Issue - decisions

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 2022 which had been referred without recommendation by the Policy and Resources Committee held on 18 February 2021.

 

The Council resolved in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 to exclude the press and public to allow consideration of Appendix 9 to item 2(d) and Appendix 4 to item 3(a) of the Budgeting Pack 2021/22 on the grounds that they were likely to involve the disclosure of exempt information as defined in Paragraphs 6; and 8 & 9 respectively of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973.

 

Motion

 

In relation to Appendix 4 to item 3(a) of the Budgeting Pack 2021/22 -

 

Argyll & Bute Council notes with concern the contents of the report and agrees to pause this project until such time as officers have consulted / negotiated with current funding partners on the implications of cancelling this project so that any additional costs that the Council may face with regards to having to repay funding in part or full can be identified.

 

A further report should be brought to a future meeting of the Council with an update provided by officers on the consultation / negotiations with current funding partners so that the Council can then take an informed decision of this project. 

 

Moved Councillor George Freeman, seconded Councillor Dougie Philand.

 

Amendment

 

That the Council considers this matter as part of the Budgeting Pack 2021/22.

 

Moved Councillor Gary Mulvaney, seconded Councillor Robin Currie.

 

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

 

Motion                                                Amendment  

Councillor George Freeman               Councillor Jim Anderson

Councillor Dougie Philand                  Councillor John Armour

                                                            Councillor Gordon Blair

                                                            Councillor Rory Colville

                                                            Councillor Robin Currie

                                                            Councillor Mary Jean Devon

                                                            Councillor Lorna Douglas

                                                            Councillor Jim Findlay

                                                            Councillor Audrey Forrest

                                                            Councillor Bobby Good

                                                            Councillor Kieron Green

                                                            Councillor Graham Hardie

                                                            Councillor Anne Horn

                                                            Councillor David Kinniburgh

                                                            Councillor Jim Lynch

                                                            Councillor Donnie MacMillan

                                                            Councillor Roddy McCuish

                                                            Councillor Julie McKenzie

                                                            Councillor Yvonne McNeilly

                                                            Councillor Jean Moffat

                                                            Councillor Barbara Morgan

                                                            Councillor Aileen Morton

                                                            Councillor Gary Mulvaney

                                                            Councillor Iain Shonny Paterson

                                                            Councillor Alastair Redman

                                                            Councillor Alan Reid

                                                            Councillor Elaine Robertson

                                                            Councillor Sandy Taylor

                                                            Councillor Richard Trail

                                                            Councillor Andrew Vennard

 

Decision

 

The Amendment was carried by 30 votes to 2 and the Council resolved accordingly.

 

The Press and Public were invited to re-join the meeting.

 

Councillor George Freeman left the meeting at this point.

 

Motion

 

Argyll and Bute Council:

1) Acknowledges and welcomes the contributions from our communities to the Council’s budget planning consultation, noting that after taking into account feedback from the public, a number of savings proposals under consideration were not pursued. 

2) Approves all service plans, subject to updating the budget figures in line with the budget agreed for 2021-22.

3) Approves the revenue estimates for 2021-22 and that consequently the local tax requirement estimated at £52.859m is funded from Council Tax. Approve the following rates and charges for the year, 2021-22:

a) Council Tax to be paid in respect of a chargeable dwelling in Band “D” of £1,367.73 representing a 0.00% 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.

4) Approves the revenue budget for 2021-22 as set out in the Revenue Budget Overview Report and subject to the decisions outlined below and set out in the Administration’s Budget Model provided at Appendix 1. 

5) Approves a base allocation to the Health and Social Care Partnership of £62.211m for 2021-22. Approve indicative base allocations for 2022-23 and 2023-24 to be £62.211m. 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.

6) With reference to the HSCP request for a deferral of £1m of the £1.2m that is due to be paid in 2021-22, agrees this in principle, subject to the proviso that the amount to be deferred be reduced by the amount of any HSCP underspend in 2020-21.

7) Approves the 10% reduction to the Live Argyll Management Fee, resulting in a management fee in 2021-22 of £3.418m.  

8)

a) Rejects the following policy savings options totalling £135,000:

·         R&I 02 – flower bed planting- £30,000

·         R&I 13 – grass cutting service specification - £100,000

·         R&I 14 – fuel and utility sales - £5,000

b) Accepts all other policy savings options proposals (set out in Appendix 6 of the Revenue Budget Overview report) totalling £557,500. 

c) Endorses the management/operational savings outlined in Appendix 5 of the Revenue Budget Overview report. 

9) Agrees a total of £6.784m investments in Argyll and Bute’s future, as set out in the Administration Budget Model in Appendix 1:

 

10) Agrees total funding of £90,000 for Strategic Events and Festivals for 2022/23, in order that the application process can commence during 2021/22, and to be augmented by any underspend remaining from the current financial year.

11) Approves that the surplus on the revenue budget is used to contribute towards the funding gap identified within the current capital plan.

12) Approves that the Council exercises the principal repayment holiday flexibility to make £5.4m available to be directed towards Covid revenue and capital costs but that the use of this flexibility be replaced by the credit arrangements financial flexibility if the Scottish Government give permission for the repayment arrangements to be made on an annuity basis. If this is the case a report will be brought back to the full Council for determination.

13) Notes that the Council expects to receive £4.609m from the £259m non-recurring funding set aside by the Scottish Government for Covid-related expenditure. Notes that the Council also expects to receive £4.923m from the £275m non-recurring funding announced on 16^th February and to be paid in 2020/21 and approves that this funding is earmarked at the end of 2020/21 to be fully used as part of the 2021/22 budget decisions. Further notes that the distribution of both funding streams has still to be confirmed.

14) Approves expenditure in relation to Covid, in addition to the investments outlined at 9), above, as follows:

a) Estimated Revenue Cost Pressures amounting to £5.101m as outlined in Appendix 8 to the Revenue Budget Overview Report

b) Capital Contract Cost Pressures amounting to £2.0m as outlined in the capital plan summary report.

c) Provision for Covid cost pressures beyond 2021-22 amounting to £2.5m.

d) Provision of £2.5m for capital contract increases as a result of Covid.

15) Approves the following in relation to fees and charges with effect from 1^st April 2021 unless otherwise noted:

a) Approve the proposals for the fees and charges inflationary increase of 3% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.334m 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 and the revised Private Landlord Registration fees as noted within the Supplementary Pack.

16) Agrees to the recommendations set out within paragraph 2.2 of appendix 9 to the revenue budget overview report (page 161 to 162 of the Budget Pack) and noted below:

a) Approve a six-month extension to KRL’s contract at a value of £114,000 with the recycling service in Kintyre being brought back in-house on 1^st October 2021;

b) Approve an increase to the base budget in 2021/22 of £73,837 and approve one-off costs of up to £208,000 in respect of the purchase of blue wheelie bins and TUPE costs.

c) Approve an increase to the recurring base budget from 2022/23 of £75,837.

17) Notes the financial risks analysis.

18) Approves the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £5.032m and note the report on reserves and balances.

19) Notes that through the EQSEIA process, we have paid due regard to our duties under the Equality Act 2010, our associated Fairer Scotland Duty and the Islands Act. Notes that some of the savings proposals have an impact in some of areas, but this has been given due regard. There are no impacts identified through the EQSEIA process that show actual or potential unlawful discrimination.

20) Approves the capital plan as set out in Appendix 3 of the Capital Plan Summary Report and updated to reflect the provisions made in the Administration Budget Model at Appendix 1, and approves that the gap of £1.077m is funded from additional borrowing, with repayments commencing in 2022/23

21) Agrees to the recommendations set out within paragraphs 2.1 to 2.2, including sub-paragraphs, of appendix 4 to the capital plan summary report, to provide funding to support completion of outstanding works in relation to Rothesay Pavilion.

22) Approves the Corporate Asset Management Strategy.

23) Notes the Corporate Asset Management Plan and the Asset Group Summaries.

Appendix 1

Revenue Model

	21/22 £000	22/23 £000	23/24 £000	24/25 £000	25/26 £000
Budget Surplus/(Gap) as per Budget Pack	3,080	(1,838)	(6,928)	(11,589)	(16,607)
Policy Options Rejected:
R&I02 Stop provision of plant beds	(30)	(30)	(30)	(30)	(30)
R&I13 Reduce specification of grass cutting	(100)	(100)	(100)	(100)	(100)
R&I14 Fuel and Utility Sales	(5)	(5)	(5)	(5)	(5)
AITC – funding for 1 Year from General Fund Balance	30	30	30	0	0
Additional Loans Fund to Pay for Additional Borrowing to fund Capital Plan		(70)	(70)	(70)	(70)
Transfer to Capital Plan	(2,975)	0	0	0	0
Revised Budget Surplus/(Gap)	0	(2,013)	(7,103)	(11,794)	(16,812)

 

Use of COVID Funding       

	£000	£000
COVID Expenditure:
2021-22 Identified Cost Pressures	(5,101)
2021-22 Identified Capital Cost Pressures	(2,000)
Provision for COVID Cost Pressures beyond 2021-22	(2,500)
Provision for Capital Contract increases as a result of COVID	(2,500)
Staycation	(800)
Tackling Digital Exclusion Top-Up Fund	(250)
Welfare Rights Support	(172)
Education to Support Young People	(600)
CHARTS	(67)
AITC	(30)
Festive Parking	(20)
Recovery, Regeneration and Renewal Fund	(892)
		14,932
COVID Funding:
Estimated Share of £259m funding announced on 25 January 2021	4,609
Estimated Share of £275 funding announced on 16 February 2021	4,923
Loans Fund Principal Repayment Holiday	5,400
		14,932
COVID Funding Surplus/(Gap)		0

