12 February 2003 (11.30)

COMHAIRLE NAN EILEAN SIAR

Minute of Meeting held in the Council Offices, Stornoway, on Wednesday 12 February 2003 at 11.30am.

PRESENT

Mr Alexander A Macdonald (Chairman)

Mr Roderick J Murray (Vice-Chairman)

Mrs Katie M Mackenzie

Mr Malcolm J Macleod

Mr Norman M Macleod

Mr Iain Morrison

Mr Donald J Macsween

Mr Roderick Morrison

Mr Finlay Morrison

Mr Norman A Macdonald

Mrs Morag Munro

Mr Angus M Graham

Mr Donald Macdonald

Mr Malcolm J Graham

Mr Archie K Campbell

Mr Ian M Macleod

Mr Donald Maclean

Mr George Lonie

Mr Martin C Taylor

Mr Murdo Macleod

Mr Ronald J Mackinnon

Mr Norman L Macdonald

Mr David Blaney

Mr Alasdair G Macrae

Mr Donald Manford

APOLOGIES

Mr Angus Nicolson

Mr Donald I Nicholson

Mrs Mary Bremner

Prayer

The meeting was opened with prayer led by Mr Finlay Morrison.

MINUTES

Policy and Finance Committee

1

The Report of Meeting of the Policy and Finance Committee of 12 February 2003 at 9.30am was submitted and noted.

FINANCE

Revenue Estimates 2003/2004

2

With reference to item 2 of the Decision Report of Policy and Finance Committee of 12 February 2003 at 9.30am the following were submitted:

(1) a Report regarding the finalising of the Comhairle's Revenue Estimates for the financial year 2003/04, including approval of the base budget for the year, setting the level of the Council Tax for the year and setting indicative Council Tax for the years 2004/2005 and 2005/2006;

(2) a Report by the Acting Director of Finance setting out a proposed package of service improvements to utilise growth identified within the resources; and

(3) the draft summary Budget Book for 2003/2004.

The Vice-Convener referred to the meeting of the Policy and Finance Committee of 12 February 2002 at 9.30am and outlined the background to the setting of the Council Tax and the Budget Process. In his statement the Vice-Convener noted that this would be the last budget of this term of the Comhairle and indicated that the prudent approach adopted to finances was paying dividends. He stated that he would propose a budget with a small amount of growth and would be recommending that the Council Tax for Band D properties in 2003/2004 be set at £867 which would be the lowest Council Tax level in Scotland, allied to the highest per capita funding. In his address, the Vice-Convener paid tribute to the work of members of the Budget Working Group and the Chairs and Vice-Chairs on the Service Committees in drawing together a balanced set of proposals which would benefit the communities of the Western Isles. He also paid tribute to the work done by staff in Central Departments of the Chief Executive's Office, Corporate Services and, in particular, Ionmhas. The Vice-Convener concluded that the budget as proposed would allow all priorities identified to be addressed, together with some modest growth in service delivery while leaving balances of £1million by the end of the year to cushion the new Comhairle against financial uncertainties and also providing the new Comhairle with the small amount at the start of its term to allocate as it saw fit and adhering to previous indicated Council Tax levels.

Mr Roderick J Murray, seconded by Mr Norman L Macdonald, moved:

(1) approval of the recommendations contained in the Decision Report for the Policy and Finance Committee of 19 February 2002 at 9.30am;

(2) approval of the draft Revenue Budget contained in the draft Budget Book for 2003/2004, together with the allocation of funding available for growth as set out in the Report by the Acting Director of Finance;

(3) that, for the purposes of Section 93 (1) (A) of the Local Government Finance Act 1992, the Council Tax for properties listed in the valuation Band D be set at an amount of £867 for the financial year 2003/2004; and

(4) that the assumed level of Council Tax set at Band D for 2004/2005 and 2005/2006 be £911 and £956 respectively.

