Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
29 August 2014
A meeting of the Cabinet of North Norfolk District Council will be held in the Council Chamber at
the Council Offices, Holt Road, Cromer on Monday 8th September 2014 at 2.00 p.m.
At the discretion of the Chairman, a short break will be taken after the meeting has been running
for approximately one and a half hours
Members of the public who wish to ask a question or speak on an agenda item are requested to
arrive at least 15 minutes before the start of the meeting. It will not always be possible to
accommodate requests after that time. This is to allow time for the Committee Chair to
rearrange the order of items on the agenda for the convenience of members of the public.
Further information on the procedure for public speaking can be obtained from Democratic
Services, Tel: 01263 516010, Email: democraticservices@north-norfolk.gov.uk
Anyone attending this meeting may take photographs, film or audio-record the proceedings and
report on the meeting. Anyone wishing to do so must inform the Chairman. If you are a
member of the public and you wish to speak on an item on the agenda, please be aware that
you may be filmed or photographed.
Sheila Oxtoby
Chief Executive
To: Mr B Cabbell-Manners, Mr T FitzPatrick, Mrs A Fitch-Tillett, Mr J Lee, Mr W Northam,
Mr R Oliver, Mr G Williams, Mr R Wright
All other Members of the Council for information.
Members of the Management Team, appropriate Officers, Press and Public.
If you have any special requirements in order
to attend this meeting, please let us know in advance
If you would like any document in large print, audio, Braille, alternative format
or in a different language please contact us
Chief Executive: Sheila Oxtoby
Corporate Directors: Nick Baker & Steve Blatch
Tel 01263 513811 Fax 01263 515042 Minicom 01263 516005
Email districtcouncil@north-norfolk.gov.uk Web site northnorfolk.org
AGENDA
1.
TO RECEIVE APOLOGIES FOR ABSENCE
2.
MINUTES
(page 1)
To approve, as a correct record, the minutes of the meeting of the Cabinet held on 07
July 2014.
3.
PUBLIC QUESTIONS
To receive questions from the public, if any.
4.
ITEMS OF URGENT BUSINESS
To determine any other items of business which the Chairman decides should be
considered as a matter of urgency pursuant to Section 100B(4)(b) of the Local
Government Act 1972.
5.
DECLARATIONS OF INTEREST
Members are asked at this stage to declare any interests that they may have in any of
the following items on the agenda. The Code of Conduct for Members requires that
declarations include the nature of the interest and whether it is a disclosable pecuniary
interest.
6.
MEMBERS QUESTIONS
To receive oral questions from Members, if any.
7.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR RECONSIDERATION
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.
COUNCIL TAX SUPPORT WORKING PARTY
(attached – p.4)
To receive the draft minutes of the Council Tax Support meeting held on 15 July 2014.
The following recommendation was made to Cabinet:
RECOMMENDATION to Cabinet:
That the Council continue with the current council tax support scheme for a further 12
months.
10.
MEMBER DEVELOPMENT GROUP
(page 7)
To receive the notes of the Member Development Group meeting held on 24 June 2014.
11.
APPOINTMENT TO PLUMSTEAD PARISH COUNCIL
To appoint a District Councillor to Plumstead Parish Council to achieve quoracy and
enable them to co-opt a new member.
Cabinet member(s):
Ward member(s)
Contact Officer, telephone
and e-mail:
12.
All
Councillor J Perry-Warnes
Emma Denny, 01263 516010
emma.denny@north-norfolk.gov.uk
BUDGET MONITORING PERIOD 4
(page 9)
(Appendix A – p.20) (Appendix B – p.21) (Appendix C – p.24) (Appendix D – p.30)
Summary:
This report summarises the budget monitoring position for the
revenue account and capital programme to the end of July
2014.
Options considered:
Not applicable
Conclusions:
The overall position at the end of July 2014 shows a forecast
under spend of £862,419 to date for the current financial year
on the revenue account, this is currently expected to deliver a
full year variance of £85,423.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and the
current budget monitoring position.
2) Cabinet agree the updates to the Capital
Programme.
Reasons for
Recommendations:
To update Members on the current budget monitoring position
for the Council.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
System budget monitoring reports
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
Councillor W Northam
All
Malcolm Fry,
01263 516037
malcolm.fry@north-norfolk.gov.uk
13.
FINANCIAL STRATEGY 2015/16 TO 2017/18
(page 31)
(Strategy Document – p.33 ) (Appendix E – p.60)
Summary
Options considered
14.
This report presents the current financial forecast for the period
2015/16 to 2017/18 and provides a summary of the key issues
facing the Council in relation to Local Government Finance.
The report provides the background and context within which
the financial strategy and outlines the strategy for the next two
to three years.
None
Conclusions
The current financial forecast presents a funding gap for the
next three years of just over £1.2 million by 2017/18. Estimates
have been made on the level of future funding, although there
is still a great deal of uncertainty on the level of grant
reductions that Local Authorities will be facing.
Recommendations
It is recommended that:
1) Members consider and note:
a) The current financial forecast for the period 2015/16
to 2017/18;
b) The current capital funding forecasts;
2) Members consider and recommend to Full Council:
a) Continuation of the current Local Council Tax
Support Scheme for 2015/16;
b) That the Local Council Tax Support Scheme grant
for parishes be offered to those parish and town
councils that accepted the grant in 2014/15 and the
total amount available is reduced in line with the
Council’s relative funding reductions as outlined at
section 2.8.5;
c) The revised reserves statement as included at
Appendix E to the financial strategy;
Reasons for
Recommendations
To update members with the current financial position of the
authority and the current financial strategy for addressing the
funding shortfall and also to ensure timely decisions can be
made to inform the detailed work on the budget for 2015/16
which will be commencing in the coming months.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
Councillor W Northam
All
Karen Sly
01263 516243
karen.sly@north-norfolk.gov.uk
MANAGING PERFORMANCE QUARTER 1 2014/15
Summary:
(page 63)
(Appendix F – p. 66)
The purpose of this report is to give a first quarter progress
report of the performance of the Council. More specifically it
reports delivery of the Annual Action Plan 2014/15 and
achieving targets. It gives an overview, identifies any issues
that may affect delivery of the plan, the action being taken to
address these issues and proposes any further action needed
that requires Cabinet approval.
Options considered:
Conclusions:
Options considering action regarding performance are
presented separately, issue by issue, to the appropriate
Council Committee.
1. The majority of the 56 activities in the Annual Action
Plan 2014/15 are on track or progressing to plan (46).
Performance is being closely monitored, particularly for
the small number of activities where issues or problems
have been identified (two). Some activities have already
been completed successfully (three).
2. Of the 15 performance indicators where a target has
been set eight are on or above target, one close to
target and six below target. Where assessment against
the same period last year is possible (17 indicators), 12
are improving, three are static and two are worsening.
3. The delivery of the Annual Action Plan is progressing
according to plan but there are a very few performance
issues in achieving targets. These are detailed in the
document „Managing Performance Quarter 1 2014/15‟
attached as Appendix F.
Recommendations: 1. That Cabinet notes this report, welcomes the progress
being made and endorses the actions laid out in
Appendix F being taken by management where there
are areas of concern.
2. That Cabinet approves the target for performance
indicator C 007 Target response time to fly tipping and
all other pollution complaints (within 2 working days)
be set at 80%.
15.
Reasons for
Recommendations:
To ensure the objectives of the Council are achieved.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
Councillor T FitzPatrick
All
Helen Thomas
01263 516214
helen.thomas@north-norfolk.gov.uk
EXCLUSION OF PRESS AND PUBLIC
To pass the following resolution:
“That under Section 100A(4) of the Local Government Act 1972 the press and public be
excluded from the meeting for the following item of business on the grounds that they
involve the likely disclosure of exempt information as defined in paragraphs _ of Part I of
Schedule 12A (as amended) to the Act.”
16.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 07 July 2014 at the Council
Offices, Holt Road, Cromer at 10.00am.
Mrs A Fitch-Tillett
Mr B Cabbell Manners
Mr T FitzPatrick
Members Present:
Also attending:
Officers in
Attendance:
19.
Mr J Lee
Mr W Northam
Mr G Williams
Mr R Wright
Mrs A Claussen-Reynolds
Ms B Palmer
Mr R Reynolds
Mr B Smith
Mr N Smith
Mrs V Uprichard
The Chief Executive and the Democratic Services Team Leader
APOLOGIES FOR ABSENCE
Mr R Oliver
20.
MINUTES
Mr R Wright said that he had sent his apologies for the previous meeting. The
Chairman then signed the minutes of the meeting of 09th June 2014, subject to the
above amendment.
21.
PUBLIC QUESTIONS
None received
22.
ITEMS OF URGENT BUSINESS
None received
23.
DECLARATIONS OF INTEREST
None
24.
MEMBER QUESTIONS
None received
Cabinet
1
1
07 July 2014
25.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR
RECONSIDERATION
None
26.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
27.
BIG SOCIETY FUND GRANTS PANEL
RESOLVED
To receive the minutes of the Big Society Fund Grants Panel meeting held on 15
March 2014.
28.
SUPERFAST BROADBAND
The Leader introduced this item. He explained that access to superfast broadband
was becoming increasingly important for both businesses and residents. An inprinciple agreement and the earmarking of funds for a partnership project being led
by Norfolk County Council, would secure a place on the programme.
Mr W Northam said that he was pleased to second the recommendations. He said
that the proposals would support the local economy and ensure residents did not
miss out.
Mrs V Uprichard said that she was pleased to see this report on the agenda but it
was important to remember that many residents did not have mobile phone reception
and this was something that also needed to be addressed.
It was proposed by Mr T FitzPatrick, seconded by Mr W Northam and
RESOLVED to recommend the following to Council:
1. That £1million is earmarked (in a reserve) from the current year balance
and future year allocations return of the second homes council tax funding
and unallocated New Homes Bonus.
2. That no commitment to spend this earmarked fund is made until the BBfN
Programme has let the next call-off contract and this has been analysed by
the District Council, the detail shared with Members and a recommendation
made to Council.
3. That a presentation be arranged for Members during July to receive an
update on the current roll out of Norfolk’s Better Broadband for Norfolk
(BBfN) Programme and to ask further questions about the next
Programme, likely coverage and funding.
Reasons for the decision:
To secure a place on the partnership project to roll out superfast broadband across
North Norfolk, leading to improved access for businesses and residents.
Cabinet
2
2
07 July 2014
29.
THWAITE COMMON
The Portfolio Holder for Leisure, Mr G Williams, introduced this item. He explained
that Thwaite Common was an important countryside asset. Grazing of the site since
2008 had led to a significant improvement in the quality and diversity of native plants
growing there and it was therefore proposed that that the common should be grazed
with livestock that would be enclosed with fencing. Management of the common was
controlled by a ‘scheme of regulation’ and any fencing in addition to that which was
already in place would require Secretary of State approval. Mr G Williams went on to
say that the Thwaite Common Management Committee had consulted widely with
local residents on the proposals, using the DEFRA guide on consultations. The
results showed that local residents were very supportive of the scheme.
Mr G Williams said that following further discussions with Cabinet colleagues two
additional recommendations were being proposed:
i.
that any formal grazing rights by residents would not be restricted in any way
and
ii.
that all fencing would be temporary rather than permanent.
It was proposed by Mr G Williams, seconded by Mr B Cabbell Manners and
RESOLVED
That Cabinet agree
1. to the Thwaite Common Management Committee proceeding with the
submission of an application to the Secretary of State for the Environment,
Food and Rural Affairs for fencing at Thwaite Common in accordance with
the proposals set out in this report.
2. that any formal grazing rights by residents would not be restricted in any
way
3. that all fencing would be temporary rather than permanent.
Reason for the decision:
To allow positive management of Thwaite Common to favour the re-establishment of
diverse native flora.
.
The Meeting closed at 10.07 am
_______________
Chairman
Cabinet
3
3
07 July 2014
COUNCIL TAX SUPPORT WORKING PARTY
Minutes of a meeting of the Council Tax Support Working Party held on 15 July 2014
in Meeting Room 5, Council Offices, Holt Road, Cromer at 2.30pm
Working Party:
Mrs A Claussen-Reynolds, Ms V Gay, Mr W Northam, Mr R Oliver
and Mr D Young.
Officers in
Attendance:
The Chief Accountant, the Benefits Manager and the Democratic
Services Team Leader
1
TO RECEIVE APOLOGIES FOR ABSENCE
Mr R Oliver and the Head of Finance.
2
DECLARATIONS OF INTEREST
None
3
MINUTES
The minutes of the meeting held on 23 November 2012 were agreed and signed by
the Chairman.
4
COUNCIL TAX SUPPORT SCHEME REVIEW
The Chairman advised the Working Party that it had been two years since the council
tax support scheme had been introduced. It would not be fair on claimants to reduce
the amount paid and if the amount paid was increased the Council would need to go
out to consultation, which had a cost implication. He went on to say that other local
authorities were continuing with their existing schemes and he proposed that North
Norfolk District Council did the same and then reviewed it again in a year. This
would also allow for the impact of the introduction of Universal Credit to be assessed.
Ms V Gay said that the proposal sounded sensible. She said that the scheme had
been in place for two years and it would cause confusion if changes were introduced
at this stage.
Mr D Young pointed out that there were two aspects to consider: the impact of the
scheme on council tax payers and the impact on the Council and whether it could
continue to afford to continue with the current scheme. He then went on to query
whether the cost to the Council had been as anticipated and whether getting the
money back had worked out. In clarification, he asked how many second homes had
switched to business rates as a result of losing the discount and whether the
transitional relief provided by the government was for one year only. The Benefits
Manager confirmed that the transitional relief was for just one year.
Mr Young then asked whether the lack of continued transitional funding resulted in a
16% reduction in funding to the parishes. The Chief Accountant replied that this was
the result of the cut in overall funding from the Government. He confirmed that those
Council Tax Support Working Party
1
4
15 July 2014
parishes which had accepted the funding during the first year had been offered the
same amount again, with the District Council absorbing the cost.
The Benefits Manager said that the amount of council tax support paid out had been
lower than anticipated as the caseload had gone down. The working age/pensioner
split was also reduced – possibly due to the government’s changes to the pension
age. This had not been factored into the 2012 forecasts. In response to a question
from Mr D Young as to why the caseload had gone down, the Benefits Manager said
that she was not sure. It was possible that claimants’ incomes had increased or that
they had found employment. The Chairman added that this was positive news and
indicated that things were moving in the right direction.
Mr D Young said that it would be helpful if the Working Party had all the facts and
figures in front of them next time they met so that they could make an informed
decision about the way to move forward. The Benefits Manager added that
practitioners believed that the following year could be one of change.
Mrs A Claussen-Reynolds referred to section 4.1b of the report and the impact of the
possible removal of the safeguards in place for vulnerable people. She said that she
was very concerned about this, adding that she supported the Chairman’s proposal
to continue the current scheme for the next year. Mr Northam replied that in 12
months time the Working Party would be better placed to consider all the options
available – including reducing payments by vulnerable people. The Chief Accountant
agreed. He said that after the scheme had been in operation for 3 years it should be
possible to see trends in the data.
Mr D Young commented that one of the key factors of the funding was the return of
the second homes council tax to the District Council. He asked whether there was
any further information on whether this would continue. The Chairman replied that he
believed it would continue as the County Council recognised that the District Council
collected the council tax. He acknowledged that the County Council still had a very
large deficit to plug.
Mr D Young then asked for clarification of the ‘discount scheme’ referred to in section
4.1a of the report. The Benefits Manager explained that this was a move away from
means-tested benefit support to a system linked to income and a percentage
discount. It would be banded so would be easier to administer rather than the current
system of means-testing household income and capital. Ms V Gay asked whether
such a system would be centrally determined. The Benefits Manager said that each
council could decide on the scheme that they preferred. Some authorities had
already expressed an interest in a banding scheme. If this option was chosen,
software would need to be installed to administer it.
The Chairman said that prior to the next meeting it would be useful for the working
party to have all the options and their cost implications available.
Ms V Gay sought clarification on the relationship between housing benefit and
council tax support. The Benefits Manager said that they were means-tested and
collected on the same claim and the Council calculated both at the same time using
the same assessment criteria. She added that if the council tax support scheme was
altered too much then it would be harder to administer.
Ms V Gay then queried why the figures in section 2.12 and the previous table did not
match up. The Benefits Manager explained that this was because some people were
on housing benefit only and some were on council tax support only.
Council Tax Support Working Party
2
5
15 July 2014
Mrs A Claussen-Reynolds queried what happened when there were mixed
households which included people of working age and pensioners. The Benefits
Manager said that these would be treated as working age households.
The Chairman thanked everyone for their comments. He suggested that the working
party met again in 6 months time to begin the process of reviewing the scheme.
It was proposed by Mr W Northam, seconded by Mrs A Claussen-Reynolds and
AGREED to recommend to Cabinet:
That the Council continue with the current council tax support scheme for a further 12
months.
The Meeting closed at 3.20 pm.
Chairman
Council Tax Support Working Party
3
6
15 July 2014
Agenda Item 2__
MEMBER DEVELOPMENT GROUP
Notes of a meeting held on Tuesday 24 June at 11.00am in the Committee Room,
Council Offices, Holt Road, Cromer.
Members Present:
Working
Group:
Officers in
Attendance:
Mr G Williams (Chairman)
Mr P High
Mrs A Claussen-Reynolds
Mrs V Uprichard
Mr N Smith
The Communications Manager, the Democratic Services Team
Leader, the Democratic Services Officer
1. APOLOGIES
Apologies were received from Mr B Smith.
2. NOTES OF LAST MEETING
The notes were approved as a correct record of the meeting.
3. ELECTION OF A VICE CHAIRMAN
The Chairman commented that he believed the group ought to confirm a vice Chairman
of the committee and nominated Mr P High. Mrs V Uprichard seconded this and it was
CONFIRMED
That Mr P High be the vice Chairman of the Member Development Group
4. MEMBER DEVELOPMENT GROUP BUDGET
The Democratic Services Team Leader introduced this item. She explained that the
budget had been rolled forward from the previous budgetary year and currently stood at
£19,839. The Chairman commented that he was pleased with such a high buget, as it
meant they could produce an effective prospective candidates’ event and promotional
material. He also commented that external training in particular would be an on-going
cost, which could often be costly, so having budget available for that was beneficial.
However, he also cautioned the group that the budget would have to be utilised in an
effective manner to ensure it remained available in the future.
5. PROSPECTIVE CANDIDATES PROGRAMME OF EVENTS
The Communications Manager introduced this item. He explained that he had met with
the Democratic Services team to discuss a communications brief for the prospective
candidates’ events. He explained that the draft strategy that resulted from this meeting,
Member Development Group
1
20 May 2014
7
detailed a number of options, including dates for events and targeted audiences for
promotional materials. An included proposal was to have a stand at the annual
Greenbuild event, to hold the primary prospective candidates’ event on the 15th October,
followed by the potential for an event the following week at a full council meeting. He
also explained the main form of information would be through a leaflet, which could be
distributed to a selection of audiences. The Democratic Services Officer circulated a
prototype of this leaflet, and the group agreed a brief be given to the communications
team for the leaflet, in order to allow them to create a finalised draft. The Chairman
commented they would need to produce something that caught public interest and
encouraged people to get involved in their local community. The group also agreed that
any informational material would need to appeal to a wide range of groups, as well as
encouraging those groups which were underrepresented in the authority, such as young
people.
The group discussed the potential for prospective candidates to attend a meeting of the
full council, and agreed that the agenda would have to be quite specific to encourage
interest. The Democratic Services team agreed to investigate this further for the October
meeting of Full Council.
The group then went on to discuss if it would be useful to send an email to those
members who attended the previous CandiDating event, to ask what they believed
could be improved or changed. The Democratic Services team agreed to action this.
Mr P High commented that the idea of stand at Greenbuild seemed to be a good idea.
The group agreed, and Mrs A Claussen-Reynolds, Mr N Smith, Mr P High and Mrs V
Uprichard said they would be happy to help at a stand at the event. The Chairman
commented that directed circulation, for example to big supermarkets (which would
encourage others to get involved) would also be a beneficial element of promotion. Mr P
High also queried the cost of creating inserts for putting in local publications, and the
Communications Manager agreed to look into this.
6. DATE OF NEXT MEETING
The date of the next meeting was agreed as the 19th August 2014 at 11.00am.
The meeting concluded at 11.52am
_____________________
Chairman
Member Development Group
2
20 May 2014
8
Agenda Item No___12_________
BUDGET MONITORING REPORT 2014/15 – PERIOD 4
Summary:
This report summarises the budget monitoring position
for the revenue account and capital programme to the
end of July 2014.
Options considered:
Not applicable
Conclusions:
The overall position at the end of July 2014 shows a
forecast under spend of £862,419 to date for the current
financial year on the revenue account, this is currently
expected to deliver a full year variance of £85,423.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and
the current budget monitoring position.
2) Cabinet agree the updates to the Capital
Programme.
Reasons for
Recommendations:
To update Members on the current budget monitoring
position for the Council.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
System budget monitoring reports
Cabinet Member(s)
Ward(s) affected
Cllr Wyndham Northam
Contact Officer, telephone number and email: Malcolm Fry, 01263 516037,
malcolm.fry@north-norfolk.gov.uk
1.
Introduction
1.1.
This report compares the actual expenditure and income position at the end
of July 2014 to the Updated budget for 2014/15. The Original Base Budget as
agreed by Full Council in February 2014 has now been updated for the
approved budget roll forward requests as reported in the 2013/14 Outturn
report in June 2014.
1.2
The report also provides a monitoring position for the current capital
programme and an update on the costs related to the storm.
1.3
The base budget for 2014/15 included savings and additional income totalling
£580,994 to be delivered in the year. Section 3.1 of this report includes the
latest position on both of these areas
9
2.
Budget Monitoring Position – Revenue Services
2.1
The General Fund Summary at Appendix A shows the high level budget
monitoring position at 31st July 2014 which shows a year to date variance of
£862,419 underspend. Of the underspend £177,570 is in relation to the
service variances and £656,751 is in relation to the Business Rates Retention
Scheme compared to the profiled budget. Details of these variances are
included within section 2.7. Appendix B provides further details of the
individual service variances.
2.2.1
Tidal surge – Set out in the table below is how costs totalling £1,028,859 were
funded in 2013/14.
Revenue
Capital
Total
NNDC Property
Assets
57,914
146,876
204,790
Coastal Assets
71,668
698,382
770,050
Other
Infrastructure
8,142
8,142
Emergency
Response
45,877
45,877
Sub Total
183,601
845,258
1,028,859
(33,697)
(146,876)
(180,573)
(698,382)
(698,382)
Expenditure
External
Funding:
Insurance
Claims
Environment
Agency
Bellwin Claim*
(47,262)
(47,262)
Severe
Weather
Recovery
Scheme**
(102,642)
(102,642)
Total Funding
(183,601)
(845,258)
(1,028,859)
Net
Impact
2013/14
0
0
0
* A Government scheme designed to recompense authorities for the costs of
emergency measures taken during exceptional circumstances. £47,262
received June 2014.
10
** Fund launched by Government in February 2014 to help local authorities
affected by flooding. A total of £143,616 was received in 2013/14 of which
£102,642 was utilised in the year. The balance of £40,974 will be used to
offset costs that will be incurred during 2014/15.
2.3
The 2014/15 Budget included planned spend of £958,750 to be funded by
insurance claims, allocated funding from the General Reserve and the
balance of the Severe weather recovery scheme grant.
The table below shows the estimated cost of the tidal surge for 2014/15.
Storm Damage 2014/15 Estimate
Estimated
Costs
Funding
£
£
Funding Source
NNDC Property
Assets:
862,872
(694,383)
Insurance claims
(estimate)
Coastal Assets
837,950
(220,000)
Cromer Scheme –
existing funding.
(66,618)
EA Grant 2013/14(bal)*
Other Infrastructure
51,002
0
Other
34,409
(0
(40,674)
Total
1,786,233
NNDC
cost
(potential)
£
168,489
551,332
51,002
34,409
Severe Weather
Recovery Scheme
(1,021,675)
(40,674)
764,558
* EA Grant for 2014/15 of £276,000 to be confirmed, if successful residual cost reduces to £488,558
2.4
2.5
The flooding support schemes announced by the government in February
2014 included the following:
Repair and Renew Grants (Homeowners and Businesses)

