Agenda and minutes

The Provost ruled, and the Council agreed, that the business dealt with at Item 6 of this Minute be dealt with as a matter of urgency by reason of the need to take a decision on the level of funding for Rothesay Pavilion.

The Provost announced that the Leader of the Council had been given a petition signed by 872 residents on Jura and Islay with regard to budget savings to remove the subsidy for schools swimming. The petition will be available for any member who wishes to scrutinise it.

Apologies for absence were intimated by Councillors Forrest, Kelly, McCuish, McKenzie, E Morton and Margaret Anderson, Roman Catholic Church representative.

Councillor Jim Findlay declared a non-financial interest in relation to the report on Rothesay Pavilion which is dealt with at item 6 of the Minute due to him being a Board Member of the Rothesay Pavilion. He claimed the benefit of the dispensation contained at Section 5.16 of the Standard’s Commission’s Guidance and Dispensation Note to enable him to speak and vote.

Councillors Anderson, Hardie and Lynch each declared a non-financial interest in relation to the report on Budgeting Pack 2020/21 which is dealt with at Item 7 of the Minute due to them being Board Members of Live Argyll. The Councillors claimed the benefit of the dispensation contained at Section 5.16 of the Standard’s Commission’s Guidance and Dispensation Note to enable them to speak and vote.

Argyll and Bute Council of 28 November 2019

The Minutes of the Meeting of Argyll and Bute Council held on 28 November 2019 were approved as a correct record.

The Minute of the Environment, Development and Infrastructure Committee held on 5 December 2019 were noted.

Arising from item 6 (Lismore Ferry Replacement), the Council agreed that this will be considered under item 6 of the Agenda (Budgeting Pack).

Arising from item 7 (Campbeltown Flood Prevention Scheme), the Council agreed that this will be considered under item 6 of the Agenda (Budgeting Pack).

The Minute of the Community Services Committee held on 10 December 2019 were noted.

The Minutes of the Policy and Resources Committee held on 17 December 2019 were noted.

Arising from Item 4 (Financial Monitoring Report as at 31 October 2019), the Council approved the revenue virements over £0.200m during September and October.

Arising under Items 11, 20 and 22 (Lismore Ferry Replacement, Third Sector Recycling Scheme and Rothesay Pavilion) the Council agreed to consider these items under item 6 of the Agenda (Budgeting Pack).

The Minutes of the Policy and Resources Committee held on 20 February 2020 were noted.

Arising from Item 4 (Financial Report Monitoring Pack – December 2019), the Council agreed that the revenue virements over £0.200m during November and December are approved.

Arising from Item 5 (Treasury Management Strategy Statement and Annual Investment Strategy), the Council considered this under Item 5 of the Agenda.

Arising from Item 6 (Budgeting Pack 2020/2021), the Policy and Resources Committee had referred the Budgeting Pack for consideration to the Council without recommendation. It was noted that this would be considered under Item 6 of the Agenda (Budgeting Pack).

Arising from Item 7 (Changes to Chief Officer Recruitment), the Council agreed that the  Council’s Constitution is updated to reflect the agreed changes to the Appointments Panel as outlined in the Policy and Resources Minute.

Report by Section 95 Officer

The Council gave consideration to a report which sought approval of the proposed Treasury Management Strategy Statement and Annual Investment Strategy which set out the Council’s Strategy for borrowing and investment for the forthcoming year. The report also set out the policy for the repayment of loans fund advances for 2020-21 which had been referred without recommendation by the Policy and Resources Committee held on 20 February 2020.

Decision

The Council:-

a) Approve the proposed Treasury Management Strategy Statement and

Annual Investment Strategy and the indicators contained within.

b) Approve the use of the statutory method for the repayment of loan fund

advances prior to 1 April 2019 in respect of existing capital expenditure

using a 5.1% annuity interest rate over an average period of 32 years. For

those loans fund advances outstanding at 1 April 2004 a repayment

period of 14 years will be used.

c) Approve the use of the asset life method for the repayment of loan fund

advances after 1st April 2019 using a 5.1% annuity interest rate, with the

exception of spend to save schemes where the funding/income profile

method could be used.

d) Approve the proposed asset repayment periods as detailed within section

2.6 of the Treasury Management Strategy Statement.

e) Approve the ability to continue to use countries with a sovereign rating of

AA- and above, as recommended by Link Asset Services.

(Ref: Report by Section 95 Officer dated 13 February 2020, submitted)

The Council resolved in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 to exclude the press and public for the following item of business on the grounds that it was likely to involve the disclosure of exempt information as defined in Paragraphs 8&9 respectively of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973.

Report by Interim Executive Director

The Council considered a report which provided an update on the request for additional funding from Rothesay Pavilion following further consideration of the options as outlined in the report to the Policy Resources Committee on 17 December 2019 and also a meeting held with Rothesay Pavilion Charity on 14 February 2020. 

Motion

It is recommended that Council:

a)     Consider in light of the information contained in this update and having particular regard to the elements of material risk highlighted, if they are prepared to agree to the funding package of up to £0.750m over 2020-21 and 2021-22 in addition to the £0.150m per annum previously agreed, noting that if they are so inclined, consideration will require to be given to the appropriate provision within the budget proposals.   

b)     If yes, they instruct the Executive Directors to finalise a funding agreement with RPC, which through its conditions, seeks to minimise the risk to the Council as far as is reasonably practicable and to report back to Policy and Resources Committee on the finalised package.  The conditions will include adequate business and financial management capacity being in place before significant funds are released; and regular reporting by RPC that allows effective monitoring of the agreement by the Council.

