SCRUTINY COMMITTEE (CORPORATE RESOURCES)
MINUTES of a meeting held on 5th
December, 2006.
Present: Councillor C.J. Williams
(Chairman); Councillor Mrs. C.V.L. Clay (Vice-Chairman);
Councillors Ms. M.E. Alexander, Mrs. J.E. Charles, P. Church, J.
Clifford, G. John, Mrs. M. Kelly Owen, N. Moore, A.G. Powell, Mrs.
B.I. Shaw and M.R. Wilson.
582
APOLOGIES FOR ABSENCE -
These were received from Councillors Ms. L.
Burnett, A.D. Dobbinson, N.P. Hodges, C.L. Osborne, A.J.
Preston,
583
MINUTES -
RESOLVED - T H A T the minutes of the meeting
held on 7th November, 2006 be approved as a correct
record.
584
DECLARATIONS OF INTEREST -
This was received from Councillor N. Moore -
Agenda Item No. 13 (ii) and 13 (iv) - School Governor, Ysgol Gwaun
y Nant.
585
TASK AND FINISH GROUP (USE OF CONSULTANTS) -
The following minutes of the meeting held on
12th September, 2006 were submitted:
Present: Councillors Mrs. C.V.L.
Clay, G. John, N. Moore and C.J. Williams.
(a)
Appointment of Chairman and Vice-Chairman -
RECOMMENDED - T H A T Councillors C.J.
Williams and Mrs. C.V.L. Clay be appointed Chairman and
Vice-Chairman respectively for the current municipal year.
(b)
Declarations of Interest -
There were no declarations of
interest.
(c)
Use of Consultants - Scope of Review -
The purpose of the first meeting had been
to discuss and agree a framework for proceeding with the review of
the use of consultants within the Vale of Glamorgan Council.
Given that the Scrutiny Committee (Corporate Resources) at a
meeting on 14th March, 2006 had set out the parameters
of the review consideration was now required to be given to the
practicalities of undertaking the review from its start to
completion.
In scoping the review the Group gave
consideration to the following issues:
· current practices
and procedures
·
Directorates/Sections to be subject to the review
· officers support
for the review and in particular the extent of officers
time
required to research four financial years of financial information
taking into
consideration changes in processes and procedures for the
accessibility of
information within the Finance Department
· the merits of
reviewing consultants commissioned to undertake work on behalf
of
the Council under the value of £10,000
· Definition of the
terminology of “consultant”.
Having regard to above and related matters
it was
RECOMMENDED -
(1) T
H A T officers be requested to prepare a scope for consideration by
the Group
taking account of the following
matters:
· That the review
would encompass all Directorates/appropriate Sections within
the
Council.
· Given the
practical/technical difficulties likely to be encountered by
officers in
accessing financial records for the financial year periods 2001/02
and 2002/03 the
review cover only the financial years 2003/04 and 2004/05.
· That the
commissioning of consultants where the value was under £10,000,
be
subject of the review but only in specific cases where the Group
had requested
the projects inclusion.
· The scope of the
review include best practice in England and Wales in relation
to
procedures/processes.
· That consultants
commissioned under the value of £5,000 be discounted from
the
review.
(2) T
H A T officers provide definitions of the terminology “consultant”
to the Group
for further consideration and agreement as
soon as practicable.
(3) T
H A T the Scrutiny Committee (Corporate Resources) be requested to
endorse recommendations (1) and (2) above.
_____________
RECOMMENDED - T H A T the minutes be endorsed.
586 SCRUTINY
REVIEW: A REVIEW OF THE USE OF CONSULTANTS (CHAIRMAN) -
Following the first meeting of the Task and
Finish Group, officers had prepared, based on the discussions of
that meeting, a draft Scope for the undertaking of the above
review.
RECOMMENDED - T H A T the draft Scope as
detailed in the report, be endorsed.
587 QUARTERLY
PERFORMANCE MONITORING: 1ST JULY - 30TH
SEPTEMBER, 2006 - CHIEF EXECUTIVE’S DEPARTMENT (CX) -
Consideration was given to information
relating to the Action Plan Monitoring and Performance Indicators
contained in the Quarterly Performance Monitoring reports in
respect of the Chief Executive’s Department for the above
period. The Head of Performance and Development indicated
that Sub References SA9, SA10 and SA14 had slipped and the
corrective action required was set out in the report.
Councillor Wilson referred to action L440, in
particular he enquired as to how the Citizens Panels were
constituted. The Head of Service indicated that whilst some
groups were well represented e.g. Disabled, Women and over 50s,
some of groups such as the younger age group were under
represented. This specific issue was currently under review
and consideration was currently being given to working with youth
partnerships in the Vale of Glamorgan to increase
representation. Councillor Wilson suggested that the
Constitution, terms of reference and purpose of the Citizens Panels
be the subject of a review and findings of such should be reported
to a future meeting of this Scrutiny Committee.
Councillor Wilson also raised a number of
issues in relation to the Council’s website and the Head of Service
responded Head of Service responded by indicating that the
percentage of website pages available in Welsh referred to pages
only and not documents (many of which did not need to be
translated, as specified by the Council’s Welsh language
scheme). With regard to the definition of “unique user
visits” this was defined as a separate visit by a user to the
website rather than individual hits on web pages.
Councillor Shaw referred to Indicator L366 and
expressed concern that the end year target would not be achieved
based on the 2nd quarter performance. The Head of
Service indicated that he would give updated figures for the next
quarter ending December 2006 which would be a significant
improvement.
Both Councillors Wilson and Moore referred to
Indicator L123, Councillor Wilson enquiring as to the unit cost of
the production of Vale Waves. The Head of Service indicated
that he was unable to confirm the exact cost per unit of the
production of Vale Waves and agreed to provide a written response
to the Member and the Committee as soon as practicable.
Councillor Moore expressed concern with regard to the Cabinet’s
previous decision to increase the frequency of publication of Vale
Waves and that no decision be made on actioning the increase in the
frequency of the publication until the outcome of the findings of
the Council’s commissioned Public Opinion Survey were known.
RECOMMENDED -
(1) T H A
T the Quarterly Performance Monitoring report for the period
1st April - 30th September, 2006 in respect
of the Chief Executive’s Department be noted.
(2) T H A
T the Head of Service for Performance and Development submit a
further report to this Scrutiny Committee in relation to the
Constitution, terms of reference and aims and objectives of the
Council’s Citizens Panel and the findings of the review.
(3) T H A
T the Head of Service provide a written reply to this Scrutiny
Committee with regard to the unit cost of the production of Vale
Waves.
588 QUARTERLY
PERFORMANCE MONITORING: 1ST JULY - 30TH
SEPTEMBER, 2006 - HUMAN RESOURCES AND EQUALITIES (DLD) -
Consideration was given to the information
relating to the Action Plan Monitoring and Performance Indicators
contained in the Quarterly Performance Monitoring report in respect
of Human Resources and Equalities for the above period.
The Chairman referred to the review of the
Council’s Counselling Services which was subject to the Action
Plan. The Head of Service indicated that the most recent
developments in respect of the above review had been overtaken by a
separate independent review by the Wales Audit Office. This
separate review had reference to how the Council’s Counselling
Service informed Occupational Health issues so as to gain greater
understanding of any trends that developed in terms of sickness and
to tackle these trends when identified. He reminded the
Scrutiny Committee that the current service was a self referral
service and feedback was not necessarily guaranteed as it was
independent of the Council. However, he indicated that
regardless of the WAO review, the service as it stood at this
moment in time, was widely promoted by the Council through a number
of communication streams. Councillor Wilson referred to sub
reference CHR/002 and sub reference CHR/001(a) which appeared to be
under achieving and not achieving as indicated in the report.
In addition, Councillor Wilson also referred to sub reference L265
which was a cumulative figure which suggested that the target was
being exceeded. Generally, the Committee felt that when
accumulative figures were used, that an appropriate narrative
qualifying that accumulative figure be also entered within the body
of the monitoring report.
