Agenda and minutes

RESOLVED that the minutes of the meeting held on 16 January 2023 be confirmed and signed by the Leader as a correct record.

Please note that, in accordance with the Members' Code of Conduct, when declaring interests members must disclose the existence and nature of the interest, and whether it is a disclosable pecuniary interest (DPI) or personal and/or pecuniary.

No declarations of interest were received.

RESOLVED that the order of business be amended to allow the agenda item entitled ‘Events and Culture in the City – Christmas 2023 and Beyond’ to be considered as the next agenda item.

Purpose of Report

To provide members with a review of the Christmas Market in 2022, reflecting on:

·       The visitor experience,

·       The financial cost,

·       Predictions over increasing attendance numbers and the consequential health and safety concerns.

The Chair expressed thanks to Officers and emphasised that proposals had not been taken impulsively or without extensive consideration. Recognition was given to the affection that was held for the market as a much loved institution, however public safety was the most important consideration moving forward.

The Chair confirmed that detailed and extensive discussions had taken place with the multi-agency Safety Advisory Group and the advice received was that no revisions to the market event plan would safely deal with any increase in visitor numbers beyond those experienced in 2022. It was noted that if the market continued to grow at the current rate, the event would become unsafe. In addition, the visitor experience would be adversely affected and as such, there was a compelling case for changes to be made moving forward. Consideration was given to the wider context, it was agreed that Lincoln was a highly successful visitor and tourist attraction which provided a great base from which to consider a new “Christmas in Lincoln” offer and wider events programme.

Further to discussions between Executive members and Officers, the following points were noted:

·       Public safety was the principal consideration moving forward. The market had won awards for safety, but the event would become unsafe in 2023.

·       When considering the financial implications, contracts for services had break clauses built in and as such, contractors could claim only for costs incurred at the point of cancellation. There was a compelling case for cancelling early to prevent contractors incurring large costs for the 2023 market.

·       Contracts awarded for providing services across all events would mean that many contractors would be retained for other events and in turn, costs would be mitigated.

·       The cost of cancellation was anticipated to be significantly less than the £260K net cost of operating the market.

·       Although the market generated £13m, only £2m stayed within the local economy.

·       Proposals included the use of the full budget allocation of £260K per annum into a new events programme – the largest investment in cultural activity in the Council’s recent history.

·       Consideration of a new events programme for the future would include work with local businesses from all sectors to ensure it had the desired impact and covered a range of events for both local residents and visitors from further afield.

·       It was anticipated that other partners would step into this space and therefore increase and enhance provision which would create a much bigger ‘critical mass’ of activity – especially around the Christmas period.

·       The economic benefit from 320,000 visitors could be distributed over a range of events across the full year and therefore, visitors may spend more if they had time to dwell and meander around the City centre and uphill areas to absorb the atmosphere which the history and heritage of the  ...  view the full minutes text for item 81.

Note: Meeting resumed at 19:14

Purpose of Report

To present the Housing Revenue Account (HRA) Business Plan for 2023/28.

Proposals were also set out to undertake a thorough review of the HRA during the first half of 2023 with the goal of developing an exciting 30-year business plan setting out what we wanted to achieve over the next 30 years.

Executive was asked to approve the HRA Business Plan for 2023/24 and to support the development of an updated and wide-ranging 30-year business plan during 2023.

Decision

That the Housing Revenue Account Business Plan for 2023/24 be approved and the development of an updated 30-year business plan during 2023 be endorsed.

Alternative Options Considered and Rejected

None.

Reasons for the Decision

With 7,794 council properties, the Council was required to maintain a ring-fenced HRA, covering the income and expenditure relating to the Council’s own housing stock. The Local Government and Housing Act 1989 specified the items that could be charged and credited to the HRA. Furthermore, the Council had a legal duty to ensure the HRA remained solvent.

The HRA Business Plan defined our income and expenditure plans for the delivery of council housing in Lincoln, The Plan and associated budgets were reviewed and monitored annually.

A one-year business plan was reviewed and approved in February 2022. In the normal course of events the 30-year plan would have been developed in 2023. However, this normal cycle had been disrupted by events beyond our control that would have significant effect on the viability of the business plan and its delivery in the short to medium term. For example, the war in Ukraine, the subsequent cost of living crisis and the uncertain political situation in the UK. The long-term plan needed to be fundamentally reviewed and updated.

