Item 14 - Review of the Dumbarton Common Good Fund
West Dunbartonshire Council · 5 February 2025
Back to Corporate Services Committee — 5 February 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Corporate Services Committee: 5 February 2025 Subject: Review of the Dumbarton Common Good Fund 1. PURPOSE 1.1 To provide members with the outcome of a review of the Dumbarton Common Good Fund (DCG) and agree future financial support fund applicants. 2. RECOMMENDATIONS 2.1 Members are asked to: a) Note the financial position in relation to the Dumbarton Common Good and the need to consider current funding awards to ensure it is sustainable in the longer term and provides scope to fund new and emerging applications. b) Approve the allocation of a £10,000 per annum maintenance budget to ensure Dumbarton Common Good sites remain fit for purpose. c) Approve a new two stage assessment process which will be accompanied by supporting guidance and a new application form. d) Approve all current awards for 2025/26 on a single year basis: adjusting for those who have asked for a lower amount as detailed in appendix 2 not adjusting for those who have applied for an increase as detailed in appendix 2 approving the two one off applications detailed at para 4.11. e) Approve that all beneficiaries are contacted to advise them of the outcome of this review on their 2025/26 awards and advise they will be required to reapply to the Dumbarton Common Good for the financial year 2026/27 with those applications assessed against the revised assessment process. f) Approve that, from 2026/27 onwards, the Dumbarton Common Good operates on a three-year cycle of funding. 3. BACKGROUND 3.1 The DCG was originally established to provide money to encourage and support one- off community activities within Dumbarton which are carried out by constituted non- profit making community groups. Over a number of years the condition that the supported activities should be one off in nature has not been strictly applied with the majority of awards being recurring in nature. ITEM 14
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3.2 The DCG’s main income stream is from rent obtained for properties owned by the DCG with a small amount of additional income obtained through interest earned on the fund’s retained balance. 3.3 Historically the income generated by the DCG was sufficient to cover the amount of funds being awarded however the volumes of grants has been increasing since 2022/23 whilst income has remained fairly static due to contractual lease terms in place. As a consequence, pending future decisions over existing grants awarded for a limited period and assuming no changes to recurring grants awarded, projections into the future show a declining fund balance. 3.4 Rather than wait until nearer the point the fund expires, it was deemed to be sensible to perform a review of the DCG. The review focused on: Estimated income, expenditure and fund balances Assessment Process / Criteria for Awards Current award levels and benefiting organisations/groups Award review periods 4. MAIN ISSUES Estimated Income 4.1 Currently rental income is achieved for the DCG from properties which are included in the DCG Asset Register. These include Broadmeadow Industrial Estate, Municipal Buildings and 16 Church Street. A small amount of income is also generated from the interest received on the fund balance. 4.2 In 2023/24, £0.344m of income was generated which breaks down as £0.318m of rental income plus £0.024m of interest. 4.3 Rental income has been reviewed to estimate future rental income based on current leases and the capacity to increase these through rent reviews. Future income from interest on the retained balance will vary with interest rates and the balance retained. For the purposes of this review it is assumed it will remain relatively stable with a prudent assumption of £24,000 per annum. The projected rental income in future years is summarised in Exhibit 1. 4.4 Exhibit 1 – Estimated Future DCG Income Financial Year Rental Income (£000) Interest on Retained Balanced (£000) Total Estimated Income (£000) 2024/25 318 24 342 2025/26 352 24 376 2026/27 356 24 380 2027/28 363 24 387 2028/29 365 24 389
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Estimated Expenditure 4.5 Exhibit 2 shows the projected expenditure after: 1. Assuming no changes to recurring grant awards. 2. Adjusting for one off costs of £31,494 in 2024/25 for DCG vacant property costs 3. Assuming no further funds are made available for Town Centre Management costs administered by the Council’s Regeneration Team when the current earmarked sum expires at the end of 2025/26. 4. Assuming four grant awards made for a three-year fixed period ending 2025/26 are not extended – these total £81,403 per annum and are: a. Bellsmyre Development Trust - £36,000 for running costs b. West Dunbartonshire Foodshare - £17,403 for rental costs and running costs c. Food for Thought - £15,000 for rental costs d. Corra Foundation - £13,000 for staff and running costs. 4.6 Furthermore a rolling maintenance programme is required for future maintenance of DCG sites to ensure they remain fit for purpose and promote opportunity for investment and growth in the area. It is recommended a budget of £10k per annum is approved for this purpose. 4.7 Exhibit 2 – Estimated Future DCG Expenditure (assuming no changes to grants) Financial Year Grant Award Expenditure (£000) Maintenance Budget (£000) Total Expenditure (£000) 2024/25 (outturn) 500 0 500 2025/26 468 10 478 2026/27 319 10 329 2027/28 319 10 329 2028/29 319 10 329 Appendix 1 provides more detail on the grant award expenditure set out in Exhibit 2. 4.8 Exhibit 3 shows that based on the assumptions set out above there is sufficient projected future income to support the ongoing recurring grant award and provide future surpluses (from 2026/27 onwards) which provides scope to fund future applications. 4.9 However, if the £81,403 of awards expiring in 2025/26 (refer to para 4.5) are renewed, the future projections are as per Exhibit 4. This illustrates there would be a declining fund balance which will, after a period of years, run out and leaves no scope to consider any future applications to the DCG. The projections also assume it will be possible to find new tenants in properties if existing tenants leave.
