Budget and Financial Strategy Appendices 2023-24

Contents

Appendix 1 - Special Expenses

Appendix 2 - Revenue Budget Service Summary

Appendix 3 - Capital Programme 2023/24 (including appraisals)

Appendix 4 - Capital and Investment Strategy 2023/24 - 2027/28

Appendix 5 - Use of Earmarked Reserves 2023/24

Appendix 6 Council Tax Support Fund 2023/24

Appendix 7 - Pay Policy Statement 2023/24

Appendix 1 - Special Expenses

Funding Analysis for special Expense Areas
Description	2022/23 £	2023/24 £	Percentage Change
West Bridgford	-	-	-
Parks and Playing Fields	422,800	438,100	-
West Bridgford Town Centre	91,400	92,100	-
Community Halls	78,500	96,900	-
Contingency	14,700	14,700	-
Revenue Contribution to Capital Outlay	75,000	75,000	-
Annuity Charges	94,000	100,100	-
Sinking Fund	20,000	20,000	-
Total	796,400	836,900	-
Tax Base	14,773.7	14,958.7	-
Special Expense Tax	53.91	55.95	3.78%
Keyworth	-	-	-
Cemetery and Annuity Charges	9,200	12,700	-
Total	9,200	12,700	-
Tax Base	2,791.0	2,897.4	-
Special Expense Tax	3.30	4.38	32.73%
Ruddington	-	-	-
Cemetery and Annuity Charges	11,100	11,100	-
Total	11,100	11,100	-
Tax Base	2,908.8	3,014.7	-
Special Expense Tax	3.82	3.68	(3.66%)
Total Special Expenses	816,700	860,700	5.39%

Appendix 2 - Revenue Budget Service Summary

Revenue Budget Summary
Description	2022/23 Estimate £	2023/24 Estimate £	2024/25 Estimate £	2025/26 Estimate £	2026/27 Estimate £	2027/28 Estimate £
Chief Executive	2,021,100	2,313,500	2,140,900	2,162,500	2,230,500	2,448,900
Development and Economic Growth	(111,700)	(154,800)	(373,400)	(341,200)	(460,600)	(458,500)
Finance and Corporate Services	4,329,800	4,099,500	4,664,800	5,044,700	5,302,500	5,445,300
Neighbourhoods	6,948,700	7,649,400	7,118,800	7,079,400	7,067,500	7,227,600
Net Service Expenditure	13,178,900	13,907,600	13,551,100	13,945,400	14,139,900	14,633,300
Capital Accounting Adjustments	(1,895,000)	(1,895,000)	(1,895,000)	(1,895,000)	(1,895,000)	(1,895,000)
Minimum Revenue Provision	1,293,000	1,311,000	1,320,000	1,269,000	835,000	269,000
Transfer to/(from) Reserves	(2,619,000)	1,352,000	953,000	(485,000)	38,000	408,000
Total Net Service Expenditure	9,966,900	14,675,600	13,929,100	12,838,400	13,117,900	13,445,300
Funding	-	-	-	-	-	-
Other Grant Income	(273,000)	(639,600)	(516,200)	(93,200)	(93,200)	(93,200)
Localised Business Rates, includes SBRR	(3,957,800)	(4,904,800)	(4,941,000)	(3,370,700)	(3,438,114)	(3,506,876)
Collection Fund (Surplus)/Deficit	4,364,500	505,900	0	0	0	0
Council Tax Income	-	-	-	-	-	-
Rushcliffe	(6,850,400)	(7,092,200)	(7,411,700)	(7,799,100)	(8,199,000)	(8,611,800)
Special Expenses Areas	(816,700)	(860,700)	(942,900)	(946,700)	(960,600)	(960,600)
New Homes Bonus	(1,587,500)	(1,414,000)	(1,414,000)	0	0	0
Total Funding	(9,120,900)	(14,405,400)	(15,225,800)	(12,209,700)	(12,690,914)	(13,172,476)
Net Budget (surplus) / deficit	846,000	270,200	(1,296,700)	624,700	426,700	272,824

Appendix 3 - Capital Programme 2022/23 (including appraisals)

Development and economic Growth

Capital Programme - Development and economic Growth
Transformation	2023/24 Indicative Estimate £'000	2024/25 Indicative Estimate £'000	2025/26 Indicative Estimate £'000	2026/27 Indicative Estimate £'000
Traveller Site Acquisition	1,000	0	0	0
The Point enhancements	50	0	0	300
Unit 1 Bardon 22	0	0	0	115
6F Boundary Court	0	0	0	15
Cotgrave Business Hub	0	0	70	0
Manvers Business Park enhancements	0	0	0	70
Compton Acres Water Course	210	0	0	0
Compton Acres Fencing Special Expense	30	0	0	0
Unit 10 Moorbridge	0	0	0	60
Bridgford Park Kiosk	25	0	0	0
Colliers Business Park enhancements	0	0	0	50
Park Cottage - fabric upgrade	0	65	0	0
Walkers Yard 1 a/b	0	70	0	0
Abbey Circus, West Bridgford - fencing open space (Special Expense)	35	0	0	0
Highways Verges: Cotgrave/Bingham/Cropwell Bishop	100	90	60	0
Quantock Grove Bingham Public Open Space	20	0	0	0
Wilwell Cutting Bridge	0	0	50	0
Devonshire Road Railway Bridge	0	100	0	0
Flintham Mess	0	0	4,000	0
Sub Total	1,470	325	4,180	610

Neighbourhoods

Capital Programme - Neighbourhoods
Neighbourhoods	2023/24 Indicative Estimate £'000	2024/25 Indicative Estimate £'000	2025/26 Indicative Estimate £'000	2026/27 Indicative Estimate £'000	2027/28 Indicative Estimate £'000
Vehicle Replacement	1,150	1,050	405	215	220
Support for Registered Housing Providers	2,623	1,500	0	0	0
Hound Lodge - enhancements	250	75	0	0	0
Disabled Facilities Grants	945	695	695	695	695
Cotgrave Leisure Centre - enhancements	925	163	0	45	0
Keyworth Leisure Centre - enhancements	470	12	0	170	0
Arena enhancements	28	0	0	0	0
Edwalton Golf Courses enhancements	30	0	0	0	0
Play Areas West Bridgford - Special Expense	75	75	75	75	75
West Park enhancements - Special Expense	500	0	40	0	0
Gresham Pitches, 3G lighting, improvements	100	0	0	0	0
Gresham Sports Pavilion	50	0	0	0	0
Rushcliffe Country Park - enhancements	0	0	0	25	0
Rushcliffe Country Park- play area	100	0	0	0	0
Lutterell Hall - Special Expense	0	0	125	0	0
Edwalton Community Facility - Special Expense	500	0	0	0	0
Gamston Community Hall - Special Expense	50	40	0	0	0
Sub Total	7,796	3,615	1,340	1,225	990

Finance and Corporate Services

Capital Programme - Finance and Corporate Services
Finance and Corporate Services	2023/24 Indicative Estimate £'000	2024/25 Indicative Estimate £'000	2025/26 Indicative Estimate £'000	2026/27 Indicative Estimate £'000	2027/28 Indicative Estimate £'000
Information Systems Strategy	160	250	265	280	230
Contingency	150	150	150	150	150
Sub Total	310	400	415	430	380

Capital Programme - Total
Programme Total	2023/24 Indicative Estimate £'000	2024/25 Indicative Estimate £'000	2025/26 Indicative Estimate £'000	2026/27 Indicative Estimate £'000	2027/28 Indicative Estimate £'000
Total	9,576	4,340	5,935	2,265	1,370

Project Appraisals

Reference: 1
Project Name: Development of a Gypsy and Traveller Site

Cost Centre: 0300

Detailed Description

As part of the Greater Nottingham Strategic Plan, it was identified that Rushcliffe is required to provide an additional 13 Gypsy and Traveller pitches in the Borough between 2020 and 2038, with 7 required before 2025.

The Sustainable Urban Extension (SUE) development at Fairham is required to allow for a minimum of four gypsy and traveller pitches. Further provision is expected at Gamston Fields, another of the Council’s SUEs.

The Council is looking to acquire land in the Borough to deliver circa 7 pitches, as required before 2025. Officers are currently working to identify an appropriate piece of land.

A funding bid for a Government Grant was made, but this was unsuccessful. Officers are currently looking into alternative funding pots.

Although the project cost is estimated at £2m, at this stage, the programme reverts to the original RBC provision of £1m funded from New Homes Bonus.

Location: To be determined – Officers are working to identify an appropriate site for acquisition.

Executive Director: Development and Economic Growth

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life
- The Council will manage the site (through an appointed provider) which will ensure the Gypsy and Travellers are given the support they need with accessing services by engaging with a wide range of partners e.g., County Council, Health, Police etc.
Efficient Services
Sustainable Growth
- By delivering a Gypsy and Traveller site the Council is taking a proactive step to provide the need identified in the Greater Nottingham and Ashfield District Council Gypsy and Traveller Accommodation Assessment (GTAA).

Strategic Commitments

Working with our partners to create great, safe, and clean communities to live and work in
Protecting our residents’ health and facilitating healthier lifestyle choices
Alignment of resources linked to growth aspirations
Protecting the vulnerable in our communities
Implementing environmentally beneficial infrastructure changes.

Community Outcomes

To address the requirements of the Local Plan and Gypsy and Traveller Needs Assessment
Residents satisfied with the quality of services provided
Housing Targets met
Sufficient supply of suitable housing is available to meet the needs of the community

Environmental Outcomes

Where possible low carbon and carbon neutral building materials and processes will be prioritised.
The development will ensure there is a net positive impact on site biodiversity.

Other Options Rejected and Why

There is the option for the Council not to deliver a permanent Gypsy and Traveller site. However, this would mean that the Council was not meeting the need set out in the GTAA and delivery would be dependent on private developers. Not only would the Council not be meeting the need, but there would also be an increased risk of the Council being unable to successfully defend appeals in respect of any
unauthorised Gypsy and Traveller encampments.

Start Date: Spring 2023

Completion Date: 2024

Capital Cost (Total): £2m but only £1m included in the programme at this stage whilst alternative additional funding identified

Year 1 (2022/23):

Year 2 (2023/24): £2m but only £1m included in the programme at this stage whilst alternative additional funding identified

Capital Cost (Breakdown): to be determined but estimated up to £1m land acquisition and £1m for infrastructure, works, and services.

Works:

Fees:

Additional Revenue cost / (savings) per annum

Proposed Funding

External: Up to £1m external grant funding to be investigated.

Internal: £1m New Homes Bonus

Useful Economic Life: To be determined: land has indefinite life; infrastructure and works circa 50 years (may be less if non-traditional build e.g., MMC – modern method of construction)

New / Replacement: New

Depreciation per annum: to be determined.

Capital Financing Costs: £41k lost interest on use of New Homes Bonus

Residual Value: Not applicable

Category of Asset: Land and infrastructure

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 2
Project Name: Compton Acres Fencing Special Expense

Cost Centre: 0180

Detailed Description

The proposal is for the replacement of defective fencing situated alongside the open watercourse in Compton Acres which the Council has responsibility for maintaining. The section of fencing broadly runs from Lydney Park in a westerly direction towards Compton
Acres Road. This section of fencing forms a barrier between the public footpath and the watercourse. The condition of the existing fencing has deteriorated and is beyond economic repair. Materials utilised for replacement work will be appropriately specified and
complimentary to the setting.

Location: Compton Acres, West Bridgford

Executive Director: Development and Economic Growth

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life – maintenance of key infrastructure and ensuring public spaces are attractive and safe for use
Efficient Services – assets maintained in an appropriate and timely manner and to an appropriate standard
The Environment – replacement materials and the work approach will be considered to ensure environmental impacts are minimised

Strategic Commitments

Protecting our residents and assets
Protecting our natural resources and to implement environmentally beneficial infrastructure changes
Protecting the environment and public health by fulfilling our statutory responsibilities
Robust asset management
Provide high quality community facilities which meet the needs of our residents

Community Outcomes

Undertaking the works will ensure that the appearance of this prominent public open space remains attractive, well maintained and safe for use.

Environmental Outcomes

Maintaining a secure barrier between the public footpath and the watercourse will serve to prevent unwanted access to the bankside of the watercourse and this in turn will protect the habitats and support diversity of creatures living therein. The fencing also forms a partial barrier to litter, preventing it from directly entering the watercourse form the footpath.

Other Options Rejected and Why

Retain and repair existing fence – the existing fencing is beyond economic repair (20+ years old).
Remove fencing and don’t replace – the fencing forms a barrier between the public footpath and the watercourse, removal would degrade the environmental benefits described above and potentially give rise to increasing health and safety issues.

