Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
23 January 2013
A meeting of the Cabinet of North Norfolk District Council will be held in the Council Chamber at
the Council Offices, Holt Road, Cromer on Monday 3rd February 2014 at 10.00 a.m.
At the discretion of the Chairman, a short break will be taken after the meeting has been running
for approximately one and a half hours.
Members of the public who wish to ask a question or speak on an agenda item are requested to
arrive at least 15 minutes before the start of the meeting. It will not always be possible to
accommodate requests after that time. This is to allow time for the Committee Chair to rearrange
the order of items on the agenda for the convenience of members of the public. Further information
on the procedure for public speaking can be obtained from Democratic Services, Tel: 01263
516010, Email: democraticservices@north-norfolk.gov.uk
Sheila Oxtoby
Chief Executive
To: Mr B Cabbell-Manners, Mr T FitzPatrick, Mrs A Fitch-Tillett, Mr T Ivory, Mr J Lee, Mr W
Northam, Mr R Oliver, Mr R Wright
All other Members of the Council for information.
Members of the Management Team, appropriate Officers, Press and Public.
If you have any special requirements in order
to attend this meeting, please let us know in advance
If you would like any document in large print, audio, Braille, alternative format
or in a different language please contact us
Chief Executive: Sheila Oxtoby
Corporate Directors: Nick Baker & Steve Blatch
Tel 01263 513811 Fax 01263 515042 Minicom 01263 516005
Email districtcouncil@north-norfolk.gov.uk Web site northnorfolk.org
AGENDA
1.
TO RECEIVE APOLOGIES FOR ABSENCE
2.
MINUTES
(page 1)
To approve, as a correct record, the minutes of the meeting of the Cabinet held on 02
December 2013.
3.
PUBLIC QUESTIONS
To receive questions from the public, if any.
4.
ITEMS OF URGENT BUSINESS
To determine any other items of business which the Chairman decides should be
considered as a matter of urgency pursuant to Section 100B(4)(b) of the Local Government
Act 1972.
5.
DECLARATIONS OF INTEREST
Members are asked at this stage to declare any interests that they may have in any of the
following items on the agenda. The Code of Conduct for Members requires that
declarations include the nature of the interest and whether it is a disclosable pecuniary
interest.
6.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR RECONSIDERATION
To consider matters referred to the Cabinet (whether by the Overview and Scrutiny
Committee or by the Council) for reconsideration by the Cabinet in accordance with the
provisions within the Overview and Scrutiny Procedure Rules or the Budget and Policy
Framework Procedure Rules.
7.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY COMMITTEE
To consider any reports from the Overview and Scrutiny Committee, which may be
presented by the Chairman of the Overview and Scrutiny Committee, and determination of
any appropriate course of action on the issues so raised for report back to that committee
8.
MEMBER TRAINING DEVELOPMENT AND SUPPORT GROUP
(page 6)
To receive and consider the minutes of the meeting of the Member Training Development &
Support Group held on 16 September 2013.
The following recommendations to Cabinet were made and further amended at the
meeting of 19 November :
i.
ii.
Representation on the Member Development Group to be on non- political lines and
should include Members and Officers.
The future role and objectives of the Member Development Group should include:
a) the development and delivery of the agreed Development Programme
b) to support the delivery of a Human Resources Strategy and Workforce
Development Plan
c) to develop an Induction Programme for the new Council following Elections,
including the recruitment of candidates on a non- political basis.
d) to focus on appropriate development for members towards strengthening their role
externally in the community within North Norfolk, as well as internally with regards to
the corporate direction of the council.
9.
JOINT STAFF CONSULTATIVE COMMITTEE
(page 10)
To receive the minutes of the Joint Staff Consultative Committee held on 09 September
2013
10.
BUDGET MONITORING 2013/14 – PERIOD 9
(page 13)
(Appendix A – p.23) (Appendix B – p.24) (Appendix C – p.26) (Appendix D – p.28)
Summary:
This report summarises the budget monitoring position for the
revenue account to the end of December 2013.
Conclusions:
The overall position at the end of period 9 shows a forecast
under spend of £163,455 for the current financial year on the
revenue account.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and the
current budget monitoring position.
2) Cabinet agree and recommend to Full Council the
updated budget as set out in section 5.1, Table 3.
3) That Cabinet agrees to delegate authority to the
Chief Executive, to provide funding from the
Enabling Fund (of a sum not exceeding £24,000) to
support the development of both the design and
business case for the future re-development of the
Melton Constable Goods Shed site and buildings.
COUNCIL
DECISION
11.
Reasons for
Recommendations:
To update Members on the current budget monitoring position
for the Council.
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone number
Email:
Cllr W Northam
All
Malcolm Fry
01263 516037
malcolm.fry@north-norfolk.gov.uk
TREASURY MANAGEMENT STRATEGY
(page 30)
Summary:
This report sets out details of the Council‟s treasury management
activities and presents a strategy for the prudent investment of the
Council‟s surplus funds.
Options Considered:
Alternative investment options are continuously appraised by the
Council‟s treasury advisors, Arlingclose and all appropriate options
are included within this Strategy.
COUNCIL
DECISION
Conclusions:
The strategy represents an appropriate balance between risk
management and cost effectiveness. An alternative strategy might
be to invest in a narrower range of counterparties or for shorter
periods. Interest income is likely to be lower as a consequence,
but with a reduced risk of losses from counterparty default.
Investing in a wider range of counterparties or for longer periods
may increase interest income, but with an increased risk of loss
from defaults.
The preparation of this Strategy Statement is necessary to comply
with the Chartered Institute of Public Finance and Accountancy‟s
Code of Practice for Treasury Management in Public Services. The
Code has been revised in November 2011 and this Strategy
Statement incorporates all the requirements of the new Code.
Recommendations: That the Council be asked to RESOLVE that The Treasury
Management Strategy Statement is approved.
Reasons for
Recommendation:
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone number
Email:
12.
The Strategy provides the Council with a flexible treasury strategy
enabling it to respond to changing market conditions and ensure
the security of its funds.
Cllr W Northam
All
Tony Brown
01263 516126
tony.brown@north-norfolk.gov.uk
2014/15 BUDGET REPORT
(page 40)
(Appendix E – p.61) (Appendix F – p.62) (Appendix G – p.89) (Appendix H – p.90)
(Appendix I – p.91) (Appendix J – p.93) (Appendix K – p.101) (Appendix L – p.104)
Summary:
This report presents for approval the 2014/15 budget along
with the latest financial projections for the following three years
to 2017/18.
Options considered:
The budget for the forthcoming financial year must be set
annually. Whilst there are options around the individual
budgets presented for approval i.e. what is included in the
budget for 2014/15, the overall position now presented for
approval is the culmination of work carried out by officers and
Cabinet over a number of months, details of this work is
provided within the report.
Conclusions:
The Council‟s budget is set for approval each year; it is
presented to Cabinet and then considered by Overview and
Scrutiny Committee before recommendations are made to Full
Council. This report now presents a balanced budget for
2014/15 and also presents the latest financial projections for
the following three financial years, 2015/16 to 2017/18. The
budget has been produced based on a number of assumptions
as detailed within the main body of the report and also reflects
the provisional finance settlement announced on 18 December
2013. The report recommends that the surplus for the year is
allocated to the general reserve to mitigate the impact of
funding costs in relation to the storm surge that occurred in
December 2013. The report outlines the risks facing the
Council in setting the budget and forecasting future spending
plans and resources.
Recommendations:
COUNCIL
DECISION
Reasons for
Recommendations:
It is recommended that Cabinet agree and where
necessary recommend to Full Council:
1)
The 2014/15 revenue budget as outlined at
Appendix E;
2)
The surplus of £533,425 be allocated to the general
reserve;
3)
The demand on the Collection Fund, subject to any
amendments as a result of final precepts still to be
received be:
a. £5,205,386 for District purposes
b. £1,599,741 (subject to confirmation of the final
precepts) for Parish/Town Precepts;
4)
The statement of and movement on the reserves as
detailed at Appendix I;
5)
The updated Capital Programme and financing for
2013/14 to 2016/17 as detailed at Appendix J;
6)
The new capital bids as detailed at Appendix K;
7)
The prudential indicators as included at Appendix
L;
8)
The approval of a three year arrangement for the
provision of Monitoring officer through NP Law as
detailed within section 5.3.4 of the report;
9)
That members note the current financial projections
for the period 2015/16 to 2017/18.
To recommend a balanced budget for 2014/15 for approval by
Full Council on 26 February 2014.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Local Government Finance Settlement 2014/15, 2013/14 budget monitoring reports.
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone number
Email:
13.
Cllr W Northam
All
Karen Sly
01263 516243
karen.sly@north-norfolk.gov.uk
MANAGING PERFORMANCE Q3 2013/14
Summary:
(page 108)
(Appendix M – electronic only)
The purpose of this report is to give a third quarter progress
report of the performance of the Council. More specifically it
reports delivery of the Annual Action Plan 2013 – 14 and
achieving targets. It gives an overview, identifies any issues
that may affect delivery of the plan, the action being taken to
address these issues and proposes any further action
needed that requires Cabinet approval.
Options considered:
Conclusions:
Options considering action regarding performance are
presented separately, issue by issue, to the appropriate
Council Committee.
1. The majority of the 49 activities in the Annual Action
Plan 2013/14 are on track or progressing to plan
(35). Performance is being closely monitored,
particularly for the small number of activities where
issues or problems have been identified (four) or the
activity has been postponed, delayed or on hold
(three). Some activities have already been completed
successfully (six).
2. Of the 20 performance indicators where a target has
been set or assessment against the previous year‟s
performance is taking place six are on or above
target, two close to target, six below target, six
improving and none worse compared to last year.
3. The delivery of the Annual Action Plan is progressing
according to plan but there are some performance
issues in achieving targets. These are detailed in the
document „Managing Performance Quarter 3
2013/14‟ attached as Appendix M.
Recommendations:
It is recommended that Cabinet notes this report,
welcomes the progress being made and endorses the
actions laid out in Appendix M being taken by
management where there are areas of concern.
Reasons for
Recommendations:
To ensure the objectives of the Council are achieved.
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone number
Email:
14.
NORTH LODGE PARK
Cllr T FitzPatrick
All
Helen Thomas
01263 516214
helen.thomas@north-norfolk.gov.uk
(page 111)
Summary:
The report seeks approval to grant delegated authority to the
Chief Executive to settle the terms of, and complete a lease of
North lodge Park from the District Council to Cromer Town
Council, together with the grant of a „dowry‟ to help cover
Cromer Town Council‟s costs for maintaining and managing
the Park in the initial years.
Options considered:
1. The status quo would be for NNDC to continue the current
level of management and maintenance of the Park with the
associated costs; this would put a continuing demand on
NNDC budgets for the foreseeable future and would not
facilitate local control of the future use or management of the
Park. Under the Localism agenda there are opportunities for
councils to assess the current level of asset ownership and
seek alternative models of ownership that could realise both
savings for local authorities and ultimately provide greater
control of local assets by the community and parish and town
councils.
2. The option of community management of the Park with local
voluntary and or/community group was explored as part of the
research undertaken by Aspinal Verdi, who were
commissioned to work with the joint Town and District Council
Working Group. This report indicated that there was no likely
organisation that would undertake future management
responsibility. Furthermore the overall level of savings that
could be achieved from this alternative management model
may not be realised given the likely number of volunteers that
would actually be willing to come forward to undertake future
support for grounds maintenance work that would in turn
reduce the overall costs, while achieving an optimum standard
desired by the community for the management and
maintenance of this public asset.
3. An asset transfer could be undertaken by leasehold (long or
short term, or freehold). Freehold transfer would relinquish
control of the asset completely (although restrictions could be
put in place), whilst short-term leasehold is likely to leave the
Town Council in a weaker position with respect to certainty
about the future of the Park and consequently its ability to
secure funding. The most appropriate balance is therefore
considered to be delivered by transferring the asset on a longterm lease (e.g. 99 years).
Conclusions:
The main conclusions are developed from two main drivers
that have been highlighted in the report, Firstly, that there are
indeed revenue savings for the Council over the long-term and,
secondly, that Cromer Town Council has provided sufficient
evidence that the business case presented by them is viable
and stands them in a sound position to manage and maintain
North Lodge Park – to target external funding and to ensure
that the community interests are served into the foreseeable
future.
Recommendations:
It is recommended that Cabinet:
1. agree the principle of disposing of North lodge Park on
a 99 year leasehold basis as set out in this report;
2. delegate authority to the Chief Executive (in
consultation with the Cabinet Members for Assets and
for Localism & the Big Society) to settle the terms of,
and complete a lease of North Lodge Park to Cromer
Town Council, including:
extent of the asset
use of the Park and any covenants and overage
costs
3. delegate authority to the Chief Executive (in
consultation with the Cabinet Members for Assets and
for Localism & the Big Society) to make to Cromer
Town Council a Council grant not exceeding £150,000
to be funded from the 2nd homes Council Tax reserve
for community initiatives to cover the initial period of
ownership.
Reasons for
Recommendations:
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone number
Email:
15.
To provide the opportunity for Cromer Town Council to achieve
the long-term benefits of the Park for the local community and
align control of the asset with local views over its management
and use. Also for NNDC to realise savings in the long-term
over the management and maintenance of North lodge Park.
Cllr T Ivory and Cllr R Oliver
Cromer (but as a corporate asset affects the whole
district)
John Mullen
01263 516104
john.mullen@north-norfolk.gov.uk
EXCLUSION OF PRESS AND PUBLIC
To pass the following resolution:
“That under Section 100A(4) of the Local Government Act 1972 the press and public be
excluded from the meeting for the following item of business on the grounds that they
involve the likely disclosure of exempt information as defined in paragraphs _ of Part I of
Schedule 12A (as amended) to the Act.”
16.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 02 December 2013 at the
Council Offices, Holt Road, Cromer at 10.00am.
Members Present:
Also attending:
Officers in
Attendance:
75.
Mrs A Fitch-Tillett
Mr T FitzPatrick
Mr T Ivory
Mr J Lee
Mr R Oliver
Mr W Northam
Mr R Wright
Mrs S Arnold
Mrs L Brettle
Mrs A Claussen-Reynolds
Mrs P Grove-Jones
Mr P High
Mrs A Moore
Mr P W Moore
Ms B Palmer
Mr R Reynolds
Mr R Shepherd
Mr B Smith
Mr N Smith
Mr P Terrington
Mrs V Uprichard
The Chief Executive, the Corporate Director (NB), the Corporate
Director (SB) the Head of Legal, the Head of Finance, the Technical
Accountant, the Growth and Communities Manager and the
Democratic Services Team Leader.
APOLOGIES FOR ABSENCE
Mr B Cabbell Manners
76.
MINUTES
The minutes of the meeting held on 04 November 2013 were confirmed as a correct
record and signed by the Chairman.
77.
PUBLIC QUESTIONS
None received
78.
ITEMS OF URGENT BUSINESS
There was one item of urgent business. Approval was sought approval to designate
the parishes of Holt and Corpusty and Saxthorpe as Neighbourhood Areas to enable
the town and parish councils for these areas to prepare a Neighbourhood Plan. Mr T
Ivory, Portfolio Holder for Localism explained that Town and Parish councils had to
make an application to the local planning authority (the District Council) for
designated area status. The Council must then undertake a six week public
consultation in relation to the ‘appropriateness’ of the area being put forward for
designation. The successful designation would enable them to prepare a
Cabinet
1
02 December 2013
1
Neighbourhood Plan. Mr Ivory informed members that no representations had been
made during the consultation period which had ended on 4th October 2013.
Members were invited to ask questions:
Mrs A Moore sought clarification regarding the cost to the Council. The Chief
Executive replied that the details were provided within section 7 of the report. The
Council had received a £30,000 grant which was held in an earmarked reserve. It
was anticipated that this would cover all the existing costs including officer time. Mr
Ivory added that the Council had secured front-runner funding and there was a
statutory duty to support any neighbourhood plans and consequently an obligation to
resource them. He acknowledged that there could be cost implications moving
forward.
Mr P High, local member for Holt said that he had concerns about the requirement for
the local planning authority to organise and pay for a referendum to ascertain
whether voters support the use of the neighbourhood plan to help it decide on
planning applications in the neighbourhood areas. He felt that a lot of the earmarked
funding could be used on this.
It was proposed by Mr T Ivory, seconded by Mr R Oliver and
RESOLVED
79.
To approve the applications for Neighbourhood Area status for the Parishes of Holt
and Corpusty and Saxthorpe.
.
DECLARATIONS OF INTEREST
None
80.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
81.
BIG SOCIETY FUND AND ENABLING FUND
The Portfolio Holder for Localism, Mr T Ivory, introduced this item. He informed
members that the Big Society Fund was continuing to invest in important community
projects. To recognise the level of commitment and effort put in by local volunteers
towards projects within their own communities, it was proposed that a Big Society
Awards scheme would be established.
He went on to explain that the Panel had been expanded earlier in the year to seven
members and this had proved very successful with unanimous agreement on all the
decisions to date. An Enabling Fund had been set up to assist with the development
and implementation of community projects that helped deliver the Council’s priorities
and made a real difference within communities. Two firm proposals had now come
forward for support from the Enabling Fund and for consideration by Cabinet. These
were the Atrium North Norfolk Ltd and Homes for Wells and delegated authority was
now sought to agree a final funding contribution. The Atrium was seeking support to
establish a business plan that would help ensure a financially stable future as a
community venue. The Homes for Wells proposal sought financial assistance to help
the organisation meet the shortfall in capital funds required to develop 11 affordable
housing units on the former Wells Field Study Centre site.
Cabinet
2
02 December 2013
2
Mr T Ivory concluded by suggesting that recommendation 3 was amended to
‘delegate authority to the Chief Executive in consultation with the Portfolio Holder’.
Mr T FitzPatrick spoke about three projects funded by the Big Society Fund that had
recently attended. He said that they demonstrated that the Fund was capturing the
imagination of the public.
Mr P W Moore said that he was very pleased to see that the Atrium was one of the
projects receiving support from the Enabling Fund. He said that it was an excellent
facility that had taken a long time to come to fruition.
It was proposed by Mr T Ivory, seconded by Mr T FitzPatrick and
RESOLVED
1. to note the current funding position with respect to the Big Society Fund and agree
to the establishment of a local Big Society Awards scheme – the details of which
to be delegated to the Big Society Fund Grants Panel;
2. to delegate authority to the Chief Executive, in consultation with the portfolio
holder, to agree funding (not exceeding £15,000) to support The Atrium in
undertaking market analysis and developing a Business Plan in order to help
secure a sustainable future for the facility.
3. to delegate authority to the Chief Executive, in consultation with the Portfolio
Holder to agree the terms of a financial contribution of up to a maximum of
£150,000 to ‘Homes for Wells’ (from the Big Society Enabling Fund) towards the
development of an affordable housing scheme at the former Wells Field Study
Centre. This grant will be made in three tranches and subject to sufficient funding
being available from other sources in order to implement the scheme within the
expected delivery period agreed by the Homes and Communities Agency; and
4. to make payment of a sum of £50,000 for the first tranche to Homes for Wells
immediately
82.
ENFORCEMENT BOARD UPDATE
Mr T Ivory, Portfolio Holder for Legal Services presented this item. He said that the
Board had made significant progress during the last 6 months towards its objectives
of dealing with difficult enforcement cases and with bringing long-term empty
properties back into use. Since the Board’s establishment a total of 81 properties had
been considered with a positive outcome for 46 so far. Significant amounts of money
had been recovered in terms of council tax and business rates and almost all of the
costs associated with the Board’s work would be recovered.
A number of lessons had been learnt from the cases dealt with so far and the
recommendations being put forward were to take this learning forward.
Mr Ivory then updated members on the Broads Hotel in Hoveton which was due to be
demolished shortly. He thanked Mr N Baker, Corporate Director and Mrs E Duncan,
Head of Legal Services for all their hard work and support.
Members were invited to ask questions:
1. Mr R Shepherd commended the Enforcement Board for their hard work. He said
that members were now able to answer questions on specific properties which
was very helpful.
Cabinet
3
02 December 2013
3
2. Mrs A Claussen-Reynolds thanked the Board for their work in Oak Street,
Fakenham.
3. Mr B Smith commended the Board for their work regarding Trafalgar Court,
Mundesley. He said that it was now in a good state of repair and local residents
were very pleased. Mr T FitzPatrick added that the leaseholders were also
pleased with the progress at Trafalgar Court.
It was proposed by Mr T Ivory, seconded by Mr R Oliver and
RESOLVED:
83.
1.
To note the progress made to date by the Enforcement Board.
2.
That an earmarked reserve of £200,000 be established as outlined within section
8.2 of the report to fund both capital and revenue expenditure as recommended
by the Enforcement Board and that release of the funds be delegated to the
Corporate Director in consultation with the Head of Finance.
3.
That the current capital programme be updated to reflect the removal of the
current budget for Empty Homes.
4.
That the legal support to the Enforcement Board is funded for 2014/15, from the
above reserve.
FEES AND CHARGES 2014/2015
Mr W Northam, Portfolio Holder for Finance introduced this item. He explained that
the fees and charges recommended in the report would be used to inform the income
budgets for 2014/15. He added that when recommending changes to fees and
charges, the Council considered inflation and the charges that the Council itself paid.
Members were invited to ask questions:
Mrs A Moore queried why the charge for market stalls was being reduced. She felt
that this did not send out a good message to local shops. Mr R Oliver, Portfolio
Holder for Corporate Assets replied that the cleaning contract for markets was being
removed and that in future stall holders would be required to remove their own
rubbish at the end of the day and this was reflected in the proposed charges.
Mrs Moore then asked why there was no percentage increase given for
entertainment permits and licences when a figure was provided for taxi licences. The
Chief Executive responded that these charges were agreed by Council in May 2012
and were now being implemented and for this reason there was no percentage
increase to show.
It was proposed by Mr W Northam, seconded by Mr R Wright and
RESOLVED to recommend to Council:
a) The fees and charges from 1 April 2014 as included at Appendix A;
b) The fees for the certification for the installation of wood burners to come into effect
from 1 January 2014 as follows:

Installation of a solid fuel appliance (eg. Wood Burner):
(i) Where the appliance is commissioned by a third party, a Building Notice Charge,
including VAT, of £180;
Cabinet
4
02 December 2013
4
(ii) Where the appliance is tested by NNDC a Building Notice Charge, including VAT,
of £312.
84.
HOUSING BENEFIT AND COUNCIL TAX SUPPORT
Mr W Northam, Portfolio Holder for Revenues and Benefits introduced this item. He
explained that the introduction of the Council Tax Support scheme in April 2013
meant that the Housing Benefit and Council Tax Support counter fraud policy and
prosecution policy needed to be revised. The new policies reflected the introduction
of council tax support and the supporting legislation that enabled the council to take
appropriate action to investigate suspected fraud and impose sanctions.
It was proposed by Mr W Northam, seconded by Mrs A Fitch-Tillett and
RESOLVED to recommend to Council:
that the revised Counter Fraud Policy and Prosecution Policy are adopted.
The Meeting closed at 10.23 am
_______________
Chairman
Cabinet
5
02 December 2013
5
Agenda Item 2__
MEMBER TRAINING, DEVELOPMENT AND SUPPORT GROUP
Notes of a meeting held on Tuesday 17th September at 11.00am in Room 1, Council
Offices, Holt Road, Cromer.
Members Present:
Working
Group:
Officers in
Attendance:
Mr G Williams (Chair)
Mr P High
Mr R Oliver
Mr B Smith
Mrs V Uprichard
The Chief Executive, the Head of Organisational Development, the
HR Team Leader, the Democratic Services Team Leader, the
Democratic Services Officer
1. ELECTION OF CHAIRMAN AND VICE CHAIRMAN
The Deputy leader commented that he had spoken to Mr J Lee, and in considering Mr J
Lee’s time constraints he had proposed that he step down as Chairman. Following this,
the group held an election for a new Chairman and Vice-Chairman. Mr G Williams was
elected as Chairman and Mr P High as Vice-Chairman. The Chairman thanked members
and then said that member support and development was becoming increasingly
important in a time when councils were seeing big changes and facing tough decisions.
He commented that delivering appropriate support was integral to the council’s priority of
business transformation.
2. APOLOGIES
Mr J Lee
3. NOTES OF LAST MEETING
The notes of the last meeting held on 05 March 2013 were confirmed as a correct
record.
4. TERMS OF REFERENCE
The group discussed the terms of reference and determined to change the use of the
word ‘training’ to the term ‘development’ in the terms, and in the committee name. It was
also determined that section 1d) be changed to ‘to focus on appropriate development for
members towards strengthening their role as ward member’ from ‘to focus on appropriate
training for members towards strengthening their community leadership role.’
AGREED
To recommend to Cabinet:
Member Training, Development and
Support Working Group
1
17 September 2013
6
1. That the Member Training Development and Support Group becomes the
Member Development Group with immediate effect.
2. That the revised Terms of Reference are approved.
5. BUDGET
The Democratic Team Leader confirmed that there was £12,313 in the budget due to
funds being carried over from the previous year. The Head of Organisational
Development commented that this was to ensure the group had appropriate funds to
cover member induction following the next election.
6. FEEDBACK FROM MEMBERS SURVEY
The Democratic Services Officer introduced this item. She commented that the
members’ survey had been partially successful, with over a 50% return rate. She also
commented that members believed they had had quite successful training; a majority
were also keen to take part in further development on a selection of topics. Mrs V
Uprichard commented that further planning training may be useful for members as it is
something that most members have to deal with. The Chief Executive commented that it
was necessary for there to be sufficient knowledge in parishes and towns in order to look
at planning applications, and suggested that training for both parish and district
councillors may be useful. The Chairman commented that the changes surrounding
holiday lets were a good example of this as not many people were aware of the law
changes.
Mr P High raised the topic of IT training and commented that it was difficult to encourage
attendance, raising the training of 12 months ago where only 4 members attended. Mr B
Smith concurred and said that whilst officers worked really hard to encourage members,
it was proving increasingly difficult to ensure members took part. He commented that
making training look attractive to members was key. He further said that it was important
that members see the benefits of technology and using IT.
The Chief Executive commented that timing of training was important to bear in mind,
and that using the term ‘development’ may be more beneficial.
The Chairman commented that the issues of planning and localism may be a good place
to start, as they are quite universal issues. Mrs V Uprichard commented that workshop
style events were often more interesting, and that in terms of encouraging iPad use, It
might be useful to offer training or trial sessions before they are given out. The
Democratic Services Team Leader commented that they were working hard to work
more closely with IT so they could know who had been provided with iPads and who
required training.
The Chief Executive suggested that creating briefs of the ‘heavier’ information, such as
finance, may be useful to provide members with an overview of a topic to provide an
entry route into reading the more specialist reports. The Chairman commented ensuring
information is approachable and doesn’t appear ‘scary’ may be key to getting members
to engage. The Chairman agreed with this and said it could be a very beneficial idea,
particularly if a database of briefing notes were created.
Mrs V Uprichard commented that workshop events might be particularly effective if iPads
could be utilised during the development events; then members could both become more
familiar with iPads as well as particular topics. Mr P High and The Chairman both
commented that with the introduction of a new Head of Planning that it might be the
perfect time to hold one such session.
Member Training, Development and
Support Working Group
2
17 September 2013
7
The Chairman commented that it might be useful to create a programme of meetings
which captured the areas in which development was required. The Chief Executive
concurred. The Chairman also commented that showing members how they would
benefit from these development events would be key in encouraging them to taking part.
He also commented that it would be best to utilise in house skills, and The Chief
Executive commented that this was a good point; so long as the people leading the
workshops have the appropriate level of knowledge and are comfortable in a teaching
role. She also commented that potentially the best people to lead these events might
come from outside the service area; for example, a person outside of the finance section
might be able to provide a more basic understanding of terms. She went on to comment
that she believed governance training should be an important part of the aforementioned
timetable.
The Deputy Leader commented that they should consider running some events, and
potentially committees, in the evenings, in order for members who work to be able to
attend. The Chief Executive replied that whilst it was an important discussion, it was one
that needed to be had with group leaders as opposed to at this committee.
AGREED
The group agreed that the appropriate officers would go away and utilising the
information from the members’ survey would draft a timetable for development events,
and contact the appropriate Heads of Service about who could deliver these events, to
bring back to the following Member Development meeting.
7. PARLIAMENTARY OUTREACH SCHEME
The Democratic Services Team Leader commented that 14 people had attended the
training offered on engaging with the work of Parliament. She asked the members
present who had attended if they found it beneficial. Mr P High commented that he found
the training very good and found the speaker to be very eloquent. Mrs V Uprichard
enquired as to how much the training had cost, and the Democratic Services Team
Leader replied that it was free. Mrs V Uprichard commented that it was worth it due to its
lack of cost; however she would have appreciated a more interactive session. The
Chairman enquired if it would be worthwhile running the session again, and the group
agreed that yes it would, if the session were more interactive. The Democratic Services
Team Leader commented that the scheme offered a ‘train the trainer’ session, which
would allow for the training to be run in-house.
8. FREEDOM OF INFORMATION AND DATA PROTECTION
The HR Team Leader introduced this item. She asked if members would be interested in
viewing the short informational DVDs which had been offered to staff regarding Freedom
of Information and Data Protection. The Chief Executive suggested the sessions could
be opened up to members as well as staff. The HR Team Leader agreed they would be
running more sessions so this would be possible.
9. ENCOURAGING YOUNG VOTERS IN NORTH NORFOLK
The Democratic Services Team Leader introduced this item, and commented that the
Electoral Services Assistant Laura Williamson was organising sessions to encourage
youth voting, and wished to see if members would be interested in getting involved. The
Deputy Leader offered his support and said he would be happy to get involved, and Mr P
High commented that he may attend his local youth group to evaluate engagement there.
Member Training, Development and
Support Working Group
3
17 September 2013
8
The Chairman said that the group as a whole would be more than happy to champion the
issue.
10. THE WORK PROGRAMME
It was decided that this item was covered under the Member Survey Feedback section
and that officers would go ahead with producing a development timetable.
11. DATE OF NEXT MEETING
It was confirmed that the next meeting would be held on 19th November 2013 at
11.00am.
The meeting concluded at 12.25 pm
_____________________
Chairman
Member Training, Development and
Support Working Group
4
17 September 2013
9
Agenda Item 2
JOINT STAFF CONSULTATIVE COMMITTEE
Minutes of a meeting of the Joint Staff Consultative Committee held in the Committee
Room, Council Offices, Holt Road, Cromer on 09 September 2013 at 2.30pm
Members Present:
Mr P High
Mr R Oliver (Chairman)
Mrs B McGoun
Mr N Smith
Staff Side Present:
Mr S Case
Ms C Lowin-Green
Officers in Attendance:
Ms J Cooke, Head of Organisational Development
Mrs E Denny, Democratic Services Team Leader
Miss T Gilder-Smith, Democratic Services Officer
1.
TO RECEIVE APOLOGIES FOR ABSENCE
Apologies were received from Mrs S Arnold and Mr T FitzPatrick
2.
MINUTES
The minutes of the meeting of the Joint Staff Consultative Committee held on 16 July
2013 were approved as a correct record subject and signed by the Chairman.
3.
JSCC UPDATE
Expressions of Interest
The Head of Organisational Development informed the Committee that over 20
expressions of interest had been received. The staff concerned would be notified of
the outcome by the end of September.
Ms C Lowin-Green asked if the expressions of interest had gone to the Corporate
Leadership Team (CLT). The Head of Organisational Development confirmed that
they had gone to CLT for information.
4.
UPDATE ON THE INVESTORS IN PEOPLE ASSESSMENT
The Head of Organisational Development informed the Committee that the Council
had undergone an external assessment in July 2013 for Investors in People (IIP).