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Exhibit 3– Projected Net Expenditure & Fund Balance (assuming fixed awards not renewed) Actual Probable Outturn Estimates 2023/24 (£,000) 2024/25 (£,000) 2025/26 (£,000) 2026/27 (£,000) 2027/28 (£,000) 2028/29 (£,000) B/F Balance 625 561 403 301 352 410 Income 344 342 376 380 387 389 Expenditure -408 -500 -478 -329 -329 -329 Surplus / (Deficit) -64 -158 -102 51 58 60 C/F Balance 561 403 301 352 410 470 Exhibit 4– Projected Net Expenditure & Fund Balance (assuming fixed awards are renewed) Actual Probable Outturn Estimates 2023/24 (£,000) 2024/25 (£,000) 2025/26 (£,000) 2026/27 (£,000) 2027/28 (£,000) 2028/29 (£,000) B/F Balance 625 561 403 301 271 248 Income 344 342 376 380 387 389 Expenditure -408 -500 -478 -410 -410 -410 Surplus / (Deficit) -64 -158 -102 -30 -23 -21 C/F Balance 561 403 301 271 248 226 Review of Current Awards and Benefiting Organisations/Groups 4.10 As part of this review all current recipients of grant awards, with the exception of those who have recently been granted awards for a fixed period, were contacted and asked to consider whether their groups still required the same level of support from the DCG. All the groups responded with one (Alternatives West Dunbartonshire CDS) advising they no longer required the funding. Appendix 2 summarises the revised applications and illustrates that, if all revised applications are approved, the grants awarded in 2025/26 would decrease from the £0.468m detailed in Exhibit 2 to £0.460m, a reduction of £0.008m. This reduction would not be sufficient to address the deficits illustrated in Exhibit 4 (if the fixed term awards are renewed) 4.11 Furthermore, since the review was initiated, there has been a further two new applications to the DCG which will need to be considered. These were received from: 1. Dumbarton Riverside Football Club for £2,000 to fund 50% of the costs of strips for all teams, training equipment and a summer football festival. This would be a one-off award. 2. St Augustine’s Episcopal Church for £6,500 to source and install a security alarm system (including CCTV) at the main church hall and the lesser hall. This would be a one-off award. This in response to a break in and theft of money at
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the lesser hall which has resulted in a loss of confidence, in particular, amongst younger and older generation of congregation and users of the groups and clubs which we host throughout the calendar year. The applying groups were notified this review had been initiated at the time of their application and that their applications would be considered as part of the review of all existing awards. Assessment Process / Criteria for Awards 4.12 This review also considered the criteria that has been applied in prior years when considering applications to the DCG. The existing criteria is vague which may have resulted in inconsistencies in application evaluations and be open to interpretation. As part of the ongoing effort to improve the assessment process, the criteria has been reviewed to ensure a more transparent, measurable and consistent evaluation process. 4.13 In particular consideration of the criteria and assessment process has focused on providing a clearer guidance to the applicants and assessors, being more aligned to the overall objective of the DCG and wider Council strategic priorities and to ensure an effective and fair process for future distribution of the Fund which will support more consistent decision making. 4.14 It is recommended that Committee approve a new two-stage process as set out below. Stage 1 will include a preliminary filter of 12 questions which require a ‘Yes’ or ‘No’ answer. For the application to pass to stage 2 all of the 12 preliminary questions need to be answered ‘Yes’. If any are answered ‘No’ the application will be rejected and the applicant advised of the reason for rejection. Stage 2 will assess the application against 5 questions – each of which will attract a score between 1 and 5. This means an application can be scored anywhere between 5 and 25. Applications will then be graded as follows: High Impact – Scores between 20 and 25 Medium Impact – Scores between 10 and 20 Low Impact – Scores between 5 and 10 High impact activities will be recommended for approval by the Corporate Services Committee. Medium impact activities will be recommended for approval by the Corporate Services Committee subject to their being sufficient funds in the existing financial year budget to accommodate them. Low impact activities will be recommended for rejection by the Corporate Services Committee.