Capital Plan Model

	£000	£000
Gap on Capital Plan prior to red risk and cost pressures		(6,262)
Red Risks	(72)
Significant Strategic Change Fund cost pressures	(1,162)
		(1,234)
Revised Gap on Capital Plan after red risks and cost pressures		(7,496)
Additional Expenditure:
Investment in Climate Change Measures	(600)
Investment in Roads	(2,613)
Investment in Active Travel	(500)
		(3,713)
Additional Funding:
Transfer from remaining balance in Significant Change Fund Earmarking	2,157
Transfer from COVID funding	2,000
Transfer from Unallocated General Fund	3,000
Transferred from Revenue Surplus in 2021-22	2,975
Funded via Additional Borrowing	1,077
		11,209
Revised Capital Plan Surplus/(Gap)		0

 

Unallocated General Fund Balance

	£000	£000
Estimated Unallocated General Fund Balance as per Budget Pack as at 31 March 2021		3,669
Adjustment to ensure contingency amount remains at 2%	(2)
Implementation of Gaelic Language Plan	(30)
Rural Growth Deal Programme Office	(210)
Transfer to Capital Plan	(3,000)
		(3,242)
Estimated Revised Unallocated General Fund Balance as at 31 March 2021 (prior to Social Work advanced repayment)		427
HSCP Advance Repayment anticipated in 2020-21		1,000
Estimated Revised Unallocated General Fund Balance as at 31 March 2021 (after Social Work advanced repayment)		1,427

 

Moved Councillor Robin Currie, seconded Councillor Gary Mulvaney.

 

Amendment

 

The Council …

 

1. Notes the findings of the Council’s Budget Planning consultation, having regard to the valued contribution of the citizens and organisations who took the time to share their views with the Council. 

 

2. Approves all service plans, subject to updating of the budget figures in line with the budget agreed for 2021-22.

 

3. Notes that through the EQSEIA process, we have paid due regard to our duties under the Equality Act 2010, our associated Fairer Scotland Duty and the Islands Act. Note that some of the savings proposals have an impact in some of areas, but this has been given due regard. There are no impacts identified through the EQSEIA process that show actual or potential unlawful discrimination.

 

4. Approves the revenue estimates for 2021-22 and that consequently the local tax requirement estimated at £52.859m is funded from Council Tax.

 

5. Approves the following rates and charges for the year, 2021-22:

 

i.          Council Tax to be paid in respect of a chargeable dwelling in Band “D” of  £1,367.73 representing a 0.00% 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.  

Revenue Expenditure

 

6. Adopts as a base budget the revenue budget for 2021-22 as set out in the revenue budget overview report, subject to the following changes:

 

7. Approves the policy savings options as outlined in Appendix 6 of the revenue budget overview report, subject to the following amendments:

 

Policy Savings		£000
R&I 02	Stop floral bed planting	30
R&I 13	Reduce grass cutting	100
ED 05	Review and reduce Clerical Support entitlement	76
Rejected Savings Options		206

 

8. Awards a 2 year contract to KRL, as an alternative to bringing the service in-house, at a cost of £228,000 in 2021-22 and £220,000 in 2022-23, at a saving of £210.5k in 2021-22 and £15k in 2022-23 to those figures outlined within the budget pack.

 

9. Approves a base allocation to the Health and Social Care Partnership of £62.211m for 2021-22. Approve indicative allocations base for 2022-23 and 2023-24 to be £62.211m. 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.

 

10. Within reference to the HSCP request for a deferral of £1m of the £1.2m that is due to be paid in 2021-22, agrees this in principle, subject to the proviso that the amount to be deferred be reduced by the amount of any HSCP underspend in 2020-21.

 

11. Approves the 10% reduction to the Live Argyll Management Fee, resulting in a management fee in 2021-22 of £3.418m.

 

12. Approves funding of £0.030m per annum for AITC for a three year period (2021-22 to 2023-24) to support core costs.

 

13. Approves that the surplus on the revenue budget is used to contribute towards the funding gap identified within the current capital plan.

 

14. Approves that the Council exercises the principal repayment holiday flexibility to make £5.4m available to be directed towards COVID revenue and capital costs but that the use of this flexibility be replaced by the credit arrangements financial flexibility if the Scottish Government give permission for the repayment arrangements to be made on an annuity basis. If this is the case a report will be brought back to the next available Council meeting.

 

15. Notes that the Council expect to receive £4.609m from the £259m non-recurring funding set aside by Scottish Government for COVID related expenditure. Note that the Council also expect to receive £4.923m from the £275m non-recurring funding announced on 16 February and to be paid in 2020-21 and approve that this funding is earmarked at the end of 2020-21 to be fully used as part of the 2021-22 budget decisions. Further note that the distribution on both funding streams has still to be confirmed.

 

16. Approves expenditure in relation to COVID as follows:

 

i.              Estimated revenue cost pressures amounting to £5.101m as outlined in Appendix 8 to the revenue budget overview report

ii.             Capital contract cost pressures amounting to £2.0m as outlined in the capital plan summary report.

iii.            Provision for COVID cost pressures beyond 2021-22 amounting to £2.5m.

iv.           Provision of £2.5m for capital contract increases as a result of COVID.

v.            Creation of a 2 year COVID Resilience Development Programme of £1.368m which makes provision for the recruitment of additional Council staff resources, funding support for communities and local advice agencies as described below, subject to reports from Officers to Committee as necessary:

	21-21	22-23
Local Business Support	50	50	Additional staff for Business Gateway
Business Development	56	56	Additional staff for Economic Development
Town Centre Improvement	100	100	Additional funding for town centre improvements
Strategic Events and Festivals	100	100	Additional funding for events and festivals
Procurement	56	56	Additional staff for Procurement team
Supporting Communities Fund	100	100	Additional funding for community groups
Welfare Benefits	38	38	Additional staff for A&BC Welfare Rights
Debt, Money, Energy Advice	80	80	Funding in support of local advice agencies
Pupil Counselling Services	104	104	Additional staff for Pupil Counselling (Primary)
Total	684	684
	1368

 

  These individual expenditure commitments being subject to review in the event of the receipt of Scottish Government monies targeted for the same purposes.

 

vi.        Agree the development of a network of basic servicing points across Argyll and Bute at an indicated cost of £120k, subject to a report from Officers which has regard to the findings of the Council’s Motorhome Consultation, potential locations and sites for these service points and the use of Council facilities which might be adapted for these purposes.

 

vii.             Agree to the funding request from CHARTS for support funding of £66.7k in 2021-22.

 

viii.            Agrees the creation of a Recovery and Renewal Fund of £2.644m, with officers to bring forward proposals to Council together with business cases, as appropriate.

 

17. Approve the following in relation to fees and charges with effect from 1 April 2021 unless otherwise noted:

i.              Approve the proposals for the fees and charges inflationary increase of 3% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.334m in total.

ii.             Approve the changes proposed to the Social Work fees and charges. Approve all other charges as noted within the Fees and Charges Schedule and the revised private landlord registration fees as noted within the supplementary pack

 

18. Note the financial risks analysis.

 

19. Approve the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £5.030m and note the report on reserves and balances.

 

20. Approve the capital plan as set out in Appendix 3 of the capital plan summary report and amended by this proposals and outline in the appendix, and approve that the gap of £254.5k is funded from the Unallocated General Fund. 

 

21. Agree to the recommendations set out within paragraphs 2.1 to 2.2 including sub-paragraphs of appendix 4 to the capital plan summary report.

 

22. Approve the Corporate Asset Management Strategy.

 

23. Note the Corporate Asset Management Plan and the Asset Group Summaries.

 

Appendix

Revenue

	£000	£000
Revenue Budget Overview 2021-22 Surplus		3,080
Adjust to reflect rejected savings:
R&I02 Stop floral bed planting	(30)
R&I13 Reduce grass cutting	(100)
ED05 Review and reduce Clerical Support entitlement	(76)
		(206)
Agree KRL Contract – saving on budget pack figures		210.5
Adjusted Revenue Budget Surplus		3,084.5
Transfer to Capital Plan		(3,084.5)
Final Adjusted Revenue Budget Surplus		0

 

COVID Focus

	£000	£000
COVID Expenditure:
2021-22 Identified Cost Pressures	(5,101)
2021-22 Identified Capital Cost Pressures	(2,000)
Provision for COVID Cost Pressures beyond 2021-22	(2,500)
Provision for Capital Contract increases as a result of COVID	(2,500)
Motorhome etc. Infrastructure	(120)
CHARTS	(66.7)
2021-23 COVID Resilience Development Programme	(1,368)
Recovery and Renewal Fund	(2,644.3)
		16,300
COVID Funding:
Estimated Share of £259m funding announced on 25 January 2021	4,609
Estimated Share of £275 funding announced on 16 February 2021	4,923
Loans Fund Principal Repayment Holiday	5,400
Transfer from Unallocated General Fund	1,368
		16,300
COVID Funding Surplus/(Gap)		0

 

Capital Plan 2021-24

	£000	£000
Gap on Capital Plan prior to red risks and cost pressures as per budget pack		(6,262)
Red Risks Identified	(72)
Significant Strategic Change Projects cost pressure	(1,162)
		(1,234)
Revised Gap on Capital Plan after red risks and cost pressures as per budget pack		(7,496)
Additional Funding:
2021-22 Capital Cost Pressure funded from COVID	2,000
Significant Strategic Change Fund from Reserves	2,157
Transfer from Revenue Budget Surplus	3,084.5
Transfer from Unallocated General Fund	254.5
		7,496
Revised Capital Plan Surplus/(Gap)		0

 

Reserves and Balances

	£000	£000
Unallocated General Fund Balance as per budget pack		3,669
Transfer to COVID Focus for 2021-23 COVID Resilience Development Programme	(1,368)
Transfer to Capital Programme to fund the remaining gap	(254.5)
		(1,622.5)
Revised Unallocated General Fund Balance		2,046.5

 

Moved Councillor Sandy Taylor, seconded Councillor Lorna Douglas.

