Common use of Pooled Fund Clause in Contracts

Pooled Fund. 4.1 The ‘Devon Pool’ proposes to distribute pooled funds using a “no worse off” basis. Funds will be distributed to each member authority to a position no worse than it would have been had the pool not existed. Clearly this will only be possible if the pooling arrangements result in an aggregate financial position that is no worse than would have been the case had the pool not existed. The annual Local Government Finance Review is expected to make available figures for the level of business rates revenue that each local authority is able to retain. Where those authorities are in a pool, this is expected to demonstrate both the revenue retained by the pool as a whole and the amount that each individual authority could expect to gain if it were not a member of a pool. 4.2 Where pooling generates a net gain the additional resources (above and beyond the “no worse off” basis) will be distributed in the following proportions:- i) 50% of the gain will be distributed using each authority’s baseline funding level and ii) 50% of the gain will be distributed using NDR baseline. 4.3 Similarly where pooling generates a net loss the reduced resources (below the “no worse off” basis) will be apportioned in the following proportions:-