Start Date: 2023

Completion Date: 2024

Capital Cost (Total):

Year 1 (2023/24): £30,000

Capital Cost (Breakdown)

Works: Not applicable

Equipment: £28,500

Other: Not applicable

Fees: £1,500

Revenue cost per annum

Not quantifiable at this stage

Proposed Funding

External: None

Internal: Capital Receipts repayable by way of annuity from WB Special Expense

Useful Economic Life (years): 15 years

New / Replacement: Replacement

Depreciation per annum: £2k

Capital Financing Costs: Net nil as repaid from WB Special Expense

Residual Value: Not applicable

Category of Asset: Equipment

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 3
Project Name: Quantock Grove Bingham Public Open Space

Cost Centre: 0181

Detailed Description

The proposal is for improvement works to an area of open space located between properties on Quantock Grove and Radnor Grove which is in the ownership of the Council. The open space currently comprises larger areas of life expired macadam surfacing bounded by weed filled borders and is unkempt, unattractive and reflects poorly on adjacent housing.
Improvements planned include reduction to the paved areas to create focused pathways bordered by green areas laid to turf enabling easier regular maintenance.

Location: Bingham

Executive Director: Development and Economic Growth

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life – improvements will encourage use of the area/pathways by the public and help to deter anti-social use
Efficient Services – improvements will help to streamline and simplify maintenance activity
Sustainable Growth
The Environment – reduction in paved area will improve drainage of the area

Strategic Commitments

Protecting our residents and assets
Protecting our natural resources and to implement environmentally beneficial infrastructure changes
Protecting the environment and public health by fulfilling our statutory responsibilities

Community Outcomes

Improvements will encourage legitimate use of the space and pathways by the public and enhance the local area which currently appears neglected and unwelcoming.

Environmental Outcomes

Improvements will minimise hard surfaced areas and increase planted/turfed areas, this will improve local drainage and enhance biodiversity. The area will be easier to maintain which in turn will help to minimise carbon intensive maintenance activity.

Other Options Rejected and Why

Do nothing – the open space would remain unattractive detracting from the local area, under utilised and more costly to maintain.

Start Date: 2023

Completion Date: 2024

Capital Cost (Total): £20,000

Year 1 (2023/24): £20,000

Capital Cost (Breakdown)

Works: £18,500

Equipment: Not applicable

Other: Not applicable

Fees: £1,500

Additional Revenue cost / (savings) per annum: Not applicable

Proposed Funding

External: Not applicable

Internal: Capital Receipts

Useful Economic Life (years): 20 years

New / Replacement: Replacement

Depreciation per annum: £1k

Capital Financing Costs: £800 lost interest

Residual Value: Not applicable

Category of Asset: Infrastructure

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 4
Project Name: Vehicle Replacement

Cost Centre: 0680

Detailed Description

The authority owns vehicles ranging from large refuse freighters to small vans and items of mechanical plant. As these vehicles and plant age and become uneconomic to maintain and run, they are replaced on a new for old basis. Although there is a programme for replacements for the next ten years, each vehicle or machine is assessed annually, and the programme continually adjusted to take into account actual performance. The transfer of Streetwise back to an ‘in house’ service will see a further capital replacement programme developed prior to April 2023 to cover both vehicles and plant used to undertake the services provided. This provision will be used to acquire new vehicles and plant, undertake refurbishments to extend vehicle life and value and to purchase second-hand vehicles and plant as and when appropriate. There is beginning to be a concentration of focussing on newer cleaner technology as we replace existing fleet vehicles in line with the Council’s Carbon management agenda, exploring alternatives such as electric and hydrogen cell technology as well as alternative fuel use to look at cutting down on emissions whilst ensuring the vehicles remain operationally viable and offer value for money.

Location: Eastcroft Depot

Executive Director: Development and Economic Growth

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life
Efficient Services
The Environment

Strategic Commitments

Working with our partners to create great, safe, and clean communities to live and work in.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Reviewing our policies and ways of working to protect natural resources, and to implement environmentally beneficial infrastructure changes. To reduce waste and increasingly reuse and recycle to protect the environment for the future.
Working with ley partners to respond to any proposals from the new Environment Act and any changes or directives from central government regarding what wastes should be collected and how.
Delivering a high-quality waste and recycling collection service.
Delivering a high-quality street cleansing, grounds maintenance and arboriculture service
A commitment to look at cleaner vehicles in line with our commitment to protect the environment, in particularly alternative fuel vehicles
Working to achieve a carbon neutral status for the Council’s operations

The replacement of vehicles is critical to the performance of the front-line services. Regular vehicle and plant replacement with new updated engines help to meet climate change and national indicator targets for emissions and helps maintain a cleaner air quality within the Borough.

Community Outcomes

To address climate change and the need to reduce carbon emissions. The introduction of new euro standard engines will lower emissions. The new vehicles will also reduce maintenance costs on the vehicles they replace however it should be noted that the
remainder of the fleet ages and therefore the fleet profile and maintenance costs overall remain stable.

Environmental Outcomes

The Council is actively looking at newer cleaner technologies and is committed to working with others to consider options and procure newer vehicles that will help commit to our carbon management plan. Whilst larger HGV electric vehicles may not be an option for
Rushcliffe due to the range and geographical nature of our Borough, we continue to explore the use of and practicalities of alternative fuel such as the use of Hydro generated Vegetable Oil (HVO) following a trial in late 2021 and are considering the impact of the trial
with potential 90% reduction in emissions and the operational logistics and infrastructure arrangements as well as the costs of fuelling our vehicles utilising HVO. Smaller fleet vehicles such as small vans, etc could be replaced by electric vehicles which are readily
available, and this option will be considered as and when such vehicles are due for replacement in line with the replacement programme

Other Options Rejected and Why

An historic review was undertaken to consider the leasing and hiring in of vehicles. Due to the level of capital resources, it was concluded that it was uneconomical to do either of these two options but as resources reduce these options may need to be revisited again. However, there are also distinct advantages in direct purchase:

The authority has control over the maintenance of the vehicles.
It is difficult to change the terms and conditions of a lease.
High performing vehicles can have their lifespan lengthened.
Poor performing vehicles can have their lifespan shortened.

Not being tied into lengthy lease/hire contracts means the service can react and adapt to change quickly.
It should be noted that the transition of Streetwise back to an in-house service sees some vehicles used, tied into current lease arrangements which are being considered and will help in developing a new capital replacement programme in that service area.

The Council now actively looks at the possible purchase of 2nd hand vehicles and will refurbish vehicles to extend their life and value.

Start Date: Ongoing

Completion Date:

Capital Cost (Total): £2,205,000 (2 years)

Year 1 (2023/24): £1,150,000

Year 2 (2024/25): £1,055,000

Capital Cost (Breakdown):

Works: £0

Equipment: £2,205,000

Other: Not applicable

Fees: £0

Additional Revenue cost / (savings) per annum: £0

As each vehicle replaces an existing vehicle, there is no increase in the overall revenue costs. Whilst newer vehicles can lead to less expenditure on breakdown and repair, older vehicles will cost more. The overall fleet profile remains relatively constant and therefore service budgets remain the same. However, with property growth and the potential impact on waste collections as a result of the Environment Act, there is the likelihood moving forward that additional revenue expenditure may be incurred and this will need to be considered for the budget year 2024/25 and future years too.

Proposed Funding

External: None

Internal: Capital Receipts.

Useful Economic Life (years): various

New / Replacement: New and Replacements

Depreciation per annum: various

Capital Financing Costs: £46k p.a. in year 1 plus £42k p.a. in year 2 as opportunity cost of lost interest.

Residual value: Not applicable

Category of Asset: Vehicle and Plant

IFRS16 New Lease Checklist Completed: SEL leased vehicles to be assessed.

Reference: 5
Project Name: Hound Lodge - Enhancements

Cost Centre: 0308

Detailed Description

Hound Lodge provides temporary accommodation for families who find themselves unintentionally homeless; providing accommodation in this circumstance is a statutory function of the Council. The building has existed in broadly its current form since the 1990s when the
Council acquired and carried out conversion works which included the addition of a single storey rear extension. The original areas of the buildings are circa 100 years old.

The building requires enhancement not only to improve how it can be operated and managed in terms of residents, but also from an energy consumption and efficiency perspective. Due to the limiting factors of layout, age and form of construction, any enhancement work will not be straight forward and will come at significant cost. Before committing to these costs, the Property and Housing teams will work together to undertake a wholesale review of the facility and the manner in which temporary accommodation is provided, culminating in the preparation of an options appraisal which will help to ensure that investment decisions are made in an informed
and robust manner (Service Plan task for 2023/24).

The outcome of the asset review may mean that costs and planned works are re-profiled.

Location: West Bridgford

Executive Director: Neighbourhoods

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life
Efficient Services
The Environment

Strategic Commitments

Protecting our residents’ health and facilitating healthier lifestyle choices
Providing high quality facilities which meet the needs of our residents
Creating opportunities for young people to realise their potential
Protecting the most vulnerable in our communities

Community Outcomes

The Council fulfils its statutory duties for the provision of suitable temporary accommodation and avoids the need to use B&B accommodation at an additional cost
Residents of the Borough continue to receive the council services they require

Environmental Outcomes

Committing to reviewing and enhancing the operational and thermal performance of the facility will ensure that ongoing carbon emissions are mitigated which aligns with corporate ambitions to be net zero by 2030.

Other Options Rejected and Why

Not reviewing and enhancing the operational and thermal performance of the facility will allow current shortcomings to continue, this in turn will put strain on resources and limit the Council’s overall ambitions to achieve net zero.

Start Date: 2023

Completion Date: 2025

Capital Cost (Total): £325,000

Year 1 (2023/24): £250,000

Year 2 (2023/24): £75,000

Capital Cost (Breakdown)

Works: £300,000

Equipment: Not applicable

Other: Not applicable

Fees: £25,000

Additional Revenue cost / (savings) per annum: Not applicable

Proposed Funding

External: None

Internal: Capital Receipts

Useful Economic Life (years): 25 years

New / Replacement: New and Replacement

Depreciation per annum: £13k

Capital Financing Costs: £13k per annum in lost interest.

Residual Value: Not applicable

Category of Asset: Operational Land and Buildings

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 6
Project Name: Cotgrave Leisure Centre - enhancements

Cost Centre: 0402

Detailed Description

As part of the Leisure Strategy refresh, Cotgrave Leisure Centre has been identified as the number one project for capital investment.

The proposed works the Leisure Centre have been identified as follows:

Ground floor – reception area

1. Move reception to old Town council office on left as enter
2. Remove exiting reception to open space
3. Office behind old reception becomes accessible toilet
4. Second Office retained
5. Reconfigure ladies, gents, accessible toilet, and store into 4 self-contained unisex toilets
6. Space for vending in opened up reception

Ground floor corridor

7. Knock back wall on right stealing space form kitchen, activity room spin corridor and dry changing rooms to widen corridor
8. Locker banks in between columns on the left wall to infill
9. Combine (subject to structural restrictions) activity room spin corridor and dry changing rooms to create one large studio. Consider glazing onto corridor for borrowed light.

Wet Change Village

10. Remove all locker banks and all cubicles and replace with new. Layout to be reconfigured to provide improved flow - lockers and cubicles directly inside doors to changing village to be removed as these are closing of the space and the circulation
11. Remove lockers and vanity unit over and replace with new vanity unit
12. Replace lighting above vanity unit with modern brighter lighting
13. Full professional deep clean of floor tiles and re-grout
14. Replace lighting for LED panel lighting throughout
15. Remove redundant ceiling speakers
16. Replace ceiling tiles throughout
17. Replace skirting tiles with coved tiles

Accessible changing room

18. Upgrade to changing places spec
19. New ceiling tiles throughout
20. New door

Group changing rooms

21. Remove lockers.
22. Professional deep clean of wall and floor tiles
23. Remove bench seating and replace with new to perimeter of room
24. New resin flooring in shower areas
25. Replace lighting for LED panel lighting throughout
26. New ceiling tiles throughout
27. Redecoration

Male Toilets and Female toilets

28. Professional deep clean of wall and floor tiles
29. New sanitary wear
30. New IPS cubicles
31. New vanity units

Sports hall

32. Replace sports hall floor covering with new, including all court and play markings

Roof

33. Survey and remedials as necessary
34. Subject to above survey, replace

M&E

35. Upgrade external lighting
36. M&E condition survey with recommendations to improve efficiency and reduce carbon output

A Cost plan for the above capital works has been developed by Henry Riley and the stage two cost plan totals £893k for facilitating and building works. The total cost including pre-lims. Overheads and profit and contingency bring the total package of works to £ 1.305m.

The proposed capital programme contains £1.075m for the building works, a shortfall of £230k, which will be carried forward from the 22/23 Capital Programme underspend.

The site has also been successful in receiving a Phase 3B Public Sector decarbonisation grant (Salix) to decarbonise this leisure centre. The grant totals £1.215m over two years: 23/24 £899k and 24 /25 £316k. The grant requires 12% match funding investment of £146k and it is proposed that this element of funding is met via the Climate Change Action Reserve. This gives a total £1.361m additional resources.

The Salix bid will focus on replacing the boiler systems which is at the end of its useful life with an Air-Source Heat Pump alternative and solar panels to the roof of the Leisure Centre. Budget adjustments will be made for these fully funded elements when the details and timing are better known.