RECOMMENDED -
(1) T H A
T the Quarterly Performance Monitoring report for the period
1st July - 30th September, 2006 in respect of
Human Resources and Equalities be noted.
(2) T H A
T in future, when accumulative figures are used, an appropriate
narrative be provided to qualify the action so as appropriate
scrutiny can be undertaken.
589 QUARTERLY
PERFORMANCE MONITORING: 1ST JULY - 30TH
SEPTEMBER, 2006 - FINANCE AND PROPERTY (DFICTP) -
Consideration was given to the information
relating to the Action Plan Monitoring and Performance Indicators
contained in the Quarterly Performance Monitoring report in respect
of Finance and Property for the above period.
Consideration was given to those actions
slipped and the corrective action required and to those Indicators
not currently achieving target.
RECOMMENDED - T H A T the Quarterly
Performance Monitoring report for the period 1st July -
30th September, 2006 in respect of Finance and Property
be noted.
590 QUARTERLY
PERFORMANCE MONITORING: 1ST JULY - 30TH
SEPTEMBER, 2006 - INFORMATION AND COMMUNICATION TECHNOLOGY (DFICTP)
-
Consideration was given to the information
relating to the Action Plan Monitoring and Performance Indicators
contained in the Quarterly Performance Indicators contained in the
Quarterly Performance Monitoring report in respect of Information
and Communication Technology for the above period.
The Head of Service referred to those actions
slipped viz SP3, SP4 and SP7 and the proposed corrective action
which was set out in the report.
Councillor Wilson referred to Indicator L385
and enquired of the Head of Service as to what current arrangements
were in place to reduce the printing of multiple copies from
printers and arrangements for printing confidential
information. The Head of Service responded by indicating that
there were currently no arrangements to prevent multiple copies
being printed from equipment. With regard to the printing of
confidential information, the introduction of a Corporate Printing
Strategy as referred to in the Action Plan would address this
issue.
RECOMMENDED - T H A T the Quarterly
Performance Monitoring report for the period 1st July -
30th September, 2006 in respect of Information and
Communication Technology be noted.
591 QUARTERLY
PERFORMANCE MONITORING: 1ST JULY - 30TH
SEPTEMBER, 2006 - LEGAL SERVICES (DLRS) -
Consideration was given to the information
relating to the Action Plan Monitoring and Performance Indicators
contained in the above report. The Head of Service indicated
that there was no slippage and all Indicators were achieving target
save for the Local Indicator 258. Councillor Wilson referred
to this Indicator and suggested that the performance was actually
better than the figure indicated in the report. The Head of
Service indicated that this Indicator related to the budget
allocated for the Service and given that this was less than the
allocation in the previous year and as a consequence, this equated
to 0.64% of the Council’s net revenue budget.
RECOMMENDED - T H A T the Quarterly
Performance Monitoring report for the period 1st July -
30th September, 2006 in respect of Legal Services be
noted.
592 QUARTERLY
PERFORMANCE MONITORING: 1ST JULY - 30TH
SEPTEMBER, 2006 - REGULATORY SERVICES (DLRS) -
Consideration was given to the information
relating to the Action Plan Monitoring and Performance Indicators
contained in the Quarterly Performance Monitoring report in respect
of Regulatory Services for the above period and the correlating
corrective action that was required. The Operational Manager
indicated that with regard to Pest Control Services, it was
unlikely that a free service in the future could be
sustainable. The provision of such a service was not a
statutory requirement and it was likely that a review would be
undertaken having regard to cost pressures affecting Regulatory
Services generally. With regard to the Sewer Bating Programme
undertaken in the current year, this had been successful and had
had a significant impact on those areas where sightings had been
reported. A further bid would be made to Welsh Water
Authority to increase funding for a continued Sewer Bating
Programme in the next financial year.
In response to Councillor Shaw’s question
regarding Indicator L370, the Operational Manager indicated that
Level 3 Green Dragon Award would be achieved by the year end
target.
RECOMMENDED -T H A T the Quarterly Performance
Monitoring report for the period 1st July -
30th September, 2006 in respect of Regulatory Services
be noted.
593 QUARTERLY
PERFORMANCE MONITORING: 1ST JULY - 30TH
SEPTEMBER, 2006 - DEMOCRATIC SERVICES (DLRS) -
Consideration was given to the information
relating to the Action Plan Monitoring and Performance Indicators
contained in the Quarterly Performance Monitoring report in respect
of Democratic Services for the above period.
The Operational Manager for Democratic
Services referred to those targets which had slipped and those
Performance Indicators which were not achieving target. With
regard to sub reference SR4, he indicated that discussions had been
held with the Scrutiny Committee Chairmen and Vice-Chairmen Group
to discuss options in relation to the reformatting of Council
meetings in the future. During that meeting he indicated that
it had become apparent the main issue concerning Members was to
increase the effectiveness of debate at Council. One
suggestion that was discussed and considered at that meeting was
the establishment of a mechanism whereby individual Members could
request the inclusion of an item on the agenda for Full
Council. However, it was acknowledged at that meeting that
such a system would require careful management in order to ensure a
practical amount of such items being dealt with. A report
would be submitted to the above Group on options in January
2007.
With regard to sub reference SR6, a draft
guide would be submitted to the Scrutiny Chairmen and Vice-Chairmen
Group in January 2007.
In addition to the above matters, the
Operational Manager referred to those Performance Indicators that
had not currently been populated with data. By way of an
explanation, he indicated that data was indeed currently being
captured on these matters. However, definitions and the exact
extrapolation of the data was currently being reviewed given the
definitions provided by the WAO and the Centre for Public
Scrutiny. It was anticipated that the 3rd Quarter
Monitoring report would reflect data captured.
In conclusion, the Operational Manager
referred to the number of hits on the website and as indicated in
the previous first quarter monitoring report, he was still unable
to provide such information as this was linked to the new Council’s
website Content Management System.
RECOMMENDED - T H A T the Quarterly
Performance Monitoring report for the period 1st July -
30th September, 2006 in respect of Democratic Services
be noted.
594 REFERENCES
FROM SCRUTINY COMMITTEES -
RECOMMENDED - T H A T, it having been resolved
in the case of those references from the Scrutiny Committee
(Lifelong Learning) that they be considered as items which the
Chairman had decided were urgent, the following references be
noted, (the detail of each further considered in the agenda), and
referred to Cabinet:
· Reference from
Scrutiny Committee (Community Wellbeing and
Safety):
27th November, 2006 -
INITIAL HOUSING REVENUE ACCOUNT BUDGET
PROPOSALS 2007/2008 AND REVISED BUDGET 2006/2007 (DCS AND DFICTP)
-
The initial Housing Revenue Account
budget proposals for 2007/2008 were submitted to the Scrutiny
Committee for consultation. Committee was reminded that each
local housing authority was required by Section 74 of the 1989
Local Government and Housing Act to keep a Housing Revenue
Account. Section 76 of the Act required local authorities to
set a budget for their Housing Revenue Account (HRA) on an annual
basis and the budget had to be set in order that the Housing
Revenue Account would not be in deficit at the year end. The
level of rent increase was based on the Subsidy Determination
issued by WAG, which was not due for release until January 2007
although it was reported that a provisional figure were due during
December 2006. Committee was advised that as the increase was
normally based on the retail price index plus 1% the draft budget
included an estimated rent increase of 4.6%. Consultants had
also completed a review of the Housing Revenue Account Business
Plan and the Council’s Housing Stock Options. One of the
recommendations that was made was for a review of the charging
basis for Council tenant rents which new consultants had already
begun work on but it was not anticipated at this stage that any
changes would be made in April, 2007.
