Agenda and draft minutes

Councillors John Wing and James Butcher made a declaration as directors of Oportunitas.

This report provides an update on the Council’s performance for the second quarter of the year covering 1^st July– 30^th September 2024. The report enables the Council to assess progress against the approved key performance indicators arising from the Council’s Corporate Action Plan.

Gavin Edwards, Senior Performance Officer introduced the item and outlined the report:

The report provided an update on the Council’s performance for the second quarter of the year covering 1st July– 30th September 2024. The report enables the Council to assess progress against the approved key performance indicators arising from the Council’s Corporate Action Plan.

Key performance indicators (KPIs) will be monitored during 2024-25 and reported to Members quarterly.

Following the above update, members raised several points, including:

·       Members raised points surrounding MyAccount, and whether the KPI should capture the performance/response times.

·       Members were concerned with the increased number of rough sleepers being reported ahead of the winter months. Gill Butler, Chief Officer for Housing, advised members that the council has positive partnerships with external voluntary organisations throughout the district like the Rainbow Centre and Porchlight to help tackle the rising number of cases. It was noted that the council focuses heavily on homelessness prevention and has one of the best KPIs across Kent. The Chief Officer then went on to advise that the winter shelter service will begin to operate again from 1 December to 31 March 2025. It was also noted that the council is conducting work to access the viability of using more of our own HRA stock as temporary accommodation.

·       Members were curious to know what facilities the Rainbow Centre uses to temporarily accommodate rough sleepers? The Chief Officer advised members that she would check and provide members with an answer in due course.

·       Members were keen to understand any initiatives to help tackle the temporary accommodation (TA) situation? The Chief Officer explained that the council works closely with a number of organisations to help tackle the problem and the current increase in homeless presentations and use of TA. Kent Housing Group, takes a Kent-wide approach and has commissioned a report on the use of TA and the cost of nightly lets across the district. The stats around affordable housing were also discussed, the Chief Officer advised the council is due to take on 9 new build units at Middlesex House, Aras Close (formerly called Shepway Close) in the new year.

·       Members raised points around the homelessness and rough sleepers KPIs and whether we can capture those cases where the council has done its upmost to support residents, but they continue to choose to rough sleep.

·       Members were keen for an update on where the council is at with new builds and acquisitions? The Chief Officer noted that the HRA business plan has committed £5million a year over the next 18 years and we have an ongoing HRA pipeline plan that will hopefully  enable us to acquire more homes over the next 5 years.

·       Members raised the questions as to whether the ‘Affordable homes delivered by the council and its partners’ KPI target should be re-assessed? The Senior Performance Officer advised members that the KPI targets are assessed annually, and that the members comments would be noted.

·       Members were happy to see the positive increase in  ...  view the full minutes text for item 13.

This report sets out the financial monitoring information for the Council as at the end of the 2^nd Quarter (Q2) in 2024/25. The report provides Members with an overview of budget performance, including an overview of reserves and balances, to enable the Cabinet take ownership of the budgets and provide robust challenge and scrutiny to the officers on the performance of those budgets. At the end of Quarter 2, there is an unfavourable end of the financial year projected position of £61k on the Council's revenue budget, of £19.5m. This position is based on activity at the end of September 2024, projected trends in income and expenditure and changes to Council funding.

Lydia Morrison, Interim Director of Governance & Financial Services introduced the item and outlined the report:

The report set out the financial monitoring information for the Council as at the end of the 2nd Quarter (Q2) in 2024/25. The report provided Members with an overview of budget performance, including an overview of reserves and balances, to enable the Cabinet to take ownership of the budgets and provide robust challenge and scrutiny to the officers on the performance of those budgets. At the end of Quarter 2, there is an unfavourable end of the financial year projected position of £61k on the Council's revenue budget, of £19.5m. This position is based on activity at the end of September 2024, projected trends in income and expenditure and changes to Council funding.

Councillor Tim Prater highlighted paragraph 3.5.1 of the report, around rent rebates and temporary accommodation. It was noted the increase was due to the increase in demand. Lydia Morrison, Interim Director for Governance and Financial Services advised the council can only claim 40% subsidy for temporary accommodation where the council is not the landlord, whereas the council can claim 100% back on council owned stock. This reiterated the rationale around why the council is exploring the viability of using HRA stock as temporary accommodation.

Following the above update, members raised several points, including:

·       A member asked for clarity around paragraph 5.3 of the report, ‘movement of earmarked reserves and the table? The Interim Director explained that members should expect to see changes in reported earmarked reserves as the reserves move in and out throughout the year. Some earmarked reserves are ring-fences to pay for specific services such as support for homelessness prevention.

·       Members asked for further clarification surrounding the planning and building control forecasted overspend of £143k, as it was thought that an underspend was last reported during Q1? The Head of Financial Reporting explained that the service is demand lead but will speak with the Chief Officer to confirm.