The IIP Assessor selected and interviewed a representative sample of approximately
40 people from across the organisation and she also attended the Staff Focus Group.
The assessor then produced a report setting out her findings in detail. The Council
were successful in retaining the bronze accreditation. A draft action plan had been
drawn up to address the areas for development and this had been sent to the Staff
Focus Group meeting on 4 September for consideration.
Members were invited to ask questions:
1
10
1.
2.
3.
4.
5.
Mrs B McGoun queried what the Council needed to do to achieve a higher
accreditation. The Head of Organisational Development explained that to
achieve the gold standard organisations needed to meet a high level across the
whole spectrum.
Mr N Smith said that it would be interesting to compare how North Norfolk
District Council compared to other local authorities.
Mr R Oliver asked how much the process had cost. The Head of Organisational
Development confirmed that it had cost £7000. In response to a further query as
to whether this included officer time, she replied that it did not.
Ms C Lowin-Green queried whether the core areas identified on the draft action
plan were aimed at maintaining the bronze standard. The Head of Organisational
Development replied that it was felt that a higher standard could be achieved in
these areas. Ms C Lowin-Green responded that it would be useful to look at
another organisation that had already achieved a higher accreditation. The Head
of Organisational Development said that she felt it was more beneficial to map
where your own organisation wanted to go with your staff against your aims. Ms
C Lowin-Green said that a comparison could help where there are national
targets and it could also boost morale.
UPDATE ON THE REMOVAL OF THE CAR ALLOWANCE LUMP SUM
PAYMENTS UNDER THE TRAVEL POLICY
The Head of Organisational Development introduced this item. She explained that a
report was presented to the Committee on 25 March 2013 outlining the results of a
salary market review carried out by Inbucon looking at the posts which were to be
affected by the removal of the car allowance lump sum/lease car in April 2013. The
Committee had recommended to Cabinet that the impact on recruitment and
retention of staff of the removal of the cash equivalent/lease car allowances should
be reviewed and reported back to the Joint Staff Consultative Committee at the
September meeting.
Information was provided to the Committee on the number of affected staff leaving
the organisation together with the reason for leaving.
Members were invited to ask questions:
1.
2.
3.
4.
5.
6.
Mr R Oliver commented that if the car allowance lump sum was removed at the
end of a contract then there was only a 5% and 9% decrease in the numbers
leaving which indicated the removal did not have a major impact. He added that
there was also an 84% success rate for recruitment.
Mr S Case said that the figures should have gone back to 2010 when the
removal of the car allowances was initially announced to provide a true
representation. The Head of Organisational Development replied that she would
update the figures to go back to 2010 and circulate them to the Committee.
Ms C Lowin-Green commented that no reasons had been given when staff had
resigned from their posts as there were no exit interviews at the Council. She
added that Unison had done its own research in this area and pay had come out
consistently as a reason for leaving.
Mrs B McGoun asked whether applications for posts were down or up. The Head
of Organisational Development said that this information could be obtained from
the recruitment system.
Ms C Lowin-Green said that North Norfolk District Council had invested in good
quality staff and this was lost each time someone left the organisation.
Mr R Oliver queried whether the figures for staff turnover were comparable with
other local authorities. The Head of Organisational Development confirmed that
2
11
7.
they were. She added that there was a certain amount of ‘recycling’ between
local authorities across the region but there was also a national market for
professional posts.
Mr N Smith said that surveys had indicated that it was difficult for businesses
across Norfolk to attract quality middle managers. The Head of Organisational
Development disagreed. She said that the Council continued to attract high
calibre staff.
The Head of Organisational Development advised the Committee that the
recommendation that ‘current salary scales are assessed against the market for the
East of England / local market and considered against the Council’s future financial
strategy’ had not been carried out yet. She said that it was likely that the Council
would use e-paycheck for this.
It was proposed by Mr N Smith, seconded by Mr P High and
RESOLVED
To assess the current salary scales against the market for the East of England / local
market and considered against the Council’s future financial strategy.
Ms C Lowin-Green abstained stating that she would like more information on epaycheck first.
The meeting concluded at 15.20pm.
_______________
Chairman
3
12
Agenda Item No____10________
BUDGET MONITORING REPORT 2013/14 – PERIOD 9
Summary:
This report summarises the budget monitoring position
for the revenue account to the end of December 2013.
Options considered:
Not applicable
Conclusions:
The overall position at the end of period 9 shows a
forecast under spend of £163,455 for the current
financial year on the revenue account.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and
the current budget monitoring position.
2) Cabinet agree and recommend to Full
Council the updated budget as set out in
section 5.1, Table 3.
3) That Cabinet agrees to delegate authority
to the Chief Executive, to provide funding
from the Enabling Fund (of a sum not
exceeding £24,000) to support the
development of both the design and
business case for the future redevelopment of the Melton Constable
Goods Shed site and buildings.
Reasons for
Recommendations:
To update Members on the current budget monitoring
position for the Council.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
System budget monitoring reports
Cabinet Member(s)
Ward(s) affected
Cllr Wyndham Northam
Contact Officer, telephone number and email: Malcolm Fry, 01263 516037,
malcolm.fry@north-norfolk.gov.uk
13
1.
Introduction
1.1.
This report compares the actual expenditure and income position at the end
of December 2013 to the budget for 2013/14 as updated by Period 6
amendments as approved by Cabinet in November 2013 and provides a
projected outturn for the 2013/14 financial year. It also provides an update on
the costs related to the storm damage.
1.2
The base budget for 2013/14 included savings and additional income of
£163,097. This report includes the latest position on both of these areas
2.
Budget Monitoring Position – Revenue Services
2.1
The general fund summary at Appendix A shows the high level budget
monitoring position at 31st December 2013 which shows a year to date
variance of £788,891 underspend. Appendix B provides further details of the
individual service variances.
2.2
Tidal surge - The total costs associated with the tidal surge of 5th December
2013 are still being assessed, but the current estimate is approximately
£2.7m. There are several ways in which some of these costs can be
recovered. These are set out below:a) Bellwin Scheme – This is a Government scheme designed to
recompense authorities for the costs of emergency measures undertaken
to safeguard life or property, or to prevent further suffering and
inconvenience locally, during exceptional circumstances. There are strict
rules on the types of expenditure that are eligible for reimbursement.
There is a lower threshold in place up to which authorities have to bear
the cost. This threshold is set at 0.2% of budget. For North Norfolk this
equates to £24,218. Beyond this threshold 85% of eligible costs are
reclaimable. It should be noted that this is a discretionary scheme,
therefore not all costs claimed may be reimbursed. The current level of
costs which are expected to be included in any claim are estimated to be
£68,000. Once the threshold has been deducted this leaves 85% of
£43,782 that potentially could be reclaimed. This equals £37,215. The
net cost therefore that needs to be funded by the authority’s resources is
£30,785.
b) Insurance – Items which are insured are not covered by the Bellwin
scheme. It should be remembered that the authority will have to bear the
costs of agreed insurance excesses which are expected to be in the
region of £133,250. Some repair works have already commenced, the
value of insured repairs/works expected to be completed by 31st March
2014 is estimated to be in region of £220,000, there will be further works
to be completed in 2014/15.
c) Other insured items include:1. Public Conveniences
2. Cafes and museums
3. Commercial premises
4. Chalets and shelters
14
d) Assets such as coastal defences and promenade infrastructure are not
insured assets and therefore funding for this work will need to be
allocated. The estimated value of these works which will be completed by
31st March is £721,100. Discussions are currently ongoing with
Government departments regarding sources of funding, however pending
the outcome of this funding from the general fund will need to be
allocated.
2.3
Emergency procurement rules as per the Constitution have also been used
so that the most urgent Coastal defences works can be started as soon as
possible. The total value of this equates to £1,184,218, made up of £529,228
via individual exemption requests and £654,990 is to be procured via the
Water and Environment Management Framework (WEM). This is an
established framework established for use by the Environment Agency and
local authorities. A breakdown of these is included in Appendix D.
2.4
Any unrecoverable costs will initially have to be borne by the Council. These
would have to be funded from the General Reserve. See Table 7 of the
accompanying Budget Report which details the forecast movements on the
general reserve taking into account the forecast spend in 2013/14 and
2014/15 following the storm damage that occurred in December 2013.
2.4
Members will be aware that discussions have been ongoing regarding the
possible renting out of part of the Council’s office space. Before any
occupation takes place, there would be some repairs/alterations to be made
to the office space. This is estimated to be in the region of £11,000 and
would be repaid as part of any agreement as and when occupation is taken
up. Initial funding would come from the Admin Buildings budget, but with a nil
impact to the Council’s budget.
2.5
Members are reminded that as reported previously the 2013/14 base budget
has been updated during the year to produce an in-year updated budget.
Variances are reported against the updated budget in Appendix A. Any
budgets and reserves affected will be updated accordingly. By taking any
forecast outturn adjustments at the end of the reporting period, a constantly
updated budget is achieved, rather than as was previously done, updating at
one point in time during the year.
2.6
For monitoring purposes the following table shows the over/under spend to
date for the more significant variances, compared to the updated budget, and
the projected outturn column is compared to the base budget.
2.7
As we move into the final quarter some services are starting to identify where
planned expenditure will not be incurred in the current year but will be
required in future years. All roll forward requests will be considered as part of
the outturn process and reported as part of the final accounts report. This will
need to take into account the overall financial position for the Council,
although at this stage Table 3 makes the assumption of this earmarking.
15
Table 1 – Service Variances
Assets and Leisure
Car Parking – At the end of period 9 the service shows an
underspend which is mainly due to additional car park income
above the profiled budget from excess parking notices (£25,925),
season tickets (£6,657) and pay and display fees (£8,860). These
have been offset by annual repairs and maintenance for ticket
machines of £27,137 in the year.
Over/
(Under)
Spend to
Date
£
(11,682)
Projected
Outturn
£
(85,000)
The full year impact of this is expected to result in a net (£85,000).
Foreshore - General reduced repairs and maintenance
expenditure compared to the budget, although further costs
(uninsured or excesses) will be incurred as result of tidal surge in
early December.
Property Services - £9,016 additional overtime re Reception
works, £5,553 effect of job evaluation, (£2,100) Income for work
done for external organisation.
Overall these are expected to result in an outturn of £13,500.
Other Sports - Minor variances. The projected outturn reflects
budgeted income for the Mobile Gym now unlikely to be received.
Investment properties - Repairs and maintenance expenditure;
on Chalets prior to tidal surge £4,572,Oddfellows Hall £3,640 and
Rocket House £4,271. Service charge income £7,667 delay in
agreement on Service charges (Rocket House)
*The projected outturn position is made up of £43,255 in respect of
the Grove Lane Depot which became vacant in the year, £5,000 lift
repairs at Rocket House, £9,500 loss of income re beach huts and
chalets as a result of tidal surge.
.
Sports Centres – (£3,780) lower salaries and on costs, £8,407 Bar
sales and facility usage lower than expected.
Work is still on-going in relation to the agreements with Cromer and
Stalham. The Cromer agreement has been amended and has yet
to be shared by the school with its Governors. It has been difficult
to arrange meetings with representatives of Stalham school due to
the Head Teacher currently being on long-term sick leave. It is
unlikely at this point if these agreements will be completed and
signed in the current financial year.
*This delay means that the budgeted savings for 2013/14 of
£40,000 are unlikely to be realised in the current year although it is
anticipated that North Walsham will contribute £10,000 this year.
The position will continue to be monitored and an updated position
will be provided as part of the period 10 budget monitoring report.
16
(41,664)
0
12,581
13,500
5,465
20,000
20,875
*57,755
4,427
35,000
Table 1 – Service Variances
Community and Economic development
Community and Localism – Youth advisory Board income
(£115,000) received and awaiting allocation, Big Society Fund
(£40,754) any year end underspend will be transferred to the
earmarked reserve.
Over/
(Under)
Spend to
Date
£
Projected
Outturn
£
(167,947)
0
(17,266)
(21,500)
See section 2.8 below also
Environmental Strategy – (£13,346) vacant post, (£3,920)
additional income from sponsorship and exhibitor fees for Green
Build event
The projected outturn reflects a vacant post not being replaced.
Customer Services
Tourist information Centres - Greater than expected sales of
souvenirs etc. A small saving is expected by the year end..
Customer services – Corporate - Salaries and on-costs are lower
than budgeted, following the departure of the Head of Customer
Services, some of this will be used towards recruiting the Business
Transformation posts as agreed in October. Any year-end
underspend will be requested to be carried forward for the
business transformation project.
Development Management
Development Management –The main reason for the variance to
date is due to additional income from planning applications,
including large applications for Solar and Wind farms.
The projected outturn for the year will be transferred to an
appropriate earmarked reserve.
(£15,876)
0
(£36,740)
0
(94,784)
(165,000)
Building Control and Access –The variance to date and
projected outturn reflects the full year of a vacant post.
(29,962)
(30,000)
Planning Management and Community Support – Number of
minor variances below £2,000.
* Savings not achievable in the year from an anticipated service
restructure, which was delayed due to the appointment of a new
Head of Planning in the year. The anticipated saving will be taken
into account when reviewing the overall Planning structure. It is
planned that this will be implemented in 2014/15.
Property Information – (£8,252) income generated from street
naming/numbering, (£17,795) increased income from land charge
searches.
(£8,724)
*26,860
(26,777)
*(30,000)
*Land charges (£20,000), Street naming (£10,000)
17
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
Projected
Outturn
£
Environmental Health
Environmental protection - There are currently two
Environmental Protection officers posts vacant (£19,537) including
on costs. The remainder of the variance to date relates to a sundry
debtor invoice raised. This debt is now in process of being secured
through the Court process.
The outturn position reflects in year savings on vacant posts.
(47,532)
(40,000)
Waste Collection and Disposal – (£13,000) outstanding creditor
provision from 12/13 for work yet to be invoiced.
Additional fee income (£13,207).
Community Safety – The variance to date and projected outturn
reflect a reduced contribution to Victory Housing in the year for the
Community Officer.
Financial Services
Local Taxation – The variance to date reflects a number of minor
variances
(36,342)
(11,000)
(7,064)
(10,000)
9,262
*(50,000)
(36,058)
(34,000)
0
(28,163)
(17,956)
*(25,000)
* It is estimated that £50,000 of unspent grant from previous years
will not be utilised in full by the year-end and this will be required in
2014/15 for expenditure on ICT and staffing requirements in the
next financial year.
Benefits - £23,589 Bad debts that are not budgeted for at service
level, but will be set against Council’s overall debt provision at year
end. (£13,280) Pay and grading. (£36,534) Staff turnover savings
There are a number of vacant posts and staff secondments.
Because of uncertainties surrounding the effect of universal
credit/shared service it has been difficult to fill these posts.
Fraud manager post has been vacant since beginning of the year,
(£20,000) for the year which at this stage is being recommended
for earmarking for enforcement work.
Discretionary Payments – All payments for the year have now
been paid. These are funded from earmarked reserves, which will
be adjusted accordingly at the year end.
Corporate Finance – Staff savings due to vacant posts and
recruitment advertising.
*The post of Trainee Accountant remains vacant (£25,000) and will
not be filled this financial year. Options to be considered as to how
best to utilise this post in future years.
18
Table 1 – Service Variances
Organisational Development
Human resources and Payroll – Underspend on corporate
training programme. It is anticipated that the programme will be
delivered by the end of the financial year.
Registration Services – The variance relates to the amount
Over/
(Under)
Spend to
Date
£
Projected
Outturn
£
(37,124)
0
40,850
0
(540,038)
(376,548)
that has not yet been reimbursed in full by the Home Office
for the Police and Crime Commissioners Election. Claims for
costs are submitted to the Electoral Claims Unit (the deadline
for this was June and the claim was submitted on time). The
Home Office will pay an element up-front and the balance is
payable once the claim has been authorised. The variance
reported relates to the balance outstanding. The Electoral
Claims Unit are currently processing this claim.
(£34,000)
Postal charges relating to County Council elections (£4,662)
TOTALS
2.8
Enabling Fund Proposal – Melton Constable
2.8.1 Cabinet are asked to agree to delegate authority to the Chief Executive, to
provide funding from the Big Society Enabling Fund, to take forward the
commissioning of the design and business case study for the renovation of
the Goods Shed site and buildings in Melton Constable. The total sought from
the Enabling Fund for the project totals £24,000. This funding can be
accommodated within the total remaining unallocated Enabling Fund finance
which stands at £60,000 for 2013/14. At the time of the December Cabinet,
£165,000 of funding from the Enabling Fund was approved for both the
Homes for Wells Affordable Housing Development and the Atrium North
Norfolk Ltd business plan development.
2.8.2 The provision of the funding will be sufficient to take forward the
commissioning of a design and business case study. The project will engage
the community in forward planning for the development of the Goods Shed
site and buildings located on the edge of the village, that have been identified
in the proposal. A significant amount of local engagement with organisations
that may either have a stake in the outcome of project, or develop an end use
of the site and buildings has been undertaken. Discussions with the Council’s
Planning and Economic Development teams has clarified the in-principle
support for the use of this site and the type of development that may take
place once the designs and business case have been developed and funding
acquired. This is a long term project that requires early stage support in order
to enable further long term investment to take place particularly within the
timescales that have been envisaged to provide an opportunity to target new
funding streams that will be available via significant national and European
funding programmes within the next 12 months.
19
2.8.3 The enabling fund is within the Capital Programme since when the fund was
established it was expected that this would be for projects of a capital nature.
The expenditure within this proposal would need to be treated as revenue.
Therefore funding will be switched accordingly.
3.
Budget Monitoring Position – Savings and Additional Income
3.1
The budget for 2013/14 included savings and additional income totalling
£163,097 within the service areas; the revised figure for the current year is
now £133,397 although it is anticipated that apart from the Dual Use Sports
Centres (DUSC) the remainder of the savings will be on target for 2013/14..
The detail for each of the service savings is included at Appendix C. Table 2
below summaries the current position for each service heading.
Table 2 – Savings and Additional
Income 2013/14
Assets Coastal Defence & Leisure
Customer Services
Development Management
Environmental Health
Financial Services
Organisational Development
Corporate
Total
2013/14
Updated
Budget
£
33,000
24,740
2,150
22,507
19,700
5,000
26,000
133,097
3.2
When the budget was approved in February 2013 further savings from the
management restructure were anticipated. These have not yet been
delivered in the year and therefore the £23,000 will not be achieved.
4.
Treasury Management Position
4.1
The budget for 2013/14 anticipated that a net total of £392,900 would be
earned in interest. This assumed an average balance of £24m at a rate of
1.65%.
4.2
At the end of period 9, a total of £284,838 had been earned resulting in a
shortfall against the year to date budget of £7,648. The rate of interest
achieved was 1.61% from an average balance available for investment of
£23.4m.
4.3
Based on the actual results to period 9, a total interest receivable figure of
some £388,380 is forecast for the year from an average balance £23.6m at an
average rate of 1.64%.
4.4
The rate of interest on the long-term investment of £5m in the Local
Authorities property fund (LAMIT) and is anticipated to earn around 5% over
the year which is in line with budget. Units in the fund were purchased for
£2.2348p, and at the end of November the price had risen to £2.2609p (most
20
up-to-date price at time of preparing report). This equates to an increase in
value “on paper” of £58,104 compared to the purchase amount, and would
only be realised if the holding is sold.
4.5
The rate of interest achieved on term deposits was 0.55% to period 9 which
is 0.21% below the budget figure, reflecting the very low interest rates
currently available. No impact to interest receivable budget is expected in the
year.
5.
Budget Monitoring Position - Summary
5.1
The following table provides a summary of the full year projections for the
service areas along with an updated use of reserves figure where applicable.
Table 3 - Summary of Full Year Effects 2013/14
Service Areas (Table 1)
Savings not achieved (Para 3.2)
Total Projected Outturn
Previously
identified
Earmarked
transfers:Big Society Fund/2nd homes
Planning Policy
reserves
Total Estimated Outturn
Estimated
Outturn
(£)
(376,548)
23,000
(353,548)
(100,823)
(36,247)
(490,618)
Planned Transfers made to/(from) reserves
Development Management
Local taxation
Benefits
Discretionary Payments
Building Control
165,000
50,000
34,000
28,163
50,000
Total Impact - Transfer to General Reserve
(163,455)
6
Budget monitoring position – Capital
6.1
A copy of the updated capital programme is included as Appendix J to the
Base Budget Report 2014/15 which is included elsewhere within this agenda.
The appendix outlines the current capital position, inclusive of any changes
resulting from slippage identified as being required into future years.
6.2
There is one further amendment to the capital programme, requested as part
of this Period 9 Budget Monitoring Report. As part of the further five year
extension to the leisure contract that the council has with DC Leisure, there
will be a requirement to undertake some works on the Splash Roof. The total
capital value of the required works is £60,000 for which 50/50match funding
from an external source would be available. Currently there are underspends
on two capital schemes totalling £41,594; £26,723 on the Wells Sackhouse
Development and £14,871 for the Doctors Steps scheme, both of which are
now complete and therefore reallocated back to capital resources.
21
6.3
As such approval is now sought for the inclusion of a capital budget for the
Splash Roof Remedial Works; to be funded from a virement from the
underspends detailed above, and a proposed external match grant funding of
£30,000.
7
Conclusion
7.1
The revenue budget is showing an estimated full year under spend for the
current financial year of (£163,455). The overall financial position continues to
be closely monitored and it is anticipated that the overall budget for the
current year will be achieved.
8
Financial Implications and Risks
8.1
The detail within section 2 of the report highlights the more significant
variances including those that are estimated to result in a full year impact.
8.2
The budget for 2013/14 included service savings and additional income
totalling £163,097 and whilst there have been some in the current year that
have been reduced, the progress in achieving these is being monitored as
part of the overall budget monitoring process and where applicable corrective
action will be identified and implemented to ensure the overall budget remains
achievable.
8.3
Of the estimated outturn shown in Table 1 £327,163 will be transferred to
earmarked reserves as shown in Table 3. The impact of this will be that the
budgets affected will reduce and reserves will increase. By taking these
forecast outturn adjustments at the end of the reporting period, a constantly
updated budget is achieved, rather than as reported previously, updating at
one point in time during the year.
9
Sustainability - None as a direct consequence from this report.
10
Equality and Diversity - None as a direct consequence from this report.
11
Section 17 Crime and Disorder considerations - None as a direct
consequence from this report.
22
Appendix A
General Fund Summary Report for Period 09 Year 2013/2014
Full Year
Budget
£
Base Budget
£
YTD
YTD Budget Actuals YTD Variance
£
£
£
Total
Commitments
£
Remaining
Budget
£
Net Cost Of Services
Assets & Leisure
CLT and Corporate
Community, Econ Dev & Coast
Customer Services
Development Management
Environmental Health
Finance
Organisational Development
Savings To Be Identified
2,325,691
0
697,597
4,379,430
875,690
4,226,832
2,974,845
556,353
(23,000)
2,376,395
76,933
4,506,420
703,519
521,825
4,317,054
3,024,407
833,770
(23,000)
1,248,718
44,584
1,107,586
539,228
374,007
2,824,752
2,821,255
669,432
0
1,246,492
22,445
884,657
434,087
198,072
2,693,239
2,701,749
651,631
0
(2,226)
(22,139)
(222,929)
(105,141)
(175,935)
(131,513)
(119,506)
(17,801)
0
460,346
3,461
229,193
14,331
10,696
1,303,020
26,466
0
0
669,557
51,027
3,392,570
255,101
313,057
320,795
296,192
182,139
(23,000)
16,013,438
16,337,323
9,629,562
8,832,372 (797,189)
2,047,513
5,457,438
Precepts Of Parish Councils
Interest Receivable
External Interest Paid
Capital Charges
Revenue Bad Debts
Retirement Benefits
Revenue Financing For Capital
Contributions To/From Reserves
Capital Grants/Contributions
1,457,091
(392,490)
0
(4,803,930)
0
266,577
400,000
776,535
0
1,457,091
(383,490)
0
(4,803,930)
0
265,787
1,019,153
681,948
(779,332)
1,457,091
(292,486)
0
(1,719,396)
0
(592)
0
0
0
1,457,091
(284,838)
383
(1,719,423)
(163)
0
0
0
0
0
7,648
383
(27)
(163)
592
0
0
0
0
0
0
0
0
0
0
0
0
0
(98,652)
(383)
(3,084,507)
163
265,787
1,019,153
681,948
(779,332)
Non Service Expenditure/Income
(2,296,217)
(2,542,773)
(555,383)
(546,950)
8,433
0
(1,995,823)
Income
Council Taxpayers
Central Government Grants
(9,357,207)
(4,360,014)
(9,434,535)
(4,360,014)
(7,895,011)
(2,342,568)
(7,895,011)
(2,342,703)
0
(135)
0
0
(1,539,524)
(2,017,311)
(13,717,221) (13,794,549) (10,237,579)
(10,237,714)
(135)
0
(3,556,835)
(1,952,292) (788,891)
2,047,513
(95,220)
Net Cost Of Services
Non Service Expenditure/Income
Income
Surplus / Deficit
0
1
23
(1,163,401)
Appendix B
Service Area Summaries 2013-14 P9
Assets & Leisure
Cost
Centre
Code
R200
R200A
R201
R202
R203
R204
R262
R262A
R300
R301
R302
R303
R304
R305
R306
R309
R310
R312
R314
R315
R318
R397
R414
Full Year Budget
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handy Man
Parklands
Administration Buildings Svs
Property Services
Parks & Open Spaces
Foreshore
Community Centres
Sports Centres
Leisure Complexes
Other Sports
Recreation Grounds
Pier Pavilion
Foreshore (Community)
Woodlands Management
Cromer Pier
Public Conveniences
Investment Properties
Leisure
Cctv
Total Assets & Leisure
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Commitments
£
Remaining Budget
£
(1,348,509)
64,621
9,667
2,840
(15,830)
(4,555)
70,447
0
492,466
211,134
11,038
338,886
739,018
124,968
10,518
106,347
396,116
163,286
35,871
563,341
158,373
9,000
237,352
(1,341,157)
9,664
4,318
2,169
(11,725)
(17,126)
86,351
487
342,372
163,606
8,227
200,565
493,495
116,040
7,196
101,167
299,071
121,903
35,145
421,155
(11,322)
36
217,081
(1,352,839)
1,769
13,561
2,119
(4,322)
(14,802)
85,551
13,068
347,245
121,942
4,124
204,991
487,034
121,505
8,267
103,633
296,500
114,580
38,253
422,688
9,553
(4,237)
226,309
(11,682)
(7,895)
9,243
(50)
7,403
2,324
(800)
12,581
4,873
(41,664)
(4,103)
4,427
(6,461)
5,465
1,071
2,466
(2,571)
(7,323)
3,108
1,533
20,875
(4,273)
9,228
61,596
12,136
1,938
0
0
0
46,160
450
115,857
5,665
220
245
2,259
484
2,883
0
85,015
29,614
603
73,479
6,753
131
14,860
(57,266)
50,716
(5,832)
721
(11,508)
10,247
(61,264)
(13,518)
29,364
83,527
6,694
133,650
249,725
2,979
(632)
2,714
14,601
19,092
(2,985)
67,174
142,067
13,106
(3,817)
2,376,395
1,248,718
1,246,492
(2,226)
460,346
669,557
Clt / Corporate
Cost
Centre
Code
R460A
R481
Full Year Budget
Corporate Leadership Team
Legal Services
Total Clt / Corporate
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Commitments
£
Remaining Budget
£
19,383
57,550
1,457
43,127
(11,373)
33,819
(12,830)
(9,308)
3,170
291
27,587
23,440
76,933
44,584
22,445
(22,139)
3,461
51,027
Community, Econ Dev & Coast
Cost
Centre
Code
R112A
R307
R308
R330
R333
R340
R341
R391
R398
R399
R412
R415
R472
Full Year Budget
Health
Arts & Entertainments
Museums
General Economic Development
Tourism
Coast Protection
Pathfinder
Regeneration Management
Housing (Health & Wellbeing)
Housing Strategy
Environmental Strategy
Community And Localism
Coastal Management
Total Community, Econ Dev & Coast
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Commitments
£
Remaining Budget
£
0
155,209
41,587
444,886
149,787
1,393,091
67,697
(1,284)
1,193,074
1,104,739
81,755
(124,121)
0
0
111,670
41,188
348,730
116,106
893,041
7,697
(4,867)
206,481
(213,699)
62,823
(461,611)
27
(11,140)
130,211
41,288
319,013
115,173
874,769
10,249
(7,996)
182,984
(155,833)
45,557
(628,647)
(30,971)
(11,140)
18,541
100
(29,717)
(933)
(18,272)
2,552
(3,129)
(23,497)
57,866
(17,266)
(167,036)
(30,998)
0
10,977
0
64,102
10,588
133,845
0
150
0
7,319
1,580
573
60
11,140
14,021
299
61,771
24,027
384,477
57,448
6,562
1,010,090
1,253,253
34,618
503,953
30,911
4,506,420
1,107,586
884,657
(222,929)
229,193
3,392,570
24
Appendix B
Customer Services
Cost
Centre
Code
R261
R311
R372
R394
R411
R430
R481B
R481C
R481D
Full Year Budget
It - Support Services
Tic'S
Homelessness
Customer Services Housing
Transport
Publicity
Graphical Info System
Media & Communications
Customer Services - Corporate
Total Customer Services
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Commitments
£
Remaining Budget
£
18,900
237,296
388,001
0
39,220
31,080
0
(6,429)
(4,549)
28,192
186,039
291,006
27
5,796
23,319
7,393
803
(3,347)
(9,353)
170,163
294,427
(7,858)
7,732
22,872
1,488
(5,297)
(40,087)
(37,545)
(15,876)
3,421
(7,885)
1,936
(447)
(5,905)
(6,100)
(36,740)
9,058
2,478
0
0
0
0
0
0
2,795
19,196
64,655
93,574
7,858
31,488
8,208
(1,488)
(1,132)
32,743
703,519
539,228
434,087
(105,141)
14,331
255,101
Development Management
Cost
Centre
Code
R100
R101
R102
R103
R121
R150
R402
Full Year Budget
Full Year Budget
£
Development Management
Planning Policy
Conservation & Design
Landscape
Building Control & Access
Planning Man And Comm Support
Property Information
Total Development Management
YTD Budget
YTD Actuals
£
£
YTD Variance
Commitments
Remaining Budget
£
£
£
541,548
(486,671)
127,186
147,964
73,109
26,860
91,829
411,202
(367,448)
93,314
104,244
55,912
20,128
56,655
316,418
(384,114)
91,883
106,653
25,950
11,404
29,878
(94,784)
(16,666)
(1,431)
2,409
(29,962)
(8,724)
(26,777)
5,800
0
2,007
0
120
1,097
1,673
219,330
(102,557)
33,296
41,311
47,039
14,359
60,278
521,825
374,007
198,072
(175,935)
10,696
313,057
Environmental Health
Cost
Centre
Code
R111A
R114
R115
R117
R117B
R118
R119A
R120
R151
R316
R317
R413
R420
Full Year Budget
Full Year Budget
£
Commercial Services
Rural Sewerage Schemes
Travellers
Licensing
Street Signage
Pest Control
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection And Disposal
Cleansing
Community Safety
Civil Contingencies
Total Environmental Health
YTD Budget
YTD Actuals
£
£
YTD Variance
Commitments
Remaining Budget
£
£
£
464,536
353,303
101,120
67,472
39,384
17,685
660,733
57,418
5,200
1,664,128
732,097
24,650
129,328
348,220
353,211
104,604
31,614
20,132
13,284
503,145
42,077
(7,816)
834,642
473,331
16,828
91,480
343,548
353,211
109,325
12,513
15,644
11,723
455,613
41,051
(14,069)
798,300
470,818
9,764
85,798
(4,672)
0
4,721
(19,101)
(4,488)
(1,561)
(47,532)
(1,026)
(6,253)
(36,342)
(2,513)
(7,064)
(5,682)
2,606
0
185
2,785
250
89
35,316
5,599
11,412
1,009,640
234,026
0
1,113
118,382
92
(8,390)
52,175
23,490
5,873
169,804
10,768
7,858
(143,812)
27,253
14,886
42,418
4,317,054
2,824,752
2,693,239
(131,513)
1,303,020
320,795
Finance
Cost
Centre
Code
R210
R211
R213
R214
R219
R251
R263
R263C
R450
R450A
Full Year Budget
Local Taxation
Benefits
Treasury Management
Discrectionary Payments
Non Distributed Costs
Benefits & Revenues Mgmt
Corporate Finance
Internal Audit
Central Costs
Corporate & Democratic Core
Total Finance
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Commitments
£
Remaining Budget
£
502,496
998,050
135,164
252,707
36,234
0
8,549
0
0
1,091,207
381,883
1,244,150
98,852
163,539
178,308
9
6,355
(82,224)
(5,183)
835,566
391,145
1,208,092
99,042
163,539
139,973
(391)
(11,601)
(95,286)
(25,055)
832,291
9,262
(36,058)
190
0
(38,335)
(400)
(17,956)
(13,062)
(19,872)
(3,275)
2,293
18,780
0
0
0
0
5,393
0
0
0
109,058
(228,822)
36,122
89,168
(103,739)
391
14,758
95,286
25,055
258,916
3,024,407
2,821,255
2,701,749
(119,506)
26,466
296,192
Organisational Development
Cost
Centre
Code
R260
R263B
R263D
R400
R450B
Full Year Budget
Human Resources & Payroll
Insurance & Risk Management
Policy & Performance Mgt
Registration Services
Members Services
Total Organisational Development
Full Year Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Commitments
£
Remaining Budget
£
22,100
(3,239)
(64,369)
326,181
553,097
16,547
57,685
(48,239)
228,581
414,858
(20,577)
50,000
(49,990)
269,431
402,767
(37,124)
(7,685)
(1,751)
40,850
(12,091)
0
0
0
0
0
42,677
(53,239)
(14,379)
56,750
150,330
833,770
669,432
651,631
(17,801)
0
182,139
25
Appendix C
Savings Summary - 2013/14
Ref.
