Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
26th February 2016
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 7th March 2016 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: Mrs S Arnold, Mrs N Dixon, Mr T FitzPatrick, Mrs A Fitch-Tillett, Mrs J Oliver,
Mr W Northam, Miss B Palmer, Mr J Rest
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 6)
To approve, as a correct record, the minutes of the meeting of the Cabinet held on 08
February 2016.
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
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.
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.
BUDGET MONITORING REPORT 2015/16 – PERIOD 10
(attached – p. 14)
(Appendix A – p.25) (Appendix B – p.26) (Appendix C – p.29)
Summary:
This report summarises the budget monitoring
position for the revenue account and capital
programme to the end of January 2016.
Options considered:
Not applicable
Conclusions:
The overall position at the end of January 2016
shows an under spend of (£1,765,761) to date for
the current financial year on the revenue account,
this is currently expected to deliver a full year
variance of (£876,500).
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and the
current budget monitoring position;
2) Cabinet note the updated Capital Programme
and financing for 2015/16 to 2018/19 as detailed
in Appendix C;
3) Cabinet Approve the capital budget virements
as requested within the report;
4) Cabinet approve the additional capital budget
requirement of £35,000 in relation to the North
Walsham regeneration scheme, to be funded
from capital resources.
Cabinet
Decision
Reasons for
Recommendations:
Cabinet member(s):
Ward member(s)
Contact Officer, telephone
and e-mail:
10.
To update Members on the current
budget monitoring position for the Council.
Councillor W Northam
All
Karen Sly
01263 516243
karen.sly@north-norfolk.gov.uk
COMPULSORY PURCHASE OF LONG TERM EMPTY PROPERTIES
(page 36)
(Exempt Appendix A – p.41)
EXEMPT APPENDIX - NOT FOR PUBLICATION – BY VIRTUE OF PARAGRAPHS 1, 3 & 5 OF PART 1 OF SCHEDULE
12A (AS AMENDED) OF THE LOCAL GOVERNMENT ACT 1972
Summary:
This report makes the case for compulsory purchase of
a number of long-term empty houses that have been
considered by the Enforcement Board, where it was felt
that without this action the properties are unlikely to be
returned to use in the near future.
Options
The Enforcement Board has discussed all properties
identified in this report in detail and various options
have been considered. Throughout the process owners,
or their representatives, have been given every
opportunity to progress their properties and return them
to use but, in the opinion of the Board, have failed to
take decisive action likely to achieve the desired end
result of bringing them back into use.
All properties in this report have been empty in excess
of 5 years and two of the properties have never been
occupied since they were built in 1999.
Owners have either proved difficult to engage or have
made promises to the Council that have not been kept,
which is why the Board considers that the properties will
not be returned to use without more direct intervention
by the Council.
Prior to seeking an order for compulsory purchase from
the secretary of state, the Council would be expected to
have attempted to reach a voluntary agreement for sale
with the current owners, which would be based on an
independent market valuation.
It may be possible to enter into an arrangement with a
purchaser for a back-to-back sale following compulsory
purchase. If not, then once acquired, the properties
would be sold on the open market by the method likely
to attract greatest interest from potential developers.
Recommendations:
Cabinet
Decision
1. That officers are authorised to seek a voluntary
agreement from the owners of the properties to
sell them to the Council and to complete the
sale within agreed timescales.
2. If no such agreement is reached, and in the case
of the Beeston Common properties, no valid
planning application is received for the site by
the agreed date, that officers are authorised to
proceed with applications to the Secretary of
State for Compulsory Purchase of the following
properties:
a. 37 Beeston Road, Sheringham
b. 2 and 2A Stirling Road, Sculthorpe
c. 55 and 56 Beeston Common, Sheringham
Note: these addresses are taken from the Land
Registry records and may differ from postal
addresses for service of documents, Parishes
and Council wards.
3. That officers are authorised to take necessary
steps for the acquired properties to be sold on
at the earliest opportunity with binding
conditions that will make clear the Council’s
expectation for the properties be returned to
use as soon as realistically achievable.
4. That the purchases will be funded from capital
resources from which virement of the necessary
funds is authorised.
5. To cap the costs of compulsory purchase at the
valuation plus CPO costs at the upper limit
identified in this report.
6. To
recommend
to
Full
Council
the
establishment of a capital budget of £630,000
specifically for financing compulsory purchase
of these properties.
Reasons for
Recommendations:
1. There is an expectation by the Secretary of State
that Councils will seek to reach voluntary
agreement on purchases prior to a Compulsory
Purchase being authorised.
2. To enable the properties to be brought back into
use, thus reducing the number of long-term empty
properties in the area and increasing housing
provision.
3. As for 2 above.
4. To make the necessary financial provision for
purchase
5. To ensure CPO remains a cost effective option.
6. To provide the necessary finance for CPO to be
completed.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
11.
Councillor J Oliver
Sheringham, the Raynhams
Will Abë
01263 516080
will.abe@north-norfolk.gov.uk
EXCLUSION OF PRESS AND PUBLIC
To pass the following resolution:
“That under Section 100A(4) of the Local Government Act 1972 the press and public be
excluded from the meeting for the following item of business on the grounds that they
involve the likely disclosure of exempt information as defined in paragraphs _ of Part I of
Schedule 12A (as amended) to the Act.”
12.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 08 February 2016 at the
Council Offices, Holt Road, Cromer at 10.00am.
Members Present:
Mrs S Arnold
Miss B Palmer
Mrs J Oliver
Mr T FitzPatrick (Chairman)
Mr W Northam
Mr J Rest
Also attending:
Mrs S Butikofer
Mrs A Claussen-Reynolds
Mr P W High
Mr J Lee
Mr N Pearce
Mrs M Prior
Mr P Rice
Officers in
Attendance:
104.
Mr R Reynolds
Mr E Seward
Mr R Shepherd
Mr B Smith
Mr D Smith
Mr N Smith
The Chief Executive, the Corporate Directors, the Communications
Editor, the Head of Assets and Leisure, the Head of Finance, the
Housing Strategy and Community Development Manager, the
Technical Accountant, the Policy & Performance Management Officer
and the Democratic Services Team Leader
APOLOGIES FOR ABSENCE
Mr N Dixon, Mrs A Fitch-Tillett
105.
MINUTES
The minutes of the meeting held on 05 January 2016 were approved as a correct
record and signed by the Chairman
106.
PUBLIC QUESTIONS
None
107.
ITEMS OF URGENT BUSINESS
None
108.
DECLARATIONS OF INTEREST
None
Cabinet
6
08 February 2016
109.
MEMBER QUESTIONS
The Leader confirmed that Members could ask questions as each item arose.
110.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR
RECONSIDERATION
None
111.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
112.
JOINT STAFF CONSULTATIVE COMMITTEE
The Leader outlined a recommendation from the Joint Staff Consultative Committee
meeting held on 24th November 2014.
RESOLVED
To implement the revised Foundation UK Living Wage of £8.25 to staff in the Council
(excluding apprentices) with effect from the date 1 November 2015 and to review this
on an annual basis
113.
PLANNING POLICY & BUILT HERITAGE WORKING PARTY
Mrs S Arnold, Portfolio Holder for Planning outlined a recommendation from the
meeting of the Planning Policy & Built Heritage Working Party held on 18 January
2016.
RESOLVED
That the proposed Neighbourhood Area designation for Happisburgh is approved
114.
MANAGING PERFORMANCE QUARTER 3 2015/16
The Leader introduced this item. He explained that it provided a third quarter
progress report of the performance of the Council. It also identified any issues that
may affect delivery of the plan, the action being taken to address these issues and
proposed any further action that required Cabinet approval.
It was proposed by Mr T FitzPatrick, seconded by Mrs J Oliver and
RESOLVED to
Note the report, welcome the progress being made and endorse the actions laid out
in Appendix 1 being taken by management where there are areas of concern.
Reasons for the decision:
To ensure the objectives of the Council are achieved.
Cabinet
7
08 February 2016
115.
ANNUAL ACTION PLAN 2016-17
The Leader, Mr T FitzPatrick introduced this item. He explained that the report
presented the Annual Action Plan for 2016-17 for approval. Mr FitzPatrick went onto
say that the Annual Action Plan and associated performance indicators delivered the
priorities and objectives laid out in the Corporate Plan 2015-2019.
It was proposed by Mr T FitzPatrick, seconded by Mrs J Oliver and
RESOLVED to
Approve the Annual Action Plan 2016-17 as set out in Appendix 1 and the targets
and recommendations for performance indicators as set out in Appendix 2.
Reasons for the decision:
To ensure the priorities and objectives laid out in the Corporate Plan 2015-19 are
delivered.
116.
2016/17 BUDGET REPORT
Mr W Northam, Portfolio Holder for Finance, introduced the report. He explained that
it presented for approval the 2016/17 budget together with the latest financial
projections for the following three years 2019/20. The Fees and Charges for 2016/17
were also being put forward for recommendation. Mr Northam said that the budget
that was being presented reflected the provisional finance settlement figures
announced on 17 December 2015, with the final settlement expected in early
February. It was anticipated that the final budget presented for approval at Council on
23 February 2016 would be updated to reflect the final figures where applicable.
Mr Northam then outlined some of the key messages from the provisional Local
Government Finance Settlement (LGFS). He said that acceptance of the four year
settlement was dependent upon the production of an efficiency plan and that the
main change in this year’s settlement was that the Revenue Support Grant
allocations have taken into account the ability of local authorities to generate
resources from council tax and business rates over the period of the settlement. It
was anticipated that there would be no revenue support grant from 2020/21.
