Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
23 October 2014
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 November 2014 at 10.00am
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
Anyone attending this meeting may take photographs, film or audio-record the proceedings and
report on the meeting. Anyone wishing to do so should inform the Chairman. If you are a
member of the public and you wish to speak on an item on the agenda, please be aware that
you may be filmed or photographed.
Sheila Oxtoby
Chief Executive
To: Mr B Cabbell-Manners, Mr T FitzPatrick, Mrs A Fitch-Tillett, Mr J Lee, Mr W Northam,
Mr R Oliver, Mr G Williams, 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 06
October 2014.
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.
MEMBERS QUESTIONS
To receive oral questions from Members, if any.
7.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR RECONSIDERATION
(attached – p.10)
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.
At the meeting of the Overview and Scrutiny Committee held on 15th October 2014,
following consideration of a call-in of Agenda item 10, Cabinet 6th October – „Car Park
Order – Results of Consultation Process‟ by Councillor E Seward, the following
recommendations were made to Cabinet:
RESOLVED:
To recommend that Cabinet undertakes an urgent review of all the options open to the
Council for the Mundesley Road car park site is undertaken and for an option to be
pursued which is in the best interests of the Council and the town of North Walsham
The full wording of Councillor Seward’s call-in request is attached - together with the
draft minute from the Overview and Scrutiny Committee meeting at page 10
8.
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
9.
PLANNING POLICY AND BUILT HERITAGE WORKING PARTY
(attached – p. 13)
To receive the draft minutes of the Planning Policy and Built Heritage Working Party
meeting held on 22 September 2014. The following recommendation was made to
Cabinet:
RECOMMENDATION to Cabinet:
10.
1.
That the Local Plan review should commence in May 2015.
2.
That a detailed Project Plan, including detailed budgetary information, is
prepared for consideration by the Working Party
CONSTITUTION WORKING PARTY
RECOMMENDATION to Cabinet:
That a Housing Panel be established, comprising of three Cabinet Members to consider
Housing Appeals.
11.
BUDGET MONITORING REPORT 2014/15 – PERIOD 6
(page 17)
(Appendix A – p.29) (Appendix B – p. 30) (Appendix C – p.33) (Appendix D –p.41)
Summary:
This report summarises the budget monitoring position for
the revenue account and capital programme to the end of
September 2014.
Options
considered:
Conclusions:
Not applicable
Recommendations:
Cabinet
Decision
The overall position at the end of September 2014 shows a
year to date variance of £1,382,089 to date for the current
financial year on the revenue account, this is currently
expected to deliver a forecast full year underspend of
£98,000.
It is recommended that:
1) Cabinet note the contents of the report and the current
budget monitoring position.
2) Cabinet note the contents of the Revised Capital
Appendix C.
3) Cabinet approves an increase of £55,000 to the
Enforcement board Reserve, funded from the in-year
underspend.
4) Cabinet are requested to approve the inclusion of
capital budgets in the 2014/15 Capital Programme:
 Sheringham West Prom provision of grey water tank at
£28,000, to be funded from capital resources.
 Pier Roof full Repair/Refurbishment at a cost of
£78,000, to be funded initially from capital resources.
 Pier Public Conveniences refurbishment at a cost of
£45,000 to be funded from capital resources.
Reasons for
Recommendations:
To update Members on the current budget monitoring
position for the Council, and make all amendments to the
capital budget as appropriate.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
System budget monitoring reports
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
12.
Councillor W Northam
All
Malcolm Fry
01263 516037
malcolm.fry@north-norfolk.gov.uk
HALF YEARLY TREASURY MANAGEMENT REPORT FOR 2014/15
(page 42)
(Appendix E – p.48) (Appendix F – p.50)
Summary:
This report provides information on the Treasury
Management activities undertaken in the first six months
of 2014/15.
Options considered:
It is a requirement of the Chartered Institute of Public
Finance & Accountancy‟s (CIPFA) Code of Practice for
Treasury Management that this mid-year review is
prepared and presented to Full Council.
Conclusions:
That the treasury activities for the year have been
carried out in accordance with the CIPFA Code and the
Council‟s Treasury Strategy.
Recommendations:
Council Decision
That the Council be asked to RESOLVE that the Half
Yearly Treasury Management Report for 2014/15 is
approved including amendments to the Treasury
Management Strategy Statement for 2014/15.
Reasons for
Recommendations:
The recommendation is being made in compliance with
the CIPFA Code.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Arlingclose Report Template – Semi-Annual Treasury Report 2014/15
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
Councillor W Northam
All
Tony Brown
01263 516126
tony.brown@north-norfolk.gov.uk
13.
(page 52)
MANAGING PERFORMANCE Q2 2014/15
(Appendix G – separate document)
Summary:
The purpose of this report is to give a second quarter progress
report of the performance of the Council. More specifically it
reports delivery of the Annual Action Plan 2014/15 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:
Cabinet
Decision
1. The majority of the 56 activities in the Annual Action Plan
2014/15 are on track (44). Performance is being closely
monitored, particularly for the activities where issues or
problems have been identified (six). Some activities have
already been completed successfully (three) and a small
number are yet to start (three).
2. Of the 16 performance indicators where a target has been
set seven are on or above target, two close to target and
seven below target. Where assessment against the same
period last year is possible (20 indicators), 12 are
improving, three are static and five are worsening.
3. The delivery of the Annual Action Plan is progressing
according to plan but there are a very few performance
issues in achieving targets and achieving improvement.
The issues involved, and action being taken in each case
are detailed in the document „Managing Performance
Quarter 2 2014/15‟ attached as Appendix G.
Recommendation:
That Cabinet notes this report, welcomes the progress being
made and endorses the actions laid out in Appendix G being
taken by management where there are areas of concern.
Reasons for
To ensure the objectives of the Council are achieved.
Recommendations:
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
Councillor T Fitzpatrick
All
Helen Thomas
01263 516214
helen.thomas@north-norfolk.gov.uk
14.
4 MARKET STREET NORTH WALSHAM
(page 55)
(Exempt Appendix 1 – p.68) (Exempt Appendix 2 – p.78)
* Exempt Appendix not for publication by virtue of paragraph 3 of Part I of
Schedule 12A (as amended) of the Local Government Act 1972
Summary:
This property has been a long term eyesore on a prominent site
in the centre of North Walsham.
Two years ago, Cabinet approved a range of property related
actions in the hope of enabling development, but this
development has not been forthcoming.
Following enforcement action, the owner demolished the untidy
buildings and the site is now hoarded.
This report details the options now available to the Council and
recommends acquiring the site by way of the option agreement
previously approved.
Options considered:
It is possible for the site to be left hoarded but this is considered
inappropriate given the prominence of the site in the centre of
North Walsham.
The option of Compulsory Purchase has also been considered
and rejected due to legal complexity and therefore cost with no
likely savings
Conclusions:
There is no doubt that the site is in need of renovation and given
the unlikely development potential, it is considered that acquiring
the site is the best option. Given the uncertainty of the open
market value of the site, further delegation is sought in relation to
purchase.
Recommendations: That Cabinet approves the acquisition of the site originally
comprising 4 and 4A Market Street by way of implementing
the Option Agreement previously approved.
Cabinet Decision
That delegated authority to proceed with the Option
Agreement is given to the Chief Executive after discussion
with the Portfolio member for Property Assets.
It is recommended that subject to the Council acquiring the
site that a capital budget of £30,000 is included in the capital
programme.
That this acquisition and development is funded from the
existing capital budget for North Walsham regeneration and
if necessary, from capital receipts.
Reasons for
Recommendations:
To provide delegation and funding for the acquisition and
improvement of the site.
Cabinet member(s):
Ward member(s)
Contact Officers,
telephone
and e-mail:
Councillor R Oliver
North Walsham (all wards)
N Baker
01263 516221
nick.baker@north-norfolk.gov.uk
15.
COUNCIL OFFICES, NEW ROAD, NORTH WALSHAM – CONSIDERATION OF
OFFER MADE FOR PREMISES BY J D WETHERSPOON
(page 59)
(Appendix H – p. 66) (Appendix I - p. 67) (Exempt Appendix 3 – p.81)
* Exempt Appendix not for publication by virtue of paragraph 3 of Part I of
Schedule 12A (as amended) of the Local Government Act 1972
Summary:
Conclusions:
This report details a conditional offer made to the District
Council for the council office premises at New Road, North
Walsham by JD Wetherspoon and considers the issues
involved for the Council if it was to be minded to accept the
offer in terms of supporting existing tenants of the premises,
including North Walsham Town Council, find and relocate to
alternative premises in the town.
The plans announced by JD Wetherspoon to take forward an
investment in North Walsham are regarded as a positive
development which it is believed will broaden the appeal of the
town amongst local people and visitors to the wider area, and
support the creation of up to 50 new jobs in the town.
If the Cabinet is minded to agree to the sale of its North
Walsham council offices premises to accommodate the
Wetherspoon plans, it will be necessary for the Council to
consider the support it is able to provide to existing tenants of
the building find and relocate to alternative premises in the
town.
Recommendations:
Cabinet Decision
That delegated authority be provided to the Chief Executive in
consultation with the Cabinet Portfolio holder for Assets, that:a) Subject to being satisfied that JD Wetherspoon has
given reasonable consideration to other potential
investment opportunities in the town, negotiate the best
financial deal with JD Wetherspoon regarding their
interest in purchasing the North Walsham council
offices and site and,
b)
Cabinet member(s):
Ward member(s)
Contact Officers,
telephone
and e-mail:
If, in agreeing in principle to take forward discussions
with JD Wetherspoon about accommodating their
proposed investment in the North Walsham council
offices, take forward discussions with existing
occupiers of the council offices building so as to
facilitate the unencumbered freehold sale of the asset
to JD Wetherspoon.
Councillor R Oliver
North Walsham East, North & West
S Blatch
01263 516232
steve.blatch@north-norfolk.gov.uk
16.
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.”
17.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 06 October 2014 at the Council
Offices, Holt Road, Cromer at 10.00am.
Mrs A Fitch-Tillett
Mr B Cabbell Manners
Mr T FitzPatrick
Members Present:
Also attending:
Officers in
Attendance:
44.
Mrs L Brettle
Mrs A Claussen-Reynolds
Mrs A Moore
Mr P W Moore
Mr W Northam
Mr R Oliver
Mr R Reynolds
Mr R Shepherd
Mr B Smith
Mrs V Uprichard
Mr D Young
The Chief Executive, the Corporate Directors, the Head of Finance,
the Head of Assets and Leisure, the Head of Economic Development
and Communities, the Head of Business Transformation, the Team
Leader – Strategy and the Democratic Services Team Leader
APOLOGIES FOR ABSENCE
Mr J Lee, Mr G Williams and Mr R Wright.
45.
MINUTES
The minutes of the meeting held on 8th September 2014 were approved as a correct
record and signed by the Chairman
46.
PUBLIC QUESTIONS
None received
47.
ITEMS OF URGENT BUSINESS
None received
48.
DECLARATIONS OF INTEREST
Mr T FitzPatrick declared a non-pecuniary interest relating to Agenda Item 16:
Egmere Business Zone Project – as local ward member.
Cabinet
1
06 October 2014
49.
MEMBER QUESTIONS
None received
50.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR
RECONSIDERATION
None
51.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
52.
INTERNAL AUDIT CONTRACT
Mr W Northam, Portfolio Holder for Finance introduced this item. He explained that
the procurement process for the new contract was underway and to ensure that
timescales could be met, delegated authority was sought for the award of the
contract and the provision of the management service.
It was proposed by Mr W Northam, seconded by Mrs A Fitch-Tillett and
RESOLVED
To delegate the decision regarding the provision of Internal Audit Services to the
Head of Finance in consultation with the Portfolio Holder for Finance.
Reason for the Decision:
To ensure that the procurement timescales for award of the Internal Audit Contract
can be met.
53.
CAR PARK ORDER – RESULTS OF CONSULTATION PROCESS
The Portfolio Holder for Assets introduced this item. He explained that at the request
of Cabinet, a report had been prepared in June 2014 covering car park management
and pricing with a view to supporting local businesses. Cabinet recommended the
following:
a)
b)
c)
removal of the evening charge from 6:00 pm
allowing £5 (24hr) pay and display tickets to be transferable to other P&D car
parks
to delegate authority to the Chief Executive Officer, in consultation with the
Portfolio Holder for Assets and the Section 151 Officer, to agree the free
parking arrangements
Members also requested that Mundesley Road car park in North Walsham was
included within the order as a pay and display car park following the decision that the
Council would no longer operate free car parks. The legal process of preparing and
advertising the variation to the 2012 Car Park Order (CPO) then took place. The
closing date for receipt of objections in relation to the CPO consultation process was
1 September 2014 and 6 objections were received. All of these related to the
Mundesley Road car park. The Portfolio Holder went onto explain that the Council
Cabinet
2
06 October 2014
was required, as part of the CPO consultation process, to consider any objections
received. He felt that it would be useful to outline the key issues raised together with
a response:
a) A local resident had expressed concerns about charges being levied at the
Midland Road and Mundesley Road car parks. The Portfolio Holder explained
that both car parks had been offered to North Walsham Town Council to take
over. Midland Road car park was currently being operated by the Town
Council on a free basis. He went on to say that despite lengthy negotiations,
terms could not be agreed with the town council in relation to Mundesley
Road. The same resident had also raised concerns regarding illegal parking
on neighbouring roads. The Portfolio Holder said that the County Council, as
highway authority, were statutory consultees and had raised no objections.
b) Mr E Seward, local member for North Walsham North raised the following
concerns:
 North Walsham was different to other coastal and market towns and
needed support, such as free parking to attract customers. The
Portfolio Holder said that the Council had taken the decision not to
provide free parking and the car park had been offered to the town
council to operate on a free basis but they had rejected that option.
 The town centre had significantly less designated free parking than
other district towns. The Portfolio Holder replied that the County
Coucnil had not provided information to confirm this, however, given
that the high street was not very long it was likely that proportionally
there was not much difference to other towns.
 No survey had been undertaken to determine who used the car park
and if they would be prepared to pay. The Portfolio Holder said that
the decision had been taken not to provide free parking and therefore
a survey was not appropriate.
 Mundesley Road had an unmade surface and if people were required
to pay they would choose one of the neighbouring surfaced car parks.
The Portfolio Holder explained that the proposal was to improve the
surface of this car park.
 There was no proper estimate regarding the forecasted income from
the Mundesley Road car park and it was likely that there would be no
net income once maintenance costs were taken into account. The
Portfolio Holder replied that there was an estimated £6k of net income
and that annual maintenance costs would be much lower if the site
was resurfaced as proposed.
 Charging would have a negative impact on residents in the vicinity as
cars would choose to park on the street. The Portfolio Holder referred
to his previous response regarding consultation with the highways
authority who had raised no objections. He reiterated that any
enforcement issues would be addressed as required.
c) Mrs A Moore commented that due to the temporary closure of Lidl, the free
parking had been reduced and that for the sake of local businesses,
Mundesley Riad car park should remain free until Lidl‟s car park was available
again. The Portfolio Holder acknowledged the temporary closure of the Lidl
car park but said that there were alternative on-street options and the Lidl car
park was restricted to 2 hours.
d) The Chamber for Business raised several of the issues raised by Councillor
Seward. In addition they stated that the introduction of a charge would force
businesses to close thus lowering the Council‟s revenues. The Portfolio
Holder stated that there was no evidence to suggest that the introduction of a
charge would put people out of business.