Business Support

Council tax Discounts

Business Rate reliefs
These schemes have continued to be administered by the Council, to be
reimbursed by Government funding in line with their (the Government’s) set
eligibility criteria. Total applications for homeowner and business repair and
renew and business support grants total 206 to date. The repair and renew
grant scheme will end on the 31 March 2015 any grants paid out after this
11
date will not be eligible for reimbursement through the government scheme.
The council is currently administering the scheme within this timescale to
ensure all eligible grants can be paid prior to this.
2.6
As for the last financial year the base budget will be updated during the year
to produce an in-year updated budget. This takes account of in year
virements and revised budgets during the year. Variances are reported
against the updated budget in Appendix A. Any budgets and reserves
affected will be updated accordingly. By taking any forecast outturn
adjustments at the end of the reporting period, a constantly updated budget is
achieved.
2.7
The following table shows the over/under spend to date for the more
significant variances compared to the updated budget.
Table 1 – Service Variances
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Assets and Leisure
Car Parking – This variance is due to two main
reasons. £71,698 – is due to outstanding
management fee invoices from Kings Lynn and West
Norfolk Borough Council not received by the end of
period 4. Of the remaining variance £51,890 relates to
car parking fee above the profiled budget. No full year
surplus is anticipated at this time as it is anticipated
that it will be negated by changes to car park evening
charges in future months. The overall position will
continue to be monitored regularly.
Estimated
Full Year
Variance
Against
Updated Budget
£
(119,235)
0
Cromer Pier – Cost of repairs to the pier following the
December 2013 storm surge. This will be funded from
an insurance claim.
148,530
0
CCTV – The decision was made as part of the
2014/15 budget process to cease the CCTV service.
As a result savings of £95,760 were included within
the base budget. This saving will be exceeded this
year by £29,713 following the cancellation of the fibre
optic cabling contract and a refund being issued.
4,481
(30,000)
Investment properties – The main variances
effecting this service are as follows:
£11,473 - Additional NNDR costs for Grove Depot,
may be recovered either from new tenants or as an
empty rate refund.
£30,272 - Additional repairs and maintenance costs of
which a significant proportion relates to the costs of
storm surge. The additional costs should be offset by
recover of insurance sums.
£16,565 - Reduced rental income following storm
surge for other lettings properties. The reduction in
84,736
0
12
Table 1 – Service Variances
income should be offset by the recovery of insurance
sums.
£15,121 - Accrual of insurance claims works for the
storm surge, yet to be received from 2013/14, £9,250 Accrual of Rocket House prior year tenants service
charges, agreement still to be reached with tenant.
(£4,400) - Recover of beach hut storage fees still to be
paid over to external contractor.
Customer Services
Customer services – The year to date variance
relates to staff savings arising from a number of
vacancies. At this time there is no anticipated full
year variance.
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Estimated
Full Year
Variance
Against
Updated Budget
£
(£31,579)
0
(33,740)
0
Building Control and Access – Building Control
Income levels have started to show an increase
following several years of deficit. A full year increase
has not been calculated at this point but any surplus
should be ring fenced as part of the fee setting
process.
(37,635)
0
Planning Support – As part of the 2012/13 Base
Budget a Savings bid of £26,400 was Agreed. This
prior year saving is considered to be no longer
achievable.
Environmental Health
Environmental Protection – The service has
undertaken a number of works in default, some of
which relate to enforcement works and as such will in
the first instance be funded from the enforcement
reserve. The Council endeavours to recover all costs
associated with this work from the property owner and
therefore no full year affect is expected.
6,778
26,400
34,501
0
32,300
0
Development Management
Planning Policy – (£11,525) Creditor relating to
professional advice which has not yet offset by
expenditure. (£21,000) Staff turnover including a
temporary post funded from the New Homes Bonus
Reserve. This post may not be required until the
Planning Review Process is completed. If this is the
case then the budget allocated of £35,841 will be
returned to the reserve until required.
Civil Contingencies – Expenditure relating to staff
and grant payments associated with the Repair and
Renewal Scheme (Flood Support Schemes). The
13
Table 1 – Service Variances
grant costs will be reimbursed as part of the
Government scheme referred to at section 2.5.
Funding for the administration of the scheme is yet to
be confirmed, if these costs are not externally funded
then it will either be met by additional in year savings
or from the General Reserve.
Financial Services
Local Taxation – A grant of £77,489 was received
from the DCLG to assist with additional costs
associated with Local Council Tax Support scheme
this was not taken into account when the Base budget
was produced. This grant will be used to fund
additional expenditure and therefore it is not
anticipated that this will affect the bottom line updated
Budget.
Over/ (Under)
Spend to Date
against
Updated
Budget
£
Estimated
Full Year
Variance
Against
Updated Budget
£
(77,489)
0
Benefits – The main year to date variance on the
Benefits service is due to a number of vacant posts It
is anticipated that this will create an full year
underspend of £25,000.
(42,859)
(25,000)
Discretionary Payments – The base budget allowed
for a greater number of town and parish councils
accepting the Local Council Tax Support Scheme
grant which we had initially allocated to them at the
time of budget setting.
(12,496)
(25,043)
(30,177)
0
52,773
0
(21,111)
(53,643)
Organisational Development
Human resources and Payroll – Year to date
savings within the Corporate Training Budget. Now
that the Learning and Development Strategy has been
approved along with an action plan of activities, this
budget will enable the plan to be carried out.
Registration Services – Costs associated with
various elections These costs will be recovered and
no full year effect is anticipated.
TOTALS
2.8
Auto Enrolment - As part of the 2014/15 budget process an assessment was
made of the impact of people enrolling into the pension scheme following the
change in legislation effective from October 2013. At the time, there were 331
people on the payroll, of which 73 were not in the pension scheme. The
budget for 2014/15 and future financial projections assumed that all people
eligible would enrol into the scheme and therefore growth of £112,904 was
factored into the budget. To date just fewer than 15% of those eligible have
opted to enrol. This means the growth is no longer anticipated as planned
14
and therefore £80,000 will be removed from the budget for 2014/15 and
financial projections updated accordingly.
3
Budget Monitoring Position – Savings and Additional Income
3.1
The budget for 2014/15 included savings and additional income totalling
£580,994 within the service areas The detail for each of the service savings is
included at Appendix D. Table 2 below summaries the current position for
each service heading.
Table 2 – Savings and Additional
Income 2014/15
Assets & Leisure
Customer Services
Economic and Community
Development
Economic and Community
Development/Assets/Leisure
Environmental Health
149,760
13,250
113,184
Environmental Health/Assets/Leisure
Finance
Organisational Development
Total
3.2
4.0
2014/15
Base
Budget
£
2014/15
Updated
Budget
£
2014/15
Movement
from the
Base
Budget at
P4
185,760
36,000
13,250
0
113,184
0
40,000
40,000
0
80,000
80,000
0
169,000
(23,000)
8,000
7,800
146,000
8,000
7,800
580,994
593,994
13,000
0
0
The above table shows that the 14/15 budgeted savings/additional income are
expected to be exceeded by £13,000.
Non Service Variances
Investment Interest – to Period 4 2014/15
4.1
The budget for 2014/15 anticipates that a total of £366,300 will be earned in
investment interest. This assumes an average balance of £22.2m at an
average interest rate of 1.65%.
4.2
At the end of period 4, a total of £120,873 had been earned, resulting in a
shortfall against the year to date budget of £1,227. The rate of interest
achieved was 1.25% from an average balance available for investment of
£28.8m.
4.3
Based on the actual results to period 4, a total interest receivable figure of
£335,080 is forecast for the year from an average balance £24.4m at an
average rate of 1.37%. This will result in an estimated shortfall against the
original budget £31,220.
4.4
This forecast assumes that the investment in the LAMIT Pooled Property
Fund will earn £255,500 in interest (5.11%). This is the same amount earned
in 2013/14, and is less than the original budget figure of £274,000 (5.48%). It
is prudent to update the budget in line with the funds historical performance.
15
Units in the fund were valued at £2.4306 at the start of 2014/15. At the end of
July the price has risen to £2.4931. This equates to a rise in value “on paper”
of £139,138 so far this year, but this potential gain could only be realised if the
holding were sold.
4.5
The funds available for investment have been significantly higher than
anticipated in the original budget, but against this the rate of interest achieved
has been lower. The individual investment counterparty limits have been
reduced for 2014/15 and this has resulted in an increased use of money
market funds and the Debt Management Office (DMO) at rates below 0.5%.
4.6
Alternative investment options are being considered with our treasury
advisers, Arlingclose, to reduce the use of money market funds and the DMO.
The intention will be so to enhance the return to the Council in the current
very low interest rate environment, whilst maintaining the security of Council’s
funds.
4.7
One option being considered is covered bonds. These securities are backed
by a separate group of loans such as residential or social housing mortgages.
They offer relatively high credit ratings, depending on the quality of the pool of
loans (the “cover pool”) backing the bond, attractive yields and they would not
be subject to bail-in losses should the investment counterparty get into
financial difficulties. Currently a fixed rate bond for a 4 year period is typically
yielding around 2%. A floating rate bond (where the yield would rise as
interest rates move up) for the same period is currently yielding 0.75%.
Although these returns look less attractive than the returns on the property
fund, it is important to have a diversified portfolio of investments and not have
an over exposure to a single asset class (i.e. property).
Retained Business Rates
4.8
The 2013/14 outturn position highlighted a favourable variance in relation to
the local retention of business rates, further details are included in the update
to the financial strategy which is included on the September Cabinet Agenda.
A revised forecast has now been made for the 2014/15 financial year which
takes account of the section 31 grant which is paid to Local Authorities to
mitigate the impact of the extensions to small business rate relied and the
other business rates measures that were announced as part of the
Chancellors Autumn statement last year. Through the rates retention system
an element of business rates growth is offset by a levy and the section 31
grant is taken into account when calculating the levy payment. Overall for the
2014/15 additional business rates income of £357,000 is expected to be
retained.
16
5.1
Budget Monitoring Position – Summary
5.2
The following table provides a summary of the full year projections for the
service areas along with an updated use of reserves figure where applicable.
Table 3 - Summary of Full Year Effects 2014/15
Service Areas (Table 1)
Savings
not
achieved
Environmental
Health/Assets/Leisure not included in Table 1
Additional Income
Treasury Management
Auto enrolment (Para 2.9)
Total Projected Outturn
Transfer to General Reserve
Estimated
Movement
From
Original
Base
£
(53,643)
17,000
31,220
(80,000)
(85,423)
85,423
6
Budget Monitoring Position – Capital
6.1
Members were provided with an updated capital programme for both the
current and future years as part of the 2013/14 Outturn Report to Cabinet in
June 2014. Since this time there have been five amendments to the
programme for the current financial year, which are outlined below. In
addition to this there are two requests for virement between capital schemes
and one further request for approval of a new capital scheme.
6.2
Cromer to Winterton Scheme (Coastal) - This scheme was initially funded by
the Environment Agency, but since the project’s approval a further £12,000
has been received from external organisations to fund additional works. As a
result the overall budget has been increased to a total of £122,000, thereby
leaving £43,917 available to be spent in the 2014/15 financial year. This
change has been reflected within the Capital Programme identified in
Appendix C.
6.3
Storm Surge Works – Following the Storm Surge in December 2013, the
Environment Agency approved a budget of £765,000 for capital works
associated with the damage incurred during the storm. Further to this, the
Council has made a formal application for another £276,000 of Environment
Agency Grant in June 2014, and as such the budget has been increased to a
total of £1,041,000. This has been reflected in the Capital Programme, with
the result being an updated budget for £2014/15 of £342,618.
17
6.4
Splash Roof Repairs – Originally, the works to be undertaken as part of this
scheme were £60,000 for the roof of the main Splash building which were to
be funded from generic North Norfolk District Council capital receipts. In
2014/15, the Council received a capital receipt of £13,630 on the sale of the
Mobile Gym. As this item of equipment was originally purchased with grants
and contributions from external organisation, mainly Sport England, approval
was sought and given for this capital receipt to be retained as long as it was
used to fund a scheme associated with sports. As a result of this, it has been
determined that additional refurbishment works can be undertaken on the
external Splash office flat roof, which has increased the overall budget to
£73,630.
6.5
Replacement of Dell Equalogic Systems – As part of the Outturn Report to
Cabinet in June 2014 approval was sought and given for the replacement of
the Dell Equalogic hardware storage system. A budget of £30,000 has
therefore been included within the Capital Programme for 2014/15, to be
funded from capital receipts.
6.6
Web Infrastructure Upgrade – At the June 2014 Cabinet Meeting a separate
report was included concerning the upgrade of the Web Infrastructure.
Approval was given for a capital budget of £37,500, to come from the Invest
to Save Reserve, for the engagement of third party technical expertise and
the procurement of associated IT infrastructure components. This has been
updated within the Capital Programme Appendix.
6.7
In addition to these amendments to the Capital Programme approval is also
sought for two virements to be made between existing capital schemes.
There is no additional funding required and no switches in funding from the
previously approved Capital Programme.
6.7.1 Replacement of Planning Scanner and Printer – The purchase of equipment
under this scheme has been completed under budget by £5,602. It is
requested that this underspend be vired to the Planning Probass scheme to
cover the additional costs associated with the purchase of a new server,
which was omitted from the original funding request.
6.7.2 IT Network Switches – The Replacement of Dell Equalogic Systems has been
completed, but unfortunately has come in £8,089 in excess of the original
£30,000 budget allocation. As there are funds available within the IT Network
Switches budget it is requested that this sum be vired across to the Dell
Equalogic Systems to cover the additional expenditure incurred in 2014/15.
6.9
Further to these amendments to the capital programme, a request has also
been received from the Head of Planning for a capital budget of £21,000 to be
made available for Aerial Photography covering the North Norfolk District
Council area. Quotes have been received to undertake this work alongside
other neighbouring authorities, with the £21,000 requested being the NNDC
proportion of the cost. As a result of the works, the Council would therefore
18
have a license to use the digital images in perpetuity which would allow
before and after comparisons for planning and enforcement issues, in addition
to building up a history of the area. There are no ongoing revenue costs
associated with this scheme, with the one off capital payment only being
required for use of these resultant imagery. Approval is therefore sought for a
capital budget to be established to cover the costs of this work.
6.10 Storm Surge Works – Within the revenue budgets significant provision has
been made for the storm damage repairs to various Council owned
properties. Whilst revenue provision has been made, the works, are more
likely to be capital in terms of the values and nature of works being
completed. As a result a review of the storm surge budgets will be
undertaken to establish which schemes subsequently need to be reflected
within the capital programme. This should not result in any additional funding
requirements, but should reflect more accurately the type of expenditure
being incurred. Any changes to the capital programme will be reflected in an
updated Capital Programme Appendix.
7
Conclusion
7.1
The revenue budget is showing an estimated full year under spend for the
current financial year of (£85,423). The overall financial position continues to
be closely monitored and it is anticipated that the overall budget for the
current year will be achieved.
8
Financial Implications and Risks
8.1
The detail within section 2 of the report highlights the more significant
variances including those that are estimated to result in a full year impact.
8.2
The Original base budget for 2014/15 included service savings and additional
income totalling £580,994 at Period 4 this figure has increased to £593,994.
The progress
in achieving these is being monitored as part of the overall budget monitoring
process and where applicable corrective action will be identified and
implemented to ensure the overall budget remains achievable.
8.3
Of the estimated outturn shown in Table 1 £85,423 will be transferred to
General Reserves as shown in Table 3 along with the £357,000 additional
business rates income referred to in 4.8. The impact of this will be that the
budgets affected will reduce and reserves will increase. By taking these
forecast outturn adjustments at the end of the reporting period, a constantly
updated budget is achieved, rather than as reported previously, updating at
one point in time during the year.
9
Sustainability - None as a direct consequence from this report.
10
Equality and Diversity - None as a direct consequence from this report.
11
Section 17 Crime and Disorder considerations - None as a direct
consequence from this report.
19
Appendix A
General Fund Summary Report for Period 4 Year 2014/2015
Original
Budget
£
Net Cost Of Services
Assets & Leisure
Community, Econ Dev & Coast
Corporate
Customer Services
Development Management
Environmental Health
Finance
Organisational Development
Total
Commitm Remaining
YTD Budget Actuals YTD YTD Variance
ents
Budget
£
£
£
£
£
Updated
Budget
£
2,376,144
7,932,185
0
721,015
1,346,801
4,144,612
3,083,867
955,452
2,423,977
8,443,730
(5,000)
821,014
1,376,429
4,144,713
3,237,589
972,376
931,923
348,583
(1,658)
269,113
458,806
428,352
1,307,702
319,061
1,074,998
325,609
(26,336)
193,259
339,296
477,171
1,174,561
325,754
143,075 1,520,728
(22,974) 584,253
(24,678)
29,009
(75,854) 117,005
(119,510)
59,416
48,819 3,075,833
(133,141) 174,655
6,693
5,613
(171,749)
7,533,868
(7,673)
510,750
977,717
591,709
1,888,373
641,009
Net Cost Of Services
20,560,076
21,414,828
4,061,882
3,884,312
(177,570) 5,566,512
11,964,004
Non Service Expenditure/Income
Precepts Of Parish Councils
Interest Receivable
External Interest Paid
Capital Charges
Retirement Benefits
Contributions To/From Reserves
Revenue Financing For Capital
1,635,884
(363,710)
0
(7,699,575)
265,787
(426,538)
420,950
1,635,884
(363,710)
0
(7,699,575)
265,787
(1,688,493)
828,153
817,942
(121,236)
0
(711,780)
0
0
0
817,963
(120,402)
131
(711,788)
0
0
0
21
834
131
(8)
0
0
0
0
0
0
0
0
0
0
817,921
(243,308)
(131)
(6,987,787)
265,787
(1,688,493)
828,153
Non Service Expenditure/Income
(6,167,202)
(7,021,954)
(15,074)
(14,096)
978
0
0
0
(7,007,858)
(9,714,382)
(4,678,492)
(9,714,382) (3,530,210)
(4,678,492) (2,209,753)
(4,186,961)
(2,238,829)
(656,751)
(29,076)
0
0
(5,527,421)
(2,439,663)
(14,392,874) (14,392,874) (5,739,963)
(6,425,790)
(685,827)
0
(7,967,084)
(2,555,574)
(862,419) 5,566,512
(3,010,938)
Income
Council Taxpayers
Central Government Grants
Income
(Surplus)/Deficit
0
0 (1,693,155)
20
Appendix B
Service Area Summaries 2014-15 P4
Assets & Leisure
Cost
Centre
Code
Updated
Budget
£
R200
R200A
R201
R202
R203
R204
R262
R262A
R300
R301
R302
R303
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handy Man
Parklands
Administration Buildings Svs
Property Services
Parks & Open Spaces
Foreshore
Community Centres
Sports Centres
R304
R305
R306
R309
R310
R312
R314
R315
R318
R397
R414
Leisure Complexes
Other Sports
Recreation Grounds
Pier Pavilion
Foreshore (Community)
Woodlands Management
Cromer Pier
Public Conveniences
Investment Properties
Leisure
Cctv
Total Assets and Leisure
(1,309,736)
70,131
(18,879)
3,100
(17,231)
(1,082)
97,908
0
489,660
233,346
14,935
305,259
660,292
116,761
11,017
103,417
412,053
168,245
39,111
608,979
304,566
0
132,125
2,423,977
YTD
Budget
£
YTD
Actuals
£
(459,027) (578,262)
(12,632) (14,633)
(14,697)
(8,773)
1,002
952
32,016
34,167
(27,791) (24,365)
115,161 113,602
(28,728) (29,002)
140,502 143,769
82,571
72,163
4,927
3,101
75,578
77,949
195,563
63,601
2,960
77,147
179,896
50,471
25,402
225,516
123,270
12
79,203
189,816
56,111
2,546
75,183
195,592
58,161
173,932
243,015
208,006
(1,716)
83,684
931,923 1,074,998
YTD
Variance
£
Commit
ments
£
Remaining
Budget
£
(119,235)
(2,001)
5,924
(50)
2,151
3,426
(1,560)
(274)
3,267
(10,408)
(1,826)
2,371
121,138
21,377
5,041
0
0
0
131,224
0
287,568
6,292
496
103,220
(852,612)
63,387
(15,147)
2,148
(51,398)
23,283
(146,918)
29,002
58,323
154,891
11,338
124,090
(5,747)
(7,490)
(414)
(1,964)
15,696
7,690
148,530
17,499
84,736
(1,728)
4,481
224,632
5,549
6,488
67,741
196,397
57,412
7,619
207,210