Mr Northam then informed Members that from 2016/17 the council tax freeze grant
would no longer be available and there was an expectation that council tax would
need to rise. Mr Northam said that he was pleased to inform Members that there
would be no increase in council tax this year for the 5th year in succession. He then
advised members that the provisional allocation for the New Homes Bonus (NHB) for
2016/17 for NNDC was £2,085,229, which included an affordable homes premium for
79 properties.
Mr Northam outlined the savings and additional income over the next four years and
thanked Heads of Service for putting forward 10% savings across their service areas.
He detailed the current position and forecast on the General and Earmarked reserves
and explained that a comprehensive statement about the adequacy of the reserves
and recommended balance would be included within the Chief Financial Officer’s
report to Council on 23 February 2016.
Mr Northam concluded by saying that the overall budget for 2016/17 was balanced
and delivered a surplus of £899k, which would be transferred to the
restructuring/invest to save and business rates reserve. Overall the Council was in a
Cabinet
8
08 February 2016
healthy financial position and although there would be challenges ahead, the Council
was placed to deal with them.
The Leader invited Members to speak:
Mr E Seward queried the premise for not raising council tax due to the surplus of
£899k. He asked whether the Council was accumulating surpluses now to deal with
deficits further down the line. The Head of Finance replied that the surplus was being
allocated to two reserves which would help address future deficits and one-off costs.
She said earmarking now would allow the funding of one-off projects to deliver a
balanced budget. Mr Northam added that the loss of the support grant meant that the
Council needed to prepare now. The Leader explained that all councils would be
responsible for raising their own income and that NNDC had managed to freeze
council tax for 5 years despite austerity. He said that the Council had worked hard to
build up reserves and that he was that a surplus was still being achieved.
Mr Northam thanked all of the staff for their continuing hard work and commitment.
It was proposed by Mr W Northam, seconded by Mrs S Arnold and
RESOLVED
To recommend to Council:
1) The 2016/17 revenue budget as outlined at Appendix A;
2) The surplus of £898,871 be allocated to the restructuring/Invest to save reserve
and business rates reserve as outlined in the report;
3) The Fees and Charges for 2016/17 as set out in the report and appendices and
the changes to the Local Land Charge with immediate effect as detailed at 5.4;
4) The demand on the Collection Fund for2016/17, subject to any amendments as a
result of final precepts still to be received be:
a. £5,473,605 for District purposes
b. £1,887,810 (subject to confirmation of the final precepts) for Parish/Town
Precepts;
5) The statement of and movement on the reserves as detailed at Appendix F;
6) To extend the current car park enforcement contract with Kings Lynn and West
Norfolk Borough Council by 1 year and delegate authority to the Head of Assets and
Leisure to progress negotiations;
7) The updated Capital Programme and financing for 2015/16 to 2018/19 as detailed
at Appendix G;
8) The new capital bids as detailed at Appendix H;
9) The prudential indicators as included at Appendix I;
10) That members note the current financial projections for the period 2017/18 to
2019/20;
11) That delegated authority be given to the Chief Executive to submit the Council’s
Efficiency Plan as required once further guidance is published and that the Council
accepts the four year finance settlement as referred to within the report.
Reasons for the decision:
To recommend a balanced budget for 2016/17 for approval by Full Council on 23
February 2016.
Cabinet
9
08 February 2016
117.
CAR PARK FEES AND CHARGES
The Portfolio Holder for Assets, Mr J Rest, introduced the report. He explained that
car parking charges had remained static since 2012. A number of options had been
put forward for consideration and it was proposed that a 30 pence increase would be
applied to coastal and resort car parks and that fees would be frozen for standard car
parks. Charges for season tickets would also be frozen at current levels and a
monthly direct debit option would be introduced. Local residents would be
encouraged to purchase season tickets as they provided excellent value for money.
Mr Rest said that charges for coaches would also be reviewed.
The Leader invited Members to speak:
1. Mrs A Claussen-Reynolds said that she was pleased to see that car park
charges would remain static in Fakenham and she welcomed the introduction of
a monthly direct debit option for season ticket payments.
2. Mr J Lee said that season tickets provided excellent value for money and asked
when the monthly payment option would be available. The Head of Finance
replied that this would be introduced as soon as possible and it would be well
advertised.
3. Mr B Smith agreed that freezing charges in the market towns was a good idea
and would hopefully increase footfall. He did have concerns that the smaller
coastal resorts would be affected by the proposed increases and he felt that
people would be more likely to park at the larger resorts to ensure they got value
for money.
4. Mrs S Butikofer agreed with Mr Smith’s comments and said that she was
concerned that the smaller coastal resorts were being included within the pricing
band for larger resorts. The Leader replied that this was an established practice
that had been initiated by the previous administration. Mr Rest added that even
with the proposed increase the prices were still considerably lower than other
coastal resorts across the country.
5. Mr D Smith said that he was disappointed to see the proposed increase in
charges for coastal resort car parks but acknowledged that the Council needed
to raise income.
6. Mr R Reynolds said that the workforce of the District was important and season
tickets were a cost-effective way to provide parking for them.
7. Mrs S Arnold commented that for many visitors to the District, paying parking
was probably the only financial contribution they made. She asked whether a
survey had been undertaken on visitor spend. Mr Rest said that he would take
this suggestion on board.
Mrs J Oliver, in seconding the recommendations, said that the proposal was the
fairest way of increasing income whilst protecting businesses in the market towns.
It was proposed by Mr J rest, seconded by Mrs J Oliver and
RESOLVED to recommend to Council
Cabinet
1.
To increase charges in coastal and resort car parks by 30 pence an hour
2.
To freeze charges in standard car parks
3.
To freeze charges for annual season tickets, introducing a monthly direct debit
option
10
08 February 2016
Reasons for the decision:
Car park charges have remained static since April 2012, there are a number of
options that Members need to consider in relation to any potential changes to the car
park fees and charges so that any alterations can be considered as part of the
budget setting process.
118.
TREASURY MANAGEMENT STRATEGY STATEMENT
The Portfolio Holder for Finance, Mr W Northam, introduced this item. He explained
that the report set out details of the Council’s treasury management activities and
presented a strategy for the investment of the Council’s surplus funds. Preparation of
the Strategy Statement was necessary to comply with the Chartered Institute of
Public Finance and Accountancy’s Code of Practice for Treasury Management in
Public Services (CIPFA). Mr Northam set the context for the treasury management
strategy and outlined the Council’s borrowing and investment strategies, saying that
the Council intended to make full use of the estimated £17m of ‘core cash’ which was
available for longer-term investment to take advantage of the higher interest rates
available for such investments. Mr Northam also referred to the success of the LAMIT
pooled property fund which continued to return an income of 6% on the Council’s
£5m investment.
Mr Northam concluded by thanking the Technical Accountant for his continuing hard
work and support. He also praised the work of the Council’s treasury management
advisor, Arlingclose.
It was proposed by Mr W Northam, seconded by Miss B Palmer and
RESOLVED to recommend to Council
That the Treasury Management Strategy Statement is approved
Reasons for the decision:
The Strategy provides the Council with a flexible treasury strategy enabling it to
respond to changing market conditions and ensure the security of its funds.
119.
CUSTOMER CONTACT CENTRE SYSTEM PROCUREMENT
The Leader (Portfolio Holder for IT Oversight) introduced this item. He explained that
the Digital Transformation Programme included a workstream to provide an
enhanced Customer Contact Management (CCM) System which would deliver
several benefits including the ability to manage all digital communications channels,
monitoring and management of all customer contacts, an increase in customers dealt
with at first point of contact, reduced call handling times and financial savings.
Mr FitzPatrick explained that because the CCM system would be fully integrated with
the existing Unified Communications Systems and other service specific software, a
decision had been taken that an on-premise, rather than a cloud based solution was
most appropriate at this time.
Cabinet
11
08 February 2016
It was proposed by Mr T FitzPatrick, seconded by Miss B Palmer and
RESOLVED to
Approve the release of £60,000 previously identified Digital Transformation capital
funding to procure a Customer Contact Management System. The project to be
complete by September 2016.
That the procurement of the Customer Contact Management System be delegated to
the appropriate Corporate Director
120.
PUBLIC SPACE PROTECTION ORDERS
The Leader introduced this item in the absence of the Portfolio Holder. He said that
the report outlined the options of delegation for taking forward the transfer of existing
Dog Control Orders (DCOs) and Designated Public Place Orders (DPPOs) currently
in place and the proposed changes to these as part of the transfer process to the
new Public Space Protection Orders (PSPOs). This report followed on from the
January 2015 report to Cabinet outlining the new powers conferred on the Council by
the Anti-social Behaviour, Crime and Policing Act 2014.
It was proposed by Mr T FitzPatrick, seconded by Mr J Rest and
RESOLVED
1.
2.
That reviews of existing Orders, to enable the transfer to Public Space
Protection Orders (PSPOs), are considered by Cabinet.
That in future, reviews of existing, and requests for new, Public Space
Protection Orders will be considered by Cabinet after appropriate consultation.
