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Page 1: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Peter Duggan, FCAHead of Finance

Mayo County Council

LOCAL AUTHORITY BUDGETS

Page 2: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Local Authority Budgets

IntroductionIntroduction

Budgetary ProcessBudgetary Process

Budget – Key ComponentsBudget – Key Components

Page 3: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

INTRODUCTION

Page 4: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

INTRODUCTION

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 (LEO’s)

- Replaces County Enterprise Boards and will operate under the aegis of the Local Authority in collaboration with Enterprise Ireland

Page 5: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

INTRODUCTION

Alignment- Set-up of Local Community Development Committees (LCDC’s)

- LCDC’s 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

Page 6: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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 AccountCovers the Construction/provision of Infrastructure (Assets) within the County

Obligation to keep both accounts “in Balance”

Page 7: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

BUDGETARTY PROCESS

Page 8: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Budgetary Process

Legislative BasisLegislative Basis

Key IssuesKey Issues

Key TasksKey Tasks

TimelinesTimelines

Page 9: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 10: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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.

Page 11: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 12: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 13: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 14: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Key Issues

Determination of Fixed & Non-discretionary costs

Pensions, Wages & SalariesLoan ChargesContractual & Statutory

CommitmentsFixed & semi-fixed overheads

Page 15: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 16: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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.

Page 17: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 18: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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 30th September Further details pending

Page 19: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 20: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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 1st and 10th 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 1st & 24th November

14 day adjournment allowed

Page 21: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

BUDGET KEY COMPONENTS

Page 22: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Revenue Account – Expenditure & Funding

LOCAL AUTHORITY BUDGETS 2013

Total Expenditure 4,180,552,610

Financed by:

Government Grants/Subsidies 849,153,613

General Purpose Grant 637,226,671

Commercial Rates 1,469,121,608

Goods/Services 1,133,466,841

Pension Related Deductions/Other 91,583,877

4,180,552,610

Page 23: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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.

Page 24: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Revenue Account - Funding

LOCAL AUTHORITY BUDGETS 2013

Income: € %

Government Grants/Subsidies 849,153,613 20.3%

General Purpose Grant 637,226,671 15.3%

Commercial Rates 1,469,121,608 35.1%

Goods/Services 1,133,466,841 27.1%

Pension Related Deductions/Other 91,583,877 2.2%

TOTAL 4,180,552,610 100.0%

Page 25: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 26: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Grants/SubsidiesLOCAL AUTHORITY ANNUAL FINANCIAL STATEMENTS 2011 - GRANTS & SUBSIDIES

Department of the Environment, Community and Local Government €

Road Grants 19,709,913

Housing Grants & Subsidies 253,982,455

Library Services 238,185

Local Improvement Schemes 152,000

Water Services Group Schemes 25,790,868

Environmental Protection/Conservation Grants 26,527,363

Miscellaneous 34,731,012

361,131,796

Other Departments and Bodies

Road Grants (NRA & Dept of Transport) 455,852,172

Higher Education Grants 173,782,297

VEC Pensions and Gratuities 146,400,159

Community Employment Schemes 7,805,857

Civil Defense 2,550,300

Miscellaneous 47,461,228

833,852,013

Total 1,194,983,809

Page 27: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 28: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

General Purpose Grant

LOCAL GOVERNMENT FUND 2014

€'000s

Income:

Local Property Tax 550,000

Gross Motor Tax Receipts 1,160,000

Interest 150

TOTAL INCOME 1,710,150

Expenditure:

General Purpose Grants 275,000

Dept of Transport Payments 363,943

Payment to Exchequer 600,000

Irish Water Subvention 490,000

Other Schemes 50,000

TOTAL EXPENDITURE 1,778,943

Excess of Expenditure over Income -68,793

Balance on Fund c/f from 2013 68,889

Projected Balance Dec 2014 96

Page 29: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 30: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Goods/ServicesLOCAL 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/SERVICES 1,233,121,175

Page 31: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

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

Page 32: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Expenditure

LOCAL AUTHORITY BUDGETS 2013

Expenditure

Division Description € %

A Housing and Building 763,066,188 18.3%

B Road Transportation and Safety 829,667,112 19.8%

C Water Services 711,315,277 17.0%

D Development Management 270,449,181 6.5%

E Environmental Services 643,846,728 15.4%

F Recreation & Amenity 368,519,839 8.8%

G Agriculture, Education, Health & welfare 160,681,292 3.8%

H Miscellaneous Services 433,006,992 10.4%

TOTAL EXPENDITURE 4,180,552,609 100.0%

Page 33: Peter Duggan, FCA Head of Finance Mayo County Council LOCAL AUTHORITY BUDGETS.

Thank You

Questions ?

Peter Duggan

Head of Finance

Mayo County Council


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