Additional - subject to funds and other grants pot applications

37. Replace flume with new - £100,000 Estimate- UKSPF Funding
38. Cotgrave Youth Club Separation £30,000 to £50,000 Estimate- Joint funding with NCC
39. Internal changing places toilet provision- £50,000 Department for levelling Up, housing and Communities (DHLUHC) funding application submitted.

As above, budget adjustments will be made when the outcome of funding bids known.

The capital investment will see a significant refurbishment of the leisure centre to improve disability access, toilet facilities (including a Changing Places toilet). The transformed changing village will provide a modern, fit for purpose environment, accessible to all and will
include reconfiguration to better utilise the space and provide fitness studios in keeping with the modern fitness culture. This will also make better use of the vacated town Council rooms.

In addition, works to the sports hall will see upgrades to ensure integrity of the fabric and structure and replace worn end of life flooring. Works will include any required upgrades to lighting, heating, ventilation, security, and fire systems as determined by reconfigured spaces in conjunction to the Salix funding. A new sand filter media will replace the old sand and glass
pool filter. This work will be done together with the pool filter replacement at Keyworth to secure efficiencies.

Location: Cotgrave Leisure Centre

Executive Director: Neighbourhoods

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life
Efficient Services
The Environment

Strategic Commitments

Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.

Environmental Outcomes

Material selection, wherever possible locally sourced, carbon efficient production, longevity of materials will be considered when selecting finishes.
Upgrades to lighting and mechanical building elements will look to use low energy technology wherever feasible.

Other Options Rejected and Why

Do not carry out refurb works – this would result in further deterioration of the fabric/fixtures/finishes which will potentially increase revenue maintenance/operating costs and with worsening visual appearance, diminish customer experience/satisfaction.

This may also lead to loss of customers resulting in a less efficient service and not be in line with the commitments made in the Leisure Strategy refresh which was adopted by Cabinet in December 2022.

Start Date: 2023

Completion Date: 2025

Capital Cost (Total):

£1,075,000 build costs
£13,000 pool filter
TOTAL £1,088,000 to be adjusted for 22/23 carry forward £230k, Salix, and other external grants when details known.

Year 1 (2023/24): £925,000

Year 2 (2024/25): £163,000

Capital Cost (Breakdown): to be determined

Works:

Equipment:

Other:

Fees:

Additional Revenue cost / (savings) per annum: Not applicable

Proposed Funding:£1.2 Salix Grant and £146k use of Climate Change Reserve to be brought in

External: £50k Government Grant

Internal: £538k Capital Receipts; £500k internal borrowing

Useful Economic Life (years): Pool Filter 6 yrs; other works to be determined

New / Replacement: Replacement

Depreciation per annum: Pool Filter £2.1k; other works to be determined

Capital Financing Costs: £41k p.a. as opportunity cost of lost interest.

Residual Value: Not applicable.

Category of Asset: Operational land & buildings/equipment/plant

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 7
Project Name: Keyworth Leisure Centre

Cost Centre: 0424

Detailed Description

Keyworth Leisure Centre has been identified as the number two capital project for investment as part of the refreshed Leisure Strategy.

A scoping audit of works was undertaken, and the following works have been identified: (this is supported by a Henry Riley Cost plan).

Wet Change Village

1. Deep clean tile walls and apply white tile paint to all blue tiles
2. Professional deep clean on floor tiles
3. Re-grout floor tiles
4. Paint black tiled skirting boards throughout with black or dark grey tile paint
5. Chop out broken tiles around floor grate and replace with resin infill
6. Replace all ceiling tiles with new
7. Replace exiting light fittings with new led panel lighting to brighten entire area
8. Cubicles and lockers throughout – explore refurb and sticky back vinyl wrap as VE.
a. Cubicles sides and infills in mid grey, doors in muted green (aka Rushcliffe & Bingham Arena)
9. Replace damaged plastic cubicle feet where required
10. Clean and repaint the corroded water pipes in family change
11. Blue woodwork throughout to be re-painted in mid grey
12. Varnished doors throughout to be sanded and varnished with new door kick plates added
13. Renew shower screen between changing area a post swim showers
14. Strip and repair area of damp wall by the shower screen

Accessible shower room

15. Deep professional clean, floors and wall tiles
16. White roc finish to walls
17. Replace all ceiling tiles with new

Male Toilets and Female toilets

18. Deep professional clean, floors and wall tiles
19. Paint black skirting tile with fresh black or dark grey tile paint
20. Cut out tiles around centre floor gullies and replace with resin infill
21. Replace slotted sink waste and taps
22. Replace all ceiling tiles

Pool Hall

23. Deep professional clean, floors and wall tiles
24. Replace vertical tiles with the over pool ceiling lights
25. New roller shutter to pool store
26. Vinyl wrap two square blue laminated posts between changing and pool
27. New double fire door set at pool store end of pool
28. Remove old redundant light fittings over pool
29. Replace all ceiling tiles
30. Resin repair to base of rusting steel column between the pools

Dry side toilets – Male & female

31. New vinyl flooring
32. New ceiling tiles
33. Professional deep clean of wall tiles ahead of painting light grey

Dry side accessible toilet

34. New vinyl flooring
35. Paint walls - white
36. Paint radiator - white

Reception

37. Replace light fittings with LED panel lights
38. Vinyl Wrap to reception desk to brighten and rebrand

General

39. Replace skylights
40. Repair/refurbish/replace roof
41. M&E survey with recommendation of works required to increase efficiency and reduce carbon output

Possible additions – subject to budget

42. Fire survey to assess condition and compliance of fire doors
43. Replace showers with new more efficient models
44. Replace toilet, sinks, IPS and vanities with new throughout
45. Consider reconfiguration of reception, viewing area, offices, and fitness suite to maximise fitness suite footprint
46. External lighting improvement

The Henry Riley cost plan brings the total facilitating and building works to £348k and a project cost to £510k

A provision of £470k in included in the Capital Programme for the building works, a shortfall of £40k, which will be carried forward from the 22/23 Capital Programme underspend.

In addition, £13k is included in the 24/25 programme for replacement pool filter in line with the Pool and Treatment Advisory Group (PWTAG) industry guidelines to replace filter media every 5 – 7 years. The new sand filter media will replace the old sand and glass pool filter. This work will be done together with the pool filter replacement at Cotgrave to secure efficiencies.

Location: Keyworth

Executive Director: Neighbourhoods

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life
Efficient Services
The Environment

Strategic Commitments

Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.

Environmental Outcomes

Material selection, wherever possible locally sourced, carbon efficient production, longevity of materials will be considered when selecting finishes
Upgrades to fitting and mechanical building elements will look to use low energy technology wherever feasible.

Other Options Rejected and Why

Start Date: 2023/24

Completion Date: 2025

Capital Cost (Total): £470,000 build, £12k pool filter. TOTAL £482k plus £40k carry forward from 2022/23

Year 1 (2023/24): £470,000 plus 40k carry forward from 2022/23

Year 2 (2024/25): £12,000

Capital Cost (Breakdown): to be determined

Works:

Equipment:

Other:

Fees:

Additional Revenue cost / (savings) per annum

Not applicable

Proposed Funding: additional £40k will be needed from Capital Receipts

External: £333,000 S106 Developer Contributions held by RBC

Internal: £149,00 Capital Receipts

Useful Economic Life (years): Pool Filter 6 years, other works to be determined

New / Replacement: New and replacement

Depreciation per annum: Pool Filter £2k; other works to be determined

Capital Financing Costs: £6k p.a. opportunity cost of lost interest on use of Capital Receipts

Residual Value: Not applicable

Category of Asset: Operational Land and Buildings; Vehicle, Plant and Equipment

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 8
Project Name: Arena Enhancements - Filter Media

Cost Centre: 0415

Detailed Description

The Pool water Treatment Advisory Group industry guidelines require filter media, commonly glass or sand, in commercial swimming pool filters is replaced every 5-7 years. Failure to replace filter media can make the media less effective and allow biofilms to form which not only reduce the effectiveness of the filtration but can lead to increased levels of bacteria, particularly e-coli and cryptosporidium.

This can pose a risk to health, hence the PWTAG guidelines. Rushcliffe Arena opened in December 2016 with four brand new sand and filters. To meet the PWTAG guidelines the filter media ought to be replaced by December 2023 at the latest to ensure continued
efficiency and safety.

This project will undertake to remove the sand filter media from the four filters at Rushcliffe Arena Leisure centre and replace with new fresh sand filter media.

Location: Rushcliffe Arena, West Bridgford

Executive Director: Neighbourhoods

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Maintaining and enhancing the resident’s quality of life
Efficient Services

Community Outcomes

Rushcliffe residents continue to be able to access swimming facilities helping them to maintain healthy and active lifestyles.

Environmental Outcomes

Material selection, wherever possible locally sourced, carbon efficient production, longevity of materials will also be considered.

Other Options Rejected and Why

Do nothing. This has been rejected as it is against industry guidelines for maintaining safe pool water and would leave the council at risk should an outbreak of illness be linked to the quality of the swimming pool water at Rushcliffe Arena.

Start Date: October 2023

Completion Date: December 2023

Capital Cost (Total):

Year 1 (2023/24): £28,000

Capital Cost (Breakdown):

Equipment: £28,000

Additional Revenue cost / (savings) per annum: Not applicable.

Proposed Funding

External:

Not applicable.

Internal: £28,000 Capital Receipts.

Useful Economic Life (years): 6 yrs

New / Replacement: Replacement

Depreciation per annum: £4.6k

Capital Financing Costs: £1.1k opportunity cost of lost interest on use of Capital Receipts.

Residual Value: Nil

Category of Asset: Vehicle Plant Equipment.

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 9
Project Name: Play Areas - West Bridgford Special Expense

Cost Centre: 0664

Detailed Description

The priority project for 2023/24 is Greythorn Drive Play area and will be procured via the ESPO framework supported by Welland Procurement and VIA East Midlands who will provide project management support.

The inclusive refurbishment of the site will also include the Astro turf pitch to the rear and the play area. The site will expand in size and will be supplied with additional equipment to cater for the demand created by the development of land south of Wilford Lane. The extension will be funded by the Section 106 contribution to this site of £102k.

The capital programme contains £75k in 23/24 and 24/25. It is intended to add the S106 contribution of £102k to the 23/24 scheme to undertake a wider scope of works at Greythorn Drive. The capital programme will be adjusted when the details and timings are clearer.

If sufficient funding is in place to achieve all the redevelopment objectives for Greythorn Drive, the remaining funds in the 2023/24 financial year will be diverted to enhancing individual pieces of equipment in Bridgford Park Play area.

As a Neighbourhood Equipped Area for Play (NEAP) any new equipment will have a particular focus on improving inclusive play on this site. The 2024/25 allocation will also look to enhance further elements of Bridgford Park Play area.

Location: West Bridgford

Executive Director: Neighbourhoods

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life
Efficient Services
The Environment

Strategic Commitments

Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents.
Creating opportunities for young people to realise their potential.
Delivering a scheme refurbishment identified within the Rushcliffe Play Strategy.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.
To provide a facility to engage with young people who may otherwise not take part in formal sports or physical activity.

Environmental Outcomes

The tender process will take into consideration supply chain, Carbon reduction measures from the supplier use of materials to procure the most sustainable play facility for the community.

Other Options Rejected and Why

Doing nothing would result in increased maintenance costs for ageing equipment, reduced appeal of the play areas leading to lower levels of use and be inconsistent with the vision of high-quality parks and leisure facilities. A lack of replacement programme would over time lead to an increased health and safety risk.

Start Date: Autumn 2023

Completion Date: March 2024

Capital Cost (Total): £150,000 plus £102,000 S106

Year 1 (2024/25): £75,000 plus £102,000 S106

Year 2 (2025/26): £750,000

Capital Cost (Breakdown)

Works: £145,000 to be adjusted for use of additional S106 resources

Equipment: Not applicable

Other: Not applicable

Fees: £5,000

Additional Revenue cost / (savings) per annum: Not applicable

Proposed Funding

External: Planned additional use of £102k S106 Contribution

Internal: Balance from Regeneration and Community Projects Reserve (Special Expense)

Useful Economic Life (years): 15 years

New / Replacement: Replacement and new

Depreciation per annum: £10k to be recalculated when use of S106 is known

Capital Financing Costs: Nil as funds raised through WB Special Expense and S106 Contribution

Residual Value: Not applicable

Category of Asset: Infrastructure/Equipment

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 10
Project Name: West Park Enhancements Special Expense

Cost Centre: 0320

Detailed Description

West Park centenary is 2023 and the Sir Julian Cahn Pavilion centenary year is in 2026. The wooden constructed former cricket pavilion underwent a substantive refurbishment in 2004 and is now in need of further works to preserve the building and ensure that it meets the needs of the local community.

It is proposed that it becomes the primary building for functions offered by the council.