69,217
141
0
245,844
55,101
1,983
(39,507)
20,064
52,672
(142,440)
158,754
27,343
1,575
48,441
143,074 1,518,762
(169,783)
Community, Economic Development & Coast
Cost
Centre
Code
R112A
R307
R308
R330
R333
R340
R341
R391
R391B
R398
R399
R415
R472
Full Year
Budget
£
Health
Arts & Entertainments
Museums
General Economic Development
Tourism
Coast Protection
Pathfinder
Regeneration Management
Comm & Econ Dev Mgt
Housing (Health & Wellbeing)
Housing Strategy
Community And Localism
Coastal Management
Total Community, Econ Dev & Coast
0
100,675
88
429,082
140,318
1,674,525
57,397
0
(5,000)
2,186,651
3,610,743
206,764
42,487
8,443,730
YTD
Budget
£
YTD
Actuals
£
0 (11,104)
43,400
42,292
32
32
126,531 126,398
59,022
57,267
408,903 407,411
3,397
3,360
(1,988)
(5,381)
(1,670)
(3,119)
64,856
57,286
(23,636)
(9,730)
(340,440) (345,381)
10,176
6,278
348,583
21
325,609
YTD
Variance
£
Commit
ments
£
Remaining
Budget
£
(11,104)
(1,108)
0
(133)
(1,755)
(1,492)
(37)
(3,393)
(1,449)
(7,570)
13,906
(4,941)
(3,898)
0
30,862
0
37,831
28,088
387,132
0
150
280
0
17,734
82,176
0
11,104
27,521
56
264,853
54,963
879,982
54,037
5,231
(2,161)
2,129,365
3,602,739
469,969
36,209
(22,974)
584,253
7,533,868
Appendix B
Corporate
Cost
Centre
Code
R460A
R481
Full Year
Budget
£
Corporate Leadership Team
Legal Services
Total Corporate
YTD
Budget
£
YTD
Actuals
£
YTD
Variance
£
Commit
ments
£
Remaining
Budget
£
(5,000)
0
(1,658)
0
(8,380)
(17,956)
(6,722)
(17,956)
3,161
25,849
219
(7,893)
(5,000)
(1,658)
(26,336)
(24,678)
29,010
(7,674)
Customer Services
Cost
Centre
Code
R261
R311
R372
R394
R411
R430
R481B
R481C
R481D
Full Year
Updated
Budget
£
It - Support Services
Tic'S
Homelessness
Customer Services Housing
Transport
Publicity
Graphical Info System
Media & Communications
Customer Services - Corporate
Total Customer Services
YTD
Budget
£
YTD
Actuals
£
YTD
Variance
£
Commit
ments
£
Remaining
Budget
£
55,500
305,033
375,113
0
40,290
610
1,227
56,277
(13,036)
(11,175)
110,300
123,783
(3,460)
13,928
204
8,696
27,212
(375)
(20,126)
82,128
132,115
(4,912)
13,928
204
4,432
17,444
(31,954)
(8,951)
(28,172)
8,332
(1,452)
0
0
(4,264)
(9,768)
(31,579)
34,280
30,547
21,912
0
0
0
0
22,340
7,926
41,346
192,358
221,086
4,912
26,362
406
(3,205)
16,493
10,992
821,014
269,113
193,259
(75,854)
117,005
510,750
Development Management
Cost
Centre
Code
Full Year
Budget
£
YTD
Budget
£
YTD
Actuals
£
YTD
Variance
£
Commit
ments
£
Remaining
Budget
£
R100
R101
Development Management
Planning Policy
637,226
261,986
212,978
90,070
193,956
56,330
(19,022)
(33,740)
6,168
0
437,102
205,656
R102
Conservation & Design
139,032
45,292
30,217
(15,075)
1,800
107,015
R103
R121
Landscape
Building Control & Access
151,448
78,576
43,672
33,004
41,523
(4,631)
(2,149)
(37,635)
0
4,630
109,925
78,577
R150
R402
Planning Management & Support
Property Information
18,038
90,123
11,238
22,552
18,016
3,885
6,778
(18,667)
533
46,285
(511)
39,953
1,376,429
458,806
339,296
(119,510)
59,416
977,717
Total Development Management
22
Appendix B
Environmental Health
Cost
Centre
Code
R111A
R114
R115
R117
R117B
R118
R119A
R120
R151
R316
R317
R412
R413
R420
Full Year
Budget
£
Commercial Services
Rural Sewerage Schemes
Travellers
Public Protection
Street Signage
Pest Control
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection And Disposal
Cleansing
Environmental Strategy
Community Safety
Civil Contingencies
Total Environmental Health
498,058
361,164
99,100
100,881
35,807
15,590
550,717
60,964
5,445
1,538,052
682,018
31,667
22,570
142,680
4,144,713
YTD
Budget
£
YTD
Actuals
£
166,024 162,286
180,530 180,530
41,818
43,544
67,668
64,125
7,784
5,933
5,204
4,783
160,466 194,967
20,336
17,168
(3,832)
(6,961)
(410,365) (419,364)
147,643 152,735
(772)
(723)
860
860
44,988
77,288
428,352
477,171
YTD
Variance
£
Commit
ments
£
Remaining
Budget
£
(3,738)
5,375
0
0
1,726
23,957
(3,543)
8,422
(1,851)
7,250
(421)
263
34,501
27,263
(3,168)
12,150
(3,129)
13,888
(8,999) 2,445,813
5,092 520,411
49
9,052
0
0
32,300
1,989
330,397
180,634
31,599
28,334
22,624
10,544
328,487
31,646
(1,482)
(488,397)
8,872
23,338
21,710
63,403
48,819 3,075,833
591,709
Finance
Cost
Centre
Code
R210
R211
R214
R219
R251
R263
R263C
R450
R450A
Full Year
Budget
£
Local Taxation
Benefits
Discrectionary Payments
Non Distributed Costs
Benefits & Revenues Mgmt
Corporate Finance
Internal Audit
Central Costs
Corporate & Democratic Core
Total Finance
547,442
1,066,252
201,831
3,392
0
2,000
13,600
(8,085)
1,411,157
3,237,589
YTD
Budget
£
195,361
505,171
66,916
69,842
1,672
2,806
(34,536)
(2,682)
503,152
YTD
Actuals
£
YTD
Variance
£
Commit
ments
£
Remaining
Budget
£
117,872
462,312
54,420
82,768
1,620
(6,786)
(38,536)
(151)
501,042
(77,489)
(42,859)
(12,496)
12,926
(52)
(9,592)
(4,000)
2,531
(2,110)
3,008
39,637
0
0
0
7,469
101,234
0
23,307
426,562
564,303
147,411
(79,376)
(1,620)
1,317
(49,098)
(7,934)
886,808
1,307,702 1,174,561
(133,141)
174,655
1,888,373
Organisational Development
Cost
Centre
Code
R260
R263B
R263D
R400
R450B
Full Year
Budget
£
Human Resources & Payroll
Insurance & Risk Management
Policy & Performance Mgt
Registration Services
Members Services
Total Organisational Development
Total Service Areas
YTD
Budget
£
YTD
Actuals
£
YTD
Variance
£
Commit
ments
£
Remaining
Budget
£
41,624
5,000
0
336,939
588,813
20,213
(49,476)
8
152,033
196,283
(9,964)
(53,103)
(2,854)
204,806
186,869
(30,177)
(3,627)
(2,862)
52,773
(9,414)
2,674
0
0
2,685
254
48,914
58,103
2,854
129,448
401,690
972,376
319,061
325,754
6,693
5,613
641,009
(177,571) 5,564,547
11,965,969
21,414,828
4,061,882 3,884,312
23
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 4 Budget Monitoring 2014/15
Scheme
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 4
£
£
£
Actual Expenditure at
Period 4
Variance to 2014/15
Updated Budget
Comments
Updated Budget
2015/16
Updated Budget
2016/17
£
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation Centre
50,000
10,295
39,705
0
(39,705)
0
0
32,168
44,916
62
0
0
68,379
5,000
0
(5,000)
0
0
310
14,690
6,623
(8,067)
0
0
0
110,000
7,872
(102,128)
0
0
111,152
214,311
14,557
(199,754)
0
0
Financed by;
NNDC (Capital Receipts)
50,000
Rocket House
77,084
(44,854) This scheme is currently on
hold.
Financed by;
NNDC (Capital Receipts)
77,084
Carbon Reduction Scheme
Financed by;
NNDC (Cap Receipts - Carbon Reduction
Fund)
73,379
Public Conveniences (Plumbing and
Drainage)
Financed by;
NNCD (Capital Receipts)
73,379
15,000
15,000
Council Car Park Improvements 2014/15
110,000
Financed by;
110,000
NNCD (Capital Receipts)
325,463
Works are continuing on
individual public
conveniences, with some
individual projects already
having been completed
The main tender pre
qualification reviews have
been completed. Works are
scheduled to be completed
after the end of the summer
season in
October/November.
Housing and Infrastructure
Disabled Facilities Grants
Financed by;
Specified Capital Grant
NNDC (Capital Receipts)
Annual programme
0
1,293,220
167,692
(1,125,528)
772,578
0
Housing Associations
Financed by;
NNDC (Capital Receipts)
NNDC (Capital Projects Reserve)
Affordable Housing Contributions
Annual programme
0
500,543
0
(500,543)
0
0
24
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 4 Budget Monitoring 2014/15
Scheme
Housing Loans to Registered Providers
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
£
£
Updated Budget
2014/15 at Period 4
Actual Expenditure at
Period 4
Variance to 2014/15
Updated Budget
£
Capital Projects Reserve
£
0
0
Initial drawings for the new
laundry block have been
completed by the Architects,
but the physical works are
currently on hold due to
other work commitments in
relation to the Storm Surge..
0
0
(5,225,885)
772,578
0
0
(40,115)
220,000
0
2,352
0
(2,352)
0
0
1,280,688
137,943
464
(137,479)
0
0
67,727
11,773
0
(11,773)
0
0
1,301
198,699
4,739
(193,960) although it is anticipated that
0
0
41,306
112,194
0
(112,194) Tenders for the Sheringham
0
0
0
0
100,000
185
(99,815)
3,600,000
0
5,393,763
167,878
1,409,000
1,148,885
40,115
37,671
with the template loan
agreement having been
drafted.
2,484,769
90,800
Internal/External Borrowing
924,431
Parkland Improvements
100,000
Financed by;
NNDC (Capital Receipts)
Updated Budget
2016/17
£
3,500,000
Financed by;
Capital Receipts
Updated Budget
2015/16
(3,500,000) This scheme is progressing,
0
3,500,000
Comments
100,000
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
Financed by:
Grant
Sheringham Beach Handrails
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Capital Receipts)
Cromer Pier Structural Works - Phase 2
Financed by;
NNDC (Capital Receipts)
Sheringham Promenade Lighting
Financed by;
NNDC (Capital Receipts)
Other Contributions
Cromer Pier and West Prom Refurbishment
Project
Financed by:
NNDC (Capital Receipts)
Refurbishment Works to the Seaside
Shelters
Financed by:
NNDC (Capital Receipts)
1,409,000
40,023
5,023
35,000
1,418,631
1,418,631
79,500
46,500
33,000
200,000
200,000
153,500
153,500
25
Works are progressing ,
there may be some slippage
in the scheme to the new
financial year. In addition to
Shelters have been
undertaken, with the contract
works to commence in
September 2014.
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 4 Budget Monitoring 2014/15
Scheme
Cromer Coast Protection Scheme 982 and
SEA
Financed by:
Environment Agency Grant
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 4
£
£
£
Actual Expenditure at
Period 4
Variance to 2014/15
Updated Budget
Comments
Updated Budget
2015/16
Updated Budget
2016/17
£
£
1,670,701
8,729,299
273,868
(8,455,431)
0
0
1,667,657
299,358
12,460
(286,898)
0
0
78,083
43,917
11,562
(32,355)
0
0
12,228
77,772
0
(77,772)
0
0
698,382
342,618
113,738
(228,880)
0
0
0
590,000
398
(589,602)
0
0
0
70,000
0
(70,000)
0
2,151,000
19,731,669
6,704,629
10,656,040
417,229
(10,238,811)
220,000
2,151,000
North Lodge Park
Financed by;
NNCD (Capital Receipts)
197,000
732
196,268
0
0
0
Big Society Fund
Financed by:
NNDC (Capital Receipts)
RCCO
507,000
394,000
113,000
62,500
(50,500)
0
0
17,045
52,955
0
(52,955)
0
0
Pathfinder Project
Financed by:
DEFRA Grant
Cromer to Winterton Scheme
Financed by:
Environment Agency Grant
10,400,000
10,400,000
1,967,015
1,967,015
122,000
110,000
External Contributions
12,000
Coastal Erosion Assistance
Financed by:
Government Grant
90,000
90,000
Storm Surge
Financed by;
Environment Agency Grant
1,041,000
Sheringham West Prom
Financed by;
NNDC (Capital Receipts)
Environment Agency Grant
590,000
Mundesley - Refurbishment of Coastal
Defences
Financed by;
NNDC (Capital Receipts)
Environment Agency Grant
1,041,000
215,000
375,000
2,221,000
307,000
1,914,000
Localism
North Walsham Regeneration Schemes
Financed by:
NNDC (Capital Receipts)
(196,268) This scheme is currently on
hold pending negotiations
with Cromer Town Council.
197,000
482,000
25,000
70,000
70,000
26
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 4 Budget Monitoring 2014/15
Scheme
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
£
£
Updated Budget
2014/15 at Period 4
Actual Expenditure at
Period 4
£
Variance to 2014/15
Updated Budget
(54,370) The Council are still trying to
0
54,370
0
9,191
90,809
59,221
(31,588)
0
73,630
93
0
30,000
1,032,000
420,968
Trade Waste Bins/ Waste Vehicle
Financed by:
NNDC (Capital Receipts)
LPSA Grant
272,700
Personal Computer Replacement Fund
Financed by;
NNDC (Capital Receipts)
NNDC (RCCO)
204,958
Victory Swim and Fitness Centre
Financed by;
NNCD (Capital Receipts)
54,370
100,000
Splash Roof Repairs
Financed by;
NNCD (Capital Receipts)
Other Contributions
73,630
Steelwork Protection to Victory Pool
Financed by;
NNCD (Capital Receipts)
30,000
Updated Budget
2015/16
Updated Budget
2016/17
£
£
0
0
Works are progressing in
relation to this scheme.
0
0
(73,537)
Consultants have
undertaken a review of the
roof. The tender is currently
being prepared with prices
due back within the next
0
0
0
(30,000)
This scheme is ongoing.
0
0
611,032
121,814
(489,219)
0
0
192,817
79,883
11,596
(68,287)
0
0
162,603
22,355
94
(22,261)
20,000
0
221,082
11,345
0
(11,345)
0
0
63,190
11,810
0
(11,810) Options are currently being
0
0
187,058
119,098
0
0
0
21,506
11,494
0
0
0
appoint contractors for this
work, but the scheme is
anticipated as being
54,370
Play Areas
Financed by;
NNCD (Capital Receipts)
Comments
100,000
43,630
30,000
30,000
Delivering the Vision
Waste Management & Environmental Health
IT System
Financed by;
NNDC (Capital Receipts)
WPEG Grant
DEFRA Grant
Asset Management Computer System
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Asset Management Reserve)
Procurement for Upgrade of Civica System
Financed by:
NNDC (Capital Receipts)
Other Grants (RIEP)
DWP Performance Standards Fund
e-Financials Financial Management System
Software Upgrade
Financed by:
NNDC (Capital Receipts)
194,784
77,916
161,322
43,636
232,427
131,514
83,486
17,427
75,000
considered in relation to this
scheme.
60,000
15,000
306,156
(119,098)
210,947
53,800
41,409
33,000
Options are currently being
(11,494) considered in relation to this
scheme.
33,000
27
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 4 Budget Monitoring 2014/15
Scheme
Administrative Buildings
Financed by;
NNDC (Capital Receipts)
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 4
£
£
£
124,060
126,510
33,595
98
20,902
15,300
12,500
3,500
0
Variance to 2014/15
Updated Budget
(92,915)
Comments
Updated Budget
2015/16
Updated Budget
2016/17
£
£
0
0
(5,602) This project is complete with
0
0
0
(3,500)
0
0
10,000
0
(10,000)
0
0
0
27,185
0
(27,185)
0
0
0
60,000
0
(60,000) The scheme is under review
0
0
0
100,000
0
(100,000)
A virement of £8,089 has
been requested from this
budget to cover an
overspend against the
0
0
0
30,000
38,090
8,090
This scheme has been
completed, at an overspend
of £8,089. A virement
request has been made to
0
0
0
90,000
0
(90,000)
0
0
0
37,500
47
(37,453)
0
0
1,766,496
984,914
761,582
98,722
(662,860)
20,000
0
26,455,628
8,221,663
17,636,728
820,199
(16,816,529)
1,012,578
2,151,000
250,570
Works are progressing.
250,570
Replacement of Planning Printer and Scanner
Financed by:
NNDC (Capital Receipts)
21,000
Committee Management Information System
Financed by:
NNDC (Capital Receipts)
16,000
Cash Receipting System Upgrade
Financed by:
NNDC (Capital Receipts)
10,000
Planning Probass 4
Financed by:
NNDC (Capital Receipts)
27,185
Planning System (Scanning of Old Files)
Financed by:
NNDC (Capital Receipts)
60,000
IT Network Switches
Financed by:
NNDC (Capital Receipts)
Actual Expenditure at
Period 4
2 scanners / printers having
beein purchased. The
remaining balance of budget
21,000
16,000
10,000
27,185
in light of the Council's
Business Transformation
Programme. Expenditure is
60,000
100,000
100,000
Replacement of Dell Equalogic Systems
Financed by:
NNDC (Capital Receipts)
30,000
Telephony Procurement
Financed by:
NNDC (Capital Receipts)
90,000
Web Infrastructure Upgrade
Financed by:
Invest to Save Reserve
37,500
The specification for this
scheme has been updated
to include the upgrade the
servers for Planning
30,000
90,000
37,500
28
Appendix C
GENERAL FUND CAPITAL PROGRAMME - Period 4 Budget Monitoring 2014/15
Scheme
Scheme Total
Current Estimate
Pre 31/3/14 Actual
Expenditure
Updated Budget
2014/15 at Period 4
£
£
£
Actual Expenditure at
Period 4
Variance to 2014/15
Updated Budget
Comments
Updated Budget
2015/16
Updated Budget
2016/17
£
£
Capital Programme Financing
Environment Agency Grant
9,626,606
0
1,844,000
DEFRA Grant
339,473
220,000
0
Disabled Facilities Grants
466,046
443,000
0
Other Grants
0
0
0
Affordable Housing Contributions
0
0
0
Other Contributions
7,771
0
0
Asset Management Reserve
3,983
0
0
0
0
0
Capital Project Reserve
599,170
0
0
Invest to Save Reserve
37,500
0
0
5,589,748
349,578
307,000
966,431
0
0
17,636,728
1,012,578
2,151,000
Revenue Contribution to Capital (RCCO)
Capital Receipts
Internal / External Borrowing
TOTAL FINANCING
29
Appendix D
2014/15 Budget - Savings and Additional Income
Ref.
Service
2014/15
Outline of
Brief Outline of Saving/Additional Income (where
Savings
Saving/Additional Income
applicable)
/Income
OD1
Org Development
Performance Unit Savings Misc budgets within the service no longer requried.
F1
Finance
Professional Fees Accountancy
Removal of base budget for one-off funding,
historically used for one-off external work or interim
cover, in future fund these items from one-off use of
reserves as opposed to maintaining unallocated base
budgets.
2014/15
P4 Update
Variance
(7,800)
(7,800)
0
(8,000)
(8,000)
0
ECD1
Economic & Community Sustainability &
Development
Environmental Strategy
Removal of current vacant post
(38,804)
(38,804)
0
ECD2
Economic & Community Economic & Community
Development
Development
Internal restructure
(74,380)
(74,380)
0
(169,000)
(146,000)
23,000
(40,000)
(40,000)
0
EH1& Env Health / Assets and
Contract Savings
AL2 Leisure
Review and variation to the contracts within
Environmental Health and Assets and Leisure
EH2
Env Health
Garden Waste Service
Additional Income
EH3
Env Health
Improved recycling credits and reduced costs
Materials Recycling Facility (payments to community organisations/groups) (pro
rata for 14/15 - review)
(40,000)
(40,000)
0
AL1
Assets and Leisure
CCTV
Decommissioning of the CCTV service from 1 April
2014, full year saving from 2015/16, after decommissioning costs. Renting of office space
(149,760)
(185,760)
(36,000)
CC1
Economic & Community
Development and
Grants
Assets and Leisure
Various Grants - withdraw of funding for Museum
service.
(40,000)
(40,000)
0
N/A
Customer Services
Provision of customer services facility to NCC
(13,250)
(13,250)
0
(580,994)
(593,994)
(13,000)
Office Rental and
Customer Services to
external users
Additional income
Total
30
Agenda Item No_____13_______
FINANCIAL STRATEGY 2015/16 TO 2017/18
Summary
Options considered
This report presents the current financial forecast for the
period 2015/16 to 2017/18 and provides a summary of the
key issues facing the Council in relation to Local
Government Finance. The report provides the background
and context within which the financial strategy and outlines
the strategy for the next two to three years.
None
Conclusions
The current financial forecast presents a funding gap for the
next three years of just over £1.2 million by 2017/18.
Estimates have been made on the level of future funding,
although there is still a great deal of uncertainty on the level
of grant reductions that Local Authorities will be facing.
Recommendations
It is recommended that:
1) Members consider and note:
a) The current financial forecast for the period
2015/16 to 2017/18;
b) The current capital funding forecasts;
2) Members consider and recommend to Full Council:
a) Continuation of the current Local Council Tax
Support Scheme for 2015/16;
b) That the Local Council Tax Support Scheme
grant for parishes be offered to those parish and
town councils that accepted the grant in 2014/15
and the total amount available is reduced in line
with the Council’s relative funding reductions as
outlined at section 2.8.5;
c) The revised reserves statement as included at
Appendix E to the financial strategy;
Reasons for
Recommendations
To update members with the current financial position of the
authority and the current financial strategy for addressing
the funding shortfall and also to ensure timely decisions can
be made to inform the detailed work on the budget for
2015/16 which will be commencing in the coming months.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Cabinet Member(s)
Ward(s) affected
Cllr Wyndham Northam
All
Contact Officer, telephone number and email:
Karen Sly, 01263-516243, Karen.sly@north-norfolk.gov.uk
31
1.
Introduction
1.1
The paper attached as an appendix to this covering report sets out the
Financial Strategy for the period 2015/16 to 2017/18. It sets out how both the
external financial changes and internal budget pressures will impact on the
overall financial position of the Council for the next three years.
1.2
In addition the Financial Strategy updates the Council’s financial projections.
It identifies the budgetary pressures on the Council during the period of the
Corporate Plan by examining inflation, service pressures, income streams,
reserves and the capital programme and seeks to identify strategies for
addressing these areas within the overall context of the revenue and capital
budgets.
1.3
As part of the annual budget process the Financial Strategy is the first of a
number of pieces of work which culminate in setting the annual budget for the
forward financial year in February 2015.
2.
Financial Implications and Risks
2.1
The detail within the financial strategy has highlighted the significant
challenges that Local Authorities are facing in terms of the forecast funding
reductions.
2.2
The strategy provides an update to the funding forecasts for the period
2015/16 to 2017/18 which have been informed by a recent consultation
papers on the Local Government Financial Settlement for 2015/16.
2.3
The Strategy provides details of a programme of efficiency savings and
workstreams that will be delivered over the period of the financial strategy
that will assist in reducing the forecast budget gap.
3
Sustainability
3.1
None as a direct consequence from this report.
4.
Equality and Diversity
4.1
This report does not raise any equality and diversity issues.
5.
Section 17 Crime and Disorder considerations
5.1
This report does not raise any Crime and Disorder considerations.
32
FINANCIAL STRATEGY 2015/16 TO 2017/18
1.
INTRODUCTION
1.1
The purpose of updating the medium term financial strategy (MTFS) each year is to
ensure that a longer term/strategic view can be taken when making decisions that will
have a financial impact in the current and future years.
1.2
The Council‟s Corporate Plan1 “small government big society” and the accompanying
annual action2 plan set out the context within which the ambitions of the Council will be
delivered over the medium term to 2015. The annual action plan sets out the detail of
how the Corporate Plan priorities will be delivered over the period 1 April 2014 to 31
March 2015.
1.3
This MTFS informs the attainment of the Council‟s priorities by setting out the
framework within which the financial resources are available to the Council over the
medium term. In doing so the strategy provides a high-level assessment of the
resources available over the medium term informed by certain assumptions both about
national economic and financial prospects as well as local economic conditions.
1.4
The strategy explores the expenditure plans of the Council and sets these against the
impact of reduced central government funding. It also considers the capacity for
levying council tax, the likely levels of grants and the part played by fees and charges
in the overall revenue budget of the Council going forward.
1.5
In addition the MTFS explores the demands on the capital programme both in terms of
ambition and resources and on the level of reserves held by the Council.
1.6
Finally the strategy addresses both the sustainability of the Councils financial position
and examines the risks inherent in the proposals.
1.7
1.8
1
2
The MTFS includes the following:

Background and Context – this provides an overview of the wider financial
issues and assumptions that have been made in the strategy and forward
financial projections;

Resources – this provides an overview of the resources available to the Council
from grants and income;

Financial Forecast – this provides an update to the financial projections made in
February 2014 taking into account known changes to expenditure and income
forecasts and revised forecasts as applicable;

Reserves – this section provides an overview of the Council‟s reserves both
general and earmarked;

Capital – an overview of the current capital programme and resources is
included within this section of the MTFS;

Financial Strategy – this section of the document outlines some of the work that
is currently in progress or is due to commence in the short to medium term to
reduce the forecast deficit;

Risk – this section outlines the more significant financial risks facing the
Council.
http://www.northnorfolk.org/council/9047.asp
http://www.northnorfolk.org/files/Annual_Action_Plan-14-15.pdf
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August 2014
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2.
BACKGROUND AND CONTEXT
2.1
The 2014/15 budget was set and approved in February 2014. At the same time the
forward financial projections for the following three years were reported. These were
based on current expenditure and income plans at the time taking into account
inflationary increases (where applicable) along with agreed savings plans and
additional income where applicable. They also included projections of government
funding based on the 2015/16 provisional finance settlement as announced in
February 2014.
2.2
This document now provides the latest financial forecast for the period 2015/16 to
2017/18 which has been informed by both local and national factors that have or are
due to have an impact on the overall financial position for the Council moving forward.
2.3
As always there continues to be a number of important issues facing the public sector
along with the associated financial impact. This section of the report seeks to outline a
number of these issues, in particular the following:
2.4

Economic Outlook (2.4)

Funding (2.5)

Business Rates Retention (2.6.2)

New Homes Bonus (2.7)

Local Council Tax Support (2.8)
Economic Outlook
2.4.1
The UK economy has continued its recovery and now has one of the fastest rates
of growth in the western world. Growth in Gross Domestic Product (GDP) has
averaged 0.8% per quarter since the middle of 2013 and the Bank of England in its
August Inflation Report revised up its expectation for growth in 2014 to 3.5% and
for 2015 to 2.9%. It reported that the recovery has continued to broaden with
robust spending by businesses and households, supported by lower uncertainty
and continuing improvements in credit conditions. Business surveys are also
encouraging and household consumption has remained strong with consumer
confidence high despite continued weakness in wages.
2.4.2
Unemployment has fallen sharply and is now expected to drop below 6% by the
end of the year. However pay growth has been remarkably weak and this is a
concern as a revival in household incomes helps to underpin a sustained
expansion in the economy.
2.4.3
Consumer Price Inflation (CPI) is projected to remain close to the 2% target with
global energy prices remaining a key risk, especially if they become more sensitive
to geo-political events.
2.4.4
The Bank of England‟s general guidance on the bank rate indicates that increases,
when they come, are likely to be gradual and limited. The financial markets are
anticipating an increase in the bank rate to 0.75% in February 2015. However, the
Council‟s treasury adviser, Arlingclose, whilst recognising that stronger growth is
likely to use up spare capacity in the economy more quickly, forecast the first rise
in official interest to happen in the third quarter of 2015 which is later than market
sentiment suggests. There is clear momentum in the economy, but inflation is
benign and is currently below target. Arlingclose expect this situation to persist for
some time and with a lack of wage pressures, reduces the need for immediate
monetary tightening.
2.4.5
The risk of deflation is a potentially damaging development in the countries of the
Eurozone. Austerity has resulted in unemployment or lower wages which has
resulted in reduced demand. Economic growth in the economies of France,
Financial Strategy 2015/16 to 2017/18
August 2014
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Germany and Italy is either stagnant or declining and the situation can only get
worse with the impact of trade sanctions with Russia introduced following the loss
of the Malaysian airliner.
2.5
Funding
2.5.1
The 2014/15 financial year is the second year of the Local Authority funding
system introduced by the Local Government Finance Act 2012. The significant
changes were the introduction of localised council tax support and retention of
business rates.
2.5.2
Localised council tax support replaced the previous scheme of council tax benefit
whereby discounts are now available to those previously entitled to council tax
benefit. The previous scheme was funded 100% from the Department for Work and
Pensions (DWP) subsidy system and is now funded (partly) through grant funding
and the scheme itself, i.e. from council tax now collectable from those previously
not eligible to pay.
2.5.3
Before April 2013 all business rate income collected locally was passed over to
central government to form a national pool. This was then redistributed by
government using the formula grant system. The changes introduced from the
Local Government Finance Act 2012 and the associated regulations essentially
split the business rate income collected 50/50 into a „local share‟ and a „central
share‟. The new scheme also allows up to half of any business rate growth to be
retained locally, providing an incentive to Councils to generate and support
business growth. The central share is redistributed to Councils in the form of
revenue support grant (RSG) in the similar way as formula grant allocation.
2.5.4
Whilst the move to retention of business rates provides a financial incentive to
Local Authorities at the same time it has resulted in more risk and uncertainty
around funding streams and also the impact of appeals being borne locally.
2.5.5
The Government uses a measure called “Revenue Spending Power” for local
authority finance. The main elements of spending power are as follow:



2.5.6
Council Tax Income
New Homes Bonus
Government Grants.
Table 1 provides a summary of the main elements of Revenue Spending Power as
included in the 2014/15 finance settlement. The settlement announcement included
figures for 2014/15 along with illustrative figures for 2015/16; the projections for
future financial years are informed by these announcements along with any
updates.
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August 2014
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Table 1 - Revenue Spending Power - February 2014 Notification
2014/15
Spending
Power
2015/16
Illustrative
Spending
Power
£000
£000
Council Tax Requiremenet (excluding parishes)
5,075
5,093
Settlement Funding Assessment
6,204
5,246
Grant to Reflect B Rates Cap
30
30
Community Right to Challenge
9
0
Community Right to Bid
8
0
Council Tax Freeze Grant (2014/15)
58
58
Council Tax Freeze Grant (2015/16)
0
58
New Homes Bonus
1,267
New Homes Bonus - Returned Funding
Localised Council Tax Support and Hsg benefit
Admin Subsidy
Council Tax Support New Burdens Funding
1,829 *
10
25
583
0
76
0
13,320
12,339
* Note the Settlement assumed similar delivery of the new homes/reduction in empty
properties as previous year, these have been reduced in the NNDC financial projections
2.5.7
The main element of government funding is the “Settlement Funding Assessment”
(SFA). This is made up of revenue support grants (RSG) and baseline funding
level (retained business rates). The baseline funding element is increased by RPI
each year and the RSG is reduced year on year in line with the government
programme of funding reductions. Table 2 provides a breakdown of the SFA for
2014/15 and 2015/16.
Table 2 - Settlement Funding Assessment (SFA)
2.6
2.6.1
2014/15
2015/16 Illustrative
£000
£000
Revenue Support Grant
3,331
2,294
Baseline Funding Level
2,872
2,952
Total Settlement Funding Assessment
6,203
5,246
Movement
£000
%
(1,037) -31.14%
80
2.76%
(957) -15.43%
Revenue Support Grant
The revenue support grant (RSG) element of the funding is anticipated to continue
to reduce year on year with an expectation that Local Authorities funding will be
predominately from the retained business rates. Based on current funding
forecasts, it would not be unrealistic to assume that the level of RSG would be less
Financial Strategy 2015/16 to 2017/18
August 2014
36
Page 4 of 27
than £1million by 2018/19. Table 3 below shows the actual RSG for 2013/14 to
2014/15 along with the current future forecasts. The forecast assumes the
reductions will continue in line with those from the 2015/16 illustrative finance
settlement.
Table 3 - Revenue Support Grant
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
Finance
Finance
Finance
Settlement- Forecast Forecast Forecast
Settlement Settlement
Illustrative
£000
Revenue Support Grant
Forecast
Movement £000
Movement %
£000
4,235
£000
£000
£000
£000
3,331
2,294
1,583
1,092
754
(904)
-21%
(1,037)
-31%
(711)
-31%
(491)
-31%
(338)
-31%
Business Rates Retention
2.6.2
As mentioned earlier the business rates retention scheme has introduced a sharing
arrangement for business rate collected locally. Whilst the previous system of
formula funding was complex, the replacement system is equally complex although
in a different way. The main elements of the scheme are as follows:
a)
Business rates collected are split 50/50 between central and local shares.
The local share is then split 80/20 districts and County, so essentially
NNDC receive 40% of the business rates collected;
b)
The system includes a mechanism of tariffs and top ups to reflect local
spending needs, essentially districts pay a tariff and counties receive a topup;
c)
The business rates baseline is increased annually by RPI (in line with the
actual business rates payable) and the tariffs and top-ups are increased by
the same measure, RPI. The baseline allocation forms part of budget
finance settlement announcements;
d)
The baseline, tariffs and top-ups are expected to grow in line with RPI each
year, other revisions will be when the business rate system is reset (in
2020 as stipulated in the current government policy) or at the time of a
revaluation (due to come into effect in 2017)3;
e)
Local Authorities can keep up to 50% of the growth in business rate
income. They will however be required to pay a levy (to central government
outside any business rates pool) to ensure there is not disproportionate
growth within the overall system;
f)
The Levy is used to fund the „safety net‟ element of the system which
provides protection to those authorities that see their year-on-year income
fall by more than 7.5%, i.e. they are protected beyond the 7.5% reduction;
g)
Business rates pooling provides a mechanism for a business rate pool to
be established which allows for the levy payment that would have been
3
It is expected that as part of the re-valuation top-ups and tariffs will be recalculated in order that Local
Authorities do not lose or gain specifically due to revaluation.
Financial Strategy 2015/16 to 2017/18
August 2014
37
Page 5 of 27
paid to the government on growth, to be retained locally and used as
agreed by the authorities within the pool.
2.6.3
As part of the 2013 Autumn statement made in December 2013, the government
announced the following package of business rate relief measures to support
businesses:
a)
A 2% cap on the inflation increase for 2014/15 instead of the RPI increase
of 3.2%;
b)
Further extension (until 31 March 2015) of the small business rate relief
(doubled from 50% to 100%);
c)
A discount of £1,000 for shops, pubs and restaurants with a rateable value
below £50,000 for two years up to state aid limits, from 1 April 2014;
d)
£1,000 retail relief for occupied properties with a rateable value of £50,000
or less, that are wholly or mainly used as shops, restaurants, cafes and
drinking establishments; 4
e)
Relaxation of the small business rate relief for a second property allowing
continuation of the relief for 12 months;
f)
50% rates relief for 18 months - between 1 April 2014 and 31 March 2016 for businesses that move into retail premises which have been empty for a
year or more;
2.6.4
Local Authorities are being reimbursed for these measures via a section 31 grant,
although the grants are taken into account when determining the level of levy
payable each year on business rate growth each year.
2.6.5
Business rate information on reliefs and income received or expected is collected
on the National Non Domestic Rate (NNDR) returns submitted in January
(projection) and May (actual). The returns are reviewed as part of the annual audit
process.
2.6.6
Some of these reliefs were provided in 2013/14 and the impact of the section 31
grant guidance and implications were not fully known until the outturn position on
the business rates was completed as part of the NNDR return. The current budget
for 2014/15 has therefore assumed the level of baseline funding as included in the
finance settlement.
2.6.7
The business rates baseline funding and tariff is included in the finance settlement
which is announced annualy, these increase by inflation each year. Table 4 below
provides a summary of the local share, tariff and baseline funding level as included
in the settlement for the period 2013/14 to 2015/16, the future projections based on
annual RPI forecasts of 2.8% up 2018/19 have also been included.
4
Guidance issued for this can be found at - Retail Relief Guidance
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August 2014
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Table 4 - Baseline Funding Level (Retained Business Rates)
2013/14
2014/15
2015/16
2016/17
Finance
Finance
Finance
Settlement- Forecast
Settlement Settlement
Illustrative
£000
Business Rates Retained
(NNDC Local Share)
Less: Tariff
Baseline Funding Level
£000
£000
2018/19
Forecast
Forecast
£000
£000
9,313
9,496
9,757
10,030
10,311
10,599
(6,496)
(6,622)
(6,805)
(6,996)
(7,191)
(7,393)
2,817
2,873
2,952
3,034
3,120
3,206
56
79
82
86
85
1.95%
2.76%
2.8%
2.8%
2.8%
Movement £000
Movement %
£000
2017/18
2.6.8
As outlined at 2.5.7 the government funding measure of “Settlement Funding
Assessment” consist of RSG and baseline funding level (retained business rates).
Using the updated forecasts within tables 3 and 4, the SFA is forecast to reduce by
36% to just under £4million by 2018/19 compared to 2014/15.
2.6.9
The actual income retained from the business rates system is not confirmed until
the outturn return is submitted in May each year. It is then subject to external audit
review as part of the annual audit. The following table provides the outturn position
for 2013/14. As previously reported within the 2013/14 report to members in June,
the actual business rates retained in the year exceeded the budget as set in
February 2013. The updated financial forecasts has assumed that this level will
contunue for the period of the financial strategy.
Table 5 - NNDC Business rates Retention
2013/14
Settlement
Actual
Baseline
£000
£000
Baseline/Retained
9,313
9,329
Tariff
(6,496)
(6,496)
Levy
0
(435)
S31 Grants
0
792
Net BR Retained
2,818
3,190
2.6.10
Variance
£000
15
0
(435)
792
373
A Norfolk business rate pool was established in 2014/15 combining five districts
(including NNDC) and the County Council. Allocation of funding from the pool will
be determined by the authorities participating in the pool and the intention is for the
funding to be utilised to lever funding from Local Enterprise Partnership and
European funds, support infrastructure projects which will lead to outcomes
including job creation, business rate and housing growth, new business creation
and expansion.
Financial Strategy 2015/16 to 2017/18
August 2014
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2.7
New Homes Bonus
2.7.1
The New Homes Bonus (NHB) was introduced in 2011/12 to incentivise and
reward councils and communities who wished to build new homes in their areas.
The NHB is paid each year for six years and is based on growth in housing unit
numbers and reduction in long term empty properties. In the main, the bonus is
funded from the same control total as the revenue support grant and is paid as a
non “ring fenced” grant to individual councils.
2.7.2
The grant is payable for six years (paid under section 31 of the Local Government
Act 2003) and is calculated by multiplying the national average council tax5 by the
net additional homes plus an additional supplement of £350 per affordable
dwelling. The payment of NHB is split between local authority tiers; 80% to the
lower tier and 20% to the upper tier.
2.7.3
Annual allocations are made as part of the finance settlement announcements and
are based on the Council Tax Base returns that are submitted annually to the
Government (covering the twelve-month period October to September). Once a
new home is recorded on the Council Tax Base return as being eligible for Council
Tax (including those eligible for discounts), it counts towards NHB. The calculation
of the bonus does not take into account planning permissions or any other
elements of the planning processes. Statistics on the gross affordable housing
supply are used to calculate the affordable homes enhancement.
2.7.4
Allocations take into account the net growth (i.e. taking account of any demolitions
and increase or reduction in empty properties) for the period October to September
each year.
2.7.5
Currently 80% of the annual NHB is included in the Council‟s base budget to
support funding service provision and in part the loss of core funding by the scaling
back of the revenue support grant.
2.7.6
As part of the Spending Review 2013 the Government did consult on proposals to
ring fence between 19% and 35% of the NHB from 2015/16 onwards to be
allocated to the Local Enterprise Partnerships regionally. Following responses to
the consultation this was not implemented outside of London and therefore the
current projections still assume the continuation of the NHB in its current form. The
future of the NHB beyond the next election still presents a risk in terms of changes
to the allocation and distribution methods. Currently the NHB scheme makes a
payment for six years, for example 2011/12 (year 1) amount of £349,762 is paid
annually until 2016/17. This is illustrated in table 6 below.
Table 6 - New Homes Bonus Allocations to date
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19
2011/12
Year 1
Year 2
Year 3
Year 4
£000
£000
£000
£000
350
2012/13
£000
£000
£000
£000
350
350
350
350
262
262
262
262
262
262
118
94
94
94
94
94
588
572
562
562
562
562
2,820
2014/15
350
£000
350
2013/14
Total
Total
Year 5* Year 6* Year 7* Year 8*
612
730
1,278
1,268
1,268
2,100
918
1,572
656
7,080
* 2015/16 onwards allocations to be confirmed
5
Amount for 2013/14 is £1,444
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August 2014
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2.7.7
The forecast for new property growth is based on the housing trajectory
information, however, it is recognised that this information includes elements that
are not taken into account in the Council Tax Base return and therefore sensitivity
has been applied to the trajectory for the financial forecasts. The forecast in
housing growth is also informed by recent figures from the Council Tax Base
Return that show an increase in properties (eligible for council tax purposes) in the
year and a reduction in empty properties. Table 7 below provides a summary of the
assumptions used for the NHB in the updated financial forecast.
Table 7 - Forecast Council Tax Base Movement (Band D Equivalent)
2.7.8
NHB Allocation
New
Council tax Base Data
Property
Return Period
Growth
Reduction
in Empty
Properties
Net
Property
Movement
2015/16
Oct 2013 to Sept 2014
180
30
210
2016/17
Oct 2014 to Sept 2015
180
20
200
2017/18
Oct 2015 to Sept 2016
180
20
200
2018/19
Oct 2016 to Sept 2017
180
20
200
Table 8 below provides a summary of the current forecasts of NHB for NNDC.
Table 8 - NNDC NHB Forecast
NNDC Forecast
Allocation
Used in base
Budget
NHB Earmarked
£000
£000
£000
2014/15 (actual)
1,277
1,022
255
2015/16
1,517
1,213
304
2016/17
1,758
1,406
352
2017/18
1,649
1,319
330
2018/19
1,628
1,302
326
NHB Allocation Year
Note – this assumes calculation of the NHB stays the same as in previous years,
is based on the net property movement as included in table 6 and assumes an
affordable housing premium based on delivery of 35 affordable units per annum.
2.7.9
2.8
2.8.1
Nationally up to and including the 2014/15 Local Government Finance Settlement,
funding in the region of £2.2 billion has been allocated through the New Homes
Bonus scheme. To date, NNDC has received just under £3 million and therefore
this still represents a significant funding resource.
Local Council Tax Support (LCTS)
The LCTS scheme was implemented in April 2013 as a replacement to Council
Tax Benefit as part of a national funding reduction programme and to encourage
people to work. Previously the scheme was 100% funded through subsidy paid to
the Council from the Department for Work and Pensions (DWP). From April 2013
each billing authority was given the discretion to set their own scheme, although at
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August 2014
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Page 9 of 27
the outset the government did stipulate that the scheme would not change the
support for low income pensioners, i.e. they would receive the same level of
support as they did under the system of Council Tax Benefit.
2.8.2
Funding for LCTS is no longer received as a separate subsidy grant but is now
within the overall Local Government Funding system as non ring-fenced funding
within revenue support grant and baseline funding level.
2.8.3
For 2014/15 the local scheme (for North Norfolk) has remained the same as
2013/14. The current scheme means that those that were previously entitled to
100% council tax benefit would be required to pay 8.5%.
2.8.4
The Council Tax Support Working Group met in July to consider the options for the
LCTS for 2015/16. The group recommended that the current scheme remain for
2015/16 and, therefore, this forms a recommendation in the covering report.
2.8.5
The funding for LCTS includes an element in relation to parishes. In year one of
the new scheme all parish and town councils were offered a grant as part of setting
their precept for the coming year to cover the cost of the new scheme that fell to
them6. In 2014/15, parish and town councils (that accepted the grant in 2013/14)
were offered a grant. The value of the grant had been reduced by 16% in line with
the forecast funding reductions facing the Council. The current financial projections
assumed further reductions in grants offered to the parish and town councils for the
duration of the strategy, in line with the forecast funding reductions. This report is
recommending that this same method is adopted for 2015/16, offering the
(reduced) grant to those that accepted the grant in 2014/15 which they could take
into account in calculating their Council Tax Requirement.
6
The impact that LCTS has on Council Tax is a reduced Council Tax Base, i.e. similar to the impact of Council Tax
Discounts, that is fewer band D equivalent properties. For the major preceptors (Districts, County and Police)
this reduces the call on the collection fund (i.e. income from Council Tax), for parishes there are fewer band d
equivalents to share the parish precept.
Financial Strategy 2015/16 to 2017/18
August 2014
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3.
RESOURCES
3.1
The Council‟s net current revenue budget for 2014/15 (excluding Parish and Town
Council Precepts) is £12.5 million and is summarised in table 9 below. Internal
resources are from Council Tax and other income, these two areas are discussed in
further detail below.
Table 9 - NNDC Budget - Funding Sources
2014/15 Budget
£000
Funding Source
Council Tax – District
5,205
Retained Business Rates
2,873
Revenue Support Grant
3,331
Council Tax Freeze (2014/15)
58
New Homes Bonus (net of earmarking)
1,022
Total
3.2
12,489
Council Tax
3.2.1
Since 2011/12 the Council has accepted the council tax freeze grant, thereby
maintaing the Band D District Council tax charge of £138.87. Council tax freeze
funding for 2014/15 is £57,969 and for 2015/16 (assuming a freeze) would equate
to £58,177.
3.2.2
As part of the annual Local Government Finance Settlement, the government make
announcements on referendums relating to Council Tax increases (Principles).
These require that over a threshold an authority would be required to hold a
referendum in order to increase Council Tax. For 2014/15 the amount of council
tax increase deemed to be excessive was 2% or more. As a guide a 2% increase
in NNDC‟s council tax would generate income of just over £102,000.
3.2.3
The Council tax base is an assessment of the number of dwellings expressed in
Band D equivalents; it allows for non-collection, discounts and new property growth
and for 2014/15 the approved Council tax base is 36,769. This influences the level
of council tax income. Table 10 below shows the current forecast of Council Tax
income for the period 2015/16 to 2018/19. This currently assumes a freeze in
council tax for the period but allows for an increase in the council tax base from
property growth in line with the forecast used for the New Homes Bonus
assumptions. Changes to Council Tax discounts will influence the Council Tax
Base and therefore the level of income generated through Council Tax, no
changes to discounts have been assumed in the current forecast.
Financial Strategy 2015/16 to 2017/18
August 2014
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Table 10 - Council Tax Income
Council Tax Income
Increase/(Decrease) in
Yield
2014/15
Actual
2015/16
Forecast
2016/17
Forecast
2017/18
Forecast
2018/19
Forecast
£000
£000
£000
£000
£000
5,205
5,164
5,190
5,215
5,240
n/a
(41)
25
25
25
Note the reduction in 2015/16 is in relation to the revised forecast of the council tax
surplus as updated by the 2013/14 outturn.
3.2.4
3.3
Currently the County Council return half of the discretionary element of their share
of council tax income from second homes to the districts for community projects.
This is currently earmarked for community related expenditure, ie the Big Society
Grant scheme. The current charge for second homes is 95%; this is made up of a
mandatory 50% charge and a 45% discretionary element. The 2014/15 budget
includes £934,600 from the County. Earlier in the year there was mention of the
County withdrawing this funding from districts. Whilst the funding has been
confirmed for 2014/15 the return of the funds to the districts forms part of the
County Council‟s budget setting proposals and is therefore agreed annually.
Fees, Charges and Other Income
3.3.1
The Council has a number of limited sources of income available, for example fees
and charges for services and income from investments.
3.3.2
Some of the charges for services are set by government, for example some licence
fees, others are set locally to break even over a three year period and others set to
fund the provision of wider Council services.
3.3.3
A number of the more significant income budgets are subject to factors which the
Council has limited control over, for example some demand led services including
car parking, planning and building control fees and waste and recycling credits
which are influenced by both the level of recycling achieved as a district and the
market for recycled materials. These areas are highlighted within the annual
budget setting report and the risk of not achieving the budgeted figures is reflected
in the assessment of the level of general reserve7.
3.3.4
Investment income continues to be an important source of income to the Council.
This is generated from investment of the Council‟s reserves and surplus funds. The
2014/15 budget is based on an available investment balance of £22.2 million and is
currently forecast to deliver £363,710 for 2014/15. This is forecast to be maintained
over the length of the strategy based on the current treasury management strategy.
Significant changes to the strategy moving forward for example that would see a
reduction in the available balance for investment would need to be considered as
part of any business cases.
7
“Policy Framework for the Earmarked Reserves and Assessing the Optimum level of the General Reserve for the
period 2014/15 to 2017/18” Full Council February 2014 Agenda
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4.
FINANCIAL FORECAST UPDATE
4.1
The 2014/15 budget was approved in February 2014, at the same time that the forward
financial projections for the following three years to 2017/18 were also reported. The
projections were based on the then current expenditure and income plans and were
forecasting future funding gaps of £239,000 in 2015/16, increasing to £1.327 million in
2016/17 and up to £2.145 million by 2017/18. This section of the MTFS provides an
update to these financial forecasts. The update has been informed by the outturn
position for 2013/14, revised income forecasts for a number of the more significant
income areas, RSG and business rates retention.
4.2
The Council continues to adopt a cautious approach to its expenditure level by keeping
this within the financing constraints and to do so, by maintaining a corporate savings
programme which aligns its spending plans with the available resources at its disposal.
Significant savings or additional income have been realised over the course of this
programme through changes in staffing, building costs and information technology.
4.3
There continues to be a number of national changes for which timescales have
changed. The most significant is in relation to the impact of the Welfare Reform Act
2012 and the move to universal credits, with the administration of Housing Benefits no
longer being undertaken by Local Authorities but transferring to the Department for
Work and Pensions. The precise consequence in terms of staffing and financial impact
through potentially redundant computer systems is not yet known, nor are the
timescales for the further roll out. Therefore, this strategy assumes that the status quo
position will exist until there are firm proposals on which to base the detailed
calculations of the likely impact on the Council.
4.4
In the Autumn Statement in December 2013, the Chancellor of the Exchequer
announced the formation of a Single Fraud Investigation Service (SFIS) to commence
in 2014. SFIS will bring together all welfare benefit fraud investigations currently
undertaken by DWP, HMRC and Local Authorities. Timescales for this have been
announced and NNDC is due to transfer to SFIS in April 2015. The detail of the
transfer is not fully known, however an element of the Benefit Administration Subsidy
grant will be withdrawn from Local Authorities at the time of transfer and therefore for
the purpose of the strategy and updated forecast an overall „nil‟ impact has been
assumed on the basis that costs transferred will be matched by reduction in grant.
4.5
The financial forecast has been updated for a number of service variances that have
been highlighted to date or where revised forecasts based on the 2013/14 outturn
position are necessary. These include the following:
4.5.1
Car Parking Income - revisions to the forecast income from car parking have been
made taking into account the approved removal of the evening charges and also a
slightly improved forecast based on the 2013/14 outturn position and the actuals to
date in the current year (£90,000 net reduction in income);
4.5.2
Land Charges - Earlier in the year the Land Registry issued a consultation about
their proposal to take over the statutory Local Land Charges service. The proposal
forms part of the Infrastructure Bill which is currently being debated in the House of
Lords. The estimated timetable for this gaining Royal Assent is Spring 2015 with
potential phased implementation over two to three years from 2016. The Council
currently administer the service and receive income from fees for certain parts of
the service. At the moment it is envisaged that the income will no longer be
receivable locally although some of the functions (i.e. costs) will still need to be
retained. Therefore for the purpose of the updated strategy a full year impact of
£150,000 per annum has been included in the forecast from 2016/17 with some
transition impact in 2015/16.
4.5.3
Income – The forecasts assume additional income of £50,000 per annum from
further „selling‟ of legal services through Eastlaw and partnering opportunities.
Financial Strategy 2015/16 to 2017/18
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4.5.4
Establishment Savings and Employee Budgets – A number of posts within the
establishment have been or have become vacant in the year. Where applicable,
some have been replaced or opportunities taken to replace in a different way,
Whilst the forecast does assume a net saving ongoing, it is important to ensure
that these savings are not duplicated as part of the business transformation
savings process. In addition, the financial impact of the legislative changes which
saw the introduction of auto enrolment into work placed pensions from April 2014
has not been as great as originally anticipated. The budget that was set in
February 2014 assumed that all those eligible and not currently enrolled in the
pension scheme would „opt in‟ and growth of £112,000 was included in the budget
from 2014/15 onwards. Based on the first four months of the current financial year
fewer than 15% of those eligible have opted to enrol and therefore costs of
£80,000 has been removed from the budget from 2014/15 onwards.
4.5.5
One-offs - A review has been undertaken of a number of budget headings which
have historically underspent or been vired for a different purpose. Where a budget
is included in the base budget but is not spent annually or only in respect of
specific projects, requests can be made to fund these type of costs from reserves
as opposed to budgeting annually and consequently underspending.
4.5.6
Investment Income – No allowance had been made in the revenue budget for the
investment return from the Local Investment Strategy, the forecast has now been
updated to reflect this along with the current investment return forecast.
4.5.7
Other – There are also a number of smaller variances within the services that are
forecast to impact on future years, the total of these is an ongoing reduction in
spend of £23,000.
4.5.8
Business Rates – As mentioned previously, the 2013/14 outturn position in relation
to retained business rates showed a favourable variance and the net budgeted
amount was exceeded. The forecasts assume that this position is maintained for
the period of the financial projections.
4.5.9
Council Tax – As detailed within table 10, there has been a revision to the forecast
of the income from Council Tax resulting in a small reduction in the amount now
forecast.
4.6
The total of the service budget revisions are net reductions in expenditure of £82,000,
reducing to £5,000 in the following two years. The most significant revision to the
forecast is in relation to the revised forecast for business rates which is currently
forecast to return an additional £300,000 per annum above the level previously
identified.
4.7
Table 11 provides a summary of the revised position taking into account all the factors
identified above.
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August 2014
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Table 11 - Updated Financial Forecast
2015/16
2016/17
2017/18
£000
£000
£000
Forecast Gap February 2014
239
1,327
2,145
Service Pressures/(Savings)
(82)
(5)
(5)
Revised Funding Forecasts:
Settlement Funding Assessment
Retained Business Rates (net of Levy)
Council Tax
Revised Forecast Budget Gap
4.8
0
(190)
(300)
(300)
(300)
(300)
12
15
20
(131)
847
1,560
The revised financial projections are now forecasting a surplus in 2015/16, this will be
in addition to a forecast surplus for the current financial year which is estimated to be
just under £400,000. The forecast surplus can therefore be used to mitigate the impact
of the future funding gaps and to allow for the implementation of savings and
efficiencies proposals. The main reason for the reduction in the size of the forecast
funding gap is due to the updated position in relation to the business rates retention.
Financial Strategy 2015/16 to 2017/18
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5.
RESERVES
5.1
As part of the annual budget and council tax setting process the Chief Financial Officer
must report on the adequacy of the reserves that the Authority holds. This is informed
by the Policy Framework for Reserves which is reviewed and updated alongside
approving the budget each year8.
5.2
In agreeing the budget for 2014/15 the minimum balance in the general reserve was
recommended to be £1.75 million. At the time of setting the budget the actual balance
was forecast to be less than this level. This was due to the impact of the Storm and
Tidal Surge that had occurred in December 2013 and the implications of the repair
costs. Further commentary on this is included below.
5.3
The Council holds a number of „useable‟ reserves both for revenue and capital
purposes and they generally fall within one of the following three categories, each as
discussed in the following sections:
5.4
5.5

