Apologies for absence were received from Councillors Bell, Crabb, Hunt, Milton (who attended virtually) and Wilkinson.

(attached).

RESOLVED that the minutes of the meeting held on 6 January 2025 (circulated previously) be approved as a correct record and signed by the Chair.

The Chair advised that there would be a change of order to the agenda.  Item 11, Annual Performance report to be considered ahead of item 6 on the agenda.

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. A declaration of interest under the Code of Conduct will be a Disclosable Pecuniary Interest, an Other Registrable Interest or a Non-Registrable Interest.  If the item directly relates to your interest you must declare the interest and leave the room for the item, save in the case of Other Registrable Interests or Non-Registrable Interests where you may first speak on the item as a member of the public if provision has been made for the public to speak.  If the matter does not directly relate to your interest but still affects it then you must consider whether you are affected to a greater extent than most people and whether a reasonable person would consider your judgement to be clouded, if you are then you must leave the room for the item (although you may speak as a member of the public if provision has been made for the public to speak) or, if you are not, then you can declare the interest but still take part).

There were no declarations of interest announced.

Report by Chief Executive (attached).

The Committee considered a report by the Chief Executive (circulated previously) regarding the Annual Performance.

The Chief Executive highlighted the following:

·         This would be a regular annual update reviewing the Council’s performance against the Corporate Priorities.

·         Five priorities had been agreed by Full Council in February 2024, these were:

Ø  Achieving Financial Security

Ø  Housing

Ø  Climate and Environment

Ø  Pride of Place and Prosperity; and

Ø  People Matter

·         To achieve financial security, a balanced budget had been set, the commercialisation strategy had been reviewed and refreshed, financial plans were continually reviewed, and services had been reviewed to ensure they were efficient.  Property had been purchased to help ease the burden of temporary accommodation placement costs, Green Lanes was providing an additional income and we were always looking at ways to share services such as the Joint Building Control services with Mid-Devon council.

·         To achieve our Housing provision, £800,000 in funding had been secured to provide affordable housing in rural areas through a Community Land Trust.

·         Land had been purchased in Braunton to help ensure affordable housing was available as part of a new development.

·         To help residents in need of temporary accommodation, 13 properties had been purchased.  £1.7 million had been secured from the Local Authority Housing Fund.

·         £2 million funding had been secured for the Ilfracombe Healthy Homes project. 

·         180 homes were to be developed on the site of the old Leisure Centre at Seven Brethren, 54 of these would be affordable.

·         We continued to work with local landlords to improve property standards in the private rental sector.

·         To achieve our Climate and Environment priorities, a new section of woodland had been planted at the community woodland near Frankmarsh.

·         Exploring options to install solar panels on the Ilfracombe swimming pool and the North Devon Crematorium.

·         Investment into the recycling facilities would ensure we can recycle more waste efficiently as well as offering the opportunity for third parties to recycle with us.

·         Options to make the vehicle fleet more environmentally friendly were continually reviewed.

·         Funding had been secured to carry out energy efficiency improvement works at Brynsworthy Environment Centre and the Landmark Theatre, Ilfracombe.

·         The priority of Pride of Place and Prosperity had seen us complete the Ilfracombe Watersports centre.

·         Further works were due for completion along Ilfracombe sea front in Spring 2025.

·         The £12 million Barnstaple market quarter project was underway, this included the completed works of the refurbishment of the Pannier Market and Guildhall, the redevelopment of Queen Street and Bear Street carparks, the renovation of a grade II listed building at 36 Boutport Street into a cultural hub for North Devon was progressing.

·         An economic strategy for North Devon and Torridge had been delivered.

·         Reviewed and refreshed our strategies for car parking and asset management.

·         To fulfil our People Matter priority a community hub was being developed in Green Lanes shopping centre, giving greater access for residents and extending our face-to-face offer.

·         A behaviour framework, developed by staff, had been implemented and recruitment was  ...  view the full minutes text for item 104.

Report by Director of Resources and Deputy Chief Executive (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding Performance and Financial Management Quarter 3 of 2024/25.

The Finance Manager highlighted the following:

·         The revenue budget for 2024/25 was approved at Council on 21 February 2024 at £16,432,690.

·         As at 31 December 2024, the latest forecast net budget was £16,423,690, which produced a budget surplus of £9,000. Details are shown in “Appendix A – Variations in the Revenue Budget”

·         There was still pressure on the Temporary Accommodation budget and we were funding the anticipated additional cost of £158,000 from in year Temporary Accommodation grant.

·         As part of the previous year outturn we contributed an additional £250,000 into the insurance reserve to mitigate against higher costs in 2024/25 and it was planned to use the full £347,500 balance to offset increased insurance premiums in this financial year. We have increased the 2025/26 budget to help mitigate the estimated increased costs.

