Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
29 August 2013
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 9th September 2013 at 10.00 a.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. Coffee will be available in the staff restaurant at 9.30 a.m.
and at the break.
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
Sheila Oxtoby
Chief Executive
To: Mr B Cabbell-Manners, Mr T FitzPatrick, Mrs A Fitch-Tillett, Mr T Ivory, Mr J Lee, Mr W
Northam, Mr R Oliver, 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 15 July
2013.
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.
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.
7.
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.
8.
JOINT STAFF CONSULTATIVE COMMITTEE
(Page 7)
To receive and consider the minutes of the meeting of the Joint Staff Consultative
Committee held on 17 May 2013.
9.
CLOSED CIRCUIT TELEVISION WORKING PARTY
(Page 10)
To receive and consider the minutes of the meeting of the CCTV Working Party held on 04
July 2013.
10.
BIG SOCIETY FUND GRANTS PANEL
(Page 14)
To receive and consider the draft minutes of the meeting of the Big Society Fund Grants
Panel held on 08 July 2013.
11.
BUDGET MONITORING REPORT 2013/14 – PERIOD 4
(Page 21)
(Appendix A – p.28) (Appendix B – p.29) (Appendix C – p.32 ) (Appendix D – p.34)
Summary:
This report summarises the budget monitoring position
for the revenue account to the end of July 2013.
Options considered:
Not applicable
Conclusions:
The overall position at the end of period 4 shows a
forecast under spend of £14,000 for the current financial
year on the revenue account.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and
the current budget monitoring position.
2) Cabinet agree and recommend to Full
Council the updated budget as set out in
section 5.1, Table 3.
3) Cabinet agree and recommend to Council a
budget of £65,000 for PC and Laptop
replacement as outlined in paragraph 6.4
Recommendation
To COUNCIL
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
Contact Officer:
Telephone number
Email:
12.
Cllr W Northam
All
Malcolm Fry
01263 516037
Malcolm.fry@north-norfolk.gov.uk
FINANCIAL STRATEGY 2014/15 to 2016/17
(Page 39)
(Strategy Document – p.42) (Appendix E – p.67)(Appendix F – p.68)
Summary
Options considered
Conclusions
This report presents the current financial forecast for the period
2014/15 to 2016/17 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
The current financial forecast presents a funding gap for the
next three years of just over £1 million by 2016/17. 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
COUNCIL
DECISION
Reasons for
Recommendations
It is recommended that:
1) Members consider and note:
a) The current financial forecast for the period 2014/15
to 2016/17;
b) The current capital funding forecasts;
2) Members consider and recommend to Council:
a) Continuation of the current Local Council Tax
Support Scheme for 2014/15;
b) That the Local Council Tax Support Scheme grant
for parishes be offered to those parishes that
accepted the grant in 2013/14 and the total amount
available is reduced in line with the Council’s
relative funding reductions as outlined at section
2.9.15;
c) The reallocation of £400,000 from the general
reserve to the Restructuring/Invest to Save
Reserve;
d) The updated minimum level of General Fund
balance to be £1.75 million for the reasons outlined
in the report at section 5;
e) Delegated authority is given to the Chief Executive
to release funds from the restructuring/invest to
save reserve up to £100,000, as outlined within
section 5 of the financial strategy;
f) The revised reserves statement as included at
Appendix F to the financial strategy (with the
revisions of recommendations 2 c) above;
g) Pending further review of the financial limits within
the constitution, an amendment to the virement
limits for Heads of Service and Corporate
Leadership team as outlined at reference 5.16.
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 2014/15
which will be commencing in the coming months.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
Spending Round 2013
Consultation Papers – Local Government Finance Settlement
New Homes Bonus and the Local Growth Fund
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone number
Email:
Cllr W Northam
All
Malcolm Fry
01263 516243
Karen.sly@north-norfolk.gov.uk
13.
LOCAL INVESTMENT STRATEGY - PROVISION OF LOANS TO REGISTERED
PROVIDERS
(Page 71)
(Appendix G – p.82)
Summary:
This report seeks approval to issue loans to Registered
Providers to support the delivery of new housing across the
district as part of a Local Investment Strategy. Such loans will
be on a commercial basis generating a rate of return which
would be greater than the return currently being achieved on
the Council’s short term treasury investments.
Options
considered:
The Housing and Planning Policy Board considered four
options for inclusion in the Local Investment Strategy. Option 1
– disposal of land will continue using existing powers for
disposal. Option 2 – provision of commercial loans to
Registered Providers was considered to provide the best
outcomes to the Council and was recommended to Cabinet for
adoption. Option 3 – Provision of land and loan to a
Registered Provider was supported but was not as
straightforward to deliver as Option 2. Option 4 – formulation
of a Joint Venture was considered to be too slow and complex
to meet the Council’s needs at this time.
Conclusions:
The economic climate has meant that Registered Providers
have had to identify new sources of long term finance and as a
result there is a need for medium term loans which will allow
Registered Providers to access long term finance by
developing a portfolio of properties of the required size. The
Council has seen the return it achieves on its short term
treasury investments significantly reduce over the last 5
financial years. The Council has therefore looked to develop a
Local Investment Strategy which will allow it to invest in a
sustainable way in supporting housing delivery. Providing
loans to Registered Providers on a commercial basis meets
this requirement whilst also generating additional interest
income and providing wider economic benefits to reflect the
increase in the number of dwellings provided in the District.
The Council can provide loans on the equivalent of commercial
terms under existing powers and such loans would be
compatible with EU procurement and State Aid rules. Initially
up to £3.5million will need to be allocated for the provision of
such loans.
As the Registered Providers will be providing both affordable
housing and market housing the Council may need to provide
some or all of the loan finance to the Registered Providers’
wholly owned subsidiary as the subsidiary will deliver the
required market housing.
Recommendations: It is recommended to Council that:
1. the Council provides loan funding as detailed in
this report to Registered Providers and/or their
wholly owned subsidiaries to facilitate the provision
of more housing in North Norfolk. Initially funding
of up to £3.5million to be made available.
2. the Treasury Management Strategy is amended to:
COUNCIL
DECISION
 Allow for the provision of loans to
Registered Providers and/or their wholly
owned subsidiaries
 Change the Minimum Revenue Provision
(MRP) Policy to allow for Capital Receipts
from principal repayments on loans made on
an Equal Instalment of Principal (EIP) basis
to be applied to finance the Capital
Financing Requirement.
3. £3.5 million be included in the 2013/14 capital
programme for loans to Registered Providers to be
funded partly (£1,168,478) from a virement from the
Housing Associations capital budget and
£2,331,522 from internal borrowing or external
borrowing as required.
Reasons for
To increase the provision of housing, including affordable
Recommendations: housing across the district which supports the Corporate Plan.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
Local Investment Strategy report to Housing and Planning Policy Board meeting on 8 July
2013.
Legal advice
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone number
Email:
14.
Cllr T Ivory, Cllr W Northam
All
Nicola Turner
01263 516222
Nicola.turner@north-norfolk.gov.uk
MANAGING PERFORMANCE – QUARTER 1 2013/14
7 (Page 88)
(Appendix H –p.94) (Appendix I – p. 106) (Appendix J1 – p.113) (Appendix J2 – p. 115)
(Appendix K – p.118)
Summary:
The purpose of this report is to give a first quarter
progress report in delivering the Annual Action Plan
2013 - 14. 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.
Conclusions:
CABINET
DECISION
15.
The majority of activities outlined in this report are on
track with performance being closely monitored.
Briefing notes have been provided in respect of
Planning and Revenues and Benefits and these are
shown at Appendix J and K.
Of the 14 performance indicators where a target has
been set or assessment against the previous year’s
performance is taking place, six are on or above
target, six below target, one improving and one worse
compared to last year.
All identified issues that have arisen are being
addressed by managers and the Performance and
Risk Management Board.
Recommendations:
It is recommended that Cabinet note this report.
Reasons for
Recommendations:
All performance issues identified in this report are
being addressed by the appropriate level of
management and do not require any additional action
to be authorised by Cabinet.
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 15 July 2013 at the Council
Offices, Holt Road, Cromer at 10.00am.
Members Present:
Mr B Cabbell Manners
Mrs A Fitch-Tillett
Mr T FitzPatrick
Mr T Ivory
Mr J Lee
Mr R Oliver
Mr W Northam
Also attending:
Mrs L Brettle
Mrs A Claussen-Reynolds
Mr P High
Mr N Lloyd
Miss B Palmer
Mr R Reynolds
Mr E Seward
Mr R Shepherd
Mr B Smith
Mr N Smith
Mr G Williams
Mr D Young
Officers in
Attendance:
32.
The Chief Executive, the Corporate Director (NB), the Head of
Economic & Community Development, the Planning Policy & Property
Information Manager, the Housing Team Leader (Strategy) and the
Democratic Services Team Leader
APOLOGIES FOR ABSENCE
Mr R Wright
33.
MINUTES
The minutes of the meeting held on 10 June 2013 were confirmed as a correct record
and signed by the Chairman.
34.
PUBLIC QUESTIONS
None received
35.
ITEMS OF URGENT BUSINESS
None
36.
Cabinet
DECLARATIONS OF INTEREST
Member
Minute No & Heading
Nature of Interest
Mr B Cabbell
Manners
Housing Incentives
Pecuniary interest by virtue of
being a trustee of an
organisation that has submitted
a planning application
1
15 July 2013
1
37.
PLANNING POLICY AND BUILT HERITAGE WORKING PARTY
Mr B Cabbell Manners, Chairman of the Planning Policy and Built Heritage Working
Party, spoke in favour of the recommendations.
RESOLVED
(1) That the minutes of the meeting of the Planning Policy and Built Heritage
Working Party held on 24 June 2013 be approved.
(2) To adopt the North Norfolk Buildings at Risk Register, with the possible
inclusion of those buildings contained on the Broads Authority’s list which fall
within North Norfolk, and that subject to investigation of the legal
requirements, the list be published on the Council’s website
(3) To approve the Holt Development Brief, subject to minor amendments to the
wording as suggested by the Highway Authority, and to ensure internal
access roads did not divide the open space.
(4) To approve the publication of the Annual Monitoring Reports and Statements
of Five Year Land Supply covering the period 2010/13.
38.
MATERIAL RECYCLING FACILITY
Mr J Lee, Portfolio Holder for Environmental Services introduced this item. He said
that there had been a lengthy procurement process and the Council had worked very
closely with the seven other Norfolk councils to achieve the best outcome for
residents. Once the contract was in place, and the new sorting equipment
commissioned, a wider range of materials would be collected, including glass which
could be placed directly into householders’ recycling bins, making recycling easier for
residents and leading to an increase in recycling rates. The benefit of working as a
consortium with other councils mean that the service could be provided at a lower
cost to NNDC.
The councils involved must agree to enter the contract individually before the legal
contracts could be completed by the procuring authority, jointly on behalf of the
consortium. If approved, the new contract would commence on 1 April 2014.
Members were invited to ask questions:
a. Mr D Young had submitted a written question raising concerns about the impact
on the current bottle banks based in local communities when householders began
to put glass directly into their recycling bins. He pointed out that many parish
councils received credits for the glass that they collected in these banks and that
they would need to increase their precept by 8-10 per cent in order to recoup the
income currently budgeted from recycling credits. He wondered whether the
Council would consider using part of its savings to operate a scheme of
compensation for parish councils and other organisations in the event that
recycling credits are no longer available. Mr Lee acknowledged that bottle bank
collection rates were likely to reduce once the new contract was in place. He said
that it was for this reason that the Council had written to all the beneficiaries now,
15 months ahead of the introduction of any changes. He added that the Council
could not continue to subsidise other local authorities and there had been an
increase in the money allocated to the Big Society Fund to provide additional
assistance to local communities.
b. Mr N Lloyd queried whether there would be an increase in the recycling rates or
whether it would ultimately just be a different way of mean counting the same
thing. Mr Lee replied that other Councils who had already gone through this
Cabinet
2
15 July 2013
2
process had seen an increase in their recycling rates as householders placed all
their glass and plastics in their recycling bin rather than just throwing them away.
In response to a further question as to whether there was just one recycling plant
and it was coincidental that it was based in Norfolk, The Waste and Recycling
Manager replied that there had been a bidding process as the materials had a
value and it was worth transporting them a considerable distance if necessary.
One of the bidders operated a number of recycling sites across the country, and it
had not been anticipated that the successful bidder would necessarily be based in
Norfolk.
c. Mrs A Claussen-Reynolds asked why the contract was for ten years. She felt that
this was very long and sought assurance that there were get-out clauses if
required. The Waste and Recycling Manager replied that this length of contract
allowed for capital investment in plant and machinery which required a long write
down period. The market had been tested to establish where the best deal was
and this had indicated a 10 year contract to ensure the best prices. Regarding a
get-out clause, the Waste and Recycling Manager said that there was an option to
terminate the contract if the contractor did not provide the services that had been
agreed. The Chief Executive added that it was a Joint Venture Company (JVC)
and all the parties involved were looking to maximise income and profits and they
all wanted the venture to succeed. The Leader said that the Council had a 7%
share in the assets of the company with no capital investment. Officers had
worked very hard to get to this point and he thanked them for all their hard work.
He added that it was very good news that the recycling facility would be in Norfolk.
d. Mr E Seward said that he was Portfolio Holder for Environmental Services when
the original waste contract had been set up and the option of taking glass via the
recycling bins was considered at the time but the costs were prohibitive. He
welcomed the move now and asked if anything would be put in place to deal with
a surplus of glass at some households. The Leader replied that larger bins could
be provided if necessary. Mr J Lee added that additional recyclable waste would
be collected at the kerbside as long as it was clean and marked for collection.
e. Mr B Smith commented that many parish councils had bottle banks and paper
banks to support their local communities and the proposed changes would have a
negative impact. He felt that the Council should be more supportive. Mr J Lee
reiterated that parish and town councils had the option to retain their collection
banks if they wanted to, although this was unlikely to be collected by the Council’s
contractor.
It was proposed by Mr J Lee, seconded by Mrs A Fitch-Tillett and
RESOLVED
To inform Council of the following resolutions:
a) to award to Norse Commercial Services Ltd (“Norse”) a ten year contract for the
recycling of dry recyclable material (being the enhanced contract with glass) pursuant
to the procurement process carried out, on the basis that such contract be entered
into between the District Councils of the Norfolk Waste Partnership and the JVC (as
defined below);
b) to approve the entry into a joint venture shareholders’ agreement between the
District Councils and Norse on the basis of the Memorandum of Understanding
attached at Appendix 1 for the purposes of establishing a JVC to be the contractor
under the recycling contract; and
Cabinet
3
15 July 2013
3
c) to approve the entry into such ancillary documents and the taking of any further
actions as shall be necessary or appropriate pursuant to the establishment of the
JVC and the award of the recycling contract to the JVC.
d) to grant delegated authority to the Chief Executive Officer in consultation with the
relevant Portfolio Holder to conclude those agreements and ancillary documents on
behalf of the Council, including any minor changes to approve the final terms of the
Memorandum of Understanding and Contract with Norse and to conclude such
arrangements between the start date of the new contract and the commissioning date
of the new equipment to be installed as are appropriate to enable the extended range
of materials to be efficiently and cost effectively recycled
Reasons for the Decision:
To ensure that arrangements are put in place to process the dry recyclates collected
in the Council’s area from 1 April 2014, resulting in an increase in recycling rates.
39.
COMMUNITY INFRASTRUCTURE LEVY
The Portfolio Holder for Planning, Mr B Cabbell Manners introduced this item. He
explained that although the Community Infrastructure Levy (CIL) had been introduced
in other districts, it was felt that it did not provide enough value to make it viable in
North Norfolk. Evidence indicated that the growth that was planned in the district
could be delivered without CIL and as market conditions continued to remain
uncertain and delivery rates for development were already below required targets, it
was likely that many large scale proposals would be unable to deliver fully policy
compliant development whilst remaining commercially viable. Consequently, it was
recommended that consideration of introducing the Community Infrastructure Levy
should be suspended and reconsidered at a future date when there were clearer
signs of economic recovery.
Members were invited to ask questions:
a.
b.
c.
Mr E Seward commented that parish and town councils would be concerned at
the loss of income if CIL was introduced. Mr T Ivory agreed and said that the
Council would continue to use s106 agreements for the foreseeable future.
Mr G Williams agreed that the introduction of CIL should be postponed. He said
that one advantage of CIL was that resources could be applied across the district
whereas s106 agreements applied to specific areas. He said that he hoped the
Council would voice its support for the Government to make s106 agreements as
effective as possible.
Mr N Lloyd asked whether the Council had considered incremental
developments at a smaller level where CIL would have benefitted the district and
s106 agreements would not. Mr T Ivory replied that if developers chose this route
specifically to avoid s106 agreements then that would be unacceptable. He
reiterated that CIL was not a viable option at this time for the district.
It was proposed by Mr B Cabbell Manners, seconded by Mr T Ivory and
RECOMMENDED to Council:
That consideration of the potential introduction of CIL is suspended.
Reasons for the recommendation:
To encourage the delivery of development in the District.
Cabinet
4
15 July 2013
4
40.
HOUSING INCENTIVES
The Portfolio Holder for Housing, Mr T Ivory, introduced this item. He explained that
work undertaken in the context of the Community Infrastructure Levy on development
viability had indicated that the Core Strategy policy site size threshold and affordable
housing percentage requirements were not viable for many locations across the
district, particularly when combined with other policy requirements. It was therefore
proposed that for a temporary period, various measures would be introduced to
incentivise housing development.
Mr Ivory concluded by saying that he had been very disappointed with the press
coverage which had implied that the policy was aimed at reducing the delivery of
affordable housing. He said that at the moment no affordable homes were being built
and it was anticipated that this policy would lead to an increase in the number of
affordable homes across the district. The Leader agreed with his comments. The
Deputy Leader added that the New Homes Bonus (NHB) provided an even greater
incentive for the Council to encourage the development of new homes.
Mrs A Fitch-Tillett referred to a Motion which herself and Mrs S Arnold had raised at
Full Council some time ago proposing a reduction in the affordable housing
percentages. She said that she was pleased to see these proposals finally coming to
fruition.
Members were invited to ask questions:
a. Mr G Williams said that the evidence showed that there was a need to do
something and he supported the overall thrust of the proposals. However, he did
have some concerns regarding the proposed relaxation of the Level 3 Sustainable
Homes construction standards. He felt that sustainability could improve the
saleability of homes and that as there would only be minor cash savings for
developers, Cabinet should reconsider this aspect of the proposals. Mr T Ivory
replied that evidence suggested that there was no increase in a property’s value if
it was energy efficient and so the additional cost of meeting sustainability
requirements was imposed on the developer and then not reflected in the sale
price. Consequently lower levels of affordable housing were being delivered. He
added that Building Regulations had come a long way in recent years and
required homes to be much more energy efficient now.
b. Mr N Lloyd commented on the large number of construction workers currently
unemployed and said that he was supportive of any initiative that supported
development. He wondered whether a regular review was planned to ensure that
the number of homes being built did actually increase. Mr T Ivory replied that it
was a temporary measure and that all planning applications must be submitted
prior to 1 September 2014 if they wanted to take advantage of the proposals. A
review would take place after this date. He took the opportunity to thank Mrs J
Fisher, Mr M Ashwell and Mrs N Turner for all their hard work.
c. Mr P High, Local Member for Holt commented on the fact that one of the current
sites in the town fell within the 20% affordable housing zone whilst the other two
sites fell within the 45% zone. He felt that the gap between the two zones was too
large and could cause problems. He also believed that 20% was too low and that
there was already some flexibility available to officers to ensure that the best
figure was reached. Mr T Ivory replied that any developments in Holt were subject
to viability and could be negotiated. In response to the concern that 20% was too
low, he said that the tables within the report demonstrated why 20% was the
optimal affordable housing target as it was the level at which most sites were
viable. The Planning Policy & Property Information Manager added that for
Cabinet
5
15 July 2013
5
administrative efficiency, it was proposed that only two zones would be
introduced. The A148 was used as a boundary for the zones and this was why
Holt had differing affordable housing targets. It was generally acknowledged that
there was a difference in property values either side of the bypass so it was felt
that there was a justification for having two zones within one town.
d. Mr E Seward said that he agreed with Mr G Williams’ comments regarding
sustainable homes. He felt that people would be able to reduce their energy bill if
their homes were more energy efficient.
Mr T Ivory said that this scheme was only part of the picture. Access to finance was
very important and the Government’s scheme aimed at helping first time buyers
could not work in North Norfolk if there were no new homes available to buy.
It was proposed by Mr T Ivory, seconded by Mr R Oliver and
RECOMMENDED to Council:
1.
2.
3.
That the provisions of the National Planning Policy Framework, slow housing
delivery rates, and the CIL housing viability evidence are sufficiently material to
justify the revised affordable housing site size thresholds and percentage
requirements outlined in part 4 of this report in the determination of individual
residential planning applications.
That the incentive scheme set out in part 4 is approved
That the measures outlined in the report are widely advertised within
communities and the development industry.
Mr B Cabbell Manner did not participate in the discussions and abstained from voting.
Reasons for the decision:
To encourage higher levels of house building in the District and help address the
identified shortfall in new house completions.
The Meeting closed at 10.50 am
_______________
Chairman
Cabinet
6
15 July 2013
6
Agenda item 8
Agenda Item 2
JOINT STAFF CONSULTATIVE COMMITTEE
Minutes of a meeting of the Joint Staff Consultative Committee held in the Committee
Room, Council Offices, Holt Road, Cromer on 17 May 2013 at 2.30pm
Members Present:
Mr P W High
Mrs B McGoun
Mr R Oliver (Chairman)
Mr N Smith
Staff Side Present:
Mr S Case
Ms C Lowin-Green
Officers in Attendance:
Ms J Cooke, Head of Organisational Development
Mrs E Denny, Democratic Services Team Leader
1.
TO RECEIVE APOLOGIES FOR ABSENCE
Apologies were received from Mrs S Arnold, Mr T FitzPatrick and Mr P Godwin.
Mr R Oliver was substituting for Mr T FitzPatrick.
2.
MINUTES
The minutes of the meeting of the Joint Staff Consultative Committee held on 25
March 2013 were approved as a correct record and signed by the Chairman.
3.
JSCC UPDATE
a) Car allowances
Mr P W High asked whether the car allowances assessment form applied to
members. The Head of Organisational Development confirmed that it just applied
to staff.
Ms C Lowin-Green said that Unison would submit a formal response to the car
allowance policy. It would go to the Chief Executive first and then come to the
Committee.
b) Living Wage
Ms C Lowin-Green said that the adoption of the Living Wage policy had been
discussed at the last Chief Executive’s meeting and that the Chief Executive did
not have any objections to it being introduced at the Council. She believed that it
only affected one employee. The Head of Organisational Development said that
her understanding from the Chief Executive’s meeting was that it would be left to
the Joint Staff Consultative Committee to make a formal recommendation to
Cabinet. The Chairman suggested that it was brought to the next meeting of the
Committee for a full discussion. The Head of Organisational Development said
that she would prepare a short report which would include the number of people
affected by the proposals, the cost to the Council and a recommendation.
1
7
c) Staff morale
Ms C Lowin-Green said that staff morale remained pretty low. She referred to an
email that had been sent to all staff regarding the national pay offer. The
Chairman suggested that this was discussed further when Agenda Item 7 was
considered.
4.
SICKNESS ABSENCE UPDATE
The Head of Organisational Development updated the Committee on the latest
sickness absence figures within the organisation. She said that the absence figures for
2011/12 were 5.17 per FTE compared to 2012/13 when that figure rose to 6.80 per
FTE. Although the latter was higher, she said that she was not concerned enough to
review policy and practice as 5.17 was particularly low.
Ms C Lowin-Green commented that there was always more illness during the winter
period. The Head of Organisational Development agreed and said that this was
demonstrated by the high number of cold, flu and viral infections in the first quarter of
2013.
5.
NATIONAL PAY NEGOTIATIONS
The Head of Organisational Development referred to a press release issued by the
Local Government Association (LGA) on 24 April 2013. It stated that council
employees on salaries starting at £12,145 per annum had been offered a 1% pay
increase from 1 April 2013. She said that she had heard nothing further on this apart
from an update from the LGA which said that the outcome of the consultation was
expected in mid-late June.
Ms C Lowin-Green said that Unison would be balloting their members shortly. She said
that it was a national issue and they were bound by national terms and conditions. In
response to a question from the Chairman as to what the ballot would be for, she said
that it would be on whether to accept the pay offer. Any proposals for strike action
would require an individual ballot. The ballot would be nationwide so views could vary.
Mrs B McGoun asked whether it was a case of just awaiting the outcome. The Head of
Organisational Development replied that previously negotiations had run on into the
Autumn and that there was no formal cut-off date. In response to a further question as
to whether a pay increase would be backdated, she confirmed that it is normally
backdated to the 1st April.
The Chairman then asked about the staff feedback regarding the email that had been
circulated following the issue of the press release on the pay negotiations. Ms C
Lowin-Green said that many members of staff had been upset by the Leader’s use of
the word ‘positive’ in reference to the pay offer. The Chairman said that he believed
that it was in reference to the fact that there was a move towards a settlement rather
than the amount. Mr S Case replied that a lot of people had been upset by the email
and that it would be beneficial if a further email could be sent out explaining what had
really been intended. Mr N Smith commented that misinterpretation was a hazard of
sending emails.
The Head of Organisational Development said that she had authorised the sending of
the email. After three years with no pay increase she felt that staff would like to know
that there was an offer on the table. She confirmed that the use of the word ‘positive’
did not refer to the amount and there was certainly no intention to upset anyone. She
said that in previous years only the press release had been sent to staff but because of
the progress being made in reaching an offer, she thought that it would be better to
2
8
send an email this time. The Chairman said that in retrospect the email should
probably have come from the employer not the Leader to avoid any political
connotations.
The meeting concluded at 14.50pm.
_______________
Chairman
3
9
Agenda Item 9
CCTV WORKING PARTY
4 JULY 2013
COMMITTEE ROOM
Present:
Cllr Annie Claussen-Reynolds (ACR)
Cllr Brian Hannah (BH)
Cllr Mike Baker (MB)
Cllr Lindsay Brettle (LB)
Cllr Rhodri Oliver (RO)(Observer)
Cllr Richard Shepherd (RSh)
Nick Baker (NB)
Duncan Ellis (DE)
Maxine Collis (MC)
Maria Garofalo (MG)
Sandra Bush (SJB)(taking notes)
Actions
1.
APOLOGIES

2.
ITEMS OF URGENT BUSINESS

3.
None received
MINUTES FROM PREVIOUS MEETING AND MATTERS ARISING


5.
None received
DECLARATIONS OF INTEREST

4.
Cllr Peter Moore and Cllr Robert Stevens
In respect of splitting charges to Town Councils, DE suggested
that in moving forward charges be split equally between those
towns where cameras are provided. BH confirmed he was happy
with this in respect of Sheringham even though they have a
reduced number of cameras.
The minutes of the meeting held on 21 May were proposed,
seconded and agreed as a true record.
ALTERNATIVE WORKING OPTIONS




ACR apologised for the late circulation yesterday of the
documents and acknowledged that not everyone might have had
a chance to read them. Time was allowed for the group to read
through the options in the document.
ACR asked for any comments to be sent to her by 12 July 2013.
MC reported that no price has yet been received from Quadrant
so an estimated figure has been put into the document.
From a money-saving point of view, the private management
proposals and the shared working proposals based on the
continuation of the current levels of service were both nonstarters due to the costs relating to TUPE (Transfer of
ALL
1
CCTV Working Party
4 July 2013
Final
10

undertakings) and it was agreed to discard these options. MC to
put the reasons why in the conclusions section of the document
along with ACR’s statement.
Regarding the type and number of incidents on pages 9 and 10,
we need to be clear about the types of incident that are being
picked up and the fact that nearly a quarter of incidents for 2012
relate to vehicles, with the majority being traffic offences.
MC
Option 2 – shared working proposal with BCKLWN (reactive
monitoring only)





