Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
29th January 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 8th February 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 14)
To approve, as a correct record, the minutes of the meeting of the Cabinet held on 05
January 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.
JOINT STAFF CONSULTATIVE COMMITTEE
At the meeting of Joint Staff Consultative Committee held on 24th November 2015, the
following recommendation was made:
RESOLVED to recommend to Cabinet:
a) 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
10.
PLANNING POLICY & BUILT HERITAGE WORKING PARTY
At the meeting of the Planning Policy & Built Heritage Working Party held on 18 January
2016 the following recommendation was made:
RESOLVED to recommend to Cabinet:
1.
11.
That the proposed Neighbourhood Area designation is recommended to Cabinet
for approval
MANAGING PERFORMANCE QUARTER 3 2015/16
(attached – p.23)
(Appendix 1 – p.26)
Summary:
The purpose of this report is to give a third quarter progress report
of the performance of the Council. More specifically it reports
delivery of the Annual Action Plan 2015/16 and achieving targets.
It gives an overview, identifies any issues that may affect delivery
of the plan, the action being taken to address these issues and
proposes
any
further
action
needed
that
requires
Cabinet approval.
Options
considered:
Options considering action regarding performance are presented
separately, issue by issue, to the appropriate Council Committee.
Conclusions:
Cabinet
Decision
1. The majority of the 55 activities in the Annual Action Plan
2015/16 are on track (40) and nine activities have already
been completed successfully. Performance is being
closely monitored, particularly for the activities where
issues or problems have been identified (four), one is on
hold and one is not started. See Chart 1 below.
2. Of the 19 performance indicators where a target has been
set 11 are on or above target, two close to target and six
below target. Where assessment against the same period
last year is possible (21 indicators), eight are improving,
eight are static and five are worsening.
3. The delivery of the Annual Action Plan is progressing
according to plan. However, there are a few performance
issues in achieving targets and improvement. The issues
involved, and action being taken in each case, are detailed
in the remainder of the document.
Recommendation:
That Cabinet notes this report, welcomes the
progress being made and endorses the
actions laid out in Appendix 1 being taken by
management where there are areas of
concern.
Reasons for
Recommendations:
To ensure the objectives of the Council are
achieved.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
12.
ANNUAL ACTION PLAN 2016-17
(page 68)
(Appendix 1 – p.70) (Appendix 2 – p.89)
Summary:
This report presents the Annual Action Plan for 2016-17
for approval
Conclusions:
A rigorous development process has resulted in a
balanced and effective Annual Action Plan for 2016 -17
and associated performance indicators to deliver the
priorities and objectives as laid out in the Corporate Plan
2015-2019.
Recommendations:
Cabinet is recommended 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.
Cabinet
Decision
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
13.
Councillor T FitzPatrick
All
Helen Thomas
01263 516214
helen.thomas@north-norfolk.gov.uk
Councillor T FitzPatrick
All
Helen Thomas
01263 516214
helen.thomas@north-norfolk.gov.uk
2016/17 BUDGET REPORT
(page 94)
(Appendix A – p.119) (Appendix B – p.120) (Appendix C – p.149) (Appendix D – p.152)
(Appendix E – p.155) (Appendix F – p.156) (Appendix G – p.158) (Appendix H – p.163)
(Appendix I – p.165)
Summary:
Options considered:
This report presents for approval the 2016/17 budget
along with the latest financial projections for the
following three years to 2019/20. As part of the
budget report the Fees and Charges for 2016/17 are
also being put forward for recommendation.
The budget for the forthcoming financial year must
be set annually. Whilst there are options around the
individual budgets presented for approval i.e. what is
included in the budget for 2016/17, the overall
position now presented for approval is the
culmination of work carried out by officers and
Cabinet over a number of months, details of this
work is provided within the report.
Conclusions:
The Council’s budget is set for approval each year; it
is presented to Cabinet and then considered by
Overview and Scrutiny Committee before
recommendations are made to Full Council. This
report now presents a balanced budget for 2016/17
and also presents the latest financial projections for
the following three financial years, 2017/18 to
2019/20. The budget has been produced based on a
number of assumptions as detailed within the main
body of the report and also reflects the provisional
finance settlement announced on 17 December
2015. The report recommends that the surplus for
the year is allocated to the restructuring/Invest to
Save reserve. The report also outlines the risks
facing the Council in setting the budget and
forecasting future spending plans and resources.
Recommendations:
It is recommended that Cabinet agree and where
necessary recommend to Full Council:
1)The 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:
COUNCIL
Decision
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
recommendations
To recommend a balanced budget for 2016/17 for
approval by Full Council on 23 February 2016.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
14.
Councillor W Northam
All
Karen Sly
01263 516243
karen.sly@north-norfolk.gov.uk
CAR PARK FEES AND CHARGES
(page 170)
Summary:
Car park charges have remained static since April 2012, this
report considers the current car park fees and charges and
asks Members to consider options for future charging
arrangements.
Options considered:
A number of options are considered within the report as
follows:1. Do nothing – the Council could opt to do nothing and not
change the current fees and charges.
2. The report considers a number of different fee structures
including;



Conclusions:
Increasing fees at Coastal car parks
Increasing fees at Coastal car parks to include seasonal
variations
Increasing fees across all car parks
There are clearly multiple variations on the possible range of
pricing options for car parks. Due to the nature of car parking
charges and for simplicity it is best to make any increases to the
nearest 10p. Even a relatively modest annual increase of 3.5%
from 2012 would have increased the hourly coastal charge from
£1.20 per to £1.40 (rounded to the nearest 10p). The option
which generates the most additional income is Option 3
(increasing fees and charges across all car parks), which has
been forecast to generate additional income of £575,000 per
annum excluding VAT, thereby contributing towards the
Council’s medium term financial strategy. However Members
are aware that season ticket prices represent excellent value for
money for local residents parking and no increase has been
modelled in relation to the charges for these.
Recommendations:
COUNCIL
Decision
Reasons for
Recommendations:
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
15.
That Cabinet consider the options contained within this
report and make recommendations to Full Council on the
preferred option so that these changes can be considered
as part of the budget setting process and inform the future
financial strategy.
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.
Councillor J Rest
All
Duncan Ellis
01263 516330
duncan.ellis@north-norfolk.gov.uk
TREASURY MANAGEMENT STRATEGY STATEMENT 2016/17
(page 180)
(Appendix J – p.191)
Summary:
This report sets out details of the Council’s treasury
management activities and presents a strategy for the prudent
investment of the Council’s surplus funds.
Options Considered:
Alternative investment options are continuously appraised by the
Council’s treasury advisors, Arlingclose and all appropriate
options are included within this Strategy.
Conclusions:
The preparation of this Strategy Statement is necessary to
comply with the Chartered Institute of Public Finance and
Accountancy’s Code of Practice for Treasury Management in
Public Services.
COUNCIL
Decision
Recommendations:
That the Council be asked to RESOLVE that The Treasury
Management Strategy Statement is approved.
Reasons for
Recommendation:
The Strategy provides the Council with a flexible treasury
strategy enabling it to respond to changing market conditions
and ensure the security of its funds.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
Councillor W Northam
All
Tony Brown
01263 516126
tony.brown@north-norfolk.gov.uk
16.
CUSTOMER CONTACT CENTRE SYSTEM PROCUREMENT
Summary:
The Digital Transformation Programme includes a workstream to
deliver an enhanced Customer Contact Management (CCM)
System, which will deliver the following benefits





Options considered:
(page 192)
Ability to manage all digital communications channels
Performance monitoring and management of all customer
contacts
Increased customers dealt with at first point of contact
Increased efficiency resulting from reduced call handling
times
Financial savings as a part of the Digital Transformation
Programme
In order to deliver this workstream, this report requests the
release of previously identified funding to support the provision of
hardware, software and services to procure and implement a
CCM System.
Soft market testing and research has evaluated the products and
systems available to improve and standardise the way in which
we electronically interact with users of the services provided by
the council.
Systems which focus on telephony have been compared with
systems which also incorporate other, modern, digital
communication channels such as e-mail and social media.
Systems have been evaluated that are both installed on Council
infrastructure and that are installed on shared infrastructure in the
cloud.
Conclusions:
Cabinet
Decision
An effective and efficient Customer Contact Management system
is a critical component of the IT infrastructure required to support
the delivery of the Digital Transformation Programme. It will
deliver improvements in customer service and financial savings.
A solution that is fully compatible with existing licensing and
technology considerations is essential to ensure effective
Customer Service business processes and to provide service
users with simple to use systems.
Conducting an implementation in Customer Services followed by
a wider, phased, rollout programme represents the least risk and
fastest delivery of the business benefits approach to the project.
Because the CCM will be fully integrated with the existing Unified
Communications Systems and other Service specific software it
has been determined that an on-premise, rather than a cloud
based solution, is the most appropriate at this time.
Recommendations:
That Cabinet approves 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.
Reasons for
Recommendations:
In order to ensure that the Council has facilities in place to
efficiently manage customer contacts in a standard way, across
all electronic communications mechanisms, it is necessary to
upgrade the current system, which has reached the end of its
expected operational lifetime.
Users of Council services increasingly expect to be able to
communicate using a wide variety of electronic means. Therefore
any system that is procured will need facilities to manage these.
The application of a solution which has facilities for managing a
variety of communication channels will improve both the quality
of customer service and the efficiency of the business processes
which deliver the services.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
17.
Councillor T FitzPatrick
All
Sean Kelly
01263 516276
sean.kelly@north-norfolk.gov.uk
PUBLIC SPACE PROTECTION ORDERS
Summary:
Options considered:
(page 197)
This report details the options of delegation for Cabinet to
decide on the best method 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 follows
on from the January 2015 report on the new powers given to
the Council by the Anti-social Behaviour, Crime and Policing
Act 2014.
1. Take all amendments to existing Orders and requests
for new Orders to full Cabinet.
2. Cabinet to delegate its executive powers as per one of
the options below:
a) Delegate to a Cabinet committee composed of
cabinet members
b) Delegate to an individual cabinet member (probably
portfolio holder)
c) Delegate to an officer (Head of Service)
All of the above would include consultation as per the
legislation and with the local member affected by the proposed
Order.
Conclusions:
In January 2015 a Cabinet report highlighted the changes in
the legislation with the introduction of the new Act. This report
seeks to move forward with the designation of PSPOs across
North Norfolk where there is a need for them and then review
them once every three years as required in the legislation.
Recommendations:
1.
2.
Reasons for
Recommendations:
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.
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.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
Anti-social Behaviour, Crime and Policing Act 2014 – Part 4, Chapter 2, sections 5975
Anti-social Behaviour, Crime and Policing Act 2014: Reform of anti-social behaviour
powers: Statutory guidance for frontline professionals – Home Office July 2014
Dealing with irresponsible dog ownership: Practitioner’s manual – DEFRA October
2014
Antisocial Behaviour Crime and Policing Act - Powers and Duties – NNDC Cabinet
report January 2015
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
18.
Councillor A Fitch-Tillett
All
James Wilson
01263 516274
james wilson@north-norfolk.gov.uk
PROPERTY INVESTMENT STRATEGY – ESTABLISHMENT OF PROPERTY
COMPANY
(page 201)
(Exempt Appendix 1 – p.220) (Exempt Appendix 2 – p.248)
** EXEMPT APPENDICES ** NOT FOR PUBLICATION – BY VIRTUE OF PARAGRAPH 3 OF
PART 1 OF SCHEDULE 12A (AS AMENDED) OF THE LOCAL GOVERNMENT ACT 1972
Summary:
This report seeks approval to establish a wholly owned
property company in the form of a company limited by shares
to undertake the development of and investment in property in
order to generate a revenue and capital return to the Council.
To establish the company, the Council will provide initial short
term loan and long term funding on a commercial basis which
will generate a rate of return which will be greater than the
return currently being achieved on the Council’s short term
treasury investments. Once established, the Council may
choose to provide future loan funding to support continued
development and investment activities. Where required, the
Council may undertake borrowing from the Public Works Loan
Board in order to provide the required loans to the company,
such borrowing will be funded by the loan repayments from the
company and so will be at no cost to the Council.
Options considered:
Option 1 – Establish property company as wholly owned
company limited by shares, utilises existing powers and
enables additional revenue and capital receipts to be
generated for the Council.
This option is therefore
recommended.
Option 2 – Establishing property company as wholly owned
company limited by guarantee or as limited liability partnership
were not considered to offer the same outcomes as a company
limited by shares and are not recommended.
Option 3 - Formulation of a Joint Venture was not considered to
be an appropriate structure at this time and would be too slow
and complex to meet the Council’s needs at this time.
However, the Council and or property company could in the
future participate in a joint venture if this meets future
requirements. This option is therefore not recommended at
this time.
Conclusions:
In order to support delivery of both statutory and non-statutory
services the Council needs to become more commercial and
look to maximise income generation.
To meet this
requirement, this report recommends the creation of a wholly
owned property company limited by shares.
As sole
shareholder, the Council will be able to appoint and dismiss the
Board of Directors who will be responsible for the operation of
the Company. Board Directors can be Council members,
officers and independent persons, the report recommends that
in order to ensure the board has the required level of skills and
expertise that at least one independent person is appointed to
the board.
The company will generate an income for the Council in the
form of dividends, while the Council is sole shareholder all
dividends will be provided to the Council. In addition to
receiving dividends from the profits made by the company, the
Council will also benefit from the interest generated on both
short term and long term loans provided to the Council and the
payment for any staff or services provided by the Council to the
company. If the Council sells land to the company for
development it will receive capital receipts reflecting the full
market value of the land.
The creation of a property company will generate a return to
the Council in the medium and long term through the sale of
developments and the ongoing revenue generated through
retention of property assets such as private rented properties
and leases on commercial buildings.
The dividends the
Council received will be based on net profits as all costs
including Corporation Tax and VAT will need to be paid before
the profit can be distributed to shareholders. In addition the
need for future working capital will need to be met from
company profits.
The provision of loans to the property company by the Council
is required to enable the company to start trading and will be
provided as a mixture of short term loans to provide initial
working capital and development funding and long term loan
funding to fund the ownership of assets. Such loans will be on
commercial terms to ensure State Aid and “thin” capitalisation
issues do not arise. All loans will be subject to a due diligence
process.
Recommendations: It is recommended that:
1. a wholly owned property company limited by
shares is established to undertake property
development and investments as set out in this
report and that the amount of equity funding
required to establish the property company once it
Cabinet
has been legally incorporated is provided to it.
Decision
2. Full Council shall undertake the role of shareholder
on behalf of the Council.
3. Delegated authority is provided to the Chief
Executive in conjunction with the Portfolio Holder
and Section 151 Officer to:
 Sign off the business case for the
establishment of the property company
 Agree the name and brand identity of the
property company
 Negotiate and agree the completion of the
Articles of Association and Shareholders
Agreement for the property company
 Agree and complete all documents needed
for the incorporation of the property
company
 Agree
and
complete
any
other
documentation required to establish the
property company in accordance with this
report
 Agree which staff and services shall be
provided to the company and agree the
appropriate charge to made for the provision
of all staff, services and Directors to the
company.
4. Trading of the new property company shall only
commence once the actions at recommendation 3
have been completed and the first Annual Business
Plan has been submitted to and approved by Full
Council in their capacity as Shareholder.
5. The Treasury Management Strategy is amended to:
 Allow for the provision of loans to the
property company in full compliance with
State Aid requirements
 Allow for investments in the property
company to be made.
6. Allowance be made through revision to the 2016/17
capital programme and future capital programmes
for provision to the property company of:
 short term loans to provide working capital
and facilitate the initial developments and
investments as required
 longer term loans to fund ownership of
revenue generating assets
to be funded from internal borrowing or external
borrowing as appropriate with the Head of Finance
and the Portfolio Holder delegated to approve each
loan.
19.
Reasons for
Recommendations:
To support the Council’s Corporate Plan priorities to:
 Make the Council more efficient so that we can both
deliver our priorities and offer value for money for local
taxpayers, by generating revenue and capital returns for
the Council over the short, medium and longer term
 Addressing the housing and infrastructure needs for
local people whilst meeting the market demand for
housing by supporting the delivery of new housing
across the district.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
Cllr J Rest, Cllr W Northam
All
Sheila Oxtoby
01263 516000
sheila.oxtoby@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.”
20.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Tuesday 05 January 2016 at the Council
Offices, Holt Road, Cromer at 2.00 pm.
Members Present:
Mrs S Arnold
Miss B Palmer
Mr N Dixon
Mrs A Fitch-Tillett
Mr T FitzPatrick (Chairman)
Mr W Northam
Mr J Rest
Also attending:
Mrs A Claussen-Reynolds
Mrs H Cox
Mr P W High
Mr N Pearce
Officers in
Attendance:
Mrs M Prior
Mr R Reynolds
Mr E Seward
Mr R Shepherd
Mr N Smith
The Corporate Directors, the Communications and PR Manager, the
Head of Assets and Leisure and the Democratic Services Team
Leader
The Chairman welcomed everyone and wished them a Happy New Year. He said that there
were several members of the public in attendance for Agenda item 13 and consequently this
item would be taken earlier than scheduled. Before commencing the formal business, the
Chairman informed Members that the Council had recently been awarded Investors in
People Gold status. On behalf of all Members he thanked the staff for their hard work,
particularly during a time of change.
89.
APOLOGIES FOR ABSENCE
Mrs J Oliver
90.
MINUTES
The minutes of the meeting held on 30th November 2015 were approved as a correct
record and signed by the Chairman
91.
PUBLIC QUESTIONS
Three members of the public spoke in relation to Agenda item 13: Holt car park
development proposals. The Chairman informed Members that this item would be
brought forward.
Cabinet
14
05 January 2016
92.
HOLT CAR PARK DEVELOPMENT PROPOSALS
Mr Michael Hill said that he had run a business in Holt town centre for over 47 years.
He agreed with several statements within the report but could not accept the
recommendation not to commit to further investment in parking provision in Holt. Mr
Hill said that the town’s inaccessibility had resulted in a decline in customer
confidence over recent years and the report recognised that there was a
longstanding parking issue in Holt. Mr Hill concluded by saying that the highest
revenue per car parking space for the Council was generated in Holt and that this
was the time to invest in the town
Mr Duncan Baker, Holt Town Mayor and director of CT Baker spoke in a personal
capacity. He said that as an operator of a car park in the town he was aware of the
revenues that could be generated. Mr Baker said that Cabinet needed to base their
decision on a long term vision for the town and that by creating ample parking, Holt
would benefit but so would the region in general due to an influx of visitors. He said
that the claims regarding the likelihood of additional spaces across the town were
misleading and that the only solution was the Thornage Road site
Mr Michael Baker then spoke. He said that 45 years ago Holt had been
overshadowed by other towns across the District. Then the bypass was built and the
town began to grow. It had now reached capacity and investment was needed once
again. A further 500 homes were in the pipeline and there was a desperate need for
more parking. Mr Baker then referred to a previous proposal to build an additional
175 car parking spaces which had been refused by the Council due to ongoing
negotiations regarding the Thornage Road proposal. Mr Baker concluded by saying
that the Council owed Holt a car park as it had the lowest number of spaces per head
in North Norfolk.
The Chairman asked the Corporate Director (SB) to clarify why the previous
application for a car park, referred to by Mr Baker, had been turned down. The
Corporate Director (SB) said that Mr Baker had made a pre-application enquiry to
create a ‘deck’ on the existing Budgen’s supermarket car park and that there had not
been a formal proposal or a public consultation. He explained that officers had
advised that there would be an impact on the historic centre of the town and that it
was likely that they would recommend refusal of the scheme.
The Chairman invited Mr J Rest, Portfolio Holder for Assets, to respond to the points
raised. Mr Rest said that it was a contentious issue and that a lot of views had been
expressed. He referred to Mr Duncan Baker’s comment that the Thornage Road site
‘was not perfect’ and said that this was important. Mr Rest said that the site did not
offer value for money and that the figures in the report were correct. The owner of the
site had been very optimistic on occupancy rates and his reluctance to invest in the
scheme himself indicated that he was not confident of his projections.
Mr Rest reiterated that the Council was not currently able to commit to investing in
parking in the town. He said that Cabinet wanted to await the outcome of the various
proposals coming forward and would then consider any future proposals which were
viable.
Mr P W High spoke as the Local Member for Holt. He said that he was speaking on
behalf of residents and that many people were concerned about problems with onstreet parking in the town. He referred to a recent incident along the Cley Road when
an ambulance had not been able to get through due to parked cars. NCC Highways
Cabinet
15
05 January 2016
had advised they could put down a white line to deter parking but that yellow lines
were not possible until a car park was provided.
Mr High concluded by urging Cabinet to defer a decision. He offered to meet the
Leader and Mr Rest in Holt and show them where the parking issues were.
Mrs M Prior, Local member for Holt, then spoke. She said that the parking issue was
not quantifiable but that she was aware of very different views from Holt residents
and that there were two sides to the issue.
Mr N Dixon, in seconding the recommendation said that he had read all of the emails
that he had received on the issue and listened very carefully to the views expressed
during the meeting. Reflecting on the town’s parking problems, he said that Holt was
not unique in this and that looking at the proposals coming forward which included
Aldi, the public speakers had implied that people visiting the store would not then
continue on into the town and this could not be assumed. He felt it was right to pause
for now and await the outcomes of the proposals in the pipeline. The situation could
be reviewed and revisited at any time and future propositions would be given due
consideration.
Mrs A Fitch-Tillett said that the issue of parking in Holt had been around for 12 years
and that it kept coming back. She reminded Members that the Council did not have a
statutory duty to provide car parks. She said that she was hopeful of the proposals
that were in the pipeline but that the business case for the Thornage Road car park
did not make financial sense.
It was proposed by Mr J Rest, seconded by Mr N Dixon and
RESOLVED
Not to commit the District Council to making any further investment in parking
provision at Holt for the present time, recognising proposals currently under
construction and subject to detailed planning applications which would deliver over
150 new spaces to serve the town, undermining any financial investment made by
the Council in such facilities in the town. Should this position change Cabinet will be
advised so as to allow further consideration of the matter. If future proposals were to
come forward that reduced the levels of risk to the Council then these can be
considered at a future date.
Reasons for the decision:
It is recognised that there are on-going challenges faced by the town of Holt in
relation to car parking provision. However, with a number of proposals to provide
additional parking in Holt being taken forward, the level of risk associated with the
Council making an investment at this time is considered to be too high.
93.
ITEMS OF URGENT BUSINESS
None
94.
DECLARATIONS OF INTEREST
Mrs A Fitch-Tillett said that she had been lobbied regarding Agenda item 13 ‘Holt Car
Park Development Proposals’.
Cabinet
16
05 January 2016
Mr T FitzPatrick referred to Agenda Item 14: Egmere Business Zone Project. He said
that he was the local Member and knew the owners and directors linked to the
project.
95.
MEMBER QUESTIONS
The Leader confirmed that Members could ask questions as each item arose.
96.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR
RECONSIDERATION
None
97.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
98.
PLANNING POLICY & BUILT HERITAGE WORKING PARTY
RESOLVED
a. That the amendments outlined in Appendix 4 of the report be incorporated
into the Statement of Community Involvement and that the document be
approved.
b. To delegate power to the Planning Policy Manager to commission evidence to
support the production of the North Norfolk Local Plan (2016-2036), in
consultation with the Portfolio holder.
99.
CONTAMINATED LAND INSPECTION STRATEGY
Mrs A Fitch-Tillett, Portfolio Holder for Environment introduced this item. She said
that it was a very interesting document as it outlined the history and geology of the
District. The Strategy outlined how the Council intended to implement and manage its
inspection duties under Part 2A of the Environmental Protection Act 1990. A review
of the existing contaminated land inspection strategy had been undertaken and
amendments had been made to bring it in line with new government guidance.
Mr W Northam agreed that it was an excellent document and suggested that all
Members should have a copy for reference.
Mrs A Claussen-Reynolds said that she found it very informative and that she would
keep it for future reference.
It was proposed by Mrs A Fitch-Tillett, seconded by Mrs S Arnold and
RESOLVED to
Approve the revised Contaminated Land Inspection Strategy
Reasons for the decision:
To meet the Council’s statutory responsibilities in relation to inspection and control of
Contaminated Land.
Cabinet
17
05 January 2016
100.
SUPERFAST BROADBAND
The Chairman, Mr T FitzPatrick introduced this item. He said that the report followed
on from the presentation by Karen O’Kane at the December meeting of Council.
Members’ views were now sought on whether to release the £1m earmarked from
District Council resources to match fund a phase 2 rollout of the Superfast Extension
Programme (SEP). Mr FitzPatrick explained that the additional funding would
increase the coverage in North Norfolk from 85% to 92%, including some key
employment sites in the District. He concluded by saying that the Council would also
be looking at emergent technology to ensure that the highest possible coverage was
achieved.
The Chairman invited Members to comment:
1. Mr E Seward referred to paragraph 4.7 of the report. He said that 8.5k properties
would be affected and he wondered who would decide which areas would
receive the funding. Mr FitzPatrick replied that the County Council would guiding
the decision on that. In response to a further question as to whether it would
come back to Cabinet for consideration, Mr FitzPatrick confirmed that it would be
a Cabinet decision.
2. Mr R Reynolds said that he was fully supportive of the proposals and that
progress was faster than envisaged. Broadband was essential for businesses,
schools and residents.
3. Mr N Dixon said that as Portfolio Holder for Business and Economic
Development, he welcomed the proposals.
4. Mrs S Arnold said that broadband was vital and the lack of consistent provision
was frustrating. Anything that could be done to support increased provision
should be encouraged.
5. Mrs H Cox said that mobile phone reception was also poor, particularly along the
coast.
Miss B Palmer, in seconding the proposal, said that several residents in her ward had
brought up issues with poor broadband and this report would address this.
It was proposed by Mr T FitzPatrick, seconded by Miss B Palmer and
RESOLVED to
Release the £1million funding allocated to Broadband in an earmarked reserve to
match fund the delivery of BBfN2 Part 2 as detailed within the report.
Reasons for the decision:
To increase Broadband coverage in North Norfolk from 85% to 92%.
101.
CROMER WEST PROMENADE REVITALISATION PROGRAMME
The Chairman advised Members that there was a change to one of the
recommendations. Recommendation C was now a recommendation to Council rather
than a Cabinet decision:
c) to approve a further capital budget of £650,000 to support delivery of the phase 2
works.
Cabinet
18
05 January 2016
Mr J Rest, Portfolio Holder for Assets, then introduced the report. He said that it
informed Members of the progress in relation to the development of a ‘Master Plan’
and the programme of works to help revitalise Cromer’s West promenade following
the devastation caused by the tidal surge of December 2013. He thanked the
Property, Project and Programme Manager for all her hard work and said that the
suggested approach was a good one as it would enable the work to be done properly
and in a timely manner.
Mrs A Fitch-Tillett, Portfolio Holder for the Coast, said that she endorsed the
comments made by Mr Rest. Work had started on repairing the sea walls on the west
promenade just before the tidal surge of 2013 and the Council had taken the time to
fully assess the situation to ensure that a proper job was done and to spread the
work along the Cromer seafront.
Mr N Dixon said that he also supported the proposals. From a business and tourism
perspective it was right to take time and reflect on the best approach and to build in
resilience. Mr Dixon said that he welcomed the opportunity to link the promenade to
the car park and to release the full potential for the future.
Mrs H Cox, local Member for Cromer Town, said that this was an excellent piece of
work that would enhance the town and extend the holiday season. She thanked all
the staff involved.
It was proposed by Mr J Rest, seconded by Mrs A Fitch-Tillett and
RESOLVED
a) To adopt the West Promenade Master Plan;
b) To carry out the works identified within the phase 1 works programme and;
That the following recommendation is made to Council:
c)
to approve a further capital budget of £650,000 to support delivery of the phase 2
works.
Reasons for the decision:
To enable officers to proceed with the West Promenade revitalisation programme
(phase 1) for 2016 and continue work to define and fund phases 2 and 3 of the
Master Plan.
102.
EGMERE BUSINESS ZONE PROJECT
The Chairman advised Members that there was a change to one of the
recommendations. The following was now a recommendation to Council rather than
a Cabinet decision:
That subject to any necessary revision to the budget and policy framework, the
establishment of a capital budget of up to £1.445 million (£450k from external
resources and £995k from NNDC capital resources) to support delivery of the project.
Mr J Rest, Portfolio Holder for Assets, then introduced the item. He said that the
report provided an update on how the Council could take a lead role in facilitating
development of land at the Egmere Business Zone by opening up an area of land for
business use through the provision of road and utility infrastructure and the
development of a workshop/office unit for lease as a catalyst for future development.
Mr Rest concluded by saying that he felt that this was the direction in which the
Cabinet
19
05 January 2016
Council should be going – a commercial approach which embraced growing
technology.
The Leader, Mr T FitzPatrick commented on Egmere’s proximity to the port at Wells.
He said that there were already 96 jobs there and it was anticipated that there would
be work for the next 40 years. The establishment of a Local Development Order
(LDO) had encouraged businesses to invest and this had been followed by the recent
bid to become an Enterprise Zone.
The Chairman invited Members to speak:
1. Mr R Reynolds said that he supported the proposals. Job creation was very
important for the West of the District.
2. Mr R Shepherd agreed. He said that anything that attracted more businesses
was to be welcomed, particularly with the proposals to build lots more homes in
nearby Fakenham.
3. Mrs A Fitch-Tillett reiterated how important it was to support the port of Wells as
it was the only safe haven between Great Yarmouth and Boston. She added that
Egmere was also closer to key routes such as the A10, A11 and A! Than
anywhere else in the District.
It was proposed by Mr J Rest, seconded by Mr T FitzPatrick and
RESOLVED to

welcome the recent designation of the Egmere Business Zone site as an
Enterprise Zone by HM Government,

note and welcome the support for the delivery of a project to provide road and
utility infrastructure into 1.65 hectares of land at Egmere through the £450,000
grant secured from the Norfolk Business Rates Pool fund,

provide road and utility infrastructure into an area of land at Egmere, so as to
provide serviced land for future development by third parties,

note the interest of an established business working in the offshore renewables
sector in occupying workshop and office premises at the Egmere Business Zone
site and, subject to agreeing terms and following consultation with relevant
portfolio-holders, resolves to build and lease such a facility as a first
development on the wider site, as part of the Council’s Investment Strategy.
Make the following recommendation to Council:

that subject to any necessary revision to the budget and policy framework, to the
establishment of a capital budget of up to £1.445 million (£450k from external
resources and £995k from NNDC capital resources) to support delivery of
project.
Reasons for the decision:
To maximise the opportunities presented by the Enterprise Zone status awarded to
the Egmere Business Zone site, supporting new job-creating investment in the
District
Cabinet
20
05 January 2016
103.
ENFORCEMENT BOARD UPDATE
The Chairman advised Members that there was no need to exclude the press or
public as there would be no discussion of the exempt appendices.
Mrs S Arnold, Portfolio Holder for Planning introduced this item. She said that the
report updated Members on the work of the Enforcement Board over the previous 6
months and gave an assessment of progress made on difficult enforcement cases
since its inception. Mrs Arnold said that a lot of ground had been covered in the last
12 months and that things were definitely moving in the right direction.
Mr J Rest said that it was a very encouraging report and that the Enforcement Board
was a very valuable resource for the Council.
Mr R Reynolds said that as Chairman of the Development Committee he was aware
of the hard work carried out by the Enforcement Board.
The Leader, Mr T FitzPatrick said the Board had had great success in bringing empty
homes back into use.
It was proposed by Mrs S Arnold, seconded by Mr J Rest and
RESOLVED
1. To note the progress made to date by the Enforcement Board.
2. That, on the basis that the costs are non-recoverable, to approve Planning
Enforcement costs for the properties described at Confidential Appendix 1 up to a
maximum value of £20,000, to be funded from the Enforcement Board reserve.
3. To authorise acquisition of 37 Beeston Road, Sheringham subject to formal
valuation, and in respect of this, authorises the following specific actions:
3a. That, following a formal valuation, officers are authorised to seek a voluntary
agreement from the owners of 37 Beeston Road, Sheringham, to sell the
property to the Council stating clear timescales for the owners to respond and to
complete the sale.
3b. That if no such agreement is reached, that officers are authorised to proceed
with a Compulsory Purchase Order on the property from the Secretary of State.
3c.That officers are authorised to take necessary steps for the acquired property
to be sold on at the earliest opportunity with binding conditions that will make
clear the Council’s expectation for the property be returned to use as soon as
realistically achievable.
3d.That the purchase will be funded from capital resources from which virement
of the necessary funds is authorised.
3e.To cap the CPO costs at the valuation level plus the CPO application costs at
the upper limit of £35,000 as identified in Appendix 3.
Reasons for the decision:
1. To ensure appropriate governance of the Board’s activities.
2. To enable appropriate enforcement action to be completed through the use of
additional, external professional support.
3. To seek a formal valuation and acquire 37 Beeston Road:
3aThere is an expectation by the Secretary of State that Councils will seek to
reach voluntary agreement on purchase prior to a Compulsory Purchase being
authorised.
Cabinet
21
05 January 2016
3b To enable the property to be brought back into use, thus reducing the
number of long-term empty properties in the area and increasing housing
provision.
3c As 3b above.
3d To make the necessary financial provision for purchase.
3e To ensure CPO remains a cost effective option
.
The Meeting closed at 14.57 pm
_______________
Chairman
Cabinet
22
05 January 2016
Cabinet 8 February 2016
Overview and Scrutiny 17 February 2016
Agenda Item No___11_________
MANAGING PERFORMANCE QUARTER 3 2015/16
Summary:
The purpose of this report is to give a third quarter
progress report of the performance of the Council. More
specifically it reports delivery of the Annual Action Plan
2015/16 and achieving targets. It gives an overview,
identifies any issues that may affect delivery of the plan,
the action being taken to address these issues and
proposes any further action needed that requires
Cabinet approval.
Options considered:
Options considering action regarding performance are
presented separately, issue by issue, to the appropriate
Council Committee.
Conclusions:
1. The majority of the 55 activities in the Annual
Action Plan 2015/16 are on track (40) and nine
activities have already been completed
successfully. Performance is being closely
monitored, particularly for the activities where
issues or problems have been identified (four),
one is on hold and one is not started. See Chart
1 below.
2. Of the 19 performance indicators where a target
has been set 11 are on or above target, two
close to target and six below target. Where
assessment against the same period last year is
possible (21 indicators), eight are improving,
eight are static and five are worsening.
3. The delivery of the Annual Action Plan is
progressing according to plan. However, there
are a few performance issues in achieving
targets and improvement. The issues involved,
and action being taken in each case, are
detailed in the remainder of the document.
Recommendation:
That Cabinet notes this report, welcomes the
progress being made and endorses the actions laid
out in Appendix 1 being taken by management
where there are areas of concern.
Reasons for
Recommendations:
To ensure the objectives of the Council are achieved.
23
Cabinet 8 February 2016
Overview and Scrutiny 17 February 2016
Cabinet Member(s)
Ward(s) affected
Tom FitzPatrick
All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.thomas@north-norfolk.gov.uk
1.
Introduction
The purpose of the ‘Managing Performance Quarter 3 2015/16’ report is to
identify good practice and disseminate it, highlight any performance issues to
help the Council identify areas for discussion and take action to secure
improvement in the future where it is needed.
It is a key part of the Council’s Performance Management Framework.
2.
Content of the Report
The third quarter performance report shows progress against the Corporate
Plan 2012-2015 priorities together with any other relevant performance
achievements and issues.
Each priority has a strategic assessment of progress achieved during the
quarter in delivering the Annual Action Plan 2015/16 and achieving targets.
Performance information for each priority is broken into two sections: Strategic Overview including assessment of overall performance within each
priority, key achievements and issues
 Performance Indicators – progress reporting
In addition, detailed progress reports for each activity in the Annual Action
Plan 2015/16 are presented as Appendix 1.
3.
Conclusion
3.1
The majority of the 55 activities in the Annual Action Plan 2015/16 are on
track (40) and nine activities have already been completed successfully.
Performance is being closely monitored, particularly for the activities where
issues or problems have been identified (four), one is on hold and one is not
started. See Chart 1 below.
3.2
Of the 19 performance indicators where a target has been set 11 are on or
above target, two close to target and six below target. Where assessment
against the same period last year is possible (21 indicators), eight are
improving, eight are static and five are worsening.
3.3
The delivery of the Annual Action Plan is progressing according to plan.
However, there are a few performance issues in achieving targets and
improvement. The issues involved, and action being taken in each case, are
detailed in the remainder of the document.
24
Cabinet 8 February 2016
Overview and Scrutiny 17 February 2016
4.
Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the risk to delivery of the Annual Action Plan and the achievement of
the priorities in the Corporate Plan 2012-15. The recommendations of this
report outline the action being taken to reduce or remove the risk of not
delivering the Corporate Plan.
The Corporate Risk Register which includes the risk associated with nondelivery of the Corporate Plan is reviewed regularly by the Audit Committee
and the Performance and Risk Management Board.
5.
Financial Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the financial risk to the Council.
6.
Sustainability
There are no sustainability implications of this report.
7.
Equality and Diversity
There are no equality and diversity implications of this report.
8.
Section 17 Crime and Disorder considerations
There are no Section 17 Crime and Disorder implications of this report.
25
Managing
Performance
DRAFT
Quarter 3 2015/16
Version 0.4
Any queries please contact Policy and Performance Management Officer, Helen Thomas
Tel. 01263 516214
Managing Performance Quarter 3 2015-16 v 0 4
26
Page 1 of 42
Contents
Contents .................................................................................... 2
Introduction............................................................................... 3
Key............................................................................................. 3
Overview ................................................................................... 4
Jobs and the Local Economy .................................................. 5
Housing and Infrastructure ...................................................... 7
Coast, Countryside and Built Heritage ................................... 9
Localism .................................................................................. 16
Delivering the Vision .............................................................. 18
Appendix 1: Delivering the Annual Action Plan 2015/16 ..... 24
Jobs and the Local Economy ............................................................ 24
Housing and Infrastructure ................................................................ 29
Coast, Countryside and Built Heritage............................................... 31
Localism ............................................................................................ 36
Delivering the Vision .......................................................................... 38
Version Control....................................................................... 42
Managing Performance Quarter 3 2015-16 v 0 4
27
Page 2 of 42
Introduction
The quarterly performance report for Cabinet shows progress against the Corporate
Plan 2012-2015 Priorities, together with any other relevant performance achievements
and issues.
Each priority has a strategic assessment of progress achieved during the quarter in
delivering the Annual Action Plan 2015/16 and achieving targets.
Performance information for each priority is broken into two sections:


Summary, including assessment of overall performance within each priority
Performance Indicators – progress reporting
Progress in delivering each activity in the Annual Action Plan 2015/16 is reported in
Appendix 1.
The purpose of the report is to highlight any performance issues to help the Council
identify areas for discussion and take action to secure improvement in the future where
it is needed.
Signifies an action or target achieved that has an outcome that meets our
equalities objectives.
Key
NA = Not
applicable
Target achieved or exceeded
Improving compared to the same period
last year
Close to target
Close to the same period last year’s
result
Significantly below target
Significantly worse compared to the same
period last year
Indicators can be labelled as not applicable as this is important information for the Council
where the influence and actions of the Council may make improvements but there is not
sufficient control over the outcome to set a target
Managing Performance Quarter 3 2015-16 v 0 4
28
Page 3 of 42
Overview
1. The majority of the 55 activities in the Annual Action Plan 2015/16 are on track (40) and nine
activities have already been completed successfully. Performance is being closely
monitored, particularly for the activities where issues or problems have been identified (four),
one is on hold and one is not started. See Chart 1 below.
2. Of the 19 performance indicators where a target has been set 11 are on or above target, two
close to target and six below target. Where assessment against the same period last year is
possible (21 indicators), eight are improving, eight are static and five are worsening.
3. The delivery of the Annual Action Plan is progressing according to plan. However, there are
a few performance issues in achieving targets and improvement. The issues involved, and
action being taken in each case, are detailed in the remainder of the document.
Activities
2%
2%
Completed Successfully
7%
16%
On Track
Some Problems
Not Started
73%
On Hold
Chart 1 : Progress of the activities in the Annual Action Plan 2015/16
Managing Performance Quarter 3 2015-16 v 0 4
29
Page 4 of 42
Jobs and the Local Economy
Strategic Overview
Sixteen of the 18 actions are on track and two have been completed successfully. Performance
against three of the four targeted performance indicators are on or above target and one is
below target. Performance against all but one of the four performance indicators have improved
since the same period last year.
Information is awaited for one activity.
The Council has:
1. Seen two areas in the district designated by the Government as Enterprise
Zones; at Scottow Enterprise Park (the former RAF Coltishall site) and at
Egmere. The designation means that:
a. Businesses investing in those areas will benefit from business rate
relief;
b. The sites will be provided with access to high speed broadband; and
c. They will benefit from simplified planning regimes.
2. Offered free Christmas parking at Council car parks on 19 and 20 December
2015
3. Undertaken a study into business growth and investment opportunities, that
will inform future site allocations, development, promotion and marketing of
the district to facilitate new investment and economic growth opportunities
4. At the end of December 2015, a number of significant projects and
programmes successfully completed.
a. The Business Enterprise and Start-up grants scheme closed, having
supported 66 businesses with grants totalling £125,341
b. The Enterprise North Norfolk scheme supported a total of 187
business start-ups
c. The North Norfolk Fisheries Local Action Group managed to support
projects totalling £1,345,667, drawing down £872,493 of EFF funding
Issues and challenges
1. A key challenge will be to continue to maintain the momentum on business
support activity by working accessing emerging funding opportunities and
working with a new Growth Programme developed by the New Anglia LEP, the
details of which have yet to be approved
Managing Performance Quarter 3 2015-16 v 0 4
30
Page 5 of 42
Performance Indicators
Indicators and Measures
Number of businesses assisted to
retain jobs and/or increase
employment each year (monthly
cumulative) (J 004)
Q3
13/14
Q3
14/15
Q3
15/16
Target
Q3
15/16
Result
35
50
27
48
Target
2015/16
36
The increase in numbers is part of a shift in the emphasis of
skills team activities - with business webinars and selfemployment workshops.
Number of member businesses of
the Destination Management
Organisation (DMO) for the North
Norfolk coast and countryside
(quarterly) (J 015)
161
165
250
195
250 by
December
2015
It would seem that membership has plateaued. Efforts are
divided between attracting new members and retaining
existing, which is proving to be resource intensive.. The
Destination Management Organisation is successfully
maintaining regular contact with its members through
networking events, dissemination of relevant information, and
media activity. The marketing plan for the new year will include
exciting online campaigns on social media and engaging short
films with the involvement of members.
Number of new business startups supported by Enterprise
North Norfolk (quarterly
cumulative) (ED 023)
35
60
37
50
56
The final period of activity was successful in supporting many
local start-up businesses. Whilst the contract for the Enterprise
North Norfolk programme finished in December 2015, it is
anticipated that a new business start-up programme will soon
be established as part of a European funded initiative set up
by New Anglian Local Enterprise Partnership. This is pending
final approval from DCLG.
Number of people supported with
Information, Advice and Guidance
(IAG) (quarterly cumulative) (ED
025)
-
423
350
432
450
(annual)
The initiative has successfully delivered against programme
and contract targets. Digital by default webinars have begun to
supplement the face-to-face service.
Managing Performance Quarter 3 2015-16 v 0 4
31
Page 6 of 42
Housing and Infrastructure
Strategic Overview
Five of the eight activities in the Annual Action Plan 2015/16 are on track, one has been
completed successfully, one is having some problems and one has not started. Performance
against both of the indicators where an assessment against the same period last year is
possible are worsening.
The Council has:
1. Received and put out to consultation a development brief for the former RAF
Raynham site
Issues and challenges
1. Maintaining the supply of housing, particularly affordable housing, remains a
challenge in the current climate, as is facilitating a reduction in the number of
empty homes in the District
Managing Performance Quarter 3 2015-16 v 0 4
32
Page 7 of 42
Performance Indicators
Indicators and
Measures
Number of long
term empty
homes (6
months or more)
(monthly) (H
002)
Q3
13/14
Q3
14/15
575
505
Q3 15/16
Target
-
Q3 15/16
Result
555
Target 2015/16
-
Monitor
(Low is good)
Class C total is 453 and the Levy total is 114 which gives an increase in the long
term properties of 12 compared to last month. This is broken down by an
increase of 11 properties at Class C (empty 6-24 months) whilst the properties
at Levy stage have increased by 1 (empty 2 years+).
All properties that become empty after 3 months receive an empty property
review and questionnaire to complete. This gives us information as to what the
owner's intention is regarding their property. Each month these reviews are sent
out and are dealt with by the Revenue's Service and the Empty Homes
Manager. Regular visits were undertaken by the Revenues Outside Officer
however this has stopped since this post is being considered as part of the
Planning Business Process Review work which is on-going and looking at a
corporate enforcement team. Data Tank have done a data matching exercise
for us and Phoenix have carried out inspections of these empty properties. The
Empty Homes Manager is also visiting properties to gain useful information to
help reduce the long term empty property numbers.
Number of
affordable
homes built
(monthly
cumulative) (H
007)
99
63
N/A
19
-
Carry out
trend analysis
It was expected that 17 dwellings would be completed in December at Briston
but these dwellings have been delayed until January. By the end of March 2016
it is still expected that 75 affordable dwellings will have been completed.
Managing Performance Quarter 3 2015-16 v 0 4
33
Page 8 of 42
Coast, Countryside and Built Heritage
Strategic Overview
Activities and outcomes are being delivered against this priority. Two of the eleven activities in
the Annual Action Plan 2105/16 have been successfully completed and a further eight are on
track. One activity is having some problems. Performance against five of the eight targeted
performance indicators are on or above target and three below target. Where an assessment
against the same period last year is possible performance against one of the eight indicators is
improving, five are static and two worsening.
The Council has:
1. Carried out consultation on what should be the content of the emerging local plan.
Responses were received from town and parish councils, local developers, interest
groups as well as statutory consultees – e.g. police, health authorities etc.
2. Distributed new waste collection calendars and provided the information online
specific to every address in the district
3. Seen North Norfolk District Council’s refurbished toilets on Cromer Pier win a
national award in the beaches category of the 2015 Loo of the Year Awards
4. Proposals for the establishment of the Coastal Partnership are well advanced and
good working relations between a wide range of partners have been established,
bringing new research and funding opportunities for Coastal Management
initiatives
5. Partnership working with Bacton Gas Terminal and the Environment Agency is
progressing with the completion of an initial investigation into potential coastal
management options for the frontage
6. Completed improvements to four beach access ramps at Sheringham Gangway,
Sheringham Beach Road, Mundesley Lifeboat and Rudram’s Gap Bacton. These
projects have received significant funding from the FLAG initiative and have
improved the resilience and quality of fisheries infrastructure whilst also improving
beach access for the public and coast protection works
Issues and challenges
1.
Performance Indicators
Indicators
and
Measures
Q3 13/14
Q3 14/15
Q3
15/16
Target
Managing Performance Quarter 3 2015-16 v 0 4
34
Q3
15/16
Result
Target
2015/16
Page 9 of 42
Indicators
and
Measures
Percentage
of planning
appeals
allowed
(monthly
cumulative)
(C 002)
Number of
planning
appeals
allowed
(monthly
cumulative)
(C 002a)
Q3 13/14
-
-
Q3 14/15
Q3
15/16
Target
Q3
15/16
Result
27.8%
30.0%
21.1%
5.0
-
4.0
Target
2015/16
Review and
report. Less
than 30%.
-
-
N/A
The appeal decisions are reviewed on a regular basis by
Development Committee.
Percentage
of MAJOR
planning
applications
processed
within
thirteen
weeks
(monthly
cumulative)
(C 003)
81.25%
71.43%
80.00%
80%
60.00%
Major application workload is still significant and a number of those
applications are requiring S106 obligations, There have also been
significant issues in recruitment of a Team Leader in the Major
Projects Team, which has resulted in an unfilled post for over 12
months. The major project Team Leader post has now been
appointed (commencing mid Feb) and interviews for the vacant
Planning Officer post are being held mid-January. Once the team is
up to capacity, the performance should improve.
Managing Performance Quarter 3 2015-16 v 0 4
35
Page 10 of 42
Indicators
and
Measures
Percentage
of MINOR
planning
applications
processed
within eight
weeks
(monthly
cumulative)
(C 004)
Q3 13/14
Q3 14/15
Q3
15/16
Target
Q3
15/16
Result
41.67%
58.59%
70.00%
55.36%
Target
2015/16
70%
The workload has increased, at the same time as we have been
unable to fill a Planning Officer position, so has reduced our overall
capacity. Actions are being taken to address recruitment issues.
Percentage
of OTHER
planning
applications
processed
within eight
weeks
(monthly
cumulative)
(C 005)
58.40%
77.06%
70.00%
70%
64.14%
The workload has increased, at the same time as we have been
unable to fill a Planning Officer position, so has reduced our overall
capacity. Actions are being taken to address recruitment issues.
Percentage
of MAJOR
planning
applications
processed
within
thirteen
weeks over
the last 24
months
(monthly
cumulative)
(DM 005)
61.90%
75.90%
50.00%
Target
threshold
revised by
Government
from 30% to
40% in June
2014 and
from 40% to
50% in
September
2015.
70.00%
Our performance is well above the Government target which has
been increased to 50% in September.
Managing Performance Quarter 3 2015-16 v 0 4
36
Page 11 of 42
Indicators
and
Measures
Percentage
of MAJOR
planning
applications
refused and
then
overturned
on appeal
over the last
24 months
(monthly
cumulative)
(DM 006)
Q3 13/14
0.00%
Number of
MAJOR
planning
applications
refused and
then
overturned
on appeal
over the last
24 months
(monthly
cumulative)
(DM 006a)
-
Q3 14/15
1.20%
1
Q3
15/16
Target
Q3
15/16
Result
Target
2015/16
20.00%
3.75%
Target
threshold set
by
Government
at 30% and
confirmed by
the
Department
of
Communities
and Local
Government
at 20% in
June 2014.
NNDC target
20%.
4
3
Less than 5.
Our performance is well above the Government target. Three major
decisions have been overturned on appeal:



