Minutes:
The Committee considered the undernoted report:
“1.0 Purpose of Report or Summary of main Issues
1.1 The Strategic Policy and Resources Committee, at its meeting on the 5 January 2018, considered the proposed 2018/19 revenue budgets and proposed cash limits for the Strategic Policy and Resources, People and Communities, City Growth and Regeneration and Planning Committees.
1.2 The Committee agreed the recommended cash limits for the Strategic Policy and Resources, People and Communities, City Growth and Regeneration and Planning Committees, subject to consultation with the other Committees prior to the next meeting of the Strategic Policy and Resources Committee on the 19 January 2018.
1.3 This report provides feedback from the meetings of the People and Communities Committee on the 9 January 2018 and the City Growth and Regeneration Committee on the 10 January 2018. A verbal update from the meeting of the Planning Committee on the 16 January 2018 will be provided at the meeting. This report also makes the final recommendations for the Committee Cash Limits, Capital Financing Limit and District Rate for 2018/19.
2.0 Recommendations
2.1 The Committee is asked to:
· Agree that this paper should not be subject to call-in (as indicated above) because it would cause an unreasonable delay which would be prejudicial to the Council’s and the public’s interests in striking the district rate by the legislative deadline of 15th February 2018.
· Confirm the cash limits agreed by the Committee at its meeting on the 5 January 2018 as follows:
- A cash limit of £45,662,169 for the Strategic Policy and Resources Committee for 2018/19, including £3,270,000 relating to the Belfast Investment Fund.
- A cash limit of £76,027,990 for the People and Communities Committee for 2018/19.
- A cash limit of £16,036,980 for the City Growth and Regeneration Committee for 2018/19.
- A cash limit of £1,551,099 for the Planning Committee for 2018/19.
- The capital financing budget of £20,706,901 for 2018/19.
· Agree that the increase in the district rate for 2018/19 should be 1.98%, based on an estimated penny product of 5,953,980 meaning a non-domestic rate of 26.8703 and a domestic rate of 0.3263 and that the amount to be raised through the district rate in 2018/19 will be £154,726,087.
· Note the Director of Finance and Resources statement on the adequacy of the Council’s reserves position and the robustness of the revenue estimates as required by the Local Government Finance Act (NI) 2011.
· Note the Minimum Revenue Provision (MRP) Statement (Appendix 5) as required by the Local Government (Capital Finance and Accounting) Regulations (NI) 2011.
3.0 Main report
3.1 Table 1 below summarises the net cost of the Council for 2018/19 and shows that the amount to be raised through the district rate in 2018/19 is £154,726,087. This represents a 1.98% increase in the district rate.
Table 1 Cost of Running the Council in 2018/19
|
|
Cost (£) |
|
Strategic Policy and Resources Committee |
42,392,169 |
|
People and Communities Committee |
76,027,990 |
|
City Growth and Regeneration Committee |
16,036,980 |
|
Planning Committee |
1,551,099 |
|
Net Departmental Expenditure |
136,008,238 |
|
Belfast Investment Fund |
3,270,000 |
|
Capital Financing |
20,706,901 |
|
Total Net Council Expenditure |
159,985,139 |
|
Less Derating Grant |
-5,259,052 |
|
Amount to be Raised from the District Rate |
154,726,087 |
Strategic Policy and Resources Committee Cash Limit
3.2 The recommended cash limit for the Strategic Policy and Resources Committee agreed by the Committee at its meeting on the 5 January 2018 is £45,662,169, which includes £3,270,000 relating to the Belfast Investment Fund and the additional £1.6m of funding for European Capital of Culture (£374k), City Centre Regeneration (£240k) and City Deal (£1m).
3.3 The revenue estimates for the Strategic Policy and Resources Committee comprise the revenue budgets for the Chief Executive’s Department including City Centre Regeneration, Property and Projects Department and the Finance and Resources Department.
3.4 The budget for each main service area and corporate finance budgets are summarised in Appendix 1.
People and Communities Committee Cash Limit
3.5 The People and Communities Committee, at its meeting on the 9 January 2018, noted the revenue budget and cash limit of £76,027,990 as recommended by the Strategic Policy and Resources Committee. Each main service area is summarised in Appendix 2.
City Growth and Regeneration Committee Cash Limit
3.6 The City Growth and Regeneration Committee, at its meeting on the 10 January 2018, noted the revenue budget and cash limit of £16,036,980 as recommended by the Strategic Policy and Resources Committee. Each main service area is summarised in Appendix 3.
Planning Committee Cash Limit
3.7 The Planning Committee at its meeting on the 16 January 2018, considered the revenue budget and cash limit of £1,551,099 as recommended by the Strategic Policy and Resources Committee. A verbal update from the Planning Committee will be provided at the meeting. Each main service area is summarised in Appendix 4.