·       Members sought clarification in relation to the ‘Table 1 – Q2 2024/25 Budget Monitoring Statement’ it was noted that the reported Q1 variance for ‘Governance, Law & Democracy’ and ‘Leadership Support’ differed to the table reported in the Q1 report (OS/24/03). The interim Director explained that this is probably due to the realignment of directorate, however, officers will confirm.

·       Members asked for an update on Connect 38? It was noted that Cabinet has agreed to a full review. This is likely to commence in the next financial year.

·       Members asked for a further narrative around the final bullet point of paragraph 3.5.10 (Other Non – Service Related), ‘Capital Expenditure Financed from Revenue – The variance is as a result of changes made to reflect the projected slippage within the capital programme for 2024/25’. The Head of Financial Reporting confirmed that a further narrative can be provided.

Members resolved to:

1.                 To receive and note Report C/24/50; and,

2.                 To note the forecast level of reserves and balances at Quarter 2.

(Voting figures: 5  ...  view the full minutes text for item 14.

This monitoring report provides an initial projection of the current financial position for the General Fund capital programme profiled for 2024/25, based on expenditure to 30 September 2024, and identifies variances compared to the latest approved budget.

Lydia Morrison, Interim Director of Governance & Financial Services introduced the item and outlined the report:

The monitoring report provided an initial projection of the current financial position for the General Fund capital programme profiled for 2024/25, based on expenditure to 30 September 2024, and identifies variances compared to the latest approved budget.

Following the above update, members raised several points, including:

·       Members asked for clarification on the paragraph 2.2 (Significant Variances), Folkestone Brighter Place LUF Professional Fees and whether then fess will be split? It was noted that the significant variances just means that it would be addressed in the next financial year. Councillor Prater advised members he had received an update on this earlier that day and the project continues to be affordable.

·       Members asked for the rationale surrounding the reasons the Coronation Parade has been re-profiled to next year? Officers advised that they would seek clarification from the relevant officers.

Members resolved to:

1.     To receive and note report C/24/49.

This monitoring report provides a projection of the end of year financial position for the Housing Revenue Account (“HRA”) revenue expenditure and HRA capital programme based on net expenditure to 30 September 2024. 

Jonathan Smith, Head of Financial Reporting, alongside Monisola Omoni, Principal Accountant (Financial Reporting), and Lydia Morrison, Interim Director of Governance & Financial Services introduced the item and outlined the report:

The monitoring report provided a projection of the end of year financial position for the Housing Revenue Account (“HRA”) revenue expenditure and HRA capital programme based on net expenditure to 30 September 2024

Following the above update, members raised several questions, including:

·       Members sought clarification for the increase in repairs and maintenance as detailed in paragraph 2.2 of the report? The Head of Financial Reporting advised this was due to inflation in costs for repair works.

·       Further to the above comment, Members were keen to understand the 8% contract inflation and, whether it was comparable to other authorities? The Head of Financial Reporting noted that without knowing details of the authorities’ contracts it would be difficult to predict if the 8% was comparable. it was noted that the officers would confer with the Chief Officer.

Members resolved to:

1.                 To receive and note Report C/24/51.

(Voting figures: 5 For, 0 Against, 0 Abstentions)

This report provides an update on the Council’s treasury management activities that have taken place during 2024/25 against the agreed strategy for the year. The report also provides an update on the treasury management indicators approved by Cabinet earlier this year.

Lydia Morrison, Interim Director of Governance & Financial Services introduced the item and outlined the report:

The report provided an update on the Council’s treasury management activities that have taken place during 2024/25 against the agreed strategy for the year. The report also provides an update on the treasury management indicators approved by Cabinet earlier this year.

Following the above update, members raised several points, including:

·       Members were keen to understand the £107.8m total borrowing reported in the Q1 report, and how the council assess/monitors the level of borrowing to make sure it remains feasible? The Interim Director explained the level of borrowing is calculated on need and affordability. There is a level set every year which is presented within the budget reports and approved at Budget Council in February.

·       Members sought clarity on the decrease in credit score from 5.1 in Q1 and 4.88 in Q2? It was noted that officers would need to confirm with treasury advisors, but it does not affect the council’s ability to borrow.

·       Members asked for clarification around short term borrowing? The Interim Director explained that the council cannot borrow in advance of need and that it considers the best deal available when the need arises. However, the interest rates change from hour to hour, throughout the year.

Members resolved to:

1.     To receive and note report C/24/52.

(Voting figures: 5 For, 0 Against, 0 Abstentions)

This report provides an update on the Council’s treasury management activities that have taken place during 2024/25 against the agreed strategy for the year. The report also provides an update on the treasury management indicators.

Lydia Morrison, Interim Director of Governance & Financial Services introduced the item and outlined the report:

The report provided an update on the Council’s treasury management activities that have taken place during 2024/25 against the agreed strategy for the year. The report also provided an update on the treasury management indicators.

Members considered the Q1 and Q2 report together.