Magistrates Court Cromer
Crematorium decision
Happisburgh Caravan site
Managing Performance Quarter 3 2015-16 v 0 4
37
Page 12 of 42
Indicators
and
Measures
Target
response
time to fly
tipping and
all other
pollution
complaints
(within 2
working
days)
(monthly
cumulative)
(C 007)
Q3 13/14
Q3 14/15
Q3
15/16
Target
Q3
15/16
Result
90.00%
88.00%
80.00%
82.00%
Target
2015/16
80%
Throughout the quarter the response to complaints has been
consistent and maintained the cumulative response time of 82%
We received 168 requests for service over the quarter of which 127
(76%) were responded to within 2 working days.
This percentage comprises the following data:
77% of Nuisance cases were responded to within two days.
100% of Drainage cases were responded to within two days.
73% of fly tipping cases were responded to within two days.
There has been a significant improvement in fly tipping cases with
the percentage over last Qtr increasing by 9%. However there was
a reduction of 13% on the last Qtr with the Nuisance cases. On
further investigation into the causes of this it is associated with
errors in data recording after new processes have been setup and a
specific period of holiday cover during October. These matters have
now been addressed.
Number of
pollution
enforcement
interventions
(quarterly
cumulative)
(C 008)
25
22
-
18
Managing Performance Quarter 3 2015-16 v 0 4
38
-
-
Review and
report.
Page 13 of 42
Indicators
and
Measures
Q3 13/14
Q3 14/15
Q3
15/16
Target
Q3
15/16
Result
Target
2015/16
Within the quarter there were four new pollution cases which were
investigated with a view to potential prosecution. Three of these are
related to fly tipping, one related to waste duty of care. All of these
cases are still pending further investigation/action.
In addition, seven further fly tipping cases were completed during
the quarter. One of these being closed due to there being no
evidence to proceed, two were closed with warning letters being
sent and four were successful prosecutions of one individual. He
received a total of 150 hours community service and was ordered to
pay £303 compensation to the landowner on whose land he had fly
tipped. In addition he was ordered to pay £250 costs.
Four noise abatement notices were served three were in relation to
barking dogs and the other was for music noise.
Following the serving of the noise abatement notices last Qtr on 2
licensed premises the team have called for reviews of both of their
licences, one has been heard with additional conditions being
added to ensure the premises is run in a manner not to affect the
local community. The other one has yet to be heard.
Number of
fixed penalty
notices
issued
(quarterly
cumulative)
(C 009)
5
0
-
0
-
-
Carry out
trend
analysis
The team continues to issue FPNs when incidents are witnessed.
Patrols for dog fouling and littering have been reduced and will only
be targeted to specific hotspot locations as and when required.
Other methods of tackling the problem are being used including
signs, stencils and involving the local community and schools.
Number of
defaults
issued to the
waste and
related
services
contractor
for
cleanliness
(monthly
cumulative)
(C 010)
28
87
-
161
Managing Performance Quarter 3 2015-16 v 0 4
39
-
-
Review and
report.
Page 14 of 42
Indicators
and
Measures
Number of
rectifications
issued to the
waste and
related
services
contractor
for
cleanliness
(monthly
cumulative)
(ES 015)
Q3 13/14
118
Q3 14/15
174
Q3
15/16
Target
-
Q3
15/16
Result
195
Target
2015/16
-
-
No target.
Report to
Head of
Service and
Management
Team
Kier's performance across the contract as a whole has been
generally satisfactory during what has been a busy summer
season. As detailed in Q2, performance around bin collections has
been poor and is the source of the majority of defaults issued.
In total, 161 contract defaults have been issued in the period April Dec 2015, almost double the number issued in the same period in
2014. However, this is largely due to an increase in the level of
contract monitoring taking place, combined with the targeted
approach taken by officers to drive improvements in the service.
Managing Performance Quarter 3 2015-16 v 0 4
40
Page 15 of 42
Localism
Strategic Overview
There has been a considerable amount of activity against this priority. Two activities have been
successfully completed and four are on track.
The Council has:
1. Launched a Community Sports Club at Sidestrand Hall School. The club offers
martial arts and street dancing for students attending the school
2. Launched a Community Sports Hub at Briston Sports Pavilion. The Hub offers
yoga and archery and will now be run by a voluntary committee
3. Launched a Community Sports Club at Sheringham High School adding Flag
Football, a form of American football, to the activities the club offers
4. Received an application from Happisburgh Parish Council to designate the
parish as a Neighbourhood area. This is the first step towards preparing a
Neighbourhood Development Plan, Neighbourhood Development Order or a
Community Right to Build Order
5. Awarded Big society Fund grants to a wide variety of beneficial local
community projects
6. Refurbished the gyms at Victory in North Walsham and Splash in Sheringham
providing new strength cardiovascular equipment, an improved layout, and
redecoration. The centres are owned by North Norfolk District Council and
operated by Places For People Leisure. The refurbishments were funded by
the operator
Managing Performance Quarter 3 2015-16 v 0 4
41
Page 16 of 42
Performance Indicators
Indicators and Measures
Q3
13/14
Q3 14/15
Q3
15/16
Target
Q3 15/16
Result
Target
2015/16
Number of grants awarded
to local communities from
the Big Society Fund
(monthly cumulative) (L
005)
20
29
N/A
22
-
-
Review
and
report
Amount of funding
investment in community
projects (from the Big
Society Fund) (£) (monthly
cumulative) (L 006)
145,193
149,762.40
N/A
111,019.42
-
-
Review
and
report
The Big Society Fund Panel met on 7 September 2015.
13 applications totalling £111,950.55 were presented to the Panel




11 applications were approved
One was deferred
One was declined
Total funding awarded £62,095.31
The Final Panel for this financial year will be held in March 2016.
Managing Performance Quarter 3 2015-16 v 0 4
42
Page 17 of 42
Delivering the Vision
Strategic Overview
Two activities have been completed successfully, seven are on track, two are having some
problems and one is on hold. Performance against three of the seven performance indicators
where a target has been set are on or above target, two close to target and two are below
target. Performance against four indicators are improving compared to the same period last
year, two are static and one worsening.
The Council has:
Service Improvement
1. Been awarded Investors in People Gold Standard. Gold is the highest level
of recognition which organisations can achieve and is only given to those
that are able to demonstrate a degree of excellence in the way they
develop and support their staff
2. Agreed to share, on an interim basis, a Chief Executive and S151 Officer
with Great Yarmouth Borough Council
3. The Council’s award-winning legal team, eastlaw, has made it to the finals
of the British Legal Award 2015 and the Modern Law Awards 2015
4. Transformed the Fakenham Connect building and enabled the Department
of Work and Pensions to move into the building. Council services, DWP,
Fakenham Town Council and Norfolk County Council’s Registrar are
available
5. Formally agreed to work in partnership with three other local coastal
authorities in Norfolk and Suffolk, sharing coastal management resources
and expertise.
Managing Performance Quarter 3 2015-16 v 0 4
43
Page 18 of 42
Performance Indicators
Indicators and
Measures
Percentage of
Priority 2
(Important) audit
recommendations
completed on time
(quarterly
cumulative) (V
001)
Q3
13/14
78.0%
Q3
14/15
73.0%
Q3
15/16
Target
80.0%
Q3
15/16
Result
Target 2015/16
80%
72.0%
13 out of 18 implemented.
Percentage of
Priority 1 (Urgent)
audit
recommendations
completed on time
(quarterly
cumulative) (V
002)
-
-
100%
100%
-
-
100%
-
100%
There are no urgent recommendations outstanding.
Percentage of
audit days
delivered
(quarterly
cumulative) (V
004)
78.0%
-
78.0%
75.0%
127/170 days delivered as at the end of quarter 3.
Working Days Lost
Due to Sickness
Absence (Whole
Authority days per
Full Time
Equivalent
members of
staff) (quarterly
cumulative) (V
007)
4.71
4.51
4.15
4.50
6 days per full
time equivalent
(FTE)
employee
The figure for quarter 3 is the same as last year. The Council again offered all
staff the opportunity to have a flu injection.
Managing Performance Quarter 3 2015-16 v 0 4
44
Page 19 of 42
Indicators and
Measures
Percentage of
Council Tax
Collected (monthly
cumulative) (RB
009)
Q3
13/14
Q3
14/15
Q3
15/16
Target
Q3
15/16
Result
83.59%
83.59%
83.50%
83.60%
Target 2015/16
98.5% (annual)
We have achieved our target and collected an extra £78,014.33. We also
surpassed the previous last two financial years collection of Council Tax at
this point, both by 0.01%.
Percentage of
Non-domestic
Rates collected
(monthly
cumulative) (RB
010)
89.63%
86.51%
86.40%
85.75%
99.2% (annual)
Unfortunately we are still behind target. This has increased from 0.62% to
0.65% as at end of December 2015. This equates to approx. £161k compared
to the total amount collected of £21.7m Business Rates collected by the end
of December 2015.
The main reason for this is that we increased our debit by growing our NNDR
Rating List. The Rateable Value total has increased this month by £226,474
which includes the Aldi store in Fakenham and the Solar Farm at Scottow that
came into local rating list.
Average time for
processing new
claims (Housing
and Council Tax
Benefit) (monthly
cumulative) (RB
027)
26.0
19.0
18.0
17.0
18 days
During December, a total of 277 new claims have been processed, taking on
average 20 days to complete. This processing time includes delays by the
customer to provide the information required to process their application.
93% of new claims were processed within 14 days of receiving all information
required from the customer.
Further analysis shows that 62% of new claims were processed within 3 days
of receiving all information required from the customer.
Speed of
processing:
change in
23.0
12.0
10.0
Managing Performance Quarter 3 2015-16 v 0 4
45
18.0
10 days
Page 20 of 42
Indicators and
Measures
Q3
13/14
Q3
14/15
Q3
15/16
Target
Q3
15/16
Result
Target 2015/16
circumstances for
Housing and
Council Tax
Benefit claims
(average calendar
days) (monthly
cumulative) (RB
028)
During December, a total of 2,184 changes in circumstances have been
processed, taking on average 14 days to complete. This processing time
includes delays by the customer to provide the information required to
process their application.
84% of changes in circumstances were processed within 14 days of receiving
all information required from the customer.
Further analysis shows that 52% of changes in circumstances were
processed within 3 days of receiving all information required from the
customer.
Percentage of
Ombudsman
referrals
successful
outcomes for the
Council (monthly
cumulative) (PA
002)
-
Number of
Ombudsman
referral decisions
(monthly
cumulative) (PA
001)
-
66.7%
3
N/A
100%
-
N/A
1
-
No target set.
Report to
Management
Team.
-
No target set.
An excellent result so far this year, with reduced numbers of complaints
accepted compared to last year and the only one that was investigated, was
found in favour of the Council.
Percentage of
customers who
were quite or
extremely satisfied
they were dealt
with in a helpful,
pleasant and
courteous way
-
-
-
Managing Performance Quarter 3 2015-16 v 0 4
46
100%
-
-
No target set.
Report to
Transformation
Board.
Page 21 of 42
Indicators and
Measures
Q3
13/14
Q3
14/15
Q3
15/16
Target
Q3
15/16
Result
Target 2015/16
(quarterly) (CS
053)
Percentage of
customers who
were quite or
extremely satisfied
they were dealt
with in a
competent,
knowledgeable
and professional
way (quarterly)
(CS 054)
Percentage of
customers who
were quite or
extremely satisfied
with the time taken
to resolve their
enquiry (quarterly)
(CS 055)
Percentage of
customers who
were quite or
extremely satisfied
they got everything
they needed
(quarterly) (CS
056)
Average wait time
(minutes) Customer Services
(monthly) (CS 057)
Average
transaction time
(minutes) Customer Services
(monthly) (CS 058)
No target set.
Report to
Transformation
Board.
-
-
-
-
-
-
-
3 min
32 sec
(Dec)
-
8 min
27 sec
(Dec)
-
-
100%
97.9%
-
100%
-
2 min
14 sec
(Dec)
-
6 min
10 sec
(Dec)
-
-
-
-
-
-
-
-
-
-
No target set.
Report to
Transformation
Board.
No target set.
Report to
Transformation
Board.
No target set.
Report to
Transformation
Board.
No target set.
Report to
Transformation
Board.
The reduction in both customer waiting time and transaction time by
Customer Services has been achieved through better use of performance
management information and allocation of staff resources to cover identified
Managing Performance Quarter 3 2015-16 v 0 4
47
Page 22 of 42
Indicators and
Measures
Q3
13/14
Q3
14/15
Q3
15/16
Target
Q3
15/16
Result
Target 2015/16
customer demand patterns.
Average wait time
(minutes) Housing Options
(monthly) (CS 059)
-
5 min
55 sec
(Dec)
-
4 min
29 sec
(Dec)
-
-
No target set.
Report to
Transformation
Board.
The improved performance is a result of improved processes and an increase
in the proportion of cases which are simpler to process.
Managing Performance Quarter 3 2015-16 v 0 4
48
Page 23 of 42
Appendix 1: Delivering the Annual Action Plan 2015/16
Key
Activity Status
Symbol
Description
Completed
Successfully/ On
Track
Activity has started on schedule, and is on track to be completed by the predicted end
date, to budget and will deliver the expected outputs and outcomes/ impacts or already
has.
Not Started
This is for activities that are not programmed to start yet.
Postponed, Delayed
or On Hold
This is for activities that should have started by now but have not or activities that have
started but have had to pause or are taking longer than expected.
Some Problems
Lead officers should have described the problems and the action being taken to deal
with them.
Needs Attention/ Off
Track/ Failed
Activity is off track (either by starting after the predicted start date or progress slower
than expected), and it is anticipated that it will not be completed by the predicted end
date. Attention is needed from the lead officer and others to get this activity back on
track.
Failed - Activity not delivered and there is no way that it can be.
Jobs and the Local Economy
A - Increase the number of new businesses and support the growth and expansion of
existing businesses
Activity
Status
Progress/ Action Note
AAP 15/16 - J A 01 - We will
formulate and deliver a Growth
Plan for North Norfolk, linked to
the New Anglia Strategic
Economic Plan and Norfolk
Growth Prospectus, and identify
and promote future projects
which could receive grant
funding support through these
programmes
On Track
The Business Growth & Investment
Opportunities study was completed in
December and that will inform the
development of key documents
including the Local Plan, Property
Investment Strategy and a new
Investment Prospectus. Key projects
have been successful in achieving
grant funding from a variety of sources
and two new Enterprise Zones have
been confirmed.
AAP 15/16 - J A 02 - We will
work with partners to deliver the
Enterprise North Norfolk
Business Start Up and Support
Scheme
Completed
Successfully
The support scheme operated
effectively and the contract ended in
December 2015. We continue to work
with New Anglia LEP to develop a
suitable programme that will provide
support to businesses in the area.
AAP 15/16 - J A 03 - Working in
partnership we will develop an
On Track
BE Group were appointed as third
party consultants to develop the
Managing Performance Quarter 3 2015-16 v 0 4
49
Page 24 of 42
Activity
Status
Progress/ Action Note
Investment Strategy to increase
investment opportunities in the
district through seeking to
remove constraints from
allocated employment sites and
promote their potential to
accommodate new job-creating
development
Council’s Business Growth and
Investment Opportunities Strategy.
This was completed in November
2015. The next step is to develop the
Business Growth Strategy detailing the
opportunities for growth and expansion
alongside an Investment Prospectus.
This is due for completion by Spring
2016.
AAP 15/16 - J A 04 - We will
promote the Egmere Business
Zone to offshore wind energy
businesses and their suppliers
and partners
On Track
Enterprise Zone status was awarded
to the site in November 2015 for 6
years from 1 April 2016 - detailed
discussions are being progressed re
future marketing with the New Anglia
LEP.
The report to Cabinet 5 January 2016
was endorsed. The proposal is for
Council to take forward a scheme to
provide road and utility services into
1.65 hectares of land so as to provide
plots for future business development.
AAP 15/16 - J A 05 - We will
work with Norfolk County
Council to promote new jobcreating development at the
Scottow Enterprise Park
(formerly RAF Coltishall) site
On Track
Enterprise Zone status was awarded
to the site in November 2015 for 6
years from 1 April 2016. The Council
is discussing with the County Council
future promotion of business
investment opportunities at this site.
AAP 15/16 - J A 06 - We will
develop our corporate position
and consult with a wide range of
stakeholders in respect of
emerging renewable energy
policy and technologies through
preparation of an Energy
Strategy
Completed
Successfully
A presentation was delivered to a
Member workshop in 2014 with this
learning/information being carried
forward for incorporation within the
new North Norfolk Local Plan.
AAP 15/16 - J A 07 - We will
ensure regular engagement
with business through
established Forums such as the
Norfolk Chamber of Commerce,
the Federation of Small
Businesses and local Chambers
of Trade to better understand
business need and where public
sector intervention and/or
support is required.
On Track
Our relationship with the local
business community is evolving in
accordance with the Business
Engagement Strategy. This will
continue to develop and methods of
reporting business engagement and
support activity will be implemented.
Managing Performance Quarter 3 2015-16 v 0 4
50
Page 25 of 42
B - Improve the job prospects of our residents by developing a skilled and adaptable
workforce that is matched to business growth and development
Activity
Status
Progress/ Action Note
AAP 15/16 - J B 01 - Through the
Council's Learning for Everyone
(L4E) Team we will provide
information, advice and guidance to
local people wishing to enter
employment or improve their levels of
skills and raise aspiration
On
Track
The skills team, Learning for Everyone,
has just been reaccredited with the
nationally recognised matrix standard.
This is the quality standard for offering
careers advice or information, advice
and guidance on skills and work
opportunities.
The report quoted clients - 'if it wasn't
for the service, I would not be in
employment'. The report concluded: ' It
has demonstrated a high quality,
responsive service and how it meets
the needs of clients throughout their
interaction with the organisation.'
AAP 15/16 - J B 02 - We will offer
bespoke programmes of advice and
support to people faced with
redundancy from local companies as
and when such events occur
On
Track
This year we have assisted 69
individuals affected by redundancy.
Currently we have tracked 36 who we
have helped into new employment.
AAP 15/16 - J B 03 - We will put in
place a sustainable programme of
delivery for the Learning for Everyone
Team recognising the changing
policy and delivery framework of
advice and guidance services,
opportunities to work differently with
existing partners and develop
bespoke programmes of skills
training on behalf of local employers
On
Track
The team has been delivering
employment support initiatives with
external partners. We are in the
process of aligning the provision of
skills support to other programmes and
will utilise the outcomes of the skills
analysis to orientate the skills support
towards the local business needs.
AAP 15/16 - J B 04 - We will promote
work experience and apprenticeship
initiatives as part of our role as an
intermediary member of the
Apprenticeships Norfolk Network
On
Track
Work has begun to assist local schools
with work experience by promoting the
opportunity with local businesses.
AAP 15/16 - J B 05 - We will
undertake an audit of employment
opportunities and skills needs
amongst local businesses and share
the findings with our partners and key
strategic bodies
On
Track
We have completed a skills analysis of
the local labour market which has
yielded some valuable lessons in how
the Council should orientate its
resources and work with partner
organisations such as NCC, NALEP
and the newly formed Careers and
Enterprise Company to refine support
for skills provision in North Norfolk.
Managing Performance Quarter 3 2015-16 v 0 4
51
Page 26 of 42
C - Improve access to funding for businesses
Activity
Status
Progress/ Action Note
AAP 15/16 - J C 01 - We will
administer, monitor and review a
North Norfolk Small Business
Grant programme and review
effectiveness after 12 months
operation
On
Track
The BESt grant is now fully committed. A
recent interim report noted the
effectiveness of the grant with a more
formal evaluation due once all funds are
committed.
AAP 15/16 - J C 02 - We will seek
to influence Local Enterprise
Partnership programme delivery
in North Norfolk, particularly in
respect of monitoring the take-up
of grant funding programmes by
North Norfolk businesses
On
Track
The Economic Growth team has
contributed to the development of the
emerging NALEP Growth Programme and
works in close liaison with the Local
Enterprise Partnership in relation to the
operation of the Growth Hub. More work is
underway to ensure that business support
remains proactive and effective.
D - Reduce burdens to business by removing unnecessary red tape and bureaucracy
at the local level
Activity
Status
AAP 15/16 - J D 01 Working with partners we will
achieve more than 90%
coverage of the district with
superfast broadband speeds
(minimum 24 megabits per
second)
On
Track
AAP 15/16 - J D 02 - We will
ensure advice and guidance
is readily available to help
business comply with the law
and our approach to
enforcement will consider the
needs of local business
On
Track
Progress/ Action Note
Part 1 of the Superfast Extension Programme
(SEP) was funded by LEP, NCC and
Government. Rollout commenced early and 21
cabinets were enabled by the end of 2015,
three months ahead of schedule.
SEP Part 2 will be based on District Council and
Government funding, Norfolk five most rural
District Councils are all due to take their
investment decisions by the end of February,
following which an extension to the rollout will
be agreed.
Through our interactions with businesses,
advice and guidance is provided on regulatory
compliance and achieving best practice.
In the quarter, 224 inspections of food premises
were completed to ensure that standards of
hygiene are maintained. The level of compliant
food premises remains high. Where businesses
do not meet the standard required officers
provide advice and guidance to secure
compliance with enforcement only considered
as a last resort. A project to provide food
hygiene and health & safety advice to, and
inspect all, Bed & Breakfast establishments
across the district was started. This will ensure
that these businesses, which are of vital
Managing Performance Quarter 3 2015-16 v 0 4
52
Page 27 of 42
Activity
Status
Progress/ Action Note
importance to the local economy, have the
opportunity to demonstrate their high standards
via the publicly searchable "Food Hygiene
Rating Scheme" and the business owners know
that they have access to up to date advice from
the Commercial, and other, Teams at the
Council. 76 businesses approached the
Commercial Team directly for, and were given,
advice about Food safety and other issues.
Our responses to planning consultations ensure
that compliance on environmental matters is
provided through suitable conditions on
development. For existing businesses officers
work closely on often complex issues in order to
ensure the most effective solutions having
regard to the cost of compliance.
AAP 15/16 - J D 03 - We will
streamline the planning
process to facilitate new jobcreating investment in the
district through improved
engagement with businesses
and improved planning
performance
On
Track
Planning Business Process Reviews are now
moving to the implementation stage.
E - Promote a positive image of North Norfolk as a premier visitor destination
Activity
Status
AAP 15/16 - J E 01 - We will work with
the North Norfolk Destination
Management Organisation, which is
currently funded by the District Council,
to ensure the positive promotion of
North Norfolk as a leading visitor
destination.
On
Track
Managing Performance Quarter 3 2015-16 v 0 4
53
Progress/ Action Note
The Destination Management
Organisation (DMO) continues to
develop and support a wide network
of tourism related organisations and
has developed effective marketing
campaigns for the area.
Page 28 of 42
Housing and Infrastructure
A - Increase the number of new homes built within the district and reduce the
number of empty properties
Activity
Status
Progress/ Action Note
AAP 15/16 - H A 01 - We will
bring forward detailed proposals
on allocated sites by pro-active
engagement with developers
On Track
Works are well advanced on a
signifiant number of allocated sites
across the District and others are
close to receiving permission (subject
to completion of S106 Obligations).
Discussions are commencing on the
largest allocated site in Fakenham
with a view to application being
submitted Spring 2016. Discussions
and negotiations with landowners
continue on other allocated sites as
well as other windfall sites.
AAP 15/16 - H A 02 - We will
seek to increase the number of
homes built of all tenures by
reviewing the Housing Incentive
Scheme and exploring other
innovative means of improving
delivery
Completed
Successfully
The number of new homes built in all
tenures was the second highest
recorded since 2001 (503 dwellings to
March 2015). The Housing Incentive
Scheme has been extended until
December 2016 and further housing
delivery initiatives are being
considered as part of the Councils
Housing and Planning strategies.
AAP 15/16 - H A 03 - We will
develop a Property Investment
Strategy to supplement the
delivery of additional housing
On Track
Cabinet will consider a report
recommending establishment of
wholly owned property company in
February.
AAP 15/16 - H A 04 - We will
support the development of
neighbourhood plans by aligning
the wishes of towns and
parishes with the local plan
review
On Track
Two Neighbourhood Plans are being
prepared for Holt and Corpusty and
Saxthorpe. Interest has been
expressed for a number of other
Parishes/Towns to investigate the
benefits of neighbourhood plans.
AAP 15/16 - H A 05 - We will
support owners to bring empty
homes back into use and
provide opportunities to do so
through the application of our
statutory powers
Some
Problems
Cabinet approval of CPO action has
prompted owners of some long-term
empty properties to take action likely
to return the properties to use but
although Empty Homes processes
are slowing the rate of increase in
long-term empty properties there is
still reduced capacity in housing
inspections which means some
properties are still not being dealt with
Managing Performance Quarter 3 2015-16 v 0 4
54
Page 29 of 42
Activity
Status
Progress/ Action Note
as quickly as normally expected.
AAP 15/16 - H A 06 - We will
gather the evidence in support
of the review of the local plan
including publishing the joint
strategic housing market
assessment, including
identifying specialist housing
need in response to the
prospective age profile of the
district.
On Track
A joint Strategic Housing Market
Assessment (SHMA) has been
published and a Business Growth and
Investment Opportunities Study is
underway.
B - Increase the number of affordable homes with a range of tenure types
Activity
Status
Progress/ Action Note
AAP 15/16 - H B 01 - We will
seek to increase the number of
affordable homes provided
across the district through a
range of delivery mechanisms
and including the local
investment strategy loan to
registered providers
On
Track
It is expected that 75 affordable dwellings will
be completed across the district during
2015/16 of which seven will be sold as
shared equity or shared ownership. The first
planning applications for schemes funded
through the Local Investment Strategy loan
to Registered Providers are due to be
determined in February 2016.
C - Secure investment in new infrastructure
Activity
Status
Progress/ Action
Note
AAP 15/16 - H C 01 - We will consult and then obtain
agreement on a process for securing contributions
towards infrastructure from development proposals in
the district known as section 106 agreements
Not
Started
Work on this project
is being delayed,
due to other
priorities.
Managing Performance Quarter 3 2015-16 v 0 4
55
Page 30 of 42
Coast, Countryside and Built Heritage
A - Maintain the integrity of special landscape designations and balance the
development of housing and economic activity with the need to preserve the
character and quality of the district's countryside and built heritage
Activity
Status
Progress/ Action Note
AAP 15/16 - C A 01 - We
will assess and implement
requirements for new
Green Flag Awards and
work to retain the existing
awards
Completed
Successfully
Green Flag awards retained at all three
sites including Holt Country Park, Pretty
Corner Woods in Sheringham and Sadler’s
Wood in North Walsham.
AAP 15/16 - C A 02 - We
will work with other
agencies to retain four of
the district's Blue Flags for
the quality of the beaches
and to achieve Quality
Coast Awards elsewhere
Completed
Successfully
Blue Flags successfully retained at all four
beaches including Sheringham, Cromer,
Sea Palling and Mundesley with Quality
Coast Awards for East Runton and Wells.
Managing Performance Quarter 3 2015-16 v 0 4
56
Page 31 of 42
Activity
AAP 15/16 - C A 03 - We
will manage the waste and
recycling contracts to
ensure an excellent level
of service and promote
high levels of recycling
Status
Progress/ Action Note
On Track
The number of missed bin collections,
including assisted collections, remain
above the contract targets, however, the
position has improved in the latter part of
2015. During the year there have been a
number of occasions when Kier have failed
to complete collections on the scheduled
day, for which, as previously, they have
cited the unreliability of agency staff to
cover leave/sickness and a number of
severe vehicle breakdowns as significant
causal factors.
To overcome these issues, contract
monitoring and management has been
strict. In total, 158 contract defaults have
been issued in the period April - November
2015, almost double the number issued in
the same period in 2014. However, this
robust approach is having the desired and
intended impact. Kier have responded well
and alternative systems and procedures
are now in place in terms of covering
absent staff or vehicles with defects and
seem to be working well, with little in the
way of disruption to scheduled collections
in the latter part of 2015. Kier also report
they have recruited into positions that were
being filled too often by agency staff.
The cleanliness of North Norfolk
throughout the tourist season was
generally found to be very good and was
another area of significant focus for
proactive monitoring by the Environmental
Services team to ensure corporate
priorities were met and that any problems
that were identified were dealt with swiftly.
The lack of consistent senior management
at Kier remains the root cause of many of
the issues. The management of the
contract at local level has again changed
during the latter part of 2015, with the role
of Operations Manager at Kier, vacant as
at the end of December.
Managing Performance Quarter 3 2015-16 v 0 4
57
Page 32 of 42
Activity
Status
AAP 15/16 - C A 04 - We
will ensure that all reported
fly-tipping and pollution
complaints will be
responded to within two
working days
Progress/ Action Note
On Track
Throughout the quarter the response to
complaints has been consistent and
maintained the cumulative response time
of 82%
We received 168 requests for service over
the quarter of which 127 (76%) were
responded to within 2 working days.
This percentage comprises the following
data:
77% of Nuisance cases were responded to
within two days.
100% of Drainage cases were responded
to within two days.
73% of fly tipping cases were responded to
within two days.
There has been a significant improvement
in fly tipping cases with the percentage
over last Qtr increasing by 9%. However
there was a reduction of 13% on the last
Qtr with the Nuisance cases. On further
investigation into the causes of this it is
associated with errors in data recording
after new processes have been setup and
a specific period of holiday cover during
October. These matters have now been
addressed.
B - Recognise the District's built environment as a heritage asset when promoting
North Norfolk
Activity
Status
Progress/ Action Note
AAP 15/16 - C B 01 - Through
the work of the Council's
Enforcement Board we will take
appropriate action where listed
buildings and buildings within
conservation areas are
considered to be at risk
On
Track
The complex nature of the cases presented
to the Enforcement Board, means these are
resource heavy. Changes to working
practices and procedures on the back of
BPR will have some positive benefits but
there remains a challenge when our overall
workload (no. of planning applications) is
increasing.
C - Design a more cohesive framework for coastline management
Activity
Status
Progress/ Action Note
Managing Performance Quarter 3 2015-16 v 0 4
58
Page 33 of 42
Activity
Status
Progress/ Action Note
AAP 15/16 - C C 01 - We will
investigate options to improve
coastal management with
neighbouring coastal councils
On
Track
Cabinet approved the establishment of the
coastal partnership in November 2015, as
did the other partner authorities. The
necessary agreements, logistical matters
and procedures are now being developed
and it is expected that the partnership will
formally establish in April 2016. the wider
partnership of organisations beyond the local
authorities is beginning to evolve under the
secretariat of the Marine Knowledge
Exchange Network (MKEN).
AAP 15/16 - C C 02 - We will
work with coastal communities
and other agencies to identify
coastal management schemes
and sources of funding working
with the Environment Agency to
explore the best possible
solutions for all our communities
On
Track
Continual work in assessing opportunities for
funding. Continued engagement with local
communities through Coastal Forum and
one to one contact where required. Ongoing improvements and innovation in
coastal awareness raising. Endeavours to
source sufficient funds to support the
Bacton-Walcott project are continuing and
the partnership approach to developing that
project is proving valuable.
D - Continue to defend coastal settlements against erosion wherever practicable
Activity
Status
Progress/ Action Note
AAP 15/16 - C D 01 - We
will manage the final
delivery of the £8.6m
Cromer Defence Scheme
On Track
Works are progressing with co-ordination with
other activities required to be completed prior
to resurfacing of the promenade.
AAP 15/16 - C D 02 - We
will consider plans to
redevelop sea front
property assets in Cromer
for completion following
the Cromer Defence
scheme
Some
Problems
The Cromer sea defence scheme was due to
be completed by March 2015 but due to
delays encountered following the storm surge
this has not been possible. The contractors
Volker Stevin therefore returned to complete
the works between September 2015 and
March 2016. The 'Master Plan' for the West
Prom redevelopment was agreed and signed
off by Cabinet on 5 January 2016 and works to
deliver the initial phase 1 works will
commence from April 2016. Additional funding
to support the delivery of Phase 2 was also
recommended and now needs to be signed off
by Full Council later this month.
AAP 15/16 - C D 03 - We
will work with other
On Track
Stage 1 - Investigation of options has been
completed. Stage 2 - Screening Scoping and
Managing Performance Quarter 3 2015-16 v 0 4
59
Page 34 of 42
Activity
Status
agencies to assess and
respond to the issues
arising from the proposed
Bacton Gas Terminal
coastal defence scheme
AAP 15/16 - C D 04 - We
will manage the delivery of
the £800k Sheringham
West Sea Wall
Improvement Scheme
Progress/ Action Note
Modelling are beginning. There remains a
significant funding gap. The partnership with
operators and the Environment Agency
remains strong.
On Track
Progress before Christmas was ahead of
schedule; works continue and should be
completed in early spring. There may be an
opportunity to enhance the scheme with
additional works and make opportune use of
funds available.
Managing Performance Quarter 3 2015-16 v 0 4
60
Page 35 of 42
Localism
A - Recognise the important role that Town and Parish Councils have as the
democratic embodiment of their communities
Activity
Status
AAP 15/16 - L A 01 - We will respond
positively to a Community Right to
Challenge to take over the running of
services within their area/communities if
they can be run more efficiently (to our
Service Level Agreement)
Progress/ Action Note
On Track
Building works underway
by North Norfolk Railway
to provide new
Sheringham Tourist
Information Centre (TIC)
and Toilets
Temporary toilets are in
place and the transfer of
services are anticipated 1
April 2016.
AAP 15/16 - L A 02 - We will maintain a
regular dialogue and work with Town and
Parish Councils
AAP 15/16 - L A 03 - We will hold
workshops for training and development, in
particular to encourage wide community
participation in the planning and democratic
processes
On Track
Workshops were held in
November 2015, further
workshops are being
planned in relation to the
Local Plan Review.
Completed
Successfully
Workshops were held in
November 2015.
B - Encourage communities to develop their own vision for their future and help
them to deliver it
Activity
AAP 15/16 - L B 01 - We will
support and encourage
Community Engagement
Schemes in those parishes
where there is a local demand
Status
Progress/ Action Note
On Track
All opportunities to encourage new
groups are being taken and Stalham
Town council are now working on a
town plan.
We continue to communicate with
the Dog Warden volunteers via a
newsletter and have reports back
from them on specific hotspot
locations in their parish. Have also
attended local parish meetings to
promote the scheme in areas where
there are no wardens.
Also engaging with local landowners
and community groups where
hotspots are identified to ensure all
the community are involved in
Managing Performance Quarter 3 2015-16 v 0 4
61
Page 36 of 42
Activity
Status
Progress/ Action Note
helping to solve the problem.
AAP 15/16 - L B 02 - We will
implement a Community
Resilience Planning programme
to increase uptake amongst local
communities so that
communities are able to help
and support each other in the
face of a common crisis
Completed
Successfully
On going engagement with new and
existing teams. Flood warden
exercise undertaken on 10th October
2015.
C - Encourage the growth of The Big Society within communities
Activity
Status
Progress/ Action Note
AAP 15/16 - L C 01 - We
will continue to support
local communities to obtain
funding and other
assistance to deliver their
local priorities
On
Track
The Big Society Fund has approved 22 grants to
support community initiatives since April. The
LEADER funding programme is now live and
discussions with potential applicants for the
Enabling Fund are now taking place, but
applications to the fund can only be made once
an initial LEADER application has been made.
Managing Performance Quarter 3 2015-16 v 0 4
62
Page 37 of 42
Delivering the Vision
A - Deliver strong governance arrangements
Activity
Status
Progress/ Action Note
AAP 15/16 - V A 01 - The
Audit Committee will oversee
a review programme to
ensure that audit coverage
reflects the risks facing the
Council
On Track
AAP 15/16 - V A 02 - We will
set and achieve 100%
compliance with deadlines
agreed with Internal Audit for
recommendations rated as
Important and Urgent
Some
Problems
Some delay on important recommendations,
but follow up work continuing.
AAP 15/16 - V A 03 - We will
maintain a robust
performance management
framework for managing the
Business Transformation
Programme
On Track
Project Manager has been recruited and
has undertaken a review of the programme
and project management processes and
tools of the Digital Transformation. A
standardised “project On A page” format
has been adopted and is submitted to
Programme Board meetings. A six monthly
programme update is also submitted to
Cabinet to provide an overview of progress.
B - Ensure that effective communications exist
Activity
Status
Progress/ Action Note
AAP 15/16 - V B 01 - As part
of the Business
Transformation Programme
we will work to develop our
approach to digital and social
media and work to improve
our services for residents and
other customers
On Track
A Communications Strategy has been
produced by the Communications
Manager and has been approved by the
Programme Board. This is being used
to inform the procurement of the
Council Contact Management system
which will include Social Media
facilities.
AAP 15/16 - V B 02 Following the Member
Induction Programme we will
provide a programme of
Member Development to allow
Members to be effective in
their roles
Completed
Successfully
Now that the Members Induction
Programme is complete, the Members
Development Group are focussing on
on-going learning and development to
build in Members' skills and Knowledge
to help them become more effective in
the roles. Sessions in the pipeline
include social media skills, speed
reading for ipads and advanced
Managing Performance Quarter 3 2015-16 v 0 4
63
Page 38 of 42
Activity
Status
Progress/ Action Note
casework. E-learning has also been
offered to those Members that are
interested.
AAP 15/16 - V B 03 - We will
implement a unified
communications approach for
all of our digital media
documents and will procure a
customer information system
On Track
This activity is designed to deliver the
following. I therefore recommend the
name of the activity is changed to
"Implement unified communications,
document management system and
customer information system"
We will procure and implement:
1) Unified Communications to provide
modern and flexible: telephony,
messaging and video conferencing
facilities throughout the council.
2) A document Management System to
provide central storage and control of
all our digital media and documents
3) A Customer Information System to
centrally record and manage contact
information for all users of Council
services.
Progress:
1: delivered in November 2015
2: Implementation of pilot system in
progress now. Full implementation by
December 2016
3: Soft market testing and requirements
gathering in progress and procurement
to follow. Implementation to be
complete by July 2016.
C - Deliver strong and proportionate organisational management in the Council
Activity
Status
AAP 15/16 - V C 01 - We will undertake
reviews of all major business processes in
order to improve customer service and deliver
financial savings detailed in the financial
strategy
On
Track
Progress/ Action Note
Planning Business Process
Reviews are now moving to
the implementation stage.
D - Prioritise Services and Functions in line with the wishes of our communities and
to deliver our corporate objectives
Activity
Status
Progress/ Action Note
Managing Performance Quarter 3 2015-16 v 0 4
64
Page 39 of 42
Activity
AAP 15/16 - V D 01 - We will
review the objectives in the
Corporate Plan to ensure it
takes account of emerging
issues and opportunities
Status
Progress/ Action Note
Completed
Successfully
A new Corporate Plan was approved
by Cabinet and Full Council in
September 2015. An annual action
plan is in the process of being
developed, with a view to be
implemented in April 2016.
E - Deliver year-on-year improvements in efficiency
Activity
Status
Progress/ Action Note
AAP 15/16 - V E 01 - We
will review the delivery
model for the Revenues
and Benefits service
On Hold
The proposal for the future shared
management arrangement for the Revs and
Bens service with the BCKLWN is not being
progressed because of the technical
difficulties experienced with running the Civic
system across two sites.
AAP 15/16 - V E 02 - We
will continue to drive
improvements and
efficiencies to protect the
District Council's part of the
Council Tax Charge
On Track
Budget report for 2016/17 to be presented to
members for approval in February 2016.
AAP 15/16 - V E 03 - We
will identify ways to reward
and recognise staff in the
delivery of high quality
services
Some
Problems
The East of England Local Government
Association (EELGA) are undertaking a
market review on the Council's employee payscales and the staff focus group also looked
at reward schemes for staff. Further work
needs to take place on this activity. Progress
will be reported to the Corporate Leadership
Team.
AAP 15/16 - V E 04 - We
will continue to implement
the Business
Transformation
Programme to drive
efficiencies into all of our
services
On Track
The roll-out of the Unified Communications
solution is complete this year.
The business process review (BPR) of the
Planning Service is progressing well. The
implementation plan is in progress which will
deliver the revised ways of working. Staff
consultation is in progress.
The Invitation To Tender (ITT) for the
procurement of a Council Contact Centre is
being developed. Soft Market testing has
taken place to assist in refining the business
requirements. The Cabinet paper requesting
release of the funding to deliver this project
has been submitted
Managing Performance Quarter 3 2015-16 v 0 4
65
Page 40 of 42
Activity
Status
Progress/ Action Note
The pilot implementation of SharePoint
document management facilities is in
deployment.
A new Website Content Management System
has been commissioned is being deployed.
Work on the other enabling technology
programme continues in accordance with
timeline and budget plans.
Managing Performance Quarter 3 2015-16 v 0 4
66
Page 41 of 42
Version Control
Version
0.1
Originator
Helen Thomas
0.2
0.3
0.4
1.0
Helen Thomas
Helen Thomas
Helen Thomas
Helen Thomas/
Emma Denny
Description including reason for changes
First draft for Heads of Service to review and
complete
Second draft
Third draft
Fourth draft – overviews updated
Final
Managing Performance Quarter 3 2015-16 v 0 4
67
Date
13/01/2016
19/01/2015
19/01/2015
Page 42 of 42
Cabinet 8 February 2016
Overview and Scrutiny 17 February 2016
Agenda Item No___12_________
ANNUAL ACTION PLAN 2016-17
Summary:
Conclusions:
This report presents the Annual Action Plan for 2016-17
for approval
.
A rigorous development process has resulted in a
balanced and effective Annual Action Plan for 2016 -17
and associated performance indicators to deliver the
priorities and objectives as laid out in the Corporate
Plan 2015-2019.
Recommendations:
Cabinet is recommended 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.
Cabinet Member(s)
Ward(s) affected
All
All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.Thomas@north-norfolk.gov.uk
Annual Action Plan 2016/17
1.1
This report presents the first annual action plan designed to deliver the
Corporate Plan 2015-2019. It builds on and develops further the work of the
previous Annual Action Plans and Corporate Plan and outlines activities to
achieve the revised and new objectives in the new Corporate Plan. The plan
is intended to be operational from 1 April 2016 to 31 March 2017.
1.2
Over the winter Staff, Managers, Heads of Service, members of Corporate
Leadership Team and Portfolio Holders have been developing this Action
Plan. In addition, meetings continue to take place with town and parish
councils which have also informed this process.
1.3
Progress in delivering the activities in the Annual Action Plan 2015/16 and
achievement against targets will be reported in our Annual Report for 2015/16
which will be produced later this year and presented to Cabinet and Overview
and Scrutiny Committee.
1.4
Some activities in the Annual Action Plan 2015/16 are anticipated to still be in
the process of being delivered during 2016/17. These activities have been
rolled forward into the Annual Action Plan 2016/17 where they continue to
deliver the revised and new objectives in the Corporate Plan. Some activities
may have been slightly amended to take account of changing circumstances
or new opportunities that have arisen.
68
Cabinet 8 February 2016
Overview and Scrutiny 17 February 2016
1.5
The Annual Action Plan 2015-16 attached as Appendix 1 is the result of that
review.
1.6
The performance indicators, including those for which targets have been set,
to assist in managing the achievement of the objectives in the Corporate Plan
2015-19 have also been reviewed and recommendations for targets for
2016/17 or changes to the indicators are presented in Appendix 2.
2.
Managing Delivery of the Annual Action Plan 2016/17
2.1
The Annual Action Plan will be delivered by applying the Performance
Management Framework. Implementation of the framework is under
continuous review and improvement as required by Cabinet and Management
Team.
4.
Conclusion
A rigorous development process has resulted in a balanced and effective
Annual Action Plan and associated performance targets to deliver the
objectives laid out in the Corporate Plan 2015-2019
5.
Implications and Risks
Agreeing a clear Annual Action Plan is a key part of the process to ensure the
Council achieves the objectives in the Corporate Plan 2015-19 and reduces
the risk of failure.
6.
Financial Implications and Risks
There are no direct financial implications associated with this report.
However, there are performance measures and targets, and activities
included in the Annual Action Plan that are specifically related to finance. In
addition, corrective action needed during delivery of the plan or an activity
within it may have financial implications that would need to be made clear at
the time any action is agreed.
7.
Sustainability
There are no direct implications for sustainability in this report. However, the
Annual Action Plan it presents seeks to increase the sustainability of the
social, economic and environmental situation in North Norfolk.
8.
Equality and Diversity
There are no direct implications for equality and diversity in this report. Many
activities in the Annual Action Plan will have equality and diversity benefits or
implications. These are identified and will be reported on during the delivery
of the action plan. If any activity in the Annual Action Plan requires review of
a service being delivered or a change to a policy of the Council an Equality
Impact Assessment on any proposed changes will be carried out when
necessary.
9.
Section 17 Crime and Disorder considerations
There are no implications for Crime and Disorder in this report.
69
Annual Action Plan
2016/17
DRAFT
Version 0.15
Any queries please contact Policy and Performance Management Officer, Helen Thomas
Tel. 01263 516214
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 1 of 19
70
Contents
Contents .................................................................................... 2
Introduction............................................................................... 3
Jobs and the Local Economy .................................................. 4
Housing and Infrastructure ...................................................... 7
Coast and Countryside .......................................................... 10
Health and Well-Being ............................................................ 13
Delivering Service Excellence ............................................... 16
Version Control....................................................................... 19
denotes that this is an equalities objective.
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 2 of 19
71
Introduction
North Norfolk District Council’s Corporate Plan 2015-19, sets out the Council’s priorities
until 2019. It guides business decisions to ensure that the council is well-run and able to
meet its objectives.
The Corporate Plan is a strategic document, listing the priorities for council actions for the
period 2015-2019, giving our shared vision and our values and listing the priority areas on
which the council intends to concentrate its efforts:





Jobs and the Local Economy
Housing and Infrastructure
Coast and Countryside
Health and Well-Being
Delivering Service Excellence
Success in meeting these aims will involve making some difficult choices. We must ensure
that our spending is focussed on the things that really matter to local people and
businesses. The Corporate Plan 2015-19 is available for online viewing.
This document is the first Annual Action Plan, giving detail of how the priorities in the
Corporate Plan will be realised over the forthcoming 12 months from 1 April 2016 to 31
March 2017.
Regular dialogue continues to take place with Parish and Town Councils and other local
bodies so as to ensure that local communities are involved and engaged with District
Council actions and some of the results of that dialogue are included in this plan.
February 2016
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 3 of 19
72
Jobs and the Local Economy
A - Work to maintain existing jobs and help businesses expand by
Corporate Plan Objective
Action 16/17
Service
Lead Officer
Providing business grants
and mentoring support
Develop and implement a
business engagement
programme, working in close
collaboration with New Anglia
LEP and other partners
Economic
Growth
Rob Young
Ensuring our procurement
practise supports small and
medium sized businesses
operating in the district
Review our current
procurement guidance and
support local procurement
Accountancy
Karen Sly
Supporting our market and
coastal towns recognising
their importance as economic
hubs and local centres
Develop a forward programme
of funding opportunities and
regularly promote to the
business community. To
produce an NNDC list of
schemes with potential match
funding
Economic
Growth
Rob Young
Working with partners to
improve access to faster
Broadband for all our
communities including
investing directly £1m over
the next 2 years
Monitor future roll out.
Investment and coverage will
be reviewed and reported on a
six monthly basis
CLT
Sheila
Oxtoby
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 4 of 19
73
B - Increase the number and support for business start-ups by
Corporate Plan Objective
Action 16/17
Service
Lead Officer
Providing a business start-up
package of support and
funding
Review funding and implement
a new scheme from September
2016
Economic
Growth
Michelle
Burdett
C - Improve the job opportunities for young people within the District by
Corporate Plan Objective
Encouraging employers
offer apprenticeships
to
Action 16/17
Service
Lead Officer
Ensure that information on
apprenticeships is included
within all business engagement
activity
Economic
Growth
Michelle
Burdett
Explore opportunities for further
apprenticeships within the
Council as an employer
Human
Resources
Alex Triplow
Working with partners to bring
businesses and schools
together to ensure skills
match needs and jobs
Supporting provision of a
North Norfolk centre for
science, technology,
engineering and maths (STEM)
Consider the feasibility study to
identify the most effective model
of delivery. Develop an
appropriate outline business
case, with identified potential
funding sources
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 5 of 19
74
D - Support major business opportunities and take-up of allocated employment land
across the district by
Corporate Plan Objective
Action 16/17
Service
Lead Officer
Working with the New Anglia
Local Enterprise Partnership
(NALEP) to access funding
streams
Produce a quarterly report of
projects to be included in the
LEP Project Pipeline
Economic
Growth
Rob Young
Developing an Inward
Investment Strategy for
business growth to North
Norfolk specifically to promote
the designated Enterprise
Zones and improve preapplication planning advice
Design a coherent approach to
marketing the economic growth
opportunities that the District
offers in particular the Egmere
and Scottow enterprise zones
Economic
Growth
Rob Young
E - Capitalise on our tourism offer both inland and along our historic coast by
Corporate Plan Objective
Action 16/17
Investing in our assets to
support the tourism economy
and promote the ‘Deep
History’ concept
Explore the opportunities of the
World Heritage Site Status and
ensure any projects such as the
Cromer West Prom project and
will capitalise on the Deep
History concept and findings
Encouraging a private sector
lead to tourism promotion with
support in developing a strong
brand
Continue to support the
Destination Management
Organisation (DMO) and
explore the benefits of a BID
approach Management
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 6 of 19
75
Service
Lead Officer
Housing and Infrastructure
A - Increase the number of new homes built in the District by
Corporate Plan Objective
Action 16/17
Encouraging the early
completion of dwellings
through incentivisation
measures
Review and update the Housing
Incentive Scheme in light of any
changes in market
circumstances and Government
guidance by December 2016
Support the development of
neighbourhood plans by aligning
the wishes of towns and
parishes with the local plan
review
Identify new housing sites
through the local plan review
process
Commissioning a specialist
housing needs survey in the
context of market and social
demand
Undertake
a
survey
and
analysis of specialist housing
needs and feed the outcomes of
this
into
the
‘Property
Investment Strategy’ and local
plan review
Providing grants and loans
which support the delivery of
local housing initiatives
Implement a Local Investment
Strategy and devise suitable
opportunities and/or
mechanisms to facilitate
housing development
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 7 of 19
76
Service
Quarterly
Update
B - Address housing need through the provision of more affordable housing by
Corporate Plan Objective
Action 16/17
Encouraging the building of
affordable homes in
sustainable locations
Continue to negotiate sufficient
affordable
housing
through
S106 agreements from planning
applications
Addressing
the
housing
waiting list by enabling more
exception
schemes
that
provide local housing for local
people
Continue the ‘housing enabling’
work and engagement with local
communities on a pipeline of
‘rural exceptions’ schemes
Service
Quarterly
Update
C - Ensure new housing contributes to the prosperity of the area by
Corporate Plan Objective
Action 16/17
Undertaking a review of all
planning policies and land
allocations to inform the new
Local Plan up to 2036
Commission evidence required
to form the basis of Local Plan
review and update through the
working party
Service
Quarterly
Update
Service
Quarterly
Update
D - Reduce the number of empty properties by
Corporate Plan Objective
Action 16/17
Working pro-actively across
the Council using all available
powers to bring empty
properties back into use
Provide a quarterly update on
an on-going basis, where the
Council has instigated
enforcement action
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 8 of 19
77
E - Improve the infrastructure needs of the District by
Corporate Plan Objective
Action 16/17
Exploring with partners the
extent to which there is a
capacity to modify and expand
train services along the Bittern
Line from Norwich to
Sheringham
Work with relevant partners to
take forward recommendations
within the recently completed
Bittern Line Development report
Exploring with partners the
scope to improve road
network capacity alongside
major development proposals
Consult and then obtain
agreement on a process for
securing contributions towards
infrastructure from development
proposals in the district known
as section 106 agreements
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 9 of 19
78
Service
Quarterly
Update
Coast and Countryside
A - Work jointly with neighbouring authorities and key partners to attract funding to
manage the coast for future generations by
Corporate Plan Objective
Action 16/17
Supporting fishing and
agriculture in North Norfolk
through accessing funding
streams such as European
Grants
Develop and submit proposals
for projects under the European
Marine and Fisheries funding
and Leader programmes
Analyse criteria for funding
requirement from the emerging
£90m coastal community fund
Working with partners to
identify funding and deliver
schemes which will enable us
to manage our coastline
Continue to develop and
promote the Norfolk & Suffolk
Coastal Partnership
Continue to work with private
sector partners on a scheme for
Bacton and affected
communities
Implement the Cromer West
Prom plans to redevelop sea
front property assets in Cromer
following completion of the
major Cromer Defence scheme.
This will include development of
the ‘Deep History’ concept.
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 10 of 19
79
Service
Quarterly
Update
B - Protect the wonderful countryside and encourage sustainable access by
Corporate Plan Objective
Action 16/17
Caring for our areas of
outstanding natural beauty
and protected areas and
liaising with other
organisations
Undertake reviews of Holt
Country Park, Pretty Corner
Woods and North Lodge Park
to help ensure these assets are
sustainable for the future
Through careful management,
ensuring our natural
environment contributes to
the tourism offer and wider
economic well-being of the
area
Work with other agencies to
retain four of the district’s Blue
Flags for the quality of the
beaches and to achieve quality
coast awards elsewhere
Service
Quarterly
Update
Assess and implement
requirements for new Green
Flag Awards and work to retain
existing awards
C - Continue to improve recycling rates and reduce the amount of waste material
going to landfill by
Corporate Plan Objective
Action 16/17
Working with other Councils
on the Norfolk Waste
Partnership to consider ways
in which we can maximise
recycling thereby minimising
waste to landfill
Implement a behavioural
change campaign across
Norfolk to reduce waste and
contaminated recycling
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 11 of 19
80
Service
Quarterly
Update
D - Improve the environment both in our towns and in the countryside by
Corporate Plan Objective
Action 16/17
Addressing properties and
sites which create eyesores
and detract from our natural
and built environment
Through the work of the
Tacking dog fouling, fly
tipping and litter across our
district through Community
Engagement Schemes
Review our approach to
enforcement and bring a report
forward on agreeing direct
action to complement and give
community engagement
schemes more power
Council's Enforcement Board
take appropriate action where
listed buildings and buildings
within conservation areas are
considered to be at risk
Ensure that 80% of reported flytipping and pollution complaints
will be responded to within two
working days
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 12 of 19
81
Service
Quarterly
Update
Health and Well-Being
A - Support local residents and their communities by
Corporate Plan Objective
Action 16/17
Continuing to operate the Big
Society Fund to meet local
needs and aspirations
Promote and monitor the fund
throughout the year
Developing projects to
address fuel poverty and
energy efficiency
Continue to support schemes to
enable residents to access
lower priced energy through
bulk purchase agreement
Service
Quarterly
Update
Consider the Business Plan for
provision of solar panels on the
Council offices
Working with charities and
other voluntary organisations
Implement a new performance
framework for monitoring the
provision of advice and
guidance through the CAB
B - Address issues leading to ill health and improve the quality of life for all our
residents by
Corporate Plan Objective
Action 16/17
Encouraging more community
involvement and volunteering
Implement a Community
Resilience Planning programme
to increase uptake amongst
local communities so that
communities are able to help
and support each other in the
face of a common crisis
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 13 of 19
82
Service
Quarterly
Update
Corporate Plan Objective
Action 16/17
Provide support and advice to
people who are vulnerable
and/or struggling with issues
which
are
negatively
impacting on their lives
Continue to work with a wide
range of partners we will
develop and extend the Early
Help Hub model to provide early
intervention and preventative
support to vulnerable families
and older people
Service
Quarterly
Update
C - Encourage participation in a range of sports and activities by
Corporate Plan Objective
Action 16/17
Promoting North Norfolk as a
sporting centre of excellence,
to encourage our talented
young people to aim for and
reach the highest possible
level in their sport
Liaise with partners that can
support the project with a view
to commencing delivery from
January 2017
Working with partners to
invest in sport and recreation
facilities across the District
Implement the workstreams
contained in the leisure facilities
strategy;




Work with the
community to realise the
reopening of the
Fakenham academy
pool
Lead the feasibility for an
indoor tennis facility
Work with local clubs to
support a purpose built
gymnastic facility in
North Walsham
We will consider options
for the new leisure
contract and the future of
the Splash leisure facility
in Sheringham
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 14 of 19
83
Service
Quarterly
Update
Corporate Plan Objective
Action 16/17
Supporting iconic sporting
events
Develop a framework for which
events NNDC support,
recognising the sporting and
economic benefits realised for
the district.
Promoting health and fitness
for all ages, abilities and
ambition
Support communities to develop
and sustain sports clubs and
hubs
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 15 of 19
84
Service
Quarterly
Update
Delivering Service Excellence
A - Help you to get what you need from the Council easily by
Corporate Plan Objective
Action 16/17
Redesigning services around
the customer and using
technology as a driver for
efficiency
Implement the outcomes of the
Business Process Review within
Planning
Review other business
processes to identify future
customer service improvements
and financial savings
Promote and optimise the use of
social media and our website for
those communicating and doing
business with the Council
Ensuring all information from
the Council is accurate and
readily available, whether
people choose to visit in
person, online or telephone
Review all online content as part
of the web redesign
Use pro-active and promotional
campaigns linked to the
Council’s priorities
Collaborating and developing
local solutions leading to a
more joined up service for our
residents
Review our use of assets
through the One Public Estate
programme.
Monitor rollout of universal
credit in the District, working
closely with the DWP
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 16 of 19
85
Service
Quarterly
Update
B - Ensure the Council’s finances continue to be well managed and inform our
decision making by
Corporate Plan Objective
Action 16/17
Reducing overheads and
sharing services where
appropriate
Develop a Public Services Hub
at North Walsham and
Fakenham
Maximising the value from
services delivered through
contracts
Benchmark the following
contracts in preparation for
future procurement;


Service
Quarterly
Update
Leisure
Cromer Pier
Taking a more commercial
approach to the management
of our asset portfolio
Review the provision of public
conveniences and identify any
redevelopment opportunities
Investing in property as a
means by which we will
improve income streams
Establish a Property
Development Company and
prepare a business case
Publishing decisions in
accordance with the
governments transparency
agenda
Publish quarterly and monitor
any new requirements
C - Value and seek to develop the Council’s staff and Members by
Corporate Plan Objective
Action 16/17
Recognising and rewarding
good performance and
celebrating success
Prepare an options report on
performance related pay and
reward and recognition
schemes
Encouraging a culture of
learning and development
Develop an action plan to
improve on the areas of
weakness highlighted in the
Gold IIP assessment by
December 2016
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 17 of 19
86
Service
Quarterly
Update
Corporate Plan Objective
Action 16/17
Offering focused training to
our staff
Undertake a 100% appraisal
development meetings to
identify training and
opportunities for succession
planning
Offering Members the
opportunity to develop their
expertise
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 18 of 19
87
Service
Quarterly
Update
Version Control
Version
Originator
Description including reason for changes
13
Sheila Oxtoby
27/01/2016
14
Sheila Oxtoby
29/01/2016
Annual Action Plan 2016-17 v15 with Service and Lead Officer
Page 19 of 19
88
Date
Annual Action Plan 2016/17
Performance Indicators and Measures including Targets
Indicator
Target 2015/ 16
Target 2016/ 17
36
Under review
Health of North Norfolk Measure
NA
Number of North Norfolk Small Business
Grants awarded (monthly cumulative) J
017
NA
NA
Amount of North Norfolk Small Business
Grants funding awarded (£) (monthly
cumulative) J 018
NA
NA
Number of long term empty homes (6
months or more as at 1st working day of
each month) (Monthly) H 002
Monitor.
No target
Remove as a corporate
measure. Service only.
Carry out trend analysis
No target , annual reporting
against previous year
Number of homes granted planning
permission (all tenure types) (monthly
cumulative) HS 008
Health of North Norfolk Measure
NA
Number of affordable homes granted
planning permission (monthly cumulative)
HS 009
Health of North Norfolk Measure
NA
Number of households from the housing
register rehoused (monthly cumulative) H
005
Health of North Norfolk Measure
NA
Numbers on the housing waiting list –
Total (monthly) HO 006
NA
NA
Numbers on the Housing Register
(monthly) HO 007
NA
NA
Numbers on the Housing Options Register
(monthly) HO 008
NA
NA
Numbers on the Transfer Register
(monthly) HO 009
NA
NA
Number of Disabled Facilities Grants
allocated (monthly cumulative) HW 001
NA
NA
Number of Disabled Facilities Grants
outstanding (monthly snapshot) HW 002
NA
NA
Number of Disabled Facilities Grants
completed (monthly cumulative) HW 003
NA
NA
Percentage of planning appeals allowed
(monthly cumulative) C 002
Review and report. Less than
30%.
Review and report. Less than
30%.
NA
NA
MONTHLY
Number of businesses assisted to retain
jobs and/or increase employment each
year (monthly cumulative) J 004
Number of economically active people
assisted into work each year (monthly
cumulative) J 014
Number of affordable homes built (monthly
cumulative) H 007
Number of planning appeals allowed
(monthly cumulative) C 002a
Annual Action Plan 2016-17 PI and Measures v08
89
Page 1 of 5
Indicator
Target 2015/ 16
Target 2016/ 17
Percentage of MAJOR planning
applications processed within thirteen
weeks (monthly cumulative) C 003
80.00%
80.00%
Percentage of MINOR planning
applications processed within eight weeks
(monthly cumulative) C 004
70.00%
70.00%
Percentage of OTHER planning
applications processed within eight weeks
(monthly cumulative) C 005
70.00%
70.00%
Target threshold revised by
Government from 30% to 40% in
June 2014 and from 40% to 50%
in September 2015.
Target threshold revised by
Government from 30% to 40% in
June 2014 and from 40% to 50%
in September 2015.
Target threshold set by
Government at 30% and
confirmed by DCLG at 20% in
June 2014. NNDC target 20%.
Target threshold set by
Government at 30% and
confirmed by DCLG at 20% in
June 2014. NNDC target 20%.
Number of MAJOR planning applications
overturned on appeal over the last 24
months (monthly cumulative) DM 006a
Less than 5
Less than 5
Planning Income £ (monthly cumulative)
DM 009
NA
NA
£361,045
£361,045
80.00%
82.00%
Review and report.
Review and report.
No target. Report to Head of
Service and Management Team
No target. Report to Head of
Service and Management Team
Percentage of household waste sent for
reuse, recycling and composting (monthly
cumulative) ES 001
No target. Report to
Management Team.
No target. Report to
Management Team.
Number of grants awarded to local
communities from the Big Society Fund
(monthly cumulative) L 005
Review and report.
No target, annual reporting
Amount of funding investment in
community projects (from the Big Society
Fund) (£) (monthly cumulative) L 006
Review and report.
No target, annual reporting
Percentage of MAJOR planning
applications processed within thirteen
weeks over the last 24 months (monthly
cumulative) DM 005
Percentage of MAJOR planning
applications overturned on appeal over the
last 24 months (monthly cumulative) DM
006
Building Control income (monthly
cumulative) BC 001
Target response time to fly tipping and all
other pollution complaints (within 2
working days) (monthly cumulative) C 007
Number of defaults issued to the waste
and related services contractor (monthly
cumulative) C 010
Number of rectifications issued to the
waste and related services contractor
(monthly cumulative) ES 015
Participation at NNDC Sporting Facilities
(monthly cumulative) LE 004
Annual target of 550,555
Number of Events Organized at Country
Parks (monthly cumulative) LE 005
Annual target of 550,555. Under
review.
40 (annual)
40 (annual)
Number of Adult Visitors to Parks and
Countryside Events (quarterly cumulative) LE
010
1650 (annual)
1500 (annual)
Number of Child Visitors to Parks and
Countryside Events (quarterly cumulative) LE
011
2350 (annual)
1900 (annual)
NA
NA
Number of Compliments (monthly
cumulative) CS 050
Annual Action Plan 2016-17 PI and Measures v08
90
Page 2 of 5
Indicator
Target 2015/ 16
Target 2016/ 17
Number of Complaints (monthly
cumulative) CS 051
NA
NA
Number of MPs Letters (monthly
cumulative) CS 052
NA
NA
Legal Services Fee Income (£) (monthly
cumulative) LS 003
£72,000 (annual)
£72,000 (annual)
Percentage of Freedom of Information
(FOI) Requests responded to within the
statutory deadline of 20 working days
(monthly cumulative) LS 004
70.0%
80.0%
Number of Freedom of Information (FOI)
Requests (monthly cumulative) LS 004b
NA
NA
Occupancy Rate of Council Owned Rental
Properties (monthly) PS 006
80.0%
Under review.
Percentage of Council Tax collected
(monthly cumulative) RB 009
98.5%
98.5%
Percentage of Non-domestic Rates
collected (monthly cumulative) RB 010
99.2%
99.2%
Average time for processing new claims
(Housing and Council Tax Benefit)
(monthly cumulative) RB 027
18 calendar days
18 calendar days
Speed of processing: change in
circumstances for Housing and Council
Tax Benefit claims (average calendar days)
(monthly cumulative) RB 028
10 calendar days
Under review.
PM 32 Average Number of days Revenue
Outstanding (Debtor Days) (monthly) RB
029
82 (low is good)
82 (low is good)
Visits to NNDC website (monthly
cumulative) WG 005
Review and report
Review and report
Unique Visitors to NNDC website (monthly
cumulative) WG 006
Review and report
Review and report
Number of Ombudsman referral decisions
(monthly cumulative) PA 001
Percentage of Ombudsman referrals
successful outcomes for the Council
(monthly cumulative) PA 002
No target set
No target set
No target set. Report to
Management Team.
No target set. Report to
Management Team.
Number of new business start-ups
supported by Enterprise North Norfolk
(quarterly cumulative) ED 023
50
Programme no—longer
operating (ended Dec 2015)
Number of member businesses of the
Destination Management Organisation
(DMO) for the North Norfolk coast and
countryside (quarterly) J 015
250 by December 2015
Under review
450 (annual)
Under review
Review and report.
Review and report.
QUARTERLY
Number of people supported with IAG
(quarterly cumulative) ED 025
Number of pollution enforcement
interventions (quarterly cumulative) C 008
20 (annual)
Number of fixed penalty notices issued
(quarterly cumulative) C 009
Carry out trend analysis.
Annual Action Plan 2016-17 PI and Measures v08
91
Split between littering, fly-tipping
and dog fouling
Page 3 of 5
Indicator
Target 2015/ 16
Target 2016/ 17
80%
80%
100.0%
100.0%
100.0%
100.0%
6
6
Health of North Norfolk Measure.
Review and report.
Health of North Norfolk Measure.
Review and report.
Number of arts exhibitions/event days
(annual) AR 001
No target
No target
Number of attendees at arts events
(annual) AR 002
No target
No target
18,250
19,000
Percentage of Priority 2 (Important) audit
recommendations completed on time
(quarterly cumulative) V 001
Percentage of Priority 1 (Urgent) audit
recommendations completed on time
(quarterly cumulative) V 002
Percentage of audit days delivered
(quarterly cumulative) V 004
Working Days Lost Due to Sickness
Absence (Whole Authority days per Full
Time Equivalent members of
staff) (quarterly cumulative) V 007
ANNUAL
Number of new homes built of all tenures
(annual) (H 001)
Number of garden waste customers as at
1st October (annual) ES 014
Annual Action Plan 2016-17 PI and Measures v08
92
Page 4 of 5
New Indicators
Jobs and the Local Economy
Target 2016/17
Number of businesses accessing grant funding or information through the LEP in North
Norfolk
No target yet.
Number of successful start-ups
No target yet.
Housing and Infrastructure
Target 2016/17
Number of long term empty homes (two years or more as at 1st working day of each
month) (monthly)
No target yet.
Coast and Countryside
Target 2016/17
Tonnage of domestic waste collected (monthly cumulative)
No target yet.
Health and Well-Being
Target 2016/17
Number of people active in North Norfolk
No target yet.
Number of events for which NNDC provided financial support
No target yet.
Delivering Service Excellence
Reference
Target 2015/16
Target 2016/17
Percentage of customers who were quite or extremely
satisfied they were dealt with in a helpful, pleasant and
courteous way (quarterly)
CS 053
No target set. Report to
Transformation Board.
No target set. Report to
Transformation Board.
Percentage of customers who were quite or extremely
satisfied they were dealt with in a competent,
knowledgeable and professional way (quarterly)
CS 054
No target set. Report to
Transformation Board.
No target set. Report to
Transformation Board.
Percentage of customers who were quite or extremely
satisfied with the time taken to resolve their enquiry
(quarterly)
CS 055
No target set. Report to
Transformation Board.
No target set. Report to
Transformation Board.
Percentage of customers who were quite or extremely
satisfied they got everything they needed (quarterly)
CS 056
No target set. Report to
Transformation Board.
No target set. Report to
Transformation Board.
Average wait time (minutes) - Customer Services
(monthly)
CS 057
No target set. Report to
Transformation Board.
No target set. Report to
Transformation Board.
Average transaction time (minutes) - Customer Services
(monthly)
CS 058
No target set. Report to
Transformation Board.
No target set. Report to
Transformation Board.
Average wait time (minutes) - Housing Options
(monthly)
CS 059
No target set. Report to
Transformation Board.
No target set. Report to
Transformation Board.
Annual Action Plan 2016-17 PI and Measures v08
93
Page 5 of 5
Agenda Item No____13________
2016/17 BUDGET REPORT
Summary:
This report presents for approval the 2016/17 budget
along with the latest financial projections for the
following three years to 2019/20. As part of the budget
report the Fees and Charges for 2016/17 are also being
put forward for recommendation.
Options considered:
The budget for the forthcoming financial year must be
set annually. Whilst there are options around the
individual budgets presented for approval i.e. what is
included in the budget for 2016/17, the overall position
now presented for approval is the culmination of work
carried out by officers and Cabinet over a number of
months, details of this work is provided within the report.
Conclusions:
The Council’s budget is set for approval each year; it is
presented to Cabinet and then considered by Overview
and Scrutiny Committee before recommendations are
made to Full Council. This report now presents a
balanced budget for 2016/17 and also presents the
latest financial projections for the following three
financial years, 2017/18 to 2019/20. The budget has
been produced based on a number of assumptions as
detailed within the main body of the report and also
reflects the provisional finance settlement announced on
17 December 2015. The report recommends that the
surplus for the year is allocated to the
restructuring/Invest to Save reserve. The report also
outlines the risks facing the Council in setting the budget
and forecasting future spending plans and resources.
Recommendations:
It is recommended that Cabinet agree and where
necessary recommend to Full Council:
1)
The 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 for
2016/17, subject to any amendments as a
result of final precepts still to be received be:
94
5)
6)
7)
8)
9)
10)
11)
Reasons for
Recommendations:
a. £5,473,605 for District purposes
b. £1,887,810 (subject to confirmation of the
final precepts) for Parish/Town Precepts;
The statement of and movement on the
reserves as detailed at Appendix F;
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;
The updated Capital Programme and
financing for 2015/16 to 2018/19 as detailed at
Appendix G;
The new capital bids as detailed at Appendix
H;
The prudential indicators as included at
Appendix I;
That members note the current financial
projections for the period 2017/18 to 2019/20;
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.
To recommend a balanced budget for 2016/17
for approval by Full Council on 23 February 2016.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
Local Government Finance Settlement 2016/17, 2015/16 budget monitoring reports.
Cabinet Member(s):
Cllr Wyndham Northam
Ward(s) affected
All
Contact Officer, telephone number and email: Karen Sly, 01263 516243,
Karen.sly@north-norfolk.gov.uk
1
Introduction
1.1
This report presents the detail of the 2016/17 revenue budget and the
indicative projections for the following three financial years, 2017/18 to
2019/20.
1.2
An updated Capital Programme has also been included covering the periods
2015/16 to 2019/20 which takes account of slippage of schemes between
financial years. Details of new capital schemes are included within the report
for approval.
95
1.3
This report will be considered by the Overview and Scrutiny Committee on 17
February and then presented for approval by Full Council on 23 February
2016 as part of the annual Council Tax setting report.
1.4
The Medium Term Financial Strategy (MTFS) covering the period 2016/17 to
2019/20 was presented to Members in September 2015. At that time the
forecast budget gap over the next four years was in the region of £1.68
million, before allowing for a number of workstreams that had been identified
but where the detailed plans were yet to commence. After allowing for
indicative savings targets from these workstreams the forecast funding gap by
2019/20 was reduced to £978,000. This position took account of the following
assumptions:
a)
b)
c)
d)
e)
f)
Known spending pressures;
Forecast Revenue Support Grant reductions in the region of 35% per
annum over the period 2016/17 to 2019/20;
Council tax freeze for the period of the strategy;
Continuation of the New Homes Bonus and using 75% of the
Council’s allocation of the funding in the base budget;
A number of work stream savings and additional income including
forecast savings from the digital transformation programme to
commence from 2016/17;
No one-off use of reserves were assumed for the period of the MTFS.
1.5
Since then the detail of the budget for 2016/17 and projections for the period
to 2019/20 have been developed by both Officers and Members resulting in
the budget now presented in this report. This reflects the provisional finance
settlement figures announced on 17 December 2015, the final settlement is
expected early February. The final budget presented for approval on 23
February 2016 will be updated to reflect the final figures as applicable.
1.6
The following sections of the report present the detail and context within
which the budget has been produced. The summary of the budget and
service budget details are included at appendices A and B respectively.
2
Provisional Local Government Finance Settlement (LGFS)
2.1
On 17 December 2015 the Local Government Minister, Greg Clark,
announced a four year provisional Local Government Finance Settlement
(LGFS) for the period 2016/17 to 2019/20.
2.2
The final settlement figures are due to be announced in early February and
where applicable any changes resulting from the final settlement will be
reflected in the budget report to Full Council on 23 February 2016.
2.3
Some of the key messages from the settlements are as follows:
a)
b)
The settlement covers a four year period 2016/17 to 2019/20, although
the acceptance of the four year settlement is dependant upon the
production of an efficiency plan. Further details on the efficiency plan are
expected alongside the final settlement.
The main change in the settlement this year is that the Revenue Support
Grant allocations have taken into account Local Authorities ability to
generate resources from Council Tax and those with higher tax bases
96
c)
d)
2.4
a)
b)
c)
d)
2.5
have seen higher reductions in RSG, with some Authorities being in a
position of negative RSG through a greater increase in the business rates
tariff. By 2019/20 approximately one third of Councils will be in a negative
RSG position. Whilst the 2020/21 financial projections are outside the
period covered in this report, the assumption would be that RSG is no
longer received beyond 2019/20.
The settlement reflects a shift towards generating resources locally, from
council tax and business rates over the period of the settlement. The
increasing of Council Tax is a factor that has been assumed in the four
year settlement in that headline figures are quoting very little cash
reductions in the four years of the settlement. This is based on the
assumption that local tax is increased in line with the council tax principles
announced within the settlement (see 2.4 below also), including the Social
Care Precept and the £5 increase for District Councils in the lowest
quartile for band D.
New Homes Bonus allocation methodology remains the same for 2016/17
with a consultation issued for changes to the scheme from 2017/18 which
allows for £800 million to be top sliced for Social Care and the scheme
reduced from a six to four year scheme.
The following announcements made as part of the settlement have been used
to inform the 2016/17 budget and future financial projections, these included:
Allocations of the 2016/17 NHB funding - The settlement announced a
total provisional amount of £1,461million for the New Homes Bonus
(NHB) in 2016/17. This will continue to be funded through £210 million in
specific grant with the rest being top-sliced funding, expected to be
£1,275 million.
NHB Changes Consultation 2017/18 Onwards - As announced in the
October 2015 Spending Review, the Government has issued a
consultation on delivering savings to the new homes bonus that will come
into effect from 2017/18. The settlement includes sums for 2017/18
although these are based on current allocations and reductions in the
overall funding available.
Council Tax Referendum principles - The proposed principle for
Council tax increases for 2016/17 is 2%, with the exception of Police and
Crime commissioners and shire district authorities which are in the lowest
quartile (approximately £145) by council tax level, for which a higher limit
of either 2% or £5 (on a Band D bill) applies (NNDC currently falls in the
lower quartile at £138.87). In addition, social care authorities will be able
to increase their council tax by 2% over the existing referendum
threshold, with the condition that the additional 2% social care precept is
spent on adult social care services. This will have to be separately
itemised on council tax bills.
Rural Services Delivery Grant – The settlement announced the
continuation of government funding through the Rural Services Delivery
Grant. The Government will top slice £20 million from Revenue Support
Grant in 2016/2017 to pay as a non-ring fenced Section 31 grant to the
upper quartile of authorities based on the super-sparsity indicator. This
funding will increase to £65 million over the four year period of the
Settlement. NNDC is eligible for this funding which was previously
included in the settlement within the RSG allocation.
Within the 2016/17 settlement the Government has used a measure of “Core
Spending Power (CSP)” which sets out potential income for Local Authorities
97
from a number of sources for the period 2017/18 to 2019/20. The sources of
income are as follows:




2.6
The “Modified Settlement Funding Assessment (MSFA)” – this
includes the Revenue Support Grant (RSG) and Business Rates
Baseline funding including where necessary tariff and top up
adjustments.
The council tax requirement (excluding parish precepts) – i.e. income
generated locally from Council Tax
New Homes Bonus
Rural Services Delivery Grant.
The settlement makes a number of assumptions within the future years
spending power for each of the income sources. These assumptions are
outlined below:
a) MSFA – Annual reductions have been made to the RSG and
increases to the business rates baseline.
b) Council Tax Base Growth – spending power assumes there will be
annual growth in the Council Tax base throughout the period to
2019/20. The level of growth has been based on the average annual
growth in the council tax base between 2013/14 and 2015/16
throughout the period to 2019/20.
c) Council Tax Increases – the spending power assumes that Local
Authorities will increase their Band D council tax in line with the Office
for Budget Responsibilities (OBR) forecast for CPI for each year
(which is an annual average of 1.75%) throughout the period to
2019/20, rather than the 2% allowed before triggering a referendum.
d) Social Care Precept – the settlement assumes that additional council
tax will be generated from the setting of an adult social care precept
for those authorities with this responsibility..
e) Additional council tax available from a £5 cash principle – it has been
assumed that all districts within the lower quartile Band D council tax
level will increase council tax by £5 where applicable. This has been
estimated by assuming that the 51 shire district councils with the
lowest Band D council tax in the previous year will increase their Band
D council tax by whichever is the greater of £5 or 2%.
f) New Homes Bonus – for 2016-17, the settlement includes the actual
allocations along with returned funding. For 2017/18 onwards the
spending power assumes that the total funding (after planned
reductions of at least £800million to be released for the improved
Better Care Fund) is apportioned to local authorities based on the
allocations in 2016/17.
g) Rural Services Delivery Grant - This provides £20 million of funding in
2016/17, rising to £65 million in 2019/20. This funding is distributed to
the top-quartile of authorities ranked by super-sparsity, as per the
distributional methodology for the Rural Services Delivery Grant
indicator in 2015/16.
2.7
The following table summarises the Core Spending Power as announced as
part of the provisional settlement.
98
Table 1 - Core Spending Power Provisional Finance Settlement
2015/16
2016-17
2017-18
Adjusted
Settlement Funding Assessment:
£000
£000
£000
Revenue Support Grant
1,575
936
Baseline Funding Level
2,952
3,010
Modified Settlement Funding
5,297
4,527
3,946
Assessment (MSFA)
5,176
5,426
5,681
Council Tax:
Council Tax Requirement
excluding parish precepts
additional revenue from £5
referendum principle
New Homes Bonus and returned
funding
Rural Services Delivery Grant
2018-19
£000
536
3,099
2019-20
£000
88
3,198
3,634
3,286
5,940
6,206
5,176
5,305
5,464
5,634
5,814
0
120
216
307
392
1,684
2,092
2,104
1,322
1,268
93
119
209
299
388
12,164
11,939
11,195
11,148
(86)
-0.7%
(225)
-1.9%
(744)
-6.2%
(47)
-0.4%
(1,102)
-9.0%
Core Spending Power (as per
12,250
announcement)
Reduction £000
Reduction %
Reduction over period of settlement £ 000
Reduction over period of settlement %
2.8
The Core Spending power assumes that the resources will reduce over the
next four years by 9% equating to £1.1 million, although this is based on the
assumption that the Council tax band D will increase by £5 each year to
generate an additional £1 million in Council Tax over this period and that the
NHB is received at the level assumed in the settlement.
2.9
The key element in terms of external support is the ‘Settlement Funding
Assessment’. This essentially comprises the Council’s Revenue Support
Grant (RSG) and the Business Rates baseline funding level (uprated by the
Retail Price Index). Table 2 provides a breakdown of this element and the
reductions included in the settlement.
99
Table 2 Settlement Funding Assessment
2015/16
Adjusted
Settlement Funding Assessment:
Revenue Support Grant £000
Baseline Funding Level £000
Total Settlement Funding Assessment
£000
Movement - Year on Year
Revenue Support Grant £ (Reduction) 000
Revenue Support Grant % Reduction
Baseline Funding Level £ Increase 000
Baseline Funding Level % Increase
Total Settlement Funding Assessment
(Reduction) £000
Total Settlement Funding Assessment
(Reduction) %
2016-17
2017-18
2018-19
2019-20
2,369
2,928
1,575
2,952
936
3,010
536
3,099
88
3,198
5,297
4,527
3,946
3,634
3,286
(794)
-33.5%
24
0.804%
(639)
-40.6%
58
1.967%
(400)
-42.8%
89
2.950%
(447)
-83.5%
99
3.196%
(771)
(581)
(312)
(348)
-14.5%
-12.8%
-7.9%
-9.6%
Reduction over period of settlement £ 000
Reduction over period of settlement %
(2,011)
-38%
2.10
The above table illustrates the settlement funding assessment as announced
within the provisional settlement. Total funding (excluding the New Homes
Bonus) is expected to reduce by 14.5% in 2016/17 (compared to 2015/16)
and by 38% over the period of the settlement.
2.11
In 2013/14 total funding of £9.5 million for supporting sparsely populated
areas was included in the settlement. NNDC’s allocation in 2014/15 was
£56,738 increasing to £92,574 in 2015/16. The provisional settlement figures
announced continue the funding for sparsely populated areas, which is
increasing over the period of the settlement. In 2016/17 the grant for NNDC
will be £119,450.
2.12
New Homes Bonus – the provisional finance settlement includes
announcements on the New Homes Bonus for 2016/17, further details on this
are provided at section 3.
2.13
Business Rates Retention – The scheme of Business Rates retention came
into operation in April 2013, and no changes to the scheme were announced
as part of the settlement. The percentage shares are 50% central
government; 40% NNDC and 10% Norfolk County Council. The Government
has confirmed that it continues to fund through a section 31 grant, the impact
of the doubling of Small Business Rate Relief which will continue for a further
year but that the retail discount will end on 31 March 2016. The multiplier will
therefore be 49.7 pence, with the small business multiplier being 48.4 pence.
Top-ups and tariffs will be uprated by 0.8% in line with the increase in the
September 2015 Retail Price Index.
2.14
The amount of the Section 31 grant will not be confirmed until the NNDR
returns for 2016/17 have been finalised. The annual National Non-Domestic
Rates Return (NNDR1 form) provides an estimate of what the Council will
collect in business rate income for the following financial year. The variation
between the estimate and the actual is then dealt with through the
surplus/deficit on the (business rates) collection fund in the following year, in
a similar way to the operation of the Council tax collection fund. The actual
100
position will be influenced by fluctuations in business rate income actually
received in the year, for example as a result of appeals and reductions in
property rateable value and also new business rate growth.
2.15
For example a surplus or deficit on the 2015/16 business rates collection fund
will be taken into account within the 2016/17 NNDR1 return and determining
the respective values of the shares of the business rates income. This will
also determine the payment of the levy due from the authority in relation to
increases in business rate income compared to the baseline.
2.16
The deadline for the NNDR1 form for 2016/17 is 30 January and this will also
include an estimate of the surplus/deficit position for the current financial year.
The budget position as included within the report makes an assumption of the
net amount of retained income for 2016/17 after allowing for the section 31
grant and the payment of the levy. Where applicable this will be updated
within the budget report to Full Council on 23 February 2016.
3
New Homes Bonus (NHB)
3.1
The New Homes Bonus was introduced in 2011/12 to incentivise and reward
Councils and Communities that build new homes in their area. The bonus is
paid as an un-ringfenced grant for six years and is paid based on the net
additional1 homes plus an additional supplement of £350 per affordable
dwelling. The payment is then split between local authority tiers: 80% to the
lower tier and 20% to the upper tier.
3.2
The provisional allocation of NHB for 2016/17 for NNDC is £2,085,229 and is
based on the council tax data return submitted in October 2015. This
represents additions of 397 properties and an increase in empty properties of
44 resulting in a net movement of 353. The bonus also includes an affordable
homes premium of £22,120 for 79 properties.
3.3
Table 3 provides details of the Council’s allocations of NHB to date.
Table 3 – New Homes Bonus – Allocations to date
Allocation 2011/12
2012/13
2013/14
2014/15
£
£
£
£
349,762
349,762
349,762
349,762
2011/12
261,916
261,916
261,916
2012/13
117,739*
93,857
2013/14
571,667**
2014/15
2015/16
2016/17
Total
349,762
611,678
729,417
1,277,202
2015/16
£
349,762
261,916
93,857
561,706
416,605***
1,683,846
2016/17
£
349,762
261,916
93,857
561,706
406,972
411,016
2,085,229
* Allocation of £93,857 plus £23,882 one-off reallocation for 2013/14
** Allocation of £561,706 plus £9,961 one-off returned funding for 2014/15
*** Allocation of £406,972 plus £9,631 one-off returned funding for 2015/16
1
Net additional homes as recorded on the council tax base return (submitted October
annually) takes into growth in property numbers, demolitions and movement in empty
properties.
101
3.4
Whilst the NHB is included within the Government’s assessment of spending
power, the future return and allocation is subject to a consultation which will
make changes to the scheme from 2017/18 onwards. The consultation seeks
views on a number of factors of the current system including reducing it to a
four year system (from the current six years) and allocation being more
closely linked to certain areas of planning, including abatements for non
delivery of a local plan and where housing developments are approved on
appeal. The consultation continues with the allocation of funding between
two tier levels of local authority.
3.5
The provisional settlement for 2017/18 to 2019/20 includes NHB allocations
based upon a prorated distribution of forecast reduced funding based on the
2016/17 allocations.
3.6
There is currently forecast to be a balance within the New Homes Bonus
earmarked reserve of just over £1.4 million at 1 April 2016. This has been
earmarked to support the Council and communities for future growth
opportunities and development and also to provide one-off funding for the
Local Plan work that is currently being undertaken.
4
Savings and Additional Income 2016/17 onwards
4.1
The financial strategy as reported to Cabinet in September 2015 outlined a
number of work streams and priorities to be delivered over the length of the
medium term financial strategy. These essentially focused mainly on income
maximisation and efficiency savings. As part of the work on the 2016/17
budget all Heads of Service were asked to put forward savings totalling 10%
of their service area for consideration. These were considered by CLT and
Cabinet as part of the preparatory work on the 2016/17 budget and those
being recommended as part of the budget process are detailed at Appendix
C.
4.2
A total of £496,722 of savings and additional income has been factored into
the budget for 2016/17, increasing to £974,729 in 2017/18 and to £1.1 million
by 2019/20. Where applicable the timing of the savings have been profiled
over the next four years and some will be subject to more detailed work
including project appraisals. The table below summaries the savings included
in the budget and projections according to the workstream.
4.3
No further growth for New Homes and Business rates has been factored in
above the current budget assumptions. This will be reviewed pending the
outcome of the NHB consultation.
102
Table 4 - Savings and Additional Income
Theme
1. Growth - New Homes and Business Rates
2016/17
2017/18
2018/19
2019/20
£000
£000
£000
£000
0
0
0
0
2 Digital Transformation/BPR
82
157
193
193
3. Property Investment & Asset Commercialisation
66
187
257
272
121
60
60
60
0
0
0
0
129
211
216
216
99
360
360
360
497
975
1,086
1,101
4. Shared Services/Selling Services
5. Collaboration and Localism
6. Maximising Income and Reducing Costs
7. Other Efficiencies and Savings
Total
5
Fees and Charges 2016/17
5.1
The proposed fees and charges for 2016/17 are included at Appendix D.
Where applicable the fees and charges have increased by 2.5% or where the
rounding of fees allows. There are some exceptions and these are annotated
accordingly in the appendices or referred to below.
5.2
Car Parking – These will be subject to a separate report and the financial
implications from these will then need to be reflected in the budget and
projections.
5.3
Beach Huts – As part of the savings/additional income proposals (included in
section 4), changes have been proposed to the charging for beach huts for
the next four years. There are long waiting lists for the Council’s beach hut
sites and current charges are considerably below other seaside resorts. The
proposal is to agree to a recommended scale of increases over the next four
years so that both current and new potential customers are aware of the
increases a number of years in advance. The recommended increase for the
2016/17 financial year is £30 per hut site. This will raise the annual site fee in
Cromer, Overstrand and Sheringham from £220 to £250 and in Mundesley
from £210 to £240. The recommendation is that Members also provisionally
agree the proposed increases over the following 3 financial years as well as
outlined below;
Annual Rate
(Cromer,
Overstrand &
Sheringham)
Annual Rate
(Mundesley)
Proposed charge 2016/17
Additional £30 increase
£250
£240
Proposed charge 2017/18
Additional £50 increase
£300
£290
Proposed charge 2018/19
Additional £100 Increase
£400
£390
Proposed charge 2019/20
Additional £100 Increase
£500
£490
5.4
It should be noted that, while these are the current proposed charges for
future years, it is only the 2016/17 charge that is being set at this point.
103
5.5
Currently, because of the long wait before an offer is made for both beach hut
and chalet sites, people choose to go on more than one waiting list to
maximise their chances of an offer. Due to the size of some of the waiting
lists it is also proposed that a one-off non-refundable charge of £25 is
introduced to join each list (currently 6 lists are in operation for beach huts at
Cromer (East and West) Sheringham (East and West), Overstrand and
Mundesley and a further 3 for chalets at Cromer (East and West) and also
Sheringham.
5.6
This will enable the Council to better manage the lists and to provide more
realistic estimates of how long it might take people to get a hut/chalet site.
5.7
Approval is also sought, as part of the Cromer West prom regeneration
project, to enable some of the additional hut sites provided as part of this
project to be made available on an annual basis via auction (such as through
eBay). In this instance the Council would need to provide the huts due to the
short term nature of the licence and the fact that there would be no automatic
renewal option, with the final price dictated by the auction results.
5.8
Local Land Searches – HMRC has announced that VAT will be levied at the
rate of 20% from the 1 February for all income from the CON29R and O
income (and the associated additional parcels of land fees). The LLC1 fee will
not attract VAT because it is provided by local authorities under a special
legal agreement. Fees will be reviewed later this year in line with the updated
CON29 forms which come into effect in July 2016.
5.9
The financial impact of the changes to the fees and charges have been
included in the budget and forecast figures as included in the report.
6
Revenue Account Base Budget
6.1
The detail of the revenue budget now presented for approval is included
within Appendices A and B. Appendix A shows the overall position in the form
of the General Fund Summary. Further detail on the individual service
budgets is included at Appendix B which shows the movement of the 2016/17
budget compared to the base budget for 2015/16 as set in February 2015
along with comments of the more significant variances.
6.2
No growth bids were invited for revenue expenditure in 2016/17. Capital bids
were invited, although these were limited to those which addressed health
and safety issues, computer system upgrades and enhancements that will
deliver efficiency savings, together with Invest to Save projects that support
the delivery of the Corporate Plan actions and projects which are supported
by third party contributions.
6.3
The capital programme is discussed in detail at section 9 which includes both
an update to the current capital programme along with new capital schemes
and the financing of the programme.
6.4
The revenue budget for 2016/17 makes a number of assumptions, the more
significant ones are as follows:
a)
Council Tax – The budget assumes a Council Tax freeze for the district
element of Council Tax in 2016/17 based on the tax base of 37,940 as
104
approved in December 2015. This means that the district element of the
council tax remains at £138.87 for 2016/17.
b)
Employee budgets – The budget assumes a 1% pay award for 2016/17,
although a local agreement on pay has yet to be agreed. As a guide a 0.5%
sensitivity to the pay award equates to approximately £46,000 per annum. An
allowance has been made to reflect vacancy savings of 2% as in previous
years and where annual increments are due these have continued to be
factored into the budget.
The employer pension contribution rates are based upon the results of the triennial valuation of the pension fund as at 31 March 2013. For 2016/17 and
future years, the contribution rate will remain unchanged at 14.5% of the
payroll plus an additional monetary contribution. The next pension fund
valuation is due on 31 March 2016 to take effect from April 2017. The fixed
payment has been adjusted to take into account likely movements and has
been factored into the budget. For 2017/18 the budget assumes the
monetary contribution will increase from £687,000 to £854,000, an increase of
£167,000. For 2018/19 it will increase from £854,000 to £1,032,000 an
increase of £178,000 and for 2019/20 it will increase from £1,032,000 to
£1,219,000 an increase of £187,000
c)
Fees and Charges – The impact of the fees and charges as outlined at
section 5 have been factored into the position now presented for approval.
d)
Contract inflation – The most significant of the Council’s contracts is the
waste contract. The new contractor prices have been included in the 2016/17
budget for all waste, cleansing and grounds maintenance services as per the
tendered contract. The current car park enforcement arrangements with Kings
Lynn and West Norfolk (KL&WN) are due to finish at the end of March 2016.
Negotiations have taken place with KL&WN to extend the original 5 year
agreement by a further year to secure a saving of £50,000 on the current
budget, this saving will be used to support the new Strategic Property
Development Partner contract.
e)
Investment income – A total of £604,800 is anticipated for 2016/17. This
includes income derived from the Local Investment Strategy. The primary
concern for the Council is the security of the sums invested and this remains
the main consideration when selecting counterparties and financial
instruments. The average investment rate anticipated in the forward year is
2.4% compared with 1.6% for the current estimates for 2015/16. The income
budget assumes the investment portfolio is invested with counterparties and
financial institutions as set out in the Treasury strategy, in call accounts and
term deposits, and that existing deposits will continue to their maturity date. It
also takes account of the £5 million in pooled property funds. Further details
of the Council’s investment strategy are set out in the Treasury Management
Strategy Statement and Investment Strategy 2016/17 to 2018/19 which
appears elsewhere on this agenda.
f)
Big Society Fund/Second Homes Funding – The budget assumes the
continuation of the Big Society Fund and related costs and grant scheme,
funded by the second homes income which is returned to the districts as is in
the current budget for 2015/16.
105
6.5
The General Fund Summary presented at Appendix A shows a balanced
budget for 2016/17 and is summarised in Table 5 with the equivalent figures
from the 2015/16 budget.
Table 5 – Variance of 2015/16 to 2016/17 Base Budget
2015/16
2016/17 Base
Base Budget
Budget
Net cost of services (incl. Parishes)
Non service expenditure/ income
Net budget requirement
Funded by:
Local Taxpayers - Parishes
Local Taxpayers - District Council
Revenue Support Grant & Retained Business
Rates
Rural Services Delivery Grant
Council Tax Freeze Grant one off (14/15)
New Homes Bonus
Total Income
(Surplus)/ Deficit
Variance
£000
19,586
(5,714)
13,872
£000
16,373
(2,724)
13,649
£000
(3,214)
2,990
(223)
(1,761)
(5,307)
(1,888)
(5,474)
(127)
(167)
(5,525)
(4,982)
544
0
(58)
(1,684)
(14,335)
(462)
(119)
0
(2,085)
(14,548)
(899)
(119)
58
(401)
(213)
(437)
6.6
Non-Service Expenditure and Income includes the adjustments for notional
items that are required to be charged within Net Cost of Services, for
example, International Accounting Standard 19 (IAS19) pension costs and
capital charges.
6.7
Appendix B shows the detail of the service movements for each of the service
areas. Table 6 provides a summary of the main movements in Net Cost of
Services across the standard expenditure headings, with notional charges
being shown separately.
106
Table 6 - Variance 2015/16 to 2016/17 Base Budgets (excl. notional charges)
2015/16
2016/17
Percentage
Variance
Base
Base
Movement
Budget
Budget
£000
£000
£000
%
Employees/Support Services
10,047
10,428
381
3.8%
Premises
2,454
2,388
(66)
-2.7%
Transport
295
294
(1)
-0.5%
Supplies & Services
9,024
8,771
(252)
-2.8%
Transfer Payments
22,866
28,520
5,654
24.7%
Income (External)
(32,201)
(38,229)
(6,029)
18.7%
Total Direct Costs and Income
12,485
12,171
(314)
-2.5%
Notional Charges:
Capital Charges
2,097
2,210
113
5.4%
2
(290)
(264)
26
-9.0%
IAS19 Notional Charges
2
3,534
134
(3,400)
-96.2%
Reffcus
Total Notional Charges
5,341
2,080
(3,261)
-61.1%
Total Net Costs
17,826
14,251
(3,575)
-20.1%
2
6.8
The significant movement in relation to transfer payments reflects the benefit
subsidy payment for which income is claimed through the subsidy system.
6.9
This report recommends that the surplus of £899k for 2016/17 be allocated
£500,000 to the business rates reserve to mitigate further appeals and the
impact of new emerging appeals for example NHS and the balance to the
restructuring/Invest to save reserve to fund one-off costs in relation to future
restructurings and project implementation costs that will deliver future
efficiencies and savings.
7
Council Tax 2016/17
7.1
Table 6 summarises how the budget for 2016/17 will be financed and the
District’s net call on the Collection Fund for 2016/17. These figures assume a
council tax freeze in the District element of the Council Tax for 2016/17, the
Council tax summary is included at Appendix E.
7.2
A Council Tax Base of 37,940 Band D equivalent properties was approved by
Full Council on 16 December 2015. Based on this figure, and with no
increase to the Net District Council Tax level, a Band D property would
continue to be £138.87 for 2016/17.
International Accounting Standard 19 entries to the accounts are required in relation to postemployment benefits for example retirement benefits. The standard requires that the cost of
providing employee benefits should be recognised in the period in which the benefit is earned
by the employee, rather than when it is paid or paid.
Revenue expenditure funded from capital under statute - represents expenditure that may be
capitalised under statutory provisions but which do not result in the creation of tangible
assets.
2
107
Table 7 – Council Tax Summary 2016/17
Total District amount to be met from Government Grant
& Local Taxation
Less:
Revenue Support Grant
Business Rates Retained & S31 Grant
New Homes Bonus
Rural Services Delivery Grant
District call on Collection Fund – excluding Parish
Precepts
Surplus
£
11,761,132
(1,575,147)
(3,406,572)
(2,085,230)
(119,450)
(5,473,604)
(898,871)
8
Reserves
8.1
The current position and forecast on the General and Earmarked Reserves is
attached at Appendix F. The statement provides the latest proposals for use
of reserves in the current financial year along with the budgeted movements
in 2016/17, and proposed movements in the following three financial years.
The current recommended balance on the general reserve is £1.75 million.
8.2
There are three main reasons for holding reserves:



To provide a working balance to help cushion the impact of uneven
cash flows and avoid unnecessary temporary borrowing – this forms
part of the General Fund Reserve
A contingency to cushion the impact of unexpected events or
emergencies – this also forms part of the General Reserve
As a means of building up funds, referred to as earmarked reserves,
to meet known or predicted requirements. Earmarked reserves are
accounted for separately but remain legally part of the General Fund.
The title of the earmarked reserve generally reflects the purpose for
which the balance is being maintained.
8.3
As part of considering the budget for 2016/17 all reserves have been
reviewed along with the current balances. Where balances are no longer
required or an allocation can be maintained within the General Reserve for
such purposes, balances have been reallocated to the General Reserve or
another earmarked reserve as appropriate.
8.4
The report is recommending that the surplus in the year is allocated to the
restructuring/invest to save reserves as detailed at 6.9. The balance on the
general reserve at 1 April 2016 is forecast to be £2.6 million, there is therefore
sufficient flexibility within the general reserve for a transfer to be made from
the reserve in the short to medium terms to mitigate the impact of the forecast
deficit for 2017/18.
8.5
It should be recognised that the use of reserves is not a long term financial
strategy but does allow time for planning further efficiencies and consideration
of budget options to inform future budget setting processes and to allow for
the smoothing of funding reductions.
8.6
A comprehensive statement about the adequacy of the reserves and
recommended balance will be included within the Chief Financial Officer’s
108
report, which forms part of the annual Council Tax and Budget report to Full
Council in February.
9
Capital
9.1
A revised capital programme for the current year was reported to Members as
part of the Period 6 budget monitoring report on 2 November 2015. The
current capital programme as shown at Appendix G has been updated to
take into consideration those changes identified within the budget monitoring
report, together with further amendments required following the Cabinet
meetings of the 30 November 2015 and 5 January 2016. At these meetings a
further three capital schemes received approval, and there was additional
funding agreed for an existing scheme. These are summarised below:
a)
Additional IT System Back Up and Storage - £52,000 to be included within the
current financial years capital programme. This expenditure is to be financed
from the Invest to Save Reserve and has been profiled to be spent within the
2015/16 financial year.
b)
Superfast Broadband - In January 2016, Cabinet approval related to the
decision to release £1million funding allocated to Superfast Broadband, from
the earmarked Broadband reserve. The value and nature of the expenditure
has been identified as capital in accordance with proper accounting
principles, and at the current time these monies have been identified as being
spent in the 2016/17 financial year.
c)
Egmere Business Zone - This scheme has been allocated a budget of
£1.445million. This scheme is to be funded from both internal and external
resources; a grant of £450,000 has been secured from the Norfolk Business
Rates Pool Fund, and a further £995,000 is to be made available from NNDC
Capital resource. Whilst this scheme has received Cabinet approval, at the
current time it is still subject to formal approval by Full Council in February
2016, due to the value of the overall scheme. This scheme has also been
included within the capital programme for 2016/17.
d)
Cromer Pier and West Prom Refurbishment Scheme - additional budget of
£650,000 being allocated from capital resources, to increase the funding
available for the existing scheme. Again this is also subject to formal approval
by Full Council in February 2016 with the scheme being profiled to be spent
within 2016/17.
9.2
Further to these additions, the programme has also been updated for items of
slippage identified for the current financial year. The revised capital
programme for 2015/16 is shown in Appendix G, and details the current
capital position before taking into account new capital bids which are detailed
for consideration later in the report.
Current Capital Programme
9.3
The current capital programme has been updated for two amendments to
existing capital budgets, in addition to those changes which have been
outlined in the above paragraphs.
a)
Cromer Pier and West Prom Refurbishment – As part of the Period 6 budget
monitoring report it was reported that the budget for the Cromer Pier and
109
West Prom Refurbishment Project would need to be reduced by £200,000 to
reflect the fact that FLAG funding is no longer available to the scheme, due to
timing constraints and the fact that it would not have been possible to
undertake eligible works within the required timescales. Since this was
reported, confirmation has been received that the Council have been awarded
a grant of £50,000 from the Coastal Revival Fund, to assist with the works to
be undertaken. In addition to this the Council have also been advised that an
allocation of £150,000 of Business Rates Pooling monies will also be
available for this scheme.
In total, including the further approval given at the January Cabinet meeting,
this brings the total scheme budget up to £1.465million, to be funded by ;
£1.065million NNDC Capital Resources, £200,000 from anticipated insurance
payments to be received in relation to the Cromer Chalets destroyed in the
2013 Storm Surge, £150,000 allocation from the Business Rates fund and
£50,000 contribution from the Coastal Revival fund.
b)
Waste Management and Environmental Health IT System – Prior to the
presentation of this report there was a budget of £6,095 remaining in relation
to the Waste Management and Environmental Health IT system. As approval
has now been given for the procurement of a new Environmental Health IT
system with a budget of £150,000, the £6,095 is no longer required and has
therefore been removed from the capital programme.
c)
Further to these amendments, it is also important to note that approval has
been given for the compulsory purchase of the former of a property. Although
approval has been received in principle, the purchase cost and fees have still
to be determined and until these values have been agreed the scheme has
not been shown within the capital programme.
Capital Scheme Slippage
9.4
With regard to the Capital Programme, the only other changes to the budgets
have been made in relation to the profiling of expenditure between financial
years for the following schemes. This is to reflect more accurately when
expenditure is anticipated to be incurred, although it should be noted that
neither the scheme budgets, nor the sources of financing for any of these
schemes have been changed.
a)
Disabled Facilities Grants (DFG’s) – Whilst the payment of grants for the
provision of disabled adaptations is continuing, it is not anticipated that all of
the available 2015/16 budget will be spent before the end of the financial
year. At the current time a total of £144,970 has been requested for slippage
into the 2016/17 financial year.
DFG monies are currently distributed to NNDC through allocations from
Norfolk County Council, and in the absence of more up to date information it
has been assumed that the unspent balance of grant will be capable of being
rolled forward for use in future years. In addition to this it has also been
assumed that there will be a further allocation of grant for budget purposes in
2016/17, although no values have been included for subsequent financial
years.
At the current time there are future year budgets of £644,247 identified for
2016/17 and £1,054,890 for 2017/18. Obviously subject to the confirmation of
110
allocations of grant from Norfolk County Council, the profiling and values of
future year budgets may be subject to change, but these will be confirmed as
part of the regular budget monitoring process reported to Cabinet.
b)
Housing Associations - The budget available for this capital scheme relates
specifically to the Blowlands Housing development site. The Housing
Association are currently on site and it is anticipated that 80% of the original
2015/16 budget will be spent in year, with the balance being due for payment
in 2016/17. As such a total of £100,908 has been requested for slippage into
the new financial year.
c)
Gypsy and Traveller Short Stay Stopping Facilities – This budget relates to
the lease payments and other capital expenditure in relation to the Traveller
Sites in Cromer and Fakenham. The budget has been re-profiled to reflect
that expenditure in 2015/16 is anticipated at £38,000, with £40,000 for
2016/17, and £42,000 in 2017/18. The remaining budget of £104,583 has
been slipped into the 2018/19 financial year and beyond, and will be subject
to re-profiling to individual years within subsequent budget determinations.
d)
Cromer Coast Protection Scheme 982 and SEA – The scheme, funded by the
Environment Agency, is progressing, although the anticipated expenditure in
year is £2,357,116 compared to the previous budget for the year of
£6,952,828. As a result of this a total of £4,595,712 has been requested for
slippage into the 2016/17 financial year.
e)
Pathfinder Project – There are two remaining capital projects within this
scheme for which Pathfinder monies are due to be used. It is not currently
anticipated that this expenditure will be incurred before the start of the
2016/17 financial year and as such a request has been made for £265,000 to
be taken forward as a budget into the new financial year.
f)
Coastal Erosion Assistance – There is an existing balance in this budget
amounting to £73,322 relating to Coastal Erosion Assistance, but it is not
anticipated that this expenditure will be incurred until the new financial year.
The remaining budget has therefore been requested for slippage into
2016/17.
g)
Storm Surge – The balance of budget available at the current time for this
scheme is £323,895. The scheme has progressed and it is likely that a total
of £263,249 will be spent by end of the financial year, leaving £60,646 to be
slipped into 2016/17.
h)
Sheringham West Prom – The Sheringham West Prom is programmed for
completion in the new financial year, with expenditure of £204,924 expected
to be spent in 2016/17. This value is therefore requested for slippage into the
new financial year.
i)
Mundesley - Refurbishment of Coastal Defences - Of the total scheme budget
of £2.221million, only £69,693 was profiled to be spent in the current financial
year. On review, the main contractor works are to be undertaken in 2016/17,
with minimal expenditure being incurred in this year. A request is therefore to
be made for £68,725 to be slipped into the new year.
j)
Ostend Targeted Rock Placement – This scheme has been subject to some
preliminary work, but it is not anticipated that the contractors will undertake
111
the main works until the new financial year. As such a total of £54,780 is
requested for slippage into 2016/17.
k)
Trade Waste Bins – Of the balance of budget remaining for this scheme, it is
not anticipated that any further trade waste bins will be purchased in the
current financial year. A total of £18,034 is therefore requested to be slipped
into 2016/17.
l)
Wheeled Bins – A budget of £40,000 was established as part of the capital
budget process for 2015/16 of which only £35,000 is now expected to be
spent in the current year. £5,000 is requested to be transferred to into
2016/17 in order to make further purchases in the new year.
9.5
The table 8 provides a summary of the scheme amendments and slippage
detailed above, and this report is recommending the re-profiling of capital
budgets from the current year of £5,778,604.
Table 8 - Capital Expenditure Summary 2016/17 Onwards
2015/16
2016/17
2018/19
onwards
£
£
1,137,390
17,500
2017/18
£
16,183,001
£
2,690,277
245,905
3,095,000
0
0
Slippage
(5,778,604)
5,632,021
42,000
104,583
Revised Capital Programme
10,650,302
11,417,298
1,179,390
122,083
Previously Approved Capital Programme
Adjustments in Year
New Capital Schemes
9.6
In addition to the existing capital programme amendments, approval is also
being sought for a number of new capital projects as identified in Appendix H.
As part of the budget process bids for new capital projects were submitted by
officers which fell into the following categories;
a) Health and safety issues;
b) System upgrades / enhancements that will deliver efficiency savings;
c) Invest to save projects;
d) Projects that are externally funded, for example, grants or other
external contributions which may require match funding.
9.7
The following section outlines the bids that the report is recommending for
approval within the capital programme from 2016/17 onwards. Prior to
commencement of any new capital projects for bids totalling £100,000 or
over, a more detailed business case will be presented to Members ahead of
release of the funding for the projects.
9.8
Assets and Leisure Related Bids
a)
Grove Lane Holt – As part of the asset commercialisation theme of the
Financial Strategy it is proposed that there would be redevelopment of the
Council owned site at Grove Lane. Previously this property was used as a
depot, the proposal relates to the potential redevelopment of the site, possibly
112
for a residential development scheme. An options appraisal will be
undertaken on the site to identify the best use for the land at which point the
capital costs can be confirmed but it is anticipated that the site will generate
around £28,000 per annum.
b)
Car Park at North Lodge Park, Cromer – This proposal seeks to redevelop
the former hard standing children’s play area at North Lodge Park in Cromer
to provide a new public car park with approx. 55 spaces. In conjunction with
existing capital schemes for Cromer Promenade, this development would
assist in the regeneration of the east end of the town. In total the capital bid
for the works to develop the car park is £121,000, but in turn this could
generate additional income of approximately £22,600 per annum. In order for
this scheme to be progressed it would need to be subject to a Car Park
Order, which includes a full consultation process. In relation to the longer term
financial sustainability of North Lodge Park the Council is proposing to issue a
Prior Information Notice (PIN) during 2016 to try and attract a partner who will
be prepared to invest in the park and its facilities and attractions. The PIN will
enable the Council to make potential investment partners aware of the
opportunities to develop, manage and operate the Park as a vibrant and
successful public space. The Council would then propose moving forward
with identifying potential operators later in the year so as to try and secure a
stronger the future for the Park, at a reduced cost to District Council tax
payers
c)
Public Conveniences – This £450,000 scheme relates to the review and
redevelopment or disposal of a total of five facilities, together with alternative
provision on a further two sites. The proposals have focused on locations
where there are other public conveniences already available and it is not
considered that the changes would significantly impact on members of the
public. The scheme assumes there will be the opportunity to generate a
capital receipt from the review which would be reinvested into the scheme.
There are two further properties which would be closed in their current state,
with facilities either being provided at an alternative location, or where there is
a transfer of the facility to an alternative provider with the Council providing a
reducing level of grant support for a period of three years. In addition to this
there are a further three facilities which would be closed as public
conveniences, with the properties being redeveloped as commercial
premises, i.e. café, restaurant, shop or rented accommodation. All proposals
seek to improve the commercialisation of the Council’s asset base, reducing
expenditure and increasing income.
d)
Car Park Refurbishment – There are currently a number of car parks which
require resurfacing and relining, and although the works are costly, the
reactive maintenance to repair these facilities would be disproportionately
expensive and would place a strain on existing revenue repair budgets. In
addition to this, the requested budget of £99,000, would seek to address the
replacement of signage across car parks, together with the provision of
improved lighting. In return the works proposed under this scheme would
help to: reduce complaints concerning charges, facilitate better enforcement
procedures, reduce health and safety risks of trips and falls, and reduce the
potential for claims for damage to vehicles caused by pot holes.
9.9
Customer Services Related Bids
113
a)
Council Chamber and Committee Room Enhancements – A capital bid for
£25,000 has been included for the refurbishment of facilities within the
Council Chamber and the Committee Room. The works to be considered as
part of this scheme include the replacement of IT, presentation, audio and
visual equipment to allow the rooms to be used for alternative purposes.
b)
Access Control Systems – This scheme seeks to provide a new access
control system based on identification cards, to the Cromer Office building.
The swipe system, at a cost of £17,000, would allow better control and the
monitoring of access to the office accommodation, improving security in what
is now a multi-tenanted building.
c)
Log Solution to Satisfy Public Services Network Connection – In December
2016 the Council’s current log management solution will no longer be
supported. A replacement system would satisfy PSN compliance
requirements, in addition to allowing detailed monitoring of the network
environment, allowing real time threat detection and response. The
anticipated cost of this system replacement is £41,365.
9.10
Economic Development Related Bids
a)
Vale Road Beach Access Improvements – Vale Road beach access is
currently managed by the Council, and enables beach access for pedestrians
and informal access for pleasure boat users. A capital budget of £18,600 is
being recommended to support Mundesley Coastwatch to locate a temporary
seasonal lookout at this location. This would improve beach access, as well
as providing a communications link to what is a relatively remote location. It
is hoped that this facility would help to deter antisocial behaviour in the area,
in addition to reducing the inappropriate use of the beach.
9.11
The total of the estimated project costs associated with these capital bids is
£1,121,965, which is currently profiled to be spent within the 2016/17 financial
year. At the current time no external funding has been identified for these
schemes which leaves the full budget requirement to be funded from the
Council’s own capital resources through capital receipts and internal
borrowing. However, where new capital receipts are generated this will
reduced the net funding required.
9.12
Once approval for these new capital bids has been received the capital
programme will be amended to reflect these changes. For the larger capital
schemes for example the Grove Lane project a more detailed business case
will be presented for approval ahead of funding being released.
9.13
The certainty of new capital receipts will be monitored as part of the on-going
budget monitoring process, and where applicable recommendations will be
made to amend the capital programme and it’s financing.
Capital Programme Funding
9.14
There are a number of sources of funding available to fund the capital
expenditure. The following outlines those which are available to the Council:
a) External Contributions or Grants – e.g. the Environment Agency (EA) and
other third party contributors.
114
b) Reserves – Available capital and revenue reserves can be used to fund
capital expenditure, e.g. Capital Projects Reserve.
c) Capital Receipts – Capital receipts are generated from asset disposals
and can only be used to fund capital expenditure or repay debt. The latter
is not applicable at the moment, as the Council is currently debt free.
d) Borrowing – Under the Prudential Framework, the Council is able to fund
expenditure from borrowing provided that they can demonstrate
affordability and need. Whilst the Council maintains a level of capital
receipts and other reserves the need to borrow externally cannot be
demonstrated, although internal borrowing will still incur revenue
implications in the form of interest foregone and Minimum Revenue
Provision Charges. The future programme has been assumed to be
funded in part from internal borrowing and this is reflected in the
Prudential Indicators and MRP statement for 2016/17, which is included
as Appendix I to this report.
10
Future Projections 2017/18 to 2019/20
10.1
As mentioned within the report the provisional Local Government Finance
Settlement announcement is for a four year period but is subject to signing up
to an efficiency plan. The details and implications of signing up or not are yet
to be determined although agreeing a four year settlement will provide some
element of certainty around future funding from revenue support grant. Details
on the efficiency plan are expected when the final settlement is announced,
pending further details this report is therefore recommending 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
10.2
The forecast financial projections included at Appendix A for the period
2017/18 to 2019/20 make assumptions around spending forecasts and
include the provisional settlement figures for these periods, although the
assumptions around council tax funding have been amended to reflect the a
council tax freeze and local assumptions around tax base growth for the
period.
10.3
After allowing for these assumptions the overall position shows a surplus in
2017/18, moving to a forecast budget gap of £1.2 million in 2018/19 and £1.9
million in 2019/20.
10.4
The financial strategy report presented to Members in September 2015
highlighted a number of work streams and projects to be carried out over the
period of the strategy that would help to deliver future savings and additional
income. These work streams will be continuing and will be used to inform the
updated financial strategy and financial projections that will be completed in
2016/17.
10.5
As detailed in section 2, the finance settlement announcement has assumed
that local authorities will increase council tax annually by either 2% or the £5
where the LA is in the lowest quartile. NNDC is currently in the lowest quartile
and the funding assumptions made in the settlement assume that there is a
115
annual increase in council tax of £5 for each year of the settlement. In terms
of future funding gaps, if these assumptions were applied from 2017/18
onwards, it would reduce the current forecast funding gap by in the region of
£215k to £385k in 2018/19 and £330k to £580k in 2019/20. These are
summarised in the following table.
2017/18
£000
Scenario - £5
Increase per
annum
Scenario – 2%
increase per
annum
2018/19
£000
2019/20
£000
190
385
580
105
215
330
10.6
Since the Government made available the Council Tax freeze grant, the
Council has been able to accommodate a continuing freeze in Council Tax
levels. In view of the Governments change in approach towards funding for
Local Authorities with a greater emphasis on Council Tax rises, and the
cumulative impact of grant reductions from RSG and New Homes Bonus, a
continuation of Council Tax freeze is not an approach that can be
recommended in the medium to long term. Therefore as part of considering
the financial strategy moving forward and options for closing the budget gap,
this is an area that needs further consideration in line with the government’s
policy and principles on Council Tax.
11
Financial Implications and Risks
11.1
The overall budget for 2016/17 is balanced and delivers a surplus of £899k,
which subject to approval will be transferred to the restructuring/invest to save
save and business rates reserve. The recommended level of the General
Reserve is currently £1.75 million, the report highlights that the balance on
this reserve is currently above this level.
11.2
The following outlines the main risks faced by the authority in the medium to
long term and not only in relation to the 2016/17 budget.
11.3
Future Funding – The provisional Local Government Finance Settlement
confirms that Local Government will continue to face funding reductions for
the period of the financial forecasts. The provisional settlement figures
confirm the continued shift from central government support from Revenue
Support Grant to local funding from retained business rate (Baseline
Funding), and Council Tax. The overall reduction in RSG over the period of
the settlement is just over £2 million. The financial planning process has
taken account of this change, however the future funding gaps still remain a
risk. The future forecasts will assume the removal of RSG in full from
2020/21.
11.4
New Homes Bonus (NHB) – The provisional settlement confirmed the
allocation of the 2016/17 New Homes Bonus grant which based on the
current methodology. Changes to the NHB is currently being consulted upon
and changes proposed changes will be influenced by local planning decisions
and Local Plan. Some of this risk is mitigated by the earmarked reserve which
116
can be used to smooth the impact of movements in funding from the level
assumed.
11.5
Business Rates – The risk of funding fluctuations from business rate
continues to be a prevalent feature of the funding of local authorities. The
impact of appeals only exacerbates this risk and therefore the Council has
continued to maintain an earmarked reserve to cushion the impact of these
fluctuations. Whilst the risk is shared between Districts, County and Central
Government in the proportionate shares i.e., 40:10:50, the impact can be over
a number of years where there is a deficit to be covered from the collection of
business rate income. Factors that will lead to the fluctuations include for
example, economic downturn leading to business closures and reducing the
income from business rates, reduced income from the outcome of successful
rateable value appeals, including the impact of back dated appeals, reduced
income as schools transfer to academy status, the national impact of the GP
surgery appeals which are being finalised through the appeal process and
more recently the new emerging risk around hospital and NHS trust
properties. The Council holds an earmarked reserve that can be used to
mitigate the impact of fluctuations in business rate income and also the
impact on the in-year fluctuations compared to the level budgeted. Further
measures announced within the Autumn Statement and detailed earlier in the
report, continue to present a risk to Local Authorities, albeit some of this risk
is mitigated by the section 31 grant announced within the LGFS. A further
risk in relation to the income retained from the business rates retention
system is the review that will see changes to the system albeit keeping the
impact fiscally neutral in that the amount of income collected through
business rates will remain the same, however due to the significant proportion
of small business hereditaments within the district, depending on the outcome
of the review this could have a negative impact on the districts share of the
income.
11.6
Savings – Details of the savings that have been factored into the 2016/17
budget and future projections are included within the detail of the report and
appendices. Delivery of the savings at the levels budgeted is vital to delivery
of the overall budget and future financial position. Where applicable the timing
of the delivery of savings have been taken into account and a full year
amount has not been assumed until 2017/18 or later. It is critical that the
delivery of these savings is closely monitored by CLT and Cabinet as part of
the on-going budget monitoring process.
11.7
Income – Income from a number of demand led services remains a financial
risk that cannot be fully influenced by the Council. Whilst estimates have been
based on previous actuals and knowledge of the service delivery, income
levels need to be closely monitored, for example for planning and car park
income. It is for reasons such as this that a factor in determining the
recommended general reserve balance includes an amount for the more
significant demand led income budgets.
11.8
Investment Returns – Interest rates continue to be low and the delivery of
investment returns is problematic with the choice of counterparty and period
of exposure needing to be weighed on a daily basis in line with the treasury
management strategy. Sound principles underpinned by professional
guidance from treasury management advisors allows for a cautious but not
complacent approach to investment returns. These returns still provide
support to the revenue budget and changes in profiled capital expenditure,
117
economic forecasts, money markets and the stock market, as well as the
government’s triple A rating can all impact on these returns.
11.9
Second Homes – The budget for 2016/17 and projection for 2017/18
assumes that Norfolk County Council continue to return an element of their
share of the second homes council tax to the districts. The return of an
element of the second homes council tax from the County to the districts is
subject to annual approval by the County. This is returned to the districts for
community related expenditure and has been used to fund the Council’s Big
Society Fund (BSF) Grant scheme and related expenditure. This arrangement
is to be reviewed by the County in 2017/18 to inform the budget decisions in
2018/19.
11.10 Pay – There has been a holiday pay and overtime case in relation to whether
‘non-guaranteed overtime’ should count towards holiday pay. Officers are
currently looking at the implications of this and whether there are any financial
implications for the Council. At this time no budget has been allocated for this
and therefore there still remains as a potential financial risk. The budget
assumes an inflationary increase of 1% for pay, however this is subject to
agreement externally and therefore and deviation from this presents a risk,
although some of this will be mitigated through the allowance for staff
turnover and if necessary by the one-off use of reserves.
11.11 Devolution – The devolution work is ongoing, whilst no direct financial
implications have been factored into the budget or future projections, the
outcome and any associated impact will be considered as part of the future
financial planning process.
12
Sustainability - none as a direct consequence of this report.
13
Equality and Diversity
13.1
The Council is required to consider the equality duty in its decision-making
and this includes the budget process. As part of any savings or investments
the Council must consider how it can:



Eliminate unlawful discrimination, harassment and victimisation;
Advance equality of opportunity between different groups; and
Foster good relations between different groups by tackling prejudice
and promoting understanding.
13.2
As discussed within the main report savings and additional income proposals
have been put forward for recommendations as part of the budget process.
As part of the proposals Heads of Service were asked to identify any equality
issues affecting a number of protected groups that needed to be considered
as part of accepting the savings/additional income proposals, and where any
negative affect was identified, how this could be minimised or removed. A
cumulative assessment has been undertaken in relation to the equality forms
and the savings proposals and no negative impact has been highlighted as a
result of this exercise.
14
Section 17 Crime and Disorder considerations – None as a direct
consequence of the report.
118
Appendix A
General Fund Summary 2016/17 Base Budget
Service Area
Assets & Leisure
Corporate Leadership
Team/Corporate
Customer Services & ICT
Community & Economic
Development
Environmental Health
Finance
Organisational Development
Planning
Net Cost of Services
2015/16
Updated
2015/16
2016/17
Base Budget Base Budget Base Budget
£
£
£
2,252,321
2,229,553
2,111,294
2017/18
Projection
£
1,988,198
2018/19
Projection
£
1,941,356
2019/20
Projection
£
1,971,502
35,000
0
0
0
0
0
624,761
612,761
626,523
576,930
584,549
589,423
5,823,045
5,676,831
2,176,096
3,483,257
2,854,327
2,883,158
3,877,714
3,298,602
1,050,957
1,486,866
3,867,714
3,044,050
948,221
1,446,866
3,717,711
2,993,245
962,010
1,664,563
3,836,074
2,972,469
945,140
1,814,129
3,942,071
3,063,995
954,330
1,686,241
3,998,087
3,168,707
966,588
1,747,747
18,449,266
17,825,996
14,251,442
15,616,197
15,026,869
15,325,212
Parish Precepts (Estimate from
16/17 onwards)
Capital Charges
Refcus
Interest Receivable
Revenue Financing for Capital:
Minimum Revenue Provision
IAS 19 Pension Adjustment
1,760,520
1,760,520
1,887,810
2,019,957
2,161,354
2,312,648
(2,096,742)
(3,533,954)
(426,390)
1,123,952
56,000
289,815
(2,096,742)
(3,533,954)
(426,390)
90,800
56,000
289,815
(2,209,805)
(134,139)
(602,000)
1,161,554
81,000
263,692
(2,695,688)
(1,069,890)
(579,400)
0
150,000
263,692
(2,597,795)
0
(571,900)
0
150,000
263,692
(2,588,665)
0
(576,900)
0
150,000
263,692
Net Operating Expenditure
15,622,467
13,966,045
14,699,554
13,704,868
14,432,220
14,885,987
(712,190)
(16,751)
(184,882)
(10,000)
0
(187,855)
(194,662)
2,000
(25,000)
(90,000)
(91,516)
(5,000)
(88,150)
(16,920)
0
(51,728)
284,800
(76,963)
(94,340)
(60,367)
74,126
0
0
(10,000)
0
(187,855)
0
0
0
(60,000)
(36,516)
0
(25,998)
0
0
0
329,432
0
(89,340)
114,759
3,246
0
0
0
(1,000,000)
0
0
0
0
30,000
0
0
(25,939)
0
(33,347)
0
281,512
0
(127,186)
(178,897)
0
0
0
0
0
0
0
0
0
30,000
0
0
0
0
0
0
(66,694)
0
(84,891)
(33,000)
0
0
0
0
0
0
0
0
0
30,000
0
0
0
0
0
0
(82,944)
0
(8,835)
(12,000)
0
0
0
0
0
0
0
0
0
30,000
0
0
0
0
0
0
0
0
0
0
331,710
260,000
0
0
0
0
Amount to be met from
Government Grant and Local
Taxpayers
14,334,653
14,334,653
13,648,943
13,550,283
14,358,441
14,915,987
Collection Fund – Parishes
Collection Fund – District
Retained Business Rates (draft)
Revenue Support Grant
Council Tax Freeze (2015/16)
New Homes bonus
Rural Services Delivery Grant
(1,760,520)
(5,307,073)
(3,121,466)
(2,403,933)
(57,912)
(1,683,749)
0
(1,760,520)
(5,307,073)
(3,121,466)
(2,403,933)
(57,912)
(1,683,749)
0
(1,887,810)
(5,473,605)
(3,406,572)
(1,575,147)
0
(2,085,230)
(119,450)
(2,019,957)
(5,367,748)
(3,441,000)
(936,035)
0
(1,806,452)
(209,037)
(2,161,354)
(5,390,589)
(3,475,000)
(535,619)
0
(1,322,000)
(298,624)
(2,312,648)
(5,413,130)
(3,510,000)
(88,359)
0
(1,268,103)
(388,212)
(14,334,653)
(14,334,653)
(14,547,814)
(13,780,229)
(13,183,186)
(12,980,452)
0
0
(898,871)
(229,946)
1,175,255
1,935,535
Contributions to/(from)
Earmarked Reserves:
Capital Projects Reserve
Asset Management
Benefits
Big Society Fund
Broadband
Business Rates Reserve
Coast Protection
Common Training
Economic Development & Tourism
Elections
Enforcement Board
Environmental Health
Grants
Housing
Legal
Local Strategic Partnership
New Homes Bonus Reserve
Organisational Development
Planning Revenue
Restructuring/Invest to save
Contribution to/(from) the General
Reserve
Income from Government Grant
and Taxpayers
(Surplus)/Deficit
119
Appendix B
Assets & Leisure Service Area
Service
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handyman
Parklands
Administration Building Svs
Property Services
Parks & Open Spaces
Foreshore
Community Centres
Sports Centres
Leisure Complexes
Other Sports
Recreation Grounds
Pier Pavilion
Foreshore (Community)
Woodlands Management
Cromer Pier
Public Conveniences
Investment Properties
Leisure
CCTV
Total Net Costs
Capital Charges
Support Service Charges
Support Service Recharges
Net Cost of Service
2014/15
Actual
£
(1,568,609)
13,730
(98,382)
0
(26,731)
(27,561)
379,333
442,357
354,422
120,952
2,473
229,695
292,274
46,159
7,447
95,246
384,111
103,454
(211)
480,582
-56,887
143,965
59,424
2015/16 Base 2016/17 Base
Variance
Budget
Budget
2016/17 Base to
2015/16 Base
£
£
£
(1,410,130)
(1,470,143)
(60,013)
11,041
13,150
2,109
(107,192)
(107,919)
(727)
(50)
(50)
0
(43,802)
(43,687)
115
(30,417)
(30,240)
177
325,949
233,024
(92,925)
454,098
592,958
138,860
335,665
330,590
(5,075)
127,883
128,002
119
6,123
6,099
(24)
173,308
156,060
(17,248)
315,966
314,102
(1,864)
45,921
46,229
308
7,390
7,163
(227)
90,380
90,380
0
364,029
358,205
(5,824)
91,211
92,403
1,192
22,830
22,830
0
477,093
414,251
(62,842)
(96,539)
(106,219)
(9,680)
142,962
92,669
(50,293)
0
0
0
1,377,243
1,303,719
1,139,857
(163,862)
979,719
1,408,348
(1,351,950)
822,768
1,409,217
(1,306,151)
847,402
1,442,407
(1,318,372)
24,634
33,190
(12,221)
2,413,360
2,229,553
2,111,294
(118,259)
120
Appendix B
2015/16
Base
Budget
2016/17
Base
Budget
Variance
£
£
Explanation for Major Variances
£
ASSETS AND LEISURE SERVICE AREA
Car Parking
679,329
Gross Direct Costs
684,452
29,485
(2,089,459)
29,485
(2,154,595)
0
(65,136) (£39,500) - 10% Savings Bid AL1 / AL2 Additional Car Parking Income, (£50,000) Additional Car Parking Income based on usage
(Cash and Credit Card), £17,562 - Reduced
Penalty Charge Notice income, £5,201 Removal of Cromer Budgens Contract
170,810
168,240
(2,570) (£3,290) - Reduced recharges from Property
Services, (£3,600) - Reduction in Internal Audit
recharges
(1,209,835)
(1,272,418)
77,546
(66,505)
55,260
74,776
(61,626)
52,250
66,301
65,400
14,068
(121,260)
20,116
(128,035)
Capital Charges
36,439
46,239
9,800 £9,800 - Additional depreciation charged
following revaluation of properties and capital
expenditure in prior years
Support Service Charges
55,070
64,250
9,180 £4,970 - Increased recharges from Property
Services following restructure.
(15,683)
2,570
Surveyors Allotments
Gross Direct Income
Support Service Charges
(50)
3,370
(50)
3,700
0 No variances
330 No major variances
Net Expenditure
3,320
3,650
330
62,998
(106,800)
2,739
35,840
63,113
(106,800)
2,739
54,300
115
0
0
18,460
(5,223)
13,352
18,575
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Markets
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
Industrial Estates
Gross Direct Costs
Gross Direct Income
Net Expenditure
Handyman
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
Net Expenditure
5,123 £8,230 - 10% Savings Bid AL1 / AL2 - Additional
Repairs and Maintenance expenditure offset by
income, (£7,025) - Reduction in admin fee as a
result of reduced Penalty Charge Notice income
0
(62,583)
(2,770) No major variances
4,879 No major variances
(3,010) (£4,390) - Reduced recharges from Property
Services.
(901)
6,048 No major variances
(6,775) (£4,500) - Additional rental income from
Fakenham Industrial estate following lease
renegotiation in a prior year
18,253
121
No major variances
No variance
No variance
£14,580 - Increased recharges from Property
Services following restructure.
Appendix B
2015/16
Base
Budget
2016/17
Base
Budget
Variance
£
£
£
26,300
26,140
(56,717)
1,696
34,120
(56,380)
1,709
42,160
5,399
13,629
479,948
78,552
480,554
87,379
(153,999)
(247,530)
(93,531) (£50,900) - DWP and Early Help Hub Service
Charge income for Cromer and Fakenham
Connect Offices. (£43,965) - DWP and Early
Help Hub Rental Income. £4,831 - Reduction in
recoverable charges following CAB vacation of
Fakeham Connect. (£3,495) - Additional internal
recharge income for Windmill Canteen Services
156,980
148,140
(8,840) (£3,430) - Reduced recharges from Computer
Network and PC's, (£8,490) - Reduced recharge
from Property Services following restructure,
(£4,380) - Reduced recharge from Creditors
(453,991)
(382,487)
Net Expenditure
107,490
86,056
Property Services
Gross Direct Costs
454,098
592,958
138,860 £115,253 - Salary cost transfers in from other
services following service restructure, £25,760 Inflation and increments on staffing costs, £4,047
- Increase in Pensions Deficit Funding, (£3,258) Transfer of insurance budgets to Industrial
Estates, (£4,692) - Reduction in Engineering
Insurances following reletting of contract
15,000
27,638
151,510
163,060
12,638 £12,638 - Depreciation on Asset Management
system
11,550 (£5,590) - Reduced recharges for Computer
Network and PC's, £9,820 - Increased recharges
for Computer applications team, £4,180 Business Transformation recharges
(620,608)
(783,656)
0
0
ASSETS AND LEISURE SERVICE AREA
Parklands
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
Net Expenditure
Administration Building Svs
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Capital Charges
Support Service Charges
Support Service Recharges
Net Expenditure
Explanation for Major Variances
(160) No major variances
337 No major variances
13 No major variances
8,040 £4,870 - Increased recharges from Property
Services following restructure
8,230
606 No major variances
8,827 £8,827 - Additional depreciation charged
following revaluation of properties and capital
expenditure in prior years
71,504 Recalculation of recharges following direct
service cost amendments
(21,434)
(163,048) (£161,358) - Additional recharges from Property
Services following transfer in from other services
as a result of service restructure.
0
122
Appendix B
2015/16
Base
Budget
2016/17
Base
Budget
Variance
£
£
Explanation for Major Variances
£
ASSETS AND LEISURE SERVICE AREA
Parks & Open Spaces
Gross Direct Costs
350,255
345,180
Capital Charges
Gross Direct Income
50,501
(14,590)
41,446
(14,590)
85,580
109,250
Net Expenditure
471,746
481,286
Foreshore
Gross Direct Costs
127,883
128,002
7,979
48,528
Support Service Charges
Net Expenditure
57,970
193,832
61,910
238,440
3,940 No major variances
44,608
Community Centres
Gross Direct Costs
Capital Charges
Support Service Charges
Net Expenditure
6,123
5,343
8,930
20,396
6,099
5,342
11,700
23,141
(24) No major variances
(1) No major variances
2,770 No major variances
2,745
313,438
298,880
(14,558) (£19,083) - Transfer of staff costs as a result of
Assets & Leisure restructure. £6,500 - Employee
Inflation
(140,130)
12,496
106,030
(142,820)
12,496
104,370
(2,690) No Major Variances
0 Depreciation
(1,660) (£8,930) - Recalculation of staff time following
overall Assets & Leisure restructure. £5,760 Recharge of Business Transformation costs on a
per head basis.
Net Expenditure
291,834
272,926
Leisure Complexes
Gross Direct Costs
Capital Charges
Support Service Charges
Net Expenditure
315,966
311,619
22,420
650,005
314,102
306,998
20,230
641,330
Support Service Charges
Capital Charges
Sports Centres
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
(5,075) (£5,377) - Inflation on grounds maintenance
contract
(9,055) Depreciation of play equipment
0 No Major Variances
23,670 Recalculation of staff time following overall
Assets & Leisure restructure.
9,540
119 No major variances
40,549 £40,549 - Additional depreciation charged on
capital works completed in prior year
(18,908)
(1,864) No Major Variances
(4,621) Depreciation
(2,190) No Major Variances
(8,675)
123
Appendix B
2015/16
Base
Budget
2016/17
Base
Budget
Variance
£
£
Explanation for Major Variances
£
ASSETS AND LEISURE SERVICE AREA
Other Sports
Gross Direct Costs
128,621
128,929
308 £5,620 - Transfer of staff costs. (£7,000) Removal of one-off costs in 2015/16 relating to
Pedal Norfolk Festival.
Gross Direct Income
Support Service Charges
(82,700)
53,800
(82,700)
40,750
Net Expenditure
99,721
86,979
0 No Major Variances
(13,050) (£12,800) - Recalculation of staff time following
overall Assets & Leisure restructure.
(12,742)
Recreation Grounds
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
8,390
79
(1,000)
2,920
8,163
79
(1,000)
7,610
(227)
0
0
4,690
Net Expenditure
10,389
14,852
4,463
Pier Pavilion
Gross Direct Costs
Support Service Charges
Net Expenditure
90,380
12,920
103,300
90,380
14,150
104,530
Foreshore (Community)
Gross Direct Costs
364,029
358,205
Support Service Charges
36,130
32,870
Net Expenditure
400,159
391,075
(5,824) (£5,824) - Inflation on grounds maintenance
contract
(3,260) (£3,750) - Recalculation of staff time following
overall Assets & Leisure restructure.
(9,084)
Woodlands Management
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
116,761
7,501
(25,550)
90,030
117,953
1,346
(25,550)
88,340
1,192
(6,155)
0
(1,690)
Net Expenditure
188,742
182,089
(6,653)
39,320
35,779
39,320
24,795
0 No Major Variances
(10,984) Depreciation
(16,490)
12,340
70,949
(16,490)
11,970
59,595
0 No Major Variances
(370) No Major Variances
(11,354)
Cromer Pier
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Net Expenditure
No Major Variances
No Major Variances
No Major Variances
£4,030 - Recalculation of staff time following
overall Assets & Leisure restructure.
0 No Major Variances
1,230 No Major Variances
1,230
124
No Major Variances
Depreciation
No Major Variances
(£3,980) - Recalculation of staff time following
overall Assets & Leisure restructure.
Appendix B
2015/16
Base
Budget
2016/17
Base
Budget
Variance
£
£
Explanation for Major Variances
£
ASSETS AND LEISURE SERVICE AREA
Public Conveniences
Gross Direct Costs
477,093
414,251
Capital Charges
128,567
144,323
63,657
64,807
Net Expenditure
669,317
623,381
Investment Properties
Gross Direct Costs
116,570
118,490
1,920 (£9,900) - Reduction in NNDR costs for Beach
Huts and Chalets offset by reduction in income
as occupants pay direct. £11,175 - Increase in
premises insurance following reletting of contract.
87,325
64,700
(22,625) (£22,625) - Reduction in depreciation following
revaluations of properties and capital expenditure
in prior years
(213,109)
(224,709)
(11,600) £9,900 - Reduction in Beach Hut rentals to offset
reduced NNDR expenditure. (£7,500) - 10%
Savings Bid AL6 Additional rental income
following proposed rental revisions. (£13,450) 10% Savings Bid AL5 Additional rental income
104,940
118,790
95,726
77,271
143,662
93,369
(50,293) (£53,724) - Transfer of staff costs as a result of
Assets & Leisure restructure.
(700)
88,590
(700)
59,560
0 No Major Variances
(29,030) (£33,700) - Recalculation of staff time following
overall Assets & Leisure restructure.
(231,552)
(152,229)
Net Expenditure
0
0
CCTV
Capital Charges
Net Expenditure
11,668
11,668
2,160
2,160
Support Service Charges
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Leisure
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
(62,842) (£20,686) - Transfer of staffing costs following
restructure of Property Services, (£35,020) - 10%
Savings Bid AL5 Reductions in expenditure,
(£6,150) - Removal of non recurring expenditure
on equipment rental from 15/16
15,756 £15,756 - Additional depreciation on capital
expenditure in prior years
1,150 £6,280 - Additional recharges from Property
Services, (£3,050) - Reduced Creditor
Recharges
(45,936)
13,850 £16,340 - Additional recharges from Property
Services, (£6,010) - Reduced recharges from
Sundry Debtors.
0
(18,455)
79,323 Reduced recharges reflecting lower service costs
0
(9,508) Depreciation
(9,508)
125
Appendix B
2015/16
Base
Budget
£
ASSETS AND LEISURE SERVICE AREA
Gross Direct Costs
4,392,778
Capital Charges
822,768
Gross Direct Income
(3,089,059)
Support Service Charges
1,409,217
Support Service Recharges
(1,306,151)
Net Expenditure
2,229,553
2016/17
Base
Budget
Variance
£
£
4,403,432
847,402
(3,263,575)
1,442,407
(1,318,372)
2,111,294
10,654
24,634
(174,516)
33,190
(12,221)
(118,259)
126
Explanation for Major Variances
Appendix B
Corporate Service Area
Service
Corporate Leadership Team
Legal Services
2015/16 Base
2016/17
Variance
Budget
Base Budget 2016/17 Base to
2015/16 Base
£
£
£
482,544
494,966
470,474
(24,492)
193,710
290,969
294,953
3,984
Total Net Costs
676,254
785,935
765,427
(20,508)
166,089
(842,343)
166,060
(951,995)
201,870
(967,297)
35,810
(15,302)
0
0
0
0
Support Service Charges
Support Service Recharges
2014/15
Actual
Net Cost of Service
127
Appendix B
2015/16
Base
Budget
£
Variance
2016/17
Base
Budget
£
Explanation for Major Variances
£
CORPORATE SERVICE AREA
Corporate Leadership Team
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
Legal Services
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
494,966
470,474
76,740
(571,706)
80,910
(551,384)
0
0
474,799
547,583
(183,830)
(252,630)
89,320
120,960
(380,289)
(415,913)
0
0
0
969,765
(183,830)
166,060
(951,995)
0
1,018,057
(252,630)
201,870
(967,297)
0
48,292
(68,800)
35,810
(15,302)
0
(24,492) £10,463 - Employee Inflation. (£40,000) - 10%
savings bid. £5,045 - Pensions funding adjustment
4,170 No Major Variations
20,322 Reduced recharges reflecting lower service costs
0
72,784 £42,000 - Savings bid CLEG1, staff costs offset by
income £14,758 Employee Inflation. £3,553 Pensions funding adjustment. £12,000 - Transfer
of staff costs from another area
(68,800) (£68,800) - Savings bid for additional external
income CLEG1
31,640 £12,600 - Increased recharges from IT and
Business Transformation. £10,890 - Higher
recharges from Reprographics, Web Team and
Housing Strategy.
(35,624) Detail
128
Appendix B
Community & Economic Development Service Area
Service
2014/15
Actual
£
Health
Arts & Entertainments
General Economic Development
Tourism
Coast Protection
Regeneration Management
Comm & Econ Dev Mgt
Independent Living Team
Hsg Strategy
Community and Localism
Coastal Management
Total Net Costs
64
57,890
191,993
52,836
434,971
261,519
62,885
141,168
(549,202)
(562,534)
175,977
2015/16
2016/17
Variance
Base Budget Base Budget 2016/17 Base to
2015/16 Base
£
£
£
0
0
0
73,550
73,550
0
166,878
163,373
(3,505)
62,338
52,338
(10,000)
370,250
320,950
(49,300)
308,650
204,977
(103,673)
61,619
67,365
5,746
150,762
148,228
(2,534)
(46,492)
5,377
51,869
31,106
31,106
0
145,249
136,370
(8,879)
267,567
1,323,910
1,203,634
(120,276)
Gross Direct Costs - Reffcus
Gross Direct Income - Reffcus
Capital Charges
Support Service Charges
Support Service Recharges
719,541
(482,955)
476,936
1,115,008
(932,281)
4,000,000
(466,046)
516,491
1,336,030
(1,033,554)
745,155
(611,016)
530,210
1,295,740
(987,627)
(3,254,845)
(144,970)
13,719
(40,290)
45,927
Net Cost of Service
1,163,816
5,676,831
2,176,096
(3,500,735)
129
Appendix B
COMMUNITY & ECONOMIC DEVELOPMENT SERVICE AREA
2015/16
Base
Budget
2016/17
Base
Budget
Variance
£
£
£
75,010
211
(1,460)
39,220
75,010
211
(1,460)
32,160
0
0
0
(7,060)
Net Expenditure
112,981
105,921
(7,060)
General Economic Development
Gross Direct Costs
Gross Direct Income
Support Service Charges
252,074
(85,196)
251,770
248,569
(85,196)
214,530
Support
Service Recharges
Net Expenditure
418,648
377,903
Tourism
Gross Direct Costs
62,338
52,338
(10,000) (£10,000) Removal of non recurring item, funded
from Reserves in 2015/16.
Support Service Charges
61,940
49,870
(12,070) This reflects reduced direct costs
Regeneration Management Service.
Net Expenditure
124,278
102,208
(22,070)
Coast Protection
Gross Direct Costs
Gross Direct Income
Capital Charges
Gross Direct Costs - Refcus
370,275
(25)
516,280
320,975
(25)
529,999
265,000
(49,300) ECD1 savings bid
0
13,719 Depreciation
265,000 Reflects the Capital programme in year
(265,000)
(265,000) Reflects the Capital programme in year
Arts & Entertainments
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Gross Direct Income - Refcus
Support Service Charges
Net Expenditure
Regeneration Management
Gross Direct Costs
Support Service Charges
Support Service Recharges
237,090
229,770
1,123,620
1,080,719
308,650
204,977
78,340
(386,990)
89,210
(294,187)
0
0
61,619
6,320
(67,939)
67,365
7,790
(75,155)
0
0
Explanation for Major Variances
No Major Variances
No Major Variances
No Major Variances
(£6,440) - Reduced recharge from Economic
Tourism & Development
(3,505) No Major Variances
0
(37,240) This reflects reduced direct costs
Regeneration Management Service.
0
(40,745)
in the
in the
(7,320) Reduced recharges from Coastal Management
(42,901)
(103,673) (£45,924) Removal of non recurring staff costs
previously funded from Reserves. (£61,660)
Staff transfers to Housing Strategy and Coastal
Management
10,870 No Major Variances
92,803 This reflects reduced direct costs to recharge out
to services supported
Net Expenditure
Comm & Econ Dev Mgt
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
0
5,746 £4,388 Inflation on employee costs.
1,470
(7,216) Higher Direct costs recharged out to services
supported.
0
130
Appendix B
Housing Health and Well Being
Gross Direct Costs
2015/16
Base
Budget
2016/17
Base
Budget
Variance
£
£
£
Explanation for Major Variances
150,762
148,228
(2,534) £3,530 Employee Inflation. (£7,774) Business
Transformation saving from removal of a post.
Gross Direct Costs - Refcus
Gross Direct Income - Refcus
Support Service Charges
500,000
(466,046)
287,460
644,247
(611,016)
257,220
144,247 This reflects expenditure within the Capital
(144,970) Programme.
(30,240) (£16,810) Reduction in Recharge relating to
Improvement Grants (£10,750) Legal services.
Support Service Recharges
Net Expenditure
(215,412)
256,764
(198,858)
239,821
128,508
180,377
Gross Direct Costs - Refcus
3,500,000
100,908
Gross Direct Income
Support Service Charges
(175,000)
189,650
(175,000)
258,010
0
68,360 Staff recharges to housing enabling budget, this
is within the same level 6 code.
Support Service Recharges
(160,314)
(227,947)
Net Expenditure
3,482,844
136,348
(67,633) This reflects increased direct costs recharged
out to services supported.
(3,346,496)
501,206
533,531
(470,100)
(502,425)
Support Service Charges
126,590
102,070
(24,520) (£23,430) - Reduced recharge from Economic
Tourism & Development
Net Expenditure
157,696
133,176
(24,520)
Coastal Management
Gross Direct Costs
155,929
146,910
(10,680)
57,650
(202,899)
(10,540)
55,110
(191,480)
0
0
2,066,371
516,491
(742,461)
4,000,000
(466,046)
1,336,030
(1,033,554)
5,676,831
1,978,280
530,210
(774,646)
745,155
(611,016)
1,295,740
(987,627)
2,176,096
Housing Strategy
Gross Direct Costs
Community and Localism
Gross Direct Costs
Gross Direct Income
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Gross Direct Costs
Capital Charges
Gross Direct Income
Gross Direct Costs - Refcus
Gross Direct Income - Refcus
Support Service Charges
Support Service Recharges
Net Expenditure
16,554
(16,943)
51,869 £57,173 Employee costs transferred from
Regeneration Management. (£33,012) Removal
of non recurring staff costs previously funded
from the New Homes Bonus Reserve. £25,000
Viability study funded from New Homes Bonus
Reserve.
(3,399,092) This reflects expenditure within the Capital
Programme.
32,325 £32,325 - Increase in grants payable from the
Big Society Fund following increase in 2nd
Homes funding.
(32,325) (£32,325) - increase in Norfolk County Council
2nd Homes funding returned.
(9,019) Transfer of staff costs as a result of Assets and
Leisure restructure offset by inflation on salary
and on costs
140 No major variances
(2,540) No major variances
11,419 Reduced recharges reflecting lower service
costs
0
(88,091)
13,719
(32,185)
(3,254,845)
(144,970)
(40,290)
45,927
(3,500,735)
131
Appendix B
Customer Services Service Area
Service
ICT - Support Services
Tic'S
Homelessness
Housing - Service Mgmt
Graphical Info System
Media & Communications
Customer Services - Corporate
Total Net Costs
Capital Charges
Support Service Charges
Support Service Recharges
Net Cost of Service
2014/15
Actual
£
849,798
134,910
6,873
231,675
22,380
113,929
441,551
2015/16
2016/17
Variance
Base Budget Base Budget 2016/17 Base to
2015/16 Base
£
£
£
930,643
999,724
69,081
143,937
94,040
(49,897)
8,650
8,650
0
240,639
240,238
(401)
22,830
0
(22,830)
136,872
142,188
5,316
447,968
538,297
90,329
1,801,116
1,931,539
2,023,137
91,598
151,173
806,326
(2,182,058)
172,373
918,081
(2,409,232)
136,196
1,112,190
(2,645,000)
(36,177)
194,109
(235,768)
576,557
612,761
626,523
13,762
132
Appendix B
CUSTOMER SERVICES SERVICE AREA
2015/16
Base
Budget
£
2016/17
Base
Budget
£
Variance
£
ICT - Support Services
Gross Direct Costs
Capital Charges
931,053
108,044
1,000,134
92,912
Gross Direct Income
Support Service Charges
(410)
74,390
(410)
127,730
(1,113,077)
(1,220,366)
0
0
Support Service Recharges
Net Expenditure
Explanation for Major Variances
69,081 See Note 1 below:
(15,132) (£3,907) - Depreciation. (£11,225) Intangible Amortisation.
0 No Major Variances
53,340 £47,970 - Recharge of Business
Transformation costs mainly on a per head
basis.
(107,289) Increased recharges reflecting higher
service costs
0
Note 1: £22,830 - Transfer of costs of GIS system. £26,987 - Transfer of staff costs from other service areas. £11,826 Employee Inflation. £12,000 - Website integration software costs, funded from the Business Transformation Reserve. (£5,176) Business Transformation savings in the cost of consumables resulting from the introduction of Multi-Functional Devices.
TIC'S
Gross Direct Costs
Capital Charges
181,647
129,250
6,473
6,473
(37,710)
(35,210)
94,100
121,290
244,510
221,803
64,942
87,692
Capital Charges
Gross Direct Income
7,170
(56,292)
6,630
(79,042)
Support Service Charges
352,431
389,440
Net Expenditure
368,251
404,720
Customer Services Housing
Gross Direct Costs
240,639
240,238
98,640
122,670
(339,279)
(362,908)
0
0
Gross Direct Income
Support Service Charges
Net Expenditure
Homelessness
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
(52,397) (£11,000) - CSIT2 Savings bid, partially
offset by income reduction. (£38,123) Transfer of Sheringham TIC to North Norfolk
Railway.
0 Depreciation
2,500 £2,500 - CSIT2 Savings bid. (£38,123) Transfer of Sheringham TIC to North Norfolk
Railway from 2015/16
27,190 £25,060 - Recharge of Business
Transformation costs mainly on a per head
basis.
(22,707)
22,750 Increased Homelessness Accommodation
costs including Bed and Breakfast charges,
this will be offset by additional recoverable
income.
(540)
(22,750) Recoverable income on homelessness
temporary accommodation.
37,009 £10,770 Legal Services, £20,560 Customer
services Housing (staff Time).
36,469
(401) £4,333 Employee Inflation. (£7,089)
Business Transformation saving from
removal of a post.
24,030 £24,000 New Charges from Business
Transformation.
(23,629) Increased costs recharged to services
supported.
0
133
Appendix B
2015/16
Base
Budget
£
Graphical Info System
Gross Direct Costs
2016/17
Base
Budget
£
Variance
Explanation for Major Variances
£
22,830
(22,830) Transferred to IT Support Services
Support Service Charges
Support Service Recharges
Net Expenditure
620
(23,450)
0
0
(620) Transferred to IT Support Services
23,450 Transferred to IT Support Services
0
Media & Communications
Gross Direct Costs
144,372
149,688
Capital Charges
12,000
12,000
Gross Direct Income
Support Service Charges
(7,500)
19,920
(7,500)
20,060
(168,792)
(174,248)
0
0
Support Service Recharges
Net Expenditure
5,316 See Note 1 below:
0 £12,000 - Depreciation.
0 No Major Variances
140 (£3,480) - Computer Applications Team
charges are lower.
(5,456) Increased recharges reflecting higher
service costs
0
Note 1: £32,928 - Increase in lease rental costs. This reinstates the full cost following a period of being charged a peppercorn
lease, pending a wider review of the Council's printing requirements. (£25,000) - Savings bid CSIT3. (£5,000) - Business
Transformation savings in contract costs following the introduction of Multi-Functional Devices.
Customer Services - Corporate
Gross Direct Costs
477,038
567,367
Gross Direct Income
Capital Charges
(29,070)
38,686
(29,070)
18,181
Support Service Charges
277,980
331,000
(764,634)
(887,478)
0
0
0
2,062,521
172,373
(130,982)
918,081
(2,409,232)
612,761
2,174,369
136,196
(151,232)
1,112,190
(2,645,000)
626,523
111,848
(36,177)
(20,250)
194,109
(235,768)
13,762
Support Service Recharges
Net Expenditure
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
90,329 £21,828 - Employee Inflation. £19,147 Staffing costs funded from reserves as part
of Business Transformation. £46,622 - Staff
costs that are part of Planning BPR, offset
by savings in other service areas.
0 No Major Variances
(20,505) Intangible Amortisation, no depreciation
charge in 2016/17.
53,020 £56,290 - Recharge of Business
Transformation costs mainly on a per head
basis. (£14,190) - Lower recharge from
Revenues & Benefits Management.
(122,844) Increased recharges reflecting higher
service costs
134
Appendix B
Environmental Health Service Area
Service
Commercial Services
Rural Sewerage Schemes
Travellers
Licensing
Street Naming
Pest Control
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection and Disposal
Cleansing
Environmental Strategy
Community Safety
Civil Contingencies
2014/15
Actual
£
356,879
360,844
(1,296)
(41,840)
16,849
8,901
362,578
32,165
140,560
802,537
656,817
20,192
(11,208)
107,515
2015/16
2016/17
Variance
Base Budget Base Budget 2016/17 Base to
2015/16 Base
£
£
£
330,540
340,972
10,432
370,315
376,504
6,189
0
1,355
1,355
(4,261)
3,360
7,621
24,797
24,341
(456)
10,507
10,974
467
405,093
427,072
21,979
37,457
38,161
704
135,295
138,550
3,255
774,504
591,951
(182,553)
612,292
584,411
(27,881)
10,000
8,000
(2,000)
21,403
22,229
826
93,945
95,445
1,500
Total Net Costs
2,811,493
2,821,887
2,663,325
(158,562)
Gross Direct Costs - Reffcus
Gross Direct Income - Reffcus
Capital Charges
Support Service Charges
Support Service Recharges
403,826
(403,826)
268,218
727,026
(193,362)
220,000
(220,000)
465,871
772,370
(192,414)
40,000
(40,000)
462,081
810,370
(218,065)
(180,000)
180,000
(3,790)
38,000
(25,651)
Net Cost of Service
3,613,375
3,867,714
3,717,711
(150,003)
135
Appendix B
2015/16
Base
Budget
£
ENVIRONMENTAL HEALTH SERVICE AREA
2016/17
Base
Budget
Variance
£
£
Explanation for Major Variances
Commercial Services
Gross Direct Costs
Gross Direct Income
Support Service Charges
352,975
(22,435)
141,100
363,407
(22,435)
156,500
10,432 Inflation on staffing costs
0
15,400 The major changes relate to recharges of
£6,340 from Business Transformation and
£3,110 Computer applications and network,
£3,090 Environmental Health & Services.
Net Expenditure
471,640
497,472
25,832
Rural Sewerage Scheme
Gross Direct Costs
370,315
376,504
360
440
370,675
376,944
Support Service Charges
Net Expenditure
Travellers
Gross Direct Costs
6,189 Inflation on Internal Drainage Board (IDB)
Rates and Levies.
80 No major variances
6,269
4,000
5,355
(4,000)
220,000
(220,000)
97,800
2,160
(4,000)
40,000
(40,000)
97,800
1,430
99,960
100,585
166,924
164,545
(171,185)
(161,185)
Support Service Charges
94,580
108,040
13,460 The major changes relate to recharges of
£3,990 from Legal Services, £3,740
Customer Services, £2,110 Business
Transformation and £3,250 Environmental
Health & Services.
Net Expenditure
90,319
111,400
21,081
Street Naming
Gross Direct Costs
24,797
24,341
(456) No major variances
7,565
1,200
7,565
610
0
(590) No major variances
33,562
32,516
Gross Direct Income
Gross Direct Costs - Refcus
Gross Direct Income - Refcus
Capital Charges
Support Service Charges
Net Expenditure
Licensing
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
Net Expenditure
1,355 No major variances
0
(180,000) Reflects the Capital programme in year
180,000 Reflects the Capital programme in year
0
(730) No major variances
625
(2,379) (£15,000) Taxi testing contract offset by a
loss of income; £5,000 CRB/DBS checks;
£5,718 inflation on staffing costs incremental increases and increased
National Insurance contributions costs
10,000 Loss of income to reflect amended
charging structure for taxi licensing
(1,046)
136
Appendix B
2015/16
Base
Budget
£
ENVIRONMENTAL HEALTH SERVICE AREA
Pest Control
15,452
Gross Direct Costs
2016/17
Base
Budget
Variance
£
£
Explanation for Major Variances
15,919
467 No major variances
0
261
1,000 No major variances
1,728
Gross Direct Income
Capital Charges
Support Service Charges
(4,945)
1,045
5,020
(4,945)
1,306
6,020
Net Expenditure
16,572
18,300
Environmental Protection
Gross Direct Costs
Capital Charges
416,148
3,600
437,127
0
Gross Direct Income
(11,055)
(10,055)
Support Service Charges
141,110
159,630
18,520 The major changes relate to recharges of
£6,650 from Legal Services, £8,350
Customer Services, £4,870 Business
Transformation, £3,130 Environmental
Health & Services and £3,250
Environmental Health & Services offset by
reduced costs of (£11,670) for Computers.
Net Expenditure
549,803
586,702
36,899
Dog Control
Gross Direct Costs
38,457
39,161
Gross Direct Income
Capital Charges
Support Service Charges
(1,000)
1,567
21,280
(1,000)
1,306
27,410
0
(261)
6,130 The major change relates to recharges of
£2,990 for Legal Services
Net Expenditure
60,304
66,877
6,573
135,945
138,550
2,605 Inflation on staffing costs
6,709
(650)
33,385
26,676 Depreciation on IT system
650 No major variances
50,410
46,130
(4,280) Reduced costs for Fakenham Connect due
to additional income from rental of office
space to DWP
(192,414)
(218,065)
0
0
Env Health - Service Mgmt
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
20,979 Inflation on staffing costs
(3,600) Depreciation
1,000 No major variances
704 No major variances
(25,651) Higher recharges reflecting higher service
costs
0
137
Appendix B
2015/16
Base
Budget
£
ENVIRONMENTAL HEALTH SERVICE AREA
Waste Collection and Disposal
Gross Direct Costs
3,584,409
Capital Charges
339,868
Gross Direct Income
Support Service Charges
Net Expenditure
2016/17
Base
Budget
Variance
£
£
3,373,878
316,061
(2,809,905)
(2,781,927)
231,090
229,100
1,345,462
1,137,112
Explanation for Major Variances
(210,531) See Note A below:
(23,807) Depreciation
27,978 See Note B below:
(1,990) The major changes relate to lower
recharges of (£29,690) from Sundry
Debtors and £22,760 from Customer
Services.
(208,350)
Note A: Significant variances include (£79,372) Inflation and efficiency savings on the Kier contract; (£150,000) amendment to
the Kier contract for the loss of the transfer station which is offset by a loss of income; (£64,500) EH4 savings bid; £5,495
transfer of night soil costs from Cleansing; £10,100 additional trade waste disposal costs; £56,550 Inflation and additional costs
for processing of recyclable waste; £7,500 Contribution to the Norfolk Waste Partnership
Note B: (£25,320) EH4 savings bid; (£28,720) EH5 savings bid; (£5,000) additional bulky waste income; (£17,890) additional
garden bin income; (£56,092) additional income from recycling credits and sale of textiles; £160k loss of income from transfer
recharge.
Cleansing
Gross Direct Costs
655,043
629,373
Gross Direct Income
(42,751)
(44,962)
0
20,120
4,658
15,060
Net Expenditure
632,412
604,129
Environmental Strategy
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
20,000
(10,000)
7,717
11,430
19,000
(11,000)
0
6,760
29,147
14,760
Capital Charges
Support Service Charges
Net Expenditure
(25,670) (£5,495) Transfer of night soil costs to
Domestic waste collections; (£14,326)
Inflation and ongoing efficiency savings on
the Kier contract; (£6,000) EH4 savings bid
(2,211) Additional income from dog and litter bin
recharges
4,658 Depreciation
(5,060) Lower recharge from Sundry Debtors
(28,283)
(1,000) EH2 savings bid
(1,000) EH2 savings bid
(7,717)
(4,670) (£4,490) Lower recharges from Computer
Network and PCs.
(14,387)
138
Appendix B
2015/16
Base
Budget
£
ENVIRONMENTAL HEALTH SERVICE AREA
Community Safety
Gross Direct Costs
2016/17
Base
Budget
Variance
£
£
Explanation for Major Variances
21,403
22,229
826 No major variances
570
370
(200) No major variances
Net Expenditure
21,973
22,599
Civil Contingencies
Gross Direct Costs
93,945
95,445
Support Service Charges
51,940
52,870
145,885
148,315
2,430
5,899,813
220,000
465,871
(3,077,926)
(220,000)
772,370
(192,414)
3,867,714
5,704,834
40,000
462,081
(3,041,509)
(40,000)
810,370
(218,065)
3,717,711
(194,979)
(180,000)
(3,790)
36,417
180,000
38,000
(25,651)
(150,003)
Support Service Charges
Net Expenditure
Gross Direct Costs
Gross Direct Costs - Refcus
Capital Charges
Gross Direct Income
Gross Direct Income - Refcus
Support Service Charges
Support Service Recharges
Net Expenditure
626
1,500 (£2,800) EH6 savings bid, offset by inflation
on staffing costs
930 No major variances
139
Appendix B
Finance Service Area
Service
Local Taxation
Benefits
Discretionary Rate Relief
Non Distributed Costs
Benefits & Revenues Mgmt
Corporate Finance
Internal Audit
Central Costs
Corporate & Democratic Core
Total Net Costs
IAS 19 Adjustment
Capital Charges
Support Service Charges
Support Service Recharges
Net Cost of Service
2014/15
Actual
£
60,687
215,308
108,788
287,335
33,504
469,172
87,343
45,910
494,012
2015/16
2016/17
Variance
Base Budget Base Budget 2016/17 Base to
2015/16 Base
£
£
£
117,929
135,894
17,965
387,919
399,121
11,202
92,471
80,148
(12,323)
289,815
263,692
(26,123)
74,197
47,495
(26,702)
480,397
496,823
16,426
94,000
94,000
0
41,279
54,960
13,681
554,333
610,132
55,799
1,802,059
2,132,340
2,182,265
49,925
(282,335)
31,638
2,526,038
(1,434,312)
(289,815)
101,208
2,655,855
(1,555,538)
(263,692)
129,272
2,727,870
(1,782,470)
26,123
28,064
72,015
(226,932)
2,643,088
3,044,050
2,993,245
(50,805)
140
Appendix B
2015/16 Base 2016/17 Base
Budget
Budget
£
£
Variance
Explanation for Major Variances
£
FINANCE SERVICE AREA
Local Taxation
Gross Direct Costs
21,514 £19,158 Employee inflation. £2,758
Employee costs funded from reserves.
545,161
566,675
15,000
0
(427,232)
(430,781)
Support Service Charges
417,000
402,180
(14,820) Main variance relates to ICT Recharge
(£28,990)
Net Expenditure
549,929
538,074
(11,855)
23,550,892
29,246,955
78,728
118,371
(23,162,973)
(28,847,834)
563,580
507,300
1,030,227
1,024,792
Discretionary Rate Relief
Gross Direct Costs
92,471
80,148
(12,323) Reduction in line with actual Council Tax
Support Grant funding reductions.
Support Service Charges
Support
Service Recharges
Net Expenditure
2,580
95,051
2,240
82,388
(340) No Major Variances
0
(12,663)
289,815
263,692
(289,815)
290
290
(263,692)
260
260
74,197
7,950
(82,147)
0
47,495
7,150
(54,645)
0
Capital Charges
Gross Direct Income
Benefits
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Support
Service Recharges
Net
Expenditure
Non Distributed Costs
Gross Direct Costs
IAS 19 Adjustment
Support Service Charges
Net Expenditure
Benefits & Revenues Mgmt
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
141
(15,000) Due to low interest rates no payments
made relating to business rate
overpayments.
(3,549) (£8,549) Collection Fund allowance in line
with current budget. £15,000 Contra with
Capital Charge re Interest on Business
rate overpayments. (£10,000) Additional
court costs awarded.
5,696,063 £30,413 Employee Inflation. £7,047 IAS
19 Pension adjustment. £5,699,308 Rent
allowance payments in line with 2015/16
mid year estimate, this is offset by
Subsidy. (£20,000) Staffing savings
agreed in previous year. (£5,000) F2
Savings bid 2016/17.
39,643 This reflects the Capital Programme.
(5,684,861) (£5,699,308) Department of Works and
Pensions subsidy on rent allowance
payments.
(56,280) Main variances relate to (£26,330)
Customer Services, (£41,020) ICT
recharges.
0
(5,435)
(26,123) (£21,105) - Removal of one-off actuarial
strain costs in 2015/16. (£5,130) Reduced Added Years costs.
26,123 (£26,123) - Pension Fund adjustments
(30) No Major Variations
(30)
(26,702) (£25,000) F2 savings Bid
(800)
27,502
0
Appendix B
2015/16 Base 2016/17 Base
Budget
Budget
£
£
Variance
Explanation for Major Variances
£
FINANCE SERVICE AREA
Corporate Finance
Gross Direct Costs
480,397
496,823
Capital Charges
Support Service Charges
7,480
249,110
10,901
127,250
(736,987)
(634,974)
0
0
94,000
8,590
(102,590)
0
94,000
8,380
(102,380)
0
41,279
54,960
290,040
346,390
(331,319)
(401,350)
0
0
554,333
610,132
55,799 £13,552 - Transfer of staff costs from
other service areas. £72,750 Expenditure relating to Business
Transformation, funded from earmarked
reserves. (£25,805) - Bank Charges.
(£11,000) - External audit fees. The
balance consists of minor variances.
Support Service Charges
1,116,715
1,326,720
210,005 £217,245 - Recharges from IT relating to
Business Transformation. (£17,490) Reduced recharges from Corporate
Leadership Team.
Support Service Recharges
(302,495)
(589,121)
Net Expenditure
1,368,553
1,347,731
25,722,545
101,208
(23,590,205)
(289,815)
2,655,855
(1,555,538)
3,044,050
31,460,880
129,272
(29,278,615)
(263,692)
2,727,870
(1,782,470)
2,993,245
Support Service Recharges
Net Expenditure
Internal Audit
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
Central Costs
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
Corporate & Democratic Core
Gross Direct Costs
Gross Direct Costs
Capital Charges
Gross Direct Income
IAS19 Pension Adjustment
Support Service Charges
Support Service Recharges
Net Expenditure
142
16,426 £11,437 Employee Inflation £5,222 IAS 19
Pension adjustment.
3,421
(121,860) Main variances include (£50,240)
reduction in ICT recharge. (£53,050)
Legal Services relating to Sundry income.
102,013 Net reduction in costs to recharge out to
services supported.
0
0 No Major Variations
(210) No Major Variations
210 No Major Variations
0
13,681 £13,440 - Employee inflation
56,350 £72,540 - Increased Admin Buildings
Charge re meeting rooms and other nonservice areas. (£13,320) - Fakenham
Connect recharges are lower because
office space is now being rented out.
(70,031) Increased recharges reflecting higher
service costs
0
(286,626) Increased recharges reflecting higher
service costs
(20,822)
5,738,335
28,064
(5,688,410)
26,123
72,015
(226,932)
(50,805)
Appendix B
Organisational Development Service Area
Service
Personnel & Payroll Supp Svs
Insurance & Risk Management
Policy & Performance Mgt
Registration Services
Members Services
Web Team
2014/15
Actual
£
329,088
170,067
49,168
157,866
410,290
187,947
2015/16
2016/17
Variance
Base Budget Base Budget 2016/17 Base to
2015/16 Base
£
£
£
349,628
316,837
(32,791)
178,808
178,227
(581)
56,340
58,241
1,901
265,632
165,944
(99,688)
423,779
481,066
57,287
225,016
235,928
10,912
Total Net Costs
1,304,426
1,499,203
1,436,243
(62,960)
Capital Charges
Support Service Charges
Support Service Recharges
2,500
476,007
(946,917)
10,000
473,650
(1,034,632)
62,600
516,810
(1,053,643)
52,600
43,160
(19,011)
836,016
948,221
962,010
13,789
Net Cost of Service
143
Appendix B
2015/16
2016/17
Base
Base
Budget
Budget
£
£
ORGANISATIONAL DEVELOPMENT SERVICE AREA
Variance
£
Personnel & Payroll Supp Svs
Gross Direct Costs
350,628
317,837
Gross Direct Income
Support Service Charges
(1,000)
111,810
(1,000)
109,380
(461,438)
(426,217)
0
0
Support Service Recharges
Net Expenditure
Explanation for Major Variances
(32,791) See Note 1 below:
0 No Major Variances
(2,430) (£15,520) - Reduced recharges from
IT. £8,520 - Increased recharges from
Internal Audit
35,221 Reduced recharges reflecting lower
service costs
0
Note 1: £11,642 - Transfer back from Registration Services of one-off staff budgets required in 15/16 for staffing resources
required for the conduct of the District election and Implementing Individual Electoral Registration (IER) £6,674 Employee Inflation. (£54,448) - Savings bid ORG2. £3,076 - Pensions funding adjustment.
Insurance & Risk Management
Gross Direct Costs
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
179,458
(650)
16,160
(194,968)
0
178,877
(650)
16,530
(194,757)
0
56,340
26,810
(83,150)
58,241
20,420
(78,661)
0
0
Registration Services
Gross Direct Costs
Gross Direct Income
Support Service Charges
304,352
(38,720)
138,090
204,664
(38,720)
155,890
(99,688) See Note 1 below:
0 No Major Variances
17,800 £27,330 - Increased recharge from
Customer Services. (£14,080) Reduced recharge from IT
Net Expenditure
403,722
321,834
(81,888)
Policy & Performance Mgt
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
(581)
0
370
211
0
No Major Variances
No Major Variances
No Major Variances
No Major Variances
1,901 No Major Variances
(6,390) No Major Variances
4,489 Reduced recharges reflecting lower
service costs
0
Note 1: (£11,642) - Transfer back to Common Training within Personnel & Payroll Support Services of one-off staffing
resources required for the District election and IER costs in 2015/16. £2,030 - Employee Inflation. (£90,000) - Removal of
one-off District council election costs in 2015/16.
Members Services
Gross Direct Costs
424,179
481,466
Capital Charges
Gross Direct Income
Support Service Charges
2,500
(400)
118,220
2,500
(400)
156,610
57,287 £5,034 - Employee Inflation. £53,000 Changes to Allowances scheme.
0 No Major Variances
0 No Major Variances
38,390 £47,210 - Increased recharges from IT.
(£14,700) - Reduced recharges from
Legal Services.
544,499
640,176
95,677
225,016
235,928
10,912 (£6,420) - Removal of one-off salary
costs funded from reserve in 2015/16.
£17,156 - Employee Inflation.
7,500
60,100
52,600 £60,100 - Intangible Amortisation.
62,560
57,980
(4,580) (£3,480) - Computer Applications
Team charges are lower.
(295,076)
(354,008)
0
0
0
1,539,973
10,000
(40,770)
473,650
(1,034,632)
948,221
1,477,013
62,600
(40,770)
516,810
(1,053,643)
962,010
(62,960)
52,600
0
43,160
(19,011)
13,789
Web Team
Gross Direct Costs
Capital Charges
Support Service Charges
Support Service Recharges
Net Expenditure
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
(58,932) Increased recharges reflecting higher
service costs
144
Appendix B
Planning Service Area
Service
Development Management
Major Development
Planning Policy
Conservation & Design
Landscape
Building Control & Access
Planning Mgt & Comm Support
Local Land Charges
Total Net Costs
2014/15
Actual
(57,225)
177,528
39,542
63,748
(139,687)
395,230
103,287
2015/16
2016/17
Variance
Base Budget Base Budget 2016/17 Base to
2015/16 Base
£
£
£
56,813
48,230
(8,583)
170,421
200,716
30,295
228,637
425,470
196,833
90,318
89,469
(849)
0
0
0
(44,540)
(29,472)
15,068
242,198
171,951
(70,247)
98,039
5,880
(92,159)
582,423
841,886
912,244
70,358
Capital Charges
Support Service Charges
Support Service Recharges
49,829
957,417
(496,123)
23,031
950,327
(368,378)
42,044
1,002,626
(292,351)
19,013
52,299
76,027
Net Cost of Service
1,093,546
1,446,866
1,664,563
217,697
145
Appendix B
PLANNING SERVICE AREA
2015/16
Base
Budget
£
Development Management
Gross Direct Costs
Variance
2016/17
Base
Budget
£
Explanation for Variance
£
735,433
803,850
23,031
42,044
(678,620)
(755,620)
Support Service Charges
435,280
455,720
20,440 (£44,560) recharges from Planning Support
following BPR work. £13,510 Strategic
Housing, £14,090 Business Transformation
projects, £21,540 Legal Services.
Net Expenditure
515,124
545,994
30,870
Major Development
Gross Direct Costs
170,421
200,716
30,295 £18,819 Employee Inflation. (£22,504) Net
Movement in staffing funded from Reserves.
15,570
55,710
40,140 This variance is m ade up of a number of
smaller variances tha largest of which relates
to £7,940 Business Transformation.
Net Expenditure
185,991
256,426
Planning Policy
Gross Direct Costs
228,637
425,470
196,833 £10,753 Employee Inflation. £82,944
Additional Planning Officers for undertaking
the Local Plan Review these are funded from
the New Homes Bonus reserve. £100,000
profiled spend on the Local plan Review
funded from the New Homes Bonus
22,987
65,116
42,129 This reflects change in management for Land
Charge and Street Naming and Numbering
services.
251,624
490,586
Conservation & Design
Gross Direct Costs
90,318
89,469
(849) £8,655 Employee Inflation. (£4,000)
Biodiversity contribution previously funded
from reserves. (£6,171) Staffing costs
allocated to other services.
Support Service Charges
134,720
111,860
(22,860) (£17,820) Reduction in costs recharged from
Planning support following BPR work.
Net Expenditure
225,038
201,329
(23,709)
Building Control & Access
Gross Direct Costs
316,505
331,573
(361,045)
132,470
(361,045)
133,100
87,930
103,628
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Charges
Net Expenditure
Gross Direct Income
Support Service Charges
Net Expenditure
68,417 £5,441 IAS Pension Adjustment. £19,295
Employee Inflation. (£30,910) Non recurring
Staff costs. £42,924 Temporary Enforcement
post funded from the Planning Reserve.
£15,798 Staffing costs offset by savings in
Planning Support. £11,579 Staff allocations
from other planning services.
19,013 This reflects expenditure in the updated capital
programme.
(77,000) Additional income offset by an increase in
staffing costs.
70,435
238,962
15,068 £13,881 Employee Inflation. £2,318 Employers
Professional Indemnity Insurance.
0
630 Increase Legal, Increase Business
Transformation, Decrease Planning
Management & Sundry Debtors
146
15,698
Appendix B
PLANNING SERVICE AREA
2015/16
Base
Budget
£
Variance
2016/17
Base
Budget
£
£
147
Explanation for Variance
Appendix B
PLANNING SERVICE AREA
2015/16
Base
Budget
£
Planning Mgt & Comm Support
Gross Direct Costs
Support Service Charges
Support Service Recharges
Net Expenditure
Property Information
Gross Direct Costs
Gross Direct Income
Support Service Charges
Net Expenditure
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Support Service Recharges
Net Expenditure
Variance
2016/17
Base
Budget
£
Explanation for Variance
£
242,198
171,951
126,180
(368,378)
120,400
(292,351)
0
0
236,039
190,880
(138,000)
(185,000)
83,120
60,720
181,159
66,600
(114,559)
2,019,551
23,031
(1,177,665)
950,327
(368,378)
1,446,866
2,213,909
42,044
(1,301,665)
1,002,626
(292,351)
1,664,563
194,358
19,013
(124,000)
52,299
76,027
217,697
(70,247) £33,948 ICT Business Support post funded
from additional Fee income. (£114,341) P1
Business Transformation Savings.
(5,780)
76,027 Reduced costs recharged to services
supported.
0
(45,159) (£26,987) - Staff costs transferred to ICT
Support Services
(47,000) The original base budget assumed that some
land charge functions would transfer to Land
Registry during 2015/16, this is now unlikely
until 2017/18.
(22,400) (£22,730) ICT recharge
148
Appendix C
Summary of Savings Bids 2016/17 Onwards
Ref.
Service
Savings Title
Brief Outline of Saving/Additional Income (where
applicable)
2016/17
Savings
/Income
2017/18
2018/19
Savings
Savings
/Income
/Income
Figures amended on 2-12-15
ASSETS & LEISURE
Assets &
Leisure
This proposal relates to the development of the hard
North Lodge Park, standing at North Lodge Park in Cromer to a car park. The
Cromer
proposed development would provide approximately 55
spaces. (Dependant upon capital bid).
AL2
2019/20
Savings
/Income
(21,333)
(32,665)
(32,665)
(32,665)
Assets &
Leisure
Car Parks Fakenham Car
Park - Community
Centre
This proposal relates to bringing the community centre at
Fakenham into the Car Park Order (CPO) to enable the site
to become pay and display. The car park already has a hard
surface with approximately 25 spaces already laid marked
out, this proposal only requires a change to the CPO and the
installation of a car park ticket machine.
(5,400)
(5,400)
(5,400)
(5,400)
AL3
Assets &
Leisure
The proposal relates to the potential redevelopment of the
Council owned site at Grove Lane in Holt, possibly for a
Grove Lane, Holt residential development scheme. This is dependant upon an
redevelopment
options appraisal and therefore nothing assumed until
2017/18.
0
(27,810)
(27,810)
(27,810)
AL5
Assets &
Leisure
Public
conveniences Review
This proposal relates to the potential redevelopment of a
number of the Council's public conveniences. (Dependant
upon capital bid).
(31,575)
(73,925)
(75,925)
(78,925)
AL6
Assets &
Leisure
Beach Hut Fees
and Charges
This proposal relates to the review of Beach Hut Fee Income
(7,500)
(20,000)
(32,500)
(45,000)
AL8
Assets &
Leisure
Contract Savings
This proposal relates to the review of Contract Management
Agreements, with the intention to reduce down the subsidy.
0
(27,533)
(82,600)
(82,600)
(65,808)
(187,333)
(256,900)
(272,400)
(26,800)
(26,800)
(26,800)
(26,800)
(40,000)
0
0
0
(66,800)
(26,800)
(26,800)
(26,800)
(50,000)
(50,000)
(50,000)
(50,000)
AL1
SUB TOTAL ASSETS & LEISURE
eastlaw continue to sell services to partner organisations.
The service is developing new products to sell into the
CLEG1
CLT /
Local Government market such as a social housing fraud product. The bid is for
CORPORATE
Lawyer
an additional post to deliver capacity in key client areas for
(LEGAL)
eastlaw and thereby produce income which will cover both
the cost of the post and deliver a net income.
CLT
Corporate
Shared Services Dependant upon business case and interim arrangements.
SUB TOTAL CLT /other Corporate Areas
COMMUNITY & ECONOMIC DEVELOPMENT
ECD1
Economic Dev
Coastal
Management
Revenue Works
Reduction in coastal defence revenue budget (currently
£350,000 pa) by £50,000, which would maintain essential
maintenance and existing repairs, maintenance and other
coastal asset works, (either as an injection at the start of the
period or on an annual basis) and replace by capital funds
and accessing third party contributions to small-scale coast
defence works, for grant supported schemes.
ECD2
Economic Dev
Tourism
Development &
Destination
Marketing
Review of Service Delivery.
0
(12,000)
(12,000)
(12,000)
ECD3
Economic Dev
Economic Growth Review of Service Delivery.
0
(55,000)
(55,000)
(55,000)
149
Appendix C
Summary of Savings Bids 2016/17 Onwards
Ref.
ECD4
Service
Savings Title
Brief Outline of Saving/Additional Income (where
applicable)
Economic Dev
Miscellaneous
Contributions
Review and renegotiating of external contributions.
SUB TOTAL ECONOMIC DEVELOPMENT
2016/17
Savings
/Income
2017/18
Savings
/Income
2018/19
Savings
/Income
2019/20
Savings
/Income
(10,000)
(10,000)
(10,000)
(10,000)
(60,000)
(127,000)
(127,000)
(127,000)
CUSTOMER SERVICES & ICT
CSIT1
CUSTOMER
SERVICES &
ICT
In line with similar changes to service provision in Wells &
NNIC - alternative Sheringham, review options around delivery of NNIC
service provider function to another service provider in Cromer for a
commercial use.
0
(43,000)
(43,000)
(43,000)
CSIT2
CUSTOMER
SERVICES &
ICT
Holt TIC In line with similar changes to service provision in Wells &
Alternative service Sheringham, review options around delivery of Holt TIC
provider
function to another service provider in Holt.
(8,500)
(17,000)
(17,000)
(17,000)
CSIT3
CUSTOMER
SERVICES &
ICT
(25,000)
(50,000)
(50,000)
(50,000)
(33,500)
(110,000)
(110,000)
(110,000)
(2,000)
(5,000)
(10,000)
(10,000)
(3,826)
(33,600)
(70,000)
(70,000)
(114,540)
(152,720)
(152,720)
(152,720)
(10,000)
(10,000)
(10,000)
(10,000)
(2,800)
(2,800)
(2,800)
(2,800)
(133,166)
(204,120)
(245,520)
(245,520)
Revision of
Reprographics
Services
Alter the service delivery approach of the Reprographics
Service to reduce the requirement for printing hardware and
reduce costs of print & mail activity by accessing web based
services.
SUB TOTAL CUSTOMER SERVICES & ICT
ENVIRONMENTAL HEALTH
EH2
Environmental
Health
Green Build
Green build is run each September to promote sustainable
living and to promote Council activity and services. It is
proposed to review this budget to make the event cost
neutral to the Council from a mixture of savings and
generating additional income from the event.
EH3
Environmental
Health
Staffing Costs
Review Service allowing for efficiencies through Business
Process Review (BPR) and agile working.
EH4
Environmental
Health
EH5
Removal of
Exemption from
Commercial
Environmental
Health
Waste Charges for
Charitable
Residential Homes
EH6
Environmental
Health
Additional income from chargeable services related to waste
collections (£58,720). Review of the night soil collection
Waste & related
service (£8,000). Removal of annual budget (£86,000)
Services Review
allocated to the Waste and Related Services Contract to be
funded from reserves as a one off if required.
Review of cabinet decision in February 2004 to exempt
certain classes of commercial property from charges for
collection of commercial waste. The Controlled Waste
Regulations (2012) increased the cost to the Council of these
exemptions as disposal costs are now included.
Civil
Contingencies
budget savings
SUB TOTAL ENVIRONMENTAL HEALTH
150
Appendix C
Summary of Savings Bids 2016/17 Onwards
Brief Outline of Saving/Additional Income (where
applicable)
2016/17
Savings
/Income
2017/18
Savings
/Income
2018/19
Savings
/Income
2019/20
Savings
/Income
Service
Savings Title
F1
Finance
LCTS
Review current Local Council Tax Support Scheme consultation during 2016/17 for charges with effect from
April 2017.
0
(40,000)
(40,000)
(40,000)
F2
Finance
Vacant Post
Review
Review and rationalisation of currently held vacant posts
within the revenues and benefits services.
(30,000)
(90,000)
(90,000)
(90,000)
F3
Finance
Service Review
0
(35,000)
(35,000)
(35,000)
(30,000)
(165,000)
(165,000)
(165,000)
0
(48,055)
(48,055)
(48,055)
(54,448)
(33,421)
(33,421)
(33,421)
(54,448)
(81,476)
(81,476)
(81,476)
(53,000)
(73,000)
(73,000)
(73,000)
SUB TOTAL PLANNING
(53,000)
(73,000)
(73,000)
(73,000)
TOTAL - ALL SERVICES
(496,722)
(974,729)
(1,085,696)
(1,101,196)
Ref.
FINANCE
Internal service reviews of processes and ways of working,
linking service reviews to the BPR and opportunities for
charges.
SUB TOTAL FINANCE
ORGANISATIONAL DEVELOPMENT
General staff review and restructuring across Organisational
Development services
ORG1
Organisational
Development
Service Reviews
ORG2
Organisational
Development
Shared Service To operate a shared HR Service includes either sharing or
(HR and Payroll) running external payrolls.
SUB TOTAL ORGANISATIONAL DEVELOPMENT
PLANNING
P1
Planning
Business cases currently out to consultation.
151
Appendix D
Assets & Leisure Service Area
V
2015/16
2016/17
A
Charge
Proposed
T
£:p
£:p
- Runton Road
- Beach Road
- Cart Gap
- Beach Road
- Pauls Lane
- Clink Road
- Beach Road
- Station Road
- Stearmans Yard
- Beach Road
All day ticket for above
T
T
T
T
T
T
T
T
T
T
50p for 30
minutes only,
£1.20 per hour
thereafter
- Cadogan Road
- Meadow
- Promenade (Disabled only)
- Albert Street
- Station Road
- Chequers
- Morris Street
- Staithe Street
T
T
50p for 30
T
minutes only,
T £1.00 for the first
T
hour, 70p per
T hour thereafter
T
T
T
T
T
T
T
T
Stalham
- Bridge Street
- The Limes
- Queens Road
- Bank Loke
- New Road
- Vicarage Street
Mundesley Road
- High Street
All P&D Car Parks (Coastal Car Park tickets transferable)
- All day ticket
T
£5.00
- Half day (up to 4 hours)
- All day ticket
- Per Car, Per Entry
- Per Motorcycle, Per Entry
T
T
T
T
£5.00
£10.00
£6.00
£3.00
No change
T
£27.50
No change
T
T
T
T
T
T
T
T
£55.00
£200.00
£30.00
£120.00
£16.00
£65.00
£50.00
£25.00
No change
CAR PARKING
Pay & Display Car Parks between 08:00 - 18:00
Coastal Car Parks
Cromer
East Runton
Happisburgh
Mundesley
Overstrand
Sea Palling
Sheringham
Wells
Weybourne
Other Car Parks
Cromer
Holt
Sheringham
Wells
Fakenham
North Walsham
Other Charges
Coach Parking (where permitted)
Carnival Day (Runton Road)
Weekly Permit
Annual Permit
Half Year Permit
Quarter Year Permit
Penalty Charge Notice
Fees and Charges 2016/17
- 3 hour permit
- 24 hour permit
- 3 hour permit
- 24 hour permit
- 3 hour permit
- 24 hour permit
- Full
- Prompt Payment
152
Subject to
separate report
50p for 30
minutes only,
£1.00 for 2
hours, 70p per
hour thereafter
T
Sheet 1 of 3
Appendix D
Assets & Leisure Service Area
V
2015/16
2016/17
A
Charge
Proposed
T
£:p
£:p
MARKETS
Site = 4m Frontage x 5m Depth
Cromer, Stalham and Sheringham (Weds) - Per Site
Weekly
- April, May, June, Oct, Nov, Dec
- July, August, Sept
- Jan, Feb, March
- April - June
- July - September
- October - December
- January - March
- April - Sept
- October - March
- April - Sept
- October - March
T
T
T
T
T
T
T
T
T
T
T
£18.00
£27.00
£15.00
£135.00
£220.00
£100.00
£80.00
£250.00
£130.00
£200.00
£100.00
£18.00
£27.00
£15.00
£135.00
£220.00
£100.00
£80.00
£250.00
£130.00
£200.00
£100.00
- April, May, June, Nov, Dec
- July, August, Sept, Oct
- Jan, Feb, March
- April - June
- July - September
- October - December
- January - March
- April - Sept
- October - March
- April - Sept
- October - March
T
T
T
T
T
T
T
T
T
T
T
£30.00
£40.00
£22.00
£300.00
£460.00
£220.00
£175.00
£580.00
£300.00
£440.00
£225.00
£855.00
£30.00
£40.00
£22.00
£300.00
£460.00
£220.00
£175.00
£580.00
£300.00
£440.00
£225.00
£855.00
Refunds - Administration Fee
T
£15.00
£15.00
CHALETS & BEACH HUTS
Chalets
Sheringham
Old Chalets
New Chalets (inc. electricity)
T
T
£445.00
£551.67
£554.00
£682.00
Cromer
West Beach
East Beach
T
T
£536.80
£586.80
£560.00
£610.00
Weekly Lets - Cromer & Sheringham
Low Season
High Season
T
T
£62.50
£120.00
£65.00
£150.00
Weekly Lets - Cromer East & Sheringham New (Serviced)
Low Season
High Season
T
T
£78.00
£142.00
£85.00
£180.00
Winter Lets
Per Month
Per Week
T
T
£65.00
£21.00
£65.00
£21.00
T
T
£490.00
£540.00
£505.00
£555.00
Hut Sites
Cromer, Overstrand & Sheringham
One Year (Excluding Rates)
Mundesley
T
T
£220.00
£210.00
£250.00
£240.00
Huts
Weekly Lets
Low Season
High Season
Mundesley - Seasonal Let
T
T
T
£47.50
£105.00
£540.00
£50.00
£135.00
£560.00
T
£30.00
£35.00
Quarterly
Half Yearly (Up to 2 pitches, £ per pitch)
Half Yearly (3rd pitch +, £ per pitch)
Sheringham (Saturday) - Per Site
Weekly
Quarterly
Half Yearly (Up to 2 pitches, £ per pitch)
Half Yearly (3rd pitch +, £ per pitch)
Yearly
40 Week Lets (October - July)
40 Week Lets (October - July)
Termination of Licence (early - mid-term)
Fees and Charges 2016/17
Cromer West
Cromer East
Admin Fee
153
Sheet 2 of 3
Appendix D
Assets & Leisure Service Area
V
2015/16
2016/17
A
Charge
Proposed
T
£:p
£:p
PARKLANDS CARAVAN SITE
Site Per Year
T Increased by RPI as under Mobile Homes Act.
HOLT COUNTRY PARK
School visits where Ranger's assistance required (Per Person)
T
£3.40
£3.50
Per car per occasion
T
£1.50
£1.50
Annual Permit
(NNDC Standard Car Park Season Tickets are also valid)
T
£20.00
£30.00
T
£1.00
£1.00
Car Park
SPORTS CLUBS AND HUBS
Price per session
Fees and Charges 2016/17
154
Sheet 3 of 3
Appendix E
North Norfolk District Council
Council Tax Summary 2016/17
2015/16
Actual
Actual 2016/17
0% Council Tax Increase
Variance
£
Demand on Collection Fund
(excluding Parish/Town Precepts)
£ 5,307,073
District Council Tax Level at Band D
£
Less Estimated Collection Fund Surplus at
31st March
£
5,473,605
£
5,309,385
£
144.27
142.38
(£3.51)
£
(£5.40)
Variance
%
£268,219
164,220
5.3%
£2.70
1.9%
(£2.70)
375.0%
-
0.00%
.
Net District Council Tax at Band D
£
Value of Precepts
Effect of Parish/Town Precepts
Billed District Council Tax at Band D
Tax Base
Tax Base Movement
£
138.87
£
138.87
£
£1,760,520
£1,810,000
£271,066
17.6%
47.23
47.71
£10.51
28.3%
£10.51
6.0%
186.10
37,274
£
186.58
37,940
666
Note: The Tax Base for 2016/17 is 37,940 (2015/16 37,274) so each £37,940 change in net
expenditure has £1.00 effect on Council Tax at Band D.
155
Appendix F
Reserves Statement 2016/17 Onwards
Reserve
Purpose and Use of Reserve
Balance at
01/04/15
£
General Fund General Reserve
A working balance and contingency, current recommended
balance is £1.75 million.
2015/16
Updated
Movement
£
2016/17
Budgeted
Movement
£
Balance
01/04/16
£
Budgeted
Movement
2017/18
£
Balance
01/04/17
£
Budgeted
Movement
2018/19
£
Balance
01/04/18
£
Budgeted
Movement
2019/20
£
Balance
01/04/19
£
Balance
01/04/20
£
2,289,024
331,710
2,620,734
0
2,620,734
0
2,620,734
0
2,620,734
0
2,620,734
Earmarked Reserves:
Capital Projects
To provide funding for capital developments and purchase of
major assets. This includes the VAT Shelter Receipt.
2,676,360
(712,190)
1,964,170
3,246
1,967,416
0
1,967,416
0
1,967,416
0
1,967,416
Asset Management
To support improvements to our existing assets as identified
through the Asset Management Plan.
59,899
(16,751)
43,148
0
43,148
0
43,148
0
43,148
0
43,148
Benefits
To be used to mitigate any claw back by the Department of
Works and Pensions following final subsidy determination.
Timing of the use will depend on audited subsidy claims.
721,792
(184,882)
536,910
0
536,910
0
536,910
0
536,910
0
536,910
Big Society Fund
(BSF)
To support projects that communities identify where they will
make a difference to the economic and social wellbeing of the
area. Funded by a proportion of NCC element of second
homes council tax. Earmarked pending second homes money
no longer being received.
786,588
(10,000)
776,588
0
776,588
0
776,588
0
776,588
0
776,588
Broadband
Earmarks £1million for superfast broad band in North Norfolk.
(600k was transferred from the BSF reserve and £400k from
NHB reserve)
1,000,000
0
1,000,000
(1,000,000)
0
0
0
0
0
0
0
Building Control
Building Control surplus ringfenced to cover any future deficits
in the service.
120,235
0
120,235
0
120,235
0
120,235
0
120,235
0
120,235
Business Rates
To be used for the support of local businesses and to mitigate
impact of final claims and appeals in relation to business rates
retention scheme.
1,579,136
(187,855)
1,391,281
0
1,391,281
0
1,391,281
0
1,391,281
0
1,391,281
Coast Protection
To support the ongoing coast protection maintenance
programme ands carry forward funding between financial
years.
237,295
(194,662)
42,633
0
42,633
0
42,633
0
42,633
0
42,633
Common Training
To deliver the corporate training programme. Training and
development programmes are sometimes not completed in the
year but are committed and therefore funding is carried forward
in an earmarked reserve.
27,450
2,000
29,450
0
29,450
0
29,450
0
29,450
0
29,450
Economic
Development and
Regeneration
Earmarked from previous underspends within Economic
Development and Regeneration Budgets along with funding
earmarked for Learning for Everyone.
117,783
(25,000)
92,783
0
92,783
0
92,783
0
92,783
0
92,783
Election Reserve
Established to meet costs associated with district council
elections, to smooth the impact between financial years.
90,000
(90,000)
0
30,000
30,000
30,000
60,000
30,000
90,000
30,000
120,000
Enforcement Works
Established to meet costs associated with district council
enforcement works including buildings at risk .
146,857
(91,516)
55,341
0
55,341
0
55,341
0
55,341
0
55,341
156
Appendix F
Reserves Statement 2016/17 Onwards
Reserve
Purpose and Use of Reserve
Balance at
01/04/15
£
2015/16
Updated
Movement
£
2016/17
Budgeted
Movement
£
Balance
01/04/16
£
Budgeted
Movement
2017/18
£
Balance
01/04/17
£
Budgeted
Movement
2018/19
£
Balance
01/04/18
£
Budgeted
Movement
2019/20
£
Balance
01/04/19
£
Balance
01/04/20
£
Earmarking of previous underspends and additional income to
Environmental Health
meet Environmental Health initiatives.
41,287
(5,000)
36,287
0
36,287
0
36,287
0
36,287
0
36,287
Grants
Revenue Grants received and due to timing issues not used in
the year.
327,741
(88,150)
239,591
(25,939)
213,652
0
213,652
0
213,652
0
213,652
Housing
Previously earmarked for stock condition survey and housing
needs assessment.
101,920
(16,920)
85,000
0
85,000
0
85,000
0
85,000
0
85,000
Treasury (Property)
Reserve
Property Investment (Treasury), to smooth the impact on the
revenue account of interest fluctuations.
66,068
0
66,068
0
66,068
0
66,068
0
66,068
0
66,068
Land Charges
To mitigate the impact of potential income reductions.
89,155
0
89,155
0
89,155
0
89,155
0
89,155
0
89,155
Legal
One off funding for Compulsory Purchase Order (CPO) work
and East Law Surplus.
73,595
0
73,595
(33,347)
40,248
0
40,248
0
40,248
0
40,248
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding
commitments and liabilities.
51,728
(51,728)
0
0
0
0
0
0
0
0
0
LSVT Reserve
To meet the cost of successful warranty claims not covered by
bonds and insurance following the housing stock transfer.
435,000
0
435,000
0
435,000
0
435,000
0
435,000
0
435,000
New Homes Bonus
(NHB)
Established for supporting communities with future growth and
development and Plan review*
1,116,194
284,800
1,400,994
281,512
1,682,506
(66,694)
1,615,812
(82,944)
1,532,868
0
1,532,868
Organisational
Development
To provide funding for organisation development to create
capacity within the organisation and address anomalies within
the pay structure.
116,391
(76,963)
39,428
0
39,428
0
39,428
0
39,428
0
39,428
Pathfinder
To help Coastal Communities adapt to coastal changes.
206,378
0
206,378
0
206,378
0
206,378
0
206,378
0
206,378
Planning
Additional Planning income earmarked for Planning initiatives
including Plan Review.
375,183
(94,340)
280,843
(127,186)
153,657
(84,891)
68,766
(8,835)
59,931
0
59,931
Regeneration
Projects
Carry forward of underspends relating to Regeneration
Projects.
0
0
0
0
0
0
0
0
0
0
0
Restructuring &
Invest to Save
Proposals
To fund one-off redundancy and pension strain costs and
invest to save initiatives. Transfers from this reserve will be
allocated against business cases as they are approved.
Timing of the use of this reserve will depend on when business
cases are approved.
1,246,890
(60,367)
1,186,523
(178,897)
1,007,626
(33,000)
974,626
(12,000)
962,626
0
962,626
Sports Hall
Equipment & Sports
Facilities
To support renewals for sports hall equipment. Amount
transferred in the year represents over or under achievement
of income target.
26,316
0
26,316
0
26,316
0
26,316
0
26,316
0
26,316
14,126,265 (1,287,814)
12,838,451
(1,050,611)
11,787,840
(154,585)
11,633,255
(73,779)
11,559,476
30,000
11,589,476
Total Reserves
157
Appendix G
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P9
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)
0
0
0
Rocket House
77,084
36,485
40,599
492
(40,107)
0
0
0
Public Conveniences (Plumbing and
Drainage)
15,000
12,303
2,697
620
(2,077)
0
0
0
Mundesley Road Car Park Resurfacing
70,000
615
69,385
59,906
(9,479)
0
0
0
North Norfolk Enterprise and Start Up
Grants
135,000
35,454
99,546
83,109
(16,437)
0
0
0
Car Park Refurbishment 2015/16
53,108
0
53,108
564
(52,544)
0
0
0
Public Convenience Water Heater
Improvements
10,000
0
10,000
0
(10,000)
0
0
0
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
144,691
(170,349)
2,445,000
0
0
Disabled Facilities Grants
Annual programme
0
450,000
318,145
(131,855)
644,247
1,054,890
0
Housing Associations
Annual programme
0
403,635
0
(403,635)
100,908
0
0
3,500,000
0
3,500,000
0
(3,500,000)
0
0
0
100,000
4,437
95,563
6,376
(89,187)
0
0
0
3,600,000
4,437
4,449,198
324,521
(4,124,677)
745,155
1,054,890
0
Housing and Infrastructure
Housing Loans to Registered Providers
Parkland Improvements
158
Appendix G
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P9
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
1,409,000
1,184,417
38,000
0
(38,000)
40,000
42,000
104,583
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)
0
0
0
1,465,000
42,062
772,938
57,206
(715,732)
650,000
0
0
149,500
109,184
40,316
8,918
(31,398)
0
0
0
10,400,000
3,447,172
2,357,116
598,958
(1,758,158)
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
60,462
(202,787)
60,646
0
0
804,000
279,957
319,119
60,220
(258,899)
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)
0
0
0
Repairs and Renewals Grants - Flood
Protection Works
368,294
368,294
0
235,273
235,273
0
0
0
Ostend Targeted Rock Placement and
Coastal Adaptation
55,000
0
220
220
0
54,780
0
0
Sheringham Beach Handrails
Cromer Pier Structural Works - Phase 2
Sheringham Promenade Lighting
Cromer Pier and West Prom Refurbishment
Project ( Subject to Full Council Approval)
Refurbishment Works to the Seaside
Shelters
Cromer Coast Protection Scheme 982 and
SEA
Pathfinder Project
Cromer to Winterton Scheme
Coastal Erosion Assistance
Storm Surge
Sheringham West Prom
Mundesley - Refurbishment of Coastal
Defences
159
Appendix G
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Cromer Pier - External and Roofing
Improvements to Pavilion Theatre
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P9
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
20,000
0
0
999
999
0
20,000
0
21,921,700
9,532,814
4,058,194
1,114,596
(2,943,598)
8,164,109
62,000
104,583
North Lodge Park
197,000
732
196,268
0
(196,268)
0
0
0
North Walsham Regeneration Schemes
(Including Market St North Walsham)
102,045
18,929
83,116
78,631
(4,485)
0
0
0
54,370
12,535
41,835
3,816
(38,019)
0
0
0
100,000
86,190
13,810
8,440
(5,370)
0
0
0
Splash Roof Repairs
73,630
9,563
64,067
184
(63,883)
0
0
0
Steelwork Protection to Victory Pool and
Fakenham Gym
27,500
33
14,967
0
(14,967)
0
12,500
0
Cabbell Park
64,000
7,915
56,085
58,496
2,411
0
0
0
178,500
0
178,500
0
(178,500)
0
0
0
Holt Country Park
12,500
0
12,500
0
(12,500)
0
0
0
Fakenham Gym
62,500
0
15,000
0
(15,000)
30,000
0
17,500
Splash Pool - Steelworks
35,000
0
0
0
0
0
35,000
0
907,045
135,897
676,148
149,567
(526,581)
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
Localism
Victory Swim and Fitness Centre
Play Areas
North Norfolk Railway
Delivering the Vision
160
Appendix G
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P9
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
75,000
63,190
11,810
540
(11,270)
0
0
0
Procurement for Upgrade of Civica System
317,312
198,214
119,098
0
(119,098)
0
0
0
e-Financials Financial Management System
Software Upgrade
33,000
21,506
11,494
0
(11,494)
0
0
0
250,570
172,301
78,269
220
(78,049)
0
0
0
10,000
0
10,000
9,892
(108)
0
0
0
100,000
0
100,000
7,160
(92,840)
0
0
0
Telephony Procurement
90,000
7,933
82,067
51,976
(30,091)
0
0
0
Web Infrastructure Upgrade
71,500
647
70,853
39,097
(31,756)
0
0
0
New Print Solution - Multi Function Devices
60,000
53,599
6,401
0
(6,401)
0
0
0
Server Replacement
100,000
100,000
0
0
0
0
0
0
Fakenham Connect and Cromer Office Works - DWP
126,000
0
126,000
144,104
18,104
0
0
0
GIS / Web Based Mapping Solution
20,000
0
20,000
12,608
(7,392)
0
0
0
Recording and Audio Equipment
20,000
0
20,000
0
(20,000)
0
0
0
Upgrades to Accolade and Idox - Business
Transformation Programme
25,000
0
25,000
0
(25,000)
0
0
0
Wheeled Bins (Purchased from Kier)
66,750
0
66,750
64,173
(2,577)
0
0
0
Wheeled Bins
40,000
0
35,000
29,050
(5,950)
5,000
0
0
Environmental Health IT System
Procurement
150,000
0
150,000
0
(150,000)
0
0
0
Fakenham Connect Roof Works
30,000
0
20,000
0
(20,000)
10,000
0
0
Stonehill Way Fire and Security System
15,000
0
0
0
0
0
15,000
0
Asset Management Computer System
Administrative Buildings
Cash Receipting System Upgrade
Planning System (Scanning of Old Files) Business Transformation Programme
161
Appendix G
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15 Actual
Expenditure
Current Budget
2015/16
Actual to P9
2015/16
£
£
£
£
Variance to
2015/16 Current
Budget
£
Updated
Updated
Budget 2016/17 Budget 2017/18
£
£
Updated
Budget in
Future Years
£
Document and Records Management
System
60,000
0
60,000
0
(60,000)
0
0
0
Web Content Management System
44,000
0
44,000
0
(44,000)
0
0
0
IT Back Up and Storage System
52,000
0
52,000
0
(52,000)
0
0
0
2,460,747
1,260,991
1,151,722
358,820
(792,902)
33,034
15,000
0
31,744,684
11,029,291
10,650,302
2,092,195
(8,558,107)
11,417,298
1,179,390
122,083
3,431,501
7,497,775
42,000
104,583
447,965
450,000
0
0
3,983
0
0
0
Capital Project Reserve
877,116
161,554
0
0
Invest to Save Reserve / Broadband Reserve
122,853
1,000,000
0
0
4,842,453
2,307,969
1,137,390
17,500
Capital Programme Financing
Grants
Other Contributions
Asset Management Reserve
Capital Receipts
Internal / External Borrowing
TOTAL FINANCING
924,431
0
0
0
10,650,302
11,417,298
1,179,390
122,083
162
Capital Bids 2016.17 Onwards
Appendix H
CAPITAL BIDS - 2016/17 to 2020/21 SUMMARY
Ref. (Bid
Forms)
Bid Title/Brief Description
Total Estimated
Project Costs
Estimated Costs
2016/17
2017/18
2018/19
2019/20 Onwards
TBC
0
0
0
Funding
Identified
Annual Revenue
Costs / (Income)
0
(27,810)
The proposal relates to the potential redevelopment of
the Council owned site at Grove Lane, possibly for a
residential development scheme.
(22,665)
This scheme relates to the potential redevelopment of the
former hardstanding children's play area at North Lodge
Park in Cromer, to provide approximately 55 car parking
spaces. Provision of this facility would help to support
the long term viability of the park, and would assist in the
regeneration of the East end of the Town. In order to
progress the scheme there would need to be a Car Park
Order, including a full consultation process.
(54,550)
The scheme relates to the review and redevelopment or
disposal of a total of five facilities, and alternative
provision on a further two sites. The proposals focuses
on areas where there is alternative provision and it is not
considered that the changes would significantly impact
on members of the public. The disposals of facilities will
provide a capital receipt which could be reinvested into
the scheme to improve the commercialisation of the
Council's asset base, thereby reducing expenditure and
increasing income.
0
There are currently a number of car parks which require
resurfacing and relining, and although undertaking this
work is costly, the reactive maintenance to repair these
car parks would be disproportionately expensive and will
place a strain on the revenue repair budget. This bid also
looks to replace signage across the majority of car parks,
and to improve lighting. These works would help to
reduce complaints concerning charges, allows better
enforcement, negates health and safety risks of trips and
falls, and reduces the potential of claims for damage to
vehicles caused by pot holes.
Comments
Assets and Leisure
AL02
Grove Lane, Holt Redevelopment of Council
owned site for the provision of
rented market housing, subject
to obtaining necessary
planning consents.
AL03
Car Parks - North Lodge
Park, Cromer - Proposal for
the development of the former
children's play area at North
Lodge Park to provide 55 car
parking spaces. Subject to
obtaining necessary planning
consents.
AL04
Public Conveniences Review, reprovision and
redevelopment of a number of
the Council's public
conveniences
AL05
Car Park Refurbishment - Relining and refurbishment of
Station Yard (Holt), Clink Road
(Sea Palling), Beach Road
(Weybourne) and Cromer West
Prom, together with
replacement of signage across
the majority of council car
parks
TBC
121,000
450,000
99,000
121,000
450,000
99,000
0
0
0
0
0
0
0
0
0
0
£100,000
assumed disposal
proceeds from two
public
conveniences
0
163
capital - summary (Cabinet)
Capital Bids 2016.17 Onwards
Appendix H
CAPITAL BIDS - 2016/17 to 2020/21 SUMMARY
Ref. (Bid
Forms)
Bid Title/Brief Description
Total Estimated
Project Costs
Funding
Identified
Estimated Costs
2016/17
2017/18
2018/19
Annual Revenue
Costs / (Income)
Comments
The scheme identified the requirement to refurbish the
Council Chamber; replacement of IT equipment
presentation, audio visual and IT equipment to facilitiate
the recording and streaming of Council Meetings, and the
use of the room for other purposes. (Clarification of the
costs to be confirmed).
2019/20 Onwards
Customer Services
CS02
Council Chamber
Enhancement
25,000
25,000
0
0
0
0
0
CS03
Access Control System
17,000
17,000
0
0
0
0
3,000
This would provide a new access control system based
on ID Cards to control and monitor access to Council
premises, thereby inproving security in a multi-tenanted
building.
CS04
Log Solution to satisfy PSN
Code of Connection
7,854
This scheme would see the replacement of the log
management solution which will not be supported from
December 2016. This system would satisfy PSN
compliance as well as allowing detailed monitoring of the
network environment allowing real time threat detection
and response.
Vale Road beach access is managed by NNDC and
enables beach access for pedestrians and informal
access for pleasure boat users. The intention is to
support Mundesley Coastwatch to locate a temporary
seasonal lookout at this location, improving beach access
and providing a communications link to the remote area.
This should help to deter antisocial behaviour in this area,
in addition to reducing the inappropriate use of the beach.
41,365
41,365
0
0
0
0
Economic Development
Vale Road Beach Access
Improvements - Supporting
the intent of Mundesley
Coastwatch to locate a
temporary seasonal lookout at
this location.
18,600
18,600
0
0
0
0
0
Total Capital Project Bids
771,965
771,965
0
0
0
0
(94,171)
Total New Capital Funding Required
771,965
ED02
To be funded from NNDC Resources
164
capital - summary (Cabinet)
Appendix I
Prudential Indicators and MRP Statement 2016/17
1. Background:
1.1
The Local Government Act required the Council to have regard to the Chartered Institute
of Public Finance and Accountancy’s Prudential Code for Capital Finance in Local
Authorities (the Prudential Code), when determining how much money it can afford to
borrow. The objectives of the Prudential Code are to ensure within a clear framework,
that the capital investment plans of local authorities are affordable, prudent and
sustainable, and that treasury management decisions are taken in accordance with good
professional practice. To demonstrate that the Council has fulfilled these objectives, the
Prudential Code sets out the following indicators that must be set and monitored each
year.
2. Estimates of Capital Expenditure:
2.1
This indicator is set to ensure that the level of proposed capital expenditure remains within
sustainable limits and, in particular, to consider the impact on Council Tax.
Capital Expenditure
Total
2.2
2016/17 Estimate
£000’s
2017/18 Estimate
£000’s
12,539
2018/19 Estimate
£000’s
1,179
122
Capital expenditure will be financed or funded as follows:
Capital Financing
2016/17 Estimate
£000’s
2017/18 Estimate
£000’s
2018/19 Estimate
£000’s
Capital Receipts
2,408
1,137
17
Government Grants
7,948
42
105
Revenue
Contributions and
Reserves
Internal Borrowing
1,161
0
0
1,022
0
0
12,539
1,179
122
Total Financing
165
Appendix I
3. Estimates of Capital Financing Requirement
3.1
The Capital Financing Requirement (CFR) measures the Council’s underlying need to
borrow for a capital purpose. The calculation of the CFR is taken from the amounts held
in the Balance Sheet relating to capital expenditure and financing.
Capital Financing
Requirement
Total CFR
2016/17 Estimate
£000’s
2017/18 Estimate
£000’s
1,603
3,197
2018/19 Estimate
£000’s
2,742
3.2
The total CFR indicated in the table relates in part to vehicles and equipment used on the
Council’s refuse and car park management contracts. These are recognized under IFRS
accounting regulations which require equipment on an embedded finance lease to be
recognized on the balance sheet.
3.3
The CFR has increased to take into consideration the Cabinet decision in year (subject to
Full Council approval) to fund the Egmere Business Zone. It also reflects the Council’s
decision to provide loan advances to Registered Providers under the Local Investment
Strategy. Although initially this will increase the CFR, the capital receipts generated by
the annual repayments on the loans will be applied to reduce the CFR across subsequent
years.
3.4
In addition to this, the new capital bids for 2016/17 onwards are assumed to be funded
from internal borrowing. This has resulted in an increase in the Council’s CFR and the
resultant requirement to make a Minimum Revenue Provision (MRP) each year in
accordance with the Councils MRP Policy as set out below.
4. Gross Debt and the Capital Financing Requirement
4.1
This is a key indicator for prudence. In order to ensure that over the medium term debt will
only be for a capital purpose, the Council should ensure that debt does not, except in the
short term, exceed the total of the capital financing requirement in the preceding year plus
the estimates of any additional capital financing requirement for the current and next two
financial years. The Council will have no difficulty in meeting this requirement as no long
term external borrowing is anticipated for the period of the Strategy.
5. Authorised Limit and Operation Boundary for External Debt
5.1
The Council has an integrated Treasury Management Strategy and manages its treasury
position in accordance with its approved strategy and practice. Overall borrowing will
therefore arise as a consequence of all the financial transactions of the Council, and not
just those arising from capital spending reflected in the CFR.
166
Appendix I
5.2
The Authorised Limit sets the maximum level of external debt on a gross basis (i.e.
excluding investments) for the Council. It is measured against all external debt items (i.e.
long and short term borrowing, overdrawn bank balances and long term liabilities). The
indicator separately identifies borrowing from other long term liabilities such as finance
leases. It is consistent with the Council’s existing commitments, its proposals for capital
expenditure and financing and its approved Treasury Management policy statement and
practices.
5.3
The Authorised Limit is the statutory limit determined under Section 3(1) of the Local
Government Act 2003 (referred to in the legislation as the Affordable Limit).
5.4
The Operational Boundary is based on the same estimates as the Authorised Limit
reflecting the most likely, prudent but not worst case scenario, and without the additional
headroom included within the Authorised Limit for unusual cash movements.
2016/17 Estimate
£000’s
2017/18 Estimate
£000’s
2018/19 Estimate
£000’s
Authorised Limit for
Borrowing
7,970
7,970
7,970
Authorised Limit for
Other Long-term
Liabilities
688
355
0
Authorised Limit
for External Debt
8,658
8,325
7,970
Operational
Boundary for
Borrowing
5,640
5,640
5,640
688
355
0
6,327
5,995
5,640
Operational
Boundary for Other
Long-term Liabilities
Operational
Boundary of
External Debt
6. Ratio of Financing Costs to Net Revenue Stream
6.1
This is an indicator of affordability and highlights the revenue implications of existing and
proposed capital expenditure by identifying the proportion of the revenue budget required
to meet financing costs. The definition of financing costs is set out in the Prudential Code.
6.2
The ratio is based on the costs net of investment income.
167
Appendix I
Ratio of Financing
Costs to Net
Revenue Stream
Total
2016/17 Estimate
%
2017/18 Estimate
%
-4.14
-4.20
2018/19 Estimate
%
-4.34
The indicator is negative because the Council has interest receivable and no financing
costs.
7. Incremental Impact of Capital Investment Decisions
7.1
This is an indicator of affordability that shows the impact of capital investment decisions
on Council Tax levels. The incremental impact is calculated by comparing the total
revenue budget requirement of the current approved capital programme, with an
equivalent calculation of the revenue budget requirement arising from the proposed
capital programme.
Incremental Impact
of Capital
Investment
Decisions
Increase in Band D
Council Tax
7.2
2016/17 Estimate
£
2017/18 Estimate
£
(2.13)
0.00
2018/19 Estimate
£
0.00
The incremental impact of capital investment decisions reflects the additional revenue
costs (or income) to the Council of undertaking specific capital schemes, together with the
loss of interest from the use of resources that would otherwise have been invested as part
of the Treasury Management process. There have been no additional capital schemes
proposed as part of the budget process which would result in capital expenditure being
incurred in 2017/18 or any future financial years.
8. Adoption of the CIPFA Treasury Management Code
8.1
This indicator demonstrated that the Council has adopted the principles of best practice.
Adoption of the CIPFA Code of Practice in Treasury Management
The Council approved the adoption of the CIPFA Treasury Management Code at Full
Council on the 28 April 2010
168
Appendix I
9. Annual Minimum Revenue Provision (MRP) Statement 2016/17
9.1
Where a local authority finances capital expenditure by debt, it must put aside resources
to repay that debt in later years. The amount charged to the revenue budget for the
repayment of debt is known as the Minimum Revenue Provision (MRP). There has been
no statutory minimum amount to be applied since 2008, although the Local Government
Act 2003 does require authorities to have regard to the Department for Communities and
Local Government’s Guidance on Minimum Revenue Provision, which was most recently
updated in February 2012.
9.2
The Guidance requires that the Council approve an Annual MRP Statement in advance of
each financial year, and identifies a number of options for calculation of a prudent
provision for MRP. Whilst there are four alternative methods available for this calculation,
only two apply to new borrowing under the Prudential system for which no Government
support is being given, i.e. borrowing which is intended to be self-financed.
9.3
All Council decisions made in relation to capital expenditure will be reviewed on their own
merits and the most equitable treatment will be introduced in respect of the financing of
these schemes. For the purposes of existing schemes and those proposed for the coming
financial years where borrowing has been assumed, the Council will be applying the
Asset Life Basis (Option 3 under the DCLG Guidance). This allows MRP to be charged to
the revenue account across the estimated life of the assets that are being funded, in
accordance with the regulations.
169
Agenda Item No_____14_______
CAR PARK FEES AND CHARGES
Summary:
Car park charges have remained static since April 2012, this
report considers the current car park fees and charges and asks
Members to consider options for future charging arrangements.
Options considered:
A number of options are considered within the report as follows:1. Do nothing – the Council could opt to do nothing and not
change the current fees and charges.
2. The report considers a number of different fee structures
including;



