Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
2 nd
November 2012
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, 12 November 2012 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
516047, Email: democraticservices@north-norfolk.gov.uk
Sheila Oxtoby
Chief Executive
To: Mr T FitzPatrick, Mrs A Fitch-Tillett, Mr T Ivory, Mr K Johnson, Mr J Lee, Mr W Northam, Mr R
Oliver
All other Members of the Council for information.
Members of the Management Team, appropriate Officers, Press and Public.
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

A G E N D A
1.
2.
TO RECEIVE APOLOGIES FOR ABSENCE
MINUTES (Page 1)
To approve, as a correct record, the minutes of the meeting of the Cabinet held on 15
October 2012.
4.
To receive questions from the public, if any.
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.
6.
7.
8.
9.
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.
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 contained with the provisions contained within the Overview and Scrutiny
Procedure Rules or the Budget and Policy Framework Procedure Rules.
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.
COUNCIL TAX SUPPORT WORKING PARTY (page 8)
To receive the minutes of the meeting of the Council Tax Support Working Party held on 15
August 2015
PLANNING POLICY AND BUILT HERITAGE WORKING PARTY (page 13)
To receive the minutes of the meeting of the Planning Policy and Built Heritage Working
Party Group held on 08 October 2012.
The following recommendations have been made to Cabinet:
MINUTE 24: CROMER CONSERVATION AREA MANAGEMENT PLAN
RESOLVED unanimously

That Cabinet be recommended:
1.
To adopt the Cromer Conservation Area Management Plan for statutory planning purposes and for it to be a ‘material consideration’ in the planning process.
2. To adopt the proposed boundary changes as recommended in the draft
Appraisal document, with the exception of the former railhead (Morrison’s car park) and area around the Old Chapel, which should be retained within the Conservation Area, and that the resultant changes be publicised in accordance with the Planning (Listed Buildings & Conservation Areas) Act
1990.
3. To endorse the preparation of a further report relating to the introduction of
Article 4 Directions as and where necessary.
4. That the buildings identified for Local Listing be formally recognised and recorded.
5. That a further report on potential buildings to be added to the Local List for
Cromer be prepared.
MINUTE 25: WALSINGHAM CONSERVATION AREA APPRAISAL & MANAGEMENT
PROPOSALS
RESOLVED
1. That Cabinet be recommended to approve the Draft Walsingham
Conservation Area Character Appraisal and Management Proposals for
2. public consultation purposes.
That following consultation, the amended Walsingham Conservation Area
Character Appraisal and Management Proposals be brought back to the
Working Party for consideration and subsequent adoption by Cabinet.
10. FINANCIAL STRATEGY 2013-14 (page 16)
( Strategy Document - page 18)
( Appendix A – p. 44 ) ( Appendix B – p.45
) ( Appendix C – p.46)
Summary:
Conclusions:
Recommendations:
This report presents the current financial forecast for the period 2013/14 to 2015/16 and provides a summary of the key issues facing the Council in relation to Local Government Finance.
The current financial forecast presents a funding gap for the next three years of up to £1.7 million.
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.
It is recommended that Members note:
1) the current financial forecast for the period
2013/14 to 2015/16;
2) the current capital programme and capital funding forecasts;
3) the revised reserves statement as included at Appendix C to the report.

Reasons for
Recommendations:
To update members with the current financial position of the authority as further work on the detailed budget for 2013/14 is completed over the coming months.
Cabinet Member(s)
Wards affected
Contact Officer,
Cllr W Northam
All
Karen Sly telephone number 01263 516243 and email: Karen.sly@north-norfolk.gov.uk
11. HALF YEARLY TREASURY MANAGEMENT REPORT FOR 2012/13
49)
( Appendix D – p.54
) ( Appendix E – p.56
)
Summary:
Options considered:
This report provides information on the Treasury
Management activities undertaken in the first six months of 2012/13.
It is a requirement of the Chartered Institute of Public
Finance & Accountancy’s (CIPFA) Code of Practice for
Treasury Management that this mid-year review is
Conclusions:
Recommendations:
Reasons for
Recommendations:
Contact Officer, telephone number and email: prepared and presented to Full Council.
That the treasury activities for the year have been carried out in accordance with the CIPFA Code and the
Council’s Treasury Strategy.
That the Council be asked to RESOLVE that the Half
Yearly Treasury Management Report for 2012/13 be approved.
The recommendation is being made in compliance with the CIPFA Code.
Tony Brown
01263 516126
Tony.brown@north-norfolk.gov.uk
12. BUDGET MONITORING REPORT 2012/13 – PERIOD 6 (page 60)
( Appendix F – p.69) ( Appendix G – p.72
) ( Appendix H – p.76
)
Summary: This report summarises the budget monitoring position for the revenue account and capital programme to the end of September 2012.
Conclusions:
Recommendations:
The overall position at the end of period 6 shows a forecast underspend of £23,552 for the current financial year on the revenue account. The revised budget for 2012/13 will be presented for approval in
December.
It is recommended that:
1) Cabinet note the contents of the report and the current budget monitoring position.
2) New homes bonus of £40,000 be used to fund a CIL Planning Policy Officer as outlined at 2.3.

Reasons for
Recommendations:
To update Members on the current budget monitoring position for the Council and approve additional capital budget as outlined in the report.
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)
Wards affected
Contact Officer, telephone number 01263 516243 and email: Karen.sly@north-norfolk.gov.uk
Cllr W Northam
All
Karen Sly
TRANSFER (page 84)
(
( Policy Document - page 88
Appendix I – p.100
) ( Appendix J – p.102
)
)
Options considered:
Summary: A view was taken that the Council’s Acquisition and
Disposal Policy required supplementation in anticipation of possible future requests from other public and third sector / community groups wishing to take over the
Council’s assets with reference to the localism agenda.
The Asset Management Board considered an initial report at its March 2012 meeting which referred to the aspects of the then Localism Bill with recommendations that a Policy be created to provide a framework for asset transfer to community groups and the like.
A draft Community Asset Transfer Policy was submitted to Cabinet on the 14 May 2012 with a recommendation to issue the draft as a basis of consultation with relevant community group, town and parish councils being approved.
The matter was presented to the Overview and Scrutiny
Committee on the 23 May 2012, which agreed to
Cabinets resolution but in addition required consideration to be given to support for capacity building and post transfer care. The draft was amended to reflect this observation. A consultation period closed on the 20
July 2012, eight returns being received although none with any particular relevance to the draft policy.
The results and an amended draft policy were reported to both the Asset Management Board in September
2012, being returned to the Overview and Scrutiny
Committee of the 25 September, with agreement for the matter to be returned to Cabinet for approval to be given for consideration to forward the matter to Full Council for adoption.
The Localism Act sets out guidance and parameters in respect of Community Right to Bid/challenge. The proposed policy is to assist these aspects in respect of

Conclusions:
Recommendations: the property element as well as dealing with straight forward approaches over acquisition by community groups.
The Policy has been amended to reflect observations made by the Asset Management Board, the Overview and Scrutiny Committee, the consultation together with the Right to Bid and Challenge provisions under the
Localism Act 2011.
For Cabinet to approve the draft Policy to be forwarded for adoption by Full Council in order to provide the Council with a clear framework and procedural guide to assist in it achieving a
Corporate Plan ambition.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
North Norfolk District Council Corporate Plan
North Norfolk District Council Acquisition and Disposal Policy
14. PERFORMANCE MANAGEMENT – DELIVERY OF ANNUAL ACTION PLAN 2012/13
QUARTE R 2 (page 103)
( Appendix K – p.113) (Appendix L – p.125) (Appendix M – p.134) (Appendix N – p.135)
(Appendix O – p.137)
Summary: The purpose of this report is to give a mid-year review of the progress in delivering the Annual Action Plan 2012-
13. 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:
Recommendations:
The delivery of the Annual Action Plan 2012/13 is progressing to plan. Any areas of concern have been outlined in this report and where necessary details given of progress to date and action being taken are attached in the form of briefing notes presented as appendices to this report. In addition, reports on progress of major projects are also included in the appendices as appropriate.
It is recommended that the rate of take up of new designated employment land (indicator J 005) be reported on an annual basis instead of quarterly as originally agreed at Cabinet in May 2012. See paragraph 2.14 for details.
Cabinet Member(s) Cllr K Johnson
Wards affected All
Contact Officer : Helen Thomas telephone number 01263 516214 and email: Helen.thomas@north-norfolk.gov.uk

15. NORTH WALSHAM DUAL USE SPORTS CENTRE
(
(page 138)
Appendix P – p. 150) (Appendix Q – p. 160) (Appendix R – p.148)
Summary :
This paper seeks to secure the future of the Council-run community sports facility at North Walsham High School through better management arrangements.
An opportunity is identified to review the current arrangements for delivery of community sports at this site. In turn, this will ensure the Council’s future funding of the facility to deliver a wider package of community leisure activities within the school environment, at the same time affording the
Council a financial saving.
Conclusions :
Recommendations:
1. It is clear that the Council’s Community Sports provision at North Walsham has good community support, evidenced by the success of some of the user clubs and the active Voluntary Management Committee
2. From the consultant’s report, it is clear that the current user fees are too low and need to be reviewed. Officers and the Voluntary Management Committee will have to work closely to ensure that, as far as possible, the future fee structure covers the cost of providing the facility for community use.
3. The Council’s payment to the school should cover the additional costs incurred by the school in having its facilities open for community use and not further subsidise the school’s base budget to the Council’s detriment.
4. Such proposals, which will secure the community use of the schools facility under the Council’s stewardship, will require significant variation to the contractual agreement between the Council and the school, which has not been reviewed since its inception in 1986 and is now seen as being out of date.
1) That officers are authorised to negotiate and conclude variations to the Dual Use Agreement with the North
Walsham High School to ensure that: a. The Council pays the school only for the additional costs incurred in having the b. school buildings open for community use
The Council assumes overall responsibility for setting all fees and charges relating to the
Dual Use Centre, in consultation with the
Voluntary Management Committee
2) That, should it be necessary to serve Notice to vary the existing or enter into a new Agreement to be implemented by 1 April 2013, officers, with the agreement of the relevant portfolio members, are authorised to serve the required notice on the school to end the current Dual Use Agreement.

3) That officers are authorised to work with the
Voluntary Management Committee to improve local management of the Dual Use Centre, including the setting up of a Community Sports
Trust if this is feasible.
4) That improvements to the facilities, such as the provision of a MUGA at the Dual Use Centre, are explored further with the school.
5) That officers are authorised to negotiate and conclude variations to the Dual Use Agreements with Cromer Academy and Stalham High School as per recommendation 1 above.
Cabinet member(s): Cllr John Lee, Cllr Trevor Ivory
Contact Officer(s) Nick Baker, Corporate Director ; Karl Read, Leisure and telephone no.s and e-mail:
Cultural Services Manager
01263 516221; 01263 516002
Nick.baker@north-norfolk.gov.uk
Karl.Read@north-norfolk.gov.uk
16. 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.”

Agenda Item 2__
Minutes of the meeting of the Cabinet held on Monday 15 October 2012 at the Council
Offices, Holt Road, Cromer at 10.00am.
Members Present: Mrs A Fitch-Tillett Mr K Johnson (Chairman)
Mr R Oliver
Also attending: Mrs A Claussen-Reynolds Ms B Palmer
Ms V Gay Mr R Reynolds
Mrs P Grove-Jones
Mr P High
Mr E Seward
Mr B Smith
Mrs A Moore Mr D Young
W
Officers in
Attendance:
Also in
Attendance: The press
The Chief Executive, the Head of Finance, the Technical Accountant, the Housing Services Manager, the Strategy Team Leader, the Coast and Community Partnerships Manager, the Community Projects
Manager.
The Leader welcomed Councillor Rhodri Oliver to the Cabinet.
FOR
None received
49. MINUTES
The Minutes of the meeting held on 10 September 2012 were confirmed as a correct record and signed by the Chairman.
50. PUBLIC
None received
51. ITEMS OF URGENT BUSINESS
None received
Cabinet 1
1
15 October 2012

None
53. MEMBERS TRAINING DEVELOPMENT AND SUPPORT GROUP
RESOLVED that the minutes of the meeting of the Member Training Development and Support Group held on 22nd May 2012 be received subject to the following amendment on page 2, paragraph 7:
‘An article had been put in the Members’ Bulletin regarding a £70.000 fine for a council that had mislaid paper records containing sensitive information’.
54. JOINT STAFF CONSULTATIVE COMMITTEE
RESOLVED that
The minutes of the meeting of the Joint Staff Consultative Committee held on 25
June 2012 be approved.
55. TREASURY MANAGEMENT – INVESTING IN POOLED PROPERTY FUNDS
Mr W Northam introduced this item. He explained that Cabinet and the Overview and
Scrutiny Committee had recommended that further consideration should be given to investing a proportion of the investment portfolio in pooled property funds when appropriate. With interest rates and investment returns likely to remain low for a long period, now was an appropriate time for the Council to consider alternative asset classes for its investments. The Council’s treasury advisors, Arlingclose, suggested that £5m was a suitable initial size of investment for NNDC to make into a property fund. For a deposit of this size, it was not felt to be worth diversifying between two funds and it was proposed that the Council invested with the LAMIT Fund.
Depending on the amount available for investment in the future, an additional allocation could be made to property at a later date through the Lime Fund.
Options considered:
Investment in other types of pooled investment funds has been considered, together with a continuation of the current strategy of only investing in cash orientated investments, but these options do not offer the potential of a higher return for the
Council when compared to the pooled property funds.
Members discussed the report: a) Mrs A Moore was concerned that £5m amounted to approximately a quarter of the capital fund. The Technical Accountant replied that the money was from core investments and had been there for many years. He added that it needed to be a substantial amount to ensure a decent return. b) Mr P W Moore said that Arlingclose had always advised the Council well in the past. He asked how quickly the money could be accessed if required. Mr W
Northam replied that it could withdrawn on a monthly basis. If a large amount was required then it may take longer as a property may need to sold to fund the request. c) Mr D Young sought further information on the reserves that would be established if the investments in LAMIT went ahead. The Technical Accountant explained that as the returns from this type of investment could fluctuate over time it was suggested that reserves were established to smooth out the return to the
Cabinet 2
2
15 October 2012

Revenue Account. Mr W Northam added that security was paramount. The
LAMIT had been operating for 30 years and was highly regarded. d) Mr D Young requested that the Council considered investing in the Norfolk Credit
Union at a future date.
It was proposed by Mr W Northam, seconded by Mr J Lee and
RESOLVED
That delegated powers be given to the Portfolio Holder for Resources and the
Section 151 Officer to invest in the Local Authorities Property Fund (LAMIT) and
Aviva Lime Property Fund as appropriate.
Reason for the Decision:
To diversify the Council’s investments and secure a higher return than existing investments.
56. NORTH NORFOLK HOUSING STRATEGY 2012-2015 (SUPPORTING
VULNERABLE PEOPLE TO LIVE INDEPENDENTLY WITHIN THE COMMUNITY)
Mr T Ivory introduced this item. He explained that this was the third and final document in the suite of housing strategy documents. It considered how vulnerable people could be supported to live independently within the community and contained a detailed action plan for the period 2012-2015.
Options considered : a) To do nothing. The Housing Strategy would be incomplete if this option was taken. b) To complete the document and address the needs of vulnerable people in the
District.
It was proposed by Mr T Ivory, seconded by Mrs A Fitch-Tillett and
RECOMMENDED to Full Council
To adopt the North Norfolk Housing Strategy (Supporting Vulnerable People to live independently within the Community)
Reasons for the decision:
To adopt the final document in a suite of three, which together form the North Norfolk
Housing Strategy 2012-15. Each document concentrates on a specific area and has an action plan
57. HOUSING ENFORCEMENT POLICY
Mr T Ivory introduced this item. He explained that the Council had not had a Housing
Enforcement Policy in place before and the intention was to provide a transparent approach to the action that would be taken to improve poor dwelling conditions across the district. It would form part of a wider strategy aimed at bringing together all the enforcement powers available to the Council and provide a more holistic approach.
It was proposed by Mr T Ivory, seconded by Mr R Oliver and
Cabinet 3
3
15 October 2012

RESOLVED to
Adopt the Housing Enforcement Policy
Reasons for the decision:
To provide a transparent approach to improving poor dwelling condition across the District.
58. THE NORTH NORFOLK BIG SOCIETY FUND – SECOND ROUND LARGE
GRANT APPLICATIONS
Mr T Ivory introduced this item. More applications had been received than previously and it had been necessary to be strict in assessing them against the Fund’s criteria to ensure that funds remained available for eligible and worthwhile projects that might be submitted in future rounds.
Five applications requesting funding of over £10,000 were submitted. Of these, one had insufficient information to be considered and two had been deferred pending further work to investigate a sustainable way forward. Two applications had been put forward for consideration by Cabinet. The first project sought to provide a multi-use games area (MUGA) for Erpingham and the second aimed to provide a new National
Coastwatch Institute facility at East Runton.
Members discussed the report: a) Ms V Gay sought clarification on the application from Erpingham Parish Council.
She felt that as it was proposed to pledge up to £10,000 it could have been referred to the North Norfolk Big Society Fund Board. Mr T Ivory explained that whilst the recommendation was for £10,000, the application had been for significantly more funding and that was why it had been referred to Cabinet for a decision. b) Mr P W Moore asked whether the funding for the MUGA was conditional on obtaining match funding or whether Erpringham Parish Council would receive it regardless. Mr T Ivory said that it was contingent on the Parish Council finding the balance and they would only receive the grant once the additional funding was in place. c) Mr W Northam said that he was very pleased that Coastwatch had been awarded a grant.
It was proposed by Mr T Ivory, seconded by Mr J Lee and
RESOLVED
1. To pledge support from the Big Society Fund up to £10,000 to Erpingham Parish
Council, contingent on the balance of funding for the MUGA project being forthcoming from elsewhere
2. That funding of up to £12,000 be provided to National Coastwatch Institution,
Mundesley in respect of its proposed East Runton facility.
59. NORTH WALSHAM TOWN CENTRE ENHANCEMENT AND SIGNAGE SCHEME
Cabinet 4
4
15 October 2012

Cabinet
Mr T Ivory introduced this item. He explained that approval was sought for £46,000 partnership funding support from the Council’s Leadership of Place Programme budget to contribute to the Market Place improvements and highway signage scheme that had been initiated by Norfolk County Council and agreed by North Walsham
Leadership of Place Steering Group and constituent local organisations. The total cost of the scheme was £96,000 and the County Council had a budget of £50,000 that had been approved by their Cabinet in March 2012. The scheme aimed to improve the physical infrastructure of North Walsham town centre and had been put forward as a partnership initiative to support the various projects aimed at improving the overall economic and community well being of North Walsham.
The proposed scheme focused on making improvements to highways, parking and traffic flows in conjunction with signage improvements. It was anticipated that a safer pedestrian environment would be provided as a result of the initiative.
The Council were not leading on this project as the County Council had responsibility for highways.
Members discussed the report:
1. Mr W Northam said that when he had met with North Walsham Town Council about car parking within the town, they had raised concerns about signage. It was felt that visitors to the town found it difficult to find the car parks and therefore any improvements to signage were to be welcomed.
2. Mr E Seward, Member for North Walsham North and Chairman of the Leadership of Place Project welcomed the proposals. He said that it was a modest scheme aimed at improving public safety and enhancing the appearance of the town centre. He added that there was broad consensual support for the scheme from within the town.
3. Mr P Moore, Member for North Walsham East, supported the scheme. He said that signage throughout the town should be looked at – including shop fronts and that improvements to road and pavement surfaces should also be considered as there were currently several variations throughout the town centre.
4. Mrs V Uprichard, Member for North Walsham East, said that she was concerned that the disabled parking and loading bay in Church Street seemed to have been left out of the proposals.
5. Ms V Gay, Member for North Walsham West, welcomed the improvements but said that it was important to ensure that they were in keeping with the church and the surrounding area. She thanked Mr E Seward for all his hard work – recently and prior to the establishment of the Leadership of Place project.
It was proposed by Mr T Ivory, seconded by Mr W Northam and
RESOLVED
1. To approve £46,000 funding support from the Council’s Leadership of Place
Programme budget, to contribute to the Market Place improvements and highway signage scheme in support of the Leadership of Place Programme.
2. To confirm that conditional to £46,000 being provided as a scheme contribution by
NNDC that any overspend on the total cost of this amount is covered by Norfolk
County Council from its own budget and that the signage works as part of the overall scheme are completed within the financial year 2012-13.
5
5
15 October 2012

3. That officers within both Conservation and Design and Property sections of the
District Council are fully engaged in the detailed design aspects of the schemes with
Highway officers working with Norfolk County Council.
Reasons for the decision:
To improve the existing highways and signage in North Walsham Town Centre, encouraging better usage of the facilities and the provision of a safer pedestrian environment.
60. 4/4a MARKET STREET (AND ADJACENT FORMER PUBLIC CONVENIENCES)
NORTH WALSHAM
Mr T Ivory explained that the report sought to address the issues relating to the
Council’s own landholding at a site in North Walsham town centre and recommended a way forward that would ensure that the derelict building occupying the adjacent site
(number 4 and 4a Market Street was improved). Now that the public toilets had been relocated to Vicarage Street, it was possible to bring forward a scheme that did not include the toilet facilities on the site. It was proposed that the Council should, under the auspices of the ‘infrastructure’ theme of the approved Leadership of Place Action
Plan take the appropriate steps to facilitate the improvement of the site within a reasonable timescale.
Members discussed the proposals: a) Mrs A Fitch-Tillett welcomed the proposals. She said that the site had originally come to the Development Committee seven years ago and it was imperative that action was taken to improve the site. b) Mr E Seward, commented that concerns about the site pre-dated his time as a councillor. Twelve months had been lost over a dispute with the Land Registry over a small strip of land behind the site, delaying any progress further. He said that he welcomed private development initiatives but not if it leads to such a log period of delay and that he supported the Council’s resolve to take action should it be necessary and would support the recommendations. c) Mrs V Uprichard sought clarification on the term ‘a reasonable period of time’. Mr
T Ivory said that he felt that had passed already and that if necessary the compulsory purchase order process could commence. The Chief Executive added that six months would be allowed for a developer to submit their proposals then a further 15 months for substantial completion. d) Ms V Gay commented that the site was a source of great concern to the residents of North Walsham. e) Mr P W Moore said that he would prefer tighter timescales. He commented that the planning system required that certification of ownership must be abided by and that this may have been the cause of previous problems and delays.
The Leader thanked the Coast and Community Partnerships Manager for his hard work on a very challenging project.
It was proposed by Mr T Ivory, seconded by Mr R Oliver and
RESOLVED
1) That authority be given to the Chief Executive, in consultation with the Corporate
Assets portfolio holder, to agree the transfer of the Council’s asset (site and building) at the Butchery toilets, North Walsham in accordance with the terms
Cabinet 6
6
15 October 2012

outlined in this report, to the owner of the adjacent site (4/4a Market Street, North
Walsham); and
2) That authority be given to the Chief Executive, in consultation with the Corporate
Assets portfolio holder, to acquire the site comprising 4 and 4a Market Street,
North Walsham, by private treaty for a sum not exceeding £35,000, or by compulsory means for the sum determined by any confirmed Compulsory
Purchase Order (by reference to Cabinet if necessary), should disposal under recommendation 1) not be satisfactorily completed within a reasonable period of time.
Reasons for the decision:
To improve a long-term derelict site within North Walsham Town Centre.
The Meeting closed at 10.50am
_______________
Chairman
Cabinet 7
7
15 October 2012

Agenda Item 8
Minutes of a meeting of the Council Tax Support Working Party held on 15 August
2012 in the Committee Room, Council Offices, Holt Road, Cromer at 10.00 am.
Members Present: Mr K Johnson
Working Party: Mrs A Claussen-Reynolds, Ms V Gay, Mr G Jones, Mr W Northam, and Mr R Oliver.
Officers in
Attendance:
The Head of Finance, the Revenues and Benefits Services
Manager, the Procurement Officer, and the Democratic Services
Officer (ED)
13 TO RECEIVE APOLOGIES FOR ABSENCE
Apologies were received from the Benefits Manager.
14 ITEMS OF URGENT BUSINESS
The Chairman informed the Working Party that a resolution had been submitted by
Ms V Gay and Mr G Jones.
Ms V Gay introduced the resolution:
‘We believe the Council Tax Benefit Localisation legislation to be flawed, potentially creating negative impacts on individuals, families and the local economy. We accept that the Council has to produce a local scheme by the set deadlines, but we believe further time is required to achieve the fairest scheme possible for those in greatest need. This is particularly important when there is:-
•
Pressure on the existing council tax system and the challenge of introducing shared services with West Norfolk while also introducing any changes to the support system.
•
A need to explore all options for a local scheme in greater depth, including funding the scheme from outside the council tax benefit budget.
•
A requirement to carry out effective consultation on the proposals and detailed impact assessments of likely options, on local residents and the local economy.
•
A possibility of further amendments to the legislation as part of the final approval process/implementation stage.
In light of this situation, it is proposed to create an interim arrangement for North
Norfolk to meet the legislative requirements and laid down timescales. This interim scheme to be funded from non council tax benefit budgets and reserves for one year only while further work is undertaken to agree future funding options in the light of further investigative work.
8

Agenda Item 8
It is therefore recommended that the Working Party investigate the introduction of an interim one year arrangement funded from non council tax benefit budgets and reserves. A longer term sustainable option will then be considered as part of the first annual review. ‘
She emphasised that they were very concerned about the timescale imposed on the
Council and that the assumption that the scheme should be cost neutral from the outset.
Members discussed the proposal:
1. The Chairman reminded the Group that several options had been presented to them at the previous meeting and they had agreed to pursue one. He emphasised that there would be an opportunity to review the scheme next year and adapt it if necessary. There was no choice but to comply with the timescale or the government’s existing scheme would be imposed on the council. He concluded by saying that he would prefer to continue with the modelling option agreed at the last meeting and follow the timescale discussed then.
2. Mr R Oliver commented that if there were any further legislative changes then they would be taken into account and the scheme would be adjusted accordingly.
3. Mrs A Claussen-Reynolds reminded Members that the scheme should be as simple as possible to help officers achieve the timescale imposed on them.
4. Ms V Gay asked whether the Council had undertaken any modelling on the effects of charging 100% council tax on second homes. The Head of Finance replied that reforms to council tax discounts were being looked at by officers countywide and a proposal had been made to return half of any extra income raised to the districts. This could be used for a hardship fund or to continue the work into returning empty homes back to use. She added that the additional income would only amount to approximately £46,000 for NNDC’s share of the council tax bill. There was also a case to be made for maintaining an element of discount on second homes so that the Council were aware of the number of such properties across the district. Regardless of the work in this area, it was not something that should delay the work of the Working Party.
5. Ms V Gay asked whether the Benefits reserve which had been set aside to mitigate ‘clawback’ from the Department for Work and Pensions still held
£642,000. The Head of Finance said that £640,000 remained in the reserve. She added that there was the added risk of changing software systems to be taken into account. The audit was still ongoing so there was still significant risk.
6. The Chairman asked about the infrastructure fund and whether it would be possible to have it reinstated. The Head of Finance said that the decision relating to the fund lay with the County Council.
7. Mr G Jones said that he felt the impact of introducing the scheme would be too great. In some cases, the equivalent of one third of their council tax benefit would be taken away. He believed that the Council’s reserves were there as an insurance and they should be used to minimise the impact on vulnerable residents. He added that he believed there was a real possibility that there would be amendments to the legislation and it therefore made sense to put an interim scheme in place. In addition, he felt that introducing the scheme would exacerbate the current delays in benefits payments caused by the change-over to a new system. The Revenues and Benefits Manager said that there was an issue regarding resources that could impact on the delivery of the scheme but that all authorities were going through the same process and they were able to work together with other councils across the region. She added that if the introduction of the scheme was delayed it may help in the short term but the impact would be felt in a year’s time.
9

Agenda Item 8
8. Mr G Jones asked whether the Council would be able to cope with the increase in telephone calls that would occur as a result of the scheme being introduced. The
Revenues and Benefits Manager said that additional resources would be required but this was anticipated and planned for.
9. Mr R Oliver queried the reference to alternative options within the resolution. He asked for further information. Mr G Jones said that he was not sure at this stage but that there were alternatives that could be considered including further negotiation with the County Council and the Government. In response to a comment from Mrs A Claussen-Reynolds that there was not sufficient time to investigate other options, Mr G Jones said that work could continue on the current scheme alongside investigating other alternatives. When pressed for specific examples of alternative options, Mr G Jones said that he no longer wanted to be involved with the Working Party and resigned.
The Chairman asked Ms V Gay how she wished to proceed with the resolution following Mr G Jones’ resignation. She referred to the Cabinet Agenda of 16 th
July, page 24 (5.3) which mentioned the benefits earmarked reserve as a possible resource. She stressed that the original papers had not indicated that a cost neutral solution was the only option under consideration and that Liberal Democrat members had participated in good faith in the hope of exploring a wider solution. She felt that the situation regarding funding for the scheme had not been made clear until the terms of reference were presented to the Group at the inaugural meeting on 7 th
August. It was for the Chairman to decide how to respond to the resolution.
The Revenues and Benefits Manager said that the proposed scheme did provide some flexibility. The cap of 70% could be raised following the consultation if additional funding was available.. Any additional funding would only improve the scheme. There was only a requirement to re-consult on the scheme if any changes had a detrimental impact. Some authorities had included child benefit and maintenance payments as income within their schemes and this was a possibility that could be considered. Further models could be produced in the future if necessary.
Mr R Oliver said that he had contacted the County Council about a change to the funding formula for pensioners and the working age group. It was not something that could be achieved this year due to the timescale and the potential impact on other districts but he would continue to lobby for additional funding.
The Chairman proposed that the resolution was put aside and reconsidered once the consultation period was closed. This proposal was agreed.
15 DECLARATIONS INTEREST
None
16 MINUTES
An amendment had been received from Ms V Gay. She requested that it was recorded that she had abstained on item 10 ‘Modelling Options’. The minutes were then approved as a correct record.
Ms V Gay asked if a figure was available regarding the impact of the scheme on debt collection rates. The Revenues and Benefits Manager replied that Mr D Airey had suggested that the Council should allow 0.5 - 1% for this.
10

Agenda Item 8
17 PROPOSALS FOR A DRAFT COUNCIL TAX SUPPORT SCHEME
The Revenues and Benefits Manager explained that a draft report had been put together outlining proposals for a council tax support scheme. Once the Working
Party was satisfied with the proposed scheme it would be sent to the delegated authorities for approval.
Members discussed the draft report:
1. Mr R Oliver said that ideally he would like to see extra funding for incentivising work. He asked whether there was data available to show how people in receipt of a certain amount of benefits would be affected financially by the proposed scheme. The Revenues and Benefits Manager said that individual scenarios had been produced. They did not always add up as some people could be affected by more than one scenario by having two potential changes to their benefits payments.
2. Ms V Gay said that the scenarios provided did not reflect the full income of certain groups, it was only possible to tell how much was being removed. The
Revenues and Benefits Manager said that extra detail would be included in the scenarios that were being prepared for the consultation. Mr R Oliver added that a full breakdown of people’s income would be needed to assess if they were eligible for the hardship fund.
3. The Chairman commented that the Council relied on people being honest about their income and he asked how often this information was checked. The
Revenues and Benefits Manager replied that checks were made quite frequently.
There was also a system of cross-referencing with information held by the
Department for Work and Pensions.
4. Mr R Oliver referred to the proposal for an Exceptional Hardship Fund. He said that consideration should be given as to which groups of people would be affected the most by a drop in their standard of living. He suggested that there were three categories of need:
•
Those with a dramatic drop in the standard of living
•
Individuals with a very low income
•
People in short-term need
He asked whether the hardship fund would be provided in the form of an extra discount or by individual payments. The Revenues and Benefits Manager said that applications would be considered on a case by case basis – as applications to the Discretionary Housing Fund and Discretionary Rate Relief funds currently were. Personal circumstances would be taken into account and any payments would be on a short-term basis, not ongoing. Currently payments were given in blocks of 3 months and they were always reviewed after 6 months. The Group could decide on the length of term for any payments. In response to a further question from Mr K Johnson regarding who allocated the discretionary housing payments, she explained that they were awarded by a panel made up of experienced staff from the Benefits and Housing Teams.
5. Mr R Oliver asked whether it would be possible to identify people who would be worst affected by the amalgamation of various scenarios and then target them and encourage them to apply for the hardship fund. The Revenues and Benefits
Manager agreed that this was possible but there could be an issue regarding equality if this approach was taken. She said that it was important to publicise the hardship fund well. It was also important to consider any other external support that that applicants may be receiving and any savings they could have.
11

Agenda Item 8
AGREED
To recommend the proposals for a draft council tax support scheme and the consultation process to the delegated authorities.
Ms V Gay reiterated her reservations about the proposals and abstained.
Mr K Johnson said that he would like all Members to be aware of the proposals as soon as possible and requested that a briefing was arranged. The Revenues and
Benefits Manager said that this would be organised as soon as possible. She explained that she would like the consultation documents to be circulated to the members of the Working Party before they were released and put on the website.
She was working with the Media Team to draft a leaflet. Once finalised, the County
Council and the Police would need to be consulted.
Ms V Gay asked whether Parish Councils would be involved in the consultation. Mr K
Johnson said that Members regularly attended parish council meetings and could inform them about the proposals. This made it even more imperative that Members were briefed on the scheme as soon as possible.
The Meeting closed at 10.54 am.
Chairman
12

Agenda Item 9
8 OCTOBER 2012
Minutes of a meeting of the PLANNING POLICY & BUILT HERITAGE WORKING PARTY held in the Committee Room, Council Offices, Holt Road, Cromer at 10.00 am when there were present:
Councillors
K E Johnson (Chairman)
D Young
Mrs P Grove-Jones – observer
R Oliver – observer
Officers
Mr P Godwin – Conservation, Design and Landscape Manager
Mr P Rhymes – Conservation and Design Officer
(20) APOLOGIES FOR ABSENCE
Apologies for absence were received from Councillors Mrs S A Arnold, M J M Baker and N D Dixon.
(21) MINUTES
The Minutes of the meeting held on 20 August 2012 were approved as a correct record and signed by the Chairman.
(22) ITEMS OF URGENT BUSINESS
The Chairman stated that there were no items of urgent business which he wished to bring before the Working Party.
(23) DECLARATIONS OF INTEREST
Councillors B Cabbell Manners and K E Johnson declared that they were local
Members for Cromer Town Ward.
(24) CROMER CONSERVATION AREA MANAGEMENT PLAN
Prior to consideration of the Conservation Area proposals, the Conservation, Design and Landscape Manager explained the role of the Working Party in considering
Conservation Area Appraisals and Management Plans and heritage issues, and the importance of ensuring that the integrity of Conservation Areas and important buildings and spaces was maintained and enhanced.
In response to a question by Councillor P Williams as to whether this Authority had jurisdiction over Conservation Areas in the Broads Authority area, the Conservation,
Design and Landscape Manager explained that the Broads Authority was responsible for Conservation Areas within its area.
Planning Policy & Built Heritage Working Party 1
13
8 October 2012

Agenda Item 9
The Working Party considered item 1 of the Officers’ reports in respect of a recommendation to Cabinet that the Cromer Conservation Area Management Plan be adopted for statutory planning purposes and become a material consideration in the planning process.
Public Speaker
Mr A Boyce (Cromer Preservation Society – supporting)
Councillor B Cabbell Manners stated that the area of Morrison’s car park was the former railhead and had originally been included in the Conservation Area to preserve the openness of the site. He was concerned that if the area were removed from the Conservation Area it could be vulnerable to future development which could destroy the open nature of the site. He referred to an appeal which had resulted in the retention of the open space.
The Conservation, Design and Landscape Manager explained that there were other planning controls which could protect the open space. It was important to ensure that the designated Conservation Area was of the highest quality.
In answer to concerns raised by Members, the Conservation, Design and Landscape
Manager explained that when considering planning applications adjacent to
Conservation Areas, account was taken of the impact of the proposed development on the setting and character of the Conservation Area itself.
Councillor P Williams asked how many of the buildings recommended for local listing were in need of repair and whether lottery funding could be available to train people to maintain such buildings.
With the consent of the Chairman, Mr Boyce stated that he had toured the area with
English Heritage’s Historic Buildings Advisor for Conservation Areas, who had given advice regarding preservation issues which the Cromer Preservation Society would be considering next year. He was most concerned with regard to the area between
Prince of Wales Road and Alfred Road in Cromer which had suffered from some neglect. He considered that the area would benefit from regeneration funding and further controls.
The Chairman requested that Officers give consideration to Mr Boyce’s concerns.
It was proposed by Councillor B Cabbell Manners, seconded by Councillor P W High and
RESOLVED unanimously
That Cabinet be recommended:
1. To adopt the Cromer Conservation Area Management Plan for statutory planning purposes and for it to be a ‘material consideration’ in the planning process.
Planning Policy & Built Heritage Working Party 2
14
8 October 2012

