Agenda item

Reports by Section 95 Officer

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 2024 which had been referred without recommendation by the Policy and Resources Committee held on 16 February 2023.

 

Motion

 

The Council:

 

a)    Approves the revenue budget for 2023/24 as set out in the Revenue Budget Overview Report and subject to the decisions outlined below and in the Administration Revenue Budget Model provided at Appendix 1 (A).

 

b)    Approves a base allocation to the Health and Social Care Partnership of £76.253m for 2023/24. Approves indicative base allocations for 2024/25 and 2025/26 to be £76.253m. 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.

 

c)    Notes the deferred 3% reduction to the Live Argyll management fee from 2022/23 and approves a 3% reduction in 2023/24, resulting in a management fee of £3.835m for 2023/24.

 

d)     

 

(i)            Endorses the new management/operational savings totalling £2.962m outlined in Appendix 5 of the Revenue Budget Overview Report.

(ii)           Rejects the following policy savings options, in full or in part, as set out below and in the Administration Revenue Budget Model at Appendix 1(A) and totalling £319.5k in 2023/24:

·         EDU2324-003 – Funding for parent/toddler groups/other non-statutory third sector

·         CSS2324-001 – Customer Engagement Team

·         RIS2324-001 – School Crossing Patrollers, while agreeing that all SCP posts vacant for one year or more are deleted from the establishment (saving of £60k)

·         DEG2324-002 – Funding contribution to Argyll and the Isles Countryside Trust (ACT)

(iii)          Accepts all other policy savings options totalling £6.144m.

 

 

e)    In respect of the service concession arrangements:

(i)            Approves the accounting change as outlined within the report, noting the principal repayment period will now be 60 years which better reflects the life of the asset.

(ii)           Notes that this accounting change will create a one-off retrospective benefit of £36.038m.

(iii)          Agrees that £5.4m of the one-off retrospective benefit will be used to replace exercising the principal repayment holiday that was previously agreed by Council.

(iv)         Notes that the view of the Council’s Section 95 Officer is that the revised accounting approach is affordable, sustainable and prudent.

(v)          Invests the remaining £30.638m in Priorities for Argyll and Bute as set out in Table 1 below.

 

f)     Approves the capital plan as set out in Appendix 3 of the Capital Plan Summary Report, and agrees to fund the £725k gap through transfers to the Capital Plan as set out in the Administration Capital Budget Model provided at Appendix 1 (B) to this motion, and agrees additional capital allocations for investment in Priorities for Argyll and Bute, as set out in Table 1:

 

Table 1 – Investing in Argyll and Bute’s Priorities

 

Supporting Delivery of Priorities for Argyll and Bute – delivering a vision for Argyll and Bute, our people, our success and our future
				Funded From
£7m	Priorities Investment Fund	Safeguarding future investment in Priorities for Argyll and Bute by making long-term use of service concession gain to establish dedicated fund to lever in, secure and support key strategic investments in this year and future years.		Service Concessions
£2m	Capital Projects Inflation Pressures	Boosting resilience of Capital Programme and providing added support as required for key capital/infrastructure projects.		Service Concessions
Priorities: Education – Learning Estate, now and in the future Partnership and Action – contributing to tackling climate change
£8m	Learning Estate Investment Strategy	Signalling council’s commitment to working in partnership to secure new schools for Argyll and Bute, through substantial investment to support future-proofing of Argyll and Bute’s schools estate.		Service Concessions
£640k	Climate Change	Continuing our track record of investing in climate change with funding to further enhance school estate climate change measures, with allocations for primary and secondary schools across the area in Campbeltown, Dunoon, Helensburgh, Lochgilphead, Oban and Rothesay.		Service Concessions
Priorities: Potential and Growth – investing in the future. Partnership and action – everyone has a part to play in Argyll and Bute’s future success.
£6.132m	Rothesay Pavilion	Building on previous commitments to securing a future for this building of international, national and local significance with additional contribution to the overall funding target which requires collective action; helping project to progress towards success with funding that supports completion of certain work stages and securing wind/watertight status.		Service Concessions (£4.772m) Recovery and Renewal Fund (£1.360m)
Priorities: Infrastructure, Waste and Recycling Services Partnership and Action – playing our part in tackling climate change
£3.5m	Biodegradable Municipal Waste (BMW) Ban	Ensuring Argyll and Bute is able to better address the challenges faced by a remote/rural/ island region in complying with the forthcoming national BMW ban.		Service Concessions
£700k	New refuse collection vehicles	Enhancing waste and recycling uplift arrangements through placing orders for new refuse vehicles.		Service Concessions
Priority: Roads and Infrastructure – roads and pathways
£3.797m	Extra Capital Funding for Roads	Allocating more capital funding in for roads repair and maintenance programme as part of overall £8m total investment for 2023/24.		Unallocated General Fund
£4.588m	Roads Investment to Capital	Augmenting overall allocation for roads repair and maintenance programme with additional funds to bring up to £8m total investment for 2024/25.		Service Concessions (£3.546m) Unallocated General Fund (£1.042m)
£750k	Footpath improvements	Providing additional funding for footpath improvements across Argyll and Bute.		Unallocated General Fund
£250k	New jet patcher vehicle	Complementing multi-million pound capital investment in roads repair and maintenance with new jet patcher order to support delivery of programme.		Service Concessions
£230k	New road marking vehicle	Completing suite of investments in new fleet procurement, to support delivery of roads repair and maintenance programme, with order for additional road marking vehicle.		Service Concessions
Priority: Potential and growth – making assets work now
£531k	ICT computer replacement	Supporting the council’s digital resilience and overall efficiency with investment in ICT assets.		Unallocated General Fund
Total Investments through Service Concessions				£30.638m
Total Investments through Recovery and Renewal Fund				£1.360m
Total Investment from Unallocated General Fund				£6.120m
Total Investments in Priorities for Argyll and Bute				£38.118m

