Transcript
We'll begin restart now, I'm sorry for any delay, they were looking for the cause of
the issue on the live stream.
So we, on item three, we voted for the minutes and now we move on to item four, Council Fund
Budget's final closing stage, pages 15 to 66, Councillor JOHNSTON.
Thank you, Chair, thank you, good morning everybody.
So in the Council budget for the year's most important action that any Council has to
go and do, it goes that same everything we do depends on the second budget, that's the
good of the vital services that people need.
I've searched as the tax for the never taken likely and this year's budget involved in
unprecedented level of consultation and interrogation by members.
The budget can take no projects and there's no hanging fruit.
Just the reality that Flintshire recognised World Management League Councils once again
to make hard and difficult decisions.
So in September, the budget gap was at $32.8 million and it rose in January to $33.187.
Despite our best efforts before Christmas, there were still an efforts, there were still
$12.946 million to find.
Council received four reports on the previous stage of the budget setting process for $24.25
and Council has been informed at all stages and invited to workshops and to comment on
each and comment at each oversight and scrutiny committee to consider the proposals both before
and after the announcement of the settlement.
That said, the budget setting works now being concluded and I thank officers at all levels
for their contributions and the apps can be set out in the reports.
Reports that sound for recommendations to Council to be able to reach a legal and balanced
budget position for the year 24-25.
I am proud this budget has been built around the values of this administration and our
council.
The budget report to Cabinet and then to Council is a long and complex and I would
so like to say more, I will only focus on parts of the report.
As noted, the remaining gap in January was $12.946 million to which the additional cost pressures
of homelessness demand and out of county place was added.
This increased the gap to $14.446 million.
Further explanation of this I believe is necessary.
Council continues to experience high increase in demand for temporary accommodation and
we must meet our strategic obligations to accommodate families and persons who found themselves
homeless.
The additional budget requirement included an extra $2 million but this will fall short
of what we will need.
Council continues to consider options but to assist with mitigating the significant financial
risk and additional $0.50 million has now been included in the proposed budget.
Out of county place, it continues to experience an increase in the numbers and the complexity
of children required support from the OCP budget.
The current overspending is projected at $1.6 million so an additional $1 billion has
been included to reflect current demand total.
Okay, to return to the budget gap, solutions to the budget gap are as follows, an increase
in the AF in the last government's settlements was 2.2 per cent, that represents an increase
of $5.50 million.
As a result, the UK government is increasing funding to the UK government, increasing that
funding to the English councils and the consequences going to Wales, the cut-in Welsh government
funding to the social care grant was reversed by Welsh governments and we received a further
0.675 million based on our standard spending assessment.
Portfolio efficiencies up to 7.5 per cent were made and additional options for cost reductions
considered by the overview and scrutiny committee meetings were held in February.
Following specific feedback, the following amendments to the original proposal has been
made, such as these are, the removal of the bus subsidy reduction, the removal of the
food waste bag charging proposal, the removal of the waste collection frequency proposal,
the removal of the cost reductions of the connect sense of proposal, the removal of the public
conveniences proposal and the removal of the modern apprenticeship proposal.
The revised total amount included from additional portfolio cost reductions add up to $3.5 or
$2 million.
Other measures, including cost reductions in schools and other proposals for social care
commission costs, are listed within the reports.
There's an increased degree risk in the budget proposals caused by the combination of continued
high inflation, service demand and a much lower than anticipated Welsh government funding
settlement.
A balance has to be struck between providing a reasonable level of additional recurring
base budget provision, taking account affordability and ensuring that the council has sufficient
reserve set aside to meet the potential at significant extra cost for those materialized.
Based on the current demand levels, the level and risk 24/25 is greater than the previous
years, so it is recommended that the budget risk rimfence reserve of $3 million is created
to mitigate any additional cost in year while a more sustainable solution is established
in $25/26.
This funding will be rimfence when the continues to reserve.
To emphasize the point, the most recent update on earmark reserves shows that their amount
is likely reduced from $12.4 million to $9.2 million by the end of 24/25 financial year.
In terms of earmark reserves, the council holds base level reserves of $5.769 million.
This currently equates to 1.6% of the net budget revenue budget I apologize, which should
lower than most councils and now too low for an authority of this size.
However, as there have been no claims in the last quarter on the COVID-19 hardship funds,
it is recommended that the four mounted transfers of base level reserves increase in the amount
to 8.981 million equating to 2.44% of the post-2425 net budget.
The continuous reserve is projected to be $5.108 million at year end, reducing to $2.108
million when the budget risk reserve of $3 million is taken to account.
After meeting the costs of some time-depressure and temporary bridging the gap of a part year
cost, this will leave a projected continued reserve of $1.936 million.
The remaining open risk for which we have prepared and these are listed within the report.
Before it contains proposed amendment to the cabinet budget from the independent group,
the main difference between the cabinet proposals is that there is a contribution to reserves
of $0.436 million to safeguard against risks, as the cabinet proposals include an extra
$0.500 million directly allocated to the homelessness budget.
This represents a difference of $90,000 pounds with the first cabinet budget, which in terms
of $0.138 from modern quantities, is still carried.
I think this back to the independent proposals would require an increase in the council tax
proposals to the same as opposed by the cabinet together with the reduction of the transfer
to reserves of $0.026 million, which means that transferred reserves would be $0.410 million.
Finally, I would like to turn to the level of council tax for the next year.
This year, an annual increase of 8% is required in the council tax for council services, an
initial 1.1% for additional contributions to the North Wales Fair and Rescue Service,
Levy and the North East Wales Current Service, all together these represent an uplift of
9.1%.
On a 9.1% uplift, this represents an annual increase of £138.44 on a band D, which represents
an increase of £2.66 each week by way of comparison of proposals for the independent
group, represent an increase of £1.36.92 per year on a band D equivalent, and that would
represent an increase of £2.63 per week.
I'd recommend this report to the cabinets, particularly the council budget as this ensures
that the budget pressures on the homelessness is more practically addressed when we keep
our training in modern apprenticeships.
That said, the recommendations to the cabinet are one, that cabinet approved notes and
approved the revised additional budget required for $24.25.
That cabinet approves the final proposals for the cost reductions that will contribute
to the budget.
That cabinet recommends to council a legal and balanced budget based on the calculations
and the two options set out within this report.
It notes the open risks which need to be managed in the coming financial year.
That cabinet recommends an overall annual increase in the council tax for £24.25 based
on the two options provided in this report.
That cabinet invites council to pass the formal council tax resolution now that we have
the notification of the precepts of the police and crime commissioner and of all town and
community councils within capital and flincher.
And finally, number seven, that council notes the medium term forecast as a basis for the
next revision of the medium term financial strategy.
And with the report.
I'd like to thank Councillor JOHNSTON for all the work that is putting on the officers
a nice second proposal.
Chief Executive, thank you Councillor JOHNSTON, a few words from me stating the obvious
really.
This has been a very challenging budget for everyone concerned.
I personally like to thank those all members for their contributions in the process that
we've undertaken to get this far and I'd like to also thank officers within their respective
portfolios for the hard work that they've undertaken to review and bring together proposals
set out in this report.
I'm not proposing to say anything more than that but I will hand over to Gary Ferguson
who will run through some basic details within the report for your consideration.
Thank you.
Okay, thanks.
Don't intend to add an awful lot more detail because the Councillor JOHNSTON covered the
main points of the report.
I will be doing a detailed presentation of full council this afternoon based on the two
options including the report for council to consider and that will be circulated this
morning if it hasn't been circulated already to all members in advance.
Just a bit clarity on 1.05 the aggregate external finance whereby Councillor JOHNSTON mentioned
this $175,000, just for clarity that isn't confirmed as an exact figure at this stage.
It's an estimate based on our current percentage standard spending assessment compared with
the rest of Wales which should not be very far different from that figure if it was to
be slightly different we would just amend two off from our reserves.
The amount of $14.4 million has been confirmed it will be in the final settlement but split
by local councils hasn't as yet so that's the best estimate we can provide.
And the final perhaps we just need to be mindful of table six in the report which gives the
first indication of 2025, 26 and beyond.
Unfortunately at this stage our operating costs and decreasing in line with the decreased
expectations from Wales government grant income so as you can see there our estimates
of potential pressures on those assumptions around pay, social care demand and other known
pressures already totals $28.2 million.
We haven't gotten indicative allocation from Wales government for next year although members
will be aware from the workshops that the Wales Institute for Fiscal Studies are saying
that next year will be particularly bleak and have suggested uplifts of 1% maximum may
be even less so we really do need to prioritize as a council as soon as this budget is set
this afternoon to look at addressing that major differential between our operating costs
and the reduction in income.
That's all I need to say lead at this morning.
Thank you. I would like to echo chief executives thanks to all members who have been involved
in discussions with regard to this year's budget and to officers who have spent a considerable
amount of time on the budget proposals for this year.
Any members wish to speak on this?
Any members of the cabinet wish to speak?
Sorry I can't see you very well.
Nope.
Oh, if we move to the vote then it's been moved by a council of Paul Johnson, seconded
by Councillor Dave Hughes.
All those in favour of the recommendations, Council, please show.
That's unanimous, thank you.
Item 5, treasury management strategy, Councillor JOHNSTON.
Thank you, Chair, it's just won't be as long.
Treasury management strategy 2425, the report represents the following for approval and
recommendation to Council and cabinet, the treasury management strategy for 2425.
The report was considered in detail by the governance and audit committee on the 24th
and January and were no specific matters to the application of the cabinet.
The main body of the strategy is not chasing significantly off that from 2324.
The previous treasury management policy statement was approved by Council in February 2023 and
covered a three-year period from 2026 to 2025, 28.
The treasury management policy defined Council's treasury management activities, sets out the
Council's criteria to measure the effectiveness of treasury management activities and includes
the Council's high-level policies and bottom-in investments.
Once approved, the document will only be reported to members during its lifetime in the event
of insignificant changes.
As to recommend the treasury management strategy 2425 to the County Council for approval.
I would like to add the strategy remains life and change from the previous year.
Just needs formal approval at County Council this afternoon.
And as Council Johnson mentioned, it did go to governance and audit committee for scrutiny
and there were no issues to bring to your attention this morning.
So it's been moved and seconded, all those in favour please show.
Item 6, minimum revenue provision.
Councillor Johnson.
Thank you, Chair.
Member of revenue provision 2425 policy.
Local authorities are required to set a minimum of revenue provision policy each year.
Local authorities set aside some of their revenue resources as provision for the repayment
and debt.
Regulations that require an authority to, regulations require that an authority make an amount for
MRP, which is prudent.
The Council is part of the budget strategy conducted detailed reviews of its MRP strategy
in 2016 and 2017 and 2018 and amended the policy as results.
I can refer to cabinet that no changes are required for the policy for the coming year
2425.
The cabinet should note that the Council is under borrowed, named at the level of external
borrowing is below the capital financing position on outstanding capital expenditure.
The Council's treasury management policy makes use of available cash arising from reserves
to from capital expenditure and has it internally borrowed to an extent by doing so the Council
is able to reduce net borrowing costs, despite further going investment income and reduce
overall treasury risks.
I propose recommendations as written.
I move the report.
No, nothing to add, it's exactly the same policy as last year.
It's been moved and seconded, all those in favour, please show.
Item 7, revenue budget monitoring, Councillor JOHNSTON.
The report provides, this report requires the month nine, we've overview of the budget
monitoring position for the 2425, sorry, 2324 financial year, not that far in advance.
It's the latest detailed overview of the budget monitoring position for this year.
We'll note that projected year-end position is the Council funds and operating deficit
of 2.502 million, which is a favorable movement of 0.440 million from the deficit figure reported
at month eight.
Those projected contingencies can change a series of balance as of March 31, 2024 of
5.108 million after the impact of pay awards and taking account of previously approved
recommendations.
For the housing revenue account, the net in-year expenditure forecast is forecast to be 0.049
million higher than budgets, which is an adverse move of 0.031 million from the figure reported
at month eight.
This produces a projected end of year balance of 3.148 million.
The 2324 budget for the HRA is 39.418 million, which includes a movement of 0.589 million
from reserves.
The budget contribution towards capital expenditure is 12.712 million.
Overall, the economic outlook remains challenging due to inflation that's remaining high.
The impact of this, together with continued increases in service demand, means it's increasingly
harder to deal with as our funding fails to keep in line with these pressures.
To assess with managing these risks and mitigating the overall projected overspend, a more attending
or non-contractory committee spend has been put in place alongside vacancy management process
which continues.
At month nine, the 1.548 million of deferred all and what delayed expenditure has been
identified and analyzed by service within Appendix two.
The robust challenge of budget lines and commitments will continue with further updates provided
in future reports.
The tracking of in-year open risks and emergency issues continues and there are also open risks
that have been kept in a close review.
The identified track risks are council tax income, pay awards, teacher and non-teacher,
paying modelling.
The waste reciting infraction charge, homelessness and storm bubbles.
In addition, there are a number of risks being tracked which may be subject to change and
these are out-of-county placements, the fleet renewal contract, fleet contract renewal,
the sustainable waste management grants, inclusion and progression and the harper trust versus
Brazil.
In terms of reserve, the final level of the council fund continues with reserve brought
forward into 23, 24 was 9.508 million as detailed in the October 24 from last April.
The brought forward balance into 2024 on the COVID-19 hardship reserve was 3.74 million,
following a series of claims listed in the report, the current balance remains at 3.212
million.
The chief financial officer will go through the reporting for the details, I'm sure and
I'd like to thank him and his team for the work spent into this report.
There are two forward requests brought forward for capital to consider.
The planning environment will come before you have requested to connect forward at 0.0500
million to fund a specialist practitioner for 12 months to work on the new established
requirements for special procedures.
The second carry forward is from the governance and requested that the anticipated contract
budget in the 23, 24 budget is transferred to the digital strategy reserve.
The weeks are in default, but this funding will retain the current postholders by extending
the fixed-term contracts for further two years until March 20, 27.
This carry forward with a sit in top of the digital structure reserve and afford further
pressure within the MTFS.
The recommendation across was against taking this decision, explaining that their preference
will be to support the services such as CONNECTs and the BOSS Subsidy.
The implication of this recommendation are the loss of skill and capability within the
council and the need to develop or replace them.
Clearly with the consequence of funding from BOSS Subsidy, those two items above have been
for further 12 months, I would hope addresses those concerns.
The intention of this carry forward is to transfer the underspend and increase the total
budget which will allow the organisation to progress its ambitions for digital and transformation.
Approval for this carry forward will improve and ensure that there will be appropriate
resource in place to support this.
I'm sure the chief also of government will explain this further to cabinets, but I've
put the information before you.
So cabinet are requested to warm note the report on estimated financial impact from the 2425
project and to support the count forward requests, including paragraph 10 of the report.
I'm with the recommendations of the cabinet.
Okay, thank you, Gary.
Yeah, thanks again, not an awful lot to add.
Councillor just wanted a lot of detail on the report.
It's going the right way, positive movements of $140,000 from the previous month and the
reasons for those movements in 105 to 108 of the report.
There's an update on costs in relation to the recent storms in 117 of the report.
The total projected costs are now $1.5 million, so we have assumed that the severe weather
reserve will be utilized in full $250,000 and we have formally flagged with the minister
of wealth government to request funding from the emergency financial assistance scheme.
That still isn't confirmed, that's under consideration.
So again, that would be a financial risk if that wasn't approved at a national level.
So the projected net cost of the storms to the council are $579,000 and they're included
in the figures within the report.
On council tax income, the month and night position is at exactly the same level as the
previous year.
So we have caught up with collection levels on council tax income, albeit it's still not
quite at the levels pre-pademic but that's at that end is a positive movement.
Just on reserves, all of the figures within the report, obviously the base data for what
we will be considering this afternoon for the 2024-25 report.
So the amounts projected to be remain at the end of the year have been part of the considerations
for 24-25.
So that's probably all we needed to add, I don't know if Chief Officer Governance wants
to reflect on the carry forward information.
Thank you, Leader.
Councillor Johnson has covered quite a lot in relation to the request of the carry forward.
The carry forward has the underspenters arisen as a one-off due to the staffing difficulties
that the Connect Service has encountered, you know, where we've had, and the contact
centre where unfortunately we have had a number of vacancies and we've struggled to
build posts in that regard, it is a one-off, it can be considered a one-off because those
services are now fully staffed.
The request is to continue to fund a range of posts that provide us with the skills that
we need to increase the digital functionality of our website.
We have people who improve the look and the design of the website.
We have people who do the technical gubbins, it being with the software to the website
in terms of being able to provide the actual functionality and there's also a post that
looks at the processes and the way the website fits into the way that we work as an organisation
to enable us to have a system whereby somebody can apply for something using an e-form online
and that will then translate into action by the Council.
In addition, those posts, we'll, a couple of those posts, support the recently introduced
Council Facebook page and that Facebook page enables one of the savings that has been proposed
within the governance portfolio that we would cut the gubb delivery newsletter service at
a saving of £25,000 replacing it with information through the Facebook page.
Clearly, Leader, we started with the Council's digital strategy and then moved towards digitisation
of our services before COVID but we saw a major acceleration of demand for digital services
during COVID and that demand hasn't reversed since COVID although we have, by contrast,
seen a reduction in the number of visits to connect centres so it seems that the COVID
pandemic may have accelerated a trend towards self-service via digital means over face-to-face
interaction.
I'm happy to answer any questions if there are any questions if there are any questions.
Leader.
Any further questions or comments?
No.
If we can move to the vote then please, all those in favour, please show.
And item 8, capital programme Monstrang, month 9.
Thank you, governments, thank you.
What else, capital programme monitoring 23, 24, month 9.
This report summarises the changes make the capital programme 22, 23 since it was set
out at the end of month 9.
Capital programme was seen a net decrease in budgets of 1.803 during the page which comprises
of a net budget decrease in the programme of 0.477 million and net carry forward to 2425
per cent, and the capital of 1.15 million, identified savings at month 9 at month 5.5.5.
Actual expenditure was 43.441 million and capital received for 33.3.5 along the savings identified,
total 0.316 million.
This gives a revised projected surplus in the capital programme at month 9 of 2.312 million
from month 6, from the position surface of 1.996 million, prior to realisation and additional
capital receipts and other funding sources.
The funding changes during this period have resulted in a net decrease in the programme
total of 0.447 million, as some of the changes detailing major items are shown in table 2.
Expenditure as at month 9, as the whole capital programme was 43.441 million and the breakdown
is analysed in table 3, along with the percentage spent against budgets.
The table shows projected under spending carry forward in the adjustments of 1.80 1.1
million on the council fund in a break-even position on the HRA.
During the quarter, carry forward requirements have been identified which reflect reviewed
spending plans for all programme areas.
These amounts have been split into areas, those required to meet the cost of programme
work and/or retention payments.
There are no additional allocations identified in the programme for this quarter.
Kevin has requested to approve the overall reports and approve the carry forward adjustments
as set forward in paragraph 1.12 and a number of reports.
Yes, thanks just, the only final comment for me is obviously the 2024/25/26/27 capital programme
has already been approved in the early December and the surplus reflected in table 5 was already
assumed to some degree when we set the budget.
118 of the report just details that the funding surplus of £52,000 projected when we did
set the capital programme has now increased to 2,69,000 based on the additional information
that we've had for this quarter.
Any comments from members on this?
No, Councillor JOHNSTON, then you are moving this.
And then, Councillor Bibi, all those in favour, please show them.
Thank you.
Item 9, exercise of delegated powers.
We note the delegated powers report and now we move to local governments access to Information
Act to consider the exclusion of the press and public.
Someone move, please.
Seconded.
Thank you.
All those in favour, please show.
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