Reason for the decision
To meet the Council’s statutory responsibilities to transfer all existing orders to Public
Space Protection Orders and making this and future processes as efficient as
possible within the constraints of the legislative requirements.
121.
PROPERTY INVESTMENT STRATEGY – ESTABLISHMENT OF PROPERTY
COMPANY
The Leader informed Members that the following revised recommendations were
proposed:
1. That the Chief Executive be instructed to prepare a business case for the
establishment of a property company for consideration by Full Council and
2. If approved by Full Council, to take steps to establish a wholly owned property
company
The Leader then invited the Portfolio Holder for Assets, Mr J Rest, to speak. Mr Rest
said that it was important that a robust business case was produced first so that the
Council’s assets could be put to better use. Mrs J Oliver added that this was one
strand in the strategic approach being taken to exploit the Council’s assets to full
advantage for the benefit of tax payers.
Cabinet
12
08 February 2016
The Leader invited Members to speak:
1. Mr N Smith said that the Council needed to be very careful as this was a new
way of working for the Council. Mrs Oliver replied that it would only go ahead if
the business case supported the establishment of a property company. She
added that Full Council would be a shareholder to ensure control.
2. Mr E Seward welcomed the revised recommendations. He said that it was a
major initiative that should be considered by all Members and he hoped that the
Chief Executive would clearly explain the role of Full Council in the company and
clarify the appointment of directors. Mr Rest replied that everyone involved in the
preparation of the business case, including the Chief Executive, had a lot of
business experience and there was a substantial amount of knowledge and
expertise to draw upon.
The Leader said that he wished to clarify that the proposed company was not being
set up to tackle empty homes as some people had claimed. The Enforcement Board
already undertook this work very successfully.
The Chief Executive added that the Council would need to be very clear in terms of
enforcement powers and the role of the company used to invest in property. They
would be separate decisions.
It was proposed by Mr J Rest, seconded by Mrs J Oliver and
RESOLVED
1.
2.
That the Chief Executive be instructed to prepare a business case for the
establishment of a property company for consideration by Full Council and
If approved by Full Council, to take steps to establish a wholly owned property
company
Reason for the decision:
To ensure that a business case is prepared before Full Council considers whether to
establish a property company.
The Meeting closed at 10.50 am
_______________
Chairman
Cabinet
13
08 February 2016
Agenda Item No____9________
BUDGET MONITORING REPORT 2015/16 – PERIOD 10
Summary:
This report summarises the budget monitoring position
for the revenue account and capital programme to the
end of January 2016.
Options considered:
Not applicable
Conclusions:
The overall position at the end of January 2016 shows
an under spend of (£1,765,761) to date for the current
financial year on the revenue account, this is currently
expected to deliver a full year variance of (£876,500).
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and
the current budget monitoring position;
2) Cabinet note the updated Capital Programme
and financing for 2015/16 to 2018/19 as
detailed in Appendix C;
3) Cabinet
Approve the capital budget
virements as requested within the report;
4) Cabinet approve the additional capital budget
requirement of £35,000 in relation to the
North Walsham regeneration scheme, to be
funded from capital resources.
Reasons for
Recommendations:
To update Members on the current
monitoring position for the Council.
budget
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: Karen Sly, 01263 516243,
Karen.sly@north-norfolk.gov.uk
1.
1.1
Introduction
This report compares the actual expenditure and income position at the end
of January 2016 to the Updated budget for 2015/16. The Original Base
14
Budget as agreed by Full Council in February 2015 has been updated for inyear virements and roll forwards from previous periods.
1.2
The base budget for 2015/16 included savings and additional income totalling
£222,000 to be delivered in the year. Section 3.1 of this report includes the
latest position on both of these areas.
1.3
The report also includes an update on the current capital programme and
starts to highlight where scheme budgets will be reprofiled to the 2016/17
financial year.
2.
Budget Monitoring Position – Revenue Services
2.1
The General Fund Summary at Appendix A shows the high level budget
monitoring position at 31 January 2016 which shows a year to date variance
of (£1,765,761) underspend. Of the underspend against the profiled budget,
£1,784,859 is in relation to the service variances and £49,427 is in relation to
the treasury management position. Details of these variances are included
within sections 2.3 and 4.1 respectively in the report. Appendix B provides
further details of the individual service variances.
2.2
Variances are reported against the updated budget in Appendix A. Any
budgets and reserves affected will be updated accordingly.
2.3
The following table shows the over/under spend to date for the more
significant variances compared to the updated budget and those that are
forecast to have a year-end variance.
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Assets and Leisure
Car Parking – The favourable variance to the end of
period 10 largely reflects income from pay and display
ticket sales above the profiled budget. Although the
full year effect of the additional income is likely to be
reduced by a reduction in income from excess charge
notices. As this service is demand led and seasonally
influenced the level of income will continue to be
closely monitored. At the current time a full year
variance of (£132,000) is forecast.
Estimated
Full Year
Variance
Against
Updated Budget
£
(138,894)
(132,000)
Industrial Estates – The variance to date is mainly
due to reduced rental following vacation of premises
during the year.
23,043
13,000
Administration Buildings Services – £14,968
additional repairs and maintenance costs resultant
from further tenancies within office buildings, this is
offset by rental income. There is also additional costs
in relation to the canteen from the use of agency
staffing and the purchase of goods for resale which is
partly offset by additional income.
11,901
10,000
15
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Property Services – The anticipated full year
variance of (£20,000) mainly relates to employee
savings generated from vacancies in year. A one off
redundancy payment has been made following a
service restructure, this will be funded from
Restructuring and Invest to Save Reserve.
Estimated
Full Year
Variance
Against
Updated Budget
£
4,163
(20,000)
Foreshore – The variance to period 10 relates to a
reduction in repairs and maintenance expenditure
although there is not anticipated to be a full year
effect.
(33,641)
0
Leisure Complexes – The main variance year to
date relates to (£13,776) - reduction in repairs and
maintenance costs and (£2,020) reduction in grounds
maintenance costs. There is not currently anticipated
to be a full year effect.
(18,054)
0
Investment Properties – The majority of the variance
to date reflects a shortfall of income against the
profiled budget, mainly in relation to the Grove Lane
Depot and also where insurance claims are
outstanding.
61,384
57,500
20,498
0
(109,988)
0
(491,588)
0
CLT and Corporate
Legal Services – Higher employee and mileage costs
which will be fully offset by income. No full year effect
is expected.
Community, Economic Development and Coast
Housing Strategy – The year to date variance relates
to VAT Shelter Receipts received from Victory
Housing Association. This money is ring-fenced to
fund capital expenditure and will be transferred to an
earmarked reserve at the year-end and will have no
effect on the forecast revenue position.
Community and Localism – The underspend reflects
grant funding which has not yet been drawn down
including some in relation to 2014/15. It is likely that
there will be a significant balance at the end of the
Financial Year and this will be earmarked for
allocation in future years, when we no longer receive
second homes funding from Norfolk County Council.
In addition the Council has received a number of
grants for which no budget exists, the most notable
being £100,000 in respect of the Coastal Revival
Fund. This money needs to be spent by the end of the
current Financial Year.
16
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Coastal Management – Salary and on costs
associated with a vacant post which is currently being
advertised. There will be a request to roll any
underspend forward at year-end for related coastal
management spend.
Customer Services
IT Support Services – Of the variance against the
profiled budget to the end of period 10 (£45,603)
represents an underspend on employee expenditure
due to vacant posts. A full year saving of (£25,000) is
currently anticipated after taking account of reserve
movements due to digital transformation staffing.
(£12,060) and recoverable works carried out at
Fakenham.
Tourist Information Centres – The variance to date
relates to a number of areas including stock
purchases for resale and computing and telephone
budgets although the majority of this will be spent
before the end of the financial year.
Environmental Health
Waste Collection and Disposal – The under spend
to date is made up of a number of variances within the
service against the profiled budget, which are
summarised as:
 £165,817 underspend against the profiled budget
relates to invoices to Norfolk County Council for
Commercial waste disposal not yet received;
 A vacant post which has recently been appointed
to and therefore a part year saving of £10,634 has
accrued;
 A provision made in the 2014/15 accounts which
was less than anticipated of £11,614;
 Additional fee income from garden, bulky and trade
waste customers totalling £62,140;
 The level of contamination within the recycling
materials continues to be monitored to identify any
in year financial implications, although the forecast
position allows for £50,000 in respect of this;
 The full year effect includes £90,000 for a payment
to Kier towards the cost of a trade waste vehicle
which was included in the budget but is not now
required.
Civil Contingencies – Surplus grant income in
respect of Business Support grants received from the
17
Estimated
Full Year
Variance
Against
Updated Budget
£
(21,501)
0
(63,038)
(25,000)
(20,322)
(4,000)
(281,878)
(120,000)
(18,335)
(15,000)
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Estimated
Full Year
Variance
Against
Updated Budget
£
DCLG.
Financial Services
Local Taxation – Employee savings relating to the
Visiting officer post which has been held vacant
pending a review of the wider enforcement role within
the council.
(29,607)
(20,000)
Benefits – The variance to date is mainly due to
vacancies and staff turnover within the team, the full
year saving has been reduced slightly by the use of
overtime with the service.
