Orkney Islands Council

Revenue Budget

2021/2022

IMAGE: The cover displays the Orkney Islands Council coat of arms, with the words “ORKNEY ISLANDS COUNCIL”, “REVENUE BUDGET”, and “2021/2022”.

Revenue Estimates

Contents

• Foreword by Head of Finance — 1
• General Fund Budget Strategy & Assumptions — 5
• Strategy and Assumptions — 7
• Approved Budget Calculation 2021/22 — 20
• Council Tax Calculation 2021/22 — 20
• Council Tax Comparison 2021/22 — 21
• Summary of Approved Service Pressures 2021/22 — 22
• Summary of Settlement Adjustments 2021/22 — 23
• Summary of Efficiency Savings 2021/22 — 24
• Service Committee Budgets — 25
• Service Committee Summary — 27
• Development and Infrastructure — 28
• Education, Leisure and Housing — 30
• Orkney Health and Care Partnership — 32
• Policy and Resources — 33
• Harbour Authority Sub-Committee — 34
• Asset Management Sub-Committee — 34
• Investments Sub-Committee — 35
• Pension Fund — 35
• General Fund Service Budgets — 37
• General Fund Summary — 39
• Central Administration — 48
• Education — 53
• Leisure Services — 60
• Social Care — 68
• Law, Order and Protective Services — 75
• Roads — 76
• Transportation — 81
• Operational Environmental Services — 84
• Environmental Health and Trading Standards — 88
• Other Housing — 90
• Economic Development — 94
• Planning — 97
• Other Services — 99
• Sources of Funding — 105
• Housing Revenue Account — 107
• Housing Revenue Account — 109
• Harbour Accounts — 111
• Scapa Flow Oil Port — 113
• Miscellaneous Piers and Harbours — 117
• Orkney College — 121
• Orkney College — 123
• Corporate Holding Accounts — 127
• Corporate Holding Accounts — 129
• Strategic Reserve Fund — 133
• Strategic Reserve Fund — 135
• Pension Fund — 139
• Pension Fund — 141
• Glossary of Terms — 143

Foreword by Head of Finance

Introduction

The Local Government Finance Act 1992 is the legislative basis for the current system of local taxation, namely Council Tax. The Council is required to set a balanced budget by the 11 March in the financial year preceding that for which it is set. The revenue budget for the financial year 2021/22, commencing 1 April 2021, was agreed on 2 March 2021 with the Council Tax Band D level being frozen at the 2020/21 level £1,208.48.

The net revenue budget for 2021/22 stands at £91.207M.

The Strategy and Assumptions on page 5 were agreed by Council on 2 March 2021. These include the Council Tax calculation and the allocation of approved service pressure and savings across General Fund Service Areas.

The Service Committee Budgets on page 25 provides a budget summary by service committee. This includes details of all General Fund and Non-General Fund services.

The General Fund Service Budgets on page 37 details the General Fund Revenue Estimates, beginning with a Service Committee Summary then Service Area Summary, which includes a summary by Service Function. More detailed Service Area budgets by Subjective Group then follow.

The Housing Revenue Account on page 107 deals with the Housing Revenue Account.

The Harbour Account on page 111 deals with the Harbour Accounts: Scapa Flow Oil Port and Miscellaneous Piers and Harbours.

The Orkney College on page 121 deals with the Orkney College Account.

The Corporate Holding Accounts on page 127 deal with the budgets for General Fund and Non-General Fund Repairs and Maintenance to properties, General Fund and Non-General Fund Ground Maintenance costs and Utilities, Insurance, Telephones, Photocopiers and Postages holding accounts.

The Strategic Reserve Fund on page 133 deals with the Strategic Reserve Fund.

The Pension Fund on page 139 deals with the Pension Fund Account.

A Glossary of Terms is provided at page 143.

Level of Expenditure

Delivering a balanced budget was only possible through the application of savings and efficiency measures totalling £0.574M applied across General Fund services. Contained within individual service budgets it has also been possible to accommodate £4.055M of additional service pressures which includes £1.689M inflation, £2.294M service pressures detailed on page 22 and £0.072M Settlement Adjustment detailed on page 23.

Definition of Key Terms

The details show the full year revenue costs of providing General Fund, Housing Revenue Account, Harbour Authority, Orkney College, Corporate Holding Accounts, Strategic Reserve Fund and the Pension Fund.

The estimates have been prepared using the format of the Council’s financial ledger system, which reflects the standard classification of local authority income and expenditure as recommended by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authorities (Scotland) Accountancy Advisory Committee (LASAAC).

Each of the constituent elements of the 2021/22 budget total are shown to enable both reader and budget holder to quickly see what makes up the budget figure presented.

The budget figures given cover eleven separate datasets, ranging from Approved Budget 2020/21 through to Approved Budget 2021/22.

Definition of Key Terms (cont.)

The following terms are used throughout the estimates with the undernoted definitions:

Subjective Group (Expenditure)

Subjective Group (Income)

Gareth Waterson

Head of Finance

April 2021