Cabinet
3
06 October 2014
e) Mr N Lloyd, local member for North Walsham North, raised two concerns. He
said that the introduction of a tariff for Mundesley Road was rushed and more
time should have been allowed for consultation. The Portfolio Holder
responded that the statutory process had been followed regarding timescales
and the possibility of changing Mundesley Road from a free car park had
been under discussion for almost two years. In response to a further concern
from Mr Lloyd that local businesses would suffer if charges were introduced,
the Portfolio Holder said that there were a lot of businesses in the town that
did not have the benefit of a free public car park nearby.
f) North Walsham Town Council raised several concerns. Three of them had
been covered previously and in response to the disappointment expressed
that further discussions had not been held with the town council prior to
issuing the consultation, the Portfolio Holder said that the town council had
made it clear that they did not wish to take over the operation of Mundesley
Road. He went onto say that the consultation process had allowed for the
town council to comment further on the proposed changes. He responded to
their final objection that the notices advertising the changes were small and at
a low height by agreeing to take this into account for future advertisements.
The Portfolio Holder then informed members that Mr Seward had raised further
issues via email. Some had already been addressed but the Portfolio Holder
responded to three further objections:
1. The Council‟s own car park review had shown low income from North
Walsham‟s car parks and the introduction of charging at Mundesley Road
would not alter this. The Portfolio Holder reiterated that making the car park
„pay and display‟ would bring it into line with all of the other Council car parks.
2. Estimated net income is £6k with a £70,000 investment which was a poor
payback. The Portfolio Holder said the focus was on service provision not
payback. The surface had been highlighted as an issue by several
respondents.
3. It would be better to continue to repair the current surface at a cost of £1-2k
per year and let the Town Council contribute without taking on ownership
liabilities. The Portfolio Holder replied that this option could be considered but
it would need to be on a similar basis to Midland Road if there was to be free
parking. He added that the car park had already been free for longer than
expected due to the long negotiations with the town council.
Mr W Northam commented as the previous Portfolio Holder for Assets. He said that
he had been involved in meetings with the town council and the Chamber of Trade
and they had both indicated that if they took over the ownership of the Mundesley
Road car park they intended to introduce charging. He went on to say that the
Council had previously built a wall to protect neighbouring properties from dust and
this indicated that they were willing to listen to concerns and invest in the car park.
It was proposed by Mr R Oliver, seconded by Mr W Northam and
RESOLVED
a) To make the draft order without modification so that the order comes into effect
at midnight on 30 October 2014.
b) That re-surfacing works (Gridforce – option 2) are undertaken on Mundesley
Road car park in North Walsham and a capital budget of £70,000 (funded by
capital receipts) is approved to undertake these works.
Cabinet
4
06 October 2014
Reasons for the decision:
The Council was required, as part of the CPO consultation process, to consider any
objections received. The objections received were all in relation to the introduction of
pay and display charges on Mundesley Road car park in North Walsham. The
recommendations would allow the implementation of the removal of the evening
charges and the introduction of free 30 minute parking bays. Resurfacing Mundesley
Road car park would improve the parking facilities available within North Walsham as
the current unmade surface suffered badly during periods of adverse weather
conditions.
54.
TOURIST INFORMATION CENTRE AND STATION APPROACH TOILETS,
SHERINGHAM – EXPRESSION OF INTEREST FROM NORTH NORFOLK
RAILWAY
The Portfolio Holder for Assets introduced this item. He explained that an Expression
of Interest (EoI) had been received from North Norfolk Railway PLC (NNR) , as part
of a wider project, to provide and manage the Sheringham Tourist Information Centre
(TIC) and new public toilets at Station Approach, Sheringham. As the Expression of
Interest met the criteria laid down in the Localism Act 2011, the Council was required
to consider it and to allow other potential providers to also make an EoI if they felt
they could provide the service. It was proposed this was done by way of a tender
process.
The Portfolio Holder concluded by informing members that there was an additional
recommendation:
That the approval of the Tender specification will be delegated to the relevant
Corporate Director and s151 officer, after discussion with the Portfolio members for
Tourism, Customer Services and Property Assets.
It was proposed by Mr R Oliver, seconded by Mrs A Fitch-Tillett and
RESOLVED
1. To approve subjecting the proposal from North Norfolk Railway, to provide and
manage the Tourist Information Centre and Public Conveniences at Station
Approach, Sheringham, to a tender process by which to compare any alternative
bids.
2. That the approval of the Tender specification will be delegated to the relevant
Corporate Director and s151 officer, after discussion with the Portfolio members
for Tourism, Customer Services and Property Assets.
3. That following the Tender process a future report is prepared by officers to make
recommendations for the provision of these services.
Reason for the decision:
To provide a fair comparison of the EoI, as required by the provisions of the Localism
Act.
To provide for an informed future decision on the provision and management of these
services.
.
Cabinet
5
06 October 2014
55.
EMPTY HOMES POLICY
Mr R Oliver, Portfolio Holder for Housing introduced this item. He explained that the
Empty Homes Policy had been reviewed and updated to reflect changes in
operational practice. It provided a framework for work to bring empty homes in North
Norfolk back into use and sets out:
 why empty homes should be brought back into use
 the approaches which will be used to bring empty properties back into use,
including what advice and support will be offered and when and what types of
enforcement action can be used
He concluded by saying that the Council had made significant progress in reducing
the number of empty homes across the District and that current figure of long-term
empty homes was 469, compared to 887 at July 2012.
It was proposed by Mr R Oliver, seconded by Mr W Northam and
RESOLVED to
1.
2.
3.
To note the progress made in reducing the number of Long Term Empty
homes.
To approve the revised Empty Homes Policy
To receives a report regarding performance in this area on a six monthly
basis.
Reasons for the decision:
To ensure Cabinet are informed to allow appropriate decision making in this area of
work.
To provide a framework document for future working with reduced risk of challenge.
To ensure proper governance of a key work area
56.
SHERINGHAM GANGWAY REFURBISHMENT FLAG PROJECT FOR INCLUSION
INTO THE CAPITAL PROGRAMME
Mrs A Fitch-Tillett, Portfolio Holder for Coastal Issues, introduced this item. She
explained that the Cabinet meeting of November 2013 approved the use of £40,000
of funds from the sale of Lockerbie Flats to be used to draw drown match funding
from the Marine Management Organisation (MMO) Fisheries Local Action Group
(FLAG) project for the refurbishment of the Sheringham fisherman‟s gangway. This
report provided further budget figures to enable the scheme to be included in the
NNDC capital programme
It was proposed by Mrs A Fitch-Tillett, seconded by Mr R Oliver and
RESOLVED
To include the Sheringham Gangway Refurbishment Scheme into the capital
programme with a budget of £115,000, comprising of £40,000 from the receipt from
the sale of Lockerbie Flats, as agreed at the Cabinet meeting of 4 November 2013
and the remaining £75,000 from MMO grant.
Cabinet
6
06 October 2014
Reason for the decision:
To enable the necessary capital budget to be created to allow award of a construction
contract.
57.
SHERINGHAM WEST SEAWALL IMPROVEMENT COAST PROTECTION
SCHEME REVISED FUNDING APPROVAL
Mrs A Fitch-Tillett, Portfolio Holder for Coastal Issues, introduced this item. She
explained that the Council had secured an opportunity to access substantial funds
from the Environment Agency in order to undertake the Sheringham West Seawall
Improvement Coast Protection Scheme. She said that this was a good example of
effective shared working and by amending the capital programme to in recognition of
the anticipated grant, revenue funding could then be freed up to cover the cost of
other projects along the coast.
The Portfolio Holder concluded by thanking the Coastal team for their hard work in
negotiating the revised funding proposal with the County Council and the
Environment Agency.
It was proposed by Mrs A Fitch-Tillett, seconded by Mr R Oliver and
RESOLVED to
a) Update the 2014/15 capital programme budget for the Sheringham West Sea
Wall Improvement scheme to £804,000, contingent upon Environment Agency
grant approval. To be financed from £419,000 FCERM Grant in Aid funding,
£70,000 Local Levy contribution, the existing £215,000 allocated capital
programme funding and subject to recommendation b, £100,000 from the
allocated revenue programme.
b) Approve the revenue contribution to capital of £100,000 from the Coast
protection revenue maintenance programme.
c) Delegate authority to the Head of Economic & Community Development for the
award of the construction contract in consultation with the Coastal Management
portfolio holder.
Reason for the decision:
To enable the timely development and implementation of the coast protection project.
58.
NEW PRINT SOLUTION – MULIT-FUNCTION DEVICES
The Portfolio Holder for Information Systems introduced this item. He explained that
the report sought the release of funding for the procurement of a standardised print
solution for the Council as previously identified within the Business Transformation
Programme. He went onto say that the cost of printing within the council was high
because of the variety of devices being used. By using standard multi-function
devises significant savings could be made. He concluded by saying that changes to
the services and structure of the Council over the next few years would necessitate a
flexible printing arrangement which could be reconfigured and relocated as required.
This was best supported by purchasing the devices rather than leasing them and it
was anticipated that this would result in a financial saving of approximately £14k a
year.
Cabinet
7
06 October 2014
RESOLVED
To approve the release of £60,000 from the previously approved Business
Transformation Programme funding to allow the procurement of appropriate devices,
and related software.
To delegate authority to the relevant Corporate Director and s151 Officer in
consultation with the Portfolio Holder to procure the goods and services required to
implement the new printing solution.
Reasons for the decision:
To provide the technology and reporting tools to reduce printing costs.
To enhance the scanning capability of the Council. This will help to reduce the
volume of paper used by the council and drive business efficiency.
To provide the baseline technology to support delivery of the efficiencies and
improvements resulting from the Business Process Re-Engineering which will follow.
59.
EGMERE BUSINESS ZONE PROJECT
In the absence of the Portfolio Holder. The Leader Mr T FitzPatrick introduced this
item. He said that the report considered how the District Council could take a lead
role in facilitating development of land covered by the Egmere Local Development
Order through opening up a small area of land through the provision of road and
utility infrastructure to provide „development ready‟ sites for development by third
parties. He went onto say that it was proposed that the Council took a head lease in
respect of 1.65 hectares of land and, if successful in attracting external sources of
finance, took forward a programme of works to provide road and utility services into
the land. It was considered that the site with the greatest potential to accommodate
this kind of investment was the filed to the north of Edgar Road, owned by the
Walsingham Estate.
Mr FitzPatrick explained that initial, without prejudice, discussions had commenced
with the Walsingham Estate to explore whether the District Council might enter into a
lease, initially for a period of 25 years, with the Estate for four acres of land so as to
take forward a first phase of development.
Mr R Reynolds, local member for Fakenham North, said that there had been an
industrial site at Egmere since war time. It was easily accessible from both
Fakenham and Wells and could boost job provision for both towns.
It was proposed by Mr T Fitzpatrick, seconded by Mr R Oliver and
RESOLVED to
Agree that the District Council should lead a project proposal to open up a minimum
of 1.65 hectares of land within the area covered by the Egmere Local Development
Order subject to securing the necessary external funds to deliver the project.
In agreeing the above, Cabinet authorises officers to:

Cabinet
Obtain cost estimates for the provision of utility services into the proposed Phase
1 development area
Pursue applications for external sources of finance to deliver a Phase 1 scheme
8
06 October 2014


Conclude discussions with the Walsingham Estate regarding the Council taking a
head lease on the land which reflects the risks to the Council in opening up the
land for development and, as and when plots are developed by third party
businesses, which recognises Walsingham Estate‟s continued ownership of the
land through some form of income-share arrangement.
Promote investment opportunities at Egmere to businesses seeking to invest in
this part of the district
Reasons for the decision:
To facilitate the development of land covered by the Egmere Local Development Order
through opening up a small area of land through the provision of road and utility
infrastructure so as to provide “development ready” sites for development by third parties
The Meeting closed at 10.37am
_______________
Chairman
Cabinet
9
9
06 October 2014
Call-in of the following decision made at the Cabinet Meeting of 6th October:
ITEM 10: CAR PARK ORDER – RESULTS OF CONSULTATION PROCESS
DECISION
RESOLVED:
a) That the Cabinet makes the draft order without modification so that the order
comes into effect at midnight on 30 October 2014.
b) That re-surfacing works (Gridforce – option 2) are undertaken on Mundesley
Road car park in North Walsham and a capital budget of £70,000
(funded by capital receipts) is approved to undertake these works.
Details of the call-in request:
Councillor E Seward states:
‘In accordance with the Council’s Call In Procedure I wish as a member of the Overview &
Scrutiny Committee and as a local member for the area where the Mundesley RD car park is
located to call in the Cabinet Recommendation entitled Item 10 Car Parking Order – Results
of Consultation Process - Para B which states ‘That re-surfacing works (Gridforce – option
2) are undertaken on Mundesley RD car park in North Walsham and a capital budget of
£70,000 (funded by capital receipts) is approved to undertake these works’.
My reason for asking for the decision to be called in is that the recommendation is not in the
financial interests of the Council or the interests of the town of North Walsham including the
residents who live/work in the vicinity of the car park.
The alternative course of action that I propose is that an urgent review of all the options open
to the Council for this car park site is undertaken and for an option to be pursued which is in
the best interests of the Council and the town of North Walsham.’
10
Draft Minute – Overview and Scrutiny Committee 15 October 2014
ITEMS OF URGENT BUSINESS
CALL IN – NORTH WALSHAM CAR PARK ON MUNDESLEY ROAD
Mr E Seward spoke on the Cabinet decision to make the Mundesley Road car park in
North Walsham fee paying as a local North Walsham Member.
Mr E Seward said that the reason for the call in was solely related to the proposed
funding of the car park surface. He added that the car park proposal was not supported
by the North Walsham Chamber of Business nor the Town Council.
Mr E Seward explained that the surface of the Mundesley Road car park was
problematic as it had been a tar pit. He said that the negotiations between the district
council and North Walsham Town Council had come to a standstill because the state of
the car park surface meant the town council could not take on the liabilities of ownership
and not that the Town Council had declined to take on the maintenance costs of the car
park in question.
Mr E Seward added that there had been no market research carried out in the usability
of the car park and that £6,000 income for fees would mean that it would take over ten
years to generate the cost of the £70,000 investment. He questioned where the figure of
£6,000 had come from as the car parks in North Walsham had low useage. He added
that the income from North Walsham was static and not profitable and that the three fee
paying car parks only generated 6% of the income for the district council.
Mr E Seward questioned whether investing £70,000 on a car park was the best use of
investment for North Walsham.
Mrs V Gay asked if there was a current figure to decontaminate the site to which the
Corporate Director replied that there wasn’t a current estimate but a historical survey
had been commissioned. The Property Business Manger added that the last figure was
£90,000 and that this was in addition to the £70,000 resurfacing cost.
The Head of Assets and Leisure confirmed that the costs had been assessed taking into
consideration drainage and car park issues as opposed to other possible North
Walsham investments.
Mr R Oliver, Portfolio Holder for Assets addressed the meeting by saying that the
objections had been considered by Cabinet and that discussions surrounding the
Mundesley Road car park had been ongoing for over two years now and during this time
the car park had been free to users.
Mr R Oliver said that primarily the policy was about fairness and that all of the car parks
in the district had been made fee paying by 2011 bar four; the car park at Wells became
fee paying, Fakenham had agreed on a two year lease of their car park to maintain it as
a free car park, with the other two car parks situated in North Walsham. The Town
Council negotiated with the district council and agreed to take on the Midland Road car
park and to maintain it. Mr R Oliver said that the Town Council had rejected offers made
in relation to the Mundesley Road car park and in the negotiation process had remained
free, but at the cost of other tax payers in the district.
Mr R Oliver informed Members that North Walsham and Fakenham had smaller car
parking tariffs as it was recognised that they were not tourist destinations.
11
Draft Minute – Overview and Scrutiny Committee 15 October 2014
Mrs A Claussen-Reynolds said that Fakenham was no different to North Walsham and
that towns should be treated equally. She added that any changes to the policy would
be grossly unfair to the other towns.
Mr P Terrington asked whether Mr E Seward was suggesting whether there was a need
for the Mundesley Road car park and that the call in asked for other options for the land
to be considered.
Mr R Oliver said that the Housing Association had been approached over the feasibility
of building on the site, which in their view, was unable to happen.
Mrs V Gay asked how the site might be used.
