Agenda item

To submit the report of the Cabinet Member for Resources  (attached).

The Cabinet Member for Resources submitted:

 

·         A report recommending a budget for the Council's approval for 2017/18.

·         An appendix detailing issues to consider when setting the budget, along with the medium-term strategy.

·         The draft decision on the Council Tax based on the Cabinet's recommendation to the Council (based on an increase of 2.8%), along with tables showing the Council Tax level and the increase per community.

 

The Cabinet Member noted that the process of establishing the Council's Financial Strategy had been an inclusive process of collaboration and he thanked the Chief Executive, the Research Unit, the Head of Finance Department and the staff of the Finance Department for their collaboration over the past five years. 

 

During the discussion, it was noted:

 

·         That the Council had approved spending money under items 6 and 7 above, but was making a decision on raising money here. In response, the Head of Finance Department noted that those decisions involved moving on with matters already included in the budget.

·         That efficiency savings led to a reduction in staff numbers and this meant that councillors were unable to contact anyone to pass on complaints.   In response, the Cabinet Member noted that efficiency savings were not cuts and that services could be maintained more effectively without cutting staff. The Head of Finance Department added, as a result of the efficiency savings and the cuts that had already been approved, that it would be reasonable to generate approximately £1m of further efficiency savings in order to keep the tax on the recommended level and that these efficiency savings would not affect ratepayers. 

·         That the decision to get rid of the disability officer had had an impact.

·         That the ratepayers of Anglesey and Ceredigion were paying less than Gwynedd ratepayers, and although the fact that Gwynedd had received the best settlement in Wales this year was welcomed, this was a very poor county and people who already experienced difficulties in making two ends meet would find it difficult to cope with the increase.  

·         That restricting the increase in Council tax to 1.5% would bring Gwynedd closer to Anglesey and other neighbours. It was also noted that the level of inflation was below 2% by now.

·         That there was also pressure on community and town councils and the Police Authority to increase their precepts and that an increase of 2.8% was very reasonable.

·         That the cuts of £4.3m in the field of education was hitting the primary sector which meant that children were moving up into the secondary sector without achieving the expected standard and that this, in turn, led to additional work with fewer resources.

·         That people saw themselves paying more for fewer services.

·         That the tax on a Band D property in Gwynedd was more expensive than a Band D house in Cardiff and Gwynedd had the sixth highest rates in 2016. 

·         That an increase of only 2% in the tax would lead to a reduction of £13 per annum to Band D residents and to an income of £1.47m rather than £2.06m. The Council would have balances of £5m at the end of March and £0.5m could be used from those balances to balance the budget. In response, the Chief Executive explained that the increase of 2.8% was required to meet the deficit and that funding from balances for this year would mean that £0.5m additional savings would need to be identified next year on top of the £1m already identified.

 

It was proposed and seconded to increase the council tax by 2% and use £0.5m from balances to bridge the gap and for the necessary additional savings to be identified next year.

 

The Head of Finance Department noted that the amendment would mean funding a permanent deficit from one-off use of balances and would, therefore, be contrary to robust financial planning principles, and the views of the Welsh Audit Office on this, as presented in part 8.6 of the report.

 

During the discussion on the amendment, it was noted:

 

·         That community councils were charging additional rates to make good for the failure of this Council to provide the services they required and that an increase of 2.8% doubled the punishment on our communities.  

·         That it would be better to keep to an increase of 2% only until it would be known how much cuts the communities would be facing and how much tax community councils would have to charge to make good for those cuts.

·         The Cabinet's decision to approve £275,000 towards recovering the area education offices was welcomed; however, it had been disappointing to hear that the Education Department was expected to identify savings by 2020 in order to make good for that.

·         That the decision to freeze any cut to secondary schools was to be welcomed; however, it had to be ensured that the schools received a repayment from the contribution of £1,000 made by each of them from their budgets approximately 8-9 years ago, to keep Ysgol Syr Hugh Owen, Caernarfon, afloat.

·         Concern about those people on low salaries, but who were ineligible for benefits, and it was questioned as to whether or not the failure of those people to pay their council tax would ultimately be more costly to the Council.

·         The floor of the Council chamber was not the place to propose a different budget and that it was concerning that some were proposing less than the recommended increase.

·         From approving the recommendations, people could be told that there would be no further cuts and that there would be an injection of money to assist secondary schools. The 2.8% increase would also place the Council in a position to safeguard services and ensure an investment in those services also.

·         That the strategy should be adhered to and that difficult decisions should not be delayed so that someone else would have to make them next year.

·         That proposing to withdraw money from balances was like a stuck record heard every year and that it was not possible to withdraw £0.5m from balances every year. 

·         That it was unfair to compare Gwynedd's situation with that of Anglesey and Cardiff as more people were needed to do the same work in Gwynedd due to the demography of the county.

