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appendix 1c - Hertfordshire County Council

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appendix 1c - Hertfordshire County Council Powered By Docstoc
					                                                             Agenda Item No.

HERTFORDSHIRE COUNTY COUNCIL

CABINET                                                           7
MONDAY 13 DECEMBER 2004 AT 2.00 P.M.



COUNTY COUNCIL RESOURCE BUDGET 2005/06 TO 2008/09

Report of the Finance Director

Author:- Chris Sweeney, Finance Director (01992 555304)

Executive Member:- David Beatty


1.    Purpose of the Report

1.1   To consider the impact of the 2005/06 Provisional Local Government
      Finance Settlement on the County Council.

1.2   To enable the Cabinet to agree revenue budget and capital programme
      proposals for consideration by Scrutiny Committees in January 2005.


2.    Summary

2.1   In order to set the budget for 2005/06, this meeting of the Cabinet needs to
      make budget proposals for consideration by Scrutiny Committees during
      January 2005. Cabinet, at a meeting on 7 February 2005, will consider the
      Scrutiny Committees’ comments, the impact of any updated and further
      information and recommend a budget to County Council on 10 February
      2005 so that:

      i)     budgets delegated to schools can be notified;

             and

      ii)    the District Councils can be informed of the County Council’s
             Council Tax requirement within the required timescales.

2.2   Both the proposed schools budget and the plan for the use of the Targeted
      Transitional Grant need to be notified to the Secretary of State for
      Education and Skills by 31 December 2004 and 31 January 2005
      respectively.



                                       1
2.3   The Provisional Local Government Finance Settlement was announced on
      2 December. Hertfordshire received the second lowest increase in both
      Formula Spending Share (5.1%) and Formula Grant (4.9%) of all county
      councils with fire responsibilities.

2.4   Executive Members and Chief Officers have worked through the period
      leading up to the Cabinet meeting to identify cashable efficiency savings of
      £8.1 million, of which £1.0 million relates to the Schools budget. In
      addition, there are efficiencies relating to the full year effects of previous
      policy decisions bringing the total cashable efficiencies to £8.5 million. A
      further £3.5 million of non cashable savings have also been identified.
      Efficiency savings so far identified represent 1.9% of the non schools
      budget.

2.5   Full details of the expenditure forecast are provided in sections 3 to 8 of
      the main report. A budget which passports the increase in the schools
      FSS, leaves all other services with a standstill budget, takes account of
      efficiency savings and removes the current year’s one-off provision for
      additional highways maintenance spending and does not replace it would
      result in spending of between £1,072.6 million and £1,080.9 million in
      2005/06 and a council tax increase of 4.4– 6.6%.

2.6   The proposed schools budget consistent with passporting the increase in
      the Schools FSS would provide resources above standstill of £1.5 million.
      Children, Schools and Families estimate that this will be sufficient to
      ensure the minimum funding guarantee for individual school budgets can
      be delivered if the Section 28 exemptions applied for from the DfES are
      granted. First calls against the balance would be the increase in matched
      funding for the Standards Fund and a potential increase in the balance of
      risks insurance costs.

2.7   HCC’s allocation of the Choice Protects and Adoption Grant increased by
      £0.5 million in 2005/06. There is also a one-off increase of £2.0 million
      and a recurrent increase of £0.5 million in the 2005/06 Access and
      Capacity Grant. The recurrent increase meets inflation needs and there is
      scope for using up to the £2.0 million one-off increase to offset the cost of
      increasing service needs included in the standstill budget. The council has
      discretion in how it seeks to apply these grants. However, using all the
      one-off increase in this way will not meet the grant guidelines which
      underpin ACS performance ratings.




                                        2
2.8    Several areas of uncertainty remain and these are outlined in Section 8 of
       the main report. It is anticipated that some of these will be able to be
       managed within the special provision included in the base budget and
       those relating to schools should be able to be funded from the passported
       schools budget. However, a number of other uncertainties remain, notably
       the final FSS, the council tax base, the collection fund surplus and the
       level of the flood defence levies. These are not expected to be finalised
       until late January/early February.

2.9    The position regarding capping remains unclear. Nick Raynsford, Minister
       for Local and regional Government, has said that the Government expect
       to see lower council tax increases than last year and that average council
       tax increases in England should be less than 5% in 2005/06.

2.10   Bids for capital expenditure and information on available capital resources
       are detailed within sections 9 to 11 of this report, alongside the revenue
       budget picture. Cabinet will now need to consider the council’s capital
       investment plans, to deliver an affordable programme.

2.11   The budget process has been running alongside the production of the
       Council’s Best Value Performance Plan and the public consultation. The
       outcome of the public consultation is available to inform Cabinet decisions
       on the budget (see Section 13 of the main report).


3.     Conclusions

3.1    The decisions for Cabinet are to:

       a) make proposals for the revenue budget and capital programme for
          consideration by scrutiny committees in light of the BVPP and the
          outcome of the public consultation.

       b) Agree the schools budget for notification to the DfES by the deadline of
          31 December.

       c) request the Director of Environment to include a recommended split of
          the LTP in his report to Cabinet on 21 March 2005.




                                           3
      CONTENTS OF THE REPORT


Section 1:    Background
Section 2:    Provisional FSS
Section 3:    Revenue Expenditure Forecast
Section 4:    Pay and Price Inflation
Section 5:    Pressures for Change
Section 6:    Efficiency Savings
Section 7:    Council Tax
Section 8:    Uncertainties
Section 9:    Capital Programme
Section 10:   Capital Resources
Section 11:   Capital Expenditure
Section 12:   Reserves
Section 13:   Public Consultation on Spending Priorities

Appendix 1    Adult Care Services Proposed Resource Budget
              2005/06 – 2008/09
Appendix 2    Children, Schools & Families Proposed Resource
              Budget 2005/06 – 2008/09
Appendix 3    Community Services Proposed Resource Budget
              2005/06 – 2008/09
Appendix 4    Corporate Services Proposed Resource Budget
              2005/06 – 2008/09
Appendix 5    Environment Proposed Resource Budget 2005/06 –
              2008/09
Appendix 6    Information Technology Proposed Resource Budget
              2005/06 – 2008/09
Appendix 7    2005/06 Standstill Budget - Movement Statement by
              Service
Appendix 8    Pressures for Change 2005/06
Appendix 9    Efficiency Savings 2005/06
Appendix 10   Capital Bids Submitted by Departments
Appendix 11   Capital Programme 2005/06 – 2007/08 Annual
              Provisions
Appendix 12   Statement of Projected Specific Reserves
Appendix 13   Hertfordshire County Council Newspaper and Online
              Budget Consultation Topline Findings
Appendix 14   Glossary of terms




                                  4
1.    Background

1.1 This report provides the latest information on available resources and
       spending pressures to allow Cabinet to make budget proposals for
       consideration by Scrutiny Committees during January.


2.    Provisional Formula Spending Share (FSS)

2.1   The Local Government Minister announced the Provisional Local Authority
      Finance settlement for 2005/06 on 2 December. Hertfordshire County
      Council’s provisional FSS has been set at £1,027.678 million. This
      represents an increase of £49.9 million (5.1%) on last year’s FSS after
      taking account of the Government’s adjustments for changes in
      function/funding.

2.2   The overall national increase in FSS is 5.4% for county councils which
      have responsibility for fire is 5.9%, ranging between 4.8% (West Sussex)
      and 6.7% (Suffolk) for individual authorities.

2.3   In the settlement the Formula Grant (Revenue Support Grant and
      Redistributed Business Rates) for the council is £672.164 million. This
      represents an increase of £31.4 million (4.9%) after adjusting for transfers
      in function and funding. This compares to an average increase of 5.6%
      nationally and 5.9% for county councils which have responsibility for fire,
      ranging between increases of 4.3% (West Sussex) and 6.8% (Surrey).

2.4   Nationally the provisional settlement includes an additional £358 million in
      Revenue Support Grant for 2005/06 above the total announced in the July
      2004 Spending Review. The repayment of the Fire transitional grant
      received in 2004 has also been deferred until 2006/07. This has increased
      the authority’s FSS by around £0.5 million.

2.5   There have been no changes to the FSS methodology this year. The
      increase in the FSS is due to increases in the control totals. Data changes
      have had the impact of reducing HCC’s FSS by £4.3 million. This
      reduction is mainly due to the updated Earnings Survey data used to
      calculate the Area Cost Adjustment and new population estimates.

2.6   The deadline for the consultation period for the provisional settlement is 11
      January. In order to meet this deadline the Chief Executive will prepare a
      response and agree it through urgency procedures.




                                        5
2.7    It is estimated that Hertfordshire will also receive Specific Grants totalling
       approximately £208 million in 2005/06, of which £57.7 million relates to
       Personal Social Services and £149.2 million to Education. Overall, the
       increase in both Formula Grant and Specific Grants between 2004/05 and
       2005/06 is estimated to be 5.2% after adjusting for the transfer of
       Magistrates Courts funding to the Unified Courts Administration Agency.

2.8    There is a one-off increase of £2.0 million and a recurring increase of £0.5
       million in the Access and Systems Capacity grant for 2005/06. The
       purpose of the grant is to enable authorities to build up the stock of
       community based social services and promote older people’s
       independence, reduce delayed discharges and meet new targets for
       assessment. There is also a £0.5 million increase in HCC’s allocation of
       the Choice Protects and Adoption Support Grants in 2005/06. The
       purpose of the Adoption Support Grant is to support the development and
       provision of services in line with the Adoption Support Services
       Regulations 2003 and the forthcoming Adoption Support Services
       Regulations and Special Guardianship Regulations which will come into
       force in 2005. The Choice Protects grant is intended to meet various
       Choice Protects objectives. These resources are not ringfenced and there
       is scope for using up to £2.5 million of these increases to offset costs
       included in the standstill budget.

2.9    Damping arrangements are continuing in 2005/06 and all authorities will
       receive at least a floor level of grant increase. However, the ceiling
       arrangement used in previous years has been removed. In 2005/06 no
       Education and Personal Social Services authority will receive an increase
       in Formula Grant less than 4.0%. The methodology for calculating the floor
       ensures that authorities are guaranteed to receive an increase in grant
       sufficient to enable the increase in the Schools FSS to be passported in
       full and also takes into account the amending report adjustment.

2.10   Hertfordshire County Council’s Formula Grant increase places the
       authority £5.0 million above the floor and as a result the amount of
       Revenue Support Grant (RSG) that the County Council will receive has
       been scaled back by £571,000 to contribute to the cost of the floor.

2.11   Within the overall mechanism there is a separate set of floors and ceilings
       for the Education FSS. The DfES define the floor so that all authorities are
       guaranteed a minimum increase of 5.5% and a maximum increase of
       8.75% per pupil in their Schools FSS block. The LEA block has a floor
       and ceiling of 3.5% and 4.95% respectively, but this is not on a per pupil
       basis. Hertfordshire County Council’s Education FSS has been uplifted by
       £1.8 million through this mechanism (£1.1 million for the Schools block
       and £0.7 million for the LEA block).



                                          6
2.12   The Secretary of State for Education and Skills has announced a
       guaranteed minimum per pupil increase of 5% for nursery and primary
       schools and 4% for secondary and special schools. The authority has
       applied to the DfES for a number of Section 28 exemptions to the
       Minimum Funding Guarantee. Further details on this is provided in
       Appendix 2 (1) A.

2.13   Regulations continue to require that LEA spending on central education
       budgets rises no faster than spending on schools. LEAs are able to seek
       an exemption if there are exceptional local circumstances. Children,
       Schools & Families estimate that they will be able to meet the central limit
       for 2005/06.

2.14   The Authority will also receive £3.9 million of Targeted Transitional
       Support Grant in 2005/06 to assist those schools deemed to be in greatest
       financial difficulty. The Authority must prepare a plan of the use of this
       transitional support and submit this to the DfES by 31 January 2005 for
       approval. Following consultation with the Schools Forum this needs to be
       signed off by the Director of Children, Schools and Families and the
       Finance Director and it is suggested that this is done in consultation with
       the Executive Member for Children, Schools and Families and the
       Executive Member for Resources.

2.15   The Authority will also receive £17.0 million of Teachers Threshold and
       Performance Pay Grant in 2005/06. The purpose of this grant is to
       produce funding to support the costs of teachers who reach the Upper Pay
       Scale threshold, teachers who progress on the Upper Pay Scale and other
       performance points awarded to teachers. The grant is required to be
       passported to schools.