Mr P Terrington asked whether there was a need for the car park.
Mr R Oliver responded that at no point had it been suggested that the car park was
removed and that this had not formed part of the discussions.
Mr E Seward questioned whether the payback period of twelve years was good value
for money and that there were other things to spend £70,000 on.
Mr R Oliver informed Members that he would be happy to see a proposal to close the
car park.
It was proposed by Mr E Seward, seconded by Ms V Gay and
RESOLVED
That the Cabinet decision was not in the financial interests of the Council or the interests
of the town of North Walsham including the residents who live/work in the vicinity of the
car park.
Recommended to Cabinet:
That an urgent review of all the options open to the Council of the Mundesley Road car
park site is undertaken and for an option to be pursued which is in the best interests of
the Council and the town of North Walsham.’
12
22 SEPTEMBER 2014
Minutes of a meeting of the PLANNING POLICY & BUILT HERITAGE WORKING PARTY
held in the Council Chamber, Council Offices, Holt Road, Cromer at 10.00 am when there
were present:
Councillors
B Cabbell Manners (Chairman)
Mrs A R Green
Mrs P Grove-Jones
D Young
R Reynolds
P Williams
Officers
Mr M Ashwell – Planning Policy Manager
(21)
APOLOGIES FOR ABSENCE
Apologies absence were received from Councillors Mrs S A Arnold, M J M Baker, N
D Dixon, P W High and Miss B Palmer.
(22)
MINUTES
The Minutes of the meeting held on 19 May 2014 were approved as a correct record
and signed by the Chairman.
(23)
ITEMS OF URGENT BUSINESS
The Chairman stated that there were no items of urgent business which he wished to
bring before the Working Party.
(24)
DECLARATIONS OF INTEREST
No interests were declared.
(25)
DUTY TO CO-OPERATE
The Planning Policy Manager explained that the Regional Spatial Strategy had now
been replaced by the Duty to Co-operate on strategic issues when preparing Local
Plans. This was a formal duty which applied to all public authorities at both Officer
and Member level and would be subject to a legal and soundness test when plans
were examined by an Inspector.
A Working Group of Officers and Members from authorities and other bodies across
Norfolk had been set up to consider the matter.
All local authorities in the County were at different stages of post-2004 plan-making,
with North Norfolk being the only authority with a fully adopted Core Strategy.
However, it was likely that each authority would be reviewing their plan documents
for the period 2016-2035. The Working Party had developed a schedule which set
out a number of elements where co-operation could be desirable and a timetable was
being considered.
Planning Policy & Built Heritage Working Party
1
13
22 September 2014
A Member Forum had also been set up, which had no executive powers but would
report to each Authority’s Executive. Reports were likely to come through the
Planning Policy & Built Heritage Working Party for consideration prior to submission
to Cabinet.
The Working Party noted the report.
(26)
STRATEGIC HOUSING MARKET ASSESSMENT
The Planning Policy Manager stated that a Strategic Housing Market Assessment
(SHMA) had been commissioned by five of the Norfolk District Councils. The
preparation of a SHMA was a requirement of the National Planning Policy
Framework, and formed part of the evidence which would inform the review of the
Local Plan in terms of housing allocations.
The Planning Policy Manager explained that it was anticipated that housing delivery
would be back on target during 2018. Development of the large allocations was likely
to take place over the next 3 to 5 years, following which housing delivery would
reduce. It was therefore necessary to review the Local Plan to allocate more sites.
Councillor P Williams requested a graph showing the developments which had been
commenced and the development which was known to be coming forward. The
Planning Policy Manager stated that he would prepare a detailed forecast for the
allocated sites.
The Planning Policy Manager presented the emerging findings from the Strategic
Housing Market Assessment (SHMA).
The Working Party raised concerns regarding the functional relationship between
settlements as assessed by the consultants. Members considered that there were
omissions with regard to commuter links between the towns and Norwich, and that
some of the links shown did not reflect the true picture. The Planning Policy
Manager stated these were preliminary findings and that there would be more clarity
as to the basis of the findings when the final document was published.
The Working Party also questioned the housing market area boundaries. Members
considered that Cromer, Sheringham and Holt were better connected to Norwich
than North Walsham, and that Fakenham was an important commuter town for
Norwich, Kings Lynn and Dereham.
The Planning Policy Manager explained that evidence had shown that many people
commuted from North Walsham to Norwich. The diagrams in the presentation
reflected the evidence, rather than the perception of what the evidence should show.
The Planning Policy Manager stated that the demographic projections had been
made by an agreed national methodology which had been tested and any necessary
changes would be made at the end of the process. They were a snapshot of a point
in time and the starting point had to be revisited regularly to ensure that they were as
accurate as possible.
Councillor P Williams considered that the shortfall should be factored in and two
graphs produced to include the numbers on the housing list.
The Planning Policy Manager stated that much of the growth was in-migration,
without which there would be negative growth.
Planning Policy & Built Heritage Working Party
2
14
22 September 2014
The Working Party questioned whether there was a typographical error in the report
in respect of the average annual growth figure.
Councillor P Williams referred to proposals by some authorities to require planning
permission to be sought for second homes. The Planning Policy Manager explained
that they were seeking a change to the Use Classes Order to enable them to be
controlled. It was unlikely that the Government would make such a change, but if
they did so it would enable Councils to set their own policies. The Working Party
discussed the advantages and disadvantages of second homes to the District. The
Planning Policy Manager stated that placing restrictions on the use of new dwellings
as second homes would only increase the demand for existing, unrestricted dwellings
as second homes and would be difficult to enforce.
The Working Party noted the report and requested more information and clarity
around the methodology used when the final report was submitted for consideration.
(27)
GROWTH STRATEGY BEYOND 2016
PROCESS AND TIMETABLE FOR LOCAL PLAN REVIEW
The Planning Policy Manager stated that it was necessary to consider reviewing the
Local Plan and suggested that the review commence in May 2015 following the
elections. He requested that the Working Party resolve to recommend to Cabinet the
approach suggested in the report.
The Chairman referred to proposed new Government legislation on barn
conversions.
The Planning Policy Manager stated that the Government had already made a
number of amendments to planning legislation and more changes were under
consultation in order to streamline the process and reduce the amount of
development which required planning permission. The proposed changes in respect
of barn conversions related only to barns on agricultural holdings which were
registered at the time the announcement was made, and would allow 450 m2 to be
converted to no more than three dwellings. This would be done through the prior
notification process and there would be limited circumstances to refuse. He
expressed concern that this approach would allow very poor agricultural buildings to
become dwellings, whereas buildings which were not on agricultural holdings would
be subject to the ‘worthy of retention’ test.
At the request of Councillor P Williams, the Planning Policy Manager outlined the
possible cost implications of the plan review. Money for additional staff resources
had been included in the budget and fee increases had been ring fenced for planning
services.
Councillor Mrs P Grove-Jones questioned why there was a need to demonstrate a
five-year housing land supply.
The Planning Policy Manager stated that without a five-year land supply the
development industry would be unable to plan to meet development need.
Developers were taking options on land for 10-15 years and it was the Local
Planning Authority’s role to give them certainty that they would be able to build. It
also helped utility suppliers to plan for the future.
Planning Policy & Built Heritage Working Party
3
15
22 September 2014
In answer to a question by Councillor Mrs A R Green, the Planning Policy Manager
stated that most of the demand for new housing was from inward migration.
Planning was a demand-led system, not a choice-led system.
It was proposed by Councillor R Reynolds, duly seconded and
RESOLVED unanimously
1.
That a recommendation be made to Cabinet that the Local Plan review
should commence in May 2015.
2.
That a detailed Project Plan, including detailed budgetary information, is
prepared for consideration by the Working Party
The meeting closed at 11.14 am.
Planning Policy & Built Heritage Working Party
4
16
22 September 2014
Agenda Item No_____11_______
BUDGET MONITORING REPORT 2014/15 – PERIOD 6
Summary:
This report summarises the budget monitoring position
for the revenue account and capital programme to the
end of September 2014.
Options considered:
Not applicable
Conclusions:
The overall position at the end of September 2014
shows a year to date variance of £1,382,089 to date for
the current financial year on the revenue account, this is
currently expected to deliver a forecast full year
underspend of £98,000.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and
the current budget monitoring position.
2) Cabinet note the contents of the Revised
Capital Appendix C.
3) Cabinet approves an increase of £55,000 to
the Enforcement board Reserve, funded from
the in-year underspend.
4) Cabinet are requested to approve the
inclusion of capital budgets in the 2014/15
Capital Programme:
 Sheringham West Prom provision of
grey water tank at £28,000, to be
funded from capital resources.
 Pier Roof full Repair/Refurbishment at
a cost of £78,000, to be funded initially
from capital resources.
 Pier
Public
Conveniences
refurbishment at a cost of £45,000 to
be funded from capital resources.
Reasons for
Recommendations:
To update Members on the current budget monitoring
position for the Council, and make all amendments to
the capital budget as appropriate.
17
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
1.
Introduction
1.1.
This report compares the actual expenditure and income position at the end
of September 2014 to the updated budget for 2014/15. The Original Base
Budget as agreed by Full Council in February 2014 has now been updated for
the approved budget roll forward requests as reported in the 2013/14 Outturn
report in June 2014 and any in-year service virements.
1.2
The report also provides a monitoring position for the current capital
programme and an update on the costs related to the December 2013
storm surge.
1.3
The base budget for 2014/15 included savings and additional income totalling
£580,994 to be delivered in the year. Section 3.1 of 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 30 September 2014 which shows a year to date
variance of £1,382,089 underspend. Of the underspend £475,931 is in
relation to the service variances and £883,692 is in relation to the Business
Rates Retention Scheme compared to the profiled budget. Details of these
variances are included within section 2.5. Appendix B provides further details
of the individual service variances.
2.2
The 2014/15 Budget included planned spend of £958,750 to be funded by
insurance claims, allocated funding from the General Reserve and the
balance of the Severe weather recovery scheme grant. The current estimated
costs for 2014/15 shown below of £1,786,233 includes costs that were
originally forecast to be spent in 2013/14 but have slipped into the current
year. The table below shows the latest estimated cost of the tidal surge for
2014/15.
18
Storm Damage 2014/15 Estimate
Estimated
Costs
Funding
£
£
NNDC Property Assets
862,872
Coastal Assets
837,950
Other Infrastructure
Other
Total
2.3
2.4
51,002
34,409
1,786,233
Funding Source
NNDC
cost
(potential)
£
Insurance claims
(694,383) (estimate)
168,489
Cromer Scheme – existing
(220,000) funding.
EA Grant
(66,618) 2013/14(bal)
(276,000) EA Grant 2014/15
275,332
0
51,002
0
34,409
Severe Weather
(40,674) Recovery Scheme
(40,674)
(1,297,675)
488,558
The flooding support schemes announced by the government in February
2014 included the following:
Repair and Renew Grants (Homeowners and Businesses)

Business Support

Council tax Discounts

Business Rate reliefs
These schemes have continued to be administered by the Council, to be
reimbursed by Government funding in line with their (the Government‟s) set
eligibility criteria. Total applications for homeowner and business repair and
renew and business support grants total 217 to date. The repair and renew
grant scheme will end on the 31 March 2015. Any grants paid out after this
date will not be eligible for reimbursement through the government scheme.
The council is currently administering the scheme within this timescale to
ensure all eligible grants can be paid prior to this.
19
2.5
The following table shows the over/under spends to date for the more
significant variances, this is compared to the updated budget.
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Assets and Leisure
Car Parking – The variance to date includes (£48,977)
additional car parking income. No full year surplus is
expected at this time as it is anticipated that it will be negated
by changes to car park evening charges in future months.
The overall position will continue to be monitored regularly.
Forecast
Full Year
Effect
£
(43,996)
0
Administration Buildings – The year to date variance is
mainly due to reduced rental income as a result of a tenant
vacating premises which is anticipated to result in a full year
effect.
6,618
5,000
Pier Pavilion - The variance against the profile budget to
date reflects the repair work carried out on the Pier Theatre
following the storm damage.
91,843
0
Cromer Pier – The variance to date largely reflects the cost
of repairs to the pier following the December 2013 storm
surge which is currently expected to be funded from an
insurance claim.
149,159
0
Public Conveniences – The variance to date is due to the
repair work to the facilities that were damage by the storm
surge, these costs are in the process of being recovered
through insurance claims.
38,567
0
157,077
0
Investment properties – The variance to date includes the
following:
£11,473 - Business rates charges for the Grove Lane Depot,
these may be recovered either from new tenants or as an
empty rate refund.
£93,545 - Additional repairs and maintenance costs of which
a significant proportion relates to the costs of storm surge.
The additional costs are anticipated to be offset by insurance
claims.
£27,232 - Reduced rental income following storm surge for
other lettings properties. The reduction in income is expected
to be offset by the recovery of insurance sums.
£15,121 - Accrual of insurance claims works for the storm
surge, yet to be received from 2013/14.
£12,113 - Accrual of Rocket House prior year tenants service
charges, agreement still to be reached with tenant.
20
Table 1 – Service Variances
CCTV – The decision was made as part of the 2014/15
budget process to cease the CCTV service. As a result
savings of £95,760 were included within the base budget.
This saving will be exceeded this year by £29,713 following
the cancellation of the fibre optic cabling contract and a
refund having been received. The balance of the variance of
(£16,327) reflects decommissioning costs yet to be incurred.
Community, Economic Development and Coast
Community and Localism – The variance against the
profiled budget to date is mainly in relation to uncommitted
expenditure and unclaimed Big Society Fund grants which
are funded from Norfolk County Council‟s share of second
homes income which is returned to the districts. Any
underspend in the year will be transferred to the earmarked
reserve at the year end.
Customer Services
IT – Support Services - The variance to date comprises of
income from the sale of obsolete equipment (£4,588) and
employee costs, including vacant position and employee
turnover (£27,849). The vacant position is funded from the
Business Process Review Reserve and if unspent monies will
be returned to this reserve.
Customer services – The year to date variance relates to
staff savings arising from vacant posts and reduced hours.
There is expected to be a full year effect of £18,000 this is
due to a 2013/14 roll forward, no longer required.
Development Management
Development Management – The variance to date is made
up of increased fee income (£39,996) and the balance £6,991
relates to the use of temporary staff for Planning Performance
Agreement work, which will be recovered via a recharge.
Planning Policy – The variance to date includes (£11,525)
for an outstanding creditor provision for professional advice
which has not yet been offset by expenditure. Of the
remaining variance (£13,000) reflects staff turnover including
a temporary post funded from the New Homes Bonus
Reserve. This post may not be required until the Planning
Review Process is completed. If this is the case then the
budget allocated of £35,841 will be returned to the reserve
until required.
21
Over/ (Under)
Spend to Date
against
Updated
Budget
£
(46,040)
Forecast
Full Year
Effect
£
(30,000)
(422,637)
0
(32,437)
0
(27,014)
(18,000)
(33,005)
0
(23,340)
(8,000)
Table 1 – Service Variances
Building Control and Access – Building Control Income
levels have started to show an increase following several
years of deficit. A full year increase has not been calculated
at this point but any surplus will be ring fenced as part of the
fee setting process.
Over/ (Under)
Spend to Date
against
Updated
Budget
£
(47,506)
Forecast
Full Year
Effect
£
0
Planning Support – As part of the 2012/13 budget a savings
bid of £26,400 was agreed. This proposal allowed for staff
savings to be made as a result of a review of the future
delivery of the Building Control Service. The savings proposal
was subsequently put on hold awaiting the outcome of the
Planning benchmarking and peer reviews. This saving is no
longer achievable as originally planned and will be
considered as part of the overall service restructure.
(6,169)
25,000
Property Information – Of the current variance (£36,043) is
as result of increased fee income above the profiled budget.
This level of income is likely to reduce over the winter months
and will be partially offset by the increased volume of Norfolk
County Council fees. Any surplus will be transferred to the
Land Charges Reserve and be used to calculate future fee
levels. £6,872 is a temporary post which will be funded from
Planning Policy savings so there will be no full year effect.
