BROADS AUTHORITY
REVISED BUDGET 2006/07 AND BUDGET 2007/08
Page
Report by Chief Executive and Treasurer and Financial Adviser 1 - 4
Broads Authority – General and Navigation Accounts Summary (Consolidated) 5 – 6
Broads Authority – General and Navigation Accounts (Consolidated) 7 – 15
Appendix 1 – General Account 16 – 23
Appendix 2 – Navigation Account 24 – 27
BROADS AUTHORITY
Revised Budget 2006/07 and Budget 2007/08
Report by Chief Executive and Treasurer and Financial Adviser
1. Introduction
1.1 The Broads Authority’s General Account funding is determined by Government through the grant paid to it by the Department for Environment, Food and Rural Affairs (Defra). The grant settlement for 2007/08 is made up as follows:
£Core Grant / 3,401,763
Additional Grant / 500,000
Access Grant / 25,000
Sustainable Development Fund / 200,000
4,126,763
1.2 The additional Defra grant of £500,000 per annum has been awarded for three years, from 2005/06 to 2007/08. In his letter confirming the grant the Minister explained that the money had been awarded to the Authority to meet its objectives in the Broads Plan:
· to improve the integrated management of the waterways;
· to work with the boating industry and local organisations to improve safety on the water; and
· to work with the Broads Tourism Forum to promote and develop tourism in the Broads.
1.3 The Access Grant is to provide for the implementation of the Countryside and Rights of Way Act 2000.
1.4 The Authority’s Navigation Account is funded by toll payers, who pay an annual toll for the use of their vessel on the Broads. Navigation tolls have been increased in 2007/08 by 6.1% for hire boats, excluding passenger and day boats, and by 9.9% for private boats.
2. General Account: Revised Budget 2006/07
2.1 The original budget for 2006/07 was originally prepared on the basis of a 0% (no inflation) grant settlement from Defra. However the Authority was subsequently – in April 2006 – awarded a revised grant of £4,025,018, which enabled a deficit budget of £1,500 to be prepared.
2.2 In July 2006 the Authority approved a series of additional projects, totalling £141,000, using the Defra inflation award and also some of the savings achieved in 2005/06.
2.3 Some of this additional expenditure has been deferred to 2007/08, additional income has been received and some budgets have been reduced through savings or slippages to 2007/08. Consequently this has allowed the Authority to prepare a revised budget of £4,154,668, which will be funded as follows:
£Defra / 4,025,018
Interest / 65,000
Contribution from Reserves / 64,650
Total / 4,154,668
2.4 The revenue fund balance stood at £828,100 as at 31 March 2006. This figure is artificially inflated by an amount exceeding £175,000 because it includes:
· expenditure to be incurred in 2007/08 for which income was received in 2005/06 and/or 2006/07; and
· project expenditure deferred/slipped from 2005/06 and/or 2006/07.
2.5 The contribution from Reserves of £64,650 will leave a balance of £763,450 as at 31 March 2007.
3. General Account: Budget 2007/08
3.1 A budget of £4,507,463 has been adopted for 2007/08, to be financed as follows:
£Defra / 4,126,763
Interest / 75,000
Contribution from Reserves (including slipped projects) / 305,700
Total / 4,507,463
3.2 For the first time the Authority has broken down expenditure into that which can be defined as running costs, and that which can be defined as one-off or project expenditure. This is so that the Authority can identify the extent to which its running costs match core income. The figures show that running costs total £3,486,700, which is only £9,900 more than core funding (Defra core grant as defined in paragraph 1.1 above plus interest).
3.3 The contribution from Reserves of £305,700 will leave a revenue fund balance of £457,750 as at 31 March 2008.
3.4 Whilst Reserves are relatively healthy – and are comfortably above the minimum recommended level of 5% of net expenditure – there is a clear need to protect the Reserves at a higher level than would normally be the case because of the uncertainty of Defra funding over the next three years. Whilst the “running costs” amount of the budget now broadly matches core income, a standstill grant settlement would at a stoke disturb this balance.
3.5 There is also uncertainty about whether the additional Defra grant will be built into the core grant settlement from 2008/09. A discontinuation of this funding would impact significantly on the Authority’s ability to deliver project work on the ground.
4. Navigation Account: Revised Budget 2006/07
4.1 A revised budget of £2,047,100 income and £2,168,100 expenditure has been adopted for 2006/07.
4.2 Income has increased by £21,900 over the original budget and expenditure has been increased by £11,200.
4.3 Navigation Account Reserves stood at £478,568 as at 31 March 2006. A contribution from Reserves of £121,000 is now forecast, replacing the original contribution of £131,700. This will leave a balance in the Reserves of £357,568 as at 31 March 2007.
5. Navigation Account: Budget 2007/08
5.1 The Navigation Account budget for 2007/08 has been approved on the basis of an increase in tolls of 6.1% for hire boats, excluding passenger and day boats, and 9.9% for private boats. This is 4% above the rate which would maintain the existing level of activity, which is currently judged to be 5.9%. This figure takes into account the effects of inflation and the decline in the hire boat fleet, and also the decrease in the hire boat multiplier from 2.9 in 2006/07 to 2.8.
5.2 Total income is estimated at £2,136,900. This includes a predicted reduction of £35,000 in the level of income from private craft, as a prudent allowance for the impact of the Boat Safety Scheme.
5.3 Total expenditure of £2,252,100 is planned. Thus Navigation Account Reserves will be reduced by £115,200 to an estimated £242,368 as at 31 March 2008. Whilst this is considered to be adequate, it should be noted that the Navigation Account is still running at a deficit and there is little scope for flexibility as the Reserves are close to their optimum level of 5% of net expenditure. It is likely therefore that any increase in tolls over the next few years – and in 2008/09 in particular – will be offset by the need to reduce or clear the deficit.
5.4 The increase in toll income will generate an additional £73,600 over the original 2006/07 budget, taking into account the effects of inflation and the decline in the hire boat fleet. This will be ring-fenced for dredging work, which means that a total amount of £751,000 will be spent on dredging during 2007/08 (including the additional Defra grant income referred to below).
5.5 The Navigation Account is being supplemented by the additional Defra grant. In 2007/08 this will include the following expenditure:
· £250,000 towards the increased dredging of the rivers and broads in line with the Sediment Management Strategy; and
· £40,000 to fund practical safety improvements following risk assessments as part of the Port Marine Safety Code.
6. Financial Management Reporting
6.1 The budgets are shown by Directorate and by responsible budget holders within each Directorate. There is currently a statutory requirement to maintain separate General and Navigation Accounts. These accounts are shown in Appendices 1 and 2.
John Packman John Duvall
Chief Executive Treasurer and Financial Adviser
The Broads Authority - GENERAL & NAVIGATION ACCOUNT BUDGET SUMMARYOutturn 2005/06 £000 / Original Budget 2006/07 £000 / Revised Budget 2006/07 £000 / Budget 2007/08 £000
INCOME
National Park Grant / (3,708.2) / (3,800.0) / (3,800.0) / (3,901.8)
Interest Received / (114.1) / (75.0) / (110.0) / (110.0)
Navigation income / (1,733.7) / (1,894.2) / (1,896.1) / (1,996.9)
(5,556.0) / (5,769.2) / (5,806.1) / (6,008.7)
NET EXPENDITURE
A. CORPORATE SERVICES
Management and Administrative Support / 799.9 / 933.4 / 317.2 / 344.9
Finance / 144.1 / 145.1 / 254.1 / 272.5
Human Resources and Staff Training / 54.4 / 54.3 / 113.6 / 120.8
Information and Design / 38.6 / 49.0 / 206.6 / 234.1
Information Technology / 102.1 / 117.0 / 224.5 / 221.2
Legal Services / 114.9 / 94.0 / 221.5 / 130.0