·         That using balances to fund a revenue budget caused a problem for the future.

·         That reducing the increase in the rate would lead to cuts in fields such as education and social services, which impacts the old and the young. 

·         That increasing the tax did not affect the poorest in society as they did not pay the rates anyway; however, cutting services did have a substantial impact on those people.

·         Not every community council would be increasing the tax level.

·         That it would be better to increase the tax 2.8% now rather than make a much higher increase later on.

·         That the gap between the rich and the poor was increasing and that the council tax did not help matters.

·         That the amendment would allow the Council to consider the situation with new eyes during next year.

·         That there was a need to work hard rather than keep the tax down.

 

Before taking a vote on the amendment, the Chief Executive explained the implications of this, noting:

 

·         That additional efficiency savings of £2.96m were on track to be realised in 2018/19, in accordance with the requirements of the strategy in the medium term; however, there was still a need to identify another £3.7m for 2018/19.

·         Should the new Council need to identify that money, they would need to return to the cuts list, and as an example of the price of not increasing the council tax sufficiently this year, he referred to the next four items on the list that would create £0.5m of cuts, namely closing Neuadd Dwyfor, reducing the public transport budget by 10%, closing eight recycling centres and closing two leisure centres (or four items lower down on the list could be selected, but these cuts would be worse in the views of the people of Gwynedd).

·         Should the government cut the Council's grant more than expected by 2018/19, according to the worst forecast £7.3m in savings would need to be identified, i.e. an additional £3.6m of savings next year.  Withdrawing a further £0.5m from the level of balances noted in the report would make it difficult to buy time to meet the worst case scenario when setting the budget for 2018/19, thus creating a substantially higher risk next year.

 

A vote was taken on the amendment to increase the council tax by 2% and it fell.

 

A vote was taken on the original proposal to increase the council tax by 2.8% and it was carried.

 

RESOLVED

1.         To set a budget of £231,299,720 for 2017/18, to be funded by £168,963,540 of Government Grant and £62,336,180 of Council Tax income, with an increase of 2.8%.

2.         To establish a capital programme of £12.015m in 2017/18 and £6.410m in 2018/19 to be funded from sources noted in clause 9.3 of the report.

3.       To note that the Cabinet Member for Resources, in a decision notice dated 22 November 2016, approved the calculation of the following amounts for 2017/18 in accordance with Regulations made under Section 33 (5) of the Local Government Finance Act 1992 ("the Act"):

 

(a)   50,232.22 being the amount calculated in accordance with the Local Authorities (Calculation of Council Tax Base) (Wales) Regulations 1995 as amended, as its Council Tax base for the year.

 

(b)   Part of the Council’s Area - Communities Tax Base -

 

Aberdaron	521.73		Llanddeiniolen	1,797.37
Aberdyfi	915.28		Llandderfel	484.05
Abergwyngregyn	116.25		Llanegryn	155.92
Abermaw (Barmouth)	1,089.22		Llanelltyd	277.33
Arthog	603.52		Llanengan	1,955.12
Y Bala	759.58		Llanfair	306.45
Bangor	3,752.56		Llanfihangel y Pennant	207.70
Beddgelert	314.22		Llanfrothen	215.74
Betws Garmon	132.87		Llangelynnin	392.62
Bethesda	1,656.05		Llangywer	135.09
Bontnewydd	433.54		Llanllechid	334.49
Botwnnog	430.29		Llanllyfni	1,385.04
Brithdir a Llanfachreth	403.86		Llannor	897.86
Bryncrug	333.65		Llanrug	1,128.07
Buan	221.19		Llanuwchllyn	306.73
Caernarfon	3,467.91		Llanwnda	766.22
Clynnog Fawr	440.58		Llanycil	195.26
Corris	291.48		Llanystumdwy	856.31
Cricieth	916.60		Maentwrog	272.30
Dolbenmaen	585.70		Mawddwy	333.19
Dolgellau	1,190.95		Nefyn	1,380.07
Dyffryn Ardudwy	773.53		Pennal	216.03
Y Felinheli	1,122.95		Penrhyndeudraeth	760.14
Ffestiniog	1,687.96		Pentir	1,067.54
Y Ganllwyd	78.91		Pistyll	243.50
Harlech	747.37		Porthmadog	1,947.97
Llanaelhaearn	429.82		Pwllheli	1,713.23
Llanbedr	313.90		Talsarnau	306.91
Llanbedrog	677.91		Trawsfynydd	499.78
Llanberis	769.47		Tudweiliog	444.98
Llandwrog	996.86		Tywyn	1,552.99
Llandygai	964.62		Waunfawr	555.89

 

being the amounts calculated as the amounts of its Council Tax base for the year for dwellings in those parts of its area to which one or more special items relate.