BCKLWN are apparently investigating wireless options for their
cameras. It is possible to still move forward with this proposal
with continuing to use optic fibres. The Working Party would like
to see the service continue and can put options forward to
Cabinet for a decision. As part of this process all options need to
be considered and noted.
MB asked if there is a reasoned argument to keep it and what is
it going to achieve. It was reported that stakeholders have
indicated they would like it to continue and usage data is
included in the report. Lots of people including the Chamber of
Trade would also like to see it retained.
BH said that there is public perception as well as the Police
making use of the system and it has worked well over the years.
ACR commented that under new licensing laws has been told
that CCTV would be crucial in terms of their work so this could be
another case for keeping the service. NB would question the
level of effectiveness of this as CCTV did not provide enough
cover of individual premises. BH felt in terms of licensing this
has been very useful in Sheringham.
MC distributed copies of emails received from occupants of the
Fakenham Industrial Estate. ACR commented that CCTV has
been found to be very effective on the industrial estate in terms
of picking up fly tipping. However, we would need to seek to
recover costs from businesses the future if these cameras were
to remain.
Risks:


In considering this option, a ‘proof of concept’ test would also
need to be undertaken to ensure it would work at a one off
additional cost of approx. £1,600 to £1,800. This test would need
to be done if it is an option we are recommending to Cabinet.
Second bullet point under risks – figure should read 100%. MC
to reword.
MC
Option iii- Retain in-house


Re costs - if the service went to KL then would have to wait for a
few years before going wireless and this would incur an
additional capital cost at that time.
BH would personally recommend wireless but Cabinet would
have to make a decision. MB expressed concern about the cost
and commented that he wouldn’t like this committee’s
2
CCTV Working Party
4 July 2013
Final
11


recommendation to go forward on a unanimous basis as he
doesn’t agree with spending that much money.
It was noted that it would need to be discussed at Scrutiny
Committee before going to Cabinet.
The Terms of Reference for this group say look at options to
reduce the cost of the service and consider alternative working
arrangements and submit recommendations.
Risks:



It was noted that by having wireless could bring a possible
reduction in picture quality. DE said that GYBC have said that
there is just a slight delay. It was suggested that someone
should visit GYBC to look at their set up – ACR/BH expressed in
interest in attending. MC to contact GYBC re arranging a visit
next Thursday afternoon.
There needs to be certainty that a system will work and need
some evidence of it working in rural areas – MC can do some
research on this.
MC to update risks that are relevant to all options.
ACR/BH
MC
MC
Option 3 – The discontinuation of the service





6.
MB very concerned about decommissioning costs of £136k. MC
to obtain a breakdown.
On the revenue saving – that is real and is not incorporating
support services costs. The saving includes staffing costs,
premises costs (mainly electricity) and supplies and services
costs, the largest elements of which relate to the BT line rental
costs (£56k) and the maintenance contract costs. Also won’t
have to spend £50k on capital upgrade of cameras.
If kept in-house then it would be cheaper to keep the service at
Fakenham than to move it to Cromer.
It was noted that under discontinuation of service, the employee
costs should read £90k because of pensions, thereby reducing
the overall saving by £5k.
Regarding the number of incidents recorded – MG suggested
changing this graph to a pie-chart to show percentages.
MC
MC
DRAFT REVIEW DOCUMENT


Group to provide comments on document and FreeClix
document by 12 July 2013 to ACR. Any comments made should
also be copied to MC. Comments will be collated and appended
as part of the minutes of the next meeting so that they form part
of the public records
MC to complete and circulate in time for the next meeting.
ALL
MC
7.
DATE OF NEXT MEETING
23 July at 2.00 pm in the Committee Room.
3
CCTV Working Party
4 July 2013
Final
12
COMMENTS AND AMENDMENTS TO THE DOCUMENT
RECEIVED FOLLOWING THE MEETING
Councillor Lindsay Brettle:


NNDC is under an obligation to prevent crime and the general
perception - particularly from TV programmes - is that CCTV
provides this and is here to stay.
Options: I do not support any of the conclusions as written on
page 28. We discussed in detail possible economies (financial
contributions from town councils and beneficiaries of individual
cameras; limiting of monitoring of cameras, etc.). Thus retain the
in house service, page 21 iii, with all possible economies till the
wireless option is confirmed as viable and financially realistic.
Councillor Brian Hannah:





My view is that we are committed to keeping the CCTV which we
have, and I will not have a problem with all present town councils
which have CCTV being charged one overall figure, £2000 which
I think was mentioned, even though some area's may have more
camera's.
Whatever has been said against keeping the cameras they are
not only of use in the observation of some crime and the use
when large crowds gather i.e. Carnivals etc., there is also the
deterrent factor which in many ways cannot be quantified.
Sheringham had considerable problems with ASB when the
cameras were first introduced; this with the designated drinking
area has made a huge difference in the town.
Ideally I would like to see the Wireless option, but feel in reality
this would be difficult to finance.
Again where cameras are not fulfilling their potential I would not
have problems getting rid of them, but close regard must be
taken in regards to Section 17 Crime and Disorder issues before
that happens.
4
CCTV Working Party
4 July 2013
Final
13
Agenda item 10
Agenda Item 2__
NORTH NORFOLK BIG SOCIETY FUND GRANTS PANEL
Minutes of the meeting of the Big Society Fund Grants Panel held on Monday 8 July
2013 at the Council Offices, Holt Road, Cromer at 15.30pm.
Members Present:
Officers in
Attendance:
1.
Mr T Ivory
Mr B Jarvis
Mr R Reynolds
Mr S Ward
Mrs V Uprichard (sub)
The Coast & Communities Partnership Manager, the Health
Improvement Officer and the Democratic Services Team leader
APOLOGIES FOR ABSENCE
Mr P High, Mr J Wyatt, Mrs P Grove-Jones
2.
TERMS OF REFERENCE
Mr T Ivory thanked everyone for attending. He reminded Members that this was the
first meeting under the new process and without the involvement of the Norfolk
Community Foundation. The Coast and Communities Partnership Manager outlined
the terms of reference for the Panel and explained that grants could be awarded up
to a maximum limit of £15,000. Mr Ivory added that the Panel could impose specific
conditions when approving an award to ensure that the project was viable.
Members were reminded that a conflict of interest did not arise when an application
came from their ward. A conflict would only occur if the member had a direct link to
the organisation making the application.
AGREED
To approve the Terms of Reference.
3.
APPOINTMENT OF CHAIRMAN AND VICE CHAIRMAN
The Terms of Reference stated that the Panel would be chaired by the Cabinet
Member for Localism and the Big Society. Mr T Ivory was therefore duly appointed as
Chairman. Mr Ivory then proposed that Mr P High be appointed as Vice Chairman.
This was seconded by Mr R Reynolds and agreed by the rest of the Panel.
4.
DECLARATIONS OF INTEREST
None
5.
REPORTS
Big Society Fund Grants Panel
1
08 July 2013
14
The Health Improvement Officer introduced the monitoring report from the December
meeting of the Big Society Board. She said that there was nothing of concern.
Cromer skate park had still not been paid their grant as there were issues regarding
the lease. It had been agreed that the grant would be held over from last year’s fund.
The Coast and Communities Projects Manager added that it was important that the
Big Society Fund received recognition when projects were completed. He referred to
the publicity leaflet produced by the Stalham Brass Band as a good example. Mr B
Jarvis said that he had some concerns about this project. He said that the leaflet
implied that the Big Society Fund was paying for tuition and he wondered who the
band was accountable to on an educational front. The Coast and Communities
Project Manager replied that it was likely that the best way of promoting brass bands
was through schools and that the tuition aspect was related to increasing access to
instruments.
Mr R Reynolds agreed with the comments regarding positive publicity. He said that it
was important that the public were aware of the Fund and the grants that had been
awarded. Mr Ivory added that the Council needed to keep retain an element of
control over the publicity process and it was now a condition of any grant awarded
that the Council would be involved. The Health Improvement Officer said that the
Norfolk Community Foundation was still responsible for projects that were funded
during the first year of the fund but that the Council would have more control from
now on.
The Coast and Communities Projects Manager outlined the new application pack to
the Panel. He explained that the application form had been completely revised and
feedback so far confirmed that it was simple to use. Guidance notes were included to
ensure that the process was easier. Mr B Jarvis commented that it was still a large
form and he was concerned that smaller projects may be deterred by this. The Health
Improvement Officer replied that it was already apparent that applicants were trying
to involve their local communities in the application process much more than
previously.
6.
CONSIDERATION OF APPLICATIONS
The Health Improvement Officer explained that 16 applications had been received for
the Big Society Fund for this round. One of the applicants was based outside the
area so had not been put forward for consideration. Of the remaining submissions,
there were four groups:
Village hall refurbishments - £45000
Play equipment - £58,000
Staffing costs - £58,000
Others - £27,000
£225,000 was the total available for the fund for the 2013/2014 year.
The Chairman suggested that the applications were considered in groups under the
above themes. It was agreed that this approach would make the process simpler.
Edgefield Village Hall
The Health Improvement Officer said that there had been a lot of community
consultation for this project and they had demonstrated the difference that an award
would make. The Environment Projects Agency had confirmed that they would be
offering an award but that it would be up to a maximum of 90% of the cost of the
project, hence the application to the Big Society Fund.
Big Society Fund Grants Panel
2
08 July 2013
15
The Chairman queried the viability of the village hall. He was concerned that their
reserves were limited and that the project may not be sustainable long term. The
Health Improvement Officer said that the applicants were confident that their fee
income would cover their ongoing costs and also that insulating the hall would make
it more energy efficient, thus reducing their expenditure further.
The Chairman proposed that they were offered the shortfall in funding up to £5000.
AGREED
To award funding up to a maximum of £5000. The final amount would depend on the
grant ward by the Environmental Projects Agency.
Sculthorpe Village Hall
The Health Improvement Officer outlined the application. Mr R Reynolds and Mr S
Ward confirmed that the hall was very well used by the local community. The
Chairman queried why the applicants were not contributing more from their own
reserves. The Health Improvement Officer confirmed that there were reserves in
place but that they were not large and were used to cover bills.
The Chairman asked whether a grant at the lower end of their request would be
sufficient. The Health Improvement Officer said that it would be enough to get the
project going.
AGREED
To award a grant of £5000.
Little Snoring pre-school
The Health Improvement Officer explained that this organisation had applied to the
Big Society Fund previously and had not been successful due to the poor quality of
the application. She said that this submission was much better. It was focussed
around the pre-school and young children.
The Chairman was concerned that as it was education-based rather than communitybased it may not be appropriate for the Big Society Fund. The Coast and
Communities Projects Manager said that pre-schools always struggled to get funding
and it was a worthwhile facility for elements of the community. In response to a
question from Mr B Jarvis regarding income for the pre-school, the Coast and
Community Projects Manager said that it came from fees and grants. Mrs V
Uprichard was pleased to see that the pre-school catered for disadvantaged and lowincome families.
The Chairman asked whether there was a village hall in Little Snoring. Mr S Ward
confirmed that there was not. Mr R Reynolds said that he felt that the sum requested
was very large. In response to a question from the Chairman regarding the
availability of the pre-school building for other community activities, the Health
Improvement Officer said that it was set up as a pre-school and would be difficult to
adapt.
AGREED
Big Society Fund Grants Panel
3
08 July 2013
16
To defer a decision, pending the provision of more information regarding wider
community use of the building
West Runton Scout Group
The Health Improvement Officer informed the Panel that she had requested more
information from the applicants regarding the use of the hall by the wider community.
There were also some concerns about the group’s ability to raise additional funds. Mr
R Reynolds commented that there did not appear to be any evidence of the total
project cost. Mrs V Uprichard said that the project did not appear to benefit the wider
community.
AGREED
Not to award a grant at this time. The project did not sufficiently meet the aims of the
North Norfolk Big Society Fund, particularly in relation to local community need and
wider community benefit. The main beneficiaries of the project would be those
belonging to a membership organisation. There were also concerns that due to the
scale of the project, there could be problems securing additional funding within the
award timeframe.
Wells Community Hospital trust
The Health Improvement Officer explained that the applicants were seeking funding
for a part-time post to administrate a new dementia hub. The project had been
awarded capital funding but no revenue funding.
The Chairman said that he was concerned that it contravened the criteria of the Fund
as it was predominantly for core staff costs. The Health Improvement Officer said that
the organisation had requested the funding for one year and the intention was that
future funding would come from hiring out facilities.
Mr R Reynolds said that it was a very good project but that he also had concerns that
any grant award would go towards funding staff costs.
AGREED
Not to award a grant at this time. The Panel agreed that the application was outside
the scope of the Fund as it was predominantly for core staff costs, with potential
ongoing revenue costs.
Acorn Road Play Area, North Walsham
The Health Improvement Officer explained that this application effectively sought
funding for play equipment that would be installed on Council-owned land and which
would need to be maintained by NNDC. She advised the Panel that it would be more
appropriate for the application to be considered as part of the Council’s allocated
capital play fund.
AGREED
Not to award funding as there were more appropriate sources of funding available.
Big Society Fund Grants Panel
4
08 July 2013
17
The Local Community Smallholding, Waxham
The Panel were advised that the application was for core staff costs. It was a new
organisation and so it could not be ascertained whether it would be sustainable in the
long-term.
The Panel liked the project and were keen to offer alternative means of support.
AGREED
Not to award funding as the application was outside the scope of the Fund. The
organisation would be invited to meet with Council representatives to discuss
alternative means of support.
Hickling Social Innovation Project
The Health Improvement Officer informed the Panel that this application was for core
staff costs. There was also no evidence of community need or consultation with the
local community.
AGREED
Not to award funding. The application was outside the scope of the Fund and there
was insufficient evidence of community need.
The Atrium, North Walsham
This application was predominantly for core staffing costs, with potential ongoing
revenue costs. The Panel queried the need for a paid post to recruit volunteers. Very
little information had been provided about the role of the volunteers.
AGREED
Not to provide funding as the application was outside the scope of the Fund.
Alternative support would offered to the organisation.
Blakeney Parish Council
The Health Improvement Officer advised the Panel that the application was for play
equipment for the over 12 age group. The project was seeking a contribution that
would go towards the cost of the equipment and installation.
The Chairman felt that the overall cost of the project was very high and that there
seemed to be a significant shortfall in funding. He also commented on the high level
of reserves held by the Parish Council and wondered if they should be expected to
contribute more.
AGREED
Not to provide funding. The Panel felt that the funding already committed by the
Parish Council and through s106 agreements totalled a significant amount and that
this was sufficient to fund a play area suitable for the size of the village. They also felt
that there had been little community engagement and that if a through consultation
was undertaken with local residents, it was likely that the project and the associated
costs could change.
Big Society Fund Grants Panel
5
08 July 2013
18
Binham Village Hall
This application was for the second phase for a play area in the village. Phase one,
which was aimed at younger children, had been successfully completed in January
2013. The Big Society Fund had contributed £10,000 to phase one. The village was
now hoping to purchase play equipment for older children and they had ensured that
local children had been involved in planning, designing and raising funds for the play
area.
The Panel felt that this second phase was essentially part of the same initial project
that they had already awarded £10,000 towards in 2012.
AGREED
Not to provide funding. A grant of £10,000 had been awarded in 2012 and the Panel
felt that although this was a second phase, it essentially formed part of the same
overall project.
Higginbottom Recreational Charity
The Health Improvement Officer informed the Panel that the application was
specifically for play equipment for older children. Community consultation had shown
that the play area was valued and that new equipment would be appreciated. No
evidence had been provided to indicate why the chosen equipment had been
selected and whether the community was involved in choosing it.
AGREED
Not to provide funding at this time. No evidence had been provided demonstrating
the need for new play equipment, the benefit to the wider community and the source
for the remaining funding that was required.
Norfolk and Suffolk 4x4 Response
The project covered Norfolk and Suffolk and enabled members to use their own 4x4
vehicles to complement and support the emergency services, statutory and voluntary
organisations during severe weather and other emergency situations. The application
was for the purchase of 20 sets of Personal Protection Equipment (PPE) and six of
First Responder sets for use by members in a major flood or water based incident.
The Panel were very supportive of the project and felt that it was needed in North
Norfolk.
AGREED
To award funding of £1200.
Fakenham Junior School
The application was for replacement school railings. The school wanted to enhance
the appearance of the railings and commemorate the schools 100th anniversary.
Children and the local community had been involved in producing the template for the
railings.
Mr B Jarvis queried whether the project fell within the remit of the Fund as it was not
for the benefit of the wider community.
Big Society Fund Grants Panel
6
08 July 2013
19
AGREED
Not to provide funding. The Panel felt that the project did not sufficiently meet the
aims of the Fund, particularly in relation to the long term wider community benefit.
There was also a lack of evidence of community need and engagement in relation to
the different elements of the project.
Active Fakenham
The Health Improvement Officer explained to the Panel that this was an umbrella
organisation which worked with local clubs, organisations and businesses to initiate,
organise and promote activities that support and enrich the health and wellbeing of
Fakenham’s residents and visitors. She pointed out that the application was for
capital and that Active Fakenham did not own the land that the equipment would be
sited on.
Mr R Reynolds, local member for Lancaster North, said that he not heard of the
project and was not aware of the land that it would be sited on. Mr S ward, local
member for Lancaster South, said that he had concerns about the long term
sustainability of the project. Mr B Jarvis added that he was wary when projects were
aimed at initiating or promoting events rather than directly facilitating them.
AGREED
Not to provide funding. The project did not sufficiently meet the aims of the North
Norfolk Big Society Fund, particularly in relation to long term wider community
benefit. There was also a lack of evidence of community need and engagement in
relation to different elements of the project.
The Meeting closed at 6,25 pm
_______________
Chairman
Big Society Fund Grants Panel
7
08 July 2013
20
Agenda Item No____11________
BUDGET MONITORING REPORT 2013/14 – PERIOD 4
Summary:
This report summarises the budget monitoring position
for the revenue account to the end of July 2013.
Options considered:
Not applicable
Conclusions:
The overall position at the end of period 4 shows a
forecast under spend of £14,000 for the current financial
year on the revenue account.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and
the current budget monitoring position.
2) Cabinet agree and recommend to Full
Council the updated budget as set out in
section 5.1, Table 3.
3) Cabinet agree and recommend to Full council
a budget of £65,000 for PC and Laptop
replacement as outlined in paragraph 6.4
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(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 2013 to the budget for 2013/14 as approved by Full Council in
February 2013
21
1.2.
The base budget for 2013/14 included savings and additional income of
£163,097. This report includes the latest position on both of these areas.
2.
Budget Monitoring Position – Revenue Services
2.1
The general fund summary at Appendix A shows the high level budget
monitoring position at 31 July 2013 which shows a year to date variance of
£728,974 underspend. Appendix B provides further details of the individual
service variances.
2.2
The following tables provide reasons for the more significant variances along
with those which are anticipated to have a full year effect.
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
Assets and Leisure
Car Parking – Additional Season ticket income of (£3,290)
and excess parking (£4,600). For the year to date additional
car parking income is (£69,304). With seasonal adjustments
taken into account the full year effect (FYE) is anticipated to
(£70,000) additional income.
Sports Centres – (£39,918) invoice not yet received for
hall hire from schools for 12/13. Overall income levels
are up by approximately £6,000 compared with this time
last year, however the income levels are down
compared to the current profiled budget. £9,287 of this
relates to charges while £2,431 relates to sales of food
and drink. The income from charges is down due to
lower user numbers at Cromer and Stalham Dual Use
Sports Centres (DUSCs). Officers have now developed
a promotional package and a wider range of school
holiday opportunities to drive user numbers up, but there
is anticipated to be a shortfall in predicted income of
£20,000 by the end of the year.
Estimated
Full Year
Effect
(FYE)
£
(78,888)
(70,000)
(23,903)
60,000
(18,717)
(36,247)
The new lease arrangements for the Dual Use Sports
Centres (DUSC) have yet to be finalised but the
agreement with North Walsham is expected to be signed
in September. Work is on-going in relation to the
agreements with Cromer and Stalham although it is
unclear at this point if these agreements will be
completed and signed in the current financial year. This
delay means that the anticipated savings for 2013/14 of
£40,000 are unlikely to be realised in the current year
although the position will continue to be monitored and
an updated position will be provided as part of the period
6 budget monitoring report.
Community and Economic Development
Planning Policy – The Community Infrastructure Levy (CIL)
22
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
post has not yet been filled, and it is not anticipated to be
filled in the near future. If the post is not filled the FYE is
(£36,247). Although this will be off set by a reduction in the
contributions from earmarked reserves.
Community and Localism – Grants awarded in 2012/13 via
the Big Society Fund and Coast and Community Partnership
totalling (£111,128) have not yet been claimed.
Second Homes Grant – (£35,288) There has been an
increase in the value of second homes monies received from
Norfolk county Council (NCC). The FYE effect is expected to
be an increase in income of (£100,823) which will be
transferred to reserves.
Development Management
Development Management – (£8,500) Delays in appointing a
temporary planning assistant. This post is being funded from
the Planning Reserve an adjustment will be required to
ensure that the funding is available to fund the balance of the
post in 2014/15. (£8,710) Other salary savings due to vacant
post it has been agreed that this can be used to extend a
temporary contract to August 2014. The balance is made up
of minor variances.
(146,416)
Estimated
Full Year
Effect
(FYE)
£
(100,823)
(47,244)
Increase in planning fee income (£27,291), which is being
ring fenced up to £35,000 to extend Temporary Enforcement
officer post for 2014/15. This is to continue the good
progress made during 2012/13 on enforcement matters.
Further review is pending when the new Head of
Development Management takes up their position in August
2013.
Building Control and Access – Salaries underspend (£18,130)
because of a post held vacant to mitigate predicted shortfall
in income.
Increase in income (£8,252) all minor variances. Overall
service priorities will be managed within cash limits of the
budget.
Environmental Health
Environmental protection - There are currently two vacant
Environmental Protection officers posts vacant (£35,476 inc
on costs). Attempts to fill these posts have been
unsuccessful. An element of this underspend is to be used to
fund any short term agency staff. After funding of agency
staff there is expected to be a saving of (£25,000).
Income – Rechargeable costs in respect of works in default
to demolish Briggate Mill (£25,998). The owner has been
identified and invoiced, but as yet the invoice remains unpaid.
23
(26,832)
0
(61,474)
(25,000)
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Effect
(FYE)
£
Given the uncertainty of the length of time it may take to
recover these costs, no FYE has been noted. This was
funded from reserves in 12/13, any reimbursement of costs
will be transferred back to the general reserve. The Council
will pursue action to recover these costs through legal
remedies if the invoice is not paid.
Waste collection and Disposal – (£13,000) outstanding
creditor provision from 12/13 .
Underspend on commercial disposal costs (£12,559) as
result of overprovision for disposal of waste from boat
compounds. FYE (£10,000). Balance comprises of refund
(£3,054) from NCC re incorrect trade waste disposal charges.
Financial Services
Local Taxation – (£49,882) additional monies from Central
Government and Norfolk County Council for implementation
of Council Tax scheme. It is anticipated that this will be
spent across the remainder of the year on ICT and staffing
requirements. Balance is minor variance.
Corporate Finance – Staff savings due to vacant posts and
recruitment advertising. The post of Trainees Accountant
remains vacant and options for replacement are being
considered. The Chief Accountant post has now been filled.
Organisational Development
Registration Services – Police and Crime Commissioner
election postage costs, yet to be charged ( £34,481)
Postal charges relating to County Council elections (£7,014)
Corporate
Legal Services - Salaries and on-costs £7,956 as result of
fixed term contract. This will be funded from Legal Services
earmarked reserve. Fee income currently lower than
anticipated £10,638. It is still anticipated that budget income
for the year will be achieved.
TOTALS
(35,419)
(10,000)
(49,614)
0
(18,140)
0
41,495
0
17,195
(447,957)
(182,070)
3.
Budget Monitoring Position – Savings and Additional Income
3.1
The budget for 2013/14 included savings and additional income totalling
£163,097 within the service areas; the revised figure for the current year is
now £123,397 although it is anticipated that apart from the Dual Use Sports
Centres (DUSC) the remainder of the savings will be on target for 2013/14.
The following table shows a summary of the savings across each of the
24
service areas. The detail for each of the service savings is included at
Appendix C. Table 2 below summaries the current position for each service
heading.
Table 2 – Savings and Additional
Income 2013/14
Assets Coastal Defence & Leisure
Customer Services
Development Management
Environmental Health
Financial Services
Organisational Development
Corporate
Total
2013/14
Updated
Budget
£
23,000
24,740
2,150
22,507
19,700
5,000
26,000
123,097
4.
Treasury Management Position
4.1
The budget for 2013/14 anticipated that a net total of £392,900 would be
earned in interest. This assumed an average balance of £24m at a rate of
1.65%.
4.2
At the end of period 4, a total of £125,864 had been earned resulting in a
shortfall against the year to date budget of £6,882. The rate of interest
achieved was 1.62% from an average balance available for investment of
£23.2m.
4.3
Despite there being a small year to date shortfall in interest received, it is
anticipated that £386,000 will be earned in the year which is close to the full
year budget and will result in a shortfall of £6,000. This will be achieved from
an average balance of £24.1m at an average rate of 1.62 %.
4.4
The rate of interest on the long-term investment of £5m in the Local
Authorities pooled property fund (LAMIT) in the first 4 months was in line
with budget and is anticipated to earn around 5% over the year. Units in the
fund were purchased for £2.2348p, and at the end of June the price had fallen
to £2.2285p (most up-to-date price at time of preparing report). This equates
to a small fall in value “on paper” of £14,000 compared to the purchase
amount, and would only be realised if the holding is sold.
4.5
The rate of interest achieved on term deposits was 0.56% to period 4 which is
0.2% below the budget figure, reflecting the very low interest rates currently
available.
5.
Budget Monitoring Position - Summary
5.1
The following table provides a summary of the full year projections for the
service areas along with an updated use of reserves figure where applicable.
Table 3 - Summary of Full Year Effects
2013/14
25
Estimated
Full Year
Effect
Service Areas (Table 1)
Non Service Expenditure (Para 4.3)
Transfers to/(from) reserves
Community and Economic Development
Community and localism
Environmental Health
Total Impact - Transfer to General Reserve
(£)
(182,070)
6,000
36,247
100,823
25,000
(14,000)
6.
Budget monitoring position – Capital
6.1
Members were provided with an updated capital programme for both current
and future years as part of the 2012/13 final accounts report to Cabinet in
June 2013. Appendix D shows the latest position for the updated programme
together with details of the individual schemes spend up to Period 4.
6.2
The following sections provide an update on the capital programme, including
a request for virement between two capital schemes, and a request for
additional funding for the replacement of personal computers.
6.3
Sheringham Prom Lighting – In order to complete the capital scheme for the
replacement of lighting along Sheringham Prom there is a commitment to
spend £12,000. At the current time the budget available for this scheme
stands at £10,502, and as such it is requested that a virement of £1,500 be
undertaken from the Refurbishment Works to Seaside Shelter’s capital
budget, in order to fully finance the works.
6.4
Personal Computer and Laptops will be replaced with upgraded mobile
technology - There is currently a rolling capital programme budget for the
replacement of personal computers of £20,000 per annum. However, from
April 2014 Windows XP will no longer be supported, and there is therefore a
requirement across the authority to replace all personal computers and
laptops which currently use XP, with new Windows 7 pc’s. This would ensure
that all computers are up to date, secure and fit for purpose. It will also help
to address the issue of slow boot up times currently being experienced by a
number of members of staff, as identified at the Staff Briefing sessions. In
total there are 133 personal computers, and 20 laptops that will need to be
replaced, which would require a capital investment to £65,000. Approval is
therefore sought for a budget of £65,000 to be financed from capital receipts,
in relation to this scheme.
7.
Conclusion
7.1
The revenue budget is showing an estimated full year under spend for the
current financial year of (£14,000). The overall financial position continues to
be closely monitored and it is anticipated that the overall budget for the
current year will be achieved.
8.
Financial Implications and Risks
8.1
The detail within section 2 of the report highlights the more significant
variances including those that are estimated to result in a full year impact.
26
8.2
The budget for 2013/14 included service savings and additional income
totalling £163,097 and whilst there have been some in the current year that
have been reduced, 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 full year effects (FYE) shown in Table 1 £162,070 will be transferred to
earmarked reserves as shown in Table 3. The impact of this will be that the
budgets effected will reduce and reserves will increase. By taking these FYE
adjustments at the end of the reporting period, a constantly updated budget is
achieved, rather than as previously done 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.
27
General Fund Summary Report for Period 04 Year 2013/2014
Full Year
Budget
£
Net Cost Of Services
Savings To Be Identified
Assets & Leisure
Clt / Corporate
Customer Services
Community, Econ Dev & Coast
Organisational Development
Environmental Health
Finance
Development Management
YTD Budget
£
Actuals YTD
£
Total
YTD Variance Commitments
£
£
Appendix A
Remaining
Budget
£
(23,000)
2,381,160
596,416
716,994
4,214,138
288,473
4,334,896
3,110,755
1,029,022
0
701,894
189,600
266,933
402,236
(532)
381,306
1,228,939
346,526
0
606,802
191,205
202,636
175,384
18,589
258,397
1,094,730
263,573
0
(95,092)
1,605
(64,297)
(226,852)
19,121
(122,909)
(134,209)
(82,953)
0
821,190
3,515
7,242
187,693
259
2,821,748
6,563
4,989
(23,000)
953,168
401,696
507,116
3,851,061
269,625
1,254,751
2,009,462
760,460
Net Cost Of Services
16,648,854
3,516,902
2,811,316
(705,586)
3,853,199
9,984,339
Non Service Expenditure/Income
Precepts Of Parish Councils
Interest Receivable
External Interest Paid
Capital Charges
Retirement Benefits
Revenue Financing for Capital
Contributions To/From Reserves
1,457,091
(392,490)
0
(4,803,930)
266,577
400,000
141,120
728,520
(132,746)
0
(764,176)
0
0
728,520
(125,864)
349
(764,188)
0
0
0
0
6,882
349
(12)
0
0
0
0
0
0
0
0
0
0
728,571
(266,626)
(349)
(4,039,742)
266,577
400,000
141,120
Non Service Expenditure/Income
(2,931,632)
(168,402)
(161,183)
7,219
0
(2,770,449)
Income
Council Taxpayers
Central Government Grants
Non-Domestic Rate Income
(9,357,207)
(4,360,014)
0
(3,401,809)
(2,313,763)
0
(3,432,356)
(2,313,823)
0
(30,547)
(60)
0
0
0
0
(5,924,851)
(2,046,191)
0
(13,717,221)
(5,715,572)
(5,746,179)
(30,607)
0
(7,971,042)
1
(2,367,072)
(3,096,046)
(728,974)
3,853,199
(757,152)
Income
(Surplus) / Deficit
28
Service Area Summaries 2013-14 p4
Appendix B
Assets & Leisure
Cost
Centre
R200
R200A
R201
R202
R203
R204
R262
R262A
R300
R301
R302
R303
R304
R305
R306
R309
R310
R312
R314
R315
R318
R397
R414
Full Year Budget
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handy Man
Parklands
Administration Buildings Svs
Property Services
Parks & Open Spaces
Foreshore
Community Centres
Sports Centres
Leisure Complexes
Other Sports
Recreation Grounds
Pier Pavilion
Foreshore (Community)
Woodlands Management
Cromer Pier
Public Conveniences
Investment Properties
Leisure
Cctv
Total Assets & Leisure
Full Year Budget
£
(1,260,909)
64,621
(83)
2,840
10,057
(4,555)
78,137
0
481,346
212,634
11,038
294,316
746,818
124,218
12,738
106,347
390,666
176,236
35,871
537,354
115,118
9,000
237,352
YTD Budget
YTD Actuals YTD Variance
£
£
£
(480,497)
(559,385)
(78,888)
(23,433)
(30,533)
(7,100)
18,244
28,038
9,794
964
964
0
3,692
(577)
(4,269)
(27,922)
(31,961)
(4,039)
124,574
126,543
1,969
396
2,820
2,424
140,197
140,579
382
71,950
73,498
1,548
3,627
1,804
(1,823)
67,936
44,033
(23,903)
217,078
209,817
(7,261)
58,910
68,173
9,263
3,540
2,599
(941)
80,127
88,653
8,526
169,984
174,811
4,827
57,246
45,240
(12,006)
24,322
35,404
11,082
194,734
182,842
(11,892)
(82,861)
(74,341)
8,520
16
(1,739)
(1,755)
79,070
79,520
450
2,381,160
701,894
606,802
(95,092)
Commit-ments
£
91,143
27,305
4,163
0
0
0
51,430
0
263,560
2,572
495
45
5,084
484
6,486
0
190,425
4,335
873
155,586
2,955
131
14,118
Remaining
Budget
£
(792,667)
67,849
(32,284)
1,876
10,634
27,406
(99,836)
(2,820)
77,207
136,564
8,739
250,238
531,917
55,561
3,653
17,694
25,430
126,661
(406)
198,926
186,504
10,608
143,714
821,190
953,168
Clt / Corporate
Cost
Centre
R450B
R460A
R481
Full Year Budget
Members Services
Corporate Leadership Team
Legal Services
Total Clt / Corporate
Full Year Budget
£
562,666
0
33,750
YTD Budget
YTD Actuals YTD Variance
£
£
£
187,570
174,941
(12,629)
(9,208)
(12,169)
(2,961)
11,238
28,433
17,195
596,416
189,600
29
191,205
1,605
0
3,320
195
Remaining
Budget
£
387,725
8,849
5,122
3,515
401,696
Commitments
£
Community, Econ Dev & Coast
Cost
Centre
Code
R101
R112A
R307
R308
R330
R333
R340
R341
R391
R398
R399
R402
R412
R415
R472
Full Year Budget
Planning Policy
Health
Arts & Entertainments
Museums
General Economic Development
Tourism
Coast Protection
Pathfinder
Regeneration Management
Housing (Health & Wellbeing)
Housing Strategy
Property Information
Environmental Strategy
Community And Localism
Coastal Management
Total Community, Econ Dev & Coast
Full Year Budget
£
(450,424)
0
141,270
41,587
419,465
125,208
1,393,091
67,697
0
1,190,074
1,127,841
91,829
84,755
(18,255)
0
0
0
39,627
0
47,590
8,588
74,209
0
0
0
7,319
1,673
8,687
0
0
Remaining
Budget
£
(260,961)
11,155
38,368
1,054
192,981
59,500
992,343
67,582
5,041
1,106,233
1,178,209
73,777
67,873
302,312
15,594
(226,852)
187,693
3,851,061
YTD Budget
YTD Actuals YTD Variance
£
£
£
28
(13,960)
(13,988)
92,084
79,847
(12,237)
129,336
133,507
4,171
12
(6,430)
(6,442)
2,576
3,346
770
10,364
5,834
(4,530)
13,292
11,763
(1,529)
16,382
11,975
(4,407)
2,859
(23,246)
(26,105)
Commitments
£
2,739
2,478
0
0
0
0
0
120
1,905
Remaining
Budget
£
24,121
154,971
254,494
6,430
35,874
25,246
(11,763)
(12,095)
29,838
(64,297)
7,242
507,116
YTD Budget
YTD Actuals YTD Variance
£
£
£
228,589
181,345
(47,244)
42,184
37,606
(4,578)
48,685
42,602
(6,083)
27,072
690
(26,382)
(4)
1,330
1,334
Commitments
£
3,003
0
163
240
1,583
Remaining
Budget
£
483,415
93,080
114,699
72,179
(2,913)
4,989
760,460
YTD Budget
YTD Actuals YTD Variance
£
£
£
(170,746)
(189,463)
(18,717)
0
(11,155)
(11,155)
63,112
63,275
163
40,528
40,533
5
174,828
178,894
4,066
56,068
57,120
1,052
328,515
326,539
(1,976)
0
115
115
20
(5,041)
(5,061)
92,272
83,841
(8,431)
(52,016)
(57,687)
(5,671)
26,874
16,379
(10,495)
16,920
8,195
(8,725)
(174,151)
(320,567)
(146,416)
12
(15,594)
(15,606)
4,214,138
402,236
175,384
Commitments
£
Customer Services
Cost
Centre
Code
R261
R311
R372
R394
R411
R430
R481B
R481C
R481D
Full Year Budget
It - Support Services
Tic'S
Homelessness
Customer Services Housing
Transport
Publicity
Graphical Info System
Media & Communications
Customer Services - Corporate
Total Customer Services
Full Year Budget
£
12,900
237,296
388,001
0
39,220
31,080
0
0
8,497
716,994
266,933
202,636
Development Management
Cost
Centre
Code
R100
R102
R103
R121
R150
Full Year Budget
Development Management
Conservation & Design
Landscape
Building Control & Access
Planning Man And Comm Support
Total Development Management
Full Year Budget
£
667,763
130,686
157,464
73,109
0
1,029,022
346,526
30
263,573
(82,953)
Environmental Health
Cost
Centre
Code
R111A
R114
R115
R117
R117B
R118
R119A
R120
R151
R316
R317
R413
R420
Full Year Budget
Commercial Services
Rural Sewerage Schemes
Travellers
Licensing
Street Signage
Pest Control
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection And Disposal
Cleansing
Community Safety
Civil Contingencies
Total Environmental Health
Full Year Budget
£
464,536
353,303
101,120
67,472
39,384
30,927
665,733
57,018
5,200
1,664,128
732,097
24,650
129,328
Commitments
£
5,344
0
425
7,305
250
89
3,942
7,921
5,842
2,270,931
519,599
0
100
Remaining
Budget
£
308,942
176,713
51,973
30,300
34,540
24,737
514,301
31,173
7,286
(90,791)
55,892
16,826
92,859
(122,909)
2,821,748
1,254,751
YTD Budget
YTD Actuals YTD Variance
£
£
£
145,368
95,754
(49,614)
556,722
551,006
(5,716)
51,096
47,710
(3,386)
95,851
81,743
(14,108)
67,170
67,165
(5)
4
(513)
(517)
13,154
(4,986)
(18,140)
(36,544)
(49,616)
(13,072)
(1,836)
(22,560)
(20,724)
337,954
329,027
(8,927)
Commitments
£
846
15
0
0
0
0
5,702
0
0
0
Remaining
Budget
£
441,485
476,029
87,454
199,127
(65,585)
513
38,833
49,616
22,560
759,430
(134,209)
6,563
2,009,462
YTD Budget
YTD Actuals YTD Variance
£
£
£
6,798
(9,500)
(16,298)
(80,168)
(81,170)
(1,002)
(17,761)
(22,835)
(5,074)
90,599
132,094
41,495
Commitments
£
259
0
0
0
Remaining
Budget
£
31,341
81,170
(30,495)
187,609
259
269,625
YTD Budget
YTD Actuals YTD Variance
£
£
£
155,384
150,250
(5,134)
176,590
176,590
0
46,026
48,722
2,696
44,825
29,867
(14,958)
5,952
4,594
(1,358)
5,626
6,101
475
208,964
147,490
(61,474)
18,012
17,924
(88)
(3,860)
(7,928)
(4,068)
(480,593)
(516,012)
(35,419)
158,835
156,606
(2,229)
6,553
7,824
1,271
38,992
36,369
(2,623)
4,334,896
381,306
258,397
Finance
Cost
Centre
Code
R210
R211
R213
R214
R219
R251
R263
R263C
R450
R450A
Full Year Budget
Local Taxation
Benefits
Treasury Management
Discrectionary Payments
Non Distributed Costs
Benefits & Revenues Mgmt
Corporate Finance
Internal Audit
Central Costs
Corporate & Democratic Core
Full Year Budget
£
538,085
1,027,050
135,164
280,870
1,580
0
39,549
0
0
1,088,457
3,110,755
Total Finance
1,228,939
1,094,730
Organisational Development
Cost
Centre
Code
R260
R263B
R263D
R400
Full Year Budget
Human Resources & Payroll
Insurance & Risk Management
Policy & Performance Mgt
Registration Services
Total Organisational Development
Full Year Budget
£
22,100
0
(53,330)
319,703
288,473
(532)
31
18,589
19,121
Savings Summary - 2013/14
Ref.
Service
AL2
Assets and
Leisure
AL3
Assets and
Leisure
CS1
EH2
EH4
Customer
Services
Appendix C
Brief outline of
Saving/Additional
Income
Brief Outlione of Saving/Additional
income (Where applicable)
introduction of concessions
Car Parks
(refreshments, trailors etc) to some
concessions
of the car parks
Revised arrangements fir the DUSC
Dual Use Sports
(Cromer and Stalham) (in addition to
Centres
current review of NW)
Generating efficiencies through
maximising use of Front Office
Customer Services
Reception, Cabinet report December
2012
Reduction in establishment for
handyman function. (0.5fte).
Previously post used for waste
associated work (now within
contract) and street signs backlog of
work - mostly now complete
Environmental
Health
Handyman
Environmental
Health
Reduction in the recycling initiatives
budget, currently used for
promotional activities associated with
Recycling Initiatives
recycling and composting, previous
years spend has been less than level
budgetted.
2013/14
Budget
Savings
/Income
(15,000)
(15,000)
0
(40,000)
0
40,000
(24,740)
(24,740)
0
(9,007)
(9,007)
0
(6,500)
(6,500)
0
2013/14
32
2013/14
P4 Update Variance
Ref.
Service
F2
Finance
C1 (no
form)
Corporate
DM2
Development
Management
AL6
Assets and
Leisure
AL7
Brief outline of
Saving/Additional
Income
Brief Outlione of Saving/Additional
income (Where applicable)
Deletion of vacant Exchequer
Services Assisatant post.
Cessation of the publication of
Outlook
outlook.
Landscape contributions - not
Grants and contributions review
currently committed.
Staffing and Other
Budget
Savings
/Income
2013/14
P4 Update Variance
(19,700)
(19,700)
0
(26,000)
(26,000)
0
(2,150)
(2,150)
0
Reduction in the 13/14 contribution
Grants and contributions
fromreview
£6k to £3k then full amount
thereafter for the Folk on the Pier
(3,000)
(3,000)
0
Assets and
Leisure
Grants and
Contribution to Village Games event.
contributions review
(5,000)
(5,000)
0
OD1
Organisational
Development
Grants and
Norwich and Norfolk Racial Equality
contributions review Council
(5,000)
(5,000)
0
EH6
Environmental
Health
Community Safety - Remove
Grants and
contribution of £7k for funding
contributions review
analyst.
(7,000)
(7,000)
0
(163,097)
(123,097)
40,000
TOTAL
33
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current Estimate
Pre 31/3/12 Actual
Expenditure
Updated Budget 13/14
at Period 4
Actual Expenditure at
Period 4
Variance to 13/14
Updated Budget
Comments
Updated Budget 14/15 Updated Budget 15/16
£
Jobs and the Local Economy
0
0
Works have been progressing
on this scheme .
0
0
(26,723)
This scheme is currently on
hold pending the outcome of a
larger grant funding submission.
0
0
0
(100,000)
This scheme is currently on
hold pending the outcome of a
larger grant funding submission.
0
0
5,000
0
(5,000)
Works have been identified in
relation to this scheme.
0
0
207,758
153,923
1,778
(152,145)
This scheme is currently out to
tender, with tender documents
due back by the 20th August.
0
0
0
15,000
369
(14,631)
0
0
358,389
390,507
7,387
(383,120)
0
0
Annual programme
552,091
0
(552,091)
500,000
355,000
Annual programme
977,536
180,830
(796,706)
850,000
772,578
North Norfolk Enterprise Innovation Centre
50,000
Financed by;
NNDC (Capital Receipts)
50,000
Rocket House
Financed by;
NNDC (Capital Receipts)
77,084
Wells Sackhouse Refurbishment
Financed by;
Other Contributions
NNDC (Capital Receipts)
71,752
Maltings Wells
Financed by;
NNDC (Capital Receipts)
Carbon Reduction Scheme
Financed by;
NNDC (Cap Receipts - Carbon Reduction
Fund)
Car Park Resurfacing and Refurbishment
Financed by;
NNCD (Capital Receipts)
Public Conveniences (Plumbing and
Drainage)
Financed by;
NNCD (Capital Receipts)
10,295
39,705
0
(39,705)
26,928
50,156
5,240
(44,916)
45,029
26,723
0
0
100,000
68,379
77,084
27,752
44,000
100,000
100,000
73,379
73,379
361,681
361,681
15,000
Works are progressing on this
scheme.
15,000
748,896
Housing and Infrastructure
Housing Renovation Grants
Private Sector Renewal Grants
Financed by;
NNDC (Capital Receipts)
Disabled Facilities Grants
Financed by;
Specified Capital Grant
NNDC (Capital Receipts)
34
Although spend is currently low
it is anticipated that there will be
in an increase in completions
and approvals in the next few
months.
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current Estimate
Pre 31/3/12 Actual
Expenditure
Updated Budget 13/14
at Period 4
Actual Expenditure at
Period 4
Variance to 13/14
Updated Budget
Comments
Updated Budget 14/15 Updated Budget 15/16
£
Housing Associations
Financed by;
NNDC (Capital Receipts)
NNDC (Capital Projects Reserve)
Affordable Housing Contributions
Strategic Housing & Choice Based Lettings
System
Financed by;
NNDC (Capital receipts)
Capital Projects Reserve
Empty Homes
Financed by;
NNDC (Capital receipts)
Equity Loans
Financed by;
EERA Contribution
2,093,578
263,600
(1,829,978)
100,650
20,000
0
950
199,050
19,845
367,650
1,409,000
120,650
Projects within this scheme are
progressing.
0
0
(20,000)
0
0
1,935
(197,115)
0
0
27,155
0
(27,155)
0
0
121,445
3,869,410
446,365
(3,423,045)
1,350,000
1,127,578
1,103,354
45,646
0
(45,646)
40,000
220,000
37,028
2,995
494
(2,501)
0
0
691,976
726,655
326,936
(399,719)
Works are progressing on this
scheme, and several significant
contract payments have been
made to date.
0
0
67,498
10,502
0
(10,502)
Further works have been
identified, and funding has now
been confirmed.
0
0
Annual programme
113,950
6,700
200,000
200,000
47,000
47,000
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
1,409,000
40,023
5,023
35,000
1,418,631
1,418,631
78,000
45,000
33,000
35
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current Estimate
Pre 31/3/12 Actual
Expenditure
Updated Budget 13/14
at Period 4
Actual Expenditure at
Period 4
Variance to 13/14
Updated Budget
Comments
Updated Budget 14/15 Updated Budget 15/16
£
Cromer Pier and West Prom Refurbishment
Project
Financed by:
NNDC (Capital Receipts)
110
199,890
215
(199,675)
33,449
121,551
3,269
(118,282)
320,710
9,636,290
98,541
(9,537,749)
1,654,783
312,232
8,054
(304,178)
56,623
53,377
9,644
(43,733)
0
60,000
0
(60,000)
262
35,738
15,240
(20,498)
262
21,738
6,867
(14,871)
15,895,669
3,966,055
11,226,614
469,260
(10,757,354)
North Lodge Park
Financed by;
NNCD (Capital Receipts)
197,000
732
196,268
0
(196,268)
Big Society Fund
Financed by:
NNDC (Capital Receipts)
482,000
282,000
200,000
0
(200,000)
17,045
52,955
(0)
(52,955)
Refurbishment Works to the Seaside
Shelters
Financed by:
NNDC (Capital Receipts)
Cromer Coast Protection Scheme 982 and
SEA
Financed by:
Environment Agency Grant
Pathfinder Project
Financed by:
DEFRA Grant
Cromer to Winterton Scheme
Financed by:
Environment Agency Grant
200,000
200,000
155,000
Works have commenced, and
significant progress has been
made. Invoices are currently
awaited for works done to date.
0
0
0
0
443,000
0
Works are progressing.
0
0
Works are progressing.
0
0
0
0
The works on several chalet
blocks have been completed,
and the scheme is ongoing.
0
0
The works on the Doctors Steps
have been completed, and are
likely to come in significantly
under budget. Final invoices
are awaited.
0
0
483,000
220,000
This scheme is currently on
hold awaiting the outcome of
public consultation.
0
0
The first round of applications
for Big Society Fund Grants
have been processed, and we
would anticipate any capital
0
0
The scheme is currently on hold
pending agreement of the
design of the town centre
enhancement works.
0
0
The refurbishment works are
ongoing.
155,000
10,400,000
Works are progressing.
10,400,000
1,967,015
1,967,015
110,000
110,000
Coastal Erosion Assistance
Financed by:
Government Grant
60,000
Chalet Repairs
Financed by;
NNCD (Capital Receipts)
36,000
Doctors Steps
Financed by;
NNCD (Capital Receipts)
22,000
60,000
36,000
22,000
Localism
North Walsham Regeneration Schemes
Financed by:
NNDC (Capital Receipts)
197,000
482,000
70,000
70,000
36
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current Estimate
Pre 31/3/12 Actual
Expenditure
Updated Budget 13/14
at Period 4
Actual Expenditure at
Period 4
Variance to 13/14
Updated Budget
Comments
Updated Budget 14/15 Updated Budget 15/16
£
0
54,370
0
(54,370)
0
0
0
100,000
0
(100,000)
0
0
903,370
299,777
603,593
(0)
(603,593)
0
0
Trade Waste Bins/ Waste Vehicle
Financed by:
NNDC (Capital Receipts)
LPSA Grant
272,700
151,012
121,688
29,387
(92,302)
Replacment vehicles have been
purchased.
0
0
BPR EDM Project
Financed by;
Planning Delivery Grant/Housing and Planning
Delivery Grant
Capital Projects Reserve
NNDC (Capital Receipts)
422,788
282,248
140,540
1,609
(138,931)
The reception works have gone
out to tender, with tender
documents due back on the
28th August. Works are likely to
commence mid to late
September.
0
0
Personal Computer Replacement Fund
Financed by;
NNDC (Capital Receipts)
NNDC (RCCO)
204,282
144,282
20,000
18,721
(1,279)
Personal computers have been
purchased, and it is anticipated
that the budget will be fully
spent by the end of the financial
year.
20,000
20,000
215,933
16,494
0
(16,494)
0
0
62,593
12,407
0
(12,407)
0
0
31,600
2,410
0
(2,410)
0
0
142,916
163,240
23,071
(140,169)
0
0
Victory Swim and Fitness Centre
Financed by;
NNCD (Capital Receipts)
Play Areas
Financed by;
NNCD (Capital Receipts)
54,370
54,370
100,000
100,000
Delivering the Vision
Waste Management & Environmental Health
IT System
Financed by;
NNDC (Capital Receipts)
WPEG Grant
DEFRA Grant
194,784
77,916
16,682
5,967
400,139
160,646
43,636
232,427
131,514
83,486
17,427
Asset Management Computer System
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Asset Management Reserve)
75,000
Probass 3
Financed by:
Planning Delivery Grant/Housing and Planning
Delivery Grant
NNDC (Capital Receipts)
34,010
Procurement for Upgrade of Civica System
Financed by:
NNDC (Capital Receipts)
Other Grants (RIEP)
DWP Performance Standards Fund
60,000
15,000
5,600
28,410
306,156
222,397
53,800
29,959
37
Works are progressing.
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Scheme Total
Current Estimate
Pre 31/3/12 Actual
Expenditure
Updated Budget 13/14
at Period 4
Actual Expenditure at
Period 4
Variance to 13/14
Updated Budget
Comments
Updated Budget 14/15 Updated Budget 15/16
£
e-Financials Financial Management System
Software Upgrade
Financed by:
NNDC (Capital Receipts)
Administrative Buildings
Financed by;
NNDC (Capital Receipts)
21,050
11,950
228
(11,722)
6,754
268,246
0
0
21,000
0
1,892,363
19,807,948
33,000
Works are progressing.
0
0
(268,246)
0
0
0
(21,000)
0
0
16,000
0
(16,000)
0
0
1,058,388
793,975
73,016
(720,959)
20,000
20,000
5,804,054
16,884,099
996,027
(15,888,072)
1,853,000
1,367,578
9,749,667
357,878
443,000
27,155
50,996
8,000
4,580
0
976,731
5,266,092
443,000
40,000
443,000
0
0
0
0
0
0
927,000
0
220,000
443,000
0
0
0
0
0
0
704,578
16,884,099
1,853,000
1,367,578
33,000
275,000
275,000
Replacement of Planning Printer and Scanner
Financed by:
NNDC (Capital Receipts)
21,000
Committee Management Information System
Financed by:
NNDC (Capital Receipts)
16,000
21,000
16,000
The order has been placed for
the new Committee
Management Information
System.
Capital Programme Financing
Environment Agency Grant
DEFRA Grant
Disabled Facilities Grants
Other Grants
Affordable Housing Contributions
Other Contributions
Asset Management Reserve
Revenue Contribution to Capital (RCCO)
Capital Project Reserve
Capital Receipts
TOTAL FINANCING
38
Agenda Item No_____12_______
FINANCIAL STRATEGY 2014/15 TO 2016/17
Summary
Options considered
This report presents the current financial forecast for the
period 2014/15 to 2016/17 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 million by 2016/17.
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
2014/15 to 2016/17;
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 2014/15;
b) That the Local Council Tax Support Scheme
grant for parishes be offered to those parishes
that accepted the grant in 2013/14 and the total
amount available is reduced in line with the
Council’s relative funding reductions as outlined
at section 2.9.15;
c) The reallocation of £400,000 from the general
reserve to the Restructuring/Invest to Save
Reserve;
d) The updated minimum level of General Fund
balance to be £1.75 million for the reasons
outlined in the report at section 5;
e) Delegated authority is given to the Chief
Executive
to
release
funds
from
the
restructuring/invest to save reserve up to
£100,000, as outlined within section 5 of the
financial strategy;
f) The revised reserves statement as included at
Appendix F to the financial strategy (with the
revisions of recommendations 2 c) above;
g) Pending further review of the financial limits
within the constitution, an amendment to the
virement limits for Heads of Service and
Corporate Leadership team as outlined at
reference 5.16.
39
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
2014/15 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)
Spending Round 2013
Consultation Papers – Local Government Finance Settlement
New Homes Bonus and the Local Growth Fund
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
1.
Introduction
1.1
The paper attached as an appendix to this covering report sets out the
Financial Strategy for the period 2014/15 to 2016/17. 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 2014.
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 funding reductions.
In addition the strategy details the funding for the Local Council Tax support
scheme and funding reductions for this and also for parishes and makes
recommendations on the scheme and funding for 2014/15.
2.2
The strategy provides an update to the funding forecasts for the period
2014/15 to 2016/17 which have been informed by two recent consultation
papers on the new Homes Bonus and the Local Government Financial
Settlement for 2014/15.
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.
40
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.
41
FINANCIAL STRATEGY 2014/15 to 2016/17
1.
INTRODUCTION
1.1
The purpose of producing a medium term financial strategy (MTFS) 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 corporate plan “small government, big society,” and the accompanying annual
action 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
behind the corporate priorities.
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 makes 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 financial strategy 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
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 MTFS including an
overview of the Comprehensive Spending Round 2013 announcements and
the impact to the 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 2013 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.
Financial Strategy 2014/15 to 2016/17
August 2013
42
Page 1 of 25
2.
BACKGROUND AND CONTEXT
2.1
The 2013/14 budget was set and approved in February 2013. 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 2014/15 provisional finance settlement as announced in
February 2013.
2.2
An update to the position was reported within the report to Cabinet in May 2013
which recommended the New Homes Bonus being used in the base budget from
2014/15 onwards. At that time the funding gap for 2014/15 was £96k increasing to
£616k in 2015/16 and to £1.2m in 2016/17.
2.3
This document now provides the latest financial forecast for the period 2014/15 to
2016/17 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 Authority moving
forward.
2.4
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:

Economic Outlook (2.5)

Funding (2.6)

Spending Round 2013 (2.7)

New Homes Bonus (2.8)

Local Council Tax Support (2.9)
2.5
Economic Outlook
2.5.1 A recovery in the UK economy appears to be taking hold. Early estimates suggest
that Gross Domestic Product (GDP) increased by almost 1% in the first half of 2013.
This is a welcome change after over a year of almost no growth, but the legacy of the
financial crisis means that the recovery remains weak by historical standards. There
is still a significant margin of spare capacity in the economy, which is evidenced by
the high rate of unemployment, currently standing at 7.8%.
2.5.2 The gathering pace of the recovery is supported by a number of factors; moderate
but persistent expansion in global demand; the sustained stimulus from very low
short-term interest rates; a further easing in credit conditions aided by the Funding for
Lending Scheme (which provides incentives to banks and building societies to lend
more to UK households and businesses) and steps to increase the resilience of UK
banks and building societies; and a gradual fading of the impact of the financial crisis
on household and business spending.
2.5.3 The Bank of England‟s Monetary Policy Committee‟s (MPC) best collective
judgement is that the economy is likely to see a modest and sustained recovery over
the next three years. It predicts accelerating growth for the rest of this year, and
forecasts growth of about 2.4% in two years' time.
2.5.4 The main risks to the recovery continue to emanate from abroad, in particular the
euro area.
2.5.5 The new governor of the Bank of England, Mark Carney, has said the Bank will not
consider raising interest rates until the jobless rate has fallen to 7% or below. He
expected that this would require the creation of about 750,000 jobs and could take
three years. The extra clarity on future interest rates was needed to avoid
Financial Strategy 2014/15 to 2016/17
August 2013
43
Page 2 of 25
unnecessary fears that interest rates would rise after recent positive economic news.
The 7% unemployment figure was not a target, but a point at which the Bank of
England would re-examine interest rates. The unemployment threshold will apply
unless inflation levels threaten to rise too fast or if it poses a significant threat to
financial stability.
2.5.6 Inflation, as measured by the Consumer Prices index (CPI) was 2.8% in July, up from
2.7% in May. It is likely to remain close to 3% in the near term and to fall back to
around the 2% target by 2015.
2.5.7 The MPC‟s remit makes clear that its primary objective is price stability, as defined by
the 2% target for CPI inflation. The remit also recognises that when inflation is above
the target but demand is weak, the Committee faces a trade-off between the speed
with which it attempts to return inflation to the target and the support it is able to
provide to promote activity. At the moment this trade-off is uncertain but the MPC‟s
explicit forward guidance now provides greater clarity on the future path of interest
rates as the economy recovers.
2.6
Funding
2.6.1 The changes to central government funding for local government introduced by the
Local Government Finance Act 2012 which came into operation in April 2013 has
seen substantial changes to both delivery of services and the financing of services.
Two of the more significant changes are the introduction of Council Tax Support as a
replacement to Council Tax benefit and the introduction of Business Rates Retention.
This document does not cover the changes in detail as these have been reported
previously.
2.6.2 Table 1 outlines the funding for NNDC as included within the 2013/14 Local
Government Finance Settlement which was announced on 4 February 2013. This
included the final settlement for 2013/14 and provisional settlement for 2014/15.
Financial Strategy 2014/15 to 2016/17
August 2013
44
Page 3 of 25
Table 1 - NNDC Local Government Finance Settlement (Feb 2013)
Revenue Support Grant
2014/15
2013/14 Final
% age
/Business Rates Retention
Provisional
£’000
change
Baseline funding
£’000
Amount
change
£’000
Revenue Support Grant (RSG):
Council Tax Freeze Grant
86
84
506
0
72
70
664
154
RSG
3,571
3,092
Total RSG
4,235
3,246
Council Tax Support Funding
Homelessness Grant
-23.4%
-989
Business Rates Retention Baseline funding:
Council Tax Freeze Grant
57
59
337
0
48
49
442
108
Baseline
2,376
2,796
Total BR Retention Baseline
2,818
2,904
3.1%
86
TOTAL SUPPORT
7,053
6,150
-12.8%
-903
Council Tax Support Funding
Homelessness Grant
2.6.3 There has been a later announcement in relation to the 2014/15 provisional
settlement – this is discussed in further detail at 2.7.
2.6.4 As well as the main element from central government (Revenue Support Grant and
Business Rates Retention Baseline funding) for 2013/14 the Council is in receipt of
the following transitional/one-off grants:
a.
Local Council Tax Support Transitional funding was made available for year one
(2013/14) only for eligible schemes designed so that the minimum a claimant
would pay is 8.5% of the total council tax for the year. NNDC‟s element of
transitional funding (which included any element for the parishes) was £22,740.
Table 2 summarises the transitional funding for North Norfolk and the major
preceptors.
Table 2 – Transitional Grant LCTS
NNDC (including Parishes)
22,740
Norfolk County Council
147,893
Norfolk Police
25,434
Total
b.
2013/14 £
196,067
Efficiency Support for Services in Sparse Areas Grant was allocated as a new
transitional grant for 2013/14 following the consultation on the provisional finance
settlement. Nationally £8.5 million was allocated for 2013/14 only, NNDC‟s
allocation was £44,544.
Financial Strategy 2014/15 to 2016/17
August 2013
45
Page 4 of 25
2.6.5 Table 3 shows a summary of the funding for NNDC confirmed for 2013/14 and
provisional as announced in February 2013 for 2014/15.
Table 3 Total Funding Summary NNDC (February 2013)
Source of Funding
2.7
2013/14 Final
£’000
2014/15
Provisional
£’000
% age
change
Amount
change
£’000
Revenue Support Grant
4,235
3,246
-23.4%
(989)
Business Rates Retention
2,818
2,904
3.1%
86
LCTS Transitional
23
0
-100.0%
(23)
Efficiency Support for
Services in Sparse Areas
45
0
-100.0%
(45)
7,120
6,150
-13.6%
(970)
Spending Round 2013
2.7.1 On 26 June 2013 the Chancellor of the Exchequer published the Coalition
Government‟s Spending Round 2013, setting out their public expenditure plans for
2015/16. The spending round plans are for one year only and in particular it provides
details on how the government will make £11.5bn of savings and increase capital
spending plans by £3bn a year from 2015/16.
2.7.2 The following provides a summary of some of the key announcements made at the
time:

One year only – previous spending review plans have covered three to four
years, the SR13 covers 2015/16 only;

Departmental spending reductions - Local authority core funding reduced by
10% in 2015/16 in real terms, in comparison to overall cuts of 5.6% across all
other unprotected departmental budgets. Local authority core funding from
DCLG falls by £2.1 billion in 2015/16. Total spending will be reduced over the
period 2015/16 to 2017/18 in real terms at the same rate as during the Spending
Review 2010 period;

Council Tax Freeze Grants – funding made available for authorities that choose
to freeze council tax in 2014/15 and 2015/16, equivalent to a 1 per cent council
tax increase for those councils which freeze their council tax on the same lines
as in 2013/14;

Council Tax referendum threshold (2014/15 and 2015/16) for tax rises of more
than 2 per cent and subject to the Audit and Accountability Bill achieving Royal
Assent, this limit will now include levying bodies1;

Public sector pay awards will be limited to an average of up to 1% in 2015/16;

New Homes Bonus – 40% top sliced for Single Local Growth Fund. £400 million
from NHB (see section 2.8 for later information).
2.7.3 Where applicable the forward financial projections have been updated to take
account of the announcements within the SR13. Some of which are discussed in
more detail within this document.
1
The Audit and Accountability Bill refers to levying bodies as organisations such as Waste Disposal Authorities,
Integrated Transport Authorities, Pension Authorities and Internal Drainage Boards.
Financial Strategy 2014/15 to 2016/17
August 2013
46
Page 5 of 25
2.7.4 A technical consultation on the Local Government Finance Settlement 2014/15 and
2015/16 was issued on 25 July following the SR13 announcements2. The
consultation seeks views on a range of detailed and technical issues concerning the
2014/15 and 2015/16 Local Government Finance Settlements.
2.7.5 When the Government announced the Local Government Finance Settlement for
2013/14 in February 2013 it also published provisional settlements for 2014/15.
Announcing future year settlements (albeit provisional) in advance does assist the
financial planning for local authorities. Since the publication of the 2014/15
provisional finance settlement the Government announced in the 2013 Budget that a
reduction of 1% would be made from the local government spending control total for
2014/15. The Local Government Finance Settlement technical consultation covers
this and includes the following comments:



“The illustrative 2014-15 Local Government Finance Settlement indicated that
the Settlement Funding Assessment would be £23,856.866 million. Since the
publication of that illustrative settlement, in the 2013 Budget, the Government
announced that a further reduction of 1% overall would be made from the total
of Local Government Departmental Expenditure Limit and the local share of the
Estimated Business Rates Aggregate. This equates to a further £218.864
million reduction to the total for 2014-15.
Since the local share of business rates is fixed until 2020 to provide a strong
incentive for local authorities to promote growth, the full reduction will need to
be applied to the element of funding that is provided through Revenue Support
Grant. On that basis, the 2014/15 Revenue Support Grant will be reduced by
1.73%, from £12,624.041 million to £12,405.177 million.
In line with the commitments made to authorities prior to take up, the
Government does not intend to reduce the Council Tax Freeze Compensation
element of the Revenue Support Grant. The 1.73% reduction will therefore be
applied to the remaining elements of the Revenue Support Grant. On that basis
the reduction in the 2014/15 control totals for each of the remaining elements
will be 1.78%.”
2.7.6 For NNDC the elements of RSG that this applies to included in Table 1 are
Homelessness Grant (£70k) and Revenue Support Grant formula funding (£3.092m).
Overall the reduction compared to the provisional 2014/15 figures is estimated to be
£56,300.
2.7.7 This amendment to the financial projections has been reflected in the updated
forecast included within section 4.
2.8
New Homes Bonus
2.8.1 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 growth
in housing unit numbers is rewarded by the payment of the „Bonus‟ for six years. In
the main this 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.
2.8.2 The grant is payable for six years as an un-ring fenced grant (paid under section 31
of the Local Government Act 2003) and is calculated by multiplying the national
average council tax3 by the net additional homes plus an additional supplement of
2
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/225390/130724_LGFS_201415_and_2015-16_Technical_Consultation_FINAL.pdf
3
Amount for 2013/14 is £1,444
Financial Strategy 2014/15 to 2016/17
August 2013
47
Page 6 of 25
£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.
2.8.3 Allocations are based on the Council Tax Base returns which are submitted annually
to the Government (covering the twelve month period October to September), i.e.
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.
2.8.4 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,
for example 2013/14‟s allocation was based on the Council Tax Base data return as
at September 2012.
2.8.5 North Norfolk have decided to use the allocation of the NHB to support its revenue
budget from 2014/15 and redress in part the loss of core funding by the scaling back
of the revenue support grant.
2.8.6 The Spending Round 2013 announced changes to the NHB from 2015/16 onwards
with the introduction of a „top-slicing‟ /pooling element of the annual NHB allocation
through the local enterprise partnerships (LEP) to support strategic housing and other
local economic growth priorities.
2.8.7 Allocations of the forthcoming year‟s NHB are made as part of the financial
settlement announcements and are included by the Government in their assessment
of the local authority‟s “revenue spending power” as detailed in table 4.
Table 4 - 2013/14 Revenue Spending Power Element
2013/14 Value
£’000
Revenue Spending Power Element
Revenue Support Grant
3,571
Business Rates Baseline
2,376
5,947
Council Tax Freeze Grant 2011/12
143
6,090
Homelessness (Grant rolled in)
120
Council Tax Support
842
7,052
Council Tax – District
5,744
Community Rights (to Challenge and Bid)
17
Council Tax Freeze Grant 2013/14
58
New Homes Bonus
706
Revenue Spending Power
13,577
2.8.8 As mentioned previously an announcement was made as part of the Spending
Round 2013 that from 2015/16 onwards the NHB would be subject to „top slicing‟ to
fund a growth pot totalling £400 million nationally that would be held by the Local
Financial Strategy 2014/15 to 2016/17
August 2013
48
Page 7 of 25
Enterprise Partnerships (LEP). A consultation paper has been issued outlining two
mechanisms for pooling4, outlined below:
a.
Flat percentage of all NHB allocations to be pooled at LEP level, all authorities
would be required to contribute an equal proportion of their NHB allocations.
Government considers that this mechanism is simple and transparent and
rewards LEP in areas that have delivered housing growth. The example
included in the technical consultation would see a 35.09% top slicing across
all authority allocations.
b.
As above for all areas with single tiers of local government (i.e. unitary,
metropolitans etc.), but for authorities in two-tier areas an alternative
distribution mechanism would apply. The example included in the technical
consultation shows upper tier authorities contribution 100% of their NHB
allocation and the remainder coming from lower-tier authorities.
2.8.9 These are illustrated in the worked example at Appendix A.
2.8.10 It has been confirmed that there will be no change to the allocation of the 2014/15
NHB and the calculation of the NHB will remain the same. The forecast for NHB has
been updated to take account of the proposals, essentially reductions in the NHB
could be between 18.9% and 35.09% from 2015/16 onwards. For the purpose of the
financial forecast the reduction of 35.09% has been assumed.
2.8.11 Contributions from the Local Authority NHB grant to the LEP will reduce the control
that Council‟s have in being able to use the grant to provide local services. There are
a number of risks with the proposed top slicing mechanism which include:

Reallocation of revenue resources to capital – regional growth projects are likely
to be of a capital nature;

Increased competition between rural and urban growth projects;

Working partnerships with the LEP will have increasing importance to contribute
to and influence outcomes of spending allocations within the LEP.
2.8.12 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 which show an
increase in properties (eligible for council tax purposes) in the year and a reduction in
empty properties. It should also be noted that the forecast assumes no changes to
the return and definitions to fields within the return. Table 5 below provides a
summary of the assumptions used for the NHB in the updated financial forecast.
4
New Homes Bonus and the Local Growth Fund Technical Consultation
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/225369/New_Homes_Bonus_and_
the_Local_Growth_Fund_technical_consultation.pdf
Financial Strategy 2014/15 to 2016/17
August 2013
49
Page 8 of 25
Table 5 - Forecast Council Tax base Movement
NHB Allocation
Council tax Base Data
Return Period
New
Reduction
Net
Property in Empty
Property
Growth Properties Movement
2014/15*
Oct 2012 to Sept 2013
170
40
210
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
Note * refers to the periods within the financial strategy
2.8.13 As mentioned earlier a technical consultation paper has been issued regarding top
slicing the NHB from 2015/16 onwards. The following table provides the projection of
funding from NHB from 2014/15 along with the impact of the top slicing for each of
the options.
Table 6 - NNDC NHB Forecast
NNDC
NHB
Forecast
Top slicing
Top slicing
NHB
Allocation
Allocation
(35.09%)
NHB retained
(18.9%)
retained
Year
(before top (Mechanism 1)
(Mechanism 2)
slicing)
£000
£000
£000
£000
£000
2014/15
958
0
958
0
958
2015/16
1,210
424
786
229
981
2016/17
1,451
509
942
274
1,177
2017/18
1,342
471
871
254
1,088
2018/19
1,321
463
858
250
1,071
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.
2.8.14 As a guide a reduction or increase in properties that are eligible for Council Tax of 10
would equate to £11,000 per annum of NHB for the Council (before ring fencing).
2.9
Local Council Tax Support
2.9.1 The Local Council Tax Support (LCTS) Scheme was implemented in April 2013 as a
replacement to Council Tax benefit. The previous scheme was funded 100% through
the Department for Works and Pensions subsidy system. LCTS is (partly) funded
through grant funding and the scheme itself. It is the responsibility of the billing
authorities to develop and approve the local scheme.
2.9.2 In developing the 2013/14 scheme NNDC established a working group to consider a
number of scheme options and consulted on a scheme which would have seen
claimants pay a minimum of 30% of their full council tax, i.e. the maximum amount of
council tax support that could be claimed was 70% (compared to the previous 100%).
In 2012/13 the Council received one-off funding for the changes to the scheme to
cover set-up costs for example, software changes and consultation.
2.9.3 Following the end of the NNDC‟s scheme consultation, the Government announced
transitional funding (totalling £100 million nationally) for schemes that met the
Financial Strategy 2014/15 to 2016/17
August 2013
50
Page 9 of 25
Government‟s criteria, including claimants paying a minimum 8.5%. This essentially
meant that where individuals had previously been entitled to 100% council tax
benefit, from April 2013 they would be required to pay 8.5%. The Council‟s share of
transitional grant was £22,740.
2.9.4 In January 2013 NNDC approved a scheme for 2013/14 that met the transitional
funding criteria and that was also being funded from additional income from the
Council Tax reforms (changes to discounts) that came into effect in April 2013.
2.9.5 From 2013/14 funding for LCTS is included within the Retained Business Rates
system, with a proportion in local share and the rest in Revenue Support Grant. The
funding is one of many elements making up Local Government resource, and is not
ring-fenced. The LCTS funding was identified in year 1 (2013/14) at a local authority
level but Ministers agreed that it would not be identifiable thereafter. It is for local
authorities to decide how much they are prepared to spend on Council Tax Support,
and therefore allocations for future years will not be separately identifiable. The total
funding for 2013/14 for LCTS is £843k which includes £178k in respect of parishes.
2.9.6 The impact that LCTS has on Council Tax is a reduced Council Tax Base (number of
band D equivalents for Council Tax setting purposes). This is because the LCTS is
treated as a discount and therefore reduces the tax base for the authority (and
parishes) in the same way that a single person discount or second homes discount
might. For 2013/14 the tax base reduced from 41,366 (in 2012/13) to 36,411. A
reduced tax base in turn reduces the call on the collection fund (i.e. income from
council tax) but this (in theory) is offset by the grant funding.
2.9.7 Within the original consultation documents on LCTS the effect on the parishes was
discussed and concluded that the impact should also be passed down to the parishes
in the interests of localism.
2.9.8 As mentioned above, the funding allocations for 2013/14 included an amount
attributable to the local precepting authority‟s element of council tax that was
allocated to the billing authority.
2.9.9 In 2013/14 all parishes were given the opportunity of accepting the grant as part of
setting their precept for the coming year; the grant offer fully met the costs of the new
scheme for the parishes for 2013/14.
2.9.10 In 2013/14 not all parishes accepted the grant; reasons for not accepting the grant
were mainly around the uncertainty of future grants and also the potential impact of
future capping on Parish Council Tax increases should they come in.
2.9.11 The current financial projections for 2014/15 onwards assume the continuation of the
current scheme (8.5%) and that funding to parishes continues, but the grant available
to them reduces in line with the Council‟s funding reductions. The impact of this
would mean that they are not „protected‟ from the impact of the changes to the
council tax base as a result of LCTS, in the same way as the district.
2.9.12 Options available for the 2014/15 scheme are:
a)
b)
Continuation of current scheme - this would require NNDC (and others their
respective shares) funding the transitional grant element (transitional element
for NNDC is £22,740 – the financial projection made in February 2013
assumed this scenario), this would require a consultation with the major
preceptors (County and Police);
Scheme reduction to reflect removal of transitional funding which would
require a full consultation exercise.
Financial Strategy 2014/15 to 2016/17
August 2013
51
Page 10 of 25
2.9.13 Changes to the current scheme would require a full consultation to be carried out of
which the costs would need to be met by the Council. It is therefore recommended
that for 2014/15 the current scheme is continued.
2.9.14 The implications for the parishes in terms of further funding from the Council would
need to be taken into account, for which the options are:
a)
Funding for Parishes at the same level as 2013/14 – this would mean that the
parishes continue to be protected from the impact of the LCTS and NNDC
would be required to fund any shortfall. This would contradict the intention of
the funding and using one tax base as outlined at 2.9.7.
b)
Funding for Parishes – offer of grant to those that accepted the grant in
2013/14 but total amount capped based on reductions in NNDC‟s funding.
Grant allocations would need to be based on the actual impact of LCTS at the
parish level as reflected in the tax base calculations.
c)
No further grant funding is provided to Parishes for 2014/15, i.e. the element
of funding within NNDC‟s funding allocated in respect of parishes is retained
at the district level.
2.9.15 Options (b) and (c) above (for parishes) will have the effect of increasing (to variable
levels) the parish charge (unless the Parish reduced their total budget). Therefore as
the District‟s funding for LCTS is reducing it is recommended that the funding
available to the parishes reduces in line with that of the district (option b). Therefore
grants offered to the parishes (where applicable) could reduce by approximately 17%
to reflect both the transitional funding no longer being received, and the reduction in
funding that is impacting on the district.
Financial Strategy 2014/15 to 2016/17
August 2013
52
Page 11 of 25
3.
RESOURCES
3.1
The Council‟s net current revenue budget for 2013/14 (excluding Parish and Town
Council precepts), set in February 2013, is £12,260,130 and is supported as detailed
in table 7.
Table 7 - NNDC Budget Funding Sources
Funding Source
2013/14 Budget £
Collection Fund – District
5,082,610
Retained Business Rates
2,817,506
Revenue Support Grant
4,235,114
LCTS Transitional Funding
22,740
Efficiency Support for Services in Sparse Areas
44,544
Council Tax Freeze (2013/14)
57,616
Total
12,260,130
Council Tax
3.2
Since 2011/12 the Council has accepted the Council tax freeze grant. The current
Band D District Council tax is £138.87.
3.3
The Spending Round 2013 announced additional funding equivalent to a 1%
increase in Council Tax if Council Tax is frozen in 2014/15. Amounts would be
payable in 2014/15 and 2015/16 (estimate of £50,000 in each year). There was also
mention of additional freeze funding from previous years, i.e. potential of £50,000 in
2015/16 but this is yet to be confirmed and has therefore not been factored into the
financial forecasts.
3.4
Table 8 summarises the current forecast yield from Council tax:
Table 8 - Council Tax Income
2013/14
Budget
£
Council Tax Income
Annual Increased Yield
3.5
2014/15
Forecast
2015/16
Forecast
2016/17
Forecast
£
£
£
5,082,610
5,100,900
5,116,600
5,136,000
n/a
18,290
15,700
19,400
This strategy reflects the Council's intention that there should be no increase in the
current level of Band D Council Tax.
External Funding
3.6
After taking into account the factors identified in section 2 around the future grant
resources and impact of the current consultation papers, Table 9 shows a revised
funding projection. The external funding reflects the provisional allocations made in
February 2013 along with the further funding reduction from the 2013 Budget. It takes
account of where transitional funding has ended and also the level of New Homes
Bonus assuming the worst case scenario for the top slicing as detailed earlier.
Financial Strategy 2014/15 to 2016/17
August 2013
53
Page 12 of 25
Table 9 – External Resources Projection
2014/15
Provisional
Settlement
(Adjusted)
£
2013/14
Budget
Resource
£
Core Funding (excluding 'other'
grants)
Reduction Year on Year
Reduction %
New Homes Bonus (net of top
slicing) *
(7,052,620)
2015/16
Forecast
2016/17
Forecast
£
£
(6,094,245)
(5,484,820)
(4,936,338)
958,375
-14%
609,425
-10%
548,482
-10%
(957,535)
(785,109)
(941,542)
LCTS Transitional funding
(22,740)
0
0
0
Efficiency Support for Services in
sparse areas
(44,544)
0
0
0
Council Tax Freeze (2013/14)
(57,616)
(57,616)
0
0
0
(50,000)
(50,000)
0
(7,177,520)
(6,201,021)
(5,710,504)
(5,329,398)
C Tax Freeze 14/15 and 15/16
Income from Government Grant
* NHB factored into base budget resources from 2014/15, comparative amount for 2013/14 is
£729,417
Fees, Charges and Other Income
3.7
The Council levies a number of charges for its services. These range from car
parking charges to charges for the supply of minutes. Some of the charges are set by
central government (e.g. some licences) and some are controlled to ensure that
revenue costs are covered over a three year rolling period.
3.8
It is important that the income derived from the fees and charges is maintained in real
terms. While this may mean that individual charges are raised by more or less than
the prevailing inflation rate, overall it is the aim of this strategy to maintain the real
value of the total income.
3.9
An important source of income to the Council is the return it receives from investing
surplus funds. The estimated receipts in the medium term are detailed in Table 10:
Table 10 – Investment Income
Year
Estimated
Receipt
£
3.10
Year on year
change Increase/
(Reduction)
£
2012/13
206,481
2013/14
392,490
186,009
2014/15
382,401
-10,089
2015/16
379,401
-3,000
2016/17
374,045
-5,356
With low base rates nationally the Council has seen this source of income decline
compared to previous years. The treasury management strategy outlines the
Financial Strategy 2014/15 to 2016/17
August 2013
54
Page 13 of 25
approach taken when investing funds but in summary the main principles of security,
liquidity and yield still remain.
3.11
Spending through the capital programme depletes the availability of investment
funds. When this is combined with a period of low base rates the reduction in
investment income is inevitable.
3.12
This strategy does not anticipate a significant increase in investment income above
the current forecast, the forecast does take account of the pooled property
investment of £5 million that was taken out at the end of the previous financial year.
Furthermore, there is a separate item on the Cabinet Agenda on Local Investment
Strategy which is recommending making loans available to Registered Providers, the
outcome of this will be a revision to the financial forecast.
Financial Strategy 2014/15 to 2016/17
August 2013
55
Page 14 of 25
4.
FINANCIAL FORECAST – UPDATE
4.1
The 2013/14 budget was set and approved in February 2013. At the same time as
approving the budget for 2013/14 the forward financial projections for the following
three years were also reported based on current expenditure and income plans at the
time. This section of the report now pulls together the impact of the factors that have
been highlighted within section 2 along with known and identified service
spending/income pressures to produce a revised financial forecast.
4.2
The Council continues to adopt an approach to its expenditure level which is to keep
it within the financing constraints and to do so maintains a corporate savings
programme which aligns its spending plans with the available resources at its
disposal.
4.3
Significant sums have been realised over the course of this programme through
changes in staffing, information technology and fees and charges reviews.
4.4
A further pressure on the expenditure of the Council, as yet un-quantified, is the
impact of the Welfare Reform Act 2012 which seeks to move the administration of
Housing Benefits to central government (Department of Works and Pensions) and
the introduction of Universal Credit, a new single payment which combines a number
of discrete benefit streams into one payment. A report on the impact of the current
welfare reforms will be reported later in the year.
4.5
The main impact will be that the administration of Housing Benefits is no longer
undertaken by the Council. The precise consequence in terms of staffing and
financial impact through potentially redundant computer systems remains to be seen.
There is very little definitive guidance from the Department for Works and Pensions
at present.
4.6
This strategy, therefore, assumes that the status quo will exist until there are firm
proposals on which to base the detailed calculations of the likely impact on the
Council.
4.7
The financial forecast has been updated for service variances that have been
highlighted to date or where revised forecasts based on the 2012/13 outturn have
been made. These include the following:
4.7.1
Car Parking Income - revisions to the forecast income from car parking pay and
display fees (of £60,000 additional income).
4.7.2
Pay award for future years (from 2014/15) of 1%, the current forecast only
assumed an increase for 2013/14, £85,000
4.7.3
Contract renegotiations in respect of the print room (although this is only
anticipated to deliver a saving in the first two years).
4.8
The total of the service budget revisions are budget reductions of £7,795 in 2014/15
increasing to £8,795 in 2015/16 and increases to the budget of £24,205 in 2016/17.
4.9
Table 11 provides a summary of the revised position taking into account the factors
previously identified. These are subject to caveats in relation to the outcome of
current government consultations in particular the New Homes Bonus and the
2014/15 and 2015/16 Local Government Finance Settlement. Table 11 compares the
position as reported in May to the latest updated position.
Financial Strategy 2014/15 to 2016/17
August 2013
56
Page 15 of 25
Table 11 - Updated Financial Forecast
2015/16
2016/17
£000
£000
£000
Forecast Gap May 2013
96
616
1,200
Service Pressures/(Savings)
(8)
(9)
24
(137)
(274)
(400)
0
424
509
(50)
(50)
0
Council Tax Collection Fund Surplus Adjustment
12
21
27
Government Grant
56
174
269
(31)
902
1,629
New Homes Bonus - revised Forecast
New Homes Bonus - impact of top slicing
Council Tax Freeze Grant
Forecast Budget Gap
4.10
2014/15
The main reason for the increase in funding gap for 2015/16 and 2016/17 is due to
the revised forecast for external funding (Retained Business Rates and Revenue
Support Grant). Following the announcements on the Spending Round 2013 the
forecast funding for 2015/16 and 2016/17 have been updated to reflect a 10%
funding reduction in each of these two years, the previous position assumed a 8%
reduction in both years.
Financial Strategy 2014/15 to 2016/17
August 2013
57
Page 16 of 25
5.
RESERVES
5.1
As part of the budget and council tax setting process each year 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 presented alongside the
budget (annually)5.
5.2
In agreeing the budget for 2013/14 the minimum balance in the general reserve was
increased from £950,000 to £1.6 million. The reasons for increasing the reserve were
largely due to the increased risk around future funding and the introduction of the
LCTS from April 2013.
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:







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;
sensitivity to pay and price inflation;
sensitivity to fluctuations in interest rates;
potential legal claims where earmarked funds have not been allocated;
future funding fluctuations;
level of earmarked reserves held;
a level of reserve that is within 5% to 10% of net expenditure
5.6
The balance in the general reserve at 1 April 2013 was £1.745million, the current
budget for 2013/14 assumed that the budgeted surplus for the year would be
transferred to the general reserve. After taking account of planned contributions to
and from the general reserve (including the reallocation of half of the forecast
balance in the NHB earmarked reserve6) over the next three years, the unallocated
balance is currently forecast to be £2.16 million. This is after allowing for £600,000 to
be transferred from reserves (£200,000 in each of the three years 2013/14, 2014/15
and 2015/16).
5.7
The current recommended general reserve level (as approved in February 2013) is
£1.6 million. Earlier in the year it was agreed that the NHB would be utilised as base
budget funding from 2014/15 onwards, including the NHB within base budget funding
does increase the risk of funding shortfall should there be changes to the way that
5
6
Full Council February 2013, Budget and Council Tax Report 2013/14
As recommended to Cabinet in May 2013, part of the New Homes Bonus Report
Financial Strategy 2014/15 to 2016/17
August 2013
58
Page 17 of 25
the NHB is allocated. The changes mentioned earlier in the report from the
introduction of top-slicing from 2015/16 of the NHB are such a risk and as a result of
this, it is recommended that the minimum level of the general reserve is increased
accordingly. Applying similar principles to the current reserve analysis to determine
the recommended level of general reserve, it is recommended that the minimum
balance in the general reserve is set at £1.75 million. This will be subject to further
review later in the year when the detail on the 2014/15 budget is prepared.
5.8
In the meantime it is recognised that the current forecast within the general reserve is
above the £1.75 million and therefore it is recommended that £400,000 is reallocated
to the restructuring/invest to save earmarked reserve to provide funding for
workstreams and projects mentioned in section 7 for delivering the financial strategy,
for example possible restructurings and IT investment.
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. 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 regular 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.
5.12
The Capital Receipts Reserve 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 2013 was £6.896
million.
5.13
Details of the current capital programme that are being financed from capital receipts
is included in section 6 of the report which highlights the reducing available balance
within this reserve over the next three years.
5.14
An updated reserves statement (general and earmarked) is included at Appendix B.
This reflects the latest position for planned use of the earmarked 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 event, these are outlined below:

Capital Projects Reserve – The majority of this reserve represents VAT shelter
receipts that are received as revenue receipts but earmarked to fund capital
schemes.
Financial Strategy 2014/15 to 2016/17
August 2013
59
Page 18 of 25

Benefits - The Benefits reserve was established to mitigate any claw back by the
DWP following audited subsidy determinations. The audit of the 2012/13 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 50% of County‟s share of the discretionary
element (i.e. 40%) of second homes council tax charge which is returned to the
district. This is 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 – This reserves holds the balance of previous years unallocated
bonus and is earmarked for the delivery of the Council‟s objectives in respect of
housing.