AL2
AL3
CS1
EH2
EH4
Service
Assets and
Leisure
Assets and
Leisure
Customer
Services
Environmental
Health
Environmental
Health
Brief outline of
Saving/Additional
Income
Brief Outlione of Saving/Additional
income (Where applicable)
introduction of concessions
(refreshments, trailors etc) to some
of the car parks
Revised arrangements fir the DUSC
(Cromer and Stalham) (in addition to
current review of NW)
Generating efficiencies through
maximising use of Front Office
Reception, Cabinet report December
2012
2013/14
Budget
Savings
/Income
2013/14
P9 Update Variance
(15,000)
(15,000)
0
(40,000)
(10,000)
30,000
(24,740)
(24,740)
0
Handyman
Reduction in establishment for
handyman function. (0.5fte).
Previously post used for waste
associated work (now within
contract) and street signs backlog of
work - mostly now complete
(9,007)
(9,007)
0
Recycling Initiatives
Reduction in the recycling initiatives
budget, currently used for
promotional activities associated with
recycling and composting, previous
years spend has been less than level
budgetted.
(6,500)
(6,500)
0
Car Parks concessions
Dual Use Sports Centres
Customer Services
26
Appendix C
Ref.
Brief outline of
Saving/Additional
Income
Service
F2
Finance
Staffing and Other
C1 (no
form)
Corporate
Outlook
DM2
Development
Management
Grants and contributions review
AL6
Assets and
Leisure
AL7
OD1
EH6
Assets and
Leisure
Organisational
Development
Environmental
Health
Brief Outlione of Saving/Additional
income (Where applicable)
Deletion of vacant Exchequer
Services Assisatant post.
Cessation of the publication of
outlook.
Landscape contributions - not
currently committed.
2013/14
Budget
Savings
/Income
2013/14
P4 Update Variance
(19,700)
(19,700)
0
(26,000)
(26,000)
0
(2,150)
(2,150)
0
Grants and contributions review
Reduction in the 13/14 contribution
from £6k to £3k then full amount
thereafter for the Folk on the Pier
(3,000)
(3,000)
0
Grants and contributions review
Contribution to Village Games event.
(5,000)
(5,000)
0
(5,000)
(5,000)
0
(7,000)
(7,000)
0
(163,097)
(133,097)
30,000
Grants and contributions review
Grants and contributions review
Norwich and Norfolk Racial Equality
Council
Community Safety - Remove
contribution of £7k for funding
analyst.
TOTAL
27
Location
Sheringham
Supplier Name
Mott Macdonald ( in
conjunction with Bam
Nuttall)
Sheringham
Bam Nuttall Contractors
(in conjunction with Mott
Macdonald)
Sheringham
BMM JV Ltd (Mott
Macdonald and Bam
Nuttall combined)
Cromer Pier
Fairport Process
Equipment
Value of Works /
Contract
Description of works
Reason for Exemption
Critical Factors
Recommendations
£654,990
Consultants to works with
Bam Nuttall contractor under
WEM Framework for
promenade / sea wall works at Immediacy of works required after
Sheringham. (In this WEM
storm damage December 2013
Framework there is no
separation of consultants and
contractors fees)
The seawall and promenade were totally
breached which leaves structures at risk
should a further storm occur. It is
imperative to give at a minimum temporary
access to the west promenade for the
Appoint consultant
Lifeboat to remain on service, for the café
to operate and for the public to gain access
to the chalets. Full vehicular access is
ultimately necessary.
Included in total above
The BMM JV partnership are
being appointed under Lot 4
(Asset delivery including
Coastal Works) of the WEM
Immediacy of works required after
Framework to undertake
storm damage December 2013
emergency repair works to the
sea wall and to underpin the
west slope from the Leas.
The seawall and promenade were totally
breached which leaves structures at risk
should a further storm occur. It is
imperative to give at a minimum temporary
access to the west promenade for the
Appoint contractor
Lifeboat to remain on service, for the café
to operate and for the public to gain access
to the chalets. Full vehicular access is
ultimately necessary.
£9,027.61
Contractors to work with Bam
Nuttall (consultants) for
promenade / sea wall works at
Sheringham. (Appointed
under the WEM Framework)
Immediacy of works required after
storm damage December 2013.
To maintain temporary access to the West
The erection of three props to the
Appoint contractor
Promenade
west beach access slipe to maintain
access to the West Promenade
£220,000
Contractors for pier decking
repairs at Cromer
Immediacy of works required after
storm damage in December 2013
28
Public Safety. The Pier deck is
fundamental in helping to maintain the
integrity of the Pier structure, and access to Appoint contractor
the Pier and Theatre will contribute to the
local micro economy and public wellbeing
Cromer Pier
Hemsley Orrell Partnership
£13,200
Consultants for pier decking
repairs at Cromer
Mundesley
Renosteel
£12,000
Supply of plant for Vale Road, Immediacy of works required after
road repairs
storm damage in December 2013
Public safety. To ensure access to
maintain sea defences to protect life and
property.
Mundesley
Aylsham Plant
£5,000
Tip material for road
protection - Vale Road
Immediacy of works required after
storm damage in December 2013
Maintain access to sea defences to protect
Appoint contractor
life and property.
Overstrand
Mackinnon
£6,000
Clear up debris and make
access safe at Overstrand
Immediacy of works required after
storm damage in December 2013
Public safety.
Appoint contractor
Bacton to Ostend
Norfolk Property Services
£24,000
Consultant for Bacton to
Ostend - reinstate precast
blocks
Immediacy of works required after
storm damage in December 2013
Safety to the public. To repair the
defences to protect life and property
Appoint consultant
Mundesley
Renosteel
£50,000
Mundesley promenade / sea
wall repairs
Immediacy of works required after
storm damage in December 2013
Safety to the public. To repair the
defences to protect life and property
Appoint contractor
Bacton to Ostend
Mackinnon
£180,000
Bacton to Ostend - reinstate
precast blocks
Immediacy of works required after
storm damage in December 2013
Safety to the public. To repair the
defences to protect life and property
Appoint contractor
Cromer Pier
Fairport Process
Equipment
£10,000
Contractors labout (1
foreman, 1 carpenter and 1
skilled) to undertake
immediate Pier repair works
post storm
Immediacy of works required after
To make safe and enable the Theatre to restorm damage in December 2013,
open as soon as possible to generate
Appoint contractor
to complete repairs to Theatre deck
income. To maintain access for the RNLI
and maintain access
Total
1,184,218
Less: WEM Framework
(654,990)
Total
£529,228
Immediacy of works required after
storm damage in December 2013
29
Appoint consultant
Appoint contractor
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
Agenda Item No____11_________
Treasury Management Strategy Statement 2014/15
Summary:
This report sets out details of the Council‟s treasury management
activities and presents a strategy for the prudent investment of the
Council‟s surplus funds.
Options Considered:
Alternative investment options are continuously appraised by the
Council‟s treasury advisors, Arlingclose and all appropriate options are
included within this Strategy.
The strategy represents an appropriate balance between risk
management and cost effectiveness. An alternative strategy might be
to invest in a narrower range of counterparties or for shorter periods.
Interest income is likely to be lower as a consequence, but with a
reduced risk of losses from counterparty default. Investing in a wider
range of counterparties or for longer periods may increase interest
income, but with an increased risk of loss from defaults.
Conclusions:
The preparation of this Strategy Statement is necessary to comply
with the Chartered Institute of Public Finance and Accountancy‟s
Code of Practice for Treasury Management in Public Services. The
Code has been revised in November 2011 and this Strategy
Statement incorporates all the requirements of the new Code.
Recommendations:
That the Council be asked to RESOLVE that The Treasury
Management Strategy Statement is approved.
Reasons for
Recommendation:
The Strategy provides the Council with a flexible treasury strategy
enabling it to respond to changing market conditions and ensure the
security of its funds.
Cabinet Member(s)
Ward(s) affected: All
Cllr W Northam
Contact Officer, telephone number and email: Tony Brown, 01263 516126, tony.brown@northnorfolk.gov.uk
30
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
1.
Introduction
1.1
The Chartered Institute of Public Finance and Accountancy‟s (CIPFA) Code of Practice
for Treasury Management in Public Services and the Prudential Code require local
authorities to determine the Treasury Management Strategy Statement and Prudential
Indicators on an annual basis. The Strategy Statement also includes the Annual
Investment Strategy, which is a requirement of the Communities and Local
Government‟s (CLG) Investment Guidance.
1.2
In accordance with the requirements of the Prudential Code, the Council has adopted
the CIPFA Treasury Management Code at a meeting of Full Council on 28 April 2010.
1.3
The Council invests substantial sums of money and therefore has potentially large
exposures to financial risks including the loss of invested funds and the effect of
changing interest rates. The successful identification, monitoring and control of risk are
therefore central to the Council‟s treasury management strategy.
1.4
The treasury strategy set out in this report supports the budget for 2014/15 which is
included as a separate report elsewhere on this agenda.
2.
Context
2.1
The Council‟s treasury advisors, Arlingclose, expect the Official Bank Rate to remain at
0.5% until 2016. The Bank of England‟s Monetary Policy Committee (MPC) has
indicated by its strategy of Forward Guidance that it intends to keep interest rates low for
an extended period, and at least until the unemployment rate has fallen to 7%. The
MPC will then consider whether or not to raise interest rates.
2.2
The stronger economic growth in the first 3 quarters of 2013 and rising property prices,
due mainly to government initiatives to boost mortgage lending, have led markets to
price in an earlier rise in interest rates than is warranted under Forward Guidance and
the broader economic position. However, Arlingclose believe that growth is only likely to
be gradual, and forecast the MPC will maintain its resolve to keep interest rate low until
the recovery is convincing and sustainable.
2.3
The credit risk of banking failures has diminished, but not dissipated altogether.
Regulatory changes are taking place in the UK, US and Europe to move away from the
bank bail-outs of previous years, to bank resolution regimes in which shareholders, bond
holders and unsecured creditors are „bailed in‟ to participate in any recovery process.
This has already happened with the Co-operative Bank, where bond holdings were
converted to alternative securities and shares of lower value.
2.4
There are also proposals for EU regulatory reforms to Money Market Funds which will, in
all probability, result in these funds moving to a VNAV (variable net asset value) basis
and losing their „triple-A‟ credit rating.
2.5
In the light of these developments, diversification of investments between creditworthy
counterparties to mitigate bail-in risk will become even more important in the Council‟s
investment strategy.
2.6
For the purpose of setting the budget, it has been assumed that new investments will be
made at an average rate of 1.65%.
31
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
3.
Borrowing Strategy
3.1
The Council is currently debt free and its capital expenditure and financing plans do not
currently imply any external borrowing requirement over the forecast period.
Investments are forecast to fall to £19.2m in 2017/18 as capital receipts, capital grants
and other NNDC reserves are used to finance capital expenditure
3.2
This Strategy and the Prudential Indicators exclude any potential loans to Registered
Providers (formerly known as Housing Associations). If such loans are made, the
intention will be to fund them by internal borrowing and capital receipts, which will reduce
the amount available for investment. Short-term interest rates are currently much lower
than long-term rates and it is likely to be more cost effective in the short-term to use
internal resources (or perhaps borrow short-term loans instead) to fund any potential
advances to Registered Providers.
3.3
In addition, the Council may occasionally borrow short-term (normally for up to one
month) to cover unexpected cash flow shortages.
4.
Investment Strategy
4.1
The Council currently has an average of £23.4m in invested funds. This represents
income received in advance of expenditure, plus balances and reserves held. An
average balance of £22.2m is anticipated in 2014/15.
4.2
The CIPFA Code and the DCLG Guidance require the Council to invest its funds
prudently, and to have regard to the security and liquidity of its investments before
seeking the highest rate of return, or yield. The Council‟s objective when investing
money is to strike an appropriate balance between risk and return, minimising the risk of
incurring losses from defaults and the risk of receiving unsuitably low investment income.
4.3
The Council may invest its surplus funds with any of the counterparties in table 1 below,
subject to the cash and time limits shown. Further details are included from paragraph
4.4 onwards.
32
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
Table 1: Approved Investment Counterparties
AAA
Time limit
†
10 years*
AA+
5 years*
Counterparty
Cash limit
Banks and other organisations and securities whose
lowest published long-term credit rating from Fitch,
Moody‟s and Standard & Poor‟s is:
AA
AAA+
£1.5m
each
A
AThe Council‟s current account bank (The Co-operative Bank
plc) if it fails to meet the above criteria. (please note that this
limit is intended to apply to the Council‟s new bankers – see
also 4.6)
UK Central Government (irrespective of credit rating)
UK Local Authorities (irrespective of credit rating)
UK Registered Providers of Social Housing whose lowest
published long-term credit rating is A- or higher
UK Registered Providers of Social Housing whose lowest
published long-term credit rating is BBB- or higher and those
without credit ratings
UK Building Societies without credit ratings
4 years*
3 years*
2 years
1 year
£0.5m
next day
unlimited
£1.5m
each
£1.5m
each
10 years**
10 years**
10 years**
£0.75m
each
5 years
£1m each
1 year
Money market funds and other pooled funds
£5m each
n/a
† the time limit is doubled for investments that are secured on the borrower‟s assets
* but no longer than 2 years in fixed-term deposits and other illiquid instruments
** but no longer than 5 years in fixed-term deposits and other illiquid instruments
4.4
There is no intention to restrict investments to bank deposits alone, and investments
may be made with any public or private sector organisations that meet the above credit
rating criteria. This reflects a lower likelihood that the UK and other governments will
support failing banks as the bail-in provisions in the Banking Reform Act 2014 and the
EU Bank Recovery and Resolution Directive are implemented.
4.5
In addition, the Council may invest with organisations and pooled funds without credit
ratings, following an external credit assessment and advice from the Authority‟s treasury
management adviser.
4.6
Current Account Bank: Following a competitive tender exercise held in 2011, the
Council‟s current accounts are held with The Co-operative Bank plc which is currently
rated below the minimum A- rating in table 1. The Council may continue to deposit
surplus cash with The Co-operative Bank providing the funds can be withdrawn on the
next working day, and that the bank maintains a credit rating no lower than BBB- (the
lowest investment grade rating). However, the Co-operative Bank‟s is currently rated
below the minimum A- rating and no investments are placed with the bank at the current
time. Day to day credit balances are kept to a minimum. A tendering exercise is in
33
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
progress to secure a new bank for the Council‟s day to day banking requirements, and
the investment limit indicated in table 1 will apply to the new bank.
4.7
Registered Providers: Formerly known as Housing Associations, Registered Providers
of Social Housing are tightly regulated by the Homes and Communities Agency and
retain a high likelihood of receiving government support if needed. The Council will
consider investing with unrated Registered Providers with adequate credit safeguards,
subject to receiving independent advice.
4.8
Building Societies: The Council takes additional comfort from the building societies‟
regulatory framework and insolvency regime where, in the unlikely event of a building
society liquidation, the Council‟s deposits would be paid out in preference to retail
depositors. The Council will therefore consider investing with unrated building societies
where independent credit analysis shows them to be suitably creditworthy. The
Government has announced plans to amend the building society insolvency regime
alongside its plans for wide ranging banking reform, and investments in lower rated and
unrated building societies will therefore be kept under continuous review.
4.9
Money Market Funds: In these funds investors pool their funds together which are then
invested by the fund manager in money market deposits and similar instruments. They
have the advantage of providing wide diversification of investment risks, coupled with the
services of a professional fund manager. Fees of between 0.10% and 0.20% per annum
are deducted from the interest paid to the Council. Funds that offer same-day liquidity
and aim for a constant net asset value will be used as an alternative to instant access
bank accounts, whereas funds where the net asset value changes with market prices
and or have a notice period will be used for longer investment periods.
4.10
Other Pooled Funds: The Council will continue to use pooled bond, equity and property
funds that offer enhanced returns over the longer term, but are potentially more volatile
in the shorter term. These allow the Authority to diversify into asset classes other than
cash without the need to own and manage the underlying investments. Because these
funds have no defined maturity date, but are available for withdrawal after a notice
period, their performance and continued suitability in meeting the Authority‟s investment
objectives will be monitored regularly.
4.11
Risk Assessment and Credit Ratings: The Council uses long-term credit ratings from
the three main rating agencies Fitch Ratings, Moody‟s Investors Service and Standard &
Poor‟s Financial Services to assess the risk of investment default. The lowest available
counterparty credit rating will be used to determine credit quality, unless an investmentspecific rating is available. Credit ratings are obtained and monitored by the Council‟s
treasury advisers, who will notify changes in ratings as they occur. Where an entity has
its credit rating downgraded so that it fails to meet the approved investment criteria then:
•
no new investments will be made,
•
any existing investments that can be recalled or sold at no cost will be, and
•
full consideration will be given to the recall or sale of all other existing
investments with the affected counterparty.
Where a credit rating agency announces that a rating is on review for possible
downgrade (also known as “rating watch negative” or “credit watch negative”) so that it
may fall below the approved rating criteria, then only investments that can be withdrawn
will be made with that organisation until the outcome of the review is announced. This
policy will not apply to negative outlooks, which indicate a long-term direction of travel
rather than an imminent change of rating.
4.12
Other Information on the Security of Investments: The Council considers that credit
ratings are good, but not perfect, predictors of investment default. Full regard will
34
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
therefore be given to other available information on the credit quality of the organisations
in which it invests, including credit default swap prices, financial statements, information
on potential government support and reports in the quality financial press. No
investments will be made with an organisation if there are substantive doubts about its
credit quality, even though it may meet the credit rating criteria.
4.13
When deteriorating financial market conditions affect the creditworthiness of all
organisations, as happened in 2008 and 2011, this is not generally reflected in credit
ratings, but can be seen in other market measures. In these circumstances, the Council
will restrict its investments to those organisations of higher credit quality and reduce the
maximum duration of its investments to maintain the required level of security. The
extent of these restrictions will be in line with prevailing financial market conditions. If
these restrictions mean that insufficient commercial organisations of high credit quality
are available to invest the Council‟s cash balances, then the surplus will be deposited
with the UK Government, via the Debt Management Office for example, or with other
local authorities. This will cause a reduction in the level of investment income earned,
but will protect the principal sum invested.
4.14
Specified Investments: The CLG Guidance defines specified investments as those:
•
•
•
•
denominated in pound sterling,
due to be repaid within 12 months of arrangement,
not defined as capital expenditure by legislation, and
invested with one of:
- the UK Government,
- a UK local authority, parish council or community council, or
- a body or investment scheme of “high credit quality”.
The Authority defines “high credit quality” organisations as those having a credit rating of
A- or higher that are domiciled in the UK or a foreign country with a sovereign rating of
AA+ or higher. For money market funds and other pooled funds “high credit quality” is
defined as those having a credit rating of A- or higher.
4.15
Non-specified Investments: Any investment not meeting the definition of a specified
investment is classed as non-specified. The Authority does not intend to make any
investments denominated in foreign currencies, nor any that are defined as capital
expenditure by legislation, such as company shares. Non-specified investments will
therefore be limited to long-term investments, i.e. those that are due to mature 12
months or longer from the date of arrangement, and investments with bodies and
schemes not meeting the definition on high credit quality.
4.16
Non-Specified Investment: The total amount which can be invested in non-specified
investments is £10m. This can be in long-term investments and/or investments without
credit ratings or rated below A-.
4.17
Investment Limits: The Authority‟s revenue reserves available to cover investment
losses are forecast to be £8.2 million on 31st March 2014. In order that no more than
20% of available reserves will be put at risk in the case of a single default, the maximum
that will be lent to any one organisation (other than the UK Government) will be £1.5
million. A group of banks under the same ownership or a group of funds under the same
management will be treated as a single organisation for limit purposes. Limits will also
be placed on investments in brokers‟ nominee accounts foreign countries and industry
sectors as below:
35
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
Table 2: Investment Limits
Cash limit
Any single organisation, except the UK Central
Government
*Where covered bonds or secured investments are
used, the single organisation limit will be £2.25m
provided that no more than £1.5m is in unsecured
investments with that organisation. (Covered bonds will
not be subject to bail-in.)
UK Central Government
Any group of organisations under the same ownership
Any group of pooled funds under the same
management
Negotiable instruments held in a broker‟s nominee
account
Foreign countries
unlimited
£1.5m per group
£5m per manager
£4m per broker
£5m per country
Registered Providers
£4m in total
Building Societies
£5m in total
Money Market Funds
4.18
£1.5m each*
£12.5m in total
Approved Instruments: The Council may lend or invest money using any of the
following instruments:
•
•
•
•
•
•
•
interest-bearing bank accounts,
fixed term deposits and loans,
callable deposits and loans where the Council may demand repayment at
any time (with or without notice),
callable deposits and loans where the borrower may repay before maturity,
certificates of deposit,
bonds, notes, bills, commercial paper and other marketable instruments, and
shares in money market funds and other pooled funds.
Investments may be made at either a fixed rate of interest, or at a variable rate linked to
a market interest rate, such as the London Interbank Offered Rate (LIBOR), subject to
the limits on interest rate exposures below.
4.19
Liquidity management: The Council maintains a cash flow forecast on an Excel spread
sheet to determine the maximum period for which funds may prudently be committed.
The forecast is used to minimise the risk that the Council is forced to borrow on
unfavourable terms to meet its financial commitments.
5
Treasury Management Indicators
5.1
The Council measures and manages its exposures to treasury management risks using
the following indicators.
36
Cabinet
Overview & Scrutiny
Full Council
5.2
03 February 2014
12 February 2014
26 February 2014
Security: The Council has adopted a voluntary measure of its exposure to credit risk by
monitoring the value-weighted average credit score of its investment portfolio. This is
calculated by applying a score to each investment (AAA=1, AA+=2, etc.) and taking the
arithmetic average, weighted by the size of each investment.
Target
Portfolio average credit score
6.0
A credit score of „6‟ equates to a long-term rating of „A‟ (Fitch and S&P) or A2 (Moody‟s).
5.3
Liquidity: The Council has adopted a voluntary measure of its exposure to liquidity risk
by monitoring the amount of cash available to meet unexpected payments within a
rolling three month period, without additional borrowing.
Target
Total cash available within 3 months
5.4
£3m
Interest Rate Exposures: This indicator is set to control the Council‟s exposure to
interest rate risk. The upper limits on fixed and variable rate exposures, expressed as
the proportion of net principal borrowed (i.e. fixed rate debt net of fixed rate investments,
will be:
2014/15
Estimate
%
2015/16
Estimate
%
2016/17
Estimate
%
Upper Limit for
Fixed Interest
Rate Exposure
(100%)
(100%)
(100%)
Upper Limit for
Variable Interest
Rate Exposure
(100%)
(100%)
(100%)
5.5
As the Council‟s investments exceed its borrowing, these calculations have resulted in a
negative figure.
5.6
The purpose of the limit is to ensure that the Council is not exposed to interest rate rises
on any borrowing which could adversely impact the revenue budget. Variable rate
borrowing can be used to offset exposure to changes in short term rates on investments.
However, the Council does not anticipate entering into a borrowing during the period of
the Strategy. These limits therefore allow maximum flexibility for fixed or variable rate
investments and investment decisions will ultimately be made on expectations of interest
rate movements as set out in the Strategy. Fixed rate investments and borrowings are
those where the rate of interest is fixed for the whole financial year. Instruments that
mature during the financial year are classed as variable rate.
5.7
Maturity Structure of Fixed Rate borrowing:
5.8
This indicator highlights the existence of any large concentrations of fixed rate borrowing
needing to be replaced at times of uncertainty over interest rates and is designed to
37
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
protect against excessive exposures to interest rate changes in any one period, in
particular in the course of the next ten years.
5.9
It is calculated as the amount of projected borrowing that is fixed rate maturing in each
period as a percentage of total projected borrowing that is fixed rate. The Council is
currently debt free and does not anticipate new borrowing in 2014/15 (other than for
short periods for cash flow purposes). However, should the Council require to borrow for
the long-term, the limits below provide the flexibility to borrow fixed rate loans in any of
the maturity bands below.
Lower Limit
for 2014/15
%
0
Upper Limit
for 2014/15
%
100
12 months and within 24 months
0
100
24 months and within 5 years
0
100
5 years and within 10 years
0
100
10 years and above
0
100
Maturity structure of fixed rate borrowing
under 12 months
5.11
To provide context for any potential borrowing, the Council‟s Authorised Limit for
External Debt for 2014/15 is £8.228m and the Operational Boundary for External Debt is
£6.168m. The Authorised Limit is the Council‟s affordable borrowing limit in compliance
with the Local Government Act 2003. It is the maximum amount of debt the Council can
legally owe. The Operational Boundary for external Debt is based on the Council‟s
estimate of most likely but not worst case scenario for external debt. These limits form
part of the Prudential Indicators set out in the 2014/15 Budget Report included
elsewhere on the agenda.
5.12
Principal Sums Invested for Periods Longer than 364 days: The purpose of this
indicator is to limit exposure to the possibility of loss which may arise as a result of the
Council having to seek early repayment of the sums invested. The limits on the total
principal sum invested to final maturities beyond the period end will be:
Limit on principal invested beyond year end
2014/15
2015/16
2016/17
£10m
£7.5m
£5m
6
Policy on Use of Financial Derivatives
6.1
The CIPFA Code requires authorities to clearly detail their policy on the use of financial
derivatives in the annual strategy. These instruments are used to manage risks (such
as interest rate swaps to manage interest rate risks), and can be embedded into loans
and investments, or are standalone. The general power of competence in Section 1 of
the Localism Act 2011 removes much of the uncertainty over local authorities‟ use of
standalone financial derivatives.
6.2
The Council will only use standalone financial derivatives (such as interest rate swaps)
where it can be clearly demonstrated that they reduce the overall level of financial risks
38
Cabinet
Overview & Scrutiny
Full Council
03 February 2014
12 February 2014
26 February 2014
that the Council is exposed to. They will only be used after seeking expertise, a legal
opinion and ensuring officers have the appropriate training for their use.
6.3
Embedded derivatives will not be subject to this policy, although the risks they present
will be managed in line with the overall treasury risk management strategy.
7.
Training
7.1
In accordance with CIPFA‟s Code of Practice, the “responsible officer” ensures that all
members tasked with treasury management responsibilities, including scrutiny of the
treasury management function, receive appropriate training relevant to their needs and
understands fully their roles and responsibilities.
8.
Treasury Management Advisors
8.1
The Council employs a Treasury Management Advisor, Arlingclose Limited, to provide
advice and information on counterparty creditworthiness, treasury strategy, economic
updates and technical support on all treasury matters. The Treasury Advisory Service is
periodically subject to tender to ensure the Council receives a quality service and
Arlingclose successfully tendered for a new contract commencing 1 April 2011 for a
period of 3 years. The option to extend the contract for a further year has been taken by
the Council and the current contract now expires on 31 March 2015.
9.
Financial Implications and Risks
9.1
The budget for investment income in 2014/15 is £366,300 based on an average
investment balance of £22.2 million at an interest rate of 1.65%. This rate is based on
the Council‟s £5m investment in the Local Authorities Property Fund earning an
estimated 5.48% in 2014/15. The current interest rates for deposits with banking
institutions are, however, very low (around 0.45% for a 3-month deposit and around
0.85% for a 12-month deposit). These low rates are also expected to prevail throughout
2014/15.
The effectiveness of the Treasury Strategy will have a significant impact on the budget
and finances of the Council. Investment decisions will be made based on the Council‟s
forecast of interest rate movements. If actual rate movements prove to be very different,
there will be implications for the investment return achieved.
9.2
It is not possible to predict with certainty the future movements in interest rates. The
Strategy must therefore be flexible enough to allow the Council to respond to changing
market conditions. It must also enable the Council to respond to future changes in
legislation.
9.3
The security of the Council‟s investments is of prime concern, and the Strategy must
ensure that, as far as possible, the Council‟s investments are repaid in full, with interest
earned, on the due date.
10.
Sustainability – None as a direct consequence of this report.
11.
Equality and Diversity – None as a direct consequence of this report.
12.
Section 17 Crime and Disorder considerations – None as a direct consequence of
this report.
39
Agenda Item No_____12_______
2014/15 BUDGET REPORT
Summary:
This report presents for approval the 2014/15 budget
along with the latest financial projections for the
following three years to 2017/18.
Options considered:
The budget for the forthcoming financial year must be
set annually. Whilst there are options around the
individual budgets presented for approval i.e. what is
included in the budget for 2014/15, the overall position
now presented for approval is the culmination of work
carried out by officers and Cabinet over a number of
months, details of this work is provided within the report.
Conclusions:
The Council‟s budget is set for approval each year; it is
presented to Cabinet and then considered by Overview
and Scrutiny Committee before recommendations are
made to Full Council. This report now presents a
balanced budget for 2014/15 and also presents the
latest financial projections for the following three
financial years, 2015/16 to 2017/18. The budget has
been produced based on a number of assumptions as
detailed within the main body of the report and also
reflects the provisional finance settlement announced on
18 December 2013. The report recommends that the
surplus for the year is allocated to the general reserve to
mitigate the impact of funding costs in relation to the
storm surge that occurred in December 2013. The
report outlines the risks facing the Council in setting the
budget and forecasting future spending plans and
resources.
