mfi0105

COMHAIRLE NAN EILEAN SIAR

FINANCE SUB-COMMITTEE

Minute of Meeting held in the Council Offices, Stornoway, on Monday 28 May 2001 at 4.00 pm

PRESENT

Mr Roderick J Murray (Chairman)

Mr Alex A MacDonald

Mr Angus Nicolson

Mr Philip McLean

Mr Norman A Macdonald

Mr Donald Maclean

APOLOGIES

Mrs Mary Bremner

MINUTES

Tributes:

The Chairman paid tribute to Ms Dena Macleod who had recently organised and taken part in a 340 mile sponsored cycle the length of the Western Isles

Finance Sub-Committee

43

The Minute of Meeting of 26 March 2001 was approved.

REVENUE AND CAPITAL MONITORING

Non- Housing Capital Monitoring 1 April 2000-31 March 2001

44

The Director of Finance submitted a Report on the Non-Housing Capital expenditure for the year to 31 March 2001.

It was agreed to recommend that:

(1) Members note the final capital expenditure to 31 March 2001 and approve the Slippage and Acceleration to/from the 2001/2002 Initial Committed Programme and specifically;

(2) £25,000 be transferred from the External Fabric Repairs project at Stornoway Town Hall to fund the internal repainting of the Town Hall;

(3) Additional expenditure of £6,000, to be funded from estimated future levels of slippage, be allocated to the West Side Slipway project; and

(4) Capital fees are posted to the financial ledger on a monthly basis or on at least a quarterly basis, and that progress be regularly reported back to Members.

Draft Accounts 2000/01

45

The Director of Corporate Services sought and obtained the Chairman's permission to withdraw this item.

Carry Forward of Revenue Expenditure

46

The Director of Corporate Services sought and obtained the Chairman's permission to withdraw this item.

Fourth Quarter Revenue Out-turn: Housing Revenue Account

47

The Director of Housing submitted a Report giving information in relation to expenditure incurred on the Housing Revenue Account for the period 1 April 2000 to 31 March 2001. It was indicated in the Report that there was a surplus of £188,882 on the Housing Revenue Accounts and proposals were set out for allocating the surplus between the Housing Revenue Account reserves.

It was agreed to recommend that:

(1) £150,000 be transferred to the Housing Revenue Account Repairs and Renewals reserve and £38,882 be transferred to the Housing Revenue Account reserve;

(2) £94,725 is transferred from the Housing Revenue Account Repairs and Renewals reserve to allow the completion of the HRA Balivanich Regeneration 2000-01 programme; and

(3) £35,000 of the underspend be carried forward into 2001/02 for planned maintenance £30,000) and staff costs (£5,000).

Housing Revenue Account Capital Programme 2000/01: Final Out-turn

48

The Director of Housing submitted a Report giving information in relation to expenditure incurred on the Housing Revenue Account Capital Programme for the period 1 April 2000 to 31 March 2001. The Report set out these projects which had given rise to significant variations (over 5%) in the Programme.

It was agreed to recommend that:

(1) the Housing Capital Programme 2000/01 be revised as detailed at Appendix 1 to take account of project variations; and

(2) the expenditure profile shown at Appendix 2 be noted.

Housing Revenue Account Capital Programme 2001/02

49

The Director of Housing submitted a Report setting out the proposed Housing Revenue Account Capital Programme 2001/02. It was indicated in the Report that the level of consent plus useable receipts and CFCR was £1.983m. It was stated that the proposed Programme reflected the priorities for investment set out in the Comhairle's Housing Plan, namely:

(1) elimination of condensation and dampness;

(2) replacement of defective windows and doors;

(3) improve internal services;

(4) rewire properties in line with IEE Regulations; and

(5) installation of hard wired carbon monoxide detectors.

It was further indicated that the Programme included a "Buffer Programme" of £40,000 to take account of any slippage. The "Buffer" element consisted of a heating upgrade project . Details of the proposed Housing Capital Programme 2001/02 were appended to the Report.

