Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
Agenda Item No______9_______
2012/13 BASE BUDGET AND PROJECTIONS FOR 2013/14 TO 2015/16
Summary:
This report presents for approval the proposed budget for 2012/13 for
both revenue and capital and also provides indicative budgets for the
following three financial years 2013/14 to 2015/16.
Conclusions:
The budget is presented for approval each year. This report presents
the budget for 2012/13 along with the financial projections for the
following three years. The recent update of the Corporate Plan, which
was presented to Members in October, was accompanied by an
appendix entitled ‘Financial Plan Update 2011/12 – 2014/15, Strategic
Context and Organisational Workstreams’. The budget has been
produced based on the assumptions detailed within this paper
(updated where necessary) and takes account of the final grant
settlement announcement for 2012/13 made on 2 December 2011.
The report outlines the assumptions and documents the financial risks
to the Council in setting the annual budget and forecasting future
spending plans and resources.
Recommendations:
It is recommended that Members agree and recommend to Full
Council:
a) The 2012/13 revenue account budget as outlined at Appendix F
and that the surplus of £87,975 be allocated to the Restructuring
Proposals reserve;
b) The demand on the Collection Find will be subject to any
amendments as a result of final precepts;
(i)
£5,789,172 for District purposes;
(ii)
£1,561,174 (subject to confirmation of one final precept) for
Parish/Town precepts;
c) The movement on the reserves as detailed at Appendix I;
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
d) The updated Capital Programme and it’s financing for 2011/12 to
2014/15 as detailed at Appendix J and as contained within the report
along with the authority to negotiate for the purchase of a new waste
vehicle;
e) The new capital bids as detailed at Appendix K;
f) That Members note the current projections for 2013/14 to 2015/16.
Cabinet member(s):
Ward(s) affected:
All
All
Contact Officer, telephone
number, and e-mail:
Duncan Ellis, Acting Financial Services Manager, 01263
516330, Duncan.Ellis@north-norfolk.gov.uk
1. Introduction
1.1
This report contains the details of the 2012/13 revenue base budget and the indicative
projections for the following three financial years. The recent update of the Corporate
Plan was presented to Cabinet in October 2011 and was accompanied by an appendix
entitled ‘Financial Plan Update 2011/12 -2014/15, Strategic Context and Organisational
Workstreams’, hereafter referred to as the Financial Plan. The opportunity has been
taken to restate the assumptions that underlie the budget and to identify where these
have changed since the presentation of this paper.
1.2
An updated Capital Programme has also been included covering the period 2011/12 to
2014/15.
1.3
This report will also be considered by Overview & Scrutiny Committee on 15 February
2012 and then presented for approval by Full Council on 22 February 2012.
1.4
The Financial Plan was projecting a budget gap of just under £4 million over the next 3
years. This position took account of the known spending pressures at the time and the
forecast grant reductions.
1.5
Since October the detail of the budget for 2012/13 has continued to be worked on by
both officers and Members resulting in the budget now presented in this report, which
includes the final grant settlement figures for 2012/13, which were announced in
December 2011.
2.0
Finance Settlement – Overview
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
2.1
On 13 December 2010 the Secretary of State for Communities and Local Government
announced the two-year provisional settlement for local government, covering 2011/12
and 2012/13. The settlement included allocations of formula grant (Revenue Support
Grant and Redistributed Business Rates) and other government grants for each of the
next two financial years.
2.2
Some of the key messages from the announcement included:
•
•
•
•
•
•
•
Government formula grant funding for local authorities in 2011/12 (excluding the
Police grant) fell by 12.1% to £24.9 billion. Of this sum, £19 billion came from
redistributed business rates leaving £5.9 billion revenue support grant from
general taxation.
Formula grant funding for 2012/13 fell by a further 7.8% to £22.9 billion.
A number of specific and special grants were withdrawn or incorporated into the
formula grant.
Headline figures showed reductions in ‘revenue spending power’ for local
authorities of no more than 8.9% both in 2011/12 and 2012/13. ‘Revenue
spending power’ is a new concept and in broad terms includes formula grant,
council tax and some specific grants including benefits administration subsidy
and the homelessness prevention grant. Therefore, it does not refer to the
change in formula grant after rebasing which has been the often quoted headline
figure in the past.
Transition grant funding was added of £85 million in 2011/12 (benefiting just 37
authorities) and £14 million in 2012/13 (benefiting 12 authorities, all shire
districts).
The provisional settlement allowed for the distributional changes in areas of
responsibility such as the transfer of concessionary fares from districts to
counties.
The provisional settlement confirmed total grant funding of £650 million to fund
the implementation of the council tax freeze in 2011/12. The £650 million
equated to the additional income which would be generated from a 2.5% council
tax increase. It was confirmed that there would be continued funding to support
this amount over the four years of the spending review. This meant that in
‘revenue spending power’ terms local authorities in the years 2012/13 to 2014/15
should be no worse off from freezing council tax in 2011/12. It was however, also
announced at that time, that there would be no additional funding to support any
further freezes from 2012/13 onwards.
2.3
For NNDC the final settlement for 2011/12 was announced on 31 January 2011 along
with an updated provisional settlement for 2012/13, this resulted in an additional £44,762
being allocated in 2011/12 and a reduction of £60,958 in 2012/13, compared to the
previous announcements.
3.
Finance Settlement 2012/13 – North Norfolk District Council
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
3.1
Confirmation of the Councils final allocation for 2012/13 was issued on 2 December
2011, this confirmed the amounts that had been provisionally announced back in
January 2011 and have been included within the general fund summary.
3.2
This section outlines the implications to NNDC of the final settlement. The table below
compares the main elements of the overall grant position for the Council in both 2011/12
(re-based) and 2012/13.
Table 1
2012-13
£
2011-12
£
Element
RSG
121,103
1,666,790
6,247,334
5,392,348
6,368,437
7,059,138
3,489,621
3,881,467
(1,723,000)
(1,745,148)
Central Allocation
4,662,967
5,158,664
Floor Damping
(204,285)
(235,845)
Sub Total
6,225,303
7,059,138
Council Tax Freeze Grant re 2011-12
143,134
143,134
Council Tax Freeze Grant re 2012-13
145,000
0
6,513,437
7,202,272
Redistributed Business Rates
Relative Needs
Relative Resources
Total
3.3
Like all authorities, NNDC receives formula grant. The basic element of the formula
grant is a standardised amount called the central allocation. All shire districts will
receive a central allocation per head of resident population.