 

g)    Agrees the following external funding requests, to be funded on a one-off basis for 2023/24 from the Unallocated General Fund:

(i)            CHARTS - £75k

(ii)           Mid Argyll Community Pool - £30k

(iii)          MacTaggart Leisure, Islay – £30k

 

h)    Approves the following in relation to fees and charges with effect from 1^st April 2023 unless otherwise noted:

(i)            Freezing ferry fares on the four Argyll and Bute Council-operated ferry services (Jura, Cuan, Lismore, Easdale) until 31^st March 2024 – total financial impact £38k.

(ii)           No increase to school meal charges in 2023/24 as detailed in section 3.5.2 of the Fees and Charges report.

(iii)          Approves proposals for an inflationary increase of 6% to all other fees and charges and approves the charges that are over and above inflation, noting that this results in additional income of £0.8m in total.

(iv)         Approves the changes proposed to the Social Work fees and charges.

 

i)      Notes the financial risks analysis.

 

j)      Approves the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £5.691m, and notes the report on reserves and balances.

 

k)    Approves the allocation of £0.1m from the Unallocated General Fund balance for the Health and Social Care Partnership to engage, in partnership with the Council, with Hub North to develop a strategic business case in relation to the provision of services for older adults and other vulnerable people across Argyll and Bute.

 

l)      Approves the revenue estimates for 2023/24 and that consequently the local tax requirement estimated at £59.277m is funded from Council Tax; approves the following rates and charges for the year 2023/24:

i)              Council Tax to be paid in respect of a chargeable dwelling in Band D of £1,479.20 representing a 5% increase.

ii)             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.

iii)            Business Rates as determined by Scottish Ministers.

        

m)  Approves the Corporate Asset Management Strategy and Plan including the Asset Group Summaries.

 

Appendix 1 – Administration Budget Model Reconciliation 

 

(A) Revenue Budget

 

	2023/24 £000	2024/25 £000	2025/26 £000	2026/27 £000	2027/28 £000
Budget Surplus/(Gap) as Per Budget Pack	0	(7,970)	(14,490)	(21,946)	(28,391)
Council Tax Increase to 5%	376	393	405	417	429
Policy Savings Rejected :
CSS2324-001 Customer Engagement Team	-191	-318	-318	-318	-318
EDU2324-003 Funding to support parent and toddler groups	-86	-86	-86	-86	-86
RIS2324-001 School Crossing Patrollers – removal of full saving	-88	-151	-151	-151	-151
RIS2324-001 School Crossing Patrollers – accept saving of vacant posts over 1 year	60	60	60	60	60
DEG2324-002 Discretionary Budget Contribution to Argyll and the Isles Countryside Trust	(14.5)	(14.5)	(14.5)	(14.5)	(14.5)
Freezing of Argyll and Bute Council operated ferry fares for 1 year	(38)	(38)	(38)	(38)	(38)
Transfer surplus to Unallocated General Fund	(18.5)
Revised Budget Surplus/(Gap)	0	(8,124.5)	(14,632.5)	(22,076.5)	(28,509.5)

 

 

(B) Capital Budget 2023/24

 

 

	Capital Plan £000	Unallocated General Fund
As Per Budget Pack	(725)	8,109
Capital Plan Gap Funded from Unallocated General Fund	725	(725)
Footpath Improvements		(750)
ICT Computer Replacements		(531)
Roads Reconstruction 2023/24		(3,797)
Roads Reconstruction 2024/25		(1,042)
Charts		(75)
Mid Argyll Community Pool		(30)
MacTaggart Leisure, Islay		(30)
HSCP for Strategic Business Case		(100)
Transfer from Revenue Budget		18.5
Adjustment to 2% Contingency following Budget Decisions		(7)
Revised	0	1,040.5

 

Moved by Councillor Robin Currie, seconded by Councillor Gary Mulvaney.