Recommendations:
It is recommended that Cabinet agree and where
necessary recommend to Full Council:
1)
The 2014/15 revenue budget as outlined at
Appendix E;
2)
The surplus of £533,425 be allocated to the
general reserve;
3)
The demand on the Collection Fund, subject
to any amendments as a result of final
precepts still to be received be:
a. £5,205,386 for District purposes
b. £1,599,741 (subject to confirmation of the
final precepts) for Parish/Town Precepts;
4)
The statement of and movement on the
reserves as detailed at Appendix I;
5)
The updated Capital Programme and
financing for 2013/14 to 2016/17 as detailed at
Appendix J;
40
6)
7)
8)
9)
Reasons for
Recommendations:
The new capital bids as detailed at Appendix
K;
The prudential indicators as included at
Appendix L;
The approval of a three year arrangement for
the provision of Monitoring officer through
NP Law as detailed within section 5.3.4 of the
report;
That members note the current financial
projections for the period 2015/16 to 2017/18.
To recommend a balanced budget for 2014/15 for
approval by Full Council on 26 February 2014.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Local Government Finance Settlement 2014/15, 2013/14 budget monitoring reports.
Cabinet Member(s):
Cllr Wyndham Northam
Ward(s) affected
All
Contact Officer, telephone number and email: Karen Sly, 01263 516243,
Karen.sly@north-norfolk.gov.uk
1
Introduction
1.1
This report presents the detail of the 2014/15 revenue budget and the
indicative projections for the following three financial years, 2015/16 to
2017/18.
1.2
An updated Capital Programme has also been included covering the periods
2013/14 to 2016/17 which takes account of slippage of schemes between
financial years. Details of new capital schemes are included within the report
for approval.
1.3
This report will be considered by the Overview and Scrutiny Committee on 12
February and then presented for approval by Full Council on 26 February
2014 as part of the Council Tax setting report.
1.4
The Financial Strategy covering the period 2014/15 to 2016/17 was presented
to Members in September 2013. At that time the forecast budget gap over
the next three years was in the region of £1 million. This position took account
of known spending pressures at the time, forecast grant reductions of up to
30% over the period 2013/14 to 2016/17, council tax freeze for the period of
the strategy, use of the New Homes Bonus (NHB) from 2014/15 onwards and
a number of work stream savings and additional income.
41
1.5
Since then the detail of the budget for 2014/15 has been developed by both
Officers and Members resulting in the budget now presented in this report.
This includes the provisional finance settlement figures announced on 18
December 2013, the final settlement is expected early February. The final
budget presented for approval on 26 February 2014 will be updated to reflect
the final figures as applicable.
1.6
The following sections of the report present the detail and context within
which the budget has been produced. The summary of the budget and
service budget details are included at appendices E and F respectively.
2
Provisional Local Government Finance Settlement (LGFS) - Overview
2.1
On 18 December 2013 the Local Government Minister, Brandon Lewis,
announced the provisional Local Government Finance Settlement (LGFS) for
2014/15 and the illustrative settlement for 2015/16, and launched a
consultation on the settlement which ended on 15 January 2014.
2.2
The final settlement figures are due to be announced in early February when
the result of the consultation exercise covering the provisional has been
assessed.
2.3
The Government uses a measure of local authority finance called “Revenue
Spending Power” which has as it‟s constituent elements the main sources of
income (non-service specific) to the Council; i.e. Council tax income, New
Homes Bonus and Government Grants. Headline figures for national average
funding reductions have been quoted as being within the region of 2.9% to
3%. Comparative figures for NNDC spending power reductions are 2.7% for
2014/15 and 3.2% for 2015/16. Table 1 below provides a summary of the
main elements of Revenue Spending Power.
42
Table 1 - Revenue Spending Power
Spending Power Components
2014/15
2014/15
2015/16
Provisional Adjusted Illustrative
£000
£000
£000
£000
4,878
4,897
4,897
4,915
7,155
6,203
6,203
5,246
2013/14
Council Tax Requirement (excluding parish)
Settlement Funding Assessment
Adjustment to reflect Section 31 grants for business rates
cap
Community Right to Challenge
Community Right to Bid
Indicative Council Tax Freeze Grant 2014/15
Indicative Council Tax Freeze Grant 2015/16
New Homes Bonus
New Homes Bonus: returned funding
Housing Benefit Subsidy Admin
Local Council Tax Support and Housing Benefit
Administration Subsidy **
Council Tax Support New Burdens Funding
Total Estimated 'Revenue Spending Power'
Change in estimated 'revenue spending power' 2014/15
0
30
0
0
9
8
0
0
706
24
663
9
8
58
0
1,265
10
0
0
0
58
0
1,265
0
0
0
0
58
58
1,824*
0
0
0
583
0
0
58
13,500
76
13,138
76
12,498
0
12,101
(362)
-2.7%
Change in estimated 'revenue spending power' 2015/16
(from 14/15 adjusted)
(397)
-3.2%
* 2015/16 indicative NHB is based on 2014/15 allocation, see later comment at section 3.
** 2015/16 announcements yet to be made.
2.4
The 2014/15 adjusted figures allow for a comparison to 2015/16 illustrative,
and reflect the removal of one-off funding and also funding for the Local
Council Tax Support and Housing Benefit Administration Subsidy as this is
still to be announced for 2015/16.
2.5
The key element in terms of external support is the „Settlement Funding
Assessment‟. This essentially comprises the Council‟s Revenue Support
Grant (RSG) and baseline funding level uprated by the Retail Price Index .
Table 2 provides a breakdown of this element.
43
Table 2 – Settlement Funding Assessment
(RSG/Baseline funding)
2013/14
Actual
2014/15
Provisional
2015/16
Illustrative
£000
£000
£000
RSG
Council Tax Freeze Compensation (2011/12)
86
84
83
506
n/a*
n/a*
Homelessness Prevention Funding
72
69
68
Efficiency Support for Services in Sparse Areas
45
57
57
Council Tax Freeze Compensation (2013/14)
58
58
58
Council Tax Support Funding
Returned Funding
0
8
0
767
275
265
RSG
3,571
3,055
2,029
Total RSG
4,338
3,331
2,294
57
58
60
337
n/a*
n/a*
48
49
50
442
107
110
Baseline
Council Tax Freeze Compensation (2011/12)
Council Tax Support Funding
Homelessness Prevention Funding
Baseline
2,376
2,765
2,842
Total Baseline
2,818
2,872.4
2,952
TOTAL SETTLEMENT FUNDING
7,156
6,203
5,246
(953)
(957)
-13.3%
-15.4%
Year on year reduction £000
Year on year reduction %
* Council Tax Support Funding not separately identified from 2014/15
2.6
The above table illustrates the settlement funding assessment as announced
within the provisional settlement. Total funding (excluding the New Homes
Bonus) is expected to reduce by 13.3% in 2014/15 (compared to 2013/14)
and then by a further 15.4% in 2015/16.
2.7
The 2013/14 final settlement made available £9.5 million for supporting
sparsely populated areas: NNDC‟s allocation in 2013/14 was £44,544 and at
the time it was assumed that this would be a one-off. The 2014/15 provisional
settlement continues this funding for the most sparsely populated authorities
and for NNDC this equates to £56,738 in each of the next two years.
2.8
The provisional LGFS announced that the Council Tax Freeze Grant would
be extended for both 2014/15 and 2015/16 and would be equivalent to a one
per cent increase in council tax. For NNDC this equates to £57,969 for
2014/15 and £58,177 for 2015/16. Referendum limits for council tax have not
yet been announced, these are expected to be announced separately in the
New Year.
2.9
New Homes Bonus – the provisional finance settlement includes
announcements on the New Homes Bonus for 2014/15, further details on this
are provided at section 3.
44
2.10
The Business Rates Retention Scheme came into operation in April 2013,
and no changes to the scheme were announced as part of the settlement,
however the income from business rates will be affected by the following
initiatives announced within the Autumn Statement on 5 December 2013:




2014/15 Business rate increases will be capped at 2% as opposed to the
3.2% RPI;
Introduction of a £1,000 discount for all retail, pubs, cafes (excluding
banks and betting offices) with rateable values below £50,000 for 2 years;
Continuation of the doubling of Small Business Rate Relief for a further
year (i.e. Until 31 March 2015 properties with a rateable value of £6,000
or less will continue to get 100% relief, as opposed to the usual rate of
50%);
Ratepayers will continue to keep their Small Business Rate Relief
entitlement for a year where they take on a second property. New
occupiers of former retail premises which have been unoccupied for a
year will receive a 50% discount for 18 months.
2.11
The provisional settlement has announced that councils will be compensated
through a section 31 grant. The provisional settlement includes £30,492 for
NNDC for 2014/15 and 2015/16 for the business rates initiatives.
3
New Homes Bonus (NHB)
3.1
The New Homes Bonus was introduced in 2011/12 to incentivise and reward
Councils and Communities that build new homes in their area. The bonus is
paid as an un-ring fenced grant for six years and is paid based on the net
additional1 homes plus an additional supplement of £350 per affordable
dwelling. The payment is then split between local authority tiers: 80% to the
lower tier and 20% to the upper tier.
3.2
The provisional allocation of NHB for 2014/15 for NNDC is £1,264,722; this is
based on the council tax data return submitted in October 2013 and
represents additions of 172, and a reduction in empty properties of 325. The
reduction in empty properties is a significant movement and is largely due to
the proactive work of the Enforcement Board and joint working within the
Council.
3.3
In early December the Autumn Statement did confirm there would be no topslicing of the NHB from 2015/16 for Local Enterprise Partnerships (with the
exception of London Authorities) as they had previously consulted upon. The
financial strategy had made the assumption that 35% would be top sliced
from 2015/16, which is no longer the case.
3.4
Table 3 below provides details of the Council‟s allocations of NHB to date.
1
Net additional homes as recorded on the council tax base return (submitted October
annually) takes into growth in property numbers, demolitions and movement in empty
properties.
45
Table 3 – New Homes Bonus – Allocations to date
Allocation 2011/12 2012/13
2013/14
2014/15
£
£
£
£
349,762 349,762
349,762
349,762
2011/12
261,916
261,916
261,916
2012/13
117,739*
93,857
2013/14
569,146
2014/15
Total
349,762 611,678
729,417 1,274,681
2015/16
£
349,762
261,916
93,857
569,146
1,274,681
2016/17
£
349,762
261,916
93,857
569,146
1,274,681
2017/18
£
261,916
93,857
569,146
924,919
* Allocation of £93,857 plus £23,882 one-off reallocation for 2013/14
** Allocation of £559,186 plus £9,960 one-off returned funding for 2014/15
3.5
The settlement also included provisional NHB allocations for 2015/16, these
are based on the same data for 2014/15, and therefore at this time due to the
significant movement in empty properties up to October 2013, it is expected
that this is an overestimate.
3.6
The NHB was introduced in 2011/12, the bonus is paid each year for six
years. Whilst the NHB is included within the Government‟s assessment of
spending power, the future return and allocation methods could be subject to
change. The consultation on the NHB and Local Growth Fund that was
carried out in 2013 set out that the Government is willing to make changes to
the scheme and allocations, the result of the consultation did however result
in no top-slicing to the bonus now being introduced. Including the full amount
in the base budget presents a risk in terms of future funding should the
scheme be changed or replaced with a different funding mechanism. To
mitigate this risk only 20% of the bonus has been transferred to the
earmarked reserve in 2014/15.
3.7
There is currently a balance within the New Homes Bonus earmarked reserve
of just over £1.2 million. This has previously been earmarked to support the
Council and communities for future growth opportunities and development.
4
Savings 2014/15
4.1
The financial strategy as reported to Cabinet in September outlined a number
of work streams and priorities to be delivered over the medium term. Work on
a number of these has progressed and the following provides details of
savings that have now been included in the budget as presented for approval
under each of the headings. A schedule of the savings factored into the
2014/15 base budget are included at Appendix G.
4.1.1
Reorganisation and Service Restructuring – the budget includes
approximately £113,000 of savings to be achieved from service restructurings
within the Economic Development and Community Service area. This does
includes £38,800 in relation to the removal of a vacant post and the balance
from a team restructuring.
4.1.2
IT Strategy and Customer Services Strategy - the Business Transformation
project was reported to Cabinet in November which included the IT and
Customer Services strategies. No savings have been factored into the
2014/15 budget nor future projections at this stage. As the detailed projects
come forward along with their associated business cases, these will be
factored in to the future financial projections.
46
4.1.3
Contracts and Procurement – The budget assumes total annual savings of
£209,000 from three service contracts. These are expected to be delivered
from a review of current contracts including leisure facilities, review of the
cleansing and waste contract and the outcome of the new materials recycling
facility contract which comes into operation later in 2014.
4.1.4
Income Maximisation – The budget includes a target additional income of
£40,000 from the garden waste service which is anticipated to be achieved by
increased customer numbers. Further work is still ongoing to identify
opportunities for Payroll and Human Resources services but at this time no
savings targets have been factored into the budget or financial forecasts.
4.1.5
Changes to Policy Framework – The decision to no longer provide the CCTV
service from April 2014 was made in October 2013. Savings of £190,760
have been reflected in the budget from 2014/15, along with the one-off costs
required to decommission the service. In addition savings of £40,000 have
been included with the budget from removing the contribution to the Cromer
Museum.
4.1.6
Other Savings – a number of smaller service savings have been included in
the budget totalling £15,800 from Organisational Development and Finance.
4.2
Where applicable the level of savings to be achieved from the workstreams
have been profiled accordingly, for example only a part year saving has been
factored into the budget for 2014/15 with a full year saving from 2015/16. The
total of savings/additional income that has been factored into the budget for
2014/15 is £513,744; this will increase to £722,344 in 2015/16.
5
Revenue Account Base Budget
5.1
The detail of the revenue budget now presented for approval is included
within Appendices E and F. Appendix E shows the overall position in the form
of the General Fund Summary. Further detail on the individual service
budgets is included at Appendix F which shows the movement of the 2014/15
budget compared to the updated budget for 2013/14 along with comments of
the more significant variances.
5.2
No growth bids were invited for revenue expenditure in 2014/15. Capital bids
were invited, although these were limited to those which addressed Health
and Safety issues, computer system upgrades and enhancements that will
deliver efficiency savings, together with Invest to Save projects that support
the delivery of the Corporate Plan actions. The capital programme is
discussed in detail at section 9 which includes both an update to the current
capital programme along with new capital schemes.
5.3
The revenue budget for 2014/15 makes a number of assumptions, the more
significant ones are as follows:
5.3.1
Council Tax – The budget assumes a Council Tax freeze for the district
element of Council Tax in 2014/15 and that the tax freeze grant as detailed at
2.8 is receivable in 2014/15 and 2015/16. No future assumptions have been
made around annual council tax increases. This means that the district
element of the council tax remains at £138.87 for 2014/15. There are still 12
parish precepts for 2014/15 yet to be received, although these will not impact
47
on the district council tax element. . The final figure for the parish precepts will
therefore be included in the Council Tax report to Full Council later in the
month.
5.3.2
Employee budgets – The budget assumes a 1% pay award for 2014/15,
although a local agreement on pay has yet to be agreed. As a guide a 0.5%
sensitivity to the pay award equates to approximately £43,000 per annum. An
allowance has been made to reflect vacancy savings of 2% as in previous
years and where annual increments are due these have continued to be
factored into the budget. The employer pension contribution rates for the
three years covering 2014/15 to 2016/17 are based upon initial results of the
tri-ennial valuation results of the pension fund as at 31 March 2013. From
2014/15, the contribution rate will remain unchanged at 14.5% of the payroll
plus an additional fixed monetary contribution for three years. These
assumptions have been included in the 2014/15 budget and forward
projections. The next pension fund valuation is due on 31 March 2016 to take
effect from April 2017 and the contribution rate and fixed payment will be
adjusted at that point depending on the scheme‟s position as at 31 March
2016. The financial projections will be updated for any changes following the
results of this valuation.
5.3.3
October 2012 saw major changes introduced to the provision of workplace
pensions, which affects every single employer in the UK. Because our
population in the UK is growing, living longer, and from the government's
perspective, not saving enough for retirement, the Government is seeking to
increase the level of retirement saving through the workplace. The effect of
these changes are that from 1st April 2014 every eligible employee will be
automatically enrolled into the Local Government Pension Scheme (LGPS).
It will then be for each individual employee to “actively” opt-out of contributing
to the pension scheme. This change brings with it a financial impact in that,
additional employer contributions will also be payable. The budget assumes
that all those employees currently not in the LGPS will be enrolled from the 1st
April 2014. This equates to additional employer pension contributions for
2014/15 of £112,940.
5.3.4
Following the management restructure that took place in 2012/13 the Council
has been using NP Law for the provision of interim Monitoring Officer
services. This has worked well and therefore this report seeks approval for
making this a more formal arrangement by entering a three year Service
Level Agreement with NP Law for these services.
5.3.5
Fees and Charges – The fees and charges for 2014/15 were approved by Full
Council in December 2013, the financial impact of these have been factored
into the budget for 2014/15.
5.3.6
Contract inflation – The most significant of the Council‟s contracts is the
waste contract. The new contractor prices have been included in the 2014/15
budget for all waste, cleansing and grounds maintenance services as per the
tendered contract.
5.3.7
Investment income – A total of £363,710 is anticipated for 2014/15. The
primary concern for the Council is the security of the sums invested and this
remains the main consideration when selecting counterparties. The average
investment rate anticipated in the forward year is 1.68% compared with
1.75% for the current estimates for 2013/14. The income budget assumes the
48
investment portfolio is invested with UK counterparties in call accounts and
term deposits, and that existing deposits will continue to their maturity date. It
also takes account of the £5 million in pooled property funds. Further details
of the Council‟s investment strategy are set out in the Treasury Management
Strategy Statement and Investment Strategy 2014/15 to 2016/17 which
appears elsewhere on this agenda.
5.3.8
Big Society Fund/Second Homes Funding – The budget assumes the
continuation of the Big Society Fund and related costs and grant scheme,
funded by the second homes income which is returned to the districts.
5.4
Impact of the December 2013 tidal surge and flooding
5.4.1
An update on the costs and funding of the storm damage is included in the
budget monitoring report that is also included on this agenda. Whilst there is
expected to be some impact on some service income budgets during
2014/15, for example for loss of income from chalet hire the most significant
impact is in relation to the emergency repairs to assets and the coastal
protection assets and sea defences.
5.4.2
Some costs will be recovered through insurance claims for those assets that
are insured, for example the pier, chalets and public toilets and an element of
the emergency costs and immediate repairs are subject to the Bellwin
scheme, however the more significant items for example repair to the coastal
assets is not eligible for either of these funds. Discussions have already
commenced with Government Departments on funding for the costs in
relation to the damage, in particular those assets that not insured ie the
coastal defences. Further announcements are also anticipated on funding
available to those authorities affected by the flooding and impact on sea
defences. In the meantime however funding for these costs will need to be
allocated from NNDC resources, i.e. reserves in both 2013/14 and 2014/15. It
is for such events like these that the Local Authorities are required to hold
reserves.
5.4.3
The report is recommending that allocations from the general reserve are
made to fund the cost in 2013/14 and 2015/16, the exact profiling will be
updated as the work is carried out. More details on the impact on the general
reserve of this expenditure is included within section 7.
5.5
The General Fund Summary presented at Appendix E shows a balanced
budget for 2014/15 and is summarised in Table 4 with the equivalent figures
from the 2013/14 budget.
49
2013/14 Base
Budget
£
18,172,680
2014/15 Base
Budget
£
22,291,748
Non service expenditure/ income
(3,753,308)
(8,572,942)
Net budget requirement
14,419,372
13,718,806
Local Taxpayers - Parishes
(1,429,824)
(1,511,267)
Local Taxpayers - District Council
(5,082,610)
(5,205,386)
Settlement Funding Assessment (SFA)
(7,154,780)
(6,202,927)
(22,740)
0
Table 4 – Variance of 2013/14 to 2014/15 Base Budget
Net cost of services (incl. Parishes)
Funded by:
Local C Tax Support Transitional Funding
Council Tax Freeze Grant one off (14/15)
New Homes Bonus
Total Income
0
(57,969)
(729,418)
(1,274,682)
(14,419,372)
(14,252,231)
0
(533,425)
(Surplus)/ Deficit
5.6
Non-Service Expenditure and Income includes the adjustments for notional
items that are required to be charged within Net Cost of Services, for
example, International Accounting Standard 19 (IAS19) pension costs and
capital charges. The significant movement between years is due to the
presentation of the capital charges in relation to the loan to housing
associations and coast protection schemes.
5.7
Appendix F shows the detail of the service movements for each of the eight
service areas. Table 5 provides a summary of the main movements in Net
Cost of Services across the standard expenditure headings, with notional
charges being shown separately.
Table 5 - Variance 2013/14 to 2014/15 Base Budgets (excl. notional charges)
2013/14 Base 2014/15 Base
Budget
Budget
Variance
Percentage
Movement
Employees/Support Services
£
9,647,462
£
9,821,643
£
174,181
Premises
2,592,487
3,420,087
827,600
31.9%
Transport
340,425
316,396
(24,029)
-7.1%
9,848,508
9,973,547
125,039
1.3%
Supplies & Services
Transfer Payments
Income (External)
Total Direct Costs and Income
%
1.8%
26,491,049
27,886,386
1,395,337
5.3%
(36,714,428)
(38,071,366)
(1,356,938)
3.7%
12,205,503
13,346,693
1,141,190
9.3%
2,292,529
2,135,334
(157,195)
-6.9%
Notional Charges:
Capital Charges
IAS19 Notional Charges
(266,577)
(265,787)
790
-0.3%
Reffcus
2,511,401
5,564,241
3,052,840
121.6%
Total Notional Charges
4,537,353
7,433,788
2,896,435
63.8%
16,742,856
20,780,481
4,037,625
24.1%
Total Net Costs
50
5.8
The significant movement in relation to transfer payments is due to the
increase in housing benefit payments, although these have been offset by
housing subsidy receivable from the Department for Work and Pensions.
Other significant movements within the income line are mainly in relation to
the second homes funding for which confirmation for 2014/15 has not yet
been received, and has therefore not been factored into the budget. The
reduction in supplies and services costs is largely due to the service savings
as detailed earlier in the report and the removal of the Big Society Fund grant
amounts pending notification on the position on return of second homes
funding to the districts.
5.9
This report recommends that the surplus of £533,425 for 2014/15 be
allocated to the general reserve to fund the costs of the storm damage.
6
Council Tax 2014/15
6.1
Table 6 below summarises how the budget for 2014/15 will be financed and
the District‟s net call on the Collection Fund for 2014/15. These figures
assume a council tax freeze in the District element of the Council Tax for
2014/15: the Council tax summary is included at Appendix H.
Table 6 – Council Tax Summary 2014/15
Total District amount to be met from Government Grant & Local Taxation
£
12,207,539
Less:
Settlement Funding Assessment
(6,202,927)
New Homes Bonus
(1,274,682)
Council Tax Freeze Grant 2014/15
(57,969)
District call on Collection Fund – excluding Parish Precepts
Surplus
(5,205,386)
(533,425)
6.2
A Council Tax Base of 36,769 Band D equivalent properties was approved by
Full Council on 18 December 2013. Based on this figure, and with no
increase to the Net District Council Tax level, a Band D property would
continue to be £138.87 for 2014/15.
6.3
Announcements on Council tax referendum and capping limits are expected
to be made in February 2014.
7
Reserves
7.1
The current position and forecast on the General and Earmarked Reserves is
attached at Appendix I. The statement provides the latest proposals for use of
reserves in the current financial year along with the budgeted movements in
2014/15, and proposed movements in the following three financial years. The
current recommended balance on the general reserve is £1.75 million.
7.2
There are three main reasons for holding reserves:

To provide a working balance to help cushion the impact of uneven
cash flows and avoid unnecessary temporary borrowing – this forms
part of the General Fund Reserve
51


A contingency to cushion the impact of unexpected events or
emergencies – this also forms part of the General Reserve
As a means of building up funds, referred to as earmarked reserves,
to meet known or predicted requirements. Earmarked reserves are
accounted for separately but remain legally part of the General Fund.
The title of the earmarked reserve generally reflects the purpose for
which the balance is being maintained.
7.3
As part of putting the budget together for 2014/15 all reserves have been
reviewed along with the current balances. Where balances are no longer
required or an allocation can be maintained within the General Reserve for
such purposes, it is recommended that balances be reallocated to the
General Reserve or another earmarked reserve as appropriate.
7.4
The report is recommending that the surplus in the year is allocated to the
general reserve to mitigate the impact of the effect of the storm damage. The
following table details the forecast movements on the general reserve taking
into account the forecast spend in 2013/14 and 2014/15 following the storm
damage that occurred in December 2013.
Table 7 - General Reserve Movements
Opening Balance 1 April 2013
Forecast Contributions to/(from) General Reserve 2013/14
Estimated impact of funding Storm damage 2013/14
£
1,745,452
(1,186)
(613,250)
Projected balance 31 March 2014
1,131,016
Estimated impact of funding Storm damage 2014/15
Contribution to General Reserve (2014/15 Surplus)
(958,750)
533,425
Projected Balance 31 March 2015
705,691
7.5
After taking account of the planned movements to and from reserves this will
give a forecast balance on the General Reserve at 1 April 2015 of
£705,691which is below the current recommended balance of £1.75m. A
prudent financial management approach with a recommended balance in the
general reserve of £1.75 million has ensured that the impact in the short term
has been mitigated.
7.6
The medium term financial planning process will however need to take
account of re-instating the reserve to the minimum recommended balance.
7.7
The level of the reserves and their use will continue to be monitored and a
comprehensive statement about the adequacy of the reserves and
recommended balance will be included within the Chief Financial Officer‟s
report, which forms part of the annual Council Tax and Budget report to Full
Council in February.
8
Capital
8.1
An updated capital programme was included as part of the Period 6 budget
monitoring report that was presented to Members in November 2013. This
programme has since been updated for items of slippage identified for
2013/14 schemes and the amendment to the Empty Homes scheme as
reported within the Enforcement Board update report to the December
52
Cabinet meeting. The revised capital programme for 2013/14 is now shown,
together with the updated capital programmes for the financial years 2014/15
and 2015/16, at Appendix J.
8.2
Current Capital Schemes
8.2.1
At the Cabinet meeting in November, the capital programme appendix for
2013/14 had been updated for a number of changes, which were explained
within the Period 6 budget monitoring report. Since this time there have been
two further amendments which involved the removal of the Empty Homes
Budget for 2013/14 of £199,050, and the removal of the Housing Renovations
Grants Budget for the current financial year onwards.
8.2.2
Empty Homes Budget – The removal of this budget followed the presentation
of an Enforcement Board Update at the Cabinet meeting of the 2 December
2013, at which approval was given for the removal of the Empty Homes
capital budget from the programme, and the introduction of a separate
reserve to fund capital and revenue expenditure recommended by the
Enforcement Board. This expenditure is to be incurred to deal with difficult
and long standing enforcement cases, and bringing long term empty
properties back into use, which will result in social and economic benefits,
together with financial benefits to the council.
8.2.3
Housing Renovations Grants Budget – Following a review of the Housing
Strategy the Council no longer has a policy to make payments in relation to
Housing Renovation Grants. As a result the scheme has been removed from
the capital programme, and the capital receipts funding previously identified
for this scheme have been transferred to the Housing Loans to Registered
Providers capital scheme. The use of the capital receipts for the Loans
scheme will therefore reduce the levels of borrowing required for this scheme
by £1,407,091.
8.2.4
The only other changes made to the capital programme have been made in
relation to the profiling of expenditure against the following schemes, between
financial years. This is to reflect more accurately when expenditure is now
anticipated to be incurred, although it should be noted, that neither, the
scheme budgets, or the sources of funding for any of these schemes have
been changed.
8.2.5
North Norfolk Innovation Centre – This scheme has not progressed in the
current financial year, and as such the remaining capital budget of £39,705 is
requested for slippage into the 2014/15 financial year.
8.2.6
Disabled Facilities Grants (DFG) – The payment of grants for the provision of
disabled facilities is continuing, but it is not anticipated that all of the available
budget will be spent before the end of the financial year. Slippage of
£500,000 is therefore requested to 2014/15. Funding for DFG‟s is currently
paid by the Department for Communities and Local Government (DCLG) as a
capital grant. From 2015/16 this funding will be provided by the Department
for Health with no capital spend on DFG by the DCLG. The detail of this and
how it will work in terms of passing funding to districts is not yet clear.
Currently the future capital programme assumes an equivalent level of
funding is still received by the Council, however this will need to be monitored
and future budgets and funding statements updated accordingly.
53
8.2.7
Housing Associations – A revised profile of expenditure has been identified
for the individual housing projects within this scheme. Based on the amended
timetable of key dates it has been identified that a budget of £819,950 will be
required for this financial year, with the balance of £105,150 being requested
for slippage to 2014/15.
8.2.8
Housing Loans to Registered Providers - The budget of £3.5 million for
Housing Loans to Registered Providers was agreed as part of the Local
Investment Strategy considered at the Cabinet meeting of the 9 September
2013. Following this, registered providers within the area were contacted with
a request for expressions of interest in the scheme. Following receipt of a
response in December the Council are currently undertaking the due
diligence process, with a view to granting loans within the next 12 months.
The established budget is unlikely to be spent within the current financial
year, and as such the full value of £3.5 million has been requested for
slippage to 2014/15.
8.2.9
Sheringham Beach Handrails – Although there has been a minimal amount of
expenditure against this scheme in the current financial year, the final works
are not due to be completed until 2014/15. As such the balance of unspent
budget of £2,501, is therefore requested to be slipped into the new financial
year.
8.2.10 Cromer Pier Structural Works – Phase 2 – Works have been continuing
against this scheme, with a number of significant contractor payments being
made during the current financial year. The remaining programme of works is
scheduled to be completed in the new financial year, and as such a request
has been made to slip £180,000 of the remaining budget into 2014/15.
8.2.11 Cromer Pier and West Prom Refurbishment Project – It is anticipated that
some works will commence on this scheme in 2013/14, but the main
expenditure is likely to be incurred in the new financial year. A total of
£150,000 has therefore been requested for slippage into 2014/15.
8.2.12 Refurbishment Works to the Seaside Shelters – Works have been
progressing against the refurbishment of some of the seaside shelters, but it
is not anticipated to be completed in the 2013/14 financial year, with £90,000
being requested for slippage into the new financial year.
8.2.13 Cromer Coast Protection Scheme 982 and SEA – This scheme is
progressing, and based on an amended timetable of dates, it has been
identified that of the available budget only £3,119,000 is likely to be spent in
the current financial year. As such a request has been made for the balance
of the year‟s budget, £6,517,290, to be taken into the new financial year.
Further to this, of the available budget an estimated £250,000 will be used to
undertake works in relation to repairs required as a result of the storm surge
in early December 2013. The Environment Agency have agreed to fund
repairs to the sea defences in Cromer, i.e. the cliff slips between the
Melbourne Slope and the Pier forecourt, as well as repairs to the parapet
walls, from this budget.
8.2.14 Cromer to Winterton Scheme – Progress has been made against this
scheme, although it is likely that £30,000 of the budget will not be spent until
the new financial year. A request has therefore been made to slip this
balance of budget into 2014/15.
54
8.2.15 North Lodge Park – This scheme is currently on hold pending discussions
with Cromer Town Council. No expenditure is likely to be incurred in the
current financial year, so the balance of £196,268 is requested for slippage
into 2014/15.
8.2.16 North Walsham Regeneration Scheme – This scheme is currently on hold
due to factors external to the authority, and the available budget of £52,955 is
therefore requested to be slipped into 2014/15.
8.2.17 Trade Waste Bins / Waste Vehicles – No further expenditure is anticipated
against this scheme in the current financial year. The remaining budget of
£92,301 is therefore requested for slippage into 2014/15.
8.2.18 Waste Management and Environmental Health IT System – The scheme is
being progressed, but it is anticipated that only £5,494 of the available budget
will be spent in 2013/14. The balance of £11,000 is requested for slippage to
2014/15.
8.2.19 Administrative Buildings – Elements of this scheme are being progressed, but
expenditure in the current financial year is likely to be around £100,000. It is
anticipated that £168,000 will therefore be required to be slipped into 2014/15
in order to cover works which will be scheduled for the new financial year.