The upgrade would include replacing the existing toilets and bar area after establishing if there is a need of a fixed bar or if this would be provided by having better toilets and a function room that can support an external bar provider.

Kitchen unit replacements; replacement of timber bay windows; installation of bi-fold doors to provide access to the grassed area in front of the building; and remodelling the disabled entry to provide improved access.

Works to include replacement of sanitary ware, fixtures, fittings, and finishes. We would also explore upgrading the boiler and establish if solar panels could be fitted to the rear of the building’s roof to improve environmental standard and minimise water and power consumption. An additional £20k has been included to upgrade the public toilet.

Further survey work is needed to understand if there is any underpinning work required given the construction and age of the pavilion and the current costing and timescales are estimated based upon Estate’s capacity to support the delivery of the project.

The project would also include the installation of modern technology such as Wi-Fi.

Location: Julien Cahn Pavilion

Executive Director: Neighbourhoods

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life
Efficient Services
The Environment

Strategic Commitments

Protecting our residents’ health and facilitates healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes

Upgrade works will enhance customer experience and improve efficiency of the facility.
It is proposed to commence these works over the winter of 2023/24 and complete in the spring 2025, however this project will need to be consider in conjunction with the Cotgrave Leisure Centre redevelopment, the Keyworth Leisure Centre development, and the Edwalton Community Building redevelopment to ensure enough staff capacity to complete the works.

Environmental Outcomes

The Pavilion would be refurbished to the latest building regulations and environmental standards, it is proposed to have solar PV to its southern roof elevation Thermal efficient windows and water and heat saving infrastructure would be included in the refurbishment.

Other Options Rejected and Why

Do not refurbish the Pavilion – this would result in lower customer experience/perceptions of the facility and miss an opportunity to minimise operational costs and achieve Carbon reduction targets for our Estate.

It would also put at risk an historic building within West Bridgford falling into decline.

Start Date: 2023/24

Completion Date: 2024/25

Capital Cost (Total): £500,000

Year 1 (2023/24): £500,000 but may need reprofiling

Capital Cost (Breakdown)

Works: £455,000

Equipment: Not applicable

Other: Not applicable

Fees: £45,000

Additional Revenue cost / (savings) per annum: Not applicable

Proposed Funding

External: £0

Internal: Capital Receipts s in the first instance repayable from West Bridgford Special Expense by annuity. Potential Climate Change elements to be determined and assessed for funding from the specific reserve.

Useful Economic Life (years): 30 years

New / Replacement: New and replacement

Depreciation per annum: £16.6k

Capital Financing Costs: Nil as repaid from West Bridgford Special Expense

Residual Value: Not applicable

Category of Asset: Operational Land & Buildings/Equipment

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 11
Project Name: Gresham Sports Pavilion

Cost Centre: 0347

Detailed Description

Gresham Sports Park usage has grown significantly since the installation of a second 3G pitch which came into operation in November 2021.

Since this time the site has taken on additional booking such as the East Midlands Pan-disability league hosting matches at the weekends and an education provider using the during the pavilion on weekday.

On match days the once underutilised changing rooms are fully being used and we would like to improve the disabled provision by installing a changing place toilet.

The two options are as follows:

Option 1

Convert the former physio room that is now operating as a cleaning store into a changing place toilet.

Advantages

The room has an existing toilet and water supply so it would be easier to create a changing places toilet in this space. It would also be secure as part of the main building.

Disadvantages

The pavilion is quite a walk from the second ATP pitch so is not ideally located The pavilion has quite poor storage so it would be a challenge to accommodate the cleaning materials if this space was re-purposed.

This option is estimated at £50,000 and would be subject to a successful DLUHC grant application.

Option 2

Purchase a stand-alone Changing places pod and locate it on the grass area marked by the A and B dots on the second image.

Advantages

The pod could be installed directly into the optimal site location and provide improved access for people using the second ATP.

Disadvantages

The services required to connect the pod into the existing foul drainage system in currently unknow but cold be expensive.
The pod would need to be secured and may be susceptible to vandalism.
This option is likely to be more expensive to deliver.
This option is estimated at £75,000 and would be subject to a successful DLUHC grant application.

Location: Gresham Sports Park West Bridgford

Executive Director: Neighbourhoods

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Quality of Life
Efficient Services

Strategic Commitments

Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.

Community Outcomes

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.
Assisting the vulnerable in our communities.

Environmental Outcomes

Material selection, wherever possible locally sourced, carbon efficient production, longevity of materials will be considered when selecting finishes.
Upgrades to lighting and mechanical building elements will look to use low energy technology wherever feasible and water saving technology would be incorporated into the scheme.

Other Options Rejected and Why

This may also lead to loss of customers resulting in a less efficient service.

Start Date: 2023

Completion Date: 2024

Capital Cost (Total): £50,000 to be amended to £75,000 if option 2 approved.

Year 1 (2023/24): £50,000

Capital Cost (Breakdown)

Works: £45,500

Equipment: Not applicable

Other: Not applicable

Fees: £4,500

Additional Revenue cost / (savings) per annum: Not applicable

Proposed Funding

External: Government Grant

Internal: Not applicable

Useful Economic Life (years): 15 years

New / Replacement: New

Depreciation per annum: £3,300

Capital Financing Costs: Nil, fully funded by Government Grant

Residual Value: Not applicable

Category of Asset: Operational - land and buildings

IFRS16 New Lease Checklist Completed: Not applicable

Reference: 12
Project Name: Information Systems Strategy

Cost Centre: 0596

Detailed Description

An emerging strategy enabling an agile approach to operational delivery, taking advantage of new proven developments. The ICT Technical Delivery Plan details all technical projects, and the schedule for implementation, during the lifetime of the ICT Strategy.

Location: Rushcliffe Arena

Executive Director: Finance and Corporate

Contributions to the Council’s Aims and Objectives

Corporate Priorities

Efficient Services
Quality of Life
The Environment
Digital-by-Design

Strategic Commitments

Ongoing appraisal and alignment of resources linked to growth aspirations.
Include digital principles in our communications and ways of undertaking business
Working to achieve carbon neutral status for the Council’s operations.
Continue to invest in Cloud Services to enhance the Councils Business Continuity Plans and provide support for ‘Smarter Ways of Working’ policies.
People and Technology working together to provide efficiencies and remove barriers to simplify the Councils operations.

Community Outcomes

To ensure that we make best use of digital development where appropriate to deliver better services and operate more efficiently.
To enable residents to do business with us in a digital way if that is their preference.
To use public spend in an efficient and economical way.

The ICT Strategy is closely aligned to the Council’s “Four Year Plan” reviews and ICT will be instrumental in delivering the outcomes identified during these reviews. The Strategy will deliver:

People and Smarter Ways of Working.
- With a focus on people and their experience when accessing Council services.
  Investing time to find the correct and appropriate solution, which provides efficient and economical systems across the Council. To bring people along the journey and promote flexible, remote, and agile solutions, and digital transformation programmes that take advantage of self-service initiatives, intelligent automation (IA), and artificial intelligence (AI). Key elements are people and the use of technology as an enabler and improving customer service and experience.
Business Continuity, Cloud Services and Hybrid Technologies
- Continue to improve business continuity arrangements and underpin other strategic objectives and their success. Seek opportunities to use cloud services to improve access and resilience for our residents and staff accessing Council
  services. Recognising when Hybrid technologies can be used to accommodate for complex and flexible solutions.
Information Management and Governance, and Security
- To safeguard Council data by ensuring legislative, central government security standards are followed and using security and privacy by design principles.
Think Green
- To be aware of and help achieve local net zero targets from energy efficiency savings when upgrading existing or implementing new systems. To report on energy usage and seek out opportunities to provide positive impact on carbon
  reduction.
Collaboration and Partnerships
- Continue to work closely with other authorities, establishing effective partnerships to share common challenges for efficient outcomes.

Environmental Outcomes:

When infrastructure or ICT equipment is procured, power consumption forms part of the decision making when assessing quality of products. The supplier is also reviewed to see what their carbon footprint is and will add to the Council’s.

Other Options Rejected and Why

Projects are the subject of a business case to be presented to, and approved by, the Executive Manager for the corresponding Service Area to ensure that the most appropriate IT solution is chosen, having due regard to the alignment of technologies already in use across other local authorities, value for money and resilience. The option of not doing so would lead to outdated or incompatible technology, which would result in lower performance, higher maintenance costs and hinder the drive for greater efficiencies.

Start Date: Ongoing

Completion Date: Ongoing

Capital Cost (Total): £410,000 (2 years)

Year 1 (2023/24): £160,000

Year 2 (2024/25): £250,000

Capital Cost (Breakdown)

Equipment: £270k

Other intangible assets: £140k

Additional Revenue cost / (savings) per annum: Not applicable

Proposed Funding

External: £0

Internal: Capital receipts

Useful Economic Life (years): 3 years

New / Replacement: New and Replacement

Depreciation per annum: £53,000 year 1, plus £83k year 2

Capital Financing Costs: : £16,400 per annum as opportunity cost of lost interest.

Residual Value: Nil

Category of Asset: Intangible Assets and Equipment

IFRS16 New Lease Checklist Completed: Not applicable

Appendix 4 - Capital and Investment Strategy 2023/24 - 2027/28

Introduction

1. The Local Government Act 2003 requires the Council to comply with the CIPFA Prudential Code for Capital Finance in Local Authorities when carrying out capital and treasury management activities.

2. The Department for Levelling Up, Housing & Communities (DLUHC) has issued Guidance on Local Authority Investments that requires the Council to approve an investment strategy before the start of each financial year.

3 .This report fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the DLUHC Guidance.

4. Revisions to CIPFA's Treasury Management Code and Prudential Code (December 2021) come into full effect in 2023/24, including revised reporting requirements (these include changes in the Capital strategy, prudential indicators, and investment reporting) which had been deferred but which the Council is already following. Treasury Management Practices (TMPs) have been updated accordingly and are referenced below. Main changes relate to greater emphasis on environmental sustainability and the knowledge and skills of staff/council members dealing with treasury management. In addition, there is the introduction of Investment Management Practices (IMPs) which cover investment objectives/criteria, risk management and decision making.

The Capital Strategy

5. The Council’s capital expenditure plans are summarised below and forms the first of the prudential indicators. Capital expenditure needs to have regard to:

- Corporate priorities (e.g. strategic planning);
- Stewardship of assets (e.g. asset management planning);
- Value for money (e.g. option appraisal);
- Prudence and sustainability (eg implications for external borrowing and whole life costing);
- Affordability (e.g. implications for council tax); and
- Practicability (e.g. the achievability of the Corporate Strategy)
- Proportionality (e.g. risks associated with investment are proportionate to financial capacity); and
- ESG (Environmental, Social, and Governance e.g., address environmental sustainability in a manner which is consistent with our corporate policies. This is now a requirement of the TM Code.)

6. Each year the Council will produce a Capital Programme to be approved by Full Council in March as part of the Council Tax setting.

7. Each scheme is supported by a detailed appraisal (which may also be a Cabinet Report), as set out in the Council’s Financial Regulations. The capital appraisals will address the following:

a) A detailed description of the project;

b) How the project contributes to the Council’s Corporate Priorities and Strategic Commitments s (particularly the Council’s environmental and carbon policies) ;

c) Anticipated outcomes;

d) A consideration of alternative solutions;

e) An estimate of the capital costs and sources of funding;

f) An estimate of the revenue implications, including any savings and/or future income generation potential;

g) A consideration of whether it is a new lease agreement;

h) A consideration of sustainability in accordance with Corporate objectives; and

i) Any other aspects relevant to the appraisal of the scheme as the S151 Officer may determine.

The appraisal requirement applies to all schemes except where there is regular grant support and if commercial negotiations are due to take place and further reporting to Cabinet or Full Council is therefore required.

8. From time-to-time unforeseen opportunities may arise, or new priorities may emerge, which will require swift action and inclusion in the Capital Programme. These schemes are still subject to the appraisal process and the Capital Programme will contain a contingency sum to allow such schemes to progress without disrupting other planned capital activity.

Capital Prudential Indicators

a) Capital Expenditure Estimates

9. Capital expenditure can be financed immediately through the application of capital resources, for example, capital receipts, capital grants or revenue resources. However, if these resources are insufficient or a decision is taken not to apply resources, the capital expenditure will give rise to a borrowing need. The table below summarises the capital expenditure projections and anticipated financing.