Environmental Health
Environmental Protection – Main components of variance
to date are: Enforcement Board expenditure £37,425 and
bad debt of £12,298 for which 100% bad debt provision was
made.
(26,836)
0
53,682
0
(30,541)
0
(51,175)
(35,000)
See further comment at paragraph 2.7
Civil Contingencies – The expenditure and income in
relation to the flooding grants (Repair and Renew, and
Business Support) is included under this service. The
variance to date is largely due to the business support grant
funding which has been received but not fully allocated and
paid out to applicants. Further details of the scheme are
included at paragraphs 2.3 and 2.4.
Financial Services
Benefits – The underspend to date is mainly due to vacant
posts within the service, some will be offset by overtime
which will be incurred in the following quarter. Overall there
is anticipated full year underspend of £35,000.
22
Table 1 – Service Variances
Corporate Finance – The variance to date includes an
underspend in relation to a vacant post. The future of this
post will be considered as part of the budget process for
2015/16 and therefore at this time there is expected to be a
full year underspend of £12,000.
Internal Audit – Whilst the service is not showing a
significant under spend to date, there is expected to be a full
year under spend of £10,000. This is mainly due to a roll
forward request from 2013/14, no longer being required.
Organisational Development
Human resources and Payroll – The Learning and
Development Strategy has been approved along with an
action plan of activities. After taking into account all the
identified activities, it is anticipated that there will be a full
year saving of £15,000.
Registration Services – The variance against the profiled
budget to date is due to the timing of receiving the
reimbursement of the election costs. These are now awaiting
transfer to NNDC‟s account.
TOTALS
Over/ (Under)
Spend to Date
against
Updated
Budget
£
(18,371)
Forecast
Full Year
Effect
£
(12,000)
(4,000)
(10,000)
(45,206)
(15,000)
66,339
0
(294,988)
(98,000)
2.6
The Waste Collection service includes the costs and income associated with
the waste collection and recycling service. The changes to the recycling
collections in Norfolk came into operation on 1 October, indications from the
service suggest that the quality of the recycled material is good, although the
full impact of the changes against the budget will not be confirmed until later
in the year once the volume of tonnage materials is also confirmed. Within
the service there are some variances against the profiled budget to date,
although at the current time there is not anticipated to be a significant full year
effect.
2.7
Enforcement – Members will recall that a reserve was previously established
by Cabinet with delegated authority given to the Corporate Director after
discussion with the s151 Officer, to release funds from the reserve, to allow
the work of the Enforcement Board to proceed. To date enforcement works
costs have been incurred within the available balance of the reserve. The
forecast balance in the reserve at 31 March 2015 is estimated to be £98,000.
It should be recognised that there will be a time lag between incurring costs
and their recovery, possibly covering more than one financial year. Works in
default, following non-compliance with a Building Act Notice, are now required
on a dilapidated property in St Mary‟s Road Cromer. The need to act now
23
has only very recently come to light, as the owner initially started works but
has since defaulted on the requirements of the requirements of the notice.
The works required are estimated to be £127,000 with a further £25,000 of
professional and legal fees. It is anticipated that there is enough value in the
property for these works to be able to be recovered by way of an application
to the Court for payment and an enforced sale if required, although a
valuation is being sought to confirm this position. It is an important principle
with works in default, that there are not delays in the process, and, especially
in this case as complaints about the property are still being received by
neighbours. In order to allow this work to proceed, the reserve will need to be
increased by an additional £55,000 in the year pending future recovery of
other works. A full list of such works, their costs and details and timescales
for recovery action will be provided to Cabinet at the December meeting via
the six monthly Enforcement Board Update report, but it is not considered
appropriate to wait a further month before approving the reserve extension, as
this would delay the works.
3
Budget Monitoring Position – Savings and Additional Income
3.1
The budget for 2014/15 included savings and additional income totaling
£580,994 within the service areas. The detail for each of the service savings
is included at Appendix D. Table 2 below summaries the current position for
each service heading. There have been no changes since period 4, for the
year, the planned savings/additional income is still expected to be exceeded
by £13,000.
Table 2 – Savings and Additional Income
2014/15
Assets & Leisure
Customer Services
Economic and Community Development
Economic and Community
Development/Assets/Leisure
Environmental Health
Environmental Health/Assets/Leisure
Finance
Organisational Development
Total
4
149,760
13,250
113,184
2014/15
Movement
from the
Base Budget
at P6
185,760
13,250
113,184
40,000
40,000
0
80,000
169,000
8,000
7,800
580,994
80,000
146,000
8,000
7,800
593,994
0
(23,000)
0
0
13,000
2014/15
Base
Budget
£
2014/15
P6
Update
£
36,000
0
0
Non Service Variances
Investment Interest – to Period 6 2014/15
4.1
The original budget for 2014/15 assumed a total of £366,300 would be earned
in investment interest from an average balance of £22.2 million at an average
interest rate of 1.65%. At period 4 the average balance available was
expected to increase to £24.4 million with a slightly lower rate of 1.37% and
earn investment interest of £335,080 for the year.
4.2
At the end of period 6, a total of £181,455 had been earned from an average
balance available for investment of £29 million at an average rate of 1.25%.
24
4.3
Based on the results to period 6, a total investment interest receivable figure
of £343,440 is forecast for the year from an average balance £25.5m at an
average rate of 1.35%. The position will continue to be monitored regularly.
4.4
The LAMIT Pooled Property Fund continues to perform well. Units in the fund
were valued at £2.4306 at the start of 2014/15 and by the end of period 6 the
price has risen to £2.5821. This equates to a rise in value “on paper” of
£337,270, but this potential gain could only be realised if the holding were to
be sold.
4.5
The higher amount available for investment and the need to further diversify
the investment portfolio has required the use of new investment
counterparties and financial instruments. Full details of the treasury activity to
period 6 are set out in the Treasury Management Half Yearly Report which
appears elsewhere on this agenda.
Retained Business Rates
4.6
The 2013/14 outturn position highlighted a favourable variance in relation to
the local retention of business rates. A revised forecast for 2014/15 has been
made which has been informed by the 2013/14 outturn position along with the
allocation of the section 31 grant. The section 31 grant is paid to Local
Authorities to mitigate the impact of the extensions to small business rate
relief, retail reliefs and the other business rates measures that were
announced as part of the Chancellors Autumn statement last year.
4.7
Through the rates retention system an element of business rates growth will
be offset by a levy and the section 31 grant is taken into account when
calculating the levy payment. In the current year there have been some
movements on the total rateable value of business rates properties in the
district as a result of appeals, premises closures or potential closures. These
could all have a negative impact on the overall business rates income
retained unless they are offset by growth in the total rateable value for the
district. For the 2014/15 it is still anticipated that the net additional business
rates income will exceed the budget by £357,000, however at this time it will
be recommended that this is earmarked in the business rates reserve until the
full outcome of the 2014/15 business rates income is confirmed.
5
Budget Monitoring Position – Summary
5.1
The detail within section 2 of the report highlights the more significant service
variances and in particular those that are forecast to have a full year variance
compared to the budget, the total full year effect of the service variances is
currently projected to be £98,000.
5.2
In addition to the service variances the net impact of the retained business
rates after payment of levy is expected to exceed the budget by £357,000.
6
Budget Monitoring Position – Capital
6.1
Members were provided with an updated capital programme for both current
and future years as part of the Period 4 Budget Monitoring report that was
approved by Cabinet on the 8 September 2014. Appendix C shows the latest
position for the updated programme, together with details of spend up to
Period 6 and comments on individual schemes where applicable.
25
6.2
The capital programme has been updated to include those virements
requested as part of the Period 4 Budget Monitoring report. The changes are
as follows:Scheme
6.3
Amount £
Planning Probass Scheme - Vired from Replacement of
Planning Scanner and Printer
5,602
Replacement Dell Equalogic System – vired from IT
Netweork Switches
8,089
Aerial Photography – no longer funded from capital
resources
21,000
In addition to the above changes, following the Cabinet meeting on the 6
October 2014 there were four amendments to the capital programme,
together with the inclusion of a further scheme for Cabbell Park which
received approval in April 2014. All of these amendments have been
included within the updated Appendix C and are summarized in the table
below.
Scheme
Amount £
Resurfacing Works to Mundesley Road Car Park
70,000
Sheringham Gangway
115,000
Sheringham West Seawall Improvement Coast Protection
Scheme (revised funding, increase from £590,000 to
£804,000)
804,000
New Print Solution – Multi-Function Devices (part of the
Business Transformation programme)
60,000
6.4
Further to these amendments, approval is now being sought from Cabinet for
three supplementary capital schemes arising as a result of the Storm Surge
impact from December 2013.
6.5
Sheringham West Prom Tank - Works undertaken following the storm surge
damage to the café at Sheringham‟s West Prom, have identified a
requirement for a tank to be introduced to the Prom to deal with „grey water‟
from the café. The capital cost of this tank is budgeted at £28,000 but this
cost cannot be recovered as part of the insurance claim in relation to this
property. Approval is therefore sought for a budget of £28,000 to be included
within the Capital Programme to be financed from NNDC Capital Receipts.
6.6
Pier Roof Repairs – Recent works undertaken, following the damage to the
Pier as a result of the storm surge, have uncovered an issue with regards to
leaks within the roof space. There are two options available in relation to this
issue. The first is to undertake a patched repair to the roof area currently
subject to leakage which would cost in the region of £30,000. The second
option, which is the preferred officer option, is to undertake a full replacement
which will address this and any subsequent problems with the roof at a cost
of around £78,000. Approval is therefore sought for a budget to be included
within the Capital Programme, in line with the option that Cabinet members
approve.
26
6.7
Pier Public Conveniences – Following the impact of the storm surge the pier
will have undergone significant refurbishment works, the main facility that will
not have had any refurbishment works undertaken is the public convenience
situated next to the box office. This was identified in the updated Asset
Management Plan 2014/15 to 2016/17 as a category C asset (poor
condition). As contractors are already on site it would seem an ideal
opportunity to address this facility at the same time so that works can be
undertaken before the start of the season next year. Approval is therefore
sought for a budget of £45,000 to be financed from NNDC Capital resources
6.8
In addition to this it is also considered appropriate to highlight to Members
that there may be further changes to the Cromer Pier and West Prom
Refurbishment capital scheme at some point in the future. At the current time
there is an approved budget of £200,000 in relation to the scheme which is to
be funded from the use of capital receipts. It is however, likely, that some
insurance monies received as a result of the Storm Surge claims for the lost
chalet blocks etc, could be consolidated with this budget to produce a
coherent approach to the refurbishment works. Again, Members will be kept
updated on the position with regards to this capital scheme.
7
Conclusion
7.1
The revenue budget is showing an estimated full year under spend for the
current financial year of (£98,000). 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 Original base budget for 2014/15 included service savings and additional
income totalling £580,994 at Period 6 this figure has increased to £593,994.
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
Table 1 shows total forecast full year effects of £98,000 at the end of period 6.
These forecasted amounts will be monitored throughout the remainder of the
year.
8.4
Until all the insurance claims in relation to the December 2013 storm damage
have been finalised and settled, there remains a risk that the repair costs will
not be recovered as expected and the residual costs falling to the funded from
the general reserve will exceed that currently forecast.
8.5
Section 2 of the reports includes a commentary on the number of applications
received for the flooding repair and renew grants that the Council is
administering in line with the Governments eligibility criteria. The
Government‟s timescales is that all repair and renew grants must be paid by
31 March 2015, any grants paid by the Council after this date will not be
eligible for reimbursement under the Governments funded scheme. There is a
risk that not all applicants will have had the works completed and grants paid
by the Council in line with the timescales, i.e. by the 31 March 2015, and
27
therefore will not be reimbursed. The reason for the delay is due to the high
level of demand of the relatively specialist work by only a small number of
local suppliers. The position is being monitored and Officers are contacting
the Department for Communities and Local Government to highlight this issue
and will be requesting an extension to the timetable.
8.6
As identified at section 2.7 costs arising from the work of the Enforcement
Board are funded from the reserve initially, ahead of cost recovery action.
There is a risk that the costs will not be recovered in full and therefore will
need to be funded by NNDC. This is mitigated by the preparatory work that is
carried out ahead of undertaking the works, in order to ensure correct legal
process, proportionality and the extent of works required, along with valuation
reports where necessary.
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.