8.2.20 Replacement of Planning Printer and Scanner – Implementation of this capital
scheme has been delayed, and will not be undertaken in the current financial
year. The full budget of £21,000 is therefore requested for slippage into
2014/15.
8.3
New Capital Schemes
8.3.1
In addition to the existing capital programme, approval is also being sought
for a number of further capital projects as identified in Appendix K. These
schemes have been considered by Cabinet members and Corporate
Leadership Team, and the decision has been made to support their inclusion
within the capital programme for 2014/15 onwards.
8.3.2
It is pertinent to note that within this summary of capital bids that no
consideration has been given to any capital schemes which may arise
following the implications of the storm surge experienced in December 2013.
When the full implications are known along with the level of Government
assistance via the Bellwin scheme, it may be necessary to re-prioritise
schemes in order that any necessary works can be completed.
8.4
IT Related Bids
8.4.1
Cash Receipting System Upgrade – A capital budget of £10,000 is required in
order to upgrade the current Capita Cash Receipting System. This would
serve to protect previous investments in the system and to ensure that the
system continues to be supported and kept up to date. This should provide up
to date functionality for both customers and the organisation as a whole.
8.4.2
Planning Probass 4 – Test Environment and Upgrades- The Planning Peer
Review highlighted the need to ensure that the department maximises their
use of IT, including increasing web access and the online viewing of
55
comments, reports and documents. Updates directly onto a live system are
publicly highlighted and would be considered as a high risk strategy. This
scheme therefore requests a budget of £27,185 which would facilitate the
testing of changes to software and the appearance and use of public access
to the system, that feeds directly onto the North Norfolk District Council
website.
8.4.3
Planning System – Scanning Old Files – A budget of £60,000 is requested in
order to enhance the current system by moving to electronic storage of
planning files. By utilising electronic storage methodology it will also be
possible to free up previous used accommodation space within our storage
depots.
8.4.4
IT Network Switches – A budget of £100,000 is requested for IT Network
Switches. These are required to replace the existing unsupported network
switches for more up to date versions which will be suitable for the new
telephony system, as well as the network in general for the next five years.
8.5
Coastal Related Bids
8.5.1
Sheringham West Promenade – The existing promenade to the west of
Sheringham, between The Leas slope and the lifeboat ramp is of traditional
construction with foundations directly onto underlying chalk. Over time as
beach levels fall there could be further exposure of the base and face of the
sea wall. This scheme requests approval for a total budget of £590,000; for
refurbishment of the sea wall, widening of the promenade and construction of
a sea wall apron in this area. The scheme seeks funding under the Flood and
Coast Defence Grant in Aid scheme of £375,000, with the remaining
£215,000 to be a partnership contribution from the council.
8.5.2
Mundesley – Refurbishment of Coastal Defences - The Shoreline
Management Plan policy for the Mundesely coastal frontage is to „hold the
line‟ until 2055. The condition of existing sea defences is mixed and therefore
works are required to ensure that existing defences fulfil their function in light
of predicted climate change and the longer term expectation of lowering
beach levels. The total cost of the scheme is identified at £2,221,000 with
£70,000 to be incurred in 2014/15 and the balance to be profiled for spend in
2016/17. Funding of £1,914,000 is being sought from the Environment
Agency Flood and Coast Defence Grant in Aid funding mechanism, with the
remaining £307,000 to be a partnership contribution from the council.
8.6
Asset Related Bids
8.6.1
The asset management plan is currently being prepared in the context of the
budget. The plan will be presented for approval in March which will also cover
a further review of the current asset related capital programme and where
applicable seek approval of asset related capital bids.
8.6.2
Parklands – Improvements - The provision of the facilities at the Parklands
Caravan Park currently meets the Council‟s Housing and Infrastructure
objectives within the Corporate Plan. Following a report which considered the
future options for the site, some improvements, including those relating to
Health and Safety issues, have been identified. The current bid for £100,000
56
would earmark funding for these works, with the allocation of this budget
being subject to more detailed reports to the Localism and Asset Board.
8.6.3
Steelwork Protection at Victory Swimming Pool and Fakenham Gym - A total
of £30,000 is required for the painting and recoating of exposed external
structure steelwork and steel cladding at these premises. There is an
obligation to maintain the external structure of these leisure facilities as part of
the management agreement with DC Leisure at both locations. Failure to
undertake the works may reduce the overall life of the asset and may lead to
more expensive remedial works in the future.
8.7
The total of the estimated project costs associated with these capital bids up
to 2017/18 is £3,138,185. It is anticipated that £987,185 would be expended
in 2014/15, with the remaining £2,151,000 profiled to be spent in the 2016/17
financial year. Of this total sum it is anticipated that a total of £2,289,000
could be receivable from the Environment Agency lead Flood and Coast
Defence Grant in Aid funding mechanism, which leaves a further £849,185 to
be funded from the council‟s own capital receipts.
8.8
Once approval for these new capital bids have been received the capital
programme will be amended to reflect these changes. The certainty of new
capital receipts will be monitored as part of the on-going budget monitoring
process, and where applicable recommendations will be made to amend the
capital programme and it‟s financing.
8.9
Capital Programme Funding
8.10
There are a number of sources of funding available to fund the capital
expenditure. The following outlines those which are available to the council:
a) External Contributions or Grants – e.g. the Environment Agency (EA) and
other third party contributions.
b) Reserves – Available capital and revenue reserves can be used to fund
capital expenditure, e.g. Capital Projects Reserve. Following the LSVT in
2006, the Council receives a share of the Victory Housing Trust VAT shelter
receipts. These receipts are currently going into the Capital Projects
Reserve, and may therefore be used to fund capital expenditure. These are
forecast to end in 2014/15 when the amounts set out in the transfer
agreement have been reached.
c) Capital Receipts – Capital receipts are generated from asset disposals and
can only be used to fund capital expenditure or to repay debt. The latter is
not applicable at the moment as the council is currently debt free
d) Borrowing – Under the Prudential Framework the council is able to fund
expenditure from borrowing provided that they can demonstrate affordability
and need. Whilst the council maintains a level of capital receipts, the need to
borrow cannot be demonstrated. However, following approval of the capital
scheme for Housing Loans to Register Providers it is possible that in the new
financial year that the council may need to enter into prudential borrowing,
and this has been reflected in the Prudential Indicators and MRP Statement
for 2014/15, which is included as Appendix L to this report
9
Future Projections 2015/16 to 2017/18
57
9.1
As mentioned within the report the provisional Local Government Finance
Settlement announcement includes an indicative settlement for 2015/16 in
additional to the provisional figures for 2014/15. The forecast financial
projections included at Appendix E makes assumptions around spending
forecasts and future levels of funding for the three year period 2015/16 to
2017/18. This shows a current forecast budget gap of £243k in 2015/16,
increasing to £1.3m in 2016/17 and £2.1 million in 2017/18.
9.2
The financial strategy report presented to Members in September 2013
highlighted a number of work streams and projects to be carried out over the
period of the strategy that would help to deliver future savings and additional
income, one of these work areas was in relation to the business
transformation programme of work. As reported previously to members this is
a significant piece of work that will be delivered over a number of years to
deliver future efficiency and cash savings to the Council‟s budget.
9.3
These work streams will be continuing and will be used to inform the updated
financial strategy and financial projections that will be completed in 2014/15.
9.4
Furthermore as outlined within section 7 the 2015/16 financial planning
process will need to highlight options around re-establishing the general
reserve to the recommended balance.
10
Financial Implications and Risks
10.1
The overall budget for 2014/15 is balanced and delivers a surplus of £533k,
which subject to approval. The recommended level of the General Reserve is
currently £1.75 million, the detail of the report highlights why this reserve is
forecast to fall below the current recommended balance by 31 March 2015,
essentially due to the costs of the storm surge that occurred in December
2013. The medium term financial plan will need to identify options to reinstate the general reserve to the minimum balance.
10.2
The main risks faced by the authority are outlined below:
10.2.1 Future Funding – The provisional Local Government Finance Settlement
confirms that Local Government will continue to face funding reductions for
the period of the financial forecasts. The provisional settlement figures
confirm the continued shift from Revenue Support Grant to Baseline Funding,
(retained business rates) and overall reductions between financial years of
just over £950,000. The financial planning process has taken account of this
change, however the future funding gaps still remain a risk.
10.2.2 Savings – Details of the savings that have been factored into the 2014/15
budget and future projections are included within the detail of the report.
Delivery of the savings at the levels budgeted is vital to delivery of the overall
budget and future financial position. Where applicable the timing of the
delivery of savings have been taken into account and a full year amount has
not been assumed until 2015/16. It is critical that the delivery of these savings
is closely monitored by CLT and Cabinet as part of the on-going budget
monitoring process.
58
10.2.3 Income – Income from a number of demand led services remains a financial
risk that cannot be fully influenced by the Council. Whilst estimates have been
based on previous actuals and knowledge of the service delivery, income
levels need to be closely monitored, for example for planning and car park
income.
10.2.4 Business Rates – Changes to the funding system that were introduced in
2013/14 included the local retention of business rates. This introduced a new
risk to the funding for Local authorities from 2013/14. After April 2013 this
mechanism changed such that 50% of income from business rates would be
retained locally (split with the County Council), and the remaining 50% being
paid over to Central Government. Within this revised approach there are a
number of inherent risks which will now be borne locally rather than across a
national pool. Further measures announced within the Autumn Statement and
detailed earlier in the report, continue to present a risk to Local Authorities,
albeit some of this risk is mitigated by the section 31 grant announced within
the LGFS.
10.2.5 Investment Returns – Interest rates continue to be low and the delivery of
investment returns is problematic with the choice of counterparty and period
of exposure needing to be weighed on a daily basis in line with the treasury
management strategy. Sound principles underpinned by professional
guidance from treasury management advisors allows for a cautious but not
complacent approach to investment returns. These returns still provide
support to the revenue budget and changes in economic forecasts, money
markets and the stock market, as well as the government‟s triple A rating can
all impact on these returns. In order to improve overall returns approval was
given in September 2013 to provide loans to Registered Providers of Social
Housing as part of the Council‟s Local Investment Strategy. The amount
made available to provide these loans is £3.5m. Because of the uncertainty
as to when any loans will be granted, no interest receivable from this has
been included in the current budget to date, the position will be monitored
through the budget monitoring process and the budget and future financial
forecasts updated accordingly.
10.2.6 New Homes Bonus – The Autumn Statement confirmed that following the
consultation on the New Homes Bonus and the Local Growth Fund in 2013
there would be no top-slicing (outside of London) of the New Homes Bonus
as previously anticipated. The bonus has from 2014/15 been factored into the
base budget (as approved in May 2013) however there still remains a risk
should there be any change to the scheme of allocating funding in this way.
10.2.7 Second Homes – The return of an element of the second homes council tax
from the County to the districts is subject to annual approval by the County.
This is returned to the districts for community related expenditure and has
been used to fund the Council‟s Big Society Fund (BSF) Grant scheme and
related expenditure. The budget assumes that the return of the funds from the
County continues for 2014/15.
11
Sustainability - none as a direct consequence of this report.
59
12
Equality and Diversity
12.1
The Council is required to consider the equality duty in its decision-making
and this includes the budget process. As part of any savings or investments
the Council must consider how it can:



Eliminate unlawful discrimination, harassment and victimisation;
Advance equality of opportunity between different groups; and
Foster good relations between different groups by tackling prejudice
and promoting understanding.
12.2
As discussed within the main report savings and additional income proposals
have been put forward for recommendations as part of the budget process.
As part of the proposals Heads of Service were asked to identify any equality
issues affecting a number of protected groups that needed to be considered
as part of accepting the savings/additional income proposals, and where any
negative affect was identified, how this could be minimised or removed. A
cumulative assessment has been undertaken in relation to the equality forms
and the savings proposals and no negative impact has been highlighted as a
result of this exercise.
13
Section 17 Crime and Disorder considerations – None as a direct
consequence of the report.
60
Appendix E
General Fund Summary 2014/15 Base Budget
Service Area
Assets & Leisure
Corporate Leadership Team/Corporate
Customer Services
Community & Economic Development
Development Management
Environmental Health
Finance
Organisational Development
Management Structures
2013/14 Base
2014/15
Budget
Base Budget
£
£
2,325,691
2,376,094
0
0
697,597
721,046
4,294,675
8,150,574
1,285,771
1,346,891
4,311,587
4,146,608
2,974,845
3,083,806
875,690
955,462
(23,000)
0
2015/16
Projection
£
1,926,975
0
700,301
3,004,797
1,235,031
3,897,757
3,083,116
1,050,222
0
2016/17
Projection
£
1,948,956
0
709,771
2,226,470
1,278,423
3,920,283
3,196,671
976,797
0
2017/18
Projection
£
1,967,562
0
710,654
2,208,375
1,290,717
3,909,954
3,197,021
978,882
0
Net Cost of Services
16,742,856
20,780,481
14,898,199
14,257,371
14,263,165
Parish Precepts (Estimate from 14/15 onwards)
Capital Charges
Reffcus
Interest Receivable
Revenue Financing for Capital
IAS 19 Pension Adjustment
1,429,824
(2,292,529)
(2,511,401)
(392,490)
400,000
266,577
1,599,741
(2,135,334)
(5,564,241)
(363,710)
420,950
265,787
1,599,741
(2,222,775)
(684,578)
(372,290)
225,000
265,787
1,599,741
(2,036,594)
0
(392,410)
225,000
265,787
1,599,741
(1,969,715)
0
(384,150)
225,000
265,787
Net Operating Expenditure
13,642,837
15,003,674
13,709,084
13,918,895
13,999,828
(9,449)
169,735
(21,180)
30,000
0
(142,000)
0
628,496
(68,358)
(43,304)
(31,500)
(15,000)
0
(10,000)
489,095
(200,000)
39,658
(182,585)
0
30,000
(60,000)
0
(5,005)
197,147
(19,020)
(72,839)
(115,000)
0
(50,000)
0
0
(958,750)
0
0
0
(60,000)
0
0
0
285,422
(18,126)
(4,000)
(38,000)
0
0
0
0
0
0
0
0
30,000
0
0
0
351,550
(18,126)
0
0
0
0
0
0
0
0
0
0
30,000
0
0
0
329,792
0
0
0
0
0
0
0
0
14,419,372
13,807,280
13,874,380
14,282,319
14,359,620
(1,429,824)
(5,082,610)
(2,817,506)
(4,337,274)
(1,599,741)
(5,205,386)
(2,872,392)
(3,330,535)
(1,599,741)
(5,152,784)
(2,951,673)
(2,294,088)
(1,599,741)
(5,173,719)
0
(1,599,741)
(5,194,655)
0
(22,740)
0
0
(729,418)
0
(57,969)
0
(1,274,682)
0
(57,969)
(58,177)
(1,516,721)
(4,418,741)
0
0
0
(1,757,721)
(3,800,117)
0
0
0
(1,648,959)
(14,419,372)
(14,340,705)
(13,631,153)
(12,949,922)
(12,243,472)
0
(533,425)
243,227
1,332,397
2,116,148
Contributions to/(from) Earmarked Reserves:
Capital Projects Reserve
Big Society Fund
Carbon Management
Elections
Enforcement Board
Housing
Legal
New Homes Bonus Reserve
Pathfinder
Planning Revenue
Restructuring/Invest to save
The Pier
Unspent Grants
Whistleblowing
Contribution to General Reserve (Reallocation)
Use of General Reserve
Amount to be met from Government Grant and Local
Taxpayers
Collection Fund – Parishes
Collection Fund – District
Retained Business Rates Baseline
Revenue Support Grant (RSG)
Forecast Funding (RSG & Business Rates Baseline)
LCTS Transitional funding
Council Tax Freeze (2013/14)
Council Tax Freeze (2015/16)
New Homes bonus
Income from Government Grant and Taxpayers
(Surplus)/Deficit
61
Appendix F
Community & Economic Development Service Area
Service
Health
Arts & Entertainments
Museums
General Economic Development
Tourism
Coast Protection
Pathfinder
Regeneration Management
Comm & Econ Dev Mgt
Independent Living Team
Hsg Strategy
Community and Localism
Coastal Management
2012/13
Actual
£
131
120,701
41,015
258,040
33,427
488,735
34,972
181,349
0
167,115
(269,908)
(152,576)
79,034
2013/14
Base Budget
2013/14
Updated
Budget
£
£
Variance
2014/15
2014/15 Base to
Base Budget 2013/14 Base
£
£
0
0
75,814
(39,136)
68
(40,949)
186,952
(11,753)
77,338
25,000
1,039,502
669,250
0
(7,697)
308,021
71,754
65,683
65,683
146,323
11,930
(155,517)
59,008
(110,116)
111,544
138,713
7,701
0
114,950
41,017
198,705
52,338
370,252
7,697
236,267
0
134,393
(214,525)
(221,660)
131,012
0
114,950
41,017
213,705
87,338
430,252
67,697
236,267
0
141,607
(291,141)
(103,955)
131,012
982,035
850,446
1,068,749
1,772,781
922,335
Gross Direct Costs - Reffcus
Gross Direct Income - Reffcus
Capital Charges
Support Service Charges
Support Service Recharges
2,454,540
(624,398)
480,048
1,352,614
(824,883)
2,827,678
(443,000)
721,179
1,218,230
(879,858)
2,827,678
(443,000)
721,179
1,218,230
(879,858)
6,007,241
(443,000)
547,816
1,212,570
(946,864)
3,179,563
0
(173,363)
(5,660)
(67,006)
Net Cost of Service
3,819,956
4,294,675
4,512,978
8,150,544
3,855,869
Total Net Costs
62
Appendix F
COMMUNITY & ECONOMIC DEVELOPMENT SERVICE AREA
2013/14 Base
Budget
£
2013/14
Updated
Budget
£
Variance
2014/15
Base
Budget
£
Explanation for Major Variances
£
Arts & Entertainments
Gross Direct Costs
116,410
116,410
77,274
Capital Charges
Gross Direct Income
Support Service Charges
Net Expenditure
1,300
(1,460)
25,020
141,270
1,300
(1,460)
25,020
141,270
1,471
(1,460)
23,390
100,675
Museums
Gross Direct Costs
Support Service Charges
Net Expenditure
41,017
570
41,587
41,017
570
41,587
68
20
88
329,663
344,663
282,910
(130,958)
205,760
(130,958)
205,760
(95,958)
234,010
404,465
419,465
420,962
Learning for Everyone
Support Service Charges
0
0
6,570
Net Expenditure
0
0
6,570
Tourism
Gross Direct Costs
52,338
87,338
77,338
25,000 Reserve allocation to Destination Management
Organisation (DMO) Final year.
Support Service Charges
62,870
62,870
82,980
Net Expenditure
115,208
150,208
160,318
20,110 Increased
structure
45,110
Coast Protection
Gross Direct Costs
370,277
430,277
1,039,527
Gross Direct Income
Capital Charges
(25)
719,879
(25)
719,879
(25)
546,345
Support Service Charges
242,960
242,960
228,250
1,333,091
1,393,091
1,814,097
(14,710) (£17,460) Lower recharges from Coastal
Management.
481,006
7,697
7,697
67,697
67,697
0
0
(7,697) Non recurring use of Pathfinder Reserve.
(7,697)
236,267
236,267
308,021
89,260
89,260
74,600
(325,527)
(325,527)
(382,621)
Net Expenditure
0
0
0
Comm & Econ Dev Mgt
Gross Direct Costs
Support Service Recharges
0
0
0
0
65,683
(65,683)
Net Expenditure
0
0
0
134,393
141,607
146,323
General Economic Development
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
Net Expenditure
Pathfinder
Gross Direct Costs
Net Expenditure
Regeneration Management
Gross Direct Costs
Support Service Charges
Support Service Recharges
Independent Living Team
Gross Direct Costs
63
(39,136) (£34,384) - Savings bid ECD2, staff
restructuring. (£5,000) - Reduced grant to Little
Theatre resulting from a prior year savings bid.
171
0
(1,630) No Major Variances.
(40,595)
(40,949) (£43,000) - Savings bid ECD 3
(550) No Major Variances.
(41,499)
(46,753) Movement in use of Pathfinder Reserve to fund
Economic Development Initiatives.
35,000
28,250 Increased costs recharged reflecting new
structure
16,497
6,570 Increased
structure
6,570
costs
costs
recharged
recharged
reflecting
reflecting
new
new
669,250 £669,250 - Repair costs relating to December
2013 storm surge, funded from general reserves
0
(173,534) This reflects
programme.
movements
in
the
capital
71,754 Staff transferred from other services less net
effect of Savings bid ECD2 restructuring of
(14,660) service.
The main variance relates to reduced charges
from Legal Services.
(57,094) Increased recharges reflecting higher service
costs
0
65,683 Staff transferred from other services
(65,683) Increased recharges reflecting higher service
costs
0
11,930 £3,000 Transfer from environmental
sustainability budget re energy projects. £7,214
Reallocation of admin support staff.
Appendix F
2013/14 Base
Budget
£
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Gross Direct Costs - Reffcus
1,350,000
1,350,000
2,402,091
Gross Direct Income - Reffcus
(443,000)
(443,000)
(443,000)
321,180
321,180
261,330
(179,713)
1,182,860
(179,713)
1,190,074
(195,463)
2,171,281
Support Service Charges
Support Service Recharges
Net Expenditure
64
Variance
Explanation for Major Variances
£
1,052,091 This reflects expenditure within the Capital
Programme.
0
(59,850) Review of Management Unit allocations
following the restructure of the Housing Service.
(15,750)
988,421
Appendix F
2013/14 Base
Budget
£
Housing Strategy
Gross Direct Costs
2013/14
Updated
Budget
£
Variance
2014/15
Base
Budget
£
Explanation for Major Variances
£
185,475
108,859
90,138
Gross Direct Costs - Reffcus
1,477,678
1,477,678
3,605,150
Gross Direct Income
(400,000)
(400,000)
(245,655)
111,710
111,710
172,300
Support Service Recharges
Net Expenditure
(170,406)
1,204,457
(170,406)
1,127,841
(116,744)
3,505,189
Community and Localism
Gross Direct Costs
662,305
780,010
840,950
(883,965)
(883,965)
(951,066)
(67,101) 2014/15 Second Homes Grant higher than
2013/14
85,700
85,700
81,480
(135,960)
(18,255)
(28,636)
(4,220) Reduced recharge from Property Services
following a review of staff time.
107,324
135,452
135,452
148,293
12,841 (£27,000) This reflects Non recurring use of
Pathfinder Reserve and (£4,500) Savings from
EDC2.
(4,440)
73,200
(4,440)
73,200
(9,580)
47,640
(5,140) Increased recharges for Capital Projects
(25,560) (£24,590) Reduced recharge from Property
Services following a review of staff time.Lower
recharges from Accountancy, Computers and
Legal Services
(204,212)
(204,212)
(186,353)
0
0
0
2,271,294
2,827,678
721,179
(1,420,848)
(443,000)
1,218,230
(879,858)
4,294,675
2,489,597
2,827,678
721,179
(1,420,848)
(443,000)
1,218,230
(879,858)
4,512,978
3,076,525
6,007,241
547,816
(1,303,744)
(443,000)
1,212,570
(946,864)
8,150,544
Support Service Charges
Gross Direct Income
Support Service Charges
Net Expenditure
Coastal Management
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Gross Direct Costs
Gross Direct Costs - Reffcus
Capital Charges
Gross Direct Income
Gross Direct Income - Reffcus
Support Service Charges
Support Service Recharges
Net Expenditure
65
(95,337) (£71,402) Two officers transferred to
Environmental Health.(£18,679) non recurring
expenditure re Investment Strategy and
temporary Post. £2,133 Employee Inflation.
2,127,472 This reflects expenditure within the Capital
Programme.
154,345 This movement reflects the final Balance due
from Victory Housing Association in relation to
the Vat sharing agreement.
60,590 Reallocation of support service costs following
the housing service restructure, Increased
recharge from Legal services.
53,662 Net Reduction to recharge to services.
2,300,732
178,645 £30,460 - Staff transferred from another area.
(£13,847) - Savings bid ECD2, staff
restructuring. £9,416 - Transfer of budget
relating to Your Voice from Performance
Management. £13,454 - Grants transferred from
Performance Management £361,164 - Big
Society grants
17,859 Reduced recharges resulting from lower service
costs
0
805,231
3,179,563
(173,363)
117,104
0
(12,230)
(67,006)
3,849,299
Appendix F
Assets & Leisure Service Area
Service
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handyman
Parklands
Administration Building Svs
Property Services
Parks & Open Spaces
Foreshore
Community Centres
Sports Centres
Leisure Complexes
Other Sports
Recreation Grounds
Pier Pavilion
Foreshore (Community)
Woodlands Management
Cromer Pier
Public Conveniences
Investment Properties
Leisure
CCTV
Total Net Costs
Gross Direct Costs - Reffcus
Capital Charges
Support Service Charges
Support Service Recharges
Net Cost of Service
2012/13
Actual
£
(1,468,885)
16,863
(80,844)
(50)
(35,614)
(11,586)
382,473
352,617
391,088
87,895
3,351
234,206
398,832
54,954
7,788
106,229
372,200
107,749
10,641
424,950
(115,825)
140,396
164,768
2013/14
Base Budget
2013/14
Updated
Budget
Variance
2014/15 Base to
2013/14 Base
£
(85,728)
(3,960)
(6,450)
0
(25,928)
(2,467)
(87,295)
94,361
(12,803)
43,290
1
7,854
(87,771)
(13,627)
(2,221)
(3,000)
657
(5,247)
0
49,229
289,480
1,918
(79,526)
£
(1,413,503)
18,491
(95,822)
(50)
(34,303)
(27,790)
423,827
297,184
372,274
129,521
6,135
177,268
408,223
49,618
9,803
93,377
369,056
85,699
22,829
414,593
(152,918)
141,514
180,302
£
(1,411,103)
18,491
(95,572)
(50)
(60,190)
(27,790)
425,637
297,184
368,224
156,921
6,135
179,768
405,923
66,118
9,803
93,377
360,756
92,893
22,829
440,580
(150,043)
150,514
180,302
2014/15
Base Budget
£
(1,499,231)
14,531
(102,272)
(50)
(60,231)
(30,257)
336,532
391,545
359,471
172,811
6,136
185,122
320,452
35,991
7,582
90,377
369,713
80,452
22,829
463,822
136,562
143,432
100,776
1,544,196
1,475,328
1,530,707
1,546,095
70,767
1,088,995
1,286,529
(1,277,418)
126,723
690,028
1,270,470
(1,236,858)
126,723
690,028
1,270,470
(1,236,858)
0
741,696
1,360,700
(1,272,347)
(126,723)
51,668
90,230
(35,489)
2,642,302
2,325,691
2,381,070
2,376,144
50,453
66
Appendix F
2013/14
Base
Budget
£
ASSETS AND LEISURE SERVICE AREA
Car Parking
Gross Direct Costs
699,688
2013/14
Updated
Budget
£
702,088
689,358
(10,330) £4,373 - Additional Parkeon contract maintenance
and monthly data transfer costs, based on additional
machines. £4,990 - Additional rental expenditure
based on revised income figures. £2,400 Additional Kier Grounds Maintenance contract costs.
(£22,500) - Reduction of CCTV contributions from
savings bid AL1.
Capital Charges
Gross Direct Income
28,794
(2,113,191)
28,794
(2,113,191)
29,495
(2,188,589)
701
(75,398) (£73,338) - Additional pay and display car park fees
of which £40,000 was identified as savings from a
previous year. (£14,080) - Additional excess charge
notice income - £10,000 identified as savings from a
previous year. (£3,500) - Additional season ticket
income. £13,264 - Reduction in budget for rental
concessions on car parks. £2,971 - Reduction in
income from recycling bins on car parks.
123,800
123,800
160,050
(1,260,909)
(1,258,509)
(1,309,686)
95,776
95,776
87,531
(8,245) (£2,429) - Reduction in rental costs due to car parks.
(£2,522) - NNDR budget adjustment. £3,000 Additional advertising budget to be offset by
additional income. (£7,275) - Removal of waste
disposal budget following contract amendment
requiring stallholders to dispose of their own rubbish.
(77,285)
(77,285)
(73,000)
Support Service Charges
46,130
46,130
55,600
4,285 £7,285 - Reduction in income following fee
reductions for stallholders disposal of their own
rubbish. (£3,000) - Additional fee income anticipated
following advertising campaign.
9,470 £8,120 - Increased recharge from Property Services
Net Expenditure
64,621
64,621
70,131
5,510
Industrial Estates
Gross Direct Costs
18,038
18,288
14,154
(113,860)
(113,860)
(116,426)
Capital Charges
Support Service Charges
Net Expenditure
44,789
50,950
(83)
44,789
50,950
167
29,903
53,490
(18,879)
Surveyors Allotments
Gross Direct Income
Support Service Charges
Net Expenditure
(50)
2,890
2,840
(50)
2,890
2,840
(50)
3,150
3,100
82,935
57,048
57,007
(117,238)
44,360
10,057
(117,238)
44,360
(15,830)
(117,238)
43,000
(17,231)
26,460
(54,250)
26,460
(54,250)
26,460
(56,717)
Capital Charges
Support Service Charges
585
22,650
585
22,650
585
28,590
Net Expenditure
(4,555)
(4,555)
(1,082)
Support Service Charges
Net Expenditure
Markets
Gross Direct Costs
Gross Direct Income
Gross Direct Income
Handyman
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
Parklands
Gross Direct Costs
Gross Direct Income
2014/15
Base
Budget
£
Variance
Explanation for Major Variances
£
36,250 £38,540 - Increased recharge from Property
Services
(48,777)
(3,884) (£4,200) - Reduction in CCTV contributions from
savings bid AL1
(2,566) (£2,566) - Additional service charge and rental
income following lease reviews.
(14,886) (£14,886) - Reduction in depreciation charges.
2,540 No major variances
(18,796)
0 No major variances
260 No major variances
260
(25,928) (£25,928) - Transfer of salary and associated costs
to Public Conveniences to directly reflect where
expenditure is being incurred.
0
(1,360) No major variances
(27,288)
0
(2,467) (£2,467) - Additional rental income following revision
of Caravan Site fees for 2014/15.
0
5,940 £5,410 - Increased recharge from Property Services
3,473
67
Appendix F
2013/14
Base
Budget
£
ASSETS AND LEISURE SERVICE AREA
Administration Building Svs
Gross Direct Costs
508,453
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
Explanation for Major Variances
£
(25,977) (£31,500) - Removal of one off additional costs for
disposal of Annexe building.
6,736 £7,082 - Additional depreciation for Cromer Offices
following reception works.
(61,318) (£61,318) - This variance covers additional service
charge income for Fakenham Connect, other
recoverable income for North Walsham office
accommodation, and additional rental and service
charge income relating to other external
contributions.
519,853
482,476
76,240
76,240
82,976
Gross Direct Income
(84,626)
(94,216)
(145,944)
Support Service Charges
104,980
104,980
137,760
(526,910)
(526,910)
(459,360)
78,137
79,947
97,908
340,564
340,564
441,035
100,471 £86,223 - Insurance costs for all council properties
transferred from Insurance Management Unit.
£1,662 - Transfer of overtime budgets from Car
Parks and Prom Management. £6,070 - Increments
and associated salary costs. £4,764 - Pay and
grading review implications. £2,696 - Additional
pensions deficit funding.
(43,380)
15,000
167,690
(479,874)
(43,380)
15,000
167,690
(479,874)
(49,490)
15,000
159,520
(566,065)
0
0
0
(6,110) Increased recharges for Capital Projects
0
(8,170) No major variances
(86,191) £85,971 - Increased income to Property Services to
reflect increased costs fof service provision, and
recharge of insurances.
