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MAIDSTONE BOROUGH COUNCIL
RECORD OF DECISION OF THE Cabinet
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Decision Made: |
18 May 2011 |
INFORMATION STRATEGY 2011 - 2014
Issue for Decision
To consider the adoption of the Information Strategy 2011 – 2014.
Decision Made
That the Information Strategy 2011 – 2014 as set out at Appendix 1 to the report of the Head of ICT Services be approved.
Reasons for Decision
Citizens want to see better value, more choice and improved response from the Council. Technology has a major contribution to make in enabling the Council to meet these increasing expectations and rise to the challenges, now and in the future.
The Spending Review 2010 by the new government introduced huge cuts to local government budgets. It is crucial that the Council wrings every possible benefit from the use of technology as a strategic tool in order to meet this challenge.
The Information Strategy is therefore a key document that ensures that technology underpins the Council’s priorities and core themes, supports and enables the Council’s efficiency and transformation agenda, and provides a framework for the corporate control and management of its resources.
The Council’s Information Strategy is a rolling three year document, reviewed annually to ensure it remains relevant. In presenting the Strategy for 2011 – 2014 it is important to recognise that the Council’s investment in technology has continued to transform the way in which the Council provides services to citizens, businesses and communities.
This year’s review of the Strategy is set against the national context of a continued drive for greater efficiency and more customer focused services. Using technology to deliver better public services is therefore the key focus of this strategy term, and to achieve this we will continue to promote and encourage the take-up of our e-services by customers; engage with managers and service providers to exploit the efficiencies available from existing and new systems; improve business processes through the introduction of technology, and encourage staff to make modern and efficient ways of working part of “the day job”; enable Members and partners to access the Council’s information and services electronically and encourage their constituents to do the same; exploit the full potential of partnership working and pursue opportunities for ICT to support shared services in Mid Kent, and across Kent.
This will provide real benefits in terms of efficiency and effectiveness. Over the next 12 months the Council will further exploit the opportunities provided by modern technology to improve services through business improvement initiatives.
Alternatives considered and why rejected
It is not thought appropriate that the Council should not use technology as a strategic tool with which to develop its role within the community, and meet the aspirations of its stakeholders.
Background Papers
None
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Should you be concerned about this decision and wish to call it in, please submit a call in form signed by any two Non-Executive Members to the Head of Change and Scrutiny by: 25 May 2011 |
MAIDSTONE BOROUGH COUNCIL
RECORD OF DECISION OF THE Cabinet
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Decision Made: |
18 May 2011 |
HAZLITT ARTS CENTRE WORKS
Issue for Decision
To consider expenditure on essential work to the boilers and the electrical installations with the resultant building regulation works at the Hazlitt Arts Centre (HAC).
Decision Made
1. That the boilers and associated pipework and controls, electrical switchgear and mains distribution panels are replaced and enabling health and safety works are carried out, all as identified in the report by Mervyn Hayes Consultants set out in Appendix A to the joint report of the Assistant Director of Regeneration and Cultural Services and the Theatre and Events Manager and at the approximate costs set out in that Appendix, plus a contingency of 10%.
2. That the necessary urgent works to the HAC are funded from balances, and the monies recouped through either reduced subsidy and/or increased income.
Reasons for Decision
The boilers, associated pipework, controls, air handling systems and electrical installations at the Hazlitt Arts Centre are known to be coming towards the end of their useful life and one boiler has already failed. Maintenance costs and the risk of failure are also increasing. Consultants were appointed to advise on the most efficient way of ensuring the business of the Hazlitt Arts Centre continues and to examine ways of improving energy efficiency and comfort levels.
In the course of the investigation into the operating systems at the HAC the contractor identified potential failure and capacity issues with the main electrical intake board which could necessitate shutting the building down for electrical work to take place which could affect business continuity. There are health and safety concerns about the risk to contractors instructed to work on this equipment. It is therefore thought appropriate that the main board is replaced as part of this work.
The consultant’s report confirmed that after over fifteen years of service, in addition to the boiler that has already failed, the remaining three are also at risk of failing and that there is a strong possibility that one or more could fail during the winter of 2011/12. The existing boilers are no longer in production and, as a result, it has not been possible to find any replacement parts for the boiler that has failed. Therefore, an efficient heating solution needs to be in place before the heating is turned on for the busy winter season, which includes the pantomime.
