Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS
Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.
Dec 17, 2015
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- Slide 1
- Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS
- Slide 2
- Local Authority Budgets Introduction Budgetary Process Budget Key Components
- Slide 3
- INTRODUCTION
- Slide 4
- Significant changes in Local Authorities Introduction of Irish Water - Transition of Functions from 1 Jan 2014 - Provision of Service under an SLA agreement with Irish water Enterprise - Roll out of Local Enterprise Offices (LEOs) - Replaces County Enterprise Boards and will operate under the aegis of the Local Authority in collaboration with Enterprise Ireland
- Slide 5
- INTRODUCTION Alignment - Set-up of Local Community Development Committees (LCDCs) - LCDCs take over the role of the County Development Boards Municipalities - Town Councils have been dissolved - Introduction of Municipal Districts Specific Changes in Finance - New Budgetary Process - Introduction of Local Property Tax - Cessation of NPPR
- Slide 6
- INTRODUCTION Operations and activities of Local Authorities can be divided into two primary accounts 1. Revenue Account Covers the day-to day activities of the Council i.e. the provision of Local Services 2. Capital Account Covers the Construction/provision of Infrastructure (Assets) within the County Obligation to keep both accounts in Balance
- Slide 7
- BUDGETARTY PROCESS
- Slide 8
- Budgetary Process Legislative Basis Key Issues Key Tasks Timelines
- Slide 9
- Legislative basis Local Government Act 2001 (as amended by S 58 Local Government Reform Act 2014) S102 Local Authority Budget S103 Local Authority Budget Meeting Local Government (Financial & Audit Procedures) Regulations 2014 Informed by EU requirements that, inter alia, main parameters of National Budget to be published by 15 October each year
- Slide 10
- Respective Roles & Functions Corporate policy group involved at outset and assists executive in setting parameters, identification of issues and agreeing approaches Chief Executive & Head of Finance to lead at executive level the calculations of the draft Income & Expenditure budgets noting parameters, issues, approaches etc.
- Slide 11
- Respective Roles & Functions Authorities may have interim workshops with full Council to inform of approaches, obtain feedback and refine emerging issues Municipal Districts Chief Executive to prepare draft budgetary plan regarding General Municipal Allocation (GMA) for municipal district, for consideration and adoption, with or without amendment
- Slide 12
- Respective Roles & Functions Chief Executive takes account of these draft budgetary plans when completing overall, draft local authority budget for the County Statutory Budget meeting of the members of the County Council considers and adopts with or without amendment final adopted Revenue Budget for the following year
- Slide 13
- Key Issues Local Property Tax/General Purposes Grant Local Property Tax Variation (if applicable) Income from Goods & Services Income from Grants & Subsidies Commercial Rates Miscellaneous Income
- Slide 14
- Key Issues Determination of Fixed & Non- discretionary costs Pensions, Wages & Salaries Loan Charges Contractual & Statutory Commitments Fixed & semi-fixed overheads
- Slide 15
- Key Issues Calculation of Non-Fixed or Discretionary expenditure Will include strategic expenditure areas that while classified as discretionary are discretionary in scale/amount only General Municipal Allocation, determined from available remaining income
- Slide 16
- Key tasks Local Property Tax variation consideration (S20 Finance (Local Property Tax) Act 2012 L.A. may as reserved function resolve to vary LPT by +/- 15% from 2015 L.A. must have regard to current financial position, likely Income & Expenditure overall, impact of any decision on the full range of stakeholders and report on submissions from the public.
- Slide 17
- Key tasks General Municipal Allocation (GMA) Pool of discretionary funding made available to municipal district members for allocation in draft budgetary plan Level calculated by Chief Executive following determination of overall fixed, semi-fixed and non-discretionary costs & available income
- Slide 18
- Key tasks Completion of budgetary report for L.A. to DECLG Required for EU reporting requirements Sets out preliminary estimate of Income & Expenditure for both Revenue & Capital for coming year To be submitted by 30 th September Further details pending
- Slide 19
- Timelines July/Aug (Indicative) CPG meetings & initial workshops to agree parameters, identify issues, and to consider implications of range of options on LPT, Rates & GMA taking into account current financial position July (Indicative) Commencement of public consultation process on LPT variation option
- Slide 20
- Timelines October - Chief Executive to allocate agreed GMA between the Municipal Districts October - M.D.s to consider and adopt individual draft budgetary plans meetings to take place between 1 st and 10 th October 2014 October/November - Chief Executive to formulate final Draft Revenue Budget for County taking account of M.D. draft plans Statutory Budget meeting must take place between 1 st & 24 th November 14 day adjournment allowed
- Slide 21
- BUDGET KEY COMPONENTS
- Slide 22
- Revenue Account Expenditure & Funding LOCAL AUTHORITY BUDGETS 2013 Total Expenditure4,180,552,610 Financed by: Government Grants/Subsidies849,153,613 General Purpose Grant637,226,671 Commercial Rates1,469,121,608 Goods/Services1,133,466,841 Pension Related Deductions/Other91,583,877 4,180,552,610
- Slide 23
- Revenue Account - Funding Budget 2015 will include for the first time Income from Local Property Tax (LPT) This funding source is replacing GPG allocation. Some authorities will continue to receive a GPG allocation where LPT Income in 2015 is less than their GPG allocation for 2014.