0
Parks & Open Spaces
Gross Direct Costs
408,231
404,181
383,258
Capital Charges
Gross Direct Income
30,612
(35,957)
30,612
(35,957)
42,909
(23,787)
Support Service Charges
Net Expenditure
78,460
481,346
78,460
477,296
87,280
489,660
Foreshore
Gross Direct Costs
129,521
156,921
172,811
8,193
46,020
8,193
46,020
12,635
55,900
183,734
211,134
241,346
6,135
13
4,890
6,135
13
4,890
6,136
19
8,780
11,038
11,038
14,935
Capital Charges
Support Service Recharges
Net Expenditure
Property Services
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
Support Service Recharges
Net Expenditure
Capital Charges
Support Service Charges
Net Expenditure
Community Centres
Gross Direct Costs
Capital Charges
Support Service Charges
Net Expenditure
32,780 £22,410 - Increased recharge from Property
Services to more accurately reflect time spent in this
area. £9,310 - Increased recharge from Computer
Applications Team
67,550 £67,609 - Reduced recharges to service areas,
reflecting reduced expenditure on Admin Buildings.
19,771
(24,973) (£18,000) - Savings bids AL2, EH1 and EH2 - The
budget assumes total annual savings of £209,000
from three service contracts.
12,297 Depreciation relating to new play areas
12,170 No rechargeable works to Parish and Town Councils
as a result of changes to the Grounds Maintenance
Contract
8,820 Increased Officer time spent on service.
8,314
43,290 £42,400 - Repair costs relating to December 2013
storm surge, funded from general reserves
4,442 £4,442 - Additional depreciation charges
9,880 £10,700 - Increased recharge from Property
Services
57,612
1 No Major Variances.
6
3,890 £4,400 - Increased recharge from Property Services
3,897
68
Appendix F
2013/14
Base
Budget
£
ASSETS AND LEISURE SERVICE AREA
Sports Centres
Gross Direct Costs
317,390
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
Explanation for Major Variances
£
7,854 £5,239 - Effect of automatically enrolling staff in the
pension scheme.
0
107
(930) No Major Variances.
7,031
319,890
325,244
(140,122)
11,188
105,860
294,316
(140,122)
11,188
105,860
296,816
(140,122)
11,295
104,930
301,347
Leisure Complexes
Gross Direct Costs
408,223
405,923
320,452
(87,771) £12,027 - Inflation on Management Contract.
(£100,000) - Savings bids AL2, EH1 and EH2 - The
budget assumes total annual savings of £209,000
from three service contract
Capital Charges
Support Service Charges
Net Expenditure
313,485
25,110
746,818
313,485
25,110
744,518
315,280
24,560
660,292
1,795
(550) No Major Variances.
(86,526)
49,618
58,100
78,118
(12,000)
58,100
35,991
0
53,980
107,718
124,218
89,971
Recreation Grounds
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Net Expenditure
10,803
285
(1,000)
2,650
12,738
10,803
285
(1,000)
2,650
12,738
8,582
285
(1,000)
3,150
11,017
(2,221) No Major Variances.
0
0
500 No Major Variances.
(1,721)
Pier Pavilion
Gross Direct Costs
93,377
93,377
90,377
Support Service Charges
Net Expenditure
12,970
106,347
12,970
106,347
13,040
103,417
(3,000) (£3,000) - Contribution to Folk on the Pier, resulting
from a prior year savings bid.
70 No Major Variances
(2,930)
Foreshore (Community)
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
373,806
(4,750)
30,610
399,666
365,506
(4,750)
30,610
391,366
369,713
0
36,840
406,553
(4,093) No Major Variances
4,750
6,230 Increased Officer time spent on service.
6,887
Woodlands Management
Gross Direct Costs
Capital Charges
Gross Direct Income
107,299
6,003
(21,600)
114,493
6,003
(21,600)
106,002
6,003
(25,550)
Support Service Charges
Net Expenditure
77,340
169,042
77,340
176,236
81,790
168,245
(1,297) No Major Variances
0
(3,950) (£4,950) - Additional grant from the Forestry
Commission for Holt Country Park.
4,450 No Major Variances
(797)
Gross Direct Income
Capital Charges
Support Service Charges
Net Expenditure
Other Sports
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
(13,627) (£12,678) - Costs relating to the Mobile Gym.
0
(4,120) Lower recharge from Environmental Health following
a review of time allocations.
(17,747)
69
Appendix F
2013/14
Base
Budget
£
ASSETS AND LEISURE SERVICE AREA
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
Explanation for Major Variances
£
Cromer Pier
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Net Expenditure
39,317
5,232
(16,488)
7,810
35,871
39,317
5,232
(16,488)
7,810
35,871
39,317
5,232
(16,488)
11,050
39,111
Public Conveniences
Gross Direct Costs
416,776
442,763
466,005
49,229 £20,000 - Additional cost for Water and Sewerage
charges following increase in consumption across all
public conveniences. £25,928 - Transfer of salary
and associated costs from Handyman Service to
reflect where expenditure is actually incurred.
Capital Charges
79,481
79,481
95,187
15,706 £15,706 - Additional depreciation charges as a result
of capital expenditure on public conveniences.
Gross Direct Income
Support Service Charges
(2,183)
43,280
(2,183)
43,280
(2,183)
49,970
537,354
563,341
608,979
0
6,690 £10,740 - Increased recharge from Property
Services.
71,625
Investment Properties
Gross Direct Costs
89,888
92,763
352,042
Capital Charges
55,538
55,538
83,224
Net Expenditure
0 No Major Variances
0
0
3,240 No Major Variances
3,240
262,154 £9,224 - Additional NNDR and Insurance costs
following part year vacancy of Depot premises. It is
assumed that the property will be relet part way
through the financial year. £4,036 - Transfer of
Rocket House premises insurance costs to correct
cost centre. £1,231 - Additional NNDR costs for
Chalets. £247,100 - Repair costs relating to
2013 storm
surge, funded
from following
general
27,686 December
£27,686 - Additional
depreciation
charges
capital expenditure on Red Lion Toilets in previous
years.
Gross Direct Costs - Reffcus
126,723
126,723
0
(242,806)
(242,806)
(215,480)
82,900
112,243
82,900
115,118
84,780
304,566
142,214
(700)
66,060
(207,574)
0
151,214
(700)
66,060
(207,574)
9,000
144,132
(700)
103,490
(246,922)
0
CCTV
Gross Direct Costs
199,096
199,096
110,776
Capital Charges
Gross Direct Income
14,590
(18,794)
14,590
(18,794)
11,668
(10,000)
Support Service Charges
Support Service Recharges
64,960
(22,500)
64,960
(22,500)
0
0
Net Expenditure
237,352
237,352
112,444
4,563,608
126,723
690,028
(3,088,280)
1,270,470
(1,236,858)
2,325,691
4,640,577
126,723
690,028
(3,109,870)
1,270,470
(1,236,858)
2,381,070
4,728,859
0
741,696
(3,182,764)
1,360,700
(1,272,347)
2,376,144
Gross Direct Income
Support Service Charges
Net Expenditure
Leisure
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Gross Direct Costs
Gross Direct Costs - Reffcus
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
(126,723) (£126,723) - Reduction in Reffcus charges for Wells
Sackhouse with actual capital expenditure incurred
in 2013/14.
27,326 £19,776 - Reduction in Depot rental income following
vacation of premises and anticipated lease at lower
rate. £8,700- Net loss of rental income from Beach
Huts and Chalets following review of fees for
2014/15 and loss of chalets and huts following storm
surge in December 2013.
1,880 No major variances
192,323
1,918 No Major Variances
0
37,430 Increased Officer time spent on service.
(39,348) Increased recharges reflecting higher service costs.
0
(88,320) (£88,320) - Savings bid AL1, review of CCTV
service.
(2,922)
8,794 £8,794 - Savings bid AL1, review of CCTV service.
(64,960)
22,500 Internal recharge to the Car Parking service for
CCTV coverage which is no longer chargeable as a
result of savings bid AL1. This is offset by a saving
in the Car Parking Service.
(124,908)
165,251
(126,723)
51,668
(94,484)
90,230
(35,489)
50,453
70
Appendix F
Corporate Service Area
Service
Corporate Leadership Team
Legal Services
Total Net Costs
Support Service Charges
Support Service Recharges
Net Cost of Service
2013/14
Base Budget
2013/14
Updated
Budget
£
507,996
286,970
Variance
2014/15 Base to
2014/15
Base Budget 2013/14 Base
£
£
£
507,996
495,870
(12,126)
320,720
297,161
10,191
886,153
794,966
828,716
793,031
(1,935)
180,185
(1,066,409)
177,730
(972,696)
177,730
(972,696)
194,250
(987,281)
16,520
(14,585)
(71)
0
33,750
0
0
2012/13
Actual
£
620,543
265,610
71
Appendix F
2013/14 Base
Budget
CORPORATE SERVICE AREA
Corporate Leadership Team
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
Legal Services
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
£
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
Explanation for Major Variances
£
(12,126) £7,931 - Salaries and oncosts £5,000 - Costs for
Monitoring Officer, funded by savings in Members
Services; (£25,000) - Monitoring Officer costs
transferred to Corporate and Democratic Core
within the Finance Service Area.
507,996
507,996
495,870
104,770
(612,766)
104,770
(612,766)
110,140
(606,010)
0
0
0
347,020
380,770
357,211
(60,050)
72,960
(359,930)
(60,050)
72,960
(359,930)
(60,050)
84,110
(381,271)
0
33,750
0
0
855,016
(60,050)
177,730
(972,696)
0
888,766
(60,050)
177,730
(972,696)
33,750
853,081
(60,050)
194,250
(987,281)
0
(1,935)
0
16,520
(14,585)
0
72
5,370 No Major variances
6,756 Reduced recharge reflecting lower service costs.
0
10,191 £4,430 - Inflation on salaries and oncosts. £4,987 Fixed term staff costs funded from an earmarked
reserve.
0
11,150 No Major variances
(21,341) Increased recharge reflecting higher service costs
Appendix F
Customer Services Service Area
Service
It - Support Services
Tic'S
Homelessness
Housing - Service Mgmt
Transport
Publicity
Graphical Info System
Media & Communications
Customer Services - Corporate
Total Net Costs
Capital Charges
Support Service Charges
Support Service Recharges
Net Cost of Service
2012/13
Actual
£
879,670
186,929
(115,730)
238,003
(2,511)
13,448
23,358
346,618
536,147
2013/14
Base Budget
2013/14
Updated
Budget
Variance
2014/15
2014/15 Base to
Base Budget 2013/14 Base
£
£
1,006,219
146,032
163,878
(2,793)
8,802
(2,000)
239,419
4,077
(1,500)
0
0
0
26,832
0
279,775
(35,559)
522,261
(1,835)
£
860,187
166,671
10,802
235,342
(1,500)
0
26,832
315,334
524,096
£
873,087
166,671
8,802
235,342
(1,500)
0
26,832
315,334
532,593
2,105,932
2,137,764
2,157,161
2,245,686
107,922
143,631
910,622
(2,680,876)
141,986
1,105,890
(2,688,043)
141,986
1,105,890
(2,688,043)
141,420
1,093,020
(2,759,111)
(566)
(12,870)
(71,068)
479,309
697,597
716,994
721,015
23,418
73
Appendix F
CUSTOMER SERVICES SERVICE AREA
2013/14 Base
Budget
£
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
Explanation for Major Variances
£
It - Support Services
Gross Direct Costs
862,097
874,997
1,006,629
Capital Charges
Gross Direct Income
Support Service Charges
77,997
(1,910)
117,240
77,997
(1,910)
117,240
76,875
(410)
87,950
(1,055,425)
(1,055,425)
(1,171,044)
(1)
12,899
0
Tic'S
Gross Direct Costs
199,382
199,382
196,589
(2,793) (£6,286) - One-off termination of
maintenance & support contract for
Destination Management System and 24/7
kiosk less make good costs. (£3,000) Reduced payment to Wells Maltings Trust,
resulting from a prior year savings bid.
£6,892 - Effect of automatically enrolling
staff in the pension scheme.
Capital Charges
Gross Direct Income
Support Service Charges
8,105
(32,711)
62,520
8,105
(32,711)
62,520
8,105
(32,711)
133,050
0
0
70,530 £59,210 - Increased recharges from various
service areas that recharge on a per head
basis. This includes: Personnel, Computer,
Insurances and Central Costs.
Net Expenditure
237,296
237,296
305,033
67,737
Homelessness
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Net Expenditure
47,802
23,130
(37,000)
356,070
390,002
45,802
23,130
(37,000)
356,070
388,002
55,802
24,130
(47,000)
342,150
375,082
Customer Services Housing
Gross Direct Costs
Support Service Charges
235,342
133,780
235,342
133,780
239,419
109,430
(369,122)
(369,122)
(348,849)
0
0
0
Transport
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
31,500
(33,000)
40,720
39,220
31,500
(33,000)
40,720
39,220
31,500
(33,000)
41,790
40,290
Publicity
Support Service Charges
31,080
31,080
610
Net Expenditure
31,080
31,080
610
Support Service Recharges
Net Expenditure
Support Service Recharges
Net Expenditure
144,532 £11,452 - Inflation on salaries and oncosts.
£115,000 - Costs relating to Business
Transformation, funded from an earmarked
reserve. £16,682 - Effect of automatically
enrolling staff in the pension scheme.
(1,122)
1,500
(29,290) (£7,230) - Reduced recharge from
Insurances. (£10,520) - reduced recharge
from Internal Audit.
(115,619) Higher recharges reflecting increased
service costs.
1
0
8,000 (37,802)
1,000
(10,000) Recoverable income.
(13,920)
(14,920)
4,077 Employee Inflation.
(24,350) Made up of a number of smaller
movements.
20,273 Net reduction in costs to be recovered from
final services.
0
0 No Major Variances.
0
1,070 No Major Variances.
1,070
(30,470) (£30,390) - Reduced recharge from Media
Unit.
(30,470)
74
Appendix F
2013/14 Base
Budget
Graphical Info System
Gross Direct Costs
Capital Charges
Support Service Charges
£
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
£
26,832
3,780
8,950
26,832
3,780
8,950
26,832
3,780
190
(39,562)
(39,562)
(30,802)
0
0
0
Media & Communications
Gross Direct Costs
322,834
322,834
287,275
Gross Direct Income
Support Service Charges
Support Service Recharges
(7,500)
106,530
(421,864)
(7,500)
106,530
(421,864)
(7,500)
100,130
(379,905)
0
0
0
534,096
542,593
545,511
(10,000)
28,974
249,000
(802,070)
(10,000)
28,974
249,000
(802,070)
(23,250)
28,530
277,720
(828,511)
0
8,497
0
2,259,885
141,986
(122,121)
1,105,890
(2,688,043)
697,597
2,279,282
141,986
(122,121)
1,105,890
(2,688,043)
716,994
2,389,557
141,420
(143,871)
1,093,020
(2,759,111)
721,015
Support Service Recharges
Net Expenditure
Net Expenditure
Customer Services - Corporate
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
Support Service Recharges
Net Expenditure
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Explanation for Major Variances
0 No Major Variances.
0
(8,760) Reduced recharge from Computer.
8,760 Reduced recharges resulting from lower
service costs.
0
(35,559) £6,739 - Inflation on salaries and oncosts.
(£43,903) - Renegotiation of Reprographics
equipment rental. £3,109 - Effect of
automatically enrolling staff in the pension
scheme.
0
(6,400) No Major Variances
41,959 Reduced recharges resulting from lower
service costs.
0
11,415 £4,515 - Inflation on salaries and oncosts.
(£8,250) - Salary savings from front
reception efficiencies resulting from a prior
year savings bid. £16,976 - Effect of
automatically enrolling staff in the pension
scheme.
(13,250) (£13,250) - Service charges.
(444)
28,720 Increased Officer time spent on service.
(26,441) Increased recharges resulting from higher
service costs.
0
129,672
(566)
(21,750)
(12,870)
(71,068)
23,418
75
Appendix F
Development Management Service Area
Service
Development Management
Planning Policy
Conservation & Design
Landscape
Building Control & Access
Planning Mgt & Comm Support
Local Land Charges
Total Net Costs
Capital Charges
Support Service Charges
Support Service Recharges
Net Cost of Service
2012/13
Actual
£
24,794
(391,621)
77,341
79,504
(25,973)
349,937
18,222
2013/14
Base Budget
2013/14
Updated
Budget
Variance
2014/15 Base to
2013/14 Base
£
(10,723)
5,702
5,776
12,664
4,837
26,753
3,104
£
89,122
162,744
67,636
57,954
(77,091)
315,422
5,389
£
136,195
146,497
73,636
78,954
(77,091)
315,422
5,389
2014/15
Base Budget
£
78,399
168,446
73,412
70,618
(72,254)
342,175
8,493
132,204
621,176
679,002
669,289
48,113
41,017
1,065,752
(580,295)
47,437
1,049,310
(432,152)
47,437
1,049,310
(432,152)
42,517
1,094,330
(459,335)
(4,920)
45,020
(27,183)
658,678
1,285,771
1,343,597
1,346,801
61,030
76
Appendix F
DEVELOPMENT MANAGEMENT SERVICE AREA
2013/14 Base
Budget
Development Management
Gross Direct Costs
£
2013/14
Updated
Budget
£
Variance
2014/15
Base
Budget
£
Explanation for Major Variances
£
687,742
769,815
727,019
47,437
(598,620)
47,437
(633,620)
42,517
(648,620)
Support Service Charges
Net Expenditure
464,130
600,689
464,130
647,762
504,720
625,636
Planning Policy
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
254,917
(92,173)
96,250
258,994
238,670
(92,173)
96,250
242,747
260,619
(92,173)
93,540
261,986
5,702 Employee inflation.
0 No Major Variances.
(2,710) No Major Variances.
2,992
Conservation & Design
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
67,686
(50)
57,050
124,686
73,686
(50)
57,050
130,686
73,462
(50)
65,620
139,032
5,776 Employee Inflation.
0
8,570 No Major Variances.
14,346
58,954
79,954
71,618
Gross Direct Income
Support Service Charges
Net Expenditure
(1,000)
78,510
136,464
(1,000)
78,510
157,464
(1,000)
80,830
151,448
Building Control & Access
Gross Direct Costs
277,703
277,703
282,540
(354,794)
150,200
73,109
(354,794)
150,200
73,109
(354,794)
150,830
78,576
315,422
315,422
342,175
116,730
(432,152)
116,730
(432,152)
117,160
(459,335)
0
0
0
211,389
(206,000)
211,389
(206,000)
216,493
(208,000)
86,440
91,829
86,440
91,829
81,630
90,123
1,873,813
47,437
(1,252,637)
1,049,310
(432,152)
1,285,771
1,966,639
47,437
(1,287,637)
1,049,310
(432,152)
1,343,597
1,973,926
42,517
(1,304,637)
1,094,330
(459,335)
1,346,801
Capital Charges
Gross Direct Income
Landscape
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
Planning Mgt & Comm Support
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
Property Information
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
77
39,277 Temporary posts funded from the Planning
reserve Including Enforcement officer.
(4,920)
(50,000) Forecast additional income from large
applications such as Solar farms and large
development sites.
40,590 (423,540)
24,947
12,664 £12,000 One-off Costs funded from Reserves re
Egmere LDO (Local Development Order).
0
2,320 No Major Variances.
14,984
4,837 Employee inflation & IAS 19 superannuation
adjustments.
0
630 No Major Variances.
5,467
26,753 Employee costs made up of inflation, IAS 19
superannuation adjustment and the Head of
Planning post being appointed on a Full Time
basis.
430
(27,183) Increased direct costs to be recharged to
services supported.
0
5,104 Employee inflation
(2,000) Increased income from street Naming and
Numbering.
(4,810) No Major Variances.
(1,706)
100,113
(4,920)
(52,000)
45,020
(27,183)
61,030
Appendix F
Environmental Health Service Area
Service
Commercial Services
Rural Sewerage Schemes
Travellers
Licensing
Street Naming
Pest Control
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection and Disposal
Cleansing
Environmental Strategy
Community Safety
Civil Contingencies
2012/13
Actual
£
367,839
346,505
(4,561)
(84,155)
8,939
25,587
443,866
57,957
119,495
1,081,652
694,023
88,266
25,548
74,808
2013/14
Base Budget
2013/14
Updated
Budget
£
340,786
352,923
0
(59,658)
26,926
11,205
432,496
37,788
136,848
986,110
655,855
53,739
20,000
87,708
£
340,786
352,923
0
(59,658)
26,926
24,047
477,518
37,788
142,048
979,053
682,912
53,739
20,000
87,708
Variance
2014/15 Base to
2014/15
Base Budget 2013/14 Base
£
£
328,428
(12,358)
363,510
10,587
0
0
(54,716)
4,942
26,892
(34)
10,390
(815)
510,378
77,882
37,294
(494)
142,815
5,967
835,783
(150,327)
664,418
8,563
12,150
(41,589)
20,000
0
91,490
3,782
Total Net Costs
3,245,769
3,082,726
3,165,790
2,988,832
(93,894)
Gross Direct Costs - Reffcus
Gross Direct Income - Reffcus
Capital Charges
Support Service Charges
Support Service Recharges
83,761
(40,761)
248,328
863,731
(308,159)
32,897
(32,897)
595,016
831,720
(197,875)
32,897
(32,897)
595,016
831,720
(197,875)
40,000
(40,000)
559,217
812,370
(213,771)
7,103
(7,103)
(35,799)
(19,350)
(15,896)
Net Cost of Service
4,092,669
4,311,587
4,394,651
4,146,648
(164,939)
78
Appendix F
2013/14 Base
Budget
£
ENVIRONMENTAL HEALTH SERVICE AREA
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
Explanation for Major Variances
£
Commercial Services
Gross Direct Costs
Gross Direct Income
Support Service Charges
365,720
(24,934)
123,750
365,720
(24,934)
123,750
352,862
(24,434)
142,260
Net Expenditure
464,536
464,536
470,688
Rural Sewerage Scheme
Gross Direct Costs
352,923
352,923
363,510
Support Service Charges
Net Expenditure
380
353,303
380
353,303
320
363,830
Travellers
Gross Direct Costs
Gross Direct Income
Gross Direct Costs - Reffcus
Gross Direct Income - Reffcus
Capital Charges
Support Service Charges
4,000
(4,000)
32,897
(32,897)
97,800
3,320
4,000
(4,000)
32,897
(32,897)
97,800
3,320
4,000
(4,000)
40,000
(40,000)
97,800
1,300
Net Expenditure
101,120
101,120
99,100
110,525
(170,183)
127,130
110,525
(170,183)
127,130
115,467
(170,183)
107,360
Net Expenditure
67,472
67,472
52,644
Street Naming
Gross Direct Costs
Capital Charges
Support Service Charges
26,926
10,148
2,310
26,926
10,148
2,310
26,892
7,565
1,350
(34) No major variances
(2,583) No major variances
(960) Lower recharge from Accountancy to
reflect a more accurate allocation of time.
Net Expenditure
39,384
39,384
35,807
(3,577)
Pest Control
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
15,150
(3,945)
6,880
18,085
27,992
(3,945)
6,880
30,927
14,335
(3,945)
5,200
15,590
(815) No major variances
0
(1,680) No major variances
(2,495)
Licensing
Gross Direct Costs
Gross Direct Income
Support Service Charges
79
(12,858) Reduced staff costs due to restructure.
500 First Aid courses no longer provided.
18,510 Increased recharges from various service
areas that recharge on a per head basis.
This includes: Personnel, Computer,
Insurances and Central Costs.
6,152
10,587 Inflation on Internal Drainage Board (IDB)
Rates and Levies.
(60) No major variances
10,527
0
0
7,103
(7,103)
0
(2,020) Lower recharge from Environmental Health
reflecting a more accurate allocation of
time.
(2,020)
4,942 Employee Inflation
0
(19,770) (£16,300) Lower recharge from Legal
Services reflecting a more accurate
allocation of time.
(14,828)
Appendix F
2013/14 Base
Budget
£
ENVIRONMENTAL HEALTH SERVICE AREA
Environmental Protection
Gross Direct Costs
451,426
2013/14
Updated
Budget
£
Variance
2014/15
Base
Budget
£
Explanation for Major Variances
£
496,448
521,132
69,706 (£27,595) Transfer of budget to Cleansing
for litter picker. (£44,000) Staff saving
identified in prior year savings bid. £71,402
Two officers transferred to Environmental
Health from Housing Strategy. £20,825
Employee inflation. (£4,000) Air Quality
Management budget no longer required.
Capital Charges
Gross Direct Income
3,600
(18,930)
3,600
(18,930)
3,600
(10,754)
0
8,176 Reduction in Local Authority Pollution
Prevention Control (LAPPC) income due to
changes in legislation
Support Service Charges
187,210
187,210
158,060
(29,150) Lower recharges from various service
areas that recharge on a per head basis.
This includes: Personnel, Legal, Computer,
Insurances and Central Costs.
Net Expenditure
623,306
668,328
672,038
38,288
(500)
19,230
57,018
38,288
(500)
19,230
57,018
38,294
(1,000)
21,170
58,464
Env Health - Service Mgmt
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
137,498
7,337
(650)
53,690
142,698
7,337
(650)
53,690
143,465
7,416
(650)
63,540
Support Service Recharges
(197,875)
(197,875)
(213,771)
0
5,200
0
3,917,267
3,910,210
3,860,864
468,415
468,415
435,119
Dog Control
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
Net Expenditure
Waste Collection and Disposal
Gross Direct Costs
Capital Charges
80
48,732
6 No major variances
(500) No major variances
1,940 No major variances
1,446
5,967 Employee Inflation
79
0
9,850 Recharges from various service areas that
recharge on a per head basis. This
includes: Personnel, Legal, Computer, IEG,
Insurances and Central Costs.
(15,896) Increased recharges reflecting higher
service costs
0
(56,403) (£16,464) Staff inflation and re-allocation of
duties. (£45,000) Cost for Tipping Away not
required to reflect the closure of Edgefield
landfill site in February 2014. This is offset
by loss of income (see below). £22,831
Inflation for trade waste disposal. £17,791
Kier contract - additional composting
treatment costs. (£28,000) EH3 savings
bid. (£6,500) Reduction in budget for
recycling initiatives. £7,285 Norfolk
Environmental Waste Services (NEWS)
contract inflation. (£12,874) Reduction in
NEWS contract costs as a result of lower
contamination rates.
(33,296) Depreciation
Appendix F
2013/14 Base
Budget
£
ENVIRONMENTAL HEALTH SERVICE AREA
Gross Direct Income
(2,931,157)
Support Service Charges
Net Expenditure
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
(2,931,157)
(3,025,081)
216,660
216,660
233,650
1,671,185
1,664,128
1,504,552
81
Variance
Explanation for Major Variances
£
(93,924) £45,000 Budget not required for Tipping
Away. Edgefield landfill site closing in
February 2014. (£44,917) Garden bin fee
income. (£62,699) Additional recycling
credit income (£12k relates to EH3 savings
bid). £8,692 Reduction in profit share from
NEWS. (£40,000) Savings bids AL2, EH1
and EH2 - The budget assumes total
annual savings of £209,000 from three
service contracts.
16,990 £16,360 Higher recharge from
Environmental Health reflecting a more
accurate allocation of time. (£10,240)
Lower recharge from Accountancy to
reflect a more accurate allocation of time.
£7,620 Higher recharge from Sundry
Debtors reflecting a more accurate
allocation of duties.
(166,633)
Appendix F
2013/14 Base
Budget
£
ENVIRONMENTAL HEALTH SERVICE AREA
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
Explanation for Major Variances
£
Cleansing
Gross Direct Costs
696,462
723,519
706,422
Gross Direct Income
Support Service Charges
(40,607)
21,590
(40,607)
21,590
(42,004)
17,600
Net Expenditure
677,445
704,502
682,018
Environmental Strategy
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
64,739
(11,000)
7,716
23,300
64,739
(11,000)
7,716
23,300
22,150
(10,000)
7,717
9,800
Net Expenditure
84,755
84,755
29,667
Community Safety
Gross Direct Costs
Support Service Charges
20,000
4,650
20,000
4,650
20,000
2,570
0
(2,080) Lower recharges from Computers and
Internal Audit
Net Expenditure
24,650
24,650
22,570
(2,080)
Civil Contingencies
Gross Direct Costs
Support Service Charges
87,708
41,620
87,708
41,620
91,490
48,190
129,328
129,328
139,680
10,352
6,288,632
32,897
595,016
(3,205,906)
(32,897)
831,720
(197,875)
4,311,587
6,371,696
32,897
595,016
(3,205,906)
(32,897)
831,720
(197,875)
4,394,651
6,280,883
40,000
559,217
(3,292,051)
(40,000)
812,370
(213,771)
4,146,648
34,840
7,103
(35,800)
(87,145)
(7,103)
(5,850)
(15,896)
(109,851)
Net Expenditure
Gross Direct Costs
Gross Direct Costs - Reffcus
Capital Charges
Gross Direct Income
Gross Direct Income - Reffcus
Support Service Charges
Support Service Recharges
Net Expenditure
82
9,960 £33,431 Staff inflation and re-allocation of
duties. (£51,000) Savings bids AL2, EH1
and EH2 - The budget assumes total
annual savings of £209,000 from three
service contracts. £27,595 Transfer of
budget from Environmental Protection for
Litter Picker. £20,572 Kier contract
inflation. (£13,709) Overall reduction to the
Kier Cleansing contract from the Kier
Pricing Schedule base price.
(1,397) Inflation on dog and litter bin collections
(3,990) Recharges reflecting a more accurate
allocation of time
4,573
(42,589) Savings Bid ECD1 Staff restructure.
1,000
1
(13,500) Lower recharges from various service
areas that recharge on a per head basis.
(55,088) This includes: Personnel, Computer,
3,782 Employee inflation
6,570 £2,890 Higher recharge from
Environmental Health reflecting a more
accurate allocation of time. Recharges
from various service areas that recharge
on a per head basis. This includes:
Personnel, Computer and Central Costs.
Appendix F
Finance Service Area
2013/14
Base Budget
Service
Local Taxation
Benefits
Discretionary Rate Relief
Non Distributed Costs
Benefits & Revenues Mgmt
Corporate Finance
Internal Audit
Central Costs
Corporate & Democratic Core
Total Net Costs
IAS 19 Adjustment
Capital Charges
Support Service Charges
Support Service Recharges
Net Cost of Service
2013/14
Updated
Budget
Variance
2014/15
2014/15 Base to
Base Budget 2013/14 Base
£
£
133,336
50,602
409,493
131,692
201,831
(57,871)
265,787
(790)
73,811
481
490,268
11,851
103,613
(6,000)
43,329
715
378,757
5,258
2012/13 Actual
£
161,876
550,364
46,832
282,241
93,395
546,942
104,433
62,430
304,753
£
82,734
277,801
259,702
266,577
73,330
478,417
109,613
42,614
373,499
£
106,685
312,801
280,870
266,577
73,330
517,966
109,613
42,614
389,741
2,153,266
1,964,287
2,100,197
2,100,225
135,938
(187,241)
34,181
2,803,727
(1,528,719)
(266,577)
111,883
2,496,750
(1,331,498)
(266,577)
111,883
2,496,750
(1,331,498)
(265,787)
114,468
2,515,420
(1,380,400)
790
2,585
18,670
(48,902)
3,275,214
2,974,845
3,110,755
3,083,926
109,081
83
Appendix F
2013/14 Base
Budget
FINANCE SERVICE AREA
Local Taxation
Gross Direct Costs
£
2013/14
Updated
Budget
£
2014/15 Base
Budget
Variance
£
£
(65,698) Net movement in expenditure funded from Local Council Tax
Support (LCTS) grants, £50,000 has been rolled forward in an
earmarked reserve from 2013/14.