Set out below was a table that
compared the original budget with the proposed revised
estimate:
|
|
2006/07 Original
Budget
|
2006/07 Proposed
Revised Estimate
|
Variance (+) Favourable (-)
Adverse
|
|
|
£’000
|
£’000
|
£’000
|
|
Housing Revenue Account
|
(127)
|
(7)
|
-120
|
It was noted that the net increase of
£127,000 in the budget was due to several reasons, an increase in
security measures at High View at a cost of around £80,000 and
electricity and gas prices had also risen by approximately £55,000
on sheltered properties and communal lighting during the
year. General efficiency savings accounted for any reductions
in the budget. The proposed 2007/08 budget was set out at
Appendix A and Committee was advised that the increase suggested
for rent and other services would be subject to a future report as
soon as the information was available from WAG.
Members of the Committee highlighted
the £80,000 that was being used for security at Harbour View and
considered that it was not “fair” for this sum to be paid entirely
from the Housing Revenue Account as the money should be better
utilised by being redirected for Council tenant accommodation
throughout the Vale. They also considered that the Security
costs charged to the HRA account for Harbour View be apportioned on
the same basis as the eventual distribution of capital receipts
between the HRA and General Fund.
Members considered that the amount of
money that was being spent on security was excessive and reaffirmed
their request for detailed information in respect of this
issue.
RECOMMENDED -
(1) T H A T the views
of Committee as above in respect of the Housing Revenue Account
budget proposals for 2007/2008 and revised budget 2006/2007 be
forwarded to Scrutiny Committee (Corporate Resources) and
Cabinet.
(2) T H A T a future
report in respect of the increase suggested for rents and other
services, as soon as the information was available from the Welsh
Assembly Government, be reported to this Scrutiny
Committee.
(3) T H A T the
Security costs charged to the HRA account for Harbour View be
apportioned on the same basis as the eventual distribution of
capital receipts between the HRA and General Fund.
INITIAL REVENUE BUDGET PROPOSALS
2007/08 (DFICTP) -
The initial revenue budget proposals
for 2007/08 for the services which formed part of the Scrutiny
Committee’s remit were submitted for consultation. Committee
was informed that the Council’s budget was determined largely by
the Revenue Support Grant settlement set by the Welsh Assembly
Government. A provisional settlement had been announced on
25th October, 2006 with details of the final settlement
expected in late November/early December. The Council was
required, under statute to fix the level of Council Tax for 2007/08
by 11th March, 2007 and in order to do so, would have to
agree a balanced revenue budget by the same date. Committee
was advised that to be in a position to meet the statutory
deadlines and the requirements for consultation as set out in the
Council’s Constitution much of the work on quantifying the resource
requirements of individual services would need to be carried out
before the final RSG settlement was notified to the Council.
The Council had provisionally been advised that for 2007/08 it
would receive from WAG, RSG of £107,041,000 and Non-Domestic Rates
(NDR) of £29,117,000. The sums together constituted the
Council’s aggregate external finance and represented an increase of
5.2% over that which had been received for 2006/07 and it was net
of an assumed 1% efficiency saving. The provisional
settlement had also included additional resources for new
responsibilities. Those specifically identified for the Vale
of Glamorgan Council were set out as follows:
|
Additional Resources
2007/08
|
£000
|
|
Adults - Social Services
Children - Social
Services
|
313
198
|
|
Sub-Total - Social Care
System
|
511
|
|
Special Educational Needs
|
256
|
|
Landfill Tax
|
123
|
The Welsh Assembly Government had
announced that the Council would provisionally continue to receive
a Deprivation Grant of £167,000 and a Performance Grant of
£1,239,000. However, it was noted that these were both
unhypothocated grants in that they were not earmarked for
particular services. Confirmation of the continuation and/or
amounts receivable in the form of other specific and special grants
e.g. the Local Authority Business Growth Incentive (LABGI) Grant
were yet to be received.
Committee was further advised that the
overspend of £1,481,000 on Children’s Services was primarily due to
the cost of child placements with a further £665,00 expenditure in
this area as a result of a lower than anticipated available balance
on the Social Services reserves. Community Care and Health
were also projecting an overspend of £2,846,000, a significant
proportion of which was reported as due to the number and cost of
care packages. In respect of the adverse variance of £130,000
for catering this was reported as mainly due to a reduction in the
number of meals being provided and increased costs in meeting the
requirements on nutritional standards. An underspend for
Private Sector Housing/Community Safety of £118,000 was
reported as mainly attributable to an increase in subsidy income
and savings on staff salaries. The report highlighted that
every effort should be made by the Directorate to reduce the
deficit and any remaining balance would need to be refunded from
reserves. It was further noted that £2,250,000 had already
been required to be met from reserves to balance the Council’s
2006/07 overall budget.
At its meeting on 19th
July, 2006, Cabinet had approved the budget strategy and timetables
for 2007/08 as part of the 2006/07 to 2009/10 Medium Term Financial
Plan (Minute No. C2575). A summary of the overall base budget for
2007/08 was attached at Appendix 1 to the report and inflation
amounts of £1.3 million of which £760,000 related to pay awards and
£543,000 for general price increases were noted.
Attached at Appendix 2, to the report,
was a list of 2007/08 cost pressures as identified by the service
areas. These included costs that related to Social Services
that were a continuation of the level of overspending in
2006/07. No reduction of costs had been taken into account to
date which may arise from the Social Services Budget Action
Plan. Cost pressures for the Scrutiny Committee service areas
amounted to £9.6 million for which it was advised some would need
to be met from within existing estimates. These would include
the cost of redundancies which may be incurred in order to maintain
the budget within the resources available and it was reported again
that these costs could be significant.
The budget was therefore presented to
the Committee for consultation. Corporate Resources Scrutiny
Committee was the lead Scrutiny Committee and would consider both
the initial revenue budget proposals and any comments that Scrutiny
Committees made no later than 15th December, 2006.
The Cabinet Budget Working Group would also hold a series of
meetings in December and January with the relevant Cabinet Members
and officers to consider the budget proposals , recommendations
would then be submitted in order that the Cabinet may make its
final budget proposals no later than 14th February,
2007. Cabinet’s final budget proposals would then be
considered at a special meeting of Council to be held by
19th February, 2007.
The report further highlighted the
concern in relation to the continued level of overspending by
Social Services and the cost pressures identified for 2007/08 had
assumed that the overspend had not been addressed. It was
highlighted that it was not financially prudent to fund the current
expenditure from reserves except for a very limited time whilst the
recovery plan was actioned to bring expenditure down. As had
previously been reported the reserves were currently under pressure
and consequently the Council was faced with two
options:
· The first being
to reduce the Social Services overspending and
· the second
being to increase the services base budget which could
only
be achieved by transferring resources from other services with
a
consequent impact on that service area or by increasing the level
of
Council Tax to generate additional resources.
It was reported that the Council could
adopt a mix of the two options however, it was absolutely essential
that the underlying causes for the Social Services overspending
were identified and resolved. If this did not happen
overspending could continue and threaten not just the financial
stability of the Council but the ability to deliver other statutory
services.
The table below provided Members with
the information in respect of the resources that had been applied
in previous years to support both Children and Family Services and
Community Care and Health over and above the allocated base
budgets.
|
SOCIAL SERVICES - USE OF
RESERVES
2003/04 to 2006/07
|
2006/07
£’000
|
2005/06
£’000
|
2004/05
£’000
|
2003/04
£’000
|
|
Amended Original Budget
|
38,673
|
33,870
|
31,549
|
31,262
|
|
Actual (Projected Outturn
06/07)
|
43,655
|
39,062
|
25,057
|
33,489
|
|
Expenditure in excess of Base
Budget
|
4,982
|
5,192
|
3,508
|
2,227
|
Members agreed that a “root and branch
review” of Social Services was required and that statutory
obligations must be maintained. In relation to efficiency
savings the officers present advised that all Departments had been
requested to make 1% efficiency savings but that it was for Members
to consider the allocation of resources and prioritise
accordingly. In respect of “Making the Connections” the
officer advised that various Departments of the Council were
working closely in dealing with this item particularly in
procurement where they were working with other local authorities
for joint working arrangements to be established.
