Meeting documents

The meeting was opened with a Prayer by Councillor John Roberts.

Councillor R. Ll. Jones declared an interest in respect of any item of business on the Agenda which might relate to the employment of his daughter who is employed by the Education Authority.

Councillor G.O. Parry MBE declared an interest in respect of any item of business on the Agenda which might relate to the employment of his daughters within the Finance Department.

Councillor O. Glyn Jones declared an interest with regard to any item of business on the Agenda which might relate to the employment of his wife within the Housing and Social Services Department.

Councillor R.Ll. Hughes declared an interest in respect of any item of business on the Agenda which might relate to the employment of his son in the Highways Department.

Councillor G. Allan Roberts declared an interest with regard to any item of business on the Agenda which might relate to the employment of his son-in-law within the Finance Department.

Councillor Fflur. M. Hughes declared an interest with regard to any item of business on the Agenda which might relate to the employment of her son within the Education Department.

Councillor Bryan Owen declared an interest in respect of any item of business on the Agenda which might relate to the employment of his wife in the Education Dept.

Councillor W. J. Chorlton declared an interest in respect of any item of business on the Agenda which might relate to the employment of his daughters in the Environmental Services Department and the Education Department respectively.

Councillor John Roberts declared an interest in Item 4.1 of these minutes, and was not present at the meeting during any discussion or voting thereon.

Councillor A.M. Jones declared an interest with regard to any item of business which might relate to the employment of his brother in the Education and Leisure Department.

Councillor G. W. Roberts OBE declared an interest with regard to any item of business which might relate to the employment of his daughter in the Environmental Services Department.

The Director of Legal Services / Monitoring Officer declared an interest in Item 4.1 of these minutes and was not present at the meeting during any discussion or voting thereon.

Councillor G. W. Roberts, OBE wished it to be noted in the minutes, that following legal advice he was not required to declare an interest in respect of Item 4.1 of these minutes.

The Chair extended his congratulations to Councillor W. J. Williams, MBE on being elected as part of a Panel of seven members of the Committee of the Regions who will visit Croatia to hold discussions with them prior to their entry to the European Union. Also to Mr. Jim Evans, Postmaster of Llanfairpwll, on celebrating 50 years as Postmaster, 35 of these having being served at Llanfairpwll.

Best wishes were extended to Councillor E. Schofield who has not been in good health recently.

The Chair also noted that a letter of sympathy had been sent on behalf of the County Council to the wife and family of the late Dr. Jim Davies who died recently. Dr. Davies was the former Principal of Coleg Normal, former Chairman of the NSPCC in Wales and was actively involved in leading the campaign to raise over £2m to purchase scanner for Ysbyty Gwynedd, Bangor. We shall remember his contribution during the war, his work in the field of education and his tireless efforts for charities.

The Chair sympathised with any member of staff who had suffered bereavement.

Submitted and confirmed, the minutes of the meeting of the County Council held on the following dates:-

(a) 14 December, 2006 (am)

Councillor John Roberts wished it to be noted that contrary to the minute showing that he had voted on the matter, he had in fact declared an interest and was not present at the meeting during any discussion or voting thereon.  

(b) 14 December, 2006 (pm)

Councillor P. S. Rogers - “Sorry, I want to.....” (not clear)

Chair - “Correctness, yes?”

Councillor P. S. Rogers - “Please, Yes. Thank you very much indeed. I’m going back to the extraordinary general meeting on 14th December. In a question to Councillor Hefin Thomas,”

Chair - “May I ask you please is it correctness only, not a question?”

Councillor P. S. Rogers - “It is correctness, it is correctness.”

Chair - “Correctness”

Councillor P. S. Rogers - “No, all right. When do you get a chance to enter these things, this Council can’t continue to operate in the way that it is operating unless these complaints are withheld. The Managing Director knows about what’s going on here and nothing is happening in disciplinary. Did David Lewis Roberts, for what he’s done, he’s involved the Planning Director, the Planning Director shouldn’t be here, he should be suspended pending these inquiries.”

Chair - “Will you please, I have told you.” 

Councillor P. S. Rogers - “There are allegations of financial gain, which is totally inappropriate.”

Chair - “Councillor Rogers. I am warning you that if you insist on doing this I will ask you to leave the Chamber.”

Councillor P. S. Rogers - “I will leave, because I don’t accept this Chairman.”

Chair - “That is your prerogative.”

