Agenda, decisions and minutes

To receive any Declarations and advise Members accordingly.

Councillors Janet Axworthy, Sean Bibby and Hilary McGuill declared a personal interest on the Minimum Revenue Provision (agenda item 8) as board members of NEW Homes.

Councillors Dennis Hutchinson and Andy Williams both declared a personal interest on the Council Fund Revenue Budget 2021/22 (agenda item 4) as transport providers for the Council.

Councillor Martin White declared a personal interest on the Housing Revenue Account 30 year Financial Business Plan (agenda item 6) as a Council house tenant.

The following Members declared a personal interest on the Pay Policy Statement for 2021/22 (agenda item 9) due to closely associated people employed by the Council: Councillors Bernie Attridge, Chris Bithell, Andy Dunbobbin, Billy Mullin, Hilary McGuill, Michelle Perfect, Vicky Perfect, Neville Phillips, Kevin Rush, Aaron Shotton, Paul Shotton, Ralph Small, Ian Smith, Carolyn Thomas and Andy Williams.

Councillors Janet Axworthy, Sean Bibby and Hilary McGuill declared a personal interest on the Minimum Revenue Provision (agenda item 8) as board members of NEW Homes.

Councillors Dennis Hutchinson and Andy Williams both declared a personal interest on the Council Fund Revenue Budget 2021/22 (agenda item 4) as transport providers for the Council.

Councillor Martin White declared a personal interest on the Housing Revenue Account 30 year Financial Business Plan (agenda item 6) as a Council house tenant.

The following Members declared a personal interest on the Pay Policy Statement for 2021/22 (agenda item 9) due to closely associated people employed by the Council: Councillors Bernie Attridge, Chris Bithell, Andy Dunbobbin, Billy Mullin, Hilary McGuill, Michelle Perfect, Vicky Perfect, Neville Phillips, Kevin Rush, Aaron Shotton, Paul Shotton, Ralph Small, Ian Smith, Carolyn Thomas and Andy Williams.

This is an opportunity for Members of Council to submit petitions on behalf of people in their ward. Once received, petitions are passed to the appropriate Chief Officer for action and response.

None were received.

None were received.

(1)       That Council notes and approves the revised budget requirement for 2021/22;

(2)       That Council approves the final proposals for the corporate efficiencies which will contribute to the budget;

(3)       That Council approves a legal and balanced budget based on the calculations as set out in the report;

(4)       That Council notes the open risks which remain to be managed in the course of 2021/22;

(5)       That Council approves an annual increase in Council Tax for 2021/22 of 3.95%; and

(6)       That Council notes the medium-term forecast as a basis for the next revision of the Medium-Term Financial Strategy (MTFS).

RESOLVED:

(a)       That the recommendations of Cabinet, as detailed above, for balancing the budget for 2021/22 be approved; and

(b)       That the level of Council Tax for 2021/22 as recommended by Cabinet be approved.

The Chief Executive introduced a report to receive the recommendations from Cabinet for the Council to set a legal and balanced Council Fund Revenue Budget for 2021/22.

The Chief Executive, Corporate Finance Manager and Revenues Manager gave a presentation covering the following:

·         Setting a legal and balanced budget

·         Additional budget requirement 2021/22

·         Budget solutions 2021/22

·         Council Tax

·         Schools and social care budgets

·         Open risks

·         Earmarked and un-earmarked reserves

·         Professional opinions and concluding remarks

·         Looking ahead and the Medium Term Financial Strategy (MTFS)

Following an extensive budget consultation process, all outstanding issues had been closed by Cabinet in January.  Having been supported by the Corporate Resources Overview & Scrutiny Committee, the recommendations of Cabinet were to balance the budget based on the lower minimum budget requirement with no provision for pay awards other than for employees with salaries under £24k.  The Local Government Provisional Settlement announced by Welsh Government (WG) in December represented a cash uplift of £7.392m (3.7%) above the 2020/21 amount and the Council’s formal response set out the views of collective Cabinet and elected Members.  The prudent and balanced approach to the budget had proved successful in protecting services, however the scale of the emergency situation had led to significant financial pressures which would continue into 2021/22.

The 3.95% annual increase in Council Tax followed the clear directive set by the Council to maintain an affordable level below 5%.  This comprised 3.45% for Council budgets and 0.5% as contributions to regional bodies including the North Wales Fire & Rescue Authority.  Additional precepts for the Police & Crime Commissioner (5.14% annual increase) and those for individual Town/Community Councils were detailed in the report.