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. Release of funds from the reserve for
restructurings is subject to business cases being approved and signed off (in line with
the Pensions Retirement and Discretionary Compensation Payments Policy
Statement). In order to ensure that works on the respective projects or restructurings
can be progressed this report recommends that delegated authority is given to the
Chief Executive to release funds from reserves up to £100,000 where they are
supported by a business case that has been signed off by Corporate Leadership
Team, Head of Finance, Head of Service (as applicable), Leader and Portfolio
Member.
5.15
All reserves general and earmarked will be reviewed over the coming months as part
of setting the detailed budgets for 2014/15, with a view that where commitments have
not been identified and funds or reserve balances are no longer required these are
re-allocated to specific reserves to address the other requirements as applicable.
5.16
The latest budget monitoring position is reported to members during the year. Period
4 (to the end of July) is included within the September Cabinet agenda. In the past
budget monitoring reports have been reported largely for information and to agree
amendments to the capital programme during the year with the revised budget being
approved in December annually. To assist the overall financial planning and
monitoring process and management of reserves, the revenue account will be
updated through the year as part of the budget monitoring reports with
recommendations being made accordingly. Currently virement limits require Cabinet
approval above £10,000. This level can be restrictive in terms of time constraints for
operational decision making and therefore pending further review of the constitution it
is recommended that the virement limits be amended to the following, within the
current guidance of the financial procedure rules including consultation with the
Section 151 Officer, Portfolio Member and Cabinet.
Heads of Service
Up to £25,000
Corporate Leadership Team & S 151 Officer
Up to £50,000
Cabinet
£50,001 to £100,000
Financial Strategy 2014/15 to 2016/17
August 2013
60
Page 19 of 25
6.
6.1
CAPITAL
The capital programme is updated during the year as part of the budget monitoring
reports to Cabinet. A copy of the current capital programme is included within the
period 4 Budget Monitoring report within the September Cabinet agenda and has
therefore not been re-produced in this document.
6.2
The following tables provide a summary of the current approved capital programme
for 2013/14 plus the current forecasts for 2014/15 and 2015/16 along with a
breakdown of relevant financing.
Table 12 - Current Approved Capital Programme
2013/14
Updated
Budget
£
Jobs and the Local Economy
Housing and Infrastructure
2014/15
Forecast
2015/16
Forecast
£
£
390,507
0
0
3,869,410
1,350,000
1,127,578
11,226,614
483,000
220,000
Localism
603,593
0
0
Delivering the Vision
793,975
20,000
20,000
16,884,099
1,853,000
1,367,578
10,636,696
926,000
663,000
6,247,403
927,000
704,578
16,884,099
1,853,000
1,367,578
Coast, Countryside and Built Heritage
Total Capital Expenditure
Financing:
Non NNDC
NNDC
Total Capital Financing
Table 13 – Capital Programme Financing
2013/14
Updated
Budget
£
Environment Agency Grant
2015/16
Forecast
£
£
9,749,667
443,000
0
Defra Grant
357,878
40,000
220,000
Disabled Facilities Grant
443,000
443,000
443,000
86,151
0
0
976,731
0
0
Other Grants and Contributions
Capital Projects Reserve *
Other Reserves *
4,580
0
0
5,266,092
927,000
704,578
16,884,099
* These are NNDC capital financing resources
1,853,000
1,367,578
Capital Receipts *
Total Financing
6.3
2014/15
Forecast
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
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
Financial Strategy 2014/15 to 2016/17
August 2013
61
Page 20 of 25

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 a need. 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. As
internal capital resources are utilised the Council will need to consider looking at
alternative capital financing options including borrowing.
6.5
After taking into account the planned spend within the current capital programme for
the period 2013/14 to 2015/16 and the anticipated resources, i.e. new capital
resources7 for the same period there is currently an unallocated balance of just under
£3 million. Although this does include £1.7 million within the capital projects reserve
which is a revenue or capital resource. This is illustrated in the following table.
Table 14 - Capital Resources
Balance at 31/3/13
Capital
Receipts
£
6,895,976
Capital
Projects
Reserve
£
2,063,225
Total
£
8,959,201
430,000
390,551
820,551
New Receipts 2013/14
Capital Financing 2013/14
(5,266,092)
390,000
New Receipts 2014/15
Capital Financing 2014/15
New Receipts 2015/16
Capital Financing 2015/16
Estimated Balance at 31/3/16
6.6
7
(976,731)
256,206
(6,242,823)
646,206
(927,000)
0
(927,000)
390,000
0
390,000
(704,578)
0
(704,578)
1,208,306
1,733,251
2,941,557
There is a separate report on the September Cabinet agenda on Local Investment
Strategy which is recommending the approval of a capital budget for providing loans
to registered providers which will require capital funding from NNDC resource which
may include internal borrowing.
New Capital Resources – Asset disposals, preserved right to buy and VAT shelter receipts.
Financial Strategy 2014/15 to 2016/17
August 2013
62
Page 21 of 25
7.
FINANCIAL STRATEGY AND PLANNING OPTIONS
7.1
The current strategy is to combine growth with improved efficiency, maximising
income streams whilst investing in new technology and challenging business
processes.
7.2
There are a number of options that can be explored to deliver a sustainable budget in
the medium term. These include the following work streams/priorities:
7.3
Reorganisation and Service Restructuring – Expressions of interest for voluntary
redundancy, early or flexible retirement and alternative working patterns have
recently been invited from staff. No guarantees have been made to staff expressing
an interest and the final approval will be subject to business cases being completed
and signed off in line with the Pensions Retirement and Discretionary Compensation
Payments Policy Statement. This does provide an opportunity to review structures to
ensure they are fit for purpose to deliver services and at the same time deliver
savings. In some cases there will be one off costs, for example redundancy and
pension strain for which funding will need to be released from the
Restructuring/Invest to Save reserve. The release of such funds will be subject to the
approval of business cases by CLT, Head of Organisational Development, Head of
Finance, the Leader and Portfolio Holder as outlined within section 5.14 (reserves).
At this stage it is estimated that savings in the region of £150,000 could be delivered
in the next two years.
7.4
IT Strategy and Customer Services Strategy – a report will be presented to Cabinet
in October on Business Transformation – IT Strategy and Customer Services
Strategy. This will outline investment requirements in new technology that will
support more efficient ways of working and ensure the best service can be offered to
the Council‟s customers. Recommendations for funding the investments will be made
within the report and will have an impact on the forward financial projections in terms
of funding one-off costs and continued savings plans. There will be individual
business cases presented for various themes within the overarching project for
example telephony. These will outline funding requirements (both revenue and
capital, including one-off funds) and also estimated efficiencies. In order to ensure
that some of the smaller projects can progress on a timely basis, it is recommended
that the release of funds from the Restructuring/Invest to Save reserve be delegated
as outlined within section 5.14. At this stage estimated savings have not been
included in the financial forecasts.
7.5
Contracts and Procurement – There are a number of contracts that are either being
reviewed or are due to commence during the period of the financial strategy. The
new Materials Recycling Facility contract comes into operation in 2014 and it is
anticipated that this will improve the Council‟s financial position through increased
recycling credits and reduced costs of up to £100,000. In addition target of £200,000
is anticipated from reviewing and renegotiating elements of the waste and cleansing
contract. This will be subject to a separate report to Cabinet.
7.6
Opportunities for Shared Services – The Council has considered proposals for the
provision of the Building Control Service by CNC and Norse Building Control,
however based on the cost implications to the Council, it is not considered financially
beneficial to pursue these options and therefore a target saving of £25,000 is
anticipated to be delivered from the in-house operation of building control service. No
savings are currently forecast from the revenues and benefits service but the future
shared arrangements will continue to be progressed and reported as appropriate.
7.7
Growth Strategy - Growing the council tax and business rates bases to deliver
additional income is a key priority. This will be generate both additional income from
council tax whilst at the same time generating additional income through new homes
Financial Strategy 2014/15 to 2016/17
August 2013
63
Page 22 of 25
bonus. It should be recognised that the Council will incur additional costs in providing
services for new dwellings, however due to the economies of scale there will still be a
net gain. Growing the business rates base will enable additional business rates
income to be retained from the local retention of business rates funding arrangement
which came into operation in 2013/14. This requires further more detailed analysis
which is currently being developed alongside an assessment at a County level of the
merits and de-merits of potential pooling.
7.8
Income Maximisation – There are opportunities to grow the business for internal
services, one example is the legal services and the operation of Eastlaw within the
cost sharing group. In addition opportunities for payroll and reprographics are to be
explored further. Overall from the three areas, an additional income target of £50,000
will be set to be achieved over the course of the next two years.
7.9
Changes to Policy Framework – There are a number of areas that are being explored
that will require a change to policy, this includes CCTV, North Lodge Park and other
assets. The level of savings is yet to be quantified, but it would not be unreasonable
to anticipate a conservative estimate of £70,000. A review of the car parking charges
will be undertaken as part of the budget process but any review of charging would
need to ensure there will be no adverse impact to the overall financial position of the
Council, given the current financial projections.
7.10
Use of the reserves in the short term allows for planning over a longer period, say up
to 18 months to deliver a longer term sustainable budget. Use of reserves to balance
a budget can only be seen as a one-off temporary solution as once the reserve has
been used unless the financial projection allows for such funds to be replaced, the
funds are unavailable for use in the longer term, and also use of reserves will reduce
the balance available for investment to earn interest for the revenue account.
7.11
Table 15 below provides a summary of the impact that each of the above
workstreams will have on the financial forecasts. Where applicable part year
savings/income have been assumed in 2014/15 increasing to a full year in 2015/16.
Table 15 - Updated Financial Forecast
Forecast Budget Gap (Table 11, Section 4)
2014/15
2015/16
2016/17
£000
£000
£000
(31)
902
1,629
Reorganisation and Restructuring (7.2.1)
(100)
(150)
(150)
Contracts and Procurement (7.2.3)
(150)
(300)
(300)
Opportunities for Shared Services (7.2.4)
(25)
(25)
(25)
Income Maximisation (7.2.6)
(50)
(50)
(50)
Policy Framework Changes (7.2.7)
(50)
(70)
(70)
Sub Total Workstream
(375)
(595)
(595)
Forecast Budget Gap
(406)
307
1,034
Workstream:
Financial Strategy 2014/15 to 2016/17
August 2013
64
Page 23 of 25
7.12
Over the first two years, there is a balanced budget position. There is still a need to
identify further savings of just over £1million to deliver a balanced budget for
2016/17. As detailed within 7.2 there are still further workstreams for which savings
have not yet been quantified for example growth strategy and IT and Customer
Services Strategy, as this work is progressed further savings that are identified will
reduce the forecast budget gap.
Financial Strategy 2014/15 to 2016/17
August 2013
65
Page 24 of 25
8.
SUSTAINABILITY AND RISK
8.1
The Council works within the constraints of central government funding allocations
and its control over council tax increases. The on-going downward pressure on
resources will, over time, constrain the level of service delivery that the Council is
able to provide. The legal requirement to set a budget that balances ensures care in
preparing figures and proposing changes to service levels which may require upfront
investment.
8.2
There are a number of risks that the Council continues to face in terms of future
funding, a number of these have been referred to within the report and include the
current government consultations on the New Homes Bonus and the Local Growth
Funds and the Local Government Finance Settlement 2014/15 and 2015/16. The
outcomes of both of these will have an impact on the financial forecast included in the
document. As the detail of the budget for 2014/15 is completed for presentation and
approval in February 2014 the impact of these will be taken into account and the
budget position and future projections revised accordingly.
8.3
Undoubtedly the changed arrangements for central government funding through
Retained Business Rates combined with the move to a Local Council Tax Support
scheme have both moved the financial risks within these arrangements from a
national to a local stage.
8.4
To address this risk the increase in the general reserve in 2013/14 and the
amendment recommended within this report will provide a financial cushion to
mitigate the risk if the new arrangements do not operate as predicted.
M:\Accountancy\Shared Information\Financial Plan\2014-15\Document & Appendices Revised Ver
2\Financial Strategy 14-15 onwards Sept Cab v2.0.docx
Financial Strategy 2014/15 to 2016/17
August 2013
66
Page 25 of 25
Appendix E
Appendix A - New Homes Bonus and the Local Growth Fund - Technical Consulation Example Mechanisms
Mechanism 1
Notes
Flat percentage of all NHB pooled by
all authorities.
Forecast value of NHB to be allocated (Nationally) 2015/16
£ 1,140,000,000
£400 million as a %age of total NHB
Example NHB paid to authority (before 80/20 tier split)
Mechanism 2
Notes
100% of Upper tier and balance from
lower tier authorities.
£ 1,140,000,000
35.09%
£
1,000,000
Upper Tier Allocation
£
200,000
Lower Tier Allocation
£
Contribution required for pooling to Local Growth Fund (of total
NHB paid)
Amount retained locally (total)
35.09%
£
1,000,000
20% of £1m
£
200,000
20% of £1m
800,000
80% of £1m
£
800,000
80% of £1m
£
350,900
35.09% of £1m
£
350,900
35.09% of £1m
£
649,100
£
649,100
Upper Tier Contributes
£
70,180
20% of £350,900
£
200,000
100% of allocation
Lower Tier Contributes
£
280,720
80% of £350,900
£
150,900
Balance required
£
129,820
£
£
519,280
£
Current Method, amounts retained:
Contributions made:
NHB amount retained:
Upper Tier retained
Lower Tier retained
Reduced allocation (after pooling) compared to current
mechanism:
Upper Tier
Lower Tier
649,100
(£70,180)
(£200,000)
(£280,720)
(£150,900)
67
Appendix F
Appendix B
Reserves Statement 2013/14 Financial Strategy 2014/15 to 2016/17
Reserve
Purpose and Use of Reserve
Balance
at
31/3/2013
£
General Fund General Reserve
A working balance and contingency, current recommended
balance is £1.6 million. This also includes the rellocation of a
number of previously earmarked reserves to be used over the
next three years,and from 2014/15 part of the previous
balance within the New Homes Bonus reserve. *
Updated
Budgeted
2013/14
Movement
£
Updated
Budgeted
Balance
Balance at
2014/15
at
1/4/2015
Movement
1/4/2014
£
£
£
Budgeted
Budgeted
Balance at
Balance at
2015/16
Movement
1/4/2016
1/4/2017
Movement
2016/17
£
£
£
£
1,745,452
213,916 1,959,368
400,548
2,359,916
(200,000)
2,159,916
0
2,159,916
(586,180) 1,477,045
255,600
1,732,645
0
1,732,645
0
1,732,645
Earmarked Reserves:
Capital Projects
To provide funding for capital developments and purchase of
major assets. This includes the VAT Shelter Receipt.
2,063,225
Asset Management
To support improvements to our existing assets as identified
through the Asset Management Plan.
64,718
(53,049)
11,669
0
11,669
0
11,669
0
11,669
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.
671,792
(19,213)
652,579
0
652,579
0
652,579
0
652,579
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.
542,065
98,104
640,169
(25,000)
615,169
(25,000)
590,169
0
590,169
Carbon
Management
To fund revenue invest to save initiatives and projects within
the Carbon Management Plan.
21,180
(21,180)
0
0
0
0
0
0
0
Coast Protection
To support the ongoing coast protection maintenance
programme ands carryforward funding between financial
years.
60,000
(60,000)
0
0
0
0
0
0
0
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.
36,270
(8,820)
27,450
0
27,450
(5,000)
22,450
Economic
Development and
Tourism
Earmarked from previous underspends within Economic
Development and Tourism Budgets along with funding
earmarked for Learning for Everyone.
32,248
(25,000)
7,248
0
7,248
68
7,248
22,450
0
7,248
Appendix B
Reserves Statement 2013/14 Financial Strategy 2014/15 to 2016/17
Reserve
Purpose and Use of Reserve
Balance
at
31/3/2013
£
Updated
Budgeted
2013/14
Movement
£
Updated
Budgeted
Balance
Balance at
2014/15
at
1/4/2015
Movement
1/4/2014
£
£
£
Election Reserve
Established to meet costs associated with district council
elections, to smooth the impact between financial years.
30,000
30,000
60,000
30,000
90,000
Environmental
Health
Earmarking of previous underspends and additional income to
meet Environmental Health initiatives.
33,200
(20,000)
13,200
0
13,200
Environmental
Policy
Earmarking of a previous underspend to meet future costs of
environmental policy initiatives.
0
0
0
0
0
Unspent Grants
Revenue Grants received and due to timiing issues not used
in the year.
47,963
(47,963)
0
Housing
Previously earmarked for stock condition survey and housing
needs assessment.
242,000
(142,000)
100,000
Treasury (Property) Property Investment (Treasury), to smooth the impact on the
revenue account of interest fluctuations.
Reserve
66,068
0
66,068
66,068
Land Charges
To mitigate the impact of potential income reductions.
50,356
0
50,356
50,356
Legal
One off funding for Compulsory Purchase Order (CPO) work
and East Law Surplus.
47,555
(33,750)
13,805
0
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding
commitments and liabilities.
82,677
(25,949)
56,728
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
New Homes Bonus
Established for supporting communities with future growth and
development.*
611,678
Organisational
Development
To provide funding for organisation development to create
capacity within the organisation and address anomalies within
the pay structure.
69,997
Budgeted
Budgeted
Balance at
Balance at
2015/16
Movement
1/4/2016
1/4/2017
Movement
2016/17
£
(60,000)
30,000
£
30,000
13,200
0
0
0
13,200
0
0
0
0
0
100,000
66,068
0
66,068
0
50,356
0
50,356
13,805
0
13,805
0
13,805
0
56,728
0
56,728
0
56,728
0
435,000
0
435,000
0
435,000
628,496 1,240,174 (639,626)
600,548
0
600,548
0
600,548
0
0
0
0
0
69
0
0
100,000
0
60,000
100,000
(69,997)
0
£
£
Appendix B
Reserves Statement 2013/14 Financial Strategy 2014/15 to 2016/17
Reserve
Purpose and Use of Reserve
Balance
at
31/3/2013
£
Partnership Budgets
This reflects the balance of funding on the Revenues and
Benefits Partnership project. This will be utilised in 2013/14.
Pathfinder
To help Coastal Communities adapt to coastal changes.
Updated
Budgeted
2013/14
Movement
£
Updated
Budgeted
Balance
Balance at
2014/15
at
1/4/2015
Movement
1/4/2014
£
£
£
35,000
(35,000)
0
0
0
265,825
(128,358)
137,467
(36,813)
100,654
134,954
(123,619)
11,335
(8,000)
3,335
37,837
0
37,837
0
37,837
Budgeted
Budgeted
Balance at
Balance at
2015/16
Movement
1/4/2016
1/4/2017
Movement
2016/17
£
£
£
£
0
0
0
(28,426)
72,228
(18,126)
54,102
0
3,335
0
3,335
37,837
0
37,837
Previously unspent Housing and Planning Delivery Grant
Planning - Revenue (HPDG) for use on related revenue projects, timing to be
confirmed.
Regeneration
Projects
Carry forward of underspends relating to Regeneration
Projects.
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 resrve will depend on when business
cases are approved.
694,074
(41,500)
652,574
0
652,574
0
652,574
0
652,574
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
24,820
0
24,820
0
24,820
0
24,820
0
24,820
The pier
To be used to support the costs of works to Cromer pier.
15,000
(15,000)
0
0
0
0
0
0
Whistle blowing
Commissioning investigation activity as required.
10,000
(10,000)
0
0
0
0
0
0
0
(496,062) 7,674,892
(23,291)
7,651,601
(318,426)
7,333,175
11,874
7,345,049
Total Reserves
8,170,954
70
Agenda Item No___13_________
Local Investment Strategy – Provision of loans to Registered Providers
Summary:
This report seeks approval to issue loans to
Registered Providers to support the delivery of
new housing across the district as part of a Local
Investment Strategy. Such loans will be on a
commercial basis generating a rate of return
which would be greater than the return currently
being achieved on the Council’s short term
treasury investments.
Options considered:
The Housing and Planning Policy Board
considered four options for inclusion in the Local
Investment Strategy. Option 1 – disposal of land
will continue using existing powers for disposal.
Option 2 – provision of commercial loans to
Registered Providers was considered to provide
the best outcomes to the Council and was
recommended to Cabinet for adoption. Option 3 –
Provision of land and loan to a Registered
Provider was supported but was not as
straightforward to deliver as Option 2. Option 4 –
formulation of a Joint Venture was considered to
be too slow and complex to meet the Council’s
needs at this time.
Conclusions:
The economic climate has meant that Registered
Providers have had to identify new sources of
long term finance and as a result there is a need
for medium term loans which will allow
Registered Providers to access long term finance
by developing a portfolio of properties of the
required size. The Council has seen the return it
achieves on its short term treasury investments
significantly reduce over the last 5 financial years.
The Council has therefore looked to develop a
Local Investment Strategy which will allow it to
invest in a sustainable way in supporting housing
delivery. Providing loans to Registered Providers
on a commercial basis meets this requirement
whilst also generating additional interest income
and providing wider economic benefits to reflect
the increase in the number of dwellings provided
in the District.
The Council can provide loans on the equivalent
of commercial terms under existing powers and
such loans would be compatible with EU
procurement and State Aid rules. Initially up to
£3.5million will need to be allocated for the
71
provision of such loans.
As the Registered Providers will be providing both
affordable housing and market housing the
Council may need to provide some or all of the
loan finance to the Registered Providers’ wholly
owned subsidiary as the subsidiary will deliver the
required market housing.
Recommendations:
It is recommended to Full Council that:
1. the Council provides loan funding as
detailed in this report to Registered
Providers and/or their wholly owned
subsidiaries to facilitate the provision
of more housing in North Norfolk.
Initially funding of up to £3.5million to
be made available.
2. the Treasury Management Strategy is
amended to:
 Allow for the provision of loans
to Registered Providers and/or
their wholly owned subsidiaries
 Change the Minimum Revenue
Provision (MRP) Policy to allow
for Capital Receipts from
principal repayments on loans
made on an Equal Instalment of
Principal (EIP) basis to be
applied to finance the Capital
Financing Requirement.
3. £3.5 million be included in the 2013/14
capital programme for loans to
Registered Providers to be funded
partly (£1,168,478) from a virement
from the Housing Associations capital
budget and £2,331,522 from internal
borrowing or external borrowing as
required.
Reasons for
Recommendations:
To increase the provision of housing, including
affordable housing across the district which
supports the Corporate Plan.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Local Investment Strategy report to Housing and Planning Policy Board meeting on 8 July
2013.
Legal advice
Cabinet Member(s)
Ward(s) affected All
72
Contact Officer, telephone number and email: Nicola Turner, 01263 516222,
nicola.turner@north-norfolk.gov.uk
1.
Introduction
1.1
The delivery of more housing is important, not only does it contribute
to the delivery of the Council’s Corporate Plan but also supports the
Council’s financial position through growth in the Council Tax base
and New Homes Bonus funding. The Council has recently approved
a Housing Incentive Scheme to incentivise the quick delivery of more
housing across the district, which will be both market and affordable
housing. Increasing housing delivery also has wider economic
benefits through stimulating employment opportunities and the local
economy.
1.2
The Council has a long history of supporting the provision of
affordable housing through the provision of subsidy as free or
discounted land and grant funding. However, the Council’s remaining
land is limited and grant funding is no longer sustainable, the Council
has therefore considered how it can support more housing delivery in
a sustainable way.
1.3
The subsidy for affordable housing only funds part of the costs of
providing the homes and Registered Providers therefore take out
private finance to cover the remaining costs. The amount of finance
which can be supported is limited by the rents which can be charged.
In the past, Registered Providers have accessed this finance on
competitive terms for a period of 25-30 years from Banks and Building
Societies. However, such loans are now rare and Registered
Providers are therefore seeking other forms of finance, such as Bonds
or Leaseback arrangements with pension funds. These forms of
funding generally require a large portfolio of new housing to be
included and there is a need for shorter term loan finance of around
10 years, in order to build up a sufficiently large portfolio of properties
for the new funding sources.
1.4
The Council invests its short term surplus funds in order to achieve an
income. The Treasury Management Strategy sets out how and where
the Council places its investments. Due to the current economic
climate the Council has seen a reduction in the level of income this
type of investment has achieved, over the last five financial years
(2008/09 – 2012/13) the Council has seen its returns from cash
investments fall from £1,300,000 to £206,000 per annum. With the
average rate of interest falling from 5.41% in 2008/09 to 0.82% in
2012/13. It is expected that rates will stay low for the foreseeable
future. The Council has therefore been looking to develop a Local
Investment Strategy which will allow it to support housing
development in a sustainable way whilst also generating additional
income streams, i.e. increased Council Tax, additional New Homes
Bonus and the loan interest received.
73
1.5
The Council has invested £5million in the LAMIT pooled property fund
for a period of 5 years which is anticipated to provide a return of 5%
(£250,000) for 2013/14. This treasury activity produces a higher
return than a loan to a Registered Provider (depending on market
rates for such loans) but does not fulfil the wider objective of
supporting housing delivery and income to the Council.
1.6
This proposal therefore supports the Corporate priority of increasing
the number of homes across the district with the added benefit of
providing the additional income streams identified at 1.4. Such an
approach would also address an action in the Housing Strategy
(Housing and Infrastructure) 2012-2015 to explore opportunities to
invest in the delivery of affordable housing in the District, e.g. through
the provision of loan finance to Registered Providers. On this basis,
the provision of loans on commercial type terms to Registered
Providers has been proposed.
2.
Loans to Registered Providers
2.1
The loan would be specifically provided to support the delivery of new
housing in the North Norfolk District Council area. The loan would
support the delivery of more affordable housing and market housing
where this is being used to provide the subsidy required to provide
affordable housing. The loan would directly fund the cost of providing
the new homes, including initial costs such as land, planning as well
as the build cost. The loan would be repaid on a repayment basis so
that the entire loan is repaid by the end of the loan period. Whilst it is
expected that the loan will be for up to 10 years, some parts of the
loan (which supports the market dwellings) are likely to be repaid
earlier. There is also the possibility that the loan will be repaid within
the loan period when/if the Registered Provider refinances to access
bonds or other funding. The allowance of, or financial compensation
for, the early repayment of the loan would need to be negotiated at
the outset and be included as part of the loan agreement.
2.2
The Council sought specific legal advice on the provision of such
loans (and 3 other options to support housing delivery). This advice
confirmed that the Council has the legal powers to provide
commercial loans using 2 specific powers. Section 1 of the Localism
Act 2011 (the power of general competence) allows the Council to
provide a loan for building dwellings for sale. Section 24 of the Local
Government Act 1988 provides for financial assistance including
loans to be provided for the building of homes to rent and for shared
ownership.
2.3
Both powers will be required to be utilized to provide loans to
Registered Providers. The loan should be paid to the Registered
Provider and / or its wholly owned subsidiary. Many Registered
Providers have established wholly owned subsidiaries which are
commercial companies which can then gift aid profit back to the
parent Registered Provider. This structure benefits the parent
Registered Provider as the wholly owned subsidiary is able to provide
commercial services, such as the provision of market housing through
the wholly owned subsidiary, which it would not be able to do directly.
The gift aided profit is tax free and when market dwellings are
provided this maximizes the amount of cross subsidy achieved from
the profit on the market dwellings. That part of the loan which
74
supports the market dwellings must be paid to the wholly owned
subsidiary directly as the Registered Provider cannot on lend any
finance that it has borrowed to its wholly owned subsidiary.
2.4
The legal advice sought considered whether there would be any State
Aid or procurement requirements of providing commercial loans. The
legal advice has shown that as long as the loan is on the equivalent of
a commercial basis where the terms of the loan in terms of interest
charges, repayment arrangements, collateral taken and the term of
the loan are reflective of commercial loans, then the loan would not be
State Aid. The legal advice provides guidance on how to ensure that
the loan is provided on a commercial basis. The Council will not need
to carry out a formal EU procurement exercise as long as the terms of
the loans do not control what form of housing is developed. The
Council will also need to widely publicise the availability of the loans
to Registered Providers.
2.5
As the availability of loans will need to be widely advertised, the
finance currently available for such loans (see section 3.2 below)
necessitates that the loan is allocated on a first come first served
basis. The Council will advertise the availability of the loans and will
require bids for the loan finance to be submitted.
2.6
In order to ensure that a loan is commercial the Council cannot be
prescriptive within the loan contract of what the loan will be used to
provide, although it can require that it funds housing development.
The bid process will therefore ensure that the Council has sufficient
information to assess whether the provision of a loan would meet the
Council’s requirements to increase housing provision in North Norfolk
and the timescales for when development is expected to commence
and complete.
3
Implementation
3.1
The provision of loans as outlined above would need to be financed
as capital expenditure in the same way as any other capital project
would need to be funded. Capital financing could be from capital
receipts, capital projects reserves, revenue contributions (or other
revenue earmarked reserves if available), internal borrowing (from
cash resources), unsupported or prudential borrowing. As the loan
would be on a commercial basis, if borrowing is used to fund the
provision of loans, the commercial rate charged would exceed the
costs of borrowing (costs of borrowing would include interest,
provision of repayment of debt (MRP)).
3.2
Initially a capital scheme of £3.5m would be need to be recommended
for approval within the capital programme and could be a combination
of the capital financing resources discussed at 3.1. The provision of
loans up to £3.5million would need to be recommended for approval
in the Council’s capital programme. In addition the Council’s Treasury
Management Strategy will be updated to include the provision of
commercial loans to Registered Providers.
3.3
Within the current capital programme there is currently £1,168,478
uncommitted within the Housing Associations Capital Scheme which
could be utilised as part funding for the loan scheme. The balance of
£2,331,522 would be an addition to the capital programme to be
funded from internal borrowing.
75
3.4
The key stages of providing loans are:

Agreeing the funding/financing

Advertising of availability of loans

Assessment of bids received – including due diligence process

Agreement in principle to provide loan(s).

Loan negotiation

Agreement to provide loan(s) and formal sign off of loan(s)

Cabinet approval

Loan contract completed and loan paid

Monitoring of repayments and outcomes
Appendix G includes a flowchart which sets out each of these stages
and who is responsible for progressing each stage. The appendix
also provides information on what information will be required from
Registered Providers to assess their bid for loan finance.
3.5
The Council will retain a full right of discretion to ensure it has the right
to refuse to provide a loan where there are insufficient funds available
or when a submitted bid does not meet the Council’s requirements in
terms of outcomes, value for money or risk mitigation.
4
Options Considered
4.1
The Housing and Planning Policy Board considered 4 options for
increasing housing delivery and sought legal advice on each of these
4 options which are discussed below.
4.2
Option 1: Disposal of land
The Council has a long history of providing land to Registered
Providers at a nil or reduced cost. This has been successful in
increasing affordable housing, however, the Council has few housing
sites left. Whilst a review of general fund land may identify other sites
which will be suitable for residential development this is a finite
resource. The Council will continue to provide land for residential use
but will sell land in order to generate a capital receipt for the authority
using existing disposal powers.
4.3
Option 2: Provide Loans
This option was recommended to Cabinet for adoption because of the
benefits it provides as a sustainable way of supporting increased
housing provision and the financial benefits it offers to the Council.
4.4
Option 3: Provide loans and land in a package to one Registered
Provider
Option 3 proposed providing a loan of up to £3.5m to one Registered
Provider in conjunction with free land. Such an approach raised the
potential that the Council would be required to carry out an EU
procurement to select the Registered Provider and also issues of
State Aid. Secretary of State consent would also have been required
as the loan and land would have supported the delivery of market
housing. Whilst such an approach was of interest, Option 2 was
preferred.
76
4.5
Option 4: Joint Venture
This option considered the establishment of a Joint Venture with a
private company or the Council setting up a wholly owned company.
Either approach would require the Council investing land and / or
capital. This option was discounted at this time as it would be too
complex and too slow at delivering any benefits to the Council.
5
Conclusions
5.1
The economic climate has meant that Registered Providers have had
to identify new sources of long term finance and as a result there is a
need for medium term loans which will allow Registered Providers to
access long term finance by developing a portfolio of properties of the
required size. The Council has seen the return it achieves on its short
term treasury investments significantly reduce over the last 5 financial
years. The Council has therefore looked to develop a Local
Investment Strategy which will allow it to invest in a sustainable way in
supporting housing delivery. Providing loans to Registered Providers
on a commercial basis meets this requirement whilst also generating
additional interest income and providing wider economic benefits to
reflect the increase in the number of dwellings provided in the District.
The Council can provide loans on the equivalent of commercial terms
under existing powers and such loans would be compatible with EU
procurement and State Aid rules. Initially up to £3.5million will need to
be allocated for the provision of such loans.
As the Registered Providers will be providing both affordable housing
and market housing the Council may need to provide some or all of
the loan finance to the Registered Providers’ wholly owned subsidiary
as the subsidiary will deliver the required market housing.
6
Implications and Risks
6.1
The provision of loans to Registered Providers to fund housing
provision is innovative with only a small number of other Local
Authorities currently providing such loans. As such there could be a
risk of legal challenge on the grounds of lawfulness, State Aid and EU
procurement rules. In terms of State Aid, if the provision of loan(s)
was challenged and this was upheld, the loan would have to be repaid
in full with interest by the Registered Provider.
6.2
As the amount of any loan finance is likely to be limited (initially
£3.5million) there is a risk of challenge from Registered Providers that
have either not yet bid for a loan or where their bid has been
unsuccessful. To mitigate against this risk, the Council will advertise
the availability of the loan widely to all Registered Providers which are
actively developing new affordable homes across Norfolk. This
advertising process will ensure the Registered Providers are clear on
what basis bids are to be made and how they will be judged. The
assessment of bids will be undertaken using the stated criteria (see
Appendix ).
6.3
The provision of a loan will act to increase the delivery of new homes
across the district by ensuring that the successful Registered
77
Provider(s) have the medium term funding they require in order to
develop. If the Council choose not to provide a commercial loan, it
would reduce the number of homes developed in the District by
reducing the finance available for new homes.
6.4
The provision of loans may be considered to be a reputational risk
particularly as it would support delivery of market housing and this
could be considered to be a function which should be left to the private
sector. However, the market housing provided will support the
delivery of affordable housing by generating cross subsidy and such
an approach is already an accepted delivery method for affordable
housing provided by the private sector. The Council in providing such
loans is acting as an enabler to meet the need for both market and
affordable housing across the District and will use existing powers to
provide the loans.
6.5
If the Council uses most or all of its capital receipts and cash
resources to fund the provision of loans, any need for capital
expenditure which cannot be funded from remaining resources or
capital receipts arising during the period of the loan will either not be
met in full or will need to be funded using prudential borrowing. The
cost of prudential borrowing from the Public Works Loan Board is
however lower than the commercial rate of interest which would be
expected to be charged on the loan to a Registered Provider. Before
any loan was issued, the Council should ensure that the loan interest
rate exceeds that of the Public Works Loan Board which will provide
some mitigation against this risk.
7
Financial Implications and Risks
7.1
As stated at 3.4 above, there will be a requirement for a due diligence
process to be undertaken as part of the decision making process on
granting a loan. This will require expert external advice from both a
financial and legal perspective. In 2013/14 there is a finance budget
available for this work but additional funding will be required for the
legal advice. The amount required has not yet been determined.
This cost could potentially be funded from the New Homes Bonus
reserve.
7.2
The current rate of return on the Council’s short term investments
shown at 1.4 above are achieved through the exercise of the treasury
function. Whilst these have been provided for comparison, the
reason for the provision of loan to a Registered Provider is to fulfil
Corporate and Service objectives rather than being a function of
treasury management.
7.3
The likely interest rate to be charged on the loan(s) will be determined
in part, on the outcome of the due diligence process. It will also be
set to reflect the return a private provider of commercial loans would
expect to achieve on a loan of the same value and on the same terms
(period of loan, repayment method and collateral). However,
modelling on the basis of a loan of £3.5m at 1.25% above the Public
Works Loan Board rate (at 27 June 2013) shows where interest is
paid 6 monthly on a repayment basis the following returns:
Term
Interest
10 years
3.74%
15 years
4.44%
78
20 years
4.94%
25 years
5.47%
Total
£727,000
£1,330,000 £1,470,000
£3,62,000
Interest
Receivable
Interest per £72,740
£88,750
£102,446
£122,080
annum
Please note that the return shown above is indicative and may be less
depending on the required accountancy treatment and the type of
transaction.
If internal borrowing was the method of funding this loan, then there
would be a loss of interest on monies currently invested on a short
term basis. The table below shows net interest receivable per annum
as a result of providing a commercial loan, assuming that the loan
was fully funded using internal borrowing.
Term
Loan
Interest per
annum
(£3.5million)
Interest lost
per annum
(£3.5million
at 0.82%)
Net increase
in interest
receivable
per annum
10 years
£72,740
15 years
£88,750
20 years
£102,446
25 years
£122,080
(£28,700)
(£28,700)
(£28,700)
(£28,700)
£44,040
£60,050
£73,746
£93,380
Should external borrowing be required to finance this loan then the
net interest figure would be reduced further by the amount of interest
paid on the external borrowing. However, this excludes the wider
benefits that the provision of loans provides, such as the additional
income from the loan fee, Council Tax and New Homes Bonus. Both
tables show the interest which will be received on the loan only,
however the loan will be on a repayment basis with capital being
repaid (along with interest) throughout the period of the loan. On this
basis the loan will be fully repaid at the end of the loan period.
Whilst the tables above gives an idea of the level of income which the
Council could achieve on the loan(s) whether that rate of return is a
competitive return will depend on prevailing interest rates for the
period of the loan. Currently the return would be significantly higher
than is currently being achieved. Where this accords with the terms
of commercial loans provided by the private sector, the Council loan
will include a review on the interest rate to be charged. If no such
return is required of commercial loans there is a risk that the Council
could, if interest rates increase, achieve a lower return than could be
achieved from other investments. This can be mitigated against in
part by ensuring that the interest rate charged on the Council’s loan is
fully reflective of current commercial rates of interest. The
commercial loan is a medium term loan and the return achieved
should be judged when assessed as the total return achieved over the
period of the loan. Additionally as that part of the loan which is
79
provided to a wholly owned subsidiary of a Registered Provider will be
for a shorter period this reduces the risk of interest rate increases
reducing the rate of return achieved on the loan overall.
7.4
The advancing of a loan to a Registered Provider must be treated as
capital expenditure by the Council. This expenditure will give rise to a
Capital Financing Requirement (CFR). If there are no useable capital
receipts, revenue or reserves immediately available then a charge
known as a Minimum Revenue Provision (MPR) must be made to the
Revenue Account over the life of the underlying asset (which would
impact upon the Council Tax payer).
MRP can be avoided by applying the loan repayments made by the
Registered Provider each year to finance the capital expenditure.
As per the recommendations, the Treasury Management Strategy will
be updated to include instances where capital receipts from loan
repayments will be used to finance capital expenditure.
7.5
There is a risk that the Registered Provider could default on the loan
or become insolvent, however, the due diligence process will include
an assessment of the financial capacity of the Registered Provider to
repay the loan. In addition the Council will require collateral in the
form of a legal charge on property or land assets which will be at least
110% of the value of the Council’s loan. The level of charge will be
higher if required based on an assessment of the level of risk.
Sections 148-168 of the Housing and Regeneration Act 2008 provides
specific protections which reduce the risk of default due to insolvency,
this act provides for a moratorium period of 28 days (this can be
extended) to be imposed. The moratorium provides time for a rescue
package to be put in place to prevent affordable homes being lost to
repay debt. To date, whilst there have been 2 high profile cases of
Registered Providers facing insolvency, neither became insolvent and
became part of larger Registered Providers which prevented the loans
defaulting. In addition the Homes and Communities Agency monitors
the financial capacity of all developing Registered Providers which
provides a further mitigating factor in reducing risk. The Council’s
secured charge would (along with any secured charges) be a first
priority debt in any insolvency case.
7.6
Where part of the Council’s loan requires sales of market or
intermediate housing to repay the loan, there is a risk that poor sales
(in terms of the time taken to sell or the price achieved) could impact
on the Registered Providers ability to repay part of the loan. This will
be mitigated by ensuring that the loan period reflects a ‘worst case
scenario’ period for repayment of the shorter term loan and by
ensuring that interest is repaid to the Council throughout the period of
the loan. This will be considered as part of the due diligence process.
8
Sustainability
8.1
All the new homes will be provided in accordance with current building
regulation standards and in compliance with the requirements of the
Council’s Core Strategy which requires homes are built to Level 3 of
80
the Code for Sustainable Homes. A Registered Provider in receipt of
a loan from the Council could apply for some or all of the homes to be
included within the Housing Incentive Scheme which could mean that
the Council’s renewable energy and code requirements could be
removed. However, this would need to be considered against the
wider benefits the homes would deliver.
9
Equality and Diversity
9.1
There are no equality and diversity implications.
10
Section 17 Crime and Disorder considerations
10.1
There are no section 17 implications.
81
Appendix G
Loans for Registered Providers
This paper sets out the process for considering bids submitted by Registered
Providers to the Council for a loan to be provided on the equivalent of
commercial terms to fund the development of homes within the North Norfolk
District Council area and sets out the process for issuing a loan. This paper is
divided into 3 parts.
Part 1 sets out the process for issuing a loan from advertising the availability
of loans to completing the loan contract and paying the loan. Part 2 sets out
how bids for loans will be considered and the criteria which will be used to
determine whether a loan will be issued. Part 3 sets out the information which
must be submitted by Registered Providers when they bid for a loan.
Part 1
The key stages of providing loans are:

Agreeing the funding/financing

Advertising of availability of loans

Assessment of bids received – including due diligence process

Agreement in principle to provide loan(s).

Loan negotiation

Agreement to provide loan(s) and formal sign off of loan(s)

Cabinet approval

Loan contract completed and loan paid.
The flow chart on page 2 provides full details of all the stages of providing
loans, only loans which pass the assessment, due diligence and loan
negotiation stages and are agreed by Cabinet will be issued with a loan.
The Council retains the right to refuse to provide a loan where there is
insufficient funding available to fund the loan or where a submitted bid does
not meet the Council’s requirements in terms of outcomes, value for money or
risk mitigation.
1
82
Appendix G
TASK
RESPONSIBILITY
COMMENTS
Agree the Funding
Finance
Advertise Loan &
Loan Terms
Housing
Clear terms for bids
Loan Bids Received
Housing
Outcomes
Financial data
Security
Drawn down
requirements
Delivery Timetable
Assessment of
Loans for outcomes
and VfM
Housing
Due Diligence
Finance
Sign Off Loan In
Principle
Housing & Planning
Policy Board
Sufficient Security
Income to repay
Loan Negotiations
Housing + Finance
Loan terms &
Contract Agreed
Housing + Finance +
Legal
Sign Off
Cabinet
Loan Issued +
Contract Completed
Finance + Legal
Register Council's
Security
Land Charges
Monitoring
Repayments
Finance
Monitoring
General outcomes
Housing
2
83
Rate of interest
External validation
of commerciality
Security
Appendix G
Each stage is discussed below:
Agreeing the funding/financing
Initially the Council will identify how much funding is available for the provision
of loans and the source of the funding. The capital funding can be from
capital receipts, capital projects reserves, revenue contributions (or other
earmarked reserves if available), internal borrowing (from cash reserves),
unsupported or prudential borrowing. Once the amount of funding available
has been identified it will be recommended for approval within the Council’s
capital programme. Once agreed, the next stages of the process will take
place.
Advertising of loan
A letter will be sent to all Registered Providers (Housing Associations) who
are currently actively providing more affordable housing in Norfolk as well as
those who have developed affordable housing within the last 3 years. The
letter will invite bids for a loan, state the amount of loan funding available and
that such loans are on a first come first served basis and at the discretion of
the Council. Attached to the letter will be details of what information needs to
be submitted as part of the bid (see Part 3 and the criteria for assessing bids).
Finally it will provide details of the Council’s requirements for security and the
administration fee of 1.5% of the value of the loan.
Assessment of loan
See Part 2 below
Due Diligence
Through the due diligence process the Council will assess:
 The level of risk of providing a loan
 Whether there is sufficient security available to register at least 110%
of the value of the loan
The due diligence process will consider the score for governance and
financial viability in the Registered Providers most recent Regulatory
Judgement (if this is over 3 years old the Council will request additional
information from the Registered Provider including their most recent Quarterly
Financial Risk Survey and Viability Judgement). In addition it will consider the
credit score or rating of the Registered Provider. This will also ensure that
there is sufficient income to repay the loan. The due diligence process will
finally identify whether there is sufficient security available to secure at least
110% of the value of the loan required. The Council’s charge will be a first
charge on the property or land, where there is demonstrated to be sufficient
equity in a property or land a second charge will be acceptable for part of the
loan amount.
Sign off Loan In Principle
The assessment of loan and due diligence process will result in a
recommendation of whether or not to approve a loan in principle. This
recommendation will be prepared by Housing. The final decision of whether
or not to agree in principle to issue the loan will be made by the Housing and
Planning Policy Board.
3
84
Appendix G
Loan Negotiations
Housing and Finance will lead discussions once agreement in principle has
been reached to provide a loan on the terms of the loan. Finance will identify
the level of interest to be charged and the required level of security, as well as
the repayment arrangements. Finance will confirm that the loan is
commercial, which may require external verification. Finance will also ensure
that the loan interest rate exceeds the current Public Works Loan Board
interest rate for a loan for the equivalent period. The Registered Provider will
provide details of the properties/land which will be used to secure the
Council’s loan. If there is already a first charge on a property, the Registered
Provider will provide an open market valuation to allow an assessment of
whether there is sufficient equity for a second charge in favour of the Council.
Loan Terms and Loan Contract agreed
Legal (in house or external) will be responsible for preparing a loan contract
which reflects the agreed terms of the loan.
Sign Off
The final decision to issue a loan will be made by Cabinet. Housing will be
responsible for coordinating the report to Cabinet.
Loan Issued and Contract Completed
Once the loan contract has been completed by Legal, Finance will be
responsible for issuing the loan in the agreed drawdown tranches.
Register Council’s Security
As the loan is paid, Finance will liaise with Land Charges to register the
required level of security
Monitoring
During the period of the loan, Housing will be responsible for monitoring the
terms of the contract and whether the outcomes set out in the bid for the loan
are being delivered. Finance will be responsible for monitoring repayments
and also payment of the administration fee (1.5% of the value of the loan to
be paid in two instalments with the first instalment of 50% paid on completion
of the contract and the remaining 50% paid when the first tranche of loan is
paid.)
Repayment of Loan
When the loan is repaid in full, Finance will notify Land Charges to remove the
registered charge.
Part 2
Bids will be considered against the following criteria:
 Amount of loan in relation to available funding (initially £3.5m).
 The loan must be used for building new homes in the North Norfolk
District Council area.
 The loan term is to be no more than 10 years unless otherwise agreed
by the Council.
4
85
Appendix G