Members questioned the progress that
had been made to date by the Chief Executive in addressing the
overspend of Social Services. The Director of Community
Services advised that the Chief Executive was in the process of
working with the SOLACE consultant and that workshops had been
arranged with officers within the Social Services Department which
were due to commence by the end of the week. Members also
requested a list of consultants used by the Social Services
Department and the costs incurred by over the last year which
the Director replied he would forward to all Members of the
Committee and which would be available for the Scrutiny Committee
Corporate Resources Task and Finish Group on the use of consultants
throughout the Council.
In relation to foster carers Members
were advised that a successful campaign had been undertaken during
the summer months although as there was a prescribed process it
could take a considerable amount of time to come to
fruition.
In respect of the sale of assets,
Members also raised concerns in relation to the fact that once
assets were sold there would be nothing left to
consider.
Reference was made to paragraph 11 of
the report which referred to grants for projects and stated that
before any project or initiative was to be met either wholly or
partly by way of a grant in order to proceed an exit strategy had
to be approved. Members queried if exits strategies were in
place for all grant funded projects and the Director responded by
advising that there was work that was being undertaken to ensure
that a number of exits strategies were in place. However he
reported that there was currently no flexibility in the budget to
map out exit strategies for all organisations.
In consideration of the
recommendations in the report the Scrutiny Committee
RECOMMENDED - T H A T it was difficult
to provide any substantiated comments since the outcome of the
Social Services Action Plan was not known and that the minutes of
the debate at Committee should be forwarded to Corporate Resources
and Cabinet for their consideration.
INITIAL CAPITAL PROGRAMME PROPOSALS
2007/08 (DFICTP) -
The report was submitted for
consultation on the initial capital proposals for 2007/08 and
Committee was advised of the progress on the 2006/07 capital
programme for the period ended 31st October, 2006 (as
detailed at Appendix A to the report). In respect of the
capital programme for 2007/08 on 25th October, 2006 the
Welsh Assembly Government announced the provision 2007/08 General
Capital Funding. The provisional allocation for 2007/08 was
£8,175,000 which was a £297,000 increase over the current
year. The final settlement was expected to be announced in
December 2006.
The Major Repairs Allowance which was
the grant that provided capital funding to the Housing Revenue
Account had not yet been announced by WAG. On 6th
September, 2006, Cabinet, under Minute No. C2615 approved the use
of the 2007/08 MRA for schemes totalling £850,000. Any
further proposals for 2007/08 HRA capital programme would be
reported at a later date. It was highlighted that at the year
end any unspent MRA could be carried forward into the new year
subject to approval from the Welsh Assembly Government. To
date, at the end of 2005/06 a grant of £2.8 million remained
unspent and approval to carry forward this balance had not yet been
received but Members would be advised of the outcome via future
reports.
Appendix B to the report detailed the
indicative 2007/08 Community Wellbeing and Safety capital programme
and an indicative asset renewal budget of £150,000 had been
included for Social Services which constituted an unearmarked
provision. In addition to the capital bids that were shown in
Appendix B and Appendix C to the report also included capital bids
received but had not been put forward for inclusion in the 2007/08
programme. The Corporate Asset Management Group had
prioritised schemes that had fallen within their remit and the
method of prioritisation was detailed in the authorities Capital
Investment Strategy.
|
Priority Level
|
Criteria
|
|
1
|
Health and Safety
Legislation
|
|
2
|
Other Legislation/Statutory
requirement
|
|
3
|
Sufficiency; Corporate Plan; Economic
Sense
|
|
4
|
Condition; Suitability
|
|
5
|
Welsh Assembly Government
objectives
|
|
6
|
Low Priority
|
However, due to the shortage of
capital funding only Priority 1 and 2 schemes had been included in
the indicative capital programme for 2007/08. The bids were
presented to Scrutiny Committee for consultation and comments were
requested to be forwarded to Corporate Resources Scrutiny Committee
as the lead Committee who would then report to
Cabinet.
Members raised concern as to the
“build up” of the MRA which remained unspent. They were
concerned that the Welsh Assembly Government may not agree to carry
forward the balance and that many residents within the Vale of
Glamorgan were currently frustrated in that their homes were not
being kept up to standard. Although they were advised that
there was a lack of staff provision to carry out some of the
schemes, Members considered that the increase in the underspend was
a matter for concern and that it was too high a risk that the
Council was considering taking. Members also raised concerns
in relation to the Harbour View project and the security costs that
were required at the site. The loss of revenue in respect of
rent, and the costs of securing the site were in their view
significant and the Director was requested to provide a detailed
breakdown of the costs to date, for all Members.
Members concerns in respect of this
matter and in relation to accommodation at Bryneithen which were of
a Part II nature were agreed to be considered at a later
stage in the agenda.
In respect of Appendix B to the report
and the reference made to the adult respite care/EMI beds provision
of £500,000 Members were advised that a feasibility study was being
undertaken in association with the Local Health Board and Cardiff
and the Vale Trust in respect of the future use of EMI
services. Members were also advised that there was a growing
demand for EMI services and support for respite care provision for
families responsible for clients with EMI needs and a report would
be presented to Members in due course on the matter.
Reference was also made to a Telecare
strategy and Members were advised that a report would be presented
early in the new year which would advise if the Social Services
Department had been successful in a bid to WAG for a
grant.
RECOMMENDED -
(1) T H A T the
information as requested above from the Director of Community
Services be forwarded to all Members as soon as
possible.
(2) T H A T the
Committee expresses its concerns at the level of MRA grant which
remained unspent and believed the underlying problems were the
staffing levels in the Housing Department.
(3) T H A T a report be
presented to a future meeting of the Committee to identify how the
Department/Council proposed to spend the MRA.
(4) T H A T the
recommendations and the details of the discussions by the Committee
be forwarded to the Scrutiny Committee (Corporate Resources) for
consideration and to Cabinet.
·
Reference from Scrutiny Committee (Economy and
Environment): 28th November, 2006
INITIAL REVENUE BUDGET PROPOSALS
2007/08 (DFICTP) –
The Council’s budget was determined
largely by the Revenue Support Grant (RSG) set by the WAG, the
provisional settlement having been announced in late October, 2006.
SSA (Standing Spending Assessment) represented WAG’s view of the
resources needed and its primary use was to allocate RSG to local
authorities. For 2007/08, this Council’s provisional SSA had
been notified as £181,045,000, a headline increase of 5.8% over the
unadjusted 2006/07 figure. The Council had been provisionally
advised that, for 2007/08, it would receive from RSG of
£107,041,000 and Non-Domestic Rates (NDR) of £29,117,000.
Together, those sums constituted the Council’s Aggregate External
Finance (AEF) and represented an increase of 5.2% over that
received for 2006/07 and was net of an assumed 1% efficiency
saving. WAG had also announced that the Council could
provisionally continue to receive a Deprivation Grant of only
£167,000 and a Performance Grant of £1,239,000. Confirmation
of the continuation and/or amounts receivable in the form of other
specific and special grants had yet to be received.
As regards the revised estimates for
2006/07, details were submitted of the necessary amendments to the
original estimate – which related to asset rents and recharges – it
being noted that there would be no overall effect on the net budget
of the Council. It was also noted that the anticipated
deficit on Leisure Management of £150,000 and on Building
Maintenance Trading Account) of £150,000 would be offset by an
underspend within the Directorate.
Cabinet had approved the Budget
Strategy and Timetable for 2007/08 in July, 2006 as part of the
2006/07 – 2009/10 Medium Term Financial Plan (Min. No.
C2575). In brief, that strategy required services to
establish a baseline by preparing initial revenue budgets for next
year based on the cost of providing the current level of service
and approved policy decisions. Attention was also drawn
therein to the potential impact of increases to budgets on the
Council’s freedom to allocate resources to priorities during the
following budget cycle. Further, since the eventual level of
RSG settlement would be influenced by WAG expectations for
efficiency savings, services had been asked to identify any
burgeoning revenue cost pressures. A summary of the overall
base budget for 2007/08 was appended to the report.
