards.

53.4  Resolved - That the Committee welcomes and notes the report.

The Committee is asked to consider in respect of the following item(s) whether the public, including the press, should be excluded from the meeting on the grounds of exemption under Part I of Schedule 12A of the Local Government Act 1972, as indicated below, and because, in all the circumstances of the case, the public interest in maintaining the exemption of that information outweighs the public interest in disclosing the information.

Exempt:  Paragraph 3, Financial or business affairs of any person (including the authority).

54.1  Resolved – That under section 100(4) of the local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that it involved the likely disclosure of exempt information as defined in Part I, of schedule 12A of the Act by virtue of paragraph 3, and that, in all circumstances of the case, the public interest in maintaining the exemption of that information outweighs the public interest in disclosing the information.

54.2  The Committee continued its discussion in Part II, for which a Part I summary is available. The discussion in Part II took place from 3.04pm until 3.50pm.

The Committee is asked to agree the Part II minutes of the meeting held on 9 July 2018 (yellow paper, for members of the Committee only).

55.1  Resolved – That the part II minutes of the Performance and Finance Select Committee held on 9 July 2018 be approved as a correct record and that they be signed by the Chairman.

The Executive Director of Economy, Infrastructure and Environment will provide a verbal update to the committee on the PropCo project at Angel’s Nursery, Barnham.

The Committee is asked to note the publication of the decision to sell the land at Angel’s Nursery, Barnham and asks the Cabinet Member to indicate whether there will be a review of the PropCo policy and that it be brought to the Committee for consideration.

The Committee considered and commented on the update regarding Angel’s Nursery in Barnham in Part II.

Resolved - That the Committee reviewed the update on Angel’s Nursery in Barnham, and made recommendations to the Cabinet Member for Finance and Resources for consideration.

The report informs the Committee of the Business Planning Group meeting held on 13 September, setting out the key issues discussed.

The Committee is asked to endorse the contents of this report, support the updates to the work programme as recommended by the Business Planning Group and reflected in Appendix A, and note the latest Task and Finish Group Rolling Programme attached as Appendix B and make any comments accordingly.

57.1  The Committee considered a report by the Chairman of the Business Planning Group (BPG), (copy appended to the signed minutes).

57.2  The Senior Advisor introduced the report which provides an update from the latest BPG meeting held on 13 September 2018 setting out the key issues discussed, and highlighted key information for the Committee. Alterations to improve the information in the Capital Programme report have been agreed and will be included in the Quarter 2 report due to be presented at the November meeting of the Committee. The BPG agreed the request to consider a Contract Negotiation Task and Finish Group (TFG) and, following a subsequent letter from the Chairman of ECFSC raising specific concerns about the Highways Contract procurement process, the BPG will consider at its November meeting a TFG covering large-scale contract procurement. The budget timeline was provided and savings decisions listed in the Forward Plan will receive scrutiny by the relevant Select Committees.

57.3  Resolved:

1)  That the Committee endorses the content of the report and supports the update to the work programme as recommended by the BPG; and

2)  That the Committee notes the latest Task and Finish Group rolling programme.

Extract fromthe ForwardPlan dated 13 September 2018.

Anextract fromanyForwardPlan publishedbetween the date of despatchof the agenda and the date of the meetingwill be tabled at the meeting.

The Committee is asked to consider whetheritwishes to enquireinto any of the forthcoming decisions withinits portfolio.

58.1  The Committee considered the Forward Plan of Key Decisions (copy appended to the signed minutes).

58.2  Resolved – That the Forward Plan be noted.

The next meeting of the Committee will be held on 22 November 2018 at 10.30 am at County Hall, Chichester.  Probable agenda items include:

·        Review of savings proposals and capital programme 2019/20

·        Treasury Management Mid-year Review

·        Q2 Capital Programme Performance Report

·        One Public Estate

·        Total Performance Monitor

·        November BPG Report

Any member wishing to place an item on the agenda for the meeting must notify the Director of Law and Assurance by 12 November 2018.

59.1  The Committee notes its next meeting will take place on 22 November 2018, commencing at 10.30am.