0
116,300 Non recurring grant LCTS (Local Council Tax Support)
Grants. This is offset by reduced expenditure.
(69,270) (£12,070) Revs & Bens Mgt, (£40,190) Computer Applications
Team,
(18,668)
Explanation for Major Variances
623,764
647,715
558,066
15,000
(541,030)
15,000
(541,030)
15,000
(424,730)
Support Service Charges
416,400
416,400
347,130
Net Expenditure
514,134
538,085
495,466
27,271,528
27,306,528
28,741,490
85,289
(26,993,727)
85,289
(26,993,727)
89,309
(28,331,997)
Support Service Charges
628,960
628,960
522,450
Net Expenditure
992,050
1,027,050
1,021,252
Discretionary Rate Relief
Gross Direct Costs
Net Expenditure
259,702
259,702
280,870
280,870
201,831
201,831
266,577
(266,577)
1,580
1,580
266,577
(266,577)
1,580
1,580
265,787
(265,787)
0
0
(790) No Major Variances
790
(1,580) No Major Variances
(1,580)
Benefits & Revenues Mgmt
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
73,330
16,800
(90,130)
0
73,330
16,800
(90,130)
0
73,811
18,470
(92,281)
0
481 Employee Inflation
1,670
(2,151) No Major Variances.
0
Corporate Finance
Gross Direct Costs
478,417
517,966
490,268
11,851 £11,049 transfer 0.5FTE from Council tax admin to exchequer
to reflect reconciliation work. £4,400 employee inflation £3,582
IAS 19 superannution adjustments. (£8,000) Savings bid Fin1
re Professional fees.
11,594
260,570
(750,581)
0
11,594
260,570
(750,581)
39,549
10,159
242,530
(742,957)
0
Capital Charges
Gross Direct Income
Benefits
Gross Direct Costs
Capital Charges
Gross Direct Income
Non Distributed Costs
Gross Direct Costs
IAS 19 Adjustment
Support Service Charges
Net Expenditure
Capital Charges
Support Service Charges
Support Service Recharges
Net Expenditure
84
1,469,962 £1,417,837 Estimated benefits payments based on 2013-14
mid year estimate. £11,294 Employee inflation. £3,203 staff
joining superannution scheme. £7,181 IAS19 Superannuation
adjustments.
4,020
(1,338,270) (£1,417,837) Subsidy on increased volume of benefits
payments. £79,567 Reduction in Benefit Admin Subsidy.
(106,510) (£11,140) Revs and Bens Management, (£10,860) Computer
Network & PC, (£24,280) Computer Applications, (£20,550)
Fakenham Connect, (£15,280) Legal Services.
29,202
(57,871) (£57,871) Reduction in grant support for parishes.
(57,871)
(1,435)
(18,040) This is made up of a number of small variances.
7,624 Net reduction in costs to be recharges to final services.
0
Appendix F
2013/14 Base
Budget
FINANCE SERVICE AREA
Internal Audit
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
£
2013/14
Updated
Budget
£
2014/15 Base
Budget
Variance
£
£
109,613
3,060
(112,673)
0
109,613
3,060
(112,673)
0
103,613
11,140
(114,753)
0
42,614
335,500
42,614
335,500
43,329
387,080
(378,114)
0
(378,114)
0
(430,409)
0
Corporate & Democratic Core
Gross Direct Costs
373,499
389,741
378,757
Support Service Charges
833,880
833,880
986,620
1,207,379
1,223,621
1,365,377
157,998
29,499,044
111,883
(27,534,757)
(266,577)
2,496,750
(1,331,498)
2,974,845
29,634,954
111,883
(27,534,757)
(266,577)
2,496,750
(1,331,498)
3,110,755
30,856,952
114,468
(28,756,727)
(265,787)
2,515,420
(1,380,400)
3,083,926
1,357,908
2,585
(1,221,970)
790
18,670
(48,902)
109,081
Central Costs
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
Net Expenditure
Gross Direct Costs
Capital Charges
Gross Direct Income
IAS19 Pension Adjustment
Support Service Charges
Support Service Recharges
Net Expenditure
85
Explanation for Major Variances
(6,000) (£6,000) - Saving resulting from a prior year savings bid.
8,080
(2,080) No Major Variances
0
715 No Major Variances
51,580 £15,290 - Increased recharge from Customer Services.
£28,580 - Increased recharge from Fakenham Connect as a
result of a change of office use from service specific (CCTV
and benefits) to general use.
(52,295) Increased recharges as a result of higher service costs
0
5,258 £25,000 - Monitoring Officer costs transferred from Corporate
& Democratic Core offset by a post transfering to Democratic
services.
152,740 £123,200 - Cost of Business Transformation, recharged from
Computer Services.
Appendix F
Organisational Development Service Area
Service
Personnel & Payroll Supp Svs
Insurance & Risk Management
Policy & Performance Mgt
Registration Services
Members Services
2012/13
Actual
£
294,390
237,110
122,639
160,659
385,460
2013/14
Base Budget
2013/14
Updated
Budget
£
338,543
250,178
119,492
154,763
446,377
£
360,643
250,178
66,162
157,763
450,056
Variance
2014/15 Base to
2014/15
Base Budget 2013/14 Base
£
£
352,548
14,005
164,429
(85,749)
57,281
(62,211)
163,489
8,726
477,903
31,526
Total Net Costs
1,200,258
1,309,353
1,284,802
1,215,650
(93,703)
Capital Charges
Support Service Charges
Support Service Recharges
0
425,456
(846,003)
0
461,360
(895,023)
0
461,360
(895,023)
3,200
496,940
(760,338)
3,200
35,580
134,685
779,711
875,690
851,139
955,452
79,762
Net Cost of Service
86
Appendix F
2013/14 Base
Budget
£
ORGANISATIONAL DEVELOPMENT SERVICE AREA
Personnel & Payroll Supp Svs
Gross Direct Costs
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
Variance
£
338,543
361,643
353,548
113,680
(452,223)
(1,000)
113,680
(452,223)
(1,000)
129,380
(481,928)
0
22,100
0
250,828
250,828
165,079
(650)
23,570
(273,748)
(650)
23,570
(273,748)
(650)
22,460
(186,889)
0
0
0
Policy & Performance Mgt
Gross Direct Costs
119,492
66,162
57,281
Support Service Charges
Support Service Recharges
49,560
(169,052)
49,560
(169,052)
34,240
(91,521)
0
(53,330)
0
161,042
170,707
200,211
(6,279)
(12,944)
(36,722)
Support Service Charges
Net Expenditure
161,940
316,703
161,940
319,703
158,890
322,379
Members Services
Gross Direct Costs
446,777
450,456
478,303
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Insurance & Risk Management
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Net Expenditure
Registration Services
Gross Direct Costs
Gross Direct Income
Capital Charges
Gross Direct Income
Support Service Charges
3,200
(400)
112,610
(400)
112,610
(400)
151,970
558,987
562,666
633,073
87
Explanation for Major Variances
15,005 £3,845 - Inflation on salaries and on
costs. £7,640 - Transfer of staff costs
from another area. £5,420 - Effect of
automatically enrolling staff in the
pension scheme.
(1,000)
15,700 No Major variance.
(29,705) Increased recharges reflecting higher
service costs.
0
(85,749) £7,290 - Inflation on Insurance
contract. (£90,259) - Transfer of
Asset related insurance premiums to
Property Services. (£4,000) - Savings
bid AL1, review of CCTV service.
0
(1,110) No Major variance.
86,859 Reduced recharges reflecting lower
service costs.
0
(62,211) (£31,541) - Transfer of staff costs to
another area. (£7,800) - Savings bid
OD1. (£9,416) - Transfer of budget
relating to Your Voice to Community
and Localism (£13,454) - Grants
transferred to Community and
Localism.
(15,320) No Major variance.
77,531 Reduced recharges reflecting lower
service costs.
0
39,169 £3,210 - Inflation on salaries and on
costs. £30,443 - Costs relating to
Individual Electoral Registration
project, funded by grant. £5,116 Effect of automatically enrolling staff in
the pension scheme.
(30,443) (£30,443) - Government grant to cover
costs of Individual Electoral
Registration project.
(3,050) No Major variance
5,676
31,526 £26,917 - Transfer of staff costs from
another area.
3,200 Amortisation of Committee
Management Information System
0
39,360 Increased Officer time spent on
service.
74,086
Appendix F
2013/14 Base
Budget
£
ORGANISATIONAL DEVELOPMENT SERVICE AREA
Gross Direct Costs
1,316,682
Capital Charges
0
Gross Direct Income
(7,329)
Support Service Charges
461,360
Support Service Recharges
(895,023)
Net Expenditure
875,690
2013/14
Updated
Budget
£
2014/15
Base
Budget
£
1,299,796
0
(14,994)
461,360
(895,023)
851,139
88
1,254,422
3,200
(38,772)
496,940
(760,338)
955,452
Variance
£
(93,786)
0
(31,443)
(3,780)
134,685
5,676
Explanation for Major Variances
2014/15 Budget - Savings and Additional Income
Ref.
Finan-cial
Stgy ref
OD1
n/a
Service
Org
Development
Savings Title
Workstream (where
applicable)
Brief Outline of
Saving/Additional Income
(where applicable)
Appendix G
2014/15
Saving(S)
Savings
/Income(I)
/Income
2015/16
Savings
/Income
2016/17
Savings
/Income
2017/18
Savings
/Income
Performance Unit Savings n/a
Misc budgets within the service
no longer requried.
S
7,800
7,800
7,800
7,800
S
8,000
8,000
8,000
8,000
F1
n/a
Finance
Professional Fees Accountancy
n/a
Removal of base budget for oneoff funding, historically used for
one-off external work or interim
cover, in future fund these items
from one-off use of reserves as
opposed to maintaining
unallocated base budgets.
ECD1
7.3
Economic &
Community
Development
Sustainability &
Environmental Strategy
Reorganisation and
Service Restructuring
Removal of current vacant post
S
38,804
38,804
38,804
38,804
ECD2
7.3
Economic &
Community
Development
Economic & Community
Development
Reorganisation and
Service Restructuring
Internal restructure
S
74,380
74,380
74,380
74,380
EH1&
AL2
7.5
Env Health /
Assets and
Leisure
Contract Savings
Review and variation to the
Contracts & Procurement contracts within Environmental
Health and Assets and Leisure
S
169,000
215,000
215,000
215,000
EH2
7.8
Env Health
Garden Waste Service
Additional Income
Additional Income
I
40,000
50,000
50,000
50,000
7.5
Env Health
Improved recycling credits and
reduced costs (payments to
Materials Recycling Facility Contracts & Procurement community
organisations/groups) (pro rata
for 14/15 - review)
I/S
40,000
97,600
109,600
114,600
7.9
Assets and
Leisure
CCTV
Changes to Policy
Framework
Decommissioning of the CCTV
service from 1 April 2014, full
year saving from 2015/16, after
de-commissioning costs.
S
95,760
190,760
190,760
190,760
7.9
Economic &
Community
Development Grants
and Assets and
Leisure
Changes to Policy
Framework
Various Grants - withdraw of
funding for Cromer Museum.
S
40,000
40,000
40,000
40,000
513,744
722,344
734,344
739,344
EH3
AL1
CC1
Sub Total
89
Appendix H
North Norfolk District Council
Council Tax Summary 2014/15
2013/14
Actual
Proposed 2014/15
0% Council Tax Increase
Variance
£
Variance
%
Demand on Collection Fund
(excluding Parish/Town Precepts)
£ 5,082,610
£
5,205,386
£122,776
2.4%
District Council Tax Level at Band D
£
£
141.57
£1.98
1.4%
0.72 -£
.
138.87 £
2.70
-£1.98
275.0%
-
0.00%
Less Estimated Collection Fund Surplus at
31st March
-£
Net District Council Tax at Band D
£
139.59
138.87
£
Note: The Tax Base for 2014/15 is 36,769 (2013/14 36,411) so each £36,919 change in net
expenditure has a £1.00 effect on Council Tax at Band D.
90
Appendix I
Reserves Statement 2013/14 onwards
Reserve
Purpose and Use of Reserve
Balance
at
31/3/2013
£
General Fund General Reserve
A working balance and contingency, current recommended
balance is £1.75 million.
Budgeted
Budgeted
Estimated
Updated
Contributions
Contributions
From
Budget
Balance at to Reserves
Reserves
Movement
1/4/2014
2014/15
£
£
2014/15
£
£
Total
Budgeted Balance at
2014/15
1/4/2015
Movement
£
£
Budgeted
2015/16
Movement
Budgeted
Budgeted
Balance at
Balance at
Balance at
Movement
Movement
1/4/2016
1/4/2017
1/4/2018
2016/17
2017/18
£
£
£
£
£
£
1,745,452
(614,436)
1,131,016
533,425
(958,750)
(425,325)
705,691
0
705,691
0
705,691
0
705,691
Earmarked Reserves:
Capital Projects
To provide funding for capital developments and purchase of
major assets. This includes the VAT Shelter Receipt.
2,063,225
(583,382)
1,479,843
235,608
(195,950)
39,658
1,519,501
0
1,519,501
0
1,519,501
0
1,519,501
Asset Management
To support improvements to our existing assets as identified
through the Asset Management Plan.
64,718
(53,049)
11,669
0
0
0
11,669
0
11,669
0
11,669
0
11,669
Benefits
To be used to mitigate any claw back by the Department of
Works and Pensions following final subsidy determination.
Timing of the use will depend on audited subsidy claims.
671,792
0
671,792
0
0
0
671,792
0
671,792
0
671,792
0
671,792
Big Society Fund
The Budget and forecast projections assume the return of the
second homes funding from County continues to be received
and is utilised on the related grants and communtiy
expenditure.
542,065
173,927
715,992
0
(182,585)
(182,585)
533,407
0
533,407
0
533,407
0
533,407
Carbon
Management
To fund revenue invest to save initiatives and projects within
the Carbon Management Plan.
21,180
(21,180)
0
0
0
0
0
0
0
0
0
0
0
Coast Protection
To support the ongoing coast protection maintenance
programme ands carryforward funding between financial
years.
60,000
(60,000)
0
0
0
0
0
0
0
0
0
0
0
Common Training
To deliver the corporate training programme. Training and
development programmes are sometimes not completed in
the year but are committed and therefore funding is carried
forward in an earmarked reserve.
36,270
(8,820)
27,450
0
0
0
27,450
0
27,450
Economic
Development and
Tourism
Earmarked from previous underspends within Economic
Development and Tourism Budgets along with funding
earmarked for Learning for Everyone.
32,248
(25,000)
7,248
0
0
0
7,248
Election Reserve
Established to meet costs associated with district council
elections, to smooth the impact between financial years.
30,000
30,000
60,000
30,000
0
30,000
90,000
Enforcement Board
Established to meet costs associated with district council
enforcement works as per report to cabinet on the 2nd
December 2013.
0
158,222
158,222
0
(60,000)
(60,000)
98,222
Environmental
Health
Earmarking of previous underspends and additional income
to meet Environmental Health initiatives.
33,200
(20,000)
13,200
0
0
0
13,200
13,200
13,200
13,200
Unspent Grants
Revenue Grants received and due to timiing issues not used
in the year.
47,963
2,037
50,000
0
(50,000)
(50,000)
0
0
0
0
Housing
Previously earmarked for stock condition survey and housing
needs assessment.
242,000
(142,000)
100,000
0
0
0
100,000
91
27,450
27,450
7,248
0
7,248
0
7,248
(60,000)
30,000
30,000
60,000
30,000
90,000
0
98,222
0
98,222
0
98,222
0
100,000
0
100,000
0
100,000
Appendix I
Reserves Statement 2013/14 onwards
Reserve
Purpose and Use of Reserve
Balance
at
31/3/2013
£
Budgeted
Budgeted
Estimated
Updated
Contributions
Contributions
From
Budget
Balance at to Reserves
Reserves
Movement
1/4/2014
2014/15
£
£
2014/15
£
£
Land Charges
To mitigate the impact of potential income reductions.
50,356
0
50,356
Legal
One off funding for Compulsory Purchase Order (CPO) work
and East Law Surplus.
47,555
(42,550)
5,005
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding
commitments and liabilities.
82,677
(30,949)
51,728
LSVT Reserve
To meet the cost of successful warranty claims not covered
by bonds and insurance following the housing stock transfer.
435,000
0
New Homes Bonus
Established for supporting communities with future growth
and development.*
611,678
Organisational
Development
To provide funding for organisation development to create
capacity within the organisation and address anomalies
within the pay structure.
Partnership Budgets
This reflects the balance of funding on the Revenues and
Benefits Partnership project. This will be utilised in 2013/14.
Pathfinder
Total
Budgeted Balance at
2014/15
1/4/2015
Movement
£
£
Budgeted
2015/16
Movement
Budgeted
Budgeted
Balance at
Balance at
Balance at
Movement
Movement
1/4/2016
1/4/2017
1/4/2018
2016/17
2017/18
£
£
£
£
£
£
0
0
50,356
0
50,356
0
50,356
0
50,356
(5,005)
(5,005)
0
0
0
0
0
0
0
0
0
0
51,728
0
51,728
0
51,728
0
51,728
435,000
0
0
0
435,000
0
435,000
0
435,000
0
435,000
675,207
1,286,885
254,936
(57,789)
197,147
1,484,032
285,422
1,769,454
351,550
2,121,004
329,792
2,450,796
69,997
(69,997)
0
0
0
0
0
0
0
0
0
0
0
35,000
(35,000)
0
0
0
0
0
0
0
0
0
0
0
To help Coastal Communities adapt to coastal changes.
265,825
(128,358)
137,467
0
(19,020)
(19,020)
118,447
(18,126)
100,321
(18,126)
82,195
(44,108)
38,087
Previously unspent Housing and Planning Delivery Grant
Planning - Revenue (HPDG) for use on related revenue projects, timing to be
confirmed.
134,954
35,596
170,550
0
(72,839)
(72,839)
97,711
(4,000)
93,711
0
93,711
0
93,711
37,837
0
37,837
0
0
0
37,837
0
37,837
0
37,837
0
37,837
0
Regeneration
Projects
Carry forward of underspends relating to Regeneration
Projects.
Restructuring &
Invest to Save
Proposals
To fund one-off redundancy and pension strain costs and
invest to save initiatives. Transfers from this reserve will be
allocated against business cases as they are approved.
Timing of the use of this resrve will depend on when business
cases are approved.
694,074
217,118
911,192
0
(115,000)
(115,000)
796,192
(38,000)
758,192
0
758,192
0
758,192
Sports Hall
To support renewals for sports hall equipment. Amount
Equipment & Sports transferred in the year represents over or under achievement
of income target.
Facilities
24,820
(7,070)
17,750
0
0
0
17,750
0
17,750
0
17,750
0
17,750
The pier
To be used to support the costs of works to Cromer pier.
15,000
(15,000)
0
0
0
0
0
0
0
0
0
0
0
Treasury (Property)
Reserve
Property Investment (Treasury), to smooth the impact on the
revenue account of interest fluctuations.
66,068
0
66,068
0
0
0
66,068
66,068
0
66,068
0
66,068
Whistle blowing
Commissioning investigation activity as required.
10,000
(10,000)
0
0
0
0
0
0
0
0
0
0
0
8,170,954
(574,684)
7,596,270
1,053,969 (1,716,938)
(662,969)
6,933,301
165,296
7,098,597
363,424
7,462,021
315,684
7,777,705
Total Reserves
92
Appendix J
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current
Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Actual
Budget 2013/14 Expenditure at
at Period 9
Period 9
Comments
Updated
Budget 14/15
Updated
Budget 15/16
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation Centre
50,000
Financed by;
NNDC (Capital Receipts)
50,000
Rocket House
77,084
10,295
0
0
26,928
50,156
5,240
39,705
0
These works are currently on hold ,
pending the outcome of service charge
discussions with the existing tenants.
0
0
45,029
26,723
0
This scheme is currently progressing.
0
0
0
100,000
100,000
The payment of the capital grant
contribution in respect of the Wells
Maltings Project has been processed.
0
0
68,379
5,000
0
0
207,758
153,923
0
0
Financed by;
NNDC (Capital Receipts)
77,084
Wells Sackhouse Refurbishment
71,752
This scheme is currently on hold with the
remaining budget being slipped to the
new financial year.
Financed by;
Other Contributions
27,752
NNDC (Capital Receipts)
44,000
Maltings Wells
100,000
Financed by;
NNDC (Capital Receipts)
Carbon Reduction Scheme
Financed by;
NNDC (Cap Receipts - Carbon Reduction
Fund)
Car Park Resurfacing and Refurbishment
100,000
73,379
0 Works have been identified in relation to
this scheme, although not progressed at
the current time.
73,379
361,681
This scheme is progressing and is
90,787 programmed for completion by the end
of the financial year.
Financed by;
NNCD (Capital Receipts)
361,681
93
Appendix J
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current
Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Actual
Budget 2013/14 Expenditure at
at Period 9
Period 9
Comments
Updated
Budget 14/15
Updated
Budget 15/16
£
Public Conveniences (Plumbing and
Drainage)
Financed by;
NNCD (Capital Receipts)
15,000
0
15,000
This scheme is progressing and is
369 programmed for completion by the end
0
0
39,705
0
of the financial year.
15,000
748,896
358,389
350,802
196,395
Annual programme
477,536
440,666
The payment of Disabled Facilities
Grants is continuing.
1,350,000
772,578
Annual programme
819,950
397,100
Projects are progressing with this
scheme and the budget has been
reprofiled in according with when
expenditure is anticipated.
105,150
0
0
0
0
0
Housing and Infrastructure
Disabled Facilities Grants
Financed by;
Specified Capital Grant
NNDC (Capital Receipts)
Housing Associations
Financed by;
NNDC (Capital Receipts)
NNDC (Capital Projects Reserve)
Affordable Housing Contributions
Strategic Housing & Choice Based Lettings
System
Financed by;
NNDC (Capital receipts)
Capital Projects Reserve
Equity Loans
Financed by;
EERA Contribution
120,650
100,650
20,000
This scheme is progressing and
0 programmed for completion by the end
of the financial year.
113,950
6,700
47,000
19,845
27,155
47,000
94
14,910
This scheme is continuing.
Appendix J
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current
Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Actual
Budget 2013/14 Expenditure at
at Period 9
Period 9
Comments
Updated
Budget 14/15
Updated
Budget 15/16
£
Housing Loans to Registered Providers
3,500,000
0 This scheme has been slipped in total
0
0
3,668,600
121,445
1,344,641
852,675
1,409,000
1,103,354
45,646
0
37,028
494
494
691,976
546,655
581,036
67,498
12,002
0
Financed by;
Capital Receipts
Capital Projects Reserve
Internal/External Borrowing
3,500,000
0
4,955,150
772,578
40,000
220,000
No further payments are anticipated
before the end of the financial year,
hence the remaining budget has been
slipped to 2014/15.
2,501
0
Works are continuing on this scheme
with a number of significant contractor
payments having been made.
180,000
0
0
0
into the 2014/15 financial year, when the
loan payments are anticipated as being
made.
2,484,769
90,800
924,431
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
Financed by:
Grant
Sheringham Beach Handrails
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Capital Receipts)
Cromer Pier Structural Works - Phase 2
1,409,000
40,023
5,023
35,000
1,418,631
Financed by;
NNDC (Capital Receipts)
Sheringham Promenade Lighting
Payments are anticipated to be made
against this scheme by the end of the
financial year.
1,418,631
79,500
Financed by;
NNDC (Capital Receipts)
46,500
Other Contributions
33,000
95
Appendix J
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current
Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Actual
Budget 2013/14 Expenditure at
at Period 9
Period 9
Comments
Updated
Budget 14/15
Updated
Budget 15/16
£
Cromer Pier and West Prom Refurbishment
Project
Financed by:
NNDC (Capital Receipts)
Refurbishment Works to the Seaside
Shelters
Financed by:
NNDC (Capital Receipts)
Cromer Coast Protection Scheme 982 and
SEA
Financed by:
Environment Agency Grant
Pathfinder Project
Financed by:
DEFRA Grant
200,000
110
49,890
956
33,449
30,051
3,887
320,710
3,119,000
200,000
153,500
153,500
10,400,000
Works on this scheme are currently on
hold following the storm surge
experienced in December 2013.
Potential works resultant from this will
require further review and prioritisation.
Works on this scheme have been
120,992 progressing although some works may
150,000
0
90,000
0
6,960,290
0
0
0
30,000
0
0
0
0
0
need to be rescheduled following the
storm surge.
10,400,000
1,967,015
Works on this scheme are currently on
hold following the storm surge
experienced in December 2013.
Potential works resultant from this will
require further review and prioritisation.
1,654,783
312,232
8,101
Works on this scheme have been
progressing.
56,623
23,377
20,773
Works on this scheme have been
progressing although some works may
need to be rescheduled following the
storm surge.
0
60,000
0
262
35,738
1,967,015
Cromer to Winterton Scheme
110,000
Financed by:
Environment Agency Grant
110,000
Coastal Erosion Assistance
Financed by:
Government Grant
60,000
Chalet Repairs
36,000
Financed by;
NNCD (Capital Receipts)
36,000
60,000
96
36,134 Works on this scheme were completed
prior to the storm surge in December
2013.
Appendix J
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current
Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Actual
Budget 2013/14 Expenditure at
at Period 9
Period 9
Comments
Updated
Budget 14/15
Updated
Budget 15/16
£
Doctors Steps
Financed by;
NNCD (Capital Receipts)
22,000
6,867 Works have been completed and final
262
21,738
0
0
15,895,669
3,966,055
4,256,823
779,240
7,452,791
220,000
North Lodge Park
Financed by;
NNCD (Capital Receipts)
197,000
732
0
0
This scheme is currently on hold
pending the outcome of discussions
being held with Cromer Town Council.
196,268
0
Big Society Fund
Financed by:
NNDC (Capital Receipts)
RCCO
507,000
282,000
225,000
27,500 Payment of capital grants from the Big
0
0
17,045
0
0 This scheme is currently on hold, hence
52,955
0
0
54,370
0
Contractors are being sought to
undertake the works, but it is anticipated
that this scheme will be complete by the
end of the financial year.
0
0
0
100,000
9,191
0
0
299,777
379,370
36,691
249,223
0
invoices are awaited.
22,000
Localism
197,000
Society Fund are continuing.
482,000
25,000
North Walsham Regeneration Schemes
Financed by:
NNDC (Capital Receipts)
70,000
Victory Swim and Fitness Centre
54,370
Financed by;
NNCD (Capital Receipts)
54,370
the remaining budget has been slipped
to the 2014/15 financial year.
70,000
Play Areas
100,000
Financed by;
NNCD (Capital Receipts)
100,000
928,370
97
The schemes for play areas identified as
part of the Review are currently out to
tender, and it is antipated that the
scheme will be complete by the end of
the financial year.
Appendix J
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current
Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Actual
Budget 2013/14 Expenditure at
at Period 9
Period 9
Comments
Updated
Budget 14/15
Updated
Budget 15/16
£
Delivering the Vision
Trade Waste Bins/ Waste Vehicle
272,700
Financed by:
NNDC (Capital Receipts)
LPSA Grant
194,784
77,916
Reception Project
Financed by;
NNDC (Capital Receipts)
143,026
Personal Computer Replacement Fund
Financed by;
NNDC (Capital Receipts)
NNDC (RCCO)
204,282
Waste Management & Environmental Health
IT System
Financed by;
NNDC (Capital Receipts)
WPEG Grant
DEFRA Grant
151,012
29,387
29,387
Replacement vehicles have been
purchased, and the remaining budget
has been slipped into the new financial
year.
92,301
0
2,486
140,540
143,754
The reception works have been
completed and final invoice payments
made.
0
0
144,282
20,000
18,321
Personal computers have been
purchased and it is anticipated that the
budget will be fully spent by the end of
the financial year.
20,000
20,000
215,933
5,494
5,149
11,000
0
62,593
12,407
0
This scheme is currently on hold
pending issues with staff availability,
although it is anticipated that the works
will be completed by the end of the
financial year.
0
0
31,600
2,410
2,850 This scheme has been completed and
0
0
143,026
160,646
43,636
232,427
131,514
83,486
17,427
Asset Management Computer System
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Asset Management Reserve)
75,000
Probass 3
Financed by:
Planning Delivery Grant/Housing and Planning
Delivery Grant
NNDC (Capital Receipts)
34,010
60,000
15,000
5,600
28,410
98
No further purchases are anticipated in
the current financial year, and the
remaining budget has been slipped to
2014/15.
all invoice payments made.
Appendix J
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current
Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Actual
Budget 2013/14 Expenditure at
at Period 9
Period 9
Comments
Updated
Budget 14/15
Updated
Budget 15/16
£
Procurement for Upgrade of Civica System
Financed by:
NNDC (Capital Receipts)
Other Grants (RIEP)
DWP Performance Standards Fund
e-Financials Financial Management System
Software Upgrade
Financed by:
NNDC (Capital Receipts)
306,156
142,916
163,240
21,050
11,950
6,754
100,246
0
0
0
16,000
0
65,000
44,143 Works are progressing on this scheme.
0
0
0
0
78,742 Futher works have been undertaken in
168,000
0
0 This scheme has been delayed with all
21,000
0
12,500 This scheme is progressing and the final
0
0
1,881 Works on this scheme are progressing.
0
0
222,397
53,800
29,959
33,000
456
Works are progressing on this scheme.
33,000
Administrative Buildings
275,000
Financed by;
NNDC (Capital Receipts)
275,000
Replacement of Planning Printer and Scanner
Financed by:
NNDC (Capital Receipts)
21,000
Committee Management Information System
Financed by:
NNDC (Capital Receipts)
16,000
PC Replacement and Mobile Technology
Financed by:
NNDC (Capital Receipts)
65,000
relation to central heating and lighting.
of the budget being slipped to 2014/15.
21,000
order for works has been placed.
16,000
65,000
99
Appendix J
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current
Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Actual
Budget 2013/14 Expenditure at
at Period 9
Period 9
Comments
Updated
Budget 14/15
Updated
Budget 15/16
£
Handyman Vehicle
Financed by:
RCCO
13,200
0
13,200
1,690,801
778,626
579,874
22,932,336
5,524,292
6,911,510
13,696 The Handyman replacement vehicle has
0
0
350,878
312,301
20,000
2,215,880
13,009,170
1,012,578
been purchased and is now operational.
13,200
Capital Programme Financing
Environment Agency Grant
DEFRA Grant
Disabled Facilities Grants
Other Grants
Affordable Housing Contributions
Other Contributions
Asset Management Reserve
Revenue Contribution to Capital (RCCO)
Capital Project Reserve
Capital Receipts
Internal / External Borrowing
3,202,377
357,878
443,000
27,155
50,996
8,000
4,580
38,200
780,781
1,998,543
0
6,990,290
40,000
443,000
0
0
0
0
0
195,950
4,415,499
924,431
0
220,000
443,000
0
0
0
0
0
0
349,578
0
TOTAL FINANCING
6,911,510
13,009,170
1,012,578
100
Appendix K
CAPITAL BIDS - 2014/15 to 2017/18 SUMMARY
Ref.
(Page
No. Bid
Forms)
Bid Title/Brief
Description
Total
Estimated
Project
Costs
Funding
Identified
Estimated Costs
2014/15
2015/16
2017/18
2016/17
10,000
10,000
0
0
0
Comments
2014/15
Onwards
IT RELATED BIDS
Cash Receipting System
Upgrade - Required in order to
CFI01 ensure continued support for
the system, and to provide up
(1)
to date functionality for
customers and the
organisation as a whole.
Annual
Revenue
Costs /
(Income) Assumed ongoing where
applicable
0
The Council had signed a 5 year contract in September
2009 to run the Capita Cash Receipting System. In order to
protect the investment made and to ensure that the system
0
continues to be supported it is essential to keep the system
up to date. As the current system works well there is no
reason to look into alternative options at this stage.