It was reported that inflation
amounted to £0.869m. of which £244,000 related to pay awards and
£625,000 for general price increases. Committed growth was
£0.257m. made up as follows:
- Economic Development and Leisure – loss of income to
the Council resulting from the sale of Vale Workshops (£102,000)
and the cost of accommodation at the Town Hall/Library
(£5,000)
- Visible Services - £150,000 for landfill tax
costs.
A list of 2007/08 cost pressures as
identified by Services amounting to almost £1.6m. was appended to
the report. The view was expressed that it would be useful to
know the views of the Director in relation to those cost pressures
if any prioritisation of need was to be undertaken. Reference
was made, nevertheless, to the desirability of ensuring funding for
the following matters within the Planning and Transportation
Division:
· £73k.
-
staffing costs required as part of the Development
Control
restructure and lost income;
· £60k.
-
to ensure compliance with statutory obligations
(schools
transport)
and the procurement of better buses;
· £5k.
-
to facilitate the appointment of consultants to
undertake
a survey
of Old Place, Llantwit Major to secure 80% grant from
CADW.
Further reports were requested in
respect of the following matters identified in the analysis of
reserves, namely the Vale of Glamorgan Business Club and the EER
Events Fund.
RECOMMENDED - T H A T the initial
revenue budget proposals be noted and the above comments referred
to the Scrutiny Committee (Corporate Resources) and thence, where
deemed appropriate, to Cabinet.”
INITIAL CAPITAL PROGRAMME PROPOSALS
2007/08 (DFICTP) -
Committee was made aware of the
progress on the 2006/07 Capital Programme for the period ended
31st October, 2006 and received the initial capital
proposals for 2007/08. As regards the 2006/07 Capital
Programme, it was proposed that no reduction be made to the budget
in respect of the Marcross cesspits scheme (which currently
remained contractually uncommitted).
Attention then focused on the 2007/08
Capital Programme. WAG had announced the provisional allocation for
2007/08 as £8,175,000 which represented a 3.77% increase over the
current year. In addition to WAG funding, the Council would
finance part of the Capital programme from its own resources –
further details of which were contained in the report. The
indicative 2007/08 Economy and Environment Capital Programme was
shown as Appendix B to the report. An indicative asset
renewal budget of £800,000 had been included for Visible Services
and £150,000 for Leisure Services, which constituted an
un-earmarked general provision. It was noted that the current
budget of £41,000 included in the current year’s budget for
ventilation works at Barry Leisure Centre was insufficient for the
purpose and that it was proposed, therefore, that £49,000 be
allocated in 2007/08 from the Leisure Asset Renewal
budget.
Due to the shortage of capital
funding, only those schemes identified as priority 1and 2 schemes
by the Corporate Asset Management Group had been included in the
indicative capital programme. Included in the new bids were
works that were required of previous planning applications.
To avoid committing the Council to future expenditure, it was
proposed that bids for all schemes include all costs. It was
proposed that those bids which referred to schemes which would be
100% grant funded (namely, Central Station Land Purchase - £
1,400,000 and Safety Cameras - £50,000) be not included in the
programme at this stage. It was further proposed that the
following two bids which related to the required match funding for
applications submitted to WAG for Physical Regeneration Fund (PRF)
grant be included in the programme if the bids were successful,
namely £757,000 for the Chapter Arts Centre 2:Enveloping of the
Hydraulic Pumphouse scheme and £104,000 for the Penarth Town Centre
Regeneration Action Plan scheme.
Consideration then focused on the
indicative Capital Programme (Appendix B) and discussion ensued on
the “unsuccessful” capital bids as listed in Appendix C.
Particular reference was made to the
·
Priority 6 awarded to
(i) the pedestrian access works at
Cwm Colhuw, Llantwit Major; and
(ii) the installation of a customer
information screen at Dingle Road
Station, Penarth;
· Priority 4 awarded
to
(i) highways works at Llantwit
Major;
(ii) the refurbishment of public conveniences (in
respect of the need to
make
them DDA compliant); and
(iii) the Cross Common Road bridge
replacement;
· Priority 3 awarded
to
(i) the installation of Pay & Display
machines at Barry Island car park; and
(ii) the erection of either a large or medium
size wind turbine at the Alps.
In respect of the Pay & Display
machines, attention was drawn to the estimated pay back time of
just two years and, in respect of the wind turbine scheme, the
estimated revenue savings that would accrue following the initial
capital outlay. As regards the highways work scheme at
Llantwit Major, it was noted that this Committee had requested its
re-prioritisation to Priority 1 in the previous year’s budget round
on the grounds of health and safety (Minute No. 609); the
Committee, once again, considered that this scheme should be
afforded Priority 1. Attention was drawn to the potential
high risk to the Council of failure to undertake the scheme to
refurbish public conveniences to make them DDA compliant.
Disappointment was expressed that the Cross Common Road bridge
replacement scheme would not be progressed in the current year
given the unsatisfactory state of the structure. In order to
expedite the installation of a customer information screen at the
Dingle Road Station, it was agreed that Arriva Trains Wales should
be urged to indicate the level of their financial contribution
towards the scheme in order that consideration could be given at a
later stage to the allocation required to be made by the
Council. Consideration was then given to ways of achieving
the pedestrian access works at Cwm Colhuw given the level of local
concern and the potential benefits of the scheme to encouraging
tourism. It was accepted that the costs as put forward in the
bid had been difficult to quantify since it would first be
necessary to undertake investigative works in order to identify the
most effective solution. The suggestion that funding be found
initially for just the investigative works was subsequently
accepted.
After further discussion, it
was
RECOMMENDED -
(1) T H A T the Capital
Monitoring report for the period ended 31st October,
2006, be noted.
(2) T H A T the
highways work scheme at Llantwit Major be re-prioritised to
Priority 1 on the grounds of health and safety.
(3) T H A T the
Director of Environmental and Economic Regeneration ascertain the
level of funding to be contributed by Arriva Trains Wales towards
the installation of a customer information screen at Dingle Road
Station in order that further consideration could be given at a
later date to the level of funding required by this Council to
ensure the implementation of the scheme.
(4) T H A T a further
report relating to the schemes in respect of the installation of a
wind turbine at the Alps, and the cost effectiveness of the
proposals, be submitted to a future meeting.
(5) T H A T funding to
commission consultants with the necessary experience to undertake
an investigation into the pedestrian access works scheme at Cwm
Colhuw be made available from the Asset Renewal
Budget.
(6) T H A T the above
recommendations be referred to the Scrutiny Committee (Corporate
Resources) and thence, where deemed appropriate, to
Cabinet.
(Note: Councillor A.J. Readman spoke
on the above matter with the consent of the
Committee).”
· Reference from
Scrutiny Committee (Lifelong Learning): 4th
December,
2006
SCHOOL BUDGETS 2006/07 (DLD)
-
The following members of the School
Budget Forum were in attendance for this item:
Mrs. F.
Hopkins
-
Headteacher, St. Athan Primary School
Mr. B.
Brayford
-
Headteacher, Ashgrove School
Mr. M.
Clinch
-
Headteacher, St. Richard Gwyn School
Mrs. J.
Hayward
-
Barry Island Primary School.
Members were advised of the financial
state of school budgets in the current 2006/07 financial year, as a
precursor to the forthcoming budget process for
2007/08.
Members were advised that in terms of
overall education and schools’ expenditure, the year on year
percentage increases for the Vale of Glamorgan schools in the last
3 years had been above average and within the top few authorities
across Wales. In 2006/07, the net increase in education
funding for the Vale was 6.2%. This was the third highest in
Wales and compared to the Welsh average of 4.6%. The Vale of
Glamorgan had always been a consistently high delegator of
resources to schools. In 2006/07, the Vale of Glamorgan
delegated at a proportional rate of 81.3% which was the equal
highest in Wales.
