Agenda item

Replacement page 17 which contains an amended figure for Sport Aberdeen for 2018/19. Revised version of Appendix 2 also circulated.

The Council had before it a report by the Director of Resources which provided details of (1) the General Fund revenue budget for 2018/19 and high level summary for the following four years; and (2) the General Fund capital programme for 2018/19 to 2022/23.

 

The report recommended:-

that the Council -

 

Target Operating Model

 

(a)          note the alignment of the Council’s revenue budget to the interim functional structure approved by Council in August 2017;

(b)          instruct the Chief Officer - Finance to formally notify the approved budget to all of the newly confirmed Chief Officers within the interim functional structure;

 

Balance Sheet Recommendations

 

(c)          note the projected balance sheet position including the reserves as at 31 March 2018;

(d)          approve the General Fund capital programme as attached at Appendix 1 of the report, and by doing so note that the Council will be maintaining the level of debt as advised to Moody’s, the Council’s credit rating agency;

(e)          approve the Prudential Indicators as attached at Appendix 2 to the report; and by doing so note that this demonstrates the affordability and sustainability of the Council’s borrowing levels and therefore ability to sustain its credit rating;

(f)           approve the recommended use of reserves for 2018/19 as detailed in paragraph 3.39 of the report, and by doing so note that the level of uncommitted reserves is in line with CIPFA guidance as noted in its “Local Authority Reserves & Balances” bulletin published in July 2014;

(g)          note the contingent liabilities faced by the Council as detailed in Appendix 3 to the report, which may place future financial liabilities on the Council;

(h)          note that transformation of the Council will require the use of reserves, including capital receipts to fund associated costs;

(i)            delegate to the Chief Officer - Finance to make suitable provision as part of the 2017/18 Annual Accounts for any future VS/ER payments which will be reported back to the relevant committee in due course;

(j)            approve the reserves strategy as outlined in paragraphs 3.37 to 3.39 of the report which will ensure that reserves will increase over the medium term and therefore provide the Council with additional liquidity and financial resilience going forward;

(k)          instruct the Chief Officer - Finance to report back to the relevant committee before December 2018 on a detailed reserves strategy;

 

Revenue Budget Recommendations

 

5 Year Revenue Budget Position

(l)            note the draft financial position for 2019/20 to 2022/23 as shown in paragraph 3.40 of the report;

(m)        instruct the Chief Executive to continue to progress the transformation programme, reporting transformation options and associated financial benefits through the approved transformation governance process, in order to address the future years funding gap;

 

One Year Revenue Budget Position and Taxation

(n)          instruct officers on whether Council is exercising the flexibility to increase Council Tax under the local government finance circular and if so, to what level;

(o)          set a balanced revenue budget for 2018/19 which is a statutory requirement, by noting and agreeing the proposed options contained in Appendix 5;

(p)          note and accept the conditions of the Local Government Finance Settlement for 2018/19;

(q)          approve the level of funding for 2018/19 as detailed in paragraph 3.63 of the report, in relation to the Integration Joint Board (IJB), and note that it will be for the IJB itself to determine how it will balance its budget;

(r)           note that the IJB budget assumes an uplift on the national care home contract of 3.3%, This uplift has, in the last week, been agreed at 3.39% and therefore, instruct the Chief Officer (IJB) to work within the funding provided, taking action as appropriate to identify and implement further budget savings to achieve this; and

(s)          note that the budget assumes a pay award in line with the Scottish Government Public Sector Pay Policy and that in the event of national negotiations exceeding this assumption, instruct the Chief Officer - Finance to report back to the Finance, Policy and Resources Committee on options to finance the additional costs.

 

Councillor Lumsden moved, seconded by Councillor Laing:-

            That the Council -

 

            Target Operating Model

 

(1)      note the alignment of the Council’s revenue budget to the interim functional structure approved by Council in August 2017;

(2)      instruct the Chief Officer - Finance to formally notify the approved budget to all of the newly confirmed Chief Officers within the interim functional structure;

 

Balance Sheet Recommendations

 

(3)      note the projected balance sheet position including the reserves as at 31 March 2018;

(4)      approve the General Fund capital programme as attached at Appendix 1 of the report, and by doing so note that the Council will be maintaining the level of debt as advised to Moody’s, the Council’s credit rating agency;

(5)      approve an additional capital investment of £10million on road maintenance over the next five years;

(6)      approve the Prudential Indicators as below, and by doing so note that this demonstrates the affordability and sustainability of the Council’s borrowing levels and therefore ability to sustain its credit rating;

(7)      approve the recommended use of reserves for 2018/19 as detailed in paragraph 3.39 of the report, and by doing so note that the level of uncommitted reserves is in line with CIPFA guidance as noted in its “Local Authority Reserves & Balances” bulletin published in July 2014;

(8)      note the contingent liabilities faced by the Council as detailed in Appendix 3 of the report, which may place future financial liabilities on the Council;

(9)      note that transformation of the Council will require the use of reserves, including capital receipts to fund associated costs;

(10)   delegate to the Chief Officer - Finance to make suitable provision as part of the 2017/18 Annual Accounts for any future VS/ER payments which will be reported back to the relevant committee in due course;

(11)   approve the reserves strategy as outlined in paragraphs 3.37 to 3.39 of the report which will ensure that reserves will increase over the medium term and therefore provide the Council with additional liquidity and financial resilience going forward;

(12)   instruct the Chief Officer - Finance to report back to the City Growth and Resource Committee before December 2018 on a detailed reserves strategy;

 

Revenue Budget Recommendations

 

5 Year Revenue Budget Position

 

(13)   note the draft financial position for 2019/20 to 2022/23 as shown in paragraph 3.40 of the report;

(14)   instruct the Chief Executive to continue to progress the transformation programme, reporting transformation options and associated financial benefits through the approved transformation governance process, in order to address the future years funding gap;

 

One Year Revenue Budget Position and Taxation

 

(15)   instruct officers to implement a 3% Council Tax increase for 2018/19 as allowed under the local government finance circular;

(16)   note the conditions of the local government finance settlement for 2018/19;

(17)   approve the level of funding for 2018/19 as detailed in paragraph 3.63 of the report, as agreed by the IJB on 13 February 2018 in relation to the IJB, and note that it will be for the IJB itself to determine how it will balance its budget;

(18)   note that the IJB budget assumes an uplift on the national care home contract of 3.3%. This uplift has, in the last week, been agreed at 3.39% and therefore, to instruct the Chief Officer (IJB) to work within the funding provided, taking action as appropriate to identify and implement further budget savings to achieve this;

(19)   note that the budget assumes a pay award in line with the Scottish Government Public Sector Pay Policy and that in the event of national negotiations exceeding this assumption, to instruct the Chief Officer - Finance to report back to the City Growth and Resources Committee on options to finance the additional costs;

(20)   approve the balanced revenue budget for 2018/19 as circulated;

(21)   instruct the Director of Resources to enter discussions with the administrators of the North East Scotland Credit Union in terms of how the Council may facilitate the Credit Union’s long-term viability;

(22)   note that the level of 2018/19 funding for Sport Aberdeen be held at the same level as 2017/18 providing that they give all staff the same pay awards as Council staff from 1 April 2018;

 

Other Recommendations

 

(23)   instruct the Head of Commercial and Procurement Services to bring forward an all options business case report to the September 2018 meeting of the City Growth and Resources Committee on the best way forward for sport in Aberdeen given the imminent contractual 10-year agreement with Sport Aberdeen is about to end;

(24)   as part of our commitment to Civic Leadership and Urban Governance, to instruct the Chief Officer - City Growth to arrange for a state of the city annual conference led by the Co-Leaders to coincide with the independent report by the Economic Panel Report due back before members each year;

(25)   instruct the Chief Officer - Corporate Landlord to bring forward an all options business case to the Capital Programme Committee in September 2018 on the most appropriate option for the old AECC;

(26)   instruct the Chief Officer - Corporate Landlord to bring an up to date business case and progress report to the Capital Programme Committee on the following:

·      the proposed Tillydrone new Primary School;

·      Torry Primary School Hub;

·      Milltimber Primary School; and

·      Berryden Corridor (all stages);

(27)   instruct the Chief Officer - Corporate Landlord to bring a review of the School Estate report within the next nine months to the Education Operational Delivery Committee and thereafter to forward the report to the Capital Programme Committee;

(28)   instruct the Chief Officer - City Growth to bring forward an all options business case to the Capital Programme Committee in September 2018 on how best to proceed with Queens Square as part of the next phase of the masterplan;

(29)   instruct the Chief Officer - City Growth to enter into dialogue with the United Kingdom and Scottish Government on how best to progress a City Deal 2 noting the Aberdeen Region City Deal said “In order to realise the full potential of the area a transport appraisal (supported by UK Government and Scottish Government, Transport Scotland and local partners) will take a 20 year strategic view of the transport implications of the investment unlocked by this Deal across all modes including road and rail. This work will commence in 2016 and will be based on Scottish Transport Appraisal Guidance. The appraisal will recognise the priorities of local, regional and national transport plans and programmes as well as the existing work outlined above.”;

(30)   instruct the Chief Executive to write to the Chief Executive of COSLA and Scottish Government calling for a review of the funding mechanism;

(31)   as part of our commitment to Civic Leadership and Urban Governance, instruct the Chief Executive to bring a report to the City Growth and Resources Committee working with partners to include our ALEOs, Aberdeen and Grampian Chamber of Commerce, Aberdeen Burgesses Federation of Small Businesses, Opportunity North East and Scottish Enterprise to assess the impact on Aberdeen of Scottish Government funding in comparison to the funding received by other local authorities and identify how the Council can encourage the Scottish Government to provide a better financial settlement for Aberdeen;

(32)   note that Pupil Equity Funding is allocated by the Scottish Government on the basis of free school meal eligibility. To note the approach to estimating free school meals registrations is being kept under review by the Scottish Government to allow the Scottish Government to improve the quality of data for identifying children living in households affected by poverty. To instruct the Chief Operating Officer to bring a report to the next Education Operational Delivery Committee on how the Council can substantially increase the uptake of free school meals throughout the city;

(33)   note the success of similar projects in UK cities and instruct the Chief Officer - Strategic Place Planning to provide a business case to the Capital Programme Committee around the introduction of a cycle hire scheme which would have the potential to bring a real sea-change to transport in the city;

(34)   to agree to ring fence £1,351,000 of the Council Tax increase of £3,389,000 (40%) to be spent on the following growth items:

 

	£
Towards a Fairer Aberdeen provision of Meals to Children during school holidays	50,000
Set up a Co-operative Business Development fund to support small businesses and their staff to explore new ways of working in the future	75,000
Supported Public Transport	132,000
Mental Health for Child	100,000
Period poverty	40,000
Retention of Pupil Support Assistants	954,000
Total Council Tax ring fence	1,351,000

 

(35)   instruct the Director of Resources to report back to the City Growth and Resources Committee in April 2018 on the Council’s further involvement with the Housing LLP.