(78,550)
(60,000)
Benefits and Revenue Management – Employee
savings due to a vacant post pending further review.
(62,300)
(50,000)
Corporate Finance – Employee savings due to a
vacant post pending further review of options to fill the
post. This has been partially offset by the use of
external technical support.
(52,570)
(35,000)
Corporate and Democratic Core – The variance to
date includes some outstanding provisions from
2014/15 for which the invoices have not yet been
received for the external audit. The full year effect is in
relation to bank charges for the year.
(41,077)
(25,000)
(20,370)
(10,000)
(37,045)
(15,000)
38,305
0
(49,432)
0
Organisational Development
Human Resources and Payroll – Income received
for staff supplied on secondments and joint working
partially offset by additional travelling costs.
Insurance and Risk Management – The main
reasons for this service variance are (£7,610) Salaries
and on costs are lower as a result of staff vacancies.
(£14,460) Savings on public and employers' liability,
and vehicle insurance premiums. (£11,938)
Professional fees relating to Insurance support and
tender advice.
Registration Services – The variance to the end of
period 10 reflects costs relating to electoral
registration and the conduct of the election in May
2015. Grant income is due and further funding has
been requested to cover all costs.
Planning
Development Management – The favourable
variance showing at the end of period 10 reflects
18
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Estimated
Full Year
Variance
Against
Updated Budget
£
income received compared to the profiled budget. To
date additional income of (£207,749) has been
received above the budget to the end of January. This
has been offset by additional employee related costs
for temporary staffing and agency. The overall position
continues to be monitored, although it is currently
anticipated that there will be a full year net
underspend (after allowing for additional income
received in the year) in the service of £70,000 This will
be requested to be rolled forward to smooth future
growth associated with the service restructurings.
Building Control – Of the variance at the end of
period 10, (£8,092) relates to transport cost savings
due to service efficiencies. The remainder relates to
income received above the level budgeted. Overall
there is currently expected to be a full year favourable
variance of (£30,000) although this will be allocated to
the earmarked reserve in line with the ring-fencing of
surpluses for the service.
(26,974)
0
Property Information – The budget allowed for the
transfer of elements of the land charges service to the
Land Registry during the year. The timescales for the
national project have now slipped for which there will
be a resulting full year effect. As the service continues
to be provided solely by the Council this has resulted
in income being received in the year above the
budget. This is expected to be around (£100,000) for
the year. As with other cost recovery services any
surplus should be ring-fenced and considered when
setting new fee structures. The current year variance
also includes £92,953 for a New Burdens grant which
has been received in respect of the Legal challenges.
(218,220)
(10,000)
(1,654,090)
(460,500)
TOTALS
3
Budget Monitoring Position – Savings and Additional Income
3.1
The budget for 2015/16 included savings and additional income totaling
£222,000 within the service areas. Table 2 below summaries the current
position for each service heading.
3.2
The 15/16 budget assumed a £7,000 saving from overtime, the actual to date
on overtime is above the original budget, although this has been funded from
salary underspending, for example where a post has not yet been filled.
19
Table 2 – Savings and Additional
Income 2015/16
Corporate Savings
2015/16
Base
Budget
£
101,000
2015/16
Movement
from the
Updated
Budget at
P10
101,000
0
2015/16
Updated
Budget
£
Finance
96,000
96,000
0
Environmental Health
25,000
25,000
0
222,000
222,000
0
Total
4
Non Service Variances – Investment Interest to period 10
4.1
The interest budget for 2015/16 anticipates that a total of £430,610 will be
earned from treasury investments and interest on loans to Broadland Housing
Association. Overall an average balance of £19.6m is assumed, at an
average interest rate of 2.2%.
4.2
At the end of period 10, a total of £410,393 had been earned, resulting in a
surplus against the year to date budget of £49,427. The rate of interest
achieved was 1.53% from an average balance available for investment of
£31.9m. A further £14,159 has been received in various other interest
receipts giving an overall surplus £62,919. By the year end an overall surplus
of £70k is anticipated for all interest income.
4.3
The loans to Broadland Housing Association under the Local Investment
Strategy are now anticipated to be made in 2016/17. This will mean the
interest rate achieved in 2015/16 will be below the budget figure. However,
interest in total will exceed the budget as investment balances have remained
well above budget this year.
4.4
The LAMIT pooled property fund continues to perform well and an income
return of 6.0% is anticipated for the year. Further investments have been
made in covered bonds and at the end of period 10, more than 30% of the
portfolio was invested in these securities. Covered bonds are a secure form
of investment and are exempt from a bail-in of investors, should the
investment counterparty get into difficulties, thereby preserving the invested
sum.
5
Funding Variances – Retained Business Rates
5.1
A surplus of £346K is currently forecast to be achieved on the Business Rates
Retention Scheme at the year-end. This is due to the following factors:

A reduction of £66k in the amount of Section 31 grant the Council expects
to receive from central government for loss of income resulting from
changes in successive Autumn Statements. Additional grant of £32k is
expected in compensation for additional mandatory reliefs being granted,
but this is off-set by £98k reduced grant due to applying a cap on the
amount of the tariff paid to the business rate pool. The purpose of making
Section 31 grant payments is to ensure the Council is in the same
financial position it would have been if the Autumn Statement measures
had not been made. Because the tariff is capped and is lower than it
would otherwise have been, an adjustment to the grant is made.
20
 The levy payment paid to the Business Rates Pool is anticipated to
reduce by £254k due to a net reduction in the amount of retained
income in 2015/16 of £1.3m.
 The additional income of £158k from renewable energy schemes in
2014/15 which will be accounted for in 2015/16.
5.2
The business rate income is anticipated to be lower than budget this year due
to a higher level of mandatory relief being granted (mainly small business rate
and charitable occupation relief), and making a large provision for appeals
relating to purpose built health centres.
5.3
The reduction in income will result in a deficit on the Collection Fund which,
under the operation of the business rates retention scheme, will be taken into
account in the following year when determining the income shares. An
earmarked reserve has been established to mitigate any significant in-year
impact on the budget of surpluses and deficit to avoid significant fluctuations
year on year. It will therefore be recommended that the surplus is transferred
to the earmarked reserve to mitigate the fluctuation in 2016/17 onwards.
6.0
Budget Monitoring Position – Summary
6.1
The following table provides a summary of the full year projections for the
service areas along with an updated use of reserves figure where applicable.
Table 3 - Summary of Full Year Effects 2015/16
Service Areas (Table 1)
Treasury Management
Retained Business Rates
Total
Estimated
Movement
From
Updated
Budget
£
(460,500)
(70,000)
(346,000)
(876,500)
6.2
The overall position will continue to be monitored and the overall outturn
position will be reported in June which will include recommendations on the
allocation of the year end surplus.
7.0
Budget Monitoring Position – Capital
7.1
An update of the capital programme was presented to members in February
as part of the budget report.
7.2
Appendix C shows the latest position against the current 2015/16 approved
programme, and provides details of expenditure up to the end of period 10.
The appendix also highlights two schemes where virements of remaining
budgets are requested, together with additional slippage in relation to a
further six schemes.
7.3
Public Conveniences (Plumbing and Drainage) – There is currently a
budget balance of £2,077 available in relation to this scheme. It is requested
21
that the unspent balance is vired to the Public Convenience Water Heater
Improvements scheme, to increase this budget to £12,077 in total.
7.4
Fakenham Connect Roof Works – In order to proceed with the works to the
Fakenham Connect office building, it was necessary to undertake some works
to the roof of the building to make it water tight. A separate budget of £20,000
was allocated for these works, however the expenditure was incurred within
the overall capital scheme for Fakenham Connect and Cromer Office Works.
As such it is requested that a virement of the budget for the roof works be
undertaken to this scheme, to reflect the expenditure incurred in order to
facilitate the tenancies for the Department of Work and Pensions and the
Early Help Hub within the building.
7.5
Cromer Pier and West Prom Refurbishment Project – Phase one of this
scheme is being progressed and some works have been undertaken. It is
however, anticipated that the expenditure in the current financial year will only
be £150,000 by the end of March. The balance of budget in the 2015/16
financial year is therefore requested to be slipped into 2016/17.
7.6
North Lodge Park – It is not anticipated that this budget will be spent within
the current year, and as such the balance of £196,268 is requested for
slippage to 2016/17.
7.7
Victory Swim and Fitness Centre – Some works have been undertaken in
relation to this scheme, but nothing further is anticipated by the end of the
financial year. The remaining budget of £38,019 is therefore requested to be
slipped to the new financial year.
7.8
Steelwork Protection to Victory Pool and Fakenham Gym – Due to staff
vacancies these works are not currently being progressed. It is unlikely that
these works will be undertaken by the year end, so the balance of budget is
requested for slippage to 2016/17.
7.9
Holt Country Park – This scheme will not be progressed until the new
financial year. It is therefore requested that the budget of £12,500 be slipped
to 2016/17.
7.10
Fakenham Gym – This scheme will not be progressed in the current year.
The budget of £15,000 is requested for slippage to the new year when the
works will be undertaken.
7.11
Further to these requested adjustments there are three further schemes
where members are asked to note and / or approve amendments to the
budgets.
7.12
Cabbell Park – All budgeted works in relation to this scheme have now been
completed. However, further works have been identified associated with the
provision of changing facilities on the school site, together with potential
works to the pitch, floodlighting and barriers. Once the position has been
22
finalised, Members will be updated and the additional costs associated with
these works will need to be considered.
