Decision details

1.

Approves the revenue estimates for 2018/19 and that consequently the local tax requirement estimated at £47.674m is funded from Council Tax and confirms the following rates, charges and flexibility in payment terms for the year 2018/19:

a)     Council tax to be paid in respect of a chargeable dwelling in band D of £1,249 representing a 3% increase;

b)     Council tax to be paid in respect of a chargeable dwelling in each of the other valuation bands in accordance with section 74(1) of the Local Government Finance Act 1992 as amended;

c)     Business rates as determined by Scottish Ministers;

Further, to provide more flexibility and support effective money management by households, extends on request the option to pay by direct debit either over 12 months or over 10 months.

2.

Notes and approves the detail provided in the Head of Strategic Finance’s Revenue Budget Overview report and the surplus of £2.949m in 2018/19, subject to the following amendments as set out below and reconciled in the Administration’s Revenue Budget Model in Appendix 1:

a)     Agrees to increase the allocation to the Health and Social Care Partnership for 2018/19 to £56.400m, not accepting the £0.725m reduction to the base payment set out in the Revenue Budget Overview report section 3.7 and adding a further £0.844m to support the partnership in addressing cost pressures.  Approves indicative allocations for 2019-20 and 2020-21 to be £56.400m subject to the level of Scottish Government funding and the Council’s overall financial position in future years;

b)     Approves the adjustment to the Live Argyll management fee, resulting in a management fee of £3.579m in 2018/19;

c)     Approves a one-off budget allocation of £0.260m in support of the One Council approach to property, to be spent over financial years 2018-19 and 2019-20;

d)     In respect of the policy savings options consulted on:

                           i.          Does not take forward policy savings options listed in Appendix 2a and agrees the additional commitments set out in the comments section;

                          ii.          Approves in part the policy savings options amounting to £0.343m in 2018/19, with further savings in future years, and agrees the additional commitments set out in the comments section as detailed in Appendix 2b;

                         iii.          Approves in full the policy savings options amounting to £0.945m in 2018/19, with further savings in future years, as outlined in Appendix 2c.

3.

Approves that, after the changes as noted in point 2 above, the remaining revenue budget surplus of £2.408m is transferred to support the capital plan.

4.

Approves the capital plan and phasing, cost changes and additions as set out in Appendix 3, 4 and 5 of the Capital Plan Summary Report.  Further approves the additions to the capital plan as outlined in the table below and notes that the additional funding required is met from the revenue budget surplus for 2018/19, the unallocated General Fund balance and in respect of the additional £2.8m allocation for Roads in 2019-20, this is met by not taking the full saving in loans charges from 2019-20 onwards.

5.

Approves the proposals for the use of the unallocated General Fund balance as outlined in the table below, and notes that this will leave a remaining unallocated General Fund balance of £0.308m prior to the year end, with an estimated £0.808m at the year end, over and above the 2% contingency;

6.

In planning for the longer term, notes the estimated revenue budget gap in the mid-range scenario in 2019/20 of £4.124m and in 2020/21 of £6.249m as outlined within Appendix 1.  Further, the Council:

a)     Endorses the proposed Transformation Board activities for 2018/19 onwards and requests reports from officers to come forward to members as appropriate;

b)     Extends the expiring events and festivals Service Level Agreements for one year, with updated proposals for future years to come to the Policy and Resources Committee for delegated decision in May 2018;

c)     Welcomes the Medium to Longer Term Financial Strategy agreed by Policy and Resources Committee in October 2017 and agrees that every opportunity should be taken throughout the year to identify, and present for Council approval, appropriate options for delivering budget efficiencies and savings that ensure a well-planned and secure financial future for the Council.

7.

Endorses the proposed improvements to the Capital Planning process which will enable emerging requirements and risks across the Council’s services to be identified and prioritised and instructs officers to bring a report to Council by June 2018 providing an update on these changes.

8.

Agrees that confirmation from both UK and Scottish Government of a Rural Growth Deal for Argyll and Bute during 2018/19 is an absolute target and priority for this Council, and:

a)     in recognition that there is a changing focus for city/rural growth deals, requests an initial report to Policy and Resources Committee in May 2018, with a final proposal reported to P&R/Council in October 2018;

b)     confirms the suite of funds which were identified as ALIRRI (Argyll, Lomond and the Islands Rural Regeneration Initiative) will act as the Council’s initial commitment to a future Deal; and an additional criteria is added to the Inward Investment Fund, requiring any approved investment to support the key aims and themes of the Argyll and Bute Rural Growth Deal.

9.

Acknowledges the feedback given by local people through the budget consultation and thanks everyone who contributed.  Further, welcomes the commitment from local people to help their local area and:

a)     Requests the Chief Executive bring a report to members following the Turning Volunteer Participation Upside Down conference in March, on ways of developing enhanced opportunities for community engagement;

b)     Instructs officers to make arrangements to ensure communities are given the fullest opportunity to contribute their views on being involved in public sector decisions, as the Scottish Government’s Local Governance Review gets under way.

10.

Approves all service plans, subject to updating the budget figures in line with the budget agreed for 2018/19.

11.

Approves the proposals for the fees and charges inflationary increase of 3%, the two fee changes in respect of schools meals and milk previously advised as part of service choices proposals and approves the additional 3% increase over and above inflationary increase for piers and harbours to be ring-fenced to fund asset improvements.

12.

Notes the revenue budget monitoring position as at 31 December 2017.

13.

Notes the financial risks analysis report.

14.

Accepts the Corporate Asset Management Strategy, the Corporate Asset Management Plan, the Service Asset Management Plans and ICT Group Asset Management Plan.

15.

Approves the contingency level for the General Fund balance at a level of 2% of net expenditure equivalent to £4.726m and notes the report on reserves and balances.