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ANGUS COUNCIL
MINUTE of MEETING of the FINANCE AND INFORMATION TECHNOLOGY COMMITTEE held in the Town and County Hall, Forfar on Tuesday 21 October 1997 at 4.10 pm.
Present: Councillors ALEX KING, JACK GIBB, GEORGE ALLAN, IAN HUDGHTON, IAN MACKINTOSH, GLENNIS MIDDLETON, WILLIAM MIDDLETON, STEWART MOWATT, ROB MURRAY and DAVID SELFRIDGE.
Apologies: Apologies for absence were intimated on behalf of Councillor BRIAN MILNE and Mrs KATHLEEN RITCHIE
Councillor KING, Convener, in the Chair.
1. MINUTE OF PREVIOUS MEETING
The minute of meeting of this Committee of 2 September 1997 was approved as a correct record and signed by the Convener.
2. REVENUE MONITORING STATEMENT
There was submitted Report No 1104/97 by the Director of Finance on the actual revenue expenditure incurred and income received in respect of the Council’s Departments for the period 1 April 1997 to 31 August 1997.
The Committee noted the Report.
3. REVENUE BUDGET OUTTURN 1997/98
With reference to Article 2 of the minute of the Special Meeting of Angus Council of 6 March 1997, there was submitted Report No 1105/97 by the Director of Finance updating members on the Council’s revenue monitoring arrangements for the purpose of making year end outturn projections. It was anticipated at this stage that all expenditure would be held within the overall budget.
The Committee noted the Report.
4. CAPITAL MONITORING COMPOSITE CAPITAL PROGRAMME 1997/98
With reference to Article 5 of the minute of meeting of the Policy and Resources Committee of 7 May 1996, there was submitted Report No 1096/97 by the Director of Finance apprising members of the capital expenditure incurred for the period from 1 April 1997 to 31 August 1997 and measuring actual capital expenditure as against budgeted provision for the year.
The Committee agreed:-
(i) to note the position as at 31 August 1997 on the Composite Capital Programme as per the monitoring statement appended to the Report; and
(ii) to note that projections of the year end position would be ongoing and brought forward on a regular basis to the Committee.
5. CAPITAL MONITORING PROGRAMME HOUSING PROGRAMME TO 31 AUGUST 1997
There was submitted Report No 1095/97 by the Director of Finance detailing the Housing Capital Programme HRA Block for 1997/98 as at 31 August 1997 and the latest estimates for the year.
The Committee noted the Report and the figures presented and agreed that the total programme remain at £8.023m.
6. RENEWAL AND REPAIRS FUNDS TO 31 AUGUST 1997
There was submitted Report No 1107/97 by the Director of Finance on the financial position of the Renewal and Repairs Funds for Property, Roads, Information Technology and the Print Unit as at 31 August 1997.
The Committee noted the Report and the balances available on the four funds.
7. PREPARATION OF ANGUS COUNCIL ACCOUNTING STATEMENTS 1996/97 FINANCIAL YEAR
There was submitted Report No 1109/97 by the Director of Finance together with the unaudited Statement of Accounts for Angus Council for the year ended 31 March 1997 and the Annual Report and Accounts for the Direct Service Organisations for the year ended 31 March 1997.
It was reported that the Council’s accounting statements were required to be submitted based on provisional disaggregated balance sheet information supplied by Dundee City Council, as accounting authority for Tayside Regional Council, and some of the figures included were therefore provisional in nature and would require to be reviewed in more detail and formally agreed.
The General Fund balance provision was currently expected to be in excess of earlier estimates at £2.7m, but a significant part of that sum was effectively already committed or budgeted for.
The Committee noted the contents of the Report and agreed:-
(i) to note that a set of draft accounts had been submitted to the Controller of Audit; and
(ii) to note that discussions were continuing to finalise the disaggregation exercise for Tayside Regional Council and City of Dundee District Council.
8. TREASURY MANAGEMENT ANNUAL REPORT
With reference to Article 7 of the minute of meeting of this Committee of 11 March 1997, there was submitted Report No 1097/97 by the Director of Finance setting out details of Treasury Management Activities for 1996/97 and an updated Treasury Management Policy Statement for the Council which had been amended in the light of changes in circumstances.
Although no change was required to the approved organisations for investment, it had been found that certain of these organisations would only accept deposits of at least £5m and therefore it was proposed that the total permitted lending to any one bank or building society be increased from £3m to £5m.
The Committee approved the terms of the Report and agreed:
(i) to approve the Annual Report on Treasury Management Activities for 1996/97; and
(ii) to approve the updated Treasury Management Policy Statement for Angus Council.
9. LOCAL TAX COLLECTION
(a) Collection of Council Tax and Community Charge Update
There was submitted Report No 1108/97 by the Director of Finance updating members on the position of Council Tax and Community Charge collection to the end of August 1997 when the total debt due and still being pursued was £3.63m.
The Committee agreed to note and accept the contents of the Report and to request that, in future, such reports be submitted on a twice yearly basis.
(b) Collection of Council Tax and Community Charge and Non-Domestic Rates Arrears Special Grant
With reference to Article 9(b) of the minute of meeting of this Committee of 2 September 1997 and Article 19 of the minute of meeting of the Personnel and Property Services Committee of 21 October 1997, there was submitted Report No 1111/97 by the Director of Finance (a) reminding members that the Scottish Office had made £30,000 available to Angus Council by way of a special grant to assist with the collection of outstanding local tax and (b) setting out proposed measures, including the appointment of temporary staff, to utilise this grant to maximise arrears collection.
The Committee approved the terms of the Report and agreed:-
(i) to approve the introduction of the proposals contained in the Report and the proposed utilisation of the £30,000 special grant; and
(ii) for its interest, to approve the establishment of 3 posts of Clerical Assistant within the Revenues Division of the Finance Department for a period of no more than 1 year.
10. VAT AND PARTIAL EXEMPTION
There was submitted Report No 1110/97 by the Director of Finance indicating that the Council was registered for VAT and was able to reclaim (with few exceptions) from HM Customs and Excise the VAT it paid to its suppliers (Input Tax), but had to pay over the VAT it charged on goods and services it provided (Output Tax).
Under Partial Exemption rules, provided that the amount of input tax was an "insignificant proportion" of the total input tax reclaimed in a year, then it was possible to reclaim it. The "insignificant proportion" was currently held to be 5%. However, since 1 April 1997, the Partial Exemption rules had been tightened and VAT incurred on overheads, central service recharges and DSO recharges had to be brought into the calculation. The Council’s consultants had indicated that the 5% limit could be breached and the Council would require to opt-to-tax some of the property it let out.
It was proposed that the Council should opt-to-tax the property to be built at Brent Avenue, Montrose, prior to construction starting, which would bring the Council within the 5% limit and thus prevent the possibility of a large unbudgeted payout to Customs and Excise at the start of the 1998/99 financial year.
The Committee approved the terms of the Report and agreed:-
(i) to authorise the Director of Finance to opt-to-tax the factory unit to be constructed at Brent Avenue, Montrose if, having consulted with the Convener of this Committee, the Chief Executive and Director of Planning, Transport and Economic Development, he considered it necessary; and
(ii) that the Director of Planning, Transport and Economic Development should examine all properties rented out under the Economic Development head to determine whether it would be in the Council’s interest to opt-to-tax in any of these case.
11. ANNUAL ACCOUNTS CARNOUSTIE GOLF LINKS MANAGEMENT COMMITTEE YEAR ENDED 31 MARCH 1997
There was submitted and noted Report No 1045/97 by the Director of Finance appended to which were the annual accounts of the Carnoustie Golf Links Management Committee for the year ended 31 March 1997.
12. PROPERTY RENEWAL AND REPAIRS FUND 1997/98 FUNDING ARRANGEMENTS AND PROGRAMME OF URGENT REPAIRS PHASE 3
With reference to Article 24 of the minute of meeting of the Personnel and Property Services Committee of 21 October 1997, there was submitted Report No 1102/97 by the Director of Property Services advising on the third phase of budgetary provision from the 1997/98 Property Renewal and Repairs Fund and the programme of urgent repairs to be undertaken.
The Committee, for its interest, approved the terms of the Report and agreed:-
(i) to approve the provision of £28,000 from the Property Renewal and Repairs Fund in financial year 1997/98 for the execution of urgent property repairs; and
(ii) to note and approve the programme of urgent repairs being undertaken by the Director of Property Services in agreement with the Director of Finance, based upon the funding arrangements set out in the Report.
13. INVERKEILOR PRIMARY SCHOOL ARBROATH TOILET ALTERATIONS TO COMPLY WITH CURRENT HEALTH AND SAFETY REGULATIONS
With reference to Article 21 of the minute of meeting of the Personnel and Property Services Committee of 21 October 1997, there was submitted Report No 1080/97 by the Director of Property Services regarding alterations to the toilets at Inverkeilor Primary School to comply with current health and safety regulations.
The Committee, for its interest, agreed to approve the terms of the Report and the additional funding of £14,000 for the project, and to note that an allowance of £55,000 had been made in the Property Maintenance Renewal and Repairs Fund for the financial year 1997/98.
14. EXCLUSION OF PUBLIC AND PRESS
The Committee resolved, in terms of Standing Order No 27(2), that the public and press be excluded during consideration of the following items to avoid disclosure of information which was exempt in terms of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973 (Paragraph 6, 8 and 9).
15. ALTERATIONS AND INSTALLATION OF VENTILATION AT ST JAMES HOUSE, FORFAR
With reference to Article 6(a) of the minute of meeting of the Personnel and Property Services Committee of 21 October 1997, there was submitted Report No 923/97 by the Director of Property Services regarding the acceptance of a tender for alterations and the installation of ventilation at St James House, Forfar and proposing that £12,842 of the total cost of £102,697 be funded from the Renewal and Repairs fund.
The Committee, for its interest, approved the proposed funding arrangement detailed in the Report and the additional capital expenditure proposed.
16. HILLSIDE BOWLING GREEN, MONTROSE
There was submitted Report No 1116/97 by the Director of Recreation Services indicating that Hillside Bowling Green, Montrose was one of three remaining bowling greens still directly maintained under the Ground Maintenance Contract and the Council was responsible for maintenance and repair of the entire green and its surrounds.
The Recreation Services Department had been approached by Hillside Bowling Club requesting that, as the existing natural grass bankings did not meeting the minimum requirements for national competitive play, they be replaced by artificial bankings. There was only one supplier of the specialist units required.
It was reported that £4,523 of the total cost of £9,148 could be funded from Recreation Services Department revenue budget and Hillside Bowling Club had confirmed that they would fund the balance of £4,625.
The Committee approved the terms of the Report and agreed that an offer from the sole supplier, Greenweave (Welbourn) Limited, for the supply and installation of artificial banking for the sum of £9,148 be accepted, subject to receipt of £4,625 from Hillside Bowling Club.
17. TREASURY MANAGEMENT CONSULTANTS
With reference to Article 13 of the minute of meeting of this Committee of 30 April 1996, there was submitted Report No 1114/97 by the Director of Finance indicating that the Council’s current Treasury Management Consultants, Union Bank of Switzerland Limited (UBS Limited), had sold their Public Sector Department to Sector Treasury Services Limited. It was considered appropriate to recommend that the Council appoint Sector Treasury Services Limited as its new Treasury Management Consultants on the same terms and conditions as those which were in place with UBS Limited.
The Committee approved the terms of the Report and agreed:-
(i) to note the circumstances surrounding the transfer of business from the Council’s Treasury Management consultants, UBS Limited to the new company, Sector Treasury Services Limited; and
(ii) that Sector Treasury Services Limited be appointed as new Treasury Management consultants for Angus Council on the same terms and conditions as were in place with UBS Limited.
18. REPLACEMENT OF COMMUNITY CHARGE BILLING AND COLLECTION COMPUTER SYTEM
There was submitted joint Report No 1115/97 by the Director of Finance and the Director of Information Technology indicating that the current Community Charge billing and collection computer system was outdated and incapable of being adequately supported. In the light of the substantial amounts of Community Charge arrears which were still being collected, it was proposed that a replacement computer system be acquired from a preferred supplier at a cost of £31,420.
The Committee approved the terms of the Report and agreed:-
(i) to approve the replacement of the current Community Charge billing and collection computer system; and
(ii) that the replacement system be purchased from by McDonnell Information Sytems Ltd as preferred supplier.
19. PROCUREMENT OF ICE PREDICTION SYSTEM PHASE 2 THERMAL MAPPING
With reference to Article 9 of the minute of meeting of the Roads Committee of 16 October 1997, there was submitted Report No 1071/97 by the Director of Roads regarding the purchase from Vaisala TMI Ltd, of the second phase of the Ice Prediction System, comprising thermal mapping of the winter maintenance priority route network and a proportion of non-priority routes.
The Committee, for its interest, approved the terms of the Report.