6 - Paisley and Renfrew Common Good Fund Budgets 2023-24
Renfrewshire Council · 9 February 2023
Back to Finance, Resources and Customer Services Policy Board — 9 February 2023 and its agenda
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__________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 9 February 2023 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Paisley and Renfrew Common Good Fund Budgets 2023/24 ___________________________________________________________________ 1. Summary 1.1 The level of funding available to disburse annually from the Paisley and Renfrew Common Good Funds is dependent upon the income received by the Funds during the year. For each Fund, income is derived from its respective investment portfolio and is received in the form of property rental payments, interest payments or dividends, with the latter two being particularly sensitive to financial market fluctuations. 1.2 The level of income available for 2023/24 has been estimated along with existing annual commitments and assessments made of the affordability of existing funds delegated to Local Partnerships on an annual basis. ___________________________________________________________________ 2. Recommendations 2.1 The Board is asked to: i) Approve the 2023/24 budget allocations to Local Partnerships as follows: Common Good Fund Local Partnership Budget 2023/24 Renfrew Renfrew £75,300 Paisley Paisley East £12,400 Paisley Paisley North, West and Central £10,900 Paisley Foxbar / Brediland and Glenburn £10,200 ii) Approve the continuing funding of project awards, as outlined in Appendix 1.
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___________________________________________________________________ 3. Background 3.1 The Common Good Funds of both Paisley and Renfrew are used each financial year to fund ongoing projects and commitments made by the Finance, Resources and Customer Services Policy Board. In addition, an annual allocation is made to relevant Local Partnerships, which have delegated authority to disburse grants to local organisations from which they receive bids for funding and/or to use the funding themselves to support appropriate projects. The proposed allocations are based on the current Local Partnership arrangements. 3.2 Income received by the Common Good Funds is derived from rental income from Common Good property and, principally, from dividend income and interest payments. Subject to maintaining tenancies, rental income remains fairly stable and predictable on a yearly basis. However, in terms of investment income from dividends and interest, it is necessary to make an informed estimate each year of the income that will be available to the Common Good Funds in the following year. 3.3 Rental income receivable by both Common Good Funds is expected to remain unchanged from the current year actual. 3.4 The investment income for 2023/24 is based on the estimated figures provided for both the Paisley and Renfrew Common Good funds as at 31 December 2022. The markets and anticipated sustainability of investments will continue to be monitored by both officers and the Investment Review Board. 3.5 Taking these projections into account, a forecast Income and Expenditure Statement for each Common Good Fund has been prepared on a cash basis (i.e. excluding non-cash movements, such as depreciation) and is appended for Members’ consideration. These forecasts presume that in-year expenditure will not exceed income. There is a requirement to ensure that the ongoing commitments of each Common Good Fund remain affordable and sustainable. 3.6 In August 2022 all three Common Good Funds became deregistered as charities by the Scottish Charity Regulator (OSCR) meaning that there will no longer be separate annual accounts from 2022/23 onwards. This means there are no longer external audit costs for the Common Good Funds. 3.7 In light of the current economic climate, awards have generally been uplifted by 5% inflation for 2023/24 with the exception of the award to the Cherrie Centre, which has been held at the same level as 2022/23 pending further discussion with the Centre with regards the level of financial support being provided and the Centre’s overall financial position.
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3.8 As reported to the Leadership Board in November 2022, the Royal National Mòd will take place in Paisley between 13 and 21 October 2023. This is the second time that Paisley will host this prestigious and culturally significant festival, the last visit being in 2013. The eight day event will reinforce the profile of Paisley as a town capable of hosting national cultural events and festivals. The local organising group are responsible for many of the elements of the Mòd including venue decoration, town centre signage, marketing, communications and transportation. In addition to this, they are developing a vibrant fringe programme which will complement the traditional elements of the festival. The costs involved are significant and – as in 2013 – a contribution has been sought from the Paisley Common Good Fund. An award of £15,000 is proposed to support the organising group. 3.9 3.10 A suitable contractor has been selected to complete the Oakshaw Church Steeple repair and it is anticipated that work will start on this in Spring 2023 with a one-off contribution of £50,000 from the Paisley Common Good Fund matching an equivalent contribution from the Place Based Investment Fund. The above one-off costs result in a marginal forecast deficit position on the Paisley Common Good Fund which will be funded from cash-backed reserve balances accumulated from prior year surpluses. __________________________________________________________________ Implications of the Report 1. Financial – The proposed budgeted allocation is based on a general principle of only spending the available income in each year. 2. HR & Organisational Development – None arising directly from this report. 3. Community Planning: Our Renfrewshire is well – Many of the projects funded by Local Partnerships contribute to the promotion of more active pursuits for all age groups. Our Renfrewshire is thriving - The funding allocated from the Common Good Funds supports local community groups and projects. Our Renfrewshire is safe – The community projects funded by Local Partnerships, as well as recurring funding for events and community services supports communities to be safer and stronger. 4. Legal – None arising directly from this report. 5. Property/Assets – None arising directly from this report. 6. Information Technology – None arising directly from this report. 7. Equality & Human Rights – None arising directly from this report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored and the results of the assessment will be published on the Council’s website.