Belfast Investment Fund
3.8 The annual contribution to the Belfast Investment Fund is £3,270,000 and this is included in the Strategic Policy and Resources Cash Limit above.
Capital Financing Budget
3.9 The Council will have secured a capital financing budget of £20,706,901 in 2018/19 to support its capital investment programme. This includes increases to the capital financing budget as a result of efficiencies generated by the Waterfront Hall (£200k) and Accommodation Strategy (£755k) along with the inclusion of £1m increase to the capital financing budget as agreed at the meeting of the Strategic Policy and Resources Committee on 5 January 2018.
The 2018/19 capital financing budget is summarised in Table 2 below.
Table 2 – Capital Financing Budget 2018/19
|
Capital Financing |
(£) |
|
Capital Programme |
11,312,676 |
|
Transferred LGR Loans |
677,319 |
|
Leisure Investment Programme |
7,100,906 |
|
Accommodation Efficiencies |
1,416,000 |
|
BWUH Efficiencies |
200,000 |
|
Total |
20,706,901 |
De-rating Grant
3.10 The grant received from central government (De-rating Grant) which compensates the Council for de-rated properties will decrease by £29,126 to £5,259,052 in 2018/19.
Local Government Finance Act (NI) 2011
3.11 The Local Government Finance Act (NI) 2011 requires the Director of Finance and Resources, in his role as designated chief financial officer, to provide assurance to Members on the robustness of the revenue estimates. The Finance Act requires the Council to have regard to this statement when considering the estimates and the amount estimated to be required to be raised by means of rates. He is also required to report on the adequacy of the Council’s reserves position as part of the rate setting process.
3.12 The development of the revenue estimates for 2018/19 commenced in June 2017 with the identification of uncontrollable costs arising from external influences, the development of the detailed budgets at cost centre and account code level across the organisation and the consideration and challenge of base budgets and growth proposals.
3.13 Reports were presented to the Strategic Policy Resources Committee from August 2017 to January 2018 which detailed the budgetary pressures facing the Council, based on uncontrollable costs (e.g.salary costs including pay rise and pensions, utilities, waste contracts) and additional investment to support the Belfast Agenda. These reports also provided updates to Committee on the efficiency programme which resulted in £3,008,951 of efficiencies being removed from base budgets.
3.14 As the result of this process the Director of Finance and Resources is satisfied that the estimates presented should provide adequate financial resources to support the running costs of the Council for 2018/19 and that reasonable consideration of the financial risks to the Council have been made in the preparation of the estimates.
3.15 Alongside the development of the revenue estimates, work was undertaken with Land and Property Services (LPS), supported by the Institute of Revenues, Rating and Valuation (IRRV) to validate the Estimated Penny Product for 2018/19 including losses on collection.
3.16 The increase in the rate base, due primarily to more commercial properties coming on the valuation list, resulted in the Estimated Penny Product (EPP) being increased by £83,790 (1.48%) which generates an additional annual rates income of £2,076,392. This revised EPP has been included in the district rate calculations.
3.17 The Council’s general reserves position is forecast to be £14.2m by the end of 2017/18. The Director of Finance and Resources believes that the level of reserves should be maintained at this level to safeguard the Council’s exposure to financial risk including any backdated element of non-domestic revaluation appeals.
3.18 The Director of Finance and Resources is therefore satisfied with the robustness of the revenue estimates and that the reserves position is adequate for the Council and does not require enhancement though the district rate in 2018/19.
Regional Rate
3.19 The Regional Rate has not been set at this stage.
Impact on Ratepayer
3.20 Table 3 below illustrates the impact of a 1.98% increase in the district rate on ratepayers by average property type.
Table 3: Impact on Ratepayer by Property Type
|
Property Type |
Annual Increase |
Monthly Increase |
|
Terraced House |
£5.48 |
£0.46 |
|
3 Bed Semi-Detached |
£8.38 |
£0.70 |
|
4 Bed Detached |
£18.63 |
£1.55 |
|
Apartment |
£5.29 |
£0.44 |
|
Average Office |
£144.02 |
£12.00 |
|
Average Retail |
£140.53 |
£11.71 |
Communication
3.21 It is proposed to use the following key messages for the announcement of the agreed rate:
· Belfast City Council has agreed a district rate increase of 1.98% which is 1.02% below the current rate of inflation.
· To set this level of district rate, the Council has delivered £3.0m of cash savings without impacting on frontline service delivery.
· The average impact on domestic ratepayers is less than £1 per month or less than £10 per year. Business and offices will pay on average an extra £12 per month or £143 per year.