 

4.       That the following amounts be now calculated by the Council for the year 2017/2018 in accordance with Sections 32 to 36 of the Act:

 

(a) £347,986,230	Being the aggregate of the amounts which the Council estimates for the items set out in Section 32(2)(a) to (e) of the Act (gross expenditure).
(b)  £114,986,280	Being the aggregate of the amounts which the Council estimates for the items set out in Section 32 (3)(a) to (c) of the Act (income).
(c) £232,999,950	Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with Section 32(4) of the Act, as its budget requirement for the year (net budget).
(ch) £168,668,537	Being the aggregate of the sums which the Council estimates will be payable during the year into its fund in respect of National Non-domestic Rates and Revenue Support Grant, less the estimated cost to the Council of discretionary non-domestic rate relief granted.
(d) £1,280.68	Being the amount in 3(c) above less the amount at  3(ch) above, all divided by the amount at 2(a) above, calculated by the Council, in accordance with Section 33(1) of the Act, as the basic amount of its council tax for the year.  (Gwynedd Council tax and average community council tax).
(dd) £1,995,230	Being the aggregate amount of all special items referred to in Section 34(1) of the Act (community council precepts).
(e) £1,240.96	Being the amount at 3(d) above less the result given by dividing the amount at 3(dd) above by the amount at 3(a) above, calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special item relates (Band D for Gwynedd Council tax only).

 

(f) For parts of the Council’s Area - Community

 

Aberdaron	1,265.88		Llanddeiniolen	1,252.09
Aberdyfi	1,275.39		Llandderfel	1,263.68
Abergwyngregyn	1,262.47		Llanegryn	1,273.03
Abermaw (Barmouth)	1,288.70		Llanelltyd	1,268.00
Arthog	1,256.29		Llanengan	1,266.53
Y Bala	1,269.92		Llanfair	1,270.33
Bangor	1,336.01		Llanfihangel y Pennant	1,292.74
Beddgelert	1,268.65		Llanfrothen	1,267.84
Betws Garmon	1,260.53		Llangelynnin	1,260.83
Bethesda	1,276.28		Llangywer	1,270.57
Bontnewydd	1,276.71		Llanllechid	1,263.38
Botwnnog	1,252.58		Llanllyfni	1,270.10
Brithdir a Llanfachreth	1,255.82		Llannor	1,257.84
Bryncrug	1,276.93		Llanrug	1,268.44
Buan	1,257.91		Llanuwchllyn	1,273.56
Caernarfon	1,298.20		Llanwnda	1,271.24
Clynnog Fawr	1,268.20		Llanycil	1,261.45
Corris	1,265.91		Llanystumdwy	1,258.48
Cricieth	1,278.05		Maentwrog	1,262.75
Dolbenmaen	1,258.03		Mawddwy	1,264.97
Dolgellau	1,286.30		Nefyn	1,284.86
Dyffryn Ardudwy	1,279.41		Pennal	1,268.73
Y Felinheli	1,272.13		Penrhyndeudraeth	1,285.69
Ffestiniog	1,329.82		Pentir	1,282.18
Y Ganllwyd	1,275.18		Pistyll	1,275.87
Harlech	1,265.71		Porthmadog	1,269.53
Llanaelhaearn	1,299.12		Pwllheli	1,282.99
Llanbedr	1,286.18		Talsarnau	1,289.83
Llanbedrog	1,266.04		Trawsfynydd	1,272.97
Llanberis	1,266.95		Tudweiliog	1,254.44
Llandwrog	1,282.09		Tywyn	1,296.34
Llandygai	1,262.32		Waunfawr	1,262.55

 

being the amounts given by adding to the amount at 3(e) above the amounts of the special item or items to dwellings in those parts of the Council’s area mentioned above divided in each case by the amount of 2(b) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts of its Council Tax for the year for dwellings in those parts of its area to which one or more special items relate.

 

(ff)      In respect of part of the Council’s area, the figures noted in Appendix 1, being the amounts given by multiplying the sums specified in 3(f) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

5.       That it be noted that for the year 2017/2018 the Police and Crime Commissioner for North Wales has stated the following amounts in a precept issued to the Council, in accordance with Section 40 of the Local Government Financ Act, 1992, for each of the categories of dwellings shown below:

 

	Band A	Band B	Band C	Band D	Band E	Band F	Band G	Band H	Band I
	166.14	193.83	221.52	249.21	304.59	359.97	415.35	498.42	581.49

 

6.       That, having calculated the aggregate in each case of the amounts at 3(ff) and 4 above, the Council, in accordance with Section 30(2) of the Local Government Finance Act, 1992, hereby sets the amounts noted in Appendix 2 as the amounts of Council Tax for the year 2017/2018 for each of the categories of dwellings shown therein.