General Reserve

Earmarked Reserves

Capital Receipts Reserve
The General Reserve is held for two main purposes:

to provide a working balance to help cushion the impact of uneven cashflows
and avoid temporary borrowing

a contingency to help cushion the impact of unexpected events or emergencies
As part of setting the budget each year the adequacy of all reserves is assessed along
with the optimum level of general reserve that an authority should hold. The optimum
level of the general reserve takes into account a risk assessment of the budget and the
context within which it has been prepared including the following factors:









sensitivity to pay and price inflation;
sensitivity to fluctuations in interest rates;
the level of savings that have been factored into the budget and the risk they will
not be delivered as anticipated, both level and timing;
potential legal claims where earmarked funds have not been allocated;
emergencies and other unknowns;
impact of demand led pressures which impact on both income and expenditure;
future funding fluctuations;
level of earmarked reserves held;
a level of reserve that is within 5% to 10% of net expenditure.
5.6
A financial assessment will be made of all the factors to arrive at a recommended level
for the general reserve. For 2014/15, the recommended balance was £1.75million.
5.7
The general reserve balance at 1 April 2014 was £1.86 million, although the 2014/15
budget assumed that unfunded storm damage repair costs would need to be funded
from the general reserve which will reduce this balance by 31 March 2014. The
following table provides an update on the general reserve for the 2014/15 financial
year.
8
Feb 2014 - Full Council Agenda – Agenda Item No. 11, Appendix B.
Financial Strategy 2015/16 to 2017/18
August 2014
48
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Table 12 - General Reserve
£
Balance 1 April 2014
1,923,146
Budgeted Movements:
2014/15 Budgeted Surplus
551,613
Storm Recovery Costs
(764,558)
Forecast Balance 31 March 2015
1,710,201
Note - If the 2014/15 Environment Agency claim of £276,000 for Coastal Repairs is
approved, the storm recovery costs will reduce to £488,558 and the forecast
balance will increase to £1,986,201.
5.8
It is recognised that the current forecast within the general reserve is slightly below the
recommended balance of £1.75 million, although as mentioned in the table above this
position could be changed pending the approval by the Environment Agency of the
2014/15 claim and also updated as part of the in-year variances identified in section 4.
5.9
Earmarked Reserves provide a means of building up funds to meet known or
predicted liabilities and are typically used to set aside sums for major schemes, such
as capital developments or asset purchases, or to fund restructurings. Whilst
earmarked in nature until the amounts are budgeted to be taken from the reserves,
commitments have not yet been made from these reserves. Earmarked reserves can
also be held for service projects and business units which have been established from
surpluses to cover potential losses in future years, or to finance capital expenditure.
Earmarked reserves also provide a mechanism to carry forward underspends at the
year-end for use in the following financial year where no budget exists.
5.10
For each earmarked reserve a number of principles should be established:

the reasons for or the purpose of the reserve

how and when the reserve can be used – short to long term

procedures for the reserve‟s management and control.
5.11
The establishment and use of earmarked reserves is reviewed at the time of budget
setting, throughout the year as part of the budget monitoring processes and also as
part of the year-end reporting. Review of earmarked reserves throughout the year
takes into account the continuing relevance and adequacy of the reserve and also the
level of the general reserve.
5.12
An updated reserves statement is included at Appendix A. This reflects the latest
position for the use of all reserves in the current and future financial years where
known. There is still some uncertainty around the exact timing of the use of a number
of the reserves, for which some are held as a contingency to mitigate a potential
liability although the timing and likelihood of this is depended upon future events.
5.13
The following provides a commentary on some of the more significant reserves that the
Council currently holds and maintains:

Capital Projects Reserve – The majority of this reserve represents VAT shelter receipts
that are received as revenue receipts but earmarked to fund capital schemes.

Benefits - The Benefits reserve is held to mitigate any claw back by the Department for
Work and Pension following audited subsidy claim forms. The amount of subsidy paid
out annually by the Council is in the region of £28 million and therefore even a small
error rate on a claim could have significant financial implications. The audit of the
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August 2014
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2013/14 subsidy is yet to be finalised and should there be any recovery of subsidy
payable the reserve will mitigate the impact. The reserve also holds any previous years
underspends in respect of the service where it was approved to carry them forward.

Big Society Fund - This reserve was established as part of the councils approach to
Localism and holds the balance from the County Council‟s share of second homes
council tax that is returned to the districts9. This is currently being used to fund the Big
Society grants and enabling fund. Contributions to and from this reserve are
dependent upon the sharing arrangement with the County Council and are determined
annually as part of setting the budget.

New Homes Bonus - The New Homes Bonus (NHB) was introduced in 2011/12 as an
incentive and reward mechanism to promote housing growth. From 2014/15 80% of
the NHB has been included in the base budget with the balance being transferred to
the earmarked reserve to be used for one-off costs that promote or facilitate future
growth.

Restructuring/Invest to Save – This reserve is held to fund one-off/upfront costs for
projects that will deliver on-going savings. Examples include, officer restructurings
where one-off redundancy or pension strain costs might be payable but the business
case delivers an on-going revenue saving within two to five years, or for investment in
IT hardware, software or equipment or one-off costs which will deliver savings through
more efficient ways of working for example the programme of business transformation
projects.

Broadband – This reserve represents the £1million that has been approved to be
reallocated from the Big Society Fund and NHB reserves for a contribution towards
matched funding for the Norfolk‟s Better Broadband for Norfolk project. The release of
these funds will be subject to a recommendation to Council as per the original report
that was made to Members in July 201410.
5.14
All reserves general and earmarked will be reviewed over the coming months as part
of setting the detailed budgets for 2015/16, with a view that where commitments have
not been identified and funds or reserve balances are no longer required these are reallocated to specific reserves to address the other requirements as applicable
5.15
The Council also holds a Capital Receipts Reserve, this includes the balance of
receipts generated from asset disposals. Capital receipts are generated when an asset
is disposed of and can only be used to fund expenditure of a capital nature, i.e. not for
on-going revenue expenditure. The balance of capital receipts is used to fund the
current approved capital programme. The balance of capital receipts at 31 March 2014
was £6.269 million.
5.16
Details of the current capital programme that are being financed from capital receipts is
included in section 6 of the financial strategy document which highlights the reducing
available balance within this reserve over the next three years.
9
The amount returned to districts by County, represents the 50% of the discretionary element of the County’s
Council Tax income for second homes. Total charge for a second home is 95% - 50% mandatory and 45%
discretionary.
10
NNDC July 2014 Cabinet - Item 10
Financial Strategy 2015/16 to 2017/18
August 2014
50
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6.
CAPITAL
6.1
The Capital programme is updated regularly throughout the year as part of the budget
monitoring reports. A copy of the current capital programme is included as an appendix
to the 2014/15 period 4 budget monitoring report within the September Cabinet
Agenda and therefore has not been reproduced within this document.
6.2
The following tables provide a summary of the current approved capital programme for
2014/15 plus the current forecasts for 2015/16 and 2016/17 along with a breakdown of
relevant financing.
Table 13 - Current Approved Capital Programme
2014/15
Updated
Budget
2015/16 2016/17
Forecast Forecast
£
Jobs and the Local Economy
Housing and Infrastructure
Coast, Countryside and Built Heritage
£
214
0
0
5,394
773
0
10,368
220
2,151
597
0
0
Localism
Delivering the Vision
Total Capital Expenditure
£
694
20
0
17,267
1,013
2,151
10,164
663
1,844
Financing:
Non NNDC
NNDC
Total Capital Financing
6,149
350
307
16,313
1,013
2,151
Table 14 – Capital Programme Financing
2014/15
Updated
Budget
2015/16 2016/17
Forecast Forecast
£
9,351
0
£
1,844
Defra Grant
339
220
0
Disabled Facilities Grant
466
443
0
8
0
0
599
0
0
4
0
0
5,546
350
307
954
0
0
17,267
1,013
2,151
Environment Agency Grant
Other Grants and Contributions
Capital Projects Reserve *
Other Reserves *
Capital Receipts *
Total Financing
£
* These are NNDC capital financing resources
6.3
The current capital programme is funded from the following sources of finance:


Capital Receipts – generated from asset disposals and preserved right to buy‟s
(both new and existing within the capital receipts reserve)
Grants and contributions received from external sources including third parties
and government
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


Revenue – making a revenue contribution to capital
VAT Shelter Receipts (received as a revenue receipt and transferred to the
capital projects reserve) – this arrangement is forecast to end in 2014/15 when
the value of works as detailed within the stock transfer agreement has been
reached.
Earmarked reserves, for example the capital projects reserves.
6.4
Another source of funding for capital expenditure is prudential borrowing. Prudential
borrowing to fund capital expenditure can only be undertaken when an authority can
demonstrate the need to borrow. The need to undertake prudential borrowing is
demonstrated through its Capital Financing Requirement which is driven by the
balance sheet of the authority and takes into account reserves (including general and
earmarked). Financing costs of the borrowing would be a charge to the revenue
account and therefore any decision to undertake external borrowing would need to
take account of the debt costs including interest and the Minimum Revenue Provision
(MRP)11. As internal capital resources are utilised the Council will need to consider
looking at alternative capital financing options including borrowing, these will need to
be considered as part of the overall business case as proposals for capital expenditure
are considered for approval.
6.5
After taking into account the planned spend within the current capital programme for
the period 2014/15 to 2016/17 and the anticipated resources, i.e. new capital
resources12 for the same period, there is currently an unallocated balance of just over
£2.3 million. Although this does include £1.457 million within the capital projects
reserve which can be a revenue or capital resource. This is illustrated in the following
table.
Table 15 - Capital Resources
Balance at 31/3/14
Capital
Receipts
Capital
Projects
Reserve
Total
£000
6,269
£000
1,881
£000
8,150
264
175
439
New Receipts 2014/15
(5,546)
Capital Financing 2014/15
New Receipts 2015/16
Capital Financing 2015/16
New Receipts 2016/17
0
264
(350)
0
(350)
264
0
264
858
Estimated Balance at 31/3/17
(6,145)
264
(307)
Capital Financing 2016/17
(599)
0
1,457
(307)
2,315
11
MRP is the minimum amount which must be charged to the revenue account each year and set aside as
provision for repaying external loans.
12
New Capital Resources – Asset disposals, preserved right to buy and VAT shelter receipts.
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7.
FINANCIAL STRATEGY AND PLANNING PRIORITIES/AREAS OF FOCUS
7.1
The preceding sections have set out the revised financial forecast for the period
2015/16 to 2017/18. A balanced position is currently forecast for the short term, i.e. for
2015/16, however there are still funding shortfalls projected for the medium to longer
term. Some of this can be mitigated by the one-off use of prior year surpluses,
however a medium term strategy to deliver a sustainable financial position moving
forward is required.
7.2
The Council‟s strategy therefore is to maximise income, taking advantage of new
funding streams. Particularly those that offer financial incentives which at the same
time deliver further efficiencies, by transforming the way in which we currently
undertake our business and provide services, taking advantage of technological
changes.
7.3
Each of the elements of the strategy is explained further in the sections below.
7.4
Income Maximisation
7.4.1 New Homes - Under the current allocation method of New Homes Bonus (NHB) there
is a direct financial benefit to the Council from growth in homes through the NHB
funding and also through increasing the Council Tax Base and additional income
generated from Council Tax. Whilst new housing growth will have an impact on the
demand for local services, there will still be a net gain in terms of overall income
delivery.
7.4.2 Business Rates Growth – As highlighted earlier in the report growing the business
rates base will have a direct impact on the level of business rates income retained
locally. Equally, maintaining existing business rates remains a priority in that decline in
business rates will reduce the baseline and therefore the amount available for local
retention.
7.4.3 Asset Commercialisation – The Council currently holds assets with a balance sheet
value of £47.5 million as at 31 March 2014. The assets are held for different purposes,
for example service delivery, investment properties and community assets. The asset
management plan (AMP) was reported to members earlier in the year and outlined the
strategic framework within which the Council manages it‟s property assets for the
period 2014/15 to 2016/17. The document included the following key objectives for the
Council‟s asset portfolio:



Objective 1 – Plan and manage the property assets as a corporate resource;
Objective 2 – To provide income to support budget planning and service delivery;
Objective 3 – To provide fit for purpose property in the right place, achieve value
for money and be flexible to meet service requirements, both corporately and for
communities, now and in the future.
An action plan has been developed and is in progress in order to deliver these
objectives. This includes identifying assets that have the potential for redevelopments
or maximising returns without any adverse impact on service delivery. A full business
case would be required for any proposals taking into account the upfront costs and
future revenue costs and savings.
7.4.4
Shared Services/Selling Services – Creating efficiencies through shared services
continues to be a priority for central government in that up-front funding through their
transformation programme has been made available to Local Authorities through a
bidding process. Identifying such opportunities must therefore continue at a local level,
ensuring that realistic and deliverable benefits can be achieved. The wider selling of
services via Coastshare eg legal services will remain an option.
7.4.5
Property Investment – Opportunities for investment in properties whether direct or
indirect can be considered to achieve either an income stream or improved returns on
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investment. In a similar way to the asset commercialisation, any direct investment
would be subject to a robust business case and the full implications in terms of
borrowing costs if required would need to be taken into account. Indirect property
investments can also be considered, i.e. similar to the current £5 million pooled
property investment. Again detailed consideration of this will need to take account of
whether the investment is a revenue/treasury management transaction or a capital
investment. This investment strategy will be further developed during 2014/15.
7.5
Efficiency Savings
7.5.1
Other Efficiencies – Through the regular budget monitoring process and annual budget
process service efficiencies and savings will be considered where there is little or no
impact on service delivery. However with the robust challenge and consideration of
savings proposals that has taken place each year, this does reduce the scope within
existing budgets to identify further savings and additional income opportunities.
7.5.2
Business Transformation – The overall programme as approved last year is anticipated
to deliver savings from the implementation of new technology and changes in service
access and delivery. The project is in progress and the business cases for the
telephony and web infrastructure projects have been approved. As further business
cases are produced and progressed the corporate project will identify and deliver
benefits to service delivery and cashable savings. The longer term timescales for the
project anticipate savings of £144,000 will be delivered from 2016/17, increasing to
£271,000 from 2017/18.
7.6
Use of Reserves – Invest to Save
7.6.1
Use of reserves to balance a budget provides only a short term solution as the funds
can only be used once. They can however be used to smooth the impact of funding
gaps over the short to medium term and to allow for planning and implementing
projects and work streams that will deliver a longer term financial benefit through
reduced costs or additional income.
7.6.2
Similarly, reserves can be used to fund one-off costs for projects that will deliver a
longer-term benefit. For example the use of the restructuring and invest to save
reserve to fund one-off officer restructure costs, where a restructuring will deliver a
longer term saving for a service and the use of this reserve for some of the
implementation and project costs for the business transformation programme that will
deliver future savings.
7.6.3
The use of the reserves in this way will be considered as part of the full business case
for individual project proposals, taking into account the payback period of the project
along with indirect financial implications, for example, reduced balance available for
investment and the associated loss of investment income.
Financial Strategy 2015/16 to 2017/18
August 2014
54
Page 22 of 27
7.7
Updated Financial Forecast
7.7.1
The following table summarises the updated financial position allowing for the current
forecast of savings from the business transformation programme as shown in
paragraph 7.5.2.
Table 16 - Updated Financial Forecast
2015/16
£000
Forecast Budget Gap (Section 4, Table 11 )
Business Transformation
Forecast Budget Gap
2016/17
£000
2017/18
£000
(131)
847
1,560
0
(144)
(271)
(131)
703
1,289
7.8 Based on the latest financial projections there is an anticipated budget gap of £703,000
in 2016/17 increasing to £1.29 million in 2017/18. This is before any use of reserves in
the short term to allow for the implementation of other work streams as identified above.
7.9 Overall the Council is in a good position to meet future challenges, and through the
prudent management of reserves to be able to “invest” to make further savings or
generate additional income.
Financial Strategy 2015/16 to 2017/18
August 2014
55
Page 23 of 27
8
RISK
8.7 The Council works within the constraints of central government funding allocations and
its control over council tax increases through the capping and referendum principles. The
continuing downward pressure on external resources will, over time, constrain the level of
service delivery that the Council is able to provide.
8.8 The legal requirement to set an annual budget that balances, ensures care is taken in
preparing figures and proposing changes to service levels which may require upfront
investment.
8.9 The Council continues to face a number of risks in terms of future funding and delivery of
services. A number of these risks have been referred to within the main body of the
Financial Strategy. The detail of the 2015/16 budget will be completed over the coming
months in preparation of the Budget and Council Tax setting report which will be
presented for approval in February 2015. The work on the detailed budgets will be based
on the latest local and national information and will be informed by the provisional and
later final budget settlement announcements.
8.10 The main risks that the authority continue to face are outlined below:
8.10.1 Future Funding and Business Rates – As referred to in the earlier sections the funding
support from central government continues to be under pressure with a greater shift
from RSG to retained business rates. The emphasis on retaining funds from business
rates locally provides further risks to Local Authorities in that there are a number of
inherent risks which will now be borne locally rather than across a national pool,
including, the status of properties changing for example schools changing to
academies and also business premises becoming empty. In addition, the impact of
business rates appeals will also have an impact on the level of retained business rates
and whilst the scheme does provide incentive for promoting and delivering growth in
local economies, the impact of appeals and business decline can have a negative
impact. Further measures for example extension of reliefs announced within the
Autumn Statement, continue to present a risk to Local Authorities, albeit some of this
risk is mitigated by the section 31 grant provided to Local Authorities. Growth and/or
decline in businesses will have a direct impact on the funding at a local level. As part of
the 2013/14 outturn report an earmarked reserve was established for business rates,
this would be available to mitigate the impact of appeals above the level assumed
within the business rates retention system.
8.10.2 Savings – The council is continuing to deliver against a programme of savings and
additional income. Delivery of the savings at the levels budgeted is vital to delivery of
the overall budget and achieving a sustainable future financial position. 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. Assumptions have been made in the updated
financial forecast around the level of savings to be achieved from the business
transformation programme. Identifying and delivery of these will be critical to
supporting a sustainable budget moving forward.
8.10.3 Income – Income from a number of demand led services remains a financial risk that
cannot be fully influenced by the Council. Whilst annual estimates are pulled together
under a robust methodology taking into account current performance, previous actuals
and knowledge of the service delivery, income levels need to be closely monitored, for
example for planning and car park income. Fluctuations in income can be mitigated by
the use of reserves and this is a factor that is taken into account as part of the budget
setting process when determining the recommended level of general reserve.
8.10.4 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
Financial Strategy 2015/16 to 2017/18
August 2014
56
Page 24 of 27
to be weighed on a daily basis in line with the treasury management strategy. Sound
principles underpinned by professional guidance from treasury management advisors
allows for a cautious but not complacent approach to investment returns. These
returns still provide support to the revenue budget and changes in economic
conditions, money markets and the stock market, as well as the government‟s credit
rating can all impact on these returns.
8.10.5 New Homes Bonus – Since 2014/15 80% of the NHB has been taken into the base
budget funding. There are risks associated with this funding source at a local and
national level. Risks at a local level are the continued delivery of housing growth and
also reductions in the number of long term empty properties. Whilst the growth in new
homes can be informed by the housing trajectory figures, the fluctuations in the
number of long term empty properties can negatively (should the number increase)
impact on the allocation of NHB. This is an area therefore that continues to be
monitored closely with proactive work with homeowners and landlords to bring the
properties back into use. The national risk around the future of the NHB is more
significant should there be a change in the allocation method or removal of the scheme
following the general election. Any change should be subject to a consultation process
similar to that in 2013 on the proposal for top-slicing the bonus from 2014/15, whilst
that proposal was not implemented outside of London authorities, there still remains a
risk should there be any change to the scheme of allocating funding in this way.
8.10.6 Second Homes – The return of an element of the second homes council tax from the
County to the districts is subject to annual approval by the County. This is returned to
the districts for community related expenditure and has been used to fund the
Council‟s Big Society Fund (BSF) Grant scheme and related expenditure. The use of
these funds will be part of the annual budget setting process and will be informed by
any proposal by the County for changes to the distribution to districts.
8.10.7 Service Delivery Changes – The Financial Strategy has highlighted two changes to
service delivery that are due to be implemented during the period of the strategy.
These are in relation to Fraud and Land Charges. The updated forecast assumes no
residual financial implications to the Council in relation to the transfer of the fraud
service to SFIS which is due in April 2015, i.e. funding reductions will be offset by cost
reductions, should this not be the case then there is a potential for a residual financial
impact. In addition the forecast assumes a net residual impact of the transfer of the
land charges function to the land registry of £150,000. Further updates on both of
these will be used to inform the 2015/16 budget report later in the year.
8.10.8 Local Plan – Local Planning Authorities are required to prepare and maintain up to
date Development Plans that comply with national guidance and provide for all
objectively assessed needs and demands for development consistent with the
principles of sustainable development. The North Norfolk Core Strategy was adopted
in 2008 and covers the period to 2021. The Site Allocations Development Plan was
adopted in 2011 and allocates land for around 3,500 dwellings. Whilst the Council is
well placed to deliver the planned growth over the short term some consideration
needs to be given to the possible timetable for a Plan review. Preparation for a plan
review is resource intensive from both officer time and external support. Earmarking of
funding for a plan review started in 2013/14 from additional planning fee income further
details on the resources required and funding for the review will be considered as part
of a separate item to members.
8.10.9 Other External Funding – There are still outstanding repairs and insurance claims in
relation to the December 2013 storm damage. This includes confirmation of the
2014/15 grant for coastal repairs from the Environment Agency. The budget when set
in February 2014 did assume residual costs would be funded from the general reserve,
Financial Strategy 2015/16 to 2017/18
August 2014
57
Page 25 of 27
however there is still a risk that until all works have been completed and insurance
claims finalised additional funding may need to be allocated from the general reserve.
Financial Strategy 2015/16 to 2017/18
August 2014
58
Page 26 of 27
Glossary of Acronyms – Financial Strategy
DWP
Department for Work and Pensions
LCTS
Local Council Tax Support
LTE
Long Term Empty
MRP
Minimum Revenue Provision
NHB
New Homes Bonus
RSG
Revenue Support Grant
SFA
Settlement Funding Assessment
SFIS
Single Fraud Investigation Service
M:\Accountancy\Shared Information\Financial Plan\2015-16\Financial Strategy 15-16 Onwards v2.docx
Financial Strategy 2015/16 to 2017/18
August 2014
59
Page 27 of 27
Appendix E
Reserves Statement - Financial Strategy 2015/16 onwards
Reserve
Purpose and Use of Reserve
Balance at
1/4/2014
£
General Fund General Reserve
A working balance and contingency, current recommended
balance is £1.75 million.
Earmarked Reserves:
1,923,146
2014/15
Updated
Budget
Movement
£
(212,945)
Balance at
01/04/15
2015/16
Budgeted
Movement
Balance
01/04/16
2016/17
Budgeted
Movement
Balance
01/04/17
£
£
£
£
£
1,710,201
0
Budgeted
Balance
Movement
01/04/18
2017/18
£
£
0
1,710,201
0
1,710,201
0
1,710,201
0
Capital Projects
To provide funding for capital developments and purchase of
major assets. This includes the VAT Shelter Receipt.
1,881,280
(434,424)
1,446,856
0
1,446,856
0
1,446,856
0
1,446,856
Asset Management
To support improvements to our existing assets as identified
through the Asset Management Plan.
47,427
(10,983)
36,444
0
36,444
0
36,444
0
36,444
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
(50,000)
671,792
0
671,792
0
671,792
0
671,792
Big Society Fund
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.
969,927
(958,283)
11,644
0
11,644
0
11,644
0
11,644
Broadband
Earmarks £1 million for superfast broadbank in North Norfolk.
0
1,000,000
1,000,000
0
1,000,000
0
1,000,000
0
1,000,000
Building Control
Building Control surplus
45,688
0
45,688
0
45,688
0
45,688
0
45,688
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.
327,239
0
327,239
0
327,239
0
327,239
0
327,239
Carbon Management
To fund revenue invest to save initiatives and projects within the
Carbon Management Plan.
0
0
0
0
0
0
0
0
0
Coast Protection
To support the ongoing coast protection maintenance
programme ands carry forward funding between financial years.
243,167
(243,167)
0
0
0
0
0
0
0
60
Appendix E
Reserves Statement - Financial Strategy 2015/16 onwards
Balance at
1/4/2014
2014/15
Updated
Budget
Movement
£
Balance at
01/04/15
2015/16
Budgeted
Movement
Balance
01/04/16
2016/17
Budgeted
Movement
Balance
01/04/17
£
£
£
£
£
Budgeted
Balance
Movement
01/04/18
2017/18
Reserve
Purpose and Use of Reserve
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.
77,019
(49,569)
27,450
0
27,450
0
27,450
0
27,450
Economic
Development and
Tourism
Earmarked from previous underspends within Economic
Development and Tourism Budgets along with funding
earmarked for Learning for Everyone.
13,248
0
13,248
0
13,248
0
13,248
0
13,248
Election Reserve
Established to meet costs associated with district council
elections, to smooth the impact between financial years.
75,060
14,940
90,000
(60,000)
30,000
30,000
60,000
30,000
90,000
Enforcement Works
Established to meet costs associated with district council
enforcement works including buildings at risk .
146,967
23,635
170,602
0
170,602
0
170,602
0
170,602
Environmental
Health
Earmarking of previous underspends and additional income to
meet Environmental Health initiatives.
66,567
(45,000)
21,567
0
21,567
0
21,567
0
21,567
Environmental Policy
Earmarking of a previous underspend to meet future costs of
environmental policy initiatives.
0
0
0
0
0
0
0
0
0
£
£
£
Grants
Revenue Grants received and due to timing issues not used in
the year.
237,727
(189,622)
48,105
0
48,105
0
48,105
0
48,105
Housing
Previously earmarked for stock condition survey and housing
needs assessment.
100,000
0
100,000
0
100,000
0
100,000
0
100,000
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
Land Charges
To mitigate the impact of potential income reductions.
39,899
0
39,899
0
39,899
0
39,899
0
39,899
Legal
One off funding for Compulsory Purchase Order (CPO) work
and East Law Surplus.
48,600
(5,005)
43,595
0
43,595
0
43,595
0
43,595
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding
commitments and liabilities.
51,728
0
51,728
0
51,728
0
51,728
0
51,728
LSVT Reserve
To meet the cost of successful warranty claims not covered by
bonds and insurance following the housing stock transfer.
435,000
0
435,000
0
435,000
0
435,000
0
435,000
61
Appendix E
Reserves Statement - Financial Strategy 2015/16 onwards
Reserve
Purpose and Use of Reserve
New Homes Bonus
Established for supporting communities with future growth and
development. The 2014/15 Movement includes the reallocation
of £400k required for the Broadband contribution as approved
on Jully 2014.
Organisational
Development
To provide funding for organisation development to create
capacity within the organisation and address anomalies within
the pay structure.
Partnership Budgets
This reflects the balance of funding on the Revenues and
Benefits Partnership project. This will be utilised in 2013/14.
Pathfinder
Balance at
1/4/2014
£
2014/15
Updated
Budget
Movement
£
Balance at
01/04/15
2015/16
Budgeted
Movement
Balance
01/04/16
2016/17
Budgeted
Movement
Balance
01/04/17
£
£
£
£
£
Budgeted
Balance
Movement
01/04/18
2017/18
£
£
1,286,885
(213,541)
1,073,344
251,510
1,324,854
328,716
1,653,570
329,792
1,983,362
107,695
(81,547)
26,148
0
26,148
0
26,148
0
26,148
0
0
0
0
0
0
0
0
0
To help Coastal Communities adapt to coastal changes.
239,775
(85,634)
154,141
(18,126)
136,015
(18,126)
117,889
(44,108)
73,781
Planning - Revenue
Additional Planning income earmarked for Planning initiatives
including Plan Review.
300,550
(94,377)
206,173
(4,000)
202,173
0
202,173
0
202,173
Regeneration
Projects
Carry forward of underspends relating to Regeneration Projects.
37,837
0
37,837
0
37,837
0
37,837
0
37,837
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.
923,299
(234,246)
689,053
(38,000)
651,053
0
651,053
0
651,053
Sports Hall
To support renewals for sports hall equipment. Amount
Equipment & Sports transferred in the year represents over or under achievement of
income target.
Facilities
30,272
0
30,272
0
30,272
0
30,272
0
30,272
The pier
To be used to support the costs of works to Cromer pier.
0
0
0
0
0
0
0
0
0
Whistle blowing
Commissioning investigation activity as required.
0
0
0
0
0
0
0
0
0
10,443,862 (1,869,768)
8,574,094
131,384
8,705,478
340,590
9,046,068
315,684
9,361,752
Total Reserves
62
Cabinet 8 September 2014
Overview and Scrutiny 10 September 2014
Agenda Item No____14________
MANAGING PERFORMANCE QUARTER 1 2014/15
Summary:
The purpose of this report is to give a first quarter
progress report of the performance of the Council. More
specifically it reports delivery of the Annual Action Plan
2014/15 and achieving targets. It gives an overview,
identifies any issues that may affect delivery of the plan,
the action being taken to address these issues and
proposes any further action needed that requires
Cabinet approval.
Options considered:
Options considering action regarding performance are
presented separately, issue by issue, to the appropriate
Council Committee.
Conclusions:
1. The majority of the 56 activities in the Annual
Action Plan 2014/15 are on track or progressing
to plan (46). Performance is being closely
monitored, particularly for the small number of
activities where issues or problems have been
identified (two). Some activities have already
been completed successfully (three).
2. Of the 15 performance indicators where a target
has been set eight are on or above target, one
close to target and six below target. Where
assessment against the same period last year is
possible (17 indicators), 12 are improving, three
are static and two are worsening.
3. The delivery of the Annual Action Plan is
progressing according to plan but there are a
very few performance issues in achieving
targets. These are detailed in the document
‘Managing Performance Quarter 1 2014/15’
attached as Appendix F.
Recommendations:
1. That Cabinet notes this report, welcomes the
progress being made and endorses the actions
laid out in Appendix F being taken by
management where there are areas of concern.
2. That Cabinet approves the target for
performance indicator C 007 Target response
time to fly tipping and all other pollution
complaints (within 2 working days) be set at
80%.
Reasons for
To ensure the objectives of the Council are achieved.
63
Cabinet 8 September 2014
Overview and Scrutiny 10 September 2014
Recommendations:
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not
published elsewhere)
Cabinet Member(s)
Ward(s) affected
Tom FitzPatrick
All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.thomas@north-norfolk.gov.uk
1.
Introduction
The purpose of the ‘Managing Performance Quarter 1 2014/15’ report is to
identify good practice and disseminate it, highlight any performance issues to
help the Council identify areas for discussion and take action to secure
improvement in the future where it is needed.
It is a key part of the Council’s Performance Management Framework.
2.
Content of the Report
The first quarter performance report shows progress against the Corporate
Plan 2012-2015 themes together with any other relevant performance
achievements and issues.
Each theme has a strategic assessment of progress achieved during the
quarter in delivering the Annual Action Plan 2014/15 and achieving targets.
Performance information for each theme is broken into 3 sections: Strategic Overview including assessment of overall performance within each
theme, key achievements and issues
 Progress in delivering the Annual Action Plan 2014/15
 Performance Indicators – progress reporting
In addition, a ‘performance indicators at a glance’ section gives an overview of
performance against targets and direction of travel.
3.
Setting a target for performance indicator C 007 Target response time to
fly tipping and all other pollution complaints (within 2 working days)
At the time of the publication of the Annual Action Plan 2014/15 earlier this
year it was not possible to set a target for this performance indicator as the
target was under discussion pending changes to the cleansing contract as
part of resource realisations. It is now possible to set this target at 80%.
64
Cabinet 8 September 2014
Overview and Scrutiny 10 September 2014
4.
Conclusion
The majority of the 56 activities in the Annual Action Plan 2014/15 are on
track or progressing to plan (46). Performance is being closely monitored,
particularly for the small number of activities where issues or problems have
been identified (two). Some activities have already been completed
successfully (three).
Of the 15 performance indicators where a target has been set eight are on or
above target, one close to target and six below target. Where assessment
against the same period last year is possible (17 indicators), 12 are improving,
three are static and two are worsening.
The delivery of the Annual Action Plan is progressing according to plan but
there are a very few performance issues in achieving targets. These are
detailed in the document ‘Managing Performance Quarter 1 2014/15’ attached
as Appendix F.
5.
Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the risk to delivery of the Annual Action Plan 2014/15 and the
achievement of the priorities in the Corporate Plan 2012-15. The
recommendations of this report outline the action being taken to reduce or
remove the risk of not delivering the Corporate Plan.
The Corporate Risk Register which includes the risk associated with nondelivery of the Corporate Plan is reviewed regularly by the Audit Committee
and the Performance and Risk Management Board.
6.
Financial Implications and Risks
Prompt action to deal with any performance issues identified by this report will
reduce the financial risk to the Council.
7.
Sustainability
There are no sustainability implications of this report.
8.
Equality and Diversity
There are no equality and diversity implications of this report.
9.
Section 17 Crime and Disorder considerations
There are no Section 17 Crime and Disorder implications of this report.
65
Managing
Performance
Quarter 1 2014/15
Version 1.4
Any queries please contact Policy and Performance Management Officer, Helen Thomas
Tel. 01263 516214
Managing Performance Quarter 1 2014-15 v1 4
66
Page 1 of 41
Contents
Contents .................................................................................... 2
Introduction............................................................................... 3
Key............................................................................................. 4
Overview ................................................................................... 5
Jobs and the Local Economy .................................................. 6
Housing and Infrastructure .................................................... 12
Coast, Countryside and Built Heritage ................................. 16
Localism .................................................................................. 26
Delivering the Vision .............................................................. 29
Performance Indicators and Measures at a glance .............. 37
Version Control....................................................................... 41
Managing Performance Quarter 1 2014-15 v1 4
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Page 2 of 41
Introduction
The quarterly performance report for Cabinet shows progress against the Corporate
Plan 2012-2015 Themes, together with any other relevant performance achievements
and issues.
Each theme has a strategic assessment of progress achieved during the quarter in
delivering the Annual Action Plan 2014/15 and achieving targets.
Performance information for each theme is broken into three sections:



Summary, including assessment of overall performance within each theme
Progress in delivering the Annual Action Plan 2014/15
Performance Indicators – progress reporting
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.
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Page 3 of 41
Key
Actions
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.
Not Started
This is for activities that are not programmed to start yet.
Postponed or
Delayed
This is for activities that should have started by now but have not.
On Hold
Activities that have started but have had to pause.
Some Problems
Lead officers should have described the problems and the action being taken to deal
with them.
Needs Attention/ Off
Track
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.
Indicators
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 1 2014-15 v1 4
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Page 4 of 41
Overview
1. The majority of the 56 activities in the Annual Action Plan 2014/15 are on track (46).
Performance is being closely monitored, particularly for the small number of activities where
issues or problems have been identified (two). Some activities have already been completed
successfully (three). See Chart 1 below.
2. Of the 15 performance indicators where a target has been set eight are on or above target,
one close to target and six below target. Where assessment against the same period last
year is possible (17 indicators), 12 are improving, three are static and two are worsening.
3. The delivery of the Annual Action Plan is progressing according to plan but there are a very
few performance issues in achieving targets. These are detailed in the remainder of the
document.
Activities
3, 5%
2, 4%
Completed Successfully
5, 9%
On Track
Some Problems
46, 82%
Not Started
Chart 1 : Progress of the activities in the Annual Action Plan 2014/15
Managing Performance Quarter 1 2014-15 v1 4
70
Page 5 of 41
Jobs and the Local Economy
Strategic Overview
There has been a considerable amount of activity against this theme. One of the activities has
been completed successfully. The majority of actions are on track (16 of 18) with one not
started. Two of the three performance indicators are on or above target and one is close to
target.
The Council has:
1. Ensured a speedy return to new normality by the response and support given during and
after the Fakenham fire, which has been well received by local businesses.
2. Earmarked £1m to be matched funded against a future roll out programme in 2015/16 to
deliver a target of up to 95% superfast broadband covering across North Norfolk.
3. Provided grant support to a large number of businesses adversely affected by the December
storm surge.
4. Established a new working relationship with the New Anglia Local Enterprise Partnership
through the establishment of a joint post for the new Head of Service for Economic and
Community Development.
5. Developed new approaches to business engagement (supported by a successful funding
application to the Local Government Association (LGA)) both locally and in conjunction with
the New Anglia Local Enterprise Partnership.
6. Implemented awards of retail relief to appropriate businesses following policy approval from
Council in June.
7. Delivered more legal services to organisations locally and has been asked to manage and
deliver Borough of Kings Lynn and West Norfolk‟s legal services. This will result in an
expansion of the service delivering additional high quality employment locally.
8. Sponsored the extremely successful Pedal Norfolk event hosted at Holkham over the first
three days of the May Bank Holiday.
9. Continued to provide business support to ensure businesses in the district are compliant.
The Food Hygiene Rating System is used by businesses as a promotional tool. Where
businesses fail to act on advice, appropriate formal action is taken to ensure a level playing
field.
10. Approved the establishment of a new grants scheme for new business start-ups and growing
enterprises which is due to launch in the autumn of 2014.
11. The Fisheries Local Action Group (FLAG) programme was successful in applying for a
substantial proportion of the European Fisheries Funds available to it.
Issues and challenges
1. Further fundamental reviews of how the Council‟s approach to enforcement supports
businesses will be undertaken by the teams in Environmental Health Services.
2. Closer engagement both strategically (via the New Anglia Local Enterprise Partnership) and
locally with (North Norfolk businesses) is the key to targeting local economic growth
initiatives and developing our own growth plan.
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Delivering the Annual Action Plan 2014/15
A - Increase the number of new businesses and support the growth and expansion of
existing businesses
Activity
Status
AAP 14/15 - J A 01 - We will work
with partners to develop and
deliver the business support
scheme Enterprise North Norfolk
On track
AAP 14/15 - J A 02 - Working in
partnership we will increase
investment opportunities in the
district through the promotion and
development of allocated
employment sites
On Track
AAP 14/15 - J A 03 - We will
conclude the designation of a
Local Development Order at
Egmere and develop job and
supply chain opportunities
associated with the off shore
wind sector
On Track
AAP 14/15 - J A 04 - We will
support the North Norfolk
Fisheries Local Action Group
(FLAG) and review the delivery of
projects from the £2.4 million
funding secured for the fishing
sector
On Track
AAP 14/15 - J A 05 - We will
develop our corporate position in
respect of emerging renewable
energy technologies through
preparation of an Energy
Strategy
On Track
AAP 14/15 - J A 06 - We will seek
to influence and promote jobcreating investment at the former
Coltishall airbase
On Track
Progress/ Action Note
Enterprise North Norfolk (ENN) has met its
targets in supporting new start-up enterprises in
the District. It has been widely praised by those
completing the programme and monitoring
demonstrates good performance against target
measures.
The Council promotes sites via the website
using the „Evolutive‟ database. Property
searches are undertaken for potential investors
in response to enquiries. Improvements will be
made to this process through the development
of the Business Engagement Strategy.
Egmere Local Development Order approved by
Cabinet and Full Council in May 2014. Final
paperwork confirming Order currently under
preparation. Application for funding provision of
site infrastructure made to Coastal Communities
Fund - anticipated decision on funding
December 2014. Discussions on-going with
landowners regarding future promotion of
investment opportunities at Egmere to offshore
wind energy companies and their suppliers.
The FLAG programme has reached the end of
the grant application stage, with applications for
£1.104m of European Fisheries Fund (EFF)
funding being submitted (at an average
intervention rate of approx. 61%).
Progress being made on preparation of draft
strategy to be the subject of consideration by
Cabinet and Overview and Scrutiny Committee
September/October 2014.
On-going involvement through Corporate
Director and senior Members in supporting
Norfolk County Council to develop and take
forward business development proposals and
enquiries on the former RAF Coltishall site.
Four planning applications have been lodged
with the District Council to date and others are
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Activity
Progress/ Action Note
Status
anticipated shortly.
AAP 14/15 - J A 07 - We will
formulate a Growth Plan for North
Norfolk District Council, linked to
the Local Enterprise Partnership
(LEP) Strategic Economic Plan
and the Norfolk Growth
Prospectus and identify potential
future key projects
On Track
AAP 14/15 - J A 08 - We will
formulate a Business
Engagement Strategy via a new
Memorandum of Understanding
with North Norfolk Business
Forum and through business
events such as a Business and
Skills Symposium
On Track
The Council fed into the formulation of the Local
Enterprise Partnership (LEP) Strategic
Economic Plan and to the commissioning of
Norfolk Growth Prospectus. The New Head of
service post is a shared role with the LEP and
this will assist in promoting the local growth
agenda, the development of a local Growth Plan
will follow.
Agreement has been reached with the Growth
Board about the future direction of business
engagement and business support. A review
has been undertaken (funded by the Local
Government Association) of the way in which
the Council engages with businesses via the
North Norfolk Business Forum (NNBF) and the
report is expected to be finalised in July and the
recommendations acted upon soon thereafter.
This Skills event was successfully delivered and
further such symposia will be planned to
address the needs of the local business
community.
AAP 14/15 - J A 09 - We will
review the Discretionary Rate
Relief Policy to reflect changes to
support businesses as outlined in
the Autumn Statements
The revised policy was reported to Cabinet in
April 2014
Completed
Successfully
B - Improve the job prospects of our residents by developing a skilled and adaptable
workforce that is matched to business growth and development
Activity
AAP 14/15 - 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
AAP 14/15 - J B 02 - We will offer
bespoke programmes of advice and
support to people faced with
redundancy from local companies as
Progress/ Action Note
Status
Sample feedback from a client May 2014 - "It has
given me a chance for a future that was always just
out of reach".
On
Track
Demand has low in April, May and June, only 4
new instances.
On
Track
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Activity
Progress/ Action Note
Status
and when such events occur
AAP 14/15 - J B 03 - The L4E team
will engage with existing and new
employers in the district to
understand their future workforce
requirements and co-ordinate
provision of relevant training courses
to secure employment within the
district
The Skills team have been following up with the
attendees of Biz Magic skills event in May which
has contributed to the significant increase in the
number of businesses assisted to retain jobs and/or
increase employment from 2 for the same period
last year to 43 in the first quarter in 2014/15 .
Several apprenticeship opportunities have or are
being developed.
On
Track
C - Improve access to funding for businesses
Activity
AAP 14/15 - J C 01 - Working with the North
Norfolk Business Forum, other representative
local groups, regional partners and financial
services companies we will seek to ensure
that small and medium sized enterprises
have improved access to investment finance
to support business growth and development
across the district
Status
Progress/ Action Note
On
Track
Cabinet has agreed the implementation of
a grant scheme for enterprise and startups, to be launched in the autumn. Also
through lobbying and developing a closer
working relationship with the Local
Enterprise Partnership (LEP), funding
initiatives are beginning to become
available to local enterprises.
D - Reduce burdens to business by removing unnecessary red tape and bureaucracy
at the local level
Activity
AAP 14/15 - J D 01 - We will
work with partners to roll out
BDUK's £60m Norfolk
Broadband Initiative across
North Norfolk
AAP 14/15 - J D 02 - We will
ensure our approach to
enforcement supports local
businesses
AAP 14/15 – J D 03 - We
will streamline the planning
process to improve our
performance
Status
Progress/ Action Note
On
Track
Full Council on 23 July 2014 considered a report which
provided an update of the BDUK roll out across Norfolk and
approved the earmarking of £1m to be matched funded
against a future roll out programme in 2015/16, subject to a
detailed analysis and a report coming back to Council after
May 2015 for release of the funding. This would help
deliver a target of up to 95% superfast broadband covering
across North Norfolk.
Not
Started
Environmental Health Team Managers have been set
objectives to review the approach to enforcement to
support businesses within their team area, which will be
undertaken over the coming months.
On
Track
We have improved our application process by the
introduction of case conferences and more proactive
performance management. Business Process Reengineering work planned for later in the year, will underpin
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Activity
Status
Progress/ Action Note
this approach.
AAP 14/15 - J D 04 - We will
advertise and promote all
public sector procurement
opportunities to small and
medium sized businesses
(SMEs) across the district
On
Track
E - Promote a positive image of North Norfolk as a premier visitor destination
Activity
Status
AAP 14/15 - J E 01 - We will support and facilitate
the newly established private sector led Destination
Management Organisation (DMO) for the North
Norfolk coast and countryside to maintain the profile
of the district as a leading tourist destination within
the UK, boosting levels of employment and income
for the district
Progress/ Action Note
Visit North Norfolk has performed
satisfactorily against the measures
set up in its inception; however a
revised agreement has been
negotiated to take account of
recent government guidance.
On
Track
The website has been re-launched
and the organisation rebranded.
Membership appears to be
increasing (rising by eight in the
first quarter) and marketing activity
yielding positive results.
Performance Indicators
Indicators and Measures
Number of businesses assisted to
retain jobs and/or increase
employment each year (Quarterly
Cumulative) (J 004)
Q4/12/13
Q4/13/14
Q1
14/15
Target
Q1
14/15
Result
Target
2014/15
-
90
6
43
25
The Skills team have been following up with enquiries from the
BizMagic work experience and skills event in March. Both
businesses who attended and those who did not have been
assisted. This has resulted in significantly increased numbers of
businesses being supported.
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Indicators and Measures
Number of member businesses of the
Destination Management
Organisation (DMO) for the North
Norfolk coast and countryside
(quarterly) (J 015)
Q4/12/13
Q4/13/14
Q1
14/15
Target
Q1
14/15
Result
Target
2014/15
115
141
127
149
215
A new brand manager for Visit North Norfolk Coast & Countryside
started April 2014. The new look Visit North Norfolk website was
launched in June 2014.
Number of new business start-ups
supported by Enterprise North Norfolk
(Quarterly Cumulative) (ED 023)
-
52
12
11
50
Enterprise North Norfolk has now entered into its second year. It
continues to provide a good level of workshops, support, advice and
guidance to new start-up businesses. Work will continue to support
this programme and ensure a strong year.
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Housing and Infrastructure
Strategic Overview
There has been a lot of activity against this theme and outcomes being delivered. Eight of the
nine activities are on track and one has not started.
The Council has:
1. Seen a further reduction in the number of empty homes in the District in part because of the
work of the Enforcement Board and the services that support the work of the Board (from
712 in March 2014 to 612 in June 2014).
2. In one particular case one large property had been empty in excess of 20 years – through he
Council placing pressure on the property owner this has now been sold for redevelopment.
3. Continued to receive applications on allocated sites, and anticipate in the next quarter that
applications will be submitted on sites at North Walsham (NW01), Holt (HO9), Sheringham
(SHO5) and Cromer (CO4).
4. Made progress with regard to the Development Brief for Fakenham (Site FO1).
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Delivering the Annual Action Plan 2014/15
A - Increase the number of new homes built within the district and reduce the
number of empty properties
Activity
Status
AAP 14/15 - H A 01 - We will bring forward
detailed proposals on allocated sites by
better engagement with developers
On
Track
AAP 14/15 - H A 02 - We will produce a
development brief for the allocated site in
Fakenham (F01)
On
Track
AAP 14/15 - H A 03 - We will seek to
increase the number of new homes built of
all tenures
On
Track
AAP 14/15 - H A 04 - We will encourage the
development of neighbourhood plans by
supporting towns and parishes when they
indicate a desire to go down that route
AAP 14/15 - 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
AAP 14/15 - H A 06 - We will review the
homelessness strategy
Progress/ Action Note
Good progress continues to be made in
bringing forward development on the larger
site allocation at Fakenham (F01). In the
next quarter it is anticipated that
applications will be submitted on sites at
North Walsham (NW01), Holt (HO9),
Sheringham (SHO5) and Cromer (CO4)
A meeting has been held with Agents acting
for Trinity College (main land owner). A
revised Development Brief for the site is
being prepared and is expected to be
submitted during August/September 2014.
The council implemented an incentivisation
scheme last October to encourage the early
start on site for development. This is due to
be reviewed at the end of the year, but
performance reports suggest that this has
been successful and the number of planning
permissions being granted is closely
monitored and 130 homes have been
approved in the first quarter of the financial
year, 55 under the incentive scheme. We
are also currently working with housing
registered providers and private landlords to
bring forward exception schemes as well as
market house developments.
Both Corpusty and Holt Councils are in the
process of preparing initial draft Plans which
will then be subject to public consultation.
On
Track
The Enforcement Board continues to act on
properties with multiple problems.
On
Track
A long term empty (LTE) properties post has
been established in order to deal with the
high number of LTEs across the district with
the intention of maximising the number of
LTEs brought back into use with the
resulting social benefits, improved Council
Tax revenue and increased New Homes
Bonus.
Review process completed. Current draft of
the revised Strategy and progress report
being presented to Scrutiny 22 July 2014.
On
Track
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Activity
Status
AAP 14/15 - H A 07 - We will consider our
approach and establish a timeline for a
review of the local plan
On
Track
Progress/ Action Note
A report has been prepared outlining a
suggested timetable for Plan Review. This
will be considered by the Housing and
Planning Policy Board and the Planning
Policy Working Party prior to consideration
by Council on 22 October 2014.
B - Increase the number of affordable homes with a range of tenure types
Activity
AAP 14/15 - 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
Status
Progress/ Action Note
On
Track
On 9 June 2014, Cabinet approved the
provision of a £3.5m loan to Broadland
Housing Association including a £0.75m
loan to its subsidiary, Broadland St
Benedicts. Work will now take place on
agreeing the terms of the loan.
C - Secure investment in new infrastructure
Activity
AAP 14/15 - 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)
Status
Progress/ Action Note
Not
Started
Whilst recognising the need for this
piece of work, it needs to be
considered in relation to the
evidence base required for Plan
Review.
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Performance Indicators
Indicators and
Measures
Number of long
term empty
homes (6 months
or more)
(Monthly
Cumulative) (H
002)
Q4/12/13
Q4/13/14
-
712
Q1
14/15
Target
Q1
14/15
Result
NA
612
Target 2014/15
Monitor
The reduction in long term empty properties is mainly because Revenue Services have
made inspecting these as a priority over all other visits. This is to help identify the
possible number of properties that are not empty and need to be changed to occupied or
furnished. A temporary extra resource has helped to process those properties on the
Council system so that the data is more up to date which has reduced the total further.
Experian data has now been received and is being worked through to reduce the empty
total further over the next few weeks.
Number of
development
briefs produced
on allocated sites
(Quarterly
Cumulative) (H
003)
2
1
0
0
1 (Land North of
Rudham Stile
Lane, Fakenham
(F01))
A revised Development Brief for the site is being prepared and is expected to be
submitted during August/September 2014.
Number of
affordable homes
built (Monthly
Cumulative) (H
007)
18
153
NA
9
Carry out trend
analysis
There have been nine completions of affordable dwellings in June, of which six are for
affordable rent and three for sale on a shared ownership basis. All nine dwellings were
provided at Hoveton, via the Section 106 Agreement.
We are currently expecting 74 affordable dwellings to be completed by the end of March
2015.
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Coast, Countryside and Built Heritage
Strategic Overview
Activities and outcomes continue to be delivered against this theme. Two of the ten actions have
been successfully completed and a further five are on track. One activity has not started and two
are having problems. Four of the eleven performance indicators are on or above target and
three below target. All the indicators where an assessment against the same period last year is
possible are improving.
The Council has:
1. Successfully retained Blue Flag awards at Cromer, Sheringham and Sea Palling and
managed to regain the award for Mundesley along with a Seaside Award for the East
Runton resort.
2. Completed repair work, needed after the storm surge in December 2013, including; reopening Mundesley café in May 2014 and re-opening Mundesley public conveniences in
July 2014.
3. Awarded flood relief on those businesses affected by the tidal surge.
4. Eastlaw have contributed significantly to the work of the Enforcement Board and have
enabled eyesore sites to be tackled throughout the district, in particular there was a great
deal of complex legal work involved in the demolition of the Broads Hotel and other
properties, to reach successful conclusions.
5. Assessed Cromer Pier tenders and awarded the contract. Eight week build programme
scheduled for completion during September and October 2014.
6. Tendered for the Sheringham promenade café works and awarded the contract. Completion
is expected during August 2014.
7. The focus of the Coastal Management Team in this quarter was oriented towards securing
our key coast defence assets in the wake of the December storm as well as safeguarding
the interests of the local communities affected by it.
8. Significantly improved performance for determining planning applications in the first quarter.
The Council minor and other application performance in particular has improved with 62.16%
and 81.31% of applications determined within eight weeks respectively.
9. Appointed a New Building Control Manager, who is now in post. A complete service review
will be undertaken to ensure the service delivers an improved, efficient service. There are
optimistic signs that the recession has at the very least bottomed out or is coming to an end.
Fee income has remained high from the 2013/14 profit shown. The service is being
developed to provide additional energy assessment services which could bring in an income
stream of £10-£15,000 per annum. Once the vacant surveyors post has been filled and the
team has settled into the new working practices, the promotion of the Partnership scheme
will be moved forward in an effort to increase the number of partners we have to increase
income further. This aspect will be helped by the recent award (Local Authority Building
Control (LABC) Eastern Built in Quality Awards 2014 - Best partnership with a local
authority) won by Building Control for its partnership with local architectural firm Stead
Mutton Griggs.
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Issues and challenges
1. To progress grant applications in relation to Cromer west promenade refurbishment works.
2. To deliver pier and Sheringham café refurbishment works on time, by October 2014 and
August 2014 respectively.
3. Savings identified in the Waste Services contract need to be delivered, evaluated and
communicated to minimise impact on communities and the reputation of the Council.
4. Securing resources both to maintain and enhance vulnerable defences will be a key
challenge and all avenues are being explored to attract Grant in Aid and partnership funding.
Coastal adaptation now seems increasingly important in order to ensure the resilience of
North Norfolk‟s coastal communities in the future; innovative new projects and new funding
opportunities are to be explored and developed.
5. The challenge for the Planning Service is to maintain higher levels of performance during a
period where the service is experiencing a turnover in staff and going through a restructure.
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Delivering the Annual Action Plan 2014/15
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 14/15 - C A 01 - We will
assess and implement
requirements for new Green
Flag awards and work to
retain the existing awards
Completed
successfully
The Council has just been informed that it has
retained the Green Flag awards at all three sites,
including Holt Country Park, Sadler‟s Wood and
Pretty Corner.
AAP 14/15 - 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
The Council recently received good news in relation
to its Blue Flag beach awards; the Council have
managed to successfully retain the awards for
Cromer, Sheringham and Sea Palling and managed
to regain the award for Mundesley. The Council has
also been successful in securing a Seaside Award
for East Runton. These awards are the result of an
excellent team effort which is even more impressive
considering the impact of the storm damage back in
December.
AAP 14/15 - C A 03 - We will
manage the waste services
contract through the effective
use of rectifications and
defaults to achieve an
excellent level of service
In terms of cleansing, there has been inconsistency
in Kier's performance, which has been present for
much of the contract. A lack of self-monitoring has
been a contributory factor to these
problems. Specific failure to ensure adequate litter
bin collections in Sheringham in early May 2014
have resulted in contract defaults and subsequent
financial contract penalties being applied, as have
further failures to complete works to contract
timescales during June 2014. Consequently, the
corporate target of zero default notices has not been
achieved. Kier do take steps to prevent repetition of
particular failures, however, the approach is not yet
proactive enough to prevent these common
problems happening elsewhere in the district.
Some
Problems
The number of missed bin collections remains above
target, with an average of 35 per 100,000 collections
for the period January - May 2014 compared to a
target of 25 per 100,000. The most recent
performance figures (May 2014) saw improvement to
28 missed collections per 100,000. The Council is
awaiting confirmed figures for June 2014 from Kier
but expect further improvements in this area. An
area of concern is the number of missed collections
for households that have been granted an assisted
collection, where the absolute target is zero, but
performance has been between 13 and 25 missed
assisted collections per month between January and
May 2014. Kier have already been instructed to
address this matter as a high priority and have
altered procedures to ensure performance in this
area improves. The Environmental Services team
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Activity
Status
Progress/ Action Note
will continue to closely monitor performance in this
area and use the rectification and default
mechanisms within the contract to affect a positive
change if necessary.
AAP 14/15 - C A 04 - We will
ensure that all reported flytipping will be responded to
within 2 working days
AAP 14/15 - C A 05 - We will
review our supplementary
planning guidance for
landscaping requirements on
large development sites and
the application of the
guidance
Some
Problems
The level of response to reported fly-tipping remains
below target. A procedural review of the way in
which reports of fly-tipping is dealt with will be
undertaken.
This work has been programmed in to commence
later in the year.
Not Started
B - Recognise the District's built environment as a heritage asset when promoting
North Norfolk
Activity
Status
AAP 14/15 - 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
Progress/ Action Note
Planning officers regularly attend
the board, and are actively working
to resolve a number of issues
relating to listed properties.
C - Design a more cohesive framework for coastline management
Activity
AAP 14/15 - C C 01 - We will
investigate Coastal Management
Partnership options with
neighbouring Maritime Authorities
AAP 14/15 - C C 02 - We will work
with coastal communities to identify
coastal management schemes and
sources of funding
Status
Progress/ Action Note
Investigations have and are continuing to take
place with the Suffolk Coastal Management Team
and other partners. This has been reported to the
Coastal Management Board (June 2014) and
further consideration is required after the start of
the new Head of Service for Growth and
Communities.
On
Track
Discussions with key communities continue,
notably Cromer, Walcott and Bacton terminal
operators. Discussions are necessary elsewhere,
where schemes are planned, to further investigate
their feasibility.
Coastal Management Team updates and responds
as required to community requests for support and
information. For example the community at Ostend.
On
Track
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Activity
Status
AAP 14/15 - C C 03 - We will
continue to assess the damage
caused by the storm surge of
December 2013 and prepare and
implement plans to repair sea
defences, replace coastal assets and
provide assistance to coastal
communities
Progress/ Action Note
A Government grants scheme is being
administered by the Council and additional admin
support employed to support the process. 190
