Policy And Resources Committee - 08/01/2018

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 8th January, 2018.

Present:-

BAILIES

COUNCILLORS

Councillor John ALEXANDER, Convener, in the Chair.

The minute of meeting of this Committee of 11th December, 2017 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTES

(a) PENSION SUB-COMMITTEE AND THE PENSION BOARD - 4TH DECEMBER, 2017

(b) PERSONNEL APPEALS SUB-COMMITTEE - 2ND OCTOBER AND 11TH DECEMBER, 2017

The minutes of meetings of the above Sub-Committees, copies of which are appended hereto, were submitted for information and record purposes (Appendices I and II).

III REVENUE MONITORING 2017/2018

There was submitted Report No 4-2018 by the Executive Director of Corporate Services providing an analysis of the 2017/2018 projected revenue outturn as at 30th November, 2017 monitored against the adjusted 2017/2018 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund 2017/2018 projected revenue outturn as at 30th November, 2017 was a breakeven position against the adjusted 2017/2018 Revenue Budget. The latest projected outturn was 1,732,000 lower compared with the position reported at 31st October, 2017;

(ii) noted that the Housing Revenue Account as at 30th November, 2017 was projecting a breakeven position against the adjusted HRA 2017/2018 Revenue Budget;

(iii) agreed that the Council Management Team would take every reasonable action to ensure that the 2017/2018 revenue expenditure was below or in line with the adjusted Revenue Budget; and

(iv) instructed the Executive Director of Corporate Services in conjunction with the Council Management Team, to continue to monitor the Council's 2017/2018 projected revenue outturn.

IV CAPITAL EXPENDITURE MONITORING 2017/2018

There was submitted Report No 3-2018 by the Executive Director of Corporate Services appraising elected members of the latest position regarding the Council's Capital Plan 2018-2023.

The Committee noted the contents of the report.

V LOCAL GOVERNMENT FINANCE SETTLEMENT 2018/2019 AND FINANCIAL IMPLICATIONS FOR THE CITY COUNCIL

The Committee acceded to a request for a deputation to address the Committee relative to this item. After the deputation had stated their case they were thanked for their attendance and withdrew.

There was submitted Report No 9-2018 by the Executive Director of Corporate Services advising elected members of the announcement made by the Cabinet Secretary for Finance and the Constitution on 14th December, 2017 in respect of the Local Government Finance Settlement for 2018/2019. The report identified the likely implications for the City Council and set out the current position on the Council's Provisional 2018/2019 Revenue Budget and 2018-2023 Capital Plan. The medium-term financial strategy was also set out.

The Committee:-

(i) noted the contents of the report;

(ii) noted the Council's Revenue and Capital Funding Allocations for 2018/2019, as announced by the Cabinet Secretary for Finance and the Constitution on 14th December, 2017, and the associated implications;

(iii) noted the package of measures that made up the settlement to be provided to Local Government, as advised by the Cabinet Secretary for Finance and the Constitution in a letter to COSLA dated 14th December, 2017 (and as detailed in Section 5 of the report);

(iv) noted the current position on the Council's Provisional 2018/2019 Revenue Budget and 2018-2023 Capital Plan;

(v) noted that the financial information included in this report would be updated as necessary and included in the Council Tax proposals to be submitted to the Special Policy and Resources Committee on 22nd February, 2018;

(vi) agreed the procedures to be followed for setting the 2018/2019 Revenue Budget and Council Tax level, as set out in Section 11 and Appendix 1 of the report; and

(vii) noted the medium-term financial strategy as set out in Section 8 of the report.

John ALEXANDER, Convener.

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE and the PENSION BOARD held at Dundee on 4th December, 2017.

APPENDIX I

Present:-

PENSION SUB-COMMITTEE

COUNCILLORS

PENSION BOARD

Councillor Anne RENDALL, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II MINUTE OF PREVIOUS MEETING

The minute of meeting of 4th September, 2017 was submitted and approved.

III TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 406-2017 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

The Sub-Committee and Board approved the updated Quarterly Risk Register for the Tayside Pension Fund and Tayside Transport Pension Fund and noted there were no changes to risk profiles from the previous report.

IV PENSION ADMINISTRATION PERFORMANCE

There was submitted Report No 407-2017 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

The Sub-Committee and Board noted the content of the report.

V GENERAL DATA PROTECTION REGULATION (GDPR) - IMPACT ON PENSION FUNDS

There was submitted Report No 408-2017 by the Executive Director of Corporate Services informing of the impact of the regulation replacing the existing UK data protection legislation from 25th May, 2018.

The Sub-Committee and Board noted the information contained within the report.

VI PENSION FUND ACCOUNTS AND ANNUAL AUDIT REPORT 2016/2017

There was submitted Report Nos 409-2017, 410-2017 and 411-2017 by the Executive Director of Corporate Services reporting on the outcome of the external audit of Tayside Pension Funds for the year to 31st March, 2017. A copy of the External Auditors Annual Report (Report No 411-2017) and the 2016/2017 Audited Statement of Accounts for the Tayside Pension Funds (Report No 410-2017) were also to be considered by the Policy and Resources and Scrutiny Committees.