Despite the relatively high
proportional budget increase described above, in actual cash terms,
schools in the Vale of Glamorgan were relatively poorly off in
comparison to schools in other local authority areas and that Vale
secondary schools continued to be the lowest funded secondary
schools in Wales. In recent years the Council had
consistently spent at around the level of education SSA.
However, the level of education SSA and indeed the total Council
SSA for the Vale of Glamorgan, was amongst the lowest in
Wales.
In 2006/07, the primary school funding
per pupil of £2,938 was 3% below the Welsh average of £3,030 (i.e.
£92 per pupil) and the secondary school funding per pupil of
£3,438.00 was 6% below the Welsh average of £3,671 (i.e. £233 per
pupil). This had informed the budget strategy as developed by
the School Budget Forum. It was also noted that central
education costs were the lowest in Wales, some £290 per pupil below
the Welsh Average.
An analysis of school balances was
provided at Appendix 3 to the report. As at the end of the
2005/06 financial year, the aggregate primary school balances stood
at £1.726m. There were five schools with deficits of greater
than £10,000 but less than £30,000.
In the secondary sector, the aggregate
school balances were £0.169m. There were three schools with
deficits between £30,000 and £73,000. Two of the special
schools had deficits of £22,000 and £39,000.
For the 2006/07 financial year, three
primary schools had approved deficits of between £20,000 and
£70,000. The deficits were all caused by localised pupil
number decreases, and all supported by robust action plans for
repayment. However, although not in deficit, a number of
primary schools struggled to maintain within budget. In
contrast, there were a number of primary schools with significant
surplus balances as at the beginning of the 2006/07 financial
year. The situation was being closely monitored by the School
Budget Forum, and it had been identified that schools with surplus
balances had £0.803m. of planned committed
expenditure.
For the secondary sector in 2006/07,
three secondary schools had approved deficits of £150,000 in two
cases and £176,000 in the other. These were all supported by
robust action plans. The deficits for two of the schools
included significant expenditure for new ICT
infrastructure.
In 2006/07, the special schools had a
projected combined deficit of around £30,000. There were
complex requirements and legislation surrounding special schools,
and the LEA was actively working with the special schools to reduce
this deficit. Specific emphasis was being placed on the
levels of extra - district recharges.
At an aggregate level, it was reported
that schools budgets were financially well managed. However,
by the end of the 2006/07 financial year, it was projected that the
school balances could drop to around £1.1m. in comparison to the
total aggregate of £1.858m. at the beginning of the year.
This was based upon current levels of operational spending.
However, this excluded the planned committed expenditure of
£0.803m. referred to above. These estimates were after
allowing for the one off local efficiency grant of £435,000 in
2006/07 financial year. However, it was difficult to
precisely project year-end school balances because financial
uncertainty over future budget settlements may cause schools to
delay the delivery of planned commitments. Such uncertainty
was a national issue and would be alleviated by the introduction of
three year budgets.
The Budget forum were concerned that
whilst schools had prudently managed their school budgets from the
financial perspective, this had been at the detriment of
educational and curriculum development in schools. The Budget
Forum believed that pupils in the Vale of Glamorgan were being
disadvantaged in comparison with pupils in Wales due to the low
level of funding. The impact of this disadvantage would
increase as schools in the Vale were unable to fully fund
developments in areas such as ICT, and curriculum development in
early years and the secondary sector. For the 2007/08
financial year, schools needed £3.607m. to cover pay related
increases, inflation and other unavoidable costs. In
addition, the School Budget Forum had agreed a strategy whereby if
resources permit, then the gap with the Welsh average would be
closed for secondary and primary schools in a proportional ratio of
2:1 to reflect the differing current percentage levels below the
average. The School Budget Forum bid for 2007/08 was to close
the funding gap for primary by 1% and secondary by 2%. This
would require total growth of £0.972m. comprising £0.348m. for the
primary sector and £0.624m. for the secondary sector.
The members of the School Budget forum
were given an opportunity to comment on the detail of the
report.
Mr. Clinch referred to the variance
between the Average All-Wales funding per pupil and the average
funding per pupil in the Vale of Glamorgan of £233 and stated that
in the case of his school, this represented a sum of
£190,000.
Mr. Clinch stated that, over the
years, headteachers had become adept at making ends meet. The
most important consideration was what had to be foregone in order
that the budget could be balanced.
Expenditure on ICT was ‘insatiable’,
and was a huge issue in ensuring the budget balanced.
The Workload Agreement had huge
implications, and many schools were finding it difficult to make
ends meet.
Mr. Clinch recognised that the Council
had made Education a high priority.
Mr. Brayford supported Mr. Clinch’s
comments. There were complex requirements and legislation
surrounding special schools, and the Council was actively working
with the special schools to reduce their deficit. Mr.
Brayford felt that the Council should look closely and critically
at the arrangements for special schools and wondered if the Council
could continue to support three special schools in their current
form.
Mrs. Hopkins expressed concerns
relating to ICT. Up to this year, St. Athan Primary had
possessed only one whiteboard, although two further ones had been
ordered this year.
The power of interactive teaching over
children was phenomenal, but Mrs. Hopkins had been forced to cut
back on IT expenditure.
Regulations coming into effect in 2008
would require a ratio of adults to children. This would
require the adequate levels of finance to ensure that schools met
this statutory requirement and could possibly have massive
implications.
Mr. Clinch also referred to the
phenomenal rate of change that had affected the Education Services
over the past five years and expressed the view that the rate of
change over the next five years would be even greater.
Having heard the comments of the
Headteachers, Members appreciated just how ‘close to the bone’ had
been recent cuts to the service. The report had reflected
what the service needed in order to keep going.
The Director commented on the
budgetary problems within the Council’s Social Services which had
been referred to by Elected Members. The details within the
report, and the comments of the Headteachers had demonstrated that
the Education Service was in no position to solve the financial
problems within Social Services with so many schools operating at a
near deficit level, failure to meet the unavoidable costs in
schools would lead to teaching workforce redundancies.
The Cabinet Member for Education and
Training reminded Members that the Council was spending at SSA for
education, as awarded by WAG. The report before Members had
illustrated the disparity between Welsh and English school
funding. Nevertheless, it was the case that the Vale pupils
were achieving the highest GCSE results in Wales.
RECOMMENDED - T H A T further
consideration of the report and the comments of the members of the
School Budget Forum be made later in the meeting following
consideration of the initial revenue budget proposals for
2007/08.
INITIAL CAPITAL PROGRAMME PROPOSALS
2007/08 (DFICTP) -
Scrutiny Committee were advised of the
progress on the 2006/07 capital programme for the period ended
31st October, 2006 and considered the initial capital
proposals for 2007/08.
Appendix A to the report detailed
progress on the capital programme as at 31st October,
2006.
Council on 12th October,
2005 had given Cabinet the authority to withdraw a budget from the
capital programme if the scheme was not contractually committed
within 18 months of being included in the capital programme.
If this happened, a new bid would have to be submitted as part of
the coming years budget setting process to reintroduce the scheme
into the capital programme. The following schemes remained
contractually uncommitted 18 months after approval and a proposal
for the way forward had been made against each
scheme.
Accommodation for Cogan Hall Farm -
this budget had been allocated to accommodate an increase in pupil
numbers, as a result of the Cogan Hall Farm housing
development. The required work, at various schools, had now
been identified and would commence during the Easter and summer
holidays 2007. It had been requested that the £150,000 be
carried forward into 2007/08.
Nursery Units - a total budget of
£650,000 had been allocated for a three year period, commencing in
2005/06, for a review of nursery units. There had been a
range of technical difficulties and the projects were now due to
commence in 2007/08. The budget was required to enable the
Council to provide the necessary school places and it had therefore
been requested that the budget be carried forward to future
years.
With regard to the 2007/08 capital
programme, the Welsh Assembly Government had announced the
provisional 2007/08 General Capital Funding. The provisional
allocation for 2007/08 was £8,175,000, which was a £297,000
increase over the current year.