2.16   The main adjustments to the authority’s FSS as a result of transfers of
       function and changes in financing are:-

       a)     Preserved Rights/Residential Allowances - a proportion of both the
              Preserved Rights and Residential Allowances Grants have been
              transferred to the Personal Social Services FSS. The ACS budget
              has been increased by £5.2 million to reflect these transfers.
              Hertfordshire County Council’s FSS has been increased by £6.3
              million. The remainder of the grant funding for Residential
              Allowances will be rolled into the FSS from 2006/07.

       b)     Magistrates Courts – the funding for Magistrates Courts is being
              transferred to the new Unified Courts Administration Agency in
              2005/06. Hertfordshire County Council’s budget has been reduced
              by £1.3 million to reflect this. The Environmental, Protective and
              Cultural Services FSS has been reduced by £1.6 million.

                                         7
       c)    Emergency Planning – the Civil Defence Grant is being transferred
             to the Environmental, Protective and Cultural Services FSS. At this
             stage it is anticipated that the requirements of the Civil
             Contingencies Bill will be able to be met at a cost of £311,000, the
             value of the grant in 2004/05 and the Emergency Planning budget
             has been increased by this amount. Hertfordshire County Council’s
             FSS has been increased by around £450,000 to reflect this transfer.

2.17   The table below contains an analysis of the 2005/06 FSS across service
       subblocks showing the change compared to the 2004/05 FSS adjusted for
       changes in function and funding.

       Table 1 - FSS Consultation Data – Comparison of 2004/05 and 2005/06

                                 Adjusted       Provisional
                                   FSS              FSS
                                 2004/05          2005/06         Change
                                   £m               £m           £m     %

Education                         564.551          589.342    24.791       4.4
Personal Social Services          231.223          245.312    14.089       6.1
Fire                               34.956           35.572     0.616       1.8
Highway Maintenance                43.583           45.337     1.754       4.0
All Other Services                 75.010           77.008     1.998       2.7
Capital Financing                  28.481           35.107     6.626      23.3

Total FSS                         977.804        1,027.678    49.874       5.1

2.18   The distribution of funding across FSS subblocks does not affect the
       discretion the County Council has in setting service budgets. However, the
       DfES require local authorities at least to pass on in full to their schools
       budget the increase in Schools funding, both from the Schools FSS and
       from relevant specific formula grants. Authorities must provide the DfES
       with their proposed schools budget by 31 December 2004. If an authority
       fails to pass on the increase in schools funding, the Secretary of State will
       consider whether to exercise his reserve power and set a minimum level of
       budget for an LEA’s schools.

2.19   The DfES have calculated that the schools budget for Hertfordshire
       County Council consistent with passing on the increase in the schools FSS
       to the schools is £530.692 million. If the Section 28 exemptions applied
       for are granted, this would provide unallocated resources above standstill
       of £1.5 million. Children, Schools and Families estimate that this will
       largely be required to meet the schools minimum guarantee, the growth in
       Standards Fund contributions and the uncertainty relating to the increase
       in the cost of balance of risks insurance. The proposed schools budget
                                         8
       consistent with passporting is presented in Appendix 2(1)A.


2.20   The DfES is proposing to ringfence Schools’ funding for implementation in
       2006/07 and a consultation document is expected in February 2005
       explaining how this will operate. The intention is that schools will be
       funded through a Dedicated Schools Budget, which will be 100 per cent
       funded by DfES grant.

2.21   An initial estimate of FSS figures for future years is set out in Table 2
       below. The 2005/06 figure is provisional and it may still change as a result
       of the Office of the Deputy Prime Minister’s consultation exercise. One
       potential change is the authority’s Capital Financing FSS figure because
       the deduction for PFI specific grant at national level has yet to be
       confirmed and the data on Supported Capital Expenditure (Revenue) will
       be updated in the final settlement. The final figures are expected to be
       available between the middle and the end of January and will be
       considered by the County Council on 10th February. With the exception of
       the Schools’ FSS block, the resource projection up to 2007/08 is based on
       the July 2004 Spending Review and also takes into account changes to
       the control totals in the 2005/06 provisional settlement arising from
       transfers of function and funding. However, the Schools’ FSS block is
       based on projected Hertfordshire pupil numbers multiplied by an estimated
       per pupil increase. The projection for 2008/09 is based on an increase of
       5.0% for the Education and Personal Social Services subblocks and the
       projected long term inflation rate of 2.5% for the remainder of the
       subblocks. The figures will need to be updated following the
       announcement of the next Spending Review, expected in July 2006.


       Table 2 – FSS Projections
                                   2005/06    2006/07    2007/08    2008/09
                                     £m         £m         £m         £m

Estimated FSS                       1,028      1,079      1,129       1,181


3.     Revenue Expenditure Forecast

3.1    It is estimated that the Council will need to spend £1,072.604 million in
       2005/06 for a budget which passes on the increase in the Schools FSS,
       with all other services at standstill and takes account of efficiency savings.

3.2    A movement statement showing the analysis of the movement from the
       2004/05 original budget over the years 2005/06 to 2008/09 is shown in
       Table 3 overleaf and an analysis of the resultant budget by service is
       shown at Appendix 7.

                                          9
      Table 3 : Movement Statement

                                   2005/06    2006/07     2007/08    2008/09
                                     £m         £m          £m         £m

2004/05 Original Budget (less      1,016.7    1,016.7     1,016.7    1,016.7
one-off funding from 2006/07
onwards)

Technical Adjustments                  4.0        8.6         9.0        9.3

Inflation                             36.0       72.2      108.6       144.9

Base Budget                        1,056.7    1,097.5     1,134.3    1,170.9

Pressures for Change
Previous Policy Decisions              1.3        1.5         1.6        1.6
Full Year effect of previous
efficiencies                          (0.4)      (0.5)       (0.6)      (0.6)
Legislative Changes                    4.7        6.3         6.3        6.4
Demography                             6.0       10.9        15.0       19.2
Other Service Pressures               10.9       18.0        20.2       20.8

New efficiency savings                (8.1)       (9.0)      (9.3)       (9.5)

Standstill Budget                  1,071.1    1,124.7     1,167.5    1,208.8

Schools Passporting –
Additional Resources                   1.5        1.5         1.5        1.5

Resultant Budget                   1,072.6    1,126.2     1,169.0    1,210.3


3.3    This represents a spending increase of 5.1% on last year’s budget
       adjusted for changes in function and funding, 3.5% inflation and 2.2%
       other unavoidable pressures (net of full year effect of committed efficiency
       savings).

3.4    The service budgets shown in Appendices 1 – 6 do not include the
       movements in the allocation of overheads, or the FRS 17 Pension
       adjustments. These adjustments do not affect the council’s bottom-line
       budget or impact on council tax and will be made in the budget report to
       Cabinet in February 2005.




                                         10
4.    Pay and Price Inflation

4.1   The government expenditure allocations are at 2005/06 outturn prices and
      to be comparable the spending forecasts need to include inflation for pay
      and prices. It is suggested that inflation for pay and prices should be
      included in the budget targets, but that the allocation for pay awards that
      have yet to be settled be retained in a central contingency.

4.2   It is estimated that inflation for pay and prices will cost £36.0 million in
      2005/06, £18.4 million for pay, and £17.6 million for prices. This
      incorporates specific inflation rates for utility and contract related spend
      where more relevant inflation factors are available.

4.3   The pay inflation projection takes into account the full year effect of the
      2004/05 pay awards. The pay awards for 2005/06 for teachers and local
      government services have already been agreed, both resulting in an
      increase of 2.95%. A projected pay award for 2005/06 of 2.95% is
      included for all other pay groups.

4.4   The pay awards for fire fighters and a number of other smaller groups
      have not yet been announced for 2005/06. A 1% variation in these from
      the 2.95% increase budgeted for would have a £0.2 million impact on
      costs in 2005/06 and £0.3 million in a full year.


5.    Pressures for Change

5.1   The cost of pressures for change reflect the additional expenditure
      required to continue to deliver the same level of service on the same basis
      as the previous year and to meet new responsibilities. Pressures for
      change have been estimated at £22.5 million (before the application of any
      Personal Social Services grants and including the full year effects of
      committed efficiency savings) in 2005/06, rising to £47.4 million by
      2008/09. Details of pressures are shown by service in Appendices 1-6
      and a summary is provided at Appendix 8.

5.2   The components of the 2005/06 pressures are shown in Table 3.
      Demographic pressures include increases in:

         elderly client numbers at a cost of £2.2 million
         learning disability client numbers at a cost of £1.9 million
         physical disabilities client numbers at a cost of £0.8 million
         care leavers numbers at a cost of £0.7m

      These are offset by a decrease in pupil numbers (0.5%) which reduces
      costs by £1.2 million.

                                         11
5.3   The implementation of new legislation and regulations is estimated to
      produce an increase in costs of £4.7 million in 2005/06, rising to £6.4
      million in 2008/09. The main reasons for this are the impact of workforce
      reform and the operation of the minimum funding guarantee on school
      budget shares.

5.4   The full year effect of previous policy decisions produces a net cost of £1.3
      million in 2005/06 increasing to £1.6 million in 2008/09. The main item is
      the cost of supporting the ongoing strategy for the recruitment and
      retention of qualified social workers in Children, Schools and Families. The
      full year effect of previous efficiency savings will also produce savings of
      £0.4 million in 2005/06.

5.5   Other pressures, including capital financing costs, business rates, the
      Looked After Children Strategy, an increase in the number of school days,
      increments, revenue effects of capital, capital payback, interest on
      balances and increased requirements for home to school transport will
      cost an additional £10.9 million in 2005/06, rising to £20.9 million in
      2008/09.


6.    Uncertainties

6.1   At this stage a number of uncertainties are still remaining which could
      potentially increase costs by up to £13.6 million in 2005/06: These
      include:

          Central costs relating to school reorganisations

          Learning disability, elderly and looked after children
           demography/dependency levels

          Guidance on the use of new Social Services training grants

          Contracts and Litigation

          Costs of implementing forthcoming legislation

          Flood defence levies – the amounts that will be payable by the
           County Council will not be known until late January/early February.

      However, work is continuing to provide the basis for the assessment of
      risks and reserves required to be undertaken as part of the final budget
      setting in February.


                                        12
6.2   The budget includes in its base a special provision for uncertainties of £5.3
      million.


6.3   In addition to the items discussed in para 6.1 there are also a number of
      other items where further information is awaited and which will impact on
      the budget process. These include:

           Collection Fund and taxbase – these figures will be known by the end
            of January

           Capping criteria

           Final FSS – following the ODPM’s consultation period the provisional
            FSS figure may change. The final settlement is expected between
            the middle and the end of January.

6.4   In relation to the Schools budget uncertainty remains around:

           Schools Minimum Guarantee – the cost of the guarantee has been
            estimated from modelling. Final costs will be dependent upon:

                -    final pupil estimates for 2005/06 following the January 2004
                     census
                -    the result of the applications from the Authority to the DfES
                     for amendments to the guarantee formula because of
                     anomalies created by its operation
                -    DfES changes or clarifications to the methodology

            It is anticipated that subject to the above the minimum guarantee can
            be funded within the passported budget.

           A potential increase in the cost of balance of risks insurance

           Formula contingency funded through Targeted Transitional Support
            Grant – whilst the DfES agreed a similar use for the 2004/05
            allocation there is the possibility that this would not be continued in
            2005/06. This would then need to be considered against any
            available headroom.


7.    Efficiency Savings

7.1   Executive members and Chief Officers have already undertaken
      considerable work to identify £8.1 million of cashable efficiency savings,
      £1.0 million of which is in respect of Schools FSS related expenditure. The
      full year effects of previous efficiency savings total a further £0.4 million and
      have been included within the previous policy decisions category of
                                            13
      pressures for change. In addition to this, further non-cashable savings
      totalling £3.5 million have so far been identified.

7.2   Details of efficiency savings are shown by service in Appendices 1 - 6 and
      a summary is provided at Appendix 9.


8.    Council Tax

8.1   The 2005/06 settlement provides for central government support as follows:

      Table 5 : Formula Grant

                                       £m

Redistributed Business Rates          328.9
Revenue Support Grant                 343.3

Total Formula Grant                   672.2


8.2   The budget for 2005/06 will be financed by the total Government support
      shown in the previous table and the balance will be met from council tax.
      This assumes council tax income of £400.9 million. This includes an
      increase of 4.6% in the council tax which the government has built into the
      provisional settlement (i.e. Formula Spending Share less Formula Grant).
      This is equivalent to a 4.1% increase on Hertfordshire County Council’s tax
      for 2004/05).