Mr Donald Macdonald, seconded by Mr Donald J Macsween, moved an amendment in the following terms:

(1) that the Council Tax increase for Band properties A - H in na h-Eileanan an Iar for the 2003/2004 financial year be 5% of the Council Tax rate in place for the 2002/2003 financial year;

(2) that the 1.4% reduction from that recommended at 6.4 be in the first place met from the contingency fund until other cost cutting exercises can be urgently undertaken by the new Council which will be in place in May 2003;

(3) in order to ensure that frontline services such as the roads network do not deteriorate any further than that experienced at present, that the Chief Executive brings to an early meeting of the Council proposals to cut bureaucracy costs - all of this to be a matter of extreme urgency and in line with what was started in the 1994 to 1999 Council term; and

(4) that the indicative Council Tax increases for 2004/2005 and 2005/2006 be 3% per annum.

Mr Angus M Graham, seconded by Mrs Katie M Mackenzie, moved a second amendment in the following terms:

That the Council use the balance of unallocated resources to facilitate the provision of a Ward Initiative Fund.

On a vote being taken between the motion and the first amendment, the motion received the majority of the votes cast.

It was agreed that the vote between the motion and the second amendment be taken by role call in terms of Standing Order 53.

On the matter being put to the vote, there voted as follows:

Motion

Amendment

Mr Alexander A Macdonald

Mr Roderick J Murray

Mrs Katie M Mackenzie

Mr Malcolm J Macleod

Mr Iain Morrison

Mr Roderick Morrison

Mr Norman A Macdonald

Mr Malcolm J Graham

Mr Ian M Macleod

Mr George Lonie

Mr Murdo Macleod

Mr Norman L Macdonald

Mr Norman M Macleod

Mrs Morag Munro

Mr Archie Campbell

Mr Donald Maclean

Mr Martin C Taylor

Mr Ronald J Mackinnon

Mr David Blaney

Mr Donald Manford

Mr Angus M Graham

Mr Donald J Macsween

Mr Finlay Morrison

Mr Donald Macdonald.

The Chairman declared that the motion had been carried.

The Comhairle agreed:

(1) to approve the Draft Revenue Budget contained in the Draft Budget Book for 2003/2004, together with the allocation of funding available for growth as set out in the Report by the Acting Director of Finance;

(2) that, for the purposes of Section 93 (1) (A) of the Local Government Finance Act 1992, the Council Tax for properties listed in the valuation Band D be set at an amount of £867 for the financial year 2003/2004; and

(3) that the assumed level of Council Tax set at Band D for 2004/2005 and 2005/2006 be £911 and £956 respectively.

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PRESENT	Mr Alexander A Macdonald (Chairman)
	Mr Roderick J Murray (Vice-Chairman)
	Mrs Katie M Mackenzie
	Mr Malcolm J Macleod	Mr Norman M Macleod
	Mr Iain Morrison	Mr Donald J Macsween
	Mr Roderick Morrison	Mr Finlay Morrison
	Mr Norman A Macdonald	Mrs Morag Munro
	Mr Angus M Graham	Mr Donald Macdonald
	Mr Malcolm J Graham	Mr Archie K Campbell
	Mr Ian M Macleod	Mr Donald Maclean
	Mr George Lonie	Mr Martin C Taylor
	Mr Murdo Macleod	Mr Ronald J Mackinnon
	Mr Norman L Macdonald	Mr David Blaney
	Mr Alasdair G Macrae	Mr Donald Manford