28
Appendix A
General Fund Summary Report for Period 6 Year 2014/2015
Original Base
Budget
£
Net Cost Of Services
Assets & Leisure
Clt / Corporate
Customer Services
Community, Econ Dev & Coast
Development Management
Environmental Health
Finance
Organisational Development
Updated
Budget
£
YTD Budget Actuals YTD
£
£
YTD
Variance
£
Total
Commitments
£
Remaining
Budget
£
2,376,144
0
721,015
7,932,185
1,346,801
4,144,612
3,083,867
955,452
2,389,864
(927)
789,649
8,458,403
1,351,063
4,152,713
3,159,399
961,863
915,379
(451)
385,873
916,662
642,926
1,027,963
1,843,863
610,736
1,316,163
(28,762)
281,350
442,121
492,064
998,236
1,760,098
609,764
400,784
(28,311)
(104,523)
(474,541)
(150,862)
(29,727)
(83,765)
(972)
1,301,790
33,551
118,605
532,099
55,774
2,388,699
165,356
7,917
(228,089)
(5,716)
389,694
7,484,183
803,225
765,778
1,233,945
344,182
Net Cost Of Services
20,560,076
21,262,027
6,342,951
5,871,034
(471,917)
4,603,791
10,787,202
Non Service Expenditure/Income
Precepts Of Parish Councils
Capital Charges
Interest Receivable
External Interest Paid
Revenue Financing For Capital
Retirement Benefits
Contributions To/From Reserves
1,635,884
(7,699,575)
(363,710)
0
420,950
265,787
(426,538)
1,635,884
(7,699,575)
(332,490)
0
828,153
265,787
(1,557,181)
1,635,884
(1,067,670)
(178,022)
0
0
0
0
1,635,884
(1,067,682)
(182,155)
131
0
0
0
0
(12)
(4,133)
131
0
0
0
0
0
0
0
0
0
0
0
(6,631,893)
(150,335)
(131)
828,153
265,787
(1,557,181)
Non Service Expenditure/Income
(6,167,202)
(6,859,422)
390,192
386,178
(4,014)
0
(7,245,600)
(1,635,884)
(5,205,386)
(2,873,112)
(4,678,492)
(1,635,884)
(5,205,386)
(2,873,112)
(4,688,223)
(867,021)
(2,758,856)
(1,739,559)
(2,439,035)
(867,021)
(2,758,856)
(2,623,251)
(2,461,501)
0
0
(883,692)
(22,466)
(14,392,874)
(14,402,605)
(7,804,471)
(8,710,629)
0
0
(1,071,328)
(2,453,417)
Amount to be met from Government
Grant and Local Taxpayers
Parish Precepts
Council Taxpayers
Rate Payers
Central Government Grants
Income from Government Grant and
Taxpayers
(Surplus) / Deficit
29
0
(768,863)
(2,446,530)
(249,861)
(2,226,722)
(906,158)
0
(5,691,976)
(1,382,089)
4,603,791
(2,150,374)
0
Appendix B
Service Area Summaries 2014-15 P6
Assets & Leisure
Service
R200
R200A
R201
R202
R203
R204
R262
R262A
R300
R301
R302
R303
R304
R305
R306
R309
R310
R312
R314
R315
R318
R397
R414
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 and Leisure
Updated
Budget
YTD Budget YTD Actuals
£
£
£
(1,309,736) (1,054,695) (1,098,691)
70,131
2,684
627
(18,879)
(9,755)
(284)
3,100
1,528
1,528
(17,231)
(10,596)
12,385
(1,082)
(21,885)
(18,299)
95,576
129,509
136,127
(45)
43,086
44,436
495,660
226,249
226,898
230,021
122,019
105,458
14,935
7,417
4,900
320,466
135,288
149,964
652,654
325,790
317,726
111,236
25,988
19,287
11,017
4,798
4,385
103,417
84,747
176,590
412,053
231,515
249,364
168,245
79,911
96,237
32,611
24,549
173,708
608,979
317,670
356,237
304,611
146,145
303,222
0
18
(3,001)
102,125
103,399
57,359
2,389,864
915,379
YTD
Variance
£
(43,996)
(2,057)
9,471
0
22,981
3,586
6,618
1,350
649
(16,561)
(2,517)
14,676
(8,064)
(6,701)
(413)
91,843
17,849
16,326
149,159
38,567
157,077
(3,019)
(46,040)
1,316,163
400,784
Updated
YTD Budget YTD Actuals
Budget
£
£
£
(5,000)
(2,487)
(15,224)
4,073
2,036
(13,538)
YTD
Variance
£
(12,737)
(15,574)
Immediate
Budget
Commitments
Remaining
£
£
82,733
(293,778)
16,627
52,877
4,132
(22,727)
0
1,572
0
(29,616)
0
17,217
105,766
(146,317)
1,750
(46,231)
233,134
35,628
15,113
109,450
386
9,649
95,314
75,188
153,666
181,262
4,350
87,599
5,046
1,586
135,059
(208,232)
155,366
7,323
60,146
11,862
8,369
(149,466)
153,552
99,190
44,596
(43,207)
381
2,620
26,304
18,462
1,301,790
(228,089)
Clt / Corporate
Service
R460A
R481
Corporate Leadership Team
Legal Services
Total Corporate
(927)
(451)
(28,762)
(28,311)
YTD Budget YTD Actuals
£
£
0
(11,104)
59,172
57,975
48
48
192,046
176,574
74,532
76,313
0
3,799
606,324
608,788
5,397
5,263
(1,976)
(13,416)
(2,505)
(3,692)
101,571
89,572
(86,650)
(87,949)
(48,561)
(471,198)
17,264
11,148
YTD
Variance
£
(11,104)
(1,197)
0
(15,472)
1,781
3,799
2,464
(134)
(11,440)
(1,187)
(11,999)
(1,299)
(422,637)
(6,116)
Immediate
Budget
Commitments
Remaining
£
£
3,161
7,063
30,390
(12,779)
33,551
(5,716)
Community, Econ Dev & Coast
Updated
Budget
£
Service
R112A
R307
R308
R330
R333
R336
R340
R341
R391
R391B
R398
R399
R415
R472
Health
Arts & Entertainments
Museums
General Economic Development
Tourism
Nnflag Project
Coast Protection
Pathfinder
Regeneration Management
Comm & Econ Dev Mgt
Housing (Health & Wellbeing)
Housing Strategy
Community And Localism
Coastal Management
Total Community, Eco Dev & Coast
0
100,675
88
429,082
140,318
0
1,674,525
57,397
0
(5,000)
2,186,324
3,625,743
206,764
42,487
8,458,403
916,662
30
442,121
(474,541)
Immediate
Commitments
£
0
29,012
0
34,839
28,088
0
348,783
0
150
0
0
22,439
68,188
600
Budget
Remaining
£
11,104
13,688
40
217,669
35,917
(3,799)
716,954
52,134
13,266
(1,308)
2,096,752
3,691,253
609,774
30,739
532,099
7,484,183
Appendix B
Service Area Summaries 2014-15 P6
Assets & Leisure
Customer Services
Service
R261
R311
R372
R394
R411
R430
R481B
R481C
R481D
It - Support Services
Tic'S
Homelessness
Customer Services Housing
Transport
Publicity
Graphical Info System
Media & Communications
Customer Services - Corporate
Total Customer Services
Updated
Budget
YTD Budget YTD Actuals
£
£
£
41,308
(6,336)
(38,773)
299,170
153,950
131,595
375,113
191,467
196,708
0
(3,460)
(7,547)
40,290
20,892
20,892
610
306
306
1,227
6,828
558
59,409
31,178
13,577
(27,478)
(8,952)
(35,966)
789,649
385,873
YTD
Variance
£
(32,437)
(22,355)
5,241
(4,087)
0
0
(6,270)
(17,601)
(27,014)
281,350
(104,523)
Updated
Budget
YTD Budget YTD Actuals
£
£
£
Development Management
618,681
301,271
268,266
Planning Policy
235,105
113,644
90,304
Conservation & Design
121,759
51,343
44,277
Landscape
151,448
68,916
61,976
Building Control & Access
78,576
44,667
(2,839)
Planning Management & Support
42,059
24,947
18,778
Property Information
103,435
38,138
11,302
YTD
Variance
£
(33,005)
(23,340)
(7,066)
(6,940)
(47,506)
(6,169)
(26,836)
Immediate
Budget
Commitments
Remaining
£
£
32,068
48,013
28,957
138,618
25,985
152,420
0
7,547
0
19,398
0
304
3,650
(2,981)
19,565
26,267
8,380
108
118,605
389,694
Development Management
Service
R100
R101
R102
R103
R121
R150
R402
Total Development Management
1,351,063
642,926
492,064
(150,862)
Updated
Budget
YTD Budget YTD Actuals
£
£
£
498,058
249,035
240,876
361,164
180,584
180,584
99,100
67,124
68,822
100,881
58,479
46,789
35,807
19,108
11,126
15,590
7,806
7,288
550,717
258,045
311,727
60,964
27,981
25,956
5,445
(4,415)
(12,158)
1,529,052
(204,379)
(213,101)
699,018
284,463
280,081
31,667
15,842
12,497
22,570
1,290
1,290
142,680
67,000
36,459
YTD
Variance
£
(8,159)
0
1,698
(11,690)
(7,982)
(518)
53,682
(2,025)
(7,743)
(8,722)
(4,382)
(3,345)
0
(30,541)
Immediate
Budget
Commitments
Remaining
£
£
6,533
343,882
600
144,201
2,615
74,867
200
89,272
810
80,605
400
22,881
44,616
47,517
55,774
803,225
Environmental Health
Service
R111A
R114
R115
R117
R117B
R118
R119A
R120
R151
R316
R317
R412
R413
R420
Commercial Services
Rural Sewerage Schemes
Travellers
Public Protection
Street Signage
Pest Control
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection And Disposal
Cleansing
Environmental Strategy
Community Safety
Civil Contingencies
Total Environmental Health
4,152,713
1,027,963
31
998,236
(29,727)
Immediate
Budget
Commitments
Remaining
£
£
4,050
253,132
0
180,580
15,272
15,006
6,614
47,478
9,883
14,798
263
8,039
27,913
211,077
9,816
25,192
12,479
5,124
1,896,501
(154,348)
402,730
16,207
2,303
16,867
0
21,280
875
105,346
2,388,699
765,778
Appendix B
Service Area Summaries 2014-15 P6
Assets & Leisure
Finance
Service
R210
R211
R214
R219
R251
R263
R263C
R450
R450A
Local Taxation
Benefits
Discrectionary Payments
Non Distributed Costs
Benefits & Revenues Mgmt
Corporate Finance
Internal Audit
Central Costs
Corporate & Democratic Core
Total Finance
Updated
Budget
YTD Budget YTD Actuals
£
£
£
547,442
223,031
215,961
1,018,505
751,020
699,845
176,788
108,788
108,788
3,392
114,142
127,768
0
1,258
(9,932)
1,180
(1,535)
(19,906)
13,600
(51,804)
(55,804)
(8,085)
(4,023)
(1,525)
1,406,577
702,986
694,903
3,159,399
1,843,863
YTD
Variance
£
(7,070)
(51,175)
0
13,626
(11,190)
(18,371)
(4,000)
2,498
(8,083)
1,760,098
(83,765)
Updated
Budget
YTD Budget YTD Actuals
£
£
£
39,034
24,293
(20,913)
(2,923)
66,415
62,657
0
12
(4,725)
336,939
225,591
291,930
588,813
294,425
280,815
YTD
Variance
£
(45,206)
(3,758)
(4,737)
66,339
(13,610)
Immediate
Budget
Commitments
Remaining
£
£
3,598
327,883
23,392
295,268
0
68,000
0
(124,376)
0
9,932
7,197
13,889
101,234
(31,830)
0
(6,560)
29,935
681,739
165,356
1,233,945
Organisational Development
Service
R260
R263B
R263D
R400
R450B
Human Resources & Payroll
Insurance & Risk Management
Policy & Performance Mgt
Registration Services
Members Services
Total Organisational Development
961,863
610,736
32
609,764
(972)
Immediate
Budget
Commitments
Remaining
£
£
4,258
55,688
0
(65,581)
0
4,725
2,032
42,978
1,627
306,371
7,917
344,181
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 6 Budget Monitoring 2014/15
Scheme
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 6
£
£
£
Actual Expenditure at
Period 6
Variance to 2014/15
Updated Budget
Comments
Updated Budget
2015/16
Updated Budget
2016/17
£
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation Centre
50,000
10,295
39,705
0
(39,705)
0
0
32,168
44,916
62
0
0
68,379
5,000
0
(5,000)
0
0
310
14,690
7,659
(7,031)
0
0
0
110,000
9,613
(100,387)
0
0
0
70,000
0
(70,000)
0
0
111,152
284,311
17,334
(266,977)
0
0
0
1,293,220
226,545
(1,066,675)
772,578
0
Financed by;
NNDC (Capital Receipts)
50,000
Rocket House
77,084
(44,854) This scheme is currently on
hold.
Financed by;
NNDC (Capital Receipts)
77,084
Carbon Reduction Scheme
Financed by;
NNDC (Cap Receipts - Carbon Reduction
Fund)
73,379
Public Conveniences (Plumbing and
Drainage)
73,379
15,000
Financed by;
NNCD (Capital Receipts)
Council Car Park Improvements 2014/15
15,000
110,000
Financed by;
NNCD (Capital Receipts)
Mundesley Road Car Park Resurfacing
110,000
70,000
Financed by;
NNCD (Capital Receipts)
70,000
395,463
Works are continuing on
individual public
conveniences, with some
individual projects already
having been completed
Tenders have come back
and the works are being
programmed in for
completion by the end of
December.
This scheme received
approval at the Cabinet
meeting on the 6th October
2014.
Housing and Infrastructure
Disabled Facilities Grants
Annual programme
Financed by;
Specified Capital Grant
NNDC (Capital Receipts)
33
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 6 Budget Monitoring 2014/15
Scheme
Housing Associations
Scheme Total
Current Estimate
£
Annual programme
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 6
£
Actual Expenditure at
Period 6
Variance to 2014/15
Updated Budget
Comments
£
Updated Budget
2015/16
Updated Budget
2016/17
£
0
500,543
0
(500,543)
0
3,500,000
0
0
100,000
961
(99,039)
3,600,000
0
5,393,763
227,506
1,409,000
1,148,885
40,115
37,671
1,280,688
£
0
0
(3,500,000) This scheme is progressing,
0
0
Initial drawings for the new
laundry block have been
completed. Tenders are yet
to be sorted, but the works
are anticipated to be
programmed in for the end
of the year.
0
0
(5,166,257)
772,578
0
0
(40,115)
220,000
0
2,352
0
(2,352)
0
0
137,943
21,993
(115,950)
0
0
Financed by;
NNDC (Capital Receipts)
NNDC (Capital Projects Reserve)
Affordable Housing Contributions
Housing Loans to Registered Providers
3,500,000
with the template loan
agreement having been
circulated. Negotiations are
likely to commence with
interested parties in
November
Financed by;
Capital Receipts
Capital Projects Reserve
2,484,769
90,800
Internal/External Borrowing
924,431
Parkland Improvements
100,000
Financed by;
NNDC (Capital Receipts)
100,000
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
Financed by:
Grant
Sheringham Beach Handrails
1,409,000
40,023
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Capital Receipts)
Cromer Pier Structural Works - Phase 2
5,023
35,000
1,418,631
Financed by;
NNDC (Capital Receipts)
1,418,631
34
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 6 Budget Monitoring 2014/15
Scheme
Sheringham Promenade Lighting
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 6
£
£
£
79,500
67,727
Actual Expenditure at
Period 6
Variance to 2014/15
Updated Budget
Comments
Updated Budget
2015/16
Updated Budget
2016/17
£
11,773
463
(11,310)
£
0
0
0
0
0
0
Financed by;
NNDC (Capital Receipts)
46,500
Other Contributions
33,000
Cromer Pier and West Prom Refurbishment
Project
200,000
1,301
198,699
9,086
41,306
112,194
1,568
(110,626)
1,670,701
8,729,299
313,213
(8,416,086)
0
0
1,667,657
299,358
12,460
(286,898)
0
0
78,083
43,917
11,599
(32,318)
0
0
12,228
77,772
0
(77,772)
0
0
698,382
342,618
153,169
(189,449)
0
0
Financed by:
NNDC (Capital Receipts)
200,000
Refurbishment Works to the Seaside
Shelters
153,500
Works are progressing ,
although it is anticipated that
there may be some slippage
(189,613) in the scheme to the new
financial year. In addition to
this the Council have also
put in a further 200k bid for
additional funding for the
scheme with the FLAG
organisation.
Financed by:
NNDC (Capital Receipts)
Cromer Coast Protection Scheme 982 and
SEA
Financed by:
Environment Agency Grant
Pathfinder Project
153,500
10,400,000
Works are currently being
undertaken on the
Sheringham Lees Shelters,
and contract have now been
let for two further shelters in
Sheringham.
10,400,000
1,967,015
Financed by:
DEFRA Grant
Cromer to Winterton Scheme
1,967,015
122,000
Financed by:
Environment Agency Grant
110,000
External Contributions
12,000
Coastal Erosion Assistance
90,000
Financed by:
Government Grant
Storm Surge
90,000
1,041,000
Financed by;
Environment Agency Grant
1,041,000
35
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 6 Budget Monitoring 2014/15
Scheme
Sheringham West Prom
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
£
£
Updated Budget
2014/15 at Period 6
Actual Expenditure at
Period 6
Variance to 2014/15
Updated Budget
Comments
£
Updated Budget
2015/16
Updated Budget
2016/17
£
£
0
804,000
617
(803,383)
0
0
0
70,000
0
(70,000)
0
2,151,000
0
115,000
0
0
0
20,060,669
6,704,629
10,985,040
524,167
220,000
2,151,000
197,000
732
196,268
124
0
0
394,000
113,000
62,500
(50,500)
0
0
17,045
52,955
0
(52,955)
0
0
0
54,370
0
(54,370) interest in relation to these
0
0
804,000
Financed by;
NNDC (Capital Receipts)
215,000
Environment Agency Grant
375,000
Mundesley - Refurbishment of Coastal
Defences
Financed by;
NNDC (Capital Receipts)
Environment Agency Grant
Sheringham Gangway
2,221,000
307,000
1,914,000
115,000
(115,000) This scheme was approved
at the Cabinet Meeting on
the 6th October 2014.
Financed by;
NNDC (Capital Receipts)
40,000
Marine Management Organisation Grant
75,000
(10,460,873)
Localism
North Lodge Park
(196,144) This scheme is currently on
hold pending negotiations
with Cromer Town Council.
Financed by;
NNCD (Capital Receipts)
197,000
Big Society Fund
507,000
Financed by:
NNDC (Capital Receipts)
482,000
RCCO
25,000
North Walsham Regeneration Schemes
70,000
Financed by:
NNDC (Capital Receipts)
70,000
Victory Swim and Fitness Centre
54,370
Financed by;
NNCD (Capital Receipts)
54,370
36
Contractors have expressed
works and the scheme is
anticipated as being
completed by the end of the
financial year.
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 6 Budget Monitoring 2014/15
Scheme
Play Areas
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 6
£
£
£
Actual Expenditure at
Period 6
Variance to 2014/15
Updated Budget
Splash Roof Repairs
Updated Budget
2015/16
Updated Budget
2016/17
£
£
9,191
90,809
69,061
(21,748)
Works are progressing in
relation to this scheme.