 

	Appendix 1
Administration Budget Proposals - General Services Revenue
	2018/19
	£'000
Deficit from Council Report	4,883	*
Appendix 5 (Options)
Council Tax Increase (3%)	(3,389)
Fees & Charges	0
Deficit	1,494
Appendix 6 (Committee Referrals)
Greyhope Bay - grant award	20
Electric Vehicle Charging	54
Reclaiming Social Work - Revised Staffing (Saving)	(300)
LED Lighting in Parks	110
Maintenance of Paths in Parks	5
Gaps in Public Transport Network	132
Nuart (3 years)	100
Great Aberdeen Run (2 years)	150
Sale of Pitmedden Road will result in loss of revenue income	106
Lochside Transport	110
External Partnership Activity	4
Towards a Fairer Aberdeen - Provision of Meals to Children during School Holidays	50
Deficit	2,035
Appendix 6 (Committee Referrals) - Move to Common Good
LED Lighting in Parks	(110)
Maintenance of Paths in Parks	(5)
Nuart (3 years)	(100)
Great Aberdeen Run (2 years)	(150)
Deficit	1,670
Appendix 4 (Movements) - Move to Capital Programme
Roads Maintenance £10m investment	(500)
Support for New Initiatives
Period Poverty	40
Mental Health	100
Co-operative Development Fund	75
Empty Homes Officer	20
Living Streets Dog Fouling Initiative - City wide	10
UNESCO Culture	250
Pride March	5
Alive @ 5	80
North East Sensory Service	15
Woman in Politics	10
Savings
City of Culture bid	(500)
3rd Party Spend (additional)	(810)
Use of Bus Lane Enforcement Surplus	(200)
Advertising	(150)
Lets	(50)
Aberdeen International Youth Festival	(65)
Surplus	(0)
*  this includes Pupil Support Assistants

 

 

APPENDIX 2

ABERDEEN CITY COUNCIL

2017/18 to 2022/23

 

THE PRUDENTIAL CODE

For Capital Finance in Local Authorities

 

The Code requires the following Prudential Indicators are set for the Council:-

 

	Capital Expenditure
Non HRA         HRA	2016/17 £’000 Actual   175,275 42,154	2017/18 £’000 Estimate   198,663 55,318	2018/19 £’000 Estimate   269,224 42,051	2019/20 £’000 Estimate   158,400 45,335	2020/21 £’000 Estimate   93,260 30,204	2021/22 £’000 Estimate   46,537 26,500	2022/23 £’000 Estimate   21,471 21,991

 

		Ratio of Financing Costs to Net Revenue Stream
Non HRA         HRA	2016/17 Actual   5.7% 14.7%	2017/18 Estimate   4.8% 17.2%	2018/19 Estimate   7.4% 16.0%	2019/20 Estimate   8.5% 17.0%	2020/21 Estimate   9.1% 18.2%	2021/22 Estimate   9.2% 18.1%	2022/23 Estimate   9.2% 17.7%

 

 

	Capital Financing Requirement
Non HRA         HRA Total	2016/17 £’000 Actual   578,193 272,091 850,284	2017/18 £’000 Estimate   713,745 298,705 1,012,450	2018/19 £’000 Estimate   912,923 312,866 1,225,789	2019/20 £’000 Estimate   1,010,136 327,757 1,337,893	2020/21 £’000 Estimate   1,031,118 326,379 1,357,497	2021/22 £’000 Estimate   1,000,014 319,391 1,319,405	2022/23 £’000 Estimate   969,093 305,886 1,274,979

 

	Gross Borrowing
Borrowing	2016/17 £’000 Actual   746,913	2017/18 £’000 Estimate   866,291	2018/19 £’000 Estimate   1,031,068	2019/20 £’000 Estimate   1,247,629	2020/21 £’000 Estimate   1,362,730	2021/22 £’000 Estimate   1,384,128	2022/23 £’000 Estimate   1,349,410

 

	Authorised Limit for External Debt
Operational Boundary 10% Margin Total	2017/18 £’000   1,145,542 114,554 1,260,096	2018/19 £’000   1,358,881 135,888 1,494,769	2019/20 £’000   1,470,985 147,098 1,618,083	2020/21 £’000   1,490,589 149,059 1,639,648	2021/22 £’000   1,452,497 145,250 1,597,747	2022/23 £’000   1,408,071 140,807 1,548,878

 

	Operational Boundary for External Debt
Borrowing Other Long Term Liabilities Total	2017/18 £’000   1,044,569   100,973 1,145,542	2018/19 £’000   1,261,130   97,751 1,358,881	2019/20 £’000   1,376,231   94,754 1,470,985	2020/21 £’000   1,397,629   92,960 1,490,589	2021/22 £’000   1,362,911   89,586 1,452,497	2022/23 £’000   1,321,676   86,395 1,408,071

 

 

Councillor Flynn moved as an amendment, seconded by Councillor Nicoll:-

            That the Council -

           

            Target Operating Model

 

(1)      note the alignment of the Council’s revenue budget to the interim functional structure approved by Council in August 2017;

(2)      instruct the Chief Officer - Finance to formally notify the approved budget to all of the newly confirmed Chief Officers within the interim functional structure;

