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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED: That the minutes of the meeting of the Finance and Resources Overview and Scrutiny Committee held on 4 December 2023 be approved and signed as a correct record.
RESOLVED: That the minutes of the informal meeting of the Overview and Scrutiny Chairs and Vice-Chairs held on 4 December 2023 be noted.
RESOLVED: That the minutes of the meeting of the Governance and Audit Committee held on 27 November 2023 be noted.
RESOLVED- That the minutes of the meeting of the Conwy Opportunities Board held on 19 December 2023 be noted.
RESOLVED: That the Forward Plan for the Finance and Resources Overview and Scrutiny Committee be approved.
None.
Councillor Mandy Hawkins declared a personal interest in agenda item 10a (Proposed Capital Programme 2024/2025) in relation to Business Case 11 (Fleet Replacement Programme) as her husband works within the service. Councillor Hawkins would leave the meeting if any specific discussion took place on this business case. Councillor Harry Saville declared a personal and prejudicial interest in agenda item 10b (Local Government Budget 2024/2025) in relation to the Home to School Transport Revenue Business Case (10 (home to school transport – additional demand and business pressure) as his mother in law owns a transport service used by Conwy County Borough Council and his wife is employed by the company. Whilst Councillor Saville has been granted a dispensation to remain in the room whilst any discussions take place, he would leave the meeting if a specific vote took place on the matter.
None.
Decision as recorded
RESOLVED: That the minutes of the meeting of the Finance and Resources Overview and Scrutiny Committee held on 4 December 2023 be approved and signed as a correct record.
The minutes of the Finance and Resources Overview and Scrutiny Committee held on 4 December 2023 were submitted for approval. RESOLVED: That the minutes of the meeting of the Finance and Resources Overview and Scrutiny Committee held on 4 December 2023 be approved and signed as a correct record.
Decision as recorded
RESOLVED: That the minutes of the informal meeting of the Overview and Scrutiny Chairs and Vice-Chairs held on 4 December 2023 be noted.
The minutes of the informal meeting of the Overview and Scrutiny Chairs and Vice-Chairs meeting held on 4 December 2023 were submitted. RESOLVED: That the minutes of the informal meeting of the Overview and Scrutiny Chairs and Vice-Chairs held on 4 December 2023 be noted.
Decision as recorded
RESOLVED: That the minutes of the meeting of the Governance and Audit Committee held on 27 November 2023 be noted.
The minutes of the Governance and Audit Committee meeting held on 27 November 2023 were submitted. RESOLVED: That the minutes of the meeting of the Governance and Audit Committee held on 27 November 2023 be noted.
Decision as recorded
RESOLVED- That the minutes of the meeting of the Conwy Opportunities Board held on 19 December 2023 be noted.
The minutes of the Conwy Opportunities Board held on 19 December 2023 were submitted. RESOLVED- That the minutes of the meeting of the Conwy Opportunities Board held on 19 December 2023 be noted.
None.
Decision as recorded
RESOLVED: That the Forward Plan for the Finance and Resources Overview and Scrutiny Committee be approved.
The Scrutiny and Committee Services Officer presented Members with the individual Forward Work Programme (FWP) for the Finance and Resources Overview and Scrutiny Committee, together with the combined FWP. Members were advised of the following changes: · A report in relation to the development options for Ty Hapus and a report on sickness absence would be presented to the meeting on 5 February, 2024. · Monitoring reports in relation to the Corporate Plan had been scheduled for March and October 2024. · A report on the proposals of the Corporate Plan measures had been scheduled for June 2024. · Following a query, confirmation was being sought as to when the next North Wales Economic Ambition Board update would be presented. RESOLVED: That the Forward Plan for the Finance and Resources Overview and Scrutiny Committee be approved.
The Leader, as the portfolio holder for Finance and Finance Strategy, introduced the proposed Capital Programme for 2024/2025 and the Strategic Director – Finance and Resources highlighted key points from within the report. It was noted that business cases, requesting new capital funding, totalled £42.054m and required Council funding of £31.374m, which was significantly higher than the £6.885m supported in the provisional settlement. Furthermore there were four further amendments to the demand on capital which increased the demand on Council funding by £481,000. Therefore, given the Council’s overall financial position and the current high cost of borrowing, a significantly reduced capital programme was being recommended. In scrutinising the report, Members discussed the following: • The comprehensive report was commended along with the excellent work that was progressing, including the vehicle replacement programme. • It was confirmed that a small amount of capital reserves and receipts were held as a contingency which could cover any potential costs associated with the Mochdre Business Park, subject to their scale. • In respect of business case (BC) 29 (The Empire Hotel, Llandudno) it was suggested that consideration be given to the repair of the Tan yr Ogof Steps which had been closed for 6 years following structural failure as it was a health and safety issue for residents. • It was confirmed that no funding had been allocated within the capital programme in respect of BC 32 (Waste Transfer Station) as further grant funding would be sought. • It was suggested that the Welsh Government allocation for capital funding should not be exceeded and that all other projects be paused until relevant Council strategies, such as the asset management plan, transformation programme (as suggested by the Peer Review) were in place. • It was suggested that joint working with other Councils be explored along with exploring the possibility of leasing as opposed to purchasing vehicles. • In response to concerns raised regarding interest payments associated with Environment, Roads and Facilities (ERF) projects within the capital programme, the Cabinet Member for ERF – Infrastructure confirmed that the business cases were essential and impacted the whole Authority as there was a requirement to protect assets following previous under investment. • In response to concerns raised that BC 15 (Highway Flood Reduction Measures) had not been allocated any funding, the Strategic Director – Finance and Resources advised that funding had been allocated to BC 12 (flood alleviation construction works). • In respect of BC 22 (playground maintenance) it was advised that Shared Prosperity Fund applications from Conwy County Borough Council (CCBC) and some Town and Community Councils had been approved. Further details would be provided to Councillor Anne McCaffrey who had raised the query. • It was confirmed that interest rates relating to Capital Programme projects were met from the corporate budget. • It was confirmed that there was a planned, ongoing programme of work in relation to ash dieback due to ongoing need. The Head of ERF would provide further details in respect of costs to Councillor Andrew Wood who had raised the query. Following the debate, the following amendments to the recommendation were put forward: · That Cabinet consider putting forward Business Case 29 (The Empire Hotel, Llandudno) as part of the Capital Programme for 2024/2025. · That a capital programme that was as per the funding allocation from Welsh Government be recommended for approval, and that all other projects be suspended until a medium term financial strategy, asset management strategy and transformation strategy are in place and results of the public consultation have been received. Following a vote, the above proposals were lost and it was: Recommended to Cabinet That a capital programme of £14.218m, requiring Council funding of £12.136m for 2024/2025 be recommended to Council for approval, which includes a forward commitment of £1.655m (as noted in paragraph 4.8 of Appendix 1 of the report).
The Leader, as the portfolio holder for Finance and Finance Strategy, introduced a report which set out the indicative Local Government Budget 2024/2025 following the announcement of the Local Government Provisional Settlement on 20 December 2023. The Strategic Director – Finance and Resources highlighted key points within the report, which advised that the provisional settlement included an increase in Conwy’s Aggregate External Finance (AEF) of 2% within an average increase of 3.08% across Wales. It was noted that Conwy’s estimated funding shortfall for 2024/2025 was £25.375m and there was still a high degree of uncertainty and risk in the financial landscape as a result of the economic landscape, particularly in relation to pay and price inflation, and the indicative budget. The Chief Executive advised of the following: • The majority of financial pressures related to inflation and pay awards which was out of the control of the Council. • Heads of Service were commended for identifying savings within their service. • Members were encouraged to further promote the public consultation as feedback from residents would help to shape the budget. • All Councils in Wales were facing significant financial difficulty. In scrutinising the report, Members discussed the following: Business Cases • The work of the budget working group, which had representation from all parties was commended. • It was confirmed that work was ongoing in respect of the transformation of service delivery across the Council and that the Chartered Institute of Public Finance and Accountancy (CIPFA) would be involved. • In respect of budget reduction proposals, some proposals had been removed due to the risk of them not being achievable at this stage. • In response to a suggestion that the Emergency Duty Team should move to 7 day working, the Cabinet Members for Integrated Adult and Community Services and Children, Families and Safeguarding advised that whilst statutory obligations were being met, a change in working patterns could be considered in future. • The Cabinet Member for Education congratulated the Education Service for their positive ESTYN inspection and suggested that an update was required from Welsh Government (WG) in respect of funding for the building of new schools. RECOMMENDED TO CABINET: a) That the business cases be supported. Budget Reductions • It was suggested that a 10% budget reduction be considered in respect of schools which would result in a contribution of approximately £6.053m (8%) to the shortfall and £1.513m (2%) to a centrally held reserve which could be utilised for school amalgamation and the prioritisation of Welsh language teaching. • The Cabinet Member for Education felt that a 10% cut for Schools would be unmanageable due to inflationary pressures and a reduction in grant funding. A 10% reduction would equate to approximately £590 per secondary pupil and £410 per primary pupil which could result in safeguarding concerns. This level of cut would also reduce support for pupils with additional learning needs and wellbeing concerns and would contribute to staff pressures and retention issues. • Concerns were raised that a high level of school budget reductions may result in job losses for roles such as cleaners, teaching assistants and kitchen staff. • Concern was raised in respect of the proposed reduction in library opening times as libraries provided a valuable service to vulnerable residents. • It was suggested that Ffit Conwy membership fees be reviewed. • Concerns were raised in respect of proposed changes to nappy collections, as the offer of an additional black bin may result in several additional bins for those who used adult incontinence products and a 4 weekly collection, particularly in the summer months could be unsanitary. • In respect of public conveniences, it was suggested that further information was required regarding which amenities were being considered for closure and the framework used for determination. • Concern was raised in respect of the proposed cuts to the tourist information centre in Llandudno as this was understood to be a cost neutral service. • Whilst it was suggested that consideration should be given to withdrawing from the Welsh Local Government Association (WLGA), the benefits of being part of the association, such as the opportunity to consult with Ministers and the introduction of a funding floor were also highlighted. • In respect of concerns raised regarding the proposed removal of some litter bins and the possible increase in fly tipping, the Head of Environment, Roads and Facilities (ERF) confirmed that any additional costs would be met by ERF if this became an issue. • It was confirmed that income generation opportunities were being explored which included a review of rental income and the potential sale of properties. • It was noted that a further report would be presented to the Finance and Resources Overview and Scrutiny Committee on 19 February 2024, providing details of the budget being recommended to Council on 29 February 2024. This would also include results of the public consultation. The following proposals were put forward but were not seconded: • That Cabinet be invited to consider and report back on a reduction of 10% in school budgets with 8% to be allocated to the overall corporate resource gap and 2% to a centrally held reserve for a schools transformation strategy, to include where appropriate, federation, amalgamation and closure of schools that assists all learners but gives appropriate priority to Welsh language teaching and the specific needs of rural communities. • That the proposal to reduce library opening times is not supported and that a 0.1% Council Tax increase could cover the additional costs. The following amendment to the recommendation (which was seconded) was put forward: · That further information be provided to Members to understand the context of the budget reductions and impact on service delivery, so that a decision can be made on budget reductions, reserves and balances and level of Council Tax. Following the vote, the amendment to the proposal was lost and it was: RECOMMENDED TO CABINET b) That budget reduction proposals put forward by services totalling £7.778m be supported subject to any new information provided. Reserves and Balances • Concern was expressed in relation to the low level of reserves and balances held. • It was suggested that the use of reserves should be considered in order to reduce the level of Council Tax increase. The following amendment to the recommendation (which was seconded) was put forward: • That due to the low level of reserves and balances held by Conwy County Borough Council they should not be further depleted. Following a vote, the above proposal was lost and it was: RECOMMENDED TO CABINET: c) That the use of £407,000 of reserves to fund one-off elements of business cases be approved. d) That the professional advice of the Chief Financial Officer, that it is not appropriate to fund recurring revenue expenditure from reserves and balances be noted. Council Tax · Concern that the lowest proposed increase in Council Tax was 8% which would put additional pressure on residents. · In response to a suggestion that a freeze be put on recruitment to non-frontline jobs, the Leader advised that there had been a significant reduction in staff over the past 10 years and that business support roles were essential in supporting service delivery. · The Leader confirmed that the configuration of Cabinet was his prerogative. · It was suggested that once the level of cuts to schools had been agreed, the required level of Council Tax increase would become apparent. · The Strategic Director – Finance and Resources advised that, at present, if an 11% Council Tax increase was introduced there would still be a resource shortfall of £3.783m. · The Strategic Director also advised that budgetary assumptions would be reviewed in light of any new information and that some budget reductions that were not currently in the budget, would be reassessed to understand the level of risk involved. · The Leader advised that whilst there was a commitment to keeping the Council Tax increase as low as possible, there would inevitably be a significant increase. It was proposed and seconded that an indicative Council Tax figure should not be proposed until further information was provided. Following a vote it was: RECOMMENDED TO CABINET: e) That no indicative Council Tax figure be proposed until further information and findings are provided which could reduce the shortfall.
Councillors must say when they have a personal link to something being discussed, such as a job, a property or a family member. A prejudicial interest is one strong enough that the councillor usually leaves the room and takes no part.
Declarations are read from the minutes once they are published.
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