Agenda Item 9
3. To endorse the preparation of a further report relating to the introduction of Article 4 Directions as and where necessary.
4. That the buildings identified for Local Listing be formally recognised and recorded.
5. That a further report on potential buildings to be added to the
Local List for Cromer be prepared.
(25) WALSINGHAM CONSERVATION AREA APPRAISAL & MANAGEMENT
PROPOSALS
The Working Party considered item 2 of the Officers’ reports in respect of the Draft
Walsingham Conservation Area Appraisal (incorporating Management Proposals) with a recommendation that it forms the basis for public consultation.
Councillor Mrs A R Green referred to the condition of some of the barns owned by the Walsingham Estate and asked if anything could be done to prevent their further decline. Councillor B Cabbell Manners suggested that the Officers write to the
Walsingham Estate Office regarding this matter.
Councillor P W High supported the removal of areas 1 and 3 from the Conservation
Area. However, he considered that area 2 should remain in the Conservation Area as it was an important part of the village.
In response to a question by Councillor P Williams, the Chairman stated that a change in the Council’s policy on barn conversions would make it easier to bring barns back into use in the future.
It was proposed by Councillor B Cabbell Manners, seconded by Councillor P
Williams and
RESOLVED
1. That Cabinet be recommended to approve the Draft Walsingham
Conservation Area Character Appraisal and Management Proposals for public consultation purposes.
2. That following consultation, the amended Walsingham Conservation
Area Character Appraisal and Management Proposals be brought back to the Working Party for consideration and subsequent adoption by
Cabinet.
The meeting closed at 11.40 pm.
Planning Policy & Built Heritage Working Party 3
15
8 October 2012

Agenda Item No______10______
FINANCIAL STRATEGY 2013/14 to 2015/16
Summary: This report presents the current financial forecast for the period 2013/14 to 2015/16 and provides a summary of
Options considered: the key issues facing the Council in relation to Local
Government Finance.
Conclusions:
Recommendations:
Reasons for
Recommendations:
The current financial forecast presents a funding gap for the next three years of up to £1.7 million. 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.
It is recommended that Members note:
1) the current financial forecast for the period
2013/14 to 2015/16;
2) the current capital programme and capital funding forecasts;
3) the revised reserves statement as included at
Appendix C to the report.
To update members with the current financial position of the authority as further work on the detailed budget for
2013/14 is completed over the coming months.
Cabinet Member(s) Ward(s) affected
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 Annex to this covering report sets out how both the external financial changes and internal budget pressures will impact on the overall financial position of the Council during the period of the Corporate
Plan.
1.2 There are significant changes to the financing of local government from the centre as the Formula Grant arrangements are dismantled and replaced by a predominantly more localised funding system. These issues are discussed in detail and cover business rates, council tax and other developments.
1.3 The changes need to be understood against the background of reduced public expenditure and the Government’s austerity programme and flow from the Corporate Spending Review 2010 (CSR2010). The Chancellor’s Autumn
16

Budget Statement scheduled for 5 December 2012 should provide more detail to inform the detailed work on the forward estimates for 2013/14 and beyond.
1.4 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.
1.5 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 2013.
2 Financial Implications and Risks
2.1
The detail within the financial strategy has highlighted the significant changes that Local Authorities are facing in terms of the funding they will be receiving in the future. In particular the Strategy addresses the shift from a fully funded national scheme for council tax relief to a localised scheme as well as the proposals for business rate retention.
2.2 Additionally the Strategy highlights the necessity that efficiency savings and other adjustments to the revenue budget base line identified in the various workstreams being undertaken across the Council need to be fully delivered.
3 Sustainability
3.1 None as a direct consequence from this report.
4. Equality and Diversity
4.1 This report does not raise any equality and diversity issues.
5. Section 17 Crime and Disorder considerations
5.1 This report does not raise any Crime and Disorder considerations.
17

FINANCIAL STRATEGY 2013/14 – 2015/16
1. INTRODUCTION
1.1 In February 2012 the Council approved the budget for 2012/13 and at the same time it considered the forward financial projections for the following three years
(2013/14 to 2015/16). The budget for 2012/13 includes savings and additional income totalling over £1.2 million (consisting of service savings/income of
£897,096 and corporate savings of £375,446). After factoring these in for future years and making assumptions around inflation, income and grant funding levels, the forecast budget gap for the following three years was projected to be
£267,000 in 2013/14 increasing to £1.072million in 2014/15 and to £1.232million by 2015/16.
1.2 This document now seeks to update these financial projections and sets out the financial strategy for the next three years in line with the current Corporate Plan
2012-15, which covers the same period.
1.3 Reductions in grant funding for local government were announced back in
October 2010 as part of the Comprehensive Spending Review 2010 (CSR 2010).
This covered the period 2011/12 to 2014/15 and essentially set out the
Governments departmental spending plans for the four years until 2014/15. The current financial year of 2012/13 is the second year of the current spending review period and the final year for which provisional figures have been published for individual authorities. The timing of the next spending review has not been confirmed, although it is expected to be sometime during 2013 and is likely to cover the final year of the current spending review, i.e. 2014/15.
1.4 From 2013/14 local authorities are facing a significant change to their system of financing. This is discussed in more detail within section 2, but essentially there is a fundamental shift from a formula grant system to one financed by locally retained business rate income plus grant.
2. BACKGROUND AND CONTEXT
2.1 There are a number of current issues facing the public sector in terms of financing. Each of the following are discussed in more detail:
•
Economic
•
Local Government Finance Bill
•
Business Rates Retention
•
New Homes Bonus
•
Council Tax Support Scheme
•
Council Tax Reforms
•
Welfare Reform Bill
2.2 Economic Outlook
2.2.1 Economic output in the UK had weakened for three consecutive quarters with a contraction of 0.5% in the second quarter of 2012. The third quarter however, showed the economy coming out of recession and growing by an estimated 1.0%.
This was much stronger than forecast and was affected by the Olympic and
Paralympic Games, and the additional holiday for the Queen’s Diamond Jubilee in the second quarter. The outlook for growth in the near term does remain weak though, particularly whilst uncertainty in the Euro zone countries persists.
2.2.2 A gradual strengthening in the growth of households’ incomes, together with the combined stimulus from the Bank of England’s asset purchase programme
(Quantitative Easing) and the Funding for Lending Scheme (which provides
Financial   Strategy   2013/14   to   2015/16   October   2012
18
Page   1   of   26

incentives to banks and building societies to lend more to UK households and businesses),should prompt a gradual pickup in economic activity.
2.2.3 Despite the poor growth resulting in much weaker public finances than had been forecast, the Government is expected to stick to its deficit-cutting strategy.
2.2.4 The financial markets are anticipating a further 0.25% cut in official interest rates by the end of this year. It could be 2016 before interest rates begin to rise again.
2.2.5 Consumer Price Inflation decreased to 2.2% year-on-year to September 2012, from 2.5% a month earlier.
2.3 Local Government Finance Bill
2.3.1 The Local Government Finance Bill (the bill) was introduced by the Secretary of
State in December 2011. The Bill included a number of proposals designed to encourage local economic growth, reduce the financial deficit and drive the decentralisation of control over local government finance.
2.3.2 This bill represents a major change to the way that local government will be financed from 2013/14 onwards. In particular the Bill includes the following changes:
• Business Rate Retention (para 2.4) - Enabling local authorities to retain a proportion of the business rates generated in their area, providing them with strong financial incentive for them to promote local economic growth;
• Localised Council Tax Support Scheme (para 2.6) - Providing a framework for the localisation of council tax support to replace the current council tax benefit system, which alongside other council tax measures, will give councils increased financial autonomy and a greater stake in the economic future of their local area, while providing continuation of council tax support for the most vulnerable in society, including pensioners. The savings nationally from the localisation of council tax support is expected to be
£500m;
•
Council Tax Reforms (para 2.7) –Provide further flexibility on the council tax local authorities can charge on empty properties, and other small changes aimed at modernising the system.
2.3.3 Each of these are discussed in the following sections of the document.
2.4 Business Rates Retention
2.4.1 In December 2011 the Government published its proposals for the introduction of a business rates retention scheme (BRRS). Their response to this was subsequently published in May 2012 and a technical consultation was then launched in July which closed in September 2012. The timing of the final scheme announcement has not yet been confirmed.
2.4.2 The overriding principal of the BRRS is to incentivise growth at a local level and implement a funding regime that replaces the current complex and centralised formula grant system with a simple and transparent system that is related to growth at a local level. The incentive to local authorities is that a share of any growth in business rate income is retained locally.
2.4.3 From April 2013, a portion of local authorities’ income will change with business rates growth, rather than being determined by complex formulae. Moving from the current complicated arrangements inevitably means there is a degree of complexity to the transitional arrangements which will apply on introduction of the new scheme. Once the new scheme is established, authorities will know what proportion of business rates they can keep, how much they are to pay as a “tariff”
Financial   Strategy   2013/14   to   2015/16   October   2012
19
Page   2   of   26

or receive as a “top-up”, the rate at which their growth will be levied and the floor below which the safety net will prevent their income from falling. These parameters will be fixed until 2020.
2.4.4 Due to the significant changes, the transition from the current system to the new system from 2013/14 will involve a degree of complexity, yet in the longer term the new system is expected to have less complexity.
2.4.5 Under the current formula grant system the Council receives (government) funding from a Revenue Support Grant (RSG) and an allocation of redistributed business rate (i.e. total business rates collected are paid over to government centrally and then reallocated to individual authorities). Under the new system funding to the Council will comprise of a local retained business rate income and a
RSG.
2.4.6 The main elements of the new scheme are: a) The starting point for the new scheme from 2013/14 (baseline funding) will be based on how much authorities would receive under the existing scheme, subject to updating and changing many of the details of the existing formula and the initial amount available to be shared between authorities being reduced in line with current Government plans, i.e. those outlined in the 2010 spending review. b) The proposals for the new scheme focus on the distribution of business rates revenues, rather than changes to the system of business rates taxation. Businesses (ie non domestic rate payers) will see no change to the way their rates are paid or set and increases in the rates will remain under the control of central government. The revaluation process will be unchanged. c) Business rates collected will be split 50/50 between central and local shares. d) Central share will be used to fund the RSG element for the new scheme. e) Local shares will be split 80/20 between the district and the county councils (for two tier authorities). f) Local shares will be subject to tariffs and top-ups to reflect the local spending needs. Authorities with a high business rates base compared to their funding level would pay a tariff (Districts), and those with a higher spending need compared to retained business rates will receive a top-up payment (Counties). g) A reset period is proposed after seven years (2020), at which time new baseline funding, base rate baselines (and therefore tariffs and top ups) are set. h) The Business rates baseline (i.e. income generated) will be calculated from the national aggregated level forecast for 2013/14 and then apportioned to each authority. i) The difference between funding and baseline determines a tariff or top up position.
2.4.7 Appendix A provides an overview of the system graphically.
2.4.8 The main elements of the scheme in relation to business rate growth are: a) Local Authorities will be able to retain a proportion of business rate growth or conversely if there is decline Local Authorities will see a reduction in their income.
Financial   Strategy   2013/14   to   2015/16   October   2012
20
Page   3   of   26

b) Authority’s that experience disproportionate growth will be required to pay a levy and this will be used to provide a safety net for authorities experiencing little or negative growth. The calculation of levy and safety net payments (as outlined within the consultation document) indicates that the safety net will fall within the 7.5%-10% range and funded by a 1:1 levy as already announced. Essentially a Local Authority could have a reduction in income of up to 10% before safety net funding would be applied. c) The levy will limit disproportionate benefit from growth in an authority’s business rates base. For every 1% increase in business rates baseline, an authority will only see a 1% increase in its funding level. d) The following provides an illustrative example of how the levy payment might work for NNDC:
Table 1 £000
Business Rates Baseline
1% Growth
Local Share (50%)
A
B = 1% of A
C = 50% of B
22,000
220
110
District Share (80% of the 50%)
Levy payment *
D = 80% of C
E = 67% of D
88
59
Additional Income Retained by District D minus E 29
*Levy calculation based on available modeling suggests in range of 64% to 67% for NNDC e) Local Authorities will receive a RSG and the baseline funding level and
RSG (less tariff) will determine the startup funding allocation for the
Council. The RSG will be the share of additional money that is returned to authorities to make the retained amount of business rates up to the national total set out by the Treasury and will be in proportion to the individual funding targets. The distribution of RSG is to enable some stability within the overall funding system.
2.5 New Homes Bonus
2.5.1 Within the Comprehensive Spending Review the government announced plans for funding to be made available for the New Homes Bonus Scheme. The New
Homes Bonus was a new scheme designed to incentivise and reward councils and communities who wished to build new homes in their area.
2.5.2 The key features of the scheme were as follows: a) The bonus would be paid as a grant, which in summary will from 2011/12 match fund the additional council tax for each new home and property brought back into use, for each of the 6 years after that home is built with an additional amount (£350) for affordable homes. The growth in the number of properties each year is calculated as new dwellings less any demolitions plus or minus the net change in empty dwellings. b) The match funding is split between upper and lower tier authorities on a
20/80 ration.
Financial   Strategy   2013/14   to   2015/16   October   2012
21
Page   4   of   26

c) The value of the bonus should increase for at least six years. The payment for 2011/12 was based upon the growth in new homes in the year to
October 2010. The 2012/13 bonus reflects growth in the two years to
October 2011. In the third year, the bonus will be based on the growth in the first, second and third years of the scheme and. d) Local authorities are able to spend the funding in line with local community wishes. This may have related specifically to the new development or more widely to the local community. For example, they may have wished to support frontline services like bin collections, or improve local facilities like playgrounds and parks. e) The government set aside nearly £1 billion over the Comprehensive
Spending Review period for the scheme, including nearly £200 million in
2011/12 (year 1) and £250 million for each of the following three years.
Funding beyond those levels would come from reductions in formula grant.
National funding allocated for years 1 and 2 of the scheme are as follows: f) Year 1 Allocations - £199 million g) Year 2 Allocations - £431 million including, the second year one installment of £199 million and the first year two installment of £233 million. h) The bonus is paid through section 31 of the Local Government Act 2003 as an un-ringfenced grant. The New Homes bonus has now been operational for two years, the allocation for 2012/13 of £611,678 is made up of the following:
Allocation
Year 1
Year 2
2011/12 Allocation £
349,762
N/a
2012/13 Allocation £
349,762
261,916
2.5.3 The base budget for the current financial year assumed the total would be transferred to an earmarked reserve pending further decision about it’s use.
2.5.4 The technical consultation on the Business Rates Retention Scheme included implications to the NHB and future funding. Essentially the key points from the consultation documents was that £2billion would be taken out of each year’s spending control total (upto 2020 reset year) to fund the NHB. The Government’s aim is that NHB payments will be announced with the provisional Local
Government Finance Settlement.
2.5.5 A policy on the use of the NHB which supports the government’s intention will be developed.
2.6 Local Council Tax Support Scheme (LCTSS)
2.6.1 Within the CSR 2010 the Government announced its intention to localise support for Council Tax from 2013/14 with an expectation that expenditure on the scheme would reduce by 10%. A detailed report was presented to Cabinet on 16 July
2012 outlining the changes to the scheme along with the detailed financial implications.
2.6.2 On 16 October 2012 the Department for Communities and Local Government
(DCLG) announced transition grant funding of £100million being made available to encourage best practice in designing local schemes. Further details on the
Financial   Strategy   2013/14   to   2015/16   October
22
2012    Page   5   of   26

implications to Local Schemes of the funding is still to be announced and quantified although it is expected that applications for the funding will need to be made after 31 January 2013. The implications of the additional funding are being considered by the Council Tax Support Working Group. For information and background the following paragraphs provide an overview of the original scheme.
2.6.3 In summary, the new scheme is moving from a national system of council tax benefit which is currently budgeted to be funded 100% from Central Government via the Department for Work and Pensions (DWP), to a local support scheme for which the major preceptors and billing authorities will receive grant funding but at a level
1
that is less than the current costs of the scheme in order to deliver the savings required by the Government.
2.6.4 The total cost of Council Tax Benefit in 2011/12 for NNDC was £8.2million
(unaudited), the budgeted figure for 2012/13 is £8.1 Million. Based on the indicative grant funding that has been announced savings of £1.17m are required against the current scheme in order for a fully funded scheme to be implemented, i.e. with no impact on the Council’s budget from 2013/14. A draft scheme has been developed which is currently being consulted upon. The consultation period runs until 14 October 2012. The final scheme must be approved by January 2013 for implementation from April 2013.
2.6.5 Whilst it is a localised scheme the Government has set rules to protect pensioners on low incomes and also outlined some key principles of the scheme:
•
Being means tested with most income taken into account and most outgoings not taken into account
•
Provide support for those who work so that they are better off than if they had relied on public funds
•
Protect those of pension age and protect if agreed, other residents who are considered could not be expected to work
•
Be seen to be a fair and reasonable use of public funds
•
Feature rules that are similar to those for other state benefits, to make the scheme easier to understand
•
Be operationally efficient and within budget.
2.6.6 There is a risk that expenditure under the scheme being designed and implemented is greater than the amount of central Government funding for the scheme. This would mean that the costs of the scheme will fall to the major preceptor and billing authority in proportion to their respective shares of the council tax. Table 2 illustrates the position based on the indicative grants.
Table 2 Average Band D
2012/13 £
% Saving
Required
£000
Norfolk County Council
Norfolk Police Authority
1,145.07
196.92
North Norfolk District Council 138.87
75.43
12.97
9.15
887
152
108
1
Based   on   indicative   funding   announcements.
Financial   Strategy   2013/14   to   2015/16   October   2012
23
Page   6   of   26

Local Precepting Authorities 37.20 2.45 28
Total 1,518.06 1,175
2.6.7 Reductions will be applied to council tax bills for CTSS in the form of a discount.
This will mean the tax base for the authority will reduce. There is also expected to be a reduction in the collection rate as Council Tax will be payable by tax payers who previously would have received full benefit and no charge would be payable.
These two factors will feed through to the Collection Fund accounting arrangements and will impact on the major preceptors and billing authority. The following illustrates the implications; figures included illustrate the current position for 2012/13:
Council Tax Requirement
(£5.745 million)
(Will be reduced as billing and major precepting authorities receive new funding, reducing the amount they need to raise through
=
Council tax)
Band D
Council Tax
Collection Rate
(£138.87)
(98.5%) X
Number of Band D
Equivalents
(41,996.2)
(Proportion of council tax which the billing authority thinks it will collect
(Will be reduced because more dwellings will be eligible for reductions under the new scheme)
2.6.8 The impact on the Local Preceptors (Parishes) has recently been negated in terms of the tax base, the current consultation regarding this is recommending that two tax bases be maintained so that the Parishes will see no impact from the new scheme. The overall impact from the reduction in tax base is currently forecast to be offset by the grant for the scheme assuming that a fully financed scheme is implemented from April 2013.
2.6.9 Whilst the consultation has negated the impact to the parishes, it does create a risk to the major billing authority in terms of funding any scheme shortfall (relating to the parish element).
2.7 Council Tax Reforms
2.7.1 Councils currently have the discretion to reduce the amount of council tax payable for certain classes of dwelling for example second homes. For other classes of dwellings, in the past legislation has been prescriptive in terms of the lowest level of discount that the billing authority (i.e. NNDC) can make. Legislation for the new discretions is still to be passed and therefore this section provides an overview only of the proposed changes and the estimated financial implications to the
Council.
2.7.2 The Government consulted on Technical Reforms to Council Tax in 2011 and published their response in May 2012. The changes include giving authorities new flexibilities on the level of discounts on second homes and empty dwellings.
2.7.3 There are essentially two drivers for the changes:
Financial   Strategy   2013/14   to   2015/16   October   2012
24
Page   7   of   26

(a) Local authorities will be given more local control to help them keep council tax down;
(b) Providing authorities with stronger levers to encourage the effective use of housing stock, i.e. managing second home ownership and encouraging owners to bring empty dwellings back into use promptly.
2.7.4 Essentially while there are increased discretions that are being made available to
Local Authorities in determining council tax discounts, they should not be seen as an additional income generation opportunity alone. The level of additional funding that could be made available to the authority from its share of the funds collected
(9.1% of the total council tax bill), by changing levels of discounts needs to be considered alongside the additional resources in terms of administration, collection and system software updates that will be required to implement the changes. The following outlines the changes proposed and Appendix B provides a summary of each and the potential additional income available from the districts share of the council tax bill that could be generated from a number of the options.
It should be emphasised that the estimates do not take account of non-collection.
2.7.5 Second Homes - The Government’s intention is that billing authorities are allowed to levy up to full council tax on second homes. There will be no duty imposed on a taxpayer to declare that a dwelling is a second home, therefore if the discount is removed completely there will be no incentive for taxpayers to let billing authorities know the status of a dwelling. If a discount is offered the
Council will be able to seek information supporting a claim for discount, and require the taxpayer to notify the Council if they later cease to qualify for the any discount that has been given. The discretionary element of the second homes council tax is currently 40% on top of the 50% charge. The Council has an annual agreement with the County Council whereby 50% of the discretionary element (ie
50% of the 40% charge) is returned to the District and is used to fund the Big
Society Fund.
2.7.6 Uninhabitable Dwellings - The Government’s intention is to abolish the Class A
Exemption. This enables a taxpayer to claim a 100% reduction for an unoccupied property undergoing or needing major structural repair work. The property can be exempt for up to 12 months. Billing authorities will be allowed to give a discount which they can set at any amount up to 100%, for up to 12 months for such dwellings.
2.7.7 Vacant Dwellings - The Government’s intention is to abolish the Class C
Exemption. An unoccupied and unfurnished property (including newly built properties), can currently be exempt for up to six months. Billing authorities will be allowed to give a discount for any amount up to 100% up to 6 months for such dwellings.
2.7.8 Empty Homes Premium - The Government’s intention is to allow billing authorities to levy a premium of up to 50% which can be added to the council tax charge for a dwelling that has been empty and unfurnished for two years. There is a current consultation on the Empty Homes Premium outlining proposals on dwellings which will not be liable for the premium. Essentially the consultation is recommending that where a dwelling is genuinely on the market for sale or letting then a premium should not be applied.
2.7.9
Long-term Empty Properties - The Government is not proposing any changes to existing legislation that currently allows billing authorities to grant a discount of between 0% and 50% on properties which have been vacant for more than 6 months (i.e. following the current class C exempt period). The Council allows no discount on properties more than 6 months.
Financial   Strategy   2013/14   to   2015/16   October   2012
25
Page   8   of   26

2.7.10 Other issues that need to be considered are the implications of implementing the changes in terms of software costs, administration and collection costs. Also there could be movements between classifications of properties for the home owner to benefit from the lowest Council tax charge which will reduce the level of additional income.
2.7.8 Discussions have been held on a county wide level in terms of setting a consistent discounts policy and options around returning a share of any additional revenues to the billing authorities. These are yet to be finalised and could be used to inform the local discounts policy.
2.8 Welfare Reform Bill
2.8.1 In February 2011 the Welfare Reform Bill was published which contained provisions for the replacement of Council Tax Benefit with a new localised scheme as outlined within the spending review. Consultation on the proposals for the localisation of council tax support from 2013/14 was launched on 2 August 2011.
The Government published their response to the outcome of the consultation in
December 2011 alongside the Local Government Finance Bill which contained the legislative provisions for the establishment of the localised council tax support schemes.
2.8.2 On 8 March 2012 the Welfare Reform Act received Royal Assent. The Act legislates a significant change to the welfare system by implementing a number of reforms to the benefits and tax credits systems with the aim of making the system fairer and simpler by:
•
•
• creating the right incentives to get more people into work protecting the most vulnerable delivering fairness to those claiming benefit and to the taxpayer.
2.8.3 The main elements of the Act are:
• the introduction of Universal Credit to provide a new single payment that supports people of working age who are looking for work or on a low income and will help claimants and their families to become more independent,
• simplifying the current the benefits system by bringing together a range of working-age benefits (including Job Seeker’s Allowance, Income Support,
Child Tax Credits, and Working Tax Credits and Housing Benefit) into a single streamlined payment that will improve work incentives
• a stronger approach to reducing fraud and error with tougher penalties for the most serious offences
• a new claimant commitment showing clearly what is expected of claimants while giving protection to those with the greatest needs
• reforms to Disability Living Allowance, through the introduction of the
Personal Independence Payment to meet the needs of disabled people today
• creating a fairer approach to Housing Benefit to bring stability to the market and improve incentives to work
• driving out abuse of the Social Fund system by giving greater power to local authorities
• reforming Employment and Support Allowance to make the benefit fairer and to ensure that help goes to those with the greatest need
Financial   Strategy   2013/14   to   2015/16   October   2012
26
Page   9   of   26

• changes to support a new system of child support which puts the interest of the child first.
2.8.4 The main impact to NNDC is that housing benefit will no longer be administered by Local Authorities. There will be a long transition to the new system which is anticipated to be operational from 2017 although the intention is that new cases will be paid under the new system from October 2013.
3. FINANCIAL FORECAST UPDATE
3.1 The 2012/13 budget report as presented to Members in February 2012 identified a budget gap for 2013/14 of £266,508, increasing to £1,072,432 in 2014/15 and to
£1,232,022 in 2015/16. This was based on a number of assumptions about future levels of external grant, spending plans, delivery of savings and additional income and a zero increase in council tax for the same period.
3.2 As already mentioned within the report, from 2013/14 there are significant changes to the financing of Local Authorities, moving from a system of government support allocated via redistributed business rates and Revenue
Support Grant (RSG) to a system of localised business rates and RSG, with the new RSG largely being funded through the central share of business rates.
3.3 The principles of the new system include providing incentives for growth at a local level and a funding system that is simple and transparent. Year one (2013/14) of the new system will however involve the transition to the new scheme and will involve a degree of complexity.
3.4 The technical consultation on the Business Rates Retention scheme has now closed and following the decisions on the consultation the Provisional Local
Government Finance Settlement (LGFS) for 2013/14 will be consulted on in the autumn
2
, although the exact timing has not been confirmed. The provisional LGFS will depend upon the content of the Chancellor’s Autumn Statement (date confirmed as 5 December 2012), and therefore the Council could expect to receive provisional grant figures not long before Christmas.
3.5 Taking into account the significant changes to the funding regime and the later notification of grant funding does make the budget setting process for 2013/14 onwards even more challenging. However the financial projections have been updated to reflect known spending pressures and also revised the income forecasts.
3.6 Resource Projections – the original forecast budget gap had assumed grant reductions over the spending review period from 2011/12 to 2014/15 of 24.3%, reducing by 5.2% in 2013/14 and to a further 7.7% in 2014/15 (Table 3 below).
The original assumptions from the initial CSR2010 announcements were that grant reductions would be front loaded, i.e. in the first two years of the spending review period, i.e. 2011/12 and 2012/13. From 2010/11 to 2012/13 the Council has experienced grant reductions of £2 million, equating to nearly 25%
3
.
2
As   outlined   in   the   Consultation   document
3
2010/11   £8.227
million   to   2012/13   £6.225million
Financial   Strategy   2013/14   to   2015/16   October   2012
27
Page   10   of   26

2010/11
Actual
£’000
2011/12
Actual
£’000
2012/13
Actual
£’000
2013/14
Forecast
£’000
2014/15
Forecast
£’000
2015/16
Forecast
£’000
Total Government
Funding £000
8,227 7,202 6,225 5,903 5,451 5,451
Reduction £000 1,025 977 322 452 0
Reduction % 12.5
13.6
5.2
7.7
0.0
3.7 More recent discussions at a national level have suggested that the reductions in
2013/14 and 2014/15 could be similar to those already experienced in the first two years.
3.8 Modelling of the impact of the new funding regime has been carried out using forecasting tools produced by SPARSE and the LGA. Initial results suggest that the overall funding reductions for NNDC for 2013/14 compared to the current funding for 2012/13 could be in the region of 6% to 8%. This is based on a number of local and national assumptions built into the model and excludes funding from the New Homes Bonus. Although there is a caveat in that this is not the final allocation method as the criteria has not yet been finalised. It would however be prudent to update the funding forecast to reflect reductions above those previously forecast and also carry out sensitivities analysis around these reductions.
Table 4 – Grant Forecast (Updated)
Total Government Funding £000
Reduction £000
Reduction %
Additional to be factored into projection
2012/13
Actual
£’000
6,225
977
13.6
N/A
2013/14
Forecast
£’000
5,665
560
9.0
238
2014/15
Forecast
£’000
5,155
510
9.0
296
2015/16
Forecast
£’000
4,743
412
8.0
708
3.9 Sensitivity Analysis – the following illustrates the impact of a further 3% reduction in grant funding above the assumption in Table 4 above.
Table 5 - Sensitivity Analysis
Total Government Funding £000
Reduction £000
Reduction %
Additional to be factored into projection (compared to original)
N/A
2012/13
Actual
£’000
6,225
977
13.6
Additional compared to Table 4 N/A
2013/14
Forecast
2014/15
Forecast
2015/16
Forecast
£’000 £’000 £’000
5,478 4,821 4,291
747 657 530
12.0 12.0 11.0
425 630 1,160
187 334 452
Financial   Strategy   2013/14   to   2015/16   October   2012
28
Page   11   of   26

3.10 Current Savings Programme – As previously mentioned the current budget anticipated ongoing savings and additional income totalling £1.2 million will be delivered increasing to £1.5 million from 2013/14. As previously reported in the budget monitoring report to Members in September there are a number of service and corporate work streams that are not being delivered as previously anticipated when the 2012/13 budget was set. The service savings and income have been assumed to be back on target from 2013/14 onwards as the impact in the current financial year is largely due to a delay in the implementation of the saving. The revised position is shown in Table 6 along with the additional costs which need to be factored into the future projections, mainly in relation to the impact of the corporate work stream financial implications.
Table 6 - Updated Savings and
Income
2012/13
£
2013/14
£
2014/15
£
2015/16
£
862,147 923,277 920,501 920,501 Service Savings & Additional Income
Corporate Workstreams:
Management Restructure
Pay and Grading
Car Allowances
Total
Original Total
Movement compared to Original*
* Additional cost to factor into projections
250,000
77,000
0
1,272,542
83,395
250,000
62,000
245,000
1,517,723
37,446
250,000
62,000
245,000
1,189,147 1,480,277 1,477,501 1,477,501
1,510,947
33,446
250,000
62,000
245,000
1,510,947
33,446
3.11 The latest forecast of corporate savings in relation to the management restructure now reflects the recruitment to all Heads of Service. Final service structure below the Heads of Service are still to be finalised, however additional savings of approximately £100,000 (above the original savings target of £150,000) are now anticipated.
3.12 The implications from the pay and grading review assumed a saving from the implementation date of 1 April 2012 of an earlier version of the pay model.
Following the approval of an amended version of the pay scales model, a later implementation date of October 2012 and also the results of appeals the original level of savings will not be achieved. An earmarked reserve has been maintained to fund one-off costs associated with the review including the payment of arrears entitlement. The balance in the reserve at 1 April 2012 was £494,488 and it has been assumed that this will cover the one-off costs.
3.13 Investment Income – The current projections already take account of a fall in investment income over the next three years reflecting a reduction in the average balance available for investment along with a reduction in the average rate of interest.
3.14 Other Service Pressures and Savings – there are a number of service pressures and savings identified as part of the budget monitoring process that will have an impact on the current budget and future projections, the more significant items that are expected to have an ongoing impact include:
•
External Audit Fees – saving of £50,000 per annum from 2012/13 as a result to the changes from external auditing arrangements nationally following the demise of the audit commission.
Financial   Strategy   2013/14   to   2015/16   October   2012
29
Page   12   of   26

•
Administrative Buildings – business rates reduction following from a revaluation of the Cromer and Fakenham offices is anticipated to deliver ongoing savings of £25,000 per annum from 2014/15.
•
Sports halls and Leisure Complexes – the impact of a reduction in income from sports halls and contract inflation in respect of the leisure complexes is estimated to be £27,000 per annum.
•
IT – Savings from system changes in the year are anticipated to deliver an ongoing saving from licences of £20,000 per annum
•
Non Distributed Costs – ongoing impact of inflationary increases to pension payments in respect of past employees, previously this cost has been covered by natural turnover in the pension scheme, annual cost of approximately £10,000.
•
Pensions – Auto enrolment for the Local Government Pension scheme comes into operation from 2014. There will potentially be a cost implication associated with this if individuals that were previously not part of the pension scheme decided to join. Based on initial estimates the cost implication could be as much as £100k per annum, although not all may elect to remain in the scheme. It would still be prudent to factor in an estimate of the implications of this and at this time and therefore within the current projections £60,000 has now been included.
3.15 There are also other service developments which will potentially have a financial impact and although have not been reported as part of the budget monitoring process need to be considered within the future finance projections. These include:
•
Investment in pooled property funds – a report was presented to Cabinet in
October outlining the implications of investing in pooled property funds.
The return on these types of investments is expected to deliver a higher return than the current average of less than 1%. Although there is an increased volatility of these returns it would however be prudent to factor additional investment income into the future projections of £150,000. In order to smooth the impact of the volatility of these returns on the revenue account year on year the use of reserves would provide a mechanism to cushion the impact.
3.16 Annex Building – Office moves are planned for the lower ground floor that will include relocating of services from the annex building. The removal of the annex will deliver annual revenue savings of approximately £20,000 from premises related expenditure including business rates, energy and cleansing costs.
3.17 Council Tax - An announcement has recently been made on funding a council tax freeze for 2013/14. National funding of £450 million has been announced and
Councils who freeze their council tax next year will be eligible for a share of the funding over two years. Funding for the current year’s tax freeze grant totalled
£850 million and equated to £143,613 for NNDC. The DCLG are due to announce further details of the scheme along with indicative break downs of the grant. As a guide for NNDC this would equate to £50,000 grant payable in 2013/14 and
2014/15. In addition announcements on the level of council tax increases that would trigger a referendum have been made, these thresholds have been reduced from 3.5% to 2%. The forward projection currently assumes a tax freeze for the duration of the forecast, as a guide a 1% increase in the current band D equivalent will generate additional resources of £50,000 per annum (this does assume a lower Council Tax base due to the implications of the LCTS on the as outlined at 2.6.7).
Financial   Strategy   2013/14   to   2015/16   October   2012
30
Page   13   of   26

3.18 Planning Fees - In recent years the economic recession and downturn in the construction industry have greatly affected the level of income generated from planning application fees. In 2011/12 the Council generated planning fee income of £429,455, the lowest level of income since 2002/03. The budget (for 2011/12) estimated £525,000 leaving a shortfall of £95,545 at the year end. Part of this shortfall was due to the inclusion of £50,000 which related to the anticipated introduction of a locally set fee structure although this never took place. Instead in
July 2012 a ministerial statement was released which included notice that planning application fees will be increased by 15%. These changes were laid before parliament in July and are due for debate in both the House of Commons and the House of Lords in October. The exact date for the introduction of these increases is still unknown but it is expected to be late October/early November.
3.19 The Government has also subsequently announced a relaxation to planning regulations on a temporary basis (3 years) with the aim of stimulating the construction industry. The effect of this has not been fully quantified but the planning department do not consider that the negative effect to the Council’s budget will be material.
3.20 The base budget for fee income is currently £525,000 which as previously mentioned already includes £50,000 for fee increases, the proposed increase does provide a potential to increase the base budget, although this would need to allow for the additional staffing costs as agreed by Cabinet in September 2012.
Pending the outcome of the peer review on the service no additional costs/savings have been factored into the budget forecast at this time.
3.21 Table 7 below provides a summary of the revised position taking account of the factors previously identified. These are subject to a number of caveats in relation to the grant forecast.
Table 7 - Updated Financial Forecast
Forecast Gap (Jan/Feb 2012)
Revised Savings Plans (Table 6)
Interest (3.13)
Service Pressures/Savings (3.14)
Other Service Savings/Additional Income (3.15)
Revised Gap (before grant revisions)
Grant Projections (Revision) (Table 4)
Forecast Budget Gap
Council Tax Freeze Grant (Estimate)
Forecast Budget Gap (after Freeze Grant)
2013/14
£000
267
37
0
(55)
(170)
79
238
317
(50)
267
2014/15
£000
1,072
33
0
5
(170)
940
296
1,236
(50)
1,186
3.22 The financial forecast as outlined in table 7 is dependent on a number of key assumptions which are not directly within the control of the Council. The most significant are:
•
Employee inflation – currently no decision has been made on future pay awards. The Council is part of a national pay agreement for which there has been a pay freeze since April 2009. As a guide a 1% increase equates to approximately £90,000 per annum.
2015/16
£000
1,232
33
0
5
(170)
1,100
708
1,808
0
1,808
Financial   Strategy   2013/14   to   2015/16   October   2012
31
Page   14   of   26