The consultant also identified potential problems with the existing pipework and radiators which are over thirty years old. The system was flushed out in the summer of 2010 in the hope of improving heating efficiency, however, this has resulted in exposing weaknesses in the pipework causing leaking in some areas. It is therefore considered expedient to replace the elderly pipework and radiators at the same time as the boiler plant to ensure maximum efficiency of the new system. Additionally modern boilers are recognised to be extremely sensitive and debris from the old pipework could seriously compromise the new equipment.
The programme of work detailed in the joint report of the
Assistant Director of Regeneration and Cultural Services and the Theatre and
Events Manager will necessitate some essential building works to be undertaken
to ensure the health and safety of the contractors and those carrying out any
further works or maintenance. The schedule of work that is necessary is
attached at Appendix ‘A’ to the joint report of the Assistant Director of
Regeneration and Cultural Services and the Theatre and Events Manager.
Potential Options
The Hazlitt Art Centre houses the only purpose built
performance spaces in the Borough and it contributes significantly to the
economic (over £2m) and social life of the Town and as such it contributes to
the Council’s key objectives of boosting the local economy and making the Town
an attractive place for residents and visitors.
In recognition of the value that the HAC provides to the
Town, but also the cost of running it, the Council is in the process of looking
at alternative ways of operating it but at a reduced cost. That work is in its
early stages and no conclusions on future governance models can be drawn from
it. The question of the repairs is also delaying that work, because of the
need for detailed advice on future governance.
The cost of the urgent works is set out in the report and is significant and unbudgeted. The options that face the Council are:
i.
Not to carry out the works; this risks failure of the heating system and
the threats to safety that will rise from not carrying out the works. The
failure of the heating system, particularly in winter, is likely to lead to the
closure of the Theatre.
ii. To close
the Theatre – this approach would lose the facility to the Borough and
undermine the Council’s strategic objectives. It would also result in the loss
of staff at the HAC and elsewhere in the Council at a maximum redundancy cost
of £195,000, and a recurring minimum residual cost of £206,350 per annum.
iii. Delay the
repairs until the governance model is resolved. The need to repair the HAC
heating and power systems and the consequential cost is unlikely to make the
HAC an attractive proposition to any future operator as clearly there is a need
to reduce the cost of the operation. Any potential operator would have to
achieve a significant income to cover the cost of the repairs either directly
or through a loan. However, an operator other than the Council might be able
to obtain some grant funding towards the repair. The risk of system failure
would also remain.
iv. Fund the works
from revenue balances. The approved capital programme agreed by Council in
March 2011 does not allocate resources to the theatre. The provisional revenue
outturn reported elsewhere on this agenda shows a significant favourable
variance that will be added to balances for 2011/12. The Medium Term Financial
Strategy already predicts revenue balances in excess of the minimum working
balance of £2.3m. With the addition of the revenue underspend from 2010/11 to
balances the predicted unallocated resources will be in excess of £1.3m and
Cabinet could provide funding from balances to carry out this urgent work.
Options (i) and (iii) outlined above risk the failure of the
systems and risks to safety and potential closure of the Theatre whilst urgent
repairs are carried out which at peak times will create considerable disruption
to audiences and loss of income and could cause damage to the Council’s
reputation.
Options (ii) – the closure of the Theatre – will have
financial consequences immediately and into the future, and also erode the
Town’s economic and social base.
Option (iv) of funding the repairs from balances enables:-
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The HAC to be retained for the future to the benefit of the
Borough;
·
For the work to be undertaken during the summer of 2011, causing
the least disruption to audiences;
·
For any impediment because of the cost of repairs to future
governance to be removed.
In relation to recouping the costs of these repairs this
should be explored as part of the arrangements for the future governance of the
HAC and could take the form of a reduced subsidy and/or a share in the profit
over a period o0f time to be agreed.
It is therefore recommended that Option (iv) is pursued and
the repairs set out in Appendix ‘A’ of the joint report of the Assistant
Director of Regeneration and the Cultural Services and the Theatre and Events
Manager are carried out, over the summer of 2011, and those repairs are funded
from balances.
Alternatives considered and why rejected
The potential options have been set out above and the
effects examined. The reasons for not opting for options (i) to (iii) have
been outlined, and it is considered that they are unsuitable alternative
courses of action.
It may be possible to shut down the Exchange Studio for the duration of the winter of 2011/12 and just heat the Hazlitt Theatre with the remaining three boilers. However, the consultant and the property services section consider that that there is a high risk of these boilers failing resulting in a total shut down of the business.
Background Papers
None
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Should you be concerned about this decision and wish to call it in, please submit a call in form signed by any two Non-Executive Members to the Head of Change and Scrutiny by: 25 May 2011 |
MAIDSTONE BOROUGH COUNCIL
RECORD OF DECISION OF THE Cabinet
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Decision Made: |
18 May 2011 |
PROVISIONAL REVENUE AND CAPITAL OUTTURN 2010/11
Issue for Decision
1. To consider the provisional revenue and capital outturn figures for 2010/11 and the impact of these figures on future financial planning.
2. The provisional figures on treasury management and other balance sheet items were also considered.
Decision Made
1. That the provisional outturn figures for revenue and capital for 2010/11 be noted.
2. That the provisional funding of capital expenditure in 2010/11 be agreed.
3. That the carry forward of revenue resources of £1.73m for the financing of future capital expenditure be agreed.
4. That the carry forward of grant funding as detailed below be approved.
|
Service |
Balance of Grant £ |
Description |
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Museum |
2,400 |
Two grants: · Japanese Access · Regimental Association Bartlett request |
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Playground Improvements |
12,502 |
Lottery Grant for Youth Involvement Project |
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Community Development – Sport |
17,600 |
Five Grants: · KCC Sports Development – Clubmark · KCC – Joint Youth Agreement · Home Office – Community Safety, Boxing Development · Youth Opportunity Fund – DMAX · FLO Referrals – Hotfoot |
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Waste |
170,000 |
WRAP grant for food waste service |
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Pollution Control |
22,000 |
Air Quality Grant |
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Planning & related services |
168,700 |
Housing & Planning Delivery Grant |
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Youth Forum |
700 |
Youth Opportunity Fund – Dance Project |
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Community Safety |
44,000 |
Multiple Initiatives from partnership funds |
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Social Inclusion |
26,000 |
Two Grants: · South East Employers – LSP Development · West Kent PCT – Heath Preventative Fund |
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Business Development |
363,600 |
Growth Point Revenue Grant |
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Sustainable Development |
36,100 |
Performance Reward Grant |
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Total |
863,602 |
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5. That the revenue carry forward requests as set out in Appendix B of the report of the Head of Finance and Customer Services from 2010/11 into 2011/12 based on the previously agreed criteria be agreed.
6. That the impact on the balance sheet of the provisional outturn 2010/11 be noted.
Reasons for Decision
The purpose of the report of the Head of Finance and Customer Services is to facilitate good financial management. The report gives provisional figures for revenue and capital outturn, to allow early consideration of any issues resulting from them not only in the current financial year but in terms of any impact on the Medium Term Financial Strategy.
Final expenditure figures for revenue and capital will be
reported to June 2011 Cabinet meeting, along with the key issues from the
Statement of Accounts and Treasury Management performance. These reports will
be followed, at the July Cabinet Meeting, by the initial Budget Strategy report
for the following financial year and the Medium Term Financial Projection for a
further four years.
Revenue
Appendix A to the report of the Head of Finance and Customer
Services is a summary of the provisional revenue outturn for 2010/11 compared to
the revised estimate approved by Cabinet in February 2011 and Council in March
2011. Also shown is the amended revised estimate, taking into account any
changes in capital financing costs necessitated by changes in actual capital
expenditure. This is provided to ensure a more accurate comparison with the
outturn position, as it eliminates fluctuations in capital spend. Appendix A
to the report of the Head of Finance and Customer Services shows a net
unadjusted underspend of £3.99m.
Appendix A to the report of the Head of Finance and Customer
Services also details the variance by portfolio and the major reasons for the
variances are as follows:
a) Leader – the savings as a result of the early changes to the establishment have been accumulated within the contingency budget in this portfolio. This portfolio also holds the unused contingency of £0.2m for concessionary fares. Together these total £0.56m;
b) Corporate Services – the budget for revenue support to the capital programme is within this portfolio and a balance of £1.73m remains of this sum and is dealt with in detail later in this report;
c) Environment – the budget variance represents the balance of WRAP funding for the food waste service and the underspend on concessionary fares of £0.36m;
d) Regeneration – the
under spend represents the balance of growth point revenue grant. This grant
has been programmed for expenditure on schemes over a minimum three year
period. A re-assessment of scheme priorities will occur in 2011/12 to ensure
focus on the strategic plan priorities.
Proposals for the financing of the capital programme,
detailed later in the report of the Head of Finance and Customer Services
include the use of capital receipts and grants. This means resources
identified from revenue budgets to finance capital expenditure are not required
until 2011/12. The variance of £1.73m remains essential to the financing of
the future capital programme. It is recommended that this money is set aside
for this use in 2011/12, in order for the capital programme to remain
affordable.