(Councillor Rogers left the Chamber at approximately 2.10 pm)

(c) 21 December, 2006

(ch) 15 February, 2007, subject to the name of Councillor J. Byast being included in the list of those members present.

4.1 Submitted - The report of the Corporate Director (Finance) as submitted and accepted at the meeting of the Executive held on 12th February, 2007. The Executive resolved “to recommend to the County Council that the discount on properties in prescribed Class ‘C’ is reduced from 50% to nil with effect from 1st April, 2007”

Reported by the Corporate Director (Finance) - That the Local Government Act 2003 introduced a more flexible power which enabled the National Assembly for Wales to prescribe classes of dwelling for which billing authorities may either reduce or completely remove discounts in their area. This had allowed local authorities to reduce or end the 50% council tax discount for chargeable dwellings which were unoccupied and substantially unfurnished. The homes that fell into Class ‘C’ would be long term empty houses i.e. normally those empty for 6 months or more. This regulation had been in force since 25 February, 2004.

The properties that fall into Class ‘C’ must be distinguished from second or holiday homes and properties that are furnished and unoccupied properties having a restriction on occupancy by law for a period of at least 28 consecutive days in any 12 month period. Such properties for the purpose of the Council Tax legislation were designated Classes ‘A’ and ‘B’ in respect of which, this Council had already ended the 50% discount.

The Executive in February 2006 agreed to make a statement of intent to recommend to the Council in respect of 2007/08 to end the discount for Class ‘C’. The Finance Department’s Revenues Section would notify those liable of the intention to end the discount. Any feedback would be collated and brought back to the Executive along with recommendations.

From June 2006 to November 2006, over 800 letters and forms were sent out to those liable for properties currently in Class ‘C’ and also to those liable for properties likely to fall into the class. Examples of the letters and forms sent to liable persons were provided in the appendices to this report. Feedback had now been complied from replies.

After a recent detailed review of all potential Class ‘C’ properties on the Island including feedback from the survey, the number of properties so identified was now 651.

The Welsh Assembly Government introduced this power to reduce discount to support a policy objective of bringing unoccupied houses into use. If the Committee believed that the reduction of the discount would assist in bringing long term empty property into use in Anglesey, then it should recommend that the Council set a discount of nil for 2007/08.

Adequate advance warning of a change of policy had been given enabling the liable persons to react appropriately to the proposed change.

It may be that this change could cause financial hardship in a small number of cases. There were powers to remit debt or to prefer payment, secured on the property. Officers would investigate the options and the Head of Service may wish to request an amendment to the delegation scheme in order to provide the appropriate powers. A one-off windfall of up to £300,000 was available in the first year.         

RESOLVED that the discount on properties in prescribed Class C be reduced from 50% to nil with effect from 1 April, 2007.

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The proposed revenue budget for 2007-08 - Table A

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The proposed capital plan up to 2009-10 - Table B

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The proposed capital budget for 2007-08 - Table C   

Council Tax

The Executive proposed an increase of 4.9% in the Band D Council Tax. This would take the Band D figure to £755.46. The Police Authority decided on 16 February on an increase of 6.75% in its precept. The total paid by Council taxpayers would rise by around 5.2%, depending on the precept of their Town or Community Council.  However, the Council Tax in Anglesey would remain one of the lowest in England and Wales in 2007-08.

Revenue Budget

The revenue budget proposals were substantially unchanged from the initial proposals. Project underspending in 2006-07 of the amount earmarked for integration of special needs pupils in primary schools’ allowed this sum to be added back to the primary schools’ quantum in 2007-08, which improved the allocation to individual schools from the initial proposals.

Capital Plan and Budget

The capital plan and budget proposals took account of the Prudential Code. The capital plan rolled forward the plan adopted in 2006-07, confirming the priority given to waste obligations, leisure and regeneration. It allowed spending on the Council offices foyer and (subject to external funding) for a start to be made on Oriel Syr Kyffin Williams.

Formal Matters

As required by the Budget Procedure Rules the following matters needed to be drawn to the attention of the County Council prior to them deciding upon the final budget proposals:-

- 1% savings across most budgets, totalling £1.09m

- refinancing external debt, saving £0.5m;

- a further £0.2m saving against road maintenance budgets;

- restricting by £0.3m the use of money identified by WAG towards new burdens, principally in    social services.

These savings had allowed the budget to include an additional cost of £2.0m provided towards a new waste management contract, £0.1m towards strengthening its Health and Safety Team, and £0.1m towards the Local Development Plan process.