7.13
North Walsham Regeneration Scheme – The current budget available in
relation to this scheme is £83,116; however a further budget requirement of
£35,000 has been identified in order to complete the works. Members will be
aware that this scheme covered the purchase and landscaping of the site at
4a Market Street. The additional budget is requested due to the eventual
purchase price for the site being higher than originally anticipated following
the independent valuation assessment. In addition to this, as the site is in a
Conservation Area, following stakeholder consultation, and further
consideration, it was felt that it would be best to have a York stone finish on
the site, in keeping with the existing town centre street scheme. Consequently
the additional purchase costs and higher specification landscaping have
resulted in the additional budget requirement.
7.14
Fakenham Connect and Cromer Office Works – In order to accommodate
the DWP and Early Help Hubs within the Fakenham Connect and Cromer
office buildings, an original budget of £156,000 was to be made available to
complete the required works.
7.15
The revised forecast for the capital expenditure on the scheme is now
£245,000 in total, resulting in additional expenditure of £89,000. The majority
of the additional cost is due to extra works required by the DWP at both
premises, and their total contribution updated to reflect the additional works.
After allowing for the existing capital budgets the additional cost to the Council
is £30,000. This additional expenditure has however, enabled the Council to
improve facilities within the Fakenham Connect building (the disaster recovery
room, former CCTV office and an additional ground floor office space) which
should generate further income in the region of £15,000 to £20,000 per
annum in addition to the income generated by the agreements with the DWP.
8
Conclusion
8.1
The revenue budget is showing an estimated full year under spend for the
current financial year of £876,500. The overall financial position continues to
be closely monitored and it is anticipated that the overall budget for the
current year will be achieved.
9
Financial Implications and Risks
9.1
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.
9.2
The Original base budget for 2015/16 included service savings and additional
income totalling £222,000; these are still on target to be achieved. 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.
9.3
The estimated outturn shown in Table 1 will continue to be monitored during
the year and where applicable will be transferred to reserves.
23
10
Sustainability - None as a direct consequence from this report.
11
Equality and Diversity - None as a direct consequence from this report.
12
Section 17 Crime and Disorder considerations - None as a direct
consequence from this report.
24
Appendix A
General Fund Summary P10 2015/16
Name
Full Year
Updated
YTD Budget
YTD Actuals
YTD
Variance
Commitments
Remaining
Budget
£
£
£
£
£
£
Net Cost Of Services
Assets & Leisure
Clt / Corporate
2,252,321
1,534,081
1,386,507
(147,574)
1,099,430
(233,616)
0
42,440
62,160
19,720
19,318
(81,478)
5,816,795
1,823,413
1,227,294
(596,119)
302,020
4,287,481
624,761
535,742
413,064
(122,678)
78,705
119,061
Environmental Health
3,877,714
2,644,015
2,328,031
(315,984)
1,228,662
321,020
Finance
3,298,602
3,152,557
2,904,398
(248,159)
96,103
298,101
Organisational Development
1,050,957
895,985
841,255
(54,730)
16,941
192,761
Planning
1,466,866
1,212,807
893,470
(319,337)
59,530
513,865
18,388,016
11,841,039
10,056,180
(1,784,859)
2,900,710
5,417,195
1,760,520
1,760,520
1,760,522
2
0
3,521,042
Capital Charges
(2,096,742)
(1,747,290)
(1,747,290)
0
0
(3,844,032)
Refcus
(3,533,954)
0
0
0
0
(3,533,954)
0
0
87
87
0
87
(426,390)
(361,633)
(424,528)
(62,895)
0
(850,918)
56,000
0
0
0
0
56,000
1,123,952
0
0
0
0
1,123,952
Community, Econ Dev & Coast
Customer Services & ICT
Net Cost Of Services
Non Service Expenditure/Income
Precepts Of Parish Councils
External Interest Paid
Interest Receivable
Minimum Revenue Provision
Revenue Financing For Capital
Retirement Benefits
289,815
0
0
0
0
289,815
15,561,217
11,492,636
9,644,971
(1,847,665)
2,900,710
2,179,187
Capital Projects Reserve
Asset Management
Benefits
Big Society Fund
(712,190)
(16,751)
(184,882)
(10,000)
0
0
0
0
0
0
0
0
0
0
0
0
(712,190)
(16,751)
0
0
0
0
(184,882)
(10,000)
Business Rates Reserve
(187,855)
0
0
0
0
(187,855)
Coast Protection
(194,662)
0
0
0
0
(194,662)
Common training
2,000
0
0
Economic Development & Tourism
(25,000)
0
0
0
0
0
0
2,000
(25,000)
Elections
(90,000)
0
0
0
0
(90,000)
Enforcement Board
(36,516)
0
0
0
0
(36,516)
(5,000)
0
0
(88,150)
(10,670)
(51,728)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(5,000)
(88,150)
(10,670)
(51,728)
New Homes Bonus reserve
284,800
0
0
Organisational Development
Planning Reserve
(76,963)
(94,340)
0
0
0
0
0
0
0
0
0
0
284,800
(76,963)
(94,340)
Restructuring/Invest to Save
Contribution to /(from) General
Reserve
Amount to to met from
Government Grant and Local
Taxpayers
(60,367)
0
0
0
0
(60,367)
331,710
0
0
0
0
331,710
14,334,653
11,492,636
9,644,971
(1,847,665)
2,900,710
952,623
Parish Precepts
Council Taxpayers
(1,760,520)
(5,307,073)
(1,566,865)
(4,723,299)
(1,566,865)
(4,723,299)
0
0
0
0
(193,655)
(583,774)
Business Rates Retention
(3,121,466)
(2,988,083)
(2,906,058)
82,025
0
(215,408)
Central Government Grants
Council Tax Freeze Grant 2015/16
New Homes Bonus
(2,403,933)
(57,912)
(1,683,749)
(2,112,408)
(57,912)
(1,683,749)
(2,112,371)
(58,070)
(1,683,749)
37
(158)
0
0
0
0
(291,562)
158
0
Income from Government Grant
and Taxpayers
(14,334,653)
(13,132,316)
(13,050,412)
81,904
0
(1,284,241)
0
(1,639,680)
(3,405,441)
(1,765,761)
2,900,710
(331,618)
Net Operating Expenditure
Contributions To/From
Earmarked Reserves:
Environmental Health
Grants
Housing
Local Strategic Partnership
Surplus/Deficit
25
Appendix B
Service Area Summaries P10 2015/16
Assets & Leisure
Cost Centre Name
Car Parking
Markets
Industrial Estates
Updated
Budget
£
Property Services
YTD Variance
£
Budget
Remaining
£
Commitments
£
(1,278,453)
(1,417,347)
(138,894)
263,617
66,301
25,118
27,177
2,059
6,920
32,204
(15,683)
(26,371)
(3,328)
23,043
1,529
(13,884)
3,320
2,770
(4,988)
(7,758)
0
8,308
(5,223)
4,560
(1,930)
(6,490)
0
(3,293)
5,399
(7,651)
(11,346)
(3,695)
9,396
7,349
107,490
111,009
122,910
11,901
96,878
(112,298)
Parklands
Administration Buildings Svs
YTD Actuals
£
(1,209,835)
Surveyors Allotments
Handy Man
YTD Budget
£
(56,105)
12,768
14,413
18,576
4,163
12,234
(18,042)
Parks & Open Spaces
461,746
368,188
361,444
(6,744)
148,544
(48,242)
Foreshore
193,832
163,692
130,051
(33,641)
9,457
54,325
20,396
16,938
15,469
(1,469)
161
4,766
Sports Centres
291,834
175,110
183,076
7,966
105,581
3,177
Leisure Complexes
647,427
515,025
496,970
(18,054)
76,556
73,901
Other Sports
112,299
163,774
154,651
(9,123)
31,195
(73,547)
10,389
7,971
8,217
246
2,102
70
Pier Pavilion
103,300
99,850
97,758
(2,092)
83,260
(77,718)
Foreshore (Community)
400,159
329,071
327,872
(1,199)
85,191
(12,904)
Woodlands Management
198,742
165,440
162,817
(2,623)
66,441
(30,516)
70,949
63,252
47,331
(15,921)
7,682
15,936
Public Conveniences
669,317
551,030
543,201
(7,829)
80,944
45,173
Investment Properties
95,726
59,595
120,979
61,384
7,319
(32,571)
0
30
(2,773)
(2,803)
4,425
(1,652)
11,668
9,720
9,720
0
0
1,948
2,252,321
1,534,081
1,386,507
(147,574)
1,099,430
(233,616)
Community Centres
Recreation Grounds
Cromer Pier
Leisure
Cctv
Total Assets
Clt / Corporate
Cost Centre Name
Updated
Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Budget
Remaining
£
Commitments
£
Corporate Leadership Team
0
0
(778)
(778)
3,261
(2,482)
Legal Services
0
42,440
62,938
20,498
16,058
(78,996)
Total CLT & Corporate
0
42,440
62,160
19,720
19,318
(81,478)
Community, Economic Development and Coastal
0
Cost Centre Name
Health
Arts & Entertainments
Museums
Updated
Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Budget
Remaining
£
Commitments
£
0
0
(11,061)
(11,061)
0
11,061
112,981
104,310
121,561
17,251
1,012
(9,592)
20,000
20,000
20,000
0
0
0
General Economic Development
443,648
353,900
372,599
18,699
31,059
39,990
Tourism
124,278
97,896
90,241
(7,654)
11,921
22,116
0
0
8,628
8,628
717
(9,345)
Nnflag Project
Coast Protection
1,198,262
904,860
917,479
12,619
235,549
45,234
Regeneration Management
(107,584)
(89,577)
(93,725)
(4,147)
150
(14,009)
(3,397)
Comm & Econ Dev Mgt
Housing (Health & Wellbeing)
Housing Strategy
Community And Localism
Coastal Management
Community, Economic Development
and Coastal
0
0
3,397
3,397
0
256,784
173,790
163,017
(10,773)
0
93,767
3,626,243
105,125
(4,862)
(109,988)
20,286
3,610,819
137,696
149,372
(342,216)
(491,588)
0
479,912
4,487
3,738
(17,763)
(21,501)
1,326
20,924
5,816,795
1,823,413
1,227,294
(596,119)
302,020
4,287,481
Customer Services & ICT
26
Appendix B
Service Area Summaries P10 2015/16
Cost Centre Name
It - Support Services
Updated
Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Budget
Remaining
£
Commitments
£
12,000
22,110
(45,928)
(68,038)
22,330
21,667
Tic'S
244,510
207,610
187,288
(20,322)
12,135
45,087
Homelessness
368,251
305,328
297,792
(7,536)
34,494
35,964
Customer Services Housing
0
(1,416)
(12,492)
(11,076)
356
12,136
Graphical Info System
0
2,080
2,011
(69)
0
(2,011)
Media & Communications
0
10
(7,908)
(7,918)
257
7,650
Customer Services - Corporate
0
20
(7,700)
(7,720)
9,132
(1,432)
624,761
535,742
413,064
(122,678)
78,705
119,061
Total Customer Services & ICT
0
Environmental Health
Cost Centre Name
Updated
Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Budget
Remaining
£
Commitments
£
Commercial Services
471,640
390,581
388,998
(1,583)
4,648
Rural Sewerage Schemes
370,675
370,615
365,837
(4,778)
0
4,838
Travellers
99,960
114,780
116,991
2,211
7,645
(24,676)
Public Protection
90,319
65,690
48,438
(17,252)
1,277
40,603
Street Signage
33,562
22,561
15,820
(6,741)
2,165
15,577
Pest Control
16,572
13,850
13,160
(690)
71
3,341
549,803
454,195
473,818
19,623
16,649
59,336
60,304
49,040
44,721
(4,319)
4,338
11,245
0
20
(641)
(661)
5,504
(4,863)
1,349,151
523,825
241,947
(281,878)
1,037,869
69,335
638,723
473,818
470,794
(3,024)
146,846
21,083
29,147
25,125
29,659
4,534
1,550
(2,062)
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection And Disposal
Cleansing
Environmental Strategy
77,994
Community Safety
21,973
18,315
15,224
(3,091)
0
6,749
Civil Contingencies
145,885
121,600
103,265
(18,335)
100
42,520
3,877,714
2,644,015
2,328,031
(315,984)
1,228,662
321,020
Total Environmental Health
Finance
Cost Centre Name
Local Taxation
Benefits
Discrectionary Payments
Non Distributed Costs
Updated
Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Budget
Remaining
£
Commitments
£
593,599
639,923
610,316
(29,607)
23,244
(39,961)
1,215,109
1,203,960
1,125,410
(78,550)
11,356
78,343
95,051
94,621
94,272
(349)
0
779
290
222,873
234,320
11,447
0
(234,030)
Benefits & Revenues Mgmt
0
0
(62,300)
(62,300)
0
62,300
Corporate Finance
0
0
(52,570)
(52,570)
6,293
46,277
Internal Audit
6,000
(41,092)
(40,683)
409
41,904
4,780
Central Costs
0
940
955
15
0
(955)
Corporate & Democratic Core
1,388,553
1,031,332
994,677
(36,655)
13,307
380,569
Total Finance
3,298,602
3,152,557
2,904,398
(248,159)
96,103
298,101
27
Appendix B
Service Area Summaries P10 2015/16
Organisational Development
Cost Centre Name
Human Resources & Payroll
Updated
Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Budget
Remaining
£
Commitments
£
60,273
54,433
34,063
(20,370)
12,734
13,476
0
25,580
(11,465)
(37,045)
0
11,465
Insurance & Risk Management
0
(20)
(8,071)
(8,051)
0
8,071
Registration Services
433,722
351,820
390,125
38,305
365
43,232
Members Services
556,962
464,162
455,651
(8,510)
3,843
97,468
0
10
(19,048)
(19,058)
0
19,048
1,050,957
895,985
841,255
(54,730)
16,941
192,761
Policy & Performance Mgt
Web Team
Total Organisational Development
Planning
Cost Centre Name
Updated
Budget
£
YTD Budget
£
YTD Actuals
£
YTD Variance
£
Budget
Remaining
£
Commitments
£
Development Management
518,124
432,289
382,857
(49,432)
29,156
106,111
Planning Policy
266,624
212,052
194,129
(17,923)
1,000
71,496
Conservation, Design & Landscape
225,038
187,540
180,087
(7,453)
1,800
43,151
Major Developments
185,991
154,990
155,643
653
290
30,058
87,930
73,280
46,306
(26,974)
212
41,412
Planning Support
2,000
1,696
333
(1,363)
852
816
Head Of Planning
0
(10)
1,367
1,377
0
(1,367)
Building Control & Access
Property Information
Total Planning
Total Net Cost of Services
181,159
150,970
(67,250)
(218,220)
26,222
222,188
1,466,866
1,212,807
893,470
(319,337)
59,530
513,865
18,388,016
11,841,039
10,056,180
(1,784,859)
2,900,710
5,417,195
28
Appendix C
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P10
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation
Centre
50,000
10,295
39,705
0
(39,705)
The first stage of this scheme is
due to be completed by the end
of the financial year.
0
0
0
Rocket House
77,084
36,485
40,599
492
(40,107)
Works on this property are
currently on hold.
0
0
0
Public Conveniences (Plumbing and
Drainage)
15,000
12,303
2,697
620
(2,077)
The balance of budget on this
scheme is requested for virement
to the sheme for Public
Convenience Water Heater
Improvements.
0
0
0
Mundesley Road Car Park Resurfacing
70,000
615
69,385
59,695
(9,690)
The works in relation to this
scheme have been completed.
0
0
0
North Norfolk Enterprise and Start Up
Grants
135,000
35,454
99,546
85,516
(14,030)
This project has progressed with
payments under the grant
scheme approaching completion.
0
0
0
This scheme is being reviewed
for tender. It is possible that
some works will commence
before the end of the financial
year.
0
0
0
It has been requested that the
£2,077 currently unspent on PC
Plumbing and Drainage be vired
to this budget.
0
0
0
Car Park Refurbishment 2015/16
53,108
0
53,108
10,781
(42,327)
Public Convenience Water Heater
Improvements
10,000
0
10,000
553
(9,447)
Egmere Business Zone (Subject to Full
Council Approval)
1,445,000
0
0
0
0
1,445,000
0
0
Better Broadband for Norfolk
1,000,000
0
0
0
0
1,000,000
0
0
2,855,192
95,152
315,040
157,657
(157,383)
2,445,000
0
0
29
Appendix C
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P10
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Housing and Infrastructure
Disabled Facilities Grants
Annual programme
0
450,000
359,185
(90,815)
Housing Associations
Annual programme
0
403,635
0
(403,635)
3,500,000
0
3,500,000
0
(3,500,000)
Housing Loans to Registered Providers
Parkland Improvements
Grant payments under this
scheme are ongoing.
644,247
1,054,890
0
An invoice is awaited for this
scheme relating to 80% of the
total budget, as the scheme first
milestone has been reached.
100,908
0
0
0
0
0
0
0
0
745,155
1,054,890
0
40,000
42,000
104,583
Tendering for the works will be
undertaken through the Norfolk
County Framework Contract.
The works will follow this process
once the licencee consultation
exercise has been completed.
100,000
4,437
95,563
6,376
(89,187)
3,600,000
4,437
4,449,198
365,561
(4,083,637)
1,409,000
1,184,417
38,000
0
(38,000)
40,023
37,671
2,352
0
(2,352)
0
0
0
1,418,631
1,304,161
114,470
17,411
(97,059)
0
0
0
79,500
69,533
9,967
615
(9,352)
There are oustanding issues
concerning the effective working
of the lights on the prom.
0
0
0
Phase 1 of the scheme is
progressing although it is
anticipated that only £150k will
be spent by the end of the
financial year. The balance of
budget is requested for slippage
to 2016/17.
650,000
0
0
0
0
0
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay
Stopping Facilities
Sheringham Beach Handrails
Cromer Pier Structural Works - Phase 2
Sheringham Promenade Lighting
Cromer Pier and West Prom
Refurbishment Project
Refurbishment Works to the Seaside
Shelters
1,465,000
42,062
772,938
79,913
(693,025)
149,500
109,184
40,316
8,918
(31,398)
30
This scheme is ongoing.