•
External Funding – the uncertainty and sensitivity around the government grant has been outlined as a guide, compared to the current year a 1% reduction equates to approximately £60,000.
•
Inflation including contract inflation – inflation has been provided for within the projections for current service contract, fluctuations in the rate of 0.5% would equate to approximately £30,000 per annum.
•
Economic climate including bank base rate and investment interest rates.
•
Demand for services for which a fee or charge is made – car parking and planning fees are the council’s largest demand led income generating services are influenced by a number of external factors, including the weather and economy.
•
Council Tax – the current council tax base is 41,366, as previously mentioned this will change as a result of the LCTSS from 2013/14.
Currently the overall impact has been assumed to be negated by the grant funding for the new scheme. In addition within the collection fund (council tax account) any surplus or deficit is shared amount the major preceptors and billing authority, when setting the council tax the anticipated surplus/deficit is taken into account. No growth in the tax base has been assumed as this is likely to be offset by a reduced surplus/deficit position on the collection fund due to uncertainties around council tax collection and the introduction of the new LCTSS.
4. CAPITAL
4.1 The capital programme is updated on a regular basis as part of the budget monitoring reports to Cabinet. A copy of the current capital programme is included within the period 6 Budget Monitoring report included within the November
Cabinet Agenda.
4.2 The following table provides a summary of the current approved capital programme for 2012/13 plus the current forecasts for 2013/14 and 2014/15 along with a breakdown of relevant financing. NNDC funding includes capital receipts, contributions from revenue and reserves, external funding refers to grants and external contributions.
Financial   Strategy   2013/14   to   2015/16   October   2012
32
Page   15   of   26

Table 8 - Current Approved Capital Programme
2012/13
Updated
Budget
£
Jobs and the Local Economy
Housing and Infrastructure
785,857
5,403,565
2013/14
Forecast
2014/15
Forecast
£
-
1,655,000
£
-
-
Coast, Countryside and Built Heritage
Localism
Delivering the Vision
Total Capital Expenditure
Financing:
Non NNDC
NNDC
Total Capital Financing
7,408,313
561,837
1,026,325
15,185,897
6,431,888
8,754,009
15,185,897
5,100,000
-
-
6,755,000
5,443,000
1,312,000
6,755,000
443,000
-
-
443,000
443,000
-
443,000
4.3 The table above reflects the recent restructuring of the capital programme to align with the new corporate priorities as contained within the Corporate Plan 2012-
2015.
Capital Resources
4.4 The current capital programme is funded from the following sources of finance:
•
Capital Receipts – generated from asset disposals and preserved tight to buy (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
•
Earmarked reserves for example the capital projects reserves.
4.5 The VAT shelter and Preserved Right to Buy (PRTB) receipts are two sources of funding that relate to the transfer of the housing stock to Victory Housing that took place in 2006. The VAT shelter arrangement is a procedure agreed by HM
Revenues and Customs and the DCLG to ensure no overall impact on taxation post transfer. If the Council retained the stock and carried out the maintenance works on the properties the VAT would have been recovered. The Housing Trust are unable to recover VAT, but the VAT shelter arrangement allows VAT to be recovered on qualifying works (which totalled approximately £50million) and the
VAT on the element that is recovered is shared between NNDC and the Trust.
The amount received by the Council under this sharing arrangement is limited to a value, and based on the current forecast is expected to end in 2014/15. This is when the total value of qualifying works as agreed as part of the stock transfer in
2006 will have been completed.
4.6 Under the PRTB arrangement the Council receives a share of the capital receipt generated from a right to buy sale.
4.7 Following the housing transfer the receipts generated from the VAT shelter and
PRTB’s have been used for the financing of the capital programme. Since
2008/09 the VAT receipts has been payable as a revenue receipt and has been transferred to the Capital Projects Reserve. Payment as a revenue receipt provides greater flexibility in terms of funding spend, revenue receipts can be
Financial   Strategy   2013/14   to   2015/16   October   2012
33
Page   16   of   26

used to fund capital, however capital receipts cannot be used to fund revenue expenditure.
4.8 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.
4.9 The housing capital programme has been historically financed from government grant (mainly in relation to the disabled facility grants scheme), capital receipts
(both retained from previous asset disposals and receipts generated from the
PRTB’s) and VAT shelter receipts. Both of these sources of funding are diminishing in terms of the level of receipts generated annually and by 2014/15 the VAT shelter receipts will come to an end.
4.10 After taking into account the planned spend within the current capital programme for the period 2012/13 to 2014/15 and the anticipated resources, i.e. new capital resources
4
for the same period there is currently an unallocated balance of just under £3 million. Although this does include £1.3 million within the capital projects reserve which is a revenue or capital resource. This is illustrated in the following table.
Table 9 - Capital Resources
Capital
Receipts
Capital
Projects
£ £ £
Balance at 31/3/12
New Receipts 2012/13
Capital Financing 2012/13
New Receipts 2013/14
Capital Financing 2013/14
New Receipts 2014/15
Capital Financing 2014/15
Estimated Balance at 31/3/15
9,062,451 1,819,469 10,881,920
406,000 429,180 835,180
(7,806,568) (932,441) (8,739,009)
390,000 413,340 803,340
(912,000) (400,000) (1,312,000)
390,000 256,709
0 (256,709)
646,709
(256,709)
1,529,883 1,329,548 2,859,431
4.11 The housing strategy (2012/15) has been presented to Members, the following is an extract from the strategy in relation to its Local Investment Strategy.
Action Outcome
We will seek to maximise reinvestment in the delivery of affordable housing in the
Use of investment income and capital receipts by Registered Providers to deliver affordable
District by Registered Providers using housing investment income and capital receipts e.g.
4
New   Capital   Resources   –   Asset   disposals,   preserved   right   to   buy   and   VAT   shelter   receipts.
Financial   Strategy   2013/14   to   2015/16   October   2012
34
Page   17   of   26

Action Outcome from the use of Affordable Rent tenancies, disposals, Right to Buy receipts
We will explore opportunities to invest in the delivery of affordable housing in the
District e.g. through the provision of loan finance to Registered Providers
Consideration of legal and financial implications and risks of investing in the provision of affordable housing.
4.12 Currently delivery of affordable housing through the capital programme is by providing grants to housing associations. This is treated as one-off capital expenditure in that once the grant has been paid, it’s gone, i.e. there is no recycling of funding back to the authority. At a time when new capital resources are diminishing alternative options to deliver affordable housing need to be considered, including the provision of loans as an alternative to the payment of grant.
4.13 Under the current Regulations
5
, the loan would be capital expenditure, assuming the loan was for a purpose which, if the Council had incurred the expenditure directly, it would have been treated it as capital expenditure.
4.14 The loan would need to be financed using capital receipts (or other capital financing resources). If sufficient receipts are not available, the expenditure on the loan would cause the Council’s Capital Financing Requirement to increase, and it would be necessary to make an MRP (Minimum Revenue Provision) charge to the Revenue Account for the repayment of the loan. Repayment of the loan would generate a capital receipt.
4.15 Loans to Registered Providers are not covered by the Councils current Treasury
Strategy and this would need to be amended. The loans would not, for example, meet the minimum credit rating requirement for an approved counterparty, which is one of the factors used to judge the security of funds invested. Interest earned on the loans would be a revenue income receipt.
4.16 The opportunities for the provision of loans in this way are being considered by
Finance Officers along with the Council’s Treasury advisors. In principle it is moving from a system of providing grants from a fixed sum of available capital resource to a system where resources can be reused through a loan mechanism.
4.17 Alternative methods of delivering affordable housing and increasing the return on capital resources needs to be explored, moving from a system where capital receipts (or capital resources) are being used once to fund grants, to a system where capital resources can be recycled through the provision of loans where by future capital receipts would be generated for the authority. It is recognised that there is a risk of default and the loan may not be repaid, but this must be weighed against the payment of a non-repayable grant.
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
5
Regulation   25   (1)   (d)   of   the   Local   Authorities   (Capital   Finance   and   Accounting)   (England)   Regulations   2003
(SI   2003   No.
3146)
Financial   Strategy   2013/14   to   2015/16   October   2012
35
Page   18   of   26

holds. This is informed by the Policy Framework for Reserves which is presented alongside the budget (annually)
6
.
5.2 The Council holds a number of ‘useable’ reserves both for revenue and capital purposes and generally fall within one of the following three categories, each as discussed in the following sections:
•
General
•
Earmarked
•
Capital Receipts Reserve
5.3 The is held for two main purposes:
•
To provide a working balance to help cushion the impact of uneven cash flows and avoid temporary borrowing
•
a contingency to help cushion the impact of unexpected events or emergencies
5.4 Alongside setting the budget each year, the adequacy of reserves needs to consider the optimum level of general reserve that an authority should hold. The optimum level of the general reserve will take into account a risk assessment of the budget and the context within which it has been prepared taking into account a number of factors including:
•
the level of savings that have been factored into the budget and the risk they will not be delivered as anticipated;
•
sensitivity to pay and price inflation;
•
sensitivity to fluctuations in interest rate;
•
potential legal claims where earmarked funds have not been allocated if applicable;
•
level of earmarked reserves held;
•
a level of reserve that is within a 5% to 10% of net expenditure
5.5 The current level for NNDC is a minimum of £950,000 in the general reserve. The level of the general reserve from 2013/14 will be reviewed as part of the budget process over the coming months. Bearing in mind the uncertainty of the new funding regime that has been discussed earlier in this report, there could be an argument for at least maintaining the general reserve at its current recommended level or in fact increasing the recommended minimum balance at least in the short term to mitigate the impact in year one of the new funding regime.
5.6 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 major reorganisations. 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 separate budget exists.
5.7 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.
6
Full   Council   22   February   2012,   Budget   and   Council   Tax   Report   2012/13
Financial   Strategy   2013/14   to   2015/16   October
36
2012    Page   19   of   26

5.8 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.
5.9 The 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 capital programme. The balance of capital receipts at 31 March 2012 was £9.063 million.
5.10 Details of the current capital programme that are being financed from capital receipts were included in section 4 of the report which highlights the reducing available balance within this reserve over the next three years.
5.11 An updated reserves statement (general and earmarked) is included at Appendix
C. 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:
•
New Homes Bonus - The New Homes Bonus was a new scheme announced as part of the Comprehensive Spending Review and is designed to incentivise and reward councils and communities who wish to build new homes in their area. The reserve includes the allocation for the
2012/13 year. As mentioned earlier a policy will be developed for use of the New Homes Bonus.
•
Benefits - The Benefits reserve was established to mitigate any claw back by the DWP following audited subsidy determinations. The subsidy claim for 2011/12 is still to be audited. The level of this reserve has been maintained as the authority has introduced a new Revenues and Benefits computer system as part of its partnership with Kings Lynn and West
Norfolk Borough Council. The reserve will be used to offset any loss of subsidy due to problems and delays in processing during the implementation stage.
•
LSVT - This reserve was established following the Large Scale Voluntary
Transfer of the Councils Housing Stock to Victory Housing in 2006 when the council provided the trust with a number of warranties, guarantees and indemnities.
•
Big Society Fund - This reserve has been established as part of the councils approach to Localism and is being funded from 50% of County’s share of the discretionary element (40%) of second homes council tax charge which is returned to the district to be allocated to communities that identify where they will make a difference to the social wellbeing of the area via the Big Society Fund. Future contributions to and from this reserve are dependent upon the sharing arrangement with the County
Council and will be determined annually as part of setting the budget.
Whilst the balance is included within the Council’s accounts, it is held for the purpose of the Big Society Fund and Localism.
5.12 In the short to medium term there is a need to critically review the minimum balance held in the General Reserve to reflect the uncertainty around a number of current and impending issues, namely:
Financial   Strategy   2013/14   to   2015/16   October   2012
37
Page   20   of   26

•
Uncertainty of the new funding regime both for the first year (2013/14) and the ongoing impact in that there will almost certainly be variances between the budgeted level of external support (government grant and retained business rates) and the actual year end position;
•
The new system of localised council tax support.
•
Investment in pooled property funds and establishing a reserve or an element of the general reserve to even out the fluctuations in interest received year on year, and volatility in the value of the investment.
5.13 All reserves (general and earmarked) will be reviewed over the coming months as part of setting the detailed budgets for 2013/14 with a view that where commitments have not been identified funds or reserve balances are no longer required these are re-allocated to specific reserves to address the requirements identified at 5.12.
6 FINANCIAL STRATEGY
6.1 Consolidating the detailed financial pressures discussed above the financial strategy sets out how the Council wishes to manage its finances over the medium term to ensure it supports the achievement of the Council’s Corporate Plan objectives.
6.2 The base position for the strategy is the current 2012/13 base budget set last
February against the backdrop of the national economic position and the pressures being experienced in the delivery of local services.
6.3 Whilst the funding situation for the forward year (2013/14) from Central
Government will not be confirmed until December 2012, the Council must ensure that both short term measures and medium/long term measures are in place to secure the overall financial viability of the Council.
6.4 The strategy sets in place a set of initiatives that will allow secure business planning by recognising the external financial landscape both in terms of Central
Government financial support and the continuing pressures on service delivery.
6.5 In the short term Cabinet has instructed managers to review their base budgets and to identify any savings or additional income streams that could be included in the 2013/14 base budget to include:
•
No impact or an acceptable level of impact on service delivery.
•
Income that can be derived without a significant change in policy.
•
Savings that have previously been considered where there is some impact on service provision.
•
A review of the levels of working and earmarked reserves.
6.6 This work will secure a balanced position for the 2013/14 budget and the Cabinet will then focus its attention on delivering the work streams that support the corporate plan and for which work is already underway and being monitored through working parties or working boards.
6.7 There are two distinct aspects to this work which support the strategic direction of the Council:
•
Creating new revenue streams by increasing the Council’s tax base for housing and business rates
Financial   Strategy   2013/14   to   2015/16   October   2012
38
Page   21   of   26

•
Efficiency
Creating new revenue streams by increasing the Council’s tax base for housing and business rates
6.8 The shift in Central Government support for local authorities has moved to incentivise them in developing stronger income streams from their property bases.
Growth in both domestic and non domestic properties will lead to increased levels of funding which directly rewards the Council.
6.9 A growth in both of these areas will support the corporate priorities and position the authority to take advantage of the new funding regime being introduced from
April 2013 as well as maximise existing funding streams.
6.10 No assumptions have been made in the financial forecast for the following revenue streams.
The New Homes Bonus (NHB)
6.11 This payment is based on a formula related to the number of new homes completed or empty properties brought back into use in a twelve month period ending in October each year. As well as the additional council tax such dwellings generate the Council will also receive a sum of money equivalent to six years council tax at the average national rate for a Band D property.
6.12 Planning permissions granted and turned into completed developments support the corporate priority for housing and infrastructure in respect of “increasing the number of new homes built within the District and reducing the number of empty properties”.
6.13 As an example fifty new houses would generate an additional £57,800 per annum for six years (totalling £346,800) in new homes bonus and £6,940 per annum in council tax income (based on the current band D equivalent of £138.87).
6.14 In 2012/13 the Council will receive an estimated £261k for the year which together with £350k for 2011/12 is a total of £611k.
6.15 It is important to recognise that the New Homes Bonus going forward is not “new money” from the Central Government but rather a top slice of the total financial support available to local government. As such it reflects the move to directly reward planning authorities and stimulate the domestic property market.
Business rates
6.16 The detailed report, above, examines the changes in this area. Embracing these changes will generate an increased in the total rateable value of the District from which the Council will derive an increased share of the associated income to support its expenditure plans.
6.17 The Council has as its first corporate priority a commitment to increase the number of new businesses and support the growth and expansion of existing businesses. By delivering on this commitment it is anticipated that this will result in an increase in the rateable value of the District.
Financial   Strategy   2013/14   to   2015/16   October   2012
39
Page   22   of   26

6.18 In the past three years there has been a slow but significant increase in the overall rateable value across the District. By making a positive commitment through the current Corporate Plan to assist business to grow it is anticipated that such an increase will continue over the medium term. Such growth will provide the
Council with additional revenue resources the extent of which will become clearer as the new arrangements announced in the Business Rates Retention Scheme develop.
Community Infrastructure Levy (CIL)
6.19 The Community Infrastructure Levy allows local authorities to raise funds from developers who are undertaking new building projects in their area. The funds so raised can be used to pay for a wide range of infrastructure that will be needed as a result of the development.
6.20 The CIL guidance includes a wide definition of infrastructure which can include transport schemes, flood defences, schools, hospitals and other health and social care facilities, parks, green spaces and leisure centres.
Income from Planning Fees
6.21 Recent budgets for planning fee income have been set against the proposal that the Government intended to decentralise responsibility for planning application fees to local authorities. However, in July 2012 a separate announcement by the
Minister for Decentralisation and Cities indicated that planning fees would increase by 15%.
6.22 Regulations have been laid before Parliament and are due to be debated in
October 2012. No date for the increase to come into effect has been announced.
6.23 It remains a possibility that there may be future flexibility in setting planning fees locally, in order that this service is not subsidised by the general tax payer.
Efficiency savings
6.24 Whilst it is important to focus on an agenda that will generate income from growth in our economy there is, none the less, a continuing need for the Council to reduce overheads and provide services more efficiently.
6.25 There are seven work streams being developed by Officers to meet the objectives set by the Cabinet and the Council. These initiatives are part of the Corporate
Plan in “Delivering the Vision” by looking for “year on year improvements in efficiency”. They are as follows:
Management Restructuring
6.26 The new Corporate Leadership Team and Heads of Service structure is now complete with savings of £250k to be factored in the budget from April 2013.
These have been included within the updated financial forecast.
Shared Services
6.27 The Revenues and Benefits project has already delivered on-going savings through the procurement of a new IT system. However, due to operational issues
Financial   Strategy   2013/14   to   2015/16   October   2012
40
Page   23   of   26

regarding the hosting of the software there will be delays in moving towards a shared management structure which had originally been anticipated for 2013.
6.28 No savings have been included within the financial forecast from this piece of work due to the business case being reviewed. However, it is anticipated at least
£100k would be achieved from 2014/15 compared to current service expenditure.
6.29 In addition the Council continues to review its building control function and will consider further options for partnership structures within Norfolk.
6.30 At the same time an innovative approach to selling services is being developed by the legal team through establishing a cost sharing group which would allow services to be competitively tendered to local organisations.
6.31 More detailed papers will follow as the budget for 2013/14 and 2014/15 are prepared.
Peer Review Planning Service
6.32 A peer review is designed to help a service assess its current achievements and its capacity to change and continue to improve. To this end an initial meeting has been held with representatives from the Local Government Association and members of the Cabinet to inform the terms of reference for the review of the planning service. This will include reviewing the allocation of resources, service performance and the use of technology.
Procurement
6.33 Following on from a Cabinet paper in February 2012 the Council is a partner in a
County-wide tendering process to handle dry recyclable waste collected by the
Council. The tendering process is due to be completed this financial year and it is anticipated that an improved income stream will be available from 2014/15.The current contract expires in March 2014
.
6.34 Officers have also started to scope a new sports and leisure contract which would be operable from 2014. The work could embrace all sports facilities including those which are currently outside the current contract. The overall budget here is in excess of £816k and it is anticipated that savings in this service area will result from this work.
Customer Services/Web Strategy
6.35 As the new management structures begin to become established Officers are reviewing the approach to customer services. The Website is by far the most cost effective way of transacting business and in developing an access strategy it will become the focus of many of the customer transactions in the future.
6.36 This will require maximising the functionality of the website to provide a greater level of integration across all service areas. Following this investment the next stage is to migrate customers away from the more expensive traditional channels over to the web by enabling and promoting self-service on the website. If customers are empowered to manage their own enquiries, and are able to access services online, the need of human intervention for processing and service delivery is reduced and this is where considerable savings can be made.
Financial   Strategy   2013/14   to   2015/16   October   2012
41
Page   24   of   26

Administrative Buildings
6.37 The overall cost of the Council’s current administration centres is £598k per annum (including capital charges and other recharges). As noted in the main body of the financial forecast there is on-going work to remove the annex to the main offices in Cromer with commensurate savings to the Council.
6.38 At the same time the review will also examine the potential use of the existing facilities with a view to economising on space and potentially creating a rentable floor space that can generate income and reduce further the administrative overhead that the building imposes.
Risks
6.39 The financial strategy is based on a number of assumptions contained in the main body of the report which include:
Inflation rates
•
Interest
•
The level of Government financial support
•
The level of financial pressures facing the Council
6.40 However, although the Council faces risks from the assumptions and uncertainties outlined above, these have been mitigated by:
•
Adopting a prudent approach to financial forecasting which involves obtaining information from external professional sources
•
Continuous monitoring and review of the key factors which involves regular reports to Members on major issues.
•
Risk issues on both expenditure and income levels which have been highlighted in regular budget monitoring reports to Cabinet
Conclusion
6.41 The overall planning framework ensures that the Council’s Financial Strategy is a corporate document. Fundamental to the effectiveness of the planning framework is the need to ensure that the Financial Strategy adopts a corporate approach to revenue and capital spending that is consistent with the Council’s corporate objectives and the Council’s key planning documents.
6.42 In preparation for the anticipated reductions in Central Government support from
2014/15 onwards the Cabinet will review all service provision across the Council and include public consultation to inform future decision making.
Financial   Strategy   2013/14   to   2015/16   October   2012
42
Page   25   of   26

Appendices
A Business Rates Retention Scheme – Illustration
B Savings – Current Programme
Recommendations
It is recommended that Members note:
1) the current financial forecast for the period 2013/14 to 2015/16;
2) the current capital programme and capital funding forecasts;
3) the revised reserves statement as included at Appendix C to the report.
Financial   Strategy   2013/14   to   2015/16   October   2012
43
Page   26   of   26

Appendix A
50% local share
Local share divided between authoriries according to proportionate shares
After proportionale shares, rates are shared between major precepting authorities as follows:
Estimated Business Rates Aggregate
(National Business Rates Forecast for 2013/14)
50% central share
Central share goes to central government
The difference between the local share and the 2013/14 control total comes from the central share as RSG
NNDC
80 %
Norfolk
County
Council 20%
44

Appendix B
Council Tax Reforms
Class of
Dwelling
Second Homes
(Class B
Dwellings)
Empty Homes
Premium
Uninhabitable
Dwellings
(Class A
Exemption)
Vacant Dwellings
(Class C
Exemption)
Current Legislation
Billing Authorities can determine a discount between 10% and
50%. NNDC awards a 10% discount.
Billing Authorities can award an exemption
(100% discount) for a maximum of 12 months.
Billing Authorities can award an exemption
(100% discount) for a maximum of 6 months.
Billing Authorities can charge 100% of the full occupied charge.
Proposed Legislation and options to arrive at Potential
Additional Income
Billing Authorities will be able to determine a discount between 0% and 50%. Option – retain 5% discount.
Billing Authorities can determine a discount between 0% and 100% for a maximum of 12 months.
Option - award a 50% discount.
Billing Authorities can determine a discount between 0% and 100% for a maximum of 6 months.
Option - award 100% discount for
3 months.
Billing Authorities can charge
150% of the full occupied charge for properties empty for 2 years or more. The recommendation is for this to be applied.
Potential
Additional
Annual Income
(NNDC Share)
Issues to Consider
£23,164 Retaining a 5% discount would provide an incentive for the owner to inform the Council the property is a second home.
£7,330
£15,831 To administer this change would be resource intensive for the period of 3 months.
£29,579 Current consultation if implemented would reduce the number of properties where a premium is chargeable (and therefore reduce the additional income). Administering the
‘genuinely on the market for sale or letting’ would need to be considered and also what constitutes the ‘genuinely’ element.
45

Reserves Statement - 2012/13 Onwards
Reserve Purpose and Use of Reserve
Balance at
1/4/2012
Updated
Budgeted
2012/13
Movement
Appendix C
Balance at
1/4/2013
Budgeted
2013/14
Movement
Balance at
1/4/2014
Budgeted
2014/15
Movement
Balance at
1/4/2015
Budgeted
2015/16
Movement
Balance at
1/4/2016
£ £ £ £ £ £ £ £ £
General Fund -
General Reserve
A working balance and contingency, current recommended balance is £950,000. This also includes the rellocation of a number of previously earmarked reserves to be used over the next three years.
2,049,920
Earmarked Reserves:
Capital Projects
To provide funding for capital developments and purchase of major assets. This includes the VAT Shelter Receipt.
1,819,469
(230,000) 1,819,920 (200,000) 1,619,920 (100,000) 1,519,920
(527,441) 1,292,028 13,340 1,305,368
0
0 1,305,368
0 1,519,920
0
0 1,305,368
Asset Management
To support improvements to our existing assets as identified through the Asset Management Plan.
Benefits
Big Society Fund
Carbon
Management
Coast Protection
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.
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. Annual contributions to and from the reserve will be determined as part of the budget process.
To fund revenue invest to save initiatives and projects within the Carbon Management Plan.
To support the ongoing coast protection maintenance programme.
26,669
640,242
0
21,180
208,000
(15,000)
(30,000)
428,491
0
(181,000)
11,669
610,242
428,491
21,180
27,000
0 11,669
0 610,242
0 428,491
0 21,180
0 27,000
0
0
0
0
0
11,669
610,242
428,491
21,180
27,000
0
0
0
0
0
11,669
610,242
428,491
21,180
27,000
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.
32,000 (15,000) 17,000 0 17,000 0 17,000 0 17,000
46

Reserves Statement - 2012/13 Onwards
Reserve Purpose and Use of Reserve
Balance at
1/4/2012
Updated
Budgeted
2012/13
Movement
Appendix C
Balance at
1/4/2013
Budgeted
2013/14
Movement
Balance at
1/4/2014
Budgeted
2014/15
Movement
Balance at
1/4/2015
Budgeted
2015/16
Movement
Balance at
1/4/2016
£ £ £ £ £ £ £ £ £
55,072 (26,233) 28,839 0 28,839 0 28,839 0 28,839
Economic
Development and
Tourism
Earmarked from previous underspends on Economic
Development and Tourism Budgets along with funding earmarked for Learning for Everyone.
Election Reserve
Established to meet costs associated with district council elections, to smooth the impact between financial years.
Environmental
Policy
Housing
Earmarking of a previous underspend to meet future costs of environmental policy initiatives.
Previously earmarked for stock condition survey and housing needs assessment.
Investment Income:
European
Investment bank
(EIB) Premium
The council disposed of its EIB bonds for a gain in 2011/12.
This reserve is required for accounting purposes to transfer the part of the gain that relates to 2012/13.
Land Charges To Mitigate the impact of potential income reductions.
1,500
20,090
242,000
28,500
(20,090)
0
116,068 (116,068)
50,356 0
30,000
0
242,000
0
50,356
30,000 60,000
0
0
0
0
0
242,000
0
50,356
30,000
0
0
90,000
0
242,000
0
50,356
(90,000)
0
0
0
0
0
242,000
0
50,356
Legal & Democratic
Services
One off funding for Compulsory Purchase Order (CPO) work and to undertake a review of the Constitution.
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding commitments and liabilities.
46,599
671,958
LSVT Reserve
To meet the cost of successful warranty claims not covered by bonds and insurance following the housing stock transfer.
435,000
New Homes Bonus
Established for supporting communities with future growth and development.
0
47
0
(590,230)
0
611,678
46,599
81,728
435,000
611,678
0
0
0
611,678
46,599
81,728
435,000
1,223,356
0
0
0
611,678
46,599
81,728
435,000
1,835,034
0
0
0
611,678
46,599
81,728
435,000
2,446,712

Reserves Statement - 2012/13 Onwards
Reserve Purpose and Use of Reserve
Organisational
Development
To provide funding for organisation development to create capacity within the organisation and address anomalies within the pay structure.
Partnership Budgets
This reflects the balance of Funding as at 31/03/12 on the
Revenues and Benefits Partnership project. This will be utilised in 2012/13
Pathfinder To help Coastal Communities adapt to coastal changes.
Planning - Revenue
Previously unspent HPDG for use on related revenue projects, timing to be confirmed.
Regeneration
Projects
Restructuring &
Invest to Save
Proposals
Carry forward of underspends relating to
Regeneration Projects.
To fund one-off redundancy and pension strain costs and invest to save initiatives. Transfers from this reserve will be allocated against savings proposals as business cases are approved. Timing of the use of this resrve will depend on when business cases are approved.
Sports Hall
Equipment & Sports
Facilities
To support renewals for sports hall equipment. Amount transferred in the year represents over or under achievement of income target.
The pier
To be used to support the costs of works to Cromer pier.
Whistle blowing Commissioning investigation activity as required.
Balance at
1/4/2012
Updated
Budgeted
2012/13
Movement
Appendix C
Balance at
1/4/2013
Budgeted
2013/14
Movement
Balance at
1/4/2014
Budgeted
2014/15
Movement
Balance at
1/4/2015
Budgeted
2015/16
Movement
Balance at
1/4/2016
£ £ £ £ £ £ £ £ £
494,488
196,036
404,000
110,835
37,837
468,216
23,339
15,000
10,000
(494,488)
(196,036)
0
0
0
0
(281,107) 122,893 (38,371)
(66,500) 44,335 (18,000)
0 37,837
9,872 478,088
0
0
0
23,339
15,000
10,000
0
84,522 (19,020)
26,335 0
0 478,088
0
0
0
0
0
37,837
23,339
15,000
10,000
0
0
0
0
0
0
0
65,502 (65,502)
26,335 0
37,837
478,088
23,339
15,000
10,000
0
0
0
0
0
0
0
26,335
37,837
478,088
23,339
15,000
10,000
Total Reserves 8,195,874 (1,710,652) 6,485,222 398,647 6,883,869 522,658 7,406,527 456,176 7,862,703
48

Agenda Item No______11______
HALF YEARLY TREASURY MANAGEMENT REPORT FOR 2012/13
Summary:
Options considered:
Conclusions:
This report provides information on the Treasury
Management activities undertaken in the first six months of 2012/13.
It is a requirement of the Chartered Institute of Public
Finance & Accountancy’s (CIPFA) Code of Practice for
Treasury Management that this mid-year review is prepared and presented to Full Council.
That the treasury activities for the year have been carried out in accordance with the CIPFA Code and the
Council’s Treasury Strategy.
Recommendations: That the Council be asked to RESOLVE that the Half
Yearly Treasury Management Report for 2012/13 be approved.
Reasons for
Recommendations:
The recommendation is being made in compliance with the CIPFA Code.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Arlingclose Report Template – Semi-Annual Treasury Report 2012/13
Cabinet Member(s)
Cllr Wyndham
Northam
Ward(s) affected
All
Contact Officer, telephone number and email:
1. Introduction
1.1 The Chartered Institute of Public Finance and Accountancy (CIPFA) defines treasury management as “the management of the Council’s investments and cash flows, its banking and its capital market transactions; the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks”.
1.2 The Council’s treasury management activities are undertaken in accordance with the CIPFA Code of Practice on Treasury Management 2009, which includes a requirement to prepare a strategy for the investment activities in the forthcoming financial year. The Code also recommends that Members are informed of treasury management activities at least twice a year. This
49

report therefore ensures that the Council is following Best Practice in accordance with CIPFA’s recommendations.
2.1 The UK economy contracted by 0.3% in the first calendar quarter of 2012 and by 0.5% in second, reflecting the difficult economic conditions faced by businesses and consumers, both domestically and globally. Wage growth remained subdued and was, for much of the period, outstripped by inflation.
Much of the fall in the second quarter could probably be attributed to the impact of the additional bank holiday for the Diamond Jubilee, and may be recovered in the third quarter.
2.2 Inflation slowly began to fall during the period. In May, annual Consumer
Price inflation (CPI) fell below 3% for the first time in two and half years. In
June it fell to 2.4%, the lowest level since November 2009, increasing marginally to 2.5% in August. Recent rises in commodity prices are a concern for inflation, although increases in oil and food prices (due mainly to poor weather-related yields) were well below the large increases experienced in
2010-11.
2.3 The lack of growth and fall in inflation prompted the Bank of England to sanction a further £50 billion of asset purchases or Quantitative Easing (QE) in July, taking the total since the programme began to £375 billion.
2.4 The possibility of a cut in base rate from the current level of 0.5% was discussed at the Bank’s Monetary Policy Committee meetings in June and
July. However reference to it was subsequently dropped, suggesting that this policy option will not be used in the immediate future. The government’s
Funding for Lending (FLS) initiative, intended to lower banks’ funding costs, commenced in August. The Bank of England will assess its effects in easing the flow of credit to business and households before committing to further policy action.
2.5 In Greece, the formation of an alliance of pro-euro parties after a second round of parliamentary elections prevented an immediate and disorderly exit from the Euro. Unfortunately problems in the Eurozone continued as Italian and Spanish government borrowing costs rose sharply, and Spain was also forced to officially seek a bailout for its domestic banks. The European Central
Bank (ECB) responded with the announcement in September of its Outright
Monetary Transactions (OMT) facility which allows the ECB to buy unlimited amounts of 1-3 year sovereign bonds. The sovereign must first asks for such assistance, and adhere to strict conditions attached to such purchases.
2.6 Money market rates fell over the six month period by between 0.2% and 0.6% for 1-12 month maturities.
3.1 The Council has remained debt-free. Capital expenditure has been financed by usable capital receipts, government grants and revenue contributions.
This has lowered the overall treasury risk by reducing the level of investments and avoiding external debt, and continues to be the most cost effective way of funding capital expenditure.
4.1 The Guidance on Local Government Investments gives priority to security and liquidity and the Council’s aim is to achieve an interest return commensurate with these principles.
50

4.2 The table below gives Members an appreciation of the investment activity undertaken in the first six months of 2012/13, showing the position at the start and end of the period, together with the transactions during the period. The percentages show the investment return achieved for each investment category.
Balance
01/4/2012
£000s
Invested
£000s
Matured
£000s
Balance
30/9/2012
£000s
%
Internally Managed
(Term Deposits)
19,110 55,335 (50,785) 23,660 0.90
Bonds issued by multilateral development banks
(Nominal Value)
1,000
Total 20,110
0 0 1,000 0.82
55,335 (50,785)
4.3 Security of the capital sum remained the Council’s main investment objective.
This was maintained by following the Council’s investment counterparty policy set out in its Treasury Management Strategy Statement for 2012/13. New investments were made with the following institutions: a. Deposits with UK Banks and Building Societies systemically important to the UK Banking System and which have minimum long-term ratings of ‘A-’ or equivalent from Fitch, Moody’s and S&P rating agencies. b. AAA-rated Stable Net Asset value Money Market Funds c. The Debt Management Office
4.4 Counterparty credit quality was assessed and monitored with reference to
Credit Ratings (the Council’s minimum long-term counterparty rating of A- (or equivalent) across the rating agencies Fitch, S&P and Moody’s); credit default swaps; GDP of the country in which the institution operates; the country’s net debt as a percentage of GDP; sovereign support mechanisms and potential support from a well-resourced parent institution; share price.
4.5 The base budget for 2012/13 anticipates that £269,900 will be earned in interest from an average balance of £26m at 1.03%. In the first 6 months of the financial year the average amount invested was £25m at an average rate of interest of 0.9%, resulting in an overall interest return of £112,720.
5.1 The credit rating agency Moody’s downgraded a number of banks during the period which are on the Council’s lending list. However, none of the long-term
51

ratings were downgraded to below the Council’s minimum A- (or equivalent) credit rating threshold.
5.2 The table below and charts at Appendix D show that, compared to the
Arlingclose client base, the Council’s return on its investments on a value weighted basis was marginally below the average, and on a time weighted basis an average return was achieved.
Date Value Value
Weighted
Average –
Weighted
Average –
Credit Risk
Score
Credit
Rating
Time
Weighted
Average –
Credit Risk
Score
Time
Weighted
Average –
Credit
Rating
Scoring:
Value weighted average reflects the credit quality of investments according to the size of the deposit
Time weighted average reflects the credit quality of investments according to the maturity of the deposit
AAA = highest credit quality = 1
D = lowest credit quality = 15
Aim = A- or higher credit rating, with a score of 7 or lower, to reflect current investment approach with main focus on security
5.3 The duration for investment counterparties (i.e. the maximum time a new deposit should be made) was shortened in May, reflecting a deterioration in credit conditions. The Council extended them again in late July on advice of its treasury advisors as a result of their monitoring economic and political developments in the UK, Europe and globally. The various measures used to assess the creditworthiness of financial institutions had shown continued signs of stabilisation, and in some cases, considerable improvement.
6. Compliance with Prudential Indicators
6.1 The Council can confirm that it has complied with its Prudential Indicators in the first six months of 2012/13. Details for both treasury management and other indicators can be found in Appendix E
7. Conclusion
8.
In compliance with the requirements of the CIPFA Code of Practice this report provides members with a summary of the treasury management activity during the first 6 months of 2012/13. As indicated in this report none of the
Prudential Indicators have been breached and a prudent approach has been taking in relation to investment activity with priority being given to security and liquidity over yield.
Implications and Risks
52

8.1 The treasury management activities in the first 6 months of 2012/13 have been undertaken in accordance with the Treasury Management Strategy
Statement and Investment Strategy 2012/13 to 2014/15.
9. Financial Implications and Risks
9.1 The financial implications and risks of treasury decisions have been considered in the light of advice from the Council’s treasury advisor and this report confirms that the Council considers that security and liquidity are the primary objectives of its prudent investment policy.
10. Sustainability
10.1 This report does not raise any issues relating to Sustainability
11. Equality and Diversity
11.1 This report does not raise any issues relating to Equality and Diversity.
12. Section 17 Crime and Disorder considerations
12.1 This report does not raise any issues relating to Crime and Disorder considerations.
53

Credit Score Analysis
Long-Term
Credit Rating Score
AAA 1
AA+ 2
AA 3
AA- 4
A+ 5
A 6
A- 7
BBB+ 8
BBB 9
BBB- 10
Not rated 11
BB 12
CCC 13
C 14
D 15
Appendix D
54

55

Appendix E
Prudential Indicator Monitoring Period 6 (September) 2012/13
The 2012/13 prudential indicators were calculated based on the Council’s existing commitments, current plans for revenue and capital as recommended in the 2012/13 budget report to 6 February 2012 Cabinet. The 2011/12 outturn figures were reported to Cabinet on 11 June 2012.
A AFFORDABILITY
A1 Ratio of financing costs to net revenue stream
The outturn for 2011/12 along with the estimates and revised position for
2012/13 for the ratio of financing costs to net revenue stream are as follows:
Actual Estimate
%
Rev Est (P6)
%
Ratio (3.13) (1.95) (1.95)
A2 Estimates of the impact of capital investment decision on Council Tax
The code requires the impact of alternative capital investment decisions on
Council Tax to be calculated, and reflects the incremental impact of new capital decisions proposed over and above the capital investment decisions that have already been taken in the past by the Council, and therefore relates only to the new resources to be committed. These indicators take into consideration the effects of self-financing and the effects of government support, along with any associated impact on interest receivable/due as a consequence of the financing methods used. They also reflect the revenue implications of capital schemes other than financing costs, such as additional support contracts for new computer systems. The table below indicates the incremental impact of the capital investment decisions proposed for 2012/13 based on a Band D property . This is a purely notional calculation designed to show the effect of changes in capital investment decisions.
2011/12 2012/13 to
2014/15 2014/15
Actual Estimate Rev Est (P6)
Band D 2.65 2.71 1.48
The reduction in this indicator between the original and the revised estimate at period 6 is mainly due to the reduced interest rates assumed for investment returns in the future which are used to calculate the cost of the internal resources to fund the programme.
Section 3 of the Local Government Act 2003 requires the Council to determine and keep under review how much it can afford to borrow. The amount determined is termed the “Affordable Borrowing Limit”.
The Council must ensure when setting this limit that its capital investment plans remain within sustainable limits, and that the impact upon its future council tax and rent levels is acceptable.
The limit includes both external borrowing and other forms of liability, such as credit arrangements.
56

Appendix E
2011/12 2012/13 2012/13
(P6)
Affordable Borrowing Limit 9,325 9,556 9,556
B PRUDENCE
B1 Net Debt and the Capital Financing Requirement
This is a key indicator of prudence. In order to ensure that over the medium term net borrowing will only be for a capital purpose, the Council should ensure that the net external borrowing does not, except in the short term, exceed the total of the capital financing requirement in the preceding year plus the estimates of any additional increases to the capital financing requirement for the current and next two financial years.
The Council does not intend to enter into any long-term borrowing and therefore had no difficulty meeting this requirement to date in 2012/13, nor is there any difficulties envisaged for future years.
The capital expenditure estimates for the 2012/13 financial year for the
General Fund takes into account current plans and future commitments as updated in the Final Accounts 2011/12 report as presented to Cabinet in June
2012, and the revised estimate therefore takes account of any slippage from the 2011/12 programme.
Actual Estimate Rev Est (P6)
£,000
General Fund 4,056 10,438 15,186
C2 Capital Financing Requirement
General Fund
Actual Estimate
£,000
Rev Est (P6)
£,000
0 0 0
The estimated capital financing requirement takes into account capital expenditure, the application of useable capital receipts, direct charges to revenue for capital expenditure, the application of capital grants and the use of third party contributions towards project costs. It reflects the actual capital financing decisions taken in relation to the current approved capital programme. The programme is financed by internal resources and external grants.
In summary, an increase in the capital financing requirement will reflect capital expenditure which is not resourced immediately representing an increase in the underlying need to borrow for capital purposes. Likewise a reduction in the capital financing requirement will reflect future applications of capital receipts or grants and contributions or future charges to revenue.
57

Appendix E
D EXTERNAL DEBT
The figures below are based on assumed actual borrowing, new supported debt, and maturing and replacement debt. In addition, headroom for temporary borrowing and borrowing in advance of need has been incorporated.
Actual Estimate Rev Est (P6)
£,000
Authorised Limit 9,325 9,556 9,556
The limit set for 2012/13 gives the Authority flexibility to borrow to finance possible short-term cash flow fluctuations and borrowing in advance of need if required.
The operational boundary is based on the same estimates as the authorised limit but reflects a more prudent additional headroom figure.
Actual Estimate Rev Est (P6)
£,000
Operational Boundary 5,328 5,458 5,458
The limits for D1 and D2 will need to be reviewed in the future if the Authority decides to enter into any long-term borrowing.
D3 Actual External Debt
The Council’s actual external debt as at 30 September 2012 was zero, as highlighted in C2 above. This reflects the position at one point in time and is therefore not directly comparable to the authorised limit and operational boundary.
E1 Adopt the CIPFA Code of Practice for Treasury Management
The Council has adopted the CIPFA Code of Practice for Treasury
Management in the Public Services.
E2 Interest Rate Exposure – Variable Rates
It was recommended that the Council set an upper limit on its variable interest rate exposures for 2012/13 of 100% of its net outstanding principal sums
(100% 2011/12). As the Authority is currently debt free and is not intending to enter into any long-term borrowing in the near future this indicator is not currently relevant.
E3 Interest Rate Exposure – Fixed Rates
It was recommended that the Council set an upper limit on its fixed rate exposures for 2012/13 of 100% of its net outstanding principal sums (100%
2011/12). However, as with E3 above, this indicator is not relevant at the present time.
58

Appendix E
E4 Maturity Structure of Borrowing
It was recommended that the Council set upper and lower limits for the maturity structure of its borrowings as follows:
Amount of projected borrowing that is fixed rate maturing in each period as a percentage of total projected borrowing that is fixed rate
Under 12 months
Upper Limit
100%
Lower Limit
0%
100% 0% 12 months and within 24 months
24 months and within 5 years
100% 0%
5 years and within 10 years
10 years and above
100% 0%
100% 0%
These rates reflected the continuation of current practice but again the
Authority’s debt free status makes this indicator irrelevant at present.
E5 Total principal sum invested for period longer than 364 days.
The indicator for the upper limit for longer-term investments is set at £15m for
2012/13. As at the end of September 2012 the Council had £1.0m invested for periods longer than 364 days.
59

Agenda Item No_____12_______
BUDGET MONITORING REPORT 2012/13 – PERIOD 6
Summary:
Options considered:
Conclusions:
This report summarises the budget monitoring position for the revenue account and capital programme to the end of September 2012.
Not applicable
The overall position at the end of period 6 shows a forecast underspend of £23,552 for the current financial year on the revenue account. The revised budget for
2012/13 will be presented for approval in December.
Recommendations:
Reasons for
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and the current budget monitoring position.
2) New homes bonus of £40,000 be used to fund a
CIL Planning Policy Officer as outlined at 2.3.
To update Members on the current budget monitoring position for the Council and approve additional capital budget as outlined in the report.
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)
Cllr Wyndham Northam
Ward(s) affected
Contact Officer, telephone number and email: Karen Sly, 01263 516243,
Karen.sly@north-norfolk.gov.uk
1. Introduction
1.1. This report compares the actual expenditure and income position at the end of September 2012 to the current budget for 2012/13 as set by Full Council in
February 2012.
1.2. The budget process for 2012/13 is ongoing and as part of that the budget for the current financial year will be revised and reported to Cabinet and Scrutiny in December and then for approval by Full Council on 19 December 2012.
The information contained within this report will be used to inform the revised budget along with the latest financial projections for future years.
60

1.3. The base budget for 2012/13 includes savings and additional income of
£897,096. This report includes the latest position on both of these areas.
1.4 The budget monitoring position at the end of July was reported to Members in
September, this report now provides the latest updated position on both revenue and capital.
2. Budget Monitoring Position – Revenue Services
2.1 The general fund summary at Appendix F shows the high level budget monitoring position at 30 September 2012. This shows a year to date variance of £74,978 underspend. Appendix F provides further details of the individual service variances. The services are grouped by Heads of Service, whilst all appointments have been made to the Management Team there are still some reallocations of services between the Heads Service to be confirmed. Where this requires the reallocation of budgets below the level reported this will be updated for the revised budget.
2.2 The following tables seek to 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
£
Estimated
Full Year
Impact
£
Assets and Leisure
Car Parking – The current underspend reflects a number of variances on both income and expenditure compared to the profiled budget. These include additional repairs and maintenance totalling £23,883 of which £20,000 relate to ticket machines. There is also an additional management fee relating to the previous financial year of £12,746 and further contract costs linked to the additional penalty notice income.
The total full year effect of the expenditure variances is
£64,200, although these will be more than offset by additional income. Additional car park fee and excess charge income totalling £113,115 has been received for first half of the year above the profiled budget. The current forecast for additional income for the year estimates an additional £45,000 from pay and display fees and a net £30,000 from penalty notices (this is after allowing for the contract costs for the additional income as per the Service Level Agreement). Further work on these budgets will be carried out over the coming weeks to inform the revised budget. The overall implication of the variances now reported is a net additional income of £10,800 for the year.
Administration Buildings – The variance to date and the full year impact is mainly due to a reduction in the National Non
Domestic Rate (NNDR) costs following a revaluation of
Cromer and Fakenham Connect offices. This has been offset by professional fees which were incurred in order to achieve the NNDR reduction. The net effect is an underspend of
£14,000 although this has been reduced by additional costs incurred in relation to the disaster recovery facility at
(78,108) (10,800)
(24,900) (7,000)
61

Table 1 – Service Variances
Fakenham due to the relocation from the annex building.
Parks and Open Spaces – The variance to date and full year impact reflect business rates now payable by the lessee.
Foreshore – The variance to date is mainly due to repairs and maintenance not yet completed.
Sports Centres – The full year effect includes a number of budget movements including, professional fees relating to the business case at North Walsham Sports Centre which is being funded from an earmarked reserve, North Walsham sports hall repairs and a saving due to a vacant post. The overall impact is a forecast overspend of £12,342.
Leisure Complexes – The full year overspend is mainly due to an inflationary increase on the Management fee.
Other Sports – The overall full year saving reflects the net position in relation to the mobile gym as a result of additional fee income and contributions for the service received in the year.
Foreshore (Community) – The variance to date and full year effect reflects additional costs of £5,000 for emergency phone rentals in relation to beach safety, the balance reflects additional costs incurred in relation to the Bathing water directive requirement for provision of public information, the latter is being funded from an underspend from the previous year that was carried forward within the general reserve.
Investment Properties – An income provision has been allowed for within the accounts for the past two years for service charges, these are no longer recoverable and results in an unfavourable variance of £15,500 in the current year.
The balance of the overspend reflects additional lift repairs at the Rocket House.
CCTV – The full year effect is made up of two smaller variances, £3,902 in respect of voluntary contributions no longer anticipated and staff turnover savings not achieved.
Community and Economic Development
General Economic Development – The variance to date reflects a matched funding grant provided by Norfolk County
Council to provide business start-up support. This will be matched by expenditure as it is incurred.
Local Land Charges – The variance to date and full year
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
(6,282) (3,500)
(29,844) 0
(13,608) 12,342
(3,795) 19,871
(3,459) (13,913)
10,605 7,524
(3,774) 25,500
(2,708) 6,392
(36,057) 0
8,832 10,000
62

Table 1 – Service Variances effect reflects the additional income that was included as part of the 2012/13 budget process which is not now anticipated.
In addition the revised charging structure is still to be agreed for street naming and numbering.
Coast & Community Partnership – The variance to date includes £8,547 Community Right to Challenge New Burdens
Grant received which is yet to be allocated against expenditure. The balance reflects big society expenditure not yet incurred in the year.
Coastal Management – The variance to date is mainly due to a vacant post and external consultant costs not yet incurred.
Customer Services
IT Support Services – Whilst the variance to date does not highlight a significant movement compared to the profiled budget, a saving will be achieved in the current year due to the Civica system changes.
TIC’s – Whilst the position to date is showing an overspend there is anticipated to be a full year underspend in relation to staffing cost in the current year.
Housing Service Management – The variance to date and full year impact reflect a vacant post .
Publicity – The full year saving reflects the net position following the introduction of advertising in Outlook.
Customer Services (Corporate) – The full year impact reflects a post that has become vacant in the year for which it is not currently planned to be replaced in the current year.
Development Management
Development Management – The variance to date is due to actual planning income being less than the profiled budget, although some larger applications have recently been received that would offset this. The full year implication includes a small shortfall in income anticipated as part of the
2012/13 budget for pre application advice which was not introduced until May and a compensation payment awarded after an ombudsman enquiry.
Planning Management and Support – A savings proposal was accepted as part of the 2012/13 budget which covered a review of the management support. This has not yet commenced pending the peer review work and therefore the saving will not be delivered in the current year as budgeted.
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
(38,820) 0
(30,293) 0
904 (27,000)
6,117 (6,000)
(12,386) (18,000)
(2,066) (14,250)
(6,228) (24,000)
52,610 12,100
4,176 11,400
63

Table 1 – Service Variances
This variance was highlighted as part of the 2011/12 outturn report and a service underspend was rolled forward as part of the year end process to mitigate the impact in 2012/13.
Environmental Health
Environmental Protection – The full year impact is due to the delay in implementing staffing restructure within the service.
There is estimated to be an impact in the current year only.
Waste Collection and Disposal – Of the variance to date
£21,560 relates to additional contract costs due to the stepped price increase for trade waste, whilst it is anticipated to result in a full year overspend this has been mitigated by a
£5,905 2011/12 year end provision for the contribution to
NEWS for the plastic sorter not required in full. Overall the
Service Manager remains optimistic that expenditure and income will be contained within the overall budget for the year.
Cleansing – The variance to date largely reflects an underspend on employee costs due to a vacant post. The full year effect relates to additional income anticipated from dog and litter bins.
Financial Services
Local Taxation – The variance to date reflects a one-off grant received to assist in funding costs associated with the design and implementation of the new localised Council Tax
Scheme. This will be fully utilised in the year.
Non Distributed Costs – This service includes the pension payments in relation to past employees. Inflation chargeable on these payments is normally contained by reductions in the payments following the death of members. The full year effect reflects inflation which has not been offset by reduced payments of £9,634. The remainder of the full year effect includes one-off actuarial strain costs as a result of in-year officer structural changes. This one-off cost is being funded by a transfer from the Restructuring and Invest to save proposals reserve.
Corporate and Democratic Core – The variance to date reflects an outstanding creditor from the previous financial year in respect of external audit costs. The full year effect reflects the saving now anticipated to the audit fee following from the changes to the external auditing arrangements from
2012/13 onwards.
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
(4,956) 10,161
34,690 0
(15,227) (3,690)
(87,229) 0
20,587 26,099
(35,942) (50,000)
64

Table 1 – Service Variances Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
Organisational Development
Human Resources and Payroll – The variance to date is due to the corporate training programme not yet being delivered.
All training needs will be assessed following the interim appraisal process.
Registration Services – The variance to date reflects income that has not yet been invoiced in relation to elections due to work still outstanding in agreeing returns and information.
Corporate
Corporate Leadership Team – The variance to date reflects part of the savings from the management restructure. Further comments on these corporate savings are included within section 3.
(34,374) 0
77,907 0
(29,574) 0
2.3 The Community Infrastructure Levy (CIL) programme will enable more value from new development to benefit the district and increased staff resources would allow for a more proactive approach to be taken on allocated housing and employment sites to encourage inward investment. In order to deliver this, the planning policy and major developments team needs to be adequately resourced. This report is recommending that a Planning Policy
Officer post be created who will drive the CIL programme forward. This post is essentially self-financing as the regulations allow the authority to reclaim the costs of the preparation of CIL from the scheme when it is implemented.
However initial funding is required until the scheme is introduced and therefore this report recommends that £40,000 is used from the current years
New Homes Bonus to be replaced once the CIL is in place.
3. Budget Monitoring Position – Savings and Additional Income
3.1 The base budget for 2012/13 includes savings and additional income totalling
£897,096 within the service areas, the revised figure for the current year is now £888,065 although it is assumed that all savings will be back on target for 2013/14. The following table shows a summary of the savings across each of the service areas. The detail for each of the service savings is included at
Appendix G. Table 2 below summaries the position for each service heading.
Table 2 – Savings and Additional
Income 2012/13
Assets Coastal Defence & Leisure
Customer Services
2012/13
Base
Budget £
231,778
130,996
2012/13
Updated
Budget £
231,778
157,996
Variance
£
0
(27,000)
Community and Economic Development
Development Management
Environmental Health
Financial Services
Organisational Development
39,980
111,500
201,837
93,285
20,160
39,980
85,600
191,706
93,285
20,160
0
28,900
10,131
0
0
65

Corporate 67,560
Total 897,096
3.2 The variances on the service savings are included in the position reported within section 2 of the report.
3.3 In addition to the service savings, the financial implications of two on-going work streams for pay and grading and management restructure were included in the base budget for 2012/13. The original estimate of the implications were savings of £225,446 (pay and grading) and £150,000 (management restructure) in 2012/13. Details on these were provided within the previous budget monitoring report, essentially between the two workstreams there is an additional cost (shortfall in budgeted saving) of £50,000 in the current year. These have previously been included in the budget at a corporate level, i.e. not at the individual services. The revised budget will be updated to reflect the position at the service level.
4.1 The budget for 2012/13 anticipated that a net total of £269,900 would be earned in interest. This assumed an average balance of £26m at a rate of
1.03%.
4.2 At the end of period 6, a total of £112,720 had been earned resulting in a shortfall against the year to date budget of £23,744. The rate of interest achieved was 0.9% from an average balance available for investment of
£25.0m.
4.3 Based on the actual results to period 6, a total interest receivable figure of
£224,000 is forecast for the year from an average balance £24.6m at an average rate of 0.90 %. This will result in an estimated shortfall against the full year budget £47,900, which is unchanged from the position anticipated at period 4.
4.4 A report was presented to the Cabinet meeting in October 2012 on investing in pooled property funds. The Council’s treasury advisor is suggesting the
Council should consider an investment of £5m in the LAMIT fund. Investment in the fund will take place over the coming months and as a result of this the expectation is that the overall position on investment income for 2012/13 will improve. The return on the fund is anticipated to be around 5.0%, and this will potentially produce an additional £51,250 in interest above the forecast figure quoted above. At the current time it is expected that the current budget for the year will be achieved.
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 2012/13 Estimated Full Year Effect
(£)
Service Areas (Table 2)
Corporate Savings (Para 3.5)
Non Service Expenditure (Para 4.4)
(36,764)
50,000
0
66

Transfers from Reserves
Total Impact
(36,788)
(23,552)
5.2 Overall the revenue position shows a projected underspend of £23,552 for the current financial year. This position will continue to be monitored and will be used to inform the revised budget for the current year and the base budget for
2013/14.
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 Period 4 Budget Monitoring report which was approved by Cabinet on the 10 September 2012. Appendix H shows the latest position for the updated programme, both for the General Fund and
Coast Protection budgets. The appendix also provides details of spend up to period 6, along with comments on individual schemes where applicable.
6.2 The following commentary provides an update on individual schemes as they stand at the current time; a) Car Park Resurfacing and Refurbishment – Of the total budget available for car park resurfacing and refurbishment, an amount of £10,775 has been realigned to North Walsham Car Park Environmental Improvements. This was to reflect the expenditure incurred on car parks in the North Walsham area, but does not change the overall capital programme budget. b) Coastal Erosion Assistance – Following the Cabinet meeting on the 10th
September 2012, approval was given to the development of an integrated approach to coastal management. As a result of this, and following confirmation of receipt of £60,000 of Coastal Erosion Assistance grant monies the capital programme has been updated accordingly under the Coast,
Countryside and Built Heritage heading. c) North Walsham Car Park Environmental Improvements – Following the realignment of the Car Parks Resurfacing and Refurbishment budget, this budget has been increased by £10,775, although there is no change to the overall capital programme total.
6.3 Rocket House – At the current time there is budget available to spend of
£37,916 in relation to capital works at the Rocket House. The Asset
Management Board has identified a series of refurbishment works required to both the building itself and the lift mechanism. In total the estimated value of the works is £75,000, including £50,000 for the full renewal and upgrade of the lift which has been subject to several major breakdowns over the last 6 months. Further details of the work and implications of the work have been requested prior to additional budget approval.
6.4 Capital Receipts - The updated capital programme for 2012/13 assumes that new capital receipts of £16,000 will be generated in year from the disposal of the Mundesley Museum. This disposal is current at the conveyancing stage, with Legal Services. In addition to this it is also assumed that £390,000 will be receivable from preserved right to buys. Six preserved right to buys have been completed in the current year, and the values due to the Authority so far, amount to £269,769. The position with regards to capital receipts and financing requirements will continue to be monitored through the year to ensure that the current capital programme remains affordable.
67

7. Conclusion
7.1 The overall revenue budget is showing an estimated full year underspend for the current financial year of £30,552. The overall financial position for the current and future years will be considered in detail over the coming months as part of the budget and financial planning process.
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. In addition the progress made in achieving the two workstream savings targets from the management restructure and pay and grading will continue to be monitored and managed to ensure that the overall impact to the Council’s budget is mitigated.
8.2 The budget for 2012/13 includes service savings and additional income totalling £897,096. The progress in achieving these is being monitored as part of the overall budget monitoring process and where applicable corrective action will be identified and implemented to ensure the overall budget remains achievable.
9. Sustainability
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.
68

Appendix F
Appendix B
Service Area Summaries 2012-13 P6
Assets, Coastal Defence and Leisure
Cost
Centre
R301
R302
R303
R304
R305
R306
R309
R310
R312
R314
R315
R318
R397
R414
Code
R200
R200A
R201
R202
R203
R204
R262
R262A
R300
Cost Centre Name
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handyman
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, Coastal Defence and Leisure
Full Year
Budget YTD YTD Actuals
£
(1,207,945)
61,704
£
(983,280)
(13,985)
£
(1,061,388)
(14,137)
2,135
3,320
23,423
(4,585)
58,619
0
8,255
1,686
21,754
(16,740)
103,234
(28)
5,712
1,686
23,653
(14,580)
78,334
(8,708)
513,346
200,112
7,876
334,683
708,422
243,503
105,769
2,589
130,953
295,680
237,221
75,925
4,179
117,345
291,885
90,971
11,726
112,217
407,053
174,165
28,531
542,616
76,479
0
228,745
52,201
5,116
96,275
132,037
94,511
22,062
261,069
(71,031)
6
86,906
48,742
4,671
92,267
142,642
102,463
16,290
268,033
(74,805)
(2,061)
84,198
YTD
Variance
£
(78,108)
(152)
(2,543)
0
1,899
2,160
(24,900)
(8,680)
(6,282)
(29,844)
1,590
(13,608)
(3,795)
(3,459)
(445)
(4,008)
10,605
7,952
(5,772)
6,964
(3,774)
(2,067)
(2,708)
Commitments
£
76,049
22,082
4,754
0
59
3,818
112,049
0
211,199
39,626
399
21
37,044
498
5,295
868
154,423
1,053
483
203,492
10,876
131
15,406
Remaining
Budget
£
(222,606)
53,759
(8,331)
1,634
(289)
6,177
(131,764)
8,708
64,926
84,561
3,298
217,317
379,493
41,731
1,760
19,082
109,988
70,649
11,758
71,091
140,408
1,930
129,141
2,373,613 578,542 419,567 (158,975) 899,625 1,054,421
Community & Economic Development
Cost
R371
R391
R412
R340
R341
R402
R410
R472
Centre
Code
R101
R307
R308
R330
R333
R370C
Cost Centre Name
Planning Policy
Arts & Entertainments
Museums
General Economic Development
Tourism
Home Improvement Agency
Hsg Strategy
Regeneration Management
Environmental Strategy
Coast Protection
Pathfinder
Local Land Charges
Coast & Comm P'ship
Coastal Management
Total Community & Economic Development
Full Year
Budget YTD YTD Actuals
£
(361,290)
164,777
44,895
257,631
106,768
£
(206,649)
78,228
2,490
112,674
53,394
£
(218,032)
87,304
2,497
76,617
52,138
6,300
1,225,706
0
150,138
999,548
10,490
100,950
16,024
0
0
66,714
30
68,083
501,168
5,244
33,264
125,624
18
(3,000)
65,748
745
63,065
490,208
37,181
42,096
86,804
(30,275)
YTD
Variance
£
(11,383)
9,076
7
(36,057)
(1,256)
(3,000)
(966)
715
(5,018)
(10,960)
31,937
8,832
(38,820)
(30,293)
Commitments
£
(1)
36,340
0
0
(2)
0
0
0
23,007
70,845
17,500
0
0
0
Remaining
Budget
£
(143,257)
41,133
42,398
181,014
54,632
9,300
1,159,958
(745)
64,066
438,495
(44,191)
58,854
(70,780)
30,275
2,721,937 840,282 753,096 (87,186) 147,689 1,821,152
69

Customer Services
Cost
Centre
Code
R261
R311
R370
R370A
R370B
R372
R394
R411
R430
R481B
R481C
R481D
Cost Centre Name
It - Support Services
Tic'S
Strategic Housing
Private Sector Housing
Improvement Grants
Homelessness
Housing - Service Mgmt
Transport
Publicity
Graphical Info System
Media & Communications
Customer Services - Corporate
Total Customer Services
Development Management
Cost
Centre
Code
R100
R102
R103
R121
R150
Cost Centre Name
Development Management
Conservation & Design
Landscape
Building Control & Access
Planning Man & Comm Support
Total Development Management
Environmental Health
Cost
Centre
Code
R111A
R114
R115
R117
R117B
R118
R119
R119A
R120
R151
R316
R317
R413
R420
Cost Centre Name
Commercial Services
Rural Sewerage Schemes
Travellers
Licensing
Street Naming
Pest Control
Pollution Control
Environmental Protection
Dog Control
Env Health - Service Mgmt
Waste Collection and Disposal
Cleansing
Community Safety
Civil Contingencies
Total Environmental Health
Appendix F
Appendix B
Full Year
Budget YTD YTD Actuals
£ £ £
(6,559)
284,048
0
0
1,715,951
(26,260)
156,042
0
0
189,306
(25,356)
162,159
(1,292)
(400)
189,252
(169,662)
0
46,490
98,718
0
0
0
51,220
(4,846)
10,248
44,992
6,196
9,947
1,088
64,666
(17,232)
8,988
42,926
8,498
(4,525)
(5,140)
YTD
Variance
£
904
6,117
(1,292)
(400)
(54)
13,446
(12,386)
(1,260)
(2,066)
2,302
(14,472)
(6,228)
Commitments
£
23,430
13,122
0
0
0
10,813
1,497
0
2,250
1,600
0
2,442
Remaining
Budget
£
(4,633)
108,767
1,292
400
1,526,699
(245,141)
15,735
37,502
53,542
(10,098)
4,525
2,698
1,968,986 437,933 422,544 (15,389) 55,154 1,491,288
Full Year
Budget YTD YTD Actuals
£ £ £
577,086
154,054
153,889
96,866
0
294,120
71,958
81,450
51,351
(5,550)
346,730
72,697
84,371
72,400
3,972
YTD
Variance
£
52,610
739
2,921
21,049
9,522
Commitments
£
3,142
390
0
440
4,359
Remaining
Budget
£
227,214
80,967
69,518
24,026
(8,331)
981,895 493,329 580,170 86,841 8,331 393,394
Full Year
Budget YTD YTD Actuals
£
548,659
346,505
£
279,245
173,253
£
281,162
173,253
97,800
76,046
37,906
17,143
57,108
56,800
13,968
8,592
58,986
62,109
7,522
18,350
0
641,521
67,472
0
1,584,138
755,135
34,814
160,869
0
306,437
33,744
(10,021)
112,924
292,988
17,408
80,248
(78)
301,481
46,612
(18,781)
147,614
277,761
14,104
75,740
YTD
Variance
£
1,917
0
1,878
5,309
(6,446)
9,758
(78)
(4,956)
12,868
(8,760)
34,690
(15,227)
(3,304)
(4,508)
Commitments
£
3,511
0
5,704
6,273
15
2,117
0
22,873
12,300
6,182
1,868,112
405,408
0
235
Remaining
Budget
£
263,986
173,252
33,110
7,664
30,369
(3,324)
78
317,167
8,560
12,599
(431,588)
71,966
20,710
84,894
4,368,008 1,422,694 1,445,835 23,141 2,332,730 589,443
70

Finance
Cost
Centre
Code
R210
R211
R213
R214
R219
R251
R263
R263C
R450
R450A
Cost Centre Name
Local Taxation
Benefits
Treasury Management
Discretionary Rate Relief
Non Distributed Costs
Benefits & Revenues Mgmt
Corporate Finance
Internal Audit
Central Costs
Corporate & Democratic Core
Total Finance
Organisational Development
Cost
Centre
Code
R112A
R260
R263B
R263D
R400
Cost Centre Name
Health
Personnel & Payroll Supp Svs
Insurance & Risk Management
Policy & Performance Mgt
Registration Services
Total Organisational Development
Corporate
Cost
Centre
Code
R450B
R460A
R481
Cost Centre Name
Members Services
Corporate Leadership Team
Legal Services
Total Corporate
Appendix F
Appendix B
Full Year
Budget YTD YTD Actuals
£ £ £
534,610
925,951
50,430
68,018
0
298,504
796,904
25,218
0
107,020
211,275
807,249
25,218
0
127,607
0
6,559
0
0
1,158,036
1,222
(12,542)
(52,986)
(23,270)
506,122
2,684
(27,589)
(59,158)
(23,038)
470,180
YTD
Variance
£
(87,229)
10,345
0
0
20,587
1,462
(15,047)
(6,172)
232
(35,942)
Commitments
£
1,213
1,764
0
0
0
0
5,591
0
0
0
Remaining
Budget
£
322,122
116,938
25,212
68,018
(127,607)
(2,684)
28,557
59,158
23,038
687,856
2,743,604 1,646,192 1,534,428 (111,764) 8,568 1,200,608
Full Year
Budget YTD YTD Actuals
£
8,410
0
0
£
4,206
6
(114,079)
£
(7,225)
(34,368)
(114,486)
0
275,099
(7,920)
138,024
(25,879)
215,931
YTD
Variance
£
(11,431)
(34,374)
(407)
(17,959)
77,907
Commitments
£
680
170
0
1,100
341
Remaining
Budget
£
14,955
34,198
114,486
24,779
58,827
283,509 20,237 33,973 13,736 2,291 247,245
Full Year
Budget YTD YTD Actuals
£
532,068
0
0
£
261,546
18
6
£
260,732
(29,556)
(7,813)
YTD
Variance
£
(814)
(29,574)
(7,819)
Commitments
£
847
6,538
195
Remaining
Budget
£
270,489
23,018
7,618
532,068 261,570 223,363 (38,207) 7,580 301,125
71

2012/13 Savings - Budget Monitoring Position (Period 4)
Savings
Form Ref
I2 Total
I3 Total
Service
Legal Services
Members Costs
Service Area
Corporate
Corporate
Appendix G
Appendix C
Brief Outline of Saving/Additional Income (where applicable)
Externally generated income from legal services.
Reduction in members allowances
2012/13 Savings
(40,000)
(17,000)
2012/13 Update Variance
(40,000)
(17,000)
0
0
I4 Total
R27 Total
Legal Services
Corporate
Management
C15 Total Homelessness
C16 Total Homelessness
I6 Total
I8 Total
ICT
Telephony
I9 Total GIS
Corporate
Corporate
Corporate Total
Customer Services
Customer Services
Customer Services
Customer Services
Customer Services
Disbursement reduction for Counsel's advice
Savings on professional fees, external printing and licence fees.
Premises costs relating to Lockerbie flats no longer used for Homelessness.
Net increase in recoverable costs from Homelessness
B&B accommodation.
Efficiency savings due to virtualisation.
Efficiency savings on telephones budgets.
Savings in GIS licences as it is a more mature product.
(4,000)
(6,560)
(67,560)
(24,000)
(7,380)
(26,000)
(6,000)
(10,000)
(4,000)
(6,560)
(67,560)
(24,000)
(7,380)
(16,000)
(6,000)
(10,000)
0
10,000
0
0
0
0
0
0
(33,661) (70,661) (37,000) I11 Total ICT Applications
R18 Total
Community
Transport
Customer Services
Customer Services
Service efficiencies including software licence fees.
Removal of budget following restructure of service
Customer Services Total
R19 Total
R20 Total
R23 Total
Performance
Management
Organisational
Development
Personnel and
Payroll
Organisational Development
Organisational Development
Organisational Development
Removal of fees budget (£3,000). If further savings need to be found they would have to come from the compulsory reduction of staff time.
Removal of residual budgets following restructuring exercise
Savings on Professional fees previously used for advice on learning and development and pay and grading issues.
Organisational Development Total
Financial Services Review of recoverable benefit subsidy.
R15 Total
R28 Total
Revenues and
Benefits
R16 Total
Revenues and
Benefits
R25 Total
Treasury
Management
R26 Total Central Costs
Democratic Rep &
Man
Financial Services
Financial Services
Financial Services
Financial Services
Increased Court Costs
Savings in relation to the council's banking contract and treasury management contract
Savings on professional fees.
Reduction in subscriptions budget.
(23,955)
(130,996)
(3,000)
(3,364)
(13,796)
(20,160)
(15,000)
(40,000)
(4,000)
(3,260)
(4,400)
(23,955)
(157,996)
(3,000)
(3,364)
(13,796)
(20,160)
(15,000)
(40,000)
(4,000)
(3,260)
(4,400)
0
(27,000)
0
0
0
0
0
0
0
0
0