The recommendations for Cabinet and Council were moved by the Leader of the Council and Cabinet Member for Education, Councillor Ian Roberts, who thanked the Chief Executive and officers for their work throughout the budget-setting process.  Whilst recognising the impact from a local increase in Council Tax, he welcomed the protection of Council services and investment in priorities such as schools and Additional Learning Needs (ALN).  He also spoke about a number of open risks such as Out of County Placements where the Council had made extra provision in the base budget and called upon WG for nationally held reserve funding.

As Cabinet Member for Finance, Councillor Glyn Banks seconded the proposal and referred to the Council’s response to the Provisional Local Government Settlement from WG that included a repeated call for a review of the local government funding formula.

Councillor Peers acknowledged the challenges in closing the budget gap and protecting services year on year.  He raised concerns about the impact of the emergency situation and said that a review of expenditure was needed, with escalating costs for Out of County Placements considered in more detail by Overview & Scrutiny.  In response to a question, the Corporate Finance Manager clarified that the Provisional Settlement had fallen short of minimum expectations by around £600k and that subsequent outstanding issues had now been completed and incorporated into the budget.

Councillor Richard  ...  view the full minutes text for item 60.

(a)       That the 2021-22 Council Tax be set as detailed in Appendix 1 to the report;

(b)       That the continuation of the policy of not providing a discount in the level of 2021/22 Council Tax charges for second homes and long-term empty homes be endorsed.  Also, where exceptions do not apply, to charge the Council Tax Premium rate of 50% above the standard rate of Council Tax for second homes and long-term empty dwellings; and

(c)       That approval be given for designated officers to issue legal proceedings and appear on behalf of the Council in the Magistrates’ Court for unpaid taxes.

The Revenues Manager introduced the report to formally set the Council Tax charges and associated statutory resolutions for 2021/22 as part of the wider budget strategy on the basis of the decision taken on the previous item.  Members were asked to endorse the continuation of the Council Tax Premium scheme and the practice for designated officers to lead on legal proceedings on behalf of the Council.

As mentioned in the previous item, three separate precepts made up the overall level of Council Tax charges against each property.  The 3.95% increase in the Council’s element met expectations of affordability and would, along with central government funding and Revenue Support Grant, help to protect front-line services and maintain the scale and complexity of demand for services.  The overall amount raised by Council Tax consisted of the County Council’s total precept of £90,678,757; the North Wales Police & Crime Commissioner’s total precept of £19,868,694; and the collective precept of £3,110,430 across 34 Town and Community Councils.

The recommendations were moved by Councillor Ian Roberts and seconded by Councillor Glyn Banks who praised officers in the Revenues Team for their work.

Councillor Banks took the opportunity to thank residents for paying their Council Tax and reiterated the support available for those who were struggling to pay.

The Chair also extended her thanks to the Revenues team for their support to residents and businesses throughout the emergency situation.  This was endorsed by the Chief Executive who recognised the role of both the Revenue and Benefits Teams during the period.

In response to questions from Councillor Peers, the Revenues Manager provided clarification on the exemptions applied to long-term empty dwellings and would provide a separate response on the amount of council tax generated from the Council Tax premium scheme.

Having been moved and seconded, the recommendations were put to the vote and carried.

RESOLVED:

(a)       That the 2021-22 Council Tax be set as detailed in Appendix 1 to the report;

(b)       That the continuation of the policy of not providing a discount in the level of 2021/22 Council Tax charges for second homes and long-term empty homes be endorsed.  Also, where exceptions do not apply, to charge the Council Tax Premium rate of 50% above the standard rate of Council Tax for second homes and long-term empty dwellings; and

(c)       That approval be given for designated officers to issue legal proceedings and appear on behalf of the Council in the Magistrates’ Court for unpaid taxes.

That the recommendations from Cabinet on 16 February 2021 be approved:

(a)       That Council supports the HRA Budget for 2021/22 as set out in the appendices to the report;

(b)       That Council supports and approves the rent increase of up to 0.68% (plus up to £2);

(c)       That Council supports and approves a garage rent increase of £0.20 per week and a garage plot increase of £0.03 per week;

(d)       That Council supports and approves freezing for one year an increase in Service Charge recovery; and

(e)       That Council supports and approves the proposed HRA Capital programme for 2021/22 as set out in Appendix C to the report.