Members resolved to:

1.         To receive and note report C/24/53.

 (Voting figures: 5 For, 0 Against, 0 Abstentions)

This report provides a draft Budget Strategy for comments from the Finance and Performance Scrutiny Sub-committee and sets out the guidelines for preparing the 2025/26 Budget. It supports the Corporate Plan and aligns with the direction and objectives of the Medium-Term Financial Strategy (MTFS). The revised MTFS to 2028/29 will be presented alongside the Council’s General Fund budget report in February 2025.

In terms of financial planning, the Budget Strategy takes account of current and future financial and economic conditions including the Chancellor’s Autumn Budget of 30 October 2024.

The Budget Strategy also sets out the underlying assumptions and initial budget-setting proposals and provides a timetable for delivering a balanced budget for approval and final Council Tax setting by Full Council in February 2025.

Appendices to follow.

Jonathan Smith, Head of Financial Reporting, alongside Monisola Omoni, Principal Accountant (Financial Reporting), and Lydia Morrison, Interim Director of Governance & Financial Services introduced the item and outlined the report:

The report provided a draft Budget Strategy for comments from the Finance and Performance Scrutiny Sub-committee and set out the guidelines for preparing the 2025/26 Budget. The report supported the Corporate Plan and aligned with the direction and objectives of the Medium-Term Financial Strategy (MTFS). The revised MTFS to 2028/29 will be presented alongside the Council’s General Fund budget report in February 2025.

In terms of financial planning, the Budget Strategy takes account of current and future financial and economic conditions including the Chancellor’s Autumn Budget of 30 October 2024.

The Budget Strategy also set out the underlying assumptions and initial budget-setting proposals and provided a timetable for delivering a balanced budget for approval and final Council Tax setting by Full Council in February 2025.

It was noted that the paragraph numbers at certain points in the report were incorrect. These would be rectified before the report is presented to Cabinet on 11 December 2024.

Following the above update, members raised serval points, including:

·       Members raised concerns around the removal of cash payments at the Hythe Swimming Pool as detailed on appendix 2, reference 36 (saving) – The Chief Officer for Regulatory & Community Services explained that the costing for taking cash payments will soon outweigh the costs/benefits of providing the services.

·       Members sought clarification surrounding the requested increase of £5000k for maintenance and Health and Safety as detailed in reference 48, appendix 2. Members were curious to understand if this years request had reinstated the budget to its former level following the previous years agreed reduction to the paly park maintenance budget. The Head of Financial Reporting confirmed that he would confirm back to committee.

·       Members were keen to understand the increases from 2025/26 to 2026/27 in the medium-term finance strategy forecast as detailed in 6.3 of the report? It was explained that the increases are due to current and future capital projects like Otterpool Park, and the Civic Centre re-location.

·       Members were happy to see the proposed length of the budget consultation (11 December to 31 March 2025).

Members resolved to:

1.         To receive and note report C/24/54.

(Voting figures: 5 For, 0 Against, 0 Abstentions)

This report provides a draft fees and charges schedule for comments from the Finance and Performance Scrutiny Sub-committee which will be considered by Cabinet in December 2024.The report focuses on the proposed fees and charges for 2025/26 which will contribute towards meeting the council’s 2025/26 budget objectives and Medium-Term Financial Strategy.

The Council’s Fees and Charges Policy was revised and agreed by Cabinet on 15 November 2017 (report C/17/54) and was last re-approved in December 2022 (see appendix 1, report C/22/70).

Jonathan Smith, Head of Financial Reporting, alongside Monisola Omoni, Principal Accountant (Financial Reporting), and Lydia Morrison, Interim Director of Governance & Financial Services introduced the item and outlined the report:

The report provided a draft fees and charges schedule for comments from the Finance and Performance Scrutiny Sub-committee which will be considered by Cabinet in December 2024.

The report focused on the proposed fees and charges for 2025/26 which will contribute towards meeting the council’s 2025/26 budget objectives and Medium-Term Financial Strategy.

The Council’s Fees and Charges Policy was revised and agreed by Cabinet on 15 November 2017 (report C/17/54) and was last re-approved in December 2022 (see appendix 1 of the agenda, report C/22/70).

Following the above update, members raised several points, including:

·       A member asked for clarity as to whether there is an additional fee to leaseholder’s in addition to the leaseholders fee once work has been conducted? The Head of Financial Reporting advised he would check this with the relevant officers.

·       Members were keen to understand why there were no fees reported for Building Control for the period 2024/25 in schedule of charges? - Monisola Omoni, Principal Accountant (Financial Reporting) advised that the charges were carried out separately last year. It was noted that the fees and charges for 2024/25 would be included in the Cabinet report, along with context around the fees previously been done separately.

·       Members asked for clarity in relation to the private lifeline charges as detailed in paragraph 2.5.3 of the report and the four new charges, including the deterrent controlled entry visit fee that seems to be substantial? It was clarified that these fees were in relation to housing and council tenants and not the Lifeline 365 services. The controlled entry fee is for situations where the council needs to make a controlled entry to a property for health and safety reasons where the tenant has refused previous attempts.

Members resolved to:

1.         To receive and note report C/24/55.

(Voting figures: 5 For, 0 Against, 0 Abstentions)