Some minor works have been
undertaken and the balance of
budget is still required.
Appendix C
Scheme
Cromer Coast Protection Scheme 982
and SEA
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P10
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
10,400,000
3,447,172
2,357,116
873,410
(1,483,706)
4,595,712
0
0
1,967,015
1,683,217
18,798
0
(18,798)
265,000
0
0
122,000
91,486
30,514
0
(30,514)
0
0
0
90,000
16,678
0
0
0
73,322
0
0
1,176,000
852,105
263,249
60,655
(202,594)
The scheme is progressing
although it is possible that there
will need to be further slippage to
2016/17 by the end of the year.
60,646
0
0
804,000
279,957
319,119
105,246
(213,873)
The scheme is progressing.
204,924
0
0
2,221,000
307
968
660
(308)
2,219,725
0
0
Sheringham Gangway
136,737
46,570
90,167
73,655
(16,512)
The scheme is almost complete.
0
0
0
Repairs and Renewals Grants - Flood
Protection Works
368,294
368,294
0
239,782
239,782
The final grant payments have
been made under this scheme,
with full funding being available
from grant to the Council.
0
0
0
Ostend Targeted Rock Placement and
Coastal Adaptation
55,000
0
220
220
0
54,780
0
0
Cromer Pier - External and Roofing
Improvements to Pavilion Theatre
20,000
0
0
999
999
0
20,000
0
21,921,700
9,532,814
4,058,194
1,461,483
(2,596,711)
8,164,109
62,000
104,583
Pathfinder Project
Cromer to Winterton Scheme
Coastal Erosion Assistance
Storm Surge
Sheringham West Prom
Mundesley - Refurbishment of Coastal
Defences
31
Preliminary works have been
undertaken in relation to this
scheme which is to be
progressed in full in 2016/17.
Preliminary works have been
undertaken in relation to this
scheme which is to be
progressed in full in 2016/17.
Appendix C
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P10
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Localism
North Lodge Park
North Walsham Regeneration Schemes
(Including Market St North Walsham)
Victory Swim and Fitness Centre
Play Areas
Splash Roof Repairs
Steelwork Protection to Victory Pool
and Fakenham Gym
Cabbell Park
North Norfolk Railway
197,000
102,045
732
18,929
196,268
0
83,116
79,695
(196,268)
It is not anticipated that this
budget will be spent within the
current year, and as such the
balance of £196,268 is requested
for slippage to 2016/17.
0
0
0
(3,421)
Works in relation to this scheme
have been completed, although
the budget is anticipated as being
overspent due to higher purchase
costs and higher specifications
for the works being required.
0
0
0
0
0
0
54,370
12,535
41,835
3,816
(38,019)
It is not anticipated that any
further expenditure will be
incurred against this project in
2015/16, and slippage is
therefore requested to the new
financial year.
100,000
86,190
13,810
12,737
(1,073)
This scheme is now complete.
0
0
0
73,630
9,563
64,067
184
(63,883)
This scheme is progressing
although alternative solutions are
being considered.
0
0
0
(14,967)
Due to staffing issues these
works are not currently being
progressed. It is unlikely that
these works will be undertaken
by the year end, so the balance
of budget is requested for
slippage to 2016/17.
0
12,500
0
0
0
0
0
0
0
27,500
33
14,967
0
64,000
7,915
56,085
58,496
2,411
All budgeted works have been
completed, although there will
need to be a further update to
members regarding further works
that have been identified.
178,500
0
178,500
55,844
(122,656)
The first grant payment in relation
to this scheme has been made,
with all others due before the
year end. The new facilities are
due to open April 2016.
32
Appendix C
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P10
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Holt Country Park
12,500
0
12,500
0
(12,500)
This scheme will not be
progressed in the new year.
Slippage is therfore requested for
the budget to 2016/17.
Fakenham Gym
62,500
0
15,000
0
(15,000)
This scheme will not be
progressed in the new year.
Slippage is therfore requested for
the budget to 2016/17.
Splash Pool - Steelworks
35,000
0
0
0
0
0
35,000
0
907,045
135,897
676,148
210,772
(465,376)
30,000
47,500
17,500
Trade Waste Bins/ Waste Vehicle
272,700
254,666
0
0
0
18,034
0
0
Personal Computer Replacement Fund
205,583
162,603
42,980
0
(42,980)
0
0
0
Waste Management & Environmental
Health IT System
226,332
226,332
0
0
0
0
0
0
Asset Management Computer System
75,000
63,190
11,810
540
(11,270)
0
0
0
317,312
198,214
119,098
0
(119,098)
0
0
0
33,000
21,506
11,494
0
(11,494)
0
0
0
250,570
172,301
78,269
7,615
(70,654)
Tenders are back in relation to
the emergency lighting and fire
alarm works to be undertaken at
the Cromer Office. Estimated
value of the works is £35k.
0
0
0
Cash Receipting System Upgrade
10,000
0
10,000
9,892
(108)
This scheme has been
completed.
0
0
0
Planning System (Scanning of Old
Files) - Business Transformation
Programme
100,000
0
100,000
10,078
(89,922)
Discussions are underway on
how to approach this scheme,
with 2 part time scanning posts
being funded for scanning of old
records.
0
0
0
0
0
0
30,000
0
17,500
Delivering the Vision
Procurement for Upgrade of Civica System
e-Financials Financial Management
System Software Upgrade
Administrative Buildings
33
Several orders have been placed
for the purchase of new
machines which will be received
before the end of the financial
year.
This scheme is progressing with
handheld computers to be
purchased before the end of the
financial year.
Appendix C
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P10
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Telephony Procurement
90,000
7,933
82,067
59,886
(22,181)
The scheme is in progress and
will be completed by September
2016. Partial slippage of the
budget to the new financial year
may be required.
Web Infrastructure Upgrade
71,500
647
70,853
39,097
(31,756)
The scheme is in progress and
will be completed by September
2016. Partial slippage of the
budget to the new financial year
may be required.
0
0
0
New Print Solution - Multi Function Devices
60,000
53,599
6,401
0
(6,401)
The scheme is to be completed
by the end of the current financial
year.
0
0
0
The works are complete with
new tenants in both properties.
The overspend relates to works
to the roof which were subject to
a separate £20k budget below,
together with additional works
requested by the tenants.
0
0
0
The scheme is to be completed
by the end of the current financial
year.
0
0
0
Fakenham Connect and Cromer Office
Works - DWP
0
0
0
126,000
0
126,000
223,114
97,114
GIS / Web Based Mapping Solution
20,000
0
20,000
19,117
(883)
Recording and Audio Equipment
20,000
0
20,000
0
(20,000)
The scheme is subject to delay,
but it is anticipated as being
completed within the 2016/17
financial year.
0
0
0
Upgrades to Accolade and Idox Business Transformation Programme
25,000
0
25,000
7,600
(17,400)
This scheme is currently on hold
but to be progressed before the
end of the financial year. It forms
part of the overall Business
Transformation programme.
0
0
0
Wheeled Bins (Purchased from Kier)
66,750
0
66,750
64,173
(2,577)
The scheme has been completed
and final invoices are awaited.
0
0
0
Wheeled Bins
40,000
0
35,000
29,050
(5,950)
This scheme is progressing and
further purchases will be made
before the end of the financial
year.
5,000
0
0
150,000
0
150,000
0
(150,000)
0
0
0
Environmental Health IT System
Procurement
34
Appendix C
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P10
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
Fakenham Connect Roof Works
30,000
0
20,000
0
(20,000)
Stonehill Way Fire and Security System
15,000
0
0
0
0
Document and Records Management
System
60,000
0
60,000
4,547
(55,453)
Web Content Management System
44,000
0
44,000
9,425
IT Back Up and Storage System
52,000
0
52,000
2,460,747
1,260,991
31,744,684
11,029,291
A request is being made to vire
the budget to the Fakenham
Connect and Cromer Office
Works budget to finance the roof
works which formed part of the
overall scheme.
£
Updated
Budget in
Future Years
£
10,000
0
0
0
15,000
0
The project is currently in
progress and will be completed
within the 2016/17 financial year.
0
0
0
(34,575)
The project is currently in
progress and will be completed
within the 2016/17 financial year.
0
0
0
51,963
(37)
The back up and storage system
has been procured within budget.
0
0
0
1,151,722
536,097
(615,625)
33,034
15,000
0
10,650,302
2,731,570
(7,918,732)
11,417,298
1,179,390
122,083
7,497,775
450,000
0
161,554
1,000,000
2,307,969
0
11,417,298
42,000
0
0
0
0
1,137,390
0
1,179,390
104,583
0
0
0
0
17,500
0
122,083
Capital Programme Financing
Grants
Other Contributions
Asset Management Reserve
Capital Project Reserve
Invest to Save Reserve / Broadband Reserve
Capital Receipts
Internal / External Borrowing
TOTAL FINANCING
3,431,501
447,965
3,983
877,116
122,853
4,842,453
924,431
10,650,302
0
35
Agenda Item No____10________
Compulsory Purchase of long-term empty properties
Summary:
This report makes the case for compulsory purchase of
a number of long-term empty houses that have been
considered by the Enforcement Board, where it was felt
that without this action the properties are unlikely to be
returned to use in the near future.
