Agenda and minutes

Venue: Council Chamber, County Offices, Newland, Lincoln LN1 1YL. View directions

Contact: Emily Wilcox  Democratic Services Officer

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Items
No. Item

109.

Apologies for Absence/Replacement Members

Minutes:

Apologies for absence were received by Councillor R B Parker.

 

It was reported that, under Regulation 13 of the Local Government (Committee and Political Groups) Regulations 1990, Councillor Mrs J E Killey had been appointed as a replacement for Councillor R B Parker, for this meeting only.

 

It was also noted that Councillor M J Hill OBE had sent his apologies.

 

110.

Declarations of Interest

Minutes:

There were no declarations of interest.

 

111.

Minutes of the meeting held on 27 January 2022 pdf icon PDF 577 KB

Minutes:

RESOLVED:

 

           That minutes of the meeting held on 27 January 2022 be approved as a       correct record and signed by the Vice-Chairman. 

 

112.

Announcements by the Chairman, Executive Councillors and Chief Officers

Minutes:

The Vice-Chairman announced that he had attended the meeting of the Executive on the 8th February on behalf of the Chairman and presented the Board’s comments on the Council’s Budget Proposals for 2022/34 and had highlighted the Board’s points in relation to the impact of the reduction for the Highways Maintenance Grant as well as the pressures on Adult Social Care and the introduction of the Council’s Smarter Working Policy and the potential savings that could be achieved.

 

113.

Consideration of Call-Ins

Minutes:

None had been received.

 

114.

Consideration of Councillor Calls for Action

Minutes:

None had been received.

 

115.

People Management Update - Quarter 3 pdf icon PDF 522 KB

(To receive a report from Tony Kavanagh, HR and Organisational Support, which provides an update on the HR Management Information (HRMI) and on corporate HR projects)

Minutes:

Consideration was given to a report by the Assistant Director – HR and Organisational Support, which invited the Board to consider an update of the HR Management Information (HRMI) and on corporate HR projects.

 

Additional pressure on staffing as a result of the pandemic had led to a substantial increase in agency spend to £4.26m at the end of Quarter 3. The total agency spend was expected to be around £5.77m by the end of the financial year, which would be an increase of £880,000 compared with 2020/21.

 

Sickness absence had increased in Quarter 3, with the total number of days lost per FTE for Directorates excluding Fire and Rescue being 7.63, which exceeded the target of 7.5 days per FTE. The number of absences attributed to Cold, Flu and viruses rose steeply from September to November where the seasonal illnesses were further increased by Covid-19 cases and chest infections as well as an increase in mental health related absences, which were the largest cause of  sickness.

 

Support for employee mental health continued to increase and included the use of mental health first aiders, resilience workshops and mindfulness sessions for staff to attend. In addition to their usual service, the Employee Support and Counselling team were providing ‘wellbeing check ins’ for staff and were developing peer support groups to help colleagues experiencing grief and loss.

 

The ‘People Strategy’ was now in effect with the main focus at present being the Council’s ability to manage the challenges around attraction and retention.

 

There had been many positive responses within the results of the employee survey, including that line managers were available and approachable, commending the Council’s health and wellbeing offer and the Council’s ability to recognise and support employees.

 

Areas that had not improved were:

  • the feeling that colleagues had a fair opportunity to progress and develop their career
  • opportunities to use their strengths and talents in their role
  • the Council's values providing a clear framework for a team to operate in
  • LCC taking a pro-active and preventative approach to support health and wellbeing
  • maintaining a good level of resilience and wellbeing most of the time

 

The Smarter Working Policy was now fully operational, with many teams operating  hybrid working meaning a mix of working from home and working in an office environment across the Council. The Board was assured that there had been no additional cost burdens as a result of the implementation of the smarter working policy.

 

Consideration was given to the report and during the discussion the following points were noted:

 

  • The smarter working policy offered a hybrid approach, with the facility to support employees to work in the office if they wished to. The Board was reassured that employees experiencing difficulties with their mental health as a result of working from home would be supported.
  • Staff turnover rates had been much lower throughout the pandemic which was thought to be due to uncertainty within the job market nationally. However, as the country moved to the recovery phase of  ...  view the full minutes text for item 115.

116.

Corporate Plan Success Framework 2021/22 - Quarter 3 pdf icon PDF 389 KB

(To receive a report by Caroline Jackson, Head of Corporate Performance, which invites the Board to consider a report on the Corporate Plan Success Framework 2021/22 - Quarter 3 which is due to be considered by the Exceutive on 1 March 2022)

Additional documents:

117.

Treasury Management Performance 2021/22 - Quarter 3 to 31 December 2021 pdf icon PDF 701 KB

(To receive a report by Karen Tonge, Treasury Manager, which details the treasury management activities and performance for Quarter 3 of 2021/22 to 31 December 2021)

Additional documents:

Minutes:

Consideration was given to a report by the Treasury Manager, which invited the Board to consider a report which detailed the treasury management activities and performance for Quarter 3 of 2021/22 to 31 December 2021, comparing this to the Treasury Management Strategy and Annual Investment Strategy 2021/22.

 

Forecasts expected there to be two to three increases of 0.25% in short term rates over the next two years, the timing of the rises would be difficult to predict due to inflation spikes and the potential for weak growth during the period.

 

Long term rates had fallen in November with the announcement of Omicron and Covid-19 measures and continued to fall in December as demand for gilts by Pension Funds increased. Long term rates had risen again in January to levels at which they started from at the start of the year. The overall balance of movement in long term rates was still for a gradual increase over the next three years by around 0.10% per annum.

 

Investment levels remain high and investment benchmarks continue to be exceeded. The Weighted Average Maturity of Funds (WAM) of the fund was falling in line with an increasing interest rate environment.

Following a revision of the Borrowing Requirement to take account of rephasing of capital spend, target changes, underspends and internal borrowing there will be no external borrowing undertaken in 2021/22.

 

A total of £34.5m of temporary borrowing was undertaken in the period at an average rate of 0.0387%. It was expected that no temporary borrowing would remain outstanding on 31 March 2022.

 

The Board was advised that CIPFA had issued revised Prudential and Treasury Management Codes on 21 December 2021 and expected the core tenets of the new Codes to be adhered to with immediate effect. CIPFA had allowed a soft launch for the reporting requirements which required full compliance from 2023/24.

 

Consideration was given to the report and during the discussion the following points were noted:

 

  • There was evidence to suggest that there would be a peak in inflation around April 2022 and a subsequent decrease during the remainder of the calendar year. The current expectation of high levels of inflation had prompted discussions on an increase in base rates.
  • Global events were likely to have an impact due to the uncertainty of the markets at the current time.
  • The Board acknowledged the financial difficulties being faced by some residents as a result of inflationary rises.
  • It was too early to say whether Russia’s military invasion of Ukraine would have an impact on inflation within the UK and it was recognised the impact would be felt globally. Members were reassured that Officers would monitor the situation over the coming months.

 

RESOLVED:

 

              That a summary of the comments made during the debate be passed to the Executive Councillor for Resources, Communications and Commissioning.

118.

Treasury Management Strategy Statement and Annual Investment Strategy 2022/23 pdf icon PDF 423 KB

(To receive a report by Karen Tonge, Treasury Manager, which invites the Board to consider a report on the Treasury Management Strategy Statement and Annual Investment Strategy 2022/23 which is due to be considered by the Executive Councillor for Resources, Communications and Commissioning between 14 – 18 March 2022)

Additional documents:

Minutes:

Consideration was given to a report by the Treasury Manager, which invited the Board to consider a report on the Treasury Management Strategy Statement and Annual Investment Strategy 2022/23 which was due to be considered by the Leader of the Council (Executive Councillor for Resources, Communications and Commissioning) between 14 and 18 March 2022.

 

The Board was referred to the table at paragraph 2.1.3 of Appendix 1, which showed the Council’s net treasury portfolio position on 31 December 2021 compared to the start of the year, with associated average percentage costs/returns.

 

Investment returns were expected to increase in 2022/23 to around 1.25% by the financial year end and liquid investments such as Money Market Funds would see yields improve although there was the potential for a time lag compared to market yield increases. 

 

Borrowing interest rates had fallen to historically low rates as a result of Covid and Quantitative Easing operations which had increased recently, but remained at relatively low levels with little further increase in yields expected for the following year. Yields in all periods were relatively the same with value to be found at the short end of the curve or the long end. Due to unpredictability rates would remain volatile as markets react to events as they occured. There was still a gap of around 1% to 1.5% between short term rates and long term rates and so any external borrowing undertaken would therefore incur a cost of carry, i.e.) a revenue loss between borrowing costs and investment returns, in the medium term.

 

Members were reminded that the long term borrowing requirement plans for the Council come from the Council's capital expenditure and financing plans which formed part of the Council Budget each year.

 

The Treasury Management Strategy had been set for 2022/23 considering the anticipated economic environment and movement of interest rates for the year ahead. The strategies reflected the requirements of the CIPFA Code of Treasury Management, the CIPFA Prudential Code and the MHCLG Guidance on Local Government Investments.

 

The Director - Link Asset Services was provided with an opportunity to comment on the Council’s treasury management strategy, noting that the proposed internal borrowing position was in line with the liability benchmark and the means of borrowing proposed in the strategy continued to be a cost effective way forward. There was an expectation that higher investment levels would reduce and the Council would invest in cash safely and over time by keeping the portfolio at a shorter duration with more opportunities to obtain better rates throughout course of year. Link Asset Services were working with Officers to make the implementation of the new CIPFA code of practice as easy as possible whilst applying best practice.

 

The Board supported the recommendations to the Executive Councillor and during their discussion the following items were noted for consideration:

·       The impact of a rising short term rate environment means that as interest rates increase, money market fund rates and call account rates also increase, whilst temporary fixed borrowing which  ...  view the full minutes text for item 118.

119.

Revenue Budget Monitoring Report 2021/22 - Quarter 3 pdf icon PDF 387 KB

(To receive a report by Michelle Grady, Assistant Director – Finance, which invites the Board to consider a report on the Revenue Budget Monitoring Report 2021/22 - Quarter 3 to 31 December 2021 which is due to be considered by the Executive on 1 March 2022)

Additional documents:

Minutes:

Consideration was given to a report by the Executive Director – Resources, which invited the Board to consider a report on the Revenue Budget Monitoring Report 2021/22 - Quarter 3 which was due to be considered by the Executive on the 1st March 2022.

 

Members were advised that the overall revenue position was forecasting an underspend of £7.366m for 2021/22, which excluded schools and Covid-19. There had been a number of variances in the budget, including a large increase in the budget for Home to School Transport which was currently forecast

 

As Officers moved to the final stages of the budget setting process, potential underspends and contingencies had been identified and were set out within the report.

 

Members were advised that the Council had incurred a further £80 million of expenditure related to Covid related activities this financial year which had contributed to the underspend. Officers continued to carefully code expenditure where possible to utilise the Covid grants available.

 

The Board supported the recommendations to the Executive and during the discussion the following points were noted for consideration:

 

·       The additional £10m for highways maintenance in 2021/22 would not all be spent this year. The expenditure would be spent over a period of about three years on particular initiatives, such as for rural roads, drainage and gully work.

·       The £2.3m reserve allocated for Covid-19 was no longer required as some of the grant conditions had been relaxed which allowed for carry forwards of any Covid grants. The impact of Covid-19 had been built into the budget proposals for 2022/23 such as in relation to children in care. Some of the Covid grants related to Adult Care, and the medium term financial plan for Adult Care had identified ongoing costs from Covid-19, such as delays in services such as health checks and additional packages of care, which would be funded by carrying forward some grants such as outbreak management.