Increasing fees at Coastal car parks
Increasing fees at Coastal car parks to include seasonal
variations
Increasing fees across all car parks
Conclusions:
There are clearly multiple variations on the possible range of
pricing options for car parks. Due to the nature of car parking
charges and for simplicity it is best to make any increases to the
nearest 10p. Even a relatively modest annual increase of 3.5%
from 2012 would have increased the hourly coastal charge from
£1.20 per to £1.40 (rounded to the nearest 10p). The option
which generates the most additional income is Option 3
(increasing fees and charges across all car parks), which has
been forecast to generate additional income of £575,000 per
annum excluding VAT, thereby contributing towards the
Council’s medium term financial strategy. However Members are
aware that season ticket prices represent excellent value for
money for local residents parking and no increase has been
modelled in relation to the charges for these.
Recommendations:
That Cabinet consider the options contained within this
report and make recommendations to Full Council on the
preferred option so that these changes can be considered
as part of the budget setting process and inform the future
financial strategy.
Reasons for
Recommendations:
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.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)
Cabinet Member(s);
Ward(s) affected; All
Cllr John Rest
Contact Officer, telephone number and email: Duncan Ellis, 01263 516330, duncan.ellis@northnorfolk.gov.uk
170
1.
Introduction
1.1
The aim of this report is to present the findings of an option assessment for potential
changes to car parking fees and charges. It outlines the existing charging regime, presents
some general information on car park usage and income comparisons and proceeds to
discuss potential charging options. Members of Cabinet are asked to consider the report
and make recommendations to Full Council as to how they would like to progress.
2.
Background
2.1
Car park fees and charges have not increased since April 2012, current car park charges in
North Norfolk are quite complex, reflecting different types of car parks, but in summary are
as follows:






2.2
Coastal car parks - £1.20 an hour, maximum £5.00 for 24hrs
Resort car parks - £1 for first hour then 70p thereafter, maximum charge £5 for 24
hours
Standard car parks - £1 for two hours then 70p per hour thereafter, maximum
charge £5 for 24 hours
All car parks 30 minutes for 50p
All £5 tickets are transferable
Where available coach parking is £5 for up to 4 hours and £10 for 24 hours
There are now 3 free 30 minute parking bays available in each of the seven market towns.
These are situated at the following car parks:







Cromer – Meadow
Fakenham – Bridge St
Holt – Albert St
North Walsham – Bank Loke
Sheringham – Morris St
Stalham – High St
Wells – Staithe Street
2.3
Previously the Council operated a £1 evening charge for parking after 6.00pm, however this
charge was removed from all car parks in November 2014.
2.4
Budgeted income for 2015/16 (excluding VAT and internal recharges) is as follows:
Cash/credit card payments in P&D machines
Penalty Charges
Season Tickets
Other income/rentals
2.5
£1,734,000
£96,000
£214,000
£ 23,000
This makes a total direct gross income from car parks of £2,067,000 (excluding VAT), at
present the income is expected to slightly exceed the 2015/16 income budget.
Income by resort/town
2.6
The majority of car parking income comes from our seaside resorts with 85% of the income
last year coming from these towns and Holt. The table below illustrates the share of car
park income over the period 2014/15.
171
Town
%
Cromer
Sheringham
Wells
Holt (including Holt Country Park)
East Runton, Mundesley, Happisburgh Cart
Gap, Sea Palling
Fakenham and North Walsham
Overstrand, Weybourne, Stalham
30
23
12
12
7
No. of
Bays
1,427
526
158
234
1,511
13
3
624
571
Seasonal variations
2.7
Car park income is very seasonal, over half of the annual income is derived from the period
May-September. Inevitably, it is very weather dependent, especially in the seaside resorts
and coastal villages. The six weeks of the school summer holidays are crucial with for
example, 60% of income at Sea Palling coming from the months of July and August alone.
The highest earning car parks are those in resort towns which benefit from all year use as
well as high summer use ie The Meadows (Cromer), Station Approach (Sheringham) and
Albert Street (Holt).
Season tickets
2.8
Season tickets represent excellent value for money for local people who park in our towns
on a regular basis for work, shopping and leisure. Last year income from season tickets
was £214,827. Income from season tickets has steadily increased over the past 4 years
(9.6% since 2012) despite no increases in the price of these tickets recognising the value
these provide to residents and at £200 per year this represents a cost of less than £0.55
per day to park.
Comparisons with other locations
2.9
Similar coastal resorts in Norfolk have the following charges:
Resort
Hunstanton car parks
Great Yarmouth seafront
Great Yarmouth long
stay
Caister Beach Road
Wells, Beach Rd and
Lady Anne Drive
(Holkham Estates)
Per hour
Range from £1.40 - £1.80 and then
£3.20 for 3 hours
Summer
£1.90 per hour for first 2 hours then
£2.40 an hour thereafter
4 hours for £4.50, £7.00 for over 4
hours
60p per hour
£2.00 for 1hour, £3.00 for up to 2
hours, £5 for up to 4 hours, £6.50
for all day
Winter Rates
Same as summer
Winter
90p per hour
Free
Same as summer
2.10
This suggests that in terms of seaside resorts, NNDC charges are lower than comparable
areas. There is a general expectation to pay for seaside car parking recognising the other
infrastructure which is provided alongside these facilities ie public toilets, Blue Flag
beaches etc.
2.11
Over recent years the Council has spent £1m on capital improvement works for car parks,
there is a capital budget of £60,000 allocated in the current financial year and a new bid for
2016/17 of £99,000 to support additional improvement works.
172
2.12
As can be seen from the budget report contained elsewhere on this agenda there is still a
significant budget deficit to address in future years and the Council must consider all
available options to generate additional income and reduce costs wherever possible.
2.13
There is a significant cost associated with a range of Council services which support the
tourism economy, with the budget for provision of public conveniences for example for the
2015/16 financial year being nearly £670,000. Similarly budgets for the foreshore activities,
parks, open spaces and woodlands total approximately £1,428,000. These areas represent
a combined annual budget in excess of £2m and it is appropriate for the costs of these
services to be met in part by various fees and charges as they form an integral part of the
visitor experience.
2.14
These are all discretionary areas of spend but help to ensure that our district remains a
beautiful place both to live and work in but also to visit, it is however becoming increasingly
difficult to support all of these areas in the current financial climate.
2.15
A significant element of the car parking income is generated from the seaside resorts
during the peak holiday periods and the 6 weeks of the summer when the district sees a
huge influx of holiday makers from outside the area. These visitors get to enjoy our Blue
Flag beaches and our parks and open spaces without making any contribution to their
upkeep and car park charges are a way to provide a contribution towards the continuance
of these vital services which significantly support the visitor experience.
3.
Options appraisal
3.1
The price modelling that has so far been undertaken has considered the needs of the
seaside towns and local residents and applied new rates to these. No account has been
taken of behaviour change as a result of price change. In practice, increases in prices can
deter some users.
3.2
Due to the nature of car parking charges and for simplicity it is best to make any increases
to the nearest 10p. Taking the current hourly charge for the coastal car parks of £1.20 per
hour a relatively modest annual increase of 3.5% since the last price increases in 2012
would have had the following effect (unrounded);
2012
2013
2014
2015
2016
£1.20
£1.24
£1.29
£1.33
£1.38
+ 3.5% increase
+ 3.5% increase
+ 3.5% increase
+ 3.5% increase
3.3
On the basis of the above modelling the rounded charge for 2016 would be £1.40 based on
annual 3.5% increases.
3.4
This section discusses a number of options in terms of principles and describes the
potential impact on income as a result of the following proposals;
1.
2.
3.
Increasing fees at just coastal car parks (mainly used by tourists)
Increasing fees at coastal car parks during March – October, but reducing the fees
during the shoulder months November – February inclusive
Increasing fees at all car parks
173
Option 1 - Increasing fees at Coastal car parks
3.5
Given the seasonal nature of demand and the fact that car park demand is highest in the
coastal resorts, the current car park fees across the Council car parks are as follows:

3.6
Coastal car parks – 50p for 30 minutes, £1.20 per hour and £5 for 24 hours
Some car parks are clearly used mainly by visitors to the beach and resorts and a large
proportion of this income is received from April - September. The charging proposal model
is shown in the table below and, compared with current prices, has the following forecast
impact:
Existing
charge
Car park
Coastal car parks
Coastal car parks
Coastal car parks
Annual income
Additional income (inc
VAT)
Additional income
(excl VAT)
3.7
Increase
50p for 30
minutes
£1.20/hour
£5 for 24
hours
10p increase
60p for 30
minutes
£1.30/hour
£6 for 24
hours
20p increase
60p for 30
minutes
£1.40/hour
£6.50 for 24
hours
30p increase
60p for 30
minutes
1.50/hour
£7 for 24
hours
£1,012,000
£1,129,000
£1,217,000
£1,305,000
N/A
£117,000
£205,000
£293,000
N/A
£98,000
£171,000
£244,000
The impact of this change in prices for coastal car parks net of VAT (assuming no
behavioural resistance) is increases as follows:



10p increase = £98,000
20p increase = £171,000
30p increase = £244,000
3.8
The impact on revenue due to the proposed increases for coastal car parks ranges from
£98,000 (from just a 10p increase) to £244,000 (30p increase). This is not surprising as
these car parks represent some of the districts most popular car parks, and reflects the
popularity of the district’s tourism offer. This figure does not include any PCN income.
3.9
There are currently 10 car parks designated as ‘coastal’ at various locations including
Cromer (Runton Road), Sheringham (Station Approach and Cliff Road), East Runton
(Beach Road), Happisburgh (Cart Gap), Mundesley (Beach Road (also known as Gold
Park)), Overstrand (Pauls Lane), Sea Palling (Clink Road), Wells (Stearmans Yard) and
Weybourne (Beach Road).
3.10
It should be noted that currently the £5 charge is a 24 hour transferable ticket, therefore the
price needs to be consistent across all car parks (unless the tickets went back to being nontransferable, or being transferrable across the same type of car park). The impact of
increases to the other car parks (standard and resort) in relation to any changes to the £5
ticket has not yet been modelled but would slightly increase the current income projections.
174
Option 2 - Increasing fees at Coastal car parks March – October, reducing fees
November – February
3.11
An alternative option is to increase the prices during March – October but reduce the prices
during the shoulder months between November – February.
Existing
charge
Car park
Coastal car parks
Coastal car parks
Coastal car parks
50p for 30
minutes
£1.20/hour
£5 for 24 hours
Increased Income
Coastal car parks
Coastal car parks
Coastal car parks
50p for 30
minutes
£1.20/hour
£5 for 24 hours
Reduced Income
Annual income
3.12
£1,012,000
Income Change
10p increase 20p increase 30p increase
S U M M E R: M A R – O C T
60p for 30
60p for 30
60p for 30
minutes
minutes
minutes
£1.30/hour
£1.40/hour
1.50/hour
£6 for 24
6.50 for 24
£7 for 24
hours
hours
hours
£106,000
£186,000
£265,000
W I N T E R: N O V – F E B
50p for 30
50p for 30
50p for 30
minutes
minutes
minutes
£1.00/hour
£1.00/hour
£1.00/hour
£5 for 24
£5 for 24
£5 for 24
hours
hours
hours
£14,000
£14,000
£14,000
£1,104,000
£1,183,000
£1,263,000
Additional income
(inc VAT)
N/A
£92,000
£171,000
£251,000
Net Additional
income (excl VAT)
N/A
£77,000
£143,000
£209,000
The impact of this change in seasonal prices for coastal car parks from the current position
and net of VAT (assuming no behaviour resistance) are increases as follows:
 £1.30 per hour (March – October), £1.00 per hour (November - February) = £77,000
 £1.40 per hour (March – October), £1.00 per hour (November - February) = £143,000
 £1.50 per hour (March – October), £1.00 per hour (November - February) = £209,000
3.13
It is worth noting that not all coastal car parks are in villages. In the resort towns such as
Cromer, Sheringham and Wells there is a mix between resort and coastal car parks and so
behavioural differences may well change. Consideration could be given to change car park
type to provide consistency of tariff within towns, if a reduced winter charge is introduced.
This would minimise the financial impact on those car parks that support year round
activities but would be unpopular with local residents and businesses.
3.14
As with proposal 1 above consideration needs to be given to the treatment of the 24 hour
ticket across different car park types.
175
Option 3 - Increase fees to all car parks
3.15
The table below provides details of increases to all car parks across the district.
Existing
charge
Car park
Coastal car parks
Coastal car parks
Coastal car parks
Resort
50p for 30
minutes
£1/first hour
then 70p/hour
thereafter
£5 for 24 hours
Standard
50p for 30
minutes
£1/two hours
then 70p/hour
thereafter
£5 for 24 hours
Annual Income
3.16
£2,162,000
10p increase
60p for 30
minutes
£1.30/hour
£6 for 24
hours
60p for 30
minutes
£1.10/hour
then 80p
thereafter
£6 for 24
hours
60p for 30
minutes
£1.10/two
hours then
80p thereafter
£6 for 24
hours
£2,408,000
20p increase
60p for 30
minutes
£1.40/hour
£6.50 for 24
hours
60p for 30
minutes
£1.20/hour
then 90p
thereafter
£6.50 for 24
hours
60p for 30
minutes
£1.20/two
hours then
90p thereafter
£6.50 for 24
hours
£2,586,000
30p increase
60p for 30
minutes
1.50/hour
£7 for 24
hours
60p for 30
minutes
£1.30/hour
then £1
thereafter
£7.00 for 24
hours
60p for 30
minutes
£1.30/two
hours then £1
thereafter
£7.00 for 24
hours
£2,852,000
Additional income (inc
VAT)
N/A
£246,000
£424,000
£690,000
Additional income
(excl VAT)
N/A
£205,000
£353,000
£575,000
The additional income generated by the 30p increase is made up as follows over the 3 car
park types (excluding VAT);



Coastal
Resort
Standard
Total
3.17
50p for 30
minutes
£1.20/hour
£5 for 24 hours
Increase
£274,000
£225,000
£76,000
£575,000
The impact of this district wide change in pricing policy (assuming no behavioural
resistance) are increases as follows:



10p increase = £205,000
20p increase = £353,000
30p increase = £575,000
Season tickets
3.18
If any of the above pricing increases are agreed consideration could be given to freezing
the charges for season tickets at the current levels. This will make the season tickets
176
even better value, with an annual 24 hour permit costing £200 which works out at just under
£0.55 per day and represents excellent value for money for local residents.
3.19
It is also recommended that customers be able to pay for season tickets by direct debit as
part of the Council’s digital transformation strategy, delivering better customer service
through self-service and improved efficiency.
Parking concession scheme
3.20
Members could consider investigating some form of concession scheme operated by local
businesses whereby part of the car parking fee is reimbursed by the business if customers
spend £5.00 or more in their shop for example. No work has yet been undertaken on the
detail of how this might work but discussions could be held with local businesses to
establish how feasible such a scheme might be and whether this could be implemented
using our current car parking machines.
4.
Financial Implications and Risks
4.1
The table below summarises the financial impact (net of VAT) of the various options.
Proposal
Estimated Income
increase
1 Increasing fees at Coastal car parks
10p: £98,000
20p: £171,000
30p: £244,000
2 Increasing fees at Coastal car parks March – 10p: £77,000
October, reduce fees November - February
20p: £143,000
30p: £209,000
3 Increase fees to all car parks
10p: £205,000
20p: £353,000
30p: £575,000
4.2
As discussed above even a relatively modest annual increase of 3.5% from 2012 would
have increased the annual coastal charge from £1.20 per hour to £1.40 (rounded to the
nearest 10p).
4.3
As with any proposed price increases there is a risk of customer resistance and also
negative publicity, however the prices have not been increased for four years since 2012
and the Council has an agreed medium term financial strategy which plans for a significant
decrease in central government grant over the period to 2020 requiring the Council to
identify new ways of financing its expenditure.
4.4
The option which generates the most income is Option 3 (increasing fees and charges
across all car parks), which has been forecast to generate additional income of £575,000
per annum excluding VAT, thereby contributing towards the Council’s medium term
financial strategy.
4.5
Members are aware that season ticket prices represent excellent value for money for local
residents parking and no increase has been modelled in relation to the charges for these. If
any of the above pricing increases are agreed consideration could be given to freezing the
charges for season tickets at the current levels to help support local residents parking. It is
also recommended that customers be able to pay for season tickets by direct debit as part
of the Council’s digital transformation strategy, delivering better customer service through
self-service and improved efficiency.
177
4.6
Sensitivity analysis has been undertaken to try and estimate the impact of a reduction in the
use of the car parks and the results of this can be seen below.
Car park tariff
Coastal
Resort
Standard
Total
No reduction
in usage
£274k
£225k
£76k
£575k
2.5%
reduction in
usage
£244k
£204k
£67k
£515k
5.0%
reduction in
usage
£213k
£183k
£60k
£456k
7.5%
reduction in
usage
£183k
£162k
£51k
£396k
4.7
As can be seen a drop in usage across the three car park types of 2.5% is estimated to
reduce the income by £60,000 from the base of £575,000, the 5.0% reduction would result
in £119,000 less income and a reduction of 7.5% a reduction of £179,000. It is not however
anticipated that the changes will have a dramatic impact on usage which has been
increasing steadily over previous years. Following any agreed changes to the charges the
income position would be closely monitored as part of the budget monitoring process.
4.8
As mentioned above investigations could be undertaken to explore some form of
concession scheme to be operated by local businesses. However at the present time no
further work has been undertaken in relation to the feasibility or costs of such a scheme.
4.9
As regards the estimated costs for implementation, the software changes required to the
Parkeon ticket machines will be around £9,000. There is however an anticipated change to
£1 coins expected in 2017 and the machines would need to be re-programmed for this
anyway. Parkeon have confirmed they should be in a position to make the changes from
April 2016 so this could be delayed slightly so both updates can be undertaken at the same
time once the charging changes have been agreed.
4.10
There will also be additional charges incurred in relation to updating all the signage
(c£1,000 – based on vinyl overlays) and printing updated car park leaflets (£3,000).
4.11
The total estimated cost of introducing the new charging regime for this year is therefore
around £13,000 and an allowance would need to be made for this within the revenue
budget to be funded from reserves/offset against additional income expected.
4.12
These changes would need to be implemented as part of a new Car Park Order (CPO)
which would include a full consultation process, any objections raised can then be
considered by Cabinet.
5.
Implementation
5.1
Subject to the Council agreeing any increase in car parking charges as part of the budget
setting process by the end of February, it would be possible to implement any new regime
from July 2016.
6.0
Conclusions
6.1
The proposals discussed in this paper are summarised in the table at 4.1 above although
clearly there are multiple variations on the possible range of pricing options. It is difficult to
establish how much increased charges will impact on car park usage and the figures above
assume current usage levels continue. Further, seasonal and annual variations may also
affect usage so that the real impact of the price changes could be obscured to some extent.
6.2
Due to the nature of car parking charges and for simplicity it is best to make any increases to
the nearest 10p. As discussed above even a relatively modest annual increase of 3.5% from
178
2012 would have increased the annual coastal charge from £1.20 per to £1.40 (rounded to
the nearest 10p).
6.3
The option which generates the most income is Option 3 (increasing fees and charges
across all car parks), which has been forecast to generate additional income of £575,000 per
annum excluding VAT, thereby contributing towards the Council’s medium term financial
strategy. Cabinet Members are asked to consider the options contained within this report and
make recommendations to Full Council on the preferred option so that these changes can be
considered as part of the budget setting process and inform the future financial strategy.
6.4
If any of the above pricing increases are agreed consideration could be given to freezing the
charges for season tickets at the current levels to help support local residents parking. It is
also recommended that customers be able to pay for season tickets by direct debit as part of
the Council’s digital transformation strategy, delivering better customer service through selfservice and improved efficiency.
6.5
Consideration also needs to be given to potential implementation dates but it is
recommended that the new charges are brought in for the 2016 summer season.
7
Sustainability
7.1
There are no sustainability issues in relation to this report.
8
Equality and Diversity
8.1
There are no equality and diversity issues in relation to this report.
9
Section 17 Crime and Disorder considerations
9.1
There are no Section 17 implications as a result of this report.
179
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
Agenda Item No____15_________
Treasury Management Strategy Statement 2016/17
Summary:
This report sets out details of the Council’s treasury management
activities and presents a strategy for the prudent investment of the
Council’s surplus funds.
Options Considered:
Alternative investment options are continuously appraised by the
Council’s treasury advisors, Arlingclose and all appropriate options are
included within this Strategy.
Conclusions:
The preparation of this Strategy Statement is necessary to comply
with the Chartered Institute of Public Finance and Accountancy’s
Code of Practice for Treasury Management in Public Services.
Recommendations:
That the Council be asked to RESOLVE that The Treasury
Management Strategy Statement is approved.
Reasons for
Recommendation:
The Strategy provides the Council with a flexible treasury strategy
enabling it to respond to changing market conditions and ensure the
security of its funds.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not
published elsewhere)
Cabinet Member(s)
Ward(s) affected: All
Cllr W Northam
Contact Officer, telephone number and email: Tony Brown, 01263 516126, tony.brown@northnorfolk.gov.uk
1.
Introduction
1.1
In April 2010 the Council adopted the Chartered Institute of Public Finance and
Accountancy’s Treasury Management in the Public Services: Code of Practice 2011
Edition (the CIPFA Code) which requires the Council to approve a treasury management
strategy before the start of each financial year.
180
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
1.2
In addition, the Department for Communities and Local Government (CLG) issued
revised Guidance on Local Authority Investments in March 2010 that requires the
Council to approve an investment strategy before the start of each financial year.
1.3
This report fulfils the Council’s legal obligation under the Local Government Act 2003 to
have regard to both the CIPFA Code and the CLG Guidance.
1.4
The Council has invested substantial sums of money and is therefore exposed to
financial risks including the loss of invested funds and the revenue effect of changing
interest rates. The successful identification, monitoring and control of risk are therefore
central to the Council’s treasury management strategy.
1.5
The treasury strategy set out in this report supports the budget for 2016/17 which is
included as a separate report elsewhere on this agenda.
2.
Context
2.1
Economic background: In the UK a number of factors have boosted consumer
confidence. This has helped maintain retail spending and hence growth in Gross
Domestic Product (GDP) of an encouraging 2.3% a year by the third quarter of 2015.
Wages are growing at 3% a year; unemployment has dropped to 5.4%; oil and
commodity prices are low contributing to annual inflation falling to 0.1% in October 2015
(as measured by the Consumer Prices Index (CPI)); annual house price growth is
around 3.5%; mortgage approvals have risen to over 70,000 a month and there has
been a decline in private sector savings.
2.2
Although some members of the Bank of England’s Monetary Policy Committee (MPC)
have indicated that they are willing to support higher interest rates, they maintained the
bank base rate at 0.5% for the 82nd consecutive month at its meeting in December 2015.
2.3
The outcome of the UK general election, which was largely fought over the parties’
approach to dealing with the deficit in the public finances, saw some big shifts in the
political landscape and put the key issue of the UK’s relationship with the European
Union at the heart of future politics. Uncertainty over the outcome of the forthcoming
referendum could put downward pressure on UK GDP growth and interest rates.
2.4
Credit outlook: Bail-in legislation, which ensures that large investors including local
authorities will rescue failing banks instead of taxpayers in the future, has now been fully
implemented in the UK, USA and Germany. The rest of the European Union will follow
suit in January 2016, while Australia, Canada and Switzerland are well advanced with
their own plans. Meanwhile, changes to the UK Financial Services Compensation
Scheme and similar European schemes in July 2015 mean that most private sector
investors are now partially or fully exempt from contributing to a bail-in. The credit risk
associated with making unsecured bank deposits has therefore increased relative to the
risk of other investment options available to the Council, and returns from these deposits
remain low.
2.5
Interest rate forecast: The Council’s treasury management advisor Arlingclose
forecasts the first 0.25% increase in UK Bank Rate in the third quarter of 2016, rising by
0.5% a year thereafter, and finally settling between 2% and 3% in several year’s’ time.
Persistently low inflation, subdued global growth and potential concerns over the UK’s
181
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
position in Europe mean that the risks to the forecast are weighted towards rate rises
being smaller or taking place later.
2.6
For the purpose of setting the budget for 2016/17, it has been assumed that treasury
investments together with the loans to housing associations will achieve an average
interest rate of 2.4%.
2.7
At the end of November 2015, the Council had total investments of £33.015m, details of
which are set out in the Appendix.
3.
Borrowing Strategy
3.1
The Council is currently debt free and its capital expenditure and financing plans do not
currently imply any external borrowing requirement over the forecast
period. Investments are forecast to fall as capital receipts and other NNDC reserves are
used to finance capital expenditure. Cash balances will be maintained at £25m, made
up from Reserves of £13m, working capital of £10m and a minimum liquidity sum of
£2m. External borrowing will be considered if capital expenditure causes cash balances
to fall below this sum.
3.2
The balance available for treasury investments is after taking account of £3.5m in loans
anticipated to be made to Housing Associations for service related purposes under the
Local Investment Strategy. These will be financed from capital receipts, reserves and
£0.924m of internal borrowing which will result in a future Minimum Revenue Provision
(MRP) charge being made to the revenue account.
3.3
In addition, the Council may occasionally borrow short-term in accordance with prudent
treasury management activity.
4.
Investment Strategy
4.1
The Council had an average balance of £31.4m invested to 30 November 2015. This
represents income received in advance of expenditure, plus balances and reserves held.
An average balance of £25.2m is anticipated in 2016/17, although it may be higher as
proved to be the case in 2015/16.
4.2
The CIPFA Code and the DCLG Guidance require the Council to invest its funds
prudently, and to have regard to the security and liquidity of its investments before
seeking the highest rate of return, or yield. The Council’s objective when investing
money is to strike an appropriate balance between risk and return, minimising the risk of
incurring losses from defaults and the risk of receiving unsuitably low investment income.
4.3
With the increasing risk and continued low returns from short-term unsecured bank
investments, the Council aims to further diversify into more secure and/or higher yielding
asset classes during 2016/17. In the past a significant proportion of the Councils surplus
cash has been invested in short-term unsecured deposits, certificates of deposit and
money market funds. This diversification into more secured lending and will represent a
continuation of the strategy adopted in 2015/16.
4.4
The strategy will be to make full use of the estimated £17m of “core cash” which is
available for longer-term investment. With long-term rates expected to remain low for a
long time, there is no advantage in investing short-term and it is better to invest for
longer periods at higher interest rates where cash flow allows. This may result in more
short-term borrowing being required, but such borrowing is readily accessible and cheap,
and doing so when required helps optimise longer-term investments.
182
Cabinet
Overview & Scrutiny
Full Council
4.5
08 February 2016
17 February 2016
23 February 2016
The Council may invest its surplus funds with any of the counterparty types in table 1
below, subject to the cash limits (per counterparty) and the time limits shown. Further
details are included from paragraph 4.5 onwards.
Table 1: Approved Investment Counterparties and Limits
Credit
Rating
Banks
Unsecured
Banks
Secured
UK
Govt.
N/A
N/A
£1.5m
5 years
£1.5m
5 years
£1.5m
4 years
£1.5m
3 years
£1.5m
2 years
£1.5m
13 months
£1.5m
6 months
£0.75m
100 days
£0.75m
next day only
£0.75m
6 months
£3m
20 years
£3m
10 years
£3m
5 years
£3m
4 years
£3m
3 years
£3m
2 years
£3m
13 months
£1.5m
6 months
£1.5m
100 days
AAA
AA+
AA
AAA+
A
ABBB+
BBB
None
Pooled
funds
Government
(includes
local
authorities)
£ Unlimited
50 years
£3m
50 years
£3m
25 years
£3m
15 years
£3m
10 years
£1.5m
5 years
£1.5m
5 years
£1.5m
5 years
£0.75m
2 years
n/a
Corporates
Registered
Providers
N/A
N/A
£1.5m
20 years
£1.5m
10 years
£1.5m
5 years
£1.5m
4 years
£1.5m
3 years
£1.5m
2 years
£1.5m
13 months
£0.75m
6 months
£1.5m
20 years
£1.5m
10 years
£1.5m
10 years
£1.5m
10 years
£1.5m
5 years
£1.5m
5 years
£1.5m
5 years
£0.75m
2 years
n/a
n/a
n/a
£3m
25 years
£50,000
5 years
£0.75m
5 years
£5m per fund
Note: The limits for banks apply equally to building societies as they are no longer treated any
differently.
4.6
Credit Rating: Investment decisions are made by reference to the lowest published longterm credit rating from Fitch, Moody’s or Standard & Poor’s. Where available, the credit
rating relevant to the specific investment or class of investment is used, otherwise the
counterparty credit rating is used.
4.7
Banks Unsecured: Accounts, deposits, certificates of deposit and senior unsecured
bonds with banks and building societies, other than multilateral development banks.
These investments are subject to the risk of credit loss via a bail-in should the regulator
determine that the bank is failing or likely to fail. Unsecured investment with banks rated
BBB are restricted to overnight deposits.
183
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
4.8
Banks Secured: Covered bonds, reverse repurchase agreements and other
collateralised arrangements with banks and building societies. These investments are
secured on the bank’s assets, which limits the potential losses in the unlikely event of
insolvency, and means that they are exempt from bail-in. Where there is no investment
specific credit rating, but the collateral upon which the investment is secured has a credit
rating, the highest of the collateral credit rating and the counterparty credit rating will be
used to determine cash and time limits. The combined secured and unsecured
investments in any one bank will not exceed the cash limit for secured investments.
4.9
Government: Loans, bonds and bills issued or guaranteed by national governments,
regional and local authorities and multilateral development banks. These investments
are not subject to bail-in, and there is an insignificant risk of insolvency. Investments
with the UK Central Government may be made in unlimited amounts for up to 50 years.
4.10
Corporates: Loans, bonds and commercial paper issued by companies other than banks
and registered providers. These investments are not subject to bail-in, but are exposed
to the risk of the company going insolvent. Loans to unrated companies will only be
made as part of a diversified pool in order to spread the risk widely.
4.11
Registered Providers (treasury investments as opposed to loans made for services
related purposes): Loans and bonds issued by, guaranteed by or secured on the assets
of Registered Providers of Social Housing, formerly known as Housing Associations.
These bodies are tightly regulated by the Homes and Communities Agency and, as
providers of public services, they retain a high likelihood of receiving government
support if needed.
4.12
Pooled Funds: Shares in diversified investment vehicles consisting of any of the above
investment types, plus equity shares and property. These funds have the advantage of
providing wide diversification of investment risks, coupled with the services of a
professional fund manager in return for a fee. Short-term Money Market Funds that offer
same-day liquidity and very low or no volatility will be used as an alternative to instant
access bank accounts, while pooled funds whose value changes with market prices
and/or have a notice period will be used for longer investment periods.
4.13
Bond, equity and property funds offer enhanced returns over the longer term, but are
more volatile in the short term. These allow the Council to diversify into asset classes
other than cash without the need to own and manage the underlying investments.
Because these funds have no defined maturity date, but are available for withdrawal
after a notice period, their performance and continued suitability in meeting the Council’s
investment objectives will be monitored regularly. At 31 December 2015 the Council has
£3m invested in each of the Royal London Cash Plus Fund and the Payden & Rygel
Sterling Reserve Fund (a short-dated bond fund), together with £5m in the Local
Authorities Property Fund (LAMIT).
4.14
Risk Assessment and Credit Ratings: Credit ratings are obtained and monitored by the
Council’s treasury advisers, who will notify changes in ratings as they occur. Where an
entity has its credit rating downgraded so that it fails to meet the approved investment
criteria then:
•
no new investments will be made,
184
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
•
any existing investments that can be recalled or sold at no cost will be, and
•
full consideration will be given to the recall or sale of all other existing investments
with the affected counterparty.
4.15
Where a credit rating agency announces that a credit rating is on review for possible
downgrade (also known as “rating watch negative” or “credit watch negative”) so that it
may fall below the approved rating criteria, then only investments that can be withdrawn
on the next working day will be made with that organisation until the outcome of the
review is announced. This policy will not apply to negative outlooks, which indicate a
long-term direction of travel rather than an imminent change of rating.
4.16
Other Information on the Security of Investments: The Council understands that credit
ratings are good, but not perfect, predictors of investment default. Full regard will
therefore be given to other available information on the credit quality of the organisations
in which it invests, including credit default swap prices, financial statements, information
on potential government support and reports in the quality financial press. No
investments will be made with an organisation if there are substantive doubts about its
credit quality, even though it may meet the credit rating criteria.
4.17
When deteriorating financial market conditions affect the creditworthiness of all
organisations, as happened in 2008 and 2011, this is not generally reflected in credit
ratings, but can be seen in other market measures. In these circumstances, the Council
will restrict its investments to those organisations of higher credit quality and reduce the
maximum duration of its investments to maintain the required level of security. The
extent of these restrictions will be in line with prevailing financial market conditions. If
these restrictions mean that insufficient commercial organisations of high credit quality
are available to invest the Council’s cash balances, then the surplus will be deposited
with the UK Government, via the Debt Management Office or invested in government
treasury bills for example, or with other local authorities. This will cause a reduction in
the level of investment income earned, but will protect the principal sum invested.
4.18
Specified Investments: The CLG Guidance defines specified investments as those:
4.19
•
denominated in pound sterling,
•
due to be repaid within 12 months of arrangement,
•
not defined as capital expenditure by legislation, and
•
invested with one of:
o
the UK Government,
o
a UK local authority, parish council or community council, or
o
a body or investment scheme of “high credit quality”.
The Council defines “high credit quality” organisations and securities as those having a
credit rating of A- or higher that are domiciled in the UK or a foreign country with a
sovereign rating of AA+ or higher. For money market funds and other pooled funds “high
credit quality” is defined as those having a credit rating of A- or higher.
185
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
4.20
Non-specified Investments: Any investment not meeting the definition of a specified
investment is classed as non-specified. The Council does not intend to make any
investments denominated in foreign currencies, nor any that are defined as capital
expenditure by legislation, such as company shares. Non-specified investments will
therefore be limited to long-term investments, i.e. those that are due to mature 12
months or longer from the date of arrangement, and investments with bodies and
schemes not meeting the definition on high credit quality. Limits on non-specified
investments are shown in table 2 below.
4.21
Table 2: Non-Specified Investment Limits
Cash limit
Total long-term investments *
£17m
Total investments without credit ratings or rated below A- *
Total investments (except pooled funds) with institutions
domiciled in foreign countries rated below AA+
Total non-specified investments *
* Includes £5m invested in the LAMIT Pooled Property Fund
4.22
£10m
£2m
£15m
Investment Limits: The Council’s revenue reserves available to cover investment losses
are forecast to be £13 million on 31st March 2016. In order to ensure only an
acceptable level of these reserves will be put at risk in the case of a single default, the
maximum that will be lent to any one organisation (other than the UK Government) will
be £3 million. A group of banks under the same ownership will be treated as a single
organisation for limit purposes. Limits will also be placed on fund managers,
investments in brokers’ nominee accounts, foreign countries and industry sectors as
shown in table 3 below. Investments in pooled funds and multilateral development
banks do not count against the limit for any single foreign country, since the risk is
diversified over many countries.
Table 3: Investment Limits
Cash limit
Any single organisation, except the UK Central
Government
UK Central Government
Any group of organisations under the same ownership
£3m each
unlimited
£3m per group
Any group of pooled funds under the same management
£5m per manager
Negotiable instruments held in a broker’s nominee account
£10m per broker
Foreign countries
£5m per country
Registered Providers
£7.5m in total
Unsecured investments with Building Societies
£3m in total
Loans to unrated corporates
£3m in total
Money Market Funds
£12.5m in total
186
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
4.23
Liquidity management: The Council maintains a cash flow forecast on an Excel spread
sheet to determine the maximum period for which funds may prudently be committed.
The forecast is used to minimise the risk that the Council is forced to borrow on
unfavourable terms to meet its financial commitments.
5
Treasury Management Indicators
5.1
The Council measures and manages its exposures to treasury management risks using
the following indicators.
5.2
Security: The Council has adopted a voluntary measure of its exposure to credit risk by
monitoring the value-weighted average credit score of its investment portfolio. This is
calculated by applying a score to each investment (AAA=1, AA+=2, etc.) and taking the
arithmetic average, weighted by the size of each investment. Unrated investments are
assigned a score based on their perceived risk.
Target
Portfolio average credit score
6.0
A credit score of ‘6’ equates to a long-term rating of ‘A’ (Fitch and S&P) or A2 (Moody’s).
5.3
Liquidity: The Council has adopted a voluntary measure of its exposure to liquidity risk
by monitoring the amount of cash available to meet unexpected payments within a
rolling three month period, without additional borrowing.
Target
Total cash available within 3 months
5.4
£3m
Interest Rate Exposures: This indicator is set to control the Council’s exposure to
interest rate risk. The upper limits on fixed and variable rate exposures, expressed as
the proportion of net principal borrowed (i.e. fixed rate debt net of fixed rate investments,
will be:
2016/17
Estimate
%
2017/18
Estimate
%
2018/19
Estimate
%
Upper Limit for
Fixed Interest
Rate Exposure
(100%)
(100%)
(100%)
Upper Limit for
Variable Interest
Rate Exposure
(100%)
(100%)
(100%)
5.5
As the Council’s investments exceed its borrowing, these calculations have resulted in a
negative figure.
5.6
The purpose of the limit is to ensure that the Council is not exposed to interest rate rises
on any borrowing which could adversely impact the revenue budget. Variable rate
borrowing can be used to offset exposure to changes in short term rates on investments.
187
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
However, the Council does not anticipate entering into borrowing (other than short-term
borrowing for cash flow purposes) during the period of the Strategy. These limits
therefore allow maximum flexibility for fixed or variable rate investments and investment
decisions will ultimately be made on expectations of interest rate movements as set out
in the Strategy. Fixed rate investments and borrowings are those where the rate of
interest is fixed for at least 12 months, measured from the start of the financial year or
the transaction date if later. All other instruments are classed as variable rate.
5.7
Maturity Structure of Fixed Rate borrowing:
5.8
This indicator highlights the existence of any large concentrations of fixed rate borrowing
needing to be replaced at times of uncertainty over interest rates and is designed to
protect against excessive exposures to interest rate changes in any one period, in
particular in the course of the next ten years.
5.9
It is calculated as the amount of projected borrowing that is fixed rate maturing in each
period as a percentage of total projected borrowing that is fixed rate. The Council is
currently debt free and does not anticipate new borrowing in 2016/17 (other than for
short periods for cash flow purposes). However, should the Council require to borrow for
the long-term, the limits below provide the flexibility to borrow fixed rate loans in any of
the maturity bands below.
Lower Limit
for 2016/17
%
0
Upper Limit
for 2016/17
%
100
12 months and within 24 months
0
100
24 months and within 5 years
0
100
5 years and within 10 years
0
100
10 years and above
0
100
Maturity structure of fixed rate borrowing
under 12 months
5.10
As the Council has no external debt, the limits above allow flexibility to borrow new loans
in the most appropriate maturity band.
5.11
Principal Sums Invested for Periods Longer than 364 days: The purpose of this
indicator is to limit exposure to the possibility of loss which may arise as a result of the
Council having to seek early repayment of the sums invested. The limits on the longerterm principal sum invested to final maturities beyond the period end will be:
Limit on principal invested beyond year end
2016/17
2017/18
2018/19
£17m
£15m
£15m
6
Policy on Use of Financial Derivatives
6.1
The CIPFA Code requires authorities to clearly detail their policy on the use of financial
derivatives in the annual strategy. These instruments are used to manage risks (such
as interest rate swaps to manage interest rate risks), and can be embedded into loans
and investments, or are standalone. The general power of competence in Section 1 of
188
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
the Localism Act 2011 removes much of the uncertainty over local authorities’ use of
standalone financial derivatives.
6.2
The Council will only use standalone financial derivatives (such as interest rate swaps)
where it can be clearly demonstrated that they reduce the overall level of financial risks
that the Council is exposed to.
6.3
Embedded derivatives, including those present in pooled funds and forward starting
transactions, will not be subject to this policy, although the risks they present will be
managed in line with the overall treasury risk management strategy.
7.
Investment Training
7.1
The needs of the Council’s treasury management staff for training in investment
management are assessed as part of the staff appraisal process. Staff regularly attend
training courses, seminars and conferences provided by Arlingclose and CIPFA.
8.
Treasury Management Advisors
8.1
The Council employs a Treasury Management Advisor, Arlingclose Limited, to provide
advice and information on counterparty creditworthiness, treasury strategy, economic
updates and technical support on all treasury matters. The Treasury Advisory Service is
periodically subject to tender to ensure the Council receives a quality service and
Arlingclose successfully tendered for a new contract commencing 1 April 2011. The
current contract expires on 31 March 2016.
9.
Financial Implications and Risks
9.1
The budget for investment income and loan interest in 2016/17 is £604,800 based on an
average balance of £25.2 million at an interest rate of 2.4%. This rate assumes the
Council’s £5m investment in the Local Authorities Property Fund makes an income
distribution of 6% (relative to the cost of the investment, rather than the current value),
and loans under the local investment strategy earn 3.625%. The rates which can be
earned on other investments included in this Strategy are anticipated to remain low
during 2016/17 and an average of 1.1% is assumed in the budget figure.
9.2
The effectiveness of the Treasury Strategy will have a significant impact on the budget
and finances of the Council. Investment decisions will be made based on the Council’s
forecast of interest rate movements. If actual rate movements prove to be very different,
there will be implications for the investment return achieved.
9.3
It is not possible to predict with certainty the future movements in interest rates. The
Strategy must therefore be flexible enough to allow the Council to respond to changing
market conditions. It must also enable the Council to respond to future changes in
legislation.
9.4
The Strategy represents an appropriate balance between risk management and cost
effectiveness. An alternative strategy might be to invest in a narrower range of
counterparties or for shorter periods. Interest income is likely to be lower as a
consequence, with a reduced risk of losses from counterparty default, but any losses
may be greater. Investing in a wider range of counterparties or for longer periods may
increase interest income with an increased risk of loss from defaults, and any such
losses may be smaller.
189
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
9.5
The security of the Council’s investments is of prime concern, and the Strategy must
ensure that, as far as possible, the Council’s investments are repaid in full, with interest
earned, on the due date.
10.
Sustainability – None as a direct consequence of this report.
11.
Equality and Diversity – None as a direct consequence of this report.
12.
Section 17 Crime and Disorder considerations – None as a direct consequence of
this report.
190
Cabinet
Overview & Scrutiny
Full Council
08 February 2016
17 February 2016
23 February 2016
Appendix J
Investment Position as at 30 November 2015
Proportion
of Portfolio
%
Amount
£
Average
Rate
%
Managed in-house
Short-term Investments
- Call Accounts with Banks
- Certificates of Deposit
Long-term Investments
- Covered Bonds with Banks & Building Societies
Managed externally
- Money Market Funds
- LAMIT Pooled Property Fund
- Other Pooled Funds
Total Investments
191
6
14
2,000,000
4,500,000
0.40
0.65
18
6,000,000
1.28
29
15
18
9,515,000
5,000,000
6,000,000
0.44
6.14
0.84
100
33,015,000
1.56
Agenda Item No_____16_______
Procurement of a Customer Contact Management System.
Summary:
The Digital Transformation Programme includes a
workstream to deliver an enhanced Customer Contact
Management (CCM) System, which will deliver the
following benefits





