local authority budgets
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LOCAL AUTHORITY BUDGETS. Peter Duggan, FCA Head of Finance Mayo County Council. Local Authority Budgets. Introduction Budgetary Process Budget – Key Components. INTRODUCTION. INTRODUCTION. Significant changes in Local Authorities Introduction of Irish Water - PowerPoint PPT PresentationTRANSCRIPT
Peter Duggan, FCAHead of Finance
Mayo County Council
LOCAL AUTHORITY BUDGETS
Local Authority Budgets
IntroductionIntroduction
Budgetary ProcessBudgetary Process
Budget – Key ComponentsBudget – Key Components
INTRODUCTION
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
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
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”
BUDGETARTY PROCESS
Budgetary Process
Legislative BasisLegislative Basis
Key IssuesKey Issues
Key TasksKey Tasks
TimelinesTimelines
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
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.
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
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
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
Key Issues
Determination of Fixed & Non-discretionary costs
Pensions, Wages & SalariesLoan ChargesContractual & Statutory
CommitmentsFixed & semi-fixed overheads
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
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.
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
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
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
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
BUDGET KEY COMPONENTS
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
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.
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%
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
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
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
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
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
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
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
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%
Thank You
Questions ?
Peter Duggan
Head of Finance
Mayo County Council