Apologies for absence were received from Councillors Campbell, Hunt, Mackie and Roome.

(a)  Minutes of the meeting held on 8^th December 2022 (attached).

(b)  Minutes of the meeting held on 5^th January 2023 (attached).

RESOLVED, that the minutes of the meetings held on 8^th December 2022 and 5^th January 2023 (circulated previously) be approved as correct records and signed by the Chair.

(Please telephone the Corporate and Community Services team to prepare a form for your signature before the meeting. Interests must be re-declared when the item is called, and Councillors must leave the room if necessary).

There were no declarations of interest received.

Report by the Director of Resources and Deputy Chief Executive to Strategy and Resources on 6th February 2023 (attached) (Note: Appendix E to the report attached), and

(a) Minute Extract of Strategy and Resources on 6th February 2023 (to follow).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Performance and Financial Management for Quarter 3 of 2022/23 together with Minute Extract of Strategy and Resources on 6th February 2023 (circulated previously).

The Finance Manager highlighted the following:

·         The revenue budget for 2022/23 was approved at Council on 23rd February 2022 at £13,721,640.

·         As at 31st December 2022, the latest forecast net budget was £13,702,640, which produces a forecast budget surplus of £19,000. Details were shown in “Appendix A – Variations in the Revenue Budget.

·         The original budget for 2022/23 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasts that the Council would achieve £452,000. The additional £202,000 was due to timings of filling the capacity building posts throughout the year which were approved as part of the original 2022/23 budget.

·         Temporary Accommodation was under additional cost pressure due to the increase in homelessness cases; the in-year impact of this £250,000 forecast increase in costs had been mitigated by utilising balances from the Homelessness earmarked reserve. Whilst this had alleviated the pressure this year, it did not mean this one-off amount from the homelessness reserve couldn’t be utilised for other homelessness initiatives.

·         Within the joint Building Control partnership with Mid Devon District Council there had been a decline in income and due to challenges in recruiting to vacant posts, an increase in the use of agency staffing costs which had negatively impacted the trading account. Full Council had recently approved an 8% increase in the Building Control fees, this additional income would cover the additional staffing costs moving forwards and improve our ability to fill vacant posts. The Council was now forecasting a net deficit of £33,000, this included utilising a £50,000 contribution from the Building Control reserve built up through prior year trading surpluses.

·         The largest variance within Appendix A was the £804,000 National pay award additional staffing costs over and above the £280,000 already built into the base budget; this was based on the offered pay award put forward to the Unions by the National Employers pay review body for the 2022-23 year. The pay award was accepted by the Union and its members and was backdated to 1st April 2022 and paid to staff in December 2022. The pay award was based upon £1,925 per full time equivalent employee.

·         Other inflationary pressures built into the forecast included additional fuel costs across our fleet of £104,000 and additional energy costs of £63,000. To date the Council had not included any further general supplies and services inflationary increases as it would endeavour to control and manage these in year through the existing budgetary framework.

·         As at 31st March 2022 the Collection Fund reserve balance was £5,722,000. This earmarked reserve was created to deal with the timing impacts of the Collection Fund (Business Rates), which ensured the revenue budget was not unduly affected in the year the taxes were collected. Collection Fund deficits/surpluses were reversed  ...  view the full minutes text for item 91.

Report by the Director of Resources and Deputy Chief Executive to the Strategy and Resources Committee on 6th February 2023 (to follow), and

(a) Minute Extract of Strategy and Resources on 6th February 2023 (to follow).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the review of Charges and Fees for 2023/24 together with Minute Extract of Strategy and Resources on 6th February 2023.

The Finance Manager highlighted the following:

• The charges for the provision of services were reviewed annually in the context of policy guidance within the Medium Term Financial Strategy, and the recommended levels of increase to produce a target income level.
• This year the guidance was to increase fees and charges by 5%, although some fees were set by statute and these would be set nationally. Other variations to the 5% increase were set out in paragraphs 4.3 to 4.9 of the report. Even though inflation was currently running much higher than the 5% increase the Council had tried to be prudent and fair in the fees charged and the impact this had on customers.
• Full Council approved, at the January 2023 meeting, that Building Control Services fees should be raised by an average of 8% and rounded to the nearest pound, this was to ensure the revenue income recoups the actual cost of providing the service. The already approved fees were shown within the table of charges at Appendix B.
• Land Charges fees had been set to recoup the cost of providing the service, without changing the current fees the land charges service was still budgeted to recover all the costs and break even as shown at Appendix D.
• There was one change to the Environmental Health fees, as the majority of these were set by Statute or set to recover costs. The only change was the introduction of a £110 fee (+VAT) for Food Business Operator requested Food Hygiene revisit as shown at Appendix E.
• After a discussion with the Crematorium Manager, a correction was required on the table of fees as shown at Appendix F. The correction was to the following: “Fees to purchase the exclusive right of burial for 30 years which include the right to erect a memorial” the Columns “Fee” and cost to a North Devon resident were both £0.
• Pannier Market – Due to the refurbishment works underway in the Pannier Market this financial year as part of the Future High Streets Fund project and the inevitable disruption to the operation of the market, the proposal was to not increase the charges for traders for 2023/24 year as shown at Appendix H.
• Bulky Waste – To increase the fees as follows:

Ø  Up to 2 items £23.00 (27.78% increase).

Ø  Up to 3 items £31.00 (19.23% increase).