Moved by Councillor Mulvaney, seconded by Councillor A Morton.

Amendment

Argyll and Bute Council notes the contents of the report and the request from Rothesay Pavilion for funding of up to £750k over 2020-21 and 2021-22 in addition to the £150k per annum previously approved by the Council.

The Council also notes that the current request is £178k more than the previous request from Rothesay Pavilion for £286k for each year over 2020-21 and 2021-22 which was considered by the Policy and Resources Committee on 17 December 2019 with that request being in addition to the £150k per annum already agreed by the Council.

The Council notes with concern that any additional funding approved for Rothesay Pavilion will require equivalent cuts in Council services / budgets / staff.

Given the high risks identified by officers relating to this request, the Council agrees to take no action at this time whilst negotiating an exit strategy and confirming conditions regarding use of funds.

Moved by Councillor Freeman, seconded by Councillor Philand.

Decision

On a show of hands vote, the Amendment received 3 votes and the Motion received a substantial majority which the Council resolved accordingly.

(Ref: Report by Executive Directors dated 26 February 2020, submitted)

1.     Introductory Report and Recommendations

2.     Revenue Pack

a)     Budget Consultation – Findings

b)     Service Plans 2020-2023

c)     Assessing Equality and Socio Economic Impact

d)     Revenue Budget Overview (Appendix 8 is marked exempt (E1)

e)     Fees and Charges

f)       Financial Risks Analysis

g)     Reserves and Balances

3.     Capital Plan

a)     Capital Plan Summary Report

b)     Corporate Asset Management Strategy

c)     Corporate Asset Management Plan including Asset Group Summaries

The Provost advised that in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973, the appendix 8 relating to Item 2(d) of the Budgeting Pack would require him to exclude the press and public should any Member wish to discuss the content of this appendix on the grounds that it was likely to involve the disclosure of exempt information as defined in Paragraph 6 respectively of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973.

The Council considered the Revenue Budget and Capital Budget papers as contained within the budgeting pack, considered such other appropriate resolutions in relation to these papers and fixed the Council Tax for the year to 31 March 2021 which had been referred without recommendation by the Policy and Resources Committee held on 20 February 2020.

Motion

Argyll and Bute Council:

1. Approves the revenue estimates for 2020/21 and that consequently the local tax requirement estimated at £52.859m is funded from Council Tax. Approves the following rates and charges for the year 2020/21:

a)     Council Tax to be paid in respect of a chargeable dwelling in Band D of £1,367.73, representing at 4.5% 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.

2. Notes and approves the detail provided in the Revenue Budget Overview Report, subject to the decisions outlined below and reconciled in the Administration’s Revenue Budget Model at point 3:

a)     Approves a base allocation to the Health and Social Care Partnership of £60.577m for 2020/21, with net payment of £60.077m once the debt repayment schedule requested by the HSCP is taken into account; this schedule, including future years indicative payments, is also approved as set out in the table at 3.6.10 of the Revenue Budget Overview Report.  Notes the remaining overspend of £1.327m from 17/18 and 18/19 will need to be repaid, and that the profile for repayment will be considered by the Policy and Resources Committee at its May 2020 meeting, when the 19/20 overspend is confirmed. Agrees that in the event of the HSCP underspending in 2020/21 or any future years, the council will seek earlier repayment of outstanding debts. Notes that the level of future years funding is 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 in 2020/21 of £3,788m. Notes that the service level agreement is due to be renewed for 2021/22 onwards. Instructs officers to engage with Live Argyll, in light of the Trust’s ongoing income generation and the non-statutory elements of the service, with a view to exploring a reduction in the management fee. Requests that officers provide reports to the Policy and Resources Committee over the course of 2020/21 as this work progresses;

c)     Approves the transfer of £0.500m of revenue funding to the capital programme to reflect the additional revenue funding provided by the Scottish Government to pay for the required replacement of MV Lismore;

d)     Notes the management/operational savings totalling £1.37m as outlined in Appendix 5 of the Revenue Budget Overview Report which were endorsed by the Council in October 2019, and endorses the one-off fleet saving of £0.278m and the loans fund saving of £2.5m;

e)     Approves the policy savings options listed in Appendix 6 of the Revenue Budget Overview Report, with the following exceptions:

i) Savings options rejected in full - £564.9k

ii) Agrees, in relation to the above savings options, the following additional instructions:

ED14 – requests that officers review all payments to these organisations ahead of the main Service Level Agreement (SLA) renewal next year and streamline funding into a single payment.

RAIS04 – Requests that officers carry out a holistic review of parking arrangements across Argyll and Bute and develop proposals that take into account the needs of communities, business and visitors, addressing local demand, congestion, climate change and ease of use. Requests that officers bring forward a programme for the review to be taken forward on an area basis, with priority given to those areas where there has already been community engagement (Luss and Tobermory).

iii) Savings options rejected in part - £79k

iv) Notes that the total savings delivered through acceptance of policy savings options is £1.406m and is confirmed in the Administration’s Revenue Budget Model at point 3 below.

f)       Agrees the following investments in line with the Council’s Priorities: