Agenda and minutes

Apologies for absence were received from Councillors H.A.L. Evans and P.M. Hughes.

There were no declarations of personal interest.

UNANIMOUSLY RESOLVED that the minutes of the meeting of the Executive Board held on the 8^th January, 2018 be signed as a correct record.

The Chair advised that no questions on notice had been submitted by Members.

The Chair advised that no public questions on notice had been received.

The Executive Board considered a report which brought together the latest proposals for the Revenue Budget 2018/2019, provided indicative figures for the 2019/2020 and 2020/2021 financial years and summarised the latest budgetary position giving an update on the budget validation, spending pressures, the Welsh Government final settlement and the responses from the budget consultation.

The Executive Board Member – Resources outlined to the Board a number of factors influencing the budget, including, the final settlement received from the Welsh Government on the 20^th December, 2017 which had been more favourable than originally anticipated thereby enabling the Council to revisit some of its initial budget proposals and consider further options including taking account of the latest pay award offer. Whilst the final settlement for this authority had increased by 0.2%, amounting to an additional £1.48m on the provisional settlement, it still represented a reduction in funding in real terms having regard to inflation and other price movements. The settlement also came with extra responsibilities including, increasing the capital limits for residential care, targeted relief for small businesses, which would be pass-ported to those services, together with an additional £399k for homelessness prevention. In addition, whilst a number of gaps had been transferred into the final settlement, confirmation was still awaited on a proportion of those which would support the budget plan, and until such time as those had been announced an element of risk existed on the current plan.

The Executive Board Member - Resources referred to the validation costs within the strategy totalling £8.8m, and advised the most significant thereof related to the pay award offer for staff of 2% plus the bottom loading of the lower pay scales. If implemented, that would result in a bottom pay point of £8.68 from April 2018 (an increase of 8.98%) increasing to £9.18 in April 2019 (a further 5.76% increase) together with the introduction of a new pay spine from April 2019 consolidating some of the existing spinal points and “ironing out” some of the current random grants between pay points. It was noted, however, that the pay offer did not apply to teachers who were covered by a separate national pay arrangement set at 2% from September 2018.

The Executive Board Member – Resources also drew the Board’s attention to the Council’s current three year budget proposal, set in February 2017, which assumed no protection for schools for 2018/19. However, having regard to the need to support schools wherever possible, and as a consequence of additional funding received from the Welsh Government as part of the settlement, it had once again been possible to protect schools and not reduce their budgets, with the 2018/19 delegated budget being held at £108.7m. In addition, and to support schools further with the work being undertaken by the Transformation, Innovation and Change Team, it was proposed to establish a ‘Schools Development Fund’ to operate on an “invest to save” basis similar to the Council’s Development Fund.

The Executive Board Member - Resources advised that  ...  view the full minutes text for item 6.

The Executive Board considered a report which brought together the latest proposals for the Five Year Capital Programme (Council Fund) 2018/19 to 2022/2023 taking into account the consultation exercise undertaken and the revenue implications arising from the capital programme.

The Board noted that the capital programme proposed gross expenditure for 2018/19 of £51.531m, with projected funding of £34.976m from the County Council through the use of borrowing, capital receipts, reserves and general capital grant and the balance of £16.735m coming from external sources. The Board was advised that the capital programme was projected to be fully funded over the first 3 years from 2018/19 through to 2020/21 and the final year of 2022/23. The fourth year, 2021/2022, showed a £1.5m shortfall which would be reviewed over the coming year.

The Executive Board Member – Resources informed the Board that, in total, the five year rolling programme would realise investment of nearly £200m (County Council funding estimated at £143m and £55m external funding) and the Authority, as part of that programme, had included additional new projects important to the county, for example the Community Department’s new schemes for Pembrey Country park, Carmarthen Museums Collection, Parc Howard and the continuation of support for private Sector Housing in 2022/23. The Environment Department would receive continued support for Highway Improvement, Bridge Maintenance and Road Safety Schemes into 2022/23. Coupled with that, as a consequence of additional Welsh Government Funding, the spend on roads refurbishment for 2018/19 would increase by an additional £2.2m

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL THAT

The Executive Board considered a report prepared by the Director of Corporate Services, in conjunction with officers from the Communities Department that brought together the latest proposals for the Revenue and Capital Budgets for the Housing Revenue Account 2018/19 to 2020/21. It was noted that the report had been considered, and endorsed, by the Community Scrutiny Committee at its meeting held on the 30th January 2018 as part of the budget consultation process.

The Executive Board Member – Resources advised that the report had been prepared reflecting the latest proposals contained in the Housing Revenue Account (HRA) Business Plan, being the primary financial planning tool for delivering the Carmarthenshire Homes Standard Plus (CHS+) for the future. It was noted that the proposed investment within the current business plan had delivered the CHS by 2015 (to those homes where tenants had agreed to have the work undertaken) provided investment to maintain the CHS+ and commenced investment for the Council’s Affordable Housing Commitment.

The Executive Board Member – Resources advised that by the end of 2017/18 over £250m of capital had been invested to deliver the Carmarthenshire Homes Standard to date, and the current business plan proposed to invest £30m in maintaining and upgrading the stock over the next three years coupled with £26m to support the Affordable Housing Programme

The Executive Board Member- Resources reminded the Board that with regard to the setting of the Housing Rents, the Authority had previously adopted the Welsh Government Social Housing Rent Harmonisation Policy with the aim of progressing to the mid-point target rent. However, whilst that policy had not changed, the Welsh Government had indicated that due to a relatively high CPI of 3%, local authorities may wish to consider using a lower option for 2018/19. Having regard to the Welsh Government’s indication, it was being proposed that the Authority set its rent at the lowest allowable level representing a 3.5% increase plus £1.62 progression producing an average rent of £85.27 resulting in anincrease of 4.34% or £3.55.

The Executive Board having considered the recommendations of the Carmarthenshire Homes Standard Steering group

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL TO:-

The Executive Board considered the Carmarthenshire Homes Standard Plus (CHS+) Business Plan 2018-2021 plan the purpose of which was to:

• explain the vision and detail of the Carmarthenshire Homes Standard Plus over the next three years, and what it meant for tenants;

• confirm the financial profile, based on current assumptions, for the delivery of CHS+ over the next three years; and

• produce a business plan for the annual application to Welsh Government for Major Repairs Allowance (MRA) for 2018/19 equating to £6.1m.

The Executive Board Member for Housing advised that if the report and its recommendations were to be adopted, it would result in some £56m being spent over the next three years in maintaining and further improving the CHS+ (£30M) and delivering the Affordable Homes Plan (£26m) through a range of solutions including, new build. 

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL THAT:-

The Executive Board was reminded that as part of the requirements of the revised CIPFA Code of Practice on Treasury Management, the Council had agreed to maintain a Treasury Management Policy detailing the policies and objectives of the Authority’s treasury management activities and to also approve a Treasury Management Strategy annually before the start of the financial year to which it related. In addition, under the Local Government Act 2003, the Council was required to approve the Treasury Management Indicators for the coming year.

In accordance with the above requirements, the Executive Board considered the Council's Treasury Management Policy and Strategy for the 2018-19 financial year prior to its formal submission to the Council for final adoption.

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL that:-