2012/13 Savings - Budget Monitoring Position (Period 4)
Savings
Form Ref
Service
R29 Total Accountancy
R30 Total Internal Audit
R31 Total Sundry Debtors
R32 Total Creditors
Service Area
Financial Services
Financial Services
Financial Services
Financial Services
Appendix G
Appendix C
Brief Outline of Saving/Additional Income (where applicable)
Accountancy savings relating to subscriptions, professional fees, training and staffing budgets.
Proposed reduction in management days in relation to the
Internal Audit contract
Proposed reduction in training budget
2012/13 Savings
(19,375)
(5,500)
(750)
2012/13 Update Variance
(19,375)
(5,500)
(750)
Proposed reduction in professional fees budget (1,000) (1,000)
0
0
0
0
(93,285) (93,285) 0 Financial Services Total
E10 Total Arts
E11 Total
Wensum Valley trust
Assets, Coastal Defence &
Leisure
Assets, Coastal Defence &
Leisure
Reduction in grant to Sheringham Little Theatre
Withdrawal of funding for Wensum Valley Trust
E12 Total
E13 Total
Museums
Arts
Assets, Coastal Defence &
Leisure
Assets, Coastal Defence &
Leisure
Reduce contribution to Cromer Museum Service
Incorporate current Arts Guide produce in house into the current tourism guide.
R1 Total Car Parks
Assets, Coastal Defence &
Leisure
Possible options to Increase car park charges
R3 Total
R4 Total
R5 Total
R6 Total
R7 Total
R9 Total
R10 Total
R13 Total
Markets
Industrial Estates
Rental Properties
Admin buildings
Admin buildings &
Depots
R8 Total Windmill Restaurant
Property Services
Beach Huts and
Chalets
Coast Protection
Assets, Coastal Defence &
Leisure
Assets, Coastal Defence &
Leisure
Assets, Coastal Defence &
Leisure
Assets, Coastal Defence &
Leisure
Assets, Coastal Defence &
Leisure
To bring the management of Markets back in-house.
Cessation of rental share agreement following EEDAs dissolution.
10% increased rental income from Parklands site.
Increased service charge to North Walsham Town Council for North Walsham Offices.
Letting of office space to other public organisations.
Assets, Coastal Defence &
Leisure
Assets, Coastal Defence &
Leisure
Reduction in subsidy to the staff canteen.
Reorganisation of arrangements for facilities management.
Assets, Coastal Defence &
Increased charges for beach huts and chalets.
Leisure
Assets, Coastal Defence &
Leisure
Termination of Coastal Monitoring budget.
Assets, Coastal Defence & Leisure Total
(5,720)
(7,397)
(5,550)
(2,000)
(100,000)
(23,698)
(15,655)
(5,108)
(3,900)
(8,250)
(12,500)
(10,000)
(10,000)
(22,000)
(231,778)
(5,720)
(7,397)
(5,550)
(2,000)
(100,000)
(23,698)
(15,655)
(5,108)
(3,900)
(8,250)
(12,500)
(10,000)
(10,000)
(22,000)
(231,778)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

2012/13 Savings - Budget Monitoring Position (Period 4)
Savings
Form Ref
Service
C14 Total Housing Services
C17 (b)
Total
Economic
Development &
Tourism
Appendix G
Appendix C
Service Area
Brief Outline of Saving/Additional Income (where applicable)
Community & Economic
Development
Community & Economic
Development
Deletion of vacant Development Officer post
Reduction in grant support to the North Norfolk Business
Forum.
Community & Economic Development Total
2012/13 Savings
(34,980)
(5,000)
(39,980)
2012/13 Update Variance
(34,980)
(5,000)
(39,980)
0
0
0
E1 Total
Environmental
Sustainability &
Green Build
Environmental Health
1. Reduction in Sustainability Coordinator post to 30 hours per week. (0.81 FTE). 2. Increased Exhibitor fees and charging for compost
(18,000) (18,000) 0
E2 Total Taxi Licensing Environmental Health
E3 Total
E4 Total
E5 Total
Environmental
Health
EH Commercial
Team
Environmental Health
Environmental Health
EH Environmental
Protection
Environmental Health
E6 Total
EH Environmental
Protection
Environmental Health
E7 Total
Civil Contingencies
Team
Environmental Health
E8 Total Drainage Grants
E17 Total
E18 Total
E19 Total
E20 Total
E21 Total
Waste Disposal &
Recycling
Waste Disposal &
Recycling
Waste Disposal &
Recycling
Waste Disposal &
Recycling
Waste Disposal &
Recycling
Environmental Health
Environmental Health
Environmental Health
Environmental Health
Environmental Health
Environmental Health
E23 Total Commercial Team Environmental Health
1. Reduced Costs for taxi testing. 2. identify areas to increase taxi licensing fees to reflect full cost recovery
Removal of Student bursary payment
External Food Hygiene courses now delivered in-house.
Increased income from courses
Removal of annual subscriptions to Keep Britain Tidy.
Reduction in staffing levels following a restructure of
Environmrntal Health
Reduction in Civil Contingencies budget. Primarily the cost of providing subsidised sandbags to individuals.
Removal of small scale drainage grants offered to individuals.
Reduce contribution to Norfolk Waste Partnership
Increased charges for Garden bins
Reduction in Budget for the purchase and maintenance of litter bins.
Increased profit share from Norfolk Environmental Waste
Services (NEWS).
Removal of budget provision for storage of wheeled bins now part of Kier Contract.
Reduction in commercial team establishment.
(20,000)
(7,000)
(13,000)
(7,250)
(32,134)
(8,000)
(9,865)
(5,000)
(31,200)
(9,000)
(12,000)
(12,772)
(16,616)
(20,000)
(7,000)
(13,000)
(7,250)
(22,003)
(8,000)
(9,865)
(5,000)
(31,200)
(9,000)
(12,000)
(12,772)
(16,616)
0
0
10,131
0
0
0
0
0
0
0
0
0
0

2012/13 Savings - Budget Monitoring Position (Period 4)
Appendix G
Appendix C
Savings
Form Ref
Service Service Area
Environmental Health Total
Brief Outline of Saving/Additional Income (where applicable)
C1 Total
C2 Total
C3 Total
C5 Total
C6 Total
C7 Total
C9 Total
Building Control
(Non Fee Earning)
Conservation
Design and landscape
Conservation
Design and landscape
Development
Management
Development
Management
Development
Management
Development Management
Development Management
Development Management
Reduction in qualification training and associated mileage budgets.
Delete budget for the preparation of the Councils
Biodiversity Strategy and Programme of Exemplar
Projects.
Reduction in Conservation Area Enhancement budgets and printing & equipment budgets
Development Management The introduction of fee charging for pre application advice.
Development Management
The introduction of fee charging for Certificate of Proposed
Lawful Development.
Development Management Reduction in qualification training budget.
Various Development Management
1. increase land charge fees by 10%. 2. Introduce charges for Street Naming and Numbering for new developments
2012/13 Savings
(201,837)
2012/13 Update Variance
(191,706)
(6,000)
(10,500)
(4,000)
(10,000)
(5,000)
(3,000)
(20,000)
(6,000)
(10,500)
(4,000)
(5,000)
(1,500)
(3,000)
(18,000)
10,131
0
0
0
0
3,500
0
10,000
C10 Total Planning Policy Development Management Reduction in qualification training and transport budgets.
C11 Total Planning Policy
Planning
C12 Total Management &
Community Support
Planning
C13 Total Management &
Community Support
Development Management Reduction in external grants.
Development Management
Development Management
Employee savings to be identified as part of a proposed restructuring of planning support services.
Reductions in officer travel and supplies and service budgets - effeciency savings
Development Management Total
(6,600)
(9,500)
(26,400)
(10,500)
(111,500)
(6,600)
(5,500)
(15,000)
(10,500)
(85,600)
0
4,000
11,400
0
28,900
Total Savings Identified (897,096) (888,065) 12,031

Appendix H
GENERAL FUND CAPITAL PROGRAMME
Scheme
Jobs and the Local Economy
Fakenham Industrial Estate
Financed by;
NNDC (Capital Receipts)
North Norfolk Enterprise Innovation Centre
Financed by;
NNDC (Capital Receipts)
Fakenham Factory Extension
Financed by;
NNDC (Capital Receipts)
Public Conveniences Improvements - Phase
1and 2, and Mundesley Prom PC Upgrade
Financed by;
NNDC (Capital Receipts)
Cromer Red Lion Toilet Refurbishment
Financed by;
NNDC (Capital Receipts)
RCCO
Car Park Ticket Machines
Financed by;
NNDC (Capital Receipts)
Asbestos Works
Financed by;
NNDC (Capital Receipts)
Rocket House
Financed by;
NNDC (Capital Receipts)
Scheme Total
Current Estimate
£
404,665
404,665
102,010
90,095
11,915
238,000
238,000
51,000
51,000
40,000
40,000
140,000
140,000
50,000
50,000
425,000
425,000
Pre 31/3/12
Actual
Expenditure
Updated
Budget at
P6
Actual
Expenditure as at Period 6
- September
Variance to
12/13
Updated
Estimate
£
133,264
10,295
277,068
389,246
87,674
234,946
39,672
1,469
6,736
39,705
147,932
15,419
14,336
3,054
11,328
38,531
0
0
114,109
15,419
16,567
0
162
615
(6,736)
(39,705)
(33,823)
0
2,231
(3,054)
(11,166)
(37,916)
Comments
The project is currently on hold following withdrawal of external funding.
Works have been completed and we are currently in the defects period.
This scheme is complete.
Works have been completed and we are currently in the defects period.
The scheme is currently on hold pending a review of service requirements.
Further asbestos removal has been identified for Edingthorpe, to commence some time in October 2012.
The scheme is currently under review with works being identified and agreed through the Asset Management Board.
Updated
Budget 13/14
Updated
Budget 14/15
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
76

Appendix H
GENERAL FUND CAPITAL PROGRAMME
Scheme
Wells Sackhouse Refurbishment
Financed by;
Other Contributions
NNDC (Capital Receipts)
Maltings Wells
Financed by;
NNDC (Capital Receipts)
Car Park Environmental Improvements
Financed by;
NNDC (Capital Receipts)
Carbon Reduction Scheme
Financed by;
NNDC (Cap Receipts - Carbon Reduction
Fund)
Sheringham East Prom Public
Conveniences
Financed by:
NNDC (Capital Receipts)
Sheringham Little Theatre
Financed by:
NNDC (Capital Receipts)
Car Park Resurfacing and Refurbishment
Financed by;
NNCD (Capital Receipts)
Scheme Total
Current Estimate
£
71,752
27,752
44,000
Pre 31/3/12
Actual
Expenditure
45,029
Updated
Budget at
P6
Actual
Expenditure as at Period 6
- September
Variance to
12/13
Updated
Estimate
£
26,723 0 (26,723)
Comments
This scheme is currently on hold pending the outcome of a larger grant funding submission.
Updated
Budget 13/14
Updated
Budget 14/15
0 0
100,000
100,000
0 100,000 0 (100,000) This scheme is currently on hold pending the outcome of a larger grant funding submission.
0 0
111,395
111,395
111,395 0 (0) (0) This scheme is now complete.
0 0
108,318 58,917 49,401 0 (49,401) A potential scheme has been identified following the August meeting of the
Environmental Sustainability Board.
0 0
108,318
20,989 106,011 108,392 2,381
Works have been completed and we are currently in the defects period.
0 0 127,000
127,000
0 45,000 1,115 (43,885) Works are ongoing.
0 0 45,000
45,000
181,681 0 181,681 31,908 (149,773)
This scheme is now at the bulletin stage, with the letter of intent due to be issued to the succesful company at the end of October.
0 0
181,681
2,195,821 1,409,964 785,857 288,288 (497,569) 0 0
77

Appendix H
GENERAL FUND CAPITAL PROGRAMME
Scheme
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)
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)
Scheme Total
Current Estimate
£
Pre 31/3/12
Actual
Expenditure
Updated
Budget at
P6
Actual
Expenditure as at Period 6
- September
Variance to
12/13
Updated
Estimate
£
Annual programme
Annual programme
120,650
113,950
6,700
200,000
200,000
320,650
860,809
860,809
1,222,578
443,000
779,578
3,100,178
2,128,568
920,614
50,996
8,718
348,869
926,600
(852,091)
(873,709)
(2,173,578)
100,650 20,000
16,000
4,000
0
100,650
200,000
200,000
5,403,565
0
0
(20,000)
(200,000)
1,284,187 (4,119,378)
Comments
Schemes are progressing.
Schemes are progressing.
Schemes are progressing.
Updated
Budget 13/14
Updated
Budget 14/15
555,000
555,000
700,000
443,000
257,000
400,000
0
400,000
0
0
0
0
1,655,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
78

Appendix H
GENERAL FUND CAPITAL PROGRAMME
Scheme
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
Financed by:
Grant
Sheringham Beach Handrails
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Capital Receipts)
Cromer Pier Structural Works - Phase 2
Financed by;
NNDC (Capital Receipts)
Sheringham Promenade Lighting
Financed by;
NNDC (Capital Receipts)
Other Contributions
Cromer Pier and West Prom Refurbishment
Project
Financed by:
NNDC (Capital Receipts)
Refurbishment Works to the Seaside
Shelters
Financed by:
NNDC (Capital Receipts)
Cromer Coast Protection Scheme 982 and
SEA
Financed by:
Environment Agency Grant
SMP Preparation of Common Version for
Approval and Other Additional Studies
Financed by:
Environment Agency Grant
Scheme Total
Current Estimate
£
Pre 31/3/12
Actual
Expenditure
Updated
Budget at
P6
Actual
Expenditure as at Period 6
- September
Variance to
12/13
Updated
Estimate
£
155,000
155,000
10,400,000
10,400,000
131,000
131,000
1,409,000
1,409,000
40,023
5,023
35,000
1,418,631
1,418,631
78,000
45,000
33,000
200,000
200,000
1,062,593
36,897
81,395
10,609
76
0
188,717
128,230
346,407
3,126
1,337,236
67,391
99,924
155,000
4,768,283
2,770
0
0
176,476
665
32
2,676
1,712
(346,407)
(3,126)
(1,160,760)
(66,726)
(99,892)
(1,058)
Comments
Works are progressing on this scheme.
Works are progressing on this scheme.
The scheme is ongoing.
(152,324)
The scheme has commenced with works on a number of shelters being completed. Invoices for these works are currently awaited.
2,904 (4,765,379)
The scheme is ongoing.
Major works have been completed and the scheme is currently being finalised.
Updated
Budget 13/14
0
0
0
0
100,000
0
5,000,000
0
Updated
Budget 14/15
0
0
0
0
0
0
443,000
0
79

Appendix H
GENERAL FUND CAPITAL PROGRAMME
Scheme
Pathfinder Project
Financed by:
DEFRA Grant
Cromer to Winterton Scheme
Financed by:
Environment Agency Grant
Coastal Erosion Assistance
Financed by:
Government Grant
Scheme Total
Current Estimate
£
1,967,015
Pre 31/3/12
Actual
Expenditure
1,508,839
Updated
Budget at
P6
Actual
Expenditure as at Period 6
- September
Variance to
12/13
Updated
Estimate
£
458,176 129,658 (328,518)
Comments
Pathfinder projects under this scheme are progressing.
Updated
Budget 13/14
Updated
Budget 14/15
0 0
1,967,015
0 0 110,000
110,000
60,000
60,000
15,968,669
0
0
110,000
60,000
3,017,356 7,408,313
1,303
0
(108,697) Approval has now been received for this scheme and works have gone out to tender.
(60,000)
315,425 (7,092,888)
0
5,100,000
0
443,000
Localism
Playground Improvements - Various
Financed by:
Contributions
Grant
NNDC (Capital Receipts)
North Lodge Park
Financed by;
NNCD (Capital Receipts)
Sheringham Skate Park
Financed by:
NNDC (Capital Receipts)
Big Society Fund
Financed by:
NNDC (Capital Receipts)
North Walsham Regeneration Schemes
Financed by:
NNDC (Capital Receipts)
276,057
51,679
222,561
1,817
197,000
197,000
20,000
20,000
200,000
200,000
70,000
70,000
245,257
0
0
17,045
30,800
197,000
20,000
0 200,000
52,955
560 (30,240) Works commenced mid September, although invoices are still awaited.
717 (196,283) This scheme is on hold awaiting the outcome of public consultation.
20,000
110,858
0
0 Approval for the capital scheme was given at the Cabinet meeting on 16th
July 2012, and full payment of the contribution has since been made
(89,142) Expenditure to date reflects approvals for grant for capital schemes identified in round 1 of the Big Society Fund in
May - July 2012
(52,955) The scheme is ongoing.
0
0
0
0
0
0
0
0
0
0
80

Appendix H
GENERAL FUND CAPITAL PROGRAMME
Scheme
North Walsham Public Conveniences
Financed by:
NNDC (Capital Receipts)
North Walsham Car Park Environmental Impr
Financed by:
NNDC (Capital Receipts)
Scheme Total
Current Estimate
£
68,000
Pre 31/3/12
Actual
Expenditure
6,918
Updated
Budget at
P6
Actual
Expenditure as at Period 6
- September
Variance to
12/13
Updated
Estimate
£
61,082 59,168 (1,914)
Comments
The scheme is ongoing.
68,000
40,775 0 0 0 40,775
40,775
871,832 309,995 561,837 191,304 (370,533)
Delivering the Vision
Street Signs Improvement Programme
Financed by;
NNDC (Capital Receipts)
Grant
Trade Waste Bins/ Waste Vehicle
Financed by:
NNDC (Capital Receipts)
LPSA Grant
BPR EDM Project
Financed by;
Planning Delivery Grant/Housing and Planning
Delivery Grant
Capital Projects Reserve
NNDC (Capital Receipts)
Personal Computer Replacement Fund
Financed by;
NNDC (Capital Receipts)
NNDC (RCCO)
Waste Management & Environmental Health
IT System
Financed by;
NNDC (Capital Receipts)
WPEG Grant
DEFRA Grant
99,600
95,500
4,100
272,700
194,784
77,916
422,788
16,682
5,967
400,139
123,302
100,033
23,269
232,427
131,514
83,486
17,427
73,775
79,690
280,802
97,995
215,933
25,825
193,010
141,986
25,307
16,494
(0)
0
0
0
0
(25,825)
(193,010)
(141,986)
(25,307)
(16,494)
No further orders have been placed under the capital scheme at the current time.
No further orders have been placed under the capital scheme at the current time.
The project board has been established for the Reception Improvement Works
Scheme is ongoing.
Scheme is ongoing.
Updated
Budget 13/14
Updated
Budget 14/15
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
81

Appendix H
GENERAL FUND CAPITAL PROGRAMME
Scheme
Asset Management Computer System
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Asset Management Reserve)
Probass 3
Financed by:
Planning Delivery Grant/Housing and Planning
Delivery Grant
NNDC (Capital Receipts)
Procurement for Upgrade of Civica System
Financed by:
NNDC (Capital Receipts)
Other Grants (RIEP)
DWP Performance Standards Fund e-Financials Financial Management System
Software Upgrade
Financed by:
NNDC (Capital Receipts)
Administrative Buildings
Financed by;
NNDC (Capital Receipts)
Fakenham Connect
Financed by;
NNDC (Capital Receipts)
Fakenham Community Centre
Financed by:
NNDC (Capital Receipts)
Scheme Total
Current Estimate
£
75,000
Pre 31/3/12
Actual
Expenditure
52,173
Updated
Budget at
P6
Actual
Expenditure as at Period 6
- September
Variance to
12/13
Updated
Estimate
£
22,827 3,722 (19,105)
Comments
The Asset Management System is now live and final invoices are awaited.
Updated
Budget 13/14
Updated
Budget 14/15
0 0
60,000
15,000
34,010 24,075 9,935 0 (9,935) Scheme is ongoing. 0 0
5,600
28,410
306,156
210,947
53,800
41,409
33,000
37,679
0
268,477
33,000
58,651
0
(209,826) The scheme is progressing with expenditure being incurred on the joint scheme by Kings Lynn and West
Norfolk Borough Council, to be invoiced at a later date.
0
0
0
0
33,000
275,000
275,000
25,000
25,000
45,000
45,000
1,943,983
21,300,955
474
18,782
36,280
917,658
5,755,623
274,526
6,218
8,720
1,026,325
15,185,897
4,081
0
0
66,454
2,145,657
(33,000)
The project initiation meeting has been held, with an installation of the software upgrade anticipated in November. The scheme is expected to be complete by the end of February 2013.
(270,445) Potential companies have been identified for the emergency lighting and fire alarm elements of this project, and tender documentation is due to be sent
(6,218) The scheme is currently on hold.
(8,720)
(959,871)
(13,040,240)
0
0
0
0
6,755,000
0
0
0
0
443,000
82

Appendix H
GENERAL FUND CAPITAL PROGRAMME
Scheme
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
Scheme Total
Current Estimate
£
Pre 31/3/12
Actual
Expenditure
Updated
Budget at
P6
Actual
Expenditure as at Period 6
- September
Variance to
12/13
Updated
Estimate
£
4,941,053
458,176
443,000
474,863
50,996
63,800
15,000
0
932,441
7,806,568
15,185,897
Comments
Updated
Budget 13/14
Updated
Budget 14/15
5,000,000
0
443,000
0
0
0
400,000
912,000
0
0
6,755,000
443,000
0
0
0
0
0
0
0
0
0
443,000
83

Agenda Item No_____13_______
Community Asset Transfer Policy
Summary:
Options considered:
A view was taken that the Council’s Acquisition and
Disposal Policy required supplementation in anticipation of possible future requests from other public and third sector / community groups wishing to take over the
Council’s assets with reference to the localism agenda.
The Asset Management Board considered an initial report at its March 2012 meeting which referred to the aspects of the then Localism Bill with recommendations that a Policy be created to provide a framework for asset transfer to community groups and the like.
A draft Community Asset Transfer Policy was submitted to Cabinet on the 14 May 2012 with a recommendation to issue the draft as a basis of consultation with relevant community group, town and parish councils being approved.
The matter was presented to the Overview and Scrutiny
Committee on the 23 May 2012, which agreed to
Cabinets resolution but in addition required consideration to be given to support for capacity building and post transfer care. The draft was amended to reflect this observation. A consultation period closed on the 20
July 2012, eight returns being received although none with any particular relevance to the draft policy.
The results and an amended draft policy were reported to both the Asset Management Board in September
2012, being returned to the Overview and Scrutiny
Committee of the 25 September, with agreement for the matter to be returned to Cabinet for approval to be given for consideration to forward the matter to Full Council for adoption.
The Localism Act sets out guidance and parameters in respect of Community Right to Bid/challenge. The proposed policy is to assist these aspects in respect of the property element as well as dealing with straight forward approaches over acquisition by community groups.
Conclusions:
Recommendations:
The Policy has been amended to reflect observations made by the Asset Management Board, the Overview and Scrutiny Committee, the consultation together with the Right to Bid and Challenge provisions under the
Localism Act 2011.
For Cabinet to approve the draft Policy to be forwarded for adoption by Full Council in order to provide the Council with a clear framework and procedural guide to assist in it achieving a
Corporate Plan ambition.
84

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Localism Act, 2011
North Norfolk District Council Corporate Plan
North Norfolk District Council Acquisition and Disposal Policy
Cabinet Report 14.5.2012
Overview and Scrutiny Committee 23.5.2012
Overview and Scrutiny Committee 25.9.2012
Cabinet Member(s)
Cllr. Rhodri Oliver
Ward(s) affected
All
Contact Officer, telephone number and email:
Martin Green x.6049 martin.green@north-norfolk.gov.uk
1. Introduction
1.1 The Localism agenda has generated interest by Third Sector Organisations
(TSO’s) which may seek to succeed the management of community assets, including land and buildings currently held in public ownership. This proposed
Policy is set to provide a framework to manage and enable the transfer of
Council assets to such groups, setting down criteria for doing so. The Policy acknowledges the distinctions and specific criteria of the Community Right to
Buy and Right to Challenge Provisions as set out in regulations emanating from the Localism Act 2011.
1.2 The Council’s Corporate Plan includes the priority “to embrace the
Government’s Localism agenda to empower individuals and communities to take more responsibility for their own futures and to build a stronger civic society.” The Annual Action Plan states that “we will establish a protocol and put in place the means to respond positively to requests from Town and
Parish Councils to share in the benefits of growth” and “subject to guidance, we will assess expressions of interest from voluntary or community groups who wish to take over the running of a service and/or community asset, and complete the initial assessment within three months of receiving the request.”
This policy provides an important means by which communities may take over the running of services within their area/communities and to ensure that in this process, address the property asset element of these actions.
2. The Community Asset Transfer Policy
2.1 The proposed policy document is attached. It sets out a procedure to follow in the determination of requests for the transfer of NNDC’s assets.
2.2 The Asset Management Board considered a draft of this policy on the 12
March 2012, when it was proposed that a period of consultation take place
85

with community groups, parish and town councils. The policy was presented before Cabinet on the 14 May 2012 and the Overview and Scrutiny
Committee on the 23 May 2012, with observations in respect of capacity building and post transfer monitoring required to be taken into consideration.
The Policy was accordingly amended to reflect these desires.
2.3 An eight week consultation period, both web-based together with letters being sent to interested community groups closed on the 20 July 2012 with eight responses being received from a mix of Parish and Town Councils. Those responses were considered at the Asset Management Board meeting of the
30 July 2012 where there was agreement to take the policy forward for
Cabinet and Full Council approval. The responses varied with enquiries being made regarding a local list of the District Councils assets within individual areas to that of welcoming the principle of the policy.
2.4 The Policy was presented to the Overview and Scrutiny Committee hearing of the 25 September 2012 where it was recommended that it be forwarded to
Cabinet and then to Full Council for adoption.
3. Conclusion
3.1 A Corporate Plan aim is to support local communities in investing and becoming stakeholders in their areas. The Localism Act 2011 provides tools in this regard. The Council’s Annual Action Plan states that a protocol will be established to respond positively to approaches it receives from both public and third sector organisations wishing to take over the running of services and / or a community asset. The Policy will address the property element of these approaches.
Implications and Risks 4.
4.1 The adoption of a Community Asset Transfer policy with clear procedural guidelines should reduce the council’s corporate risk, as greater clarity will be provided to applicants, members and staff.
4.2 For those assets transferred, following this policy, the legal responsibility for assets will become that of the transferee whether by freehold transfer or long lease, in respect of maintenance and legislative responsibilities.
The majority of transfers will be on a leasehold basis where in essence there will be “arms-length” control. Whilst post transfer support will be provided, ultimately, in the case of failure the asset can be recovered.
Financial Implications and Risks 5.
5.1 The adoption of the policy should have no financial implications. The financial implications of acquisitions or disposals will be considered on a case by case basis with reference to the Asset Management Board at all stages and
Cabinet when making decisions on individual cases. There may be occasions where the Council will need to recover lost income or be involved in expenditure in respect of ongoing or agreed obligations. The policy does relate to disposals at less than best consideration for which there will be financial implications for the council.
86

6. Sustainability
6.1 It is hoped that the transfer of buildings into community ownership and management will ensure that buildings are used sustainably.
Equality and Diversity 7.
7.1 No equality and diversity implications have generally been identified in adopting this policy although it is recognized that on occasions a diversity impact assessment will need to be considered, particularly where premises may be used by or for target groups which may have some impact.
Section 17 Crime and Disorder considerations 8.
8.1 No section 17 crime and disorder considerations have been identified in adopting this policy .
87

88

Contents
3. Policy statement.
4. context
5. The Community Asset Transfer process.
Appendices
89

1. Background and Purpose
1.1. The purpose of this policy is to set a clear framework to enable asset transfer from the Council to Third Sector Organisations (TSOs) and ensure transfers are sustainable and successful in the long term. The policy recognises the Right to Bid and Right to Challenge provisions under the terms of the Localism act 2011. Due reference should be made to guidance available from both the Department for
Communities and Local Government (DCLG) and that of the Council’s relevant
Communities officers in respect of approaches received under those provisions. Also see 1.5 and 1.6 below.
1.2. The “Third Sector” is the voluntary sector of the economy which is neither public
(such as central or local government) nor private sector (such as private individuals or profit-making business). With the Big Society and Localism initiatives, it is the
Third Sector which is now being promoted as one of the most efficient and productive elements of a dynamic and healthy society. However, lower tiers of local government
(parish and town councils) are included within this initiative.
1.3. For the purposes of this policy, a community asset is defined as an asset owned by the District Council which is not held for investment reasons and not essential for operational purposes. It may include operational assets such as Tourist Information
Centres, Public Conveniences, Community Centres, Theatres and Sports Clubs.
Asset transfer can relate to freehold transfer but, more commonly, a long-term (over
25 years) lease.
1.4. An asset transfer decision will usually be a choice between:
•
Maintaining the status quo;
•
Commercial disposal on the open market;
•
Seeking the service and community benefits generated by a decision to transfer an asset to a TSO (Community Asset Transfer);
This policy relates to the situation when the last of these three choices is the appropriate one.
1.5. It is important not to confuse Community Asset Transfer with the provisions of the Localism Act relating to disposal of Assets of Community Value. Essentially, the
90

Localism Act will introduce a moratorium on sale of “Assets of Community Value” to allow community groups a right to make a bid (at open market value). The list of
Assets of Community Value will relate to both public and privately held assets. The government is in the process of producing guidance in relation to the relevant sections of the Act which have yet to come into force.
1.6. The Localism Act also provides the Community Right to Challenge which a right is provided in the first instance to community or voluntary groups to request taking on themselves the provision of services provided by the local authority. In some cases, there may be a relationship between taking on a service and related local authority assets. However, at this stage, this policy considers the process for discretionary community asset transfer outside of the provisions of the Localism Act 2011.
1.7 The term ‘community asset transfer’ relates primarily to long leasehold or freehold transfer in order that the asset may be used or managed by a TSO at less than ‘open market value’ e.g. transferred as a gift or leased for a peppercorn or below market rental.
2. Policy context
2.1. The 2006 Local Government White Paper confirmed the last Government’s intention to increase opportunities for community asset ownership and management, and promoted asset transfer as part of a local authority’s ‘place-shaping’ role. The
Secretary of State for Communities commissioned Barry Quirk, Chief Executive of the London Borough of Lewisham to carry out a review into the barriers preventing community asset transfer. It also indicated that a fund would be established to help with this, later announced as the £30 million Community Assets Fund managed by the Big Lottery Fund.
2.2. The ‘Quirk Review’s’ findings Making Assets Work were published in May 2007.
All the Review’s recommendations were accepted by the Government and published a week later as an implementation plan in Opening the transfer window: the government’s response to the Quirk Review . The Government’s plan for taking the review forward included an asset transfer demonstration programme with local authorities and their partners, a guide to managing risks in asset transfer and a series of regional awareness-raising workshops.
91

2.3. The Quirk Review found that a careful increase in the community’s stake in an asset can bring a wide range of additional benefits for the community, the organisation receiving the asset and the local authority facilitating the transfer. The benefits of community ownership and management can outweigh risks and opportunity costs.
2.4. The Government’s Empowerment Action Plan published in 2007 included actions relating to the transfer of assets and to a programme of support for community anchors, including the availability of further funding to support the development of anchors.
2.5. In July 2008 the Communities and Local Government White Paper “Communities in Control: real people, real power” confirmed ongoing support for the Quirk review, announced the establishment of a national Asset Transfer Unit, extended the
Advancing Assets programme by a further year and announced a £70m “Community
Builders” fund. The origins of this agenda go back to the ODPM’s 2003 Communities
Plan Sustainable Communities: Building for the future) . This acknowledged that sustainability is only possible where local communities play a leading role in determining their own future development.
2.6. The Localism Act was given royal assent in November 2011. The Government’s agenda is to continue and extend the previous government’s policy of asset transfer for community benefit. The Council’s Asset Management Plan will ultimately be adjusted to take account of the new Localism Act provisions (re Assets of Community
Value and the Community Right to Challenge mentioned above.)
2.7. As mentioned above, this policy does not concern “market value” transfers which are dealt with as part of the Council’s Asset Management Plan.
2.8. The Council has a long record of commitment to supporting community groups and the principles of Community Asset Transfer. The following local policy documents cite asset management and transfer to the third sector/partners as central objectives:
• The Corporate Plan
• The Asset Management Plan
92

3. Policy statement
3.1. The Council recognises that the way its physical assets are managed can have a positive impact on the long-term strength of the third sector and local communities more generally. Through asset ownership and management, TSOs can grow and become more secure, gaining access to sources of additional investment that the
Council itself may not be able to access. The aim is to ensure that the way assets are managed underpins the wider corporate aims and where appropriate, will use asset transfer as a means of enabling TSOs to become sustainable on a long-term basis.
3.2. The Council’s existing assets include land, buildings and other structures used for a variety of different social, community and public purposes. For some of these assets community management and ownership could deliver:
•
benefits to the local community; e.g. closer association and influence over the management of the facility making it more responsive to local needs with reduced overhead running costs (enabling fees and charges to be kept relatively low) ;
•
greater use of the facility with the potential to increase new social and economic opportunities for communities that extend their capacity to support localities and organisations where they live and improved health and other well being outcomes for the community.
•
benefits to the Council and other public sector service providers; e.g. improved levels of volunteering, civic participation, and engagement in positive activities in the area; reduced financial implications for the Council, including staff and asset overhead costs and business rates.
•
benefits for the organisation taking ownership; both financial and nonfinancial; e.g. charitable tax exemptions, improved access to funding opportunities at local, regional and national levels for both capital and revenue based support; accessible staff and/or volunteer learning and development opportunities as part of a career path; building partnership with other organizations and users to promote economic development and social enterprise.
3.3. Public assets are rarely used by everyone, their ‘value’ being locked-in to a particular use or a particular group of people. However, changing ownership or
93

management can offer such groups opportunities to capacity build in order to make assets and their services more accessible, more innovative, more flexible and more relevant to communities, increasing their value in relation to the numbers of people that benefit and the range of opportunities offered. Community-lead ownership can offer additional opportunities to secure resources within a local area and to empower local citizens and communities.
4.1. As Community Asset Transfers, under this policy, will be at under market value, community benefit will have to be demonstrated pursuant to s123 Local Government
Act 1972 as further refined by Local Government Act 1972: General Disposal
Consent (England) 2003.
4.2. Under this statutory guidance, community benefit is judged in terms of whether the disposal will secure the promotion or improvement of the economic, social and environmental well being of the inhabitants of the district. In these respects an assessment will be made of the TSO’s Business Plan, their experience/skills to deliver the Plan and to complement the Council’s Corporate objectives such as promoting tourism, environmentally sustainable economic growth and healthy lifestyles.
4.3. Independence of the TSO from the Council will need to be demonstrated in order to maintain clarity of roles and responsibilities in any partnership arrangements or agreements.
4.4. It is important to note that Community Asset Transfer will not involve a freehold transfer in most cases. Even in a situation where a TSO is a fully constituted charity with corporate status, a long lease at peppercorn rental will, in general, be the preferred option in relation to the use of valuable assets as a leasehold structure provides legal mechanisms through which the Council’s interests of provision of community benefit can be protected in the long term.
4.5. In cases where the organisation is an unincorporated association which is not registered as a charity, it is likely that the only appropriate option will be a shorter term lease (e.g. up to 15 years) but, again, with below market rental. The reason for this is that the Council would always wish to avoid the intractable legal problems
94

which can occur when land is transferred into the name of private individuals on trust for an unincorporated association. For example, if a property is held by a number of individuals as trustees, then upon their retirements or deaths the property must be formally assigned to new trustees. However, it is easy for small voluntary organisations to omit to take on such an onerous task of formal legal transfer (which can only take place by deed). This may ultimately lead to a situation in which all the original trustees retire or die and the true legal owner is untraceable. For this reason
(inter alia), any TSO which seeks to take a long lease or freehold, must first gain charitable status and/or incorporate as a not-for-profit company.
5 The Community Asset Transfer Process
The Council will consider requests for Community Asset Transfer in the following manner, via the Asset Management Board which will be reported to after each stage below;
•
Initial application and response (1&2)
•
Full application (3)
•
Agreement of Heads of Terms and Asset Management agreement
(4&5)
•
Cabinet Decision (6)
•
Legal Transaction (7)
There are seven key stages in this application process including the requirements on an applicant together with an eighth stage which is in respect of post transfer, as set out below:
Stage 1: Initial application
A TSO which believes it could successfully take over and run a Council-owned property should submit an initial application and expression of interest to the Head of
Service for Assets. They should use the application form shown in Appendix I or submit a more informal request. An informal request will probably be no more than 2-
3 sides of A4 and it should contain the following information.
•
Name of Organisation
•
Contact
•
Address for correspondence
•
Telephone
•
Email
•
Status of organisation (charity, club, new group)
•
Charity or Company registration number
•
Date when organisation established in present form
95

