Agenda and minutes

The Chair welcomed Members to the first virtual meeting of the Finance & Performance Scrutiny Committee for the 2020/21 Municipal Year.

The Chair informed Members that the agenda would be dealt with out of sequence, with agenda item 6 being dealt with first.  

An apology of absence was received from County Borough Councillor S. Evans.

To receive disclosures of personal interest from Members in accordance with the Code of Conduct

Note:

1.    Members are requested to identify the item number and subject matter that their interest relates to and signify the nature of the personal interest: and

2.   Where Members withdraw from a meeting as a consequence of the disclosure of a prejudicial interest they must notify the Chairman when they leave.

In accordance with the Council’s Code of Conduct, there were no declarations made pertaining to the agenda.

To receive the minutes of the previous meeting of the Finance and Performance Scrutiny Committee held on the 29^th January 2020.

It was RESOLVED to approve the minutes of the 29^th January 2020 as an accurate reflection of the meeting, subject to the following amendment:-

Councillor G. Thomas referred Members to page 9 (reference paragraph 4.4) and page 10 respectively, and emphasised that in seeking clarity on how the UK Consumer Prices Index (CPI) compared with the CPI in Rhondda Cynon Taf, this was in relation to the impact of inflation in the delivery of Council Services and not from a household / resident perspective within the County Borough. The Service Director – Finance & Improvement Services reassured Members that this point will be reflected in the minutes.

To consider the 2019/20 Annual Treasury Management Review.

The Head of Finance - Education & Financial Reporting presented the report of

the Director of Finance and Digital Services in respect of the Annual Treasury

Management Review 2019/20, which had been presented to Council on the 29^th

July 2020 (attached to the report at Appendix 1).

Following the overview of the report provided by the Head of Finance, Members raised a number of questions.

Mr J. Fish, the Voting Elected Parent/Governor Representative, sought clarity  around whether the £80M long term borrowing undertaken during the year, as set out in paragraph 8.2 of the report, was planned or whether the Council were seeking to take advantage of the low rates available at that point in time. The Head of Finance fed back that the borrowing undertaken was both planned for and also taken because of the low rates prevailing at that time.

The Chair also highlighted the £30M of borrowing taken on 5^th July 2019 at an interest rate of 1.41% and further borrowing taken later at lower rates, and sought clarity around why the earlier tranches of borrowing were not delayed until rates reduced further to enable the Council to incur lower borrowing costs. The Head of Finance fed back to Members that borrowing decisions are informed by the latest market intelligence at the time and advice from the Council’s Treasury Management Advisors, who review markets on an on-going basis, and confirmed that the rates secured during 2019/20 were low compared to previous historic rates. The Head of Finance also stated that the Council’s approach is to not take all its borrowing requirement in one tranche if there is a possibility that interest rates they could reduce further.

Following discussion, Members RESOLVED to acknowledge the information within the report.

To consider the Quarter 1 Council Performance Report for 2020/21.

The Service Director – Finance and Improvement Services presented the Council’s Quarter 1 Performance Report (to 30^th June 2020).

The Service Director explained that the Quarter 1 Performance Report was presented to Cabinet on the 24^th September 2020 and contains revenue and capital budget performance; Treasury Management prudential indicators; Organisational Health information, including staff turnover; sickness and Council strategic risks; and Corporate Plan priority progress updates.

The Service Director advised Members that the first quarter revenue budget position is a full year projection, rather than a period variance that has been reported at this point in previous years, and explained that the aim of doing so was to set out an early projection of the Council’s underlying financial position together with an estimate of the financial implications related to Covid-19. The Service Director informed Members that the full year projected position, estimated at quarter 1, was a £2.903M overspend with key demand pressures being forecasted, in particular, across Adult Social Care and Children’s Services. The Service Director went on to explain that the quarter 1 position includes projected additional expenditure and income losses associated with Covid-19 amounting to £27.2M with these being assumed to be fully funded by Welsh Government. Members were informed that work will continue to closely monitor the Council’s financial position, refresh financial forecasts for the full year as updated information becomes available and also engage with Welsh Government to highlight the importance of providing additional funding to meet on-going permanent cost pressures.

