Agenda and minutes

Budget, Argyll and Bute Council - Thursday, 22 February 2018 11:30 am

Venue: Council Chamber, Kilmory, Lochgilphead

Contact: Sandra Campbell Tel: 01546 604401 

Items
Note No. Item

Councillor Rory Colville presented a Petition to the Council in relation to the Budget and the proposed closure of public toilets in Campbeltown.  This Petition was accepted by the Provost and it was confirmed that it would be passed to the appropriate department.

 

1.

APOLOGIES FOR ABSENCE

Minutes:

Apologies for absence were intimated from Councillors McCuish, McGrigor, McKenzie and William Stewart Shaw, Religious Representative.

2.

DECLARATIONS OF INTEREST

Minutes:

Councillors Anderson, Lynch and Hardie each declared a non financial interest in relation to the report on Budgeting Pack 2018/2019 which is dealt with at item 5 of the Minute due to them being on Live Argyll. Councillor Anderson also advised of a similar issue with the IJB. The Councillors claimed the benefit of the dispensation contained at Section 5.16 of the Standard Commission’s Guidance and Dispensations Note dated December 2010 to enable them to speak and vote. Councillor Anderson also advised of a non financial appointment to Interloch which he regarded as insignificant in respect of the budget item.

3.

MINUTES

3a

Argyll and Bute Council held on 30 November 2017 pdf icon PDF 96 KB

Minutes:

The Minutes of the Meeting of Argyll and Bute Council held on 30 November 2017 were approved as a correct record.

3b

Special Argyll and Bute Council held on 25 January 2018 pdf icon PDF 63 KB

Minutes:

The Minutes of the Meeting of Argyll and Bute Council held on 25 January 2018 were approved as a correct record.

4.

MINUTES OF COMMITTEES

4a

Environment, Development and Infrastructure Committee held on 7 December 2017 pdf icon PDF 62 KB

Minutes:

The Minute of the Environment, Development and Infrastructure Committee held on 7 December 2017 were noted.

4b

Policy and Resources Committee held on 8 December 2017 pdf icon PDF 85 KB

Minutes:

The Minutes of the Policy and Resources Committee held on 8 December 2017 were noted.

*

4c

Community Services Committee held on 14 December 2017 pdf icon PDF 97 KB

Minutes:

The Minute of the Community Services Committee held on 14 December 2017 were noted.

 

Arising under Item 15 (ACHA Stock Restructuring Proposals) the Council:-

 

1.     Agreed ACHA’s proposals to remove 89 units from the affordable rented stock by means of sale or demolition by a formal amendment to the Transfer Agreement.

 

2.     Supports ACHA’s request to the Scottish Government to exclude any disposals undertaken as part of these proposals from the tripartite Disposal Clawback Agreement.

 

3.     Advise ACHA that the proposed demolitions will require to be the subject of separate approvals from the Council as the Planning and Building Control Authority. ACHA also to be reminded that they will remain responsible for the maintenance of the areas of land detailed in this report; and

 

4.     Advise ACHA that any future proposals to dispose of any of the land freed up by the demolitions will be subject to approval from Argyll and Bute Council.

*

4d

Policy and Resources Committee held on 15 February 2018 pdf icon PDF 77 KB

Minutes:

The Minutes of the Policy and Resources Committee held on 15 February 2018 were noted.

 

Arising from Item 5 (Financial Report Monitoring Pack – December 2017), the Council agreed that:-

 

1.     The 2017-18 Live Argyll management fee is increased from £1.728m to £1.776m in line with the analysis carried out by Strategic Finance.

 

2.     Providing that there is no impact on the Council’s bottom line position, delegation is given to the Head of Strategic Finance to vary the management fee to reflect any accounting adjustments required at year end.

 

3.     The payment to the Health and Social Care Partnership in 2017-18 is increased by £0.044m to transfer over the budget required for auto enrolment.

 

Arising from Item 6 (Budgeting Pack 2018/2019), 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 5 of the Agenda (Budgeting Pack).

 

Arising from Item 7 (Treasury Management Strategy Statement and Annual Investment Strategy), the Council agreed that this would be dealt with under Item 6 of the Agenda.

 

Arising from Item 8 (One Council Property Approach), the Council agreed that this would be dealt with under Item 5 of the Agenda.

 

Arising from Item 9 (Corporate Plan 2018-2022), the Council agreed that this would be dealt with under Item 7 of the Agenda.

5.