·         The original budget for 2024/25 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasted we would achieve £263,000 based on known vacancies to date. The £250,000 forecast was an estimate of the natural savings that would be achieved due to the timeline it took to recruit for vacant posts and new post holders to start.

·         The additional costs of £179,000 for Waste and Recycling transport and SFS lease costs had been mostly offset set in year by £170,000 from the SFS vehicle reserve. The variances were due to the increased costs of borrowing within the finance lease payments combined with an increase in vehicle purchase prices that SFS have experienced.

·         Pay and Display income had continued to follow the 2023/24 trend of slightly lower volumes, combined with the effect of the capital works being undertaken at Queen Street car park albeit we saw an increase in car park income at Green Lanes as a result of this displacement. We are now forecasting an overall £200,000 variance for the year.

·         Building Control income was still forecast to be £70,000 down on budget, but due to a number of recent larger planning applications we were now forecasting planning income to be in line with the original budget.

·         Recycling Sales had seen a downturn in quarter 3, however this was still up on the original budget and we would continue to monitor the income closely. We were expecting income receivable from recycling sales to increase once the new baler was operational.

·         We were now estimating income growth from Business Rates to be an additional £200,000.

·         As at 1 April 2024 the Collection Fund reserve balance held was £1,790,180. 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 out to bring the revenue account back to the budgeted figure for the year; the deficits/surpluses were recovered/distributed in the following financial years. This  ...  view the full minutes text for item 105.

Report by Director of Resources and Deputy Chief Executive (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Review of Fees and Charges for Services 2025-26.

The Finance Manager highlighted the following:

·         This year the guidance was to increase fees and charges by 3%, although some fees were set by statute and those would be set nationally.  Other variations to the 3% increase were set out in sections 4.3 to 4.8 of the report.

·         Building Control fees had been raised by an average of 13.42% and rounded to the nearest pound, this was to ensure the revenue income recouped the actual cost of providing the service, were competitive in the sector and provided the Partnership with protection against additional temporary staffing costs that were likely to be experienced during the year, as detailed in Appendix B of the report.

·         Land Charges fees had been set to recoup the cost of providing the service, the recommended fees for the land charges service was estimated to recover all the costs and break even, as detailed in Appendix D of the report.

·         The majority of Environmental Health and Housing services were set by statute or set to recover costs.  A minor exception to this was that there was no planned increase on charges for “Health and Food Certificates” as detailed in Appendix E of the report.

·         Cemeteries fees were set to increase by 6%, (3% inflationary uplift, plus an additional 3%).  This was to enable the fees to be brought closer in line with comparative figures around the County, as detailed in Appendix F of the report.

·         The Garden Waste service charge was to remain unchanged at £60, due to the £5 increases in the previous two financial years (2023/24 and 2024/25), as detailed in Appendix J of the report.

·         Street Name Plates had had a simplification of its charging structure, including an uplift to reflect no inflationary increase in the previous seven years.  Fees were now set to recoup the cost of providing the service, as detailed in Appendix P of the report.

·         The net revenue changes from the above charges was estimated to produce £25,000 of additional income, which had been included within the draft 2025/26 revenue budget, for consideration as an item included within this agenda.

RECOMMENDED:

(a)  That Council approve the 3% increase, (some rounded), in fees for the 2025/26 financial year, for the following services:

                     I.        Allotments – as detailed at Appendix A of the report.

                    II.        Trade Waste – as detailed at Appendix C of the report.

                  III.        Sports Pitches – as detailed at Appendix G of the report.

                  IV.        Pannier Market – as detailed at Appendix H of the report.

                   V.        Bulky Household Waste Collections – as detailed at Appendix I of the report.

                  VI.        Pre-application Planning Fees – as detailed at Appendix K of the report.

                VII.        Dog Waste – as detailed at Appendix K of the report.

               VIII.        Event Licence – as detailed at Appendix M of the report.

                  IX.        Contractor Licence –  ...  view the full minutes text for item 106.

Report by Director of Resources and Deputy Chief Executive (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Revenue Budget 2025-26, Capital Programme and Medium Term Financial Strategy 2025-26 to 2030-31.

The Lead Member for Resources and Commercialisation addressed the Committee to give a brief introduction as follows:

·         We had achieved a balance budget.

·         Garden waste charges were to remain the same.

·         We provided a very affordable bulky waste service.

·         The National Insurance changes to employer’s National Insurance had produced an additional £325,000 cost to the Council.

·         Green Lanes shopping centre continued to provide an income.

·         It had to be assumed going forwards that there would be no increase in funding from Central Government so the Council would need to find more ways to become financially self-sufficient.

The Director of Resources and Deputy Chief Executive gave a presentation, and highlighted the following:

·         The Government’s Finance Policy Statement issued in November 2024 guaranteed that no council would see a cash reduction in its Core Spending Power (CSP).  The increase for local government was 3.2% in real terms.

·         All councils were to receive additional income from Extended Producer Responsibility (EPR) for Packaging payments.

·         Confirmed £233m new funding for homelessness prevention – also consolidating main rough sleeping and single homelessness grants into a single grant outside of settlement.

·         Council tax increases would remain at 2.99% or £5 (whichever was higher).

·         Rural Services Delivery grant was to be abolished – this was currently paid to 50 district councils and worth £15m in total.

·         Services grant would also be abolished – this was currently paid to all districts and worth £3.5m in total.

·         A new £600m recovery grant – targeted councils with highest levels of deprivation – would likely only be open to a minority of districts.

·         Councils would be compensated for the cost of the Employers National Insurance increase – for directly employed staff only.

·         There would be a fundamental reform to the local government funding model after 2025/26.

·         Government would launch a consultation in December on a new approach to allocation funding (Fair Funding) and a further technical consultation on resetting business rates in January.

·         The Core Spending Power total for England was 6%.  By region, the South West Core Spending Power was 5.4% and by authority type North Devon Council, being a Shire District, the Core Spending Power was however only 0.3%.  In comparison, the CPI (Consumer Price Index) inflation to November 2024 was 2.6%.

·         The draft budget has assumed an increase on Council Tax of 2.99%.  The overall Council Tax Increase of £708,000 was broken down as £223,000 from the 2.99% increase and £485,000 from increase in tax base (of which £353,000 came from the second homes premium and £132,000 tax base).

·         The Business Rates draft budget figure came from the Retained Growth (made up of £2m North Devon Business rates growth, £680,000 Renewable Energy Schemes and £350,000 Devon pool retained income). 

·         Giving an overall figure of £3.030m factored into the draft budget.

·         Revenue Support Grant and Baseline Funding – additional  ...  view the full minutes text for item 107.

Report by Head of Governance (attached).

The Committee considered a report by the Head of Governance (circulated previously) regarding the Treasury Management Strategy Statement 2025-26.

The Head of Governance highlighted the following:

·         This Treasury Strategy covers the borrowing and investment requirements of the Council for the year 2025-26.

·         In terms of the Capital Financing Requirement (CFR), the Treasury Management Strategy ensured the Council was able to meet its borrowing needs to cover the capital programme plans.

·         It was estimated that the borrowing requirement (CFR) at the end of the financial year 2024-25 would be circa £34m increasing to approximately £40m for the year 2025-26.

·         To cover the £40m CFR it was projected to borrow £22m through external borrowing, £5m borrowing through finance lease arrangements, for our vehicle fleet and finally £13m through our own reserves and cash flows (internal borrowing).

·         Current external borrowing for 2024-25, excluding finance leases, stood at £8m but an additional £7m short-term borrowing was being projected by year-end to cover the approved capital costs.

·         Any slippages to the capital programme expenditure and or additional capital receipts or grants received would reduce the amount of actual borrowing undertaken.

·         The authorised limit for 2025-26 for the Council to borrow was set to £42.5m.

·         In terms of our investment strategy, there were no plans to change the way we currently invested and section 7.1 of the report detailed the guidance the Council adheres to in regard to the investment policy.

·         The Council’s investment priorities remain as:

1.    Security,

2.    Portfolio liquidity; and

3.    Yield or return

RECOMMENDED to Full Council that the Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement and Annual Investment Statement 2025-26, including the Treasury Management and Prudential Indicators for 2025-26 to 2027-28 be approved.

Report by Head of Governance (attached).

The Committee considered a report by the Head of Governance (circulated previously) regarding the 10-Year Capital Strategy 2025 to 2035.

The Head of Governance highlighted the following:

·         The 10-Year Capital Strategy looked at the Council’s long-term sustainability of its capital ambitions, affordability and risk management.

·         Business as usual projects such as vehicle fleet replacement and ICT improvements impacted on our long-term borrowing plans.

·         The Strategy covered the next ten years and the projection for our Capital Financing Requirement was estimated to remain at circa £37m in 2034/35.

·         This would be funded by £23.5m external borrowing, £7m financial lease borrowing and £6.5m internal reserves and cash flow (internal borrowing).

·         The cost of borrowing was set to remain at around £3m a year over the long-term period of this forecast.

RECOMMENDED that Full Council approve the Capital Strategy 2025-26 to 2034-35.

To note the urgent decision taken by the Director of Resources and Deputy Chief Executive in accordance with paragraph 3.45, Annexe 2, Part 3 of the Constitution.

·         Amendment to Off Street Parking Order 2024 and Off Street Parking Order 2025.

The Committee noted the urgent decision that had been made by the Deputy Chief Executive in accordance with paragraph 3.45, Annex 2, Part 3 of the Constitution (circulated previously) regarding the Off Street Parking Orders 2025.