Highway maintenance plan

9.1 Sources of funding

Available funding is determined on an annual basis through the Local Transport Plan Settlement and Formula Spending Share as approved by Members. It comprises both revenue and capital sources of funding allocated into basic maintenance and Resurfacing and Reconstruction (R & R) and defined as follows:

• Basic Maintenance comprises smaller scale highway maintenance works. This category includes basic maintenance and winter service together with safety and environmental maintenance works which are not subject to cost criteria. Basic Maintenance works are funded from the revenue allocation.
• Resurfacing and Reconstruction (R & R) comprises larger scale structural maintenance works in respect of reconstruction, overlay or resurfacing of both carriageways and footways where a specific need has been identified, works can be planned and the estimated cost of the necessary works separately quantified.
• For the purposes of monitoring expenditure and performance, R & R also includes surface treatments as a separate category. Surface treatments are non-structural treatments including surface dressings, slurry sealing, high friction surfacing, resin bonded surfacing, other bituminous bonded surfacing and re-texturing. Sites where preparatory work such as patching and haunching are carried out they should be classified as R & R schemes.
• R & R schemes will be financed from either revenue or capital funds depending on the availability of funding.

Each financial year, allocations are made on a historical budget setting with an inflation allowance. There is no provision for network growth.

9.2 Financial procedures

The financial procedures adopted by the Council are set out in the 'Hartlepool Financial Regulations' document. The 'Financial Procedure Rules' sets out the requirements of the Council with regard to financial management and control in respect of those matters for which designated officers have delegated responsibility.

The Procedures are intended to give Officers guidance on the following matters.:

• financial responsibilities
• allocation of revenue funds for highway maintenance and virement of funds
• placing orders for works
• maintenance expenditure (revenue)
• management and support services
• rechargeable works — reinstatements, vehicular crossings and accident damage
• advance payment code
• private street works
• S38 adoptions of estate roads — inspection fee
• collection of inspection fee from developers under S106 and S278 and other such agreements
• temporary road closures
• on street car parking
• locally determined funds
• minor integrated transport schemes
• potential bad debts
• charges for licences and permissions
• claims made against the County Council/Agency Districts
• highways records and land charges
• New Roads and Street Works Act 1991

9.3 Accounting principles

Accounting principles for highway maintenance should be in accordance with

CIPFA requirements with particular reference to:

• CIPFA Code of Practice on Accounting for Capital 1994
• CIPFA Statement of Recommended Practice on Accounting for Capital 2000 which supplements the 1994 Code.

The CIPFA 2000 document provides the following relevant advice in respect of highway maintenance:

• expenditure that should be capitalised includes acquisition, construction, enhancement or replacement of roads, buildings or other structures
• in this context enhancement means carrying out works which are intended to lengthen substantially the useful life of the asset, increase substantially the open market value of the asset or increase substantially the extent to which the asset can or will be used for the purposes of or in conjunction with the functions of the authority.
• under this definition improvement works and structural repairs should be capitalised, whereas expenditure to ensure that the fixed asset maintains its previously assessed standard of performance should be recognised in the revenue account as it is incurred. Unless expenditure meets these criteria to be capitalised, it should be treated as revenue.

9.4 Accounting principles

Neighbourhood Services and/or Financial Services to ensure each general maintenance function and each individual job of highway improvement or maintenance should be carried out to a required specification and agreed timescale and within the approved budget allocation unless otherwise agreed with the Director of Neighbourhood Services.

Moreover, under the terms of the corporate financial management arrangements the following criteria should be fulfilled:

• accountancy practices as described in 9.3 above to be followed
• highway expenditure to be monitored on a monthly basis and any possible overspends identified and reported to the Director of Neighbourhood Services at the next Budget meeting
• quarterly progress reports to be provided to the Director of Neighbourhood Services incorporating actual plus committed expenditure compared with estimated expenditure
• adoption of further regulations or procedures as determined by the Director of Neighbourhood Services and/or the Chief Financial Officer to ensure adherence to Council's policies.