It was agreed to recommend that the Housing Revenue Account Capital Programme for 2001/02 as set out at Appendix 3 to the Report by the Director of Housing be approved.

TREASURY MANAGEMENT

Treasury Management Monitoring Report to 31 March 2001

50

With reference to Item 18 of the Minute of Meeting of 29 January 2001, the Director of Finance submitted a Report outlining the borrowing and investment undertaken in the Treasury Management function for the period ended 31 March 2001.

It was agreed to recommend that the Director of Finance be permitted to borrow the cash requirement of £7m for the next 6 months identified in the Report.

Annual Treasury Management Report

51

With reference to Item 51 of the Minute of Meeting of 29 May 2000, the Director of Finance submitted a Report detailing the operation and outcome of the Comhairle's Treasury Management Operation for the financial year 2000/01. It was noted that there had been a total saving in loan charges of £154,623 during the year.

It was agreed to note the Report.

It was agreed that the public, including the press, be excluded from the meeting during consideration of the following Item on the grounds that exempt information in terms of Schedule 7A of the Local Government (Scotland Act 1973, as defined in Standing Order 26 (h) would be disclosed, namely, information relating to the amount of any expenditure proposed to be incurred by the Comhairle under any particular contract, the acquisition or disposal of property or the supply of goods or services.

DLO/DSO Performance Monitoring Reports: Year Ended 31 March 2001

52

With reference to Item 33 of the Minute of Meeting of 26 March 2001, there were submitted Reports summarising income and expenditure for each of the Comhairle's DLO/DSOs for the period 1 April 2000 to 31 March 2001, together with performance monitoring reports relating to each DLO/DSO as follows:-

(a) Other Catering, School Meals, and Building Cleaning

Report by Director of Education

(b) Street Cleansing, Burial Grounds, Refuse Collection and Stornoway Library Cafeteria

Report by Director for Sustainable Communities

It was agreed to note these Reports.

Mr R J Murray, having declared an interest in Item 52(c) below, withdrew from the meeting. The Convener took the Chair for the relevant items.

(c) Technical Services DSO/DLO

Report by Director of Technical Services

The Report disclosed an estimated loss of £667k by the Technical Services DSO/DLO's for the period to 31 March 2001. The Chief Executive outlined action taking place to return DSO/DLO's to financial stability. It was indicated that more information was required.

It was agreed to note the Report and that a further Report on the losses be brought to a meeting of the Finance Sub-Committee and the next Policy and Resources Committee.

LOCAL TAXATION

Non-Domestic Rates Relief: Businesses Affected by Foot and Mouth Crisis

53

The Director of Finance submitted a Report advising Members of measures introduced by the Scottish Executive to assist businesses affected by the outbreak of foot and mouth disease. These included a number of measures through the non-domestic rates system.

It was agreed to recommend that after consideration of the factors set out in the Report hardship relief should be granted for a period not exceeding three months from 1 April 2001 to businesses affected by the Foot and Mouth outbreak where they occupied premises with a rateable value of £12,000 or less.

Local Taxation, Billing and Recovery

54

With reference to Item 34 of the Minute of Meeting of the Finance Sub-Committee of 26 March 2001, the Director of Finance submitted a Progress Report advising Members of the current state of collection and recovery of Council Tax, Non-Domestic Rates and Community Charge for the period ended 31 March 2001.

It was agreed to recommend that Council Tax instalments for 2001/02 be as set out in the Report.

Sundry Debtors: Quarterly Report to End March 2001

55

With reference to Item 115 of the Minute of Meeting of 20 November 200, the Director of Finance submitted a Report summarising the position regarding the collection of sundry debt accounts, excluding local taxation as at 31 March 2001.

It was agreed to note the Report.