 

Balance Sheet Recommendations

 

(3)      note the projected balance sheet position including the reserves as at 31 March 2018;

(4)      approve the General Fund capital programme as attached at Appendix 1 of the report, and by doing so note that the Council will be maintaining the level of debt as advised to Moody’s, the Council’s credit rating agency;

(5)      approve an additional capital investment of £10million on road maintenance over the next five years;

(6)      in addition include the following capital items:

·         £250,000 for land assessment work for a new crossing at the Bridge of Dee and instruct the Director of Resources to instruct these works;

(7)      approve the Prudential Indicators as included below; and by doing so note that this demonstrates the affordability and sustainability of the Council’s borrowing levels and therefore ability to sustain its credit rating;

(8)      approve the recommended use of reserves for 2018/19 as detailed in paragraph 3.39 of the report, and by doing so note that the level of uncommitted reserves is in line with CIPFA guidance as noted in its “Local Authority Reserves & Balances” bulletin published in July 2014;

(9)      note the contingent liabilities faced by the Council as detailed in Appendix 3 of the report, which may place future financial liabilities on the Council;

(10)   note that transformation of the Council will require the use of reserves, including capital receipts to fund associated costs;

(11)   delegate to the Chief Officer - Finance to make suitable provision as part of the 2017/18 Annual Accounts for any future VS/ER payments which will be reported back to the relevant committee in due course;

(12)   approve the reserves strategy as outlined in paragraphs 3.37 to 3.39 of the report which will ensure that reserves will increase over the medium term and therefore provide the Council with additional liquidity and financial resilience going forward;

(13)   instruct the Chief Officer - Finance to report back to the relevant committee before December 2018 on a detailed reserves strategy;

 

Revenue Budget Recommendations

 

5 Year Revenue Budget Position

 

(14)   note the draft financial position for 2019/20 to 2022/23 as shown in paragraph 3.40 of the report;

(15)   instruct the Chief Executive to continue to progress the transformation programme, reporting transformation options and associated financial benefits through the approved transformation governance process, in order to address the future years funding gap;

 

One Year Revenue Budget Position and Taxation

 

(16)   instruct officers to implement a 3% Council Tax increase for 2018/19 as allowed under the local government finance circular;

(17)   note and accept the conditions of the Local Government Finance Settlement for 2018/19;

(18)   set a balanced revenue budget for 2018/19 which is a statutory requirement, by noting and agreeing the proposed options contained in Appendix 5 of the report as amended by Appendix 1 of this amendment and note that this includes:-

·         50% increase in community centre grants

·         50% lower price increases for parking than officer recommendations

·         no increase in prices for breakfast clubs, after school clubs and lets

·         £100,000 extra for mental heal in schools

·         £100,000 extra for homelessness action

·         £100,000 extra for winter maintenance

·         an additional £1million funding to the IJB over and above officer proposals;

(19)   note that the IJB budget assumes uplift on the national care home contract of 3.3%. This uplift has, in the last week, been agreed at 3.39% and therefore, instruct the Chief Officer (IJB) to work within the funding provided, taking action as appropriate to identify and implement further budget savings to achieve this;

(20)   note that the budget assumes a pay award in line with the Scottish Government Public Sector Pay Policy and that in the event of national negotiations exceeding this assumption, instruct the Chief Officer - Finance to report back to the City Growth and Resources Committee on options to finance the additional costs;

(21)   approve the balanced revenue budget for 2018/19 as attached as Appendix 1 of this amendment;

(22)   instruct the Director of Commissioning to report to a future committee with plans to insource Bon Accord Care (noting a required saving of £300,000 in 2019/20);

(23)   instruct the Chief Officer - City Growth to design and implement a NDR local scheme in relation to Aberdeen fish processing which provides 100% relief to eligible premises for increases above 12.5% less existing reliefs available, calculated to cost up to £0.172million which will be the overall financial cap for the scheme;

(24)   suspend Standing Order 41 with reference to Item 9.17 Proposed Purchase - Ground Wellington Road - CHI/17/216 of the FP&R meeting of 20 September 2017, and instruct the Chief Officer - Corporate Landlord to (a) cease progressing the option detailed at 3.10.2 in that report which was to request that the Scottish Government sell the ground at Wellington Road as referred to in that report to the Council at a value of £5,000; (b) instead to request that the Scottish Government sell the ground at Wellington Road as referred to in that report to the Council at the joint valuation undertaken by the Council and Scottish Government in September 2016 which was £230,000; and (c) and if agreed, instruct the Chief Officer - Governance to conclude the purchase of the ground incorporating appropriate terms to protect the Council’s interests;

(25)   instruct the Director of Resources to provide a report to a future relevant committee on the potential of the Council setting up a community bank including the cost implications of such a venture;

 

Other Recommendations

 

(26)   instruct the Chief Officer - Corporate Landlord to bring forward an all options business case to the Capital Programme Committee in September 2018 on the most appropriate option for the old AECC;

(27)   instruct the Chief Officer - Corporate Landlord to bring an up to date business case and progress report to the Capital Programme Committee on the following:

·      the proposed Tillydrone new Primary School;

·      Torry Primary School Hub;

·      Milltimber Primary School; and

·      Berryden Corridor (all stages);

(28)   instruct the Chief Officer - Corporate Landlord to bring a review of the School Estate report within the next nine months to the Education Operational Delivery Committee and thereafter to forward the report to the Capital Programme Committee;

(29)   instruct the Chief Officer - City Growth to bring forward an all options business case to the Capital Programme Committee in September 2018 on how best to proceed with Queens Square as part of the next phase of the masterplan;

(30)   instruct the Chief Officer - City Growth to enter into dialogue with the United Kingdom and Scottish Government on how best to progress a City Deal 2 noting the Aberdeen Region City Deal said “In order to realise the full potential of the area a transport appraisal (supported by UK Government and Scottish Government, Transport Scotland and local partners) will take a 20 year strategic view of the transport implications of the investment unlocked by this Deal across all modes including road and rail. This work will commence in 2016 and will be based on Scottish Transport Appraisal Guidance. The appraisal will recognise the priorities of local, regional and national transport plans and programmes as well as the existing work outlined above.”;

(31)   instruct the Chief Executive to write to the Chief Executive of COSLA and Scottish Government calling for a review of the funding mechanism;

(32)   note that Pupil Equity Funding is allocated by the Scottish Government on the basis of free school meal eligibility. To note the approach to estimating free school meals registrations is being kept under review by the Scottish Government to allow the Scottish Government to improve the quality of data for identifying children living in households affected by poverty. To instruct the Chief Operating Officer to bring a report to the next Education Operational Delivery Committee on how the Council can substantially increase the uptake of free school meals throughout the city;

(33)   note the success of similar projects in UK cities and instruct the Chief Officer - Strategic Place Planning to provide a business case to the Capital Programme Committee around the introduction of a cycle hire scheme which would have the potential to bring a real sea-change to transport in the city; and

(34)   instruct the Director of Resources to report back to the City Growth and Resources Committee in April 2018 on the Council’s further involvement with the Housing LLP.

 

 

SNP Budget Proposals - General Services Revenue	APPENDIX 1
	2018/19
	£'000
Deficit from Council Report	4,883
2b Movement
Funding to IJB - reduced in line with ACC funding	832
Additional funding to IJB	168
City of Culture	(500)
Deficit	5,383
2c Committee Referrals
Greyhope Bay - grant award	20
Electric Vehicle Charging	54
Reclaiming Social Work - Revised Staffing (Saving)	(300)
LED Lighting in Parks	110
Maintenance of Paths in Parks	5
Gaps in Public Transport Network	132
Nuart (3 years)	100
Great Aberdeen Run (2 years)	150
Sale of Pitmedden Road, resulting in loss of revenue income	106
Lochside Transport	110
External Partnership Activity	4
Towards a Fairer Aberdeen - Provision of Meals to Children during School Holidays	50
Deficit	5,924
2d Options
Council Tax Increase (3%)	(3,389)
Museum & Galleries	(150)
Corporate Advertising	(150)
School Lettings	(50)
Revised Car Parking Options (as below)	(303)
Officers General Fees and Charges Increases	(850)
EXCLUDING Breakfast Clubs, School Lets, Crem Caskets, Burials	75
EXCLUDING  After School Clubs	15
EXCLUDING  Memorial benches	4
Reversal of Administration Policy on residents parking permits	(248)
Implementation Alive at Five scheme (multi storey parking)	140
Introduce a Councillor Car parking levy	(16)
Remove funding to Bulawayo Trust	(45)
Remove funding to Gomel Trust	(22)
Remove funding to Mary Garden Prize	(2)
Disestablish Economic Policy Panel	(15)
Deficit	918
2e Committee Referrals (moved to Common Good)
LED Lighting in Parks	(110)
Maintenance of Paths in Parks	(5)
Nuart (3 years)	(100)
Great Aberdeen Run (2 years)	(150)
Additions
Maintain budget lines for Printing, Stationery, Photocopying, Hospitality, Conferences, Staff Advertising and Uniforms at 2017/18 forecast outturn levels	(310)
35 hour week for new staff	(900)
NDR cap for fish processing businesses	172
Increase community centre grants by 50%	140
Mental health in schools	100
Additional homelessness action	100
Winter maintenance	100
Surplus/Deficit	(44)

 

 

SNP - REVISED PARKING CHARGES
PARKING PERMITS	PROPOSED CHARGES 2018/19		Est. Additional Income
Business Permits (12 months)	£510		£6,000
Contractor Permits (12 months)	£560		£2,000
Monthly Permits	£210		n/a
Residents Permits All Zones (First Permits) (12 months)	£60		£124,000
Residents Permits All Zones (Second Permits) (12 months)	£140		£30,000
			£162,000
PAY & DISPLAY CHARGES	PROPOSED CHARGES 2018/19
City Centre Parking Zones A, B, C, E, F & G	Up to 20 minute stay - £1.10
	Up to 40 minute stay - £2.20
	Up to 1 hour stay - £3.30
	Up to 2 hour stay - £4.40		£73,000
PAY & DISPLAY CHARGES	PROPOSED CHARGES 2018/19
West North Street, Chapel Street, Frederick Street (part of) & Denburn	Up to 1 hour stay - £1 (Denburn & Frederick Street)
	Up to 2 hour stay - £2.10
	Up to 3 hour stay - £3.10
	Up to 4 hour stay - £4.20
	Up to 5 hour stay - £5.30
	Up to 6 hour stay - £6.30
	Up to 10 hour stay - £10.50
	Up to 14 hour stay - £17.00		£50,000
Car Parks	PROPOSED CHARGES 2018/19
Summer Street, Frederick Street (part of) & Greyfriars Car Parks	Up to 2 hour stay - £2.40
	Up to 3 hour stay - £3.60
	Up to 4 hour stay - £4.70 (maximum stay)		£18,000
			£303,000

           

 

APPENDIX 2

ABERDEEN CITY COUNCIL

2017/18 to 2022/23

 

THE PRUDENTIAL CODE

For Capital Finance in Local Authorities

 

The Code requires the following Prudential Indicators are set for the Council:-

 

	Capital Expenditure
Non HRA         HRA	2016/17 £’000 Actual   175,275 42,154	2017/18 £’000 Estimate   198,663 55,318	2018/19 £’000 Estimate   268,974 42,051	2019/20 £’000 Estimate   155,900 45,335	2020/21 £’000 Estimate   90,260 30,204	2021/22 £’000 Estimate   42,537 26,500	2022/23 £’000 Estimate   21,471 21,991

 

		Ratio of Financing Costs to Net Revenue Stream
Non HRA         HRA	2016/17 Actual   5.7% 14.7%	2017/18 Estimate   4.8% 17.2%	2018/19 Estimate   7.4% 16.0%	2019/20 Estimate   8.5% 17.0%	2020/21 Estimate   9.1% 18.2%	2021/22 Estimate   9.2% 18.1%	2022/23 Estimate   9.2% 17.7%

 

 

	Capital Financing Requirement
Non HRA         HRA Total	2016/17 £’000 Actual   578,193 272,091 850,284	2017/18 £’000 Estimate   713,745 298,705 1,012,450	2018/19 £’000 Estimate   913,173 312,866 1,226,039	2019/20 £’000 Estimate   1,010,386 327,757 1,338,143	2020/21 £’000 Estimate   1,031,368 326,379 1,357,747	2021/22 £’000 Estimate   1,000,264 319,391 1,319,655	2022/23 £’000 Estimate   969,343 305,886 1,275,229

 

	Gross Borrowing
Borrowing	2016/17 £’000 Actual   746,913	2017/18 £’000 Estimate   866,291	2018/19 £’000 Estimate   1,031,068	2019/20 £’000 Estimate   1,247,879	2020/21 £’000 Estimate   1,362,980	2021/22 £’000 Estimate   1,384,378	2022/23 £’000 Estimate   1,349,660

 

	Authorised Limit for External Debt
Operational Boundary 10% Margin Total	2017/18 £’000   1,145,542 114,554 1,260,096	2018/19 £’000   1,359,131 135,913 1,495,044	2019/20 £’000   1,471,235 147,123 1,618,358	2020/21 £’000   1,490,839 149,084 1,639,923	2021/22 £’000   1,452,747 145,275 1,598,022	2022/23 £’000   1,408,321 140,832 1,549,153

 

	Operational Boundary for External Debt
Borrowing Other Long Term Liabilities Total	2017/18 £’000   1,044,569   100,973 1,145,542	2018/19 £’000   1,261,380   97,751 1,359,131	2019/20 £’000   1,376,481   94,754 1,471,235	2020/21 £’000   1,397,879   92,960 1,490,839	2021/22 £’000   1,363,161   89,586 1,452,747	2022/23 £’000   1,321,926   86,395 1,408,321

 

 

Councillor Yuill moved as a further amendment, seconded by Councillor Greig:-

            That the Council -

 

            Target Operating Model

 

(1)      note the alignment of the Council’s revenue budget to the interim functional structure approved by Council in August 2017;

(2)      instruct the Chief Officer - Finance to formally notify the approved budget to all of the newly confirmed Chief Officers within the interim functional structure;

 

Balance Sheet Recommendations

 

(3)      note the projected balance sheet position including the reserves as at 31 March 2018;

(4)      approve the General Fund capital programme as attached at Appendix 1 of the report, and by doing so note that the Council will be maintaining the level of debt as advised to Moody’s, the Council’s credit rating agency;

(5)      in addition include the following capital items:

(i)        additional capital investment over the next 5 years of £12.5million in roads and pavement repairs and resurfacing;

(ii)       allocate £100,000 for a feasibility study into the dualling of the Lang Stracht;

(iii)      a commitment to increase Aberdeen’s resilience to respond to snow and cold weather with an investment of £130,000 in additional winter maintenance equipment;

(6)      confirm that it is committed to the construction of a new bridge over the River Dee and note that the initial STAG process is complete and that a review is to be carried out following the opening of the AWPR to enable changes in traffic patterns to be accurately assessed, that this review is likely to begin in early 2019 and run into 2019/20 and that the STAG reports will be updated with the review outcomes;

(7)      approve the Prudential Indicators as at Appendix 2 below; and by doing so note that this demonstrates the affordability and sustainability of the Council’s borrowing levels and therefore ability to sustain its credit rating;

(8)      approve the recommended use of reserves for 2018/19 as detailed in paragraph 3.39 of the report, and by doing so note that the level of uncommitted reserves is in line with CIPFA guidance as noted in its “Local Authority Reserves & Balances” bulletin published in July 2014;

(9)      note the contingent liabilities faced by the Council as detailed in Appendix 3 of the report, which may place future financial liabilities on the Council;

(10)   note that transformation of the Council will require the use of reserves, including capital receipts to fund associated costs;

(11)   delegate to the Chief Officer - Finance to make suitable provision as part of the 2017/18 Annual Accounts for any future VS/ER payments which will be reported back to the relevant committee in due course;

(12)   approve the reserves strategy as outlined in paragraphs 3.37 to 3.39 of the report which will ensure that reserves will increase over the medium term and therefore provide the Council with additional liquidity and financial resilience going forward;

(13)   instruct the Chief Officer - Finance to report back to the relevant committee before December 2018 on a detailed reserves strategy;

(14)   instruct officers to undertake a feasibility study into the dualling of the Lang Stracht;

(15)   instruct the Chief Operating Officer to report to the future committee recommending how the additional capital funding of £2million for road and pavement repairs and resurfacing should be utilised;

 

Revenue Budget Recommendations

 

5 Year Revenue Budget Position

 

(16)   note the draft financial position for 2019/20 to 2022/23 as shown in paragraph 3.40 of the report;

(17)   instruct the Chief Executive to continue to progress the transformation programme, reporting transformation options and associated financial benefits through the approved transformation governance process, in order to address the future years funding gap;

 

One Year Revenue Budget Position and Taxation

 

(18)   instruct officers to implement a 3% Council Tax increase for 2018/19 as allowed under the local government finance circular;

(19)   approve the balanced revenue position for 2018/19 as attached at Appendix 1 of this amendment and note that this includes:

(i)        an additional £110,000 investment in teachers’ CPD

(ii)       creation of the post of Chief Officer - Education

(iii)      investment in head teacher recruitment

(iv)      an increase of £95,000 for leased community centre grants

(v)       a feasibility study into the transfer of Hazlehead Swimming Pool to community management

(vi)      increasing funding levels for Sport Aberdeen

(vii)    funding for the installation of additional bus shelters

(viii)   £185,000 to increase winter maintenance and road response team capacity

(ix)      an additional £183,000 for supported bus services in Aberdeen

(x)       funding to undertake public consultation on a possible Ashley controlled parking zone

(xi)      the creation of a Community Empowerment Improvements Fund

(xii)    £200,000 of additional investment in street and urban tree planting

(xiii)   £200,000 for grass cutting of Council maintained spaces;

(20)   set a balanced revenue budget for 2018/19 which is a statutory requirement, by noting and agreeing the proposed options contained in Appendix 5 of the report as amended by Appendix 1 of this amendment;

(21)   note and accept the conditions of the Local Government Finance Settlement for 2018/19;

(22)   approve the level of funding for 2018/19 as detailed in paragraph 3.63 of the report, in relation to the IJB, and note that it will be for the IJB itself to determine how it will balance its budget;

(23)   note that the IJB budget assumes an uplift on the national care home contract of 3.3%. This uplift has, in the last week, been agreed at 3.39% and therefore, instruct the Chief Officer (IJB) to work within the funding provided, taking action as appropriate to identify and implement further budget savings to achieve this;

(24)   note that the budget assumes a pay award in line with the Scottish Government Public Sector Pay Policy and that in the event of national negotiations exceeding this assumption, to instruct the Chief Officer - Finance to report back to the City Growth and Resources Committee on options to finance the additional costs;

(25)   instruct the Chief Officer - Corporate Landlord to undertake a feasibility study into the transfer of Hazlehead Swimming Pool to community management;

(26)   instruct the Chief Operating Officer to report to a future committee on how the additional investment in supported bus services could best be used to provide bus links to isolated communities;

(27)   instruct the Chief Operating Officer to report to a future committee recommending how the additional CFCR funds for road and pavement repairs should be utilised; and

(28)   agree that the process to be followed to recruit the Chief Officer - Education will be the same as that undertaken for other Chief Officer posts, and instruct the Chief Executive to prepare a job description and person specification for this post and to report on this, together with such consequential changes as may be required to other job descriptions, to the appropriate committee.

 

 

Liberal Democrat Budget Proposals - General Services Revenue - Appendix 1
		2018/19
		£'000
Deficit from Council Report		4,883
Committee Decisions Referred to Budget Process
Greyhope Bay - grant award	20
Sale of Pitmedden Road, resulting in loss of revenue income	106
Electric Vehicle Charging	54
Lochside Academy School Transport	110
External partnership activity	4
Towards a fairer Aberdeen - provision of meals to children during school holidays	50
Total Committee Decisions Referred to Budget Process		344
New Initiatives
Head teacher recruitment initiative	25
Increase schools' devolved budget for teacher continuing professional development (CPD)	110
Create post of Chief Officer - Education	112
Increase Leased Community Centre Grants	95
Feasibility Study into the Transfer of Hazlehead Swimming Pool to Community Management	50
Sport Aberdeen - additional resources	31
Install Additional Bus Shelters	50
Increase Winter Maintenance and Road Response Team Capacity	185
Fill gaps in public transport network using supported bus services	183
Undertake public consultation on possible Ashley CPZ	10
Community Environmental Improvements Fund	100
Street and Urban Tree Planting, Maintenance, Management and Staffing	200
Grass Cutting of Council Maintained Spaces	200
Revenue cost of Additional Borrowing for Capital Programme	109
Total New Initiatives		1,460
Savings / New ways of Working
Reclaiming Social Work - revised staffing	(300)
Make no City of Culture bid	(500)
Introduce a new working week of 35 hours for new employees	(900)
Invest in more council tax staff to increase income	(100)
Total Savings / New Ways of Working		(1,800)
Commercial Income Review	(1,638)
No increase in Residents' Parking Permit fees	124
Inflation only increase in memorial bench charge	4
Revised Commercial Income Review		(1,510)
Council Tax
Increase council tax by rate of inflation (CPI Jan 2018) (3%)		(3,377)
Total Shortfall		0