 

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 virtual basis the vote required to be taken by calling the Roll and Members voted as follows –

 

Motion                                                            Amendment

Councillor Jim Anderson                                Councillor John Armour

Councillor Rory Colville                                  Councillor Gordon Blair

Councillor Robin Currie                                  Councillor Lorna Douglas

Councillor Mary Jean Devon                          Councillor Jim Findlay

Councillor Bobby Good                                  Councillor Audrey Forrest

Councillor Kieron Green                                 Councillor Anne Horn

Councillor Graham Archibald Hardie             Councillor Jim Lynch

Councillor David Kinniburgh                           Councillor Julie McKenzie

Councillor Donnie MacMillan                          Councillor Jean Moffat

Councillor Roddy McCuish                             Councillor Iain Shonny Paterson

Councillor Sir Jamie McGrigor                       Councillor Dougie Philand

Councillor Yvonne McNeilly                           Councillor Sandy Taylor

Councillor Barbara Morgan                            Councillor Richard Trail

Councillor Aileen Morton

Councillor Gary Mulvaney

Councillor Alastair Redman

Councillor Alan Reid

Councillor Elaine Robertson

Councillor Andrew Vennard

 

Decision

 

The Motion was carried by 19 votes to 13 and the Council resolved accordingly.

 

(Reference:  Budgeting Pack 2021/22 dated 18 February 2021 and Supplementary Packs 1, 2 and 3; submitted)

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

ED03	Educational Psychology Services	£78k
ED14	Swimming Pool Subsidies	£19.3k
ED20	Pupil Support Assistants	£198.5k
L&R03	Advice Services Staff	£18.1k
RAIS02	School Crossing Patrollers	£113k
RAIS04	Parking Charges	£138k

 

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

ED21	(a) Third Sector Grant – rejects removal but reduces funding to £75k in 2020/21 and to £50k from 2021/22 onwards. (b) Early Years staffing review accepted	£75k
RAIS09	(1) Accepts proposals for charging. (2) Rejects closure of low use facilities but agrees that those 10 public conveniences are promoted for community transfer, lease or sale	£4K

 

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:

£500k	Roads maintenance and climate change mitigation works	Additional funds to be spent across 20/21 and 21/22 to mitigate the impacts of weather related damage and climate change with specific emphasis on gully cleaning and drainage improvements. A report to be brought back to September EDI committee
£400k	Green transport	Additional funds to be spent across 20/21 and 21/22, investment in footway and cycle path maintenance supporting the healthy wellbeing and green agenda
£400k	Education – digital learning	Additional funds to be spent across 20/21 and 21/22, as part of the ongoing transformation work in the Education service, focussing on digital and virtual learning technology and the development of learning clusters
£50k	Shared Transport	Additional funds available in 20/21 to explore the redesign of public and school transport and the introduction of shared transport, engaging with communities so that services better match their needs and reduce carbon emissions
£2,400k	Roads Capital	Additional funds of £700k available in 20/21 and £1.7m in 21/22 to support investment in our roads, crucial to community wellbeing and economic growth.
£500k	Property Capital	Additional funds available in 21/22 to support shift from fossil fuels to clean energy alternatives across our offices and schools.

 

 

3. Notes the Administration’s Revenue Budget model detailed below:

	20/21 £000	21/22 £000	22/23 £000
Budget Surplus/(Gap) as per Budget Pack	1,570	(6,671)	(14,590)
Additional funding announcement 26/02/20	1,701	1,701	1,701
Policy Options Rejected in Full
ED03 Educational Psychology	(78)	(125)	(125)
ED14 Swimming Pool Subsidies	(19)	(19)	(19)
ED20 Pupil Support Assistants	(199)	(318)	(318)
L&R03 Advice Services Staff	(18)	(18)	(18)
RAIS02 School Crossing Patrollers	(113)	(151)	(151)
RAIS04 Parking Charges	(138)	(138)	(138)
Policy Options Rejected in Part
ED21 Third Sector Grant/Early Years Staffing	(75)	(50)	(50)
RAIS09 Public Conveniences	(4)	(8)	(8)
Investment in Services (Revenue)
Education – technology to support remote learning	(400)
Shared transport – community engagement	(50)
Roads – climate change mitigation and maintenance	(500)
**Green transport – cycle path and footpaths	(400)
Investment in Services (Transferred to Capital)
**Roads capital	(2,400)
**Property capital	(500)
Council Tax at 4.5% for 2020/21	759	783	809
Transfer from One-off re-profiling gain arising from Loans Fund	600
Transfer from General Fund Reserve to support Roads capital investment	264
Revised Budget Surplus/(Gap)	0	(5,014)	(12,907)

** These items to be re-considered by Council in April if the additional funding announced on 26/02/20 is not subsequently confirmed

 

4. Accepts officer recommendations in relation to the one-off reprofiling gain arising from the Loans Fund Review, noting that as a result of policy options decisions above the provision for redundancies in 20/21 will reduce to £600k and note that this difference of £600k is referenced in the table above. 

 

5. In relation to external funding requests received agrees the following sums to be allocated on a one-off basis from the Unallocated General Fund Reserve:

Argyll and the Isles Tourism Co-operative	£30k grant funding for 20/21
Kintyre Recycling Ltd	£66k uplift in contract value for 20/21
Fyne Futures	£60k uplift in contract value for 20/21
Rothesay Pavilion Charity	£750k additional revenue support to cover 20/21 and 21/22; subject to conditions which seek to minimise the risk to the Council as far as is reasonably practicable including requirement for adequate business and financial management and regular reporting by RPC.

 

6. Approves the following relation to fees and charges with effect from 1^st April 2020 unless otherwise noted:

a)     Approve the proposals for the fees and charges inflationary increase of 3% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.309m 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; d)     Note that officers are exploring moving to an annual flat fee model for CalMac ferry vessels berthing at Craignure Pier and agree that any revision to how the charge is levied is delegated to the Council’s Executive Directors as long as this is of no financial detriment to the Council; e)     Note that officers are reviewing the charge for Export Certificates with a view to introducing a change to the small quantities level and further note that any proposal in relation to this would be reported to the Environment, Development and Infrastructure Committee in the first instance.

f)       Reflecting Transport Scotland advice, agrees that a charging regime should be developed for all Electric Vehicle Charging Points with charging for 2020/21 to be on the basis of electricity consumption cost recovery and a report on the long-term approach to come to the September 2020 meeting of the Environment, Development and Infrastructure Committee.

 

7. Approves the Corporate Asset Management Strategy and the Capital Plan as set out in Appendix 3 of the Capital Plan Summary and amended by the Administration Budget Model at point 3 and the Capital amounts included within the use of one-off gain from the Loans Fund Review; notes the Corporate Asset Management Plan and the Asset Group Summaries; given the scale of risk to capital programme funding in future years, requests that officers provide an overview report to the Policy and Resources Committee meeting in May 2020.

 

8. Notes the report on reserves and balances; approves the contingency level for the General Fund Balance at a level of 2% of net expenditure; approves the adjustments to the unallocated General Fund balance as outlined in the table below, and notes that this will leave an estimated remaining unallocated General Fund balance of £388k at the year end:

 

Unallocated General Fund Balance	£000
Estimated unallocated General Fund Balance as per budget pack at 31st March 2020	1,598
Budget motion:
AITC	(30)
Kintyre Recycling Ltd	(66)
Fyne Futures	(60)
Rothesay Pavilion Charity	(750)
Transferred to Administration Priorities to support Roads Capital Investment	(264)
Transfer to contingency to maintain 2% level	(40)
Revised Unallocated General Fund Balance after budget	388

 

9. Agrees that priority is given to seeking direct support from the Scottish Government to address the financial and practical challenges of switching from disposing of waste in landfill to generating energy from our waste, enabling significant reductions in our carbon emissions and compliance with the BMW ban.

 

10. Values community voices in our decision making process for the 2020/21 Budget and acknowledges the contribution of the people of Argyll and Bute who shared their views through the budget planning consultation, with thanks to all who took the time to participate.

 

11. Notes that through the Equality and Socio-Economic Impact Assessment (EqSEIA) process, we have paid due regard to our duties under the Equality Act 2010, the associated Fairer Scotland Duty and the Islands Act. Notes that some of the savings proposals have an impact in some areas, but that this has been given due regard. Following the removal of the RAIS07 savings option, there are no impacts identified through the EqSEIA process that show actual or potential discrimination.

 

12. Notes the Financial Risks Analysis.

 

13. Approves all service plans subject to updating the budget figures in line with the budget agreed for 2020/21.

 

Moved by Councillor A Morton, seconded by Councillor Mulvaney.