•
Governance arrangements (e.g. constitution set or rules etc.)
•
Proposals for incorporation, registration as CIC or application for charitable status (if these have not yet been achieved).
•
Number members
•
Number of members of management committee
•
Number of staff/volunteers
•
Insurance policy/public liability/professional indemnity levels of cover
•
Details of lease and name of current trustees (if currently a sitting tenant holding as unincorporated association)
•
A short statement saying why the asset is needed
•
If the applicant is a sitting tenant, a statement saying why an extended lease or freehold transfer is needed
•
Future objectives upon transfer
•
Details of indications of support from sponsors.
Stage 2: Initial response
All initial applications will be report to the Asset Management Board with a recommendation to continue or to reject, providing reasons for rejection which will be shared with the applicant.
If the Asset Management Board agrees that the proposal has merit, the applicant will be asked to submit a full application.
Stage 3
Full application
A full application to be submitted by a TSO will include the following:-
1) A statement of objectives (a mission statement for the organisation).
2) Full details of legal form of the organisation (NB for consideration of a grant of a long leasehold interest of over 15 years, it must have corporate or charitable status or both).
3) Details of the asset applied for and the holding sought with reasons including details of funding and external funding commitments or opportunities.
4) A for the whole organisation (not just a specific project) demonstrating the following:-
How asset will be used
•
A summary of wider benefits for the organisation, the public and the Council.
•
Stakeholders engaged in current and future management and use of the asset
•
Core activities and services delivered currently
96

•
Proposed projects, activities and actions that will be developed through future management of the asset
•
Organisational management (structure, number, posts both paid and voluntary)
•
Experience and track record including experience/expertise of management board etc.
•
Robustness of governance structure (in place or being developed)
•
Details of partnership working if any
•
Community involvement and engagement currently and in the future
•
User involvement (including membership information, age profile of users, public use, educational use)
•
Financial projections including a three year cash-flow forecast, projected income and investment (grants/loans) including any relating to development of the asset and consideration of overheads such as utilities and business rates
•
Analysis of funding opportunities with realistic assessment of risk
•
Projected facility user numbers and rates of use over three year period
•
Effective management of the asset (bookings, health and safety, repair and maintenance)
•
Professional advice or details of advisers to be used and how this will be funded
5) Sitting tenants should additionally demonstrate:
•
Effective management and maintenance of the asset to date
•
Last three years’ accounts
•
Sufficiently wide and diverse membership
•
Effective bookings system
•
Suitable occupancy agreements for any third party use
Stage 4: Consideration, valuation and negotiation
Following submission of a full application, the Head of Service for Assets will appoint a member or members of his/her team to correspond with the TSO to consider professional valuation of the asset (if that is deemed necessary and, if so, how the valuation is to be funded) and to draft Heads of Terms. The Council will also arrange for an internal title report to be produced to identify any legal issues such as restrictive covenants which may affect the asset.
97

While stated briefly, this stage will probably be the longest in duration. It may take several months to complete and involve significant, detailed work and correspondence. If it is not possible to agree Heads of Terms, the reasons will be given to the applicant and alternatives (such as short term lease or licence) will be explored. By way of additional policy guidance, in assessing the merits of the application and negotiating Heads of Terms, the Council will ask itself the questions set out in the Appendix J below.
Stage 5: Report to AMB
If Heads of Terms are agreed, the Head of Service for Assets will submit a report to the Asset Management Board containing the full application and the business plan with recommendation as to the specific details of the proposed asset transfer which have been provisionally agreed with the TSO i.e. heads of terms, leasehold conditions, asset-lock proposals etc.
The Asset Management Board will consider the report and decide whether the transfer should proceed and add further conditions, or not as it deems necessary.
In the event that the AMB recommend the proposed asset transfer, a report will be submitted to Cabinet recommending that authorisation is granted to proceed.
The impact on Council resources needs to be assessed by the Asset Management
Board. This might include:
•
The level of initial and ongoing support/advice required from services e.g.
Property, Legal, Environmental, Planning
•
Any capital contribution, match funding or loans required
•
Initial involvement in setting up a legal trust body, social enterprise or legally constituted community group
•
Ongoing obligations that may fall to the Council under the terms of a Lease and associated costs that it incurs as a result of those obligations
•
Consideration of an exit strategy in the event that the asset transfer fails.
Stage 6: Report to Cabinet
Cabinet will consider the report and add any conditions they deem appropriate or not and, should they agree with the recommendation will provide delegated authority to the Council’s Legal and Democratic Services Manager to carry out the transaction.
98

Stage 7: Legal transaction
The applicant will be informed of the Cabinet’s decision and in the event that the decision is to proceed with transfer, the legal process of Asset transfer will be carried out between the Council’s lawyers and the applicant TSO’s lawyers. Again, while simply stated, the legal process may take several months depending on the complexity of the title or proposed lease and the readiness of the applicant to engage in the legal process that is required for transfer of the asset to be completed.
Stage 8: Monitoring and Support
Once completed, the performance of the applicant TSO will be monitored with advice and support provided when deemed necessary to assist and enhance its future and viability.
99

Appendix I: Application form
Name of Community Group or Organisation
Contact address
Email
Telephone number (s)
Status of organisation
(charity, club, new group)
Charity and/or Company registration number
Date when organisation established in present form
Governance arrangements
(e.g.
constitution set or rules etc.)
Proposals for incorporation, registration as CIC or application for charitable status (if these have not yet been achieved)
Accounts available (Y/N)
How many years accounts?
Number of members
Number of members of
100

management committee
Number of staff/ volunteers
Insurance policy/public liability/professional indemnity levels of cover
Details of lease and name of current trustees (if currently a sitting tenant holding as unincorporated
If the applicant is a sitting tenant a statement saying why an extended lease or freehold transfer is needed
Future objectives upon transfer
Details of indications of support from sponsors
Any other relevant supporting information
A short statement saying why the asset is being requested for transfer
101

Appendix J
Assessment of application
•
Is it part of long-term support to / engagement and partnership with the third sector?
•
Is it sustainable in the long term (for both the TSO and the Council) and are the terms and conditions imposed upon the TSO not unduly onerous but reasonable and affordable (TSO governance arrangements, robustness of Business Plan and terms of any Service Level Agreement)?
•
Does it complement the Council’s corporate strategy and priorities, allowing a comparison with open market disposal?
•
Does the assessment of the TSO’s Business Plan identify clear economic, social or environmental outcomes and demonstrate the TSO’s ability and experience to deliver these?
•
Can the community benefit be demonstrated under the Local Government
Act 1972: General Disposal Consent (England) 2003, if the Council is considering disposal for less than open market value?
•
Does the TSO have policies and commitment towards actions on staff/volunteer training and development, safeguarding children, equalities and climate change, or is seeking to provide to meet the conditions of asset transfer?
•
Has the proposed transfer been appraised alongside the options of - (i)
Maintaining the status quo; (ii) Expenditure on other services made possible as a result of a decision for ‘commercial’ disposal?
•
What are the risks of service failure, TSO failure, misuse/disuse of assets, premature changes to any proposed SLA and what is the exit strategy that is in place and the best possible transfer type (leasehold, freehold), if still appropriate?
102

Agenda Item No____14________
PERFORMANCE MANAGEMENT – DELIVERY OF ANNUAL ACTION PLAN
2012/13 QUARTER 2
Summary:
Conclusions:
Recommendations:
The purpose of this report is to give a mid-year review of the progress in delivering the Annual Action Plan 2012-
13. 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.
The delivery of the Annual Action Plan 2012/13 is progressing to plan. Any areas of concern have been outlined in this report and where necessary details given of progress to date and action being taken are attached in the form of briefing notes presented as appendices to this report. In addition, reports on progress of major projects are also included in the appendices as appropriate.
It is recommended that the rate of take up of new designated employment land (indicator J 005) be reported on an annual basis instead of quarterly as originally agreed at Cabinet in May 2012. See paragraph 2.14 for details.
Cabinet Member(s) Ward(s) affected
All All
Contact Officer, telephone number and email:
Helen Thomas, ext. 6214, Helen.thomas@north-norfolk.gov.uk
1. Introduction
The purpose of this report is to give a mid-year review of the progress in delivering the Annual Action Plan 2012-13. It gives an overview for each theme, a progress report for each objective, 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 your approval at your meeting in November 2012. Detailed progress reports for each activity in the Annual Action Plan 2012-13 are given in Appendix K . Detailed data and management progress reports for each performance indicator and measure are given in Appendix L .
1
103

Report
Activities
2.1 A new business start up proposition was submitted to Cabinet in September
2012 which was approved. The proposed scheme, called Enterprise North
Norfolk, is currently going through a procurement process with a start date targeted for 1st December 2012.
2.2 A draft consultant’s report was received in September 2012 on Retail and
Leisure Demand, Feasibility and Capacity Study for North Walsham.
Consultants have been engaged in investigations on the possible contribution of the Council's assets to facilitate investment in North Walsham. They are due to report towards the end of 2012.
2.3 The Council continues to undertake an ambitious work programme in support of the further development of the Renewable Energy sector. The Sheringham
Shoal offshore wind energy scheme was formally launched at a major event on Thursday 28th September attended by the Chief Executive and Deputy
Leader of the Council. SCIRA is also in the process of developing its future
Operational and Maintenance (O&M) facility at Egmere, south of Wells, which is scheduled for completion early in 2013. Licence approval has been granted for the development of two further offshore wind energy schemes off the North Norfolk coast - i.e. the Dudgeon and Race Bank proposals and the
Council and its partners are in discussions with the promoters of these schemes to understand the potential benefits which might be realised for the
North Norfolk District from these investments. The Council has developed its relationship with local partners in support of offshore wind energy developments through the North Norfolk Renewables Group and is in the process of developing an inward investment website promoting the benefits of the North Norfolk area for O&M investment in support of these further offshore developments.
2.4 The FLAG (North Norfolk Fisheries Local Action Group) remains confident that full European Fisheries Fund (EFF) allocations will be met by the end of
2013. The programme has been delayed through claim processing issues at the Marine Management Organisation. However, a number of expressions of interest are being progressed to full application with two projects authorised for delivery. Progress reports for each project in the FLAG programme are shown in Appendix O.
2.5 Working with the North Norfolk Business Forum, a report has been written by consultancy firm WLP offering a snapshot of current business skills needs.
This report has been presented to the Skills Partnership Board and the North
Norfolk Business Forum Board. This will inform a training programme for the rest of the 2012/13 year which will be coordinated by the Learning for
Everyone Team.
2.7 In partnership with the North Norfolk Business Forum discussions are underway with a commercial bank to set up a scheme that will support the micro financing needs of businesses. It is expected that a discussion document will be presented to Cllr Fitzpatrick, Economic portfolio holder,
2
104

followed by wider consultation with partners. It is planned to make significant progress in gaining bank support by the end of March 2013 with a view to being operational some time during 2013.
2.8 The BDUK contract was signed with BT in September 2012 with expected rollout of broadband in Norfolk beginning 2013.
2.9 A review of all our business regulatory functions to ensure we are focused on local business need was planned to start in quarter 1. This has not started yet pending implementation of new management arrangements. The management structure is now complete and we anticipate this work will be starting during quarter 3 with a view to reporting progress and proposals during quarter 4.
2.10 The Council's web pages are being developed to support inward investment.
The pages are currently being tested with an anticipated launch date of
December 2012.
2.11 A Cabinet Report has been drafted to present the proposed business plan of the new Destination Management Organisation (DMO) for the North Norfolk coast and countryside and to recommend the resources and financial support that the Council can offer in the next three years of their operation. This will be considered as a key decision at Cabinet in December 2012.
Performance Indicators and Measures
2.12 Ongoing support is being provided to local businesses which have contacted the Economic Development team for assistance. 22 businesses have been supported against an expected target of 12. The service includes business advice, training and signposting to other relevant providers.
2.13 Assisting economically active people into work continues to be very hard in the current economic climate because of the lack of available jobs. However,
35 people have been assisted into work so far this financial year. This is in the context of providing 42 support sessions for individuals being made redundant.
2.14 It is proposed that the rate of take up of new designated employment land
(measure J 005) be reported on an annual basis. Quarterly monitoring would require quarterly inspection of sites. The rate of change of take up of employment land does not change significantly on a quarterly basis but it is important to measure medium and long term trends. Therefore it is recommended that this is an annual activity.
2.15 No loans & grants under the Coastal Pathfinder scheme were applied in the first quarter when they were only available to 90 businesses which have signed to the Pathfinder Business Advice project. During the second quarter when it became available to more businesses in the coastal areas numbering around 200, three applications were considered but only one actually made it to appraisal and was refused. From January 2013 the loans will become available to all businesses in the district so it is expected that there will be more applications for loans. Whilst our aim is to be able to apply the loans to as many businesses as possible, there should be a minimum percentage of the funds remaining in each quarter that can be applied as loans. The target
3
105

percentage currently stands at 20%. At the moment, since no loans are being applied, the funds remain at 100%.
Activities
2.16 The housing strategy has now been adopted (in three parts) and an enforcement policy presented to October Cabinet. An updated housing allocation policy is due to be presented to Cabinet in December. The monitoring of the strategy will be undertaken by a newly configured Housing and Planning Policy Board.
2.17 A schedule of stalled sites has been prepared and the reasons for delay are currently being collated to establish whether there are further interventions or mechanisms by which the Council can bring forward development more quickly. A consultation paper has recently been released by central government titled Renegotiation of Section 106 Planning Obligations which is proposing that local authorities can be asked to formally renegotiate the terms of all planning obligations agreed on or prior to the 6 April 2010. The current assessment is that there are no sites this would relate to in North Norfolk.
2.18 Action on bringing empty homes back into use has been delayed due to the need to ensure information was up to date. A new data report providing details of properties which have been empty for at least 6 months is now available, which along with the Housing Services Restructure will enable the
Council to focus its action on bringing empty homes back into use. The
Empty Homes Policy which sets out the Council's approach to bringing empty homes back into use and includes the Empty Homes Procedure is being considered by Cabinet in December with a recommendation for approval by
Full Council. This will be supported by the Housing Renewal Policy which will be considered by Cabinet in December (with a recommendation of adoption by Full Council) and also by current work on the use of a discretionary premium for long term empty homes will complete the establishment of a set of effective tools to support the Council's activities in bringing empty homes back into use.
2.19 A report to December Cabinet will be submitted to update on the Compulsory
Purchase Order (CPO) Pilot to bring empty homes back into use.
2.20 Consultants have been appointed to undertake infrastructure and viability assessments which will be required as evidence to support the introduction of a Community Infrastructure Levy (CIL). A draft report is expected by the end of November 2012, which will be considered by the Planning Policy and Built
Heritage Working Party with stakeholder consultation planned for early 2013.
A draft CIL charging schedule will then be produced and submitted for independent examination by an appointed planning inspector.
Performance Indicators and Measures
2.21 Draft development briefs have been prepared on two of the allocated sites in
Fakenham and Stalham and have been subject to public consultation. A draft brief for the large allocation at Holt (site H09) will be submitted to the Council and available for public consultation in early November 2012.
4
106

2.22 Work is underway on residential development site C17 at the Railway
Triangle, Norwich Road, Northrepps, which will deliver 50 houses, including
16 affordable houses. Work is understood to be about to commence on site
HV03 at Hoveton in respect of 120 houses including 54 affordable houses.
There have been 8 affordable housing completions so far this year. Affordable
Housing completions take place throughout the financial year, for 2012/13 the majority of completions are planned to take place in quarter 4.
2.23 £2.4m funding has been secured from the Local Economic Partnership (LEP)
Growing Places Fund for infrastructure investment at a key site in North
Walsham. A meeting is planned during November to review progress. Are port will be prepared for January 2013.
2.24 The methodology has been agreed for measuring the estimated worth (£) of investment secured in new infrastructure (H 009). This will be the financial value of contributions, excluding County Council contributions, secured through Section 106 agreements/Community Infrastructure Levy contributions. Measured after legal agreements have been signed. To date this year this amounts to £317,200.
Activities
2.25 The 31st Graham Allen Awards for Conservation & Design in North Norfolk were once again a resounding success. The awards were decided in August and the formal ceremony took place on 8th October 2012.
2.26 During the second quarter substantial progress was made with the Cromer and Walsingham Conservation Area Appraisals with public consultation carried out in Cromer and a draft document prepared for Planning Policy &
Built Heritage Working Party consideration on 8th October 2012. Cromer conservation area management plan should be adopted by the Council at the
Cabinet meeting in November 2012. The objective is still to deliver adopted
Appraisals for Wells, Walsingham and Sheringham by the end of March 2013.
2.27 As can been seen in Appendix L (indicator C 007) the clearing of fly tipping on public land is still an issue. Although performance has improved from previous quarters the issue has been raised with Kier as part of the contract management meetings and an improvement plan is being worked up to identify what the barriers are, and to ensure that this response time improves.
This work is being looked at by Environmental Services and Environmental
Protection (EP) team. A new contract manager is now in place with Kier and it is expected that he will deal with these operational issues and deliver improvements. The EP team work closely with Environmental Services and
Kier to try to deal with any issues that arise, and a member of the EP team sits in on the supervisors meetings to try and address the issues.
2.28 A Local Government Association (LGA) Planning Peer Challenge, supported by a benchmarking exercise for the Development Management Service has been arranged to take place during the autumn with the on-site visit planned for January 2013.
5
107

2.29 An integrated approach to coastal management was approved by Cabinet in
September 2012. The Coastal Issues Forum workshop in September helped to inform that approach. Funding has been secured (from external sources) to undertake a study to inform the future management options of our coast.
Work streams have been identified and further work in identifying resources for implementation is being undertaken.
2.30 The Kelling to Lowestoft Ness Shoreline Management Plan is adopted.
2.31 Funding has been agreed for the Cromer Coast Protection Scheme and design consultants have been procured.
2.32 The Cromer to Winterton Study will provide the framework for future coast protection schemes as well as identifying funding opportunities.
Performance Indicators and Measures
2.33 A target of responding to all fly tipping and other pollution complaints within 2 working days has been set. This includes:
- 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.
The percentage of waste related cases responded to within 2 days is
80.33%. There continue to be issues over collection of fly tips on public land by Kier. This accounts for 35.7% of the work received and at quarter end
52.86% was cleared within 2 days. The average time to clear is currently 3.1 days.
98.76% of Nuisance cases were responded to within two days and 94.12% of
Drainage cases. This equates to 2 Nuisance and 1 Drainage case not being responded to in time.
2.34 Environmental Services have continued to use the rectification and default procedure within the contract to resolve service delivery failures by
Kier. However, Kier's performance has improved during quarter 2 compared to quarter 1. General cleansing performance is good as reflected by the 5 star award the Council achieved for the cleanliness of the district at the Clean
Britain Awards in September 2012.
2.35 The use of fixed penalty notices (indicator C 008) is just one method of dealing with the small scale envirocrimes such as dog fouling and littering,
However, they are not available for use in what are considered more serious offences such as fly tipping. Please see note at Appendix M for further information.
2.36 With regard to the processing of planning applications, 5 major applications were determined during the second quarter, but with 4 over the 13 week target. Performance improved slightly for minor and other applications, but remained below 40% and 57% respectively. Authority was given by Cabinet to recruit 2 temporary staff to assist with workload and improve performance and recruitment is underway.
6
108

Activities
2.37 A draft community asset transfer policy was approved by Overview and
Scrutiny in September 2012 and is expected to be approved by Cabinet in
October. A process for consideration of community proposals under the
Localism 'Right to Challenge' are under development and have been signposted on NNDC's website.( www.northnorfolk.org
)
2.38 Meetings with Town Councils are taking place and workshops with Parish
Councils will be arranged as appropriate.
2.39 A new opportunity has arisen to participate in another multi agency bid being led by Norfolk County Council for Warm and Well funding. An application for funding from the Department of health has been submitted for £349,000 of funding County wide. A decision is expected in November 2012.
2.40 Voluntary Norfolk are delivering workshops, advice and support sessions in accordance with the Service Level Agreement to deliver community planning and for community and voluntary sector capacity building. Regular meetings are held to monitor progress. A first quarter progress report will be available at the end of October.
2.41 Ongoing work is taking place with the Leadership of Place Board. The updated position can be found at 2.2
2.42 Expressions of interest for local communities to initiate, develop and manage projects have been received and discussions are on-going (e.g. in relation to assets in Cromer and Fakenham).
Performance Indicators and Measures
2.45 The Big Society Fund has been established and is supporting the development of local community projects (see AAP - L C 02). For the
September round 33 applications totalling £193,865.16 were received for grants under £10,000. 7 were funded totalling £32,430. Applications totalling
£107,038.16 were refused or not awarded the full funding requested. Three applications totalling £21,000 were withdrawn and seven applications totalling
£33,397 were deferred.
Five applications totalling £184,866.78 were received for grants over £10,000.
Two capital awards totalling £22,000 were made. A full award of £12,000 was made to the National Coastwatch Institute, Mundesley. Erpingham PC had requested £87,300 towards a multi use games area. An award of £10,000 was made subject to remaining funding being secured. Two awards totalling
£48,216.78 were withdrawn and an award of £37,350 was deferred.
An interim report on The Big Society Fund will be considered by Overview and Scrutiny Committee on 21 st
November 2012. The deadline for applications to the third round is 9th November 2012.
7
109

Activities
2.46 No high priority recommendations have been made for the current audit plan and all previous high priority recommendations have been implemented.
Some medium recommendations are outstanding. The half yearly follow up review will be carried out on 18 and 19 October which will inform the progress report to the Audit Committee in December. Where recommendations have been superseded, i.e. due to a change in a system or other controls have since been implemented these will require sign off from Deloittes. In addition revised deadline dates are to be agreed as part of the follow up process.
2.47 The process for producing the first quarter progress report for the Annual
Action Plan 2012/13 was implemented. There have been some problems with this new process which have been reviewed in time for implementing the process to produce the second quarter report.
2.48 Various interrelated strands of work including the constitution, delegations and the new standards regime are all due to be completed by the end of
March 2013. The new constitution is due to be taken to the Constitution
Working Party in November 2012 and Full Council in December 2012.
2.49 The plan to place the WEB at the heart of all we do is on track with some tasks already completed. The staff briefings held on 2/3/4 October
2012 included a session on the web development project to explain the benefits to the organisation and its customers.
2.50 An initial draft of the Customer Access Strategy is being produced and those associated projects which were due to start are underway.
2.51 The review of senior management arrangements is complete. Appointments have been made to the remaining 2 Heads of Service posts who started on 8
October 2012.
2.52 Services will be identified for review as part of the financial strategy for
2012/13. Reviews that are currently being undertaken or planned for include; a peer review of regulatory and enforcement services, a review of contracts supporting provision of sports and leisure and a peer challenge of the planning service.
2.53 A discussion paper for a project to consult with residents through a Place
Survey has not yet been prepared as planned but is due to be delivered to the
Corporate Leadership Team (CLT) in October 2012.
2.54 There have been performance issues with the new Civica Revenues and
Benefits system for staff based at NNDC. Whilst there has been some improvement in the position during August and September there remain some concerns and a backlog of work has built up, with attempts made to reduce the backlog through weekend working and agency staff. The implementation plan is being amended to deal with the implementation issues. A full report has been presented to the Revenues and Benefits Joint Committee on 26th
8
110

September 2012 including action being taken. A précis of this report is included in Appendix K.
2.55 Opportunities for working in partnership are being explored/reviewed/initiated in the following areas:-
- Revenues and benefits
- Building control
- Planning peer review
- Options for coastal management
- A review of the delivery model for the Tourist Information Centres in Wells,
Holt and Sheringham has commenced. Discussions have taken place with the relevant Town Councils and other appropriate community groups. Proposals in relation to Sheringham and Wells are currently being developed.
2.56 The financial strategy will be presented to Cabinet in November. There is still a significant amount of uncertainty around the future government funding levels from 2013/14 onwards due to the changes to the funding mechanism from a system of grant and redistributed business rates to a new system of grant and locally retained business rates. The financial strategy will present an overall financial projection, however it will be subject to a number of caveats in terms of the sensitivities around external funding. The detailed service budgets will continue to be worked upon over the coming months.
Whilst there have been some problems in quantifying the impact of the new funding regime, zero council tax increases have been assumed in the financial forecasts, the timetable for presenting the budget for approval is still anticipated to be achievable, although this is subject to the announcement of the provisional local government finance settlement, date yet to be announced.
2.57 There has been considerable progress in the past year in the area of Civil
Contingencies. A copy of the progress report recently presented to the
Performance and Risk Management Board on 12 th
October 2012 is attached as Appendix N .
Performance Indicators and Measures
2.58 87 days have been delivered of the total 212 planned audit days for this year, slightly below that expected by this stage. It is currently anticipated the full plan will be met this financial year.
2.59 The sickness absence figure is higher than quarter 1 and 2 of 2011/12 (1.81) but is still much lower at this point than in previous years. There were 6 cases of long term sickness during quarter 2. Of these, 3 have returned to work.
2.60 There is a year to date variance of £74,978 underspend compared to the profiled budget at 31 September 2012. Based on the overall position at the end of period 6 an underspend of £30,552 is forecast for the year. Details are provided within the period 6 budget monitoring report included within the
November Cabinet Agenda. The revised budget is currently being produced for approval by Council in December.
9
111

4. Conclusion
The delivery of the Annual Action Plan 2012/13 is progressing to plan and should be delivered largely as envisaged. Any areas of concern have been reported in this report and where necessary details given of progress to date and action being taken is given in briefing notes presented as appendices to this report. In addition, reports on progress of major projects are also included in the appendices where necessary.
5. Implications and Risks
5.1 Prompt action to deal with any performance issues identified by this report will reduce the risk to delivery of the Annual Action Plan 2012/13 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.
5.2 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.
6. Financial Implications and Risks
See section 5 above.
7. Sustainability
There are no sustainability implications of this report.
8. Equality and Diversity
There are no equality and diversity implications of this report.
9. Section 17 Crime and Disorder considerations
There are no Section 17 Crime and Disorder implications of this report.
10
112

[If you have access to the Council’s network you can click on the activity name to view more information]
Increase the number of new businesses and support the growth and expansion of existing businesses
Activity Status Progress/ Action Note
AAP - 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
Whilst contacts remain commercially sensitive at the present time there are a number of examples of where the
Council has offered advice and support to developers/investors proposing investment in the district during quarter 2.
AAP - J A 02 - We will work with partners to develop and deliver a programme of business start up support
AAP - J A 03 - Working in partnership we will maximise the opportunities for investment in the district through the development of allocated town centre retail sites.
AAP - 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 - J A 05 - We will work with regional partners to realise the benefits of Rural Growth Network status for North Norfolk
AAP - J A 06 - We will support the
North Norfolk Fisheries Local Action
Group (FLAG) in delivering projects from the £2.4 million funding secured for the fishing sector
On Track
On Track
On Track
Cancelled
Some problems
New start up proposition submitted to Cabinet in
September 2012 which was approved. Proposed scheme called Enterprise North Norfolk is currently going through a procurement process with a start date targeted for 1st
December 2012.
Retail consultants have provided a draft report and discussions are being held with key stakeholders prior to the report being made public. This is due to be reported to
Cabinet in November 2012.
Property consultants are in the process of establishing options and a strategy for interventions in North Walsham which will apply to other locations later, as appropriate.
The Council continues to undertake an ambitious work programme in support of the further development of the
Renewable Energy sector. The Sheringham Shoal offshore wind energy scheme was formally launched at a major event on Thursday 28th September attended by the
Chief Executive and Deputy Leader of the Council. SCIRA is also in the process of developing its future Operational and Maintenance (O&M) facility at Egmere, south of Wells, which is scheduled for completion early in 2013. Licence approval has been granted for the development of two further offshore wind energy schemes off the North Norfolk coast - i.e. the Dudgeon and Race Bank proposals and the
Council and its partners are in discussions with the promoters of these schemes to understand the potential benefits which might be realised for the North Norfolk
District from these investments.
The Council is committed to work with regional partners to realise the benefits of Rural Growth Network status for
North Norfolk. Despite a considerable amount of support and effort by partners and the New Anglia LEP for Norfolk and Suffolk were not successful in gaining support through this programme at a national level.
FLAG programme has been delayed through claim processing issues at the Marine Management
Organisation. However, a number of expressions of interest are being progressed to full application with two projects authorised for delivery. Spend profile is now six months behind schedule. However, the partnership remains confident that full European Fisheries Fund (EFF) allocations will be met by the end of 2013.
11
113

Activity Status Progress/ Action Note
AAP - J A 07 - 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
On Hold
Enterprise hub funding is available to support training and skillls centre development in the District. This project is contingent on other partners and should be taken forward in 2013.
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 - 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
In the first half of 2012/13 we have engaged with 213 unemployed people. Of these 57 had no qualifications and 23 had degrees. We continue to work with Victory
Housing on their bespoke support package.
AAP - 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
AAP - J B 03 - 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
On
Track
On
Track
A number of small redundancies are affecting the
District. The Cromer Crab closure has been by far the most significant. Learning 4 Everyone continues to work with the client group and many are finding new work.
Courses are being organised to equip individuals with key employability skills. Working with the North Norfolk
Business Forum, a report has been written offering a snapshot of current business skills needs. This will inform a training programme for the rest of the 2012/13 year.
AAP - J B 04 - 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
On
Track
The National Apprenticeship Service has been in contact about extending take up of apprenticeships in
North Norfolk. We are awaiting dates for a possible meeting. In addition we are working with the new
County Council initiative which offers a wage incentive of up to £10,000 for taking on an apprentice in certain key sectors.
Reduce burdens to business by removing unnecessary red tape and bureaucracy at the local level
Activity Status Progress/ Action Note
AAP - J C 01 - We will develop a comprehensive package of support and provide information to simplify the process for businesses looking to invest in North Norfolk
On
Track
Support has been provided to a number of developers / investors re proposals being developed in the district (see activity AAP - JA01 above), with the Council's actions being coordinated, key officer contacts being identified so that there is corporate understanding of proposals and timely and good quality advice provided. We have developed the Council's web pages to support inward investment to testing stage with an anticipated launch date of December 2012.
AAP - J C 02 - We will ask users of our training, business support and advice services for their feedback and improve future service delivery to meet business needs
AAP - J C 03 - We will review our procurement policies to maximise the opportunities to source goods and services locally
Not
Started
On
Track
This activity will be progressed in quarter 3.
Following the local procurement conference a guide to local procurement is in the process of being produced. Purchasing policies will be reviewed later in the year when the Procurement
Strategy is updated.
12
114

Activity Status Progress/ Action Note
AAP - J C 04 - We will work with partners to roll out BDUK's £60m
Norfolk Broadband Initiative across
North Norfolk
On
Track
BDUK contract signed with BT in September 2012 with expected rollout beginning 2013.
AAP - J C 05 - We will review all of our business regulatory functions to ensure we are focused on local business need.
On
Hold
We had planned to start a review of all our business regulatory functions to ensure we are focused on local business need during quarter 1. The management structure is now complete and we anticipate this work will be starting during quarter
3. Due to prepare first report during quarter 4.
Promote a positive image of North Norfolk as a premier visitor destination
Activity Status Progress/ Action Note
AAP - J D 01 - We will develop and implement new marketing initiatives which use digital and remote technology to promote North Norfolk to visitors and tourists
AAP - J D 02 - We will support and facilitate the establishment of a 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
Improve access to funding for businesses
Activity
On
Track
On
Track
Status
AAP - J E 01 - We will support the roll-out of the
Coastal Pathfinder and Fishing Sector Business
Loans and Grant Schemes and consider the opportunities of extending these programmes across a larger area
Not
Started
We have developed the Council's web pages to support inward investment to testing stage with an anticipated launch date of December 2012.
A Cabinet Report has been prepared to present the proposed business plan of the new DMO and to recommend the resources and financial support that the Council can offer in the next three years of their operation. This will be considered as a key decision at Cabinet in
November 2012.
Progress/ Action Note
Review of Coastal Pathfinder loans and grants to be undertaken in quarter 3 prior to considering options for wider roll out across the district.
AAP - J E 02 - 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
On
Track
In partnership with the North Norfolk Business
Forum discussions are underway with a commercial bank to set up a scheme that will support the micro financing needs of businesses. It is expected that a discussion document will be presented to Cllr Fitzpatrick, Economic portfolio holder, followed by wider consultation with partners. We would hope to have made significant progress in gaining bank support by the end of
March 2013 with a view to being operational some time during 2013.
13
115

Increase the number of new homes built within the District and reduce the number of empty properties
Activity Status Progress/ Action Note
AAP - H A 01 - We will bring forward detailed proposals on allocated sites by better engagement with developers
AAP - H A 02 - We will produce development briefs on 4 of the allocated sites
On Track
On Track
AAP - H A 03 - We will seek to increase the number of new homes built of all tenures to
250
On Track
AAP - H C 01 - We will encourage the development of neighbourhood planning by supporting Holt Town Council in a pilot scheme to produce a neighbourhood plan.
On Track
A schedule of stalled sites has been prepared and the reasons for delay are currently being collated to establish whether there are further interventions or mechanisms by which the Council can bring forward development more quickly. A consultation paper has recently been released by central government titled Renegotiation of Section 106
Planning Obligations which is proposing that local authorities can be asked to formally renegotiate the terms of all planning obligations agreed on or prior to the 6 April 2010, the Council is currently assessing how many sites this would relate to in
North Norfolk.
Draft development briefs have been prepared on two of the allocated sites in Fakenham and
Stalham and have been subject to public consultation. A draft brief for the large allocation at
Holt (site H09) will be submitted to the Council and available for public consultation in early November
2012.
A schedule of stalled sites has been prepared and the reasons for delay are currently being collated to establish whether there are further interventions or mechanisms by which the Council can bring forward development more quickly. A consultation paper has recently been released by central government titled Renegotiation of Section 106
Planning Obligations which is proposing that all planning obligations agreed on or prior to the 6
April 2010, the local authority can be asked to formally renegotiate the terms one month after the introduction of new regulations. The Council is currently assessing how many sites this would relate to.
Funding was successfully secured to pilot the development of a neighbourhood plan at Holt and this is being led by Holt Town Council with advice and guidance being provided by the Council's
Planning Policy Manager. A neighbourhood planning seminar was held for all Town and Parish
Councils on 25 April 2012 and follow up discussions have been held with 6 parish councils as a consequence. However the Council is currently focusing its resources in supporting the pilot scheme.
AAP - H C 02 - We will encourage further neighbourhood plans to be developed by holding a neighbourhood planning seminar for town and parish councils.
Completed
Successfully
Seminar for Parish Councils held on 25th April
2012; follow up discussions with half a dozen town
/ parish councils on process, benefits, outcomes.
14
116

Activity
AAP - H E 01 - We will undertake and evaluate a pilot Compulsory Purchase
Order project to bring long term empty homes back into use
On Track
A report to November Cabinet will be submitted to update on the Compulsory Purchase Order (CPO)
Pilot to bring empty homes back into use. Of the 3 properties, one property has been occupied but this may not be the case. Enforcement action on the remaining 2 properties has brought around improvements in appearance. Intervention of
Environmental Health and Housing has led to repairs being carried out on one of these 2 properties with neighbours contributing to costs which are shared responsibility.
AAP - H E 02 - We will support owners to bring at least 40 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, take enforcement action as required.
Some problems
Action on bringing empty homes back into use has been delayed due to the need to ensure information was up to date. A new data report providing details of properties which have been empty for at least 6 months is now available, which along with the Housing Services Restructure will enable the Council to focus its action on bringing empty homes back into use. The Empty Homes
Policy which sets out the Council's approach to bringing empty homes back into use and includes the Empty Homes Procedure is being considered by Cabinet in October with a recommendation for approval by Full Council. This will be supported by the Housing Renewal Policy which will be considered by Cabinet in November (with a recommendation of adoption by Full Council) and also by current work on the use of a discretionary premium for long term empty homes will complete the establishment of a set of effective tools to support the Council's activities in bringing empty homes back into use.
Increase the number of affordable homes with a range of tenure types
Activity Status Progress/ Action Note
AAP - H B 01 - We will undertake a complete review of our housing strategy to ensure that we take full advantage of opportunities within the Localism Act and are maximising our influence over housing growth.
Activity
Status
On
Track
AAP - H B 02 - We will evaluate our approach to viability assessments to maximise development opportunities.
Secure investment in new infrastructure
On
Track
Status
Progress/ Action Note
The housing strategy has now been adopted (in three parts) and an enforcement policy presented to October
Cabinet. An updated housing allocation policy is due to be presented to Cabinet in December. The monitoring of the strategy will be undertaken by a newly configured Housing and Planning Policy Board.
This action will be completed by end of December 2012
AAP - H D 01 - We will consult and then obtain agreement on a charging schedule to achieve investment in new infrastructure
On
Track
Progress/ Action Note
Consultants have been appointed to undertake infrastructure and viability assessments which will be required as evidence to support the introduction of a Community Infrastructure Levy. Draft report expected by end of November 2012 with stakeholder consultation planned for early 2013.
15
117