8.3   In 2005/06 the Government has increased the share of Assumed National
      Council Tax (ANCT) borne by Shire Counties from 74.1% in 2004/05 to
      74.9% in 2005/06. The shares given to each type of authority are set
      judgementally. This change benefits the district councils and the Police
      Authority but has resulted in the loss of around £3.2 million in formula
      grant for the County Council in 2005/06.

8.4   In 2004/05 the County Council will receive a collection fund surplus of £2.0
      million from the district councils. The level of the collection fund in 2005/06
      will not be known until January 2005. The level of the collection fund has a
      direct impact on the council tax increase. A variation of £380,000 on the
      collection fund surplus would have a 0.1% impact on the council tax in
      2005/06.

8.5   The level of council tax is dependent on the level at which the budget is
      set relative to the FSS. Setting the budget 1% or £10.3 million above FSS
      produces an additional 2.7% increase in the level of council tax. This is in
      addition to the tax increase built into the FSS by the Government.

                                         14
8.6   The Secretary of State has powers to cap an authority if the budget
      requirement or council tax increase is deemed to be excessive. However
      it has not been specified in advance what would be deemed excessive. If
      the authority were capped it may ultimately be required to set a reduced
      budget and re-bill council tax payers. This exercise could cost in excess of
      £1 million.

8.7   There has been no advance notice of capping criteria, but the Local
      Government Minister has said that the Government expect to see lower
      council tax increases next year than in 2004/05 and that average council
      tax increases in England in 2005/06 should be less than 5%.

8.8   The average council tax increase in 2004/05 was 5.9% and 5.2% for
      county councils which have responsibility for the provision of fire services.
      Hertfordshire County Council’s increase in 2004/05 was 5.3%

8.9   A budget which passports the increase in the Schools FSS, with all other
      services at standstill and taking account of efficiency savings identified
      would result in a council tax increase of 4.4% to 6.6%. If the budget was
      set above or below this level a change of £3.8 million in net expenditure
      would change council tax by 1%.


9.    Capital Programme

9.1   Under the prudential code for capital, local authorities now have the option
      to consider additional borrowing, above the level supported by
      government, taking into account council investment priorities, the impact of
      additional borrowing on council tax, and on the level of the council’s
      external debt. In setting the revenue and capital budgets in February the
      Council will have to review the prudential indicators agreed when the
      2004/05 budget was approved. These indicators set out the incremental
      impact of capital plans on council tax, the planned ratio of financing costs
      to total revenue expenditure, planned capital financing requirement, and
      limits on the amount of external debt the council will incur. These
      indicators, together with a range of decisions relating to the interest rate
      and maturity structure of borrowing will be considered by Cabinet in
      January and formalised in the budget report to Council in February.

9.2   The resource figures presented in this report assume a level of
      unsupported borrowing totalling £18.3 million over the next two years.
      This stems from the Cabinet decisions in summer 2004 to support a
      number of priority capital projects, many of which required forward funding
      to progress on the ground, pending the release of related capital receipts.
      It is estimated that each £10 million of unsupported borrowing would add
      0.23% to annual council tax bills in a full year.

                                        15
9.3    To inform consideration of the appropriate level of capital programme
       investment over future years, the following sections provide information on
       the funding available from all sources and on the level of capital bids put
       forward by services.


10.    Capital Resources

10.1   The latest estimate of capital resources to support general capital
       expenditure (including annual provisions) is outlined below in Table 6.


       Table 6: Latest Estimates of general Capital Resources

                                              2005/06     2006/07      2007/08
                                                £’000       £’000        £’000

Capital Receipts                               17,083       9,300         9,300
Direct Revenue Contributions                    8,550       8,550         8,550
Capital Payback Contributions                   3,357       4,282         4,952
Supported Capital Expenditure(SCE)              1,700       1,700         1,700
Unsupported Borrowing                          10,000       8,300

Total General Capital Resources                40,690      32,132       24,502


10.2   The projections of available receipts shown in Table 6 are an estimate of
       the sustainable level of receipts that could be achieved over the period,
       based on the latest information about potential sales and exclude those
       receipts associated with self financing schemes programmed for 2005/06
       onwards. However, estimates do assume that income from land sales
       associated with schools reorganisation projects in Borehamwood are
       received in the early years of the planning period.

10.3   Historically, the majority of the annual provisions programme has been
       financed from direct contributions from the revenue budget, and the
       revenue budget figures presented in this report assume that this level of
       revenue support for capital continues in future years.

10.4   Estimates of the capital payback available to support the programme
       assume that all payback from services relating to the agreed capital
       programme up to and including the 2004/05 programme are recycled into
       new capital investment.

10.5   Government support for local authority borrowing shown in Table 6
       (Supported Capital Expenditure) is based on announcements made to

                                         16
date, with one exception. An estimate has been included for the
outstanding announcement.




                                17
10.6   Table 6 includes an assumption of £10 million of unsupported borrowing in
       2005/06 and £8.3 million in 2006/07. These assumptions relate to Cabinet
       decisions taken in summer 2004 to support various priority schools
       projects, Lintons Learning Disability Hostel, and to forward fund the
       replacement fire stations projects at Watford and St Albans. The majority
       of this unsupported borrowing is intended to be relatively short lived, as
       capital receipts associated with several of these projects are expected to
       be released within the next few years.


11.    Capital Expenditure

11.1   Total capital bids for inclusion in the Council’s general programme
       (including annual provisions) amount to £61.8 million for 2005/06 and so
       the Cabinet need to agree a forward programme of priority schemes that is
       deemed to be affordable and sustainable in the context of the new
       prudential framework of control. Services have developed and prioritised
       their bids in consultation with the relevant executive members over the
       past few months and the Executive Member for Resources has prepared a
       draft corporate capital programme for Cabinet consideration which will be
       presented to this meeting. All bids that have been put forward are listed in
       this report at Appendix 10. Detailed business cases can be obtained by
       contacting Mike Woodward in Corporate Finance (01992 555332).

11.2   As well as bids for major capital schemes, bids for inclusion in the
       Council’s capital programme also include sums to cover ongoing
       programmes of minor capital works, known as annual provisions. Annual
       provisions spending covers relatively small projects that do have a lasting
       value over a number of years, such as purchase of plant and equipment,
       boiler replacements, roofing repairs and minor refurbishments. Annual
       provisions bids are listed in Appendix 11.

11.3   The Council’s capital programme also includes externally funded projects,
       usually where government provides specific funding through capital grants
       or supported borrowing in relation to specified projects or programmes.
       The majority of such ring-fenced funding relates to Schools projects and
       the Local Transport Plan schemes. The forward programme for externally
       funded schemes, based on approvals already known is presented in
       Appendix 11. Many of these approvals are announced on an annual
       basis, so figures presented for future years are likely to be significantly
       understated at this stage.




                                         18
11.4   The overall capital programme also includes investment in self financing /
       replacement asset schemes and these are listed in Appendix 10. To give
       as fuller picture as possible at this stage, the Appendix lists all schemes
       with approval in principle, including several which require further detailed
       reports to Cabinet to seek approval for final budgets and cashflow plans.
       In assessing appropriate prudential limits for the council’s future debt
       levels, it will be necessary to take careful account of the potential cash
       flow risks associated with the self financing programme.


12.    Reserves

12.1   General reserves are currently projected to be £20 million by the start of
       April 2006. The latest 2004/05 monitoring position suggests that balances
       may increase further but that is dependent on the resolution of a number
       of outstanding claims on the contingency.

12.2   The Council will need to consider the expected impact on balances of
       2005/06 budget decisions at its February meeting. At the time the 2004/05
       budget a level of balances of £15 million was considered adequate to
       cover the assessed risks for the financial years. In accordance with the
       Local Government Act 2003, by the time the budget is set the Finance
       Director will need to conclude a review of the adequacy of reserves taking
       into account the impact of the corporate risk analysis discussed elsewhere
       on this agenda.

12.3   As part of the budget preparation process Cabinet should have regard to
       specific reserves. These specific reserves are described in Appendix 12,
       together with estimated opening and closing balances for 2005/06.


13.    Public Consultation on Budget and Spending Priorities

13.1   Response rate

       We received an excellent response from HertsDirect: 2,374 people replied
       to the newspaper survey and 343 people responded on-line (2717 total).
       The Panel survey yielded a 58% response - 1,371 replies. A breakdown of
       the responses is attached in Appendix 13.




                                         19
13.2   Key messages

       Council Tax levels

       The public support setting council tax at a level which will allow some
       service improvements. 46% of the panel and 57% of the HertsDirect
       respondents gave this response in preference to setting the tax at a level
       which results in service cuts, or a level which avoids cuts, but doesn’t
       allow improvements.


       Service spending priorities

       Both Panel and HertsDirect respondents identified the following services
       as priorities for improvement (in order of preference)

            Reducing crime
            Maintaining roads
            Supporting elderly people
            Supporting children at risk of harm
            Schools

       Services which the Council could spend less on

       This question was answered only by those who believe the Council should
       keep the tax as low as possible.

            Libraries
            Road Safety
            Supporting carers
            Schools

       Workshop findings

       Workshop attendees identified the following service priorities:

            Services for children and young people (inc. preventative,
             parenting, outreach)
            Traffic management and highways maintenance
            Care of the elderly
            Fire and rescue

       There were no services which the workshop was prepared to cut.




                                         20
      Topline findings from MORI from the Citizen’s Panel and from HertsDirect
      are attached. Members are requested to contact
      alison.adams@hertscc.gov.uk (comnet ext 25642) if they require full
      reports when they become available in December.




Background information referred to by the author.


Provisional Local Authority Finance Settlement 2005/06

2004 Spending Review: Stability, Security and Opportunity for All. H M
Treasury, July 2004.




                                       21
                                                               APPENDIX 1

                  PORTFOLIO: ADULT CARE SERVICES

            PROPOSED RESOURCE BUDGET 2005/06 - 2008/09


Chief Officer: Sarah Pickup, Director of Adult Care Services (01992 556300)

Contact for queries: Ralph Paddock, Head of Finance, Adult Care Services
                                    (01992 556354)


APPENDIX 1 - CONTENTS

A     Commentary
B     Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
      Budget
C     Pressures for Change
D     Savings




                                    22
                                                                    APPENDIX 1A

                                COMMENTARY

1.1   This Appendix outlines details of the proposals for a revenue budget of
      £198.390 million (excluding capital charges and the FRS17 pension
      adjustment) for Adult Care Services.

1.2   The cashable efficiency savings included in the proposals are summarised
      below with fuller details provided in the following appendices:

Cashable Efficiency Savings                    £’000
Reduction in sickness                          140
Enabling homecare                               50
Business Process Review                         80
Total                                          270


1.3   There continues to be severe pressures on the Adult Care Services
      budget. It is expected that these should be backed up by a large increase
      in the formula spending share received from government for personal
      social services. The year-on-year change for 2005/06, detailed in the 2004
      Spending Review, shows that the Personal Social Services Formula
      Spending Share (PSS FSS) will increase by 6.8 per cent after adjusting for
      funding transfers. It is yet to be seen how this will be reflected in terms of
      FSS and grant to the County Council, but it does reflect a recognition that
      the pressures on the Service exist and are to be funded in the national
      formula. This is by far the highest increase in formula spending share of all
      service blocks.

1.4   The key continuing pressures on the Adult Care Services budget are as
      follows:

         There is continuing demographic pressure on all budget areas. The
          largest client group is those aged over 85 and the number of such
          people in Hertfordshire is expected to increase by 4.26 per cent over
          the year. The number of adults with learning disabilities is expected to
          increase by 60 in 2005/06 and most of these will receive a service from
          the County Council. Similarly, there are year on year increases in the
          numbers of people with mental health problems and with physical
          disabilities.

         The service continues to face increasing targets that have to be met.
          The elderly and physical disability staffing review is in part a response
          to this and the need to meet tougher assessment targets, ensuring that
          all assessments are completed within 28 days.




                                        23
                                                  APPENDIX 1A (continued)

   Person centred care and the increased registration standards that
    Adult Care Services and the private and voluntary sector suppliers
    have to meet is also a major challenge. This continues to put pressure
    on prices and, in terms of the accommodation the County Council
    owns, also results in cost pressures. For example, to meet Supported
    Living standards, there is a possibility that the number of beds will
    reduce and this will mean ultimately that higher prices will have to be
    paid in the private and voluntary sector, or more accommodation will
    have to be provided using County Council capital.