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4.15 The Corporate Services Committee retains the option to not approve the officer recommendation. 4.16 Exhibit 5 sets out the stage 1 preliminary filter and stage 2 detailed assessment questions and scoring. Note that questions 1, 5 and 12 in the preliminary filter (Stage 1) are changes to the application assessment. They require 80% of activity beneficiaries to be residents of Dumbarton (previously 100%) apply a £50k cap on any award (previously no cap) and require the activity to make some contribution to one of the Council’s strategic priorities (no previous requirement). The detailed assessment (Stage 2) is a new process which didn’t exist previously. Exhibit 5 – Dumbarton Common Good Assessment Stages Stage 1 - PRELIMINARY FILTER YES/NO Q1 Are at least 80% of the residents who will benefit from the award residents of Dumbarton? Q2 Is the organisation non-profit making? Q3 Is the organisation constituted? Q4 Can the organisation evidence they have considered and/or applied for other external funding before contacting the Council? Q5 Is the application for £50,000 or less per annum? Q6 Does the activity take place within Dumbarton? Q7 Is it confirmed that the activity or applying group will not promote political beliefs? Q8 Is the application clear about what the expenditure is to be spent on? Q9 Has it been confirmed the funding is not for a loan repayment or retrospective funding? Q10 Will the activity commence before the end of the financial year for which the application is sought? Q11 Has the applicant provided a copy of their most recent audited accounts? Q12 Does the project contribute to any of the Council's three external strategic priorities? 1. Our communities are resilient and thriving 2. Our environment promotes a greener future 3. Our economy is strong and flourishing STAGE 2 - DETAILED ASSESSMENT Question Scoring Guide Score Q12 Does the organisation hold unrestricted funds? 1. Unrestricted funds in excess of 5 times grant requested 2. Unrestricted funds in excess of 4 times grant requested 3. Unrestricted funds in excess of 3 times grant requested 4. Unrestricted funds in excess of 2 times grant requested 5. Unrestricted funds in excess of 1 times grant requested Q13 Is the organisation planning to fund a proportion of the project from alternative sources (either own funds or alternative fund raising) 1. No 2. Funding Between 1% and 20% 3. Funding between 20% and 40% 4. Funding between 40% and 50% 5. Funding over 50%
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Q14 Approximately how many people will benefit from the activity? 1. Under 10 2. 10-25 3. 25-50 4. 50-100 5. Over 100 Q15 Does the application evidence plans for long- term sustainability and continuation of the project? 1. No plan for sustainability or long-term continuation. 2. Minimal or vague sustainability plan. 3. Clear plan but lacks detail or feasibility for long-term sustainability. 4. Strong sustainability plan, with clear actions. 5. Detailed and well-supported sustainability plan with a high likelihood of long-term success. Q16 Does the activity promote inclusivity and address equality? 1. No consideration of equality or inclusion. 2. Limited focus on equality and inclusion 3. Some focus on equality and inclusion. 4. Strong focus on equality and inclusion. 5. Excellent commitment to equality and inclusion, with well- integrated actions. Total Score 0 Assessment (High/Medium/Low) Assessment Bands High Impact (20-25) Medium Impact (10-20) Low Impact (5-10) 4.17 If the assessment approach set out in Exhibit 5 is approved, new DCG guidance notes and an associated application form will be drafted which are directly aligned to the specific questions set out for the stage 1 and stage 2 assessment. Existing Award Beneficiaries and New Applications 4.18 The recommended new assessment criteria, and any associated guidance notes and application form were not in place when the existing beneficiaries were asked to reapply to the DCG as part of this review. Nor was it the agreed assessment process when the two new applicants applied (refer to para 4.11). Therefore, it would not be appropriate to assess the current awards or new applications against the new criteria. 4.19 It is recommended that all current awards are agreed for 2025/26 on a single year basis: adjusting for those who have asked for a lower amount as detailed in appendix 2 not adjusting for those who have applied for an increase as detailed in appendix 2 approving the two one off applications detailed at para 4.11. 4.20 There are sufficient funds in the DCG reserves to accommodate this recommendation. 4.21 It is recommended that all beneficiaries are asked to reapply for funding from 2026/27 onwards using the new agreed process (if approved). All awards to be made on a three-year fixed term basis. This will ensure all awards are assessed in a consistent manner and all awards are subject to a periodic review to determine whether they should be further extended. This means the DCG will operate on a three-year cycle of funding. Any applications made during a three-year cycle will only be approved up until the end of the existing cycle at the time of application.