3.4
The central allocation is increased by an amount relating to the relative need to spend of
each authority assessed by taking into account various “indicators”. For shire districts
these include resident population, population density and sparsity, day visitors, benefit
claimants and add-ons for fixed costs, flood defence, coast protection and capital
financing.
3.5
A reduction then takes place reflecting relative resources (the ability to raise income
from council taxes) per head of population in 2012/13.
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
3.6
These three elements together produce a formula grant figure for North Norfolk in
2012/13. To ensure that authorities receive at least a minimum grant change (called the
‘floor’) the results are adjusted by a mechanism called floor damping. For NNDC in
2012/13 floor damping results in a reduction in the total grant received.
3.7
The headline cash reduction figures for the total formula grant are summarised in Table
2 below. The rebased figure for 2010/11 is actual grant allocated for the year after taking
account of a number of adjustments to compare between years on a like for like basis,
that is taking account of changes in responsibilities, for example the transfer of
concessionary fares from districts to counties.
Table 2
2010/11
Actual
2011/12
Rebased
2011/12
Final
Total
formula
grant
9,006,858
8,226,642
C Tax
Freeze
2011-12
2012/13
Final
2013/14
Forecast
2014/15
Forecast
2015/16
Forecast
7,059,138
6,225,303
5,902,832
5,451,266
5,451,266
143,134
143,134
143,134
143,134
0
145,000
0
0
0
C Tax freeze
2012-12
Total Grant
9,006,858
8,226,642
7,202,272
6,513,437
6,045,966
5,594,400
5,451,266
Reduction
-
-
1,024,370
688,835
467,471
451,566
143,134
Reduction %
-
-
12%
10%
7%
7%
3%
(These figures closely match the average of shire district councils.)
3.8
Table 2 above shows the actual cash reduction in grant for 2012/13 is £688,835
representing a 10% reduction in cash terms and for 2013/14 is £467,471 representing a
reduction of 7%.
3.9
This is after the impact of the floor damping mechanism which resulted in a reduction in
grant for NNDC of £204,285 in 2012/13 and £235,845 in 2011/12. The floor damping
mechanism ensures all authorities receive a maximum reduction, in very simple terms
the scheme works by taking grant from those authorities above the floor to be allocated
to those below the floor to bring them to the floor. For NNDC it can be argued the effect
of floor damping is that formula grant support is not being received in full for the
increased spending in recent years on coast protection and internal drainage board
levies (flood defence).
3.10
As mentioned above a council tax freeze grant was received for the 2011/12 financial
year totalling £143,134 and it was confirmed that there would be continued funding to
support this amount over the four years of the spending review. It was also indicated at
that time that there would be no additional funding to support any further freezes from
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
2012/13 onwards. However, the Chancellor of the Exchequer announced in early
October that a further grant would be offered to those Authorities which freeze the
Council Tax for 2012/13 at 2011/12 levels, but this grant was to be a ‘one-off grant’. This
means the grant will not be paid in future years (i.e. 2013/14 and 2014/15), so it differs
from the Council Tax Freeze Grant for 2011/12 which will continue to be paid in 2012/13,
2013/14 and 2014/15. As the one-off grant is payable for 2012/13 only then it effectively
becomes a further cut in 2013/14. The budget as presented assumes no council tax
increase and includes the receipt of the one-off freeze grant for the 2012/13 financial
year only.
3.11
The final allocations for 2012/13 service related grants have also now been announced;
the two grants relevant to the Council are the Benefits Administration Grant and
Homelessness Prevention Grant.
3.11.1 Benefits Administration Grant – This grant was confirmed as being £718,690 for
2012/13 compared to the previous years allocation of £768,869 which represents
a reduction of £50,179 which equates to 6.5%. No announcement has yet been
made for the following financial year, however, it is expected that further
reductions to this grant will be made and annual reductions of 10% have been
built into the future years projections.
3.11.2 Homelessness Prevention Grant – Grant allocation of £120,470 was announced
for 2012/13 and this has now been factored into the budget.
New Homes Bonus
3.12
Within the Comprehensive Spending Review the government announced plans for
funding to be made available for the New Homes Bonus Scheme. A consultation on the
scheme commenced in November 2010 which ended on 24 December 2010. The New
Homes Bonus was a new scheme designed to incentivise and reward councils and
communities who wished to build new homes in their area. The government set aside
nearly £1 billion over the Comprehensive Spending Review period for the scheme,
including nearly £200 million in 2011/12 (year 1) and £250 million for each of the
following three years. Funding beyond those levels would come from reductions in
formula grant. The Government believed this would be a simple, powerful, transparent
and permanent feature of the local government finance system. The key features of the
scheme were as follows:
•
The bonus would be paid as a grant, which in summary will from 2011/12 match
fund the additional council tax for each new home and property brought back into
use, for each of the 6 years after that home is built with an additional amount for
affordable homes. The proposed addition was £350 for each of the six years for
each affordable home built.
•
The match funding would be split between upper (county and possibly police)
and lower tier authorities (districts). The ratios to be used for the split were
confirmed with 80% being returned to lower tier authorities.
•
The value of the bonus should increase for at least six years. The payment for
2011/12 was based upon the growth in new homes in the year to October 2010.
The 2012/13 bonus reflects growth in the two years to October 2011. In the third
year, the bonus will be based on the growth in the first, second and third years of
the scheme and so on.
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
3.13
•
Local authorities would be able to decide how to spend the funding in line with
local community wishes. The Government expected local councillors to work
closely with their communities – and in particular the neighbourhoods most
affected by growth – to understand their priorities for investment and to
communicate how the money will be spent and the benefits it would bring. This
may have related specifically to the new development or more widely to the local
community. For example, they may have wished to offer council tax discounts to
local residents, support frontline services like bin collections, or improve local
facilities like playgrounds and parks.
•
The bonus would be paid through section 31 of the Local Government Act 2003
as an unringfenced grant.
The New Homes bonus has now been operational for a year and the Council’s grant
figures for 2011/12 (final) and 2012/13 (provisional) are known and presented in the
table below.