   Adult Care Services continue to operate in a challenging environment
    in which to recruit and retain staff, particularly in terms of care workers.
    This leads to particularly high vacancy levels in supporting people in
    accommodation and many recruitment initiatives have to take place to
    avoid an increasing dependency on agency staff.




                                   24
                                                                 APPENDIX 1B

                  REVENUE BUDGET 2005/06 - 2008/09
            AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                      ADULT CARE SERVICES

                                              2005/06 2006/07 2007/08 2008/09
                                               £'000   £'000   £'000   £'000

2004/05 Original Budget                       182,782 182,782 182,782 182,782
Technical Adjustments 2004/05                   (140)   (140)   (140)   (140)
2004/05 Adjusted Budget                       182,642 182,642 182,642 182,642
Technical Adjustments 2005/06                   5,200   9,826 10,183   10,513
Inflation                                       5,069   5,069   5,069   5,069
Pressures for Change:
Full Year Effect of Previous Efficiencies
  1. Home Care Externalisation                  (189)    (290)    (350)   (400)
Demographic Change
  1. Elderly                                    2,171    4,342   6,513    8,684
  2. Learning Disability                        1,885    3,770   5,655    7,540
  3. Physical Disability                          789    1,578   2,367    3,156
  4. Mental Health                                473      946   1,419    1,892
Legislative Change
  1. Introduction of national minimum              40      80      120     160
      standards
Other Pressures
  1. Business Rates                                (3)     13       23      33
  2. Increments                                    44      46       46      46
  3. Revenue Effects of Capital                    50     143      236     236
  4. Revenue Effects of Telecomms                  74     122      173     224
  5. Capital Payback                              262     297      297     247
  6. Management fee – Registration of             120     120      120     120
      Hostels
  7. Regrading of in house unit managers’          30      60       60      60
      posts
  8. Single Status - Assimilation of Manual         3       3        3         3
      Worker Grades
Cashable Efficiency Savings
  1. Reduction in sickness                      (140)    (140)    (140)   (140)
  2. Enabling homecare                           (50)    (100)    (150)   (200)
  3. Business Process Review                     (80)    (160)    (160)   (160)

2005/06 STANDSTILL BUDGET                     198,390 208,367 214,126 219,725




                                       25
                                                                 APPENDIX 1C
                           PRESSURES FOR CHANGE

Full Year Effect of Previous Efficiencies
                                                                  £’000
1. Home care externalisation
   The in house home care service was transferred to               - 189   2005/06
   Leonard Cheshire on 1 February 2000. The estimated              - 290   2006/07
   savings are based on the same assumptions as in this            - 350   2007/08
   year in respect of the rate at which transferred staff are      - 400   2008/09
   leaving Leonard Cheshire.

Demographic Changes

Unavoidable increased service demands result in the
following pressures for each of the four main client groups.

1. Elderly                                                       + 2,171   2005/06
This reflects an increase of over 4% in the number of people     + 4,342   2006/07
aged over 85, who represent our main client group.               + 6,513   2007/08
                                                                 + 8,684   2008/09

2. Learning Disability                                           + 1,885   2005/06
This reflects the continuing increase in the number and cost     + 3,770   2006/07
of placements for learning disabled clients. A net increase of   + 5,655   2007/08
40 per year has been recognised following a study in 1999,       + 7,540   2008/09
which remains prevalent.

3. Physical Disability                                            +789     2005/06
This reflects the continuing in the number and cost of           +1,578    2006/07
placements for physically disabled clients.                      +2,367    2007/08
                                                                 +3,156    2008/09

4. Mental Health                                                  +473     2005/06
This reflects the continuing in the number and cost of            +946     2006/07
placements for mental health clients.                            +1,419    2007/08
                                                                 +1,892    2008/09

Legislative Changes

1. Introduction on national minimum standards
   This change is being phased in between now and 2007.             +40    2005/06
   Providers will increase their weekly rates to reflect, for       +80    2006/07
   example, room sizes and en-suite specifications in              +120    2007/08
   independent sector residential homes.                           +160    2008/09




                                         26
                                                           APPENDIX 1C (continued)

Other Pressures
                                                                      £’000

1. Business Rates
   This relates to the estimated additional costs arising from          -3    2005/06
   the 2005 revaluation of property for rating purposes.               +13    2006/07
                                                                       +23    2007/08
                                                                       +33    2008/09

2. Increments
   This relates to the incremental progression of staff.               +44    2005/06
                                                                       +46    2006/07
                                                                              onwards

3. Revenue Effects of Capital
   These are the revenue consequences of undertaking                   + 50   2005/06
   capital works within the agreed capital programme.                 + 143   2006/07
                                                                      + 236   2007/08
                                                                              onwards

4. Revenue Effects of Telecomms
   The department’s share of the revenue consequences of               + 74   2005/06
   undertaking corporate telecommunications capital works             + 122   2006/07
   within the agreed capital programme and the                        + 173   2007/08
   Telecommunications Infrastructure Fund.                            + 224   2008/09

5. Capital Payback
   Payback associated with the general capital programme.             + 262   2005/06
                                                                      + 297   2006/07
                                                                      + 297   2007/08
                                                                      + 247   2008/09

6. Management Fee – Registration of Hostels
   A Management Fee will be payable to Aldwyck Housing                + 120   2005/06
   Association as a consequence of the transfer of the                        onwards
   property management function to the Housing Association
   in respect of in house learning disability hostels and group
   homes.

7. Regrading of in house unit managers’ posts
   A review of the grading of certain in house unit managers’          + 30   2005/06
   posts has resulted in additional staffing costs being               + 60   2006/07
   incurred in 2004/05 and subsequent years.                                  onwards




                                         27
                                                    APPENDIX 1C (continued)


                                                               £’000
8. Single Status – Assimilation of Manual Worker Grades
   Costs arising from the assimilation of former manual          +3    2005/06
   workers onto the existing HCC grading scheme as part of             onwards
   the national single status agreement.




                                      28
                                                                   APPENDIX 1D

                                      SAVINGS

Cashable Efficiency Savings
                                                                    £’000
1. Reduction in sickness
   The Marsh Project on sickness management estimates               - 140    2005/06
   savings throughout the County Council of a minimum of                     onwards
   10%. The current cost of sickness in Adult Care Services
   is estimated at £1.8m, of which £1.4m is in day and in-
   house domicilliary, where budgets contain provision for
   cover. A saving of £140,000 is therefore reasonable.
   Adult Care Services spend currently over £6m in a year on
   agency staff.

2. Enabling Homecare
   The homecare pilot which consisted of 30 clients included          - 50   2005/06
   25 (83%) who completed the course and the estimated              - 100    2006/07
   annual reduction in their costs net of the enablement            - 150    2007/08
   service was £956 per client. The £956 could be increased         - 200    2008/09
   by improved commissioning but reduced by loss of
   charging income (approximately 10%). An estimated
   saving of £1,000 per client has therefore been assumed.
   It is proposed to develop the scheme further in 2 areas
   from January 2005 and that will involve an estimated 120
   clients over the year. If 83% of the clients complete the
   course, it is expected that there would be a saving of
   £1,000 each in a full year. The full year saving could be
   £100,000, but as clients will be joining the scheme
   throughout 2005/06, the saving for that year is estimated at
   half of £100,000 i.e. £50,000.
   In 2006/07, the savings will be £100,000, plus possibly
   savings from other areas if and when the scheme is rolled
   out further. This is part of a wider new model for homecare
   and there are risks involved in being able to commission
   the scheme.

3. Business Process Review
   It is anticipated that significant savings could be generated      - 80   2005/06
   by the review of the department’s business process. For          - 160    2006/07
   2005/06, it is considered reasonable to include £80,000,                  onwards
   which is approximately the cost of 10% of Finance
   Assistant posts.




                                         29
                                                      APPENDIX 1D (continued)

Non Cashable Efficiency Savings                                    £’000

1. Homecare Electronic Monitoring
   The further development of Homecare Electronic                  - 800    2005/06
   Monitoring has resulted in an increase in the gap between                onwards
   the number of commissioned homecare hours and the
   number of hours of service delivered from 5% to 9%. This
   “saving” has been spent on meeting the increased
   demand for homecare beyond that included for
   demography or transferred from residential care. This
   primarily (probably) arises from Fairer Access to Care.
   The effect of an increase of 1% in suspensions is
   £200,000; therefore this is a £800,000 non-cashable
   saving.

2. Transfer of Learning Disability properties to Aldwyck /
   Domiciliary Care Model                                         - 2,000   2005/06
                                                                            onwards
   ACS have a portfolio of 36 (subject to final confirmation)
   properties that are used to provide accommodation for
   service users with a Learning Disability. These properties
   are currently managed in house and include 12 hostels,
   each with up to 30 residents who have their own room or
   individual flat, and 24 group homes. The group homes
   are mainly three bedroomed houses where service users
   have their own bedroom but share a kitchen and other
   living areas.
   For a number of years ACS have considered these
   properties as Supported Living. This is a model of care
   where residents are encouraged to be as independent as
   possible. This includes having a licence agreement to
   occupy the accommodation and paying rent as would be
   the case if the service user was living in private rented
   accommodation. As the majority of service users claim
   Housing Benefit towards the cost of their rent and are able
   to retain more of their benefits than in registered
   residential care most service users are significantly better
   off financially under this model. (Around £40 a week for
   most service users, equivalent to £600,000 a year in
   total). Under this model HCC also receives just under
   £1.4million in Housing Benefit a year. Should ACS have
   to register these properties, as would probably be the
   case should the transfer not go ahead, the net loss of
   Housing Benefit and associated Supporting People
   income would be approximately £2 million.
   Before the introduction of the Care Standards Act 2000
   local authority accommodation did not have to be
   registered. This changed when the relevant provisions of

                                        30
the Care Standards Act came into force. This stated that
units had to be registered if an establishment was
providing accommodation together with personal or
nursing care. The CSA also created the National Care
Standards Commission (NCSC), who themselves have
become part of the Commission for Social Care
Inspection (CSCI) from April 2004.




                                   31
                                                            APPENDIX 2 (1)

PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES – EDUCATION - SCHOOLS

            PROPOSED RESOURCE BUDGET 2005/06 - 2008/09


Chief Officer: John Harris, Director of Children, Schools & Families
                           (01992 555700)

Contact for queries: Claire Cook, Acting Head of Central Finance (CSF)
                           (01992 555737)


APPENDIX 2 (1) - CONTENTS

A     Commentary
B     Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
      Budget
C     Pressures for Change
D     Savings




                                     32
                                                              APPENDIX 2 (1) A

                                COMMENTARY

1.1   This Appendix outlines details of the proposals for a revenue budget of
      £530.692 million (excluding capital charges and the FR17 Pension
      adjustment) for Children, Schools and Families (Schools).

1.2   The cashable efficiency savings included in the proposals are summarised
      below with fuller details provided in the following appendices:

Cashable Efficiency Savings                         £’000
Capital Expenditure funded from revenue               625
On-line admissions                                     20
School Amalgamations                                  337
Total                                                 982

1.3   The schools budget must conform to a national framework established by
      the DfES, which provides for a Minimum Funding Guarantee (MFG) and
      the requirement for the Authority to fully passport the increase in Schools
      Formula Spending Share (SFSS). The Authority will also receive £3.904m
      of Targeted Transitional Support Grant (TTSG) in 2005/06 to assist those
      schools deemed to be in greatest financial difficulty. Proposals for the use
      of grant will be drawn up in consultation with the Schools Forum in the
      Autumn term. The proposals require DfES approval against nationally set
      criteria.

1.4   The interaction of the Minimum Funding Guarantee (MFG) with the
      Hertfordshire formula funding and pupil number changes, can produce
      perverse results and lock in protection funding that was intended to reduce
      over time. The LEA can apply for Section 28 exemptions to the MFG,
      which the DfES will consider on the merits of available cases. We have
      sought the views of the Schools Forum on a number of such anomalies
      and they have agreed that we should approach the DfES to seek
      exemption for these items. These items total £1.8m.

1.5   We have calculated the cost of operation of the MFG over and above the
      provision for inflation, pressures etc. This is estimated to total £3m in
      2005/06. The cost of the MFG (excluding the section 28 exemptions), the
      pressures set out in the schedules, the uncertainty related to the cost of
      balance of risks insurance and the growth in standards fund contributions
      (described in 1.8) would result in a Schools Budget of £532.1m, £1.4m
      above the level for passporting. If the DfES do not grant the exemptions,
      or a significant proportion of them, the authority would need to consider
      further action.