In addition to funding from the Welsh
Assembly Government, the Council would finance part of the capital
programme from its own resources e.g. Receipts and
Reserves.
Appendix B to the report detailed the
indicative 2007/08 Lifelong Learning Capital
Programme.
An indicative asset renewal budget of
£800,000 had been included for schools. This constituted an
unearmarked general provision. In addition, specific bids had
been received from Lifelong Learning, which had been classed as
asset renewal. Due to the inclusion of a Miscellaneous
Buildings Asset Renewal Budget in Policy, these schemes had been
shown in Appendix C to the report as an unsuccessful
bid.
Two schemes were currently planned to
be funded from next years Asset Renewal Budget. Cabinet had
been requested to approve the allocation of the budget for these
schemes at this early stage to enable work to proceed within the
planned timescale.
· St. Athan
Primary Cladding - Phase 2 - it had been proposed that
this
scheme be funded from the Education Asset Renewal/School
Buildings
Improvement Grant budget. Design work would be funded from
this
years programme and tender acceptance was planned for January
2007.
This would enable works to commence during the Easter
holidays. It had
been requested that £302,000 be approved from the 2007/08
budget
and £800,000 from 2008/09, to allow the scheme to be
undertaken
within the planning timetable.
· Gwaen y
Nant/Oakfield Roofing - it had been proposed that this
scheme
be funded from the Education Asset Renewal/School
Buildings
Improvement Grant budget. Design work would commence this
year and
tender
acceptance was planned for March 2007. This would
enable
works to commence during the summer holidays. It had been
requested
that £200,000 be approved from the 2007/08 budget and £5,000
from
2008/09, to allow the scheme to be undertaken within the
planned
timetable.
In addition to the capital bids shown
in Appendix B to the report, Appendix C included capital bids
received that had not been put forward for inclusion in the 2007/08
programme. The Corporate Asset Management Group had
prioritised schemes that fell within their
remit.
Council on 12th October,
2005, had approved the School Investment Strategy. It
approved that the School Development Budget be increased by
£500,000 in 2007/08 and £1 million from 2008/09 onwards.
These budgets changes had been included in Appendix B to the
report. The Council also approved that the £9 million one-off
School Building Improvement Grant of £1.4 million of existing
useable capital receipts be utilised for the School Investment
Strategy. These budgets had not been included in Appendix B
to the report. Approval had also been given for capital
receipts generated by schools to be ringfenced for the investment
strategy up to £6.5 million and that unsupported borrowing of up to
£7.3 million could be undertaken. MACE were the successful
consultants who had been appointed as external technical advisors
and a report had been presented to Cabinet on 20th
September, 2006 outlining their recommendations. The
consultants were undertaking further work, which was due for
completion by April 2007 and the capital programme would then be
amended.
RECOMMENDED - T H A T the initial
budget proposals be noted.
INITIAL REVENUE BUDGET PROPOSALS
2007/08 (DFICTP) -
Committee considered the initial
revenue budget proposals for 2007/08 for those services which
formed part of the Committees remit.
The Councils budget was determined
largely by the Revenue Support Grant (RSG) settlement set by the
Welsh Assembly Government. A provisional settlement had been
announced on 25th October, 2006 with details of the
final settlement expected in late November/early
December.
The Council was required, under
statute, to fix the level of Council Tax for 2007/2008 by
11th March, 2007 and, in order to do so, would have to
agree a balanced revenue budget by the same date. To be in a
position to meet the statutory deadlines and the requirements for
consultation as set out in the Council’s Constitution, much of the
work on quantifying the resource requirements of individual
services needed to be carried out before the final RSG settlement
was notified to the Council.
For 2007/08, the Council’s provisional
standard spending assessment had been notified as £181,045,000, a
headline increase of 5.8% over the unadjusted 2006/07
figure.
The Council had been provisionally
advised that for 2007/08, it would receive from WAG, RSG of
£107,041,000 and Non-Domestic Rates of £29,117,000. Together
these sums constituted the Council’s aggregate external finance
which represented an increase of 5.2% over that received for
2006/07 and was not of an assumed 1% efficiency
saving.
WAG had announced that the Council
would provisionally continue to receive a Deprivation Grant of
£167,000 and a Performance Grant of £1,239,000. These were
both unhypothocated grants (i.e. they were not earmarked for
particular services).
The amended original budget was
compared with the estimated outturn for 2006/07 as shown
below:
|
Lifelong Learning
|
2006/07
Amended
Original
|
2006/07
Estimated
Outturn
|
Variance
(+)Favourable
(-)
Adverse
|
|
|
|
|
|
|
Education and Schools
|
78,832
|
78,712
|
(+)
120
|
|
Libraries
|
2,234
|
2,501
|
(-)
267
|
|
Lifelong Learning
|
1,878
|
1,998
|
(-)
120
|
|
Human Resources
|
0
|
0
|
0
|
Learning and Development - a saving of
£12,000 on Education and Schools arising from a lower than expected
inflation increase on the renewed large contracts such as school
transport together with staff vacancies within the Education
Department had been used to off-set the overspending on Lifelong
Learning Job Shop Extra (£10,000) and the Training and Heritage
Skills Centre (£110,000). The adverse variance on Libraries
(£267,000) was due to the costs of the new library.
Cabinet had approved the budget
strategy and timetable for 2007/08 on 19th July,
2006.
The budget strategy for 2007/08 had
outlined that:
· In order to
establish a baseline, services should prepare initial
revenue
budgets for next year based on the cost of providing the current
level of
service and approved policy decisions. This meant the
cost of price
increases and pay awards should be included.
· Increases to
budgets approved during the course of a financial year
could
restrict the freedom of the Council to allocate its resources
to priorities
during the following budget cycle when it was aware of all
the
competing demands.
Consequently:
- supplementary
estimates would only increase the base budget if the
Council had given specific approval to this effect. Increases
met by
virement within a year would not be treated as committed
growth
- Directors should find
the cost of increments and staff changes from
their base budget unless the relevant specific approval had
been
given for additional funding
- the effect of
replacing grant from outside bodies that had
discontinued would not be treated as committed growth.
In
addition, before any project or initiative that was to be met
either
wholly or partly by way of grant may proceed the exit
strategy
must be approved
- certain items of
unavoidable committed growth would continue and
these include the effect of interest changes and the
financing costs
of the capital programme, increases in taxes, increases in
levies and
precepts charged by outside bodies and changes to
Housing
Benefits net expenditure.
- services would be
expected to identify and achieve recurrent
efficiency savings equivalent to 1% of their budget.
· The eventual
level of Revenue Support Grant settlement that made up
the
bulk of the Council’s funding would be influenced by
WAG
expectations for efficiency savings in local government as set out
in their
“Making
the Connections” document. As such, it was envisaged that
the
costs
of service development would need to be met from within
the
respective
services from the efficiency savings that they identified:
in
addition works may need to be prioritised within a service to meet
any
priority demands. Services had therefore been asked to
identify any
burgeoning revenue cost pressures.
A summary of the overall base budget
for 2007/08 was attached at Appendix 1 to the report. This
had been arrived at by adjusting the 2006/07 budget for items such
as inflation.
Inflation amounted to £0.532 million
of which £325,000 related to pay awards and £207,000 for general
price increases.
Committed growth of £0.509 million
related to the following:
·
Libraries
Cost of accommodation at Town
Hall/Library - £509,000.
A list of 2007/08 costs pressures as
identified by the service was attached at Appendix 2 to the
report.
Having considered the report, and the
earlier comments of the members of the School Budget Forum, in
relation to the report on School Budgets 2006/07. it
was
RECOMMENDED -
(1) T H A T the
contents of the report be noted with concern.
(2) T H A T the
comments of the members of the School Budget Forum be
endorsed.
(3) T H A T Scrutiny
Committee (Corporate Resources) and Cabinet be provided with a copy
of the School Budget report prepared by the Director to reflect the
views of the School Budget Forum and advised of this Committee’s
concern at the need for the Council to provide the Education
Service with adequate resources as part of the 2007/08 budget
settlement.