Planning Probass 4 - Test
Environment and Upgrades CDE01 Required to enable testing of
changes to software,
(4 + appearance and the use of
Apx A) public access to the system
that feeds directly into NNDC's
website.
27,185
27,185
0
0
0
0
The Planning Peer Review highlighted the need to ensure
that the department maximise their use of IT, including
increasing web access, together with the online viewing of
comments, reports and documents. This requires a
0 complete review of processes and practices, with a test
system and up to date software being essential. Updates
directly onto a live system are publically highlighted and
impact immediately, and would be considered as a high risk
strategy.
Planning System - Scanning
old Files - Required to move
CDE02 to electronic documents, this
bid would enable the back
(7)
scanning of manual records
that could then be destroyed to
free up accommodation space.
60,000
60,000
0
0
0
0
There is a significant amount of manual planning files
0 retained which if stored electronically would further enhance
the planning system.
0
This scheme would replace existing, unsupported network
switches with up to date versions which will be suitable for
0
the new telephony system as well as for the network
generally for the next 5 years.
CCS01
IT - Network Switches
(N/A)
100,000
100,000
0
0
0
101
Appendix K
CAPITAL BIDS - 2014/15 to 2017/18 SUMMARY
Ref.
(Page
No. Bid
Forms)
Bid Title/Brief
Description
Total
Estimated
Project
Costs
Funding
Identified
Estimated Costs
2014/15
2015/16
2017/18
2016/17
Sheringham West
Promenade - Sea wall
CEC01 refurbishment, widening of the
promenade and construction
(10) of a sea wall apron between
The Leas and the Lifeboat
Ramp at Sheringham.
Mundesley - Refurbishment
of Coastal Defences - Works
are required to ensure existing
CEC02 defences fulfil their function in
(15) light of predicted climate
change and the longer term
expectation of lowering beach
levels.
590,000
2,221,000
590,000
70,000
0
0
0
0
2,151,000
0
102
Comments
2014/15
Onwards
COASTAL RELATED
Annual
Revenue
Costs /
(Income) Assumed ongoing where
applicable
(375,000)
The promenade to the west of Sheringham, between The
Leas slope and the lifeboat ramp, is of traditional
construction with foundations directly onto underlying chalk.
Monitoring of beach levels indicates that over time beach
levels are falling, which could further expose the base and
1,700 face of the wall to the action of the sea. Improvements will
assist in the reduction of erosion and works to widen the
promenade would enhance the facility for recreation and
tourism. This scheme seeks funding under the Flood and
Coast Defence Grant in Aid scheme, with a partnership
contribution from NNDC.
(1,914,000)
The Shoreline Management Plan policy for the Mundesley
coastal frontage is to 'hold the line' until 2055. The
condition of existing sea defences is mixed and therefore to
ensure that the coast protection policy is achieved, it is
appropriate to complete a coastal defence refurbishment
7,668
scheme for this area of coastline. Mundesley would fit the
criteria under the Environment Agency lead Flood and
Coast Defence Grant in Aid funding mechanism, and this
scheme seeks funding under this, with a partnership
contribution from NNDC
Appendix K
CAPITAL BIDS - 2014/15 to 2017/18 SUMMARY
Ref.
(Page
No. Bid
Forms)
Bid Title/Brief
Description
Total
Estimated
Project
Costs
Funding
Identified
Estimated Costs
2014/15
2015/16
Annual
Revenue
Costs /
(Income) Assumed ongoing where
applicable
2017/18
2016/17
2014/15
Onwards
ASSET RELATED
Comments
PARKLANDS SUMMARY
Parklands Improvement Varous improvement to the
CAL parklands site, including works
Various to the laundry block, internal
site highways works, fire
system and LPG supply.
OTHER ASSETS
Steelwork Protection at
Victory Swimming Pool and
Fakenham Gym - Painting
CAL18 and recoating of exposed
(71) external structure steelwork
and steel cladding at Victory
Swimming Pool and
Fakenham Gym.
Total Capital Project Bids
Total Capital Funding Required
100,000
100,000
0
0
0
0
Provision of the facilities at the Parklands Caravan Park
currently meets the Councils Housing and Infrastructure
objectives within the Corporate Plan. Following a report
0 which considered the future options for the site some
improvements are required. This bid would earmark funding
for which the allocation would be subject to more detailed
reprots to the Localism and Asset Board.
There is an obligation to maintain the external structure of
leisure facilities as part of the management agreements in
existence with DC Leisure at Fakenham and North
0
Walsham. Failure to adequately maintain the structure
may reduce the overall life of the asset and lead to more
expensive remedial works in the future.
30,000
30,000
0
0
0
0
3,138,185
987,185
0
2,151,000
0
(2,289,000)
849,185
612,185
237,000
103
9,368
Appendix L
Prudential Indicators and MRP Statement 2014/15
1.
Background:
1.1
The Local Government Act requires the Council to have regard to the Chartered Institute
of Public Finance and Accountancy’s Prudential Code for Capital Finance in Local
Authorities (the Prudential Code) when determining how much money it can afford to
borrow. The objectives of the Prudential Code are to ensure, within a clear framework,
that the capital investment plans of local authorities are affordable, prudent and
sustainable, and that treasury management decisions are taken in accordance with good
professional practice. To demonstrate that the Council has fulfilled these objectives, the
Prudential Code sets out the following indicators that must be set and monitored each
year.
2.
Estimates of Capital Expenditure:
2.1
This indicator is set to ensure that the level of proposed capital expenditure remains
within sustainable limits and, in particular, to consider the impact on Council Tax.
Capital Expenditure
Total
2.2
2014/15
Estimate
£000s
2015/16
Estimate
£000s
14,546
2016/17
Estimate
£000s
1,013
2,151
Capital expenditure will be financed or funded as follows:
Capital Financing
2014/15
Estimate
£000s
2015/16
Estimate
£000s
2016/17
Estimate
£000s
Capital receipts
5,578
350
237
Government Grants
7,848
663
1,914
Revenue contributions and Reserves
196
0
0
Internal Borrowing
924
0
0
14,546
1,013
2,151
Total Financing
104
3.
Estimates of Capital Financing Requirement:
3.1
The Capital Financing Requirement (CFR) measures the Council’s underlying need to
borrow for a capital purpose. The calculation of the CFR is taken from the amounts held
in the Balance Sheet relating to capital expenditure and financing.
Capital Financing
Requirement
Total CFR
2014/15
Estimate
£000s
2015/16
Estimate
£000s
2,253
2016/17
Estimate
£000s
1,830
1,520
The total CFR indicated in the table relates in part to vehicles and equipment used on
the Council’s refuse and car park management contracts. These are recognised under
IFRS accounting regulations which require equipment on an embedded finance lease to
be recognised on the balance sheet. In addition to this, it also reflects the Council’s
decision to provide loan advances to Registered Providers under the Local Investment
Strategy. Although initially this will increase the CFR in 2014/15, the capital receipts
generated by the annual repayments on the loans will be applied to reduce the CFR
across subsequent years in accordance with the Council’s Minimum Revenue Provision
Policy as set out below.
4.
Gross Debt and the Capital Financing Requirement:
4.1
This is a key indicator of prudence. In order to ensure that over the medium term debt
will only be for a capital purpose, the Council should ensure that debt does not, except in
the short term, exceed the total of the capital financing requirement in the preceding year
plus the estimates of any additional capital financing requirement for the current and next
two financial years. The Council will have no difficulty in meeting this requirement as no
long term external borrowing is anticipated for the period of the Strategy.
5.
Authorised Limit and Operational Boundary for External Debt:
5.1
The Council has an integrated treasury management strategy and manages its treasury
position in accordance with its approved strategy and practice. Overall borrowing will
therefore arise as a consequence of all the financial transactions of the Council, and not
just those arising from capital spending reflected in the CFR.
5.2
The Authorised Limit sets the maximum level of external debt on a gross basis (i.e.
excluding investments) for the Council. It is measured against all external debt items (i.e.
long and short term borrowing, overdrawn bank balances and long term liabilities). The
indicator separately identifies borrowing from other long term liabilities such as finance
leases. It is consistent with the Council’s existing commitments, its proposals for capital
expenditure and financing and its approved treasury management policy statement and
practices.
5.3
The Authorised Limit is the statutory limit determined under Section 3(1) of the Local
Government Act 2003 (referred to in the legislation as the Affordable Limit).
105
5.4
The Operational Boundary is based on the same estimates as the Authorised Limit
reflecting the most likely, prudent but not worst case scenario, and without the additional
headroom included within the Authorised Limit for unusual cash movements.
Authorised Limit for Borrowing
2014/15
Estimate
£000s
6,900
2015/16
Estimate
£000s
6,900
2016/17
Estimate
£000s
6,900
1,328
998
688
8,228
7,898
7,588
4,840
4,840
4,840
1,328
998
688
6,168
5,838
5,528
Authorised Limit for Other Longterm Liabilities
Authorised Limit for External
Debt
Operational Boundary for
Borrowing
Operational Boundary for Other
Long-term Liabilities
Operational Boundary for
External Debt
6.
Ratio of Financing Costs to Net Revenue Stream:
6.1
This is an indicator of affordability and highlights the revenue implications of existing and
proposed capital expenditure by identifying the proportion of the revenue budget
required to meet financing costs. The definition of financing costs is set out in the
Prudential Code.
6.2
The ratio is based on costs net of investment income.
Ratio of Financing Costs to
Net Revenue Stream
Total
2014/15
Estimate
%
(2.55)
2015/16
Estimate
%
(2.74)
2016/17
Estimate
%
(3.04)
The indicator is negative because the Council has interest receivable and no financing
costs.
7.
Incremental Impact of Capital Investment Decisions:
7.1
This is an indicator of affordability that shows the impact of capital investment decisions
on Council Tax levels. The incremental impact is calculated by comparing the total
revenue budget requirement of the current approved capital programme with an
equivalent calculation of the revenue budget requirement arising from the proposed
capital programme.
106
Incremental Impact of Capital
Investment Decisions
2014/15
Estimate
£
2015/16
Estimate
£
2016/17
Estimate
£
Increase in Band D Council Tax
0.35
0.00
0.06
7.2
The incremental impact of capital investment decisions reflects the additional revenue
cost to the authority of undertaking specific capital schemes, together with the loss of
interest from the use of capital receipts that would otherwise have been invested as part
of the Treasury Management process.
8.
Adoption of the CIPFA Treasury Management Code:
8.1
This indicator demonstrates that the Council has adopted the principles of best practice.
Adoption of the CIPFA Code of Practice in Treasury Management
The Council approved the adoption of the CIPFA Treasury Management Code at Full
Council on 28 April 2010.
9
Annual Minimum Revenue Provision (MRP) Statement 2015/16
9.1
Where a local authority finances capital expenditure by debt, it must put aside resources
to repay that debt in later years. The amount charged to the revenue budget for the
repayment of debt is known as Minimum Revenue Provision (MRP). There has been no
statutory minimum amount since 2008, but the Local Government Act 2003 requires
authorities to have regard to the Department for Communities and Local Government’s
Guidance on Minimum Revenue Provision, which was most recently issued in 2012.
9.2
The Guidance requires the Council to approve an Annual MRP Statement, and
recommends a number of options for calculating a prudent amount of MRP.
9.3
There are four alternative methods available and the Council will apply the CFR (Capital
Financing Requirement) Method. The CFR at 31 March 2015 is estimated to be £nil, if
the impact of embedded finance leases are excluded. Under this calculation method,
there will be no requirement to charge MRP in 2014/15. However, the recognition of an
embedded finance lease in the council’s refuse and car park contracts establishes a
CFR. There is therefore a requirement to make an MRP charge which will be equal to
the annual principal repayment under the embedded finance lease.
9.4
If loans are advanced to Registered Providers under the Local Investment Strategy for
their capital expenditure, no MRP will be charged. However, the capital receipts
generated by the annual repayments on the loans will be put aside to repay debt
instead.
107
Agenda Item No______13______
MANAGING PERFORMANCE QUARTER 2 2013/14
Summary:
The purpose of this report is to give a third quarter
progress report of the performance of the Council. More
specifically it reports delivery of the Annual Action Plan
2013 – 14 and achieving targets. It gives an overview,
identifies any issues that may affect delivery of the plan,
the action being taken to address these issues and
proposes any further action needed that requires
Cabinet approval.
Options considered:
Options considering action regarding performance are
presented separately, issue by issue, to the appropriate
Council Committee.
Conclusions:
1. The majority of the 49 activities in the Annual
Action Plan 2013/14 are on track or progressing
to plan (35). Performance is being closely
monitored, particularly for the small number of
activities where issues or problems have been
identified (four) or the activity has been
postponed, delayed or on hold (three). Some
activities have already been completed
successfully (six).
2. Of the 20 performance indicators where a target
has been set or assessment against the
previous year’s performance is taking place six
are on or above target, two close to target, six
below target, six improving and none worse
compared to last year.
3. The delivery of the Annual Action Plan is
progressing according to plan but there are
some performance issues in achieving targets.
These are detailed in the document ‘Managing
Performance Quarter 3 2013/14’ attached as
Appendix M.
Recommendations:
It is recommended that Cabinet notes this report,
welcomes the progress being made and endorses
the actions laid out in Appendix M being taken by
management where there are areas of concern.
Reasons for
Recommendations:
To ensure the objectives of the Council are achieved.
108
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not
published elsewhere)
Cabinet Member(s)
Ward(s) affected
Tom FitzPatrick
All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.thomas@north-norfolk.gov.uk
1.
Introduction
The purpose of the ‘Managing Performance Quarter 3 2013/14’ report is to
identify good practice and disseminate it, highlight any performance issues to
help the Council identify areas for discussion and take action to secure
improvement in the future where it is needed.
It is a key part of the Council’s Performance Management Framework.
2.
Changes to Reporting
The changes to reporting implemented in quarter 2 were well received and
enable Members, the public, management and staff, to more easily assess
progress.
3.
Content of the Report
The third quarter performance report shows progress against the Corporate
Plan 2012-2015 Themes together with any other relevant performance
achievements and issues.
Each Theme has a strategic assessment of progress achieved during the
quarter in delivering the Annual Action Plan 2013/14 and achieving targets.
Performance information for each theme is broken into 3 sections: Strategic Overview including assessment of overall performance within each
theme, key achievements and issues
 Progress in delivering the Annual Action Plan 2013/14
 Performance Indicators – progress reporting
In addition, a performance indicators at a glance section gives an overview of
performance against targets.
4.
Conclusion
The majority of the 49 activities in the Annual Action Plan 2013/14 are on
track or progressing to plan (35). Performance is being closely monitored,
109
particularly for the small number of activities where issues or problems have
been identified (four) or the activity has been postponed, delayed or on hold
(three). Some activities have already been completed successfully (six).
Of the 20 performance indicators where a target has been set or assessment
against the previous year’s performance is taking place six are on or above
target, two close to target, six below target, six improving and none worse
compared to last year
The delivery of the Annual Action Plan is progressing according to plan but
there are some performance issues in achieving targets. These are detailed
in the document ‘Managing Performance Quarter 3 2013/14’ attached as
Appendix M.
5.
Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the risk to delivery of the Annual Action Plan 2013/14 and the
achievement of the priorities in the Corporate Plan 2012-15. The
recommendations of this report outline the action being taken to reduce or
remove the risk of not delivering the Corporate Plan.
The Corporate Risk Register which includes the risk associated with nondelivery of the Corporate Plan is reviewed regularly by the Audit Committee
and the Performance and Risk Management Board.
6.
Financial Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the financial risk to the Council.
7.
Sustainability
There are no sustainability implications of this report.
8.
Equality and Diversity
There are no equality and diversity implications of this report.
9.
Section 17 Crime and Disorder considerations
There are no Section 17 Crime and Disorder implications of this report.
110
Agenda Item No_____14_______
North Lodge Park Asset Transfer
Summary:
Options considered:
The report seeks approval to grant delegated authority to the
Chief Executive to settle the terms of, and complete a lease
of North lodge Park from the District Council to Cromer Town
Council, together with the grant of a „dowry‟ to help cover
Cromer Town Council‟s costs for maintaining and managing
the Park in the initial years..
1. The status quo would be for NNDC to continue the current
level of management and maintenance of the Park with the
associated costs; this would put a continuing demand on
NNDC budgets for the foreseeable future and would not
facilitate local control of the future use or management of the
Park. Under the Localism agenda there are opportunities for
councils to assess the current level of asset ownership and
seek alternative models of ownership that could realise both
savings for local authorities and ultimately provide greater
control of local assets by the community and parish and town
councils.
2. The option of community management of the Park with
local voluntary and or/community group was explored as part
of the research undertaken by Aspinal Verdi, who were
commissioned to work with the joint Town and District
Council Working Group. This report indicated that there was
no likely organisation that would undertake future
management responsibility. Furthermore the overall level of
savings that could be achieved from this alternative
management model may not be realised given the likely
number of volunteers that would actually be willing to come
forward to undertake future support for grounds maintenance
work that would in turn reduce the overall costs, while
achieving an optimum standard desired by the community for
the management and maintenance of this public asset.
3. An asset transfer could be undertaken by leasehold (long
or short term, or freehold). Freehold transfer would relinquish
control of the asset completely (although restrictions could
be put in place), whilst short-term leasehold is likely to leave
the Town Council in a weaker position with respect to
certainty about the future of the Park and consequently its
ability to secure funding. The most appropriate balance is
therefore considered to be delivered by transferring the asset
on a long-term lease (e.g. 99 years).
Conclusions:
The main conclusions are developed from two main drivers
that have been highlighted in the report, Firstly, that there
are indeed revenue savings for the Council over the long-
111
term and, secondly, that Cromer Town Council has provided
sufficient evidence that the business case presented by them
is viable and stands them in a sound position to manage and
maintain North Lodge Park – to target external funding and
to ensure that the community interests are served into the
foreseeable future.
Recommendations:
It is recommended that Cabinet:
1. agree the principle of disposing of North lodge Park
on a 99 year leasehold basis as set out in this report;
2. delegate authority to the Chief Executive (in
consultation with the Cabinet Members for Assets
and for Localism & the Big Society) to settle the
terms of, and complete a lease of North Lodge Park
to Cromer Town Council, including:
extent of the asset
use of the Park and any covenants and overage
costs
3. delegate authority to the Chief Executive (in
consultation with the Cabinet Members for Assets
and for Localism & the Big Society) to make to
Cromer Town Council a Council grant not exceeding
£150,000 to be funded from the 2nd homes Council
Tax reserve for community initiatives to cover the
initial period of ownership.
Reasons for
Recommendations:
To provide the opportunity for Cromer Town Council to
achieve the long-term benefits of the Park for the local
community and align control of the asset with local views
over its management and use. Also for NNDC to realise
savings in the long-term over the management and
maintenance of North lodge Park.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not published
elsewhere)
Cabinet Member(s):
Cllr Rhodri Oliver/ Cllr
Trevor Ivory
Ward(s) affected: The Park lies in Cromer but the
decision is a corporate assets/ financial one relating to
the Whole District
Contact Officer, telephone number and email: John Mullen, john.mullen@northnorfolk.gov.uk 01261516104
112
1.
Introduction
1.1
North Lodge Park has been managed and maintained as a North Norfolk District
Council asset since 1974, when the current local authority was formed under the
1972 Local Government Act. The Park in its present architectural form stems
mostly from post 1945, although the Park has been open to the public since 1929,
having earlier been under private ownership and maintained as such.
1.2
The Council manages and maintains a number of buildings and amenity and
recreational green areas within the Park, including putting and bowling greens,
ornamental garden area, public shelters, a café, public conveniences, boating
pond and the playgroup building under lease to the current pre-school provider.
The main building on the Park grounds is North Lodge itself, which, since freehold
transfer from North Norfolk Council to Cromer Town Council in 2005, has been
owned and managed by the Town Council and provides the offices and Chamber
for the Town Council to operate from.
1.3
In April 2012 the District Council proposed ( following a Cabinet recommendation)
to invest £197,000 of capital funding into the Park in order to upgrade and provide
new equipment and amenity areas as well as proposing to remove the Putting and
Bowling areas from the Park in order to facilitate savings of around £21,000 per
annum from the Council‟s budget. These proposals were subject to community
consultation. The feedback from this consultation was taken on board and
following the assessment of responses the proposals were not taken forward.
1.4
The North Lodge Park Working Group was set up in September 2012 following a
joint agreement between Cromer Town Council and North District Council to
oversee the development of a report detailing the opportunities and limitations of
transferring ownership of the Park to a third sector organisation. A Stakeholder
consultation event was held and local organisations invited to contribute to the
Study. The groups that were consulted had either expressed an interest in the
future of the Park, were interested in the benefits that were derived from on-going
management of the Park, or concerned about the impact any change of ownership
may have on the future maintenance of the Park. The main aims of the workshop
were to:
Impart information about the study and the Park
To commence a dialogue regarding the prospects of an asset transfer
To encourage interest and participation in the idea of an asset transfer.
1.5
The conclusions of the stakeholder engagement exercise were reported in an
interim report issued by Aspinal Verdi (property consultancy firm). The interim
report identified that the transfer of the Park to a community organisation may face
several constraints in order to achieve the successful asset transfer of the Park to
a community group. The limitations were summarised mainly as: insufficient
capacity for generating income for any new group looking to take on the
management and maintenance of the Park; limited opportunities for recruitment of
volunteers to reduce the overall cost of the Park‟s day-to-day management, as well
as the cost of employing a person to oversee the management of the Park (that
had been thought critical if the opportunities for generating a reasonable income to
cover future costs were to be realised).
113
1.6
Following the main stakeholder consultation event, more individual meetings took
place between representatives of local organisations and Aspinal Verdi in order to
explore the various options that were identified in the consultation exercise.
However, there was not a high level of confidence coming forward from the
discussions held that there would actually be a community organisation or joint
body that would be in a position to take on the transfer of the Park. After this
period the North Lodge Park Working Group met again in July to then decide what
the next steps would be regarding any further options on delivering different
management models and community involvement in the running of the Park.
2.
2.1
The Asset and its value
North Lodge Park contains different areas of open space uses and a variety of
buildings and structures. The use of the Park is constrained by various restrictive
covenants, notwithstanding the
designation of the Park in the Local
Development Framework as an „Open Land Area‟ and „Public Realm‟. The Park
also lies within the Cromer Conservation Area and both North Lodge itself and The
Watch House are Listed Buildings. The District Valuer has prepared an
independent valuation of the Park in respect of a potential long leasehold transfer,
which suggests that the Park has a value of £1 (on the basis that the outgoings
exceed the income levels possible given the existing position and facilities/
services provided). This assumes that existing covenants are extant and therefore
there is limited potential for higher value alternative uses in the foreseeable future.
2.2
In the event of a leasehold transfer, the drafting of any agreement should ensure
the Council is placed in a strong position with respect to any enhanced value in the
event that any existing covenants were lifted (i.e. that the Council would benefit
from any uplift in value resulting from alternative future uses).
3.
3.1
Asset Transfer
North Lodge Park provides a open public green space for visitors and residents of
Cromer covering 3.2 acres to the east of the centre and over-looking the iconic
Cromer Pier. It has been a public open space and parkland since 1920 and
became a local authority owned and managed asset in 1974 following NNDC
having been established under the powers of the Local Government Act 1972.
Within the Park is North Lodge itself, a building that was transferred by NNDC to
Cromer Town Council in 2005 and is a separate facility from the Parkland
(currently used as offices for the Town Council and other private businesses).
There are two further undertakings that lease buildings within the Park from the
District Council and these are the Seaview Playgroup and a small Café set near
the public boating lake to the west side of the Park.
3.2
The Park has been the focus of various proposals over the last five years to seek
ways in which it can continue to provide an important part of the visitor experience
of Cromer, whilst reducing on-going revenue expenditure on the grounds facilities
and smaller structures (including two shelters, a bandstand and public toilets).
However, the current position is that there is not an agreed basis to take forward
the proposed changes to Park infrastructure, current services provided or on-going
maintenance provision.
3.3
Cromer Town Council has presented the Council with a business case that has
been approved by the Town Council‟s Full Council meeting on 9 December 2013.
The paper provided a financial projection of both the Town Council‟s forecast for
expenditure and income for both managing and maintaining the Park over the next
five years. The Town Council‟s proposed plan is to meet on-going costs through
114
local income, primarily supported by finance raised through the local precept,
maintenance savings and external funding that is available to local community and
voluntary sectors as well as parish and town councils. The North Lodge Park
Working Group have discussed the proposed savings and were informed that the
Town Council would approach the District Council with a more formal proposal
after agreement had been reached by the Town Council over the decision to
request asset transfer of the Park.
3.4
The 2012 District Council Community Asset Transfer Policy requires that
Expressions of Interest to seek the transfer of a Council asset are both robust and
supported by a business case that sets out the future viability under alternative
ownership, post transfer of the asset. Following the business case being presented
to the Council, the decision of the Council, as set out in section 1.4 of the Policy,
will be based on a choice between three distinct responses, these are:
Maintaining the status quo;
Commercial disposal on the open market;
Seeking the service and community benefits generated by a decision to transfer
an asset to a Third Sector Organisation* (Community Asset Transfer)
* Third Sector Organisation for the purposes of the Community Asset transfer
Policy includes Parish and Town Councils.
3.5
It is the third response that is being put forward within the parameters of the
Council‟s Community Asset Transfer Policy. The assessment that will need to be
made from the request to transfer the Park may be further addressed by
understanding the benefits to the Council, the Town Council and the future
community use that may be derived from the asset transfer of the Park. This
assessment is contained within the Council‟s Asset Transfer Policy (section 3.2) as
to whether community management and ownership could deliver:
• benefits to the local community; e.g. closer association and influence over the
management of the facility making it more responsive to local needs with
reduced overhead running costs (enabling fees and charges to be kept
relatively low) ;
• greater use of the facility with the potential to increase new social and economic
opportunities for communities that extend their capacity to support localities and
organisations where they live and improved health and other wellbeing
outcomes for the community.
• benefits to the Council and other public sector service providers; e.g. improved
levels of volunteering, civic participation, and engagement in positive activities
in the area; reduced financial implications for the Council, including staff and
asset overhead costs and business rates.
• benefits for the organisation taking ownership; both financial and non-financial;
e.g. charitable tax exemptions, improved access to funding opportunities at
local, regional and national levels for both capital and revenue based support;
accessible staff and/or volunteer learning and development opportunities as
part of a career path; building partnership with other organizations and users to
promote economic development and social enterprise.
115
3.6
On assessment of the proposal put forward by Cromer Town Council requesting
transfer of North Lodge Park this would provide the following alignment to the
benefits as outlined above these are:
Cromer Town Council already has a close relationship with the Park and
potentially the capacity to develop that relationship further, through having their
existing offices and Chamber at North Lodge, therefore providing opportunities
to both oversee the management and maintenance of the Park and develop a
range of compatible income generating activities and related savings to running
costs.
The Town Council has put forward proposals to undertake improvements that
could
realise greater social, environmental and economic opportunities
including the development of events and services that are linked closely to both
local needs and demand and offer future roles for the community in the
development of those activities, events and services.
The medium to long-term benefits for the District Council are based on the
reduced levels of revenue expenditure that is currently committed to the
management and maintenance of the Park (set against the proposed lump sum
of £150,000 capital provided as an upfront “dowry” to the Town Council for the
short-term management and maintenance costs.
(The proposal to fund the one-off costs from the 2nd homes Council Tax reserve
will ensure that any savings are accrued from day one of the asset transfer. The
annual savings are made up of a number of small budgets with the most
significant element being in relation to the grounds maintenance).
The proposed transfer fulfils the Council‟s corporate policy objectives to
“enhance the capacity of town and parish councils to take on more control of
assets and services in support of their communities”.
The final aspect of asset transfer may be found in the opportunities that exist for
income generation through external funding streams aimed more at the
community/voluntary sectors as well as town and parish councils that could
offer future investment possibilities in both the park infrastructure and the quality
of the services, activities and events that could be delivered more locally. These
opportunities were detailed in the Aspinal Verdi report that had been
commissioned jointly by the District and Town Council.
4.
Conclusion
4.1
This report has outlined the current reasons for recommending to Cabinet to grant
delegated authority to undertake the asset transfer of North Lodge Park to Cromer
Town Council under the Community Asset Transfer process. The report has
highlighted previous developments that have affected the ownership, management
and maintenance of the Park that have led up to the recent period of consultation
and ultimately to a proposal to transfer the park from the Council to Cromer Town
Council. The report has detailed the approach that has been adopted and how the
recommendations on asset transfer is fulfilling the current localism agenda and the
NNDC Corporate Plan objective of “enabling town and parish councils to take on
more control of assets and services in support of their own communities”. The Park
has little value and very limited potential for generating additional income from
either changes of use or development. It has been seen that very limited income
116
has thus far been generated from the open areas of the Park and the buildings and
structures would appear to offer little scope to provide any significant income. In
the hands of the Town Council, however, the opportunity for grant funding
(especially for capital investment) is likely to be far greater and they will be in a
more advantageous position to make use of the park in conjunction with North
Lodge (building) itself.
5.
Implications and Risks
5.1
This report draws upon current and previous information and assessment available
to the Council provided both through the report produced by Aspinal Verdi under
the guidance of the North Lodge Working Group together with the assessment of
the request made by Cromer Town Council to seek the transfer of the Park. A
main recommendation of the report requires that officers from the Council‟s Asset
and Legal teams provide in-depth property and legal advice in support of the Chief
Executive to oversee the Heads of Terms for the asset transfer, thus providing the
legal parameters and protection of the Council‟s current interests and future
liabilities concerning the leasehold transfer of the Park and auxiliary assets.
Therefore the report does not expand fully nor set out in depth the legal
implications or risks of this approach considering that there are detailed legal
aspects that will require agreement under the Heads of Terms that will be bound
by existing and future covenants governing the protection of the Park as public
open space.
6
Financial Implications and Risks
6.1
The financial implications and risks associated with asset transfer are highlighted
by experience of recent transfer of Council assets to a third sector organisation.
The transfer of Wells Maltings to the newly formed Wells Maltings Trust required
various revenue and capital funds from the Council in order to deliver the initial
stages of the transfer and delivery of facilities management, as well as structural
improvements in order to enhance the opportunities for the Trust to generate
income to employ staff and meet on-going commitments of managing the site and
buildings. North Lodge Park asset transfer is recommended as a long leasehold
transfer on a similar basis; however, the implications of retaining ownership and
therefore providing a long-term lease are mitigated by providing a “dowry” up front
to deliver the initial period of expenditure on the management of the Park. After
this the Town Council‟s capacity to raise finance via the local precept eliminates
the need (when compared to the Wells Maltings) to seek sums for on-going
funding to deliver the management and maintenance of the site. Therefore,
although the Council will remain in ownership of North Lodge Park after the
transfer has been agreed, the long-term basis of the leasehold transfer will not
include any longer-term financial commitments that might arise with the
management and maintenance of the property.
6.2
The Park has provided minimal income generation for the Council and therefore
this factor is not considered to be a major risk on consideration of any future loss
of potential income that could be derived from the ownership of the Park.
6.3
Sufficient funds exist in the „2nd homes Council Tax reserve budget to fund the
proposed „dowry‟ and miscellaneous other costs associated with the proposed
asset transfer
117
7.
7.1
Sustainability
There are no issues pertaining to sustainability considering that the report and
recommendations are supportive of the long-term role that the Park will have as a
community asset and green space that serves the Town, community and visitors.
8.
8.1
Equality and Diversity
There are no identified issues relating to equality and diversity that can be
attributed to the recommendations of the report.
9.
9.1
Section 17 Crime and Disorder considerations
There are no further crime and disorder considerations that can be attributed to the
recommendations of the report
118