 

Amendment

 

Argyll and Bute Council:

 

1)    Approves the revenue budget for 2023/24 as set out in the Revenue Budget Overview Report and subject to the decisions outlined below and set out in Appendix 1 below.

 

2)    Approves a base allocation to the Health and Social Care Partnership of £76.253m for 2023/24. Approves indicative base allocations for 2024/25 and 2025/26 to be £76.253m. 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.

 

3)     Approves the deferred 3% reduction to the Live Argyll Management Fee from 2022-23 and a 3% reduction in 2023-2024, resulting in a management fee in 2023-24 of £3.835m.

 

4)    a) Rejects the following savings options totalling £ 0.416m

 

 

CSS2324- 001- Minimising Face to Face Customer Service Delivery

Officers are instructed to prepare a report to the Policy and Resources Committee outlining how this service can be further developed to provide more local support to all our services.

EDU2324- 002 - Removal of non-statutory Cultural Co-ordinator post

DEG2324-002 - Reduce discretionary budget to minimum.

EDU2324-003 - Remove funding to support parent and toddler groups and other non-statutory third sector.

RIS2324-001 - School crossing patrollers.

 

 

b) Accepts all other policy savings options proposals, set out in Appendix 6 of the Revenue Budget Overview report, totalling £6.048m

c) Endorses the management/operational savings, set out in Appendix 5 of the Revenue Budget Overview report, totalling £2.962m

 

 

5) Agrees the following additional investments, as set out in the table below and also in the Budget Model at Appendix 1:

 

 

Cost of living Crisis support   £0.465m
£0.050m	Argyll and Bute Citizens Advice Bureau	In recognition of the substantial increase in demand during the current Cost of living Crisis	One off	Recovery and Renewal  Fund
£0.050m	Bute Advice Centre	In recognition of the substantial increase in demand during the current Cost of living Crisis	One off	Recovery and Renewal  Fund
£0.050m	Alienergy	In recognition of the substantial increase in demand during the current Cost of living Crisis	One off	Recovery and Renewal  Fund
£0.050m	Rape Crisis Centre Argyll and Bute	To enable the centre to continue to provide much needed support against a background of rising running costs.	One off	Recovery and Renewal  Fund
£0.185m	Continuation  of Free School Meals Additional allowance	Providing additional funding to extend the Free School Meal Additional allowance scheme.	One off	Recovery and Renewal  Fund
£0.080m	Cost of Living Contingency Fund	Each Area Committee to be allocated £20k To provide emergency support to Food banks and warm space providers experiencing financial difficulties.	One off	Recovery and Renewal  Fund

 

 

 

 

6) Approves the following in relation to fees and charges with effect from 1st April 2023 unless otherwise noted:

a) Approve the proposals for the fees and charges inflationary increase of 6% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.838m in total.

b) Approve the changes proposed to the Social Work fees and charges.

c) Approve all other charges as noted within the Fees and Charges Schedule.

 

7) Notes the financial risks analysis.

 

8) Approves the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £5.265m and note the report on reserves and balances.

 

9) Approves the revenue estimates for 2023/24 and that consequently the local tax requirement estimated at £59.277m is funded from Council Tax. Approve the following rates and charges for the year, 2023/24:

a) Council Tax to be paid in respect of a chargeable dwelling in Band “D” of £1,479.20, representing a 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  

 

10) Approves the capital plan as set out in Appendix 3 of the capital plan summary report, and agrees to fund the £0.725m gap from the Unallocated General Fund.

11) Approves the Corporate Asset Management Strategy.

12) Notes the Corporate Asset Management plan and the Asset Group Summaries. 

13) Notes that the Unallocated General Fund Balance is after proposals contained in this budget is £2.394m.