(4) T H A T the Budget
Forum strategy to close the gap with the Welsh Average, should
resources permit, for secondary and primary schools be
supported.
595 INITIAL
HOUSING REVENUE ACCOUNT BUDGET PROPOSALS 2007/08 AND REVISED BUDGET
2006/07 (DCS AND DFICTP) -
Details were submitted of the revised
estimates for 2006/07, the base budget for 2007/08, and the
proposed increases in charges. The proposed budget for
2007/08, as appended to the report, was based at this stage on a
4.6% rent increase. It was acknowledged that details would
need to be updated once the final Subsidy Determination had been
issued by the Welsh Assembly Government (WAG).
It was noted that charges for rent and other
services provided by the Housing Division were reviewed annually
and these would be subject to a future report once consultants had
completed their work on a Rent Review. For next year, annual
rent levels would continue to be linked to pre 2005/06 Council Tax
bands.
RECOMMENDED -
(1) T H A
T the initial Housing Revenue Account budget proposals together
with the views of the Scrutiny Committee (Community Wellbeing and
Safety) be endorsed and forwarded to Cabinet, in particular, the
need to consider apportionment the associated costs of security at
Harbour View, Penarth (£80,000) in line with capital receipts
received between the HRA and General Fund and that it also be noted
that the suggested rent and other services increase would be
subject to a further report as soon as the information became
available from the WAG.
(2) T H A
T this Scrutiny Committee receive a further report in respect of
the outcome of the consultant’s findings in relation to rent
review.
596
INITIAL CAPITAL PROGRAMME PROPOSALS 2007/08 (DFICTP) -
Details of the progress on the 2006/07
Programme for the period 1st April, 2006 to
31st October, 2006 and the initial capital proposals for
2007/08 were submitted. There were anticipated underspends on
the following 2006/07 capital schemes and that those projected
underspends would be carried forward into future years:
Accommodation for Cogan Hall Farm and Nursery Units. With
regard to the scheme relating to cesspits at Marcross it was noted
that this scheme had not progressed as there were a number of
outstanding legal issues to be resolved. It was therefore
proposed that no reduction be made to the budget at this
stage.
The Major Repairs Allowance (MRA) which was a
grant that provided capital funding to the Housing Revenue Account
(HRA) had not yet been announced by the WAG. Cabinet on
6th September, 2006 had approved the use of the 2007/08
MRA for schemes totalling £850,000. Any further proposals for
2007/08’s HRA capital programme would be reported at a later
date. At year-end, any underspend in the MRA could be carried
forward subject to the approval of the WAG. The total
underspend for 2005/06 of the MRA grant was £2.8 million.
Approval of the carrying forward of balances relating to the MRA
would be subject to a future report when the views of the WAG were
known.
Consideration then focussed on the 2007/08
Capital Programme. The provisional allocation for 2007/08 was
£8,175,000 which was £297,000 (3.77%) increase over the current
year. Details of the indicative 2007/08 Capital Programme
were appended to the report and showed the allocations already
approved by Council and the slippage requests mentioned above,
together with indicative asset renewal budgets as follows:
· Education
£800,000
· Social
Services
£150,000
· Visible
Services
£800,000
· Leisure
Services
£150,000
· Miscellaneous
Buildings £200,000.
As in previous years due to the shortage of
capital funding, only Priority 1 and 2 schemes, assessed in
accordance with the criteria detailed in the report, had been
included in the indicative capital programme.
Having considered the initial budget proposals
contained in the report, the comments of the other Scrutiny
Committees referred to above, and the views expressed at this
meeting, it was
RECOMMENDED -
(1) T H A
T the Initial Capital Programme Proposals for 2007/08 be noted,
subject to recommendations (2)-(4) below and referred to
Cabinet.
(2) T H A
T the recommendations of the Scrutiny Committee (Community
Wellbeing and Safety) be endorsed.
(3) T H A
T the recommendations of the Scrutiny Committee (Economy and
Environment) be endorsed with this Scrutiny Committee expressing
concern that Cabinet had not accepted the re-prioritisation of the
Highway Works Scheme at Llantwit Major to Priority 1 as part of
last year’s budget consultation exercise.
(4) T H A
T the recommendations of the Scrutiny Committee (Lifelong Learning)
be noted.
597 INITIAL REVENUE BUDGET
PROPOSALS 2007/08 (DFICTP) -
The Council had been provisionally advised
that for 2007/08 it would receive from the WAG Revenue Support
Grant (RSG) of £107,041,000 and Non-Domestic Rates (NDR) of
£29,117,000. Together those sums constituted the Council’s
Aggregate External Finance (AEF) and represented an increase of
5.2% over that received for 2006/07 and was net of an assumed 1%
efficiency saving. It was noted that the provisional
settlement included additional resources for new responsibilities
including Smoke-Free Legislation, Schools Councils and EU food
hygiene and these amounts were detailed in the report. WAG
had also announced that the Council would provisionally continue to
receive a Deprivation Grant of £167,000 and a Performance Grant of
£1,239,000, both of which were unhypothocated grants.
Confirmation of the continuation and/or amounts receivable in the
form of other specific and special grants e.g. Local Authority
Business Growth Incentive (LABGI) Grant had yet to be received.
Consideration was also given to the amended
original budget and the estimated outturn for 2006/07. The
overall deficit of £4,664,000 would need to be funded from
reserves, in addition to the £2,250,000 required to balance the
2006/07 budget. General Reserves as at 1st April,
2006 amounted to £6.4 million and consequently as a prudent minimum
level of the General Reserve was £4 million, some specific reserves
would need to be “unearmarked”.
The Base Budget had been arrived at by
adjusting the 2006/07 budget for items such as inflation, and
unavoidable growth. Inflation amounted to £4.3 million
(excluding schools) of which £1.5 million related to pay awards and
£2.8 million for general price increases. Unavoidable growth
totalled £4.324 million and related to the following items:
· Learning and
Development - cost of accommodation at Town Hall/Library
-
£509,000
· Environmental
and Economic Regeneration - Economic Development and
Leisure - Loss of income to the Council resultant from the sale of
Vale Workshops
-
£102,000 and costs of Accommodation at Town Hall/Library -
£5,000
· Visible
Services - £150,000 for landfill tax costs
· General Policy
- £2,250,000 use of balances during the 2006/07 budget
process;
reduction in interest receivable of £320,000 as a direct
result of the use of
balances; £200,000 estimated cost to the General Fund of the
interest due to the
Project Fund following the estimated advance; £300,000
increase cost of funding
the
Capital Programme; £390,000 for ICT software licences and £98,000
for cost
of
accommodation at Town Hall/Library.
The base budget for 2007/08 based on the
provisional Revenue Support Grant settlement, and assuming no
increase in Council Tax income, the total resources for 2007/08 was
£1.632 million less than the requirements set out in the initial
2007/08 base budget and did not take into account any of the
£16.847 million of cost pressures.
RECOMMENDED -
(1) T H A
T this Scrutiny Committee notes the Initial Revenue Budget
Proposals for 2007/08, subject to recommendation (2) - (6) below
and be referred to Cabinet.
(2) T H A
T the recommendation of the Scrutiny Committee (Community Wellbeing
and Safety) be noted, it being acknowledged by this Scrutiny
Committee that it had been difficult to make definitive
recommendations given the review of the Social Services Action Plan
had not to date been completed.
(3) T H A
T the recommendation of the Scrutiny Committee (Economy and
Environment) be noted.
(4) T H A
T the comments of the School Budget Forum be noted and referred to
Cabinet for consideration.
(5) T H A
T the recommendations of the Scrutiny Committee (Lifelong Learning)
be endorsed.
(6) T H A
T this Scrutiny Committee receive a post implementation review
report on the Town Hall / Library project to the next
meeting. The report to provide a detailed financial breakdown
of revenue costs for running the facility which totalled
£509,000.