1.6   If the exemptions were granted this would leave a small amount of
      headroom available, an estimated £0.4m. For 2005/06 the majority of
      schools are on the MFG and are thus receiving protection. As more
      funding is applied to the formula budget shares the protection reduces on
      a gearing ratio of approximately 1:0.6. This ratio changes as more funding
      is applied and also depends on the extent to which the DfES agree the
      Section 28 exemptions.
                                        33
                                                            APPENDIX 2 (1) A (cont’d)


      We have modelled the impact of an extra £2m of growth to the formula.
      This has the impact of reducing the MFG and 3% protection by £1.2m,
      leaving a net cost of £0.8m. There is potential flexibility of £0.5m within
      the schools contingency allocation, which together with the potential
      headroom, could produce this resource. However, as part of our TTSG
      submission we are proposing to use an element of this grant, £0.8m, to
      support the 3% contingency element within the formula. The DfES
      approved a similar use in 2004/05. If the DfES do not accept this proposal
      in 2005/06, this would be a potential call on any headroom. We are
      required to consult with the Schools Forum on the use of any available
      headroom, and the options available, before the end of December 2004.

1.7   Increases in the central spend part of the schools budget are limited and
      must not exceed the level of increase in the amounts delegated to schools,
      except in exceptional circumstances. The Authority would be able to make
      an application to the Secretary of State if it was likely to exceed that limit.
      We estimate that if the efficiencies described in paragraph 1.2 are applied
      we will be able to meet the central limit target for 2005/06.

1.8   Announcements on the 2005/06 Standards Fund Programme have been
      made within the last few weeks. There is the requirement for increased
      contributions to the grant, in particular for the School Development Grant
      and ICT in Schools programme, of £451k. The DfES have confirmed that
      this sum should be reviewed against available headroom on the School
      Budget. There has been at the same time a significant reduction of the
      grant for Ethnic Minority Achievement, a significant proportion of which
      would fall against the schools block. The Schools Forum has indicated
      that they would support continuation of Schools Block contribution to this
      grant at the 2004/05 levels (£239k). The total of this package would be
      £690k in 2005/06.

1.9   The total level of pressures on central spend are projected to be £1.516m
      in 2005/06. These include increases in both the number of pupils with
      autism and the level of excluded pupils, particularly those at KS4 with
      complex needs, and the impact of universal 3-year old provision on the
      SEN budget. Legislative changes include those in relation to gas, where
      further investment is required in kitchen repairs and maintenance, the
      requirement to co-ordinate admissions arrangements with other
      authorities, and the Care Standards and European Working Time directive,
      which impact on staffing costs in residential schools.




                                        34
                                                       APPENDIX 2 (1) A (cont’d)


1.10   Funding for schools is set in the context of an increasing level of school
       revenue balances, by £5.1m as at the 31 March 2004 to £35.3m, despite a
       predicted fall in balances in the same period. We estimate that the
       revenue and capital balances could total £40 million at 31 March 2005.
       This is set against a greater number of schools with deficit balances. The
       application of TTSG in 2004/05 has enabled financial recovery for those
       schools in deficit. The picture for Hertfordshire is accordance with the
       national trends. The Schools Forum has asked officers to carry out further
       work on the level of balances in schools, particularly for those schools with
       high balances.

1.11   We are consulting with schools on a limited number of formula changes.
       The consultation ends on 17 December 2004.




                                        35
                                                                   APPENDIX 2(1)B

                  REVENUE BUDGET 2005/06 - 2008/09
            AND MOVEMENT FROM CURRENT YEAR’S BUDGET
              CHILDREN, SCHOOLS & FAMILIES (SCHOOLS)

                                           2005/06   2006/07   2007/08   2008/09
                                           £’000     £’000     £’000     £’000
2004/05 Original Budget                      507,960   507,960   507,960   507,960
Technical Adjustments 2004/05                     31        31        31        31
2004/05 Adjusted Budget                      507,991   507,991   507,991   507,991
Technical Adjustments 2005/06                      0         0         0         0
Inflation                                     17,455    17,455    17,455    17,455
Pressures for Change:
 Demographic Change
   1. Autism                                       230       363          413       413
   2. Provision for excluded pupils                225       225          150        75
   3. Alternative provision at KS4                  54        90           90        90
   4. Speech and language bases                      0        60          128       128
   5. Changes in pupil numbers                 (1,198)   (2,404)      (4,430)   (6,078)
 Legislative Change
   1. Workforce Reform                           2,125     3,643       3,643      3,643
   2. Care Standards                               100       100         100        100
   3.School Kitchens – Repairs and                 300       300         300        300
   maintenance
   4.Support schemes for 3-year olds              120       120          120         120
   5. Playgroups – support for children           131       131          131         131
   with AEN
   6. Co-ordination of admission                  100       100          100         100
   arrangements
   7. Operation of the Minimum                   1,200     1,200       1,200      1,200
   Funding Guarantee
 Other Pressures
   1. Capital payback                             386       328          328         328
   2. Single status – assimilation of             127       127          127         127
   manual workers grades
   3. Business Rates                              767      1,172       1,404      1,660
   4. Management Information                       60          0           0          0
   Contract
 Cashable Efficiency Savings
   1. Capital Expenditure funded from
                                                 (625)     (625)       (625)        (625)
   Revenue
   2. Online Admissions                           (20)      (20)         (20)        (20)
  3. School Amalgamations                        (337)     (518)       (703)        (950)

2005/06 STANDSTILL BUDGET                      529,191   529,838     527,902    526,188
Additional Resources to meet
                                                 1,501     1,501       1,501      1,501
passporting requirement in 2005/06

2005/06 RESULTANT BUDGET                       530,692   531,339     529,403    527,689

                                          36
                                                                    APPENDIX 2(1)C

                               PRESSURES FOR CHANGE


Demographic Changes                                                         £’000

1. Autism
   In order to meet the growing number (nos) of pupils with                + 230     2005/06
   autism, there is a requirement to develop additional provision          + 363     2006/07
   in both mainstream primary and secondary bases and                      + 413     2007/08
   additional places in five special schools. Alongside this would                   onwards
   be the development of additional peripatetic mainstream
   support.

2. Provision for Excluded Pupils)
   Increased number (nos) of excluded pupils, and those at KS4             + 225     2005/06
   with complex needs who cannot be integrated into                        + 225     2006/07
   mainstream provision, has put pressure on the availability of           + 150     2007/08
   places within Education Support Centres and Youth                       + 75      2008/09
   Programme Units. We expect the Behaviour and
   Achievement Strategy to reduce this requirement in time, but
   there are currently a significant number of pupils outside of
   mainstream provision. The review of work on 14-19
   curriculum should produce a wider range of vocational
   options for these young people.

3. Alternative Provision at KS4
   An alternative vocational programme at Hailey Hall Special              + 54      2005/06
   School is planned to support the increased requirement for              + 90      2006/07
   those pupils at KS4 with complex needs. This scheme would                         onwards
   provide for 12 pupils in the first year and a maximum of 24 in
   the second year.

4. Speech and Language Bases
   This additional speech and language base would support                  + 0       2005/06
   additional provision in the North area to deal with the                 + 60      2006/07
   increased numbers requiring speech and language therapy.                + 128     2007/08
                                                                                     onwards

5. Changes in Pupil Numbers
   Impact of the changes in AWPU and other pupil led funding in            -1,198    2005/06
   school budget shares. The 3% budget share protection may                -2,404    2006/07
   impact on the level of savings.                                         -4,430    2007/08
                                                                           -6,078    2008/09




                                        37
                                                         APPENDIX 2(1)C (cont’d)

Legislative Changes                                                     £’000

1. Workforce Reform
   These figures are based on the DfES assessment of the               +2,125      2005/06
   impact of workforce reform on school budget shares (1% of           +3,643      2006/07
   nursery and primary school budget shares) from 1 September                      onwards
   2005.

2. Care Standards
   Impact of Care Standards and European Working Directives             + 100      2005/06
   on employment contracts for staff in residential special                        onwards
   schools and requirement for additional working night staff.

3. School Kitchens – Repairs and Maintenance
   New legislation regarding gas regulations will result in             + 300      2005/06
   additional costs on kitchen repair and maintenance in order to                  onwards
   ensure that school kitchens are up to the new standards
   required by the regulations.

4. Support Scheme for Three Year Olds
   Ofsted now requires that "rising three" year old children must       + 120      2005/06
   now have the same staff:child ratio as two year olds (1:4).                     onwards
   They had previously been deemed to be three year olds
   (required ratio 1:8). This will have an impact on the current
   funding for each free nursery place provided under the
   support scheme.

5. Playgroups - Support for Children with AEN
   The requirement for universal provision for all three year olds      + 131      2005/06
   has had an impact on the additional support required for                        onwards
   children with additional needs attending private or voluntary
   nursery settings.

6. Co-ordination of Admission arrangements
   Implications of the co-ordinated schemes with respect to             + 100      2005/06
   data/information transfer with neighbouring LEAs.                               onwards

7. Operation of the Minimum Funding Guarantee
   The operation of the minimum funding guarantee is estimated         + 1,200     2005/06
   to cost the authority £1.2m above the provision for inflation                   onwards
   and the costs of workforce reform. This does not include
   those items for which we will be seeking exemption from the
   DfES (a further £1.8m).




                                         38
                                                         APPENDIX 2(1)C (cont’d)

Other Pressures                                                          £’000

1. Capital Payback
   Payback associated with the general capital programme                + 386      2005/06
                                                                        + 328      2006/07
                                                                                   onwards

2. Single Status – Assimilation of Manual Workers Grades
   Costs arising from the assimilation of manual workers onto           + 127      2005/06
   the existing HCC grading scheme as part of the national                         onwards
   single status agreement.

3. Business Rates
   This relates to the estimated additional costs arising from the      + 767      2005/06
   2005 revaluation of property for a rating purposes.                 + 1,172     2006/07
                                                                       + 1,404     2007/08
                                                                       + 1,660     2008/09
4. Management Information Contract
   Due to the significant change and development in the way               + 60     2005/06
   schools now manage their information and data, and the                  +0      2006/07
   need to share increasing volumes of data with the DfES and                      onwards
   other agencies, we need to test that our MIS systems will
   support schools with the changing requirements.




                                         39
                                                             APPENDIX 2 (1) D

                                        SAVINGS
                                                                      £’000
Cashable Efficiency Savings

1. Capital Expenditure funded from Revenue
   Increased contributions made by schools towards the cost of        - 625      2005/06
   capital repairs and maintenance.                                              onwards

2. On-line admissions
   The introduction of the on-line admissions system, with                - 20   2005/06
   support from specific government grant, has brought                           onwards
   improved processing and administrative costs.

3. School Amalgamations
   Savings in lump sum and premises related funding in school         -   337    2005/06
   budget shares as a result of school reorganisations. This          -   518    2006/07
   figure is subject to amendment in light of changes to the          -   703    2007/08
   Stevenage reorganisation proposals.                                -   950    2008/09




                                       40
41
                                                            APPENDIX 2 (2)

    PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES – EDUCATION - NON-
                            SCHOOLS

            PROPOSED RESOURCE BUDGET 2005/06 - 2008/09


Chief Officer: John Harris, Director of Children, Schools & Families
                           (01992 555700)

Contact for queries: Claire Cook, Acting Head of Central Finance (CSF)
                           (01992 555737)



APPENDIX 2 (2) - CONTENTS

A      Commentary
B      Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
       Budget
C      Pressures for Change
D      Savings




                                     42
                                                                APPENDIX 2 (2)A

                                COMMENTARY

1.1   This Appendix outlines details of the proposals for a revenue budget of
      £69.633 million (excluding capital charges and the FRS17 Pension
      adjustment) for Children Schools and Families Education (Non-Schools).

1.2   The cashable efficiency savings included in the proposals are summarised
      below with fuller details provided in the following appendices:

Cashable Efficiency Savings                          £’000
Long-term efficiency gains                             806
Charging for services                                  139
Youth Service                                           54
IT and Infrastructure                                   53
Childminding                                           100
Total                                                1,152

1.3   Proposed savings against this area of the CSF budget include these within
      core activities in Standards and School Effectiveness Division and
      Operations Division (Special Educational Needs). These savings are
      intended to avoid any impact on front line services. Other savings are
      proposed on Youth Service through a rationalisation and more focused
      delivery of projects across the County. These savings will be undertaken
      in the context of the Authority's Youth Strategy.

