Transport and Technical Services
Department
Ministerial Decision Report
TRANSFER BETWEEN REVENUE AND CAPITAL HEADS OF EXPENDITURE FOR 2011 JERSEY HARBOURS REPAYMENT
- Purpose of Report
The purpose of this report is to seek the Minister for Transport and Technical Services’ approval to an internal budget transfer amounting to £450,000 between revenue and capital head of expenditure.
- Background
The previous Minister approved a business case supporting the transfer of responsibilities for engineering and municipal services from Jersey Harbours to Transport and Technical Services.
In order to facilitate the service transfer it was agreed that building works totalling £1.8 million would be required at La Collette and Bellozanne. The funding was to be taken from existing unspent TTS Capital Votes and paid back from future rental income generated from the letting of the vacated Harbours building. The agreed funding solution was as follows:
- Create a new capital head of expenditure in TTS called ‘Harbours Transfer.’
- Transfer a total of £1.8 million into this new head of expenditure from the following capital votes:
La Collette Phase II | £ 600,000 |
Sludge Phase 1 Thickener | £1,200,000 |
Total | £1,800,000 |
Require Jersey Harbours to make a capital repayment to TTS on the 1st January each year for the following amounts.
2008 - £450,000
2009 - £450,000
2010 - £450,000
2011 - £450,000
Transfer the capital repayments to the La Collette Phase II and Sludge Phase 1 Thickener over the four year period 2008 – 2011.
- Discussion
As at 31 December 2010 a total of £1,350,000 had been repaid by Jersey Harbours. The Department has requested the 2011 repayment from Jersey Harbours and now requires the Minister to approve a budget virement between revenue and capital amounting to £450,000.
Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfers between revenue and capital heads of expenditure and states that budget transfers in excess of £100,000 require the approval of the Minister for Treasury and Resources and the relevant Minister party to the transfer.
- Recommendation
To approve a budget virement totalling £450,000 from TTS revenue to TTS capital (Sludge Phase 1 Thickener £450,000) to facilitate the 2010 repayment by Jersey Harbours for the temporary loan which was made to accommodate the Jersey Harbours transfer.
- Reason for Decision
To payback the monies temporarily loaned to Jersey Harbours for the building works required at La Collette and Bellozanne.
- Resource Implications
Budget virement between revenue and capital amounting to £450,000. No further resource implications as a result of this decision.
7. Action Required
The Finance Director to request the Minister for the Treasury and Resources Department to approve the virement between revenue and capital as referred to in this report.