 

Amendment 1

The Council …   Approves the 2020-21 Revenue Budget as set out in the revenue budget overview report.   Approves all service plans for the years 2020-23, subject to amendment in line with the budget agreed for 2020-21.   Notes the findings of the Council’s budget planning consultation, having regard to the valued contribution of the citizens and organisations who took the time to share their views with the Council.   Notes that each of the proposed savings proposals have been subjected to an assessment  EQSEIA process, which has paid due regard to the Council’s duties under the Equality Act 2010, the associated Fairer Scotland Duty and the Islands Act, and notes that no impact identified through the EQSEIA process would likely result in actual or potential unlawful discrimination.   Agrees a base allocation to the Health and Social Care Partnership of £60.577m for 2020-21.   Approves the indicative allocations base for 2021-22 and 2022-23 to be £60.577m.   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.   Agrees to defer the pay-back of the 2017-18 and 18-19 Social Work overspend by the HSCP by one year, resulting in a re-profiling of repayments as set out below;           Repayment                   £000   2020-21 500   2021-22 1,200   2022-23 1,255   2023-24 1,327                                                         4,282
Agrees that in the event of the HSCP creating reserves through underspends in 2020-21 or any future years, the Council will require earlier repayment, unless otherwise determined by the Policy and Resources Committee.   Note that a report will be brought to the Policy and Resources Committee at its May 2020 meeting once the Partnership’s 2019-20 overspend position is confirmed, when the detail of how this might be considered by the Committee should the opportunity for this arise.   Approve the adjustment to the Live Argyll Management Fee, resulting in a management fee in 2020-21 of £3.788m.
Funding Resources:
Approve the revenue estimates for 2020-21 and acknowledges the Council Tax requirement estimated of £53.031m, and Agrees to 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 £1,372.18 representing a 4.84% 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.
Agrees a general 3% inflationary increase in Fees and Charges, together with a higher increase in respect of some specified services, where the increase will be higher as set out in the budget pack, including in respect of i.       Piers and Harbours; where an additional 5% over and above the general inflationary increase of 3% will be applied; the income from which will be ring-fenced to fund asset improvements. ii.      Burial, Cremation and Lair search charges; which are increased by 20%, 20% & 19% respectively   Approves the changes to Social Work fees and charges as agreed by the Integrated Joint Board at their meeting in January 2020, and   Agrees all other charges as noted within the Fees and Charges schedule set out in the Fees and Charges paper in the budget pack, and notes   i.                 those services for which no increase are proposed and those, where the charge(s) is determined by others, including the three new charges for Direct Cremations, all described in the Fees and Charges paper in the budget pack,   ii.                that Officers are exploring a move to an annual flat fee model for CalMac ferry vessels berthing at Craignure Pier and agree that any revision to how the charge is levied is delegated to the Council’s Executive Directors as long as this is of no financial detriment to the Council.                                                                                                      iii.               that officers are reviewing the charge for Export Certificates with a view to introducing a change to the small quantities level and further note that any proposal in relation to this would be reported to the Environment, Development and Infrastructure Committee in the first instance.
Notes the management/operational savings totalling £1.371m as outlined in Appendix 5 of the Revenue Budget Overview Report which were endorsed by Council in October 2019, and   endorses the ‘one-off fleet’ savings of £0.278m and loans fund savings of £2.500m.   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 meet the cost of replacement of MV Lismore.    Approves the revenue budget for 2020-21 as set out in the revenue budget             overview report.     Opposition Budget Model 2020-21
Opposition Budget Model 2020-21 Contd.   Approves the new Policy Savings options shown in Appendix 6, with the exception of the following Policy Savings options which are rejected:
	ED01 PE Facilities 73 ED03 Psychological Services 78 ED14 Swimming Pool Subsidies 19 ED19 Community Learning & Development 184 ED20 Pupil Support Assistants 199 ED21 Early Years - 3rd Sector 106 L&R O3 Advice Services 18 RAIS 02 School Crossing Patrollers 113 RAIS 04 Traffic Management 138 RAIS 09 Public Conveniences 8   Total Value   936
Notes the work done on the review of the Loans Fund to realise a £20.561m ‘one-off gain’, and   i.                 Approves a £7.649m provision for the increasing principal repayments over the next 10 years, ii.                Approves the use of the remainder of the ‘gain’ to fund known liabilities and foreseeable cost pressures, as set out hereafter:
	£000     Loans Fund Review Gain 20,561 Provision for Increased principal repayments 7,649   7,649   Revenue Pressures 0 0 Provision to Support Organisational Change 500 0 Cost of 2020-21 Redundancies 800 0 Provision for Future Redundancies 1,500 Route Optimisation 100   2,900   Capital Pressures 0 0 Funding Gap in Capital Programme 2,619 0 Capital Programme - Intolerable Red Risks!!! 574 0 Campbeltown Flood Protection Scheme 1,406 0 Significant Strategic Change  Projects 5,413 10,012 Total         20,561
Agrees the following Opposition Budget expenditure requirements   OB 01    Community Transfer Support Awards          25           OB 02    Strategic Innovation Fund       600                    Total   625                      OB 01 - Community Transfer Grants - £0.025m Makes specific provision of £25,000 in 2020-21 in respect of awards of up to £1000 to be made to community groups which assume responsibility for the upkeep of small rural public conveniences, or undertake to maintain ‘closed’ cemeteries. The scope of these awards, the definition of maintenance and related administrative arrangements to be set out in a report by Officers to the Environment, Development and Infrastructure Committee in June. (As conceived, under this arrangement this would see the Council cease all routine maintenance in disused cemeteries, and all responsibilities in relation to public conveniences.)     OB 02 - Strategic Innovation Fund - £0.60m Makes specific provision in 2020-21 in order to promote and support innovative projects consistent with the strategic priorities of the Council, including those which could demonstrate, facilitate or accelerate ‘performance improvement’.   The scope and operation of the Fund to be developed by Officers and set out in a report by Officers to the Policy and Resources Committee in May. As conceived, successful projects would address our shared ambition for our citizens and communities, on for example, but not exclusively, projects which would address i.                 Poverty    Example: action on child poverty, helping families address financial hardship, supporting breakfast clubs, alleviating fuel poverty   ii.               Climate Change Action Example: promoting active travel, car-sharing, support for community food growing, energy efficiency initiatives   iii.              Performance Improvement Example: resourcing improved performance, pursuit of innovation which will facilitate change and development towards efficient and cost effective service delivery
Agrees to extend its relationships with Kintyre Recycling Limited (KRL) and Fyne Futures to 31 March 2021, and makes a consequential provision in the Revenue Budget 2020-21; £67,000 and £61,000 respectively.   Agrees to provide £47,000 to the Argyll and Isles Tourism Co-operative, in response to their funding request for 2020-21.   Agrees to provide funding support to Rothesay Pavilion Charity up to a £0.750m in the first two years of its operation, in addition to the already agreed £0.15m annual support in years one to five.
Notes the detail which underpins the Opposition Budget model for 2020-21.   Note that the model includes £1.70m of additional revenue funding from the Scottish Government which has yet to be confirmed. Budget Pack Surplus Additional Revenue from Council Tax at 4.84% inc. Scottish Government Ferries (Capital Element) Net Resources after 'savings' measures                  £000 1,570 931 500 3,001   Scottish Government 1,700       Rejected Policy Savings -936 ‘New' Funding Requests -925   Investment & Improvement Proposals -625   Transfer to Capital (Roads) -1500   Transfer to Capital (MV Lismore) -500   Transfer to General Fund -215 Net Position   0
Notes the financial risks analysis.   In the event that the Council does not receive the additional Scottish Government funding noted at item g. above, then the Opposition budget will be reduced by £1.70m though a reduction of £0.70m from Capital commitment to Roads and the balance of £1.0m from General Fund Reserves.
Approves the contingency level for the General Fund balance at a level of 2% of the net expenditure, equivalent to £4.92m and notes the report on Reserves and Balances.
Approve the Capital Plan as set out in Appendix 3 of the capital plan summary in addition to the Capital allocation as per the budget model and Capital provisions for the one-off gains. noting that consideration needs to be given to how the capital programme will be funded in future years, should the funding settlement for 2021-22 and 2022-23 be less than estimated.
Approve the Corporate Asset Management Strategy
m.        Note the Corporate Asset Management Plan and the Asset Group Summaries.

 

Moved by Councillor Taylor, seconded by Councillor Douglas.

 

Amendment 2

 

Argyll and Bute Council notes the announcement that it is proposed that the funding for local authorities, within the Scottish Government budget, will be increased by £95 million. While this announcement is welcomed, there remains uncertainty on how this additional funding will impact on the proposed budget for Argyll and Bute Council.

 

Given this uncertainty, and the limited time that elected members have had to consider this change, the Council agrees to adjourn the Council meeting and to reconvene in one hour to allow members to give detailed consideration to the impact that the additional funding from the additional £95 million for local authorities across Scotland could/will have on the Argyll and Bute Council budget.

 

Moved by Councillor Freeman, seconded by Councillor Philand.

 

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

 

The Provost adjourned the meeting at 13.05pm and reconvened at 13.20pm.

 

The requisite number of Members required the vote to be taken by calling the roll and Members voted as follows:-

 

Motion	Amendment 1	Amendment 2
Councillor Colville	Councillor Anderson	Councillor Freeman
Councillor Currie	Councillor Armour	Councillor Philand
Councillor Devon	Councillor Blair
Councillor Good	Councillor Douglas
Councillor Green	Councillor Findlay
Councillor Hardie	Councillor Horn
Councillor Kinniburgh	Councillor Lynch
Councillor MacMillan	Councillor Moffat
Councillor Sir McGrigor	Councillor Paterson
Councillor McNeilly	Councillor Taylor
Councillor Morgan	Councillor Trail
Councillor A Morton
Councillor Mulvaney
Councillor Redman
Councillor Reid
Councillor Robertson
Councillor Scoullar
Councillor Vennard

 

Decision

 

Amendment 2 received 2 votes, Amendment 1 received 11 votes and the Motion received 18 votes and the Council resolved accordingly.