grant applications received over £250,000 worth of
grants approved, covering 160 properties which
were flooded and/or otherwise affected as a result
of the storm surge.
On
Track
The Property team continues to progress repairs in
relation to the storm surge damage, with some
properties proving complex to reinstate. Cromer
pier for example required extensive works to the
decking underneath both the Tides Restaurant and
the shop and booking office area. These works
have only recently been completed but this has
impacted on the repair works to the structures
sitting on top of the decking. However tenders have
now been received back and the Council has
appointed a contractor to undertake these works.
Following a number of complications the repair
works to Sheringham West prom café commenced
on Friday 18 July, with an anticipated completion
date of 10 August. A full update in relation to the
storm surge repairs is due to be issued to Members
shortly.
N.B. the wording of this activity has been amended to
add “…and provide assistance to coastal
communities”, to better reflect the scope of the work
being carried out.
D - Continue to defend coastal settlements against erosion wherever practicable
Activity
AAP 14/15 - C D 01 - We
will oversee the
implementation of the
£8.6m Cromer Defence
Scheme
Status
On
Track
Progress/ Action Note
The first winter campaign 2013/14 was completed and
incorporated necessary storm surge repairs. The Council is
assessing if these extra works will have an impact on the
programme and if any works may need to be brought forward.
This has been discussed at the Coastal Management Board
meeting in June 2014 and the assessment will be reported to
the Board in due course. The second winter campaign is on
track to start in the autumn of 2014.
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Performance Indicators
Indicators
and
Measures
Q4/12/13
Q4/13/14
Q1 14/15
Target
Q1 14/15
Result
Percentage
of planning
appeals
allowed
(monthly
cumulative)
(C 002)
-
50.00%
NA
38.5%
Number of
planning
appeals
allowed
(monthly
cumulative)
(C 002a)
3
1
NA
5
76.92%
80.00%
75.0%
Target 2014/15
Review and report
On track.
Percentage
of MAJOR
planning
applications
processed
within
thirteen
weeks
(monthly
cumulative)
(C 003)
58.33%
80.00%
Whilst under taken, the team have managed to maintain performance in relation to major
applications, and improve performance in relation to the other categories of applications.
Percentage
of MINOR
planning
applications
processed
within eight
weeks
(monthly
cumulative)
(C 004)
38.35%
45.21%
70.00%
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62.16%
70.00%
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Indicators
and
Measures
Q4/12/13
Q4/13/14
Q1 14/15
Target
Q1 14/15
Result
Target 2014/15
Whilst not yet at target level, this represents a significant improvement in previous quarter
results.
Percentage
of OTHER
planning
applications
processed
within eight
weeks
(monthly
cumulative)
(C 005)
53.38%
62.00%
70.00%
81.31%
70%
Performance has significantly exceeded the Council's target and reflects the hard work that
officers and Members have continued to put in dealing with this type of application.
Percentage
of MAJOR
planning
applications
processed
within
thirteen
weeks over
the last 24
months
(monthly
cumulative)
(DM 005)
-
69.84%
40.00%
72.22%
Target threshold revised
by Government from
30% to 40% in June
2014.
Our performance significantly exceeds the Government definition of „poor performers‟.
Percentage
of MAJOR
planning
applications
refused and
then
overturned
on appeal
over the last
24 months
(monthly
cumulative)
(DM 006)
-
0.00%
20.00%
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100.00%
Target threshold set by
Government at 30% and
confirmed by the
Department of
communities and Local
government at 20% in
June 2014. Council
target 20%.
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Indicators
and
Measures
Number of
MAJOR
planning
applications
refused and
then
overturned
on appeal
over the last
24 months
(monthly
cumulative)
(DM 006a)
Q4/12/13
-
Q4/13/14
-
Q1 14/15
Target
Q1 14/15
Result
NA
1
Target 2014/15
There has only been one major application that has gone to appeal, where the Council‟s
decision has been overturned. The low number of applications distorts this indicator.
Target
response
time to fly
tipping and
all other
pollution
complaints
(within 2
working
days)
(quarterly)
(C 007)
Number of
pollution
enforcement
interventions
(quarterly
cumulative)
(C 008)
78.90%
88.00%
100.00%
88%
80%
51
30
NA
9
Review and report.
Within the quarter there were 9 new pollution cases which were investigated with a view to
potential prosecution. 7 of these are related to fly tipping and 1 for waste duty of care and 1
for the burning of commercial waste giving rise to dark smoke.
The waste duty of care case was completed during the quarter and a simple caution has been
issued. The rest of the cases are still pending further investigation/action.
In addition 4 further fly tipping cases were completed during the quarter, of these 3 were
issued warning letters, and 1 was closed with no evidence to proceed.
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Indicators
and
Measures
Q4/12/13
Q4/13/14
Q1 14/15
Target
Q1 14/15
Result
Target 2014/15
The team continues to progress cases where there is sufficient evidence to do so. Cases are
assessed and appropriate interventions are used to achieve the desired outcome of changing
people's and businesses behaviour.
Number of
fixed penalty
notices
issued
(quarterly
cumulative)
(C 009)
6
5
NA
0
Carry out trend analysis
The team continues to issues FPNs when incidents are witnessed.
Number of
defaults
issued to the
waste and
related
services
contractor
for
cleanliness
(monthly
cumulative)
(C 010)
39
41
NA
52
Review and report.
Number of
rectifications
issued to the
waste and
related
services
contractor
for
cleanliness
(monthly
cumulative)
(ES 015)
55
197
NA
80
No target. Report to
Head of Service and
Management Team.
Specific failure to ensure adequate litter bin collections in Sheringham in early May 2014 have
resulted in contract defaults and subsequent financial contract penalties being applied, as
have further failures to complete works to contract timescales during June 2014.
It should however be noted that whilst Kier's performance does not always meet the
expectations of the Council as defined through the contract, the requirements of which are
stringent, the cleanliness of North Norfolk in comparison to other areas is generally very
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Indicators
and
Measures
Q4/12/13
Q4/13/14
Q1 14/15
Target
Q1 14/15
Result
Target 2014/15
good. It should also be noted that several compliments have been received from members of
the public in relation to the cleanliness of towns including North Walsham, Cromer and
Fakenham.
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Localism
Strategic Overview
There has been a considerable amount of activity against this theme. All four actions are on
track.
The Council has:
1. Successful applied for 3 years revenue funding (£212k) to Sport England to provide Sports
Clubs and Hubs.
2. Continued to guide and input into the development of Coastshare, which is being used a
model for local authorities nationally.
3. Recruited a number of volunteers as potential Community Dog Wardens. Some shadowing
of officers has taken place.
4. Achieved increasing take up of the Community Resilience Programme and carried out
engagement with communities to encourage further take up.
5. Provided support and funding to community initiatives which has resulted in the delivery of a
great many local projects that have helped meet local community needs and resulted in
increased voluntary and community activity.
6. Run the European Election for North Norfolk in May 2014.
7. Successfully launched Individual Electoral Registration (IER).
8. Delivered four large events in the Parish and Town Council support programme where
several parish councils attended. Individual parish councils are now being visited.
9. Started the Member Development Programme. The programme which started January 2014
is half way through. Six sessions have been delivered so far on topics such as IPad use,
finance, governance and planning.
Issues and challenges
10. The Community Dog Warden Scheme needs to be delivered and promoted further.
11. Continuing to support the implementation of localism initiatives and the development
initiatives through the Big Society philosophy will depend upon the funding resources that
are becoming increasingly scarce.
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Delivering the Annual Action Plan 2014/15
A - Recognise the important role that Town and Parish Councils have as the
democratic embodiment of their communities
Activity
AAP 14/15 - 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) and we will establish a regular
dialogue and work with town and parish councils.
We will hold workshops for training and
development, in particular to encourage wide
community participation in the democratic process
Status
Progress/ Action Note
On
Track
Officers are holding on-going
discussions with North Norfolk Railway
(NNR) with a view to NNR producing an
Expression of Interest to run
Sheringham TIC and the Station
Approach Public Toilets, dependent on
NNR being successful in a Coastal
Communities Grant application for a
wider development.
B - Encourage communities to develop their own vision for their future and help
them to deliver it
Activity
Status
AAP 14/15 - L B 01 - We will support
and encourage Community Dog
Warden Schemes in those parishes
where there is a local demand
Progress/ Action Note
The identification of potential Community Dog
Wardens is continuing through promotion at
Parish and Town Councils, local events and
media. Appropriate training is being developed
ready for delivery once all suitable volunteers
have been identified.
On
Track
AAP 14/15 - 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
Community plans have been completed for
Walcott, Trimingham and Potter Heigham. Draft
plans are in place for Kettlestone and Great
Snoring, Presentation have been delivered to the
following communities: Sheringham, Fakenham,
Cromer, Bacton, Trunch, Aylmerton, Morston and
Hoveton.
On
Track
C - Encourage the growth of The Big Society within communities
Activity
AAP 14/15 - L C 01 - We will
continue to administer our Big
Society Fund, to invest in local
communities, strengthen civil
society, and provide support for
local priorities
Status
On
Track
Progress/ Action Note
The Big Society Fund has supported a very wide
range of initiatives that match the Council‟s priorities
and meet the needs of local communities. An awards
event will be held in July to celebrate the success of
local projects and the contribution of individuals and
businesses, as well as to help promote the scheme.
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Performance Indicators
Indicators and
Measures
Q4/12/13
Q4/13/14
Q1 14/15
Target
Q1 14/15
Result
Target
2014/15
Number of grants
awarded to local
communities from
the Big Society
Fund (quarterly
cumulative) (L 005)
-
33
11
Review and
Report
Amount of funding
investment in
community projects
(from the Big
Society Fund) (£)
(quarterly
cumulative) (L 006)
-
£291, 441
£59,066
Review and
Report
The Big Society Fund has supported a very wide range of initiatives that match the
Council‟s priorities and meet the needs of local communities. An awards event will be
held in July to celebrate the success of local projects and the contribution of individuals
and businesses, as well as to help promote the scheme.
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Delivering the Vision
Strategic Overview
The majority of actions in the Annual Action Plan delivering this theme are either on track (13 of
15) and two have not started. Two of the five performance indicators where a target has been
set are on or above target and three are below target. Two that are not achieving target are
nevertheless improving significantly. Four are improving compared to the same period last year
and one worsening.
The Council has:
Customer Service Improvement
1. Put the correspondence log onto an electronic management system which has streamlined
the process to ensure that response times are monitored and adhered to.
Service Improvement
2. Made a significant contribution to maximising revenue through the new homes bonus –
working on reducing empty homes, bringing new properties into council tax banding through
timely use of completion notices and proactive contacts.
3. Supported a small group of internal managers to successfully completed the Institute of
Leadership & Management (ILM) level 5 managers programme and a second cohort of
managers/aspiring managers have started the ILM level 3 managers programme.
4. Implemented the open revenues module enabling a more automated approach to collection
of benefit overpayments.
5. Implemented self-service for staff to be able to access their personal details and payslips on
line. This is the start of a programme of changes which will lead to more efficient and
economic ways of working.
6. Agreed and started to implement the Annual Action Plan 2014/15.
7. Seen the Council‟s Legal Team, eastlaw, win the Legal Services category at the Municipal
Journal (MJ) Awards and being shortlisted for the Halsbury In house Legal Team of the
Year, a category which covers both commercial and private sector teams nationally.
8. Eastlaw has performed very strongly so far this year despite some extremely challenging
circumstances in terms of reducing resource in the short term. The service has undertaken
significant additional amounts of work against two key lawyers retiring in May and June. The
team worked with the Charity Commission to have a charity being used as a sham to avoid
business rates struck off.
9. Successfully pursued debt, recovering the cost of works in default.
10. Data Protection and Freedom of Information (FOI) continue to be a beacon of good practice
and eastlaw are in the process of implementing this in other authorities.
11. Invested in new case bundling software in the Legal Service to work within our existing case
management system to maximise efficiencies and deliver a more professional looking
product.
12. Completed the Asset Management Plan, which was subsequently approved by Cabinet and
Full Council.
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13. Included the Council on a framework contract being let by Norfolk County Council in relation
to building and maintenance works, with works ranging between £5k and £300k.
14. Completed the restructuring of the Environmental Health Service resulting in realignment of
some resources which is addressing issues previously identified, particularly around
licensing functions. Additional work will be required.
15. Published the Annual Report 2013/14 on the Council website.
16. Secured a number of new customers for the Print Room, which is anticipated to assist in
maintaining the print room external income in 2014/15.
17. Delivered contingency training cover in the Print room on Tuesday mornings from the staff
from the Post room.
18. Developed an electronic management system for staff comments which has not only
streamlined the process for the member of staff currently inputting these details, but also
provides staff with the opportunity to look back at archived comments as well as adding their
own on-line.
Issues and challenges
1. Currently only printing and legal services are being delivered through Coastshare, with other
authorities committing to deliver more services. If the Council wish to generate further
efficiencies through this model then other back office services need to be included quickly to
be able to take advantage of emerging markets.
2. Eastlaw were asked to manage and deliver services for the Borough Council of Kings Lynn
and West Norfolk started May 2014 against a loss of experienced staff retiring. This
arrangement should be formalised shortly at which point, a significant amount of additional
income will be generated and the team enlarged to deliver the additional work.
3. The implementation of savings around the Cleaning/ Grounds Maintenance Contract will
need careful monitoring to prevent unintended consequences presenting reputational risks.
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Delivering the Annual Action Plan 2014/15
A - Deliver strong governance arrangements
Activity
AAP 14/15 - V A 01 - The Audit
Committee will oversee a review
programme to ensure that audit
coverage reflects the risks facing the
Council and produce a revised annual
audit plan for 2013/14 onwards
AAP 14/15 - V A 02 - We will set and
achieve 100% compliance with
deadlines agreed with Internal Audit for
recommendations rated as Medium and
High
AAP 14/15 - V A 03 - We will review
and update the revised performance
management framework to include
managing the Business Transformation
Programme
AAP 14/15 - V A 04 - We will review the
Scheme of Delegation to fit with a new
structure within the Planning Service
Status
Progress/ Action Note
Not Started
There are no outstanding high priority
recommendations. The status of medium
recommendations will be reviewed as
part of the mid-year follow up review.
On Track
Scheduled to start September 2014.
Not Started
Work has just started on reviewing the
scheme of delegation. Any major
changes will need to be considered by
the Constitution Working Party and full
implementation is therefore not
anticipated until April 2015.
Just
Commenced/
On Track
B - Ensure that effective communications exist
Activity
AAP 14/15 - V B 01 - We will work to
develop our approach to digital and
social media and work to improve
our dissemination of information to
our local residents
AAP 14/15 - V B 02 - We will relaunch the Planning Agents Forum
AAP 14/15 - V B 03 - We will
undertake a programme of Member
Development
Status
Progress/ Action Note
On
Track
Communications and Marketing Manager
appointed. Review of website and transactional
services in progress.
On
Track
First meeting held 8 July 2014. Now to be held on a
quarterly basis.
The programme, which started in January 2014, is
half way through being delivered. Six sessions have
been delivered so far on topics such as IPad use,
finance, governance and planning. Planning for
Member induction for 2015 has started.
On
Track
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Activity
AAP 14/15 - V B 04 - We will
implement a replacement telephony
system and customer management
system
Status
Progress/ Action Note
On
Track
Market assessment and top level requirements
have been completed. A pilot of the preferred
technology is being initiated in August 2014.
C - Deliver strong and proportionate organisational management in the Council
Activity
Status
Progress/ Action Note
AAP 14/15 - V C 01 - We will
implement a new structure for the
Planning Service
On
Track
Consultation is currently underway on the proposed
new structure. Implementation should be complete by
the end of September 2014.
D - Prioritise Services and Functions in line with the wishes of our communities and
to deliver our corporate objectives
Activity
AAP 14/15 - V D 01 - We will prioritise
services and redirect resources in line
with those priorities by completing
fundamental reviews of services that
residents have identified as the least
important
AAP 14/15 - V D 02 - We will review
the objectives in the Corporate Plan to
ensure it takes account of emerging
issues and opportunities
Status
Progress/ Action Note
On
Track
The financial strategy is due to be presented to
Cabinet in September and the future budget
preparation for 2015/16 will consider also this
expenditure and possible future reviews of
services.
On
Track
The Annual Action Plan 2014/15 was approved by
Cabinet on 14 April 2014 and reported to
Overview & Scrutiny on 20 May 2014 which sets
out the key corporate priorities for the current
year. This is due to be reviewed for 2015/16 in
line with the budget preparation in the autumn.
E - Deliver year-on-year improvements in efficiency
Activity
Status
AAP 14/15 - V E 01 - We will
implement a cost saving Revenues
and Benefits project
On
Track
Progress/ Action Note
System stability achieved. Further work on
implementation of additional modules in hand.
Significant focus at present supporting reduction in
empty homes. Confirmation from Working Party to
retain existing Council Tax Support Scheme. Further
consideration of team structure and ability to deliver
further savings will be considered through a business
process review.
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Activity
AAP 14/15 - V E 02 - We will
devise and implement budgets to
deliver a freeze in the District
Council's part of the Council Tax
charge
AAP 14/15 - V E 03 - We will
review the reward structures to
encourage staff, for finding
innovative new ways to deliver
higher quality services more
efficiently
AAP 14/15 - V E 04 - We will
implement the Business
Transformation Programme to
ensure that the most economic,
efficient and accessible forms of
contact are in place for all our
customers
Status
On
Track
On
track
On
track
Progress/ Action Note
The financial strategy for the period 2015/16 onwards
is in progress and will be presented to members
formally through Cabinet and Scrutiny in September.
Overview Member briefings are being held in July
which will provide a high level update on the current
forecast financial position.
Work has commenced on this activity and will be
completed during 2014/15.
Head of Business Transformation & IT appointed.
Programme Governance in place. Top level
programme plan in place. Work commenced on
multiple projects.
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Performance Indicators
Quarterly Indicators
and Measures
Percentage of
(Medium Priority) audit
recommendations
completed on time
(quarterly cumulative)
(V 001)
Q4/12/13
Q4/13/14
Q1 14/15
Target
66.1%
67.2%
80%
Q1
14/15
Result
See
below
Target
2014/15
80%
The next review of the implementation of audit recommendations to be carried out
in October for the position as at 30 September 2014.
Percentage of (High
Priority) audit
recommendations
completed on time
(quarterly cumulative)
(V 002)
100.0%
66.7%
100%
NA
100%
No high priority recommendations issued in quarter 1 and none remain outstanding.
Percentage of audit
days delivered
(quarterly cumulative)
(V 004)
100.0%
100.0%
11.0%
5.0%
100%
Quarter 1 result 5% against target of 11% of Internal Audit Plan completed. One
audit completed in quarter 1, briefs and preparatory work commenced in quarter 1
for completion in quarter 2.
Working Days Lost
Due to Sickness
Absence (Whole
Authority days per Full
Time Equivalent
members of
staff) (quarterly
cumulative) (V 007)
6.80
6.77
6.70
1.28
6 days per full
time
equivalent
(FTE)
employee
The figures for the first quarter are lower than last year. Detailed information will be
reported to the Joint Staff Consultative Committee on 14 July 2014.
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Quarterly Indicators
and Measures
Percentage of Council
Tax Collected
(monthly cumulative)
(RB 009)
Q4/12/13
Q4/13/14
Q1 14/15
Target
97.90%
98.08%
30.00%
Q1
14/15
Result
30.12%
Target
2014/15
98.5%
(annual)
The service is pleased to report that collection is above target especially as it has
been actively involved in a number of unscheduled corporate activities – flood relief,
significant work on the new homes bonus, and the impacts from the fire at
Fakenham. In addition the sundry debtors module (within the open revenues
software) has been implemented which enables a more automated approach to the
recovery of overpaid housing benefit.
Percentage of Nondomestic Rates
collected (monthly
cumulative) (RB 010)
98.40%
99.14%
33.00%
33.86%
99.2%
(annual)
The service is pleased to report that collection is above target. Comments as above
apply. In addition there was a specific retail relief that had to be awarded, following
approval of the policy by Council in June.
Average time for
processing new claims
(Housing and Council
Tax Benefit) (monthly
cumulative) (RB 027)
30.0
24.0
18.0
21.0
18 days
The figures represent the average time to process claims – this takes into account
claims that cannot be processed upon receipt, as additional information is required.
People have a calendar month in which to reply to such requests. If information is
not complete after this period there is a further time delay before the claim can be
calculated.
The average time for calculating claims which can be calculated upon receipt/or
which can be checked with Department for Work and Pensions (DWP) records was
10 days in June.
Speed of processing:
change in
circumstances for
Housing and Council
Tax Benefit claims
(average calendar
days) (monthly
cumulative) (RB 028)
18.0
17.0
8.0
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16.0
8 days
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Quarterly Indicators
and Measures
Q4/12/13
Q4/13/14
Q1 14/15
Target
Q1
14/15
Result
Target
2014/15
The figures represent the average time to process a change of circumstance – this
takes into account claims that cannot be processed upon receipt, as additional
information is required. People have a calendar month in which to reply to such
requests. If information is not complete after this period there is a further time delay
before the claim can be calculated.
The average time for calculating change of circumstances which can be calculated
upon receipt/or which can be checked with Department for Work and Pensions
(DWP) records was 9 days in June.
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Performance Indicators and Measures at a glance
Jobs and the Local Economy
Indicators and Measures
Q1 14/15
Result
Target
2014/15
Number of businesses assisted to retain jobs and/or increase
employment each year (Quarterly Cumulative) (J 004)
Number of member businesses of the Destination Management
Organisation (DMO) for the North Norfolk coast and countryside
(quarterly) (J 015)
43
25
149
215
11
50
Number of new business start-ups supported by Enterprise North Norfolk
(Quarterly Cumulative) (ED 023)
Housing and Infrastructure
Indicators and Measures
Q1 14/15
Result
Number of long term empty homes (6 months or
more) (Monthly Cumulative) (H 002)
612
Number of development briefs produced on
allocated sites (Quarterly Cumulative) (H 003)
0
Number of affordable homes built (Quarterly
Cumulative) (H 007)
9
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Target 2014/15
Monitor
1 (Land North of Rudham Stile
Lane, Fakenham (F01))
Carry out trend analysis
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Coast, Countryside and Built Heritage
Indicators and Measures
Percentage of planning
appeals allowed
(quarterly) (C 002)
Q1 14/15
Result
Target 2014/15
38.5%
Review and report
Percentage of MAJOR
planning applications
processed within
thirteen weeks (monthly
cumulative) (C 003)
75.0%
80.00%
Percentage of MINOR
planning applications
processed within eight
weeks (monthly
cumulative) (C 004)
62.16%
70.00%
Percentage of OTHER
planning applications
processed within eight
weeks (monthly
cumulative) (C 005)
81.31%
70%
Percentage of MAJOR
planning applications
processed within
thirteen weeks over the
last 24 months (monthly
cumulative) (DM 005)
72.22%
Target threshold revised by Government from
30% to 40% in June 2014.
100.00%
Target threshold set by Government at 30%
and confirmed by the Department for
Communities and Local Government (DCLG)
at 20% in June 2014. Council target 20%.
Percentage of MAJOR
planning applications
refused and then
overturned on appeal
over the last 24 months
(monthly cumulative)
(DM 006)
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Indicators and Measures
Q1 14/15
Result
Target 2014/15
Target response time to
fly tipping and all other
pollution complaints
(within 2 working days)
(quarterly) (C 007)
88%
100%
Number of pollution
enforcement
interventions (quarterly
cumulative) (C 008)
9
Review and report.
Number of fixed penalty
notices issued (quarterly
cumulative) (C 009)
0
Carry out trend analysis
Number of defaults
issued to the waste and
related services
contractor for
cleanliness (monthly
cumulative) (C 010)
52
Review and report.
Number of rectifications
issued to the waste and
related services
contractor for
cleanliness (monthly
cumulative) (ES 015)
80
No target. Report to Head of Service and
Management Team.
Localism
Indicators and Measures
Q1 14/15
Result
Number of grants awarded to local communities from the Big
Society Fund (quarterly cumulative) (L 005)
Amount of funding investment in community projects (from the Big
Society Fund) (£) (quarterly cumulative) (L 006)
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Target
2014/15
11
Review and
Report
£59,066
Review and
Report
Page 39 of 41
Delivering the Vision
Quarterly Indicators and Measures
Q1 14/15
Result
Target 2014/15
Next review
October
2014.
80%
NA
100%
5.0%
100%
1.28
6 days per full time
equivalent (FTE)
employee
Percentage of Council Tax Collected (monthly cumulative)
(RB 009)
30.12%
98.5% (annual)
Percentage of Non-domestic Rates collected (monthly
cumulative) (RB 010)
33.86%
99.2% (annual)
21.0
18 days
16.0
8 days
Percentage of (Medium Priority) audit recommendations
completed on time (quarterly cumulative) (V 001)
Percentage of (High Priority) 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)
Average time for processing new claims (Housing and
Council Tax Benefit) (monthly cumulative) (RB 027)
Speed of processing: change in circumstances for
Housing and Council Tax Benefit claims (average
calendar days) (monthly cumulative) (RB 028)
Managing Performance Quarter 1 2014-15 v1 4
105
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Version Control
Version
1.0
1.1
Originator
Helen Thomas
Helen Thomas
1.2
Helen Thomas
1.3
1.4
Helen Thomas
Helen Thomas
Description including reason for changes
First draft for review by Chief Executive
Second draft for Performance and Risk Management
Board
Third draft for Heads of Service after proof reading by
Julie Cooke
Fourth draft following pre-Cabinet
Final
Managing Performance Quarter 1 2014-15 v1 4
106
Date
23/07/2014
25/07/2014
8/08/2014
27/08/2014
28/08/2014
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