Agenda item

 

Council were presented with the Revenue and Capital Budget 2016/17, final proposals following budget consultation.  The purpose was:

 

1.    To update Council with the consultation responses to the budget proposals issued by Cabinet on the 7th October 2015 and 3rd December 2015 in respect of the Capital and Revenue budgets.

2.    To update members with implications arising from the provisional Settlement announcement of the Welsh Government.

3.    To make recommendations to Council on the Capital and Revenue budgets and level of Council Tax for 2016/17.

4.    To receive the Responsible Financial Officer’s Prudential Indicator calculations for capital financing.

5.    To receive the statutory report of the Responsible Financial Officer on the budget process and the adequacy of reserves.

The Cabinet Member thanked Officers and members of the public.

 

County Councillor D. Batrouni opposed the budget, reasons included DFG, cuts to vital areas, effect on schools and transport issues surrounding Deri View.

 

County Councillor S. Howarth proposed an amendment that, two mandates B14 & B15 were retained in budget, this was duly seconded.

 

In presenting the amendment County Councillor Howarth highlighted the following regarding mandates:

 

·         B11 – Further information was requested at the select committee regarding savings and reorganisation.  £315k, further information was awaited.

·         B14 – Explanation was requested as to why urbanised areas would still retain cuts. 

·         B15 – Reduction of crews and vehicles.  Clarification was requested regarding how work would be undertaken and how services would be delivered.

·         B21 – Working with town and community councils.  Requirement for further transparency and a need to work together.

During debate we noted the following:

 

·         A member opposed to the reduction in highways budget.  The importance of service delivery and appropriate infrastructure was highlighted.  It was felt that cutting would improve appearance throughout the county.  

·         Council were reminded that the authority were under significant pressure, priority areas were schools and social services.

·         Officers confirmed that hedge cutting in urban areas was undertaken twice a year.  Particular focus was maintained on rural routes and lanes.

·         A number of Members commended officers in making the efficiency savings that were required. 

·         Significant concerns were expressed regarding the Future Generations Assessment, which appeared to be incomplete and that final versions should be available.  The authority had been an early adopter of the Future Generations Act and the detail would be helpful, so that members could have identified the impact on future generations.

·         It was suggested that additional funding could be found through an increase in Council Tax.  Opposing views were that Council Tax should not be increased and the public could not afford constant increases.

·         Further information was requested regarding the demographic breakdown of consultees during budget engagement.  In response, council were informed that a lot of engagement was undertaken and responses were evaluated.

Upon being put to the vote, the amendment was defeated. 

 

We debated the original recommendation:

 

·         Detail was requested regarding the accumulation of debt, through council tax collection and what was written off.

·         A member highlighted that an increase in council tax would result in more income for the authority.  

·         We recognised that the Welsh Government funding formula did not recognise rurality, which resulted in Monmouthshire being at a disadvantage in funding terms.

·         It was understood that references had been made at consultation which opposed cuts to the highways budget.  However, this had not been reflected in updated mandates. 

·         Council Tax had not been subject to increase for a number of years with a significant increase recently.   

County Councillor F. Taylor proposed an amendment, which was duly seconded, to increase the council tax from 3.95% to 4.95% increasing Band D by £10.95 per annum.  Money prioritised for mandates mentioned by Councillor Howarth.

 

In debating the amendment we noted:

 

·         Healthy at home preventative work was highlighted as important as restorative work.  Funding was provided and contributions were made from the supporting people budget.

·         A member indicated that emphasis had been directed towards Town and Community Councils taking on services.  There was a need to ensure that this was done in an appropriate manner with necessary funding being reserved.

·         In summing up, the member highlighted that the income would allow the highways budget to be retained and income for healthy homes.

A recorded vote was proposed and agreed.  We recorded the following:

 

FOR:               County Councillors R.J.C. Hayward, S.G.M. Howarth, D.W.H. Jones, F. Taylor and A.M. Wintle (6) 

AGAINST:       County Councillors G.C. Burrows, P.R. Clarke, D.L.S. Dovey, G.L. Down, D.L. Edwards, R. Edwards, P.A. Fox, R.J.W. Greenland, E.J. Hacket Pain, G. Howard, P. Jones, S. Jones, S.B. Jones, R.P. Jordan, P. Murphy, M. Powell, J.L. Prosser, B. Strong, A.E. Webb and S. White  (21) 

ABSTAINED: County Councillors D. Batrouni, J.E. Crook, A. Easson, D.J. Evans, P.S. Farley, R.G. Harris, R.J. Higginson, V.E. Smith, A.C. Watts and P.A. Watts (10)

 

The amendment was defeated.

 

Following a 10 minute adjournment, Council debated original recommendations.

 

·         Council recognised the importance of delivering service to an expected level and that budget pressures would be ongoing over future years.  There would be considerable financial burdens in all areas, which would have to be addressed.

·         The public had been consulted and engaged during the budget setting process, in addition there had been significant scrutiny, which was supported by members.

·         Officers were commended in proposals that had been presented.

·         Clarification was requested regarding the position of Skutrade and whether the project had been completed, which Cabinet had agreed contribution of £100k.

It was proposed by County Councillor Hayward and duly seconded, that £100k funding was withdrawn from Skutrade.

 

·         Officers clarified that the authority had been working closely with Skutrade and information had been presented to the Economy and Development select committee (early 2015).  The funding would be issued as a loan, recovered over a 5 year period and could not be displaced elsewhere.  The progress was being assessed, due diligence had been apportioned to the Cabinet Member, Head of Finance and Chief Officer Enterprise.

·         The Chair of Economy and Development Select committee confirmed that the item would be reconsidered by the select committee.

Upon receipt of information it was clarified that money given to Skutrade did not form part of the budget, therefore no further comments were made.

 

In summing up, Councillor Murphy highlighted that Council Tax collections were in excess of 99%.

 

Clarification was requested regarding the amount that was written off and whether Welsh Government would provide monies for rural authorities.  

 

The Cabinet Member confirmed that necessary information would be provided to members.

 

It was proposed and duly seconded that recommendations within the report were approved.

 

A recorded vote was proposed and agreed:

 

FOR:               County Councillors G.C. Burrows, P.R. Clarke, D.L.S. Dovey, D.L. Edwards, R. Edwards, P.A. Fox, R.J.W. Greenland, L. Guppy, E.J. Hacket Pain, G. Howard, P. Jones, S. Jones, S.B. Jones, R.P. Jordan, P. Murphy, M. Powell, J.L. Prosser, B. Strong, A.E. Webb and S. White (20)

AGAINST:       County Councillors D. Batrouni, J.E. Crook, A. Easson, D.J. Evans, P.S. Farley, R.G. Harris, R.J. Higginson, S.G.M. Howarth, D.W.H. Jones, J.I. Marshall, V.E. Smith, F. Taylor, A.C. Watts, P.A. Watts and A.M. Wintle (15)

ABSTAINED:  County Councillors G.L. Down and R.J.C. Hayward (2)

 

Upon being put to the vote, recommendations within the report were carried.

 

Council resolved that recommendations within the report were approved:

 

1.    That Council approves (subject to Final Settlement from WG):

o   The 2016/17 revenue budget as attached in Appendix I

o   The 2016/17 to 2019/20 capital programme as attached in Appendix J1, including the revisions to the 21st century schools programme highlighted in paragraph 3.34.

o   A 3.95% increase in the Band “D” equivalent Council Tax for the County in 2016/17.

2.    That Council notes the necessary saving proposals and the release of £1.822 million from earmarked reserves to deliver the changes required and support the 2016/17 revenue and capital budget.

3.    That Council notes the draft response to Welsh Government on the provisional settlement, and that the Final settlement is due to be published on 2nd March 2016.

4.    That Council approves the disposal of assets identified in the exempt background paper at best value.

5.    That Council considers the Responsible Financial Officers report on the robustness of the budget process and the adequacy of reserves issued under the provisions of the Local Government Act, 2003.

6.    That Council adopts the Responsible Financial Officers report on Prudential Indicators.

7.    That Council formally notes that the Schools based budgets are currently protected at cash flat line.

8.    That Council notes that further work will be undertaken on the following:

o   Further work is undertaken to develop a balanced MTFP over the 3 year period 2017/18 to 2019/20

o   Regular review of the MTFP to ensure it remains up to date