BUDGETING PACK 2018/2019

1.    Introductory Report and Recommendations for Budget Papers

 

2.    Revenue Pack

a)    Budget Consultation – Findings Report

b)    Service Plans 2018-20

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

d)    Report on Fees and Charges

e)    Revenue Budget Monitoring 2017-18 as at 31 December 2017

f)     Report on Financial Risks Analysis

g)    Report on Reserves and Balances

 

3.    Capital Plan

a)    Capital Plan Summary

b)    Corporate Asset Management Strategy

c)    Corporate Asset Management Plan

d)    Community Services Asset Management Plan

e)    Customer Services Asset Management Plan

f)     ICT Group Asset Management Plan

g)    Development and Infrastructure Asset Management Plan

h)    Health and Social Care Partnership Asset Management Plan

i)     Live Argyll Asset Management Plan

Additional documents:

Minutes:

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 2019 which had been referred without recommendation by the Policy and Resources Committee held on 15 February 2018.

 

Decision

 

The Council:

 

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.

 

 

 

Administration Capital Budget – ADDITIONAL Spending

2018/19

£000

2019/20

£000

Shortfall as reported by Head of Strategic Finance

2,761

 

Roads capital improvement works

5,500

2,800

Footpaths capital improvement works

250

250

Queens Hall (contingency)

400

 

Funding to address property high risks not addressed in capital plan: Outbuilding upgrade Manse Brae District Office; Accessibility upgrade Kilmory; Accessible Parking and Footpaths Kilmory; Fabric upgrade Tobermory Area Office; External access upgrade Whitegates

170

 

Funding for IT Infrastructure: Kilmory Server; Corporate PC replacement; Network switches

767

 

Funding for Live Argyll properties to address highest priority works, including: asbestos and floor/toilet works at Oban Library; fire escape work at Victoria Halls, Helensburgh; maintenance works at Aqualibrium, Rothesay and Helensburgh Swimming Pools; fire safety works at Campbeltown Community Centre; cladding at Riverside Leisure Centre

450

 

Health and Social Care Partnership - Digitising Telecare

50

50

Funding required for Capital Plan

10,348

3,100

Funded from:

 

 

Revenue Budget Surplus 2018/19

2,408

 

Revenue Budget Additional Loans Charges

 

2,800

Unallocated General Fund Balance

7,940

300

Capital Plan Balanced Budget

0

0

 

 

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;

 

Unallocated General Fund Balance

£000

Unallocated General Fund Balance as per budget pack

3,549

Tranche 1 of Additional Money received 2017-18

624

Release of £4m smoothing held against 2019-20

4,000

WW1 Commemorations Islay

(15)

Extend Bute Advice Centre SLA for a further year and defer loan repayment until 31st March 2019

(22)

One-off additional payment to ABCAB and defer loan repayment until 31st March 2019

(35)

One-off additional payment to Kintyre Recycling

(18)

Payment to MACPool of £15k (18/19) and £10k (19/20) to support delivery of expanded services through their proposed development project

(25)

Adjustment to keep 2% contingency level

(10)

Use proportion of 2017-18 estimated underspend

500

Allocated to capital plan

(8,240)

Remaining Unallocated General Fund Balance

308

Remainder of 2017-18 estimated underspend

500

Estimated Unallocated General Fund Balance as at 31 March 2018

808

 

 

 

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  ...  view the full minutes text for item 5.

6.

TREASURY MANAGEMENT STRATEGY STATEMENT AND ANNUAL INVESTMENT STRATEGY pdf icon PDF 69 KB

Report by Head of Strategic Finance

Additional documents:

Minutes:

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 2018-19.

 

Decision

 

The Council agreed to:-

 

1.     Approve the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within.

 

2.     Approve the use of Option 1 (statutory method) for the repayment of loan fund advances in respect of existing capital expenditure and new advances up to 31 March 2012 at an interest rate of 4.423%, with the exception of spend to save schemes where Option 4 (funding/income profile method) will be used.

 

3.     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 Head of Strategic Finance dated 2 February 2018, submitted)

7.

CORPORATE PLAN 2018-2022 pdf icon PDF 96 KB

Report by Executive Director of Customer Services

Additional documents:

Minutes:

A report which presented the Council with the new Corporate Plan 2018-2022 was given consideration. The Corporate Plan sets out the strategic context for the Service Plans and the Council Budget.

 

Decision

 

The Council agreed the Corporate Plan 2018-2022.

 

(Ref: Report by Executive Director of Customer Services dated 24 January 2018, submitted)

E1       Paragraph 6  Information relating to the financial or business affairs of any particular person (other than the authority).