Agenda item

Members of the Committee are requested to bring their copy of the agenda for the Executive meeting on 10^th September 2014.

Report CSD14121

The Committee considered the following reports on the part 1 agenda for the meeting of the Executive on 10^th September 2014.

(5)  Budget Monitoring 2014/15

Report FSD14060

The Committee considered the second budget monitoring report for 2014/15, based on expenditure and activity levels up to July 2014. The report sought authorisation for the release of particular sums from Central Contingency and for a number of carry-forward requests.

The projected net overspend on services for 2014/15 was now £4.351m, with full year cost pressures of £5.5m. It was suggested that officers were being over-optimistic in the setting of budgets and in projecting savings from invest to save schemes. The Director of Finance’s representative summarised the rigorous procedures in place to identify cost pressures and justify any growth items. She assured the Committee that budgets were realistic, but there were inevitably changes in activity levels that could not always be predicted. When this happened Chief Officers had to take action in-year to ensure that cost pressures were reduced or balanced by savings elsewhere in their budgets. 

In the current year most of the pressures were within the Care Services budget and the Chairman of the Care Services PDS Committee confirmed that there had been significant unexpected pressures. She was expecting to see an updated budget report in the next few days. Issues for Care Services included the costs of new care placements, the need to review emergency placements for older people on time and delays in implementing anticipated savings. 

A Member appealed for all budget documents to be in the same format across committees - officers confirmed that the templates drawn up by the Costs and Charges Working Group were being used in the formation of budgets. 

Members also commented on the anticipated overspend in the Adult Education budget and possibilities for reducing waste collection costs.

The Chairman requested a summary of the significant changes in costs since the budget had been set.

RESOLVED that the recommendations be supported.

(6) Treasury Management – Investment Strategy Review and Q1 Performance 2014/15

Report FSD14057

The report summarised treasury management activity during the quarter ending 30^th June 2014 and recommended changes to the Council’s Treasury Management Investment Strategy, which would require approval by full Council. These were an increase in the total investment limit for the two part-nationalised banks, Lloyds and Royal Bank of Scotland, to £80m each and in the maximum investment period to three years; a reduction in the minimum credit rating for corporate bond investments to A-; and the addition of Diversified Growth Funds as permitted investments, with a total investment up to £10m.

Councillor David Livett criticised the graph showing relative investment risk provided by the Council’s advisors, Sector, and suggested that it would be more appropriate to limit investments to Investment grade, rather than A-, which was not used by Moody’s. He was also against the use of Diversified Growth Funds, which he felt included risky investments in derivatives, currency positions and overseas investments which few people would be able to understand. 

The Resources Portfolio Holder defended the recommendations and the expertise of the officers and the Council’s external advisors making them. He stated that the Council remained risk averse and would only take careful and calculated risks to deliver improved returns. 

RESOLVED that the recommendations be supported.

(Councillor David Livett requested that his objection to the use of diversified growth funds be recorded.)

(7)  Gateway Report – Proposals for Re-Tendering of the Churchill Theatre

Report DRR14/075

The report provided an overview of the current arrangements for the management of the Churchill Theatre, which expired on 3^rd April 2016, and the process and timetable for the lease, which was proposed to be for twenty-five years, to be re-tendered.

A Member questioned whether a theatre was needed in Bromley, but other Members countered that the theatre contributed to the economy of the town centre and the borough as a whole, and also worked with children and the elderly. It was suggested that businesses in the town centre, including Intu, should be encouraged to develop closer relationships with the theatre.

RESOLVED that the recommendations be supported.

(8)  Land at Upper Elmers End Road and Croydon Road – Application for Registration as a Town or Village Green

Report CSD14132

At its meeting on 9^th July 2014 the Development Control Committee had considered a report advising them of an application to register the triangle of land at Elmers End bounded by Upper Elmers End Road, Croydon Road and Elmerside Road as a town green. The Committee had accepted the recommendation that, as the land did not meet the legal criteria for a third party registration, the application should be rejected. The Development Control Committee nevertheless considered that the land should be registered by way of a voluntary registration by the Council in its capacity as owner of the land.

Members commented that there was little or no evidence to support registration as a town green, that registration might inhibit any future opportunities for improving the road layout and that there was probably no friends group willing to assist with maintenance of the land. Other Members commented that the wishes of local residents should be supported, and that there were examples of roundabouts being developed. 

RESOLVED that the Executive be recommended not to register the land as a town or village green.