The Chief Officer (Housing and Assets) introduced a report to approve the proposed Housing Revenue Account (HRA) Revenue and Capital budget for 2021/22, the HRA Business Plan and the summary 30-year Financial Business Plan as recommended by Cabinet.  The Chief Officer and Strategic Finance Manager (Corporate Finance) gave a presentation covering:

·         Welsh Government (WG) Rent Policy

·         Proposed Rent Uplift 2021/22

·         Welsh Government - Wider Rental Agreement

·         Service Charges

·         Other Income

·         Invest to Save Proposal

·         Proposed Pressures and Efficiencies

·         Reserves

·         HRA Business Plan 2021/22

·         HRA Capital Investment

·         Capital Programme

·         Development of the revised Welsh Housing Quality Standards (WHQS)

·         Capital Programme 2021/22

·         HRA Capital Funding 2021/22

The proposed rent increase met requirements of the WG Rent Policy to consider affordability and value for money for tenants.  The delayed final phased increase towards achieving full cost recovery of service charges would help to protect tenants during the emergency situation and to allow for further work to ensure high quality services.  An update on the Capital Programme indicated that 447 properties had been delivered to date through the Strategic Housing and Regeneration Programme (SHARP) and a further 148 units outside SHARP creating additional capacity in the housing market in Flintshire.

The recommendations were moved by Councillor Dave Hughes who commended the delivery of housing services despite the challenges of the emergency situation.  He said that the proposed rent increase was the lowest set by the Council for five years and that the ambitious Capital Programme would ensure continued investment in the Council house building programme.

The proposal was seconded by Councillor Ian Dunbar who paid tribute to the work of the Chief Officer and his team, and the support of the Community, Housing and Assets Overview & Scrutiny of which he was Chair.

Councillor Chris Bithell welcomed the report and in particular, the delivery of 595 housing units and maintenance of WHQS levels to meet the needs of local people.

In response to questions from Councillor Richard Jones, officers provided clarification on the impact of the review of garage sites.

Also speaking in support, Councillor Paul Shotton welcomed capital spend and partnership working on homeless accommodation.

The Chief Officer responded to Councillor Mike Peers’ question on the approach to the next phase of SHARP housing schemes.  In response to further questions, the Strategic Finance Manager provided information on the repairs and maintenance budget and reinvestment into the Capital Programme including commuted sums.

Having been moved and seconded, the recommendations were put to the vote and carried.

RESOLVED:

That the recommendations from Cabinet on 16 February 2021 be approved:

(a)       That Council supports the HRA Budget for 2021/22 as set out in the appendices to the report;

(b)       That Council supports and approves the rent increase of up to 0.68% (plus up to £2);

(c)       That Council supports and approves a garage rent increase of £0.20 per week and a garage plot increase of £0.03 per week;

(d)       That Council supports and approves freezing for one year an increase in Service Charge recovery; and

(e)  ...  view the full minutes text for item 62.

That the Treasury Management Strategy for 2021/22 be approved.

The Corporate Finance Manager presented the draft Treasury Management Strategy for 2021/22 for approval, as recommended by Cabinet.  No significant changes had been made to the Strategy and no specific issues had been raised following consultation with the Audit Committee and Cabinet.

The recommendation was moved by Councillor Glyn Banks and seconded by Councillor Chris Dolphin.

RESOLVED:

That the Treasury Management Strategy for 2021/22 be approved.

(a)       That the following be approved for Council Fund (CF):-

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in financial year 2021/22 for the balance of outstanding capital expenditure funded from supported borrowing fixed as at 31 March 2017. The calculation will be the ‘annuity’ method over 49 years.

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in 2021/22 for all capital expenditure funded from supported borrowing from 1 April 2016 onwards. The calculation will be the ‘annuity’ method over an appropriate number of years, dependent on the period of time that the capital expenditure is likely to generate benefits.

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in 2021/22 for all capital expenditure funded from unsupported (prudential) borrowing or credit arrangements;

(b)       That the following be approved for Housing Revenue Account (HRA):-

·         Option 2 (Capital Financing Requirement Method) be used for the calculation of the HRA’s MRP in 2021/22 for all capital expenditure funded by debt; and

(c)       That MRP on loans from the Council to NEW Homes to build affordable homes through the Strategic Housing and Regeneration Programme (SHARP) (which qualify as capital expenditure in accounting terms) be as follows:-

·         No MRP is made during the construction period (of short duration) as the asset has not been brought into use and no benefit is being derived from its use.

·         Once the assets are brought into use, capital repayments will be made by NEW Homes. The Council’s MRP will be equal to the repayments made by NEW Homes. The repayments made by NEW Homes will be classed, in accounting terms, as capital receipts, which can only be used to fund capital expenditure or repay debt. The capital repayment / capital receipt will be set aside to repay debt, and is the Council’s MRP policy for repaying the loan.