1.4   Particular issues for the LEA block relate to the risks around the delivery of
      the adult education programme, particularly given the forthcoming
      inspection by the Adult Learning Inspectorate in the Autumn term. It is
      important that the eligibility of expenditure for support grant is put on a
      firmer footage. The pressure on the 2004/05 budget from this area has
      already been noted by Cabinet.

1.5   The Standards Fund announcements for 2005/06 have brought significant
      changes in the funding for Ethnic Minority Achievement Grant. This year
      has seen the shift towards a more needs based grant, which will be
      introduced over 2 years. The impact for Hertfordshire is a reduction of the
      grant from £1.136m in 2004/05 by £282k in 2005/06, with a further
      reduction of £281k in 2006/07. We are currently reviewing how we can
      reduce our expenditure in light of the reduced grant. The DfES are also
      indicating proposals for a new grant system to be introduced from
      2006/07, details of which will be produced early in 2005.




                                        43
                                                 APPENDIX 2 (2)A (continued)


1.6   There are a number of uncertainties for the CSF non schools budget,
      particularly around the Youth Charter and the future for Youth Funding.
      The green paper on Youth Services (due Autumn 2004) should provide
      more clarity about this area of the budget. The impact of the introduction
      of the new shorter inspections for schools (at 2 days notice) and changes
      in the Ofsted framework are unclear. In addition, the impact of the DfES 5
      year plan, on the schools visit programme, including the new strategy for
      school inspections are areas of uncertainty.

1.7   There are also a number of potential costs relating to the school re-
      organisations, mainly comprising redundancies and pension, security
      costs for out of use sites and new uniforms. Whilst we will look to re-
      deploy staff wherever possible, and therefore minimise these costs, they
      could be significant.




                                      44
                                                                      APPENDIX 2(2)B

                REVENUE BUDGET 2005/06 - 2008/09
          AND MOVEMENT FROM CURRENT YEAR’S BUDGET
   CHILDREN, SCHOOLS AND FAMILIES (EDUCATION – NON SCHOOLS)

                                                2005/06    2006/07      2007/08    2008/09
                                                  £’000      £’000        £’000      £’000

2004/05 Original Budget                          67,005     67,005       67,005     67,005
Technical Adjustments 2004/05                        (2)        (2)          (2)        (2)
2004/05 Adjusted Budget                          67,003     67,003       67,003     67,003
Technical Adjustments 2005/06                          0          0            0          0
Inflation                                         1,800      1,800        1,800      1,800
Pressures for Change:
 Previous Policy Decisions
   1. Borehamwood Re-organisation                 (124)      (124)        (124)        (124)
 Legislative Change
   1. Universal provision for all 3-year              3          3            3           3
      olds
   2. Mediation                                      10         10           10          10
   3. Early closure of accounts                       6          6            6           6
 Other Pressures
   1. Adult and Community Learning                  531        531          531         531
   2. Regrading of transport and                     20         20           20          20
      admission officers
   3. Travel Eligibility                            100        100          100         100
   4. Revenue Effects of Telecoms                   129        210          293         377
   5. Home to School Transport –                    265        265          265         265
      Volume increases Mainstream
   6. Home to School Transport –                    380        760        1,140      1,140
      Volume increases SEN
   7. Changes in the number of                      616        616          616         616
      schools days
   8. Capital Payback                                11         11           11          11
   9. Increments                                     35         50           50          50
Cashable Efficiency Savings
   1. Long-term efficiency gains                  (806)      (806)        (806)        (806)
   2. Charging for services                       (139)      (139)        (139)        (139)
   3. Youth Service                                (54)       (54)         (54)         (54)
   4. IT and Infrastructure costs                  (53)       (53)         (53)         (53)
   5. Childminding                                (100)      (100)        (100)        (100)

2005/06 STANDSTILL BUDGET                        69,633     70,109       70,572     70,656




                                           45
                                                                   APPENDIX 2(2) C

                               PRESSURES FOR CHANGE

Previous Policy Decisions                                                  £’000

1. Borehamwood Re-Organisation
   The reduction arises from the reversal of transitional costs            - 124     2005/06
   relating to funding closing and opening schools etc that were                     onwards
   occurred in 2003/04.


Legislative Changes

1. Universal Provision for all 3-year olds
   Due to changes in the DfES code of practice, private                      +3      2005/06
   providers have to be funded on an estimated rather than                           onwards
   actual basis. This impacts on the administration of the
   scheme.

2. Mediation
   This is a statutory requirement which has been funded                   + 10      2005/06
   through the Eastern Region SEN Partnership, but this funding                      onwards
   will cease in 2005/06.

3. Early Closure of Accounts                                                + 6      2005/06
   The OPDM requirements for earlier closure of the authority                        onwards
   accounts will impact on the administration of schools annual
   returns.


Other Pressures

1. Adult & Community Learning (ACL)
   Costs related to development of ACL Services to deal with               + 531     2005/06
   current discrepancies in use of ACL grant. Actions to                             onwards
   eliminate the discrepancies will be required as an outcome of
   the forthcoming inspection.

2. Regrading of Transport and Admission Staff
   Costs of regrading of transport and admission staff in                  + 20      2005/06
   Quadrants.                                                                        onwards

3. Travel Eligibility
   Review of the priority areas "Local Schools : Local Children"           + 100     2005/06
   will impact on the assisted travel charges.                                       onwards




                                        46
                                                           APPENDIX 2(2) C (cont’d)

                                                                            £’000
4. Revenue Effects of Telecomms
   This departments share of the revenue consequences of                   + 129      2005/06
   undertaking corporate telecommunications capital works with             + 210      2006/07
   the agreed capital programme.                                           + 293      2007/08
                                                                           + 377      2008/09

5. Home to School Transport – Volume increases: Mainstream
   Anticipated increases in the number of children eligible for            + 265      2005/06
   free transport given pressure on places in certain parts of the                    onwards
   County. This is particularly in the context of continued
   increase in numbers in the voluntary aided sector, where the
   demand for transport is more likely. It is expected that this
   would reach its peak in 2005/06 and remain at this level. The
   integrated transport review led by the Director of CSF, is
   looking to minimise the level of growth in this area and has
   targets for savings from 1 September 2006.

6. Home to School Transport – Volume increases: SEN
   Anticipated increase in the number of children eligible for free         + 380     2005/06
   transport given the current trends of increasing SEN                     + 760     2006/07
   numbers. The integrated transport review led by the Director           + 1,140     2007/08
   of CSF, is looking to minimise the level of growth in this area                    onwards
   and has targets for savings from 1 September 2006.

7. Change in Number of School Days
   Given how Easter falls there were 183 days in 2004/05,                  + 616      2005/06
   against 192 in the previous year, and the budget for that year                     onwards
   on Home to School Transport and Speech Therapy were
   adjusted to take account of this. There are 190 day in
   2005/06 and future years and additional resource is required
   in these areas to take account of the change in number of
   school days.

8. Capital Payback
   Payback associated with the general capital programme.                  + 11       2005/06
                                                                                      onwards

9. Increments
   This relates to the incremental progression of staff.                    + 35      2005/06
                                                                            + 50      2006/07
                                                                                      onwards




                                         47
                                                                     APPENDIX 2(2) D


                            SAVINGS
                                                                             £’000
Cashable Efficiency Savings

1. Long Term Efficiency Gains
   All Divisions of CSF (excluding school budgets) have                      - 806     2005/06
   undertaken an exercise to review where savings may be                               onwards
   made from non-frontline budgets to produce efficiency gains.

2. Charging for Services
   Review of charging policy within Standards and School                     - 139     2005/06
   Effectiveness (SSE) and Development Divisions to ensure                             onwards
   that charges more accurately reflect costs of delivering
   services. This is coupled with an increased volume of
   trading.

3. Youth Service
   A review and consideration of Youth Service projects across               - 54      2005/06
   the County could generate savings in the order of £108k.                            onwards
   About 50% of the saving would be required to relocate some
   of the activities to substantial centres. This would allow
   experienced qualified staff to focus on the most beneficial
   projects.

4. IT Equipment & Infrastructure Costs
   CSF has undertaken an in-depth review of ICT and                          - 53      2005/06
   infrastructure budgets, and as a result we have released                            onwards
   efficiency savings.

5. Childminding
   The introduction of universal provision for all three year olds           - 100     2005/06
   from 1 April 2004, has reduced the take-up of this service.                         onwards




                                         48
49
                                                            APPENDIX 2 (3)

    PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES – CHILDREN SERVICES

            PROPOSED RESOURCE BUDGET 2005/06 - 2008/09


Chief Officer: John Harris, Director of Children, Schools & Families
                            (01992 555700)

Contact for queries: Claire Cook, Acting Head of Central Finance (CSF)
                            (01992 555737)


APPENDIX 2 (3) - CONTENTS

A      Commentary
B      Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
       Budget
C      Pressures for Change
D      Savings




                                     50
                                                                 APPENDIX 2(3) A

                                 COMMENTARY

1.1   This Appendix outlines details of the proposals for a revenue budget of
      £82.689 million (excluding capital charges and the FRS17 Pension
      adjustment) for the Children Schools and Families Children Services
      budget.

1.2   The cashable efficiency savings included in the proposals are summarised
      below with fuller details provided in the following appendices:


                                                     £’000
Full Year Effect of previous efficiencies
Family Support Centre Service                          220
Cashable Efficiency Savings
Long-term efficiency gains                             346
Wrixham Care – replacement on contract                 250
purchase
IT Equipment and infrastructure costs                   22
Leonard Cheshire Contract                              100
Looked After Children Strategy                       1,265
Total                                                2,203


1.3   This part of the service has made significant contributions to the overall
      efficiency target particularly through review of service contracts and core
      activities and review of CSF planned commitments. "Invest to save"
      proposals are included in the area of Looked After Children (LAC) as part
      of the LAC strategy where savings of £1.265m would be re-invested in
      front line services to;

      - To improve the rate of completion of care plans on LAC / adoptions /
        care leavers, an outcome required of the SSI Inspection.

      - To ensure statutory and safe services are fully supported.

      - To invest in Children In Need, particularly looking at the balance of
        statutory to preventative work.

      - To develop a Joint Disability Strategy that develops integrated services
        for children with disabilities.

1.4   We have taken a prudent approach in all savings targets and investment in
      this area. We are looking to reduce the overall pressures as part of this
      strategy.




                                        51
                                                       APPENDIX 2(3) A (cont’d)


1.5   Pressures on the service result from the increasing number of Care
      Leavers, which continue to rise at faster rate than LAC, and the new
      legislation on Care Standards and European Directives which impact on
      staffing costs. A further pressure is the ongoing costs of the Recruitment
      and Retention Strategy for Social Workers, which was approved by
      members earlier this year. The full year costs are estimated to be
      £1.715m by 2007/08.

1.6   Two other potential areas of impact on the budget concern the awaited
      regulations following from the Adoption Act and the Judicial Review on
      Mumby. We expect further information on the adoption regulations, and
      potential grant, in the Autumn term. There is no timeline for the Leeds City
      Council Judicial Review on the Mumby judgement at this time. There is,
      however, the potential for additional payments for kinship carers and for
      these sums to be backdated.

1.7   The Council has the discretion to apply the increase of £495k in the
      Choice Protects and Adoption grants against related pressures for
      2005/06. The Adoption Grant is intended to support the development and
      provision of adoption support services, taking account of the Adoption
      Support Regulations 2003. Services that expand or strengthen local
      authorities fostering services with a view to improving looked after children
      life chances through increasing placement stability and choice are to be
      funded through Choice Protects. A 3 year programme for these grants
      was announced for 2003/04 to 2005/06. Whilst we expect this grant to
      continue, this will need to be reviewed when further details are known for
      future years.