Options considered:
Ability to manage all digital communications
channels
Performance monitoring and management of all
customer contacts
Increased customers dealt with at first point of
contact
Increased efficiency resulting from reduced call
handling times
Financial savings as a part of the Digital
Transformation Programme
In order to deliver this workstream, this report requests
the release of previously identified funding to support
the provision of hardware, software and services to
procure and implement a CCM System.
Soft market testing and research has evaluated the
products and systems available to improve and
standardise the way in which we electronically interact
with users of the services provided by the council.
Systems which focus on telephony have been
compared with systems which also incorporate other,
modern, digital communication channels such as e-mail
and social media.
Systems have been evaluated that are both installed on
Council infrastructure and that are installed on shared
infrastructure in the cloud.
Conclusions:
An effective and efficient Customer Contact
Management system is a critical component of the IT
infrastructure required to support the delivery of the
Digital Transformation Programme. It will deliver
improvements in customer service and financial
savings.
A solution that is fully compatible with existing licensing
and technology considerations is essential to ensure
effective Customer Service business processes and to
provide service users with simple to use systems.
192
Conducting an implementation in Customer Services
followed by a wider, phased, rollout programme
represents the least risk and fastest delivery of the
business benefits approach to the project.
Because the CCM will be fully integrated with the
existing Unified Communications Systems and other
Service specific software it has been determined that an
on-premise, rather than a cloud based solution, is the
most appropriate at this time.
Recommendations:
That Cabinet approves 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.
Reasons for
Recommendations:
In order to ensure that the Council has facilities in place
to efficiently manage customer contacts in a standard
way, across all electronic communications mechanisms,
it is necessary to upgrade the current system, which has
reached the end of its expected operational lifetime.
Users of Council services increasingly expect to be able
to communicate using a wide variety of electronic
means. Therefore any system that is procured will need
facilities to manage these.
The application of a solution which has facilities
managing a variety of communication channels
improve both the quality of customer service and
efficiency of the business processes which deliver
services.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not
published elsewhere)
Cabinet Member(s)
Cllr. Tom FitzPatrick
Ward(s) affected
all
Contact Officer, telephone number and email:
Sean Kelly, 01263 516276, Sean.Kelly@north-norfolk.gov.uk
193
for
will
the
the
1
Introduction
1.1
Members will recall that, in the Digital Transformation Programme (DTP)
which Cabinet approved in 2013, it was identified that further reports would
be brought to Cabinet as the work-streams within the Programme were
developed and specific funding was required
1.2
One of the critical elements of the DTP, is the establishment of a Council wide
Customer Contact Management (CCM) system, to ensure that users of
Council services are able to interact with the council in an equally efficient
and effective manner, irrespective of which electronic method they choose to
use.
1.3
The existing system (known as CC6) was implemented in 2008 and is at the
end of its expected operational lifetime. Importantly, it only provides limited
customer contact management and is only applicable to telephone contacts.
1.4
Increasingly, the public have an expectation to be able to communicate with
organisations, including the Council, via modern digital means such as e-mail,
text and social media. It is essential that any new system adequately supports
these new technologies.
1.5
The recently commissioned, unified communications system (Microsoft Lync)
has provided a foundation of leading edge communications capabilities. This
will enable us to handle customer queries much more efficiently by quickly
routing them to the most appropriate officer and it does this across all digital
communication means e.g. e-mail and social media; as well as telephony. It is
essential that any procured CCM system utilises and builds upon these
capabilities.
1.6
In addition, the CCM will allow the provision of accurate, measured
performance data across all customer service communications. This will
assist in ensuring and importantly, demonstrating, improved customer
service. Additionally, it will also assist in identifying which areas should be
prioritised for channel shift activity to deliver maximum efficiencies; for
example, moving telephone enquiries to the website.
2
Approach
2.1
We will procure third party systems and software which meet the needs of the
Council to improve the operation and management of customer contacts
across the key electronic communications systems.
2.2
As described in 1.5 above, we will ensure that the system procured is fully
compatible and able to be integrated with any of the Council’s IT systems
2.3
All procurement will be undertaken in line with standard Council procurement
processes, over the three months.
2.4
The CCM system will be deployed in Customers Services first and
subsequently, to all teams and functions that provide customer facing
services. The wider rollout will be prioritised on the basis of the business
194
benefit and operational needs, across the coming year. Generally these will
be identified by the ongoing Business Process Reviews, although some will
be implemented early if the opportunity arises This is the same approach that
was taken in transferring customer contacts from Building Control to the
Customer Services team, thus avoiding the need for additional admin support.
2.5
As the Digital Transformation Programme progresses, the CCM system will
be further integrated with other service specific systems. This will provide
better information about the customer for the officer receiving that customer
contact. In turn, this will improve customer service by dealing with the
maximum number of customer enquiries at the first point of contact and will
also speed up that contact.
3
Financial Implications and Risks
3.1
Financial Implications
Initial soft market testing, has indicated that a solution that meets the needs of
the Council will require capital funding of approximately £60,000. This will
obviously be finalised as part of the procurement process.
Ongoing revenue support costs will be accommodated from the existing
budget provision for the old CC6 system which, as previously discussed, has
reached the end of its operational lifetime.
The CCM system is a critical component of the Digital Transformation
Programme (DTP), which is planned to deliver overall savings in the region of
£400,000 per annum, this being phased in across the lifetime of the
Programme.
Whilst it is difficult to identify the level of savings which will accrue directly
from the new CCM system, there will be a large number of incremental
savings arising from improvements in the handling of individual customer
transactions. Based on the assumptions contained in the original business
case for the DTP, it is reasonable to assume that this system will enable a
saving of at least £24,000 per annum within the Programme.
The above sums are all within the initial estimates for the DTP approved by
Cabinet in November 2013.
3.2
Risks
The delivered solution fails to meet the business needs of the Council.
To mitigate this risk, representatives from the relevant services will be fully
engaged in scoping and defining the outcomes of both the pilot and full rollout
phases of the project.
Increased project costs, resulting from inaccuracies in the soft market testing,
and/or the scope of requirements being extended.
This risk will be mitigated by ensuring that the costs and business benefits of
the project are reviewed, during procurement, at the conclusion of the pilot
phase, and regularly throughout the rollout.
195
Failure to deliver the financial benefits identified.
The CCM system is a significant component of the digital infrastructure
improvements and, as such, will be subject to the project and programme
governance arrangements, which are specifically designed to ensure that the
benefits are realised.
4
Conclusions
An effective and efficient Customer Contact Management system is a critical
component of the IT infrastructure required to support the delivery of the
Digital Transformation Programme. It will deliver improvements in customer
service and financial savings.
A solution that is fully compatible with existing licensing and technology
considerations is essential to ensure effective Customer Service business
processes and to provide service users with simple to use systems.
Conducting an implementation in Customer Services followed by a wider,
phased, rollout programme represents the least risk and fastest delivery of
the business benefits approach to the project.
Because the CCM will be fully integrated with the existing Unified
Communications Systems and other Service specific software it has been
determined that an on-premise, rather than a cloud based solution, is the
most appropriate at this time.
5
Sustainability
The provision of an effective Customer Contact Management system will
encourage the take up of on-line, self-service by the users of Council
provided services.
It will also facilitate efficient electronic service processes which will result in
reduced environmental impact from service delivery related travel.
6
Equality and Diversity
There are no equality and diversity implications directly resulting from the
recommendations or options considered in this report.
7
Section 17 Crime and Disorder considerations
There are no Crime and Disorder implications directly resulting from the
recommendations or options considered in this report.
196
Agenda Item No______17______
Public Space Protection Orders
Summary:
This report details the options of delegation for Cabinet
to decide on the best method 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 follows on from the
January 2015 report on the new powers given to the
Council by the Anti-social Behaviour, Crime and Policing
Act 2014.
Options considered:
1. Take all amendments to existing Orders and
requests for new Orders to full Cabinet.
2. Cabinet to delegate its executive powers as per
one of the options below:
a) Delegate to a Cabinet committee composed
of cabinet members
b) Delegate to an individual cabinet member
(probably portfolio holder)
c) Delegate to an officer (Head of Service)
All of the above would include consultation as per the
legislation and with the local member affected by the
proposed Order.
Conclusions:
Recommendations:
In January 2015 a Cabinet report highlighted the
changes in the legislation with the introduction of the
new Act. This report seeks to move forward with the
designation of PSPOs across North Norfolk where there
is a need for them and then review them once every
three years as required in the legislation.
1.
2.
Reasons for
Recommendations:
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.
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.
197
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Anti-social Behaviour, Crime and Policing Act 2014 – Part 4, Chapter 2, sections 5975
Anti-social Behaviour, Crime and Policing Act 2014: Reform of anti-social behaviour
powers: Statutory guidance for frontline professionals – Home Office July 2014
Dealing with irresponsible dog ownership: Practitioner’s manual – DEFRA October
2014
Antisocial Behaviour Crime and Policing Act - Powers and Duties – NNDC Cabinet
report January 2015
Cabinet Member(s)
Ward(s) affected
Angie Fitch-Tillett
All wards
Contact Officer, telephone number and email:
James Wilson
Environmental Protection Manager
james.wilson@north-norfolk.gov.uk
01263 516274
1.
Introduction
1.1
In October 2014, the Anti-social Behaviour, Crime and Policing Act 2014
came into force, giving the Council new powers to implement Public Space
Protection Orders (PSPOs) to deal with a nuisance or an anti-social
behaviour issue that is detrimental to the local community’s life by imposing
conditions on the use of a specific area of land.
1.2
This power replaces several others powers to make similar Orders under
separate pieces of legislation. The Council used two of these, namelyDog
Control Order in relation to tackling dog fouling and the walking of dogs in
specific locations, and the Designated Public Place Order used to tackle the
drinking of alcohol in public within the some of the Council’s market towns.
1.3
In January 2015, a Cabinet report highlighted the changes in the legislation
with the introduction of the new Act. This report asks for a scheme of
delegation to move forward the designation of PSPOs across North Norfolk
where there is a need for them and then review them once every 3 years as
required in the legislation.
2.
Public Space Protection Orders
198
2.1
Public Space Protection Order (PSPO) - The Public Space Protection Order
replace the Designated Public Place Order (DPPO), the Gating Order and the
Dog Control Order (DCO). The new order is intended to deal with a particular
nuisance in a particular area which negatively affects the community’s quality
of life.
2.2
They apply to everyone and will impose conditions on the use of a particular
area (e.g. restricting the use of a highway late at night by groups of people,
the drinking of alcohol in a public space or banning dogs from a location).
2.3
Only local authorities may issue these orders. The authority must reasonably
believe that the behaviour is detrimental to the local community’s quality of life
and that the impact of the behaviour warrants restrictions being implemented.
The behaviour must be on-going or persistent (or there must be a reasonable
belief that future behaviour will be on-going or persistent).
2.4
Orders may last for up to three years and may be extended. The breach of an
order will be a criminal offence subject to prosecution or a fixed penalty
notice. The amount for these was agreed by cabinet in January 2105 as £80
with a reduced fee of £60 if paid within 10days.
2.5
The Council currently has 27 Dog Control Orders and 4 DPPOs (Cromer,
Sheringham, North Walsham and Fakenham) which will require review under
the new Act and then every 3 years, with justification for their continuation.
The Council has also received requests for at least 10 new Orders which also
need to be considered.
3.
Current Progress
3.1
Officers from the Environmental Protection Team have assessed at the
existing Dog Control Orders in terms of whether they are still relevant,
enforceable and is there evidence that they are still required. This has
identified some existing Orders that officers feel are not enforceable or
actually needed and others where small amendments are required.
3.2
We are also in consultation with the local police in each of the areas where a
DPPO currently exists to establish if there is a need for this to be retained,
evidence of its use and whether any amendments need to be made should a
new PSPO be made.
3.3
Once this process has been completed a consultation exercise will be
commenced to ensure the Council meets the requirements of the legislation
and statutory guidance before taking back for approval of the Order on the
Council’s behalf.
4.
Financial Implications and Risks
199
5.1
The implementation of these new orders has no significant financial
implications to the authority with the cost of the consultation process and any
new signage required being met from the existing budget for this service area.
5.2
As above there are no significant risks associated with the implementation of
this process as long as all delegated decisions are recorded in detail with
options considered rejected/excepted, advice taken and results of any
consultations undertaken.
5.3
The only other risk is associated with an expectation of the local community
around enforcement of these orders, it needs to be made clear at the early
stages of consultation that enforcement will only take place where there are
significant and regular breaches of the new orders.
5.
Sustainability
5.1
There have been no sustainability
recommendations of the report.
6.
Equality and Diversity
6.1
This report does not raise any issues relating to Equality and Diversity.
7.
Section 17 Crime and Disorder considerations
7.1
The new powers have a crime and disorder focus and the proposals in this
report will positively contribute to meeting Section 17 responsibilities.
200
issues
identified
with
the
Agenda Item No____18________
Property Investment Strategy – Establishment of Property Company
Summary:
This report seeks approval to establish a wholly
owned property company in the form of a
company limited by shares to undertake the
development of and investment in property in
order to generate a revenue and capital return to
the Council. To establish the company, the
Council will provide initial short term loan and long
term funding on a commercial basis which will
generate a rate of return which will be greater
than the return currently being achieved on the
Council’s short term treasury investments. Once
established, the Council may choose to provide
future loan funding to support continued
development and investment activities. Where
required, the Council may undertake borrowing
from the Public Works Loan Board in order to
provide the required loans to the company, such
borrowing will be funded by the loan repayments
from the company and so will be at no cost to the
Council.
Options considered:
Option 1 – Establish property company as wholly
owned company limited by shares, utilises
existing powers and enables additional revenue
and capital receipts to be generated for the
Council. This option is therefore recommended.
Option 2 – Establishing property company as
wholly owned company limited by guarantee or as
limited liability partnership were not considered to
offer the same outcomes as a company limited by
shares and are not recommended.
Option 3 - Formulation of a Joint Venture was not
considered to be an appropriate structure at this
time and would be too slow and complex to meet
the Council’s needs at this time. However, the
Council and or property company could in the
future participate in a joint venture if this meets
future requirements. This option is therefore not
recommended at this time.
Conclusions:
In order to support delivery of both statutory and
non-statutory services the Council needs to
become more commercial and look to maximise
income generation. To meet this requirement,
this report recommends the creation of a wholly
201
owned property company limited by shares. As
sole shareholder, the Council will be able to
appoint and dismiss the Board of Directors who
will be responsible for the operation of the
Company.
Board Directors can be Council
members, officers and independent persons, the
report recommends that in order to ensure the
board has the required level of skills and expertise
that at least one independent person is appointed
to the board.
The company will generate an income for the
Council in the form of dividends, while the Council
is sole shareholder all dividends will be provided
to the Council. In addition to receiving dividends
from the profits made by the company, the
Council will also benefit from the interest
generated on both short term and long term loans
provided to the Council and the payment for any
staff or services provided by the Council to the
company.
If the Council sells land to the
company for development it will receive capital
receipts reflecting the full market value of the
land.
The creation of a property company will generate
a return to the Council in the medium and long
term through the sale of developments and the
ongoing revenue generated through retention of
property assets such as private rented properties
and leases on commercial buildings.
The
dividends the Council received will be based on
net profits as all costs including Corporation Tax
and VAT will need to be paid before the profit can
be distributed to shareholders. In addition the
need for future working capital will need to be met
from company profits.
The provision of loans to the property company by
the Council is required to enable the company to
start trading and will be provided as a mixture of
short term loans to provide initial working capital
and development funding and long term loan
funding to fund the ownership of assets. Such
loans will be on commercial terms to ensure State
Aid and “thin” capitalisation issues do not arise.
All loans will be subject to a due diligence
process.
Recommendations:
It is recommended that:
1. a wholly owned property company
limited by shares is established to
undertake property development and
investments as set out in this report
and that the amount of equity funding
202
2.
3.
4.
5.
6.
required to establish the property
company once it has been legally
incorporated is provided to it.
Full Council shall undertake the role of
shareholder on behalf of the Council.
Delegated authority is provided to the
Chief Executive in conjunction with the
Portfolio Holder and Section 151 Officer
to:
 Sign off the business case for
the
establishment
of
the
property company
 Agree the name and brand
identity of the property company
 Negotiate
and
agree
the
completion of the Articles of
Association and Shareholders
Agreement for the property
company
 Agree
and
complete
all
documents needed for the
incorporation of the property
company
 Agree and complete any other
documentation
required
to
establish the property company
in accordance with this report
 Agree which staff and services
shall be provided to the
company
and
agree
the
appropriate charge to made for
the provision of all staff,
services and Directors to the
company.
Trading of the new property company
shall only commence once the actions
at recommendation 3 have been
completed and the first Annual
Business Plan has been submitted to
and approved by Full Council in their
capacity as Shareholder.
The Treasury Management Strategy is
amended to:
 Allow for the provision of loans
to the property company in full
compliance with State Aid
requirements
 Allow for investments in the
property company to be made.
Allowance be made through revision to
the 2016/17 capital programme and
future
capital
programmes
for
provision to the property company of:
 short term loans to provide
203
working capital and facilitate the
initial
developments
and
investments as required
 longer term loans to fund
ownership of revenue generating
assets
to be funded from internal borrowing or
external borrowing as appropriate with
the Head of Finance and the Portfolio
Holder delegated to approve each loan.
Reasons for
Recommendations:
To support the Council’s Corporate Plan priorities
to:
 Make the Council more efficient so that we
can both deliver our priorities and offer
value for money for local taxpayers, by
generating revenue and capital returns for
the Council over the short, medium and
longer term
 Addressing the housing and infrastructure
needs for local people whilst meeting the
market demand for housing by supporting
the delivery of new housing across the
district.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Half Year Treasury Management Report for 2015/16 – Cabinet 2 November
2015
Cabinet Member(s)
Cllr J Rest, Cllr W
Northam
Ward(s) affected All
Contact Officer, telephone number and email: Sheila Oxtoby, 01263 516000,
sheila.oxtoby@north-norfolk.gov.uk
1.
Introduction
1.1
Current budget modelling shows that by 2020/2021, the Council
expects that it will no longer receive Revenue Support Grant and the
funding of both statutory and non-statutory services will need to be
met from the Council’s share of Council Tax (including New Homes
Bonus monies for as long as the scheme exists) and Business Rates
and increasingly other funding which the Council can generate itself.
It is therefore imperative that the Council becomes more commercial
in its approach and seeks to identify new funding streams. To date
the Council has invested £5m in the LAMIT pooled property fund for a
period of 5 years which is expected to deliver a 6.08% return and
204
agreed through the Local Investment Strategy to provide loans to
Registered Providers and their wholly owned subsidiaries.
1.2
Through these two interventions the Council is generating a higher
return for its capital investments than can be achieved elsewhere and
additionally by providing loans which will fund the development of new
housing across the district it will benefit from the increased Council
Tax income and also New Homes Bonus payments. In addition the
provision of new homes both market and affordable helps to deliver
against the Corporate Priority to deliver new housing to meet local
needs and such development has wider economic benefits.
1.3
The Corporate Plan 2015-18 recognises the importance of property in
meeting the Council’s need to generate more income to fill the gap left
by the ongoing reduction in Revenue Support Grant and includes two
specific actions:
 Taking a more commercial approach to the management of
our asset portfolio
 Investing in property as a means by which we will improve
income streams.
This report considers how the establishment of a wholly owned
property company will allow the Council to meet its Corporate Plan
priorities and deliver an ongoing revenue and capital income to the
Council through the development and / or investment in residential
and non-residential property.
The purpose of establishing the
company is therefore a commercial one to provide a vehicle which
allows the Council to undertake commercial activity in the residential
and non-residential property markets in order to generate a revenue
and capital return to the Council.
2.
Establishing a property company – proposed structure
2.1
The Council sought legal advice from Trowers and Hamlins on the
key issues which should be considered in establishing a separate
company to undertake property development and specifically in
relation to the legal powers, governance arrangements, state aid,
consents, funding, use of receipts and Right to Buy implications for
each of the options available including the Council directly investing in
property.
2.2
The legal advice clearly shows that whilst the Council could in theory
undertake development directly this is not the most advantageous
option to the Council and would in fact, be a breach of statute as
Chapter 1 of the Localism Act requires that where the Council
exercises its general power of competence, if it is pursuing a
commercial purpose it must do this through a company. The advice
recommends that the Council therefore undertakes the commercial
purpose of a property company through the establishment of a wholly
owned company limited by shares. The alternative options are not
recommended because they do not provide the same advantages of a
company limited by shares. The legal advice at Exempt Appendix
1 includes a comparison table which sets out the options considered
in relation to the specific issues considered by the advice.
2.3
A company limited by shares (CLS) will be controlled by a Board of
Directors. As shareholders the Council will be able to nominate Board
205
members and can require the removal of a Board member(s). Whilst
the Council is sole or majority shareholder it will be able to exercise
control over the operation of the company (please also see
commentary on commerciality and governance in paragraph 2.4).
The legal advice suggests the use of a Shareholder Agreement which
will set out the detailed arrangements through which the Council will
control the company and will safeguard the Council’s key commercial
and wider interests.
2.4
A company limited by shares offers a number of clear advantages:
 Profits can be paid to the shareholders as dividends.
As the sole shareholder the Council will receive a dividend
payment taken from net profits representing all of the dividends
available for payment.
 In the future the Council can sell some or all of its shares in
the company.
Selling shares will generate a capital receipt for the Council.
Selling all of the shares will allow the Council to release control of
the company and its assets. An alternative to selling some of the
shares is to use these to provide an equity stake in a future
partnership arrangement or joint venture. Any shares sold could
in future be repurchased subject to the Council having the funding
available and the shareholders agreeing to sell the shares.
Where some of the shares are sold, dividends will be split on a
pro-rata basis to reflect share ownership.
 Stamp Duty Land Tax relief applies
Where the Council owns at least 75% of the shares, the company
should be able to take advantage of group relief from Stamp Duty
Land Tax on the value of land transferred to the company. Any
transfers of land, however, must be at full value.
 Flexibility
A company is able to create subsidiaries which will allow it to
diversify or create separate companies to undertake different
activities such as residential and non-residential or development
and investment activities. In addition a company can partner with
other companies or enter into joint ventures.
 Commerciality
The company will make decisions solely on a commercial basis
reflecting the best interest of the company and its business plan,
unless the Council chooses to impose controls over decision
making through the constitution or Shareholders Agreement.
Constraints on the company’s (and Board of Directors) decision
making must be considered in light of the requirement that the
company is a commercial entity established to generate the
maximum return to its shareholders.
 Governance
The Board of Directors will be responsible for strategic direction
as well as the operation of the company to ensure it delivers its
objectives and meets (or exceeds) its business plan. Whilst the
206
Board is responsible for developing the business plan, the
shareholders through the Articles of Association or Shareholders
Agreement will be responsible for considering and approving it.
In exercising its right as sole shareholder to nominate (appoint)
Board members, the Council will need to make a decision as to
whether such appointees will be members, Council officers,
independent persons or a combination of some or all of these.
Decisions as to appointees will either reflect the need for
commercial expertise or the need to establish political
representativeness. Where a conflict of interest arises from
Board Directors who are members or officers of the Council
between their Council and company roles, Directors must act in
the best interest of the company. Potential conflicts must be
considered prior to the appointment process. The legal advice
supports the inclusion of independents in terms of their ability to
bring the required commercial expertise to the board and
suggests the inclusion of at least one independent who could act
as Chair. The legal advice suggests that the Board should
consist of between 3 and 7 Directors.
 Procurement
As a commercial entity, the legal advice concludes that the
company will not be considered to be governed by public law and
would therefore be able to procure services and contracts outside
of the EU procurement rules. The company would be able to
seek the most advantageous service or contract. However,
procurement rules may apply if the Council in transferring land
applies specific requirements for the use of that land.
 Tenancy issues
If the company developed or purchased rented housing for a
medium or long term return, the company would be able to use
assured shorthold tenancies to let the properties. The assured
shorthold tenancy is long established and familiar to both tenants,
letting agents, funders and the Courts. A statutory power is
available to end an assured shorthold tenancy.
2.5
Disadvantages of a company
The main disadvantage of establishing a company is the loss of
control to the Council. Whilst with a company limited by shares, the
Council will as sole or majority shareholder be able to agree the
business plan and appoint and dismiss the Board Directors.
Decisions will be made by the Board of Directors with the best interest
of the company in mind and so decisions will be made for commercial
reasons and may not reflect the wider priorities or aspirations of the
Council.
Other disadvantages are:
 Corporation Tax
The company will be liable to pay Corporation Tax on profits,
whereas the Council is exempt.
 VAT
207
The Council is exempt from VAT on non-business activities
whereas the company will be VAT liable. Whilst new build
housing costs can be zero rated, ongoing repair and maintenance
costs will incur VAT which is unlikely to be recoverable.
 Risk
The company once established will have no resources and will
require the Council to lend it monies for initial working capital and
to fund developments and/or investments. Such lending carries
more risk than the Council undertaking the development or
investment directly, this risk and mitigation is discussed at
paragraphs 3.9, 6.4, 7.3 and 7.9.
2.6
Other considerations in the establishment of a property company are:

State Aid
Any support provided to the company must be on commercial
terms or will be considered State Aid. Therefore all loans must be
provided at market rates and terms.

Right to Buy
Government supports local authorities directly intervening in
housing delivery, however it has raised concerns that some
authorities may be establishing local housing companies in order
to circumvent the Right to Buy for Council tenants or to avoid debt
limits on borrowing within a Housing Revenue Account. The legal
advice is clear that whilst the Council must not establish a
company to avoid the Right to Buy, establishing a company (even
one wholly owned by the Council) creates a separate legal entity
which will grant assured tenancies and not secure tenancies.

Powers and Consents
The Localism Act 2011 provides for a general power of
competence and requires any commercial activity undertaken
using this power to be undertaken through a company. The
establishment of a company is therefore lawful.
The Council is able to dispose of land it holds using a general
consent where that disposal is at best consideration (Section 123
of Local Government Act 1972). This allows the Council to sell
land to the property company at market value which should be
determined by a valuation.
Land disposals for housing
development can be at less than best consideration where there
is a welfare benefit, however such a disposal to the property
company would be likely to be considered State Aid and should
be avoided.
3
Establishment of a property company – matters to consider
3.1
In establishing a property company there are a number of matters to
consider:



Shareholders responsibilities
Operational area and establishment of business case
Name of company and establishment of brand identity
208



Agreement and completion of the Articles of Association and
Shareholders Agreement for the property company
Appointment of Board of Directors
Agreement of and completion of all documents needed for the
incorporation of the property company.
These issues are discussed in detail below along with the servicing of
the company, funding and other legal considerations.
3.2
Shareholders responsibilities
Full Council will undertake the shareholder role for the company on
behalf of the Council. The Articles of Association and Shareholder
Agreement (see below) will establish how much control the Council
will have over the company. The main role of Full Council will be to
consider and agree the annual Business Plan for the company and to
ensure that the Council’s key commercial and wider interests are
protected. However, in doing so, Full Council must not compromise
the companies commercial function or flexibility or its exemption from
EU procurement rules.
3.3
Operational area and establishment of business case
To ensure that the company (and through it the Council) is able to
take advantage of all available opportunities to it, the property
company will develop and invest in residential and non-residential
property. This wider property focus will also provide opportunities for
the Council to consider whether the property company would be best
placed to take on ownership of existing property assets. There are
wider financial benefits to the Council if the company develops new
housing or new employment facilities in the district, but it is not
considered that the property company should, through the
Shareholders Agreement be constrained from operating within the
North Norfolk District Council area. The company should be able to
take advantage of opportunities across the country where they would
generate the financial returns required by the business plan.
It is proposed that the company will both directly develop residential
and non-residential property and invest in property by purchasing
suitable existing property or retaining some or all of the property it has
itself developed. The company will therefore hold residential property
and non-residential property to generate an ongoing revenue income
through rents of private rented properties and lease fees on
commercial premises or leasehold residential properties. It is not
recommended that the company is constrained as to the period for
which these assets are held which will allow the company to make
decisions as to whether such assets should be sold and if so when to
maximize the return on its investment. It is also not recommended
that the company retains affordable housing for rent as this could be
seen to dilute the commercial focus of the company and these
dwellings could be at risk of being directed to be held by the Council
in a Housing Revenue Account.
If Full Council approves the establishment of the property company, a
full business case will be prepared for the proposed company which
will consider further the financial modeling received from Savills and
209
will identify the funding requirements for the first developments of the
company and the viability of these proposed schemes. The business
case will establish the robustness of the proposed model and allow
decisions to be made as to the provision of loans and the level of
equity funding to be provided. Where land or other assets are
proposed to be sold to the property company, Cabinet approval for
such disposals at market value will be sought.
3.4
Name of company and establishment of brand identity
The company will need a separate identity to the Council which will be
established through the creation of the company name and brand
identity. The name and brand is integral to the separation of the
company from the Council.
3.5
Agreement and completion of the Articles of Association and
Shareholders Agreement
The Articles of Association document is key to the operation of the
company and how decisions are made. The Shareholders Agreement
will complement the Articles of Association and enable the Council to
influence high level and strategic decisions of the company and
especially require that the Council considers and agrees the annual
Business Plan.
3.6
Appointment of the Board of Directors
Directors must have the required skills, knowledge and expertise to
manage a commercial company and ensure that the achievement of
its objectives are not compromised or put at risk. The legal advice is
clear that there is a balance between the Council having political
confidence in the company and the need for market confidence in the
company and its board.
The pool of potential Directors includes district councilors and officers
and independent persons. The legal advice recommends the inclusion
of at least one independent person who could also be Chair of the
Board to provide the required creditability and market confidence in
the company.
The legal advice suggests officers should provide
operational support and technical support rather than be Directors but
there is nothing to prevent officers being Directors of the company.
Directors can be paid, however, where Directors are also councilors
they cannot be paid or they will be at risk of disqualification (Section
80 of the Local Government Act 1972). In order to attract the required
expertise to the board, independent members could be paid and a
decision will be required on this matter.
Any district councilor or officer appointed to be a Director on the
Board will need to be clear that they are required at all times to act in
the best interest of the company and are legally responsible for
running the company. Conflicts of interest between their role as a
Director of the company and their Council role or personal interests
could therefore arise and the potential for such conflicts should be
considered in advance as part of the process of appointing Directors.
The Directors will be responsible for ensuring that developments and
investments undertaken by the company are appropriate and will
deliver the objectives of the company. As part of this the risk of not
210
achieving the targeted profit will be considered and modelled as part
of the due diligence process undertaken for each project.
3.7
Agreement and completion of all documents needed for the
incorporation of the property company.
It is recommended that the Chief Executive in conjunction with the
Portfolio Holder and Section 151 Officer is delegated to complete and
agree any additional documents required for the incorporation of the
property company. These documents will be in addition to the Articles
of Association and Shareholders Agreement.
3.8
Servicing the company
The property company once established will have no staff and will
need to procure staff resources or services such as finance, legal and
IT in order to operate. Initially it is considered that the company’s staff
and services requirement can be met through the utilisation of Council
staff with relevant skills and expertise, use of Council services and/or
by the employment of consultants. The company will procure
contractors to undertake development on its behalf and is not
expected to directly employ construction staff. The management and
maintenance of assets developed or acquired by the company can be
procured externally as and when required.
The Council’s legal advice states that the company can, through the
establishment of the company enter into a contractual arrangement
with the Council for the provision of services.
Where the Council provides staff or services such provision must be
clearly documented through a service level agreement and provided
on a full recovery of cost basis in order to comply with the State Aid
requirements.
The Council cannot subsidise these costs but
conversely if it charges more than a market cost for these services
this will impact on the viability and profitability of the company.
TUPE implications could arise if the company in the future decides to
end its use of Council staff or services provided through the service
level agreement(s).
3.9
Funding
There will be costs to establish the company which and to prepare the
business case which are not expected to exceed £60,000 which shall
be funded from reserves.
The company will require funding to carry out development and
investment activities. Initially the company will require working capital
in order to pay for the staff and services required to draw up the initial
development and investment opportunities and to fund the initial
development costs such as professional fees and planning fees.
These costs may be able to be met from the initial equity funding that
the Council will provide to the company once formally incorporated.
In addition to the equity funding, the company will also require short
term loan(s) to fund the acquisition of land and construction costs and
to meet any other working capital funding requirements. These short
term loans will be repaid when the completed development is sold
and/or refinanced over the long term where an asset is to be retained
as a medium or long term investment. It is expected that the Council
will also provide the long term loans needed to hold investments and
211
that the initial loan short term loan will be refinanced as a long term
loan.
As a startup company, the property company will have no assets and
no track record of delivery which will make it very difficult to either
obtain the required loan funding or afford the loans which are
available. It is therefore recommended that the Council provides
loans to the company at least initially, and the Council has the
required powers to do so. As the company becomes established in
terms of assets and the period it has been successfully trading for, its
ability to attract external funding will increase. In addition selling
shares or sharing equity will be possible options to lever in additional
funding in the future.
The financial implications to the Council of providing loans to the
company are discussed at paragraph 7.3.
The exact funding requirements in terms of short term loans for the
initial developments will be identified through the development of the
business case and first Business Plan for the company.
3.10
Other Legal Considerations
The Local Government and Housing Act 1989 imposes a number of
requirements when a Council establishes a wholly owned company
which must be complied with:

All relevant company paperwork must state that the company
is controlled by North Norfolk District Council

Where members are appointed as Directors to the board, any
payment in relation to travel or subsistence expenses must not
exceed the maximum amount allowed to be paid by the
Council

A company must not publish any material which the Council
would be prohibited from publishing by section 2 of the Local
Government Act 1986

Where a Director becomes disqualified for membership of the
Council (other than by being employed by a Local Authority or
controlled company) the company shall make such
arrangements as necessary for a resolution to be moved for
their removal

The company must provide the Council’s auditor with such
information as they require to audit the Council’s accounts

The company must provide to a member of the Council (or
other relevant authority) such information about the affairs of
the company as they reasonably require for the proper
discharge of their duties except where to provide information
would be in breach of any enactment, or of an obligation
owned to any person

Before the company appoints a person as auditor of the
company, they shall obtain the Audit Commission’s consent to
that persons appointment

Where a company is not an arm’s length company it must until
the expiry of four years beginning with the date of the meeting,
212
make available to any member of the public a copy of the
minutes of any general meeting of the company except for any
disclosure which would be in breach of any enactment or of an
obligation to any person.
4
Options Considered
4.1
The legal advice (see Exempt Appendix 1) considered the advantages
and disadvantages of a number of structures which could be used for
the Council to indirectly develop and invest in property as well as the
Council undertaking this activity directly. This legal advice allowed the
following options to be considered:
4.2
Option 1: Establish a property company as wholly owned company
limited by shares.
This option allows the Council to establish a profit making property
company which will distribute its profits to shareholders. As sole
shareholder the Council will be able to appoint and dismiss Board
Directors and agree the annual Business Plan. The CLS structure
provides flexibility in that it allows the Council to raise additional funds
by selling of some or all of the shares in the company. The CLS
structure allows the company to enter into partnerships or joint
ventures with others and can provide equity stakes in such
arrangements through the provision of shares. A CLS can establish
wholly owned subsidiaries allowing for diversification or separation of
activities. This option is therefore recommended as it provides the
most effective structure to meet the Council’s requirements for the
establishment and operation of a property company.
4.3
Option 2: Establish property company as wholly owned company
limited by guarantee or as limited liability partnership
These structures are not recommended as they would not allow the
Council’s requirements for the property company to be met. A
company limited by guarantee cannot share profits through dividends
and is generally a structure used for non-profit making companies.
The Council could not participate directly in a limited liability
partnership and would need a company to do so.
4.4
Option 3: Formulation of a Joint Venture
This option is not recommended as it is not an appropriate structure at
this time and will not best meet the Council’s requirements for the
property company as a suitable partner will need to be identified, the
structure required is too complex and will be too slow to establish. It
would also not provide the same future flexibilities as the wholly
owned CLS option. It should be noted that the Council and or
property company could in the future participate in a joint venture if
this meet future requirements. With a joint venture whilst the Council
would share the risk of developing and investing in property it would
also share the reward which could limit the return to the Council.
5
5.1
Conclusions
In order to support delivery of both statutory and non-statutory
services the Council needs to become more commercial and look to
213
maximise income generation. To meet this requirement, this report
recommends the creation of a wholly owned property company limited
by shares. As sole shareholder, the Council will be able to appoint
and dismiss the Board of Directors who will be responsible for the
operation of the Company. Board Directors can be Council members,
officers and independent persons, the report recommends that in
order to ensure the board has the required level of skills and expertise
that at least one independent person is appointed to the board.
5.2
The company will generate an income for the Council in the form of
dividends, while the Council is sole shareholder all dividends will be
provided to the Council. In addition to receiving dividends from the
profits made by the company, the Council will also benefit from the
interest generated on both short term and long term loans provided to
the Council and the payment for any staff or services provided by the
Council to the company. If the Council sells land to the company for
development it will receive capital receipts reflecting the full market
value of the land.
5.3
The creation of a property company will generate a return to the
Council in the medium and long term through the sale of
developments and the ongoing revenue generated through retention
of property assets such as private rented properties and leases on
commercial buildings. The dividends the Council received will be
based on net profits as all costs including Corporation Tax and VAT
will need to be paid before the profit can be distributed to
shareholders. In addition the need for future working capital will need
to be met from company profits.
5.4
The provision of loans to the property company by the Council is
required to enable the company to start trading and will be provided
as a mixture of short term loans to provide initial working capital and
development funding and long term loan funding to fund the
ownership of assets. Such loans will be on commercial terms to
ensure State Aid and “thin” capitalisation issues do not arise. All
loans will be subject to a due diligence process.
6
Implications and Risks
6.1
There are numerous examples of Council’s establishing wholly owned
companies limited by shares to undertake the development of
housing. There are fewer examples of Council’s establishing property
companies which have a wider purpose which includes nonresidential properties, one example of such a company is Badger BC
Investments Ltd, a wholly owned subsidiary of Broxbourne Borough
Council which has been successfully been trading since April 2014. It
is not more inherently risky to establish a property company which
undertakes development and investment in residential and nonresidential property rather than a company that exclusively develops
and invests in housing. In fact such an approach may limit risks in
relation to the Right to Buy.
6.2
Paragraph 2.6 discussed briefly the issues in relation to the Right to
Buy. Currently the Right to Buy only exists for secure tenants of
Councils, although the Housing and Planning Bill proposes the
214
introduction of a voluntary Right to Buy for tenants of Registered
Providers. The Council’s legal advice states that as the company
would hold any affordable housing and not the Council, rented homes
would not be let on secure tenancies but assured shorthold tenancies
and therefore there will be no Right to Buy for the tenants. There is
an element of risk that if the company holds social or affordable
housing and it is considered that this housing should have been
provided under Part II of the Housing Act 1985, that the Government
could intervene to direct that this housing is held in a Housing
Revenue Account. If this happened the tenants would be secure
tenants and the Right to Buy would apply for eligible tenants. It is not
clear what the likelihood of this risk is. This is considered to be
mitigated as the purpose of establishing the company is not to hold
affordable housing in a way which circumvents the Right to Buy. The
property company will hold both residential and non-residential
property and will be established to provide a commercial return from
the development of and investment in property. In establishing the
company the commercial focus of the company must be clear in the
company documentation. Any affordable housing would be ancillary
to the market housing provided.
In addition, if the company decided not to own any affordable housing
for rent it developed as part a residential development but instead sell
it (at a cost which does not require any public subsidy) to a
Registered Provider who would own and manage these homes there
would be no sub market rented housing which could be determined to
have been provided under Part II of the Housing Act 1985. The
company could decide to retain the ownership of the freehold and
unsold share of shared ownership or shared equity dwellings but
further legal advice may be required on whether such an approach
would trigger a determination that these homes had been provided
using powers from the Housing Act 1985 Act rather than Localism Act
2011.
6.3
Establishing a property company may be considered to be a
reputational risk in that the property company will seek planning
consent for residential and non-residential developments across the
district. In considering such applications, the Council acting as Local
Planning Authority may be seen externally as granting itself planning
permission. However, the Council in acting as Local Planning
Authority is acting separately to any decisions made to establish a
property company and the decision to create the company does not
feter the Council’s decision making as Local Planning Authority.
Whilst the company will be owned by the Council, decisions as to
what developments to pursue will be made by the Board of Directors
and not the Council. Decision making is therefore separate. In
establishing the company the Council is using an existing power
which has been used by other Councils to establish development
companies.
6.4
A further reputational risk may be considered to be the fact that the
Council will provide loan funding to the property company, but does
not provide such loan funding to other companies to enable them to
start up or expand their business. The property company will be
wholly owned by the Council as sole shareholder and therefore it is in
the Council’s financial interest to ensure that the company is
215
sufficiently resourced to enable it to meet its objectives and deliver a
return to the Council. The provision of loan funding is permitted within
the Council’s powers and other Council’s in establishing such
companies have provided loan funding and so the Council cannot be
considered to be acting unreasonably. All loan funding will be
provided in accordance with the Council’s Treasury Management
Strategy and following a due diligence process.
7
Financial Implications and Risks
7.1
The establishment of a wholly owned property company will
predominately generate a return to the Council through:
 Payment of dividends
 Interest on loans
 Payment for provision of staff and services
These income sources are discussed below:
7.2
Payment of dividends
Whilst the Council is sole shareholder it will be entitled to receive all
the share dividends generated by the company. It must be noted that
such dividends are based on net profit and all costs and Corporation
Tax must be paid before dividends can be issued. In addition some
profit will be required to be retained by the company in order to
provide the working capital required for future developments and
investments. Dividend income will be generated from the sales of
developments (for example dwellings or employment units
constructed for sale on the open market) and from medium and long
term investments (for example the yield on private rented properties
or commercial leases). There will be a period between establishing
the company and when the first dividend will be paid as the company
will not initially be able to trade at a profit due to the timescales
involved in property development and investment. The company
must therefore be considered to be a vehicle which will deliver
financial returns through dividends to the Council in the medium or
long term rather than the short term.
As the Council will provide loans to the company, it will be necessary
to ensure that issues of “thin” capitalisation do not apply which would
lead to the interest payments on the loan being treated as dividends
rather than interest which would negatively impact on both the Council
and company. This can be avoided through appropriate due diligence
and seeking external advice as required.
7.3
Interest on loans
In order to avoid State Aid and “thin” capitalisation issues it is required
that all loans to the company are based on market rates and terms.
The provision of such loans is therefore expected to generate a higher
return to the Council than its current investments which for the first six
months of 2014/15 saw on average £30.4m invested which delivered
interest of £240,875 or a blended return of 1.58%.
In providing both the initial short term and subsequent long term loans
an appropriate due diligence process will be carried out, this will
ensure that State Aid and “thin” capitalisation issues and the risks
216
inherent in each type of loan are reflected in the interest rates
proposed for the loans. The costs of external advice required for the
due diligence process for the loans will be recovered from the interest
received. There is therefore a risk of the Council incurring abortive
fees which will not be recovered if a loan is not advanced.
If internal borrowing was the method of funding the loans, then the
return to the Council in provided the loans will be the net interest
received after the interest which would have been received by
investing the loan monies on a short term basis is taken into account.
If in providing the loans the Council uses most or all of its capital
receipts and cash resources to fund the provision of the loans, any
need for capital expenditure which cannot be funded from remaining
resources or capital receipts arising during the period of the loans will
either not be met in full or will need to be funded using prudential
borrowing. The cost of prudential borrowing from the Public Works
Loan Board (PWLB) is however lower than the commercial rate of
interest which would be expected to be charged on the loans. Before
any loan was issued, the Council should ensure that the loan interest
rate exceeds that of the PWLB rate for a loan of that period, which will
provide some mitigation against this risk. Alternatively, the Council
could choose to fund some or all of the loans to the company through
prudential borrowing from the PWLB. In this case, the interest and
capital repayments received from the company would be used to fully
repay the PWLB loan, with the Council retaining the additional interest
received from the company as the loans to the company would be at
higher rates than the rates which would apply to the Council’s own
borrowing. It would be a requirement of borrowing from the PWLB
that the rate which would apply to the loan(s) to the company would
be at a higher rate.
7.4
Payment for staff and services
Where the Council provides staff and services to support the operation
of the Council it will receive payment at market rates. This income will
help to support the Council’s budgets, however, the requirement to
provide staff and services for payment must be balanced against the
operational requirements of the Council and the ability to provide its
services. To ensure that the company will be required to serve notice
to end these arrangements, the provision of staff and services will be
set out in a Service Level Agreement or contract to ensure that the
Council can manage any reduction or termination of these
arrangements in a measured way. Where Council officers are
appointed as Directors of the Board it is recommended that the
individual officer is not paid as they are on the Board as an officer of
the Council, but that this payment is instead provided as a fee for their
work to the Council at the same rate which is applied to independent
Directors.
7.5
Where the Council sells land to the company it will receive a capital
receipt based on the market value of the site as demonstrated by an
independent valuation. The amount of capital receipts which could be
generated through the company are not yet known, however, the initial
financial modelling undertaken by Savills suggests that based on two
sites a receipt of £320,000 will be received. The Council may want to
defer payment for the sale of the land until the land has been
217
developed and the company has generated a profit or has refinanced
if the asset developed is to be retained. Where payment is deferred,
consideration should be given to whether interest should be charged
on the value of the land from the date of transfer until the date the
deferred payment is received.
7.6
As the company will be wholly owned by the Council, the accounting
for the company will be on the Council’s balance sheet. The position
regarding VAT and Corporation Tax neither of which the Council pays
have been discussed above.
7.7
The Council will benefit directly from any new dwellings the company
develops in the district through the growth in the Council Tax base and
(for as long as the scheme exists) the New Homes Bonus. In addition
where the company develops non-residential property and assets in
the district, the Council will from 2020 directly benefit from the growth
in Business Rates as the rates income will be retained by the Council.
7.8
The advancing of a loan to the company must be treated as capital
expenditure by the Council. This expenditure will give rise to a
Capital Financing Requirement (CFR). If there are no useable capital
receipts, revenue or reserves immediately available then a charge
known as a Minimum Revenue Provision (MPR) must be made to the
Revenue Account over the life of the underlying asset (which would
impact upon the Council Tax payer).
MRP can be avoided by applying the loan repayments made by the
company each year to finance the capital expenditure.
7.9
The Council will be required to provide equity funding to establish the
company in order to satisfy State Aid requirements and therefore the
Council’s investment in the company will consist of equity and loan
funding. There is therefore a risk that this equity investment would be
lost if the company become insolvent. If the company become
insolvent, it would also be unable to service any loans provided to the
company by the Council which would mean that the full cost of these
loans would fall to the Council. These risks are mitigated through the
Council’s control of the company as sole shareholder, its
appointments to the Board of Directors and through the Shareholders
Agreement which will ensure that the Council will be aware at the
earliest opportunity of any issues which affect the viability of the
company and will be able to ensure that appropriate action is taken to
prevent the insolvency. If the Council was no longer sole shareholder
or majority shareholder in the company its control would be reduced,
but the Council would have already benefited from the capital receipt
generated by selling shares and any decision on selling shares would
need to consider the financial risk to the Council of reducing its control
over the company in terms of the current and future financial stake
(remaining equity and loans) in the company.
7.10
The financial modelling carried out by Savills focused on the company
developing two sites which the Council would sell to the company.
Combined the sites would be developed, subject to planning, to
provide 6 x 2 bedroom flats and a retail premises suitable for a café
and 12 x 3 bedroom houses. The modelling assumed that after the
schemes were developed half of the dwellings would be sold to the
218
open market and the remaining half retained by the company along
with the retail premises to generate ongoing revenue return to the
company.
The modelling assumed that short term loan funding
provided by the Council would be used to fund the initial working
capital and development funding. Once the development was
complete the costs of the retained assets would be funded through a
long term loan from the Council.
The modelling showed that the company would be able to make a
profit on the rental monies received from the retained dwellings and
retail unit even when management and maintenance costs and
interest payments were factored in. This demonstrates that the model
of the company both developing and investing in property (both
residential and non-residential) is robust. Whilst the modelling
assumed that half of the dwellings and the retail asset would be
retained for longer term revenue generation and capital appreciation,
the company would make a decision for each development it
proposed to undertake on the proportion of the dwellings and other
property assets created which would be retained or sold in order to
make the best return to the company.
The financial modelling also concerned the impact of the company
developing on the Council assuming that all loans provided to the
company were borrowed from the PWLB at an appropriate rate. This
showed that the Council will benefit financially from the establishment
of the company even when the cost of its own borrowing (which is
then on-lent at a premium to reflect commercial rates) and MRP is
taken into account. The benefit was made up of dividends received
from the company and the interest on loans received from the
company. The modelling did not however, consider the longer term
capital appreciation which could apply to the assets when and if they
were sold in the future although it should be noted that when assets
are sold the ongoing revenue it generated is lost.
The report which provides full details of the modelling undertaken is
attached at Exempt Appendix 2 .
8
Sustainability
8.1
All the new homes and buildings will be provided in accordance with
current building regulation requirements. As part of the appraisal
process for each development, a cost benefit analysis can be
undertaken to identify whether there is a financial advantage to the
company to develop properties which exceed building regulation
energy efficiency requirements.
9
Equality and Diversity
9.1
There are no equality and diversity implications.
10
Section 17 Crime and Disorder considerations
10.1
There are no section 17 implications.
219