The Corporate Finance Manager introduced the report to approve the annual policy for the Minimum Revenue Provision for the prudent repayment of debt.  He confirmed that there were no changes to the recommendations made by Cabinet.

The recommendations were moved by Councillor Banks and seconded by Councillor Chris Dolphin.

RESOLVED:

(a)       That the following be approved for Council Fund (CF):-

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in financial year 2021/22 for the balance of outstanding capital expenditure funded from supported borrowing fixed as at 31 March 2017. The calculation will be the ‘annuity’ method over 49 years.

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in 2021/22 for all capital expenditure funded from supported borrowing from 1 April 2016 onwards. The calculation will be the ‘annuity’ method over an appropriate number of years, dependent on the period of time that the capital expenditure is likely to generate benefits.

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in 2021/22 for all capital expenditure funded from unsupported (prudential) borrowing or credit arrangements;

(b)       That the following be approved for Housing Revenue Account (HRA):-

·         Option 2 (Capital Financing Requirement Method) be used for the calculation of the HRA’s MRP in 2021/22 for all capital expenditure funded by debt; and

(c)       That MRP on loans from the Council to NEW Homes to build affordable homes through the Strategic Housing and Regeneration Programme (SHARP) (which qualify as capital expenditure in accounting terms) be as follows:-

·         No MRP is made during the construction period (of short duration) as the asset has not been brought into use and no benefit is being derived from its use.

·         Once the assets are brought into use, capital repayments will be made by NEW Homes. The Council’s MRP will be equal to the repayments made by NEW Homes. The repayments made by NEW Homes will be classed, in accounting terms, as capital receipts, which can only be used to fund capital expenditure or repay debt. The capital repayment / capital receipt will be set aside to repay debt, and is the Council’s MRP policy for repaying the loan.

(a)       That the Pay Policy Statement for 2021/22 be approved;

(b)       That County Council notes the national position on the Exit Cap Regulations and potential changes to the Local Government Pension Scheme (LGPS) which may require changes to the Pay Policy and Pensions Discretions Statements 2021;

(c)       That County Council delegates authority to the Senior Manager, Human Resources and Organisational Development to update the Pay Policy Statement 2021/22 during the course of the year to reflect any changes required by legislation, Government policy or national negotiations so that it remains accurate and current; and

(d)       That the policy include the wording ‘in other exceptional circumstances’ to reflect situations where Honoraria payments may apply.

The Chief Executive introduced the report on the annual Pay Policy Statement for 2021/22 which summarised the pay and remuneration within an organisational, regional and national context.  It was a statutory obligation to publish the Pay Policy Statement each year within the deadline.

In summarising the main changes, the Senior Manager for Human Resources and Organisational Development referred to recommendation 2 in the report and advised that an announcement was expected from Welsh Government following the withdrawal of the Public Sector Exit Cap Regulations by the UK Government.

In moving the recommendations, Councillor Billy Mullin thanked the officers for the report.

Councillor Peers suggested that the section on Honoraria be amended to recognise employees who had been seconded to other roles during the emergency situation.

The Chief Executive confirmed that such arrangements were being made.

As suggested by the Chief Executive, Councillor Peers proposed that the wording ‘in other exceptional circumstances’ be added to the policy to reflect this.

On that basis, the recommendations were moved and seconded by Councillors Mullin and Carver.  The recommendations were put to the vote and carried.

RESOLVED:

(a)       That the Pay Policy Statement for 2021/22 be approved;

(b)       That County Council notes the national position on the Exit Cap Regulations and potential changes to the Local Government Pension Scheme (LGPS) which may require changes to the Pay Policy and Pensions Discretions Statements 2021;

(c)       That County Council delegates authority to the Senior Manager, Human Resources and Organisational Development to update the Pay Policy Statement 2021/22 during the course of the year to reflect any changes required by legislation, Government policy or national negotiations so that it remains accurate and current; and

(d)       That the policy include the wording ‘in other exceptional circumstances’ to reflect situations where Honoraria payments may apply.

This item is to receive any Public Questions: none were received by the deadline.

None were received.

None were received.

To note the answers to any questions submitted in accordance with County Council Standing Order No. 9.4(A): none were received by the deadline.

None were received.

None were received.

This item is to receive any Notices of Motion: none were received by the deadline.

None were received.

None were received.

None were received.

There was one member of the press in attendance.