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AWDURDOD TÂN CANOLBARTH A GORLLEWIN CYMRU
Mid and West Wales Fire and Rescue AuthorityCYFARFOD O'R PWYLLGOR ADNODDAU
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PRESENOLDEB/ATTENDANCE |
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| CADEIRYDD/CHAIRMAN: | P B Davies |
| IS-GADEIRYDD/VICE CHAIRMAN: | E T Morgan |
| AELODAU/MEMBERS: | Cyng/Cllrs: J Allen-Mirehouse, W G Bennett, J J J Davies, T W Davies, H T Lewis, D G Sullivan, C Morgan, G Seabourne, J D A Thompson |
| YMDDIHEURIADAU/APOLOGIES: | Cyng/Cllrs: D C Prothero |
The Chairman reported that Councillor F M Jones' son had been seriously injured in a car accident during the weekend and Members asked that a letter of support be sent on their behalf.
2 DECLARATION BY MEMBERS OF ANY PERSONAL INTERESTS
None were declared
3 TO CONFIRM AS A CORRECT RECORD THE MINUTES OF THE RESOURCES COMMITTEE HELD ON 17TH NOVEMBER 2003 AND 1ST DECEMBER 2003
The minutes of the above meetings were received and confirmed as a true record.
4 THE JOINT REPORT OF THE CHIEF FIRE OFFICER AND TREASURER: REVENUE AND CAPITAL BUDGET 2004/05
i) REVENUE BUDGET REQUIREMENT 2004/05
At the Resources Committee meeting on the 1 st December 2003, Committee had considered a report on discussions that had taken place with the Directors of Finance of the six constituent unitary authorities in relation to the calculation for the Fire Authority's revenue budget requirement for 2004/2005, set at an increase of 10.3% over the 2003/04 budget.
Following consideration of the report, Committee had reduced the budget requirement calculation, limiting the headline increase to 9.6%, and resolved that this figure should form the basis of the consultation process with constituent authorities. (It had been anticipated that the proposed transitional funding to meet the additional costs of the firefighters' pay settlement would be payable directly to the Unitary Authorities. Since then, an indication had been received that the Welsh Assembly Government would not be in a position to do this, and would instead make the payments directly to the Fire Authorities.)
It was likely that the level of transitional funding available to the Mid and West Wales Fire and Rescue Authority, calculated on the basis of population, would be in the region of £468,800 which would reduce the headline budget requirement to an increase of 8.2%. This position then became the basis for consultation with the constituent authorities, and a meeting had been held with Leaders and Chief Executives, at Fire and Rescue Service Headquarters, on the 8 th January 2004.
The Fire Authority had been represented at that meeting by the Chair and Vice-Chair of the Authority, the Chair of the Resources Committee, together with the Chief Fire Officer, Clerk and Treasurer. The Chief Fire Officer expressed particular appreciation to the elected members for agreeing to attend the meeting at very short notice.
During the meeting with the Leaders, Chief Executives and Directors of Finance, a wide ranging discussion took place, with the majority of those present broadly understanding the pressures facing the Fire Authority due to the Pay Increase.
Views were expressed by a representative that the budget building process was not as challenging or critical as was the case within the constituent authorities and there was a general focus on securing a more challenging emphasis on cost reductions in future years, drawing upon service reduction opportunities afforded by the Integrated Risk Management Planning process.
The general tone of the meeting had been constructive, and it had been agreed that consideration would be given to developing a forum in which constituent unitary authorities could contribute significantly earlier to the policy development initiatives flowing from the IRMP process, so that budgetary implications could be considered earlier in the financial planning cycle than had hitherto been the case.
In the meantime, no detailed proposals for any further budgetary reductions had been put forward, although specific comments had been made about the possibility of introducing charges for releasing people trapped in their vehicles in road traffic accidents as a means of increasing income levels and about the level of entertainment offered by the Authority. Members noted that a comprehensive review of all corporate events had previously been instigated by the Officers' Policy and Performance Board, the results of which would be made available in due course. It was confirmed that a copy of the notes of the meeting with the Unitary Authorities would be made available for Members' perusal.