Member Services / 45.3 / 47.5 / 143.4 / 155.7
Navigation Tolls / 10.0 / 11.6 / 78.6 / 81.8
Premises and Property Management (Colegate) / 295.8 / 334.7 / 343.1 / 331.5
Sustainable Development Fund / (3.9) / 0.0 / 0.0 / 0.0
Net Expenditure Corporate Services / 1,601.2 / 1,786.6 / 1,902.6 / 1,892.5
B. COUNTRYSIDE MANAGEMENT
Management and Administrative Support / 1,331.2 / 1,354.7 / 128.9 / 123.5
CONSERVATION
Fen and Grazing Marshes / 164.8 / 93.4 / 351.1 / 425.0
LAND BASED RECREATION
Events / 10.1 / 7.0 / 76.9 / 77.5
Visitor Facility and Volunteer Management / 203.1 / 354.9 / 247.9 / 287.5
Public Rights of Way / 2.6 / 1.0 / 106.9 / 86.8
Landscape and Projects / 73.7 / 57.5 / 322.4 / 368.1
TOURISM
Tourism Development / 26.6 / 25.0 / 70.4 / 75.3
Visitor Services / 75.1 / (12.0) / 206.6 / 181.1
PARTNERSHIPS
Whitlingham Country Park / (58.1) / (58.9) / 20.5 / 22.7
Trinity Broads / (23.7) / (11.4) / (15.7) / 61.9
Lound / (33.5) / (24.4) / (7.4) / 3.2
Heritage Lottery Scheme / 11.7 / 0.0 / 0.0 / 0.0
Net Expenditure Countryside Management / 1,783.6 / 1,786.8 / 1,508.5 / 1,712.6
C. PLANNING AND STRATEGY
Management and Administrative Support / 177.4 / 283.4 / 91.6 / 95.4
Broads Plan / 35.9 / 35.0 / 48.7 / 53.2
Cultural Heritage / 25.7 / 25.0 / 46.7 / 88.1
Development Control / 98.1 / 3.6 / 107.9 / 78.6
Forward Planning / 30.2 / 25.0 / 63.6 / 72.6
Net Expenditure Planning / 367.3 / 372.0 / 358.5 / 387.9
The Broads Authority - GENERAL & NAVIGATION ACCOUNT BUDGET SUMMARY
D. WATERWAYS
Management and Administrative Support / 705.8 / 753.4 / 107.6 / 112.1
Broadland Flood Alleviation Project / (13.9) / (30.0) / 1.2 / 28.7
Conservation of Water Bodies / 84.7 / 158.9 / 187.5 / 239.2
Dredging / 584.6 / 650.0 / 684.3 / 786.7
Moorings and Yacht Stations / 41.3 / 98.5 / 196.2 / 178.7
Navigation Safety and Policy / 48.2 / 89.5 / 169.0 / 159.5
Navigation Works and Maintenance / 88.4 / 188.0 / 376.8 / 398.4
Patrolling / 82.9 / 87.5 / 499.6 / 533.3
Net Expenditure Water ways / 1,622.0 / 1,995.8 / 2,222.2 / 2,436.6
Staff Turnover Allowance / 0 / (38.8) / 0 / 0
TOTAL NET EXPENDITURE / 5,374.1 / 5,902.4 / 5,991.8 / 6,429.6
INCOME LESS NET EXPENDITURE Surplus/(Deficit) / 181.9 / (133.2) / (185.7) / (420.9)
GENERAL & NAVIGATION ACCOUNTS RESERVES AS AT 01/04/06 / (1,306.7)
PREDICTED RESERVES AT 31/03/2007 / (1,173.5) / (1,121.0)
PREDICTED RESERVES AT 31/03/2008 / (700.1)
The Broads Authority - GENERAL & NAVIGATION ACCOUNT BUDGET
Outturn 2005/06 £000 / Original Budget 2006/07 £000 / Revised Budget 2006/07 £000 / Budget 2007/08 £000
INCOME
National Park Grant / (3,208.2) / (3,300.0) / (3,300.0) / (3,401.8)
Additional National Park Grant / (500.0) / (500.0) / (500.0) / (500.0)
Interest Received / (114.1) / (75.0) / (110.0) / (110.0)
Hire Craft Tolls / (681.0) / (717.0) / (705.0) / (724.0)
Private Craft Tolls / (1,014.1) / (1,136.0) / (1,150.0) / (1,228.9)
Short Visit Tolls / (27.9) / (30.5) / (30.5) / (33.5)
Mutford Lock / (9.4) / (9.0) / (9.0) / (9.0)
Water Ski Permits / (1.3) / (1.7) / (1.6) / (1.5)
TOTAL INCOME / (5,556.0) / (5,769.2) / (5,806.1) / (6,008.7)
A. CORPORATE SERVICES
Management and Administrative Support