(6) The Executive had taken account of the views of Scrutiny and Overview Committees reported to at its meeting of 12 February.

(7) The Executive had taken account of responses of external consultees reported to it at its meeting of 12 February.          

(8) There were no significant differences between initial and final proposals.

(9) The Executive would propose to the Council that it should be delegated powers to spend budgets and granted powers to vire budgets, as in previous years, as follows:

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powers to spend each budget heading in Tables A and C on the particular objective, service or project to which it related;

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a limit of nil on virement between budget headings in Table A;

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powers to vire from the central contingency, from the Performance Incentive Grant contingency, or from new or increased sources of income;

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powers to vire from the balance of L.A.B.G.I Scheme money towards dealing with Health and Safety and Fire risk assessments;

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powers to vire from the leisure improvements reserve in support of proposals which enhanced the leisure service’s assets and strategic sporting facilities. The Executive had not and did not intend to, delegate any part of this virement powers to officers;

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power to transfer budgets between capital projects in Table C and to commit resources in following years within the amounts indicated in the Capital Plan at Table B and consistent with the budget framework.

(10) The proposals for borrowing and investment were as detailed in the separate report by the Corporate Director (Finance) on Treasury Management which had been approved by the Executive.

(11) Other statutory matters were dealt with in the report by the Corporate Director (Finance).

In summing up the Portfolio Holder expressed his appreciation to his fellow members of the Executive and to the Finance Panel for their contribution. He also thanked the Corporate Director (Finance) and his staff for their much valued work in drawing up the Council budget for 2007/08.

Councillor A. Morris Jones asked the Council to consider re-establishing support to Community Schools which played a vital part in promoting our local communities and which helped to regenerate rural areas in Anglesey and that this be in addition to the Budget which the Council was going to approve today.

Report by the Corporate Director (Finance) - That in order to adopt its budget for the year 2007-08 and to determine the level of Council Tax for the year, the County Council was required to adopt a formal resolution which dealt in some detail with all connected matters.

As it considered the Executive’s proposed budget, the Council should also consider and take account of this report from the Corporate Director - Finance. This dealt with matters required under the Local Government Act 2003 (“the Act”) and the Prudential Code for Capital Finance in Local Authorities (“the Prudential Code”).

ROBUSTNESS OF ESTIMATES

The Corporate Director was required under section 25 (1) (a) of the Act to report to the Council on the robustness of estimates made in the course of drawing up the budget.

It was necessarily always the case that uncertainty about future events affecting the budget meant that estimates needed to be made, which in turn rested on certain assumptions about what was likely to happen. The most significant uncertainties affecting the budget as proposed by the Executive, and the way they had been dealt with, were -

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Pay Awards    

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Interest Rates     

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Demand-Led Budgets

Having regard to the foregoing, the Corporate Director was satisfied that the proposed budget was robustly estimated (Tables D and DD of this report provided supporting information to the Executive’s final proposals).

ADEQUACY OF FINANCIAL RESERVES

The Corporate Director was required under section 25 (1) (b) of the Act to report to the Council on the adequacy of the proposed financial reserves.

He had reviewed the level of reserves following an approach reported to the Executive as part of the budget preparation process.

Earmarked reserves had been established to cover known plans, commitments or risks, and in reviewing the present level of reserves he had assumed that commitments would be met, plans would normally be implemented, and risks required a level of provision commensurate with their amount and likelihood.

However, the earmarked reserve established in connection with services provided under Section 117 of the Mental Health Act 1983 continued to be uncertain.

Schools’ balances were, in total, more than adequate. A small number of individual schools had deficit balances, which were not adequate. The use of these reserves was a matter for each school’s governing body.

General revenue balances were currently projected to be £4.4m at 31 March 2007. A sum of £0.5m had been set aside in the budget proposals towards staff severance costs.

Having regard to the foregoing, the Corporate Director projected balances to be £3.9m at 31 March 2008 and was satisfied that the proposed budget would leave the Council with adequate financial reserves.

THE PRUDENTIAL CODE

The legislative framework introduced by the Local Government Act 2003 required the Council to have regard to The Prudential Code for Capital Finance in Local Authorities. The Executive had already affirmed this.

