A council tax rise of 2.5% looks all but certain in Carmarthenshire after the Plaid-Independent cabinet approved a revised set of budget proposals.
Local authorities raise around a quarter of their revenue from council tax, and a 4.4% increase in Carmarthenshire was initially outlined for 2022-23.
But this hike raised concern among Plaid councillors, among others, given rising inflation and soaring costs affecting householders and employers.
Carmarthenshire Plaid then indicated that a 2.5% increase would be taken forward - and this was one of the budget changes agreed by cabinet.
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Full council will set next year's budget at a meeting on March 2, and the numbers could change further as more Welsh Government announcements are made in the meantime.
Cabinet members welcomed the 2.5% proposal, which would mean band D householders paying £1,396.04 in council tax levied by the authority, up from £1,361.97 currently. However, the Dyfed-Powys Police precept and other levies make the actual band D bill £1,729.74 this year.
Cllr David Jenkins, who has the finance portfolio, said it would be "a great achievement" given the extra costs facing the authority.
He said: "People do appreciate that difficult choices need to be made."
Cllr Peter Hughes Griffiths said he felt the 2.5% proposal was "an excellent step", and the lowest increase he could remember.
"I think the residents of Carmarthenshire will thank us for that," he said.
Labour opposition leader, Cllr Rob James, reiterated his concerns after the meeting about any council tax rise given a major uplift in funding from the Welsh Government.
The council is due to receive £26.3 million more from the Welsh Government in 2022-23 than this year - a rise of 9.2%.
But from April 1 the authority is expected to absorb Covid-related costs - most of them are currently reclaimed from the Welsh Government - as well as pay rises for staff and rising energy bills, among other pressures.
Just keeping services as they are will cost £23 million more in 2022-23 than this year, said the cabinet report.
The Plaid-led administration had planned to make £3.8 million savings, but it has now trimmed this figure to £3.6 million by shelving three proposals: new parking charges in a handful of free car parks, cuts to IT staffing, and a reduction in third sector grants.
The cabinet report included responses from cross-party council scrutiny committees and members of the public about the budget proposals, which at that point outlined a 4.4% council tax increase.
A common theme from the public was a concern about council tax rises.
"I don’t think the rising cost of living has been considered enough," said one respondent.
Another said they felt they received limited services in return for council tax.
"We have no children, no bus service, no library, no help with our bills as we worked all our lives," they said. "All we get is a rubbish collection and gritters when not on strike."
The latest budget figures show a net revenue expenditure of £415.8 million in 2022-23, including:
- £187.6 million on schools and children's services
- £119.2 million on communities , which includes adult social care
- £65.9 million on environment services .
The £415.8 million is set to be funded by £311.6 million from the Welsh Government and £104.2 million via council tax.
A key part of the budget - schools - was developed on the basis of full funding to schools for known and unavoidable pay, pensions and inflationary increases.
Cllr Glynog Davies, cabinet member for education and children, said it would allow the current level of education to be delivered in future years.
"This is excellent news to all of our schools," he said.
Cabinet members also approved a £146.2 million capital spend on new schools and regeneration schemes as part of a rolling five-year programme.
These projects include a new council hub at the former Debenhams store in Carmarthen, and the first phase of the Pentre Awel wellness and life science village at Delta Lakes, Llanelli.
The £146.2 million is be funded by £88.5 million of external grants and £57.7 million of council money, including borrowed cash and money held in reserves.
The biggest capital projects for 2022-23 include:
- £53.2 million towards the first phase of the Pentre Awel wellness and life science village, which incorporates a new Llanelli Leisure Centre
- £36.4 million for new school builds
- £9.5 million towards the new Towy Valley cycle path between Carmarthen and Llandeilo
- £9.2 million for the Carmarthen hub at the former Debenhams
- £1 million towards a new 3G sports pitch at Amman Valley Leisure Centre.
Much of the Carmarthen hub and Towy Valley cycle path money has come via the UK Government's Levelling Up Fund.
Council leader Emlyn Dole said Carmarthenshire had secured a third of all the Levelling Up Fund money allocated to Wales.
"I am very grateful," he said.
Cabinet also approved an average council housing rent increase of 2.9%, or £2.66 per week.
The authority owns 9,152 council houses and flats, and expects to spend £49.7 million on day-to-day housing costs in 2022-23, such as repairs and maintenance, and £42.7 million on capital projects including new affordable homes.
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