0
0
0
73,630
9,247
(64,383)
Consultants have
undertaken a review of the
roof. The tender is currently
being prepared with prices
due back within the next
month or so. Works are
expected in December 2014.
0
0
0
30,000
0
(30,000)
This scheme is ongoing.
0
0
0
64,000
0
(64,000) as part of a report to Cabinet
0
0
1,096,000
420,968
675,032
140,931
(534,101)
0
0
272,700
192,817
79,883
52,387
(27,496)
0
0
162,603
22,355
0
(22,355)
20,000
0
221,082
11,345
0
(11,345)
0
0
100,000
Financed by;
NNCD (Capital Receipts)
Comments
100,000
73,630
Financed by;
NNCD (Capital Receipts)
43,630
Other Contributions
30,000
Steelwork Protection to Victory Pool
30,000
Financed by;
NNCD (Capital Receipts)
30,000
Cabbell Park
64,000
This scheme was approved
on the 14th April 2014. The
works are to be funded from
the capital receipt derived
from the sale of part of the
plot.
Financed by;
NNCD (Future Capital Receipts)
64,000
Delivering the Vision
Trade Waste Bins/ Waste Vehicle
Financed by:
NNDC (Capital Receipts)
LPSA Grant
194,784
77,916
Personal Computer Replacement Fund
204,958
Financed by;
NNDC (Capital Receipts)
NNDC (RCCO)
161,322
43,636
Waste Management & Environmental Health
IT System
Financed by;
NNDC (Capital Receipts)
232,427
131,514
WPEG Grant
83,486
DEFRA Grant
17,427
37
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 6 Budget Monitoring 2014/15
Scheme
Asset Management Computer System
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 6
£
£
£
75,000
Actual Expenditure at
Period 6
Variance to 2014/15
Updated Budget
Comments
60,000
NNDC (Asset Management Reserve)
15,000
Procurement for Upgrade of Civica System
306,156
Updated Budget
2016/17
£
63,190
11,810
0
187,058
119,098
0
21,506
11,494
0
(11,810) Options are currently being
considered in relation to this
scheme.
Financed by;
NNDC (Capital Projects Reserve)
Updated Budget
2015/16
(119,098)
£
0
0
0
0
0
0
0
0
0
0
Financed by:
NNDC (Capital Receipts)
Other Grants (RIEP)
DWP Performance Standards Fund
e-Financials Financial Management System
Software Upgrade
Financed by:
NNDC (Capital Receipts)
Administrative Buildings
210,947
53,800
41,409
33,000
Options are currently being
(11,494) considered in relation to this
scheme.
33,000
250,570
(91,927)
Works are progressing.
124,060
126,510
34,583
98
15,300
15,300
12,500
3,500
0
(3,500)
0
0
0
10,000
0
(10,000)
0
0
0
32,787
0
(32,787) to include the upgrade the
0
0
Financed by;
NNDC (Capital Receipts)
Replacement of Planning Printer and Scanner
250,570
15,398
0 This project is complete with
2 scanners / printers having
been purchased.
Financed by:
NNDC (Capital Receipts)
21,000
Committee Management Information System
16,000
Financed by:
NNDC (Capital Receipts)
16,000
Cash Receipting System Upgrade
10,000
Financed by:
NNDC (Capital Receipts)
10,000
Planning Probass 4
32,787
servers for Planning
Systems. A virement has
been undertaken to cover
the budget required.
Financed by:
NNDC (Capital Receipts)
The specification for this
scheme has been updated
27,185
38
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 6 Budget Monitoring 2014/15
Scheme
Planning System (Scanning of Old Files)
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 6
£
£
£
Actual Expenditure at
Period 6
Variance to 2014/15
Updated Budget
Comments
The scheme is under review
in light of the Council's
(60,000) Business Transformation
Programme. Expenditure is
unlikely to occur until the
end of the financial year.
0
60,000
0
0
91,911
91,286
0
38,089
38,090
1
0
90,000
0
0
37,500
47
0
60,000
0
1,826,496
984,914
821,582
231,693
26,978,628
8,221,663
18,159,728
1,141,632
60,000
Financed by:
NNDC (Capital Receipts)
60,000
IT Network Switches
91,911
Updated Budget
2015/16
Updated Budget
2016/17
£
£
0
0
0
0
0
0
(90,000)
0
0
(37,453)
0
0
0
0
(589,889)
20,000
0
(17,018,096)
1,012,578
2,151,000
A virement of £8,089 has
(625) been undertaken from this
budget to cover an
overspend against the
Replacement of Dell
Equalogic Systems
Financed by:
NNDC (Capital Receipts)
Replacement of Dell Equalogic Systems
100,000
38,089
Financed by:
NNDC (Capital Receipts)
30,000
Telephony Procurement
90,000
This scheme has been
completed.
Financed by:
NNDC (Capital Receipts)
90,000
Web Infrastructure Upgrade
37,500
Financed by:
Invest to Save Reserve
37,500
New Print Solution - Multi Function Devices
60,000
(60,000) This scheme was approved
at the Cabinet meeting on
the 6th October 2014
Financed by:
Business Transformation Reserve
60,000
39
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 6 Budget Monitoring 2014/15
Scheme
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 6
£
£
£
Actual Expenditure at
Period 6
Variance to 2014/15
Updated Budget
Comments
Updated Budget
2015/16
Updated Budget
2016/17
£
£
Capital Programme Financing
Environment Agency Grant
9,670,606
0
1,844,000
DEFRA Grant
339,473
220,000
0
Disabled Facilities Grants
466,046
443,000
0
Other Grants
145,000
0
0
0
0
0
49,771
0
0
3,983
0
0
Revenue Contribution to Capital (RCCO)
100,000
0
0
Capital Project Reserve
599,170
0
0
Invest to Save Reserve
37,500
0
0
5,823,748
349,578
307,000
924,431
0
0
18,159,728
1,012,578
2,151,000
Affordable Housing Contributions
Other Contributions
Asset Management Reserve
Capital Receipts
Internal / External Borrowing
TOTAL FINANCING
40
Appendix D
2014/15 Budget - Savings and Additional Income
Ref.
Service
2014/15
Outline of
Brief Outline of Saving/Additional Income (where
Savings
Saving/Additional Income
applicable)
/Income
OD1
Org Development
Performance Unit Savings Misc budgets within the service no longer requried.
F1
Finance
Professional Fees Accountancy
Removal of base budget for one-off 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.
2014/15
P6 Update
Variance
(7,800)
(7,800)
0
(8,000)
(8,000)
0
ECD1
Economic & Community Sustainability &
Development
Environmental Strategy
Removal of current vacant post
(38,804)
(38,804)
0
ECD2
Economic & Community Economic & Community
Development
Development
Internal restructure
(74,380)
(74,380)
0
(169,000)
(146,000)
23,000
(40,000)
(40,000)
0
EH1& Env Health / Assets and
Contract Savings
AL2 Leisure
Review and variation to the contracts within
Environmental Health and Assets and Leisure
EH2
Env Health
Garden Waste Service
Additional Income
EH3
Env Health
Improved recycling credits and reduced costs
Materials Recycling Facility (payments to community organisations/groups) (pro
rata for 14/15 - review)
(40,000)
(40,000)
0
AL1
Assets and Leisure
CCTV
Decommissioning of the CCTV service from 1 April
2014, full year saving from 2015/16, after decommissioning costs. Renting of office space
(149,760)
(185,760)
(36,000)
CC1
Economic & Community
Development and
Grants
Assets and Leisure
Various Grants - withdraw of funding for Museum
service.
(40,000)
(40,000)
0
N/A
Customer Services
Provision of customer services facility to NCC
(13,250)
(13,250)
0
(580,994)
(593,994)
(13,000)
Office Rental and
Customer Services to
external users
Additional income
Total
41
Agenda Item No____12________
HALF YEARLY TREASURY MANAGEMENT REPORT FOR 2014/15
Summary:
This report provides information on the Treasury
Management activities undertaken in the first six months
of 2014/15.
Options considered:
It is a requirement of the Chartered Institute of Public
Finance & Accountancy‟s (CIPFA) Code of Practice for
Treasury Management that this mid-year review is
prepared and presented to Full Council.
Conclusions:
That the treasury activities for the year have been
carried out in accordance with the CIPFA Code and the
Council‟s Treasury Strategy.
Recommendations:
That the Council be asked to RESOLVE that the Half
Yearly Treasury Management Report for 2014/15 is
approved including amendments to the Treasury
Management Strategy Statement for 2014/15.
Reasons for
Recommendations:
The recommendation is being made in compliance with
the CIPFA Code.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Arlingclose Report Template – Semi-Annual Treasury Report 2014/15
Cabinet Member(s)
Ward(s) affected
Cllr Wyndham Northam
All
Contact Officer, telephone number and email:
Tony Brown
01263516126
tony.brown@north-norfolk.gov.uk
1.
Introduction
1.1
The Chartered Institute of Public Finance and Accountancy (CIPFA) defines
treasury management as “the management of the Council‟s investments and
cash flows, its banking and its capital market transactions; the effective control
of the risks associated with those activities and the pursuit of optimum
performance consistent with those risks”.
1.2
The Council‟s treasury management activities are undertaken in accordance
with the CIPFA Code of Practice on Treasury Management 2011, which
includes a requirement to prepare a strategy for the treasury activities in the
forthcoming financial year. The Code also recommends that Members are
informed of treasury management activities at least twice a year. This report
42
therefore ensures that the Council is following Best Practice in accordance
with CIPFA‟s recommendations.
2.
Economic Background
2.1
The recent strong performance of the UK economy continued with year on
year growth in Gross Domestic Product (GDP) in the second quarter of 2014
of 3.2%. The service sector once again grew strongly, and business
investment recovered quickly supported by strong growth in consumption.
The rate of inflation as measured by the Consumer Prices Index (CPI) fell to
1.5% in August.
2.2
The labour market continued to improve with the headline unemployment rate
falling to 6.2%, although this was achieved through a large number of zerohour contracts and involuntary part-time working.
2.3
There was no change to UK monetary policy with the Bank of England‟s
Monetary Policy Committee (MPC) maintaining official interest rates at 0.5%,
and asset purchases under the Quantitative Easing programme of £375bn.
However, there was a marked shift in the guidance from the Bank of
England‟s Governor Mark Carney, and other members of the MPC. In June
the Governor warned that interest rates might rise sooner than financial
markets were expecting, and later in the summer some members of the MPC
began to vote for an increase in the Bank Rate. The MPC emphasised that
when the Bank Rate did begin to rise, it was expected to do so only gradually
and would likely remain below average historical levels for some time to
come.
2.4
In the Eurozone, inflation continued to fall towards zero and there was
mounting evidence that the already feeble recovery was losing pace. The
unemployment rate remained stubbornly high at 11.5%. The European
Central Bank (ECB) lowered its official interest rate from 0.15% to 0.05%, and
the rate it pays to commercial banks on balances held with it was also cut
from 0.1% to a negative -0.2%. The ECB also announced a programme of
acquiring Asset Backed Securities (ABS) from banks in an effort to encourage
lending which was viewed as being one step away from full blown Quantitative
Easing (QE) as adopted by the US, UK and Japanese central banks.
3.
Debt Management
3.1
The Council has remained debt-free. The Capital Programme included with
the period 6 budget Monitoring Report assumes expenditure will be financed
using currently available resources, for example capital receipts, government
grants and revenue contributions. This has lowered the overall treasury risk
by reducing the level of investments and avoiding external debt, and
continues to be the most cost effective way of funding capital expenditure.
3.2
However, it is anticipated that an element of capital expenditure from 2015/16
may need to be financed through a Minimum Revenue Provision (MRP)
charge to the revenue account, and this will require a change to the Council‟s
MRP Policy.
4
Investment Activity
4.1
The Investment Guidance from the Department for Communities and Local
Government, gives priority to security and liquidity, and the Council‟s aim is to
achieve an interest return commensurate with these principles.
4.2
The table below gives Members an appreciation of the investment activity
undertaken in the first six months of 2014/15, showing the position at the start
and end of the period, together with the transactions during the period. The
43
percentages show the investment return achieved for each investment
category.
Balance
01/4/2014
£000s
Short Term
Pooled Property Fund
Total
Invested
Matured
£000s
£000s
Balance
30/9/2014
£000s
%
16,035
65,030
(60,400)
20,665
0.43
5,000
0
0
5,000
5.19
21,035
65,030
(60,400)
25,665
1.25
4.3
Security of the capital sum remained the Council‟s main investment objective.
This was maintained by following the Council‟s investment counterparty policy
set out in its Treasury Management Strategy Statement for 2014/15.
4.4
Counterparty credit quality was assessed and monitored with reference to
Credit Ratings (the Council‟s minimum long-term counterparty rating of A- (or
equivalent) across the rating agencies Fitch, S&P and Moody‟s); credit default
swaps; GDP of the country in which the institution operates; the country‟s net
debt as a percentage of GDP; sovereign support mechanisms and potential
support from a well-resourced parent institution and share price.
4.5
The original budget for 2014/15 anticipated that £366,300 would be earned in
interest from an average balance of £22.2m at 1.65%. In the first 6 months of
the financial year the average amount invested was £29.0m at an average
rate of interest of 1.35%, resulting in an overall interest return of £181,455.
4.6
The individual counterparty investment limit was reduced to £1.5m in the
Treasury Management Strategy for 2014/15. This was done to reduce
counterparty risk in response to changes in legislation requiring investors to
provide bail-in support to failing institutions before any government bail-out
can take place.
4.7
A consequence of the reduced investment limit is more counterparties are
needed. This has been achieved by investing in certificates of deposit (which
give access to high credit quality counterparties not otherwise available to the
Council) and using unrated building societies approved by the Council‟s
treasury advisers, Arlingclose. In February 2014 Arlingclose carried out a
review of all 45 UK building societies, and from the total identified 14 unrated
societies as suitable investment counterparties.
4.8
The individual counterparty limit set out in the Strategy for investment in
covered bonds is £2.25m. A higher counterparty limit applies to these bonds
because of the additional security provided by the bond. On the 1 October
2014 the Council invested £2.25m in a covered bond issued by Leeds
Building Society for 5 years at a variable interest rate of 3 month LIBOR +
0.40%. The current interest rate on this bond is 0.97% but this will increase if
rates rise as they are anticipated to over the life of the bond.
4.9
Arlingclose considers Covered bonds to be a particularly appropriate
investment instrument for the Council. They would not be subject to bail-in
and are said to be dual recourse; in the event of default the bond holder first
has a claim on the issuer and then, if the claim is not covered in full, by a pool
of ring-fenced mortgages backing the bond. The Leeds BS bond has a AAA
credit rating and the value of mortgages backing it is 1.73 times the value of
44
the bond. Covered bond programmes are highly regulated under law and by
the Financial Conduct Authority, and the legal structure in place ensures the
rights of the Council are maintained.
5.
Credit Risk and Counterparty Update
5.1
Counterparty credit quality as measured by credit ratings is summarised
below. The table below and charts at Appendix E show that, compared to the
Arlingclose client base (for English non-metropolitan district councils), the
credit quality of the Council‟s investments at the end of June 2013 on a value
weighted basis was marginally better than the client base average of 4.94.
On a time weighted basis the average was marginally worse than the client
base figure of 4.91, although the score has improved over the year indicating
that for longer term investments, higher credit quality counterparties have
been used.
