Budget transfer to Property Holdings

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A decision made (28.07.06) to transfer a revenue budget and capital vote to Jersey Property Holdings with effect from 1st August 2006.

Subject:	Transport and Technical Services Department – Budget Transfer to Jersey Property Holdings
Decision Reference:	MD-T-2006-0062	Exempt clause(s):
Type of Report (oral or written):	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		I:Minister:2006:Ministerial Decisions:MD 00 TTS Budget Transfer to Property Holdings
Written Report Title:	Budget Transfers	Written report – Author:		Ellen Littlechild, Finance Director
Decision(s): To transfer a revenue budget amounting to £41,100 and Capital Vote C2668 (Public Markets Maintenance) to Jersey Property Holdings, with effect from 1st August 2006.
Reason(s) for decision: The budget transfers will enable Jersey Property Holdings to provide an integrated ‘landlord’ property maintenance service, including the planning, organisation and control of the maintenance of the buildings, ensuring value for money, compliance with best practice, building regulations and statutory requirements.
Action required: To notify the Minister for Treasury and Resources of this decision.
Signature: (Minister/ Assistant Minister)			Date of Decision:

Budget transfer to Property Holdings

TRANSPORT AND TECHNICAL SERVICES

BUDGET TRANSFER

Purpose of the Report

The purpose of this report is to seek the Minister for Transport and Technical Services approval to transfer revenue and capital budgets from the Transport and Technical Services to the Treasury and Resources Department.

Background

In June 2005 the States agreed the creation of a new States department – Jersey Property Holdings to be responsible for the administration of all States Property. By September 2005, the Director of Property Holdings had been appointed and by October 2005 a Project Team was in place to begin the process of developing the organisation.

Considerable work has been done in considering the functions and associated budgets that need to transfer from Transport and Technical Services Department to the Treasury and Resources Department. The budget transfers should enable Jersey Property Holdings to provide an integrated ‘landlord’ property maintenance service, including the planning, organisation and control of the maintenance of the buildings, ensuring value for money, compliance with best practiced, building regulations and statutory requirements.

Discussion

It is intended that responsibility for maintenance of public buildings and markets is transferred from Transport and Technical Services to Jersey Property Holdings from the 1st August 2006. Shown below is a summary of the proposed revenue and capital budget to be transferred:

Revenue (Breakdown attached as Appendix A)	FTE	2006 Budget £	2007 Budget £
Building Maintenance (a)	3	(50,900)	(52,200)
Markets (b)	1	76,800	78,700
Administration	1	15,200	15,600
Total Revenue Budget to be transferred (c)	5	41,100	42,100

Capital Vote (C2668) Public Markets Maintenance FTE (Breakdown attached as Appendix B)
Capital Budget Voted	Zero	1,492,000
Less spend to date		584,714
Unspent balance		907,286

Notes

a. Included in the building maintenance vote is a budget amounting to £422,600 which relates to the provision of office cleaning. The Transport and Technical Services Department will recharge Jersey Property Holdings for the cost of carrying out this service.

The building maintenance budgets that will remain with the Department are those linked with cleaning the Public Toilets and building maintenance staff (1 Carpenter and 2 Painters). The Transport and Technical Services Department will continue to carry out these functions on behalf of Jersey Property Holdings and will not recharge for the cost of this service.

b. Included in the markets vote is a budget amount of £191,800 which relates to the full year cost of caretaking, office cleaning and weighing services at the Market. The Transport and Technical Services Department will recharge Jersey Property Holdings for the cost of carrying out this service.

c. Service Level Agreements will be developed with a start date of 1st January 2007 for the provision of all services highlighted above.

Finance Direction No.3.6 ‘Variations to Heads of Expenditure’ sets out the procedures for the transfer of revenue funds and states that requests for transfers of revenue funds from one Department to another require the prior approval of the Minister for Treasury and Resources and the relevant ministers party to the transfer.

Recommendation

It is recommended that the Minister agrees to transfer a revenue budget amounting to £41,100 and Capital Vote C2668 (Public Markets Maintenance) to Jersey Property Holdings, with effect from the 1st August 2006.

Reason (s) for Decision

The budget transfers should enable Jersey Property Holdings to provide an integrated ‘landlord’ property maintenance service, including the planning, organisation and control of the maintenance of the buildings, ensuring value for money, compliance with best practice, building regulations and statutory requirements.

Action Required

To notify the Ministers for Treasury and Resources of this decision.

Written by:

Ellen Littlechild, Finance Director

Approved by:

John Richardson, Chief Officer

Attachment:

Appendix A – Breakdown of Revenue

Appendix B – Breakdown of Capital

11th July 2006