                                       52
                                                                   APPENDIX 2(3) B

                REVENUE BUDGET 2005/06 - 2008/09
          AND MOVEMENT FROM CURRENT YEAR’S BUDGET
      CHILDREN SCHOOLS AND FAMILIES (CHILDRENS SERVICES)

                                              2005/06    2006/07      2007/08   2008/09
                                                £’000      £’000        £’000     £’000

2004/05 Original Budget                        78,484     78,484       78,484    78,484
Technical Adjustments 2004/05                      45         45           45        45
2004/05 Adjusted Budget                        78,529     78,529       78,529    78,529
Technical Adjustments 2005/06                       0          0            0         0
Inflation                                       2,433      2,433        2,433     2,433
Pressures for Change:
 Previous Policy Decisions
   1. Recruitment and Retention of              1,500      1,650        1,715     1,715
      Social Workers
 Full Year Effect of Previous
 Efficiencies
   1. Family Support Centre Service             (220)      (220)        (220)        (220)
 Demographic Change
   1. Care Leavers                               160        160          160          160
   2. Direct Payments to Care Leavers            554        554          554          554
   3. Advocacy for LAC and children in            40         40           40           40
      need
 Legislative Change
   1. New court protocol for increased           122        122          122          122
      level of contact
   2. Independent Review Team                    125        125          125          125
 Other Pressures
   1. NSPCC Contracts                              15        15           15           15
   2. Care Standards                               60       120          180          180
   3. Increments                                   20        30           30           30
   4. Single status – assimilation of               2         2            2            2
      manual workers grades
   5. LAC Strategy                              1,200      2,100        2,100     2,100
   6. Joint Disability                            140        200          200       200
   7. Business Rates                               (8)         7           15        27
Cashable Efficiency Savings
   1. Long term efficiency gains                (346)      (346)        (346)        (346)
   2. Wrixham Care – replacement of             (250)      (250)        (250)        (250)
      contract purchase
   3. IT Equipment and Infrastructure            (22)       (22)         (22)         (22)
      costs
   4. Leonard Cheshire Contract                 (100)      (100)        (100)     (100)
   5. LAC Strategy                            (1,265)    (2,164)      (2,164)   (2,164)

2005/06 STANDSTILL BUDGET                      82,689     82,985       83,118    83,130


                                         53
                                                                 APPENDIX 2(3) C

                              PRESSURES FOR CHANGE

Previous Policy Decisions
                                                                         £’000
1. Recruitment and Retention of Qualified Social Workers
   Costs of supporting the ongoing strategy for attracting              +1,500     2005/06
   Qualified Social Workers to reduce the level of unallocated          +1,650     2006/07
   Child Protection cases and ensure consistency in referral,           +1,715     2007/08
   assessment and long-term casework.                                              onwards


Full Year Effect of Previous Efficiencies

1. Family Support Centre Service
   Rationalisation of the Family Support Service for under 10's          - 220     2005/06
   in advance of the proposals to re-organise and re-launch the                    onwards
   service. This would provide a more focused service in light of
   staff recruitment difficulties.


Demographic Changes

1. Care Leavers
   Increase in number of care leavers under the Leaving Care             + 160     2005/06
   Act and requirement for additional resource to ensure that                      onwards
   statutory assessment, referral and pathway plans are
   completed including support from Connexions. Key issue for
   improvement identified in CSCI review letter of August 2004.

2. Direct Payments to Care Leavers
   The increase in care leavers will have an impact on the value         + 554     2005/06
   of direct payments in relation to Housing Benefit and                           onwards
   allowances to carers.

3. Advocacy for Looked After Children and Children in Need
   The increase in numbers of Looked After Children has had an           + 40      2005/06
   impact on the requirements for individual advocacy in                           onwards
   residential homes and children who need to wish to make
   complaints (a statutory requirement under the Adoption and
   Children Act 2003).


Legislative Changes

1. New Court Protocols for Increased Level of Contact
   Impact of new count protocol on increase in contact demands           + 122     2005/06
   for supervised visits by parents.                                               onwards



                                        54
                                                           APPENDIX 2(3)C (cont’d)

                                                                           £’000
2. Independent Review Team
   The Review of Children's Cases (Amendment) regulations                 + 125      2005/06
   2004 requires all Local Authorities to ensure that all statutory                  onwards
   reviews of Looked After Children are independently chaired.
   This reflects the increased staffing costs to meet the
   regulations.


Other Pressures

1. NSPCC Contracts
   Increased demand for therapeutic and assessment services               + 15       2005/06
   for vulnerable children, including those with sexually harmful                    onwards
   behaviour.

2. Care Standards
   Impact of Care Standards Act on registration requirements for         + 60        2005/06
   staff at the assessment centre and staffing at residential            + 120       2006/07
   homes.                                                                + 180       2007/08
                                                                                     onwards
3. Increments
   This relates to the incremental progression of staff.                  + 20       2005/06
                                                                          + 30       2006/07
                                                                                     onwards
4. Single Status – assimilation of manual workers grades
   Costs arising from the assimilation of manual workers onto                +2      2005/06
   the existing HCC grading scheme as part of the national                           onwards
   single status agreement.

5. LAC Strategy
   “Invest to save” proposals relating to the moving on of care          +1,200      2005/06
   plans for LAC/ adoption and care leavers, statutory/safe              +2,100      2006/07
   services and the balance of statutory to preventative work for                    onwards
   Children In Need. This is intended to reduce the pressure on
   this part of the committee’s budget.

6. Joint Disability Strategy
   To develop an integrated service for children with disability as        +140      2005/06
   part of the LAC “Invest to save” proposals.                             +200      2006/07
                                                                                     onwards
7. Business Rates
   This relates to the estimated additional costs arising from the           -8      2005/06
   2005 revaluation of property for a rating purposes.                      +7       2006/07
                                                                            +15      2007/08
                                                                            +27      2008/09




                                         55
                                                                    APPENDIX 2(3) D

                            SAVINGS

Cashable Efficiency Savings                                                 £’000

1. Long Term Efficiency Gains
   All Divisions of CSF (excluding school budgets) have                     - 346     2005/06
   undertaken an exercise to review where savings may be                              onwards
   made from non-frontline budgets to produce efficiency gains.

2. Wrixham Care - Replacement of Contract Purchase
   Improved use of resources for contact and supervised                     - 250     2005/06
   contact of care cases through use of in-house or fully                             onwards
   contracted service.

3. IT Equipment & Infrastructure Costs
   CSF has undertaken an in-depth review of ICT and                         - 22      2005/06
   infrastructure budgets, and as a result we have released                           onwards
   efficiency savings.

4. Leonard Cheshire Contract
   Reduction of the contract for family support for children with           - 100     2005/06
   disabilities to recognise the take-up of this service.                             onwards

5. LAC Strategy
   "Invest to save" proposals through a review of service                  - 1,265    2005/06
   contracts, core activities and review of CSF planned                    - 2,164    2006/07
   commitments.                                                                       onwards


Non Cashable Efficiency Savings

1. Taxi Services                                                                -7    2005/06
   A pilot exercise has been undertaken on taxi services in the                       onwards
   North of the area aimed at reducing costs of journey. While
   the costs of individual journeys have reduced, this has been
   offset by increased demand.




                                         56
57
                                                          APPENDIX 3 (1)

    PORTFOLIO: COMMUNITY SERVICES - LIBRARIES, HALS, ARTS &
                    TRADING STANDARDS

           PROPOSED RESOURCE BUDGET 2005/06 - 2008/09



Chief Officer: Andrew Robertson

Contact for queries: Elisabeth Reay (01992 555689)


APPENDIX 3 (1) - CONTENTS

A     Commentary
B     Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
      Budget
C     Pressures for Change
D     Savings
E     Fees and Charges




                                    58
                                                                  APPENDIX 3 (1) A

                                   COMMENTARY

1.1     This Appendix outlines details of the proposals for a revenue budget of
        £20.574 million (excluding capital charges and the FRS17 pension
        adjustment) for Libraries, HALS, Arts & Trading Standards.

1.2     The cashable efficiency savings included in the proposals are summarised
        below with fuller details provided in the following appendices:

Cashable Efficiency Savings                          £’000

Trading Standards enquiries move to
Consumer Direct                                         90
Miscellaneous running costs                             32

Total                                                 122

1.3     The final report of the Libraries Best Value Review in 2003 highlighted that
        Hertfordshire has particularly high fees and charges compared with similar
        authorities. The report recommended that improvements to the fees and
        charges structure, with their consequential loss of income to the service,
        be phased in over the two years 2004/05 and 2005/06, enabling a review
        of the year 1 changes before the suggested changes for year 2 are
        implemented. Cabinet resolved to improve the fees and charges structure
        (to a maximum cost of £20,000) to encourage greater use of the service,
        particularly by disadvantaged groups, and the review of year 1 changes is
        currently underway.

        This decision promotes the council’s promise to help people to help
        themselves, to continue learning throughout their lives, and to make it
        easier for people to get the information and advice they need from us.

        In this context, the effect of inflating the fees and charges for 2005/06, as
        the budget shown in these appendices assumes, can not be anticipated,
        other than that it may well further discourage use of the service, and
        potentially reduce income rather than increase it. The position will be
        reviewed in January.




                                          59
                                                                 APPENDIX 3 (1) B

                 REVENUE BUDGET 2005/06 - 2008/09
           AND MOVEMENT FROM CURRENT YEAR’S BUDGET
            LIBRARIES, HALS, ARTS & TRADING STANDARDS

                                            2005/06    2006/07      2007/08    2008/09
                                              £’000      £’000        £’000      £’000

2004/05 Original Budget                     20,125     20,125       20,125     20,125
Technical Adjustments 2004/05                  (51)       (51)         (51)       (51)
2004/05 Adjusted Budget                     20,074     20,074       20,074     20,074
Technical Adjustments 2005/06                   90         90           90         90
Inflation                                      567        567         567        567
Pressures for Change:
 Previous Policy Decisions
   1. Libraries Sunday-opening pilot           (30)       (30)         (30)       (30)
 Legislative Change
   1. Loss of income: Trading
       Standards                                5         10           15           20
 Other Pressures
   1. Business rates                           32        101          144        175
   2. Increments                               25         39           39         39
   3. Revenue effects of telecomms              0          5           10         15
   4. Revenue effects of capital              129        234          290        371
   5. Capital payback                        (214)      (260)        (210)      (219)
   6. Assimiliation of manual worker           11         11           11         11
       grades
   7. Arts development                          7           7            7          7
Cashable Efficiency Savings
   1. Trading Standards queries move
       to Consumer Direct                     (90)       (90)         (90)       (90)
   2. Miscellaneous running costs             (32)       (32)         (32)       (32)

2005/06 STANDSTILL BUDGET               20,574        20,726       20,885     20,998




                                       60
                                                             APPENDIX 3 (1) C

                           PRESSURES FOR CHANGE

Previous Policy Decisions                                          £’000

1. Libraries Sunday-opening pilot
   The 2004/05 budget includes a one-off provision of                -30 2005/06
   £30,000 to allow a pilot of Sunday opening.                           onwards

Legislative Changes
1. Loss of Income: Trading Standards
   The continuing effects of a pressure recognised during             +5   2005/06
   the 2003/04 and 2004/05 budget processes, this                    +10   2006/07
   represents the fall in income being caused by the                 +15   2007/08
   increase in self-verification in weighing and measuring           +20   2008/09
   equipment.

Other Pressures
1. Business rates
   This relates to the estimated additional costs arising            +32   2005/06
   from the 2005/06 revaluation of property for rating              +101   2006/07
   purposes.                                                        +144   2007/08
                                                                    +175   2008/09
2. Increments
   This relates to the incremental progression of staff.             +25 2005/06
                                                                     +39 2006/07
                                                                         onwards
3. Revenue effects of telecomms investment
   These are this department’s share of the revenue                   +0   2005/06
   consequences of undertaking corporate,                             +5   2006/07
   telecommunications capital works.                                 +10   2007/08
                                                                     +15   2008/09
4. Revenue effects of capital
   These are the revenue consequences of undertaking                +129   2005/06
   capital works within the agreed capital programme.               +234   2006/07
                                                                    +290   2007/08
                                                                    +371   2008/09
5. Capital payback
   Payback associated with the general capital                      -214   2005/06
   programme.                                                       -260   2006/07
                                                                    -210   2007/08
                                                                    -219   2008/09
6. Assimilation of manual worker grades
   Costs arising from the assimilation of former manual              +11 2005/06
   workers onto the existing HCC grading scheme as part                  onwards
   of the national single status agreement.




                                         61
                                                      APPENDIX 3 (1) C (continued)


                                                                        £’000
7. Arts development
   Withdrawal of funding previously received from Eastern                  +7 2005/06
   Arts means that the work of the Arts Development                           onwards
   Officer, which will figure more prominently in the
   Authority’s next CPA, is now insufficiently funded, in
   particular our participation in the “Green Heart” initiative,
   a key partnership with districts.




                                           62
                                                             APPENDIX 3 (1) D

                                   SAVINGS

Cashable Efficiency Savings                                        £’000

1. Trading Standards queries move to Consumer Direct
   The introduction of Consumer Direct in April 2005,                -90 2005/06
   which will handle Trading Standards queries currently                 onwards
   handled by the Customer Service Centre, should effect
   reductions in the total volume and average duration of
   calls through the CSC.