As reported to the meeting of the Resources Committee on the 17 th November 2003, further cost pressures would arise next year, including the impact of the Regulatory Reform Order, to be introduced by the Government, which would affect the work of the Community Risk Reduction Department. Additionally costs would arise in training Fire Safety Officers and in providing extensive guidance documentation, and whilst current indications suggested that these costs could be relatively low, at about £20k - £30k, this could increase when the full implications of the Order were known. Other pressures included enhanced community fire safety activities, including home safety audits and the provision and fitting of smoke alarms in vulnerable homes. No additional funding had been included for these, nor for any other cost increases that could arise, which would have to be met from within current departmental budgets.
Committee's attention was drawn to the confirmation by the unitary authorities of the arrangements in relation to the current year's budgets whereby the backdated arrears payable under the terms of the firefighters' pay settlement would be accrued by them into current year's accounts, i.e. 2003/2004. This would effectively reduce the impact of the Fire Authority's budget requirement to an increase of 7.1% at unitary authority level.
In conclusion, the Treasurer commended the budget to Committee, and indicated that any further cuts would effectively result in a reduction in the level of service. Members thanked the Treasurer and Officers for their hard work in preparing the budget under particularly difficult and unique circumstances and were unanimous in commending the budget for approval by the full Fire Authority at their meeting on 9 th February 2004.
It was RESOLVED that
the budget requirement for the 2004/05 financial year, reduced in accordance with the decision of Committee on the 1st December 2003 be approved.
ii) CAPITAL PROGRAMME - 2004/05 - 2006/07
The proposed three year capital programme was received for consideration, which had been drawn up by reference to the agreed priorities within the Authority's current five year programme and an anticipated borrowing requirement, under the prudential borrowing system, of £1.2m in the 2004/05 and 2005/06 financial years, and £1.236m in the 2006/07 financial year.
For some years this Authority's capital budget had been inadequate to meet anything other than the most pressing, fairly small scale capital expenditure requirements. In eight years, for example, no new fire stations had been provided, with the emphasis instead on maintenance and minor improvements.
It had been hoped that this would have improved next year, under the prudential borrowing system, and Committee recalled that an increased capital allocation had therefore been included within the first budget requirement calculation submitted to the Authority's Resources Committee on the 17 th November. Given the impact of the pay settlement, however, and the views expressed by constituent authority Finance Directors, the Resources Committee, at their special meeting on the 1 st December, had reduced the level of proposed capital expenditure from £2 million to £1.2 million.
On this basis the three year programme had been calculated, within which a number of assumptions had been made and which would bring the planning cycle for capital expenditure into line with that for the revenue budget. These were:
It was noted that Senior managers within the Service had been offered the opportunity of considering the proposed three year programme, on the basis that any new requirements identified would need to displace other project/s to an equal value. The programme had been agreed by the Officers' Policy and Performance Board at its meeting in December 2003.
It was recognised that the Authority's commitment to completing the reduced integrated accommodation project at Service Headquarters in Carmarthen would severely limit the capacity to introduce any other major capital projects into the programme in the next two financial years. It was considered important therefore, that longer term projects be identified for consideration by the Authority, for future inclusion in its capital plans, although the process would need to be considered alongside the Integrated Risk Management Planning procedures, which would have a direct bearing on all aspects of capital spending. The outcome of the IRMP process would enable the Authority to consider, perhaps for the first time, an objective long-term property strategy, using contemporary risk assessment methodologies, and further reports would be submitted to Committee as the IRMP process developed.
In response to a query about the progress of the new joint Fire and Ambulance initiative at Aberystwyth, it was reported that talks were continuing, and that Members would be kept fully informed of progress. The project was not included within the draft capital programme as the likely replacement would be undertaken by way of a lease/rental arrangement with a local developer who owned the site upon which the development would be situated.
It was RESOLVED that
The three year capital programme be approved, subject to the addition of a reference to the replacement of Aberystwyth Fire Station being added with an appropriate narrative relating to the proposed funding method. (Revised programme, incorporating the amendment required by Committee, attached at Appendix 1 to these minutes)
5 THE PRUDENTIAL CODE AND PRUDENTIAL INDICATORS FOR 2004/05
Committee received a brief explanation of the Prudential Code for Capital Finance in Local Authorities and the associated prudential indicators which were required to be set and kept under review by authorities.
The prudential indicators for Mid and West Wales Fire and Rescue Authority which were required for the 2004/05 budget setting process, were presented for approval.
It was RESOLVED that
The Prudential Code and Prudential Indicators for 2004/05 were approved.