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5. PEOPLE IMPLICATIONS 5.1 None directly from this report 6. FINANCIAL AND PROCUREMENT IMPLICATIONS 6.1 Recommended actions will provide for greater financial sustainability for the Dumbarton Common Good and provide for a revised application assessment process with a stronger focus on value for money 7. RISK ANALYSIS 7.1 There is a risk that future estimates in relation to rental income are over optimistic. 8. EQUALITIES IMPACT ASSESSMENT (EIA) 8.1 An equality impact assessment is not applicable for the purposes of this report. 9. CONSULTATION 9.1 Consultation has been carried out with officers in Finance who manage their grant applications and asset management who are responsible for managing rental income. 10. STRATEGIC ASSESSMENT 10.1 The proposed revised assessment process will help align Dumbarton Common Good expenditure with the Council’s strategic objectives. Laurence Slavin Chief Officer - Resources Date: 10 January 2025 Person to Contact: Laurence Slavin, Chief Officer - Resources E-mail: laurence.slavin@west-dunbarton.gov.uk Appendices Appendix 1 – Projected DCG Expenditure in years 2025/26 -2028/29 Appendix 2 - Revised Applications
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Appendix 1 – Projected DCG Expenditure in years 2025/26 -2028/29 Group Reason 24/25 Probable Outturn 25/26 26/27 27/28 28/29 WDC Christmas Lights 15,000 15,000 15,000 15,000 15,000 WDC Dumbarton Fireworks 12,864 12,864 12,864 12,864 12,864 WDC Town Centre Management 75,000 67,546 0 0 0 WDC Central Admin Allocation 45,342 45,342 45,342 45,342 45,342 WDC Estates Dept - Management Fee 10,840 10,840 10,840 10,840 10,840 WDC Pipe Band Championships 50,000 50,000 50,000 50,000 50,000 WDC Dumbarton library resources 10,000 10,000 10,000 10,000 10,000 WDC Small Grants 0 7,000 7,000 7,000 7,000 WDC DCG vacant property costs 31,461 0 0 0 0 Alcoholics Anonymous Rental and utility costs 24,997 24,997 24,997 24,997 24,997 Alternatives West Dunbartonshire CDS Rental 5,000 5,000 5,000 5,000 5,000 Bellsmyre Digital Project Rental 35,602 35,602 35,602 35,602 35,602 Bellsmyre Development Trust Running costs 36,000 36,000 0 0 0 Dumbarton Senior Citizens Running costs, outings and events 10,000 10,000 10,000 10,000 10,000 Rockvale Rebound Rental 2,630 2,630 2,630 2,630 2,630 Scottish Maritime Museum Staff, Marketing & Running Costs 50,000 50,000 50,000 50,000 50,000 West Dunbartonshire Citizen's Advice Bureau Service provision contribution 40,000 40,000 40,000 40,000 40,000 WD Community Foodshare Rental costs and running costs 17,403 17,403 0 0 0 Food For Thought SCIO Rental 15,000 15,000 0 0 0 Corra Foundation Staff and general costs 13,000 13,000 0 0 0 Total 500,139 468,224 319,275 319,275 319,275
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Appendix 2 – Revised Applications Group Reason 25/26 Award Prior to Reapplication Revised Application Increase / (Decrease) Notes / Comments WDC Christmas Lights 15,000 10,000 -5,000 £5,000 decrease WDC Dumbarton Fireworks 12,864 15,000 2,136 £2,136 increase due to anticipated increase in event cost WDC Town Centre Management 68,000 68,000 0 Dumbarton Town Centre Common Good Fund was agreed by (then) HEED Committee in May 2013 and is administered by Regeneration. It is an earmarked sum to assist with regeneration activity in Dumbarton High Street and town centre, and to stimulate long term improvements. Once the remaining £68k is used up this budget line will no longer exist WDC Central Admin Allocation 45,342 45,342 0 DCG Running Costs - no change. Council costs to administer the DCG increase annually due to pay awards WDC Estates Dept - Management Fee 10,840 10,840 0 DCG Running Costs - no change. Council costs to administer the DCG increase annually due to pay awards WDC Pipe Band Championships 50,000 50,000 0 No change to ask - total cost of event