Table 3
2011/12 (final)
Net growth in numbers of properties (Oct 2009 to Oct
2010) @ £1,439.22 per Band D property
Extra for new affordable homes
Number
Band D
Equivalent
Bonus
364
303.78
£437,203
n/a
n/a
nil
Total for year (payable each year for 6 years)
£437,203
Split as follows;
North Norfolk District Council (80%)
Norfolk County Council (20%)
£349,763
£87,440
2012/13 (provisional)
Net growth in numbers of properties (Oct 2010 to Oct
2011) @ £1,439.33 per Band D property
Extra for new affordable homes (year 2010/11) @
£350 per property
254
201.44
£289,945
107
n/a
£37,450
Total for year (payable each year for 6 years)
£327,395
Plus element based on 2011/12 (from above)
Total receivable for 2012/13
Split as follows;
North Norfolk District Council (80%)
Norfolk County Council (20%)
£437,203
£764,598
3.14
3.15
£611,678
£152,920
The growth in the number of properties each year is calculated as new dwellings less
any demolitions plus or minus the net change in empty dwellings.
The new homes bonus scheme will continue in future years (with the effect of each
year’s growth being added to the total receivable). The payments for 2011/12 and
2012/13 are being made by the Government without reduction of the previously
announced external funding figures. However, from 2013/14 the cost of the new homes
bonus will exceed the national funding set aside by the government and by progressively
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
increasing amounts each year. Originally it had been announced that the shortfall would
be met by reducing formula grant by top-slicing. With the new regime being introduced
by the localisation of business rates, each billing authority will have to pay over a
proportion of the business rates collected in their area to a national pot which will be
used to cover the deficit. As a result only those authorities who achieve relatively high
growth in properties over the years will benefit in net terms from the bonus and with little
or no growth could suffer significantly. It has been assumed within the forecasts
therefore that the income will remain at 2012/13 levels.
3.16
The 2012/13 allocation has been transferred into a New Homes Bonus reserve for
2012/13 and future years and is discussed in more detail within section 7 below and also
within the risks section at the end of the report.
Local Government Finance Bill
3.17
The Local Government Finance Bill was published in December 2011. It contains
provisions from 2013/14 which will implement proposals for business rates retention,
localisation of council tax support and technical reforms to council tax which are key
elements of the Government’s localism agenda.
3.18
Business rates retention will at the outset include a rebalancing of resources through a
system of ‘tariffs’ and ‘top ups’, so that no council will suffer a reduction in resources.
However, thereafter changes in funding will depend on local business rates growth. The
Government has indicated that it will fund the additional net costs of implementing the
changes brought about by business rates retention so no additional budgetary provision
has been made for this at this stage.
3.19
Localised council tax support is being coupled with the need to achieve savings of £420
million nationally from 2013/14. The main affected groups will be working age council
benefit recipients. Authorities will have to design schemes that reduce awards to these
groups or reduce spending in other areas of their budgets to meet the required savings,
or increase revenue from council tax or a combination of all three options. In two-tier
areas such as Norfolk the impact of localising support will be shared between the uppertier authorities (the County Council and the Police Authority) and the lower-tier
authorities (the District Councils). However, it must be recognised that the financial risks
associated with the design of the council tax support scheme needs to balance the
demands of the scheme and the level of future council tax. The risk is being transferred
from central to local government and this factor has been considered when
recommending NNDC’s level of reserves.
3.20
Technical reforms to council tax will give local authorities the opportunity to exercise
flexibilities that will enable the raising of more council tax from the owners of second
homes, empty properties and mortgagees in possession. Any increased revenue will be
shared with the upper-tier authorities in proportion to their levels of council tax. NNDC
has already reduced discounts on most second homes and empty properties as allowed
for in existing legislation so in relative terms may benefit from the new proposals to a
lesser extent than some other authorities. There are likely to be costs, yet to be
assessed, of implementing these technical reforms.
The Localism Act
3.21
The Localism Act received Royal Assent on 15th November 2011 and its wide ranging
provisions will be implemented over the next few years.
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
3.22
There are four main areas in the Act:
• new freedoms and flexibilities for local government
• new rights and powers for communities and individuals
• reform to make the planning system more democratic and more effective
• reform to ensure that decisions about housing are taken locally
3.23
Each of these areas will bring about changes which will affect not only what NNDC does
but how it does it with the inevitable financial consequences and risks at a time when
resources are being cut.
3.24
The headline provision is that concerning referenda on council tax increases. The
current power to “cap” council tax rises is to be replaced with a power for local
communities to decide. The Secretary of State will determine a threshold for council tax
increases annually. If the council seeks to increase their council tax demand above this
threshold there will have to be a referendum of all local voters for approval or rejection of
the proposed rise.
3.25
The thresholds for 2012/13 have recently been announced as 3.5 per cent for single-tier,
county councils and shire districts, 4 per cent for police and fire authorities and the GLA
and 3.75 per cent for the City of London. These are 1 per cent above the figures for
which the one-year freeze grant for 12/13 will be paid.
3.26
Planning Fee Increases – In November 2010 the Department for Communities and Local
Government launched a consultation paper on proposals for changing application fees.
Planning fees are currently set nationally but the consultation paper proposed changes
to the planning application fees regime which would decentralise responsibility for setting
fees to local planning authorities with a view to breaking even. These provisions now
form part of the Localism Act but as yet no further guidance has been received following
the consultation process to indicate how any new scheme should work in practice. Once
this guidance is received work will be able to commence on the practical application of
the new system.
3.27
With respect to housing changes the homelessness obligations remain with the local
authority but the means by which they are dealt with has changed. The Localism Act
extends the offer of accommodation to homeless applicants to include private sector
accommodation. Tenancies must be for a minimum of 12 months.
3.28
Finally the Act also transfers responsibility for investigating complaints about the local
housing authority from the Local Government Ombudsman to the Independent Housing
Ombudsman whose remit is extended to cover local authorities in their capacity as
registered providers and managers of housing services.
4.
Revenue Account Base Budget
4.1
The detail of the revenue budget now presented for approval is included in Appendix F
which shows the overall position in the form of the General Fund Summary. Further
detail on the individual service budgets is included at Appendix G, which details the
movement of the 2012/13 budget compared to the base budget for 2011/12.
4.2
Due to the budget cuts being imposed on local authorities no growth bids were invited for
revenue expenditure for 2012/13. Capital bids were invited and managers were asked to
focus on schemes related to health and safety, invest to save projects or contractual
commitments. The capital programme is discussed in detail at Section 8.
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
4.3
The underlying assumptions contained within the revenue base budget for 2012/13 are
as follows:
4.3.1 Council Tax – The budget assumes a council tax freeze in 2012/13 and for the
two subsequent years and thereafter increases of 2.5%. This means that the district
element of the council tax remains at £138.87 for 2012/13.
4.3.2 Employee budgets – A two year pay freeze was recommended by central
government starting in 2011/12 and therefore the revenue budget does not make any
allowance for an inflationary pay award for 2012/13. The Chancellor’s Autumn Statement
on the 29 November proposed a further cap on pay awards of 1% for 2013/14 and for
the following year, however this was subject to national negotiation and at present, no
increase has been assumed within the current salary estimates. If a 1% award were to
be made this would equate to an increased budgetary requirement of approximately
£80,000 per annum and this is discussed further within the risks section of the report. An
allowance has been made to reflect turnover savings of 2% as in previous years and
where annual increments are due these have continued to be factored in. The employer
pension contribution rates for the three years covering 2011/12 to 2013/14 were
determined by the results of the pension fund tri-annual revaluation as at 31 March 2010.
From 2011/12, there was a proposal to stabilize the contribution rate at 14.5% of the
payroll plus fixed monetary amounts for three years. These assumptions have again
been factored into the 2012/13 budget and future forecasts. The next valuation is due on
31 March 2013 to take effect from April 2014 and the contribution rate and fixed payment
will be adjusted at that point depending on the scheme position as at 31 March 2013.
4.3.3 Fees and Charges – Full Council in December 2011 approved the fees and
charges for 2012/13. The impact of the fee increases have been factored into the
budget. Further commentary is provided at section 5.
4.3.4 Contract inflation – The most significant of the Council’s contracts is the Waste
contract. The new contractor prices have been included in the 2012/13 budget for all
waste, cleansing and grounds maintenance services as per the tendered contract.
4.3.5 Investment income – The level of income earned from the Council’s investments
is anticipated to be lower than the levels achieved in the current financial year due to the
continuing uncertainty in the global financial markets and the economy generally. A total
of £269,900 is at present anticipated for 2012/13. The primary concern is the security of
the sums invested and this remains the main consideration when selecting
counterparties. The average investment rate anticipated in the forward year is 1.03%
compared with 1.77% for the revised estimates for 2011/12. The income budget
assumes the investment portfolio is invested with UK counterparties in call accounts and
term deposits, and that existing deposits will continue to their maturity date. Money
market funds will also be used to a significant extent, but no use of pooled funds is
anticipated, as at the present time the Council is advised to keep direct control of its
funds. It has been assumed that market risk will ease somewhat, enabling a proportion
of the portfolio to be invested for longer periods at interest rates marginally higher than
the official bank rate, which is forecast to remain at 0.5% throughout the budget year,
and beyond. However, this may be an optimistic position as financial market stress is
expected to be a feature of 2012. A disorderly outcome to the Eurozone sovereign debt
crisis remains a possibility, and the prospects for growth are poor, although inflation is
moderating. Further details of the Council’s investment strategy are set out in the
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
Treasury Management Strategy Statement and Investment Strategy 2012/13 to 2014/15
which appears elsewhere on this agenda.
4.4
Papers were issued to senior managers during August requesting savings bids, or
packages of bids, equivalent to a 10% reduction on their net budget. This provided a
potential package of savings of £1.3 million for consideration by Cabinet and to inform
the service prioritisation exercise carried out with CMT on 10 October in accordance with
the agreed corporate planning timetable.
4.5
Following the savings exercise a report recommending the inclusion of these bids within
the 2012/13 budget was presented to Cabinet on 28 November and subsequently
approved by Full Council on 13 December 2011 and additional detail regarding the bids
can be found within the previous report.
Table 4 – savings and additional income 2012/13 onwards
Service Area
2012/13
£
2013/14
£
2014/15
£
2015/16
£
Community
Building Control (C1)
(6,000)
(6,000)
(6,000)
(6,000)
(14,500)
(14,500)
(14,500)
(14,500)
(3,000)
(3,000)
(3,000)
(3,000)
Planning Policy (C10,C11)
(16,100)
(16,100)
(16,100)
(16,100)
Planning Management & Community
Support (C12,C13)
(36,900)
(36,900)
(36,900)
(36,900)
Housing Services (C14)
(34,980)
(34,980)
(34,980)
(34,980)
Homelessness (C15)
(24,000)
(24,000)
(24,000)
(24,000)
(5,000)
(5,000)
(5,000)
(5,000)
Environmental Sustainability (E1)
(18,000)
(18,000)
(18,000)
(18,000)
Taxi Licensing (E2)
(10,000)
(10,000)
(10,000)
(10,000)
Environmental Health
(E3,E4,E5,E6,E23)
(76,000)
(89,045)
(88,769)
(88,769)
Civil Contingencies (E7)
(8,000)
(8,000)
(8,000)
(8,000)
Drainage Grants (E8)
(9,865)
(9,865)
(9,865)
(9,865)
Conservation and Design (C2,C3)
Development Management (C7)
Economic Development & Tourism
(C17 b)
Environment
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
Service Area
2012/13
£
2013/14
£
2014/15
£
2015/16
£
Arts & Entertainments (E10,E13)
(7,720)
(12,720)
(17,720)
(17,720)
Museums (E12)
(5,550)
(5,550)
(5,550)
(5,550)
Other Parks & Open Spaces (E11)
(7,397)
(7,397)
(7,397)
(7,397)
(26,772)
(26,772)
(26,772)
(26,772)
Members Costs (I3)
(17,000)
(17,000)
(17,000)
(17,000)
Legal Services (I4)
(4,000)
(4,000)
(4,000)
(4,000)
(26,000)
(26,000)
(26,000)
(26,000)
(6,000)
(6,000)
(6,000)
(6,000)
Geographic Information System (GIS)
(I9)
(10,000)
(10,000)
(10,000)
(10,000)
ICT Applications (I11)
(33,661)
(33,661)
(33,661)
(33,661)
Markets (R3)
(23,698)
(23,698)
(23,698)
(23,698)
Industrial Estates (R4)
