Agenda item

            The Director of Finance and Resources submitted for the Committee’s consideration the undernoted report:

 

“1.0  Relevant Background Information

 

1.1    This report presents the non-recurrent expenditure requirements for 2014/15 and 2015/16 and makes recommendations as to how these can be financed.

 

2.0    Key Issues

 

2.1    Non – Recurrent Expenditure 2014/15

 

         The Strategic Policy and Resources Committee has already approved £2,962,241 of non-recurrent expenditure for 2014/15. This is summarised in Table One below. Members agreed, as part of their consideration of the half year finance position, that this expenditure would be financed from the forecast year end under spend of £4,307,000.

 

Table One: 2014/15 Non-Recurrent Expenditure
Leisure Mobilisation 2014/15	1,171,233
WFH Mobilisation	700,000
Innovation Centre	130,000
Temp Accommodation	80,000
Vehicles parks	164,461
Total Assets	2,245,694
Data Transfer (Building Control)	38,753
Cleansing	80,393
Ulster Orchestra	100,000
SP&R Approved Funding Requests	153,500
Pensions	238,181
Total Other	610,827
Condition surveys and remedial works	9,000
Removal costs from Bedford House	38,720
Fit out costs of new building	50,000
Connection costs to new building	8,000
Total Transfer of Functions	105,720
Total 2014/15	2,962,241

 

2.2    Non – Recurrent Expenditure 2015/16

 

         Table Two below outlines the non-recurrent expenditure requirements for 2015/16. The key drivers of these costs are the delivery of Investment Programme projects and transitional arrangements associated with local government reform.

 

         Table Two: Non-Recurrent Expenditure 2015/16

 

Employees	1,694,736
Assets	573,052
Other	720,023
Transfer of Functions	323,000
Total	3,310,811

 

 

 

 

 

 

2.3    Employees

 

         For the past three years temporary staff employed to support the delivery of Investment Programme projects and local government reform have been financed through the Waste Plan and the Local Government Reform Fund. These funds will come to an end on 31 March 2015. Table Three provides a summary of the temporary employee funding requirements by department. A detailed breakdown by post is provided at Appendix One.

         Table Three: Temporary Employees 2015/16

 

Chief Executive’s	408,458
Finance & Resources	126,718
Property & Projects	635,953
Health & Env. Services	133,385
Development	305,854
Car Parks	33,776
Planning	50,592
Total Temp Employees	1,694,736

 

 

 

 

 

 

 

 

 

 

 

 

 

2.4    Assets

 

         Table Four details the one-off costs associated with the assets transferring from Lisburn and Castlereagh. Detailed surveys of the assets have been carried out and maintenance costings have been prepared. Appendix Two provides a summary of the proposed work by asset transferring.

 

         Table Four: One – Off Asset Costs 2015/16

 

Property Maintenance - Assets transferring	393,235
Parks & Open Spaces/Tree & Path Works	127,307
Pitches Improvement	10,510
Street Signs	12,000
Building Signage	30,000
Total Assets	573,052

 

2.5    Other

 

         These costs include £429k to support the alignment of the Council’s grant aid programmes for areas transferring from Lisburn and Castlereagh. A separate report on the Decade of Centenaries will be considered by the Committee at this meeting.for additional licences for transferring staff and networking of centre site.

         Table Five: Other Costs 2015/16

 

Licences	105,000
Community Planning & City Competitiveness	100,000
Grant & Community Support	429,023
Decade of Centenaries	86,000
Total Other	720,023

 

2.6    Transfer of Functions

 

         Corporate signage on car parks must comply with legislative requirements and an additional £30k will be required to ensure compliance. Additional printers and computers will be required for the planning staff (45 staff) at a cost of £43k.The major additional expenditure requirement is £250k for advertising costs associated with planning applications. These are advertised in four local newspapers to ensure planning equality and legislative requirements are met.

 

         Table Six: Transfer of Functions 2015/16

 

Corporate Signage to car parks	30,000
IT Hardware	43,000
Planning Advertising	250,000
Total Transfer of Functions	323,000

 

         Sources of Funding

 

2.7    Table Seven shows that through a combination of sources £4.3m of finance is available. It is recommended that a transition fund of £3.31m is established to cover the one-off costs for 2015/16.

 

         Table Seven: Sources of Funding 2015/16

 

2014/15 Year end balance	1,344,759
LGR Fund	331,511
LTP Fund	420,000
Capital under spend	2,219,843
Total funding available		4,316,113
Funding required		3,310,811
Balance remaining		1,005,302

 

2.8    In terms of the remaining balance of £1m Members have a choice of transferring this to reserves or using it to support other priorities. At the Budget Panel it was agreed that further detailed discussion is required about the future of the Local Investment Fund, Belfast Investment Fund and the potential establishment of a Support Fund. A detailed report on this matter will be brought to Committee in February and it is therefore recommended that the allocation of the £1m balance should be considered as part of this future report.

 

3.0    Recommendations

 

         Members are requested to agree to:

·        The non-recurrent expenditure outlined in tables 3 to 6 for 2015/16.

·        The establishment of a transition fund of £3.13m to finance this expenditure.”

 

            The Committee adopted the recommendations.