 

 

Liberal Democrat Capital Budget proposal 2018/19
	£000
Officers capital plan PLUS:
New Initiatives
Additional investment in road and pavement repairs and resurfacing (5 years @ £2.5M)	2,500
Feasibility study into the dualing of the Lang Stracht	100
Muli-use winter maintenance and response plant	130
	2,730
Funded by:
Capital borrowing	2,730

 

 

APPENDIX 2

ABERDEEN CITY COUNCIL

2017/18 to 2022/23

 

THE PRUDENTIAL CODE

For Capital Finance in Local Authorities

 

The Code requires the following Prudential Indicators are set for the Council:-

 

	Capital Expenditure
Non HRA         HRA	2016/17 £’000 Actual   175,275 42,154	2017/18 £’000 Estimate   198,663 55,318	2018/19 £’000 Estimate   271,454 42,051	2019/20 £’000 Estimate   158,400 45,335	2020/21 £’000 Estimate   92,760 30,204	2021/22 £’000 Estimate   45,037 26,500	2022/23 £’000 Estimate   23,971 21,991

 

		Ratio of Financing Costs to Net Revenue Stream
Non HRA         HRA	2016/17 Actual   5.7% 14.7%	2017/18 Estimate   4.8% 17.2%	2018/19 Estimate   7.4% 16.0%	2019/20 Estimate   8.5% 17.0%	2020/21 Estimate   9.1% 18.2%	2021/22 Estimate   9.2% 18.1%	2022/23 Estimate   9.2% 17.7%

 

 

	Capital Financing Requirement
Non HRA         HRA Total	2016/17 £’000 Actual   578,193 272,091 850,284	2017/18 £’000 Estimate   713,745 298,705 1,012,450	2018/19 £’000 Estimate   915,653 312,866 1,228,519	2019/20 £’000 Estimate   1,015,366 327,757 1,343,123	2020/21 £’000 Estimate   1,038,848 326,379 1,365,227	2021/22 £’000 Estimate   1,010,244 319,391 1,329,635	2022/23 £’000 Estimate   981,823 305,886 1,287,709

 

	Gross Borrowing
Borrowing	2016/17 £’000 Actual   746,913	2017/18 £’000 Estimate   866,291	2018/19 £’000 Estimate   1,031,068	2019/20 £’000 Estimate   1,250,359	2020/21 £’000 Estimate   1,367,960	2021/22 £’000 Estimate   1,391,858	2022/23 £’000 Estimate   1,359,640

 

 

	Authorised Limit for External Debt
Operational Boundary 10% Margin Total	2017/18 £’000   1,145,542 114,554 1,260,096	2018/19 £’000   1,361,611 136,161 1,497,772	2019/20 £’000   1,476,215 147,621 1,623,836	2020/21 £’000   1,498,319 149,832 1,648,151	2021/22 £’000   1,462,727 146,273 1,609,000	2022/23 £’000   1,420,801 142,080 1,562,881

 

	Operational Boundary for External Debt
Borrowing Other Long Term Liabilities Total	2017/18 £’000   1,044,569   100,973 1,145,542	2018/19 £’000   1,263,860   97,751 1,361,611	2019/20 £’000   1,381,461   94,754 1,476,215	2020/21 £’000   1,405,359   92,960 1,498,319	2021/22 £’000   1,373,141   89,586 1,462,727	2022/23 £’000   1,334,406   86,395 1,420,801

 

 

There being a motion and two amendments, the Council first divided between the amendment by Councillor Flynn and the amendment by Councillor Yuill.

 

On a division, there voted:-

 

For the amendment by Councillor Flynn  (19)  -  Councillors Allard, Alphonse, Cameron, Cooke, Copland, Cormie, Jackie Dunbar, Flynn, Henrickson, Hutchison, MacGregor, Catriona MacKenzie, McLellan, McRae, Nicoll, Noble, Samarai, Sandy Stuart and Townson.

 

For the amendment by Councillor Yuill  (3)  -  Councillors Delaney, Greig and Yuill.

 

Declined to vote  (23)  -  Lord Provost; Depute Provost; and Councillors Allan, Bell, Boulton, Lesley Dunbar, Duncan, Graham, Grant, Houghton, Hunt, Imrie, John, Laing, Lumsden, Macdonald, Avril MacKenzie, Malik, Mason MSP, Reynolds, Sellar, Jennifer Stewart and Wheeler.

 

The Council then divided between the motion and the amendment by Councillor Flynn.

 

On a division, there voted:-

 

For the motion  (23)  -  Lord Provost; Depute Provost; and Councillors Allan, Bell, Boulton, Lesley Dunbar, Duncan, Graham, Grant, Houghton, Hunt, Imrie, John, Laing, Lumsden, Macdonald, Avril MacKenzie, Malik, Mason MSP, Reynolds, Sellar, Jennifer Stewart and Wheeler.

 

For the amendment by Councillor Flynn  (19)  -  Councillors Allard, Alphonse, Cameron, Cooke, Copland, Cormie, Jackie Dunbar, Flynn, Henrickson, Hutchison, MacGregor, Catriona MacKenzie, McLellan, McRae, Nicoll, Noble, Samarai, Sandy Stuart and Townson.

 

Declined to vote  (3)  -  Councillors Delaney, Greig and Yuill.

 

The Council resolved:-

to adopt the motion.