The facility may be drawn down in one lump sum or in agreed tranches
over a 3 year period.
The loan will be secured with a minimum of a 110% charge being
placed on the housing stock of the Registered Provider, incorporating a
five year revaluation period at the RP’s expense.
Number of dwellings to be developed and Value for money.
Risk.
All bids will be scored against the above criteria and a formal record of the
scoring will be kept for each bid received.
The due diligence process will assess the level of risk of
requested sum to the Registered Provider. The score for risk will
to ensure that where the risk cannot be sufficiently mitigated
required levels of security or an appropriate commercial rate of
only a low overall score for the bid can be achieved.
lending the
be weighted
through the
interest that
Where more than one bid is received for loan funding and the total value of
the loans requested exceeds the funding available, the bid with the highest
score will be recommended for approval in principle. Alternatively where the
scoring is close or equal, the Council will seek clarification of whether smaller
loans which total the funding available would be of interest to the Registered
Providers.
Part 3
Registered Providers will be required to provide the following information in
order to a bid for loan funding to be considered:
Name of Registered Provider
Amount of loan requested
Period of loan
(Note: where the loan is to be provided in full or part to a wholly owned
subsidiary, the following information is also required:
Name of subsidiary
Amount of loan to be paid to subsidiary
Period of loan to subsidiary)
Draw down requirements – amount and timing of tranches.
Outcomes:
Number of dwellings to be developed by tenure (market, intermediate,
affordable rent)
Expected Start of Site date of first dwellings to be started
Expected Completion date of first dwellings to be completed
Expected Completion date of last dwellings to be completed
Expected timescale for sale of market dwellings
Expected locations of schemes
Due Diligence:
Copy of most recent financial accounts and Audited Accounts
Copy of most recent HCA Regulatory Judgement.
Credit Score or Rating
5
86
Appendix G
Value of unsecured stock
6
87
Report to Cabinet 8 September 2013, Overview and Scrutiny 11 September 2013
Agenda Item No_____14_______
MANAGING PERFORMANCE – QUARTER 1 2013/14 - DRAFT
Summary:
The purpose of this report is to give a first quarter
progress report in delivering the Annual Action Plan
2013 - 14. 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.
Conclusions:
The majority of activities outlined in this report are on
track with performance being closely monitored. Briefing
notes have been provided in respect of Planning and
Revenues and Benefits and these are shown at
Appendices J and K.
Of the 14 performance indicators where a target has
been set or assessment against the previous year’s
performance is taking place, six are on or above target,
six below target, one improving and one worse
compared to last year.
All identified issues that have arisen are being
addressed by managers and the Performance and Risk
Management Board.
Recommendations:
It is recommended that Cabinet note this report.
Reasons for
Recommendations:
All performance issues identified in this report are being
addressed by the appropriate level of management and
do not require any additional action to be authorised by
Cabinet.
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
Cllr Tom Fitzpatrick
All
Contact Officer, telephone number and email: Helen Thomas, Policy and
Performance Management Officer, 01263 516214, Helen.thomas@northnorfolk.gov.uk
1.
Introduction
88
The purpose of this report is to give a first quarter review of the progress in delivering
the Annual Action Plan 2013-14. It gives an overview for each theme, identifies any
issues that may affect delivery of the plan, the action being taken to address these
issues and proposes any further action needed for Cabinet approval at the meeting in
September 2013. Detailed progress reports for each activity in the Annual Action
Plan 2013-14 are given in Appendix H. Detailed data and management progress
reports for each performance indicator and measure are given in Appendix I.
2.
Progress Report
The Corporate Plan has five priorities, each with specific objectives. The following
paragraphs identify significant milestones that have been achieved, challenges that
are being tackled and action that is being taken to deliver the Annual Action Plan and
achieve the objectives in our priority areas.
3.
Jobs and the Local Economy
3.1
There is a significant amount of activity under this priority area. The
visitnorthnorfolk DMO was successfully launched (July 2013) and to date has
signed up 152 members against an initial target of 127.
3.2
The Enterprise North Norfolk scheme was launched at the end of the last
financial year and in the first quarter has enabled 12 new business start-ups.
3.3
There are some issues with the delivery of projects under the FLAG
programme. All six UK FLAGS are experiencing difficulties in getting projects
approved by the Marine Management Organisation (MMO). However, the
North Norfolk FLAG is on course in terms of committing its allocation of the
European Fisheries Funding (EFF) money and it is likely that the MMO will
extend the deadline date from 31 December 2013 to 31 March 2014.
3.4
The Council retains an aspiration to develop an enterprise hub for new
business start up and enterprise within North Norfolk. The LEP has recently
launched a consultation document called ‘towards a growth plan’, which sets
out the vision and strategy for New Anglia LEP. This will incorporate an
integrated investment programme including the European structural
investment fund and the Regional Growth Programme. The district would be
looking to secure funding through these new arrangements to support its
aspirations in this area.
3.5
The Council has agreed that it will champion apprenticeships in North Norfolk
so work has progressed to design a local awareness campaign. An informal
chat service for businesses is being piloted. In addition we have designed a
pre-apprenticeship course and an apprenticeship awareness session, working
with Jobcentreplus. These will be piloted in July/August and we are planning
to meet with Head Teachers in the Autumn. We will be working with the
County Council to further engage with businesses.
3.6
With the emergence of the Local Enterprise Partnership and a general
improvement in business confidence, the Council is proposing to review the
delivery of its services and services provided through the North Norfolk
Business Forum in the coming months to ensure that the support provided is
fit for purpose and relevant to business needs.
89
4
Housing and Infrastructure
4.1
A business case was completed in the first quarter of the year upon which the
decision not to implement a Community Infrastructure Levy was based. This
work also provided the evidential basis upon which a housing incentivisation
scheme was developed which amends policy requirements in relation to
affordable housing levels and sustainability. This scheme is intended
incentivise developers to bring forward more housing schemes with earlier
completion dates. It will be reviewed after the first year of operation. In the
first quarter 41 affordable dwellings were completed which was a significant
increase on the previous year.
4.2
Progress is also being made in relation to the Local Investment Strategy
which seeks to invest capital to support the delivery of affordable homes
through Registered Providers. A report is due to be presented to Cabinet in
September 2013.
4.3
Although the development brief has not been finalised for the HL Food site in
North Walsham, a planning application has now been received in respect of
this important and high profile brownfield site. It is due to be validated by 23
August 2013.
4.4
Progress is being made with regard to reducing the number of empty homes
on the Council Tax Base through establishing a stable revenues and benefits
system and reducing outstanding work. As at 5 July 2013 the number of
homes empty for 6 months or more has reduced to 647 from 886 at 1 October
2012. The most recent figure, for 2 August 2013, has reduced still further to
582.
5
Coast, Countryside and Built Heritage
5.1
A significant number of projects are being delivered on time and budget as
part of our approach to integrated coastal zone management as detailed in
the appendices. The Cromer Coast Protection Scheme is progressing well
with the design of the scheme completed and the deadline for tenders is 23
August 2013. It is anticipated that a recommendation will be presented to
Cabinet in October 2013.
5.2
The Council has managed to successfully achieve a new Green Flag award
for Pretty Corner woods in Sheringham which now brings the District's total
up to three.
5.3
The first quarter of the new financial year has seen 50% of major planning
applications determined within the statutory time scale. Determination of other
planning applications remains significantly below target timescales, although
a significantly higher number of applications were determined during the
quarter compared to the previous quarter. For a detailed breakdown of
development management performance see Appendices J1 and J2.
5.4
Contractor performance in respect of the Waste Contract has been broadly
satisfactory, although not reaching agreed performance indicator targets,
there has been an improving trend in performance month by month across
90
the quarter. Conversely the number of defaults issued under the contract has
increased month on month reflecting an increasingly closer management of
performance on the part of the Environmental Services Team. Rectifications
and defaults issued under the Cleansing side of the contract have also
increased month on month but reflect isolated failures in performance. This
has been exacerbated by the significant increase in footfall across tourist
areas leading to high usage of litter bins etc. which although anticipated
required Kier to reallocate resource. Increased monitoring by the
Environmental Services Team to ensure that standards of cleanliness across
the district were maintained as high. Kier have recently appointed into a
vacant Supervisor post which is anticipated to improve their internal
monitoring. The use of rectifications and defaults is a common and useful
method of contract management and when used appropriately, can result in
longer term improvements to working practices. Although the target is to
achieve zero defaults the levels issued over the quarter demonstrate effective
contract management rather than significant issues in performance.
6
Localism
6.1
The Localism activities are on track, with the Big Society Fund having
received 16 applications to date this year. The panel awarded grants to three
organisations at their July meeting. These were Edgefield Village Hall Trust,
Sculthorpe Village Management Committee and the Norfolk and Suffolk 4x4
Response. The panel will meet again on 23 September 2013.
6.2
The process in respect of expressions of interest under Community Right to
Challenge and nominations under Community Right to Bid was approved by
Cabinet in April 2013 and relevant guidance is available through the Council’s
website.
6.3
The area’s first Longer Distance Triathlon was held in Cromer on Saturday 27
July and has been hailed as a great success so congratulations and thanks to
all of those involved in bringing forward and helping to organise the event.
7
Delivering the Vision
Customer Service Improvement
7.1
The Cromer front office design plans have now been finalised and have been
shared with Members. Works tenders are currently out with suppliers with the
anticipated start date for the works being the second week in October, with
practical completion and handover expected during November 2013.
Customer Service Reception and Housing Officers will relocate into the
Annex whilst the building work is taking place.
7.2
The Business Transformation Programme, IT Strategy and Customer
Management Strategy are now developed and will be submitted for
consideration by Cabinet in October 2013.
7.3
Work has been undertaken to establish a clearer picture of website usage
using Google web analytics. This information, in conjunction with other
channel access information, will drive future development.
91
7.4
The 'planned approach' to communications is working effectively, with
particularly successful results regarding the 'No Messing' dog fouling
campaign and the 'Big Switch and Save' campaign.
Service Improvement
7.5
In relation to Splash and the leisure contract, discussions have been held with
DC Leisure in relation to contract extensions and potential savings and this is
progressing as anticipated.
7.6
The report on the results of the CCTV Working Party will be going to
Overview and Scrutiny Committee in September 2013 and to Cabinet in
October 2013 with a number of recommendations for consideration, all of
which will result in future revenue savings.
7.7
A number of office moves are progressing to continue to bring the newly
developed service teams together and to try and improve the layout and
operation of the office with a focus on more open plan working.
7.8
A number of capital works are currently in the process of being tendered (car
park relining works) and some of these have already been successfully
completed (Doctors Steps and pier external painting and refurbishment works
in Cromer).
7.9
Both the car park lighting survey and play needs assessment have been
completed, the lighting survey will feed into the capital bidding process for
next year’s budget while the play needs assessment will now enable the
allocation of the £100,000 capital budget approved for the current financial
year.
7.10
Following a very successful promotion in the spring, the Council is to once
again reducing the prices of its seaside beach huts and chalets in the autumn
by giving local residents and visitors the opportunity to enjoy a seaside beach
hut or chalet at a special 25% discount rate. It is hoped this will encourage
additional bookings and visitors at a quieter time of year and also encourage
more bookings next year.
7.11
Performance is improving across the Revenues and Benefits service following
the difficulties experienced with the implementation of the new software and
document management system during 2012, and is now getting close
towards the target performance levels proposed within the business case for
the new system despite the introduction of Welfare Reform, localisation of
Council Tax reforms from April 2013. For further detail see Appendix K.
8
Conclusion
8.1
The majority of activities are on track and performance is being closely
monitored.
8.2
Of the 14 performance indicators where a target has been set or assessment
against the previous year’s performance is taking place six are on or above
target, six below target, one improving and one worse compared to last year.
8.3
The delivery of the Annual Action Plan is progressing according to plan but
there are some performance issues in achieving targets. Detailed Briefing
Notes are given at Appendix J and K showing what is being done to address
these issues.
92
8.4
All identified issues that have arisen are being addressed by managers and
the Performance and Risk Management Board.
9
Implications and Risks
9.1
Prompt action to deal with any performance issues identified by this report will
reduce the risk to delivery of the Annual Action Plan 2013/14 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.
9.2
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.
10
Financial Implications and Risks
10.1
See section 4 above.
11
Sustainability
11.1
There are no sustainability implications of this report.
12
Equality and Diversity
12.1
There are no equality and diversity implications of this report.
13
Section 17 Crime and Disorder considerations
13.1
There are no Section 17 Crime and Disorder implications of this report.
93
Appendix H
Annual Action Plan Activities - Quarter 1 2013/14 Progress Report
These tables show, for each of the themes of the Corporate Plan the progress in delivering the activities in
the Annual Action Plan 2013/14 and action being taken to address any challenges in that delivery.
Key
Activity
Status
Completed
Successfully
Progressing
to Plan
On Track
Symbol
Description
This is for major projects, programmes or service plans and gives an indication that the plan will be
achieved on time, to budget and will deliver the expected outputs and outcomes/ impact.
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
Activity is off track (either by starting after the predicted start date or progress slower than expected),
and it is anticipated that it will not be completed by the predicted end date. Attention is needed from the
lead officer and others to get this activity back on track.
Failed
Activity not delivered and there is no way that it can be.
Jobs and the Local Economy
A - Increase the number of new businesses and support the growth and expansion of existing
businesses
Activity
Status
Progress/ Action Note
AAP 13/14 - J A 01 - We will support
businesses investing in the district
through the provision of
comprehensive advice about District
Council support and signpost to other
agencies as appropriate
On Track
Core services continue to support business development
across the District and the Economic Development team
continues to respond to business enquiries linking clients
to professional support, where required.
AAP 13/14 - J A 02 - We will work with
partners to develop and deliver the
business support scheme Enterprise
North Norfolk
On Track
AAP 13/14 - J A 03 - Working in
partnership we will maximise the
opportunities for investment in the
district through the development of
retail sites
On Track
Flagship programme started February 2013. During
quarter one 53 people came forward for advice and eleven
new businesses were established.
Investigations in relation to relevant sites occur as and
when opportunities become apparent and consultants
remain on a flexible contract.
1
94
Appendix H
Activity
AAP 13/14 - J A 04 - We will seek to
maximise the opportunities for the
district to benefit from investment in
renewable energy developments off
the north Norfolk Coast
AAP 13/14 - J A 05 - 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
AAP 13/14 - J A 06 - We will actively
pursue all options in order to ensure
the future development and operation
of an Enterprise Hub for North Norfolk
as a platform for improving levels of
business start up and enterprise
Status
Progress/ Action Note
On Track
At its meeting in May 2013, the Council's Cabinet noted
the comments received on the proposed Egmere Local
Development Order through the public consultation
process and agreed to make available a budget to
commission a Landscape Visual Impact Assessment and
Stage 1 Habitat Survey so as to strengthen the evidence
base in support of the proposed Order. Delegated
authority was also granted to the Corporate Director to
proceed with preparing final documents in support of the
Order before seeking approval of Council anticipated in
December 2013.
The Council is continuing to hold discussions with
partners of the Dudgeon Offshore Wind Farm
Development regarding their programme of investment
including discussions regarding their on-shore cable
route and promoting the Port of Wells and the proposed
LDO at Egmere as a potential base for survey, project
development and their operational and maintenance
phases of their project.
There are some issues with the delivery of projects
under the FLAG programme. All six UK FLAGS are
experiencing difficulties in getting projects approved by
the Marine Management Organisation (MMO).
However, the North Norfolk FLAG is on course in terms
of committing its allocation of the European Fisheries
Funding (EFF) money and it is likely that the MMO will
extend the deadline date from 31 December 2013 to 31
March 2014. Further it is expected that the FLAG will
commit 95% of its allocation by the due date.
Some
Problems
The Council retains an aspiration to develop an
enterprise hub for new business start up and enterprise
within North Norfolk. The LEP have recently launched a
consultation document called ‘towards a growth plan’,
which sets out the vision and strategy for New Anglia
LEP. This will incorporate an integrated investment
programme including the European structural investment
fund and the Regional Growth Programme.
Postponed
or Delayed
AAP 13/14 - J A 07 - We will develop
our corporate position in respect of
emerging renewable energy
Not Started
technologies through preparation of an
Energy Strategy
This activity is due to commence shortly and feedback
will be available during the second quarter.
B - Improve the job prospects of our residents by developing a skilled and adaptable workforce that
is matched to business growth and development
Activity
Status
Progress/ Action Note
AAP 13/14 - J B 01 - Through the Council's
Learning for Everyone (L4E) Team we will provide
information, advice and guidance to local people
wishing to enter employment or improve their
levels of skills and raise aspiration
On
Track
Delivery continues as before, opportunities to
increase available resources and expand services
are under investigation.
2
95
Appendix H
Activity
Status
AAP 13/14 - J B 02 - The L4E team will offer
bespoke programmes of advice and support to
people faced with redundancy from local
companies as and when such events occur. The
L4E team will also 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
AAP 13/14 - J B 03 - We will explore opportunities
to work with local businesses and identify funding
to support the provision of apprenticeships and
work experience schemes with the aim of
increasing the employment opportunities of young
people in the district
Progress/ Action Note
With some improvement in business confidence
there has been a reduced demand for redundancy
support services over the past six months.
On
Track
The L4E team continues to engage in dialogue
with existing and new employers in the district
concerning their needs for new employees, match
skills etc.
The Council has agreed that it will champion
apprenticeships in North Norfolk so work has
progressed to design a local awareness
campaign. An informal chat service for businesses
is being piloted. In addition we have designed a
pre-apprenticeship course and an apprenticeship
awareness session, working with Jobcentreplus.
These will be piloted in Jul/Aug and we are
planning to meet with Head Teachers in the
Autumn. We will be working with the County
Council to further engage with businesses.
On
Track
C - Improve access to funding for businesses
Activity
AAP 13/14 - 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
With the emergence of the Local Enterprise
Partnership and a general improvement in
business confidence, the Council is proposing to
review the delivery of its services and services
provided through the North Norfolk Business
Forum in the coming months to ensure that the
support provided is fit for purpose and relevant to
business needs.
D - Reduce burdens to business by removing unnecessary red tape and bureaucracy at the local
level
Activity
Status
AAP 13/14 - J D 01 - We will work
together to ensure we support and
On
provide information to simplify the
Track
process for businesses looking to
invest in north Norfolk
Progress/ Action Note
The Economic Development Unit is currently in the process of
undertaking a full review of the Web Portal. This will entail
exploring methodologies in optimising both usability and crossdepartmental integration where appropriate. It is planned that by
the end of Quarter 3 that the Economic Development Unit Web
based Portal will provide simplified access to business support for
investors.
3
96
Appendix H
Activity
Status
Progress/ Action Note
AAP 13/14 - J D 02 - We will work
with partners to roll out BDUK's
£60m Norfolk Broadband Initiative
across North Norfolk
On
Track
Over the next two and a half years work to survey, upgrade and
install broadband infrastructure will take place and better
broadband services will become available in ‘phases’. The first
broadband services using new fibre networks installed through the
Better Broadband for North programme became available in North
Norfolk in July these are:- Baconsthorpe, Bayfield, Bodham,
Gresham, Holt, Hempstead, Letheringsett, Little Thornage, Lower
Bodham, Upper Sheringham and West Beckham. Subsequent,
phases are still on track, and are due to be made available to
many more homes and businesses, over the next two years.
AAP 13/14 - J D 03 - We will
review our approach to
enforcement
On
Track
The Enforcement Board was set up in December 2012 and details
of work carried out by that Board can be found under activity H A
05 for updates. (See Housing and Infrastructure)
E - Promote a positive image of North Norfolk as a premier visitor destination
Activity
AAP 13/14 - 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
Status
Progress/ Action Note
On
Track
The DMO was launched in July
2013 and is actively involved in
recruiting new business
membership. The first quarterly
review is due by 1 October 2013.
Housing and Infrastructure
A - Increase the number of new homes built within the District and reduce the number of empty
properties
Activity
AAP 13/14 - H A 01 - We will bring forward
detailed proposals on allocated sites by
better engagement with developers
Status
Progress/ Action Note
On Track
Progress continues to be made on delivering
permissions/development on the allocated sites.
Planning applications have been approved in respect
of the allocations at Stalham, Wells, Holt (H01).
Developments are on-site at allocations at Cromer,
Hoveton and Blakeney. Positive discussions are
progressing with developers in respect of allocated
sites in Cromer, North Walsham and Holt which are
anticipated to see formal planning applications being
submitted before the end of the year.There is also
some progress on the smaller allocations in villages.
4
97
Appendix H
Activity
Status
Progress/ Action Note
The Stalham Brief was approved.
The Holt brief has been through public consultation
and was approved by Cabinet on 15 July 2013.
AAP 13/14 - H A 02 - We will produce
development briefs on 3 of the allocated
sites
Although the development brief has not been finalised
for the HL Food site in North Walsham, a planning
application has now been received in respect of this
important and high profile brownfield site. It is due to
be validated by 23 August 2013.
Some
Problems
No further progress has been made to resolve the
highway issues raised through the consultation on the
draft development brief prepared for the major site
allocation at Fakenham.
AAP 13/14 - H A 03 - We will seek to
increase the number of new homes built of
all tenures
AAP 13/14 - 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 13/14 - H A 05 - We will support
owners to bring empty homes back into use
and provide opportunities to do so through
advertising of private rented properties and
the Empty Homes matching service. Where
owners are reluctant to bring properties
back into use we will take enforcement
action as required. This will be enacted by
the implementation of the recently approved
Empty Homes Policy and Enforcement
Policy
On Track
Measures have been taken to increase delivery over
the coming year via the introduction of a Housing
Incentive Scheme approved by Full Council in July
2013.
On Track
There remains little interest in preparing
Neighbourhood Plans in the District. Officers continue
to provide general advice and to attend Parish and
Town Council's on request. Holt Town Council and
Corpusty Parish Council have indicated a wish to
apply for Neighbourhood Forum status and public
consultation on these proposals commenced on 21
August 2013.
Over the quarter the Enforcement Board has
continued to work on the 43 long term empty homes
originally referred to it. Of these properties 3 have
been brought back into use, a further 6 have either
schemes to undertake work or are being actively
marketed. In addition action has been taken in a
number of cases, which although not bringing the
property back into use has significantly improved the
visual amenity of the neighbourhood. Over the next
quarter enforcement action is planned against a
number of properties which remain long term vacant
across a range of legislative provisions.
On Track
Further long term empties are currently being
identified and these will be fed into the Enforcement
Board over the coming months.
5
98
Appendix H
B - Increase the number of affordable homes with a range of tenure types
Activity
AAP 13/14 - H B 01 - We will evaluate
our approach to viability assessments,
which assess the proportion of
affordable housing that are viable to
include in housing developments, to
maximise development opportunities
Status
Progress/ Action Note
Postponed
or Delayed
This activity is currently delayed. It will be completed by
March 2014. However, in the meantime a flexible and
responsive approach to viability assessments will be
used. On 15 July Cabinet recommended to Full Council
the adoption of a Housing Incentive Scheme which will
introduce for a fixed period a lower affordable housing
requirement across parts of North Norfolk which will
mean that more developments can come forward without
submitting viability assessments.
C - Secure investment in new infrastructure
Activity
Status
Progress/ Action Note
AAP 13/14 - H C 01 - We will consult and then
obtain agreement on a process for securing
contributions towards infrastructure from
development proposals in the district
Postponed
or Delayed
The Council has resolved to suspend
consideration of the possible introduction of the
Community Infrastructure Levy pending
improvements in development viability.
Coast, Countryside and Built Heritage
A - Maintain the integrity of special landscape designations and balance the development of
housing and economic activity with the need to preserve the character and quality of the District's
countryside and built heritage
Activity
Status
Progress/ Action Note
AAP 13/14 - C A 01 - We will
assess and implement
requirements for new Green Flag
awards and work to retain the
existing awards
Completed
Successfully
Green flags have been awarded to both Holt Country Park
and Sadlers Wood North Walsham. A new Green Flag for
Pretty Corner Woods in Sheringham has been awarded
which now brings the total for the District to three.
On Track
Blue flags have been awarded for Sheringham, Cromer
and Sea Palling and Quality Coast Awards for East Runton
and Mundesley. Mundesley did not receive Blue Flag
status this year due to water quality which is beyond the
Council's control.
Failed
There have been a number of defaults issued over the
quarter relating to isolated performance issues. Kier have
responded promptly through adjusting working practices
and reallocating resources to ensure past failures are not
repeated. The use of defaults under the contract
demonstrate effective contract management.
Some
Problems
The percentage of waste related cases responded to within
2 days is 74%. Work undertaken directly by Kier accounts
for 90% of the response to flytipping and although there
has been improvement in their performance only 72% of
that work was completed within 2 days.
AAP 13/14 - C A 02 - We will work
with other agencies to retain three
of the district's Blue Flags for the
quality of the beaches and to
achieve Quality Coast awards
AAP 13/14 - C A 03 - We will
achieve zero defaults in our waste
and related services contract for
cleanliness
AAP 13/14 - C A 04 - We will
ensure all reported fly-tips are
responded to within 2 working
days
6
99
Appendix H
B - Recognise the District's built environment as a heritage asset when promoting North Norfolk
Activity
AAP 13/14 - C B 01 - We will
adopt conservation area
appraisals and management
plans for Sheringham,
Walsingham and Wells
Status
Progress/ Action Note
Some
Problems
The Walsingham area appraisal and management plan is
currently out to public consultation. The consultation period
finished at the end of July 2013. Sheringham and Wells plans
are scheduled for public consultation during winter 2013 and
could be adopted by summer 2014.
C - Design a more cohesive framework for coastline management
Activity
Status
Progress/ Action Note
AAP 13/14 - C C 01 - We will identify specific
Integrated Coastal Zone Management
Progressing
(ICZM) projects and identify the means of
to Plan
funding
Progress has been made with:
• Coastal Forum - membership widened and a
successful field trip took place. The quarterly
Coastal Update information sheet has been well
received.
• Cromer Coast Protection Scheme - on track for
beginning construction Nov/Dec 2013.
• Cromer to Winterton Study - outputs are looking
to be useful to assist with future funding
applications and management planning.
• Coast Protection Revenue Works - on track for
winter delivery.
• Coastal Management Plan - in scoping stage
and moving towards approval.
• Coastal Adaptive Management - progress being
made in development of roll back assistance.
• Coastal Hub - website updated and enhance
and regular updates provided.
• Coast and Marine consultations - Reponses
provided as required.
D - Continue to defend coastal settlements against erosion wherever practicable
Activity
AAP 13/14 - C D 01 - We will
commission design works and
oversee the implementation of
the Cromer Defence Scheme
AAP 13/14 - C D 02 - We will
develop and adopt a prioritised
programme for future 'selected'
coastal defence work schemes
Status
Progress/ Action Note
On
Track
Design of the scheme is continuing. The public consultation process
is taking place during summer 2013 prior to going out to tender late
summer. The consultation covers the impact of the scheme on
residents, businesses and visitors to Cromer. The scheme will
secure the defences of Cromer for the next sixty years.
On
Track
A coastal study has been commissioned to model coastal processes
and sediment movement. These models are currently being run and
the outcomes from the models are now expected in July 2013 as an
additional model is being run. The outcomes will be used to inform
the development of a programme of works and the requirement to
secure associated funding.
7
100
Appendix H
Localism
A - Recognise the important role that Town and Parish Councils have as the democratic
embodiment of their communities
Activity
Status
AAP 13/14 - 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 On
will establish a regular dialogue and work with town and
Track
parish councils. We will hold workshops for training and
development, in particular to encourage wide community
participation in the democratic process
Progress/ Action Note
The Council website has been updated
with links to relevant guidance etc. and a
process in respect of expressions of
interest under Community Right to
Challenge and nominations under
Community Right to Bid was approved by
Cabinet in April 2013.
Healthy Communities and Ageing Well
workshops were held in Cromer and
Fakenham in July. The Council will be
involved in on-going work in these areas.
AAP 13/14 - L A 02 - We will work with Town and Parish
Councils, local organisations and community and
voluntary groups to improve health and wellbeing
consistent with the aims of the Health and Wellbeing
Board
On
Track
Two Town and Parish Councils submitted
applications to the North Norfolk Big
Society Fund.
A bid to the Coastal Communities Fund to
deliver improved training and career
development in the care sector was
unsuccessful.
B - Encourage communities to develop their own vision for their future and help them to deliver it
Activity
AAP 13/14 - L B 01 - We will
commission work to support
community planning and for
community and voluntary
sector capacity building
AAP 13/14 - L B 02 - We will
utilise our resources, statutory
powers and influence to
encourage communities to
realise opportunities for their
own future
Status
Progress/ Action Note
Grant Agreements have been established with the two Citizen's
Advice Bureaux that operate in North Norfolk
On
Track
On
Track
The current Service Level Agreement with Voluntary Norfolk ended
on 30th June. A review is taking place to identify how the Council can
continue to support the Voluntary and Community Sector.
In relation to North Walsham Leadership of Place project, the Council
has agreed to further investigate options for town centre
investment/enhancement. Planning permission has been granted for
the redevelopment of 4 Market St and adjacent site and the transfer
of the Council's property is expected to be imminent. Further key
decisions rest on the outcome of a pending planning application
(Marricks Wire Ropes Site).
Support and advice is provided to the North Walsham Town Team
and the individual projects being implemented by that group.
Continued support and advice has been given in respect of Holt
Vision and the Town's deliberations on the development of a
Neighbourhood Plan.
8
101
Appendix H
C - Encourage the growth of The Big Society within communities
Activity
Status
Progress/ Action Note
Sixteen grant applications to the North Norfolk Big Society
Fund were received. At the July meeting the Panel
awarded grants to three organisations:
Edgefield Village Hall Trust: £5,000 grant towards project
to refurbish the hall annex and insulate main hall.
AAP 13/14 - L C 01 - We will continue to
monitor the community investment fund,
known as The Big Society Fund, to invest
in local communities, strengthen civil
society, and establish the process for
determining priorities for expenditure
Sculthorpe Village Management Committee : £5,000 grant
towards a project to extend and refurbish kitchen facilities
and improve disabled access.
On
Track
Norfolk & Suffolk 4 x 4 Response: £1,200 grant to provide
Personal Protection Equipment for 4 x 4 response
members when working in flood environments.
One application was deferred as additional information
was requested. Two applications which were declined
were offered support from the Community Projects Officer.
The remainder of applications that were refused were
offered information about potential alternative funding
sources. The Panel will meet again on 23 September to
consider new grant applications.
Delivering the Vision
A - Deliver strong governance arrangements
Activity
Status
AAP 13/14 - 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
Completed
Successfully
AAP 13/14 - V A 02 - We will set and achieve
100% compliance with deadlines agreed with
Internal Audit for recommendations rated as
Medium and High
Needs
Attention
Progress/ Action Note
The Audit Plan for 2013/14 was approved
by the Audit Committee in March 2013.
Progress report on outstanding audit
recommendations to be produced and
followed up October 2013.
A Management Scorecard and Scorecard
Report are provided for managing
performance in 2013/14.
AAP 13/14 - V A 03 - We will review and improve
the revised performance management framework
On Track
9
102
A search function has been added to the
performance and risk system to provide an
additional route for users to find relevant
performance and risk information.
Appendix H
B - Ensure that effective communications exist
Activity
AAP 13/14 - V B 01 - We will optimise
media coverage and devise other means
of disseminating information to residents
regarding Council activities and initiatives
and we will place the Council's website
and intranet at the heart of all we do
Status
Progress/ Action Note
The Council website is undergoing a full review by the
Web and Graphics Team with the aim of making the site
more customer focused. Work has also been undertaken
to establish a clearer picture of website usage using
Google web analytics. This information in conjunction with
other channel access information will drive future
development. A consultant has developed a range of
papers that will provide an overarching vision for all future
Web/Customer Services/ICT transformation.
On
Track
The 'planned approach' is working effectively, with
particularly successful results regarding the 'No Messing'
dog fouling campaign and the 'Big Switch and Save'
campaign.
AAP 13/14 - V B 02 - We will develop a
Customer Access Strategy to ensure that
the most economic, efficient and
accessible forms of contact are in place
for all our customers
On
Track
On track and being developed through the Business
Transformation Board.
C - Deliver strong and proportionate organisational management in the Council
Activity
Status
Progress/ Action Note
AAP 13/14 - V C 01 - We will review the
Council's management arrangements to
ensure they remain fit for purpose
Not
Started
This activity is scheduled to start December 2013. By this
time a complete Management Team, including the last
appointed Head of Service, will have been in post for three
months.
D - Prioritise Services and Functions in line with the wishes of our communities and to deliver our
corporate objectives
Activity
Status
Progress/ Action Note
AAP 13/14 - V D 01 - We will prioritise services
and redirect resources in line with those priorities
by completing fundamental reviews of services
On
that residents have identified as the least
Track
important and that the Council does not consider
to be a priority
The Planning Peer Review report was published
during the quarter and a detailed Improvement Plan
prepared with some actions being progressed to
date and others being taken forward during the
autumn / winter by the new Head of Development
Management.
AAP 13/14 - V D 02 - We will review the CCTV
service to identify savings and consider options
for the future provision of the service
Working party meetings continuing and key
stakeholder consultation completed. A report will be
submitted to Overview and Scrutiny committee in
September 2013 and then to Cabinet in October
2013.
On
Track
10
103
Appendix H
E - Deliver year-on-year improvements in efficiency
Activity
AAP 13/14 - V E 01 - We will support
the implementation of the cost saving
Revenues and Benefits shared
services project
Status
Progress/ Action Note
In response to the system implementation problems
experienced during 2012, the North Norfolk data was
returned to Cromer in January of this year, since when
good progress has been made in building the level of
staff confidence in the new system. Despite the
introduction of Welfare Reforms and the localisation of
Council Tax Support which has created additional
pressures for the service, significant progress has been
made in reducing the backlog of work which built up last
year to the point that performance levels are now moving
towards the targets set when commissioning the new
system.
Some
Problems
Discussions regarding options for the future
development of the shared service arrangement with the
Borough Council of King’s Lynn and West Norfolk
(BCKLWN) in light of the revised IT arrangements are to
be considered over the period September - December
2013.
AAP 13/14 - V E 02 - We will devise
and implement budgets to deliver a
zero increase in the District Council's
part of the Council Tax charge and
ensure spend is contained within
budgeted allocations
Financial plan update to be reported to Cabinet in
September.
On Track
AAP 13/14 - V E 03 - We will review
the reward structures to encourage
and reward staff, for finding
Not Started
innovative new ways to deliver higher
quality services more efficiently
Work on this activity has been scheduled for delivery
during 2013/14 through the Human Resources service
plan.
AAP 13/14 - V E 04 - We will review
service delivery models and re-tender
the leisure contract to ensure
On Track
increased value for money and health
and well-being
Report produced for June 2013 Cabinet requesting a
contract extension to enable a full analysis of all the
options available for future contractual arrangements
and the potential re-provision of the Splash site in
Sheringham. Initial meeting held with DC Leisure to
discuss options around contract extensions and potential
savings.
AAP 13/14 - V E 05 - We will work
towards securing continued
accreditation in Investors in People
status through reassessment in
August 2013
The assessment took place between 8 and 17 July
2013. A detailed programme of interviews has taken
place. The Council has successfully retained IIP status
at bronze level.
Completed
Successfully
Following the Planning Peer Review conducted in
February 2013 a detailed Improvement Plan has been
prepared and some early progress made in respect of
some objectives during the period April – June 2013 –
including the appointment of a new Head of Planning
and making additional appointments in the Development
Management and Enforcement Teams to address the
issues of high volumes and poor levels of performance
against target outcomes.
AAP 13/14 - V E 06 - We will respond
to the Peer Review of the
Development Management Service
On Track
by implementing an action plan
addressing capacity, resources and
performance issues
Further work to deliver the objectives of the
Improvement Plan will be taken forward in the coming
months with updates being provided in future
performance reports.
11
104
Appendix H
Key
Activity
Status
Completed
Successfully
Progressing
to Plan
Symbol
On Track
Description
This is for major projects, programmes or service plans and gives an indication that the plan will be
achieved on time, to budget and will deliver the expected outputs and outcomes/ impact.
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
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.
9 August 2013
12
105
Appendix I
Annual Action Plan and Management Scorecard Performance Indicators and Measures Quarter 1 2013/14 Progress Report
These tables show, for each of the themes of the Corporate Plan;


