PLANNING AND ENVIRONMENT
FUNDING FOR ISLAND PLAN REVIEW
Purpose of the Report
The purpose of this report is to seek the Planning and Environment Minister’s approval to the following:
· To request that the Minister for the Treasury and Resources Department transfers a budget of £265,000 from the Central Planning Vote to contribute towards the costs of preparing an Island Plan.
· To request that the Minister for the Treasury and Resources Department approves the closure of existing capital votes with the unspent balances being transferred to fund the shortfall in the Island Plan Review and the remainder being transferred from the Departments Minor Capital Allocation.
Background
Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfer of capital funds and states that requests for transfers between existing capital heads of expenditure require the approval of the Minister for Treasury and Resources. In addition confirmation of the agreement of those ministers party to the transfer must be supplied to the Minister for Treasury and Resources and the Treasurer of the States, including the full financial and manpower details of the transfer and any further financial and manpower implications to the transfer.
Discussion
In the States Strategic Plan 2006–2011 the council of Ministers accorded high priority to a review of the Island Plan as a key tool in supporting the delivery of the Strategic Plan. The Minister for Economic Development agreed to transfer £150,000 of his Departments forecast 2006 underspend to a Planning and Environment Capital Vote to assist with meeting the cost of this review. This transfer occurred in January 2007.
On the 25th January 2007 the Council of Ministers considered a report by Mr C Newton, Island Plan Review Project Executive, regarding the proposed scope and process and resources required to deliver the review of the Island Plan. Although a budget of £570,000 had been identified to deliver the project, the Minister did not endorse the costings within the report and maintained his commitment that the review would be completed within a budget of £500,000. Attached at Appendix A is the proposed budget for the Review of the Island Plan based on a total budget of £500,000. The responsible manager has confirmed that this represents value for money and is the minimum spend required to deliver the specification.
Although, funding requests have been sought in various Strategic Planning processes the Council of Ministers has requested that the Department fund the review from “one - off funding from carry forwards or other sources.”
Budget Virements – Capital to Capital
· Transfer from the Treasury and Resources Department - Island Plan Review (£265,000)
In order for the Planning and Environment Department to undertake a review of the Island Plan it will require additional resources in order to:
§ Undertake the work required of the review, including the support studies;
§ Determine and undertake the requisite public engagement and scrutiny of the review’s policies and proposals;
§ Progress the Plan to adoption and publication;
§ Manage the procurement of consultants and project management.
The Treasury and Resources Department has agreed to a transfer of £265,000 from the Central Planning Vote towards the funding of the Island Plan Review providing the department could identify funds to contribute towards the shortfall.
· Closure of existing capital votes
Capital Projects for closure | Total Budget | Total Spend | Transfer | Balance |
C0928 – Land Reclamation Feasibility Study | £154,000 | £129,641 | £24,359 | - |
C0962 – Planning & Building Applications | £306,000 | £291,779 | £14,221 | - |
C0967 – PIIMS | £86,070 | £68,170 | £17,900 | - |
Transfer of remaining funds required from Minor Capital Allocation (vote to remain open) | | | | |
C0969 – P&E Minor Capital | £255,000 | £67,044 | £28,520 | £159,436 |
Total | £801,070 | £556,634 | £85,000 | £159,436 |
Recommendations
The Minister is recommended to approve the following:
· to request that the Minister for the Treasury and Resources Department transfers a budget of £265,000 from the Central Planning Vote to contribute towards the costs of preparing an Island Plan.
· The Minister for the Treasury and Resources Department approves to the transfer of £28,520 from the C0969 - P&E minor Capital vote to C0973 – Island Plan Review, along with the amounts listed in the above table transferring unspent balances of those projects which are to be closed (total £56,480).
Reason (s) for Decision
The above transfers will enable the Minister for Planning and Environment to allocate funds to the Island Plan review ensuring there is sufficient budget to carry put the required activity in producing the plan.
Action Required
The Finance Director:
· to notify the Minister for Treasury and Resources of the Minister’s approval of the transfers for the Island Plan.
· to request the Minister for the Treasury and Resources Department to approve all transfers of the decisions referred to in this report.
Written by: | H Whiteman, Senior Management Accountant |
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Approved by: | E Littlechild, Finance Director |
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Attachment: | Appendix A |
APPENDIX A
PLANNING & ENVIRONMENT DEPARTMENT
ISLAND PLAN REVIEW
REPORT AT 29th September 2008
Island Plan Item | Current Plan Dec 2009 |
Staff | Project Manager[1] | £70,000 |
Consultant – Strategic Options | £30,000 |
Consultant – Policy Document | £20,000 |
EIP Inspector | £100,000 |
Research Studies etc. | Retail study | £50,000 |
Open space Study | £16,500 |
Agriculture Survey | £3,500 |
Housing Needs survey | £7,500 |
Employment Land Study | £15,000 |
Consultation system | £24,000 |
Solid Waste Study | £15,000 |
Transport Study/Advice | £15,000 |
Habitat study | £10,000 |
Sundries | Printing | £30,000 |
Valuation/Viability Advice | £15,000 |
Advertising | £20,000 |
Miscellaneous | £4,500 |
£ | Total | £446,000 |
Budget | £500,000 |
Variance/Contingency | £54,000 |
[1] The cost of the project manager in 2008 is funded from the project budget and in 2009 will be met from the existing P&E Budget. The cost of the project manager in 2008 is funded from the project budget and in 2009 will be met from the existing P&E Budget.