Agenda, decisions and minutes

Budget, The Executive
Monday, 13th January, 2020 2.00 pm

Venue: Council Chamber, Council Offices, Llangefni. View directions

Contact: Ann Holmes 

Media

Items
No. Item

1.

Declaration of Interest

To receive any declaration of interest from any Member or Officer in respect of any item of business.

 

Additional documents:

Minutes:

None received.

2.

Urgent matters certified by the Chief Executive or her Appointed Officer

No urgent matters at the time of dispatch of this agenda.

Additional documents:

Minutes:

None to report.

3.

Minutes pdf icon PDF 319 KB

To submit for confirmation, the draft minutes of the meeting of the Executive held on 16 December 2019.

Additional documents:

Minutes:

The minutes of the previous meeting of the Executive held on 16 December, 2019 were presented for the Executive’s approval.

 

It was RESOLVED that the minutes of the previous meeting of the Executive held on 16 December, 2019 were confirmed as correct.

4.

Draft Revenue Budget 2020/21 pdf icon PDF 569 KB

To submit a report by the Director of Function (Resources)/Section 151 Officer.

Additional documents:

Minutes:

The report of the Director of Function (Resources)/Section 151 Officer incorporating the draft Revenue Budget for 2020/21 was presented for the Executive’s consideration.

 

The Portfolio Member for Finance reported that whilst the budgetary position for 2020/21 is better than anticipated due to an increased provisional settlement by Welsh Government the financial circumstances remain challenging.  The settlement, in real terms, is only in comparison to the level of Welsh Government provision in 2012/13.   He further reported that Welsh Government assumes that local authorities in Wales are to increase the Council Tax level of 7.1% so as to balance the budget even though a better settlement has been afforded.  The Council’s reserves have reduced so as to meet cost pressures in areas where the demand has been and continues to increase in statutory services such as Adult Services and Education.  The Portfolio Holder considered that these services base budget may need to be reviewed.   He further said that he advised the Corporate Scrutiny Committee held this morning and wished to expressed to the Executive that a prudent approach need to be undertaken in terms of making recommendations with regard to the 2020/21 Revenue Budget. 

 

The Director of Function (Resources)/Section 151 Officer outlined in detail to the Committee the sections within the report on the proposed revenue budget for 2020/21.  The following matters were highlighted and reported upon:-

 

·      The budget is prepared on the basis of the assumptions set out in the Medium Term Financial Plan approved by the Executive in September, 2019.  These have been taken into account in calculating the standstill budget for 2020/21;

·      The committed changes and adjustments made to the budget were set out in paragraphs 3.1 to 3.10 of the report;

·      A number of contingency budgets are built into the budget to cover fixed term costs, potential risks that may require funding during the year were set out in paragraphs 4.1 (Table 1).  The improved financial position in 2020/21 allows the Council to reduce the Salary and Grading Contingency as it is not expected that it will be necessary to make significant reductions in staffing numbers in 2020/21;

·      Staff costs – there is uncertainty as regards to the Teachers pay award commencing September 2020 and non-teaching staff as from April 2020 – this is a risk to the budget of the Council with every 1% increase in the non-teaching pay award equating to an additional budgetary burden of £450k in costs;

·      Increased demand for Adult Social Care, with rising numbers of clients across all service types and for 2019/20 the Service is expected to exceed its budget by £1.21m.  The estimated net overspend for Adult Social Care, after allowing for 2 additional Welsh Government grants is £980k and this sum has been identified as the minimum additional funding required to address the budget shortfall.  However, only 1 grant (Social Care Workforce and Sustainability Grant), has been confirmed for 2020/21 and whether the Council will once again receive the Winter Pressures Grant in 2020/21 is yet to be confirmed;  ...  view the full minutes text for item 4.

5.

Capital Budget 2020/21 pdf icon PDF 567 KB

To submit a report by the Director of Function (Resources)/Section 151 Officer.

Additional documents:

Minutes:

The report of the Director of Function (Resources)/Section 151 Officer incorporating the Capital Budget 2020/21 was presented for the Executive’s consideration.

 

The Portfolio Holder for Finance reported that the Executive is required to propose a

capital budget for 2019/20 which will then be presented to the Full Council at its meeting on

10 March, 2020.  The report set out the proposed main capital programme for 2020/21.

 

The Director of Function (Resources)/Section 151 Officer reported in detail to the Committee the main points within report and the following matters were highlighted and reported upon:-

 

·      The current Capital Strategy sets out the principles for the Council in determining its capital programme with each year’s capital funding will be allocated to ensure an investment in existing assets i.e. Council buildings, vehicles, IT equipment, highways and roads;

·      Reference was made to the capital funding (as shown in Table 1 of the report) which showed the anticipated capital funding available for 2020/21 that the initial local government settlement figures refers to the General Capital Grant and Supported Borrowing. The level of funding under both headings have remained fairly constant over a number of years and are not anticipated to change significantly between the provisional and final settlement;

·      The position as regards to the 21st Century Schools capital programme was outlined to the Committee;

·      The HRA funding is earmarked for HRA projects only.  The plan allows for the use of £5.24m of HRA reserves in 2020/21;

·      Reference made to the 2019/20 (committed schemes) as shown in Table 2 of the report, which will carry forward to 2020/21 but an additional £75k match funding will be required in respect of the Holyhead Regeneration (THI Phase II) scheme and it is recommended that this scheme is included in the 2020/21 capital programme;

·      Refurbishing/Replacing Existing Assets (as shown in Table 3 of the report) the level of funding continues in 2021/22 and beyond, the Council’s capital programme will be limited to the refurbishment and replacement of existing assets;

·      Reference made to recommended ‘One-Off’ capital projects to be funded in 2020/21 (as shown in Table 4 of the report) which totalled £2,174m;

·      Paragraph 5.4 of the report highlighted a number of projects which do not require funding in 2020/21 but may need to be funded in 2021/22 or beyond.

 

Councillor Aled M Jones, the Chair of the Corporate Scrutiny Committee reported from the Committee’s meeting of 13 January, 2020 to which the Capital Budget for 2020/21 was presented.  He said that the Corporate Scrutiny Committee recommended to support the Capital Programme of £36.903m for 2020/21.

 

The Leader wished to thank the Finance Scrutiny Panel for their work in respect of both the Capital Budget and Revenue Budget for 2020/21.  

 

The Executive in noting the information presented wished it be recorded that the Council has now a strategy for the maintenance of Council’s assets.  

 

It was RESOLVED :-

·      To recommend the following capital programme for 2020/21 to the full Council :-

 

£’m

2019/20 Schemes Brought Forward                                                  3,294                  

Refurbishment/Replacement of Assets  ...  view the full minutes text for item 5.