achievement against targets,
comparison with the same time period last year
Key
NA = Not
applicable
Target achieved or exceeded
Improving compared to the same period last
year
Close to target
Close to the same period last year’s result
Significantly below target
Significantly worse compared to the same
period last year
Indicators can be labelled as not applicable as this is important information for the Council and the
influence and actions of the Council may make improvements but there is not sufficient control over the
outcome to set a target
Jobs and the Local Economy
Quarterly Indicators
and Measures
Q1
Q1
13/14 13/14
Q4/11/12 Q4/12/13 Target Result
J 001 - Percentage of
Loans fund that can be
reapplied (Quarterly)
J 002 - Number of
businesses who access
loans & grants under the
Coastal Pathfinder
scheme (Quarterly
Cumulative)
J 004 - Number of
businesses assisted to
retain jobs and/or
increase employment
each year (Quarterly
Cumulative)
J 015 - Number of
member businesses of
the Destination
Management
Organisation (DMO) for
the North Norfolk coast
and countryside
(quarterly)
57
1.0%
23.0%
75.0%
9
7
1
45
6
2
115
127
152
1
106
Progress
Target
2013/14
£50,000 was loaned from the Fund of
£200,000 by Q4/12/13, which left 75% that
can be reapplied. No further loan capital
was paid out between April and June
although one loan application for £35,000
20%
was submitted and appraised during this
period. As a result Q1 13/14 was
maintained at 75% as in the previous
quarter.
The cumulative number of businesses who
accessed the scheme since it started in
January 2012 is 11. Only 1 business has
been provided with a grant between April
25
and June although 2 other businesses have
applied for a loan/grant and appraised
during the period.
On-going support is being provided to local
businesses which have contacted the
Economic Development team for
25
assistance. The service includes business
advice, training and signposting to other
relevant providers.
The DMO has pro-actively targeted tourism
businesses during the first quarter. This has
165
resulted in higher than expected
membership growth during said period.
Appendix I
Housing and Infrastructure
Quarterly
Q1
Q1
Indicators and
13/14 13/14
Measures
Q4/11/12 Q4/12/13 Target Result
Progress
Target 2013/14
Empty 6 Months or more
05/07/2013 647
02/08/2013 582
H 002 - Number
of long term
empty homes (6
months or more)
(Quarterly)
786
The October 2012 fig was inflated
given the volume of outstanding work
we had in revenues following
conversion etc. Since then we are
now working on a stable system,
reducing outstanding work. In fact we
are on top of all the change of
addresses etc., we have reviewed all
properties 6-24 months and all those
empty for more than 2 years and are
up to date with amending returns
from this review and have just started
the second home review.
886
(1 October (1 October
2012)
2012)
NA
647
NA
Carry out trend
We are being very proactive with
analysis
issuing completion notices on new
properties and those taken out of
banding under- going renovation. All
of this work has had a very positive
impact on the long term empty homes
figure.
A note of caution – whilst we can
ensure that we are as up to date as
possible with changes and undertake
regular reviews we cannot control
how many and when owners may
vacate properties. The Enforcement
Board has also been very proactive in
bringing properties back into use.
(see report)
See Appendix H, Activity H A 05.
H 003 - Number
of development
briefs produced
on allocated sites
(Quarterly
Cumulative)
2
1
The draft development brief for Holt
(Site H01) has been subject to public
consultation and revisions have been
incorporated to respond to comments
made. The draft brief has been
endorsed by the Planning Policy and
Built Heritage Working Party and has
been referred to Cabinet for approval.
Further work on the Fakenham brief
is anticipated over the next quarter
2
2
107
3 (Land North of
Rudham Stile Lane,
Fakenham (F01),
Land at Heath Farm
/Hempstead Road,
Holt (H01), Land at
Norwich Road /
Nursery Drive, North
Walsham (NW01))
Appendix I
Quarterly
Q1
Q1
Indicators and
13/14 13/14
Measures
Q4/11/12 Q4/12/13 Target Result
Progress
Target 2013/14
In the first quarter of 2013/14, 41
affordable dwellings were completed
of which 36 were for rent and 5 for
sale on a shared ownership
basis. These dwellings were at;
H 007 - Number
of affordable
homes built
(Quarterly
Cumulative)

65
13
14
41


Holt Road, Fakenham -19 rent
and 5 shared ownership
dwellings
Honing – 1 dwelling for rent
Hall Lane, North Walsham – 16
dwellings for rent
Carry out trend
analysis
It is expected that 80 dwellings in
total will be completed during
2013/14.
Coast, Countryside and Built Heritage
Monthly
Indicators
and
Measures
Mar
11/12
Apr
Mar 13/14
12/13 Target
C 003 Percentage of
MAJOR
planning
applications
31.58% 58.33%
processed
within thirteen
weeks
(monthly
cumulative)
NA
May
Apr 13/14
13/14 Target
25.00%
NA
June
Jun
May 13/14 13/14
13/14 Target Result
50.00%
NA
Progress
8 Major
applications
determined, of the
4 over time 2 were
longstanding
applications which
50.00% NA have now been
approved with
Section 106
Agreements.
C 004 Percentage of
MINOR
planning
applications
39.13% 38.35% 72.00% 25.00% 72.00% 29.49% 72.00% 34.68%
processed
within eight
weeks
(monthly
cumulative)
See Briefing Note
Appendix J
A slight
improvement from
the previous 2
quarters, but level
of performance
achieved still
significantly below
target.
Advertisements
placed to fill the
vacant temporary
planning assistant
post. to create
additional capacity
to further improve
performance.
See Briefing Note
Appendix J
3
108
Target
2013/14
80% (Target to
be reviewed
following
response to
consultation on
"Planning
Performance
and the
Planning
Guarantee")
72%
Appendix I
Monthly
Indicators
and
Measures
Mar
11/12
Apr
Mar 13/14
12/13 Target
May
Apr 13/14
13/14 Target
June
Jun
May 13/14 13/14
13/14 Target Result
C 005 Percentage of
OTHER
planning
applications
53.46% 53.38% 80.00% 53.25% 80.00% 50.31% 80.00% 52.86%
processed
within eight
weeks
(monthly
cumulative)
ES 015 Number of
rectifications
issued to the
waste and
related
services
contractor for
cleanliness
(monthly)
Quarterly
Indicators and
Measures
C 002 - Percentage
of planning appeals
allowed (quarterly)
C 006 Conservation Area
plans that have
been completed or
reviewed (quarterly
cumulative)
13
4
Q4/11/12 Q4/12/13
28.6%
8
50.0%
1
Advertisements
placed to fill the
vacant temporary
planning assistant
post. to create
additional capacity
to further improve
performance.
Progress
There was only 1 appeal decision during
20.0% 100.0% NA the quarter which was allowed (Bodham
wind turbine appeal)
0
Target
2013/14
Performance
similar to a number
of previous
quarters, but still
significantly below
target.
See Briefing Note
Appendix J
Close monitoring of
the contract for
cleansing has led
to the issuing of 63
rectifications in
24 NA quarter 1. Kier have
responded
positively to ensure
that service failures
are resolved
quickly.
22
Q1
Q1
13/14 13/14
Target Result
Progress
80%
No target.
Report to Head
of Service and
Management
Team
Target
2013/14
Review and
report
Walsingham currently at public
consultation, due to finish at the end of
3 (Sheringham,
July. Sheringham and Wells are scheduled Walsingham
for public consultation winter 2013 and
and Wells)
could be adopted summer 2014.
0
4
109
Appendix I
Quarterly
Indicators and
Measures
Q4/11/12 Q4/12/13
Q1
Q1
13/14 13/14
Target Result
Progress
Target
2013/14
This percentage comprises the following
data:
All waste investigations (fly tipping (public
and private) litter, incorrect use of bins and
duty of care inspections)
Nuisance complaints (noise, odour, smoke)
Land and Building Drainage.
C 007 - Target
response time to fly
tipping and all other
pollution complaints
(within 2 working
days) (quarterly)
C 008 - Number of
pollution
enforcement
interventions
(quarterly
cumulative)
C 009 - Number of
fixed penalty notices
issued (quarterly
cumulative)
The percentage of waste related cases
responded to within 2 days is 74%.
Work undertaken directly by Kier
accounts for 90% of the response to
flytipping and although there has been
improvement in their performance only
72% of that work was completed within 95%
2 days.
78.90% 100.00% 86.00%
87% of Nuisance cases were responded to
within two days, this drop in performance is
due to a 46% increase in new complaints
over the quarter coupled with staff changes
within the team.
94% of Drainage cases were responded to
within two days, this equates to 1 case
over target.
51
6
This improvement in performance,
compared to the previous quarter, has
been achieved despite a seasonal increase
in workload and the team carrying two
vacancies.
Within the quarter there were 10 new
pollution cases which were investigated
with a view to potential prosecution. 8 of
these are related to flytipping cases of
which 7 are still being investigated. The
other 1 was closed with no evidence to
proceed. 1 other flytipping case was heard
at court. This case was begun earlier in the Review and
10 NA
year and resulted in a 60 hour community report
service order, £750 in costs and a £60
victim surcharge. 1 simple caution was
issued for the breach of a noise abatement
notice. In addition 7 further fly tipping cases
were completed during the quarter, of
these 3 were issued warning letters and 4
were closed with no evidence to proceed.
2
NA
2 FPNs issued for littering from a vehicle
offences.
Carry out trend
analysis
Localism
Quarterly
Indicators and
Measures
Q1
Q1
13/14
13/14
Q4/11/12 Q4/12/13 Target Result
5
110
Progress
Target
2013/14
Appendix I
Quarterly
Indicators and
Measures
Q1
Q1
13/14
13/14
Q4/11/12 Q4/12/13 Target Result
L 005 - Number of
grants awarded to local
communities from the
Big Society Fund
(quarterly cumulative)
At the meeting of the panel in July, 3
organisations were awarded grants. These
were Edgefield Village Hall Trust, Sculthorpe
0
Village Management Committee and the
NA
Norfolk and Suffolk 4x4 Response. 1
application was deferred as more information
was required and 2 applications were declined.
The first meeting of the year to consider fund
investment in community projects was due on
8th July 2013. Note: At this meeting, sixteen
applications to the Big Society Fund were
0 NA
reported to the BSF Grants Panel (one of which
was ineligible). Three grant awards amounting
to £11,200 were made and one application was
deferred.
47
L 006 - Amount of
funding investment in
community projects
(from the Big Society
Fund) (£) (quarterly
cumulative)
Target
2013/14
Progress
397,537
Review
and
report
Review
and
report
Delivering the Vision
Quarterly Indicators
and Measures
V 001 - Percentage of
(Medium Priority) audit
recommendations
completed on time
(quarterly cumulative)
V 002 - Percentage of
(High Priority) audit
recommendations
completed on time
(quarterly cumulative)
V 004 - Percentage of
audit days delivered
(quarterly cumulative)
V 007 - Working Days
Lost Due to Sickness
Absence (Whole
Authority days per Full
Time Equivalent
members of
staff) (quarterly
cumulative)
V 008 - Level of
overspend/ (underspend)
(£) total (quarterly
cumulative)
Q1
Q1
13/14 13/14
Q4/11/12 Q4/12/13 Target Result
72.0%
72.0%
100.0%
5.17
66.1%
80.0%
100.0% 100.0% 100.0%
100.0%
6.80
15%
1.02
1.87
98.6%
RB 010 – Percentage of
Non-domestic Rates
collected (monthly
cumulative)
98.84%
NA
97.90% 30.50% 30.13%
98.40%
33.0% 33.34%
6
111
Target
2013/14
Not yet produced. Audit
Recommendation follow up
exercise commences October
2013.
80%
No outstanding High priority
recommendations.
100%
Days delivered to the end of
quarter one - 34 of annual plan of
213 days. Currently on target to
deliver the annual plan.
This quarter is slightly higher than
last year so an analysis has taken
place. There were no significant
issues to address highlighted from
this analysis. A full breakdown of
sickness absence in each quarter
is reported to the Joint Staff
Consultative Committee (JSCC).
16%
-185,662
RB 009 – Percentage of
Council Tax Collected
(monthly cumulative)
Progress
The budget monitoring position to
the end of period 4 (July) will be
reported to Cabinet in September.
100%
6 days per
full time
equivalent
(FTE)
employee
Review and
report
The introduction in April of Local
CT Supports which increased the
number of liable customers,
together with technical changes
and increased charges affecting
98.3%
empty properties, has led to a
shortfall. In addition, familiarisation
with the new ICT Civica system has
necessarily continued during this
period.
99.0%
Appendix I
Quarterly Indicators
and Measures
Q1
Q1
13/14 13/14
Q4/11/12 Q4/12/13 Target Result
RB 027 - Average time
for processing new
claims (Housing and
Council Tax Benefit)
(monthly cumulative)
RB 028 - Speed of
processing: change in
circumstances for
Housing and Council Tax
Benefit claims (average
calendar days) (monthly
cumulative)
Quarterly Indicators
and Measures
Target
2013/14
Progress
17.3
30.0
18.0
28.0
Target
currently See Appendix I
suspended
18 days
9.9
18.0
9.0
16.0
Target
currently See Appendix I
suspended
9 days
Service Group
Quarter Quarter Quarter
2 Result 3 Result 4 Result
V 005 - Level of
overspend/ (underspend)
(£) by the new service
Assets & Leisure
groupings (quarterly
cumulative)
Community and
Economic
Development
Corporate
Services
Customer
Services
Development
Management
Environmental
Health
Financial Services
Organisational
Development
Savings to be
identified
-158,975
-87,986
-49,281
-87,939
-168,314
-469,220
-38,207
-37,109
-56,748
-15,389
-129,103
22,800
84,290
-10,963
-103,636
26,445
-42,621
-271,363
-111,764
-52,733
54,490
13,736
10,448
8,856
Quarter 1
13/14
Result Progress
Target
2013/14
Budget monitoring
reports to the end of
period 4 2013 (July) will
be reported to Members Review
and report
in September.
187,722
Key
NA = Not
applicable
Target achieved or exceeded
Improving compared to the same period last
year
Close to target
Close to the same period last year’s result
Significantly below target
Significantly worse compared to the same
period last year
Indicators can be labelled as not applicable as this is important information for the Council and the
influence and actions of the Council may make improvements but there is not sufficient control over the
outcome to set a target
9 August 2013
7
112
Appendix J1
DEVELOPMENT MANAGEMENT AND LAND CHARGES PERFORMANCE UPDATE
This is the quarterly report on planning applications and appeals for the period from April
to June 2013, covering the turnaround of applications, workload and appeal outcomes and
Land Charges searches received.
Table 1A (Appendix J2) sets out performance for processing planning applications for the
first quarter of 2013/14.
Eight major applications were determined in the quarter, together with 124 minor
applications and 227 other applications, a total of 359 applications, an increase of 91
compared with the previous quarter.
Members will recall from the discussion at the January Development Committee meeting
the strenuous efforts being made to determine planning applications more quickly in the
light of the possibility of „special measures‟ sanctions being introduced by the Government
under its open „Planning Performance and Planning Guarantee‟ proposals, which were the
subject of consultation at the end of 2012.
The most recent quarter saw 4 of the 8 major applications determined within the 13 week
statutory deadline, ie 50%. This remains comfortably above the 30% figures mooted for
special measures in the consultation paper. As yet, however, the Government has not
published its final decision as to how the Planning Guarantee is to be taken forward.
Of the 4 applications that were out of time, 2 were long-standing applications, the subject
of Section 106 Agreements, 1 was for a more recent residential development at 2 Furlong
Hill/ Market Lane, Wells, which has also been the subject of a Section 106 Agreement, and
the 4th was the application for the two wind turbines at Scottow.
In terms of “minor” applications, performance decreased by some 4.64% to 34.68% over
the previous quarter, as against the Council‟s target of 72%.
As far as “other” applications are concerned performance increased by 0.04% to 52.86%,
again below the Council‟s target of 80%.
Although performance remained below the Council‟s targets over the quarter, Members
will appreciate that 91 more applications were determined during this quarter.
Table 1B indicates the workload for the Service during the quarter and shows that 393
applications were submitted, 32 more than the previous quarter, and some 34 more than
the number determined. At the present time the Service is still struggling to keep pace with
incoming work for Planning Applications.
Pre-application enquiries also increased during the quarter. However „Do I Need Planning
Permission?‟, Discharge of Condition applications and Duty Officer enquiries all remained
at similar levels to the previous quarter.
In terms of delegation of decisions, the quarterly figure rose to 93.88%, and remains above
the Council‟s target.
113
Appendix J1
Table 2 indicates performance in terms of appeal decisions. During the quarter only 1
decision was made which related to the Bodham wind turbine, and which Members will
appreciate was allowed.
The Government has recently released further guidance on how the planning performance
of councils will be assessed in terms of timeliness and quality in management of major
applications. It is introducing a new measure specifically for assessing the quality of major
application decisions and an amended indicator for measuring timeliness of decision
making also on major applications. These measures will be integrated into service
planning and quarterly performance reporting to Cabinet from quarter 2 onwards. Currently
our quality measurement shows we have 35 major applications decided between 1
January 2011 and 31 December 2012, which is the initial period the Government will be
assessing. Of those decisions only one was a refusal. That refusal subsequently went to
appeal and was allowed. Our performance against the indicator percentage of major
decisions overturned at appeal is therefore 2.86% (were lower is better). The Government
threshold for potential designation is 20% or above.
In terms of Land Charges searches, some 550 were submitted and handled during the
quarter, a decrease of some 27 when compared with the previous quarter.
Conclusions
In summary, the first quarter of the new year has seen 50% of major applications
determined within the statutory time scale. The other levels of performance remain broadly
the same, although a significantly higher number of applications was determined during
the quarter than the previous quarter.
In order to address the workload/performance issues in the short term, Members
previously agreed 2 temporary Planning Assistant posts. One of those posts has already
been filled. Following re-advertisement of the vacant post, it was agreed by Steve Blatch,
Corporate Director, that 2 temporary appointments could be made. (This was in the light of
the service carrying a vacant permanent Planning Assistant post, which is likely to
continue for some time pending the work to be undertaken in association with the Peer
Review Action Plan).
The new appointees will be taking up their posts in mid- August and the first week in
September.
Andy Mitchell
Development Manager
114
Appendix J2
TABLE 1A – DEVELOPMENT MANAGEMENT PERFORMANCE
DECISIONS BY SPEED – 2009/10
MAJOR
TOTAL
%
MINOR
OTHERS
0 – 13 WEEKS
13 + WEEKS
0 – 8 WEEKS
8+ WEEKS
0 – 8 WEEKS
8+ WEEKS
3
2
279
82
657
74
60.00%
40.00%
77.29%
22.71%
89.88%
10.12%
DECISIONS BY SPEED - 2010/11
MAJOR
TOTAL
%
MINOR
OTHERS
0 – 13 WEEKS
13 + WEEKS
0 – 8 WEEKS
8+ WEEKS
0 – 8 WEEKS
8+ WEEKS
8
15
300
163
661
159
34.78%
65.22%
64.79%
35.21%
80.61%
19.39%
DECISIONS BY SPEED - 2011/12
MAJOR
TOTAL
%
MINOR
OTHERS
0 – 13 WEEKS
13 + WEEKS
0 – 8 WEEKS
8+ WEEKS
0 – 8 WEEKS
8+ WEEKS
6
13
198
308
425
370
31.58%
68.42%
39.13%
60.87%
53.46%
46.54%
DECISIONS BY SPEED - 2012/13
MAJOR
TOTAL
%
MINOR
OTHERS
0 – 13 WEEKS
13 + WEEKS
0 – 8 WEEKS
8+ WEEKS
0 – 8 WEEKS
8+ WEEKS
14
10
163
262
379
331
58.33%
41.67%
38.35%
61.65%
53.38%
46.62%
DECISIONS BY SPEED – QUARTER 1 2013/14
MAJOR
TOTAL
%
MINOR
OTHERS
0 – 13 WEEKS
13 + WEEKS
0 – 8 WEEKS
8+ WEEKS
0 – 8 WEEKS
8+ WEEKS
4
4
43
81
120
107
50%
50%
34.68%
65.32%
52.86%
47.14%
COUNCIL TARGETS
-
72%
115
80%
Appendix J2
TABLE 1B – DEVELOPMENT MANAGEMENT WORKLOAD
2009/10
Applications submitted
Pre-Application Inquiries
Do I need Planning Permission?
Discharge of conditions
Duty Officer
1235
479
300
181
2313
2010/11
Applications submitted
Pre-Application Inquiries
Do I need Planning Permission?
Discharge of conditions
Duty Officer
1640
447
325
214
1979
2011/12
Applications submitted
Pre-Application Inquiries
Do I need Planning Permission?
Discharge of conditions
Duty Officer
1543
477
374
201
1982
2012/13
Applications submitted
Pre-Application Inquiries
Do I need Planning Permission?
Discharge of conditions
Duty Officer
1408
218
172
192
2153
QUARTER 1 2013/14
Applications submitted
Pre-Application Inquiries
Do I need Planning Permission?
Discharge of conditions
Duty Officer
116
393
57
23
56
582
Appendix J2
TABLE 1C – DELEGATION OF DECISIONS
Year ending 31 March 2010
Year ending 31 March 2011
Year ending 31 March 2012
Year ending 31 March 2013
Quarter 1 2013/14
%
DELEGATED
92.7
93.0
93.28
92.48
93.88
TABLE 2 - PLANNING APPEAL DECISIONS
Allowed
Year ending
31 March 2010
Year ending
31 March 2011
Year ending
31 March 2012
Year ending
31 March 2013
Quarter 1
2013/14
Dismissed
Total
4 (17.4%)
19
23
8.5+(34%)
16.5+
25
4 (28.57%)
10
14
9.5 (35.19%)*
17.5
27
1 (100%)
0
1
Council target for 2013/14 = 20%
+
7 appeals allowed and 3 part allowed, part dismissed.
Therefore 50% success rate assumed for these appeals.
* Includes 3 appeals part allowed and part dismissed.
TABLE 3 - LAND CHARGE SEARCHES
2010/11
2011/12
2012/13
Quarter 1
2013/14
Official
Searches
1775
1807
1872
Personal
Searches
652
548
578
550
186
117
Total Search
requests
2427
2355
2450
736
Appendix K
Revenues & Benefits
Performance is improving across the service following a very challenging period from
May 2012- April 2013, with the implementation of new software and document
management system, the technical problems experienced accessing data held at
Kings Lynn, return of the data to Cromer in Jan 2013, significant welfare reform
changes in benefits, technical reforms in Council Tax and the new CTS scheme all
implemented from 1st April 2103 and annual billing in March 2103.
All the necessary work in relation to the reforms was in place for annual billing March
2013. This included document redesign, software testing and implementation and
staff training and customer awareness publicity.
Queries/challenges about the technical reforms and recovery notices sent to people
who previously had not had to pay council tax resulted in a significant number of
contacts to the section which has impacted on the turnaround of customer enquiries.
May 2012 – 2,349 telephone contacts – May 2013 – 3,362 telephone contacts.
Recovery notices are issued regularly every month to people who default on
instalments. Collection is on target for NNDR,slightly up for the same period last year
and very slightly down for council tax for the same period last year .
Quarter 1
NNDR
Council Tax
2012/13
33.0%
30.5%
2013/14
33.34%
30.13%
Working to meet the corporate objective of bringing empty properties back into use
and maximising new home bonus, in the last three months Council Tax has
undertaken a review of all properties subject to the levy charge and those empty for
more than 6 months ensuring the council tax data base accurately reflects the
position.
Information gathered has identified properties that are then considered by the
enforcement board for action as appropriate.
Benefits have successfully brought in a number of welfare reforms. The increased
funding and profile of Discretionary Housing Payments has seen considerable
increase in applications we have processed more to date (210) than the whole of
12/13 (191).
Benefits performance in terms of processing days is impacted by ‘older claims’ from
2012/13 as performance looks at the average days across all claims. The
outstanding work (June /July) claims have been ringfenced and are worked on in a
priority order. The current month is being kept up to date. Where all the information
is received with a new claim it is processed within 24 hrs.
Quarter 1 Performance
New Claims are taking 28 days (monthly cumulative) and Change of Circumstances
16 days (monthly cumulative)
118
Appendix K
We have been successful in recent recruitment – 2 X FTE apprentices in revenues
and 2 x FTE benefit assessors with interviews for telephony people in a fortnights
time.
Louise Wolsey 9/8/13
119