Our goal was to refresh the business plan for the 2023/24 financial year and undertake a full strategic review during the first half of 2023, with the aim of having an updated HRA Business Plan that looked generationally at Lincoln’s wider housing and community needs, developed and approved for the start of the 2024/25 financial year.

Over the next thirty years we planned to invest a total of £220million modernising and improving our homes.

Energy efficiency was a key issue for our tenants. We continued to improve the thermal performance of our homes and our properties currently had an average SAP (energy efficiency) rating of 70 which was higher than the national average of 67.

Our target was to acquire 400 additional properties between 2020 to 2025. To date we had acquired a total of 217 additional properties and expected to acquire a further 52 properties in 2022/23. We were confident that we would achieve our target by 2025 and were working to acquire an additional 149 properties, 61 of which would be owned by the council.

The HRA Business Plan included sections on the changing business environment; coherence with the golden thread performance framework; involvement of residents; service delivery; and financial  ...  view the full minutes text for item 82.

Purpose of Report

To update Executive on progress towards achieving a start on site and the wider funding and delivery arrangements for the Western Growth Corridor (WGC) development, since the report of 17^th October 2022 (Western Growth Corridor – Next Steps).

To seek authority to proceed with the next stages of delivery as follows:

-       To approve the delivery arrangements for the Phase 1a infrastructure works, which were required to provide access to the development from Skellingthorpe Road.

-       To approve the proposed delivery arrangements to progress the detailed design of the first 52 homes on land owned by the Council at the gateway to the development, off Skellingthorpe Road, to enable the submission of a Reserved Matters application during summer 2023.

-       To approve in principle, the proposed delivery arrangements for the gateway housing, to allow for delivery once the initial infrastructure works had been completed and subject to planning consent. The final form of agreement shall be subject to a further Executive approval.

-       To acknowledge the award of funding under the Levelling Up Fund Round 2 (LUF2), which would enable the accelerated delivery of the Tritton Road bridges and spine road, known as Phase 1b of the WGC development.

-       To agree to delegate the final signing of the Memorandum of Understanding (MoU) in respect of the LUF2 funding to the Director of Major Developments and Section 151 Officer, in consultation with the Leader of the Council, to enable the initial feasibility and design work to proceed as set out in this report, in order to inform the full delivery strategy and to meet the funding timescales.

-       To approve the proposed consultation and engagement strategy to keep the community and stakeholders informed of project progress prior to and during the construction phases.

Decision

1.    That the proposed delivery arrangements for the Phase 1a infrastructure works, which were required to provide access to the development from Skellingthorpe Road be approved.

2.    That the proposed delivery arrangements to progress the detailed design of the first 52 homes to enable the submission of a Reserved Matters application during summer 2023 be approved.

3.    That the proposed delivery arrangements for the gateway housing be approved in principle, to allow for development once the initial infrastructure works had been progressed and subject to planning consent. The final form of development agreement would be subject to a further Executive approval

4.    That the award of funding under the Levelling Up Fund Round 2 (LUF2), which would enable the accelerated delivery of the Tritton Road bridges known as Phase 1b of the WGC development be acknowledged.

5.    That the final signing of the Memorandum of Understanding (MoU) in respect of the LUF2 funding be delegated to the Director of Major Developments and Section 151 Officer, in consultation with the Leader of the Council, to enable the initial feasibility and design work to proceed as set out in this report, in order to inform the full delivery strategy and to meet  ...  view the full minutes text for item 83.

Purpose of Report

To recommend the proposed increase to the living wage, as announced by the Living Wage Foundation in September 2022.

Decision

That the increase to the latest accredited living wage be implemented during April 2023.

Alternative Options Considered and Rejected

None. The Council was committed to maintaining its living wage accreditation.

Reasons for the Decision

The aim of implementing the accredited living wage was to ensure that no employees were paid below the accredited living wage hourly rate. Since achieving accreditation, the Council had taken an active role externally to encourage Lincoln businesses to also pay the accredited living wage.

Currently there were 16 employees who were paid less than the proposed accredited living wage rate of £10.90.

Purpose of Report

To present the third quarter’s performance (up to 31 December 2022) on the Council’s General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes, and to seek approval for changes to the capital programmes.

Decision

1.           That the financial performance for the period 1 April 2022 to 31 December 2022 and the projected outturns for 2022/23 be noted.

2.           That the underlying impact of the pressures and underspends identified in paragraphs 3.3 (and Appendix B), 4.3 (and Appendix D), and 5.2 (and Appendix F) of the officer’s report be noted.

3.           That the General Fund carry forward request as detailed in paragraph 3.12 of the report be approved.

4.           That the changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer detailed in paragraphs, 7.4, and 7.11 of the officer’s report be noted.

5.           That the changes to the Housing Investment Programme, as detailed in paragraphs 7.3, 7.9 and 7.10 of the officer’s report, be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

The Council approved a balanced budget earlier in 2022, but much had changed since that point. Spiralling inflation, soaring energy prices and nationally agreed pay agreements had added significant cost pressures to the Council’s budget. These were in the main part caused by national issues, beyond the Council’s control, and were impacting all Councils. In addition, the current cost of living crisis had the potential to increase demand for the Council’s services by those who relied on the safety net provided by local government. These unforeseen and unavoidable pressures had seriously impacted the assumptions that underpinned the MTFS. As a result of these pressures, when reporting the forecast position at the end of Quarter 2, the General Fund forecasted a significant financial shortfall for 2022/23 of £912,511, with cost pressures also in the Housing Revenue Account and Housing Repairs Service.

In response to this forecast position, the Council began developing a range of mitigation actions as part of a financial recovery programme in order to ensure it retained a sustainable financial position in 2022/23 and also in the medium-term (the impact of these inflationary pressures were not isolated to 2022/23 and had permanently increased the cost base of the Council).

Included within these actions was a review of the Council’s Borrowing, Investment and Minimum Revenue Provision (MRP) strategies. This review had resulted in a proposed change to the current MRP Policy, which if approved would generate significant savings in the medium term, whilst still maintaining a prudent provision. The net saving in 2022/23 was £749,000.

As a result of this proposed reduction in capital financing costs, along with other actions taken during the year, including an in-year increase in some fees and charges and temporary recruitment measures, the General Fund was forecasting a significantly improved position for 2022/23, with a current estimate of a £70,358 budget shortfall. The forecast position on both the Housing Revenue Account and Housing Repairs Service had also improved  ...  view the full minutes text for item 85.

Purpose of the Report

To present an outturn summary of the Council’s operational performance in quarter three of 2022/23.

Decision

1.    That the achievements and challenges identified in the Quarter 3 2022/23 operational performance report be noted.

2.    It be confirmed that the format of the performance report continued to meet requirements.

Alternative Options Considered and Rejected

None were considered.

Reasons for the Decision

Regular monitoring of the council’s performance was a key component of the Local Performance Management Framework. This report covered the key strategic performance measures identified by members and CMT as of strategic importance.

The outturn summary report detailed performance against a total of 83 measures across the directorates Chief Executive’s, Communities and Environment and Housing and Investment. 19 measures were recorded as volumetric (untargeted).

In total 64 performance measures out of the 83 were monitored against targets, of which fifteen were below target; twenty-one were within target boundaries; 24 had exceeded a higher target, and 4 measures were recorded as data not available for this quarter

The performance measures under each directorate linked directly into one Vision 2025 strategic priorities.

The Directorate for Major Developments (DMD) predominantly linked to Vision 2025, priorities "Driving Inclusive Economic Growth" and “Lets Address the Challenge of Climate Change.” DMD was currently working to develop a number of performance measures to monitor service delivery within the Directorate. It was expected these measures would be reported from Quarter 4 2022/23. Updates on the key projects being delivered would also be reported alongside these measures.

The Quarter 3 2022/23 Operational Performance Report at Appendix A. detailed those targeted measures with performance above or below target by directorate at the end of the third quarter of 2022/23 and the reasonings behind the performance outturns. A count of the performance measures outturn status for each directorate at quarter 3 2022/23 was also detailed within page 4 of Appendix A

In addition to the directorate performance measures, the report also detailed the performance outturns for those corporate performance measures. These measures focussed on the areas of sickness, complaints, resources, health & wellbeing, and appraisals.

A full list of all performance measure outturns and supporting performance commentary was provided at Appendix B. Within this supporting appendix, in addition to those measures performing above/below target, Appendix B also contained –

-       Those performance measures performing within target boundary at the end of the quarter (acceptable performance)

-       The outturns for all performance measures recorded as volumetric (untargeted)

It was important to note that factors such as resource pressures, recruitment challenges and the cost of living crisis had continued to have an impact on performance in quarter 3 2022/23.

Looking ahead, the cost of living crisis could lead to a further increased demand for council services, as the more vulnerable in the city continued to look to the council for support, which could also further impact on performance. This was likely to be at a time when the council could see a reduction in both income for services and collection  ...  view the full minutes text for item 86.

Purpose of Report

To consider recommending the Medium-Term Financial Strategy for the period 2023-2028 and the budget for 2023/24 to the Council for approval.

To consider recommending the Capital Strategy 2023-2028 to the Council for approval.

Decision

That the Council be recommended to approve the Medium Term Financial Strategy 2023-2028, and the Capital Strategy 2023-2028, which included the following specific elements:

• a proposed council tax Increase of 2.91% for 2023/24;
• a proposed housing rent increase of 6.5% for 2023/24;
• the Council being a member of the Lincolnshire Business Rates Pool in 2023/24;
• the General Fund Revenue Forecast 2023/24-2027/28, as shown in Appendix 1 and the main basis on which this budget had been calculated (as set out in paragraph 4);
• the General Investment Programme 2023/24-2027/28, as shown in Appendix 2, and the main basis on which the programme had been calculated (as set out in paragraph 6).
• the Housing Revenue Account Forecast 2023/24-2027/28, as shown in Appendix 3 and the main basis on which this budget had been calculated (as set out in paragraph 5); and
• the Housing Investment Programme 2023/24-2027/28, as shown in Appendix 4, and the main basis on which the programme had been calculated (as set out in paragraph 7).

Alternative Options Considered and Rejected

None.

Reasons for the Decision

Much had changed since the Council approved the previous MTFS in March 2022, with spiralling inflation, soaring energy prices and national pay agreements all adding significant cost pressures to budgets. These were in the main caused by national issues, which were beyond the Council’s control and were impacting all Councils.

In addition, the Council was facing growing demands for some of its key services as those more vulnerable in the city, a client group that was impacted the hardest during Covid19, looked to the council for support as the cost-of-living crisis hit household incomes.

Alongside these cost and demand pressures, there still remained uncertainty around the level of funding for local government beyond the current Spending Review period and the implementation of the planned national funding reforms. These reforms had the ability to fundamentally alter the course of the MTFS. Although it had now been confirmed that these fundamental reforms would not be implemented until 2025/26 at the earliest, and the Autumn Statement announced some much-needed additional funding for local authorities for the next two years (providing some limited and short-term stability), there could be no certainty beyond 2024/25. This was further compounded by the risk of a new round of public expenditure austerity measures. The funding outlook for local authorities therefore remained volatile and uncertain.

As a result of these factors, the financial landscape for local government continued to pose an unprecedented challenge to the Council and this MTFS was set in the context of significant and inherent uncertainty. It was a long time since the Council had any medium-term certainty during budget setting which made financial planning in this climate extremely challenging.

The Council would continue to build on its successful financial planning to date,  ...  view the full minutes text for item 87.

Purpose of Report

In light of the report on the Medium-Term Financial Strategy, as detailed at Minute 86, to consider the City Council’s council tax requirement, together with the requirements of the County Council and the Police and Crime Commissioner for Lincolnshire and to allow the Executive to make a formal recommendation to Council for the overall levels of council tax for 2023/24.

Decision

That the following recommendations be made to the Council:

(1)          That the recommendation of the Executive on 3 January 2023 be accepted that the Council Tax Base for 2023/24, as calculated in accordance with The Local Authorities (Calculation of Council tax Base) (England) Regulations 2012,to be £25,249.48.

(2)         That the following amounts be calculated for the year 2023/24 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992:

(a)  £119,284,490 being the aggregate of the amounts which the Council estimated for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.

(b)  £111,728,580 being the aggregate of the amounts which the Council estimated for the items set out in Section 31A(3) of the Act.

(c)  £7,555,910 being the amount by which the aggregate at 2(a) above exceeded the aggregate at 2(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31A (4) of the Act).

(d)  £299.25 being the amount at 2(c) above (Item R), all divided by Item T (1 above), calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).

(e)  £0 being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act.

(f)  £299.25 being the amount at 2(c) above less the amount at 2(e) above, all divided by the amount at 1 above, calculated by the Council in accordance with Section 33(1) of the Act, as the basic amount of its Council Tax for the year.

(g)  City of Lincoln Council

                        being the amounts given by multiplying the amount at 2(f) above by the number which, in proportion set out in Section 5(1) of the Act, was applicable to dwellings listed in a particular band divided by the number which in proportion was applicable to dwellings listed in Valuation Band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken for the year in respect of categories of dwellings listed in different bands.

(3)          That it be noted that for the year 2023/24 Lincolnshire County Council had stated the following amounts in precepts issued to the Council, in accordance with the dwelling bandings shown below:

            Lincolnshire County Council

Purpose of Report

To review and to recommend to the Council the adoption of

·         Treasury Management Strategy 2023/24;

·         Prudential Indicators;

·         Minimum Revenue Provision (MRP) Policy Amended from 2022/23;

·         Treasury Management Practices (TMP’s)

Decision

(1)                  That the Council be recommended:

(a)      To adopt the Treasury Management Strategy 2023/24, including the Prudential Indicators;

(b)     To approve the revised Minimum Revenue Position Policy amended from 2022/23;

(c)     To approve the Treasury Management Practices

Alternative Options Considered and Rejected

None.

Reasons for the Decision

The report set out the operation of the Council’s prudential indicators, its treasury function and its likely activities for the forthcoming year which incorporated the following four key elements:

• Prudential and Treasury Indicators – The reporting of the statutory prudential indicators together with local indicators, in accordance with the requirements of the CIPFA Prudential Code for Capital Finance in Local Authorities and the CIPFA Treasury Management Code of Practice.
• Minimum Revenue Provision (MRP) Statement – The reporting of the MRP policy which set out how the Council would pay for capital assets through revenue each year (as required by regulation under the Local Government Act 2003).
• Treasury Management Strategy – This set out how the Council’s treasury activity would support capital decisions, the day-to-day treasury management and the limitations on activity through treasury prudential indicators. The key indicator was the Authorised Limit, the maximum amount of debt the Council could afford in the short term, but which would not be sustainable in the longer term. This was the Authorised Borrowing Limit required by Section 3 of the Local Government Act 2003 and was in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code.
• Investment Strategy – This was included in the Treasury Management Strategy and set out the criteria for choosing investment counterparties and limiting exposure to the risk of loss, which was reported annually in accordance with Department for Levelling Up, Housing  and Communities (DLUHC) Investment Guidance.

This report had been considered by Audit Committee on 31 January 2023 as detailed within the minutes of that meeting at Appendix B.

Purpose of Report

To provide a status report on the revised Strategic Risk Register as at the end of the third quarter 2022/23.

Decision

That the Council’s strategic risks, as at the end of quarter 3 2022/23, be noted.

Alternative Options Considered and Rejected

As detailed in the report.

Reasons for the Decision

The previous update of the Strategic Risk Register had previously been reported in November 2022. There remained thirteen strategic risks. The mitigations and control actions for each risk were detailed in the report.

You are asked to resolve that the press and public be excluded from the meeting during the consideration of the following items because it is likely that if members of the press or public were present, there would be disclosure to them of 'exempt information'.

In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, notice is hereby given of items which will be considered in private, for which either 28 days' notice has been given or approval has been granted by the appropriate person specified in the Regulations. For further details please visit our website at http://www.lincoln.gov.uk or contact Democratic Services at City Hall, Beaumont Fee, Lincoln.

X. This item is being considered in private as it is likely to disclose exempt information, as defined in Schedule 12A of the Local Government Act 1972. No representations have been received in relation to the proposal to consider this item in private.

Y. This item is being considered in private as it is likely to disclose exempt information, as defined in Schedule 12A of the Local Government Act 1972, and has not been deferred for the reasons established in the published notice.

RESOLVED that the press and public be excluded from the meeting during consideration of the following items of business because it was likely that if members of the public were present there would be a disclosure to them of ‘exempt information’, as defined by Section 100I and Schedule 12A to the Local Government Act 1972.

These items were considered in private as they were was likely to disclose exempt information, as defined in Schedule 12A of the Local Government Act 1972. No representations had been received in relation to the proposal to consider these items in private.

Purpose of Report

As detailed in the exempt report to the Executive.

Decision

That the recommendations to the Executive, as set out in the exempt report, be approved.

Alternative Options Considered and Rejected

As detailed in the exempt report to the Executive.

Reasons for the Decision

As detailed in the exempt report to the Executive.

Purpose of Report

As detailed in the exempt report to the Executive.

Decision

That the recommendations to the Executive, as set out in the exempt report, be approved.

Alternative Options Considered and Rejected

As detailed in the exempt report to the Executive.

Reasons for the Decision

As detailed in the exempt report to the Executive.