 

14) Service Concessions

a) Notes that the view of the Section 95 Officer is that the revised accounting approach is

affordable, sustainable and prudent.

b) Approve the accounting change as outlined within the report noting the principal repayment period will now be 60 years which better reflects the life of the asset

c) Note that this accounting change will create a one-off retrospective benefit of £36.038m.

d) Agree that £5.4m of the one – off retrospective benefit will be used to replace exercising the principal repayment holiday that was previously agreed by Council.

e) The remaining one –off retrospective benefit generated from the accounting change will be used as outlined below –

 

The balance remaining of £3,056 to be held in the General Fund to assist with future budget pressures

 

 

Appendix 1

Revenue

	23/24 £000	24/25 £000	25/26 £000	26/27 £000	28/29 £000
Budget Surplus / (Gap) as per Budget Pack	0	-7,970	-14,490	-21,946	-28,391
CSS2324-001	-191	-318	-318	-318	-318
EDU2324-002	-15	-15	-15	-15	-15
DEG2324-002	-36	-36	-36	-36	-36
EDU2324-003	-86	-86	-86	-86	-86
RIS2324-001	-88	-151	-151	-151	-151
Increase in CT from 4.33% to 5%	376	393	405	417	429
Funding for Warden in MAKI	-50	-50	-50	-50	-50
Transfer from Unallocated General Fund and Recovery and Renewal Fund	90
Revised	0	-8,233	-14,439	-22,185	28,618

 

 

Unallocated General Fund

 

	£000
Unallocated General Fund as per Budget Pack	8,109
Roads	-4,551
Jet Patcher	-250
Flashing Road Signage	-50
HSCP Business Case	-100
Capital Plan Gap	-725
To Balance Budget 2023-24	-30
Keep 2% Contingency Adjustment	-9
Revised	2,394

 

 

Capital Plan Gap

Capital Plan Gap as per Budget Pack	-725
From Unallocated General Fund	725
Revised	0

 

Recovery and Renewal Fund

	£000
Recovery and Renewal Fund as per Budget Pack	1,360
Argyll and Bute Citizens Advice	-50
Alienergy	-50
Argyll and Bute Rape Crisis	-50
Bute Advice Centre	-50
Continuation of Additional Free School Meals support	-185
Cost of Living Contingency Fund	-80
Climate Change	-500
Kilmory Renewables	-100
CHArts	-75
MACPool	-30
Islay Pool	-30
Business Hub	-100
Transferred to Revenue Budget  2023- 24	-60
Revised	0

 

Service Concessions Benefit

	£000
Service Concessions Benefit	36,038
Principal Repayment Holiday	-  5,400
Learning Estate Investment Programme	-8,000
Biodegradable Waste Ban 2025	-3,450
Inflationary Increases ( Capital Projects )	-4,000
Spend to Save Projects	-6,000
Rothesay Pavilion ( Wind and Watertight )	-6,132
Revised –Balance to be held in General Fund to assist with future budget pressures	3,056

 

 

Moved by Councillor Jim Lynch, seconded by Councillor Dougie Philand.

 

The Provost requested the Section 95 Officer to confirm that the Motion and Amendment before the Council, containing budget proposals were competent and balanced.  The Section 95 Officer confirmed this was the case.

 

As the meeting was being held on a hybrid basis, the vote required to be taken by calling the Roll and Members voted as follows –

 

Motion                                                            Amendment                                       No Vote   

 

Councillor Garret Corner                                Councillor John Armour

Councillor Maurice Corry                               Councillor Gordon Blair

Councillor Robin Currie                                  Councillor Jan Brown

Councillor Kieron Green                                 Councillor Math Campbell Sturgess

Councillor Amanda Hampsey                        Councillor Audrey Forrest

Councillor Daniel Hampsey                            Councillor Fiona Howard

Councillor Graham Hardie                              Councillor Willie Hume

Councillor Andrew Kain                                  Councillor Mark Irvine

Councillor Paul Donald Kennedy                    Councillor Donal Kelly

Councillor Liz McCabe                                   Councillor Reeni Kennedy-Boyle

Councillor Yvonne McNeilly                           Councillor Jim Lynch

Councillor Ross Moreland                              Councillor Luna Martin

Councillor Gary Mulvaney                              Councillor Tommy MacPherson

Councillor Gemma Penfold                            Councillor Ian James McQuire

Councillor Alastair Redman                            Councillor Dougie McFadzean

Councillor William Sinclair                              Councillor Iain Shonny Paterson

Councillor Andrew Vennard                            Councillor Dougie Philand

Councillor Peter Wallace

 

Decision

 

The Motion was carried by 18 votes to 17 and the Council resolved accordingly.

 

(Reference: Budgeting Pack 2023/24 dated 16 February 2023, submitted; Motion by Councillor Robin Currie, seconded by Councillor Gary Mulvaney, tabled; and Amendment by Councillor Jim Lynch, seconded by Councillor Dougie Philand, tabled)