Recommendations for Write-Offs on Certain Sundry and Non-Domestic Rates

56

The Director of Finance submitted a Report recommending that certain debts in excess of £1,000 be written off in the current financial year under the terms of the Comhairle's Financial Regulations.

It was agreed to recommend that the Director of Finance be authorised to write-off the debts detailed in the Appendix to his Report.

Rent Arrears: 2000/01

57

The Director of Housing submitted a Report setting out the performance regarding the recovery and control of current and former tenant rent arrears during the financial year 2000/01. It was indicated that the level of rent arrears had declined steadily for 13 years despite increases in the rental to be collected but that during this past year, due to the IT strike and its aftermath, arrears had risen significantly. The Report also set out proposed changes to rent arrears management procedures.

It was agreed to recommend that:

(1) the rent arrears figures in this Report be noted; and

(2) changes to rent arrears management practice as set out in paragraph 7.1 of the Report be agreed.

SPECIFIC ISSUES

Energy Efficiency Capital Programme

58

The Director of Technical Services submitted a Report regarding proposals for energy efficiency and improvements in Education premises. It was stated that provision of £40,000 per annum had been included in the Capital Programme for energy efficiency improvements in Education premises for the three years 2000/01, 01/02 and 02/03, of which £7,000 had already been utilised as part of the 2000/01 programme. It was proposed that the remaining sum available be utilised at a number of premises to install insulation, hot water controls, modem links to BEMS controls, and lighting upgrades.

It was agreed to recommend, for the Sub-Committee's interest, that the following works be carried out, funded by the £40,000 included in the Capital Programme for energy efficiency in Education premises:

(1) loft insulation at Lionel School, Leverhulme Memorial School, Berneray School and Eoligarry School (£18,000);

(2) installation of hot water controls at Eoligarry School (£3,000);

(3) installation of modem links to the BEMS controls at Barvas, Uig, Pairc, Tolsta and Breasclete Schools using automatic switches to share the existing fax lines (£6,000); and

(4) high efficiency lighting upgrade at Back School (£6,000).

Energy Efficiency Capital

59

The Director of Technical Services submitted a Report regarding proposals for energy efficiency and improvements in Social Work premises. It was stated that provision of £30,000 had been allocated in the Capital Programme for 2001/02 for such works, of which £15,000 had been spent on the installation of a Building Energy Management System as part of the upgrading of Trainaid Old People's Home, North Uist. It was proposed that the remaining sum of £15,000 be used to complete the upgrading of lighting at Dun Berisay .

It was agreed to recommend, for the Sub-Committee's interest, that £15,000 be utilised to complete the upgrading of lighting at Dun Berisay to be funded from the Capital Programme for energy efficiency in Social Work premises.

Water Services Improvements Programme

60

The Director of Technical Services submitted a Report regarding proposals for the Water Services Upgrading Programme. It was stated that £40,000 per annum was allocated in the Capital Programme for 2001/02 and 2002/03 for Water Services Improvements in Education Premises.

It was agreed to recommend that:

(1) £10,000 be used to install new cold water storage tanks at Paible and Iochdar Schools, which tanks had been purchased as part of the 2000/01 programme;

(2) £10,000 be used to replace further sections of copper hot water pipework with stainless steel at Sgoil Lionacleit;

(3) a quotation be obtained from specialist contractors, Aquazur, to carry out surveys and risk assessments in a number of schools and that the sum of £10,000 be reserved for this; and

(4) the remaining £10,000 be reserved to carry out high priority works identified by the above survey.

It was agreed that the public, including the press, be excluded from the meeting during consideration of the following Item on the grounds that exempt information in terms of Schedule 7A of the Local Government (Scotland) Act 1973 as defined in Standing Order 26(f), namely that exempt information relating to the financial or business affairs of any particular person (other than the Comhairle) would be disclosed.

Mr Alexander M Macdonald and Mr Angus Nicolson, each having declared an interest, left the meeting during consideration of the following item.

