Apologies for absence were received from Councillor Greenslade.

There were no disclosures of interest.

The minutes of the meeting held on 9 July 2014 to be submitted and signed. 

Copies of the minutes of this meeting are usually available seven working days following the meeting.

(All minutes are available on the Council’s website.)

The minutes of the meeting held on 9 July 2014 were submitted and signed.

Presentation by the Economic Development Officer and Head of Regeneration and Development

The Economic Development Manager gave a presentation on the key observations from the Watford Economic Growth and Delivery Assessment.  He explained about the key employment sectors in Watford, the town’s role in the region, commuting data and various comparisons with neighbouring authorities.  He spoke about future growth scenarios for Watford and the potential for new jobs in the town.  He highlighted key conclusions and the policy implications for the Council.

Following a question from Councillor Watkin, Portfolio Holder, the Economic Development Manager advised that there was a pressure from residential developers to purchase empty office buildings.  He said that it should be noted that many of the sites were held by pensions or hedge funds.  He added that if empty sites were redeveloped into residential units, it may be more difficult at a later date to redevelop neighbouring sites for commercial use, as the impact on residential properties would need to be taken into account.  He concluded by stating that it was important not to compromise the future business use of Clarendon Road.

In response to a question from the Portfolio Holder about the redevelopment of industrial sites, the Economic Development Manager advised that he was aware some landlords wanted to redevelop premises, but they were unable to carry out any works as the premises were tenanted. 

The Economic Development Manager explained that in relation to Watford Business Park and its redevelopment, the Council was working with the owners of Croxley Business Park.  It is hoped that by working in partnership, it would give greater opportunities for businesses to be temporarily decanted to the neighbouring Business Park whilst the works were carried out.  He commented that he was sure Members were aware of the Council’s need to retain Business rates following the introduction of the new retention scheme introduced in 2013. 

Councillor Derbyshire referred to the officer’s comments about providing incentives to businesses and asked for further clarification. 

The Economic Development Manager informed the Panel that in respect of Clarendon Road, officers were responsive to concerns about the viability of new developments.  It had been agreed that in some cases it would be possible to incorporate some residential elements in schemes as long as there was no net  loss of business space.  The future development of sites could lead to increased higher rental levels which may encourage other owners to redevelop their sites.  He advised that many of the office premises in Clarendon Road were not fit for modern companies due to their age and internal layout.  It was important to ensure that a planning policy framework was in place but with sufficient flexibility to provide a range of options.  Any business rates incentives would have an impact on the Council’s finances and had to be considered very carefully before being offered as an incentive to businesses.

In response to a question about the British Telecom premises off Exchange Road, the Economic Development Manager advised that for some time planning officers had considered this as  ...  view the full minutes text for item 10.

Report of Finance

The Finance Digest shows the key indicators that describe Watford’s financial health. It provides an update on the Council's budget including effect on reserve balances as well as performance within a discrete number of service areas. Variances to budgets are reflected in the forecast outturn for 2014/15 which are loaded on to the Council's financial management system that continue to be monitored throughout the financial year.

Budget Panel is asked to review the Finance Digest.

The Panel received the latest Finance Digest, which covered the period to the end of July. The Interim Head of Finance advised that officers had tried to make the document more user-friendly.  He highlighted some of the key points within the document. 

Councillor Derbyshire referred to the new business rates collection scheme.  He suggested that the Council needed to ensure it had included a reasonable estimate when calculating the annual budget and council tax requirements. 

The Interim Head of Finance responded that when the original budget had been prepared no assumptions had been made about business rates growth. Included within the report was the baseline figure which had been set by central Government.  The £4,907,000 shown in the General Fund included the Revenue Support Grant and the re-distributed business rates.  In future versions of the reports the business rates would be shown separately. 

Councillor Taylor noted the comments about the risk premium linked to SLM and asked whether any of the other external service providers had the same clause in their contracts.

The Interim Head of Finance responded that he was unsure and would report back to the Panel.  He noted that the contract with SLM had included two new buildings and the estimated utility costs were unknown at the time. 

The Interim Head of Finance confirmed that the additional funds agreed at full Council for the IT investment were from the capital budget, which would be included in the November report to the Panel.

Following questions from the Chair about the loss of commercial rents, the Interim Head of Finance explained that this was a forecast variance for the year and related to reduced rental income from Intu and Cardiff Road.  He would provide further information to the Panel.

In response to Councillor Joynes’ concerns about the savings connected to the health care contract, the Interim Head of Finance advised that this was due to Human resources re-negotiating the contract with the provider.  He would obtain further information and circulate it to the Panel. 

The Interim Head of Finance circulated a draft copy of the latest Medium Term Financial Strategy.  He highlighted aspects of the strategy.  He said that there was a lot of uncertainty about local government funding from 2016 onwards.  Officers had made certain assumptions in the report.  He added that officers could not comment on whether the Scottish referendum would have any impact on Council funding. 

The Portfolio Holder stated that income from business rates was the Council’s most valuable area of finance.  He reminded Members that appeals or short term changes to business rates had an impact on the Council’s income.  He advised that these changes were agreed by the Valuation Office and not the Council. 

The Interim Head of Finance suggested that one area the Council could focus on was better enforcement.  This ensured that the Council received the income it was entitled to.

In response to comments from Councillor Derbyshire about the reserves, the Interim Head of Finance advised that was why  ...  view the full minutes text for item 11.

·               Tuesday 28 October 2014

·               Tuesday 2 December 2014

·               Thursday 15 January 2015

·               Tuesday 28 October 2014

·               Tuesday 2 December 2014

·               Thursday 15 January 2015