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Affordability

The Executive's budget proposals had regard to affordability. As always, the capital budget was financed by a combination of external grants, capital receipts, revenue funds and borrowing. Anticipated funding from grants was linked to what was approved or realistically achievable; some spending proposals were to be included in the capital budget but subject to confirmation of grants: if the grants were not confirmed, the schemes would fall. Capital receipts were based on sales made or in progress; amounts expected but not yet confirmed as definite had been discounted, with any surplus or shortfall being carried forward to future years' budgets. Revenue funding was in place, consistent with the revenue budget.

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Unsupported Borrowing

Unsupported borrowing was proposed for :-

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the Electricity Generation from Landfill Gas project, where the case had been made that income earned would repay the capital outlay;

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the Oriel Syr Kyffin Williams project, borrowing against the anticipated sales value of  prints in stock;

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strictly on a contingent basis for the potential liability associated with the Culvert at Penhesgyn. This was an extension to the circumstances in which the authority would contemplate unsupported borrowing.    

The Council should also take into account the incremental effect of its capital investment decisions on the level of Council Tax and the level of Housing Rents. The incremental effect was calculated by reference to the difference between the Capital Plan already in force (i.e. adopted in March 2006) and the Capital Plan now proposed.

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Prudence

The implications of the proposed budget for external borrowing and investment and the associated Prudential Indicators were dealt with in the Treasury Management Report.

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Prudential Limits

Table Ch attached to this report listed the prudential limits which were required to be adopted as the Council set its budget and Council Tax for the year.

a)     Pursuant to the recommendations of the Executive Committee to adopt a revenue budget for 2007/08 as shown in the table at Table A in the report of the Executive, as amended by transferring a sum of £10,000 from the central contingency budget to the Education Service in respect of Community Schools.

b)     Pursuant to the recommendations of the Executive Committee to adopt a three year capital plan as shown at Table B to the report of the Executive.

ch)     To delegate to the Executive Committee for the financial year 2007/08 the powers to transfer budgets between headings as follows:

     i)     unlimited powers to spend each budget heading in Table A on the particular objective, service or project to which it relates;

     ii)     a limit of nil on  virement between budget headings in Table A;

     iii)     unlimited powers to vire from the central contingency, from the Performance Incentive Grant contingency, or from other new or increased sources of income;

     iv)     powers to vire from the balance of Local Authority Business Growth Incentive Scheme money towards dealing with Health and Safety and Fire risk assessments;

     v)     powers to vire from the leisure improvements reserve in support of proposals which enhance the leisure service's assets and strategic sporting facilities.  

     vi)     powers to transfer budgets between capital projects in Table C and to commit resources in following years within the amounts indicated in the Capital Plan at Table B and consistent with the budget framework.

d)     To confirm that items a to ch become part of the Council's budget framework.

a)

28,614.53 being the amount calculated by the Executive, in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) (Wales)  Regulations 1995, as its council tax base for the year.

b)

Part of the Council's area  :

a)

£164,421,065     being the aggregate of the amounts which the Council estimates for the items set out in Section 32(2)(a) to (d) of the Act.

b)

£ 53,214,230     being the aggregate of the amounts which the Council estimates for the items set out in Section  32(3)(a) and (c) of the Act.

c)

£111,206,835     being the amount by which the aggregate at 7(a) above exceeds the aggregate at 7(b) above, calculated by the Council, in accordance with Section 32(4) of the Act, as its budget requirement for the year.

ch)

£88,861,393     being the aggregate of the sums which the Council estimates will be payable for the year into its council fund in respect of redistributed non-domestic rates and revenue support grant reduced by any amount calculated in accordance with Section 33(3B) of the Act.

d)

£      780.91     being the amount at 7(c) above less the amount at 7(ch) above, all divided by the amount at 6(a) above, calculated by the Executive, in accordance with Section 33(1) of the Act, as the basic amount of its council tax for the year.

dd)

£728,309.36     being the aggregate amount of all special items referred to in Section 34(1) of the Act.

e)

£      755.46     being the amount at 7(d) above less the result given by dividing the amount at 7(dd) above by the amount at 6(a) above, calculated by the Executive, in accordance with Section 34(2) of the Act, as the basic amount of its council tax for the year for dwellings in those parts of its area to which no special item relates.

f)

Part of the Council's area

being the amount given by adding to the amount at 7(e) above the amounts of the special item or items relating to dwellings in those parts of the Council's area mentioned above divided in each case by the amount at 6(b) above, calculated by the Executive, in accordance with Section 34(3) of the Act, as the basic amounts of its council tax for the year for dwellings in those parts of its area to which one of more special items relate.