estimated at £75k. Research has shown that each year it contributes approximately £1.7million to the local economy due to the more than 20,000 visitors and 4,000 competitors spending in local shops, restaurants, bars, guest houses and hotels. Day guests at the event are estimated to spend around £750,000 while those who stay overnight in the area spend approximately £100,000 locally. The spending means that for every £1 invested in the event, the championships achieve just under £30 of net additional expenditure into the local economy. Reducing investment in the event would have a wider detrimental impact. WDC Dumbarton Library resources 10,000 10,000 0 No change to ask - Around £170,000 is spent each year on library materials including physical and digital resources for public lending use across the eight branch libraries, school
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and mobile library. £10,000 is a relatively small contribution. WDC Small Grants 7,000 0 -7,000 This was to allow for small grant claims managed by Regeneration. No spend against this line in recent years. Budget can be removed. WDC DCG vacant property costs 0 0 0 One off costs in 24/25. Not required on a recurring basis Alcoholics Anonymous Rental and utility costs 24,997 24,997 0 No change to ask - application funds needed to support cost of lease and utilities which provides for 12 group meetings a week in WDC owned unit on Poplar Road. Alternatives West Dunbartonshire CDS Rental 5,000 0 -5,000 Group confirmed they would not be seeking any further funding Bellsmyre Digital Project Rental 35,602 41,902 6,300 Application for a £6,300 increase to cover rent for three locations, 7b Merkins Avenue, Concord and Leven Valley Enterprise Centre (£3,600, £4,800 and £6,000), an IT technician (£22,750), wifi costs (£1,920) and £1,872 for a cleaner 3 hours a week Bellsmyre Development Trust Running costs 36,000 36,000 0 Group not asked to reapply as 2025/26 is final year of a three year fixed term award Dumbarton Senior Citizens Running costs, outings and events 10,000 10,000 0 No change. Application is to cover costs of audit fees, and social events for Dumbarton Senior Citizens Rockvale Rebound Rental 2,630 4,230 1,600 £1,600 increase to cover rental costs (£2,630) plus £1,000 of utility costs and £600 to replace equipment needed by visually impaired people to listen to free weekly newspaper and monthly magazine by way of a memory stick. Scottish Maritime Museum Staff, Maintenance, Marketing & Running Costs 50,000 48,500 -1,500 £1,500 reduction. Application is to cover staff costs (£32,500), Roof repairs (£11,000) and events/marketing (£5,000).
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West Dunbartonshire Citizen's Advice Bureau Service provision contribution 40,000 40,000 0 No specific amount applied for in application however explanation from applicant is that there is currently no mechanism for WDCAB to make a bid for funding, they simply receive, on an annual basis, the sum WDC chooses to award. This is because at in 2012/2013 WDC designated WDCAB as a “strategic partner”. WDC made the decision to grant “strategic partner” status to a number of organisations. This decision took those organisations out of the traditional, annual grant application process. Instead, each year they are allocated funds to cover our core operating costs by WDC. These funds included a sum from the Common Good Fund. WD Community Foodshare Rental costs and running costs 17,403 17,403 0 Group not asked to reapply as 2025/26 is final year of a three year fixed term award Food For Thought SCIO Rental 15,000 15,000 0 Group not asked to reapply as 2025/26 is final year of a three year fixed term award Corra Foundation Staff and general costs 13,000 13,000 0 Group not asked to reapply as 2025/26 is final year of a three year fixed term award 468,678 460,214 -8,464