COUNTY COUNCIL
24th February, 2009
PRESENT: |
Councillor D.W.H. Richards (Chair) |
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Councillors: |
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S.M. Allen |
D.T. Enoch |
G.O. Jones |
A.D.T. Speake | |||
Ms. M.P. Binney |
Ms. L. Evans |
I.G. Jones |
Mrs. L.M. Stephens | |||
M.J.P. Burns |
M.H. Evans |
J.E. Jones |
D. Thomas | |||
A.P. Cooper |
W.J.W. Evans |
Mrs. P.E.M. Jones |
Mrs. G. Thomas | |||
J.D.G. Crossley |
W.T. Evans |
T.J. Jones |
K.P. Thomas | |||
A. Davies |
Mrs. M. Gravell |
P.H. Lewis |
Mrs. S.E. Thomas | |||
D.B. Davies |
W.G. Hopkins |
D.J.R. Llewellyn |
W. David Thomas | |||
D.M. Davies |
Ms. F. Hughes |
D.A. Lloyd |
W. Dorrien Thomas | |||
D.R. Davies |
M.B. Hughes |
S.J. Lloyd-Janes |
Mrs. J. Tremlett | |||
J.J.J. Davies |
P.M. Hughes |
K. Madge |
D.A. Williams. | |||
T. Davies |
P. Hughes Griffiths |
A.G. Morgan |
J.E. Williams | |||
W.K. Davies |
I.J. Jackson |
D.H. Morgan |
Mrs. J.S. Williams | |||
W.R.A. Davies |
S.R. James |
Mrs. P.A. Palmer |
P.M. Williams | |||
Mrs. T. Devichand |
D.M. Jenkins |
R.T. Price |
G.H. Wooldridge | |||
E. Dole |
A.W. Jones |
K.D. Rees |
Ms. H.E. Wyn | |||
S.P. Dunn |
C.M. Jones |
H.C. Scourfield |
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J.G. Edwards |
Mrs. E.A. Jones |
H.B. Shepardson |
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Mr. M. James - Chief Executive |
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Mr. R. Workman - Director of Technical Services |
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Mr. V. Morgan - Director of Education and Children’s Services |
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Mr. D. Gilbert – Director of Regeneration |
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Mr. R. Jones – Director of Resources |
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Mr. B. McLernon – Director of Social Care, Health and Housing |
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Mr. L. Thomas - Head of Administration and Law |
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Mr. C. Moore – Head of Financial Services |
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Mr R. Staines – Head of Housing |
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Ms D. Williams – Press Manager |
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Ms. S. Jones – Principal Democratic Services Officer |
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(Council Chamber, County Hall, Carmarthen – 10.00 a.m. – 11.40 a.m.) |
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Apologies for absence were received from Councillors D.J. Davies, Mrs. M.L Davies, J.P. Jenkins, W.H. Jones, W.J. Lemon and T. Theophilus.
No declarations personal interests were made.
UNANIMOUSLY RESOLVED that the report of the above meeting be received.
The Council was informed that the Executive Board, at its meeting held on the 2nd February, 2009 following consideration of the revenue budget proposals for 2009/10 to 2011/12 had made the 5 recommendations detailed in the Director of Resources’ report for consideration by the Council.
The Council received a presentation from the Leader setting out the background against which the draft budget had been prepared. She referred initially to the prevailing global and national economic situation which posed considerable difficulties in the preparation of the draft budget due to the fluctuating financial climate and that Council might need to revisit its proposals in the forthcoming year in the light of any further economic changes . The Leader explained that throughout the budget process the Executive Board had recognised that the final strategy had to, as far as possible, protect the local economy and the interests of the local taxpayer.
The Leader referred to the other background factors which included the 4.2% settlement received from the Welsh Assembly Government (WAG); the £2.606m of efficiency savings identified by officers and the Scrutiny Committees which was equivalent to a 4.5% saving on Council tax; the significant budgetary pressures facing Children’s services; land charges income and Schools Voluntary Early Redundancy (VER) costs and the extensive consultations undertaken both internally and with a variety of external bodies. In order that the level of increase be limited to Standard Spending Assessment (SSA) the Executive Board recommended the use of a contribution of £1.296m from the Council’s General Reserves. This would represent a 3.3% increase in the Council Tax for 2009/10.
The Director of Resources provided an overview of the processes involved in setting the budget including the Welsh Assembly Government’s 4.2% settlement, the use of the Deprivation Grant; the £2.6m of efficiency savings, inflationary factors and the pressures in certain service areas. This had resulted in the Executive Board recommending the Children’s Services legal costs budget be increased by £245k; the land charges budget by £225k and Schools VER costs by £400k. He also made reference to the validation factors that reflected the changes in expenditure requirements to deliver the current level of service in the future and how these had changed since the initial budget outlook report had been presented to members in November 2008.
The Director stated that the budget proposals and spending plans had been compiled in an endeavour to meet the Council’s aspirations, whilst accepting a tough settlement, and addressing specific pressures in certain service areas and recognising the need to minimise the impact on the local taxpayer.
The Director of Resources reminded the Council that, in recent years, the Authority had successfully implemented a policy of bringing its net expenditure in line with, or below its Standard Spending Assessment (SSA) which, for 2009/10 had been set at £303.126m. He highlighted the individual elements involved in each of the issues (as detailed in his report) that had influenced the determination of the 2009/10 Budget and Council Tax level. The current budget proposals, if adopted, and having taken account of efficiency savings of £2.606m, would result in the budget being set at £1.243m above the SSA and a Council Tax increase of 5.51%. The Director explained that the Executive Board’s recommendation to Council that the level of increase be limited to SSA represented a Council Tax increase of 3.3% that could only be achieved by either reducing spending plans by £1.243m or, identifying further sources of funding to meet the shortfall. One area available to increase the funding was the use of the Council’s General Reserves that were currently set at £9.379m. He stated that the recommendation to utilise part of the reserves to underpin the budget would result in their level reducing to £8.083m, slightly below Council’s adopted limit of 3% of net expenditure which had previously been deemed to be prudent and reasonable by the Wales Audit Office.
The Director of Resources, in concluding, advised that the budget proposals set out in the report were both prudent and reasonable.
The following questions/observations were raised on the report:
● Reference was made to the estimated £1.922m that Carmarthenshire might receive from the nationally allocated Improvement Agreement Grant in 2009/10. A question was asked as to whether a portion of this grant could be utilised to further reduce the Council Tax? The Director of Resources advised that this would not be prudent at this stage as payment was dependant upon the Authority meeting its agreed objectives, unlike its predecessor, the Performance Incentive Grant which had been paid irrespective of whether targets were met. The Chief Executive concurred and explained that the WAG could reclaim a proportion of the grant if the targets were not met. He stated that performance would continue to be closely monitored, but in the current economic climate it was possible that Council might need to utilise additional resources to attain the targets.
● In response to a suggestion that the Executive Board be asked to reconsider the 2009/10 revenue budget and aim for a 0% increase in Council Tax, Council was reminded that all Scrutiny Committees had been given the opportunity of identifying additional savings, however their proposals to the Executive Board could not sustain a 0% increase. The Director of Resources reminded Council that all Authorities were legally required to set their Council Tax by 11th March, 2009.
● With reference to the Corporate Procurement Strategy 2005-2010, it was noted that the target of achieving procurement efficiency savings in the sum of £3 million by 2010 had already been attained. It was considered that further savings of at least 1% could be attained by 2010 e.g. fuel prices had reduced considerably in recent months which provided opportunities for re-negotiation. The Director of Resources gave an assurance that even though the procurement efficiency savings target had been attained early, officers continually endeavoured to seek further savings via procurement whenever possible. He explained that contracts could only be re-negotiated when they were due for renewal and not mid-term due to fluctuations in commodity prices. Council was also informed that the WAG encouraged Authorities to form multi disciplinary partnerships and pool budgets e.g. health and social care providers within Carmarthenshire had established integrated services for older people and for people with physical or sensory disabilities. It was noted that although partnerships of this kind did provide opportunities for savings on procurement, collaborative working arrangements could also result in staff rationalisation.
Council wished to record its appreciation to the Chief Executive, Director of Resources and all Directors and staff involved in the preparation of the budget.
Following debate it was moved and seconded:
“That the recommendations of the Executive Board, as detailed in the report, be adopted.”
An amendment to the motion was duly moved and seconded in relation to the first of the Executive Board’s recommendations for the 2009/10 revenue budget in the following terms:
“That the Council requests the Executive Board to reconsider the 2009/10 revenue budget and aim for a 0% increase in Council Tax without affecting public services by means of:
● Utilising a greater proportion of General Reserves;
● Achieving savings in printing and publication costs;
● Achieving savings by limiting the usage of Consultants;
● Achieving savings via procurement in 2009/10;
● Taking advantage of the obligations of the new Improvement Agreement Grant;
● As well as the possibility of savings in various items such as events, use of bottled water, energy efficiency savings, community networks etc.”