Salaries / 665.9 / 762.5 / 164.0 / 178.5
Other Employee Costs/Expenses / 17.1 / 18.3 / 10.3 / 11.5
Employee Training / 12.9 / 0.0 / 3.0 / 3.0
Colegate Dual Fuel Car / 0.0 / 0.0 / 10.0 / 2.0
Stationery/Office Expenses / 15.2 / 18.1 / 19.1 / 19.6
Office Furniture/Equipment / 18.7 / 16.1 / 16.1 / 16.1
Telephones / 26.4 / 40.0 / 36.5 / 37.5
Mobile Phone Upgrade Fund / 0.0 / 0.0 / 0.0 / 8.2
Postages / 24.6 / 38.0 / 26.0 / 27.5
Best Value / 2.1 / 2.5 / 2.9 / 3.0
ANPA/LGA/EERA / 16.7 / 29.1 / 29.0 / 29.0
Miscellaneous Expenses / 11.7 / 13.8 / 13.5 / 14.0
Income
Whitlingham Salary Recharge / (11.4) / (5.0) / (5.0) / (5.0)
Mobile Phone Refund / 0.0 / 0.0 / (8.2) / 0.0
799.9 / 933.4 / 317.2 / 344.9
Finance
Salaries / 0.0 / 0.0 / 93.2 / 92.1
Agency Staff / 0.0 / 0.0 / 0.0 / 4.1
Other Employee Costs/Expenses / 0.0 / 0.0 / 4.5 / 4.2
Insurance / 94.2 / 90.7 / 100.2 / 112.5
Audit Fees / 24.3 / 23.8 / 25.6 / 29.0
Bank Charges/Interest / 10.5 / 11.4 / 11.4 / 11.4
Financial Services / 15.2 / 19.2 / 19.2 / 19.2
144.2 / 145.1 / 254.1 / 272.5
Human Resources and Staff Training
Salaries / 0.0 / 0.0 / 58.0 / 62.9
Other Employee Costs/Expenses / 0.0 / 0.0 / 2.8 / 2.9
Personnel Services / 12.9 / 10.3 / 12.8 / 10.5
Corporate Training / 34.1 / 39.0 / 32.5 / 34.0
Health and Safety at Work / 12.5 / 5.0 / 7.5 / 7.5
Bowser / 0.0 / 0.0 / 0.0 / 3.0
The Broads Authority - GENERAL & NAVIGATION ACCOUNT BUDGET
Income
Miscellaneous Income / (5.1) / 0.0 / 0.0 / 0.0
54.4 / 54.3 / 113.6 / 120.8
Information and Design
Salaries / 0.0 / 0.0 / 156.7 / 164.4
Other Employee Costs/Expenses / 0.0 / 0.0 / 9.0 / 9.1
Publications/Information / 9.3 / 24.0 / 27.5 / 24.6
Other Information and Interpretation Services / 30.3 / 25.0 / 20.0 / 21.0
Website Support / 0.0 / 0.0 / 0.0 / 15.0
Income
Miscellaneous Income / (1.0) / 0.0 / (6.6) / 0.0
38.6 / 49.0 / 206.6 / 234.1
Information Technology
Salaries / 0.0 / 0.0 / 114.2 / 122.4
Transfer to Tolls Computer and Website / 0.0 / 0.0 / (22.7) / (27.2)
Other Employee Costs/Expenses / 0.7 / 0.0 / 7.0 / 7.2
Computer Services / 58.7 / 75.0 / 75.0 / 77.8
IT Licences / 0.0 / 0.0 / 10.0 / 0.0
Tolls Computer and Website (AGF) / 30.0 / 30.0 / 30.0 / 30.0
GIS/OS Maps and Licenses / 12.6 / 12.0 / 12.0 / 12.0
Income
Miscellaneous Income / 0.0 / 0.0 / (1.0) / (1.0)
102.0 / 117.0 / 224.5 / 221.2
Legal Services
Salaries / 0.0 / 0.0 / 24.5 / 36.5
Other Employee Costs/Expenses / 0.0 / 0.0 / 3.0 / 2.0
Professional Fees / 80.6 / 39.0 / 44.0 / 41.5
Private Bill (AGF) / 34.3 / 55.0 / 55.0 / 0.0
Private Bill / 0.0 / 0.0 / 95.0 / 50.0
114.9 / 94.0 / 221.5 / 130.0
Member Services
Salaries / 0.0 / 0.0 / 90.1 / 93.4
Other Employee Costs/Expenses / 0.0 / 0.0 / 5.8 / 5.8
Printing Costs / 22.8 / 18.0 / 19.0 / 19.5
Member Allowances and Expenses / 22.0 / 28.0 / 26.0 / 34.5
Other Member Services Costs / 0.0 / 0.0 / 1.5 / 1.5
Local Access Forum / 0.5 / 1.5 / 1.5 / 1.5
Income
Miscellaneous Income / 0.0 / 0.0 / (0.5) / (0.5)
45.3 / 47.5 / 143.4 / 155.7
Navigation Tolls
Salaries / 0.0 / 0.0 / 67.0 / 70.2
Other Employee Costs/Expenses / 0.0 / 1.6 / 1.6 / 1.6
Tolls Stationary / 12.0 / 12.0 / 12.0 / 12.0
The Broads Authority - GENERAL & NAVIGATION ACCOUNT BUDGET