Heather Isles Meats Ltd: Lewis and Harris Auction Mart Ltd

61

The Director of Finance submitted a Report advising Members of the current position regarding payment of outstanding debts to the Comhairle.

It was agreed to note the Report.

___

PRESENT	Mr Roderick J Murray (Chairman)
	Mr Alex A MacDonald
	Mr Angus Nicolson	Mr Philip McLean
	Mr Norman A Macdonald	Mr Donald Maclean

APOLOGIES	Mrs Mary Bremner

		MINUTES
Tributes:		The Chairman paid tribute to Ms Dena Macleod who had recently organised and taken part in a 340 mile sponsored cycle the length of the Western Isles
Finance Sub-Committee	43	The Minute of Meeting of 26 March 2001 was approved.
		REVENUE AND CAPITAL MONITORING
Non- Housing Capital Monitoring 1 April 2000-31 March 2001	44	The Director of Finance submitted a Report on the Non-Housing Capital expenditure for the year to 31 March 2001. It was agreed to recommend that: (1) Members note the final capital expenditure to 31 March 2001 and approve the Slippage and Acceleration to/from the 2001/2002 Initial Committed Programme and specifically; (2) £25,000 be transferred from the External Fabric Repairs project at Stornoway Town Hall to fund the internal repainting of the Town Hall; (3) Additional expenditure of £6,000, to be funded from estimated future levels of slippage, be allocated to the West Side Slipway project; and (4) Capital fees are posted to the financial ledger on a monthly basis or on at least a quarterly basis, and that progress be regularly reported back to Members.
Draft Accounts 2000/01	45	The Director of Corporate Services sought and obtained the Chairman's permission to withdraw this item.
Carry Forward of Revenue Expenditure	46	The Director of Corporate Services sought and obtained the Chairman's permission to withdraw this item.
Fourth Quarter Revenue Out-turn: Housing Revenue Account	47	The Director of Housing submitted a Report giving information in relation to expenditure incurred on the Housing Revenue Account for the period 1 April 2000 to 31 March 2001. It was indicated in the Report that there was a surplus of £188,882 on the Housing Revenue Accounts and proposals were set out for allocating the surplus between the Housing Revenue Account reserves.
		It was agreed to recommend that:
		(1) £150,000 be transferred to the Housing Revenue Account Repairs and Renewals reserve and £38,882 be transferred to the Housing Revenue Account reserve;
		(2) £94,725 is transferred from the Housing Revenue Account Repairs and Renewals reserve to allow the completion of the HRA Balivanich Regeneration 2000-01 programme; and
		(3) £35,000 of the underspend be carried forward into 2001/02 for planned maintenance £30,000) and staff costs (£5,000).
Housing Revenue Account Capital Programme 2000/01: Final Out-turn	48	The Director of Housing submitted a Report giving information in relation to expenditure incurred on the Housing Revenue Account Capital Programme for the period 1 April 2000 to 31 March 2001. The Report set out these projects which had given rise to significant variations (over 5%) in the Programme. It was agreed to recommend that: (1) the Housing Capital Programme 2000/01 be revised as detailed at Appendix 1 to take account of project variations; and (2) the expenditure profile shown at Appendix 2 be noted.
Housing Revenue Account Capital Programme 2001/02	49	The Director of Housing submitted a Report setting out the proposed Housing Revenue Account Capital Programme 2001/02. It was indicated in the Report that the level of consent plus useable receipts and CFCR was £1.983m. It was stated that the proposed Programme reflected the priorities for investment set out in the Comhairle's Housing Plan, namely: (1) elimination of condensation and dampness; (2) replacement of defective windows and doors; (3) improve internal services; (4) rewire properties in line with IEE Regulations; and (5) installation of hard wired carbon monoxide detectors. It was further indicated that the Programme included a "Buffer Programme" of £40,000 to take account of any slippage. The "Buffer" element consisted of a heating upgrade project . Details of the proposed Housing Capital Programme 2001/02 were appended to the Report. It was agreed to recommend that the Housing Revenue Account Capital Programme for 2001/02 as set out at Appendix 3 to the Report by the Director of Housing be approved.

		TREASURY MANAGEMENT
Treasury Management Monitoring Report to 31 March 2001	50	With reference to Item 18 of the Minute of Meeting of 29 January 2001, the Director of Finance submitted a Report outlining the borrowing and investment undertaken in the Treasury Management function for the period ended 31 March 2001. It was agreed to recommend that the Director of Finance be permitted to borrow the cash requirement of £7m for the next 6 months identified in the Report.
Annual Treasury Management Report	51	With reference to Item 51 of the Minute of Meeting of 29 May 2000, the Director of Finance submitted a Report detailing the operation and outcome of the Comhairle's Treasury Management Operation for the financial year 2000/01. It was noted that there had been a total saving in loan charges of £154,623 during the year. It was agreed to note the Report.
		It was agreed that the public, including the press, be excluded from the meeting during consideration of the following Item on the grounds that exempt information in terms of Schedule 7A of the Local Government (Scotland Act 1973, as defined in Standing Order 26 (h) would be disclosed, namely, information relating to the amount of any expenditure proposed to be incurred by the Comhairle under any particular contract, the acquisition or disposal of property or the supply of goods or services.
DLO/DSO Performance Monitoring Reports: Year Ended 31 March 2001	52	With reference to Item 33 of the Minute of Meeting of 26 March 2001, there were submitted Reports summarising income and expenditure for each of the Comhairle's DLO/DSOs for the period 1 April 2000 to 31 March 2001, together with performance monitoring reports relating to each DLO/DSO as follows:- (a) Other Catering, School Meals, and Building Cleaning Report by Director of Education (b) Street Cleansing, Burial Grounds, Refuse Collection and Stornoway Library Cafeteria Report by Director for Sustainable Communities It was agreed to note these Reports. Mr R J Murray, having declared an interest in Item 52(c) below, withdrew from the meeting. The Convener took the Chair for the relevant items. (c) Technical Services DSO/DLO Report by Director of Technical Services The Report disclosed an estimated loss of £667k by the Technical Services DSO/DLO's for the period to 31 March 2001. The Chief Executive outlined action taking place to return DSO/DLO's to financial stability. It was indicated that more information was required. It was agreed to note the Report and that a further Report on the losses be brought to a meeting of the Finance Sub-Committee and the next Policy and Resources Committee.

		LOCAL TAXATION
Non-Domestic Rates Relief: Businesses Affected by Foot and Mouth Crisis	53	The Director of Finance submitted a Report advising Members of measures introduced by the Scottish Executive to assist businesses affected by the outbreak of foot and mouth disease. These included a number of measures through the non-domestic rates system. It was agreed to recommend that after consideration of the factors set out in the Report hardship relief should be granted for a period not exceeding three months from 1 April 2001 to businesses affected by the Foot and Mouth outbreak where they occupied premises with a rateable value of £12,000 or less.
Local Taxation, Billing and Recovery	54	With reference to Item 34 of the Minute of Meeting of the Finance Sub-Committee of 26 March 2001, the Director of Finance submitted a Progress Report advising Members of the current state of collection and recovery of Council Tax, Non-Domestic Rates and Community Charge for the period ended 31 March 2001. It was agreed to recommend that Council Tax instalments for 2001/02 be as set out in the Report.
Sundry Debtors: Quarterly Report to End March 2001	55	With reference to Item 115 of the Minute of Meeting of 20 November 200, the Director of Finance submitted a Report summarising the position regarding the collection of sundry debt accounts, excluding local taxation as at 31 March 2001.
		It was agreed to note the Report.
Recommendations for Write-Offs on Certain Sundry and Non-Domestic Rates	56	The Director of Finance submitted a Report recommending that certain debts in excess of £1,000 be written off in the current financial year under the terms of the Comhairle's Financial Regulations. It was agreed to recommend that the Director of Finance be authorised to write-off the debts detailed in the Appendix to his Report.
Rent Arrears: 2000/01	57	The Director of Housing submitted a Report setting out the performance regarding the recovery and control of current and former tenant rent arrears during the financial year 2000/01. It was indicated that the level of rent arrears had declined steadily for 13 years despite increases in the rental to be collected but that during this past year, due to the IT strike and its aftermath, arrears had risen significantly. The Report also set out proposed changes to rent arrears management procedures.
		It was agreed to recommend that: (1) the rent arrears figures in this Report be noted; and (2) changes to rent arrears management practice as set out in paragraph 7.1 of the Report be agreed.
		SPECIFIC ISSUES
Energy Efficiency Capital Programme	58	The Director of Technical Services submitted a Report regarding proposals for energy efficiency and improvements in Education premises. It was stated that provision of £40,000 per annum had been included in the Capital Programme for energy efficiency improvements in Education premises for the three years 2000/01, 01/02 and 02/03, of which £7,000 had already been utilised as part of the 2000/01 programme. It was proposed that the remaining sum available be utilised at a number of premises to install insulation, hot water controls, modem links to BEMS controls, and lighting upgrades.
		It was agreed to recommend, for the Sub-Committee's interest, that the following works be carried out, funded by the £40,000 included in the Capital Programme for energy efficiency in Education premises: (1) loft insulation at Lionel School, Leverhulme Memorial School, Berneray School and Eoligarry School (£18,000); (2) installation of hot water controls at Eoligarry School (£3,000); (3) installation of modem links to the BEMS controls at Barvas, Uig, Pairc, Tolsta and Breasclete Schools using automatic switches to share the existing fax lines (£6,000); and (4) high efficiency lighting upgrade at Back School (£6,000).
Energy Efficiency Capital	59	The Director of Technical Services submitted a Report regarding proposals for energy efficiency and improvements in Social Work premises. It was stated that provision of £30,000 had been allocated in the Capital Programme for 2001/02 for such works, of which £15,000 had been spent on the installation of a Building Energy Management System as part of the upgrading of Trainaid Old People's Home, North Uist. It was proposed that the remaining sum of £15,000 be used to complete the upgrading of lighting at Dun Berisay .
		It was agreed to recommend, for the Sub-Committee's interest, that £15,000 be utilised to complete the upgrading of lighting at Dun Berisay to be funded from the Capital Programme for energy efficiency in Social Work premises.
Water Services Improvements Programme	60	The Director of Technical Services submitted a Report regarding proposals for the Water Services Upgrading Programme. It was stated that £40,000 per annum was allocated in the Capital Programme for 2001/02 and 2002/03 for Water Services Improvements in Education Premises.
		It was agreed to recommend that: (1) £10,000 be used to install new cold water storage tanks at Paible and Iochdar Schools, which tanks had been purchased as part of the 2000/01 programme; (2) £10,000 be used to replace further sections of copper hot water pipework with stainless steel at Sgoil Lionacleit;
		(3) a quotation be obtained from specialist contractors, Aquazur, to carry out surveys and risk assessments in a number of schools and that the sum of £10,000 be reserved for this; and
		(4) the remaining £10,000 be reserved to carry out high priority works identified by the above survey.
		It was agreed that the public, including the press, be excluded from the meeting during consideration of the following Item on the grounds that exempt information in terms of Schedule 7A of the Local Government (Scotland) Act 1973 as defined in Standing Order 26(f), namely that exempt information relating to the financial or business affairs of any particular person (other than the Comhairle) would be disclosed.
		Mr Alexander M Macdonald and Mr Angus Nicolson, each having declared an interest, left the meeting during consideration of the following item.