The Service Director moved on to provide an update on the Council’s Capital Programme, noting that work has been on-going during quarter 1 with contractors and suppliers to enable works to safely recommence and projects progressed following the initial 3 week national lockdown from 23^rd March 2020. Members were informed that capital expenditure as at quarter 1 totalled £7.7M and a number of schemes have been re-profiled during the quarter to reflect changes in costs and also new external grant funding approvals received.

The Service Director completed the overview of the Report by providing an update on the progress made across the Council’s 3 Corporate Plan priority areas of People, Places and Prosperity and, following this, Members put forward their questions.

Councillor S. Rees sought further information in respect of the financial support put in place for local businesses during the lockdown period, whether Welsh Government funding is available and the impact on local authority staff in managing this work during an unprecedented period. The Service Director – Finance and Improvement Services informed Members that a Welsh Government funded Business Support Grant was put in place, administered by local authorities, and for Rhondda Cynon Taf over £40Million of support had been paid, in line with criteria set by Welsh Government, to nearly 4,000 local businesses. The Service Director added that the lockdown period had posed significant challenges for Council staff across all services, with officers working tirelessly and being supported to continue to provide key services, and that their commitment  ...  view the full minutes text for item 6.

To consider the Community Infrastructure Levy (CIL) Annual Monitoring Report.

The Director of Prosperity and Development presented his report to Members to seek Committee’s comments to be forwarded onto Cabinet in respect of the contents of the CIL Annual Monitoring Report and proposed changes to the regulation 123 List.

In accordance with the Community Infrastructure Levy Regulations 2010 (as amended), the Director attached to his report at Appendix A the CIL Annual Monitoring Report detailing the CIL income and expenditure. Also attached to the report as Appendix B was the Regulation 123 List, which required Members approval for publication on the Council website for a period of 28 days and consultation.

The Director referred Members to paragraph 5.2 of the report and advised Members that the total CIL income received in 2019/20 was £308,535.08. This included:-

§  80% as Strategic income = £130,626.31*

§  15% Local income = £169,768.53

§  5% Administration income = £8,140.24

The Director emphasised that the 80% Strategic income is less than the 15% Local income due to the amount being off-set against the infrastructure balance until the cost of the new primary school at the Llanilid development has been met.

A further reference was made to paragraph 5.4 of the report and the Director explained that there had been no expenditure of Strategic CIL income to date, however, he emphasised that Cabinet agreed on 20th September 2018 to spend £395,000 of Strategic CIL on Ffynnon Taf Primary School.  Members were informed that the project will include a new build extension (4 classrooms and a hall) and refurbishments to the current school buildings for school and community use.  The £395,000 Strategic CIL money is proposed to be spent by the end 2020/21.

Members were further informed of the proposed changes to the regulation 123 List, which includes new active travel schemes and infrastructure to complement the development of the South Wales Metro, and also work that is proposed to be removed from the list as work is now being completed through other funding streams. Members were advised of the proposed change in respect of education, which is the  removal of Ystrad Barwig Farm due to planning application reference 18/0872/13 for residential development at Ystrad Barwig Farm being called-in by Welsh Government and the Minister decision on 15^th March 2020 was to refuse the application.

Following discussion, Members RESOLVED:

1.    To approve the CIL Annual Monitoring Report (Appendix A);

2.    To approve the amended Regulation 123 List (Appendix B) for publication on the Council website for a period of 28 days and consultation; and,

3.    To approve the subsequent adoption of the amended Regulation 123 List.

For Members of the Finance and Performance Scrutiny Committee to consider the Work Programme for the 2020/21 Municipal Year.

The Service Director of Democratic Services & Communication provided an overview of the report and confirmed that the Work Programme under the new arrangements is planned on a three month basis and that this item would be reviewed at this juncture. 

The Service Director set out the context and pressures Council Services are currently operating within as it focusses on the impact of the pandemic and its associated plans for response and recovery. The Service Director went on to emphasise that the Committee will need to be mindful of these ongoing pressures and that Members are asked to acknowledge the balance required for a flexible and supportive scrutiny work programme. 

Members were advised that the Finance & Performance Scrutiny forward work programme sets out a manageable and realistic programme of scrutiny activity for the next three months, allowing for the more pressing matters to be considered whilst having the flexibility to respond to emerging issues.

Members were reminded that given the current climate, the forward work programme priorities may be subject to change should other specific business need to be considered by the Committee.

Members were advised that the meeting scheduled to take place on the 16^th November will include engagement on the 2021/22 Budget Consultation (phase 1) and also a Medium Term Financial Plan update as agreed by Cabinet at its October meeting. 