- Slide 24
- Revenue Account - Funding LOCAL AUTHORITY BUDGETS 2013 Income:% Government Grants/Subsidies849,153,61320.3% General Purpose Grant637,226,67115.3% Commercial Rates1,469,121,60835.1% Goods/Services1,133,466,84127.1% Pension Related Deductions/Other91,583,8772.2% TOTAL4,180,552,610100.0%
- Slide 25
- Grants/Subsidies Grants received from various Government Departments and Bodies - Dept of Environment, Community & Local Government - National Roads Authority - Department of Transport - Department of Education & Skills Grants are primarily non-discretionary and must be spent in the area for which they are allocated The General Purposes Grant is the only Non- Discretionary grant that Local Authorities receive
- Slide 26
- Grants/Subsidies LOCAL AUTHORITY ANNUAL FINANCIAL STATEMENTS 2011 - GRANTS & SUBSIDIES Department of the Environment, Community and Local Government Road Grants19,709,913 Housing Grants & Subsidies253,982,455 Library Services238,185 Local Improvement Schemes152,000 Water Services Group Schemes25,790,868 Environmental Protection/Conservation Grants26,527,363 Miscellaneous34,731,012 361,131,796 Other Departments and Bodies Road Grants (NRA & Dept of Transport)455,852,172 Higher Education Grants173,782,297 VEC Pensions and Gratuities146,400,159 Community Employment Schemes7,805,857 Civil Defense2,550,300 Miscellaneous47,461,228 833,852,013 Total1,194,983,809
- Slide 27
- General Purpose Grant Also known as Local Government Fund Allocation Grant is Discretionary and primarily used to fund the day-to-day activities of the Local Authority Each Local Authority receives an annual allocation which is paid quarterly Grant is paid by the DOECLG out of the Local Government Fund
- Slide 28
- General Purpose Grant LOCAL GOVERNMENT FUND 2014 '000s Income: Local Property Tax550,000 Gross Motor Tax Receipts1,160,000 Interest150 TOTAL INCOME1,710,150 Expenditure: General Purpose Grants275,000 Dept of Transport Payments363,943 Payment to Exchequer600,000 Irish Water Subvention490,000 Other Schemes50,000 TOTAL EXPENDITURE1,778,943 Excess of Expenditure over Income-68,793 Balance on Fund c/f from 201368,889 Projected Balance Dec 201496
- Slide 29
- Goods/Services Local Authorities charges for the provision of certain services Rates charged can be set by the Local Authority Some Charges are set by Minister/statute (e.g. Planning Fees, dog licenses) Examples of the services for which Local Authorities charge include: - Housing Rents - Landfill Charges - Housing Loans - Planning Fees - Parking Fines/charges - Fire Charges - Library Fees - Swimming Pool Fees
- Slide 30
- Goods/Services LOCAL AUTHORITY ANNUAL FINANCIAL STATEMENTS 2011 GOODS & SERVICES Rents from Houses 344,469,301 Water and Waste Water Charges 248,797,530 Parking Fines/Charges 92,282,853 NPPR 77,017,861 Pension Contributions 61,742,088 Housing Loans Interest & Charges 55,097,199 Landfill Charges 49,966,981 Agency Services 29,648,572 Recreation & Amenity Activities 19,635,910 Property Rental & Leasing of Land 15,348,319 Planning Fees 14,157,351 Fire Charges 12,107,688 Library Fees/Fines 2,621,023 Misc. 210,228,499 TOTAL GOODS/SERVICES1,233,121,175
- Slide 31
- Expenditure Divided into eight Divisions (A-H): A. Housing & Building B. Road Transportation & Safety C. Water Services D. Development Management E. Environmental Services F. Recreation & Amenity G. Agriculture, Education, Health & Welfare H. Miscellaneous Services
- Slide 32
- Expenditure LOCAL AUTHORITY BUDGETS 2013 Expenditure DivisionDescription% AHousing and Building763,066,18818.3% BRoad Transportation and Safety829,667,11219.8% CWater Services711,315,27717.0% DDevelopment Management270,449,1816.5% EEnvironmental Services643,846,72815.4% FRecreation & Amenity368,519,8398.8% GAgriculture, Education, Health & welfare160,681,2923.8% HMiscellaneous Services433,006,99210.4% TOTAL EXPENDITURE4,180,552,609100.0%
- Slide 33
- Thank You Questions ? Peter Duggan Head of Finance Mayo County Council
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