A question session with the Lead Councillor for Resources. Councillor Tim Anderson’s areas of responsibility include Finance, Commercial Asset Management, Procurement, and Communications.
Minutes:
The Chair introduced the Lead Councillor for Resources and reminded the meeting of Councillor Anderson’s areas of responsibility: finance; commercial asset management; procurement; and communications.
The following information and responses were provided during the ensuing discussion:
· In reply to a question about the most difficult part of the Budget process, the Lead Councillor for Resources referred to the uncertainty over the future of local government funding and local authorities being given single year finance settlements by central government.
· In response to a question on his priorities for communications and for commercial asset management, the Lead Councillor for Resources advised the meeting that although communications had only been recently added to his executive portfolio he felt the Council’s newsflow could be improved. With reference to commercial asset management, the Lead Councillor for Resources advised the Committee that the Council had a property acquisition fund of £50 million but there was a lack of suitable properties on the market. He indicated that a change in EPC (Energy Performance Certificates) regulations meant older properties came with cost and resource complications, while adjustments to the Public Works Loan Board prevented investment purely for income return. The Committee was advised that because of these issues the refurbishment, intensification, and re-development of existing stock was a priority, along with potential land assembly options.
· A member of the Committee questioned whether the Council’s communications could be improved to ensure fuller information was provided to the public, particularly in relation to the Council’s spending. In reply, the Lead Councillor for Resources outlined his past experience of communications in the private sector. With reference to the Council’s recent investment of £24.5 million in social housing as an example, the Lead Councillor for Resources questioned the disclosure of information through Executive Advisory Boards and suggested the value in improved media and communications plans.
· With reference to the recent announcement by the Council of £24.5 million investment in social housing, the Lead Councillor for Resources was asked whether the evaluations for such repairs or refits were robust. He advised the meeting that the proposed investment of £24.5 million arose as a result of the initial findings of a full stock condition survey by independent surveyors. The Committee was informed that full details of the proposed works were included within the capital and investment strategy report to be considered by the Executive the following week.
· A member of the Committee asked if the Council had a specific budget for climate change and, if not, why not. The Lead Councillor for Resources stated that spending on climate change appeared fragmented. He advised the meeting that the gross budget for climate change was approximately £191,000 for 2021-22. The Lead Councillor for Resources indicated that there were a number of specific energy efficiency projects within the Council’s approved capital programme of £163,000, a further £768,000 within the provisional capital programme, and budgets for projects such as Guildford West railway station and the Sustainable Movement Corridor which would have an impact on climate change. The Committee was advised that some of the project work had been delayed due to vacant posts in the climate change team. In addition, the Lead Councillor for Resources referred to the £120,000 installation of solar panels on Farnham Road car park and the Council’s Millmead offices. In conclusion, the Lead Councillor for Resources suggested that questions on the lack of a comprehensive budget for climate change should be directed to the Lead Councillor for Climate Change when she attended the Committee.
· The Lead Councillor for Resources was questioned on the Council’s asset disposal policy, including its status, the communication of disposals, and the availability of a plan of the intended asset disposals. In response, the Lead Councillor for Resources advised the Committee that asset disposal was at the appraisal stage, that is to say, maximising the return from an asset or considering whether disposal would be a better option. The meeting was informed that a sub-programme of the Council’s Savings Strategy aimed to save between £1 million and £1.5 million from asset disposal or increased income from operational assets, with any assets considered for disposal going to the Property Review Group for consideration and then reported through the Savings Strategy Programme. The Lead Councillor for Resources indicated that investment assets were reviewed regularly by surveyors with outcomes reported to the Property Review Group and the Investment Property Funds Management Group. He stated that the asset disposal process was at such an early stage that he was not able to give a timeframe for the provision of information to the Council.
· In response to a question on the potential impact on the Council’s finances from section 106 agreements and monies, and the monitoring of compliance, the Lead Councillor for Resources suggested that topic fell within the remit of the Lead Councillor for Development Management. The Committee was informed that the Council’s planning team monitor section 106 agreements and ensure monies are received and passed on to the spending department or organisation. The Lead Councillor for Resources advised the meeting that a section 106 monitoring report would be considered by the Corporate Governance and Standards Committee in March 2022. The Chair and a member of the Committee advised the meeting that after consideration of the initial report in March the Corporate Governance and Standards Committee would receive section 106 monitoring reports on a regular basis.
· In response to questions about difficulties with the software introduced by the Council for its budget monitoring, the Director for Resources advised the meeting that workarounds were being used to produce the required information for budget monitoring by the Corporate Governance and Standards Committee. She indicated that the Council was considering migrating to a newer budget monitoring module.
The Chair thanked the Lead Councillor for Resources for attending and answering questions from the Committee members.