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8. Health & Safety – None arising directly from this report. 9. Procurement – None arising directly from this report. 10. Risk – There is a risk investment income will not be realised as forecast, however this risk will be monitored through regular discussion with the Council’s investment manager and adviser. 11. Privacy Impact – None arising directly from this report. 12. COSLA Policy Position – None arising directly from this report. 13. Climate Risk – None arising directly from this report. ___________________________________________________________________ Author: Stuart Nibloe, Principal Accountant (Treasury) stuart.nibloe@renfrewshire.gov.uk 0141 487 0906
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Appendix 1 Paisley Common Good - Income & Expenditure Forecast Approved Probable Outturn Proposed 2022/23 2022/23 2023/24 £ £ £ Estimated Net Annual Income available: Income receivable from Loans Fund (2,000) (1,000) (1,000) Investment Income (155,000) (155,000) (155,000) Property Rental Income (48,000) (48,800) (49,000) (205,000) (204,800) (205,000) Less costs: Investment Management Fees 24,000 22,010 24,000 Council Administration Fee 15,000 14,000 14,000 External Audit Fees 2,300 0 0 Property Costs 5,500 0 1,000 Total Available for Disbursement (158,200) (168,790) (166,000) Proposed Recurring Projects: Christmas lights 52,340 52,340 55,000 Repair to War Memorial 430 430 500 Fireworks Display 5,000 0 0 Barshaw Gala 5,000 5,000 5,300 CCTV Operations 18,600 18,600 19,500 Total Cost of Recurring Projects 81,370 76,370 80,300 Proposed Non-recurring Projects: Oakshaw Church Steeple Repair 0 0 50,000 Paisley Mòd 2023 Organising Committee 0 0 15,000 0 0 65,000 Proposed Local Partnership Allocations: Paisley East, Ralston, Hawkhead/Lochfield, Hunterhill and Charleston 11,820 11,820 12,400 Paisley North, Gallowhill, Ferguslie, Paisley West and Central 10,380 10,380 10,900 Foxbar / Brediland and Glenburn 9,740 9,740 10,200 31,940 31,940 33,500 (Surplus)/Deficit on cash basis (44,890) (60,480) 12,800
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Appendix 1 Renfrew Common Good - Income & Expenditure Forecast Approved Probable Outturn Proposed 2022/23 2022/23 2023/24 £ £ £ Estimated Net Annual Income available: Income receivable from Loans Fund (18,000) (5,000) (5,000) Investment Income (540,000) (540,000) (560,000) Property Rental Income (260,000) (273,630) (270,000) (818,000) (818,630) (835,000) Less costs: Investment Management Fees 90,000 84,130 85,000 Council Administration Fee 45,000 45,000 45,000 External Audit Fees 2,300 0 0 Renfrew Town Hall - lifecycle maintenance 8,000 8,000 8,000 Property Costs 15,000 12,000 15,000 Total Available for Disbursement (657,700) (669,500) (682,000) Proposed Recurring Projects: Christmas lights: operating costs 15,900 15,900 16,700 Christmas lights: switch-on event 10,000 10,000 10,000 Renfrew Pipe Band Competition 10,000 10,000 10,000 Repair to War Memorial 285 285 300 Repair to Public Clocks 205 205 220 Maintenance Benches - Robertson Park 640 640 700 Cherrie Centre Support 79,330 79,330 79,300 Renfrew Gala Week 5,000 5,000 5,300 CCTV Operations 11,000 11,000 11,600 Total Cost of Recurring Projects 132,360 132,360 134,120 Proposed Local Partnership Allocations: Renfrew 71,740 71,740 75,300 (Surplus)/Deficit on cash basis (453,600) (465,400) (472,580)