(15,655)
(15,655)
(15,655)
(15,655)
(2,000)
(2,000)
(2,000)
(2,000)
Windmill Restaurant (R8)
(12,500)
(25,286)
(25,286)
(25,286)
Property Services (R9)
(10,000)
(10,000)
(10,000)
(10,000)
Coast Protection (R13)
(22,000)
(22,000)
(22,000)
(22,000)
Community Transport (R18)
(23,955)
(23,955)
(23,955)
(23,955)
Performance Management (R19)
(3,000)
(3,000)
(3,000)
(3,000)
Performance management (R20)
(3,364)
(3,364)
(3,364)
(3,364)
(13,796)
(13,796)
(13,796)
(13,796)
(4,000)
(4,000)
(4,000)
(4,000)
Waste Disposal & Recycling
(E17,E19,E21)
Information
Information & Communication
Technology (ICT) (I6)
Telephony (I8)
Resources
Administrative Buildings (R7 – see
income below also)
Personnel & Payroll (R23)
Treasury Management (R25)
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
Service Area
2012/13
£
2013/14
£
2014/15
£
2015/16
£
Central Costs (R26)
(3,260)
(3,260)
(3,260)
(3,260)
Corporate Management (R27)
(6,560)
(6,560)
(6,560)
(6,560)
Democratic Representation &
Management (R28)
(4,400)
(4,400)
(4,400)
(4,400)
Accountancy (R29)
(19,375)
(19,375)
(19,375)
(19,375)
Internal Audit (R30)
(5,500)
(5,500)
(5,500)
(5,500)
Sundry Debtors and Creditors
(R31,R32)
(1,750)
(1,750)
(1,750)
(1,750)
(581,258)
(612,089)
(616,813)
(616,813)
Development Management New Fees
(C5,C6)
(15,000)
(15,000)
(15,000)
(15,000)
Land Charges Fee Increase (C9)
(18,000)
(18,000)
(18,000)
(18,000)
Street Naming & Numbering New
Fees (C9)
(2,000)
(3,000)
(5,000)
(5,000)
Homelessness (C16) Net Increase in
Bed & Breakfast Recoverable
Charges (C16)
(7,380)
(7,380)
(7,380)
(7,380)
Taxi Licensing Full Cost Recovery
(E2)
(10,000)
(10,000)
(10,000)
(10,000)
Waste Disposal & Recycling
(E18,E20)
(43,200)
(43,200)
(31,200)
(31,200)
Legal Services Externally Generated
Income (I2)
(40,000)
(40,000)
(40,000)
(40,000)
Car Parks Increased Charges (R1)
(100,000)
(100,000)
(100,000)
(100,000)
Rental Properties – Parklands 10%
Increased Rental (R5)
(5,108)
(5,108)
(5,108)
(5,108)
Administrative Buildings Increased
Service Charge for North Walsham
(3,900)
(4,500)
(7,000)
(7,000)
Sub Total Savings
Additional Income/Grant:
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
Service Area
2012/13
£
2013/14
£
2014/15
£
2015/16
£
Offices (R6)
Administrative Buildings (R7 – see
saving above also)
(6,250)
0
0
0
Beach Huts & Chalets Increased
Charges (R10)
(10,000)
(10,000)
(10,000)
(10,000)
Revenues & Benefits Review of
Recoverable Subsidy (R15)
(15,000)
(15,000)
(15,000)
(15,000)
Revenues & Benefits Increased Court
Costs (R16)
(40,000)
(40,000)
(40,000)
(40,000)
Sub Total Additional Income/Grant
(315,838)
(311,188)
(303,688)
(303,688)
Total Savings/ Income
(897,096)
(923,277)
(920,501)
(920,501)
(Note – All savings are shown gross. Any one off redundancy or severance costs
associated with delivering these savings will be met as one off costs from the
Restructuring Proposals reserve).
4.6
In addition to the savings above, a consultation paper was issued to the Corporate
Management Team (CMT) outlining a proposed new structure to be operational from
2012/13 which would see the size of the management team reduced from five to three,
with subsequent savings estimated to be £150,000. A report was presented to Full
Council on 14 December 2011 outlining a two stage process for this restructure, the first
stage of which would see CMT reduce from 5 to 3 to form a newly branded Corporate
Leadership Team (CLT) while the second stage would include a review of Senior
Management Team (SMT) with the intention of reducing the number of posts and
changing responsibilities.
4.7
The recommendations contained within the report were subsequently agreed and a
further saving of £150,000 has been included within the 2012/13 budget and for future
years projections.
4.8
The Council is legally required to consider the equality duty in its decision making and
this includes the budget process. As part of any savings or investments the Council must
consider how it can:
1. Eliminate unlawful discrimination, harassment and victimisation;
2. Advance equality of opportunity between different groups; and
3. Foster good relations between different groups by tackling prejudice
and promoting understanding.
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
4.9
Included within the pack of information received by managers as part of the savings
exercise was a ‘Budget Equality Form’ which provided the framework to undertake an
Equality Impact Assessment (EQIA), which managers were required to complete. This
form requested details of the bid, and whether it had any affect on a number of protected
groups, and where any negative affect was identified, how this could be minimised or
removed.
4.10
The completed forms can be found on the Council’s website on the Finance page under
the section which covers the Council Budget. A cumulative assessment has been
undertaken in relation to the equality forms and the savings proposals and no negative
impact has been highlighted as a result of this exercise.
4.11
Alongside the December announcement of the final finance settlement grant for 2012/13,
some service specific grants were also announced, namely the homelessness and
benefits administration subsidy, and these have now been reflected in the budget
presented for approval.
4.12
The General Fund Summary presented at Appendix F shows a balanced budget for
2012/13 and is summarised in Table 5.
Table 5 - Variance of 2011/12 to 2012/13
Base Budgets
2011/12
Updated Base
Budget
£
16,924,397
(2,535,573)
14,388,824
Net Cost of Services
Non Service Expenditure/ Income
Net Budget Requirement
Income:
Local Taxpayers – Parishes
(1,450,222)
Local Taxpayers – District Council
(5,736,464)
Government Grant
(7,202,138)
Council Tax Freeze Grant – ongoing (10/11)
Council Tax Freeze Grant – one off (11/12)
Total Income
(14,388,824)
(Surplus)/Deficit
0
(Note: Reductions in expenditure are shown in (brackets)
2012/13
Base
Budget
£
15,151,670
(1,375,862)
13,775,808
Variance
£
(1,772,727)
1,159,711
(613,016)
(1,561,174)
(5,789,172)
(6,225,303)
(143,134)
(145,000)
(13,863,783)
(87,975)
(110,952)
(52,708)
976,835
(143,134)
(145,000)
525,041
(87,975)
4.13
Non-Service Expenditure and Income includes the adjustments for notional items that
are required to be charged within Net Cost of Services, for example, Financial Reporting
Standard 17 pension costs and capital charges.