Projected Capital Expenditure and Financing
Category	2022/23 Original £'000	2022/23 Revised £'000	2023/24 Estimate £'000	2024/25 Estimate £'000	2025/26 Estimate £'000	2026/27 Estimate £'000	2027/28 Estimate £'000
Capital Expenditure	16,611	19,579	9,576	4,340	5,935	2,265	1,370
Less Financed by	-	-	-	-	-	-	-
Capital Receipts	8,921	4,759	3,387	2,260	4,690	670	195
Capital Grants / Contributions	4,085	4,347	3,739	1,570	695	695	695
Reserves	1,605	1,223	1,450	510	550	900	480
Total Financing	16,611	10,329	8,576	4,340	5,935	2,265	1,370
Underlying need to Borrow	0	9,250	1,000	0	0	0	0

10. The key risks to the capital expenditure plans are that the level of grants estimated is subject to change, anticipated capital receipts are not realised or spend is more than expected in the medium term. The Government had planned to cease New Homes Bonus from 2023/24 which impacted on the level of capital grants received going forward. We have had a reduced allocation in 2023/24 and its future remains uncertain.

b) The Council's Underlying Need to Borrow and Investment Position

11. The Capital Financing Requirement (CFR) represents the Council’s underlying need to borrow for capital expenditure and it remains a key indicator under the Prudential Code. This underlying need to borrow will increase the CFR (the use of internal borrowing, which reduces our investment balance). This increase is offset by Minimum Revenue Provision (MRP) and any additional voluntary contributions (VRP) raised through Council Tax, as a result of financing requirements in relation to the Arena development, Cotgrave redevelopment, Bingham Leisure Hub and the Crematorium.

12. The Council also holds usable reserves and working capital which represent the underlying resources available for investment. The Council’s current strategy is to use these resources, by way of internal borrowing, to avoid the commitment to external debt.

13. The table below summarises the overall position regarding borrowing and available investments and shows an increase in CFR reflecting the completion of the Crematorium and Bingham Leisure Hub in 2022-23. The capital receipt anticipated from the sale of land Hollygate Lane will be used to reduce the CFR in following years.

Capital Financing Requirement and Investment Resources
Description	2022/23 Forecast £'000	2023/24 Forecast £'000	2024/25 Forecast £'000	2025/26 Forecast £'000	2026/27 Forecast £'000	2027/28 Forecast £'000
Opening CFR	7,283	15,516	12,605	9,385	8,116	7,281
CFR in year	9,250	1,000	-	-	-	-
Less MRP etc	(1,017)	(1,311)	(1,320)	(1,269)	(835)	(269)
Closing CFR	15,516	12,605	9,385	8,116	7,281	7,012
Less External Borrowing	-	-	-	-	-	-
Internal Borrowing	15,516	12,605	9,385	8,116	7,281	7,012
Less: Usable Reserves	(24,866)	(22,129)	(22,632)	(20,451)	(18,665)	(18,281)
Less: Working Capital	(43,569)	(38,625)	(35,750)	(33,750)	(31,750)	(29,750)
Available for Investment	(52,919)	(48,149)	(48,997)	(46,085)	(43,134)	(41,019)

14. The Council is currently debt free and the assumption in the capital expenditure plans is that the Council will not need to externally borrow over the MTFS predominantly due to CIL and S106 monies. Available resources (usable reserves and working capital) gently tail off over the medium term, with usable reserves being used over the medium term to finance both capital and revenue expenditure and working capital steadily reducing as S106 monies in relation to Education are no longer paid to the Council

15. The new accounting standard IFRS16 has been delayed again and now comes into force on 1 April 2024. IFRS 16 affects how leases are measured, recognised, and presented in the accounts and essentially means that some leases may have to be classified as capital expenditure. The e full impact of this change will be determined but it is thought that it is unlikely to impact significantly on the CFR.

Minimum Revenue Provision Policy

16. DLUHC Regulations have been issued which require the Governance Scrutiny Group to consider a Minimum Revenue Provision (MRP) Statement in advance of each year. Further commentary regarding financing of the debt is provided in paragraphs 28-33. A variety of options are provided to Councils, so long as there is prudent provision. The Council has chosen the Asset Life Method (Option 3 within the Guidance) with the following recommended MRP Statement:

MRP will be based on the estimated life of the assets, in accordance with Option 3 of the regulations. Estimated life periods within this limit will be determined under delegated powers, subject to any statutory override. (DCLG revised guidance states maximum asset lives of 40 and 50 years for property and land respectively)

As some types of capital expenditure incurred by the Council are not capable of being related to an individual asset, asset lives will be assessed on a basis which most reasonably reflects the anticipated period of benefit that arises from the expenditure. Also, whatever type of expenditure is involved, it will be grouped together in a manner which reflects the nature of the main component of expenditure and will only be divided up in cases where there are two or more major components with substantially different useful economic lives.

This option provides for a reduction in the borrowing need over approximately the asset’s life.

17. As well as the need to pay off an element of the accumulated General Fund borrowing requirement, used to fund capital expenditure each year (the capital financing requirement - CFR), through a revenue charge (the MRP) the Council is also allowed to make additional voluntary contributions (voluntary revenue provision – VRP). In times of financial crisis, the Council has the flexibility to reduce voluntary contributions. The table in paragraph 13 shows a decision to use capital receipts to bring the CFR down by funding capital expenditure.

Treasury Management Strategy 2023/24 to 2027/28

18. The CIPFA Treasury Management Code (2021) defines treasury management activities as:

“The management of the organisation's borrowing, investments and cash flows, including its banking, money market and capital market transactions, the effective control of the risks associated with those activities, and the pursuit of optimum performance consistent with those risks".

The code also includes non-cash investments which are covered at paragraph 66 below. Under the revised Prudential code investments are separated into categories for Treasury Investment, Service Investment and Commercial Investment.

19. The CIPFA Code of Practice for Treasury Management in the Public Services (the “CIPFA Treasury Management Code”) and the CIPFA Prudential Code require local authorities to produce a Treasury Management Strategy Statement on an annual basis.

20. This Strategy Statement includes those indicators that relate to the treasury management functions and help ensure that the Council’s capital investment plans are affordable, prudent and sustainable, while giving priority to the security and liquidity of those investments. TMP 1 sets out the Council’s practices relating to ESG and is a developing area.

The Current Economic Climate and prospects for Interest Rates

21. At the December 2022 meeting the monetary policy committee (MPC) backed a hike in interest rates of 0.5 percentage points despite fears the UK economy is about to enter a long recession.

22. It is exactly a year since the Bank of England started raising interest rates from a record low of 0.1% in December 2021. On the 15 December the Bank of England raised the Bank Rate for the ninth time in a year, a 0.5% jump to 3.5%. The financial markets believe interest rates will peak at 4.75% next year. Link (the Council’s Treasury Advisors) are forecasting a stepped increase with rates peaking at 4.5% in June 2023 before starting to tail off from December 2023 dropping to 4.0% in March 2024 and gradually reducing to 2.5% by September 2025.

23. Inflation is currently at 10.7% due to higher energy and commodity prices and continuing supply shortages. The target is to get inflation to 2% which is why the MPC is under pressure to increase interest rates. Inflation is expected to remain high for the first quarter of 2023 and then gradually fall back towards 2% by the April 2024.

24. The unemployment rate in the UK is currently 3.7% (Nov 2022) and is projected to trend around 5% in 2023 and 6% in 2024.

25. The table below shows the assumed average interest (which reflects a prudent approach) that will be made over the next five years for budget setting purposes.

Budgetary Impact of Assumed Interest Rate
Category	2023/24	2024/25	2025/26	2026/27	2027/28
Anticipated Interest Rate (%)	4.50	4.00	3.00	2.50	2.50
Expected Interest from Investments (£)	1,292,308	839,420	613,045	547,570	542,995
Other Interest (£)	67,000	63,000	59,000	59,000	59,000
Total Interest (£)	1,359,308	902,420	672,045	606,570	601,995
Sensitivity	£	£	£	£	£
-0.25% Interest Rate	(307,700)	(205,800)	(37,000)	(24,700)	(19,300)
+0.25% Interest Rate	307,700	205,800	37,000	24,700	19,300

26. In the event that a bank suffers a loss, the Council could be subject to bail-in to assist with the recovery process. The impact of a bail-in depends on the size of the loss incurred by the bank or building society, the amount of equity capital and junior bonds that can be absorbed first and the proportion of insured deposits, covered bonds and other liabilities that are exempt from bail-in.

27. The Council has managed bail-in risk by both reducing the amount that can be invested with each institution to £10 million and by investment diversification between creditworthy counterparties.

Borrowing Strategy 2023/24 to 2027/28

Prudential Indicators for External Debt

28. The Capital Financing table above identifies that the Council may need to externally borrow over the MTFS instead choosing to internally borrow. Whilst this means that no external borrowing costs (interest/debt management) are incurred, there is an opportunity cost of using internal borrowing by way of lost interest on cash balances.

29. The approved sources of long term and short-term borrowing are:

Internal borrowing
Municipal Bond Agency
Public Works Loan Board (PWLB) (or the body that will replace the PWLB in the future)
Local authorities
UK public and private sector pension funds
Commercial banks
Building Societies in the UK
Money markets
Leasing
Capital market bond investors
Special purpose companies created to enable local authority bond issue.

PWLB Borrowing is at Gilts +80bps (certainty rate). If applying, there is the need to categorise the capital programme into 5 categories including service, housing and regeneration. If any Authority has assets that are being purchased ‘primarily for yield’ anywhere in their capital programme they will not be able to access PWLB funding.

a) Authorised Limit for External Debt

30. The authorised limit is the “affordable borrowing limit” required by section 3 (1) of the Local Government Act 2003 and represents the limit beyond which borrowing is prohibited. It shows the maximum amount the Council could afford to borrow in the short term to maximise treasury management opportunities and either cover temporary cash flow shortfalls or use for longer term capital investment. It should be set higher than the CFR plus a safety margin of £5m to £10m.

Authorised Limit for External Debt
Description	2022/23 Estimate £'000	2023/24 Estimate £'000	2024/25 Estimate £'000	2025/26 Estimate £'000	2026/27 Estimate £'000	2027/28 Estimate £'000
Authorised Limit	25,000	25,000	25,000	25,000	25,000	25,000

b) Operational Boundary for External Debt

31. The operational boundary is the expected borrowing position of the Council during the course of the year. The operational boundary is not a limit and actual borrowing can be either below or above the boundary subject to the authorised limit not being breached. The Operational Limit has been set at £20m and, whilst the Council is not expected to externally borrow over the period of the MTFS, this provides a cushion and gives flexibility should circumstances significantly change.

Operational Boundary for External Debt
Category	2022/23 Estimate £'000	2023/24 Estimate £'000	2024/25 Estimate £'000	2025/26 Estimate £'000	2026/27 Estimate £'000	2027/28 Estimate £'000
Operational Boundary	20,000	20,000	20,000	20,000	20,000	20,000

32. The Prudential indicators are shown in the table below:

Prudential Indicators
Description	2022/23 £'000	2023/24 £'000	2024/25 £'000	2025/26 £'000	2026/27 £'000	2027/28 £'000
Authorised Limit	25,000	25,000	25,000	25,000	25,000	25,000
Operational Boundary	20,000	20,000	20,000	20,000	20,000	20,000
Capital Financing Requirement	15,516	12,605	9,385	8,116	7,281	7,012

33. The TM Code introduces a new indicator called the Liability Benchmark which reflects the real need to borrow. The Benchmark must also be shown graphically. The Liability Benchmark in the table and graph below shows that the Council’s CFR is reducing due to MRP repayments, reserves are being used to fund future capital expenditure and working capital/S106 monies are returning to a more realistic level. The Council has no need to borrow over the medium term.

Proportion of Financing Costs to Net Revenue Stream
Description	2022/23 £000	2023/24 £000	2024/25 £000	2025/26 £000	2026/27 £000	2027/28 £000
Closing CFR	15,516	12,605	9,385	8,116	7,281	7,012
Less: Usable Reserves	(24,866)	(22,129)	(22,632)	(20,451)	(18,665)	(18,281)
Less: Working Capital	(43,569)	(38,625)	(35,750)	(33,750)	(31,750)	(29,750)
Plus: Minimum Investments	10,000	10,000	10,000	10,000	10,000	10,000
Liability Benchmark	(42,919)	(38,149)	(38,997)	(36,085)	(33,134)	(31,019)

The Prudential Indicators for Affordability

34. Affordability indicators provide details of the impact of capital investment plans on the Council’s overall finances.

a) Actual and estimates of the ratio of net financing costs to net revenue stream

35. This indicator identifies the trend in net financing costs (borrowing costs less investment income) against net revenue income. The purpose of the indicator is to show how the proportion of net income used to pay for financing costs is changing over time. A credit indicates interest earned rather than an interest cost. The credit figure in 2023-24 reflects the rapid rise in interest rates and the downward trend, in later years, reflects the reduction in MRP as payments in relation to the Arena are finalised and despite new non-treasury capital commitments in the Crematorium and Bingham Hub giving rise to further MRP, repayments are less because they are spread over a longer period.

Proportion of Financing Costs to Net Revenue Stream
Category	2022/23 Estimate	2023/24 Estimate	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate
General Fund	4.92%	-0.37%	3.22%	4.45%	-0.32%	-0.31%

b) Estimates of net income to net revenue stream

36. This a new indicator that looks at net income from commercial and service investments (for example it includes the Crematorium) and expresses it as a percentage of net revenue streams. The increase reflects rent increases and full year effect of the crematorium becoming operational.