Following a vote, the motion was carried and it was:
RESOLVED that the following recommendations of the Executive Board be adopted:
4.1. “that a budget requirement of £303.126m be set (at SSA), with a contribution from general reserves of £1.296m, with a resultant Council Tax increase of 3.3%;
4.2. that the Deprivation Grant be utilised to augment the settlement for 2009/10.
4.3. that a report on the implications of the new Improvement Agreement Grant be submitted to the Executive Board outlining the financial implications of the new performance target agreements.
4.4. that the efficiency savings and targets set out in the Director of Resources’ report be endorsed.
4.5. that the indicative budgets for 2010/11 and 2011/12 be noted.”
The Council was informed that the Executive Board, at its meeting held on the 2nd February, 2009, following consideration of the three year capital programme, had made the 6 recommendations detailed in the Director of Resources’ report for consideration by the Council.
The Council received a presentation from the Leader on the three year rolling programme which indicated a potential spend of £170m, of which £75m would be dependent upon external funding sources. She stated that the programme aimed to support the Authority’s objectives of improving schools’ infrastructure, refurbishing Parc Dewi Sant and regenerating town centres. Council noted that public sector projects could be regarded as a positive step in maintaining local jobs during a recession.
The Director of Resources’ referred to his report which brought together the latest proposals for the Three Year Capital Programme and also included the Prudential Indicators and the Minimum Revenue Provision that were required to be approved by legislation. The report took account of the Welsh Assembly Government’s final settlement and provided details of the consultation exercise undertaken, together with the revenue implications arising from the capital programme. The capital programme proposed gross expenditure for 2009/10 of £59m, with the proposed funding thereof comprising £41m from the County Council through the use of borrowing, capital receipts, revenue contributions, reserves and general capital grant, with the £18m balance coming from external sources. The Prudential Indicators demonstrated that the Council considered the Capital Investment programme for 2009/10, and the resulting borrowing levels to be affordable, prudent and sustainable, with the principal measures of affordability being the effect on Council Tax.
The Director of Resources also referred to the indicative 2010/11 and 2011/12 capital budgets and advised that they would be continually reviewed as time progressed.
UNANIMOUSLY RESOLVED that the following recommendations of the Executive Board be adopted:
5.1. “that the three year capital programme, detailed in Appendix B to the Director of Resources’ report, with 2009/10 being a hard budget and, 2010/11 and 2011/12 being soft/indicative budgets, be approved.
5.2. that the 2010/11 and 2011/12 budgets be reviewed over the coming year in order to address the unfunded balance in each year.
5.3. that the capital programme be reviewed, as was usual, if anticipated external funding, direct revenue financing or capital receipts did not materialise.
5.4. that the revenue implications as detailed in Appendix C to the report be adopted.
5.5. that the Prudential Indicators outlined in Appendix D to the report be approved.
5.6. that the Minimum Revenue Provision Statement in Appendix E to the report be approved.”
The Council was informed that the Executive Board, at its meeting held on the 2nd February, 2009, following consideration of the Housing Revenue Account (HRA) Budget 2009/12 – Revenue and Capital, had made the 9 recommendations detailed in the Director of Resources’ report for consideration by the Council.
The Council received a presentation from the Leader indicating that the proposed capital spend on the HRA for 2009/10 was £26.5m. She stated that the budget had been set to reflect the latest proposals contained in the Housing Stock Business Plan, which was the primary financial planning tool for delivering the Carmarthenshire Homes Standard (CHS) for the future, and that the level of proposed investment within that Plan would deliver the CHS by our target date of 2014/15. She stated that the Executive Board had recommended a rent increase of 5.7% which is an average increase of £3.25 per dwelling per week for 2009/10, in line with the WAG’s guideline figures. Council was informed that it was pleasing to have positive feedback from tenants that the work undertaken on their properties had a positive impact on their living standards, health and lifestyle.
The Head of Financial Services referred to the joint report of the Director of Resources and Director of Social Care, Health and Housing which brought together the latest proposals for the Revenue and Capital Budgets for the Housing Revenue Account 2009/2012. The report had been presented to the Housing Scrutiny Committee on the 28th January 2009 as part of the budget consultation process and the views expressed at that meeting were set out in the report.
The Head of Housing Services stated that Carmarthenshire’s rents were in the lowest quartile in Wales.