4.14
Appendix G shows the detail of the service movements for each of the four service
areas. Table 6 provides a summary of the main movements in Net Cost of Services with
any notional charges shown separately.
Table 6 – Movement in Net
Cost of Services
Employees
2011/12
Updated Base
Budget
£
10,293,434
2012/13
Base
Budget
£
9,449,471
Variance
£
(843,963)
Percentage
movement
%
(8.2)
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
Premises
Transport
Supplies and Services
Third Party Payments
Transfer Payments
Income
Total Direct Costs and Income
Notional Charges:
Capital Charges
FRS17
Reffcus
Total Notional Charges
Total Net Costs
2,520,064
391,591
9,731,431
19,698
32,824,013
(42,362,517)
13,417,714
2,489,312
342,578
9,336,213
0
34,547,835
(45,124,051)
11,041,358
(30,752)
(49,013)
(395,218)
(19,698)
1,723,822
(2,761,534)
(2,376,356)
(1.2)
(12.5)
(4.1)
(100.0)
5.3
6.5
(17.7)
1,480,838
(251,277)
2,277,122
3,506,683
16,924,397
1,814,493
(256,842)
2,552,661
4,110,312
15,151,670
333,655
(5,565)
275,539
603,629
(1,772,727)
22.5
2.2
12.1
17.2
(10.5)
4.15
The income variance of (£2.8m) is partly offset by the increase in transfer payments of
£1.7m from the line above; the balance is due mainly to the receipt of monies formerly
transferred to the Local Strategic Partnership and the increased allocation of the New
Homes Bonus.
4.16
This report recommends that the surplus of £87,975 for 2012/13 be allocated to the
Restructuring Proposals reserve to fund one off costs associated with restructuring,
further details on this reserve are provided at 7.10.
5.
Fees and Charges
5.1
Detailed proposals for fees and charges for 2012/13 were included within the 2011/12
revised budget report to Cabinet on 28 November, these were subsequently approved
by Full Council on 14 December. Generally, non-statutory fees and charges have been
increased by between 2.5% and 3% from 1 April 2012 unless market conditions and
current demand have indicated different percentages should be applied.
5.2
Proposals for changes to Planning Application fees were announced on 15 November
2010 along with a consultation paper. Fees for planning applications are currently set
nationally and the new legislation (subject to approval) will allow Local Authorities to set
their own fees with the view to recovering costs. However, since the consultation no
further guidance has been issued on how these proposals are to work in practice and no
further additional income has been assumed at this point.
6.
Council Tax 2012/13
6.1
Table 7 below summarises how the budget for 2012/13 will be financed and the District’s
net call on the collection fund for 2012/13. These figures assume a council tax freeze in
the District element of the Council Tax for 2012/13, more detail is provided at Appendix
H.
Table 7 – Council Tax Summary
Total District amount to be met from Government Grant and Local
taxation
£
12,214,634
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
Less: Revenue Support Grant and Redistributed Business Rates
(6,225,303)
Council Tax Freeze Grant – ongoing 11/12
(143,134)
Council Tax Freeze Grant – one-off 12/13
(145,000)
District Net Call on Collection Fund – excluding Parish Council
Precepts
Surplus
(5,789,172)
(87,975)
6.2
A Council Tax Base of 41,366 Band D equivalent properties was set by Full Council on
14 December 2011. Based on this figure, and with no increase to the District Council
Tax, a Band D would continue to be £138.87 for 2012/13.
6.3
Provisionally the increase overall in Parish and Town Council precepts is 7.7%. The
overall increase in the billed District Council Tax Band D, which includes the parish
element, will be 1.5%. One Parish Council precept has still to be finalised and there may
be minor changes between this report and the final recommendation to Full Council in
February 2012 as part of the budget and council tax report.
7.
Reserves
7.1
The current position on the General and Earmarked Reserves is attached at Appendix I.
The statement provides the latest forecast for use of reserves in the current financial
year along with the budgeted movements in 2012/13 and proposed movements in the
following three financial years.
7.2
There are three main reasons for holding reserves:
7.2.1 To provide a working balance to help cushion the impact of uneven cash flows
and avoid unnecessary temporary borrowing – this forms part of the General Fund
Reserve.
7.2.2 A contingency to cushion the impact of unexpected events or emergencies – this
also forms part of the General Fund Reserve.
7.2.3 As a means of building up funds, referred to as earmarked reserves, to meet
known or predicted requirements. Earmarked reserves are accounted for separately but
remain legally part of the General Fund.
7.3
A number of the savings proposals that have been put forward for approval as part of the
budget will require some one-off costs to be funded from the Restructuring Proposals
reserve in the year. Further work on a number of the savings proposals is required and
therefore the exact costs that will need to be funded from this reserve have not yet been
quantified. Business cases will still need to be approved and signed off in the usual way
by the designated group consisting of CMT, the Leader and the Portfolio Holder with
responsibility for Organisational Development. Delegated Authority was approved in
September 2010 for monies to be released from the Restructuring Proposals reserve as
part of approving the business case, this will continue as business cases are submitted
for approval and funds remain in the relevant reserve.
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
7.4
A report to Full Council in October 2011 recommended a revised process be followed for
the implementation of the new pay model following the pay and grading review. It was
subsequently recommended within the 2011/12 revised budget report, which was
presented to Cabinet on 28 November 2011 and approved by Full Council on 14
December 2011, that the forecast surplus of £172,488 be allocated to the Organisational
Development reserve. This was to help offset any reduced savings in 2012/13 as a
consequence of the revised approach and was subsequently approved, increasing the
reserve from £180,000 to £352,488. This report still includes estimated savings relating
to the pay and grading review of £225,446 for 2012/13 but this is based on a full years
implementation. Detailed work is currently ongoing to identify the impact of the revised
proposals, although it has not at present been possible to quantify the impact, the
reserve transfers will be processed as part of the 2012/13 revised budget process.