 

(Ref: Report by Acting Head of Financial Services, Revenue Budget and Capital Budget packs, updates to the Budgeting Pack from the P&R Committee of 20 February 2020, submitted)

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 2020 which had been referred without recommendation by the Policy and Resources Committee held on 14 February 2019.

 

Motion

 

The Council:

 

1.     Approves the revenue estimates for 2019/20 and that consequently the local tax requirement estimated at £50.457m is funded from Council Tax and confirms the following rates, charges and flexibility in payment terms for the year 2019/20:

a)     Council tax to be paid in respect of a chargeable dwelling in band D of £1,308.83 representing a 4.79% increase, as permitted by the Scottish Government;

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 Head of Strategic Finance’s Revenue Budget Overview report and the surplus of £1.032m in 2019/20, subject to the following amendments as set out below and reconciled in the Administration’s Revenue Budget Model at point 4; 

a)     Agrees to increase the allocation to the Health and Social Care Partnership for 2019/20 to £58.368m with indicative allocations for 2020/21 and 2021/22 to support the partnership in its long term financial management and planning, subject to the level of Scottish Government funding and the council’s overall financial position in future years, and agrees to defer the payback of the 2017/18 overspend by one year, all as detailed below:

 

	2019/20 £000	2020/21 £000	2021/22 £000
Baseline funding 2018/19	56,389	56,389	56,389
Adjust fleet capital charges	(189)	(189)	(189)
Scottish Government recommended 2.2% reduction	(1,236)	(1,236)	(1,236)
Total additional HSCP funding as per Finance Circular	2,168	2,168	2,168
Base Payment to HSCP	57,132	57,132	57,132
Additional in-year payment (rejecting recommended 2.2% reduction for 2019/20)	1,236	1,236	1,236
1% Budgetary reduction in 2020/21 and 21/22		(584)	(1,162)
Revised payment to HSCP	58,368	57,784	57,206
Less 2017/18 overspend payment	(100)	(300)	(755)
Net payment to HSCP	58,268	57,484	56,451

 

b)     Approves the adjustment to the Live Argyll management fee, resulting in a management fee of £3.692m in 2019/20; also approves the increase in the management fee for 2020/21 as previously agreed on establishment of the Trust, noting that the fee for 2021/22 will be subject to review on the basis of the Trust’s ability to grow income streams/reduce the management fee;

c)     Allocates an additional £500,000 for winter maintenance expenditure on a recurring basis and requests that officers, when reviewing the Winter Maintenance policy, explore options to increase community resilience;

d)     Approves an additional one-off funding allocation of £80,000 to the Royal National Mod from the unallocated General Fund balance which, combined with the existing base budget provision of £40,000, brings the total council contribution to £120,000; notes that the existing base budget is removed from 2020/21 onwards;

e)     Agrees a one-off funding allocation of £23,330 to Kintyre Recycling Ltd (KRL) funded from the unallocated General Fund balance;

f)       Agrees a total of £90,000 available funding for Events and Festivals in 2020/21 in order that the grants application process can commence during 2019/20;

g)     Agrees that the Supporting Communities Fund level will be £90,000 in 2020/21, allowing Area Committees to make decisions about allocations in March 2020;

h)     Approves the management and operational savings outlined in Appendix 5 of the Revenue Budget Overview Report;

i)       Accepts all policy options listed in Appendix 6 of the Head of Strategic Finance’s Revenue Budget Overview Report except those listed below, to deliver total savings of £1.419m;

·        RAS05 – Grounds and Environment

·        RAS11 – School Crossing Patrollers

·        CSS02 – Customer Service Points

 

3.     Approves the following in relation to fees and charges with effect from 1^st April 2019 unless otherwise noted:

a)   Approves the proposals for the fees and charges inflationary increase of 3%;

b)   Rejects proposed increases to on-street and off-street parking charges in 2019/20 and approves all other charges over and above inflation;

c)   Approves new charges in relation to registrars printing copy certificates, pre-application meetings and private water supplies, and agree that these charges will apply from 22^nd February 2019;

d)   Approves the new charges in relation to the proposed parking pilot for Oban, Lorn and the Isles as per the report to Policy and Resources Committee on 14^th February 2019;

e)   Approves the changes proposed to Social Work fees and charges;

f)     Approves all other charges as noted within the Fees and Charges Schedule;

g)   Notes that the income resulting from the above measures totals £0.275m.

 

4.     Approves that, after the changes as noted in points 2 and 3 above, the remaining revenue budget surplus of £0.212m is transferred to the Unallocated General Fund; all summarised in the Administration Revenue Budget model below:

 

Administration Budget Model 2019/20	2019/20 £000	2020/21 £000	2021/22 £000
Budget surplus/(gap) as per Budget Pack	1,032	(4,528)	(11,611)
Policy options not agreed:
RAS05 Grounds/Environment 10% reduction	(120)	(180)	(180)
RAS11 School Crossing Patrollers	(115)	(170)	(170)
CSS02 Customer Service Centre/Digital Service Team	(40)	(79)	(79)
Non-acceptance of fee increases for on-street and off-street car parking	(45)	(45)	(45)
Increase winter maintenance funding	(500)	(500)	(500)
Remove Mod baseline funding future years		40	40
HSCP – 1% reduction to payment in 2020/21 and 2021/22		584	1,162
Events and Festivals – reduce to £0.09m		23	23
Supporting Communities – reduce to £0.09m		8	8
Transfer surplus to Unallocated General Fund Balance	(212)
Revised Budget Surplus/(Gap)	0	(4,847)	(11,352)

 

 

5.     a) Approves the capital plan recommendations q) to v) as outlined in the Head of Strategic Finance’s Introductory Report and Recommendations;

b) Approves that the remaining capital grant in respect of Campbeltown Flood Scheme, amounting to £4.153m, is earmarked within the General Fund pending a decision on full business case expected to be submitted in late 2019;

c) Instructs officers to bring forward a Capital Strategy, including an update on emerging capital priorities, to the Policy and Resources Committee in October 2019;

 

6.     a) Notes the report on reserves and balances;

b) Approves the adjustments to the Unallocated General Fund balance as outlined in the table below, and notes that this will leave an estimated remaining unallocated General Fund balance of £1.092m at the year end;

c) Approves the contingency level for the General Fund Balance at a level of 2% of net expenditure;

 

Unallocated General Fund Balance	£000
Unallocated General Fund Balance as per budget pack	1,899
Balance no longer required	1,237
Forecast overspend as at 31st December 2018	(2,041)
Revised Unallocated General Fund Balance before budget	1,095
Budget motion:
Mod funding allocation	(80)
Kintyre Recycling Ltd	(23)
Transfer to contingency to maintain 2% level	(112)
Transferred from Revenue Budget Surplus 2019/20	212
Revised Unallocated General Fund Balance after budget	1,092

 

7.     In line with the council’s agreed priority of prudent financial management and effective planning for the longer term:

a)     Notes the estimated mid-range revenue budget gap of £11.352m by 2021/22 as outlined in the Administration Budget Model;

b)     Notes the ongoing work of the Transformation Board and instructs officers to bring forward proposals for savings options and measures to balance the budget in future years to the Policy and Resources Committee in October 2019;

c)     Requests that officers, as options are developed for consideration by Council, review budget efficiency and savings proposals identified by other local authorities.

 

8.     Agrees to progress the following in support of council priorities:

a)     Requests a report to the Community Services Committee in June 2019 detailing steps we are taking to ensure looked-after children get the most out of education, what impact is being achieved and further considering how Argyll & Bute Council can develop best practice as the corporate parent, with further reports to the Corporate Parenting Board;

b)     Noting that officers will be bringing forward our developing waste strategy which aims to support the Zero Waste Scotland approach, requests that further reports come to the Environment, Development and Infrastructure Committee focused on:

i.             How we can work with residents to further reduce waste in all forms,

ii.            The financial impacts and practical challenges of the landfill ban on rural and island local authority areas, and

iii.           The implications on communities of transporting waste from areas where transport infrastructure is already under strain

c)     Requests that council officers seek information from other public sector organisations operating in Argyll and Bute, to identify:

i.             positive examples of collaboration and joint working by those public agencies that have enhanced services to our communities, and

ii.            opportunities to establish or further develop such arrangements.

An initial report should come to the September meeting of the Argyll and Bute CPP Management Committee;

d)     Improves engagement with the wider community by co-opting local young people as representatives to local Community Planning Groups and the CPP Management Committee.

 

9.     Acknowledges the feedback provided by local people who participated in this year’s budget consultation with thanks for their participation and contribution to the process.

 

10.  Approves all service plans, subject to updating the budget figures in line with the budget agreed for 2019/20.

 

11.  Notes the revenue budget monitoring position as at 31 December 2018.

 

12.  Notes the financial risks analysis report.

 

13.  Notes that, through the EQSEIA (Equality and Socio-Economic Impact) process, we have paid due regard to our duties under the Equality Act 2010, our associated Fairer Scotland Duty, and the Islands Act; noting also that some savings proposals have an impact in some areas but that this too has been given due regard, and that no impacts showing actual or potential unlawful discrimination have been identified through the EQSEIA process.

 

Moved by Councillor A Morton, seconded by Councillor Mulvaney.