After adjusting the variance of £3.99m for the unused
capital support, detailed above, a balance of £2.26m remains. Of this sum
there is £0.86m of grant aid that has not been spent in 2010/11 and will be
carried forward for use on the specified schemes in 2011/12. Following this
carry forward, £1.4m remains of the variance.
Appendix B to the report of the Head of Finance and Customer
Services is a schedule of provisional carry forward requests, into 2011/12,
totalling £0.25m. These have been categorised according to the criteria used
for decision making by Cabinet last year. This gives two categories in the
table:
a) Request where a contractual commitment exists;
b)
Other requests.
If the full list of requests for carry forward is approved, the balance available for other actions or transfer to general balances is £1.15m.
The joint report of the Assistant Director or Regeneration
and Cultural Services and the Theatre and Events Manager, referring to urgent
works to the heating system at the Hazlitt Theatre, considers this revenue
underspend as one option to identify £0.31m of funding for these works.
Capital
Appendix C to the report of the Head of Finance and Customer
Services is a summary of capital spend against the revised estimate. This has
identified only minor slippage since the programme was agreed by Council in
March 2011. This figure is the net effect of slippage into and from 2011/12.
The expenditure outlined at Appendix C to the report of the
Head of Finance and Customer Services can be funded from capital resources.
Proposed funding is summarised in the following table:
|
Resources |
£,000 |
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Capital Receipts |
4,063 |
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Capital Grants |
3,648 |
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Revenue |
48 |
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Total |
7,759 |
This funding proposal is developed on the basis of using the most flexible resources last. This means that grants and capital receipts have been utilised in preference to revenue support. The consequence of this decision is detailed in paragraph 1.4.2 of the report of the Head of Finance and Customer Services, which recommends the carry forward of revenue resources set aside to finance capital expenditure as this is the resource that remains unused.
Balance Sheet
The provisional outturn figures have an impact on various
elements of the Balance Sheet and these are summarised as follows.
Asset Sales
The revised estimate assumed asset sales for 2010/11 of
£5.6m. The provisional outturn figures show cash backed Capital Receipts, net
of costs, of £5.3m. This is a shortfall of £0.3m which relates to cost such as
the demolition of the Tonbridge Road sites, which regulations allow to be
offset against sale proceeds. Not all available receipts have been utilised in
the financing of the capital programme, these receipts will be required to
finance future years’ expenditure.
Investments
The Treasury Management Strategy report to Cabinet agreed in
February 2011 anticipated year end investments of approximately £18.0m. The
actual investment at March 2010 totalled £21.0m. The provisional assessment of
the increase shows that the main elements of the increase include the
following:-
|
Reason |
£000 |
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Revenue Slippage as detailed in the report |
1,000 |
|
Grant to be repaid to DWP/ DCLG |
2,000 |
The overall changes to the level of investments will have no
impact on the Strategy itself. The changes will have a short term impact as
the additional resources will be required during the course of 2011/12.
Daily monitoring of cash-flow has confirmed that the
Prudential Indicators that Council set for 2010/11 have been complied with.
Fixed assets
The capital investment achieved in 2010/11 resulted in
investment in the Council’s property portfolio of £4.06m out of a total spend
of £7.76m. The balance of the spend is in areas such as support for social
housing, renovation grants, etc which do not contribute to the Authority’s
asset base and have been written off, through the revenue account, as deferred
charges.
Useable capital receipts
As a result of the level of capital investment and the level
of capital receipts received in 2010/11, the level of useable capital receipts
has decreased from £2m at March 2010 to £1.5m at March 2011.
Balances
Balances are set out in Appendix D to the report of the Head
of Finance and Customer Services. The overall level of balances at March 2011
will be £10.0m, compared to £8.4m at March 2010. However, after allowing for
the commitment to carry forwards and the planned use in 2011/12, the
provisional level of uncommitted balances is £3.8m.
Alternatives considered and why rejected
The reporting of revenue outturn could wait until Cabinet in June 2011, when final figures are available in the Statement of Accounts prior to external audit; however, this is not thought appropriate as providing provisional outturn to Cabinet at this time facilitates good financial management and aids consideration of issues within the current financial year and helps inform future budget strategy.
Background Papers
Budget Monitoring report 2010/11
Cabinet quarterly monitoring report 2010/11
Agresso General Ledger system reports
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Should you be concerned about this decision and wish to call it in, please submit a call in form signed by any two Non-Executive Members to the Head of Change and Scrutiny by: 25 May 2011 |