· The Council has shown responsible leadership by achieving the balance between investing in the city to secure jobs and grow the economy during these difficult times while also providing value for money services.
· The Council’s long term strategy is to improve the retail and hotel offering and office and business infrastructure to attract major investors and businesses to the city in order to increase its rate income, with the effect of further investment and keeping rates as low as possible.
· The Council will continue to maintain and improve its services, to invest in local communities while at the same time committing to generate further efficiency savings £3 million in the next year.
· Over the past three years of the current Council Term the District Rate increase has been maintained below the rate of inflation providing a real term reduction.
· The Council will invest:
o £18.77m in city centre regeneration projects
o £40m in local regeneration projects
o £150m in providing new facilities and refurbishing existing ones
o £105m in new leisure facilities.
3.22 In addition, Corporate Communications will produce a press release for Members. A pull out section on the district rate, services and capital investment will be provided in the next edition of City Matters. The My Rates Page on the website will be updated.
3.23 Financial & Resource Implications
The report details the cash limits and level of district rate required to meet the additional financing requirement of the Council for 2018/19.
3.24 Equality or Good Relations Implications
There are no equality or good relations implications associated with this report.”
|
APPENDIX 1 |
|||||
|
STRATEGIC POLICY & RESOURCES COMMITTEE |
|||||
|
ESTIMATE ANALYSIS 2018-19 |
|||||
|
|
|||||
|
SERVICE |
BUDGET |
||
|
2018-19 |
|||
|
Corporate Priorities. |
6,372,785 |
||
|
City Centre Regeneration |
1,389,322 |
||
|
Human Resources |
3,040,950 |
||
|
Democratic Services |
2,098,133 |
||
|
Corporate Communications |
1,215,412 |
||
|
Central Support Unit |
1,745,112 |
||
|
Legal Services |
1,682,493 |
||
|
Strategic Policy |
727,813 |
||
|
Corporate Management |
1,663,474 |
||
|
Finance & Performance |
2,425,147 |
||
|
Digital Services |
4,972,859 |
||
|
Audit |
1,025,714 |
||
|
Corporate Directorate |
1,048,441 |
||
|
Property Mgmt |
1,756,917 |
||
|
Estates |
-4,632,135 |
||
|
Facilities |
14,684,639 |
||
|
Contracts |
784,621 |
||
|
Good Relations |
390,472 |
||
|
COMMITTEE TOTAL |
42,392,169 |
||
|
Belfast Investment Fund |
3,270,000 |
||
|
Capital Financing |
20,706,901 |
||
|
APPENDIX 2 |
|||||
|
|
|
|
|
|
|
|
PEOPLE & COMMUNITIES COMMITTEE |
|||||
|
ESTIMATE ANALYSIS 2018-19 |
|||||
|
|
BUDGET |
||
|
SERVICE |
2018-19 |
||
|
Cleansing |
17,837,368 |
||
|
Community Services |
6,704,110 |
||
|
Directorate Support |
2,704,307 |
||
|
Environmental Health |
6,945,147 |
||
|
Leisure - GLL |
7,800,000 |
||
|
Leisure - BCC |
327,879 |
||
|
Neighbourhood & Development |
4,103,076 |
||
|
Parks & Cemetery Services |
9,162,979 |
||
|
Waste Management |
20,443,124 |
||
|
COMMITTEE TOTAL |
76,027,990 |
||
|
APPENDIX 3 |
|||||||
|
CITY GROWTH & REGENERATION COMMITTEE |
|||||||
|
ESTIMATE ANALYSIS 2018-19 |
|||||||
|
|
|||||||
|
|
|||||||
|
SERVICE |
BUDGET |
|||
|
2018-19 |
||||
|
Economic Initiatives & ID |
9,200,897 |
|||
|
Development Directorate |
2,637,682 |
|||
|
City Events & Venues |
4,156,659 |
|||
|
Carparking |
-1,098,487 |
|||
|
Estates |
356,825 |
|||
|
Zoo |
879,231 |
|||
|
North Foreshore |
-95,827 |
|||
|
COMMITTEE TOTAL |
16,036,980 |
|||
|
APPENDIX 4 |
|||||
|
|
|
|
|
|
|
|
PLANNING COMMITTEE |
|||||
|
ESTIMATE ANALYSIS 2018-19 |
|||||
|
SERVICE |
|
BUDGET |
||||
|
|
2018-19 |
|||||
|
|
||||||
|
Planning |
|
1,228,820 |
||||
|
Building Control |
|
322,279 |
||||
|
|
||||||
|
COMMITTEE TOTAL |
|
1,551,099 |
||||
|
|
|
|||||
The Committee adopted the recommendations as set out in the report.
Supporting documents: