Agenda, decisions and minutes

Purpose: To receive any Declarations and advise Members accordingly.

The Chairman declared a personal interest in agenda item 3 – Council Fund Budget Report 2017/18 – Part 3 Closing Strategy.

The Chairman declared a personal interest in agenda item 3 – Council Fund Budget Report 2017/18 – Part 3 Closing Strategy.

(a)       That the details and the implications of the Welsh Local Government          Final Settlement be noted; and

(b)       That the comments made by the Committee, as shown in Appendix 1 of     the minutes, be feedback to Cabinet to consider. 

The Chair welcomed Members and the contributors to the meeting.

            The Chief Executive introduced the Council Fund Budget 2017/18 – Part 3 Closing Strategy report which provided an update on the remaining amount to be found to achieve a balanced budget.

            The annual Council Fund budget for 2017/18 had been developed in two stages:

• Stage One: which covered Part 1 of the Medium Term Financial Strategy (MTFS) – service reform based on the service portfolio business plans; and
• Stage Two: which covered Parts 2 and 3 of the Medium Term Financial Strategy (MTFS) – corporate financial stewardship and working with Welsh Government

            Stage One proposals were approved by Council on 15 November, 2016 and were closed and being implemented.  Stage Two proposals on corporate financial stewardship were approved by Council on 6 December, 2016 and were also closed and being implemented. 

            The Chief Executive explained that the Final Local Government Settlement was received on 21 December, 2016 and had been largely unchanged in overall cash terms from the Provisional Settlement.  The remaining budget gap was £2m and the limited options available to close the gap, which were set out in full in the report, were:

·         Domiciliary Care – Charging Levels

·         Local Taxation

·         School Investment

·         Use of Reserves and Balances

On Domiciliary Care, a Welsh Government (WG) announcement had recently been made on raising the charging cap from the current amount of £60 per week to £70 per week from 1^st April 2017. For Flintshire, that would generate an additional income of £0.238m in 2017/18.  In addition, WG had announced that as part of the Settlement, an additional £10m to support the rising costs of domiciliary care across Wales would be provided.  Based on an assumed formula distribution the Council would receive additional funds in the region of £0.430m.

The North Wales Fire and Rescue Authority had approved an increase in its levy which for Flintshire, when taking regional population changes into account, would result in an annual increase of 4.52% (£0.317m). This was not included in the current budget estimate.  An option was to add the levy increase to the planned Council Tax increase which would raise it from 3.00% to 3.55%.

The Corporate Finance Manager explained that there was the option to utilise reserves to assist in closing the budget gap but that would only provide a one year solution.  As part of the approved Corporate Financial Stewardship options an amount of £0.699m had already been earmarked to meet the first year costs of the new UK Government Apprentice Tax Levy.  A decision on what was considered to be a prudent use of reserves needed to take into account both the future sustainability of the budget and the impact on the reserve levels which remained for future years.

The outstanding risks and issues as were detailed in the report were:

·         Single Environment Grant

·         Transportation Costs

·         Household Recycling Centres

·         Car Park Income – County Hall

·         Impact of the Outturn 2016/17

The Chief Executive explained that final budget proposals would  ...  view the full minutes text for item 79.

(a)       That the Committee supports the allocations and schemes in Table 2 of     the report for Statutory/Regulatory and Retained Assets section of the        Council Fund Capital Programme 2017/18 – 2019/20;

(b)       That the Committee supports the schemes in Table 3 of the report for          the Investment section of the Council Fund Capital Programme;

(c)        That the Committee noted that the shortfall of funding of schemes in          2018/19 and 2016/20 at this point in the approval process is flexible.          Options including a combination of future capital receipts, alternative             grants, prudential borrowing or phasing schemes over several years will     be considered during 2017/18, and included in future capital programme             reports;

(d)       That the Committee noted the development of a longer term Capital            Strategy and Asset Management Plan;

(e)       That the comments made by the Committee, as shown in Appendix 1 of     the minutes, be feedback to Cabinet to consider before the final Capital         Programme 2017/18 – 2019/20 report is considered by Council; and

(f)        That the Committee recommend to Cabinet that it support the proposed      ‘red’ route as part of the consultation on the Welsh Government A494/A55 improvement plan.  

                        The Chief Officer (Organisational Change) and Senior Manager     (Technical             Accountancy) introduced the developing Capital Programme for      the period 2017/18 – 2019/20.

                        A detailed presentation was given, which covered the following areas:-

·         3 Part Council Fund Capital Programme

·         Table 1 – Estimated Available Funding

·         Table 2 – Proposed Allocations

·         Table 3 – Proposed Investment

·         Table 4 – Summary (Generally Funded Capital Programme)

·         Dealing with any Shortfall in Funding

·         Table 6 – Specifically Funded Schemes

·         Table 7 – Summary Capital Programme

The questions and comments raised by Members were shown at Appendix 1 of the minutes.

RESOLVED

(a)       That the Committee supports the allocations and schemes in Table 2 of     the report for Statutory/Regulatory and Retained Assets section of the        Council Fund Capital Programme 2017/18 – 2019/20;

(b)       That the Committee supports the schemes in Table 3 of the report for          the Investment section of the Council Fund Capital Programme;

(c)        That the Committee noted that the shortfall of funding of schemes in          2018/19 and 2016/20 at this point in the approval process is flexible.          Options including a combination of future capital receipts, alternative             grants, prudential borrowing or phasing schemes over several years            will be considered during 2017/18, and included in future capital     programme reports;

(d)       That the Committee noted the development of a longer term Capital            Strategy and Asset Management Plan;

(e)       That the comments made by the Committee, as shown in Appendix 1 of     the minutes, be feedback to Cabinet to consider before the final Capital         Programme 2017/18 – 2019/20 report is considered by Council; and

(f)        That the Committee recommend to Cabinet that it support the proposed      ‘red’ route as part of the consultation on the Welsh Government A494/A55 improvement plan.

            There were no members of the public and the press in attendance.

There were no members of the public and the press in attendance.