Proportion of Net Income to Net Revenue Stream
Description	2023/24 £000	2024/25 £000	2025/26 £000	2026/27 £000	2027/28 £000
Net Income to Net Revenue Stream	11.3%	11.4%	15.5%	15.7%	15.6%

Investment Strategy 2023/24 to 2027/28

37. The table below shows the Council’s investment projections. The downward movement reflects the use of capital receipts to finance capital expenditure. In addition, it reflects the release of S106 monies and the loss of S106 receipts for Education which are no longer paid to the Council.

Investment Projections
Description	2022/23 Estimate £'000	2023/24 Estimate £'000	2024/25 Estimate £'000	2025/26 Estimate £'000	2026/27 Estimate £'000	2027/28 Estimate £'000
Investments at 31 March	52,919	48,149	48,997	46,085	43,134	41,019

38. Both the CIPFA Code and the DLUHC Guidance require the Council to invest its funds prudently, and to have regard to the security and liquidity of its investments before seeking the highest rate of return. The Council’s objective when investing money is to strike an appropriate balance between risk and return, minimising the risk of incurring losses from defaults and the risk of receiving unsuitable low investment income. Accordingly, the Council ensures that robust due diligence procedures cover all external investments.

39. The Council will not knowingly invest directly in businesses whose activities and practices pose a risk of serious harm to individuals or groups, or whose activities are inconsistent with the Council’s Corporate Objectives and values. This would include avoiding direct investment in institutions with material links to:

Human rights abuse (e.g. child labour, political oppression);
Environmentally harmful activities (e.g. pollutants, destruction of habitat, fossil fuels); and
Socially harmful activities (e.g. tobacco, gambling).

40. The Council will keep under review the sensitivity of its treasury assets and liabilities to inflation and will seek to manage the risk accordingly in the context of the whole of the Council’s inflation exposures.

41. The Council will invest its surplus funds with approved counterparties. Where appropriate, the Council is registered as a professional client (under MIFID II) with the counterparty limits shown below in Table 9 and counterparties included at Appendix i. Government is currently reviewing UK regulations in light of Brexit, but at this point, there is no direct impact on the way the Council invests. However, members will be updated if there are any changes as they materialise:

Counterparty Details
Credit Rating	Banks* Unsecured	Banks* Secured	Government	Corporates	Registered Providers
UK Government	not applicable	not applicable	£ unlimited 20 years	not applicable	not applicable
AAA	£3.0m 3 years	£10.0m 10 years	£10.0m 20 years	£3.0m 10 years	£5.0m 10 years
AA+	£3.0m 2 years	£10.0m 10 years	£10.0m 5 years	£3.0m 4 years	£5.0m 4 years
AA	£3.0m 1 year	£10.0m 4 years	£10.0m 3 years	£3.0m 2 years	£5.0m 4 years
AA-	£3.0m 1 year	£10.0m 2 years	-	-	£5.0m 4 years
A+	£3.0m 6 months	£10.0m 2 years	-	-	£5.0m 2 years
A	£3.0m 6 months	£10.0m 1 year	-	-	£5.0m 2 years
A-	£3.0m 3 months	£10.0m 6 months	-	-	£5.0m 2 years
Pooled Funds**	£10m per fund	£10m per fund	£10m per fund	£10m per fund	£10m per fund

*Banks includes Banks and Building Societies.

**Pooled funds do not have a defined maturity date. Monies in Money Market Funds can be withdrawn on the same date; monies in other pooled funds can be withdrawn giving the requisite notice, generally between 1 and 7 days.

Monies in the CCLA Property Fund can be withdrawn on each monthly redemption date, if required; it is the Council’s intention to hold its investment over a reasonable time frame for property investments, which is 5 years, subject to cash flow requirements.

42. Although the above table details the counterparties that the Council could invest funds with, it would not invest funds with counterparties against the advice of Link (our TM Advisors) even if they met the criteria above.

43. Changes to any of the above can be authorised by the Section 151 Officer or the Services Manager - Finance and thereafter will be reported to the Governance Scrutiny Group. This is to cover exceptional circumstances so that instant decisions can be made in an environment which is both fluid and subject to high risk.

44. The Council may incur operational exposures, for example though current accounts, collection accounts and merchant acquiring services, to any UK bank with credit ratings no lower than BBB- and with assets greater than £25 billion. These are not classed as investments but are still subject to the risk of a bank bail-in, and balances will therefore be kept below £2,000,000 per bank. The Bank of England has stated that in the event of failure, banks with assets greater than £25 billion are more likely to be bailed-in than made insolvent, increasing the chance of an Authority maintaining operational continuity.

45. Credit rating information is provided by Link on all active counterparties that comply with the criteria above. A counterparty list will be maintained from this information and any counterparty not meeting the criteria will be removed from the list.

46. Where an entity has its credit rating downgraded so that it fails to meet the approved investment criteria then:
•   no new investments will be made,
•   any existing investments that can be recalled or sold at no cost will be, and
•   full consideration will be given to the recall or sale of all other existing investments with the affected counterparty.

47. Where a credit rating agency announces that a credit rating is on review for possible downgrade (also known as “rating watch negative” or “credit watch negative”) so that it may fall below the approved rating criteria, then only investments that can be withdrawn [on the next working day] will be made with that organisation until the outcome of the review is announced. This policy will not apply to negative outlooks, which indicate a long-term direction of travel rather than an imminent change of rating.

Credit Risks

48. The CIPFA Treasury Management Code recommends that organisations should clearly specify the minimum acceptable credit quality of its counterparties; however, they should not rely on credit ratings alone and should recognise their limitations. Full regard will therefore be given to other available information on the credit quality of the organisations, in which it invests, including credit default swap prices, financial statements, information on potential government support and reports in the quality financial press. No investments will be made with an organisation if there are substantial doubts about its credit quality, even though it may meet the credit rating criteria.

49. When deteriorating financial market conditions affect the credit worthiness of all organisations, as happened in 2008 and 2011, this is not generally reflected in credit ratings, but can be seen in other market measures. In these circumstances, the Council will restrict its investments to those organisations of higher credit quality and reduce the maximum duration of its investments to maintain the required level of security. The extent of these restrictions will be in line with prevailing financial market conditions. If these restrictions mean that insufficient commercial organisations of high credit quality are available to invest the Authority’s cash balances, then the surplus will be deposited with the UK Government, via the Debt Management Office or invested in government treasury bills for example, or with other local authorities. This will cause a reduction in the level of investment income earned but will protect the principal sum invested.

Current Investments

50. The Council uses its own processes to monitor cash flow and determine the maximum period for which funds may prudently be committed. The forecast is compiled on a prudent basis to minimise the risk of the Council being forced to borrow on unfavourable terms to meet its financial commitments. Limits on long-term investments are set by reference to the Council’s medium-term financial strategy and cash flow forecast.

51. Surplus funds are invested based on the most up to date forecasts of interest rates and in accordance with the Council’s cash flow requirements in order to gain the maximum benefit from the Council’s cash position throughout the year. Generally speaking, in times of rising interest rates it is prudent to invest short term, whilst also ensuring a diversified portfolio. Funds are separated between specified and non-specified investments as detailed in paragraphs 53 to 55 below.

52. The Council holds approximately £15m in pooled/diversified funds. The fair value of these funds can fluctuate. These can be seen in Appendix ii. Some funds are just starting to pick up from the downward trend experienced by the political turmoil last year. However some funds are still reporting a downward trend. Cabinet reports have recommended mitigation by appropriations to reserves of £0.6m from 2022/23 in year efficiencies and £0.2m from 2021/22. Currently there is a statutory override preventing any accounting loss impacting on the revenue accounts. This was due to end next 31st March 2023 however DLUHC having decided, after consultation, to extend this for a further two years. As part of the budget and financial strategy 2023-24 report being taken to Full Council, it is being recommended that a separate reserve is identified to cover this risk of £1m. It should be noted these funds over the past 3 years have generated £1.35m in interest receipts, 65% of total interest received by the Council and our expectation is over time the value will rise as the economy recovers.

Specified Investments

53. The DLUHC guidance defines specified investments as those:

•   Denominated in pound sterling,
•   Due to be repaid within 12 months of arrangements,
•   Not defined as capital expenditure by legislation, and
•   Invested with one of:
•   The UK Government
•   A UK local authority, parish council, or community council, or
•   A body or investment scheme of “high credit quality”

54. The Council now defines “high credit quality” organisations as those having a credit rating of A- and above.

Non-specified Investments

55. Any investment not meeting the definition of a specified investment is classed as non-specified. The Council does not intend to make any investments denominated in foreign currencies, nor any that are defined as capital expenditure by legislation, such as company shares. Non-specified investments will therefore be limited to long-term investments (those that are due to mature 12 months or longer from the date of arrangement, and investments with bodies and scheme not meeting the definition on high credit quality). Limits on non-specified investments are shown in the following table:

Non-specified Investment Limits
Description	Cash Limit
Total long-term investments	£15m
Total investments without credit ratings or rated below A- (except UK Government and local authorities)	£5m
Total investments (except pooled funds) with institutions domiciled in foreign countries rated below AA+	£3m
Total non-specified investments	£15m

Investment Limits

56. The Council’s revenue reserves available to cover investment losses in a worst-case scenario are forecast to be around £16 million on 31st March 2023. The maximum that will be lent to any one organisation (other than the UK Government) will be £10.0 million. This figure is constantly under review to assess risk in the case of a single default. A group of banks under the same ownership will be treated as a single organisation for limit purposes. Limits will also be placed on fund managers, investments in brokers’ nominee accounts, foreign countries, and industry sectors as below. Investments in pooled funds and multilateral development banks do not count against the limit for any single foreign country since the risk is diversified over many countries.

Investment Limits
Description	Cash Limit
Any single organisation, except the UK Central Government	£10m each
UK Central Government	Unlimited
Any group of organisations under the same ownership	£10m per group
Any group of pooled funds under the same management	£10m per manager
Negotiable instruments held in a broker’s nominee account	£10m per broker
Foreign Countries	£3m per country
Registered providers	£5m in total
Unsecured investments with any building society	£3m in total
Loans across unrated corporates	£5m in total
Money Market Funds	£40m in total

Treasury Management Limits on activity

57. The Council measures and manages its exposures to treasury management risks using the following indicators.

a) Interest Rate Exposure

58. This indicator is set to control the Council’s exposure to interest rate risk. The upper limits on fixed and variable rate interest rate exposures, expressed as the amount of net interest payable will be:

Interest Rate Exposure
Category	2022/23	2023/24	2024/25	2025/26	2026/27	2027/28
Upper Limit on fixed interest rate exposure	50%	50%	50%	50%	50%	50%
Upper Limit on variable interest rate exposure	100%	100%	100%	100%	100%	100%

59. Fixed rate investments and borrowings are those where the rate of interest is fixed for at least 12 months, measured from the start of the financial year or the transaction date if later. All other instruments are classed as variable rate.

Principal Sums Invested over one year

60. This limit is intended to contain exposure to the possibility of any loss that may arise as a result of the Council having to seek early repayment of any investments made. The limits on the long-term principal sum invested to final maturities beyond the period end are set at 50% of the sum available for investment (to the nearest £100k), as follows:

Principal sums invested over one year
Description	2022/23 Estimate £'000	2023/24 Estimate £'000	2024/25 Estimate £'000	2025/26 Estimate £'000	2026/27 Estimate £'000	2027/28 Estimate £'000
Limit on Principal Invested over one year	26,500	24,100	24,500	23,000	21,600	20,500

Policy on the use of financial derivatives

61. Local authorities have previously made use of financial derivatives embedded into loans and investments both to reduce interest rate risk (for example, interest rate collars and forward deals) and to reduce costs or increase income at the expense of greater risk (for example LOBO loans and callable deposits). The general power of competence in Section 1 of the Localism Act 2011 removes much of the uncertainty over local authorities’ use of standalone financial derivatives (those that are not embedded into a loan or investment).

62. The Council will only use standalone financial derivatives (such as swaps, forwards, futures, and options) where they can be clearly demonstrated to reduce the overall level of the financial risks that the Council is exposed to. Additional risks presented, such as credit exposure to derivative counterparties, will be considered when determining the overall level of risk. Embedded derivatives, including those present in pooled funds and forward starting transactions, will not be subject to this policy, although the risks they present will be managed in line with the overall treasury risk management strategy.

63. Financial derivative transactions may be arranged with any organisation that meets the approved investment criteria. The current value of any amount due from a derivative counterparty will count against the counterparty credit limit and the relevant foreign country limit.

Treasury Management Advisors

64. Link Treasury Services will act as the Council’s treasury management advisors until 31 October 2023 and is currently going through a procurement process. The company provides a range of services which include:

•   Technical support on treasury matters and capital finance issues;
•   Economic and interest rate analysis;
•   Generic investment advice on interest rates, timing and investment instruments; and
•   Credit ratings/market information service comprising the three main credit rating agencies.

