Agenda a Chofnodion

The Vice-Chair introduced himself to the Committee and advised Members that he would be Chairing the meeting and that Councillor J. Williams had given her apologies.

Apologies for absence were received from County Borough Councillors J. Williams, A. Davies-Jones, J. Elliott, G. Holmes, M. J .Powell and S. Rees-Owen.  

Derbyn datganiadau o fuddiannau personol gan Aelodau, yn unol â gofynion y Cod Ymddygiad.

Nodwch:

1.    Mae gofyn i Aelodau ddatgan rhif a phwnc yr agendwm mae eu buddiant yn ymwneud ag ef a mynegi natur y buddiant personol hwnnw; a

2.   Lle bo Aelodau'n ymneilltuo o'r cyfarfod o ganlyniad i ddatgelu buddiant sy'n rhagfarnu, mae rhaid iddyn nhw roi gwybod i'r Cadeirydd pan fyddan nhw'n gadael.

RESOLVED- In accordance with the Council’s Code of Conduct, there were no declarations made pertaining to the agenda.

Derbyn cofnodion o gyfarfod blaenorol y Pwyllgor Craffu - Cyllid a Chyflawniad a gafodd ei gynnal ar 11 Rhagfyr 2018.

It was RESOLVED to approve the minutes of the 11^th of December 2018 as an accurate reflection of the meeting.

Derbyn cyflwyniad gan Gyfarwyddwr y Gwasanaethau Ariannol ac ymgymryd â gwaith cyn y cam craffu ar gynigion mewn perthynas â Strategaeth Cyllideb Refeniw ddrafft y Cyngor ar gyfer 2019/20.

Nodwch: Mae copi o'r adroddiad adborth ymgynghori terfynol ynghlwm.

The Director of Financial Services provided Members with a presentation in respect of the Council’s Draft 2019/20 Revenue Budget Strategy, which contained the views of the Council’s Senior Leadership Team under the following headings:-

Ø  Council’s Current Financial Position

Ø  The 2018/19 Final Local Government Settlement

Ø  The Starting Point Budget Gap

Ø  Budget Consultation Outcomes

Ø  Key Building Blocks

Ø  Council Tax

Ø  Schools

Ø  The Final Budget Gap and Strategy Options

Ø  Conclusion and Next Steps

The Director indicated that the overview provided was to assist Members in formulating their views on the draft proposals, especially with regard to:

Ø  Council Tax levels

Ø  A proposed schools increase

Ø  Fees & Charges (Level of increase/ Any exceptions/variations)

Ø  Strategy options to close remaining budget gap (the starting point Budget Gap is now £6.497M)

Members were informed that the views of this Committee would be fed back to Cabinet at its meeting in February, which would be incorporated into a report that would be presented to full Council.

Members noted the proposal and discussions ensued.

In relation to the School Budget, a Member questioned if there was a set date as to when the Budget would be formally approved. The Director of Financial Services advised the Committee that the Budget would be formally approved by the 6^th of March 2019. The Member emphasised the importance of schools receiving this information as quickly as possible. The Head of Finance advised Members that the department is hoping to get a draft formula out to all schools in the County Borough by February half term. The Head of Finance emphasised that efficiency planning will be required at a school level. Another Member queried what impact the Teachers’ Pension increase would have on the School Budget. The Director of Financial Services advised the Committee that the Welsh Government had not made a decision yet as to whether the increase would be absorbed into the School Budget. The Elected Parent/ Governor Representative noted the importance of schools receiving this information as soon as possible. He also questioned whether the efficiencies would be in the same range as last year. The Director of Financial Services emphasised that each school will have to agree a deficit recovery plan with the Director of Education. The Head of 21^st Century Schools emphasised that schools will need to improve their financial planning.  

In respect of Fees and Charges, a Member raised concerns and questioned whether the Committee could receive information as to how much financial support is received for non-statutory services. The Member emphasised that the Budget can be difficult to understand and felt that it would assist Members if they could see how much is being spent on each non-statutory service. In response, the Director of Financial Services advised the Committee that the Budget book is in the Website, which includes the net budget for Leisure services. The Member felt that it would be useful to have a breakdown of the Budget to show how  ...  view the full Cofnodion text for item 14.

Derbyn yr wybodaeth ddiweddaraf am y gwasanaeth prydau yn y gymuned. 

The Head of 21^st Century Schools and the Business Manager Catering Services presented the Committee with an update on the Community Meals Service change and the savings that it’s achieved.

A Community Meals service review was approved by Cabinet on the 25^th of January 2018 with the objective of developing a service that improves the quality of life for the people who use it in a way which allows the service to be responsive to demand.

Members were informed that the demand for the weekday service fell by 29% and for the weekend service by 66% over the last 5 years. As such, a new service was implemented in August 2018 and resulted in 3 community meals kitchens being reduced to 1 central production kitchen located in Ynyshir, Rhondda. Members were told that a centralised production enabled a reduction of 20 staff, from 62 to 42. It was emphasised that all redundancies were on a voluntary basis.

The Committee was advised that the impact of the service change has been positive with 93% of clients reporting that they were happy with the service.  The effect of the service change on staff has also been positive. The morae is good and members of staff have commented that they feel valued.

In conclusion, Members were reminded that clear links can be seen between the provision of community meals and the achievement of the Council’s priorities. The service supports some of the most vulnerable elderly people in the County Borough. The feedback has been positive from both clients and their families. The Head of 21^st Century Schools also wanted to place on record her personal thanks to the Unions and HR department for their collaboration in implementing the service change.

Members were then given the opportunity to ask questions.

A number of Members praised the service and agreed that it is a vital service for the most vulnerable adults in our communities.

The Elected Parent/ Governor Representative referred Members to Table 3 of the report on page 79 and queried whether the Council are expecting the negative income figures to become positive figures over time. The Head of 21^st Century schools advised that the Council remains hopeful that these figures will improve over time. The Elected Parent/ Governor Representative also questioned how the Council plans to compete against the commercial sector. Members were advised that the feedback they have received indicates that the Council’s community meals service is competitively priced and provides larger portion sizes than many of its competitors. The Head of 21^st Century schools was also asked if she has any plans to expand the service. Members were told that whilst it is possible to expand the service, it is a subsided service and as such, it is important to keep it within the County Borough.

The Chair of the Overview and Scrutiny Committee questioned whether it would be possible to expand the service to include community groups. The Head of 21^st Century Schools  ...  view the full Cofnodion text for item 15.

Trafod adroddiad Cyfarwyddwr Cyfadran y Gwasanaethau Corfforaethol a Rheng Flaen.

The Head of Finance provided the Committee with an overview of the Council’s Treasury Management activity during the first six months of the financial year 2018/19 and the prudential and Treasury Indicators for the same period.

Members were asked to consider whether they wish to receive any further detail on matters contained within the report.  

The Head of Finance explained that Treasury Management is the management of a local authority’s cash flows, its borrowing and its investments, the management of the associated risks and the pursuit of the optimum performance or return consistent with those risks.

Members were provided with an overview of the general economic environment and were informed that on the 2^nd August 2018, the Bank of England increased the Bank rate from 0.5% to 0.75%. The Head of Finance advised Members that despite the ongoing uncertainty surrounding the country’s exit from the EU, current projections show UK growth to be modest. The unemployment rate is expected to be stable, currently at 4%, with real growth unlikely to have much effect on the spending power of households.

Members were informed that the borrowing strategy for 2018/19 was approved by Council in March 2018 and that the borrowing requirement was estimated to be £48.9M based on the Capital Programme at that time. In March, it was also reported that the Council would monitor prevailing PWLB rates for any opportunities to reschedule debt to generate savings. debt to generate savings. Members were informed that as at the 30^th of September 2018, the Council has not had a viable option to reschedule debt. Affordability and the cost of carry remained important influences on the Councils borrowing strategy.

The Head of Finance advised the Committee that no variance is currently being projected for net capital charges, which have a budget for 2018/19 of £19.9M. It was emphasised to Members that this is being achieved despite the challenges faced with investment income and maintaining the Council’s low risk strategy.

Members were advised that during the six months to the 30^th September 2018, the Council operated within its prudential limits as set out in the Prudential Code report approved by Council in March 2018.

Members were also reminded that the Council’s borrowing activity is within its Authorised Limit. The Authorised Limit represents the limit beyond which borrowing is prohibited, and needs to be set, monitored and revised by Members. It reflects the maximum level of borrowing to fund existing capital  commitments, which could be afforded in the short term, but is not sustainable.  

Members thanked the Head of Finance for providing the Committee with such a detailed report.

Discussions ensued and Members put their questions forward.

The Elected Parent/ Governor Representative queried whether the Council has put safeguards in place to protect against the uncertainty surrounding Brexit. The Head of Finance advised Members that they are mindful of the volatility surrounding Brexit and its effect on the economy, however, the unemployment rateis expected to be broadly stable

The  ...  view the full Cofnodion text for item 16.