Ø  Up to 4 items £38.00 (15.15% increase).

      ·   The above increases bring North Devon Council prices in line with

           neighbouring authorities and allowed for the recommended 5%

           increase for 2023-24 as detailed at Appendix I.

    ·    Full Council approved at its November 2022 meeting to increase the

         Garden Waste charge for 2023-24 to £55 per bin. A revised costing of

         providing the service, taking into account current year and estimated

         inflation  ...  view the full minutes text for item 92.

RESOLVED, that items 9 and 10 on the agenda be considered prior to item 8 when the Director of Resources and Deputy Chief Executive would be present at the meeting.

Report by the Chief Financial Officer to Strategy and Resources Committee on 6th February 2023 (attached), and

(a) Minute Extract of Strategy and Resources Committee on 6th February 2023 (to follow).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Treasury Management Strategy Statement for 2023/24.

The Head of Governance highlighted the following:

• External borrowing was projected to be £19m during the year 2023/24.
• Section 5.2 of the report showed a table detailing the projected Capital Financing Requirement (CFR) for the Council.
• The Council was asked to approve the CFR projections below:

·       There were no proposed changes to the investment Strategy.

·       Appendix A of the report updated the Treasury Management Practice adhered to by the Council.

RESOLVED, that the decisions and recommendations of the Strategy and Resources Committee be endorsed.

Report by the Chief Financial Officer to Strategy and Resources on 6th February 2023 (attached), and

(a) Minute Extract of Strategy and Resources on 6th February 2023 (to follow).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the 10 Year Capital Strategy for 2023 to 2033 together with Minute Extract of Strategy and Resources on 6th February 2023.

The Head of Governance outlined the Capital Strategy Years 2023/24 to 2026/27 (Medium Terms), which were detailed in paragraph 4.4 of the report.

He referred to section 4.5 of the report covering the years 2027/28 to 2032/33 and highlighted the following points:

·       The CFR was generally on a downward trend from £35m in 2027/28 to £30m by 2032/33.

·       External borrowing over the longer term remained at a high level, reducing from £26m to £21m over the same period, again assuming the under-borrowed position remained prudent and sustainable.

·       As a result of the high borrowing, the annual borrowing cost would continue to put pressure on the Council’s revenue budget each year. The projected cost of borrowing, both external and long term liabilities, was set to remain above £3m per annum over the six year forecast period.

·       The forecast medium term financial strategy budget gap had been extended beyond 2028/29, just to reflect the impact of borrowing costs before any other revenue changes were considered. On this basis, the revenue budget gap for the long term remained at £3.3m.

·       The strategy showed that the business as normal capital schemes such as the vehicles may present affordability challenges that Members would need to take into account as further capital schemes came forward for investment.

RESOLVED, that the decisions and recommendations of the Strategy and Resources Committee be endorsed.

Report by the Chief Financial Officer to the Strategy and Resources Committee on

6th February 2023 (attached), and

(a) Minute Extract of Strategy and Resources on 6th February 2023 (to follow).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Revenue Budget 2023/24, Capital Programme and Medium Term Financial Strategy 2023-24 to 2028-29 together with Minute Extract of Strategy and Resources on 6th February 2022.

The Director of Resources and Deputy Chief Executive highlighted the following:

·         Funding levels to Local Authorities from 2012/13 to 2023/24.

·         Finance Settlement – core spending power of 9.2% and analysis.

·         As a Shire District the Council’s actual core spending power was on average only at 5%.

·         The spending power varied according to region and the overall national level of 9.2% equivalent for the South West was 8.8%.

·         Central Government had run a finance settlement consultation, closed 16 January 2023. Appendix F of the report showed the response our Council had made in relation to this consultation.

·         The draft budget was assuming an increase of 2.99% on Council Tax.

·         Retained growth on Business rates of around £2 million.

·         The challenges to the budget came from reduced grant funding from Government, reduced workforce levels since 2010 and the uncertainty of the future Local Government Funding.

·         Inflationary pressures on the budget came from increased staff pay, increased energy prices, rising fuel prices and increased costs of external contracts.

·         There had been two earlier budget workshops with Members and a full report to Council in November 2022 to approve options identified to draft the refreshed Medium Term Financial Strategy.

·         Bridging the gap in the budget as follows (as detailed in section 4.1.2.14 of the report):

• Positive feedback was received from Parishes and Town Councils in taking on responsibility for public conveniences.  This was being assumed as a revenue saving in the 2023/24 budget.
• A breakdown in how the split of Council Tax was shared out and to whom showed that this Council received 10% of collected council tax for services such as refuse collections, kerbside recycling, housing, planning, street cleaning and leisure.
• Green Lanes Shopping Centre financials update showed performance was in line with the budgeted position for 2022/23 and the cash flow was in line with forecasts for 2023/24.
• Appendix A of the report detailed the Council’s summary budget for 2023/24. The net budget for 2023/24 was £14.766 million.
• Appendix B of the report detailed the recommended level of strategic grants for 2023/24.
• Assumptions and risks had been detailed within the budget report.
• Appendix C of the report detailed reserves held. The General  ...  view the full minutes text for item 96.

To consider the work programme 2022-2023 (attached).

The Committee considered the work programme for February to March 2023 (circulated previously.

The Clerk provided an update regarding the latest position with an approach to South West Water and advised that the Committee would be kept up to date on progress.

RESOLVED, that the work programme be noted.