Agenda and draft minutes

We elected Councty Councillor P. Farley as Chair.

We appointed County Councillor S. Jones as Vice-Chair.

Members agreed declarations would be declared under the appropriate item.

CONTEXT:

We welcomed Cabinet Members who were in attendance to provide detailed draft proposals on the budget savings required to meet the gap between available resources and need to spend in 2017/18, for consultation purposes.

Members were required to consider the 2017/18 budget within the context of the 4 year Medium Term Financial Plan (MTFP) and the emergence of priorities to guide forward activities through Future Monmouthshire.

MEMBER SCRUTINY:

Following an overview presented by the Leader and Cabinet Member for finance, Members were invited to comment. 

We were advised that the reports received today were the same as presented to recent individual Select meetings.  It was questioned if there were any amendments to be made following comments at the Select meetings.  We were advised that the draft proposals had gone out with a budget gap, and it had been made clear that additional work would be going on to close that gap, with a request that any alternative proposals be provided by today.  The Cabinet Member added there would be amendments at the Cabinet meeting to ensure a balanced budget.  It would be made clear what the amendments are in the final report.

A Member questioned the robustness of the budget, and questioned the confidence of Cabinet Members that the budget was deliverable.  In response the Cabinet Member for Finance explained that with regard to pressures, the draft budget was the best guess based on the best information available at the time.  When officers built up mandates for the last budget they tried hard to ensure they were realistic and deliverable.  For various reasons some had turned out not to be and these had been accepted as a pressure this year and added back.  He added that the outturn reports provided to scrutiny throughout the year have demonstrated this.

The Cabinet Member addressed a question relating the debt figure of £96m. He explained that there are many projects taking place, and debt would be drawn down when it was thought prudent to do so.  There is a possibility we would take more debt with regard to 21^st Century Schools, dependent upon capital receipts.  Much of the debt was taken on a short term basis.  Cabinet Members were comfortable with the level of debt.  The better settlement from Welsh Government was pleasing to note, but it was thought that the formula still did not recognise the needs of rurality

Further clarity was requested with regards to the mandates for specific projects that had not been met, suggesting confidence was not enough.   The sum total of the mandates not met, and transferred to this budget, was requested. The Assistant Head of Finance explained that Appendix 1 of the report referred to pressures of circa £685,000 relating to earlier mandates not being achieved.

The highest level of borrowing based on capital decisions is £130m, and was therefore currently borrowing less than we would normally need to, as a result of setting aside money, MRP calculation.

The Assistant Head of Finance reminded Members  ...  view the full minutes text for item 4.

CONTEXT:

The Cabinet Member for Finance presented the Capital Budget Proposals to outline the proposed capital budget for 2017/18 and the indicative capital budgets for the three years 2018/19 to 2020/21.

MEMBER SCRUTINY:

County Councillor A. Easson declared a personal, non-prejudicial interest under the Members’ Code of Conduct as a family member uses the services of Severn View Facility.

A Member requested an update regarding the Severn View Care Facility renewal.  The Cabinet Member advised that it was early days and the most important thing is that quality of care already received by individuals at the facility would not be compromised.

On the basis of the information supplied regarding capital receipts, a Member asked if Cabinet Members felt the projects could be taken forward with the small amount of money.  The Leader agreed that there would be pressures on capital and was confident in the capital programme to be realised. 

The Cabinet Member for Community Development referred to Highways, and generally the strategic roads were in good state and a lot of improvements had been made.  It was noted that infrastructure costs may need Welsh Government assistance.

RECOMMENDATIONS:

Members agreed the recommendations in the report:

·         That Select Committee scrutinizes the draft capital budget proposals for 2017/18 to 2020/21 released for consultation purposes as set out below and referred to in Appendix 2

·         That Select Committee notes the following recommendations approved by Cabinet:

·         That Cabinet confirms a capital strategy, which seeks to prioritise the Council’s Future Schools programme and other commitments whilst also continuing to finance a minimum core capital programme, recognizing the risks associated with this approach.

·         That Cabinet reviews the priorities in the Capital programme in the light of the issues raised in 3.7 and other demands for capital resources

·         That Cabinet reaffirms the principle that new schemes can only be added to the programme if the business case demonstrates that they are self-financing or the scheme is deemed a higher priority than current schemes in the programme and therefore displaces it.

·         That Cabinet agrees to maximize the use of capital receipts when received to fund the capital programme (therefore reducing the need to borrow) and/or set aside to repay debt as outlined in paragraph 3.10.

·         That Cabinet agrees to the sale of the assets in accordance with the Asset Management Plan and identified in the exempt background paper in order to support the capital programme, and that once agreed, no further options are considered for these assets.