APOLOGIES	Mr Angus Nicolson
	Mr Donald I Nicholson	Mrs Mary Bremner


Prayer		The meeting was opened with prayer led by Mr Finlay Morrison.
		MINUTES
Policy and Finance Committee	1	The Report of Meeting of the Policy and Finance Committee of 12 February 2003 at 9.30am was submitted and noted.
		FINANCE
Revenue Estimates 2003/2004	2	With reference to item 2 of the Decision Report of Policy and Finance Committee of 12 February 2003 at 9.30am the following were submitted: (1) a Report regarding the finalising of the Comhairle's Revenue Estimates for the financial year 2003/04, including approval of the base budget for the year, setting the level of the Council Tax for the year and setting indicative Council Tax for the years 2004/2005 and 2005/2006; (2) a Report by the Acting Director of Finance setting out a proposed package of service improvements to utilise growth identified within the resources; and (3) the draft summary Budget Book for 2003/2004.
		The Vice-Convener referred to the meeting of the Policy and Finance Committee of 12 February 2002 at 9.30am and outlined the background to the setting of the Council Tax and the Budget Process. In his statement the Vice-Convener noted that this would be the last budget of this term of the Comhairle and indicated that the prudent approach adopted to finances was paying dividends. He stated that he would propose a budget with a small amount of growth and would be recommending that the Council Tax for Band D properties in 2003/2004 be set at £867 which would be the lowest Council Tax level in Scotland, allied to the highest per capita funding. In his address, the Vice-Convener paid tribute to the work of members of the Budget Working Group and the Chairs and Vice-Chairs on the Service Committees in drawing together a balanced set of proposals which would benefit the communities of the Western Isles. He also paid tribute to the work done by staff in Central Departments of the Chief Executive's Office, Corporate Services and, in particular, Ionmhas. The Vice-Convener concluded that the budget as proposed would allow all priorities identified to be addressed, together with some modest growth in service delivery while leaving balances of £1million by the end of the year to cushion the new Comhairle against financial uncertainties and also providing the new Comhairle with the small amount at the start of its term to allocate as it saw fit and adhering to previous indicated Council Tax levels. Mr Roderick J Murray, seconded by Mr Norman L Macdonald, moved: (1) approval of the recommendations contained in the Decision Report for the Policy and Finance Committee of 19 February 2002 at 9.30am; (2) approval of the draft Revenue Budget contained in the draft Budget Book for 2003/2004, together with the allocation of funding available for growth as set out in the Report by the Acting Director of Finance; (3) that, for the purposes of Section 93 (1) (A) of the Local Government Finance Act 1992, the Council Tax for properties listed in the valuation Band D be set at an amount of £867 for the financial year 2003/2004; and (4) that the assumed level of Council Tax set at Band D for 2004/2005 and 2005/2006 be £911 and £956 respectively. Mr Donald Macdonald, seconded by Mr Donald J Macsween, moved an amendment in the following terms: (1) that the Council Tax increase for Band properties A - H in na h-Eileanan an Iar for the 2003/2004 financial year be 5% of the Council Tax rate in place for the 2002/2003 financial year; (2) that the 1.4% reduction from that recommended at 6.4 be in the first place met from the contingency fund until other cost cutting exercises can be urgently undertaken by the new Council which will be in place in May 2003; (3) in order to ensure that frontline services such as the roads network do not deteriorate any further than that experienced at present, that the Chief Executive brings to an early meeting of the Council proposals to cut bureaucracy costs - all of this to be a matter of extreme urgency and in line with what was started in the 1994 to 1999 Council term; and (4) that the indicative Council Tax increases for 2004/2005 and 2005/2006 be 3% per annum. Mr Angus M Graham, seconded by Mrs Katie M Mackenzie, moved a second amendment in the following terms: That the Council use the balance of unallocated resources to facilitate the provision of a Ward Initiative Fund. On a vote being taken between the motion and the first amendment, the motion received the majority of the votes cast.
		It was agreed that the vote between the motion and the second amendment be taken by role call in terms of Standing Order 53. On the matter being put to the vote, there voted as follows:
		Motion	Amendment
		Mr Alexander A Macdonald Mr Roderick J Murray Mrs Katie M Mackenzie Mr Malcolm J Macleod Mr Iain Morrison Mr Roderick Morrison Mr Norman A Macdonald Mr Malcolm J Graham Mr Ian M Macleod Mr George Lonie Mr Murdo Macleod Mr Norman L Macdonald Mr Norman M Macleod Mrs Morag Munro Mr Archie Campbell Mr Donald Maclean Mr Martin C Taylor Mr Ronald J Mackinnon Mr David Blaney Mr Donald Manford	Mr Angus M Graham Mr Donald J Macsween Mr Finlay Morrison Mr Donald Macdonald.
		The Chairman declared that the motion had been carried. The Comhairle agreed: (1) to approve the Draft Revenue Budget contained in the Draft Budget Book for 2003/2004, together with the allocation of funding available for growth as set out in the Report by the Acting Director of Finance; (2) that, for the purposes of Section 93 (1) (A) of the Local Government Finance Act 1992, the Council Tax for properties listed in the valuation Band D be set at an amount of £867 for the financial year 2003/2004; and (3) that the assumed level of Council Tax set at Band D for 2004/2005 and 2005/2006 be £911 and £956 respectively.
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