Following discussion, Members RESOLVED to acknowledge the contents of the proposed draft Finance & Performance Scrutiny Work Programme for the 2020/21 Municipal Year (October –December 2020). 

To receive the report of the Service Director Democratic Services & Communications.   

The Service Director of Democratic Services & Communication presented his report on the ‘digital by default’ approach to resident engagement and consultation in respect of the 2021/22 budget, considered by Cabinet on the 13^th October 2020.

Members were reminded that in previous years the Council has undertaken a comprehensive approach to its annual budget consultation, involving a large number of residents and key stakeholders. The Service Director went on to inform Members that the current Covid-19 pandemic presents a unique set of circumstances for engagement and consultation, and confirmed that face-to-face engagement is not possible and may not be for quite some time. The Service Director added that in light of this, the 2021/22 annual budget consultation will take on a ‘digital by default’ approach, whilst continuing to consider hard to reach groups, those having reduced or no access to the internet and those who prefer to engage through more traditional methods.

The Service Director also updated Members on the different approaches that will take place to replace the usual face-to-face engagement and noted that this will include a number of virtual meetings to outline the budget approach, answer questions and collect views. It was noted that online (Zoom) events will give residents the opportunity to engage with and speak to Cabinet Members and senior officers regarding the Council's budget and investment priorities and will include:

·      A number of Zoom Public meetings;

·      Engagement with older people via the Older Persons Advisory Group meeting;

·      Engagement with young people via Rhondda Cynon Taf’s Youth Forums;

·      A presentation and discussion with young people via our schools;

·      Reporting to the Finance and Performance Scrutiny Committee and the School Budget Forum; and

·      A presentation at the Community Liaison Committee.

The Service Director went on to acknowledge the difficulties of communicating with those having reduced or no access to the internet and those who prefer to engage through more traditional methods. Members were advised that a range of alternative methods have been put in place as set out in paragraph 5.8 of the report.

Further to the Service Director concluding an overview of the report, Members raised a number of questions. The Chair sought clarification as to which Scrutiny Committee would be receiving the results of the dog fouling consultation. The Service Director confirmed that the results would be presented to the Public Service Delivery, Communities & Prosperity Committee.

Mr J. Fish, the Voting Parent/Governor Representative, noted observations made by the Committee previously around it seeking the opportunity to consider the formulation of budget consultation questions, with Councillor J Williams also recalling previous dialogue in this regard. The Service Director fed back that due to the re-prioritisation of work required as a result of Covid-19 and the budget consultation timescales being worked to this year, it had not been possible to accommodate this within the Committee’s current work programme. The Service Director added that the budget consultation questions have been revised in recent years, taking account of the Committee’s feedback where appropriate, with the wording of  ...  view the full minutes text for item 9.

Information is provided in respect of relevant consultations for consideration by the Committee.

The Service Director of Democratic Services & Communications referenced the consultation links, which were available through the ‘RCT Scrutiny’ website.  Members were reminded that Information is provided in respect of relevant consultations for consideration by the Committee, which are circulated on a monthly basis.

To reflect on the meeting and actions to be taken forward.

The Chair thanked Members for attending the first virtual meeting of the Finance & Performance Scrutiny Committee and for engaging in a constructive and challenging discussion.

The Chair praised the earlier training session by AirlingClose in respect of treasury management and thanked them for providing Committee Members with such useful information. The Chair queried how often these training session will be taking place and the Service Director of Democratic Services & Communication confirmed that the training session with AirlingClose is an annual event. The Service Director added that should the Committee identify  training requirements during the year, these can be incorporated into the 2020/21 Forward Work Programme. The Service Director also acknowledged the success of having a virtual training event and confirmed that the Council will be looking to continue with this approach post the Covid-19 pandemic.

In light of the Welsh Government’s announcement earlier in the day regarding a ‘firebreak’ Wales wide lockdown, the Chair queried whether there was any additional information that needed to be highlighted to the Committee. The Service Director – Finance & Improvement Services indicated that there was no specific further information to relay to the Committee at this point and he informed Members that further financial updates will be included within Performance Reports presented to the Committee this year.

To consider any items, which the Chairman, by reason of special circumstances, is of the opinion should be considered at the meeting as a matter of urgency.

There was no urgent business to report.