·       Of the estimated £7.366m underspend, it would be proposed that £900,000 would be transferred to a reserve for domestic abuse activities. With regards to the remainder of the underspend, a proportion would be the automatic 1% carry forward for each directorate which would leave an amount left over that would require a political decision regarding what to use it for based on officer recommendations.

·       The general reserve was a legal requirement whereas the financial volatility reserve and other reserves were earmarked reserves at the discretion of the Council. The target range of 2.5% to 3.5% of the annual budget only applied to the general reserve, and therefore the overall percentage of the annual budget for all the reserves was higher. The reserves were for different uses, with the financial volatility reserve used for covering shortfalls and financial uncertainty, but the general reserve would only be used as a last resort. There were a number of financial uncertainties facing the Council such as changes to business rates, adult social care reforms and increasing pressure on adult social care from rising numbers, reduction in  ...  view the full minutes text for item 119.

120.

Capital Budget Monitoring Report 2021/22 - Quarter 3 to 31 December 2021 pdf icon PDF 387 KB

(To receive a report by Michelle Grady, Assistant Director – Finance, which invites the Board to consider a report on the Capital Budget Monitoring Report 2021/22 - Quarter 3 to 31 December 2021 which is due to be presented to the Executive on 1 March 2022)

Additional documents:

Minutes:

Consideration was given to a report by the Executive Director – Resources, which invited the Board to consider the Capital Budget Monitoring Report 2021/22 - Quarter 3 to 31 December 2021.

 

The report set out the capital programme which covered a 10 year period and could be found at Appendix 1 to the report. An underspend of around £40m for 2021/22 was forecast for the capital programme which had included the movement of  costs related to the Spalding Western Relief Road.

 

The Board considered the report and supported the recommendations to the Executive.

 

RESOLVED:

 

  1. That the recommendations to the Executive, as set out in the report, be supported;

That a summary of the comments made be passed on to the Executive as part of its consideration of this item.

121.

Scrutiny Committee Work Programmes pdf icon PDF 736 KB

(To receive a report which sets out the work programmes of the Environment and Economy and Highways and Transport Scrutiny Committee’s in accordance with the Board's agreed programme)

 

Minutes:

Consideration was given to a report by the Chairman of the Environment and Economy Scrutiny Committee, which detailed the future work programme of the Committee as well as a detailed account of items considered by the Committee in recent meetings.

 

The Chairman expressed his thanks to the Democratic Services Officer and the Scrutiny Officer for their work to support him as the Chairman of the Committee.

 

Recent work of the Committee included:

  • The approval of the Council Budget Report for 2022/23, in which the Committee had acknowledged the importance of efforts made to roll out efficient waste collection services, including the separate paper and cardboard collection trial and the food waste collection trial that took place in South Holland District and South Kesteven District respectively and welcomed future plans for wider roll out of the food waste
  • Quarterly performance indicators for Economy, Flooding and Waste in which an update was received on the Council’s Covid Business Grant Scheme. The Committee was encouraged that a total of £7.3m of the grants had been spent and distributed across the county in a manner consistent with the number of small and medium sized businesses in each district area
  • Other items considered were in relation to an update on the Theddlethorpe Geological Disposal Facility Working Group and the Landscapes Review for the Lincolnshire Wolds Area of Outstanding Natural Beauty.

 

The Committee’s work plan detailing items due to be considered at future meetings was attached at Appendix A to the report.

 

During the discussion the following points were noted and taken under consideration by the Chairman of the Committee:

 

  • Whilst the Board acknowledged the importance of installing further electric vehicle charging points across the County, it was emphasised that these charging points should not replace disabled parking spaces.
  • Further detail would be provided to the Committee on the effectiveness of Sustainable Urban Drainage systems in relation to other flood risk measures.