 

Amendment 1

 

The Council …

i.         Recognises and values the feedback from those citizens who have shared their views on the suggested ‘Policy savings options’ through the Council’s budget planning consultation, and most importantly, indicated their priority choices for education, environmental services and roads, and care for vulnerable people.   ii.        Notes the detail provided in the Revenue Budget Overview 2019-20, and 2020-2022 report. iii.      Approves the Revenue Budget estimates for 2019-20, recognising the projections for 2020 -21 and 2021-22, subject to the changes contained in this amendment. iv.      Approves all service plans 2019-22, and specifically the budget allocation for the forthcoming year, noting the continuing search for improvement in the Council’s approach to business planning and performance management. (Notes that the above service plans will be amended in light of the agreed Council budget and budget priorities.)   v.       Notes the detail of the EQSEIA report and its conclusion that the implementation of the savings proposals would have no actual or potential unlawful discrimination.   vi.      Agrees the detail which underpins the Opposition budget model for 2019-20, noting the detail set out in respect of 2020 -21 and 2021-22, as follows:

Funding Resources: The Council …

i.                    Notes the detail of the Revenue Budget Monitoring position as at 31 December 2018 ii.                  Approves the Revenue estimates for 2019-20, and the consequent requirement that £50.457m of the Council’s expenditure will be funded from Council tax   Fees and Charges iii.                 Agrees a general 3% inflationary increase in fees and charges, together with a higher increase in respect of specified services, where the increase will be higher as set out in the budget pack, including fees in respect of piers and harbours, which are to be ring-fenced to fund asset improvements.  iv.                 Approves the application of the following charges as outlined in the budget pack; printing and copying of registers, pre-application planning consultations and charging for private water supply monitoring, with effect from 22 February 2019.   v.                  Approves the -        new charges in relation to the parking pilot for Oban, Lorn and the Isles, -        the changes to Social Work fees and charges, and -        all other charges as noted within the Fees and Charges schedule as set out in the Fees and Charges report in the budget pack.   Council Tax vi.                 Agrees to a 4.79% increase in Council Tax in 2019-20 vii.               Approves the following, that: -     Council tax to be paid in respect of a chargeable dwelling in band D will be £1,308.83,        representing a 4.79% increase; -     Council tax to be paid in respect of a chargeable dwelling in each of the other       valuation bands will be in accordance with section 74(1) of the Local       Government Finance Act, 1992, as amended; and viii.            Notes that business rates will be as determined by Scottish Ministers   Revenue Budget ix.              Notes that the Revenue Budget for 2019-20 as set out in the budget pack show a budget gap of £7.896m. x.                Notes the contribution to reducing that budget deficit through the continuing legacy of previously agreed savings measures derived from management and operational savings in 2017, together with policy savings from 2018, and loans charges amounting to £2,350;

xi.             Welcomes the continuing efforts of Officers in the search for economies, efficiencies and opportunities for change and looks forward with anticipation to future reports from the Transformation Board.   xii.             Management Savings                                                                                                                 Agrees the implementation of new Management/operational savings amounting to £2.090m in 2019-20 (£1.638m 2020-21 & £1.398m in 2021-22.) as set out in Appendix 5 Revenue Budget Overview.   xiii.            Policy Savings                                                                                                                                Agrees the implementation of new Policy savings amounting to £1.133m in 2019-20 (£1.425m 2020-21 & £1.500m in 2021-22) as set out in the Appendix to this motion. Members are asked to note the following commentary as to the Group’s position on certain of the following Policy Savings options which are not accepted at this time:   PHRS16 Trading Standards - not accepted This is all about timing; a small reduction in a small team would significantly impact on the Service’s ability to engage with and support local businesses at a time of great uncertainty, as they deal with changes in cross border trade and a changing landscape regulatory landscape. EDST05 Road Safety Unit - not accepted This valued service promotes desirable safe, independent travel by children and others, and is totally consistent with our commitment to build and sustain, safe strong communities. If not delivered through this small unit, it would fall to schools to pursue this, alongside other competing demands on teachers’ time and curriculum.  RAS11 School Crossing Patrollers - not accepted An integral part of all road safety messages, ‘cross safely’.  Whilst parents have always sought to promote our children’s independence, school crossing patrollers play a part in securing safe routes to school. With a view to informing the management of change and a new service approach, the Executive Director of ED&I is asked to bring forward a report for the June meeting of the ED&I Committee which looks holistically at how we might review this service in light of site by site risk-assessments, the promotion of safe routes to school and the potential for pedestrian controlled crossings. The safety of our school pupils is of the utmost importance and we should strive to maintain key crossing patrol services where these are required.     It is appropriate at this time to look to a more integrated approach to pedestrian and road user safety. The Executive Director of ED&I is therefore asked to prepare a report for the June meeting of the ED&I Committee on an integrated road safety service, which embraces both the above services and the Roads Design team, potential benefits and efficiencies. RAS05 Amenity Services - not accepted Whereas the service has struggled to deliver previous budget savings requirements, this proposal will see a further reduction in the service’s capacity to deliver across a range of services, not least of all grass cutting. Members will recognise the importance of a well maintained, litter free environment as it underpins our tourism economy. RAS15 Environmental Wardens - not accepted These officers are essential to the enforcement of parking and environmental regulation, and the pursuit of increased commercial waste income. CSS02 Customer Service Points - not accepted Customer service points are fundamental to our commitment to remote communities. They serve to provide a ‘connection’ with the council and public bodies which individuals need to connect to for basic services. The case for service points should not be founded on registrar services footfall, but valued, as a fundamental contribution to island and remote community life. In effect there should be a ‘presence’, however, small on each island that delivers on our commitment to these communities. The Executive Director of Customer Services is asked to bring forward a report for the June meeting of the Community Services Committee which sets out how we might retain that ‘connection’, and explore how the staff at work in these offices could assume a compensatory wider workload on behalf the Service ensuring a continuing presence in each community. The case for continuing financial support for Jura and Colonsay should be founded on growing the capacity and resilience of these communities, and not acting against their best efforts to be creative and aspirational for their communities. The reduction of the island offices and of Campbeltown to part-time opening, in a civic building which houses a museum and is used to conduct civil ceremonies is unwelcome and unnecessary when other work could be transferred to ensure a sustainable workload suffice to justify an ‘open’ office. Members will recognise the disproportionate impacts of these closures on individuals and communities. ED05 Youth and Adult Learning - not accepted It is difficult on the basis of this budget paper to support a major service change. It would be inappropriate to agree to this service change without sight of the Education Scotland audit inspection process which has yet to conclude and whilst we await the Audit Report. Whereas the savings option focusses on structures and access in the larger towns, it does not offer assurance that the new service structure would continue to deliver • improved life chances for people of all ages through learning, personal development and active citizenship; • stronger, more resilient, supportive, influential and inclusive communities The Executive Director of Customer Services is asked to bring forward a report for the June meeting of the Community Services Committee which reviews the current service design against the above criteria and recognises and responds to issues raised in the anticipated Audit Report. ED06 Music Instruction - not accepted This service has been raised in cost savings options in the past and will feature again as a non-statutory service. The service would be better sustained in a more commercial environment, one in which the costs of the service could be supported by income from both the education authority and the wider community. The Executive Director of Customer Services is asked to explore the desirability and potential benefits of transferring the service to Live Argyll, a body whose remit is to manage and deliver leisure and cultural services, subject to the necessary protections of the Council’s interest in the delivery of SQA tuition of music and to report back to the June meeting of the Community Services Committee.

Expenditure: The Council …

Health & Social Care i.             Approves the allocation of core funding support of £57.132m to the Argyll and Bute Health and Social Care Partnership (HSCP) for 2019-20, in addition to an in-year payment of £1.236m (total £58.368m). ii.            Approves an indicative base core funding of £57.132m plus in year funding of £1.236m in both years (total £58.368m) for the Argyll and Bute Health and Social Care Partnership (HSCP) for 2020-21 and 2021-2022. iii.          Agrees to defer the pay-back of the 2017-18 Social Work overspend by the HSCP by 1 year, resulting in a re-profiling of repayments to (£0.100m in 2019-20, £0.300m in 2020-21 and £0.755m in 2021-22.)   Live Argyll iv.          Approves the adjustment to the Live Argyll management fee, resulting in a management fee of £3.692m in 2019-20 and an increase in 2020-21 as previously agreed. The 2021-22 payment to be the subject of review in advance of that date.   Other Commitments v.           The Council agrees to extend its contract with Kintyre Recycling Limited (KRL) to August 2019, and makes a consequential provision in the Revenue Budget 2019-20 of £23,330. vi.          The Council agrees to host the National Mod in Oban, in 2023, and makes provision of £120,000 within the 2019-20 budget (£80,000 additional cost, £40,000 already in base budget).  Agree to transfer to Earmarked Reserves until the monies are required. vii.         Approves the proposed funding for Events and Festivals for 2020-21 at the same level as 2019-20, £0.113m. viii.       Approves the proposed funding for Supporting Communities Fund for 2020-21 at the same level as 2019-20, £0.098m. ix.         Makes specific provision of £10,000 in 2019-20 in respect of awards of up to £1,000 to be to community groups who undertake to maintain ‘closed’ cemeteries. The scope of these awards, the definition of maintenance and related administrative, to be set out in a report by Officers to the Environment, Development and Infrastructure Committee in June. Members should note. That as anticipated, this arrangement would see the Council cease all routine maintenance in these cemeteries. x.           Makes specific provision of £30,000 in 2019-20 for the acquisition of advisory digital signage to be used in the promotion of speed moderation in rural villages and elsewhere in response to community concerns not otherwise addressed. Asks that Officers bring forward a report to the Environment, Development and Infrastructure Committee on the design, specification and temporary deployment of this equipment in June, together with a second report, in December 2019, reviewing the operation and value of this initiative. xi.                 Agrees that £0.149m, the sum equivalent to the remaining revenue balance surplus is transferred to the General Fund Reserve, recognising the pressure on the General Fund reserves at this time.

Reserves The Council …

i.             Affirms the contingency level previously agreed by the Council for the General Fund balance at a level of 2% of net expenditure, equivalent to £4.840m, and note the report on Reserves and Balances. ii.            Notes the report on Council Reserves and Balances in the Budget pack which reported an estimated Unallocated General Fund balance of £0.999m as at 31 March 2019. iii.          Approves that the remaining Capital Grant in respect of Campbeltown Flood Scheme, amounting to £4.153m, be earmarked within the General Fund pending a decision on the full business, which is expected to be submitted late 2019. iv.          Agrees that the remaining Capital Plan surplus of £0.929m is retained within earmarked reserves as a Capital Plan contingency.

Capital and Corporate Asset Management Strategy The Council …

i.           Approves the Capital Plan recommendations as outlined in the Head of Strategic Finance Introductory Report and recommendations (q) through to (v).

Financial Risks Analysis The Council … i.                 Notes the detail of the financial risk analysis   SUMMARY The Council notes that this budget Amendment  … a.     recognises the continuing work of Officers and positive contributions to the transformation approach and the Council’s budget setting process b.     ensures that going forward the Council’s services and workforce will ensure continuing support for local business at a time of uncertainty, provide for a safer roads environment, continuing learning and personal development for individuals and the best presentation of Argyll and Bute’s natural environment, and c.      makes specific provision to address community concerns for falling standards of maintenance in unused cemeteries and the speed of vehicles passing through smaller rural communities.   Appendices 1, 2 and 3 are attached to this Minute.

Moved by Councillor Taylor, seconded by Councillor Douglas.

 

Amendment 2

 

a) Note the findings from the Council’s budget planning consultation.

 

b) Approve all service plans, subject to updating the budget figures in line with the budget agreed for 2019-20.

 

c) Note that through the EQSEIA process, we have paid due regard to our duties under the Equality Act 2010, our associated Fairer Scotland Duty and the Islands Act. Note that some of the savings proposals have an impact in some of areas, but this has been given due regard. There are no impacts identified through the EQSEIA process that show actual or potential unlawful discrimination.

 

d) Approve a base allocation to the Health and Social Care Partnership of £57.132m for 2019-20 in addition to an in-year payment of £1.236m. Approve indicative allocations base for 2020-21 and 2021-22 to be £57.132m with a further in-year payment of £1.236m in both years. 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.

 

e) Agree to defer the pay-back of the 2017-18 Social Work overspend by the HSCP by 1 year, resulting in repayments of £0.100m in 2019-20, £0.300m in 2020-21 and £0.755m in 2021-22. This will alter the payments as noted in recommendation (d).

 

f) Approve the adjustment to the Live Argyll Management Fee, resulting in a management fee in 2019-20 of £3.692m. Approve the increase in the Management Fee for 2020-21 as was previously agreed when the Trust was established and note that the fee for 2021-22 will be subject to review on the basis that the Trust should have been able to grow its income streams and the management fee will reduce.

 

g) Approve the revenue estimates for 2019-20 and that consequently the local tax requirement estimated at £50.457m is funded from Council Tax. Approve the following rates and charges for the year, 2019-20:

 

i. Council Tax to be paid in respect of a chargeable dwelling in Band “D”

of £1,308.83 representing a 4.79% 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.

 

 

h) Approve the new management/operational savings as outlined in Appendix 5 and approve the policy savings options as outlined in Appendix 6 of the Revenue Budget Overview Report, with the exception of those savings options noted in the appendix to this amendment. 

Policy Options not agreed to take                                                                                         

ED06 - Music Instruction                                            

ED05 - Youth and Adult Learning                                                      

RAS15 - Environmental Warden Services                                         

RAS11 - School Crossing Patrollers                                                              

RAS05 - Grounds and Environment                                                  

EDST05 - Road Safety Unit                                                               

CSS02 - Customer Care Centre                                                        

 

 

j) Approve the funding request for the Royal National Mod, £0.080m to be funded from unallocated General Fund reserve and £0.040m to be funded from existing budget provision for the Mod SLA.  Note that the existing budget provision for the Mod SLA can be removed from the base budget from 2020-21 onwards.  Further approve the funding request from Kintyre Recycling Limited of £23,330 to be funded from unallocated general fund.  Both are noted in the appendix to this amendment.

 

i) Approve the revenue budget for 2019-20 as set out in the revenue budget overview report. With changes in (h) and (j) implemented.  This will leave a surplus of £0.303m which should be transferred to the General Fund.

 

k) Approve the funding for Events and Festivals for 2020-21 in order that the grant application process can commenced during 2019-20. At same level of funding as previous year of £0.113m.

 

l) In a similar position to the Events and Festivals funding, consider approving the funding for the Supporting Communities Fund in 2020-21 in order that the grant application process can commence during 2019-20 at same level of funding as previous year of £0.098m.

 

m) Approve the following in relation to fees and charges with effect from 1 April 2019 unless otherwise noted:

 

i. Approve the proposals for the fees and charges inflationary increase of 3% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.320m in total.

 

ii. Approve the new charges in relation to registers printing copy certificates, pre-application meetings and private water supplies and agree that these charges will be implemented from 22 February 2019.

 

iii. Approve the new charges in relation to the proposed parking pilot for Oban, Lorn and the Isles as per the Policy and Resources Committee report on 14 February 2019.

 

iv. Approve the changes proposed to the Social Work fees and charges.

 

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

 

n) Note the revenue budget monitoring position as at 31 December 2018.

 

o) Note the financial risks analysis.

 

p) Approve the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £4.837m and note the report on reserves and balances.

 

q) Approve the capital plan block allocations for 2020-21 and 2021-22 and the contribution to the private sector housing grant for these years as noted in the capital summary report

 

r) Approve the following changes to the capital plan:

 

i. No additional funding approved for the overspend on Helensburgh Waterfront and Dunoon CHORD at this time and require the Executive Director of Development and Infrastructure to come forward with proposals as to how the shortfall in relation to these two projects will be funded from within Development and Infrastructure existing capital resources.

 

ii Approve an additional allocation of £1.024m for Tabert/Ardrishaig/ Lochgilphead regeneration projects and ask the Executive Director of Development and Infrastructure to come forward with proposals as to how this will be spend.

 

iii. Approve the removal of the Kilmahew/St Peter’s project from the capital plan and transfer the £0.250m to the capital plan surplus.

 

iv. Approve that the underspend of £0.423m on the Kintyre Renewables Hub project is removed from the capital plan and transferred to the capital plan surplus.

 

v. Approve that the £0.500m funding that was accelerated from the Education Block allocation in 2019-20 towards Dunoon Primary School is re-instated and used towards the projects originally intended for.

 

vi. Approve a 20% contribution towards the Campbeltown Flooding Scheme to 2019-20 of £0.159m.

 

vii. Approve the full capital ask of £0.200m towards the CARS Lochgilphead Project, profiled over 2019-24.

 

viii. Approve the full capital ask of £0.327m towards the CARS Helensburgh Project, profiled over 2020-25.

 

ix. Approve an additional allocation of £0.250m for the Health and Social Care block allocation in 2019-20 to be used for asset sustainability.

 

x. Approve that the remaining Capital Grant in respect of Campbeltown Flood Scheme, amounting to £4.153m, be earmarked within the General Fund pending a decision on the full business, which is expected to be submitted late 2019.

 

s) Approve the capital plan as set out in Appendix 3 of the capital plan summary, subject to the changes noted in recommendation (r).

 

t) Approve that the remaining capital plan surplus of £0.929m is retained within earmarked reserves as a capital plan contingency.

 

u) Approve the Corporate Asset Management Strategy.

 

v) Approve the Corporate Asset Management Plan and the Asset Group

Summaries.

 

Revenue Budget Table
	2019-20 £000	2020-21 £000	2021-22 £000
Budget Surplus / (Gap) as per Budget Pack	1,032	-4,528	-11,611
Policy Options not agreed:
ED06 - Music Instruction	-27	-61	-61
ED05 - Youth and Adult Learning	-248	-330	-330
RAS15 - Environmental Warden Services	-105	-140	-140
RAS11 - School Crossing Patrollers	-115	-170	-170
RAS05 - Grounds and Environment	-120	-180	-180
EDST05 - Road Safety Unit	-74	-99	-99
CSS02 - Customer Care Centre	-40	-79	-79
Remove Mod baseline funding from 2020-21		0	0
Revised Budget Surplus / (Gap)	303	-5,587	-12,670
Transfer Surplus to General Fund	-303
Finalised Budget Surplus / (Gap)	0	-5,587	-12,670
Unallocated General Fund Table
	£000
Unallocated General Fund Balance as at 31 March 2018	1,899
Balance no longer required	1,237
Forecast overspend as at 31 December 2018	-2,041
Revised Unallocated General Fund Balance before budget	1,095
Mod	-80
Kintyre Recycling Limited	-23
Transfer to contingency to maintain 2% level	-111
Transferred from Revenue Budget Surplus 2019-20	303
Revised Unallocated General Fund Balance after budget	1,184
Capital Table
	£000
Capital Surplus as per Budget Pack	1,865
Not agreed Helensburgh Waterfront additional funding	514
Not agreed Dunoon CHORD additional funding	510
Tarbert/Ardrishaig/Lochgilphead Regeneration Project	-1,024
Campbeltown Flood Scheme	-159
CARS Lochgilphead	-200
CARS Helensburgh	-327
HSCP Block Allocation 2019-20	-250
Revised Surplus - to be retained as contingency	929

 

Moved by Councillor Philand, seconded by Councillor Kelly.

 

Amendment 3

 

The Council:

 

a) Note the findings from the Council’s budget planning consultation.

 

b) Approve all service plans, subject to updating the budget figures in line with the budget agreed for 2019-20.

 

c) Note that through the EQSEIA process, we have paid due regard to our duties under the Equality Act 2010, our associated Fairer Scotland Duty and the Islands Act. Note that some of the savings proposals have an impact in some of areas, but this has been given due regard. There are no impacts identified through the EQSEIA process that show actual or potential unlawful discrimination.

 

d) Approve a base allocation to the Health and Social Care Partnership of £57.132m for 2019-20 in addition to an in-year payment of £1.236m. Approve indicative allocations base for 2020-21 and 2021-22 to be £57.132m with a further in-year payment of £1.236m in both years. 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.

 

e) Agree to defer the pay-back of the 2017-18 Social Work overspend by the HSCP by 1 year, resulting in repayments of £0.100m in 2019-20, £0.300m in 2020-21 and £0.755m in 2021-22. This will alter the payments as noted in recommendation (d).

 

f) Approve the adjustment to the Live Argyll Management Fee, resulting in a management fee in 2019-20 of £3.692m. Approve the increase in the Management Fee for 2020-21 as was previously agreed when the Trust was established and note that the fee for 2021-22 will be subject to review on the basis that the Trust should have been able to grow its income streams and the management fee will reduce.

 

g) Approve the revenue estimates for 2019-20 and that consequently the local tax requirement estimated at £50.457m is funded from Council Tax. Approve the following rates and charges for the year, 2019-20:

 

i. Council Tax to be paid in respect of a chargeable dwelling in Band “D” of £1,308.83 representing a 4.79% 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.

 

h) Approve the new management/operational savings as outlined in Appendix 5 and approve the policy savings options as outlined in Appendix 6 of the Revenue Budget Overview Report, with the exception of those savings options noted in the appendix to this amendment.

 

i) Approve the revenue budget for 2019-20 as set out in the revenue budget overview report.  With changes in (h) and (j) implemented.  This will leave a surplus of £0.303 which should be transferred to the General Fund.

 

j) Approve the funding requests for the Royal National Mod of £0.080m to be funded from unallocated General Fund reserve and £0.040 to be funded from existing budget provision for the Mod SLA.  Note that the existing budget provision for the Mod SLA can be removed from the base budget from 2020-21 onwards.  Further approve the funding request from Kintyre Recycling Limited of £23,330 to be funded from unallocated general fund.  Both are noted in the appendix to this amendment.

 

k) Approve the funding for Events and Festivals for 2020-21 in order that the grant application process can commenced during 2019-20.  At the same level of funding as previous year of £0.113m.

 

l) Approve the funding for the Supporting Communities Fund in 2020-21 in order that the grant application process can commence during 2019-20 at the same level of funding as previous year of £0.098m.

 

m) Approve the following in relation to fees and charges with effect from 1 April 2019 unless otherwise noted:

 

i. Approve the proposals for the fees and charges inflationary increase of 3% and approve the charges that are over and above inflation. Note that this would generate additional income of £0.320m in total.

 

ii. Approve the new charges in relation to registers printing copy certificates, pre-application meetings and private water supplies and agree that these charges will be implemented from 22 February 2019.

 

iii. Approve the new charges in relation to the proposed parking pilot for Oban, Lorn and the Isles as per the Policy and Resources Committee report on 14 February 2019.

 

iv. Approve the changes proposed to the Social Work fees and charges.

 

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

 

n) Note the revenue budget monitoring position as at 31 December 2018.

 

o) Note the financial risks analysis.

 

p) Approve the contingency level for the General Fund balance at a level of 2% of net expenditure, equivalent to £4.837m and note the report on reserves and balances.

 

q) Approve the capital plan block allocations for 2020-21 and 2021-22 and the contribution to the private sector housing grant for these years as noted in the capital summary report

 

r) Approve the following changes to the capital plan:

 

i. Approve that additional funding of £0.514m is allocated to the Helensburgh Waterfront Project and £0.510m to Dunoon CHORD in line with the current reported overspends on these projects.

 

ii. Approve the removal of the Kilmahew/St Peter’s project from the capital plan and transfer the £0.250m to the capital plan surplus.

 

iii. Approve that the underspend of £0.423m on the Kintyre Renewables Hub project is removed from the capital plan and transferred to the capital plan surplus.

 

iv. Approve that the £0.500m funding that was accelerated from the Education Block allocation in 2019-20 towards Dunoon Primary School is re-instated and used towards the projects originally intended for.

 

v. Approve a 20% contribution towards the Campbeltown Flooding Scheme to 2019-20 of £0.159m.

 

vi. Approve the full capital ask of £0.200m towards the CARS Lochgilphead Project, profiled over 2019-24.

 

vii. Approve the full capital ask of £0.327m towards the CARS Helensburgh Project, profiled over 2020-25.

 

viii. Approve an additional allocation of £0.250m for the Health and Social Care block allocation in 2019-20 to be used for asset sustainability.

 

ix. Approve that the remaining Capital Grant in respect of Campbeltown Flood Scheme, amounting to £4.153m, be earmarked within the General Fund pending a decision on the full business case which is expected to be submitted late 2019.

 

s) Approve the Capital Plan as set out in Appendix 3 of the Capital Plan summary, subject to the changes noted in recommendation (r).

 

t) Approve the remaining capital plan surplus of £0.929m is retained within earmarked reserves as a Capital Plan contingency.

 

u) Approve the Corporate Asset Management Strategy.

 

v) Approve the Corporate Asset Management Plan and the Asset Group Summaries.

 

w) Agrees that officers bring forward an early report to the Council on the non-statutory Argyll Air Services serving Oban, Coll and Tiree Airports and Colonsay Airfield.  The report should include flight and passenger numbers and all income and expenditure figures over the past two financial years with details of the net saving / cost to the Council should the Council decide to terminate this service.  

 

Revenue Budget Table
	2019-20 £000	2020-21 £000	2021-22 £000
Budget Surplus / (Gap) as per Budget Pack	1,032	-4,528	-11,611
Policy Options not agreed:
RAS11 - School Crossing Patrollers	-115	-170	-170
ED05 - Youth and Adult Learning	-248	-330	-330
ED06 - Music Instruction	-27	-61	-61
RAS15 - Environmental Warden Services	-105	-140	-140
RAS05 - Grounds and Environment	-120	-180	-180
CSS02 - Customer Care Centre	-40	-79	-79
EDST05 - Road Safety Unit	-74	-99	-99
Remove Mod baseline funding from 2020-21		0	0
Revised Budget Surplus / (Gap)	303	-5,587	-12,670
Transfer Surplus to General Fund	-303
Finalised Budget Surplus / (Gap)	0	-5,587	-12,670
Unallocated General Fund Table
	£000
Unallocated General Fund Balance as at 31 March 2018	1,899
Balance no longer required	1,237
Forecast overspend as at 31 December 2018	-2,041
Revised Unallocated General Fund Balance before budget	1,095
Mod	-80
Kintyre Recycling Limited	-23
Transfer to contingency to maintain 2% level	-111
Transferred from Revenue Budget Surplus 2019-20	303
Revised Unallocated General Fund Balance after budget	1,184
Capital Table
	£000
Capital Surplus as per Budget Pack	1,865
Campbeltown Flood Scheme	-159
CARS Lochgilphead	-200
CARS Helensburgh	-327
HSCP Block Allocation 2019-20	-250
Revised Surplus - to be retained as contingency	929

 

Moved by Councillor Freeman, seconded by Councillor Moffat.

 

The Provost requested the Head of Strategic Finance to confirm that the Motion and three Amendments before the Council, containing budget proposals, were competent. 

 

The Head of Strategic Finance advised the following –

 

“I would confirm that all four budget proposals presented here today are financially competent and balanced.  No budget is without an element of risk as a budget is an estimate of income and expenditure at a point in time before the income and expenditure has actually happened.  Provost, I would confirm that the four budget proposals presented here today are balanced and competent.” 

 

The requisite number of Members required the vote to be taken by calling the roll and Members voted as follows:-

 

Motion	Amendment 1	Amendment 2	Amendment 3
Cllr Anderson	Cllr Armour	Cllr Kelly	Cllr Freeman
Cllr Colville	Cllr Blair	Cllr Philand	Cllr Moffat
Cllr Currie	Cllr Douglas
Cllr Devon	Cllr Findlay
Cllr Good	Cllr Forrest
Cllr Green	Cllr Horn
Cllr Hardie	Cllr Lynch
Cllr Kinniburgh	Cllr Paterson
Cllr MacMillan	Cllr Taylor
Cllr McCuish	Cllr Trail
Cllr McGrigor
Cllr McNeilly
Cllr Morgan
Cllr A Morton
Cllr E Morton
Cllr Mulvaney
Cllr Redman
Cllr Reid
Cllr Robertson
Cllr Scoullar
Cllr Vennard

 

Decision

 

The Motion was carried by a substantial majority.

 

(Ref: Report by Head of Strategic Finance, Revenue Budget and Capital Budget packs, updates to the Budgeting Pack from the P&R Committee of 14 February 2019, submitted)