6 THE TREASURER'S BUDGET MONITORING REPORT: FINANCIAL YEAR 2003/04
i) REVENUE MONITORING REPORT FOR THE PERIOD 1ST APRIL - 31ST DECEMBER 2003
The Treasurer reported that there had been a small overspend (deficit) for the reporting period of £18k. It was noted that the full expected impact of the pay settlement for 2003/04 had now been projected to the year end which would result in a projected overspend (deficit) against the original budget of £422,500. This would be met by the Constituent Authorities and would be received under the monthly instalment arrangements in 2004/05.
The revised 2003/04 budget presented in the Report of the Chief Officer and the Treasurer had been prepared on the basis of this monitoring report. The budget total for 2003/04 had not changed as no supplementary levy had been approved. In-year monitoring reports against the revised budget would continue to show a deficit. However, the final accounts would reflect the funding of the deficit, with receipt of cash delayed to the following year.
It was RESOLVED that
The Revenue Monitoring Report for the period 1st April - 31st December 2003 be approved
ii) CAPITAL MONITORING REPORT FOR THE PERIOD 1ST APRIL - 31ST DECEMBER 2003
The expenditure incurred to date and forecast to the year end on capital projects was received, as reported against the Approved Capital Programme.
It was RESOLVED that
The Capital Monitoring Report for the period 1st April - 31st December be approved
7 SURCHARGE PROVISIONS - UNLAWFUL EXPENDITURE
Members were aware that currently surcharge provisions applied to most local government bodies in Wales.
Sections 90 and 91 of the Local Government Act 2000 amended the Audit Commission Act 1998 and removed the surcharge provisions in sections 17 and 18 of that Act, replacing them with a regime of advisory notices. Sections 90 and 91 were commenced in relation to local authorities in England and police authorities in Wales on 27 July 2002, but were not commenced in respect of other local government bodies in Wales.
The Public Audit Wales Bill in paragraph 22 of schedule 2 effectively removed the surcharge provisions from the remaining local authorities in Wales by taking "local government bodies" out of the definition of bodies subject to audit in section 29 of the Audit Commission Act. ("Local government bodies" were defined in clause 12 of the Bill.) Clause 32 of the Bill made provision relating to the declaration that an item of account was unlawful akin to that in section 17 of the Audit Commission Act, but without the surcharge provisions. Clauses 33-35 then made provision for a regime of advisory notices which mirrored that in the Local Government Act 2000.
Members were informed that the Public Audit [Wales] Bill was currently in the House of Lords and the earliest likely commencement date was next summer .
RESOLUTION
It was RESOLVED
That the current developments be noted
8 FIRE AUTHORITY ALLOWANCE REGULATIONS
Members were reminded that in March 2003 the Welsh Assembly Government had issued a consultation paper on proposals to extend the Local Authority (Allowances for Members of County and County Borough Councils and National Park Authorities) (Wales) Regulations 2002 to cover Fire Authorities. A response had been despatched to the Assembly reflecting the views of Members.
The Authority had now received a copy of the draft Local Authorities (Allowances for Members of Fire Authorities) (Wales) Regulations 2004 which was due to be considered by the Assembly on the 17 th March. It was noted that comments on the draft regulations were invited to be submitted by January 21 st .
A draft response on the Regulations on behalf of the Authority had been drawn up for consideration and approval by Members, which would then be forwarded on to the Assembly.
It was RESOLVED
That the draft response to the Welsh Assembly Government be approved for despatch.
9 VISIT TO THE FIRE SERVICE COLLEGE, MORETON-IN-MARSH
Members of the Authority had last made a visit to the Fire Service College in 2001. In view of the not inconsiderable ongoing investment made by the Authority and the impact of the implementation of the Integrated Personal Development System (IPDS), it was proposed that Members might wish to give consideration to arranging a visit to the College. This would allow an update on recent developments and management arrangements at the facility.
The role of the College as set out in the recently published Draft Fire and Rescue National Framework (England) would be to provide a centre of excellence for training, not only in operational incident management but in senior management, leadership and vocational development courses. To support this the Government would be making a substantial financial investment in the College and it would continue to be a key provider of training for the Fire and Rescue Service.
It was RESOLVED that
The visit be agreed in principle with numbers being agreed once the new Chief Executive was in post. The visit to consist in part of new Members following the forthcoming local elections.
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