Date
Value
Weighted
Average –
Credit Risk
Score
Value
Weighted
Average –
Credit
Rating
Time
Weighted
Average –
Credit Risk
Score
Time
Weighted
Average –
Credit
Rating
31/03/2014
A+
5.08
A
5.97
30/06/2014
A+
4.58
A
5.68
Scoring:
Value weighted average reflects the credit quality of investments according to
the size of the deposit
Time weighted average reflects the credit quality of investments according to
the maturity of the deposit
AAA = highest credit quality = 1
D = lowest credit quality = 15
Aim = A- or higher credit rating, with a score of 7 or lower, to reflect current
investment approach with main focus on security
5.2
The European Parliament approved the Bank Recovery and Resolution
Directive (BRRD) in April 2014. This Directive requires regulators to bail-in
investors in failing banks before any public money can be injected (a bail-in
involves shareholders of a failing institution being divested of their shares, and
creditors of the institution having their claims cancelled or reduced to the
extent necessary to restore the institution to financial viability). The UK
already has legislation in place for bail-in powers, and this will be revised to be
compliant with the BRRD from January 2015.
5.3
The credit rating agencies are beginning the process of removing the uplift in
their ratings for government support which is built into many banks‟ long-term
credit ratings. It is possible in the future that some banks on the Council‟s
lending list are downgraded below the current A- minimum rating requirement.
If this does happen, these banks will be taken off the lending list, unless the
minimum credit rating is revised downwards.
5.4
The credit rating agency, Moody‟s, downgraded the long-term rating of the
Co-op Bank from Caa1 to Caa2 reflecting the agency‟s view that the Co-op
will ultimately be a smaller and less systemically important institution, with the
45
result there is a much reduced likelihood the UK government would commit
taxpayer‟s money to inject capital into the bank if it was required in the future.
5.5
The Co-op is currently the Council‟s banker and, although not on the lending
list for treasury investments, there is daylight exposure to the institution. To
mitigate against any potential loss in the event of a failure by the bank, the
ledger balance in each current account is kept as close to zero as possible at
the close of business each Friday, and incoming funds are moved out of the
bank as quickly as possible. The Council has now appointed Barclays Bank
plc to provide banking services to the Council and the process of migrating to
the new bank will begin in November 2014.
6.
Amendments to the Treasury Management Strategy Statement 2014/15
6.1
The UK is implementing the final bail-in provisions of the EU Bank Recovery
and Resolution Directive to commence in January 2015, a year ahead of most
other countries. Credit rating agencies have stated they plan to review EU
banks‟ ratings in line with each country‟s implementation of the directive.
Many UK banks, have standalone ratings in the “BBB” category, with uplifts
for potential government support taking them into the “A” category. There is
therefore a realistic risk that some major UK banks‟ credit ratings will fall
below A- this financial year if this uplift is removed.
6.2
In response to this risk the Council has two options:
6.3
a)
Amend the Treasury Management Strategy to allow investments in
lower rated banks (by one step from A- to BBB+), or
b)
Maintain the minimum credit rating requirement of A-. There is a risk
that some of the counterparties which the Council currently uses would
be downgraded below A-, and would therefore come off the lending list.
The Council‟s treasury advisers believe that Barclays, Lloyds,
Santander and Nationwide Building Society are at risk. In this
situation, alternative counterparties (i.e. housing associations, other
local authorities) and financial instruments (i.e treasury bills) would
need to be used.
It is therefore recommended that the Treasury Management Strategy
Statement for 2014/15 is amended as follows to allow investment in lower
rated banks at the same time as looking are alternative counterparties and
instruments;
1. Approved Investment Counterparties.
Investments can be made with banks and other organisations whose
lowest published long-term credit rating from Fitch, Moody‟s and
Standard & Poor‟s is BBB+ with a cash limit of £1.5m for a maximum
of 100 days.
2. Non-specified Investments
The total amount which can be invested in non-specified investments
is increased to £20m. This will enable additional investment in nonrated pooled funds (such as the LAMIT Pooled Property Fund, covered
bonds and banks and organisations whose credit ratings are below
A-).
3. Treasury Management Indicator – Security
46
The target credit rating average score is lowered to take account of
investing in lower rated institutions, and the target is changed from 6 to
7.
4. Approved Investment Instruments
The list of approved investments is extended to include Reverse
Repurchase Agreements (Repos) which provide the Council with
access to alternative institutions with good credit quality. Further
advice will be taken from Arlingclose before these instruments are
used.
7.
Compliance with Prudential Indicators
7.1
The Council can confirm that it has complied with its Treasury Prudential
Indicators in the first six months of 2014/15 as set out in Appendix F
8.
Conclusion
8.1
In compliance with the requirements of the CIPFA Code of Practice this report
provides members with a summary of the treasury management activity
during the first 6 months of 2014/15. As indicated in this report none of the
Prudential Indicators have been breached and a prudent approach has been
taking in relation to investment activity with priority being given to security and
liquidity over yield.
9.
Implications and Risks
9.1
The treasury management activities in the first 6 months of 2014/15 have
been undertaken in accordance with the Treasury Management Strategy
Statement 2014/15.
10.
Financial Implications and Risks
10.1
The financial implications and risks of treasury decisions have been
considered in the light of advice from the Council‟s treasury advisor and this
report confirms that the Council considers that security and liquidity are the
primary objectives of its prudent investment policy.
11.
Sustainability
11.1
This report does not raise any issues relating to Sustainability
12.
Equality and Diversity
12.1
This report does not raise any issues relating to Equality and Diversity.
13.
Section 17 Crime and Disorder considerations
13.1
This report does not raise any issues relating to Crime and Disorder
considerations.
47
Appendix E
Credit Score Analysis
Long-Term
Credit Rating
Score
AAA
1
AA+
2
AA
3
AA-
4
A+
5
A
6
A-
7
BBB+
8
BBB
9
BBB-
10
Not rated
11
BB
12
CCC
13
C
14
D
15
48
49
Appendix F
1
1.1
2
2.1
2.2
Compliance with Prudential Indicators
The Council complied with the Prudential Indicators for 2014/15, which were
set on 26 February 2014 as part of the Council‟s Treasury Management
Strategy Statement.
Treasury Management Indicators
The Council measures and manages its exposures to treasury management
risks using the following indicators.
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.
Actual
Target
Portfolio average credit score
2.3
6.0
A credit score of „6‟ equates to a long-term rating of „A‟ (Fitch and S&P) or A2
(Moody‟s).
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.
Actual
Target
Total cash available within 3 months
2.4
4.58
£3m
£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
2015/16
2016/17
Estimate
Estimate Estimate
%
%
%
Upper Limit for Fixed Interest Rate
Exposure
Actual
(100%)
Upper Limit for Variable Interest
Rate Exposure
(100%)
Actual
(100%)
(100%)
(100%)
(100%)
(100%)
(0%)
2.5
As the Council‟s investments exceed its borrowing, these calculations have
resulted in a negative figure.
2.6
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
50
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. Because of the
nature and maturity period all the Council‟s investments have been treated as
variable for the purposes of this indicator.
2.7
Maturity Structure of Fixed Rate borrowing:
2.8
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 protect against excessive exposures to interest rate
changes in any one period, in particular in the course of the next ten years.
2.9
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.
No borrowing was undertaken in the first six months of the financial year, and
the Council does not anticipate 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 provide the flexibility to borrow fixed rate
loans in any of the maturity bands below.
Lower Limit Upper Limit
Actual
Maturity structure of fixed
for 2014/15 for 2014/15 For 2014/15
rate borrowing
%
%
%
under 12 months
0
100
0
2.12
12 months and within 24
months
0
100
0
24 months and within 5 years
0
100
0
5 years and within 10 years
0
100
0
10 years and above
0
100
0
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:
2014/15
2015/16
2016/17
Limit on principal invested beyond year
£10m
£7.5m
£5m
end
Actual
£8m
£5m
£5m
51
Cabinet 3 November 2014
Overview and Scrutiny 12 November 2014
Agenda Item No____13________
MANAGING PERFORMANCE QUARTER 2 2014/15
Summary:
The purpose of this report is to give a second quarter
progress report of the performance of the Council. More
specifically it reports delivery of the Annual Action Plan
2014/15 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 56 activities in the Annual
Action Plan 2014/15 are on track (44).
Performance is being closely monitored,
particularly for the activities where issues or
problems have been identified (six). Some
activities have already been completed
successfully (three) and a small number are yet
to start (three).
2. Of the 16 performance indicators where a target
has been set seven are on or above target, two
close to target and seven below target. Where
assessment against the same period last year is
possible (20 indicators), 12 are improving, three
are static and five are worsening.
3. The delivery of the Annual Action Plan is
progressing according to plan but there are a
very few performance issues in achieving targets
and achieving improvement. The issues
involved, and action being taken in each case
are detailed in the document ‘Managing
Performance Quarter 2 2014/15’ attached as
Appendix G.
Recommendation:
That Cabinet notes this report, welcomes the
progress being made and endorses the actions laid
out in Appendix G being taken by management
where there are areas of concern.
Reasons for
Recommendations:
To ensure the objectives of the Council are achieved.
52
Cabinet 3 November 2014
Overview and Scrutiny 12 November 2014
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 2 2014/15’ 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.
Content of the Report
The second 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 2014/15 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 2014/15
 Performance Indicators – progress reporting
In addition, a ‘performance indicators at a glance’ section gives an overview of
performance against targets and direction of travel.
3.
Conclusion
The majority of the 56 activities in the Annual Action Plan 2014/15 are on
track (44). Performance is being closely monitored, particularly for the
activities where issues or problems have been identified (six). Some activities
have already been completed successfully (three) and a small number are yet
to start (three).
Of the 16 performance indicators where a target has been set seven are on or
above target, two close to target and seven below target. Where assessment
53
Cabinet 3 November 2014
Overview and Scrutiny 12 November 2014
against the same period last year is possible (20 indicators), 12 are improving,
three are static and five are worsening.
The delivery of the Annual Action Plan is progressing according to plan but
there are a very few performance issues in achieving targets and achieving
improvement. The issues involved, and action being taken in each case are
detailed in the document ‘Managing Performance Quarter 2 2014/15’ attached
as Appendix G.
4.
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 2014/15 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.
5.
Financial Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the financial risk to the Council.
6.
Sustainability
There are no sustainability implications of this report.
7.
Equality and Diversity
There are no equality and diversity implications of this report.
8.
Section 17 Crime and Disorder considerations
There are no Section 17 Crime and Disorder implications of this report.
54
Agenda Item No_____14_______
4 and 4A Market Street, North Walsham
Summary:
This property has been a long term eyesore on a
prominent site in the centre of North Walsham.
Two years ago, Cabinet approved a range of property
related actions in the hope of enabling development, but
this development has not been forthcoming.
Following enforcement action, the owner demolished
the untidy buildings and the site is now hoarded.
This report details the options now available to the
Council and recommends acquiring the site by way of
the option agreement previously approved.
Options considered:
It is possible for the site to be left hoarded but this is
considered inappropriate given the prominence of the
site in the centre of North Walsham.
Conclusions:
Recommendations:
The option of Compulsory Purchase has also been
considered and rejected due to legal complexity and
therefore cost with no likely savings
There is no doubt that the site is in need of renovation
and given the unlikely development potential, it is
considered that acquiring the site is the best option.
Given the uncertainty of the open market value of the
site, further delegation is sought in relation to purchase.
That Cabinet approves the acquisition of the site
originally comprising 4 and 4A Market Street by way
of implementing the Option Agreement previously
approved.
That delegated authority to proceed with the Option
Agreement is given to the Chief Executive after
discussion with the Portfolio member for Property
Assets.
It is recommended that subject to the Council
acquiring the site that a capital budget of £30,000 is
included in the capital programme.
That this acquisition and development is funded
from the existing capital budget for North Walsham
regeneration and if necessary, from capital receipts.
Reasons for
Recommendations:
To provide delegation and funding for the acquisition
and improvement of the site.
4 and 4A Market Street, North Walsham
55
Cabinet Member(s)
Cllr Rhodri Oliver(Property
Ward(s) affected
North Walsham (all wards)
Contact Officer, telephone number and email:
Nick Baker 01263 516221
nick.baker@north-norfolk.gov.uk
1.
Introduction
1.1
Members will recall that in 2012, Cabinet approved a range of property
related actions for this site, comprising 4 and 4A market street North
Walsham, in the hope that development would be forthcoming on this mong
term eyesore site.
1.2
Essentially, the site was formed of some semi derelict shop buildings and the
disused, Council-owned public convenience. In isolation, neither was capable
of development but it was hoped that together this would be forthcoming.
1.3
The Cabinet decision gave delegated authority to the Chief Executive, after
discussion with the relevant Portfolio Member, to acquire the property by
private treaty for up to £35,000 if development did not take place within
certain timescales. An Option Agreement was signed with the owner to allow
for this.
1.4
The owner of the site has not been able to commence development on the
timescale agreed and, with the site continuing to deteriorate; the case was
passed to the Council’s Enforcement Board for action earlier this year. A
Building Act Notice was served requiring either repair of the property or
demolition, with a threat of works being carried out in default if the Notice was
not complied with. As a result, the owner demolished the ruinous buildings, at
no cost to the Council.
1.5
The site is now levelled and hoarded to prevent access, but continues to be a
negative impact on a prominent route into the centre of the town.
1.6
Officers have discussed with owner the possibility of the Council providing a
temporary landscaping solution to the site to open it up for public access. This
would have allowed the site to remain in the ownership of the current owner
and therefore available for future development, whilst improving the
immediate urban environment. However, the owner does not wish to take this
option and cannot be forced to do so.
1.7
Local members have been kept informed of progress and are in favour of the
proposal detailed below.
2.
Proposed Action
2.1
It is proposed that, in order to allow the enhancement of this area for the
benefit of North Walsham, the Council now exercises its right to purchase the
4 and 4A Market Street, North Walsham
56
property by way of the option agreement, and then landscapes the area for
public space.
2.2
However, in order to do this, various documents need to be served to
commence the process. In drafting these, it has been recognised that
potentially, the original decision may not have given sufficient delegation to
purchase and approval is now sought to extend this.
2.3
The Option Agreement (Exempt Appendix 1) requires that the Council serves
a Pre-Option Notice in writing, followed by the Option Notice. Once this
Notice is served, the Council is committed to the purchase at the price agreed
and/or set by the Independent Valuer (see below).
The price payable on exercising the option is to be the Open Market Value as
agreed between the parties or, if agreement cannot be reached, a value
provided by an Independent Valuer, appointed by the Royal Institute of
Chartered Surveyors, which shall not be less than £35,000.
In practical terms therefore, the Council would not offer less than £35,000.
However, the potential exists for any appointed valuer to value the site at
more than £35,000, with the binding purchase price then higher than that for
which delegation has been given; hence the need to extend the delegation.
2.4
The District Valuer has provided valuation advice on the site according to the
use agreed in the Option Agreement, at Exempt Appendix 2.
2.5
Once acquired, it is proposed the site would be landscaped. Given the overall
objective to improve the local environment in this area, suitable clearing of the
current demolition site would be required, before appropriate surfacing is
provided. A number of issues then need to be considered.
Clearly, public safety and associated liability is paramount, so a safe surface
needs to be provided. This links closely to the s17 requirements to ensure
that the area is not then attracting anti-social behaviour, so layout, of planting,
seating, etc. will be considered with this in mind.
Future maintenance costs of the area are also a consideration, so a "soft"
fully planted or grassed area, is not likely to be acceptable. The site is also in
a conservation area, so sensitivity in terms of the site being landscaped in a
manner appropriate to the local landscape is also important.
With this range of factors to be taken into account, cost estimates range
between £15,000 and £30,000 depending on surfacing and it is proposed that
a capital budget of £30,000 is provided for the improvement works after
acquisition.
3.
Alternative Options Considered
3.1
Legal advice has been taken regarding the possibility of Compulsory
Purchase. However, this concluded that, as the Council has a route to buy the
property already, that this is unlikely to be allowed. In addition, the owner
could well appeal our intention to purchase, with significant costs involved
and a much slower process.
4 and 4A Market Street, North Walsham
57
3.2
The Council could leave the site as it is, but this seems inappropriate in such
a prominent site and after we have already put in place a methodology for
acquiring the site.