65. Whilst the treasury management advisors provide support to the internal treasury function, the current market rules and the CIPFA Treasury Management Code confirms that the final decision on treasury management matters rests with the Council. The service provided by the Council’s treasury management advisors is subject to regular review.

Other Options Considered

66. The DLUHC Guidance and the CIPFA Code do not prescribe any particular treasury management strategy for local authorities to adopt. Director of Finance and Corporate Services, having consulted the Cabinet Member for Finance, believes that the above strategy represents an appropriate balance between risk management and cost effectiveness. Our policy is to have a feathered approach (a range of counterparties spread over different time periods - short/medium/long term), this mitigates risk of changes in credit ratings and interest rates whether they go up or down.

Commercial Investments

67. The definition of investments in CIPFA’s definition of treasury management activities above (paragraph 18) covers all financial assets of the organisation as well as other non-financial assets which the organisation holds primarily for financial returns, such as investment property portfolios. This may therefore include investments which are not managed as part of normal treasury management or under treasury management delegations.

68. The Council whilst committed to being self-sustainable has taken the decision to no longer invest on property for commercial gain. This accords with the current professional ethos of CIPFA, mentioned below. Hence the Council no longer has an Asset Investment Fund, which was £20m.

69. Under the updated Prudential code Local Authorities are no longer allowed to borrow to fund non-financial assets solely to generate a profit

70. The Council will maintain a summary of current material investments, subsidiaries, joint ventures and liabilities, including financial guarantees and the organisation’s risk exposure. The current summary is included at Appendix (iii).

71. The Council will also monitor past Commercial Property investments and against original objectives and consider plans to divest as part of an biennial review. The last report was presented to Cabinet 14 December 2021 agenda item 6 – Review of Investment Assets. This is due to be reviewed once again in December 2023

72. Proportionality is now included as an objective in the Prudential Code, clarification and definitions to define commercial activity and investment are included, and the purchase of commercial property purely for profit cannot lead to an increased capital financing requirement (CFR). Paragraph 75 covers the issue of proportionality with different types of asset investments the Council has made.

73. The Council must disclose its dependence on commercial income and the contribution non-core investments make towards core functions. This covers assets purchased through the Council’s AIS, as well as other pre-existing commercial investments.

74. The expected contributions from commercial investments are shown below. To manage the risk to the Council’s budget, income from commercial investments should not be a significant proportion of the Council’s income. It is estimated to be around 24% in the current year.

a) Dependence on commercial income and contribution non-core investments make towards core functions

75. The expected contributions from existing commercial investments are shown in the table below. To manage the risk to the Council’s budget, income from commercial investments should not be a significant proportion of the Council’s income. Our objective is that this ratio should not exceed 30%, subject to annual review. Running costs drop initially before starting to rise again, reflecting NNDR savings as empty units at the Point and Bingham Enterprise Centre are occupied and also reflects movements on responsive works budgets.

Commercial Investment income and costs
Category	2022/23 £'000	2023/24 £'000	2024/25 £'000	2025/26 £'000	2026/27 £'000	2027/28 £'000
Commercial Property Income	(1,738)	(1,832)	(1,894)	(1,924)	(1,962)	(1,962)
Running Costs	591	480	468	476	482	487
Net Contribution to core functions	(1,147)	(1,352)	(1,426)	(1,449)	(1,480)	(1,475)
Interest from Commercial Loans	(72)	(67)	(63)	(59)	(59)	(59)
Total Contribution	(1,219)	(1,419)	(1,489)	(1,508)	(1,539)	(1,534)
Sensitivity: +/- 10% Commercial Property Income	174	183	189	192	196	196
Indicator: Investment Income as a percentage of total Council income	24.2%	18.8%	19.9%	20.3%	20.5%	20.3%
Total Income	7,486	10,117	9,824	9,792	9,880	9,995

b) Risk exposure indicators

76. The Council can minimise its exposure to risk by spreading investments across sectors and by avoiding single large-scale investments. Generally there is a spread of investment across sectors. The Council’s commitment to economic regeneration (not purely financial return) has meant that many of its investments have been in industrial units, which have been very successful.

Income spread by sector:

Industrial sites - 39%
Offices - 43%
Retail - 7%
Other - 7%
Commercial loans - 4%

c) Security and liquidity

% Split by Asset Value (number of investments)

Under £500k - 10% (21)
£500k to £1m - 13% (5)
£1m to £2m - 34% (7)
£2m to £3m - 8% (1)
£3m to £4m - 11% (1)
Over £7m - 24% (1)

77. Commercial are held for longer term asset appreciation as well as yield. Investments or sales decisions will normally be planned as part of the consideration of the 5-year capital strategy to maximise the potential return. Nevertheless, the local and national markets are monitored to ensure any gains are maximised or losses minimised.

78. To help ensure asset values are maintained the assets are given quarterly inspections, together with a condition survey every 3 years. Any works required to maintain the value of the property will then form part of Council’s spending plans.

79. The liquidity of the assets is also dependent on the condition of the property, the strength of the tenants and the remaining lease lengths. The Council keeps these items under review with a view to maximising the potential liquidity and value of the property wherever possible.

80. The liquidity considerations for commercial investments are intrinsically linked to the level of cash and short-term investments, which help manage and mitigate the Council’s liquidity risk. A review of the Council’s commercial assets was undertaken and reported to Governance Scrutiny Group in November 2021 and on to Cabinet December 21 paragraph 71 refers.

81. The Investments are subject to ongoing review with regards to their financial viability or indeed whether they are surplus to requirement. At the November 2021 Governance Group Meeting and December 2021 Cabinet, details on the risks surrounding the Council’s commercial properties were reported, as well as providing a pathway to potential commercial asset disposal, if required.

Member and Officer Training

82. The updated TM Code requires Local Authorities to document a formal and comprehensive knowledge and skills schedule reflecting the need to ensure that both members and officers responsible for treasury management are suitably trained and kept up to date (TMP 10). There will be specific training for members training involved in scrutiny and broader training for members who sit on full Council. Previously these needs have been reported through the Member Development Group, with the Council specifically addressing this important issue by:

Periodically facilitating workshops for members on finance issues most recently provided in January 2023.
Interim reporting and advising members of Treasury issues via Governance Scrutiny Group.

With regards to officers:

Attendance at training events, seminars, and workshops; and
Support from the Council’s treasury management advisors
Identifying officer training needs on treasury management related issues through the Performance Development and Review appraisal process

CIPFA have developed a self-assessment tool which will need to be completed so that a tailored, recorded and monitored training plan can be drawn up to ensure that training provided achieves the desired outcomes. Attendance at training should be recorded and action taken where poor attendance is identified. Regular communication is encouraged.

83. The Council has piloted a ‘training needs’ template which will be modified for new Governance Group Members after the local elections. This should inform training requirements. Furthermore, the Council will continue to have its Annual Treasury Management training session with Councillors provided by its Treasury advisers.

Appendix (i)

Counterparty Registrations under MIFID II

The Council is registered with the following regulated financial services organisations who may arrange investments with other counterparties with whom they have themselves registered:

BGC Brokers LP
Royal London Asset Management
Tradition UK Ltd
King & Shaxson
Aberdeen Asset Management
Aviva
Institutional Cash Distributors Ltd
Federated Investors (UK) LLP
Invesco Asset Management Ltd
CCLA
Goldman Sachs Asset Management
Black Rock
Aegon Asset Management
Ninety One
HSBC Asset Management
Imperial Treasury Services

Appendix (ii)

Fair Value
Description	31.03.2022	30.06.2022	30.09.2022	31.12.2022	Difference
Aegon - previously Kames	4,976,196	4,425,213	4,145,841	4,377,738	-598,458
Ninety One - previously Investec	4,819,826	4,538,071	4,401,865	4,498,733	-321,092
RLAM	991,193	982,352	965,030	978,590	-12,603
CCLA Property	2,416,786	2,543,095	2,435,135	2,058,130	-358,656
CCLA Diversified	2,018,480	1,887,902	1,845,419	1,830,824	-187,656
Total	15,222,481	14,376,633	13,793,290	13,744,015	-1,478,466

Appendix (iii)

Asset Valuations
Asset	Current Book Value £'000	Previous Book Value £'000
The Point Office Accommodation	3.395	3.508
Hollygate Lane, Cotgrave Industrial Units	2.716	2.628
Unit 3 Edwalton Business Park	2.433	2.450
Unit 1 Edwalton Business Park	1.955	1.950
Bardon, Single Industrial Unit	1.800	1.777
Trent Boulevard	1.415	1.412
Cotgrave Phase 2	1.385	-
Colliers Business Park Phase 2	1.323	1.269
Bridgford Hall Apart Hotel and Registry Office	1.121	1.120
Finch Close	0.931	0.916
Boundary Court	0.809	0.789
Colliers Business Park Phase 1	0.720	0.663
Unit 10 Chapel Lane	0,666	0,789
Mobile Home Park	0.480	0.477
Cotgrave Precinct Shops	0.482	0.470
New Offices Cotgrave	0.422	0.401
Total Investment Property - Values are at 31 March 2022 and 2021	22.087	20.496
Notts County Cricket Club Loan	1,570	1.646
Total	23.657	22.142

Glossary of Terms

CCLA Property Fund - this a local authority property investment fund. The property fund is designed to achieve long term capital growth and a rising income from investments in the commercial property sector.

Covered Bonds – these investments are secured on the bank’s assets, which limits the potential losses in the unlikely event of insolvency, and means they are exempt from bail-in.

Financial Derivatives – A financial contract that derives its value from the performance of an underlying asset.

Money Market Funds – these funds are pooled investment vehicles consisting of money market deposits and similar instruments. They have the advantage of providing wide diversification of investment risks.

Pooled Funds – shares in diversified investment vehicles consisting of different investment types including banks, equity shares and property, these funds have the advantage of providing wide diversification of investment risks.

Appendix 5 - Use of Earmarked Reserves

Earmarked Reserves
Description	Projected Opening Balance £'000	Projected Income £'000	Projected Expenditure £'000	Net Change in Year £'000	Ref	Projected Opening Closing £'000
Investment Reserves	-	-	-	-	-	-
Regeneration and Community Projects	2,031	1,267	(75)	1,192	1	3,223
Sinking Fund - Investments	204	325	(75)	250	2	454
New Homes Bonus (NHB)	9,549	1,414	(2,311)	(897)	3	8,652
Corporate Reserves	-	-	-	-	-	-
Organisation Stabilisation	1,528	0	(270)	(270)		1,258
Treasury Capital Depreciation Reserve	800	200	0	200	4	1,000
Collection Fund S31	4,438	0	(353)	(353)	5	1,085
Climate Change Action	810	0	0	0		810
DevCo and Freeport Reserve	365	0	(165)	(165)	6	200
Vehicle Replacement Reserve	885	185	(300)	(115)	7	770
Risk and Insurance	100	0	0	0	-	100
Planning Appeals	350	0	0	0	-	350
Elections	200	0	(150)	(150)	8	50
Operating Reserves	-	-	-	-	-	-
Planning	154	0	(75)	(75)	9	79
Leisure Centre Maintenance	22	15	0	15	10	37
Total	18,436	3,406	(3,774)	(368)	-	18,068

Notes:

Net £1.192m being the movement on this reserve to support Special Expenses capital schemes plus Sinking Funds and
£1m from NDR Surplus to create additional resources to support the Capital Programme.
£325k from Investment Property income to support future capital expenditure. £75k used for enhancement works at The Point and Bridgford Park Kiosk.
£1.414m Receipts; MRP release £1.311m (of which Arena = £1m) £1m to Gypsy & Traveller Site Acquisition.
£200k from NDR Surplus to increase the Treasury Capital Depreciation Reserve.
£0.353m S31 Grants s in relation to additional Business Rates reliefs in 2021/22 and 2022/23, released in 2023/24.
£165k release to meet commitment for Freeport.
£185k to top up the reserve for SEL Acquisitions; £300k release of reserve to support the capital programme.
£150k released from the reserve to support Borough Election expenditure in the year.
£75k released from reserve to support Local Plan expenditure.
£15k Sinking Fund Provision BLC Sports Track Pitches.

Appendix 6 Council Tax Support Fund - All Councillors Budget Update

1. Background

DLUHC issued Council Tax Information Letter 16/2022 on 23 December, providing a link to the guidance and provisional allocations of the 2023/24 £100m Council Tax Support Fund. Announced on 19 December 2022 alongside the provisional local government finance settlement, it aims to deliver additional support to the 3.8 million households already receiving council tax support. Allocations are based on authorities’ share of Local Council Tax Support (LCTS) claimants according to Q2 2022/23 data. For RBC the Allocation is £123k. Final allocations will be confirmed at the final Local Government Finance Settlement. No changes are expected to the
allocation methodology, so it should only change in the event of data corrections or similar. Amounts will be paid using Section 31 powers and made as soon as possible. The guidance says that “The government expects local authorities to use the majority
of their funding allocations to reduce bills for current working age and pension age Local Council Tax Support (LCTS) claimants by up to £25. Councils can use their remaining allocation as they see fit to support vulnerable households with council tax
bills.”

