Agenda and minutes

Apologies for absence were received from Alderman and Sheriff Charles Bowman, John Fletcher, Stuart Fraser, Lucy Frew, Deputy Brian Harris, Tom Hoffman, Clare James, Alastair King, Deputy Robert Merrett, Oliver Lodge, James de Sausmarez, Ian Seaton, Sir Michael Snyder and Philip Woodhouse.

The Town Clerk advised Members that Greg Lawrence and Alderman Michael Mainelli had received dispensations from the Standards Committee to speak and vote on matters relating to the level of the Business Rates Premium.

Alderman Vincent Keaveny declared a pecuniary interest in the matter of the level of the Business Rates Premium, as it related to item 8 of the agenda (“City Fund 2016/17 Budget Report and Medium Term Financial Strategy”)by virtue of being a Partner at a ratepaying business. Alderman Keaveny advised the Committee that he did not have a dispensation from the Standards Committee, and would not speak or vote on issues relating to level of the Business Rates Premium.

Jeremy Mayhew declared an interest in items 14 and 25 (“Non-Domestic Rates – Review of Discretionary Rate” and the non-public appendix to this report) by virtue of being a Director of the London Chamber of Commerce.

Jeremy Mayhew declared an interest in item 26 (“Oracle Programme Closure Report”) by virtue of having a business relationship with PriceWaterhouse Cooper, who were named in the report.

To agree the public minutes and non-public summary of the meeting held on 19 January 2016.

RESOLVED – That the public minutes and summary of the meeting held on 19 January 2016 be approved as an accurate record.

Report of the Town Clerk.

The Committee considered a report of the Town Clerk which set out actions outstanding from previous meetings of the Committee.

RESOLVED – That the Committee notes the report.

RESOLVED – That the Committee notes the draft public minutes of the meeting of the Efficiency and Performance Sub-Committee which was held on 13 January 2016.

RESOLVED – That the Committee notes the draft public minutes of the joint meeting of the Resource Allocation Sub-Committee and the Efficiency and Performance Sub-Committee which was held on 14 January 2016.

Report of the Town Clerk.

RESOLVED – That the Committee notes the draft minutes of the Business Ratepayers’ Consultation Meeting which was held on 3 February 2016.

Report of the Chamberlain. This report will also be considered by the Court of Common Council on 3 March 2016.

The Committee considered a report of the Chamberlain which presented the Committee with the overall financial position of the City Fund. The report set out the overall financial framework and Medium Term Financial Plan and the City Fund Budget requirement. The report requested that Members recommend to the Court of Common Council that the Council Tax level for 2016/17 remains unchanged, and asked Members to considered whether an increase in the Business Rates Premium should be recommended to the Court.

The Chairman advised the Committee that the budget setting process for this year had been particularly consultative, in light of the challenging budget position, particularly in relation to the budget for the City of London Police. He highlighted that three Member breakfast meetings had been held, hosted jointly by the Chairmen of Finance Committee and Police Committee, in November 2015 and January 2016, to give Members the opportunity to discuss the Police budget position in detail. He also noted that the issue of the Police’s budget position, and the potential impact this may have on the discussions regarding whether to increase the level of the Business Rates Premium.

The Chairman noted that this issue had also been discussed at the joint meeting of the Resource Allocation and Efficiency and Performance Sub-Committees (with Committee Chairman in attendance) on 21 January 2016, where an informal vote had indicated that those present were in favour of increasing the Business Rates Premium (by a margin of 16 to 10). The Chairman highlighted that a further discussion had been held at the meeting of the Policy and Resources Committee on 21 January 2016, where a vote had indicated that those present were against an increase in the level of the Business Rates Premium (by a margin of 15 to 14).

The Chairman also noted that

Report of the Chamberlain. This report will also be considered by the Court of Common Council on 3 March 2016.

The Committee considered a report of the Chamberlain which provided the 2015/16 and 2016/17 budgets for each of the City of London Corporation’s three main funds. The Town Clerk explained that these would be submitted to the Court of Common Council, subject to amendments arising from the decisions made by the Committee at the consideration of the previous agenda item.

RESOLVED – That the Committee:

a)    notes the latest revenue budgets for 2015/16;

b)    agrees the 2016/17 revenue budgets, subject to any amendments on the City Fund that may be agreed in relation to the report on “City Fund – 2016/17 Budget Report and Medium Term Financial Strategy?;

c)    agrees the capital budgets;

d)    delegates authority to the Chamberlain to determine the financing of the capital budgets; and

e)    submits this report to the Court of Common Council for its approval.

Report of the Chamberlain.

The Committee considered a report of the Chamberlain which provided the Committee with the quarterly Revenue Budget monitoring update to the end of December 2015.

RESOLVED – That the Committee notes the report.

Report of the Chamberlain on behalf of the Performance and Strategy Summit Group. This report will also be considered by various Committees as set out within the report.

The Committee considered a report of the Chamberlain (on behalf of the Performance and Strategy Summit Group) which provided the Committee with the outcome of the cross-cutting review of Income Generation, which had arisen as a part of the Service Based Review.

RESOLVED – That the Committee endorses the overall report and its recommendations.

Report of the Chamberlain.

The Committee considered a report of the Chamberlain which provided the Committee with information regarding the cost of Insurance Premiums paid by the Corporation, following a request for this information at the Committee’s last meeting.

The Chairman asked for clarification regarding the reason for the increase in the Pool Re Terrorism premium. The Chamberlain explained that there were two main reasons for the increase. These were due to a 10% increase in the premium rates for material damage and a requirement from Pool Re that the recovery of VAT could not be assumed for properties subject to a commercial leasehold contract. Therefore, this effectively increased the sum insured of those properties in the commercial property portfolio not directly managed by the City by 20%.

RESOLVED – That the Committee notes the report.

Joint report of the Town Clerk and Director of Human Resources. This report was also considered by the Establishment Committee on 4 February 2016 and will be considered by the Policy and Resources Committee on 18 February 2016.

The Committee considered a joint report of the Town Clerk and the Director of Human Resources which set out the process by which disciplinary action could be taken in respect of the Head of Paid Service (Town Clerk), Section 151 Officer (Chamberlain) and Monitoring Officer (Comptroller and City Solicitor).

The Committee also received a copy of the minutes of the meeting of the Establishment Committee on 4 February at which this report had been considered. The Town Clerk explained that the Establishment Committee had agreed to expand the role of the Chairman of the Finance Committee in the disciplinary process, such that they would now be involved in the oversight of the investigation in relation to all three of the aforementioned officers, rather than just the Chamberlain.

A Member suggested that the Chairman of the General Purposes Committee of Aldermen should also be included in the disciplinary process. The Town Clerk explained that it may be more appropriate for that Committee to be involved as part of the Statutory Officer Review Panel, which was a matter for the Policy and Resources Committee (and then the Court of Common Council) to determine.

RESOLVED – That the Committee agrees that the Chairman of the Finance Committee, in conjunction with the Chairman of the Policy and Resources Committee and the Chairman of the Establishment Committee, will be responsible for the management of the investigation of complaints or concerns regarding the Head of Paid Service (Town Clerk), Section 151 Officer (Chamberlain) and Monitoring Officer (Comptroller and City Solicitor).

Report of the Chamberlain.  This report has two non-public appendices at item 25 on the agenda. 

The Committee considered a report of the Chamberlain which advised the Committee of the results of the annual review of discretionary non-domestic rate relief which was currently being granted under Section 47 of the Local Government Finance Act 1988.

RESOLVED – That the Committee agrees that discretionary relief be continued at the levels previously determined for all organisations reported noting that for 2016/17 the total estimated cost of the discretionary relief to be met from the City’s share of business rates is £106,603 and £2,860 will be met from the premium.

Report of the Chamberlain.

The Committee considered a report of the Chamberlain which sought approval for the write off of irrecoverable amounts in excess of £5,000 in relation to non-domestic rates debts and up to £1,000 in relation to council tax debts.

RESOLVED – That the Committee:

a)    Approves the write off of irrecoverable non-domestic rates in the sum of £2,205,822 noting that £631,204 will be met by the City Corporation and £18,336 from the premium; and

b)    Approves the write off of irrecoverable council tax in the sum of £16,509.

Report of the Chamberlain.

The Committee considered a report of the Chamberlain which provided updates regarding the top risks within the Departmental Risk Register.

RESOLVED – That the Committee notes the report.

Report of the Chamberlain.

Consideration was given to a report of the Chamberlain which provided the Committee with information regarding the current balance of the Finance Committee Contingency Funds for the current year.

RESOLVED – That the Committee notes the report.

There were no questions.

There were no urgent items.

MOTION - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

RESOLVED - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

21-32, 34-36                                      3

33                                                        1

37                                                        1 and 3

To agree the non-public minutes of the meeting held on 19 January 2016.

The non-public minutes of the meeting held on 19 January 2016 were approved as an accurate record.

Report of the Town Clerk.

The Committee considered and noted a report of the Town Clerk which set out actions outstanding from previous non-public minutes of the Committee.

The Committee noted the draft non-public minutes of the Efficiency and Performance Sub-Committee which was held on 13 January 2016.

The Committee noted the draft non-public minutes of the joint meeting of the Resource Allocation Sub-Committee and the Efficiency and Performance Sub-Committee which was held on 14 January 2016.

Non-public appendices to the report of the Chamberlain at agenda item 14.

The Committee noted the non-public appendices to the report of the Chamberlain regarding the review of discretionary rate relief for non-domestic rates.

Report of the Chamberlain. This report will also be submitted to the Projects Sub-Committee on 25 February 2015 and the IT Sub-Committee on 9 March 2016.

The Committee considered and approved a Gateway 7 report of the Chamberlain which provided the Committee with the project closure report for the Oracle Programme.

Report of the City Surveyor.  This report will also be considered by the Court of Common Council on 3 March 2016.

The Committee considered and approved a report of the City Surveyor which requested the Committee to recommend to the Court to appoint a company as the Corporation’s managing agent for energy procurement for a two year period (October 2016 to September 2018).

Report of the Chamberlain.

The Committee considered and approved a report of the Chamberlain which provided the proposed strategy for procuring Insurance (June programme) for the City of London in 2016/17 and sought Member approval for the recommended evaluation criteria to be used in the selection of a preferred supplier(s).

Report of the City Surveyor. This report will also be considered by the Projects Sub-Committee on 25 February 2016 and the Corporate Asset Sub-Committee on 11 March 2016.

The Committee noted a report of the City Surveyor which provided an update regarding Phase 1 of the Central Criminal Plant Replacement Works.

Joint report of the Chamberlain and the City Surveyor.  This report was also considered by the Property Investment Board on 10^th February 2016.

The Committee noted a joint report of the Chamberlain and City Surveyor which provided Members with a background to the appraisal metrics used in City of London Corporation property reports to Property Investment Board and Finance Committee.

Report of the Director of Community and Children’s Services.

The Committee considered and approved a report of the Director of Community and Children’s Services which requested approval of procurement waivers for one year extensions for three contracts with providers delivering early intervention and prevention services through group and individual support to older people, carers and people with memory or cognitive difficulties.

Report of the Director of Community and Children’s Services.

The Committee considered and approved a report of the Director of Community and Children’s Services which requested approval of procurement waivers for two contracts for community health and wellbeing, to enable a retender exercise.

Report of the Director of Community and Children’s Services. This report will also be considered by the Community and Children’s Services Committee on 12 February 2016.

The Committee noted a report of the Director of Community and Children’s Services which informed the Committee of a waiver approved under urgency by the Chamberlain for an emergency placement in a family assessment unit.

Report of the Town Clerk.

The Committee noted a report of the Town Clerk detailing a non-public decision taken under delegated authority procedures regarding funding for repairs to the Guildhall West Wing Staircase.

There were no non-public questions relating to the work of the Committee.

The Committee considered and approved an item of urgent business relating to a property transaction.

Report of the Chamberlain. This report was considered and approved by the Establishment Committee at its meeting on 4 February 2016, subject to the endorsement of the Finance Committee.

The Committee considered and endorsed a report of the Chamberlain regarding the restructure of his Department.