An explanation was sought regarding the proposed £2.99 increase per unit per week for service charges which was equivalent to 35% which mainly affected elderly people residing in sheltered housing. The Head of Housing Services explained that two years ago, Council had agreed to a phased three year increase in the level of service charges and the current increase was in respect of the final year. The original decision to increase service charges incrementally was because the previous system had resulted in general needs tenants (who did not receive these services) subsidising sheltered housing tenants.
RESOLVED that the following recommendations of the Executive Board be adopted:
6.1. “that the rents be increased, as per the Welsh Assembly Government notional rent guidance, by an average of £3.25 (5.7%) per dwelling per week for 2009/10.
6.2. that the service charge for sheltered tenants be increased by £2.99 (35%) per dwelling per week for 2009/10 as per the previous agreed policy and a further incremental increase be agreed for 2010/11.
6.3. that the heating charges be increased by £1.03 (12.4%) per dwelling per week for 2009/10 as per the previously agreed policy.
6.4. that service charges for general needs tenants be introduced at £2.00 per dwelling per week for 2009/10.
6.5. that garage rents be increased by £0.50 (11.1%) per garage per week for 2009/10.
6.6. that the Authority introduces two more non payment weeks prior to the August Bank Holiday.
6.7. that the expenditure efficiencies and budget reduction itemised in the report for Revenue and Capital be implemented within the plan.
6.8. that the Housing Revenue Account Budget for 2009/10 (2010/11 and 2011/12 being soft budgets) as detailed in Appendix A be approved.
6.9. that the Capital Budget and applicable funding for 2009/10 and the indicative spend for 2010/11 and 2011/12 as detailed in Appendix B be approved.”
The Council was informed that the Executive Board, at its meeting held on the 2nd February, 2009 had considered the various options of calculating the Minimum Revenue Provision (the statutory principal charge to revenue in respect of borrowing incurred to fund capital expenditure) as outlined in the Regulations. It was noted that with effect from 31 March 2008, the Welsh Assembly Government had introduced the Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2008. These Regulations introduced certain amendments to those introduced in 2003 as part of the implementation of the Prudential borrowing regime.
RESOLVED that the following recommendation of the Executive Board be adopted:
“That the use of Option 1 for Supported Borrowing and Option 3(a) Equal Instalment Method for Unsupported Borrowing be approved.”
The Director of Resources informed Council that the Executive Board, at its meeting held on the 2nd February, 2009, had considered a report indicating that, as part of the requirements of the CIPFA Code of Practice on Treasury Management, the Council had agreed to maintain a Treasury Management Policy detailing the policies and objectives of its treasury management activities. Council was also required to approve a Treasury Management Strategy annually prior to the commencement of the financial year to which it related. Additionally, under the provisions of the Local Government Act 2003 and the Prudential Code for Capital Finance in Local Authorities, the Council was required to approve its Treasury Management Prudential Indicators for the ensuing year.
UNANIMOUSLY RESOLVED that the following recommendations of the Executive Board be adopted:
“9.1 that the Treasury Management Policy and Strategy for 2009/10 and recommendations detailed therein be approved.
9.2 that the Treasury Management Prudential Indicators and recommendations detailed therein be approved.”
The Council was informed that the Executive Board, at its meeting held on the 2nd February, 2009, had considered the revised Carmarthenshire Community Focused Schools Strategy. It was noted that in 2006 the Council had adopted a Community Focused Schools Strategy directly linked to the Single Education Plan, wherein all schools within the County were considered to be community focused in that they offered pupils, their families and the local communities they served a broad range of activities and opportunities. Subsequent to the above, the Strategy had been revised to make direct links with the Children and Young People’s Plan (2008-2011) and the seven core aims outlined therein. The revised Strategy had been written in three parts providing information in relation to the national context, the Carmarthenshire context and implementation and also:-
● Reflected other Carmarthenshire Strategic Plans, including the Modernising Education Plan, the 14 -19 Strategic Plan, the Adult and Community Learning Strategy, the Welsh Education Scheme and the Health and Well Being and Social Care Plan.
● Strongly focused on school improvement and raising standards.
● Directly linked with the School Effectiveness Framework that was the Welsh Assembly Government’s vehicle for improving outcomes for learners.
● Built upon the Support and Challenge Framework that was currently used within Carmarthenshire to support school improvement.
It was noted that the Strategy had been considered by the Education and Children’s Services Scrutiny Committee at its meeting held on the 26th January 2009 (minute 5 refers) where it had unanimously resolved to recommend its approval to the Executive Board/Council.
UNANIMOUSLY RESOLVED that the following recommendation of the Executive Board be adopted:
“that the revised Carmarthenshire Community Focused Schools Strategy be approved.”