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 - C A 01 - We will assess and implement requirements for a new
Green Flag award at Sadlers
Wood, North Walsham and work to retain the Green Flag status of Holt
Country Park
Completed
Successfully
AAP - C A 02 - We will promote the
Graham Allen Award and monitor the number of applications received.
On Track
AAP - C A 03 - We will complete or review 4 Conservation Area plans, in Cromer, Sheringham,
Walsingham and Wells
Some problems
AAP - C A 04 - We will work with other agencies to retain all of the
District's Blue Flag beach status
AAP - C A 05 - We will achieve zero defaults in our waste and related services contract for cleanliness
AAP - C A 06 - We will ensure all reported fly-tips are responded to within 2 working days
Completed
Successfully
Some problems
Some problems
We have undertaken improvement work with the local communities in Sadlers Wood, leading to its success in being awarded the Green Flag. A new play area is also being installed in September.
Holt Country Park also achieved a Green Flag status, for the eighth year in succession.
The 31st Graham Allen Awards for Conservation & Design in North Norfolk were once again a resounding success.
The awards were decided in August and the formal ceremony is planned for 8th October 2012.
During this quarter substantial progress was made with the
Cromer and Walsingham Appraisals with public consultation carried out in Cromer and draft document prepared for Planning Policy & Built Heritage Working
Party consideration on 8th October 2012. Cromer should be adopted by the Council by the end of November. The objective is still to deliver adopted Appraisals for Wells,
Walsingham and Sheringham by the end of March
2013.However this will depend upon staff resources and other corporate priorities.
Our ongoing work to maintain high quality tourist beaches has led to the retention of all of the District's Blue Flag beaches. Blue Flags have now been awarded at
Sheringham, Cromer, Mundesley and Sea Palling beaches.
East Runton has also been awarded the Quality Coast
Award. These beaches require excellent standards of cleanliness, as well as lifeguard provision and toilet facilities, as well as dog controls in place.
Environmental Services have continued to use the rectification and default procedure within the contract to resolve service delivery failures by Kier. However, Kier's performance has improved during Quarter 2 compared to quarter 1. General cleansing performance is good as reflected by the 5 star award the Council achieved for the cleanliness of the district at the Clean Britain Awards in
September 2012.
As can been seen in Appendix L (indicator C 007) the clearing of fly tipping on public land is still an issue although has improved from previous quarters the issue has been raised with Kier as part of the contract management meetings and an improvement plan is being worked up to identify what the barriers are, and to ensure that this response time improves. This work is being looked at by Environmental Services and Environmental
Protection (EP) team. A new contract manager is now in place with Kier and it is expected that he will deal with these operational issues and we expect to see some improvements. The EP team work closely with
Environmental Services and Kier to try to deal with any issues that arise, and a member of the EP team sits in on the supervisors meetings to try and address our issues.
16
118

Recognise the District's built environment as a heritage asset when promoting North Norfolk
There are no activities in the 2012/13 Annual Action Plan for this objective.
Design a more cohesive framework for coastline management
Activity Status Progress/ Action Note
AAP - C B 01 - We will define the Coastal Zone (ICZM) and agree consultation mechanisms with partners
On
Track
A new integrated approach to management of our coast is being developed and the Kelling to Lowestoft Ness Shoreline Management
Plan is nearing its final adoption. Funding has been secured (from external sources) to undertake a study to inform the future management options of our coast.
AAP - C B 02 - We will identify specific ICZM projects and identify the means of funding
On
Track
An integrated approach to coastal management was approved by
Cabinet in September 2012. The Coastal Issues Forum workshop in
September helped to inform that approach. Work streams have been identified and further work in identifying resources for implementation is being undertaken.
Continue to defend coastal settlements against erosion wherever practicable
Activity Status Progress/ Action Note
AAP - C C 01 - We will commission design works for the Cromer
Defence Scheme
On
Track
Scheme contractor procurement reported to Cabinet (16 July
2012) and 'URS' consultants subsequently procured. The contract is now being formulated by Legal Services. The first meeting with the consultants is planned for the end of October 2012.
Project Appraisal Report (PAR) presented to Environment Agency
(27th June) and EA funding confirmed and planning consent given.
AAP - C C 02 - We will develop and adopt a prioritised programme for future 'Selected' Coastal
Defence Work schemes
On
Track
Cromer to Winterton Management Plan has been commissioned and consultants appointed. First meeting with consultants takes place 16th October 2012.
AAP - C C 03 - We will identify
Coastal funding opportunities to support the prioritised programme
On
Track
Consultants appointed to produce the Cromer to Winterton
Management Plan will be tasked to investigate what is likely to happen to the coast in the short to medium term and identify possible schemes and funding solutions for management of the outcomes.
17
119

Recognise the important role that Town and Parish Councils have as the democratic embodiment of their communities
Activity Status Progress/ Action Note
AAP - L A 01 - We will establish a protocol and put in place the means to respond positively to requests from Town and Parish Councils to take over the running of services within their area/communities to ensure that they share in the benefits of growth
AAP - L A 02 - We will establish a regular dialogue with Town and Parish Councils and hold workshops for training and development in particular to encourage wide community participation in the democratic process
On
Track
On
Track
A draft community asset transfer policy has been approved by Overview and Scrutiny in September
2012 and is expected to be approved by Cabinet in
October. A process for consideration of community proposals under the Localism 'Right to Challenge' are under development and have been signposted on
NNDC's website.
Various activities are in train to facilitate better dialogue, involvement and communication with North
Norfolk's communities and to help embed the principles of the Big Society within the Council.
Meetings with Town Councils are taking place and workshops with Parish Councils will be arranged. A
Community Engagement Framework is being developed and the website is being updated to signpost support and promote participation.
AAP - L A 03 - 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
All projects are continuing to progress. A new opportunity has arisen to participate in another multi agency bid with Norfolk County Council for Warm and
Well funding which will be rolled out by local community and voluntary groups.
Encourage communities to develop their own vision for their future and help them to deliver it
Activity Status Progress/ Action Note
AAP - L B 01 - We will encourage the development of neighbourhood plans by taking the Holt Neighbourhood Plan as a model including holding a seminar on neighbourhood planning for town and parish councils (See also action to deliver Housing and Infrastructure)
Completed
Successfully
Officers have attended meetings with Holt Town
Council to discuss project plan.
Seminar for Parish Councils held on 25th April
2012; follow up discussions have taken place with 6 town / parish councils on process, benefits, and outcomes.
AAP - L B 02 - We will commission work through a Service Level Agreement (SLA) for community planning and for community and voluntary sector capacity building
On Track
Voluntary Norfolk are delivering workshops, advice and support sessions in accordance with the Service Level Agreement. Regular meetings are held to monitor progress. A first quarter progress report will be available at the end of
October.
AAP - L B 03 - Subject to guidance, we will assess expressions of interest from voluntary or community groups who wish to take over the running of a service and / or community asset, and complete the initial assessment within six weeks of receiving the request
On Track
No formal expressions of interest have been received to date. However, discussions are taking place in relation to a number of community assets.
AAP - L B 04 - We will work with the key organisations with an interest in North
Walsham to implement the actions and interventions identified through the
'Leadership of Place' project.
On Track
Draft consultant’s report received September
2012 on Retail and Leisure Demand, Feasibility and Capacity Study.
Consultants engaged in investigations on possible contribution of NNDC's assets to facilitate investment in North Walsham due to report towards end of year.
18
120

Activity
AAP - L C 01 - We will review services and ensure that the Council's activities are not competing inappropriately with or stifling alternative provision
Status
Not
Started
Progress/ Action Note
AAP - L B 06 - We will respond positively to communities wishing to undertake projects locally
AAP - L B 07 - We will work with communities to identify the current and future social, economic and environmental needs of their resident population and support them to identify and implement local, innovative and creative solutions
AAP - L B 08 - We will draft and consult on a communication and engagement framework
On Track
On Track
On Track
Expressions of interest for local communities to initiate, develop and manage projects have been received and discussions are on-going (e.g. in relation to assets in Cromer and Fakenham). The
Big Society Fund has been established and is supporting the development of local community projects (see AAP - L C 02)
Community Engagement Framework currently being developed which will ensure greater proactive engagement with Town and Parish
Councils, community groups and local communities to identify needs and issues.
Voluntary and Community Sector Support
Service Level Agreement will report on issues community groups facing.
Community Engagement Framework currently being developed which will ensure greater proactive engagement with Town and Parish
Councils, community groups and local communities to identify needs and issues.
Encourage the growth of The Big Society within communities
Activity Status Progress/ Action Note
This activity is not due to start until later in 2012/13.
AAP - L C 02 - We will launch and monitor a community investment fund, to be known as
The Big Society Fund to invest £450,000 in local communities, strengthen civic society, and establish the process for determining priorities for expenditure
On
Track
For the second round a total of 33 applications have been received. These are due to be determined in
October 2012 by Cabinet and the North Norfolk Big
Society Fund Board for both large and small grants respectively. The amount of funding applied for totalled
£304,916.94. The deadline for applications to the third round is 9th November.
AAP - L C 03 - We will ensure that work with statutory, voluntary and community organisations contributes to the aims of the
Big Society agenda.
On
Track
Through the SLA's developed and the prospectus for the Big Society Fund we are targeting funding and support as appropriate.
19
121

Deliver strong governance arrangements
Activity Status
AAP - 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
On Track
Progress/ Action Note
The internal audit plan for 2013/14 will be set in March
2013 and will be part of the three year strategic plan.
AAP - V A 02 - We will set and achieve
100% compliance with deadlines agreed with Internal Audit for recommendations rated as Medium and
High
AAP - V A 03 - We will implement the revised performance management framework
AAP - V A 04 - We will review and update the Council's constitution
Some problems
Some problems
On Track
No high recommendations have been made for the current audit plan and all previous high recommendations have been implemented. Some medium recommendations are outstanding. The half yearly follow up review will be carried out on 18 and 19 October which will inform the progress report to the Audit Committee in December.
Where recommendations have been superseded, i.e. due to a change in a system or other controls have since been implemented these will require sign off from Deloittes. In addition revised deadline dates are to be agreed as part of the follow up process.
Delivered the process for producing the first quarter progress report for the Annual Action Plan 2012/13. There have been some problems with this new process which was reviewed in time for implementing the process to produce the second quarter report. The key issues are a lack of adherence to the timetable for submitting progress information by a minority of staff and a number of new performance indicators and performance measures for which a collection process has not been established.
Various interrelated strands of work including the constitution, delegations and the new standards regime are all due to be completed by the end of March 2013. The new constitution is due to be taken to the Constitution
Working Party in November 2012 and Full Council in
December 2012.
Ensure that effective communications exist
Activity Status
AAP - V B 01 - We will make Outlook cost neutral
AAP - V B 02 - We will identify the means of optimising media coverage of
Council activities and initiatives and place the WEB at the heart of all we do
On
Track
On
Track
Progress/ Action Note
The winter edition of Outlook is currently being developed and advertising has not been finalised at the time of reporting.
The plan to place the WEB at the heart of all we do is on track with some tasks already completed and the planned staff briefings 2/3/4/ October 2012 will include a session on the web development project to explain the benefits to the organisation and its customers.
AAP - V B 03 - 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
An initial draft is underway and those associated projects which were due to start are underway
Deliver strong and proportionate organisational management in the Council
Activity Status Progress/ Action Note
20
122

Activity Status
AAP - V C 01 - Deliver revised / streamlined management arrangements
Completed
Successfully
The review of senior management arrangements is complete. Appointments have been made to the remaining 2
Heads of Service posts who started on 8 October 2012.
Prioritise Services and Functions in line with the wishes of our communities and to deliver our corporate objectives
Activity Status Progress/ Action Note
AAP - V D 01 - We will prioritise services and redirect resources in line with those priorities by completing fundamental reviews of services that residents have identified as the least important and that the Council does not consider to be a priority.
On
Track
Progress/ Action Note
Identify services that will be reviewed as part of the financial strategy for 2012/13. Undertake review of provision of CCTV, undertake peer review of regulatory and enforcement services, undertake review of contracts supporting provision of sports and leisure and review of procurement of new contract for MRF is underway.
AAP - V D 02 - We will consult with the residents through a Place Survey.
On
Hold
A discussion paper for a project to consult with residents through a Place Survey has not yet been prepared but is due to be delivered to CLT in October 2012.
Deliver year-on-year improvements in efficiency
Activity Status
AAP - V E 01 - We will support the implementation of the cost saving
Revenues and Benefits shared services project
Some problems
Progress/ Action Note
Progress in implementing the Revenues and Benefits system was reported to the Revenues and Benefits Joint Committee on
26th September 2012. A précis of the report follows
• There have been significant performance issues with the new
Civica Revenues and Benefits system for staff based at
NNDC. Whilst there has been some improvement in the position during August and September there remain some concerns and a backlog of work has built up, with attempts made to reduce the backlog through weekend working and agency staff.
• The installation of the 1 Gig communications link between
King's Lynn and Cromer, joining up the two authorities' ICT networks, was delayed. This link has now been successfully installed.
• The original intention was to implement a merged database by the beginning of October 2012. For a number of reasons the
Steering Group has agreed to reschedule the merge to after the end of year work i.e. April / May 2013. Work is continuing with implementation of the Web forms module but other outstanding additional modules such as Mobile working will be rescheduled after the merge. The Steering Group is currently in the process of agreeing the new timescales and changes to the payment stages with Civica.
• A significant amount of work is still being undertaken by the
Council to correct Civica's conversion errors and issues arising from daily processing. This work has been significantly impacted by the system performance issues detailed above. The implementation of the back office functions at
North Norfolk went relatively smoothly; however conversion of the workflow has given North Norfolk problems in relation to both conversion of documents and changing functionality where the level of support provided by Civica has been disappointing.
• Following recent training North Norfolk envisages that accurate performance data on workloads and processing times will be available to inform management decisions and customer feedback from 1st October.
• North Norfolk collection figures have remained within target
21
123

Activity
AAP - V E 02 - We will identify potential partnership working opportunities and produce business cases
Status
On Track
AAP - V E 03 - 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
On Track
Progress/ Action Note throughout the last few months and the new system is much more effective in reporting this information and in supporting recovery action and financial reporting / management arrangements.
• Partnership risks are reviewed regularly at the Project Team meetings and by the Steering Group, and action is being taken to mitigate the risks.
Opportunities are being explored/reviewed/initiated in the following areas:-
- Revenues and benefits
- Building control
- Planning peer review
- Options for coastal management
- Dual use sports centre North Walsham
- A review of the delivery model for the Tourist Information
Centre's in Wells, Holt and Sheringham has commenced.
Discussions have taken place with the relevant Town Councils and other appropriate community groups. Proposals in relation to Sheringham and Wells are currently being considered.
The financial strategy will be presented to Cabinet in
November. There is still a significant amount of uncertainty around the future government funding levels from 2013/14 onwards due to the changes to the funding mechanism from a system of grant and redistributed business rates to a new system of grant and locally retained business rates. The financial strategy will present an overall financial projection, however it will be subject to a number of caveats in terms of the sensitivities around external funding. The detailed service budgets will continue to be worked upon over the coming months. Whilst there have been some problems in quantifying the impact of the new funding regime, zero council tax increases have been assumed in the financial forecasts, the timetable for presenting the budget for approval is still anticipated to be achievable, although this is subject to the announcement of the provisional local government finance settlement, date yet to be announced.
AAP - V E 04 - We will review the reward structures to encourage and reward staff, for finding innovative new ways to deliver higher quality services more efficiently
Tuesday, 16th October 2012
Not
Started
Work on this activity is due to start in November 2012.
22
124

[If you have access to the Council’s network you can click on the indicator or measure name to view more information]
Indicator Name Reference
Quarter
1 Target
Quarter
1 Result
Quarter
2 Target
Quarter
2 Result Progress
Number of businesses who access loans & grants under the Coastal
Pathfinder scheme
J 002 (Quarterly
Cumulative )
6 0 6 0 No loans were applied in the first quarter when they were only available to 90 businesses which have signed to the Pathfinder Business Advice project.
During the second quarter when it became available to more businesses in the coastal areas numbering around 200, three applications were considered but only one actually made it to appraisal and was refused.
From January 2013 or start of the fourth quarter, the loans will become available to all businesses in the district so it is being expected that more loans will be applied.
Whilst our aim is to be able to apply the loans to as many businesses as possible, there should be a minimum percentage of the funds remaining in each quarter that can be applied as loans. The target percentage currently stands at 20%. At the moment, since no loans are being applied, the funds remain at 100%.
The number of businesses assisted to retain jobs and/or increase employment each year.
J 004 (Quarterly
Cumulative )
Percentage of Loans fund that can be reapplied
J 001
(Quarterly)
6
20.0%
16 12
20.0%
22
Ongoing support is being provided to local businesses which have contacted the Economic Development team for assistance. The service includes business advice, training and signposting to other relevant providers.
NA
3 applications are under consideration. Constraints on lending geography will be lifted January 2013. Partners currently working up a campaign to widen participation.
23
125

Quarter 1
Result
Quarter 2
Result
Improving, worsening or static since last year? Progress Measure Name
Number of economically active people assisted into work each year
Reference
J 014 (Quarterly
Cumulative )
17 35 This continues to be very hard in the current economic climate.
Rate of take up of new designated employment land
J 005
(Quarterly)
It is proposed that this information be reported on an annual basis. Quarterly monitoring would require quarterly inspection of sites. Resources are not currently available to carry out this activity. The rate of change of take up of employment land does not change significantly on a quarterly basis but it is important to measure medium and long term trends. This recommendation will be submitted to Cabinet at their November 2012 meeting.
Indicator Name Reference
Quarter 1
Target
Quarter 1
Result
Quarter 2
Target
Quarter 2
Result Progress
Number of development briefs produced on allocated sites
H 003 (Quarterly
Cumulative )
Measure Name Reference
2 2 3 2
Quarter 1
Result
Quarter 2
Result
Improving, worsening or static since last year? Progress
Number of households from the housing register rehoused
Number of affordable homes granted planning permission
H 005 (Quarterly
Cumulative
Cumulative
)
H 006 (Quarterly
)
106
0
202
8
Submission of draft development brief in relation to Holt due by the end of October 2012. Public consultation likely
November/December 2012.
We currently have 10 members that are currently under offer to which they are awaiting tenancy start dates.
24
126

Measure Name Reference
Quarter 1
Result
Quarter 2
Result
Improving, worsening or static since last year? Progress
Affordable homes built
H 007 (Quarterly
Cumulative )
8 8
Affordable Housing completions take place throughout the financial year, for
2012/13 the majority of completions are planned to take place in quarter 4
Estimated worth (£) of investment secured in new infrastructure
H 009 (Quarterly
Cumulative )
217,000 333,500
Indicator Name Reference
Quarter 1
Target
Quarter
1 Result
Quarter 2
Target
Quarter
2 Result
Methodology agreed. Financial value of contributions, excluding County
Council contributions secured through Section 106 agreements/Community
Infrastructure Levy contributions. Measured after legal agreements have been signed.
Progress
Delegation of planning decisions
Percentage of planning appeals allowed
C 001 (Quarterly
Cumulative )
C 013 (Quarterly)
90.00% 93.59% 90.00% 93.03%
0.0% 57.1% 0.0% 0.0%
Processing of MAJOR planning applications within thirteen weeks
C 004 (Monthly
Cumulative )
33.33% 25.00%
Of the eight applications dealt with in the first two quarters 2 were decided within the thirteen week period. This reflects the often controversial and complex nature of such applications. Time has to be taken to ensure decisions are sound and negotiations are often entered into to achieve improved outcomes.
Processing of MINOR planning applications
C 005 (Monthly
Cumulative )
72.00% 37.39% 72.00% 38.50%
Performance remained constant over quarters 1 and 2. We received authority from Cabinet to recruit 2 temporary staff to assist with workload and improve performance. The recruitment process begins w/c 1st
October 2012. LGA Planning Peer Challenge being arranged for quarter
3.
25
127

Indicator Name
Processing of OTHER planning applications
Conservation Area plans that have been completed or reviewed
Target response time to fly tipping and all other pollution complaints
(within 2 working days)
Reference
C 006 (Monthly
Cumulative
C 003 (Quarterly
Cumulative
)
)
C 007 (Quarterly)
Quarter 1
Target
Quarter
1 Result
Quarter 2
Target
Quarter
2 Result
80.00%
100.00%
52.86%
4
89.74%
80.00%
100.00%
54.39%
1
89.22%
Progress
Numbers of application dealt with were slightly down possibly because of the holiday period but performance has slightly improved. We received authority from Cabinet to recruit 2 temporary staff to assist with workload and improve performance. The recruitment process begins w/c 1st
October 2012. LGA Planning Peer Challenge being arranged for quarter
3.
During this quarter substantial progress was made with the Cromer and
Walsingham Appraisals with public consultation carried out in Cromer and draft document prepared for Planning Policy & Built Heritage
Working Party consideration on 8th October 2012. Cromer should be adopted by the Council by the end of November.
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.
The percentage of waste related cases responded to within 2 days is
80.33%. There continue to be issues over collection of fly tips on public land by KIER. This accounts for 35.7% of the work in received and at 1/4 end 52.86% was cleared within 2 days. The average time to clear is currently 3.1 days.
98.76% of Nuisance cases were responded to within two days
94.12% of Drainage cases were responded to within two days.
This equates to 2 Nuisance and 1 Drainage case not being responded to in time.
26
128

Indicator Name
Number of pollution enforcement interventions
C 011 (Quarterly
Cumulative )
Fixed penalty notices issued
Reference
C 008 (Quarterly
Cumulative )
Number of rectifications issued to the waste and related services contractor for cleanliness
C 012 (Quarterly)
Number of defaults issued to the waste and related services contractor for cleanliness
C 009 (Quarterly)
Quarter 1
Target
Quarter
1 Result
Quarter 2
Target
Quarter
2 Result
13
4
3
13
25
1
4
2
Progress
Within the quarter there were 12 pollution cases which were investigated with a view to potential prosecution. One is related to a breach of a noise abatement notice and case file is being prepared for legal. The other 11 are related to flytipping cases and are still being investigated. 3 other flytipping cases were heard at court these cases were begun in Oct/Nov
2011 and resulted in a conditional discharge and costs of £200 in one and 40 hours community service and £750 costs each in the other 2 cases.
No progress to report. FPNs served as appropriate, vary throughout the year and are just one of the many interventions used in prevention of enviro crimes.
Environmental Services have continued to use the rectification and default procedure within the contract to resolve service delivery failures by Kier. However, Kier's performance has improved during Quarter 2 compared to quarter 1. General cleansing performance is good as reflected by the 5 star award NNDC achieved for the cleanliness of the district at the Clean Britain Awards in September 2012.
Environmental Services have continued to use the rectification and default procedure within the contract to resolve service delivery failures by Kier. However, Kier's performance has improved during Quarter 2 compared to quarter 1. General cleansing performance is good as reflected by the 5 star award NNDC achieved for the cleanliness of the district at the Clean Britain Awards in September 2012.
27
129

Measure Name
Number of grants awarded to local communities from the Big
Society Fund
Reference
L 005 (Quarterly
Cumulative )
Quarter 1
Result
Quarter 2
Result
17 17
Amount of funding investment in community projects (from the Big
Society Fund)
L 006 (Quarterly
Cumulative )
139,776 139,776
Improving, worsening or static since last year? Progress
For the September round 33 applications totalling £193,865.16 were received for grants under £10,000. 7 were funded totalling £32,430. Applications totalling
£107,038.16 were refused or not awarded the full funding requested. Three applications totalling £21,000 were withdrawn and seven applications totalling
£33,397 were deferred.
Five applications totalling £184,866.78 were received for grants over £10,000.
Two capital awards totalling £22,000 were made. A full award of £12,000 was made to the National Coastwatch Institute, Mundesley. Erpingham PC had requested £87,300 towards a multi use games area. An award of £10,000 was made subject to remaining funding being secured. Two awards totalling
£48,216.78 were withdrawn and an award of £37,350 was deferred.
An interim report on The Big Society Fund will be going to scrutiny on 21 st
November 2012.
Indicator Name
Percentage of (Medium
Priority) audit recommendations completed on time
Percentage of (High Priority) audit recommendations completed on time
Reference
V 001 (Quarterly
Cumulative )
Quarter 1
Target
Quarter 1
Result
Quarter 2
Target
Quarter 2
Result
80.0% 100.0% 80.0%
Progress
Reporting of follow ups by Deloittes will not be completed until
October 2012.
V 002 (Quarterly
Cumulative )
100.0% 100.0% 100.0% 2012/13 - no high priority recommendations have been raised.
Previous Years - All high priority recommendations for previous financial years have been implemented (refer to Audit Committee
June 2012 - Status of Agreed Audit Recommendations due to implementation by 31 March 2012)
28
130

Indicator Name
Percentage of audit days delivered
Reference
V 004 (Quarterly
Cumulative )
Quarter 1
Target
Quarter 1
Result
38.0% 29.0%
Quarter 2
Target
Quarter 2
Result
46.0% 41.0%
Progress
87 Days delivered of the total 212 planned days. Currently anticipating full plan will be met this financial year.
Measure Name
Working Days Lost Due to
Sickness Absence (Whole
Authority days per Full Time
Equivalent members of staff)
Reference
V 007
(Quarterly
Cumulative )
Quarter 1
Result
1.12
Quarter 2
Result
2.73
Improving, worsening or static since last year? Progress
This figure is higher than quarter 1 and 2 of 2011/12 (1.81) but is still much lower at this point than in previous years. There were 6 cases of long term sickness during quarter 2 of these, 3 have returned to work.
Level of overspend/
(underspend) (£) total
Level of overspend/
(underspend) (%) total
Measure Name
Level of overspend/
(underspend) £/% by new service groupings
V 008
(Quarterly
Cumulative )
V 009
(Quarterly
Cumulative )
(£134,037)
(4.0%)
(£287,803)
(5.2%)
This includes the corporate savings targets from the management restructure (£150,000) and pay and grading (£225,446). MR - on track to be exceeded, P&G not achievable at level anticipated. See further comments in the cabinet report - P4 Budget monitoring. These savings/costs will be allocated to the service areas as part of the revised budget process.
Quarter 2
Actual
£ Service Group
Assets, Coastal
Defence & Leisure
Reference
V 005 & V 006
(Quarterly
Cumulative )
Community and
Economic
Development
Corporate
Services
(158,975)
(87,939)
(38,207)
%
(27.0)
(9.0)
(15.0)
Trend/
Direction of
Travel Progress/ Action Note
NA
Includes a number of variances including car parking (additional income), foreshore repairs not yet carried out and NNDR savings for administrative buildings.
NA
Grant received for business start up support not yet matched by expenditure, big society fund not yet incurred, vacant post within Coastal
Management.
Variance to date reflects part of the savings from the management
NA restructure.
29
131

Measure Name Service Group
Customer
Services
Development
Management
Environmental
Health
Financial Services
Organisational
Development
Savings to be identified
Reference
Quarter 2
Actual
£ %
(15,389) (4.0)
Trend/
Direction of
Travel Progress/ Action Note
A number of the variances to date offset each over, full year savings have been identified including IT savings, two vacant posts (Customer
NA
Services and Housing) pending further structural reviews and impact of advertising in Outlook.
Profiled overspend to date due to a shortfall in income from planning applications. Service remains optimistic that this position will turnaround
84,290 26.0
have been highlighted where savings or additional income factored in the base budget will not be achieved in the year.
26,445 2.0
(111,764) (7.0)
13,736 68.0
187,722 100.0
NA No major variances.
One-off grant received to assist with the implementation costs of new
NA
2011/12. Full year saving from external audit fees has been reported of
£50,000.
Variance largely reflect invoices not yet issued for recovery of costs in relation to elections, the position reported has been reduced by the underspend on corporate training pending the assessment of training needs following the mid-year appraisal process.
This includes the corporate savings targets from the management
NA restructure (£150,000) and pay and grading (£225,446). MR - on track to be exceeded, P&G not achievable at level anticipated. See further comments in the cabinet report - P4 Budget monitoring. These savings/costs will be allocated to the service areas as part of the revised budget process.
30
132

Key
Improving compared to the same time period last year
Static/stable compared to the same time period last year
Worsening compared to the same time period last year
Not applicable
31
133

This Quarter always sees a shift in the team priorities with patrols of the dog control orders on the beaches taking priority away from the littering in towns. The change means that the number of Fixed Penalty Notices
(FPN) served reduces as when dealing with dog on beaches education and negotiation take priority and
FPNs are only used when a person does not want to move on out of the dog exclusion area.
The team will continue to use FPNs as an intervention method where appropriate. However, due to current resources within the team we are currently reviewing their effectiveness as part of the overall options available around education and enforcement for small scale envirocrimes. There has been recent research by Keep Britain Tidy which shows that their effectiveness is not long term for the majority of people who have been served one. As such we are currently reviewing this approach as part of our work plan looking forward. The FPN that was issued was in relation to littering from a vehicle.
The number of pollution enforcement interventions indicator shows only those new cases that have been stated in the quarter but with any investigation of this type the gathering of the evidence and compiling a case file takes time and it is quite often that cases do not start and finish within the same quarter. As such the following information gives a better picture of the enforcement intervention being undertaken during this quarter and the position of these cases:
New Cases
12 New cases within the quarter as described
Existing cases
11 cases received before quarter 2 are still being investigated of these:
•
4 have court dates set for prosecution
•
1 warrant has been issued for the defendant to attend court
•
1 referred to legal team for prosecution
•
5 still to be investigated within Environmental Protection team.
Completed cases
15 cases were brought to conclusion within the quarter. Of these 3 resulted in successful prosecution. 3 resulted in warning letters being issued. In the other 8 cases after investigation there was insufficient to evidence to proceed and the cases were closed.
32
134

th
Emergency Planning
NNDC’s main risk is coastal flooding and I see this as our highest priority. Continued support has been given to our volunteer flood wardens. Two flood warden training sessions have been set up during October this year, 18 th
& 25 th
).
Linked into this is the requirement to provide rest centres throughout the District. Rest centres can be required for any emergency that require a displaced population to be housed. Recent incidents for activation of rest centres in neighbouring authorities have been large fires and unexploded bombs.
The rest centre plans have not been reviewed since 2010. Most rest centres are located within main town schools and many of these will have changed considerably over this time. Review of the Stalham High
School plan has been started on 4 th
October and is on-going.
In the event that a rest centre was required it would be difficult for the Council to provide adequately trained staff to effectively run the centre for anything other than a very short period of time. This activity would also detract from the council’s ability to provide a response to the emergency which led to the rest centre activation. Maintaining a trained staff of volunteers within the organisation has historically been challenging.
With this in mind negotiations with the British Red Cross have been on-going with a view to entering into a
Memorandum of Understanding to provide support staff to run the rest centres. The cost of this agreement will be £1000 per annum but this will be contained within existing budgets. Work will continue with this agreement with the view of extending it so that the British Red Cross will provide management of these facilities and all staff and training in the future.
I have also been working on the NNDC Emergency Response plan and this is now at first draft stage and I will be working on this once the Business Continuity plan is complete. The NNDC Operational Flood response plan is also in need of review; however it is fit for use.
NNDC have recently won a bid to host a MCA Beach Master course, one of only 6 across the UK to be held this financial year. This will help train our staff and other authorities and partner agencies staff to respond to a coastal pollution incident. This will take place on 9 th
and 10 th
Oct 2012. By acting as host, the cost of training 10 NNDC staff will be covered by the charges made to other attendees. NNDC staff will also benefit from training in a familiar environment and this is a significant benefit. This course took place and attracted 55 delegates from the following agencies: Norfolk County Council, Suffolk County Council,
Lincolnshire County Council, The Environment Agency, Norfolk Fire and Rescue service, The Broads
Authority, Natural England, Great Yarmouth Borough Council and Kings Lynn and West Norfolk Borough
Council. The Sea Palling Inshore Lifeboat also took part in the second days training exercise.
Business Continuity
The existing top level plan, last reviewed in 2009, needed review to make it fit for purpose and reflect changes following the management restructure. The policy document has been reviewed and signed off by
CLT.
The old plan has been updated to improve the structure and format of a number of areas and to update the information so it is fit for purpose. The draft plan has been peered reviewed by the Business Continuity
Working Group (BCWG) and is now at a final draft stage waiting final formatting. Further updates to improve the format of the plan will be undertaken during its coming review cycle. The review will be undertaken by the BCWG and myself and will form a standing item on the groups meeting agenda.
The Civil Contingencies Manager has recently completed and passed the Business Continuity Institute
Certificate in Business Continuity Management. This has led to a review of the requirements placed on
33
135

teams within the organisation in relation to business continuity. All teams should produce a Business Impact
Assessment (BIA), this will allow an analysis of the team to be carried out and give a rating to show if the team delivers a critical service. At present the BCWG have reviewed the old critical service list from the
2009 plan and from knowledge and experience have defined the authorities’ critical services. This will be reviewed once all BIA have been produced. At this stage only teams with critical elements will be required to produce a team BC plan.
At this stage the following teams have completed their BC plans:
BC Plans No BC plans
Environmental Health Licensing
Payroll Benefits
Housing
Waste Non Critical Services
IT Planning
Non Critical Services Leisure
Sustainability Economic Development
Reprographics Legal
Policy and Performance
I am still working with managers to produce their plans and have meet with Peter Battrick and Estelle
Packham to give direction and guidance. I have also put other teams BC plans onto the intranet to provide a working guide.
BC training will be given to all new employees and I will attend team meetings to help explain the need for
BC with the teams.
I will be working with Corporate H&S to deliver the new evacuation procedure to the existing wardens in
October/November.
Exercising and plan validation will start with a walk through with CMG and the BCG members. This will then be developed and scaled up to include other areas on a rolling basis.
I have been in post since October 2011 and the post was vacant for a year previously, so all plans were in need of a review and update. The Technical assistant within the CCT has been on long term sick leave since the beginning of May 2012. There has been an impact on service delivery although this has been managed through placing a number of pieces of work on hold, using the resources of other Technical Administrators, and accessing some resource through NORMIT and the Norfolk Resilience Forum. This is not sustainable on a long term basis and negotiations with County to buy in some admin cover have been started. The significant involvement of the Civil Contingencies Manager of the delivery of the Olympic Teach relay event in July placed further burdens on service delivery. The scale of the requirements placed on Local
Authorities through which the torch passed was not understood either by LOCOG, the local organisers, police and this led to a significant increase in resource requirement for a period of some weeks prior to the event. This also impacted on a number of other teams across the council. It was not known how well supported the relay would be until it began in Cornwall six weeks earlier.
34
136

th
Ref.
WS001 02
WS001 03
WS001 04
Progressing to plan
Progressing to plan
Progressing to plan
WS001 05
Progressing to plan
WS002 01
Progressing to plan
WS002 03
Not
WS002 04
Not
WS002 05
Not
WS002 07
WS003 02
Progressing to plan
Axis 3 Intended Project
WS004 03
Progressing to plan
WS006 03
Not
WS007 01
Progressing to plan
Click on project name to view details.
35
137

