There were no declarations of interest made.

To approve and sign the minutes of the meeting held on 17 March 2011.

The purpose of this report is for Cabinet to consider and approve the final outturn position for 2010/11.

The Cabinet Member Corporate Services and Education presented the report.  The Cabinet Member made the following points:

·         A balanced budget had been delivered for 2010/11.The general fund reserve was at £6.4m.

·         Specific reserves totalled £17.9m of which £6m was ring fenced schools reserves.

·         Adult services care budget was still an area of financial risk.

·         Budgetary recovery plans and control of discretionary expenditure had significantly contributed to the year-end position.

·         The Council’s financial position was regularly reported to Cabinet for review.

·         There had been a number of projects delivered successfully amounting to £2.696m.

The Chief Officer Finance and Commercial made the following points:

·         There had been considerable pressure in all directorates which had led to an overspend of £2.6m.  The reduction in discretionary spend had significantly reduced this.

·         A considerable contribution has been made in the way funds are borrowed for the capital programme through the use of revenue instead of reserves where appropriate.

·         Currently the authority is on target to deliver a balanced budget.

·         Winter maintenance reserves are to be included in the general reserves.

·         Integrated Commissioning directorate had a £4.3m overspend.

·         Children’s Services, overspend was considerably less than had been previously.

·         There was a slight underspend in the Deputy Chief Executive’s directorate and equally in the Sustainable Communities directorate.

·         The Capital outturn funding through grants was £4.5m.

·         The end of year position showed a gross borrowing of £140m.

Cabinet made the following comments:

·         There had been good financial management by the authority in reacting early to avoid service problems in adult social care.

·         There was a potential additional cost to the council relating to any school staff being made redundant.

·         Cabinet noted the number of schools converting to academy status and that the academies were choosing to buy back services from the local authority rather than get services elsewhere.

RESOLVED

            That:

a)            the final outturn for 2010/11 be approved; and

b)           the movements to new reserves outlined in paragraph 12 of Appendix A to the report be approved.

To seek approval for the charging and trading principles outlined in the report and the suggested approach for the development of income proposals for directorates. To update Cabinet on the progress achieved to date and to approve proposals that deliver the income requirement contained in the agreed budget.

To invite Cabinet Members to review performance for the operating year 2010-11 against the Joint Corporate Plan 2010-13.

The Cabinet Member Corporate Services and Education reminded Cabinet that the report reflected performance for the last 12 months.

The points raised were:

·         The performance report was part of the quarterly review of the joint corporate plan.

·         The rate of improvement was slightly better than the previous 12 months and Cabinet was referred to pages 42-44 of the report which outlined each directorate. 

·         Currently progress on performance was being measured through the Performance + performance management system.

·         Due to a change in national policy Appendix 2C had been added, which outlined the indicators that were no longer reported on nationally.

·         Hereford Council’s collection of council tax was still in the top quartile nationally.

·         In referring to the number of 16/18 year olds not in education it was stated that the figure was unknown but it was estimated at 250, which was a reduction on last year’s estimate of 300.

RESOLVED: That Cabinet considered performance for the operating year 2010/11.

To approve the measures, targets and projects to support the delivery of the Joint Corporate Plan (JCP) as attached at appendix 1.

To agree remodelling of the Delivered Library Services from a universal mobile service to a home delivery service based upon the needs of the users, and to encourage delivery of community library sites.

To consider the options for the future of West Mercia Supplies.

NOT FOR PUBLICATION – This item discloses information relating to the financial or business affairs of any particular person (including the local authority holding that information.

RESOLVED That: under section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting during consideration of this item of business on the grounds that it involved the likely disclosure of exempt information as defined in Schedule 12(A) of the Act namely information relating to the financial or business affairs of any particular person (including the authority holding that information) and it was considered that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

Summary of Proceedings during which the Public and Press were excluded

The Cabinet Member for Corporate Services and Education presented an exempt report to Cabinet on the options for the future of West Mercia Supplies.

Cabinet considered options for the long term future of this procurement partnership and agreed a preferred course of action.

RESOLVED

That    (a)        the outcome of the feasibility study conducted by Ernst and                            Young was noted; and

(b)       the Chief Executive be authorised, in consultation with the three partner owning authorities, to effect the sale of West Mercia Supplies.

(as amended at  Cabinet on 28 July)