7.5
It is important to remember that using reserves in this way represents one off funding
only and is not a long-term solution to produce a balanced and sustainable budget. It
only defers the problem to future years. In addition reducing the available balances for
investments has an impact on the level of investment income earned, as they are not
available to earn future investment income.
7.6
After taking account of the planned movements to and from reserves, this will give a
forecast balance on the General Reserve at 1 April 2013 of £1,628,947. After taking
account of planned use over the next four financial years this gives a revised balance of
£1,028,947.
7.7
One of the recommendations contained within the savings report to Cabinet on 28
November was the establishment of a New Homes Bonus reserve. The Council received
confirmation in December that the allocation for 2012/13 was £611,678 and the budget
now presented takes account of this transfer. Furthermore, there is no assumed use of
this money to support the budget from any additional allocations in future years.
7.8
On the same agenda, there was a further report on the Council’s approach to Localism,
which recommended the establishment of a Big Society Fund following new
arrangements for the return of 50% of the second homes council tax funding. This
money is also being held within a reserve and is estimated to be £1,151,625, which
includes a balance of £494,813 from previous years funding along with an allocation of
£656,812 for 2012/13. The balance showing on the LSP reserve of £149,000 is to be
used to finance outstanding commitments and it is anticipated that this reserve will be
zero following the 2011/12 outturn process and the allocation of these committed funds.
7.10
The Restructuring Proposals reserve is currently showing an estimated balance as at the
end of 2015/16 of £101,939. However assuming the 2012/13 surplus transfer
recommended as part of this report is approved, the balance at the end of 2015/16 is
estimated to be £189,914.
7.11
The level of the reserves and their use will continue to be monitored and a
comprehensive statement about the adequacy of the reserves will be included within the
Chief Financial Officer’s report, which forms part of the annual Council Tax and Budget
report to Full Council in February.
Capital
8.
8.1
This section of the report provides details of the 2012/13 capital programme for
approval. Regular updates on the current capital programme are provided as part of the
budget monitoring reports. This report shows the updated capital programme along with
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
details of new capital projects being recommended for approval as part of the 2012/13
programme of capital works.
Current Capital Schemes
8.2
The current capital programme was last updated within the revised budget report which
was approved by Council in November 2011. At that time, account was taken of the
required changes to the structure of the programme and any known slippage between
financial years. At the Cabinet meeting on 28 November 2011, a capital budget of
£45,000 was approved for works to the Sheringham Little Theatre, to be funded from
Capital Receipts and this has now been reflected within the programme. The programme
as reported in Appendix J incorporates the slippage previously identified, but does not
include the following project additions:-
8.3
General Fund – Non Housing
a)
Cromer Promenade – This adjustment relates to works to be undertaken on the
render and steps on the Promenade to the north side of the old Red Lion Toilets.
The total value of this scheme is £11,915, which is to be funded from a revenue
contribution to capital outlay, and authorisation is requested to approve these
works.
b)
Trade waste bins – There is currently a total scheme budget of £211,000 within
the programme for the purchase of trade waste bins, of which there is an
available balance of £138,300 remaining. It is recommended that an additional
£61,700 be added to this to give an available budget of £200,000 to enable the
purchase of bins and a new trade waste vehicle. If the council purchases the
vehicle it will save approximately £20,000 per annum from revenue over the
remaining life of the waste contract and also help to increase income from trade
waste customers. The vehicle is anticipated to cost no more than £150,000, and
the balance is to be made available for bins. This is to be financed with the
balance (£77,916) of the Local Public Service Agreement (LPSA) grant money
which is available to fund waste and recycling initiatives (the balance will be
switched within the scheme financing to reduce the requirement for the use of
capital receipts). It is also recommended that authority is given to officers to
negotiate for a vehicle to be purchased through the contractor to take advantage
of their significant buying power.
New Capital Schemes
8.4
In addition to the existing capital programme, approval is also being sought for three
further capital projects, as identified in Appendix K.
8.5
The first scheme relates to Car Park Resurfacing and Refurbishment. The anticipated
budget requirement is £186,000 which would be used to resurface and reline a number
of car parks. The car parks are a major source of income to the Council, and in addition
to increasing their potential to generate income, the works would also result in an annual
reduction in the cost of repairs.
8.6
The second scheme relates to Refurbishment Works to the Seaside Shelters. The
budget requirement of £155,000 is to be used to fund the refurbishment of the roof and
internal and external repair and decorations to the fabric and structure of the buildings.
The shelters themselves form part of the visitor attraction to coastal resorts, and without
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
the works, some of these shelters may need to be closed during the coming summer
season. This would result not only in a reduction in the amenities available to the public,
but also an increase in the costs incurred as a result of having to limit access to the
structures.
8.7
The final scheme is the procurement of an upgrade to the current e-Financials Financial
Management System Software upgrade. A budget of £33,000 would be required to
upgrade the current e-Financials system which will be unsupported beyond December
2012, and therefore represents a significant business risk to the Council.
8.8
The total of the estimated project costs associated with these capital bids is £374,000,
and it is forecast that this would be spent in the 2012/13 financial year. It is anticipated
that each of the bids will be funded from capital receipts.
8.9
Once approval for the new capital bids have been received the capital programme will
be amended to reflect these changes. The certainty of new capital receipts will be
monitored as part of the ongoing budget monitoring process and where applicable
recommendations will be made to amend the capital programme and it’s financing.
Capital Programme Funding
8.10
There are a number of sources of funding available to fund capital expenditure. The
following outlines those which are available to the Council:(a)
(b)
(c)
(d)
External Contributions or Grants – e.g. the Department of the Environment, Food
and Rural Affairs (DEFRA) and other third party contributions.
Reserves – Available capital and revenue reserves can be used for funding
capital expenditure, e.g. Capital Projects Reserve. Following the LSVT in 2006,
the Council receives a share of the Victory Housing Trust VAT shelter receipts.
These receipts are currently going into the Capital Projects Reserve, and may
therefore be used to fund capital expenditure.
Capital Receipts – Capital receipts are generated from asset disposals and can
only be used to fund capital expenditure or to repay debt (use for the repayment
of debt is not applicable at the moment as the Council is currently debt free.)
Following the LSVT in 2006 the Council receives a share of the right to buy
capital receipts from Victory Housing Trust (Preserved Right to Buy).
Borrowing – Under the Prudential Framework the Council is able to fund
expenditure from borrowing provided that they can demonstrate affordability and
need. Whilst the Council maintains a level of capital receipts the need to borrow
cannot be demonstrated. The Council does not therefore intend to enter into any
prudential borrowing at present and this has been reflected in the Treasury
Strategy and Prudential Indicators for 2012/13 which are included elsewhere on
this Agenda.
9.
2013/14 to 2015/16 Future Projections
9.1
As previously mentioned a two year grant settlement was announced covering 2011/12
and 2012/13 and final figures have now been received in respect of the 2012/13
allocations. Whilst this report is only seeking approval of the 2012/13 budget the
opportunity has been taken to prepare detailed projections for the following three years
2013/14 to 2015/16. These are indicative budgets only at this stage but are very
important in highlighting the future funding gaps facing the authority. A high-level
summary of these future years is included as part of Appendix F. This shows a savings
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
requirement of £275,343 in 2013/14, increasing to £1,081,267 in 2014/15 and to
£1,240,858 in 2015/16.
9.2
It is essential that budget planning for the 2013/14 financial year commences at an early
stage next year in order that a sustainable budget can be set for future financial years.
10.
Equality and diversity
10.1
The Council is legally required to consider the equality duty in its decision-making and
this includes the budget process. As part of any savings or investments the Council
must consider how it can:
1.
2.
3.
Eliminate unlawful discrimination, harassment and victimisation;
Advance equality of opportunity between different groups; and
Foster good relations between different groups by tackling prejudice and
promoting understanding.
10.2
As discussed within the main report, papers were issued during August and senior
managers were asked to explore service savings and options for additional income. Part
of the pack of information received by managers included a ‘Budget Equality Form’
which provided the framework to undertake an Equality Impact Assessment (EQIA),
which managers were required to complete. This form requested details of the bid, and
whether it had any affect on a number of protected groups, and w here any negative
affect was identified, how this could be minimised or removed.
10.3
The completed forms can be found on the Council’s website on the Finance page under
the
section
which
covers
the
Council
Budget
(http://www.northnorfolk.org/council/9208.asp). A cumulative assessment has been
undertaken in relation to the equality forms and the savings proposals and no negative
impact has been highlighted as a result of this exercise.
11.
Implications and risks
11.1
The overall budget for 2012/13 is balanced and will be recommended to Full Council for
approval on 23 February 2011. The risks to the Council are highlighted below.
11.2
The current economic climate serves to increase the risks to the Council in setting out its
annual forecast for the forward year. For example, the direct impact it has on the level of
investment income and also a number of demand led services, such as planning and car
parking. Members’ attention is also drawn to the following risk areas identified below.
11.3
Savings and additional income – The budget for the forward year contains estimates for
a number of savings accepted by Cabinet and CMT. The delivery of these savings is
vital to the overall budget position. In reviewing the level of savings to be achieved
attention has been given to the realistic time frame to set the arrangements in place
especially where these concern staffing reductions. Where applicable some of the
implementation dates reflect a part year reverting to a full year saving from 2013/14. It is
also important to highlight that some savings are still subject to a consultation process
with staff. It is critical that the delivery of these savings is closely monitored by CMT and
Cabinet as part of the ongoing budget process for 2012/13.
11.5
DEFRA has recently announced that the definition of prescribed waste (as defined by
Schedule 2 of the Controlled Waste Regulations 1992) will be changing. Until DEFRA
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
has released clarification regarding which types of business this will impact on, it is not
possible to accurately model the impact. What is known at present is that this will have a
negative impact on the net income of the council. Currently, prescribed customers are
charged for the collection but not the disposal of waste (as it is defined as household
waste). The proposed change to legislation may mean that that most of our prescribed
customers will lose this distinction and therefore will either have to accept an increase in
costs (to full trade prices, including disposal) or look for a cheaper alternative. It also
means that the Council will have to pay for the costs of disposal for these customers
which was not the case previously.
11.6
At present a ‘worst case’ scenario has been anticipated and it has been assumed that all
customers currently classified as ‘prescribed’ will transfer to being trade customers. If
DEFRA decide not to transfer all business types then the costs may not be as high as
currently forecast. This will be monitored as part of the 2012/13 budget monitoring
process and adjusted as necessary once full details of the changes are published.
11.7
The New Homes Bonus 2011/12 final allocation has now been received along with
provisional allocation figures for 2012/13. At present the future years allocations have
been transferred into the New Homes Bonus although it should be noted that to maintain
the level of transfer currently included the growth in new homes needs to continue at a
steady rate. The position will be monitored throughout next year and any revisions
required will be made as part of the 2013/14 budget process, as the income is all
transferred into a reserve if the bonus were to be lower than anticipated the resultant
reserve transfer would also be lower but there should be no impact upon the actual
General Fund.
11.8
As discussed above, the Chancellor announced in his Autumn Statement that public
sector pay awards would be subject to capping in 2013/14 and 2014/15 following the
end of the current 2 year pay freeze. However this was subject to negotiation and no
increase is at present is guaranteed. The salary budgets at this point have not therefore
been adjusted and continue to assume no inflationary pay awards. If a pay award were
to be negotiated this would require a budgetary increase of approximately £80,000, the
position will continue to be monitored next year and updated as part of the 2013/14
budget process as required.
12.
Recommendations
12.1
It is recommended that Members agree and recommend to Full Council:
a) The 2012/13 revenue account budget as outlined at Appendix F and that the surplus
of £87,975 be allocated to the Restructuring Proposals reserve;
b) The demand on the Collection Find will be, subject to any amendments as a result of
final precepts;
(i)
£5,789,172 for District purposes;
(ii)
£1,561,174 (subject to confirmation of one final precept) for Parish/Town
precepts;
c) The movement on the reserves as detailed at Appendix I;
d) The updated Capital Programme and it’s financing for 2011/12 to 2014/15 as detailed
at Appendix J and as contained within the report along with the authority to negotiate
for the purchase of a new waste vehicle;
Cabinet
06 February 2012
Overview & Scrutiny
15 February 2012
Full Council
22 February 2012
e) The new capital bids as detailed at Appendix K;
f) That Members note the current projections for 2013/14 to 2015/16.