The Sub-Committee and Board noted the content of External Auditors Annual Audit Report, in particular that Audit Scotland anticipated issuing an unqualified audit option.

VII TREASURY MANAGEMENT ACTIVITY 2017/2018 (MID-YEAR REVIEW)

There was submitted Report No 412-2017 by the Executive Director of Corporate Services reviewing Tayside Pension Funds Treasury Management activities for the period 1st April, 2017 to 30th September, 2017.

The Sub-Committee and Board noted the information contained therein.

VIII PROPOSED TIMETABLE OF MEETINGS FOR 2018

There was submitted Report No 413-2017 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2018.

The Sub-Committee and Board examined the dates set out in the timetable and agreed the proposed programme of meetings.

IX APPLICATION FOR ADMITTED BODY STATUS

There was submitted Report No 414-2017 by the Executive Director of Corporate Services seeking agreement of the Sub-Committee and Board to the admission of idverde Ltd to the Local Government Pension Scheme as an Admission Body.

The Sub-Committee agreed that from the date of contract, and for the period of their current contract (one year plus option to extend for a further two years), idverde Ltd be admitted to the Local Government Pension Scheme as an Admission Body and to make and enter into an appropriate admission agreement.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

X TAYSIDE PENSIONS FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 415-2017 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter 1, 3 and 5 year periods to 30th September, 2017 reviewing the investment performance of the Main Funds seven Fund Managers (including Property) and the Financing Fund for the quarter 30th September, 2017. It also considered the performance of the Transport Fund which invested with four of these managers.

The report compared investment performance of the Funds with the Funds specific benchmarks which consisted of various stock and security market indices.

The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and Tayside Transport Fund and their Fund Managers.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 399-2017 by the Executive Director of Corporate Services summarising investments and transactions during the period 1st July to 30th September, 2017 reviewing the investment activities of the Main Funds seven Fund Managers for the quarter to 30th September, 2017. The Transport Fund shared three of these managers and their transactions were included.

The report summarised the transactions of each Fund Manager and showed the market values of the Main and Transport Fund.

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and Tayside Transport Pension Fund and their Fund Managers.

(c) QUARTERLY FUNDING REPORT

A verbal update on triennial valuation was given to members.

XI FIDELITY EQUITIES INVESTMENT MANDATE

There was submitted Report No 416-2017 by the Executive Director of Corporate Services detailing proposed amendments to the existing equity investments mandate with Fidelity Investment Management.

The Sub-Committee and Board noted the following changes in respect of the current mandate following consultation with investment managers and consultant:-

- Transfer existing regional mandates to global investment manager within Fidelity Equities Investment.

- Change benchmark in line with investment strategy to MSCI ACWI index.

XII ALTERNATIVE INVESTMENT OPPORTUNITIES UPDATE

There was submitted Report No 417-2017 by the Executive Director of Corporate Services providing an update of the current investment position for this asset class.

The Sub-Committee and Board noted the content of the report.

XIII SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 418-2017 by the Executive Director of Corporate Services reviewing the progress by the Fund Managers regarding positive engagement in line with the Policy on Environmental, Social and Corporate Governance approved by the Sub-Committee (Article V of the minute of meeting of the Pension Sub-Committee of the Policy and Resources Committee of 5th June, 2017 Report No 195-2017 refers).

The Sub-Committee and Board noted the information contained within this report with regards to the activities of the Fund Managers during the six month period ended 30th September, 2017.

XIV PRESENTATION

Patrick Bone, Graeme Rutter and Geoff Day from Schroders gave a short presentation.

It was reported that due to stability in the economy and an increase in foreign investment, the property market was continuing to remain stable. To achieve optimal results for the Fund, the managers would continue to invest in preferred sectors, targeting more defensive income generating investments and continuing to reduce exposure to weaker core funds.

After they had completed their presentation and answered questions from members of the Sub‑Committee and Board, they were thanked for their attendance and withdrew.

Anne RENDALL, Depute Convener.

At MEETINGS of the PERSONNEL APPEALS SUB-COMMITTEE held at Dundee on 2nd October, 2017 and 11th December, 2017.

APPENDIX II

Present:-

COUNCILLORS

Councillor Stewart HUNTER, Convener, in the Chair.

The minute of meeting of this Committee of 24th August, 2017 was held as read.

Unless marked thus * all items stand delegated.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraph 1 of Part I of Schedule 7A of the Act.

I DECLARATION OF INTEREST

There were no declarations of interest.

II APPEAL AGAINST DISMISSAL

It was reported that an appeal against dismissal from an employee of the Neighbourhood Services Department had been submitted.

The Sub-Committee heard the Councils representative and witnesses and, thereafter, the Appellant and his representative.

After questions had been put and answers given by both parties to each other and the witnesses and by members of the Sub-Committee, the parties withdrew.

Thereafter, following careful consideration of all the information, the Sub-Committee agreed that the grounds of the appeal had been substantiated and that the appeal be upheld.

Stewart HUNTER, Convener.