Other aspects of the scheme include:

The scheme should be applied automatically, there is to be no application process for the LCTS-related aspect
Outstanding liability of less than £25 after application of LCTS should be reduced to zero
Where a LCTS receipt’s council tax liability for 2023/24 is zero, no reduction to the council tax bill will be available and those bills should not be credited
The reduction to council tax bills should be applied from the beginning of 2023/24 and reflected in tax bills issued in March 2023
Authorities are expected to communicate how the support will be delivered
The scheme should not affect eligibility for other benefits

The guidance requires authorities to use a proportion of their allocation for “helping economically vulnerable households with council tax bills.” DLUHC expects authorities to “revisit their discretionary approach at intervals during the financial year, in order to ensure expenditure for 2023-24 remains within their allocation.” The guidance does not state specifically how the discretionary element should be administered (either through additional s13A(1)(c) application or whether other mechanisms), such as direct grants to recipients, can be applied. However the guidance states that the funding is expected to “support vulnerable households with council tax bills”, which could imply that all should be administered using s13A(1)(c) powers, although it does say “councils can use their remaining allocation as they see fit” and can “determine their own local approaches to supporting economically vulnerable households with council tax bills” as well as recognising that authorities have discretionary council tax discount/hardship schemes and local welfare schemes.

Billing authorities are required to be able to report the level of support provided to LCTS recipients and “maintain records of the mechanisms and levels of support provided through discretionary schemes” as there will be a quarterly DELTA collection exercise to monitor progress. The guidance confirms that new burdens funding will be available to fund this process once DLUHC have determined expected additional reasonable costs.

2. Cabinet proposed approach and actions

Based on current case load and payments (for over 2775 taxpayers) of up to £25; applying the LCTS scheme will cost around £70k leaving £53k for further discretionary payments. Cabinet informally have had to carefully consider how to maximise the use of the funding (the remaining £53k) to the benefit of vulnerable households and have a scheme which is not overly bureaucratic, is easy to administer and can be delivered prior to council tax bills being produced in March 2023. Cabinet will therefore be proposing the following in the February Budget Report, to utilise the remaining £53k:

(a) a scheme will be in place to ensure that all taxpayers for Council Tax Bands A to D Council Tax (not in receipt of LCTS), at the time of billing for 2023/24, will receive a credit to their Council tax bill equivalent to a 2% Council Tax increase (£3.02p increase on a Band D Council Tax bill). The 2% is what will be proposed in the budget report and was articulated at the Budget workshops. The net effect being a nil increase for the Rushcliffe element of Council Tax for those taxpayers on Bands A to D. The bands A-C increase reduces in proportion with what Council tax taxpayers pay (e.g., Band C 8/9 of a Band D (£2.68 increase) to Band A which is 6/9 of a Band D ( £2.01 increase)).

(b) The intention would be that we only do it for those taxpayers from 1 April 2023. To make changes throughout the year would be too administratively burdensome given the transient nature of individuals eligible for Council Tax Support and those moving property in and out of, or within, the Borough.

(c) Based upon the current figures (and these will change, although only slightly, according to the statistical population of LCTS claimants and taxpayers at the beginning of March) the Council will fund an estimated £30k from the 2022/23 in-year
budget efficiency position, or whatever the final additional spend required is as the proposed scheme will cost more than the Government funding provided at a total cost of circa £83k.

(d) A leaflet will also be despatched with Council Tax bills to explain what the credit is for on Council tax bills, as well as clear communications on the Council’s website and other social media channels.

(e) This scheme will be reflected in reports to both Cabinet and Full Council for final approval.

Financial Impact of Reversal of Council Tax Bill Credit for a 2% Council Tax Award, Council Tax Bands A-D

Financial Impact of Reversal of Council Tax
Band - variable across bands A to D	A	B	C	D
Number of properties	4,092	8,383	10,176	9,270
Award (credit)	£2.01	£2.35	£2.68	£3.02
Annual Cost	£8,238.56	£19,690.74	£27,316.91	£27,995.40
Cumulative Cost	-	£27,929.30	£55,246.20	£83,241.60
Impact on £53k (- = Council funding required)	£45,420.64	£25,729.90	-£1,587.00	-£29,582.40

Appendix 7 - Pay Policy Statement 2023/24

1. Introduction

1.1 This Statement sets out the Council’s policies in relation to the pay of its workforce, particularly its Senior Officers, in line with Section 38 of the Localism Act 2011. The Statement is approved by full Council each year and published on the Council’s website demonstrating an open and transparent approach to pay policy.

1.2 This Statement draws together the Council’s policies relating to the payment of the workforce particularly:

Senior Officers
Its lowest paid employees; and
The relationship between the pay of Senior Officers and the pay of other employees.

1.3 For the purposes of this statement ‘pay’ includes basic salary, pension and all other allowances arising from employment.

2. Objectives of this Statement

2.1 This Statement sets out the Council’s key policy principles in relation to pay evidencing a transparent and open process. It does not supersede the responsibilities and duties placed on the Council in its role as an employer and under employment law. These responsibilities and duties have been considered when formulating the Statement.

2.2 This Statement aims to ensure the Council’s approach to pay attracts and retains a high performing workforce whilst ensuring value for money. It sits alongside the information on pay that the Council already publishes as part of its responsibilities under the Code of Practice for Local Authorities on Data Transparency. Further details of this information can be found on the Role and Remuneration webpage.

3. Senior Officers

3.1 For the purposes of this Statement, Senior Officers are defined as those posts with a salary above £50,000 in line with the Local Government Transparency Code 2015. Using this definition Senior Officers within Rushcliffe currently consists of 16 posts out of an establishment of 302 The posts are as follows:

Chief Executive
Director – Finance and Corporate Services (Section 151 Officer)
Director - Development and Economic Growth
Director - Neighbourhoods
Chief Information Officer and ICT Manager
Service Manager – Chief Executive's Department and Monitoring officer
Service Manager – Finance
Service Manager – Corporate Services
Service Manager – Economic Growth and Property
Service Manager – Planning
Service Manager – Neighbourhoods
Service Manager – Public Protection
Property Services Manager
Strategic Housing Manager
Planning Policy Manager
Project Manager – Safer Streets

4. The Policies

4.1 The Council consults when setting pay for all employees. The Council will meet or reimburse authorised travel, accommodation and subsistence costs for attendance at approved business meetings and training events. The Council does not regard such costs as remuneration but as non-pay operational costs.

5. Pay of the Council’s Lowest Paid Employees

5.1 The total number of Council employees is presently 302. The Council has defined its lowest paid employees by taking the average salary of five permanent staff on the lowest pay grade the Council operates, who are not undergoing an apprenticeship. On this basis the lowest paid full-time equivalent employee of the Council earned £20,259. The Council currently pays £10.42 per hour for its lowest paid employees.

5.2 The Council does not explicitly set the pay of any individual or group of posts by reference to a pay multiple. The Council feels that pay multiples cannot capture the complexity of a dynamic and highly varied workforce in terms of job content, skills and experience required. In simple terms, the Council sets different levels of basic pay to reflect differences in levels of responsibility. Additionally, the highest paid employee of the Council’s salary does not exceed 10 times that of the lowest paid group of employees.

5.3 The Head of Paid Service, or their delegated representative, will give due regard to the published Pay Policy Statement before the appointment of any Officers. Full Council will have the opportunity to discuss any appointment of Statutory Officer roles before an offer of appointment is made, in line with the Council’s Officer Employment procedure rules within Part 4 of the Council’s Constitution. Appointment to Director level is via a member employment panel.

6. Additional Payments Made to Chief Officers – Election Duties.

6.1 The Chief Executive is nominated as the Returning Officer. In accordance with the national agreement, the Chief Executive is entitled to receive and retain the personal fees arising from performing the duties of Returning Officer, Acting Returning Officer, Deputy Returning Officer or Deputy Acting Returning Officer and similar positions which he or she performs subject to the payment of pension contributions thereon, where appropriate.

6.2 The role of Deputy Returning Officer may be applied to any other post and payment may not be made simply because of this designation. Payments to the Returning Officer are governed as follows:

for national elections, fees are prescribed by legislation;
for local elections, fees are determined within a local framework used by other district councils within the county. This framework is applied consistently and is reviewed periodically by lead Electoral Services Officers within Nottinghamshire. This includes proposals on fees for all staff employed in connection with elections. These fees are available for perusal on the Council’s website on the Election Fees page.

6.3 As these fees are related to performance and delivery of specific elections duties, they are distinct from the process for the determination of pay for Senior Officers. The fees have been reviewed for 2023/24 and agreement made that the fees will increase annually in line with the national pay award.

Appendix to the Pay Policy - Policies on other aspects of pay

Process for setting the pay of Senior Officers

The pay of the Chief Executive is based on an agreed pay scale which is agreed by Council prior to appointment. Changes to this are determined by the Leader, Deputy Leader and Leader of the Opposition, who are advised by an agreed external professional and the Strategic Human Resources Manager.

The pay of all Officers including Senior Officers is determined by levels of responsibility, job content and the skills and experience required. Consideration is also given to benchmarking against other similar roles, market forces and the challenges facing the authority at that time and to maximise efficiency. The pay of these posts is determined through the Chief Executive, or his/her nominated representative, in consultation with the Strategic Human Resources Manager and in line with the Council’s pay scales and its agreed scheme of delegation.

The Council moved away from the national conditions of service in 1990 and pay scales are set locally.

As with all employees, the Council would look to appoint on the best possible terms to secure the best candidate for the job. However, there are factors that could influence the rate offered to an individual, including the relevant experience of the candidate, their current rate of pay and market forces.

All Senior Officers are expected to devote the whole of their service to the Authority and are excluded from taking up additional business, ad hoc services, or additional appointments without consent as set out in the Councils code of conduct.

Terms and Conditions - All Employees

All employees are governed by the local terms and conditions as set out in the Employee handbook.

Local Government Pension Scheme

Every employee is automatically enrolled into the Local Government Pension Scheme. Employer and employee contributions are based on pensionable pay, which is salary plus, for example, shift allowances, bonuses, contractual overtime, statutory sick pay, and maternity pay as relevant.

For more comprehensive details of the local government pension scheme see: Local Government Pension Scheme and Nottinghamshire Pension Fund.

Neither the scheme nor the Council adopt different policies with regard to benefits for any category of employee and the same terms apply to all staff. It is not normal Council policy to enhance retirement benefits but there is flexibility contained within the policy for enhancement of benefits and the Council will consider each case on its merits.

Car Allowances

The Council pays mileage rates at HMRC recommended rates.

Pay Increments

Where applicable pay increments for all employees are paid on an annual basis until the maximum of the scale is reached. The Chief Executive, or his or her nominated representative, has the discretion to award and remove increments of officers’ dependant on satisfactory or unsatisfactory performance.

Relocation Allowance

Where it is necessary for a newly appointed employee to relocate to take up appointment, the Council may make a contribution towards relocation expenses. The same policy applies to Senior Officers and other employees. Payment will be made against a range of allowable costs for items necessarily incurred in selling and buying a property and moving into the area. The costs include estate agents’ fees, legal fees, stamp duty, storage and removal costs, carpeting and curtains, short term rental etc. The Council will pay 80% of some costs and 100% of others or make a fixed sum available. If an employee leaves within two years of first employment, they may be required to reimburse a proportion of any relocation expenses.

Professional fees

The Council currently meets the cost of professional fees and subscriptions for employees where it is a requirement of their employment or their contract.

Returning Officer Payments

In accordance with the national agreement the Chief Executive is entitled to receive and retain the personal fees arising from performing the duties of returning officer, acting returning officer, deputy returning officer or deputy acting return officer and similar positions which he or she performs subject to the payment of pension contributions thereon, where appropriate.

Fees for returning officer and other electoral duties are identified and paid separately for local government elections, elections to the UK Parliament and EU Parliament and other electoral processes such as referenda. As these relate to performance and delivery of specific elections duties, they are distinct from the process for the determination of pay for Senior Officers.

Managing Organisational Change Policy

The original Managing Organisation Change Policy was agreed by Council in March 2007 (revised 2010) and is currently under further review. The Council’s policy on the payment of redundancy payments is set out in this policy. The redundancy payment is based on the length of continuous local government service which is used to determine a multiplier which is then applied to actual pay.

The policy provides discretion to enhance the redundancy and pension contribution of the individual and each case would be considered taking into account individual circumstances. Copies of the policy are available on the Council’s website.

Payments on termination

The Council does not provide any further payment to employees leaving the Council’s employment other than in respect of accrued leave which by agreement is untaken at the date of leaving or payments that are agreed or negotiated in line with current employment law practices.

Publication of information relating to remuneration of Senior Officers

The Pay Policy Statement will be published annually on the Council’s website following its approval by full Council each year.

Gender Pay gap reporting

The Council publishes its Gender Pay Gap information annually on the Council’s website and on the Government's website.

Budget and Financial Strategy 2023-24