Options
The Enforcement Board has discussed all properties
identified in this report in detail and various options
have been considered. Throughout the process
owners, or their representatives, have been given every
opportunity to progress their properties and return them
to use but, in the opinion of the Board, have failed to
take decisive action likely to achieve the desired end
result of bringing them back into use.
All properties in this report have been empty in excess
of 5 years and two of the properties have never been
occupied since they were built in 1999.
Owners have either proved difficult to engage or have
made promises to the Council that have not been kept,
which is why the Board considers that the properties
will not be returned to use without more direct
intervention by the Council.
Prior to seeking an order for compulsory purchase from
the secretary of state, the Council would be expected to
have attempted to reach a voluntary agreement for sale
with the current owners, which would be based on an
independent market valuation.
It may be possible to enter into an arrangement with a
purchaser for a back-to-back sale following compulsory
purchase. If not, then once acquired, the properties
would be sold on the open market by the method likely
to attract greatest interest from potential developers.
36
Recommendations:
1. That officers are authorised to seek a voluntary
agreement from the owners of the properties to
sell them to the Council and to complete the
sale within agreed timescales.
2. If no such agreement is reached, and in the case
of the Beeston Common properties, no valid
planning application is received for the site by
the agreed date, that officers are authorised to
proceed with applications to the Secretary of
State for Compulsory Purchase of the following
properties:
a. 37 Beeston Road, Sheringham
b. 2 and 2A Stirling Road, Sculthorpe
c. 55 and 56 Beeston Common, Sheringham
Note: these addresses are taken from the Land
Registry records and may differ from postal
addresses for service of documents, Parishes
and Council wards.
3. That officers are authorised to take necessary
steps for the acquired properties to be sold on
at the earliest opportunity with binding
conditions that will make clear the Council’s
expectation for the properties be returned to
use as soon as realistically achievable.
4. That the purchases will be funded from capital
resources from which virement of the necessary
funds is authorised.
5. To cap the costs of compulsory purchase at the
valuation plus CPO costs at the upper limit
identified in this report.
6. To
recommend
to
Full
Council
the
establishment of a capital budget of £630,000
specifically for financing compulsory purchase
of these properties.
Reasons for
Recommendations:
1. There is an expectation by the Secretary of State
that Councils will seek to reach voluntary
agreement on purchases prior to a Compulsory
Purchase being authorised.
2. To enable the properties to be brought back into
use, thus reducing the number of long-term empty
properties in the area and increasing housing
provision.
3. As for 2 above.
4. To make the necessary financial provision for
purchase
5. To ensure CPO remains a cost effective option.
6. To provide the necessary finance for CPO to be
completed.
37
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
North Norfolk Empty Homes Policy
Enforcement Board Briefing Note (Exempt Appendix A)
Section 17 Housing Act 1985
Cabinet Member(s)
Ward(s) affected
Cllr Judy Oliver
Sheringham, The Raynhams
Contact Officer, telephone number and email: Will Abë, 01263 516080,
william.abe@north-norfolk.gov.uk
1.
Introduction
1.1
The Council’s Empty Homes Policy states that effective use of existing
housing stock is key to achieving the stated ambition that ‘Everyone in North
Norfolk should have the opportunity to buy or rent a decent home at a price
they can afford, in a community where they want to live and work.’
1.2
There are currently more than 500 long-term empty properties within North
Norfolk. Long-term empty properties are defined as those empty for 6
months or more.
1.3
The following properties are proposed for CPO:
1.3.1 37 Beeston Road, Sheringham. This mid-terraced property has been empty
in excess of 10 years following the death of the owner. Officers have
attended the property to deal with rats, building structure concerns and
neglect. The family solicitor has made repeated assurances to the council
that the property would be put up for sale when probate was obtained. In
April 2015, we were informed that probate had been granted but the property
is still not being marketed for sale. See Exempt Appendix A for a breakdown
of costs
1.3.2 2 Stirling Road, Sculthorpe. In the parish of Tattersett, this property is the
middle of three terraced link houses built in 1999. The properties were all
granted planning permission in the mid-1990s. The first property was
completed and occupied from 1999 but this property was only partially
completed and has been left waiting for the kitchen and bathrooms to be
installed along with other minor works. Officers have made several attempts
to engage the owner but apart from one site meeting in 2015 the owner has
ignored all correspondence. A warrant of entry was granted by magistrates to
allow officers to inspect the property and consider options. After being unable
to secure a Registered Housing partner, required in legislation to apply for an
Empty Dwelling Management Order (EDMO) the Enforcement Board
considers that Compulsory Purchase of the property is the only viable option.
See Exempt Appendix A for a breakdown of costs.
1.3.3 2A Stirling Road, Sculthorpe. The history for this property is as per the
property above, but has only been completed to external shell and first floor
joists stage. It has hitherto only been used for storing building materials for
the site. See Exempt Appendix A for a breakdown of costs.
1.3.4 55 Beeston Common, Sheringham. One of a pair of semi-detached, flint
and brick cottage, that is overgrown and poorly maintained. Empty since
2010. The current owners inherited the properties in 2010. The family solicitor
38
has repeatedly told the Council that the properties are to be sold but a
protracted boundary dispute has prevented them offering the properties for
sale.
In December 2015, after the owners were told that direct action by the
Council could force a change in ownership, the solicitor informed the Council
that the boundary dispute had been officially resolved. Subsequently, the
owners made officers aware of the intention to submit a planning application
to develop the site which had not previously been discussed. Because of the
extended delays the Council has now informed the Solicitor that only a valid
planning application received by the end of February 2016 would delay direct
intervention. See Exempt Appendix A for a breakdown of costs.
1.3.5 56 Beeston Common, Sheringham. As above, but has been empty at least
since the Council Tax records were uploaded onto the current record system
in 2005. See Exempt Appendix A for a breakdown of costs.
2.
The Case for Compulsory Purchase (CPO)
2.1
Section 17 of the 1985 Housing Act states:
A local authority can acquire:
 A house, or houses (and land), for the provision or improvement of
housing accommodation (whether by itself or someone else),
but the action must achieve a quantitative or qualitative housing gain
2.2
There is a quantitative gain in compulsorily acquiring these properties in
North Norfolk, where it is widely accepted that there is a shortage of housing.
2.3
The long-term nature of a property’s empty status, along with the reticent
nature of the owners and a lack of viable cost effective alternatives, mean a
CPO is the approach most likely to deliver the Councils preferred outcome.
2.4
CPO can take a significant amount of time to progress to approval stage by
the Secretary of State but if approved gives Council a greater influence on
the outcome than other approaches.
3
Financial Implications and Risks
3.1
There will be costs attributable to a CPO. The level of costs will depend on
relevant objections to the Secretary of State once we have submitted our
CPO and obviously, any Public Inquiry would make CPOs more expensive
and extend the process. The costs in Exempt Appendix A assume a worstcase scenario.
3.2
Some or all costs may be recoverable if we have a back-to-back purchaser
on board e.g. Housing Association or a developer, with an indemnity for them
to cover our CPO costs. Any revenue costs that are not recoverable will be
funded from the Enforcement Board reserve. Associated revenue costs could
include a Minimum Revenue Provision (MRP) charge from the funding of the
capital purchase (through internal borrowing) should the property remain with
the Council for a year or more.
3.3
The law states that owners whose properties are the subject of a CPO are
entitled to a Basic Home loss payment, which is typically 7.5% of the sale
value. Recent changes to CPO guidance states that an owner should still be
paid the compensation they would be entitled to under CPO, even where
purchase of land (or property) is by agreement. In the case of the owners
accepting a voluntary offer, the Council will only incur the normal costs of
purchase.
3.4
Compulsory purchase of these properties will see them being sold to replace
the capital resources used for this scheme. The return to use of these
39
properties will also accrue New Homes Bonus to the Council under the
current scheme.
3.5
The resale of these properties will be dependent on the housing market and
the timescale for such will have cost liability implications should there be any
delays.
3.6
Currently, the Council has not allocated a capital budget for CPO activity and
a recommendation is contained within this this report for budget of £630,000
to be allocated for this purpose.
4
Sustainability
4.1
The bringing back of empty properties represents a far more sustainable use
of resources and land.
4.2
These properties occupy a prominent locations and taking action that will
lead to them being refurbished and reoccupied, making a significant
regeneration contribution to the area.
5
Equality and Diversity
5.1
CPO interferes with human rights, notably Article 1 of Protocol 1 and Article
8, but a CPO process, where used correctly, constitutes a lawful interference
by the State.
5.2
Empty homes are a wasted resource and have the potential to adversely
affect local housing markets. This proposed course of action will bring
several long-term empty properties on to the market and will create a
housing opportunity that has been denied to households seeking housing.
6
Section 17 Crime and Disorder considerations
6.1
Empty homes have a detrimental effect on the visual amenity of the
neighbourhood and can attract vandalism; fly tipping and other forms of antisocial behaviour as well as reducing the value of the adjoining properties.
This proposed course of action will reduce the possibility of unauthorised
entry, the risk of injury and criminal damage and general unsightliness.
7
Conclusions
7.1
The Council has made significant efforts to engage the owners of these
properties and to encourage them to take action to bring their properties
back into use. These efforts have proved unsuccessful and after considering
and discounting all other options, officers believe a Compulsory Purchase
Order is the most likely way to ensure these long-term empty properties are
returned to use.
40