3.3
Cabinet approval is therefore sought to move this process forward
4.
Conclusion
The Council has already put in place a process by which this site can be
acquired, in order to improve the immediate urban environment in this area of
North Walsham. However, the original delegated authority is potentially
insufficient for our current needs, so needs to be extended.
5.
Financial Implications and Risks
5.1
The risk here is that the Council’s offer is dismissed by the owner and the
appointed Valuer gives a very high valuation. This cannot be mitigated in
absolute terms, but advice has been sought by undertaking a further
valuation in addition to the District Valuer’s findings.
5.2
The proposed acquisition of this asset could be criticised, leading to a
reputational risk, but in light of the historic blight caused by this site, this is
considered a low risk.
6.
Sustainability
There are no sustainability issues arising from this report.
7.
Equality and Diversity
There are no Equality and Diversity issues arising from the report.
8.
Section 17 Crime and Disorder considerations
The empty site gives the potential for anti-social behavior, so improvement of
it, by way of landscaping would reduce this. As mentioned in the report, the
new landscape will also be subject to advice regarding future potential for
crime and disorder.
4 and 4A Market Street, North Walsham
58
3rd November 2014
Cabinet
Agenda Item No____15_________
Council Offices, New Road, North Walsham – consideration of offer made for
premises by JD Wetherspoon
Summary:
This report details a conditional offer made to the District
Council for the council office premises at New Road, North
Walsham by JD Wetherspoon and considers the issues
involved for the Council if it was to be minded to accept the
offer in terms of supporting existing tenants of the premises,
including North Walsham Town Council, find and relocate to
alternative premises in the town.
Conclusions:
The plans announced by JD Wetherspoon to take forward an
investment in North Walsham are regarded as a positive
development which it is believed will broaden the appeal of the
town amongst local people and visitors to the wider area, and
support the creation of up to 50 new jobs in the town.
If the Cabinet is minded to agree to the sale of its North
Walsham council offices premises to accommodate the
Wetherspoon plans, it will be necessary for the Council to
consider the support it is able to provide to existing tenants of
the building find and relocate to alternative premises in the
town.
Recommendations:
That delegated authority be provided to the Chief Executive in
consultation with the Cabinet Portfolio holder for Assets, that:a) Subject to being satisfied that JD Wetherspoon has
given reasonable consideration to other potential
investment opportunities in the town, negotiate the best
financial deal with JD Wetherspoon regarding their
interest in purchasing the North Walsham council
offices and site and,
b) If, in agreeing in principle to take forward discussions
with JD Wetherspoon about accommodating their
proposed investment in the North Walsham council
offices, take forward discussions with existing
occupiers of the council offices building so as to
facilitate the unencumbered freehold sale of the asset
to JD Wetherspoon.
59
3rd November 2014
Cabinet
Cabinet member(s):
Councillor R Oliver
Ward member(s)
North Walsham East, North & West
Contact Officers, t
S Blatch
Telephone
01263 516232
and e-mail:
steve.blatch@north-norfolk.gov.uk
1.0
Summary:-
1.1
This report details a conditional offer made to the District Council for the council office
premises at New Road, North Walsham by JD Wetherspoon which proposes the
redevelopment and extension of the main building on the site to accommodate one of
their pub/restaurant developments; and considers the issues involved for the Council if it
was to be minded to accept the offer in terms of supporting existing tenants of the
premises, including North Walsham Town Council, find and relocate to alternative
premises in the town.
1.2
The principle of JD Wetherspoon’s proposals are considered to be a positive investment
in the town by a respected national food and drink business which would introduce
something new to North Walsham town centre, broadening the appeal and increasing
the attraction of the town to local people and visitors to the wider area. It is believed that
the company’s proposals are a sign of increasing private sector confidence in the town,
which could serve as a catalyst in attracting further private sector investment in the town
from retail and hospitality businesses and lead to more positive perceptions of the town.
1.3
If the Council is minded to consider and accept the offer made by JD Wetherspoon for
the council offices property, it will be necessary for the Council to consider how it might
support North Walsham Town Council, the Citizens Advice Bureau and other tenants
occupying space in the building relocate to other premises in the town, so as to be able
to sell the unencumbered freehold of the property to Wetherspoon.
1.4
This report therefore explores the issues raised above and recommends that, subject to
JD Wetherspoon confirming that they have considered other investment opportunities in
the town and concluded that none are feasible for the business, the Council agrees to
the sale of the New Road council offices asset to JD Wetherspoon so as to
accommodate their proposals in the town.
2.0
Background:-
2.1
In June of this year, the Council received an unsolicited letter from JD Wetherspoon
expressing interest in acquiring the North Walsham council office building and site for
redevelopment to provide one of their pub / restaurants.
2.2
This interest was subsequently discussed with a member of Wetherspoon’s Acquisitions
Team and in August surveyors appointed by the company were shown round the council
offices building.
60
3rd November 2014
Cabinet
2.3
In early September Wetherspoon provided to the Council provisional floorplans outlining
their proposals and subsequently made a conditional offer to the Council for the
property, subject to obtaining planning and licensing consents for their proposed
investment.
2.4
Details of the Wetherspoon offer were shared with members of Cabinet and local North
Walsham members in a confidential briefing on 6th October, following which details of the
interest were outlined to the Clerk and Deputy Mayor of North Walsham Town Council,
before the company’s plans to establish a presence in the town were made public.
3.0
Site considerations:-
3.1
Site Description:-
3.1.1 The North Walsham council offices building and site occupy a prominent location at the
junction of New Road, Yarmouth Road and Market Place, immediately to the east of
North Walsham Market Place, opposite the town’s post office, and close to the library
and community centre. The premises therefore occupy a prominent accessible location,
well-related to the historic commercial and retail heart of the town.
3.1.2 The main council offices building, and some historic barn structures within the curtilage
of the property, are Listed; and the site lies within the North Walsham Conservation
Area. An aerial photo and photos of the building are attached to this report for
information.
3.1.3. To the north of the site occupied by the council offices land is in commercial and
residential use (hardware store and the Cedar Court residential development) fronting
Hall Lane; to the east are some commercial uses including a dental surgery, Hughes
Electrical store and an opticians, beyond which is the Council’s New Road public car
park accommodating the town’s library and community centre. To the south of the
offices, across New Road, is the town’s post office, telephone exchange and the
(currently being redeveloped / extended) Lidl store. To the west of the site are buildings
in commercial use fronting Church Street including McColls newsagent with accountants
office above, Christophers bakers and coffee shop and a chiropractor’s practice.
3.2
Planning policy:-
3.2.1 The New Road council offices lie within the North Walsham Town Centre Policy Area,
where a variety of retail, commercial, community and residential uses are acceptable in
principle, including an A3 use as proposed by JD Wetherspoon.
4.0
The Wetherspoon Proposal
4.1
JD Wetherspoon was established in 1979 and now has over 930 pubs/restaurants
trading across the country. In Norfolk the company has four establishments in Norwich,
two in Kings Lynn, and one in Dereham, Fakenham, Great Yarmouth, and Thetford. The
Limes at Fakenham opened in the former Garden House public house on Bridge Street
after an extensive refurbishment in March 2013. The company has a good reputation in
terms of the conversion and refurbishment of historic buildings to accommodate their
strong presence in town and city centre locations and proposes adopting this approach
in respect of their plans to establish a presence in North Walsham.
4.2
The company’s plans to open a pub/restaurant in North Walsham would see the
company making a £1.6million investment in the town through the purchase and
redevelopment of the New Road council offices property.
61
3rd November 2014
Cabinet
4.3
The proposal outlined to the District Council by JD Wetherspoon proposes:
retention of the council offices building which would be the subject of major
refurbishment to provide four small “snug” lounge areas within existing ground
floor rooms of the building together with an accessible toilet, with the first floor
accommodating staff changing and toilet facilities, managers office and meeting
room.
 Provision of large extension to the east of the existing building, linked through a
glass conservatory, which would include main seating area, feature bar and
kitchen on the ground floor, and customer toilets on the first floor.
 Retention of Listed barn structures which would be improved and used as beer
and bin stores, serviced by an access to the rear of the new building for services
/ deliveries.
 Areas of outside seating
5.0
Current use / occupation of council offices building and wider site
5.1
Currently the North Walsham council offices building accommodates:
the offices of North Walsham Town Council, which also uses the council chamber
for its meetings (approximately two per month) and the North Walsham
Community Information Office operated by the Town Council. This occupation
has been permitted under the 1972 Local Government Act, with the Town
Council not paying rent for their occupation but paying an annual service charge
which covers the direct costs of the Town Council operating from the building
(utility charges, Business Rates etc).

two first floor offices are rented to the North Norfolk Community Transport
Association at an annual rent of £2,150, plus an annual service charge of £1,850.

A small self-contained room at the front of the main building is rented to the North
Walsham and District Historical Society at an annual charge of £50.

An area of the car park accommodates the buildings of the Citizens Advice
Bureau for a peppercorn rent.

The barn structures within the wider site area are used by North Walsham Town
Council for storage purposes in conjunction with the weekly market and North
Walsham in Bloom on a without charge basis, but with the Town Council meeting
50% of the annual Business Rate charge levied for these buildings.
5.2
The annual net revenue costs of the North Walsham council offices to North Norfolk
District Council (excluding internal service recharges) were £8,755 in the 11/12 financial
year, £15,168 in 12/13, £2,117 in 13/14 and are estimated as being £8,098 in 14/15.
5.3
In late 2010 NPS prepared a condition survey report on the main council offices building
and this detailed a programme of works which would be required to the building in the
medium-term if the building was to be retained in public use. Details of the works
identified in the report were estimated to cost in excess of £200,000 including –
£150,000 expenditure in respect of the main council offices building to include
replacement doors and windows, works to the roof, replacement boiler and heating
system and internal and external redecoration; £9,000 undertaking works to re-point the
62
3rd November 2014
Cabinet
walls and upgrade the electricity services to the barns; and in excess of £40,000 in
rebuilding the rear wall of the yard area along the boundary with the hardware store to
the north and in re-surfacing the car park.
5.4
A requirement for the Council to take forward a programme of works on the North
Walsham council offices building and site is also referenced within the Asset
Management Plan adopted by Cabinet at its meeting of 12th May 2014, when a
provisional estimate of £220,000 of expenditure was identified as being needed in
respect of these assets.
6.0
Valuation advice
6.1
JD Wetherspoon has made a conditional offer for the council offices building and site, in
its current condition, subject to obtaining planning and Listed building consent and
licensing approval. Details of the offer made for the property are contained in the Exempt
Appendix to this report.
6.2
Following the initial approach by JD Wetherspoon in July, officers sought independent
valuation advice in respect of the New Road asset from Christie & Co, specialist valuation
advisors for the leisure and retail sectors, in order that an assessment could be made as
to whether any offer made for the property by Wetherspoon represented value for money.
The detailed valuation advice provided to the Council is summarised in the Exempt
Appendix.
7.0
Issues raised by the proposal:-
7.0.1 A number of issues are raised by the Wetherspoon proposal in terms of how their
operation would be accommodated alongside the established retail and pub/restaurant
offer in the town and the practical issues which arise in respect of the current use of the
council offices building and site. These issues are considered further below:7.1. How the Wetherspoon proposal would “fit” with the established pub/restaurant
offer in North Walsham;7.1.1 The plans announced by JD Wetherspoon to open one of their pub / restaurants in North
Walsham would represent a significant investment by a national hospitality business in the
town. Whilst the plans would undoubtedly bring something new to the town in terms of a
modern “eat and drink” offer popular with a diverse customer base – including families,
couples, older people and shoppers, whose needs are perhaps not widely catered for in
North Walsham at the present time; some concerns have been expressed by established
pubs, cafes and restaurant businesses in the town about the increased competition which
might arise through Wetherspoon’s presence in the town.
7.1.2 The Council needs to be mindful of the potential impact of any new development on
established businesses, however it is not appropriate for the Council to limit or restrict
competition as this is a means by which quality and choice in any market is raised. The
Council therefore believes that the investment proposed in the town by JD Wetherspoon
should be welcomed as a matter of principle, and would hope that the company’s offer
would attract more people into North Walsham town centre thereby generating more
footfall and business for all town centre businesses through improving the image and
perception of the town amongst local residents and visitors to the wider area.
7.1.3 Since JD Wetherspoon’s proposals have been placed in the public domain, some concern
has been expressed about the potential loss of the council offices building to a
commercial use. The District Council has therefore asked Wetherspoon to outline the
63
3rd November 2014
Cabinet
process the company goes through in identifying locations for their investments, both at a
strategic and local level, and in appraising investment opportunities within individual towns
/ cities. JD Wetherspoon has advised that in the context of North Walsham it wishes to
establish a presence in a location well-related to the commercial heart of the town (rather
than in an edge or out of town location) and that few, if any, real opportunities presented
themselves which were well-related to the town centre and of a scale / with the potential to
accommodate their proposed format / investment, beyond the opportunity presented by
the New Road council offices site and premises. On this basis it is considered appropriate
for the Cabinet to consider sale of the Council offices asset in order to accommodate
Wetherspoon’s proposed investment in the town.
7.2
Issues raised in the context of existing occupiers of the council offices:-
7.2.1 There are a number of existing occupiers of the North Walsham council offices building
and site whose interests the District Council will need to consider if it is minded to accept
the Wetherspoon offer for the council offices site and premises, in terms of providing
advice and assistance with identifying alternative premises from which these
organisations could operate and potentially providing them with support in relocating.
7.2.2 It is therefore suggested that the District Council meets with each of these organisations in
order to understand their future premises requirements and whether they would require
any support in relocating to alternative premises. At the present time there are a number
of vacant retail and commercial premises in North Walsham town centre which it is
believed could accommodate these organisations delivering a wider positive regeneration
benefit to the town, over and above the investment proposed by JD Wetherspoon.
8.0
Next Steps
8.1
If Cabinet is minded to support the recommendation that the North Walsham council office
building is sold unencumbered to JD Wetherspoon, the Council will need to undertake the
following actions to facilitate this development:
need to hold discussions with North Walsham Town Council, the Citizens Advice
Bureau, North Norfolk Community Transport Association and North Walsham and
District Historical Society to establish their future accommodation requirements –
either individually or collectively, and whether they wish for the Council to support
them in any move.

Prepare Heads of Terms with JD Wetherspoon for the sale of the building,
conditional upon the business securing planning consent and licensing approval
for their proposals;

Agree a timeline and detailed project plan for the project to support existing
tenants of the council offices building move from the premises, so as to deliver the
unencumbered freehold of the site to JD Wetherspoon for redevelopment.
9.0
Financial Implications and Risks
9.1
The financial issues and risks to the Council associated with this matter are considered
throughout the report, but particularly in sections 5 and 6 above.
9.2
Details of the financial offer made by JD Wetherspoon, along with the valuation advice
provided to the Council by Christie & Co, are provided in the Exempt Appendix to this
report.
64
3rd November 2014
Cabinet
9.3
Cabinet is asked to consider the Wetherspoon offer, alongside the valuation advice
provided by Christie & Co, and the ongoing revenue subsidy which the Council is
meeting in the operation of the building and the capital sum which would otherwise need
to be invested in the premises as identified in the NPS property condition report detailed
under paragraphs 5.2 and 5.3 above.
10.
Sustainability
10.1
The issues raised in this report do not in themselves raise issues of sustainability,
beyond that the proposal would strengthen the vibrancy and vitality of North Walsham
town centre through establishing a new pub/restaurant with wide public appeal – ie with
families, older people, shoppers and business-people.
11.
Equality and Diversity
11.1
A JD Wetherspoon pub / restaurant in North Walsham town centre would be open and
accessible to many groups within the local community. The company’s established
format is inclusive in its appeal.
12.
Section 17 Crime and Disorder considerations
12.1
This report does not raise any issues relating to Crime and Disorder beyond issues
which will be considered through the statutory licensing process.
65
Appendix H
66
Appendix I
67