Agenda Item No 15
:
This paper seeks to secure the future of the Council-run community sports facility at North Walsham High School through better management arrangements.
An opportunity is identified to review the current arrangements for delivery of community sports at this site.
In turn, this will ensure the Council’s future funding of the
: facility to deliver a wider package of community leisure activities within the school environment, at the same time affording the Council a financial saving.
1. It is clear that the Council’s Community Sports provision at
North Walsham has good community support, evidenced by the success of some of the user clubs and the active
Voluntary Management Committee
2. From the consultant’s report, it is clear that the current user fees are too low and need to be reviewed. Officers and the
Voluntary Management Committee will have to work closely to ensure that, as far as possible, the future fee structure covers the cost of providing the facility for community use.
3. The Council’s payment to the school should cover the additional costs incurred by the school in having its facilities open for community use and not further subsidise the school’s base budget to the Council’s detriment.
4. Such proposals, which will secure the community use of the schools facility under the Council’s stewardship, will require significant variation to the contractual agreement between the Council and the school, which has not been reviewed since its inception in 1986 and is now seen as being out of date.
Cabinet member(s): Cllr John Lee, Cllr Trevor Ivory telephone number, and e-mail:
Nick.baker@north-norfolk.gov.uk
Karl Read, Leisure and Cultural Services
Manager 01263 516002
Karl.Read@north-norfolk.gov.uk
138

1.1 The social benefits of sport and active leisure are well known in terms of health improvement and community cohesion. The Council wishes to ensure that adequate community sport and leisure provision exists in the District on a secure and sustainable financial footing. The Sports and Active Leisure Strategy 2010-
2015 reflects this and accepts the need for community groups and others to be involved to provide more local management solutions for such provision by the
Council.
1.2 Members will be aware that the Council has three dual use sports facilities based at Cromer, North Walsham and Stalham High Schools, which allow for use of the school sports facilities outside school hours for community sports and active leisure. All three facilities offer a wide range of sports, depending on the facilities available and local demand.
1.3 All three dual use facilities are subject to a separate Joint User Agreement made between each High School (historically through the County Council but now via the school governing body) and the Council. Each agreement requires the
Council to pay a rental fee and then a 60% share of any costs associated with the facility, as well as staffing during community use periods. The Agreement lays down a two year notice period for either party to terminate the arrangement and requires the ongoing provision of the facility during the notice period.
1.4 The Agreement includes the provision of a Management Committee, consisting of voluntary representatives from a variety of clubs, and individuals. Under the
Agreement, the duties of the committee include the setting of fees and charges.
The Council and High School also both have a representative on this Committee.
In parallel to the Management Committee, many of the same people are members of a stand-alone Voluntary Committee which hires the facility and organises a variety of sports activities. Some of this income is then re-invested
1.5 The three facilities have broadly the same usage figures but vary in direct cost (ie lease costs paid to the school and staffing, etc) to the Council, as follows: by the committee into improvements at the sports centre.
Usage 2011/12
(individual personal uses)
Direct Cost (not including internal recharges)
30,809 29,253 29,675
£48,285 £81,600 £61,226
,
1.6 The 2012/13 base budget for operating and managing the North Walsham Dual
Use Sports Centre (including support service recharges) is £121,600.
Financial matters are considered in more detail later in this report.
139

2.1 The Community Sports Manager left the Council’s employment earlier in 2012.
This presented the Council with a number of options around the future operation of the dual use sports centres and informal discussions were held between officers and portfolio members.
2.2 North Walsham High School has recently successfully completed a joint school/community building, The Atrium Centre. There are obvious potential synergies between the management of the Community Sports Centre and The
Atrium Centre.
This issue was considered in the Council’s Sport and Active Leisure Strategy
2010-2015 where it committed to closer working in North Walsham with the Co-
Location (now The Atrium) Centre which would reflect the Council’s stated commitment to more local management of community facilities.
2.3 Any variation to the current Agreement would require the approval of both the
High School’s governing body and the Council, through a Cabinet decision.
Officers were therefore requested to initiate informal discussions with the Head
Teacher and Business Manager at North Walsham High School, regarding different management arrangements, including the potential handover of the community sports facility to the school to manage. An initial agreement in principle was reached, regarding a way forward involving the payment of a lump sum in lieu of the two years notice.
Further discussions, including relevant portfolio members, were then also held with the Governors of the High School and in July, the Council received a letter jointly from the Head Teacher and Chair of Governors confirming that they had agreed “to support sport in the community by pursuing the proposal to take responsibility for managing the use of the sports centre complex”. In addition, that “the Governors have agreed that further dialogue about the proposal should take place”.
Discussions during the school summer holidays focused on consultation with users groups and other interested parties. The School then requested that consultants should be provided by the Council, in order to help identify potential business models for the future management of the centre by the school, prior to the consideration of any formal offer or agreement by the school.
2.4 Consultant’s Report
This work was completed by KKP, an external specialist recommended by Sport
England, who provided a report on how to best sustain the facility under the school’s management in the long term. The full report is shown at Appendix 1.
Whilst the consultant was asked to work up options on the assumption of the school taking on its management, many of the issues arising from the report are just as relevant if the Council is to continue to manage the dual use facility.
140

The key points arising from the report are as follows:
•
The terms of the current dual use agreement with the school, which have not been reviewed since the agreement commenced in 1986, are very unfavorable to the Council compared to other areas. Typically, agreements of this type do not include running costs and contributions to any capital works required over and above rental, especially at the levels experienced in our own situation.
•
The hire charges to use the facility are too low and, even in an area of relative deprivation, there is scope for them to be significantly increased, including the introduction of an admission charge or membership scheme. This is especially the case for clubs and activities where large numbers of users pay the same overall amount to hire the hall as smaller groups.
•
There is a good level of latent demand for such facilities in the area, especially if they can be improved.
•
The provision of a multi-use games area (MUGA) would provide significant increase in user numbers and income. It should be noted however, that this site is near to housing and the location of a MUGA would need to be considered carefully.
•
In any option for change, it will be important for Council officers to work closely with the school and the voluntary committee to achieve a smooth transition to any new arrangements.
2.5 Whilst the consultant identified a sustainable model for the school to take over the running of the sports centre as a community facility, discussions between officers and members have also considered the concerns of external stakeholders. As a result the focus has now moved towards the Council retaining management of the facility, but with significant variations to the Dual Use
Agreement with the School.
Given the suggested changes to pricing structures and other opportunities for development, the consultant’s projections indicate a significant improvement in the income to expenditure ratio over time.
There is scope within the school site to provide a floodlit Multi Use Games Area
(MUGA). This would go some way to meeting the known local demand for a small artificial pitch for football training and 5-a-side competition.
However, it is considered that such improvements, which would require both capital investment and grant funding, should only be considered once the Dual
Use Agreement has been reviewed and amended and new arrangements put in place with the Voluntary Management Committee.
3.1 The finance issues discussed below assume that the Council now continues to run the Dual Use Sports Centre, but with a reviewed and re-negotiated
141

Agreement with the school. It should be noted that such agreement has not yet been reached with the school.
3.2 The current (2012/13) base budget for the North Walsham facility is as follows:
Income (hire fees and bar sales) (£40,000)
Excluding the support service recharges, the net budget position is therefore
£81,600.
3.3 Based on the 2011/12 figures provided by the school’s Business Manager to the
Consultant, the additional costs for heating, lighting and cleaning, etc. at the Dual
Use Facility are around £18,500. This is the actual cost incurred by the school for making the its facility available for community use.
The option now proposed would see the total fee paid to the school under the agreement reduce from c£44,000 per annum to £18,500 per annum, resulting in revenue savings of £25,500. This would reflect a much more equitable agreement, only covering the additional costs incurred by the school for allowing public use.
3.4 Furthermore, under the proposal, the charging structure would be administered by the Council, with input from the Voluntary Management Committee. This would see a per capita charge of £1.00 per adult and £0.60 per junior on admissions from 2013, thus ensuring that user charges are equitable for large or small groups. Similarly, bar prices would be increased by 10% from 2013 and hire charges would increase by 10% in 2014 and then by 7.5% annually thereafter. This reflects the pricing and income structure proposed within the consultant’s report under Option 3.
3.5 The current income budget for the centre is £40,000 for 2013/14 but the consultant’s report indicates that implementing the changes above to the charging structures would result in an income figure of £65,800 for 2013/14 which would represent an increase in income of £25,800. When combined with the anticipated saving in the rental expenditure budget this would result in an estimated overall budget saving of £51,300 for 2013/14 (£25,500 rental saving plus £25,800 additional income).
142

The estimated budget impact over the next 5 years can be seen within the table below.
Expenditure
A
Proposed rental
Annual saving
2013/14 2014/15 2015/16 2016/17 2017/18
(£) (£) (£) (£) (£)
(£)
44,000 45,320 46,680 48,080 49,522 233,602
18,500 19,055 19,627 20,215 20,822 98,219
(25,500) (26,265) (27,053) (27,865) (28,700) (135,383) a n
Additional income
(40,000) (41,200) (42,436) (43,709) (45,020) (212,365)
(65,800) (68,300) (70,800) (76,110) (81,818) (362,828)
(25,800) (27,100) (28,364) (32,401) (36,798) (150,463) b
(51,300) (53,365) (55,417) (60,265) (65,498) (285,846) e
As can be seen, the estimated saving for 2013/14 is £51,300 but this increases year on year through to 2017/18 where the estimated saving is just over £65,000.
The total estimated saving over the 5 year period from 2013/14 to 2017/18 is therefore £285,846.
The above figures for rental are based on the assumption that costs would increase by 3% per annum along with the current income budget. The proposed income figures are taken from the consultant’s report and are based on the proposed changes to the charging structure.
Clearly, there are a number of variables in the model which are outside the
Council’s control. Increased hire fees may affect user numbers negatively and, as the additional costs for the school are influenced by energy prices, and as such inflation may well be above the 3% assumed. It is therefore considered that a prudent approach should be taken to the potential savings figures provided above and for budgeting purposes it is recommended that any forecast should be capped at 60% which would result in the following adjusted figures:
2013/14 2014/15 2015/16 2016/17 2017/18
(£) (£) (£) (£) (£)
(£)
Estimated saving above (51,300) (53,365) (55,417) (60,265) (65,498) (285,846)
Adjusted to 60% (30,780) (32,019) (33,250) (36,159) (39,299) (171,507)
Further work will continue to be undertaken to investigate further sources of additional income and improved marketing, to try and achieve the higher income estimates. The revised savings figure over the 5 year period taking a more prudent approach is therefore estimated to be £171,507.
4.1 As well as the consultants’ work, which engaged with users through the Voluntary
Management Committee, Officers have completed a range of meetings with the
143

sports clubs and groups that use the facility on a regular basis, along with other stakeholders. Again, this was based on the potential for the management of the community facility to be transferred to the school. The detail of the consultation is contained at Appendix 2 but the main issues raised can be summarised as follows:
ƒ Some were anxious that the School would not have the financial security or management ability to sustain the current community provision and/or that it should not be running such facilities in any case.
ƒ Others did not believe that there are any other ways of running the centre than the current structures and pricing.
ƒ Some clubs felt that prices will rise too much to allow the community to use the facility as it does now.
ƒ However, others agreed that the facility can be run differently and indeed, are quite prepared to see modest increases in increase in hire fees in order to secure the future of the sports centre.
4.2 Officers have met with local Members on three occasions. In addition, there have been separate and wide ranging discussions with individual local members, all of whom were concerned with the original proposal to transfer management of the facility to the school.
4.3 The Council has also consulted with Sport England. Whilst Sport England would prefer to see the facility remain with a full Council subsidy, there is also clear understanding of the need to balance council priorities against budget.
Sport England recommended the consultants used in this project and has agreed to support the Council to try and ensure long term sustainability of the community facility.
5.1 The key point in considering any future option, is the position the school wishes to take on any proposal. Whilst initial discussions were relatively positive, it is clearly understandable that the school would rather the Council continues with the current agreement and subsidy of its facility at the same level. However, and especially in the current financial climate, the terms of the existing agreement are not sustainable.
5.2 Some stakeholders have asked why North Walsham has been considered and not the other Dual Use Sports Centres. The initial reasons were the belief that, with the Atrium Centre now completed, there were real opportunities to drive further efficiencies in overall community leisure provision. In addition, there is already clear evidence of community involvement in the sports facility and this may well open up further funding options in the future. The North Walsham facility also has higher direct costs than the other two facilities.
144

Once the review process is completed for North Walsham, it is intended to open discussions with the other schools, to ensure the terms of the agreements there also allow the costs of community use to be covered.
5.3 Several stakeholders have raised concerns regarding the potential of the school to run the sports centre in the future and, as stated earlier, some do not accept that there are any other possible management models. Some of this is also linked to The Atrium being primarily an arts based facility.
Whilst, there are very clear areas of potential synergy in jointly managing adjoining facilities, both of which provide leisure activities for the local community, it is felt that the best option at present would be for the Council to continue the management of the centre, but on significantly improved terms and with more control on the setting of fees and charges.
5.4 Other options which have been considered are as follows:
•
Serve the required two year notice on the school to end the agreement.
This is not preferred as community demand exists, no other provision is in place in North Walsham and there are doubts raised as to the school’s willingness or ability to manage the centre in the future.
•
Serve the required notice with a lump sum alternative to the school.
Again, this is not preferred as there is no guarantee of future community involvement with the Voluntary Management Committee or similar.
5.5 With regard to different governance models, the opportunity clearly exists for the consideration of a charitable trust model for running the sports centre. This could be under a combined trust with The Atrium Centre or under a separate sports trust, for example, as a Community Amateur Sports Club.
In addition, the school is understood to be already considering a Trust for the purposes of managing the Atrium at some time in the future. Such a Trust could be formed with relatively wide charitable objects covering the provision of both arts and sports based leisure activity for the local community.
There are potential financial benefits for a charity based operating model, but at this point, it is considered important to review the Agreement with the School first and consider opportunities for charitable models at a later date.
5.6 All stakeholders recognise that any community sports activity requires voluntary
input from within the community served. The proposal to review the Agreement with the school and change the responsibility for setting fees and charges will still see the Voluntary Management Committee retained.
6.1 There are no environmental sustainability issues arising directly from the proposal, as it is assumed that the facility will continue to operate, giving continued local access to sports and active leisure.
145

7.1 There are no equality issues arising directly from the report and it should be stressed that access to the facility is not at risk, including use by disadvantaged groups.
8.1 There is little doubt that the provision of sports and other active leisure facilities
has a positive impact on local crime and anti-social behaviour. The continued access to the facility, including both young people and programmes such as
KICKZ, which involves the police, will support this.
9.1 As with any sports facility, the reputational risk to the Council of any change in provision is potentially high. However, the community benefits which could accrue from an improved management solution in the future are very significant, with better public and community interaction with the school and the potential for the facility to genuinely sit at the centre of the local community.
9.2 In order to facilitate any changes, it is proposed that officers would work to review the Agreement with the school. It is important that, in order to maintain the facility, it is put on a sustainable financial footing in a timely manner. It is therefore suggested that any negotiations are completed in time for the financial changes to be put in place for the 2013-14 financial year
9.3 Legal and contractual risks are being managed by ensuring appropriate legal advice is taken during the process and the Council’s legal team will draw up the proposed variations to the Agreement.
10.1 It is clear that the Council’s Community Sports provision at North Walsham has good community support, evidenced by the success of some of the user clubs and the active Voluntary Management Committee.
10.2 From the consultant’s report, it is clear that the current user fees are too low and need to be reviewed. Officers and the Voluntary Management Committee will have to work closely to ensure that, as far as possible, the future fee structure covers the cost of providing the facility for community use.
10.3 The Council’s payment to the school should cover the additional costs incurred by the school in having its facilities open for community use and not further subsidise the school’s base budget to the Council’s detriment.
10.4 Such proposals, which will secure the community use of the schools facility under the Council’s stewardship, will require significant variation to the contractual
146

agreement between the Council and the school, which has not been reviewed since its inception in 1986 and is now seen as being out of date.
1) That officers are authorised to negotiate and conclude variations to the Dual
Use Agreement with the North Walsham High School to ensure that: a. The Council pays the school only for the additional costs incurred in having the school buildings open for community use b. The Council assumes overall responsibility for setting all fees and charges relating to the Dual Use Centre, in consultation with the
Voluntary Management Committee
2) That, should it be necessary to serve Notice to vary the existing or enter into a new Agreement to be implemented by 1 April 2013, officers, with the agreement of the relevant portfolio members, are authorised to serve the required notice on the school to end the current Dual Use Agreement.
3) That officers are authorised to work with the Voluntary Management
Committee to improve local management of the Dual Use Centre, including the setting up of a Community Sports Trust if this is feasible.
4) That improvements to the facilities, such as the provision of a MUGA at the
Dual Use Centre, are explored further with the school.
5) That officers are authorised to negotiate and conclude variations to the Dual
Use Agreements with Cromer Academy and Stalham High School as per recommendation 1 above.
147

Appendix P Consultants Report .
3-009-1213 North
Walsham High School
Options
Summary.doc
Appendix R: Stakeholder Consultation
Voluntary
Management
Committee
North Walsham
Town Council
•
Why are other Sports Centres not being considered
•
The proposal seems to be tied in with the running of the Atrium but money must not be diverted from supporting the Sports Centre to help with the Atrium’s financial situation
•
North Walsham High School has little idea of how the centre is run and the input provided by volunteers
•
Concern was expressed in discussion that the
High School is struggling to attract more users to the Atrium and there is no clear management structure or business plan.
•
Loss of the facility would lead to increased crime and disorder problems.
•
Trust model preferred
North Walsham
Tennis Club
Badminton
•
Old tarmac courts now almost unusable.
•
The new courts on Memorial Park could work better with the Dual Use facility.
•
Sceptical of the schools ability to manage the facility.
•
Concerned with risk of closure.
•
Accepted the potential benefits of a charitable sports trust
•
Concerned that the school will close the facility after the two years
•
Is this the end of the Management Committee
•
Are staff being retained
•
Why doesn’t the Council just increase fees to
• prevent this happening
What happens if the School isn’t able to maintain the community use of the facility
Table Tennis Club
•
Any surplus cash will go to the Atrium and sport
Gymnastics Club could lose out if the two were merged
•
Charges could rise too much
•
Happy to work with whoever is running the facility to get capital improvements in the centre
148

Karate
Tai Chi
•
Will the school close during the holiday period
•
School Open Evenings – will bookings be honoured
•
Complaints procedure, schools not always so good as LA
•
Will there will open access to clubs and not preferential treatment to school activity
•
Main concern about already low numbers being put off by significant price rises
149

Appendix P
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
FINAL DRAFT REPORT
OCTOBER 2012
1-2 Frecheville Court off Knowsley Street Bury BL9 0UF
T
0161 764 7040
F
0161 764 7490
E
mail@kkp.co.uk
www.kkp.co.uk
150

Appendix P
Quality assurance
Report origination
Quality control
Name
Tony Riddington
Peter Millward/Cristina Bianco-Lynn
151
Date
1 October 2012
8 October 2012

Appendix P
CONTENTS
Background to the Business Plan Options.................................................................... 4
Pricing Policies ................................................................................................................. 5
Dual Use Agreement ........................................................................................................ 6
Option 1: Terminate Agreement Restricting Sports Facilities to School Use Only ... 6
Option 2: School Operates the Sports Centre on Caretaker Basis.............................. 7
Option 3: School Operates Sports Centre on Current Basis Using NNDC Staff ........ 8
Option 4: As Option 3 Plus Enhanced Facilities............................................................ 9
Future Possibilities .......................................................................................................... 9
Appendix: Options Summary
October 2012 3-009-1213 Knight Kavanagh & Page
152
3

Appendix P
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
BACKGROUND TO THE BUSINESS PLAN OPTIONS
Knight Kavanagh and Page (KKP) was approached by North Norfolk District Council
(NNDC) to review the operation of the dual use sports centre attached to the North
Walsham High School (NWHS). The brief was to develop series of options supported by outline business plans for the local authority to consider with a view to offering the community use operation of the sports centre to the school.
The baseline budgets for each of the respective options and their projections have been taken from the current income and expenditure figures provided by NNDC. The sports centre provided current charges and facility booking data.
Prior to the development of the business plan options, KKP had one meeting with the school governors and members of the school’s management team. Figures for the school’s current cleaning, heating, lighting and maintenance costs for the joint use areas were provided by the school’s Business Manager. These costs form part of the annual rental figure that the school charges NNDC for community use of the building.
As part of the initial evaluation, the pricing structure for the centre was examined as well as the detail of original joint use agreement between the County and District Councils.
October 2012 3-009-1213 Knight Kavanagh & Page
153
4

Appendix P
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
PRICING POLICIES
The Voluntary Management Committee (VMC) has control over the pricing structure at
NWSC. This group largely consists of representatives of the various clubs and groups that use the centre. The VMC was created as part of the dual use agreement and has been in place since the centre opened in the mid 1980’s. There is external input into the pricing decisions made by the VMC as NNDC has both member and officer representatives on this body. However the users representatives are in the majority on the committee and in the past, price rise suggestions have been held back, reduced or vetoed. As a consequence the NWSC price structure is adrift of what would be considered the market rate for such facilities. A brief check on hourly rate of other dual use centre charges revealed some significant differences.
Hourly Rates
Sports Hall Small hall Badminton (court)
Chilwell Olympia
Sports Centre, Notts
Meridian Leisure
Centre, Louth, Lincs
£37.50 £22.00 £9.50
£33.00 £22.00 £8.25
Buxton Community
School, Derbys
Malpas Sports
Centre, Cheshire
£32.00 £24.00 £7.00
£40.00 £24.00 £8.60
Amesbury Sports
Centre, Wilts
£31.75 n/a £9.05
Clearly, economic factors and/or local competition can keep prices down but neither of these appears to apply in North Walsham. We feel that there is scope for price increases on hall hire charges.
Hire charges for badminton appear to be in line with elsewhere but the way the centre operates its own club based sessions results in a shortfall in income when compared to the hourly rate. The badminton club pays £2.50 per person for their twice-weekly booking of four courts. For an hourly rate per person in most centres this would be reasonable but in the NWSC case this is for two hours at peak time rates. Depending on the numbers attending the session this could result in a loss of potential income to the centre of around
50%.
A detailed examination of other centre club based sessions may reveal a similar picture but based on these two examples there is considerable scope for increasing the revenue at NWSC from fees and charges.
5 October 2012 3-009-1213 Knight Kavanagh & Page
154

Appendix P
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
DUAL USE AGREEMENT
The situation with regard to dual use agreements is complex. Most were set up from the
1960’s onwards when local authorities took an increasingly active role in sports and leisure provision; quite simply, the sharing of facilities made sense. Schools generally got a better standard of sports facilities than would otherwise have been the case and the local community got a sports centre with the savings of a shared capital cost. The school and sports centre were seen to be providing facilities for the benefit of the community, one educational and the other recreational. In most counties across the country, except perhaps Norfolk, both parties shared common costs such as maintenance, heating and lighting to an agreed formula depending on the areas involved and level of use. This seems to have been the case in Norfolk but with an additional important element – rental payable to the school over and above the shared common costs. The impact on the financial position of NWSC is significant.
Based on the 2011/12 figures provided by the Business Manager at the school, the shared costs for heating, lighting and cleaning are around £18,500. The total paid over to the school each year is around £44,000 making the rental element 58% of the total paid over to the school (£25,500 of £44,000). Were this ‘subsidy’ to be lost it would add a considerable additional financial burden to a facility that is already heavily subsidised.
OPTION 1: TERMINATE AGREEMENT RESTRICTING SPORTS FACILITIES TO
SCHOOL USE ONLY
Should NNDC give notice then the school would no longer receive the rental figure for the dual use facilities after the two-year notice period expires. Currently this is around £44k per annum, this forms part of the school’s base budget. If this amount is ‘cut’ from the school’s funds NWHS may decide, quite reasonably, restrict the sports facilities to school use only. The school may be able to make some savings on the heating, lighting and maintenance costs incurred by not opening the facilities for community use. This would depend on the school’s building services control mechanisms being configured in a way that enables zones not in use to be switched off out of school hours.
There are few other options for sports hall and indoor-based sports activities in North
Walsham should the Sports Centre not be open for community use. Most of the clubs and community groups that currently use the centre would have difficulty finding alternative local venues. The Victory Swim and Fitness Centre has no facility for activities which require a sports hall.
October 2012 3-009-1213 Knight Kavanagh & Page
155
6

Appendix P
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
OPTION 2: SCHOOL OPERATES THE SPORTS CENTRE ON CARETAKER BASIS
Many schools open their facilities for community use outside school hours. Often this is managed through a caretaker system. NWHS has recently increased its caretaker team to assist in the operation of the newly completed school/community building – The Atrium.
To save on sports centre operational staff, and thus costs, the school could operate the sports centre on a block-booking basis only. Under such a scheme clubs and groups would pre-book on a termly basis for their particular activity and the caretaker(s) would open the building at the appropriate time and close up afterwards. The caretaker would remain on-site but not supervise the activities. Without a staffed reception when the centre is open on-site it would not be practical to take casual or ‘walk-up’ bookings. This would result in an estimated 5% reduction in use and may have implications for health and safety responsibilities for the school. The school’s Business Manager has indicated that this would require further investigation.
More importantly, the charging structure for the centre would need to be overhauled. The voluntary management committee, comprised of various representatives of local sports groups have not felt able, or the need, to increase hire charges for the facilities. Thus there have been no price increases at the centre for three years and prior to that any increases were kept well below inflation. Charges are now significantly adrift of those levied at similar joint use centres in rural market towns. As a result, it is suggested that once the school has responsibility for pricing that charges are increased by 50% initially and then 10% per annum thereafter until parity with benchmarked centres is reached.
Given the resistance such a sharp increase in charges it is estimated that bookings would decline by 20% in the first year levelling off thereafter and that there would be merit in outlining the alternative consequence of inevitable financial instability without such an increase.
With only a caretaker service to operate the centre a bar would not be feasible, nor cost effective if separately staffed. This would result in a further loss of revenue and reduce the opportunities for secondary spend from users. There is an opportunity for the voluntary committee to be involved here.
A caretaker only service would not provide the important developmental aspects to the service to ensure that new users are targeted, new activities promoted and the centre is marketed in an effective way. Over time this is likely to result in a decline in centre usage as it is likely to be viewed as less accommodating of casual/new users and could well become an invitation only venue/clique.
Under this option it is difficult to see the centre operating in any other way than with a significant subsidy – the source of which cannot currently be identified.
October 2012 3-009-1213 Knight Kavanagh & Page
156
7

Appendix P
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
OPTION 3: SCHOOL OPERATES SPORTS CENTRE ON CURRENT BASIS USING
NNDC STAFF
Under this option NNDC pays over to the school £162,378 in lieu of notice. This is equivalent to the council’s two years net budget for the centre and includes the Sports
Hall equipment reserve fund of £15k of which £6.5k has been earmarked for business support. This draft business plan forms part of that support and will be deducted from the amount paid to the school. In return the school takes over running the sports centre (as a community facility) using the present site operational staff and maintains the existing level of service.
As with Option 2 the centre’s pricing structure would need to be addressed. Having operational staff on site while the centre is open would allow the introduction of an admission charge per head. This would be over and above the court hire charges and would be a way of raising revenue from all users, especially the larger groups who use the court space more intensively ie gymnastics, martial arts and trampolining. Having discussed this approach informally with the Acting Chair of the Management Committee, it is believed that this would be much more acceptable to the present users than the 50% increase in court hire charges outlined in Option 2 and less likely to result in a significant decline in usage. Subsequent years would see a rise in court hire fees to improve the income stream.
Bar operation would continue but with increased prices, closer to those of other licensed premises in town.
Line management would be through the school’s management team – either the
Business Manager or an alternative management arrangement put in place by the school for The Atrium.
Within the operational hours for the sports centre there is an allowance of approximately
15% of the Senior Leisure Centre Assistant’s time to undertake the important development work required to maintain and expand the centre’s user base.
There are a number of opportunities that exist within the centre’s programme that offer potential for growth. Currently the schools make very little use of the 4 – 6pm slot for after school activities. In most leisure centres this is a difficult session to fill but there may be scope for the centre to promote activities for young people in this currently ‘dead’ time as after school clubs. Similarly, there is little use of the sports hall on a Saturday morning apart from late morning roller-skating on alternate weeks. More could be made of this – junior badminton or short tennis sessions for example. There are also the opportunities presented by the school holidays. Historically the sports centre has not had much success in this area but there may be scope for a fresh look at this, perhaps by tapping into the existing networks within the school to provide activities that meet a latent demand. All of the above are potential areas for growth but as they are yet unproven no allowance for them has been made in the financial projections.
Given the suggested changes to pricing structures and the opportunities for development work by the operational staff, the projections indicate a significant improvement in the income to expenditure ratio such that by 2017 the centre covers its direct operating costs.
3-009-1213 Knight Kavanagh & Page 8 October 2012
157

Appendix P
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
OPTION 4: AS OPTION 3 PLUS ENHANCED FACILITIES
There would be scope within the site and without extending the staffing structure to increase the income generation potential of the centre by the addition of a floodlit Multi
Use Games Area (MUGA). This clearly would be subject to planning and other considerations but this could have a significant impact on the income generation of the centre as well as meeting the known local demand for a small artificial pitch for football training and 5-a-side competition.
The school could reinvest a proportion of the lump sum from NNDC in such provision but at the same time, NNDC would need to approve a £20k capital contribution to its development.
The council has also offered officer time to assist the school in making grant applications to funding bodies such as Sport England to make up the estimated £100k that would be needed for the MUGA. Supervision would be by the school’s existing operational staff.
Allowing sufficient time to seek the balance of funding, planning and construction, however, means that it is unlikely that the MUGA could be fully operational until 2014.
Projections, for this option, show the centre breaking even on direct operations by the end of 2014 and a small but increasing surplus thereafter.
FUTURE POSSIBILITIES
Management Arrangements
The school has not yet decided on the management operation for The Atrium but given its proximity to the sports centre on the school site there may be opportunities for shared management of the two facilities with a consequent saving of common overheads such as a booking system. However without the detail of the future management arrangements for
The Atrium, this is impossible to factor into the projections at present.
NNDC grant offer
Recognising that this may have a negative impact on the school’s financial position
NNDC may be prepared, subject to discussions, to offer a transitional grant arrangement to the school to smooth the operational transfer of the sports centre to the school. In terms of the two bodies’ financial position, this could mean for example, an ongoing grant of £17k from NNDC giving the council a net saving of £60k whilst from 2014 giving the school a reduced negative position of around £25k.
October 2012 3-009-1213 Knight Kavanagh & Page
158
9

Appendix P
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
Charitable Status
There may be scope to consider running the sports centre as a charitable trust. Current benefits to this include the possibility of claiming tax relief on donations as well as grants being available from other charities e.g. community foundations and other bodies supporting charities and the voluntary sector. NNDC has a set up fund specifically to assist community groups who wish to benefit from charitable status and funds may be available from this source to explore this option in more detail.
October 2012 3-009-1213 Knight Kavanagh & Page
159
10

Appendix Q
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
Option 1 – Do Nothing
NNDC Rent
Lettings Income
2013
44,000
Additional revenue costs
Net revenue
Estimated Cost savings
Impact on school budget
2014
44,000
2015
-
-
-
-
18,483
-£ 25,517
2016
-
-
-
-
18,483
-£ 25,517
2017
-
-
-
-
18,483
-£ 25,517
Assumptions:
•
NNDC gives two years notice to terminate agreement.
•
NWHS decides not to continue community use of sports facilities.
•
NWHS able to save additional heating and cleaning costs for the shared areas.
Page 1 of 7
160

Appendix Q
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
Option 2 – School Operation using Site Staff
NNDC Rent
Lettings Income
Additional revenue costs
Net revenue
2013
44,000
2014
44,000
2015
-
28,125
39,915
- 11,790
2016
-
29,391
41,112
- 11,722
2017
-
32,330
42,346
- 10,016
-£ 54,016 Impact on school budget -£ 55,790
Assumptions:
•
NNDC gives two years notice to terminate agreement.
•
50% increase in lettings charges in 2015
•
25% reduction in usage in 2015
•
Bookings only - no casual use.
•
No
•
Open evenings 5 - 10pm
•
Weekends as required by bookings
•
Caretaker
•
Bookings through Business Manager
•
10% increases in lettings charges per annum from 2016 on
•
3% Inflation on expenditure per annum
-£ 55,722
Page 2 of 7
161

Appendix Q
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
Option 3 - School Operation using existing NNDC Staffing Arrangements
NNDC Lump Sum contribution
Income
Expenditure
Net revenue
Impact on school budget
Net effect against current rental
2013
155,878
£
65,800
72,820
- 7,020
148,858
104,858
2014
-
68,300
75,005
2015
-
70,800
77,255
- 6,455
2016
-
76,110
79,572
- 3,462
-£ 50,705
- 6,455
-£ 50,455
-
-£
3,462
47,462
2017
-
81,818
81,960
- 141
- 141
Assumptions:
•
NNDC lump sum offer in lieu of notice accepted by school and agreement terminated.
•
Existing two sports centre operational staff transfer over to school.
•
Line management through Business Manager.
•
Current opening hours and level of service maintained.
•
Per Capita charge £1 per adult, £0.60 per junior introduced on admissions from 2013, hire charges remain unchanged.
•
Hire charges increase by 10% in 2014 - 7.5% annually thereafter.
•
Bar prices increased by10% 2013
•
3% Inflation on expenditure per annum
Page 3 of 7
162

Appendix Q
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
Option 4 – School Operation as Option 3 with Enhanced Facilities
NNDC Lump Sum contribution
Less £50K capital for MUGA
Income
Expenditure
Net revenue
Impact on school budget
Net effect against current rental
2013
175,878
132,378
65,800
72,820
- 7,020
125,358
£ 81,358
2014
-
81,924
80,420
1,504
1,504
-£ 42,496
2015
-
88,068
82,833
5,236
5,236
-£ 38,764
2016
-
94,673
85,318
9,356
9,356
-£ 34,644
2017
-
99,407
87,877
11,530
11,530
-£ 32,470
Assumptions:
•
As Option 3 with the addition of a floodlit Multi Use Games Area (MUGA)
•
NNDC provides additional £20k over and above lump sum towards MUGA cost plus officer support for grant applications and securing other external sources of capital.
•
MUGA constructed during 2013 coming on-stream fully in 2014
Page 4 of 7
163

Appendix Q
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
Appendix 1 – Budget Build Up Sheet Option 2
Staffing Costs
Caretaking (2) p/t
Cleaner
Hours per week
20
8
11,362
3,470
14,832
Premises
Repairs and maintenance
Equipment
Equipment repairs and maintenance
Office supplies
Telephone
Web site
Printing and Stationery
Advertising
Heating and lighting
Cleaning
4,000
400
350
100
250
500
200
800
7,983
10,500
25,083
39,915 Expenditure
Income
Lettings 28,125
Surplus/Deficit
28,125 28,125
-£ 11,790
Page 5 of 7
164

Appendix Q
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
Appendix 2 - Budget Build Up Sheet Option 3
Staffing Costs
Snr LC Asst
Attendant part time
Holiday cover (8 wks)
Hours per week
37
14
25,085
6,402
2,600
Premises
Repairs and maintenance
Equipment
Equipment repairs and maintenance
Office supplies
Telephone
PRS Licence
Web site
Printing and Stationery
Advertising
Consumables for resale
Heating and lighting
Cleaning
Expenditure
Income
Lettings per capita charge
Bar and equipment sales
4,000
400
350
100
250
650
500
200
800
11,000
7,983
12,500
25,000
24,000
16,800
34,087
38,733
£ 72,820
Surplus/Deficit
65,800 £ 65,800
-£ 7,020
Page 6 of 7
165

Appendix Q
NORTH WALSHAM HIGH SCHOOL DUAL USE SPORTS CENTRE
BUSINESS PLAN OPTIONS
Appendix 3 - Budget Build Up Sheet Option 4
Staffing Costs
Snr LC Asst
Attendant part time
Holiday cover (8 wks)
Hours per week
37
14
25,085
6,402
2,600
Premises
Repairs and maintenance
Equipment
Equipment repairs and maintenance
Office supplies
Telephone
PRS Licence
Web site
Printing and Stationery
Advertising
Consumables for resale
Heating and lighting
Cleaning
Expenditure
Income
Lettings per capita charge
MUGA (from 2014)
Bar and equipment sales
5,000
500
500
150
300
650
500
200
800
13,250
11,983
12,500
25,000
29,320
7,104
20,500
34,087
46,333
80,420
Surplus/deficit
81,924 81,924
£ 1,504
Page 7 of 7
166