 

Consideration was then given to a report by the Chairman of the Highways and Transport Scrutiny Committee, which detailed the future work programme of the Committee as well as a detailed account of items considered by the Committee in recent meetings.

 

Recent work of the Committee included:

  • The Revenue and Capital Budget Proposals for 2022/23 and the 5th Local Transport Plan had both been unanimously supported by the Committee. On the first instance the Committee was satisfied that the Major Schemes Programme remained affordable and whilst acknowledging the impacts of the £12 million gap in funding that there was ongoing work of Leading Officers and Executive portfolio holders towards a future funding strategy as part of the Highways Infrastructure Asset Management Plan.
  • The Committee had been encouraged by the proposed transfer of the transport to school services, under the Highways budget.
  • In terms of the Local Transport Plan, the Committee had supported the successful consultation exercise that took place which engaged a wide audience, exceeded expectations and offered a representative glimpse into current views. Members had also been encouraged to hear that the  ...  view the full minutes text for item 121.

122.

Overview and Scrutiny Management Board Work Programme pdf icon PDF 566 KB

(To receive a report which enables the Board to note the content of its work programme for the coming year)

 

Minutes:

The Board was reminded that this item was for information only. However, there had been one amendment to the work programme at the insurance strategy report had been deferred and would now be considered at the meeting of the Board scheduled for 28 April 2022.

 

123.

Corporate Plan Success Framework 2021/22 - Quarter 3

Minutes:

Consideration was given to a report by the Head of Corporate Performance, which invited the Board to consider a report on the 2021/22 Corporate Plan performance for Quarter 3, which would be presented to the Executive on 01 March 2022. The views of the Board would be reported to the Executive as part of its consideration of this item. This report also set out the performance of the service level performance indicator for the 2021/22 Quarter 3 that was within the remit of the Board.

 

Of the 32 key activities detailed within the Corporate Plan Success Framework, recorded within the quarter, 28 were rated green as they were progressing as planned and four were rated as amber as progress was within the agreed limits.

 

The four amber rated key activities were reported. Further details of the proposed plans to enable progress were detailed within the report.

·       A10 - We will achieve net zero carbon emissions as a council by 2050 or earlier through the development of the Green Masterplan. We will provide climate leadership in Lincolnshire and beyond. We will define our 10 year climate change plan with the new executive

·       A12 - We will maximise the reuse and recycling potential of the county's waste, treating it as a resource. This will include exploring the opportunity for anaerobic digestion facilities across the County.

·       A42 - We will refresh our Corporate People Strategy, reviewing culture, values and behaviours, and enabling our staff to be healthy and resilient so we can improve how we support our customers. Structures will be fit for purpose and facilitate our One Council approach

·       A47 - We will transform the way we engage with customers through the implementation of a customer strategy. We will maximise technology solutions in the Customer Service Centre (CSC) to enable customers to do more online, including paying for services. In year 2 our emerging digital strategy will enable us to be innovative so our customers can access us through multiple channels.

 

Further to the reporting in quarter two, there were now two types of Key Performance Indicators (KPI)’s being reported: those where an ambition (target) had been set and those where a judgement around performance had been made (contextual). Of the KPI’s where an ambition had been set, eight could be compared with an updated position for quarter three progress reporting. Of those, six had met their ambition (target); one had exceeded the ambition; five had achieved the ambition and two did not achieve the ambition These are set out below under each of the relevant ambitions. Details of which were contained within Appendix 1 to the report.

 

The Board supported the proposals to the Executive, as set out within the report and during the discussion the following points were noted for consideration:

 

·       In response to concerns raised by residents in West Lindsey regarding the roll out of a separate cardboard and paper recycling collection and where to store the recycling bins, especially for those in terraced houses, and that side waste  ...  view the full minutes text for item 123.

 

 
 
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