2. Miscellaneous running costs
   Costs in a range of non-operational budgets across the            -32 2005/06
   whole of Community Information will be reduced in order               onwards
   to effect total savings of £32,500.




                                       63
                                                                 Appendix 3 (1) E

                         FEES AND CHARGES 2005/06


Arising from the Best Value Review of Libraries, and Cabinet’s decision that the
library fees and charges structure be improved to encourage greater use,
particularly by disadvantaged groups, a review is currently underway to

   Review the current level and structure of all library fees and charges in order
    to create a more simplified structure; and
   Review the groups included and excluded from exemptions and concessions.

Recommendations arising from the review are due to be presented to the
Executive Member in January 2005.

See also the comments made in paragraph 1.3 of Appendix 3 (1) A.




                                        64
65
                                                             APPENDIX 3 (2)

     PORTFOLIO: COMMUNITY SERVICES - FIRE & RESCUE SERVICE

            PROPOSED RESOURCE BUDGET 2005/06 - 2008/09


Chief Officer/Head of Function: Mr S Seaber (01992 507501)

Contact for queries: Mr J Wallace (01992 507508)


APPENDIX 3 (2) - CONTENTS

A     Commentary
B     Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
      Budget
C     Pressures for Change
D     Savings




                                    66
                                                            APPENDIX 3 (2) A

                               COMMENTARY

1.1   This Appendix outlines details of the proposals for a revenue budget of
      £29.113 million (excluding capital charges and the FRS17 Pension
      adjustment) for Fire and £5.427 million for Fire Pensions.

1.2   £250,000 of cashable efficiency savings are included in the proposals for
      IRMP/Modernisation.     Fuller details are provided in the following
      appendices.




                                     67
                                                           APPENDIX 3 (2) B

                 REVENUE BUDGET 2005/06 - 2008/09
           AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                         FIRE & RESCUE

                                      2005/06    2006/07      2007/08    2008/09
                                         £’000      £’000        £’000      £’000
2004/05 Original Budget               27,682     27,682       27,682     27,682

Technical Adjustments 2004/05           (108)      (108)        (108)      (108)
2004/05 Adjusted Budget               27,574     27,574       27,574     27,574
Technical Adjustments 2005/06            536        536          536        536
Inflation                              1,068      1,068        1,068      1,068
Pressures for Change:
 Other Pressures
   1. Business Rates                     33         49           63           82
   2. Increments                         10         15           15           15
   3. Capital Payback                   142        153          118           72
Cashable Efficiency Savings
 1. IRMP/Modernisation                  (250)      (250)        (250)      (250)
2005/06 STANDSTILL BUDGET             29,113     29,145       29,124     29,097


                            FIRE PENSIONS

                                      2005/06    2006/07      2007/08    2008/09
                                        £’000      £’000        £’000      £’000
2004/05 Original Budget                 5,126      5,126        5,126      5,126

Inflation                                 151        151          151         151
Pressures for Change
   1. Pension Deficit                     150        300          450        600
2005/06 STANDSTILL BUDGET               5,427      5,577        5,727      5,877




                                 68
                                                               APPENDIX 3 (2) C

                           PRESSURES FOR CHANGE

Other Pressures                                                    £’000

1. Business Rates
   This relates to the estimated additional costs arising           +33     2005/06
   from the 2005 revaluation of property for rating                 +49     2006/07
   purposes.                                                        +63     2007/08
                                                                    +82     2008/09

2. Increments
   This relates to the incremental progression of staff.            +10     2005/06
                                                                    +15     2006/07
                                                                            onwards
3. Capital Payback
   Payback associated with the general capital                     +142     2005/06
   programme.                                                      +153     2006/07
                                                                   +118     2007/08
                                                                    +72     2008/09

FIRE PENSIONS

1. Pension Scheme Deficit
   The deficit that the authority meets for pensions paid to       +150     2005/06
   Fire-fighters continues to experience significant growth,       +300     2006/07
   reflecting the continuing rise in the number of                 +450     2007/08
   pensioners.                                                     +600     2008/09




                                         69
                                                            APPENDIX 3 (2) D

                                   SAVINGS

Cashable Efficiency Savings                                       £’000

1. IRMP/Modernisation
   The service estimates that efficiency savings of                -250   2005/06
   £250,000 may be achieved by prudential management                      onwards
   of the service’s establishment.


Non Cashable Efficiency Savings
1. IRMP/Modernisation
   Stage 2 of the IRMP identified non cashable efficiency        -69      2005/06
   savings through the removal of stand-down time in the                  onwards
   service day time working routine.




                                       70
71
                                                                      APPENDIX 3 (3)

      PORTFOLIO: COMMUNITY SERVICES - REGISTRATION SERVICE

Head of Statutory Services: Tom Hawkyard (01707 897375)

Contacts for queries: Tolu Cliffe (01992 555391)
                      Sally Crouch (01992 555389)

                   REVENUE BUDGET 2005/06 - 2008/09
             AND MOVEMENT FROM CURRENT YEAR’S BUDGET

                                              2005/06       2006/07    2007/08      2008/09
                                                £’000         £’000      £’000        £’000

2004/05 Original Budget                          710           710         710          710
Technical Adjustments 2004/05                      0             0           0            0
2004/05 Adjusted Budget                          710           710         710          710
Technical Adjustments 2005/06                      0             0           0            0
Inflation                                         19            19          19           19
Pressures for Change:
 Other Pressures
   1. Business Rates                                7            7              7         8
   2. Increments                                    5            7              7         7
Cashable Efficiency Savings
   1. Development of Citizenship                 (13)          (13)        (13)        (13)
      Ceremonies
2005/06 STANDSTILL BUDGET                        728           730         730          731



Pressures for Change                                                    £’000

1. Business Rates
   This relates to the estimated additional costs arising                  +7       2005/06
   from the 2005 revaluation of property for rating                        +7       2006/07
   purposes.                                                               +7       2007/08
                                                                           +8       2008/09

2. Increments
   This relates to the incremental progression of staff.                   +5       2005/06
                                                                           +7       2006/07
                                                                                    onwards
Cashable Efficiency Savings
1. Development Of Citizenship Ceremonies
   The savings target can be met through additional                       -13       2005/06
   income generated by the new Citizenship Ceremonies.                              onwards




                                         72
73
                                                                      APPENDIX 3 (4)

        PORTFOLIO: COMMUNITY SERVICES - CORONERS SERVICE

Head of Statutory Services: Tom Hawkyard (01707 897375)

Contacts for queries: Tolu Cliffe (01992 555391)
                      Sally Crouch (01992 555389)

                   REVENUE BUDGET 2005/06 - 2008/09
             AND MOVEMENT FROM CURRENT YEAR’S BUDGET

                                              2005/06      2006/07     2007/08    2008/09
                                                £’000        £’000       £’000      £’000
2004/05 Original Budget                           821          821         821        821
Technical Adjustments 2004/05                       0            0           0          0
2004/05 Adjusted Budget                           821          821         821        821
Technical Adjustments 2005/06                       0            0           0          0
Inflation                                          17           17          17         17
Pressures for Change
   1. Increments                                    2            3           3           3
   2. Press enquiries relating to                  12           12          12          12
      inquests
Cashable Efficiency Savings
   1. Staffing                                   (12)          (12)        (12)        (12)
2005/06 STANDSTILL BUDGET                        840           841         841         841

Pressures for Change                                                      £’000

1. Increments
   This relates to the incremental progression of staff.                     +2 2005/06
                                                                             +3 2006/07
                                                                                onwards
2. Press Enquiries Relating to Inquests
   The service has found that the volume of press inquiries                 +12 2005/06
   relating to inquests has increased. Previously the Police                    onwards
   press officer dealt with these. To ensure a consistent
   and professional response is always provided the
   service has agreed to pay for a member of the
   Corporate Communications team for 2 days per week.

Cashable Efficiency Savings
1. Staffing
   The unit no longer has a Coroner's Unit Secretary.                        -12 2005/06
   The introduction of SAP accounts payable processes                            onwards
   has resulted in a reduction in workload for the coroner's
   clerks. They have been able to absorb the secretarial
   role. The secretary has transferred to the citizenship
   unit within the Registration Service.



                                         74
75
                                                                     APPENDIX 3 (5)

PORTFOLIO: COMMUNITY SERVICES - EMERGENCY PLANNING SERVICE

Head of Safety, Emergency and Risk Management Unit: John Boulter
                             (01992 555951)

Contacts for queries: Tolu Cliffe (01992 555391)
                      Sally Crouch (01992 555389)

                   REVENUE BUDGET 2005/06 - 2008/09
             AND MOVEMENT FROM CURRENT YEAR’S BUDGET

                                              2005/06      2006/07    2007/08    2008/09
                                                £’000        £’000      £’000      £’000

2004/05 Original Budget                          307          307         307         307
Technical Adjustments 2004/05                      0            0           0           0
2004/05 Adjusted Budget                          307          307         307         307
Technical Adjustments 2005/06                    311          311         311         311
Inflation                                          8            8           8           8
Pressures for Change:
   1. Increments                                    2           2           2           2
   2. Re-grading of Emergency                      15          15          15          15
      Planning Officers
Cashable Efficiency Savings
   1. Postage                                     (1)          (1)         (1)        (1)
   2. Equipment and Materials                     (4)          (4)         (4)        (4)

2005/06 STANDSTILL BUDGET                        638          638         638         638



Pressures for Change                                                     £’000

1. Increments
   This relates to the incremental progression of staff.                    +2 2005/06
                                                                               onwards
2. Re-Grading of Emergency Planning Officers career scheme
   The Emergency Planning Officer post has been re-                        +15 2005/06
   evaluated. This has resulted in a re-grading which will                     onwards
   add an additional £15,000 per annum to salary costs.

Cashable Efficiency Savings
1. Postage
   An increased use of email and the HESMIC website has                      -1 2005/06
   reduced the requirement for dispatching hard copy                            onwards
   correspondence, plans, documents etc.




                                         76
                                                          APPENDIX 3 (5) (cont’d)

                                                                       £’000
2. Equipment and Materials
   The running costs of the replacement Emergency                        - 4 2005/06
   Control Vehicle will be less than in previous years (a                    onwards
   saving of £1,000). The overall cost of the vehicle will in
   future also be part met by contributions from District &
   Borough Council partners (£3,000) as this will now be a
   shared resource, as recommended by the HCC Best
   Value Review of Emergency Planning.




                                         77
                                                            APPENDIX 3 (6)

      PORTFOLIO: COMMUNITY SERVICES - CRIME REDUCTION UNIT

Head of Crime Reduction Unit : Philip Winter (01992 588719)

Contacts for queries: Tolu Cliffe (01992 555391)
                      Sally Crouch (01992 555389)


                  REVENUE BUDGET 2005/06 - 2008/09
            AND MOVEMENT FROM CURRENT YEAR’S BUDGET

                                        2005/06   2006/07     2007/08   2008/09
                                          £’000     £’000       £’000     £’000

2004/05 Original Budget                   2,354     2,354       2,354     2,354

Inflation                                   58        58          58         58

2005/06 STANDSTILL BUDGET                 2,412     2,412       2,412     2,412




                                   78
79
                                                               APPENDIX 4


                  PORTFOLIO: CORPORATE SERVICES

            PROPOSED RESOURCE BUDGET 2005/06 - 2008/09


Chief Officers/Heads of Function: Caroline Tapster, Chief Executive
                                  (01992 555600)
                                  Andrew Laycock, County Secretary
                                  (01992 555500)
                                  Chris Sweeney, Finance Director
                                  (01992 555304)
                                  Alan Warner, Corporate Director, People &
                                  Property (01992 556650)
                                  Geoff Brown, Head of Performance
                                  Improvement (01992 555370)
                                  James Odling-Smee, Head of Corporate
                                  Communications (01992 555619)


Contacts for queries:              Tolu Cliffe (01992 555391)
                                   Matthew Buckland (01992 555457)




APPENDIX 4 - CONTENTS

A     Commentary
B     Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
      Budget
C     Pressures for Change
D     Savings




                                    80
                                                                 APPENDIX 4A


                                COMMENTARY

1.1     This Appendix outlines details of the proposals for a revenue budget of
        £11.505 million, (excluding Capital Charges and the FRS17 Pension
        adjustment).

1.2     The cashable efficiency savings included in the proposals are summarised
        below with fuller details provided in the following appendices:



Cashable Efficiency Savings                      £’000
Internal Audit                                      6
Risk Management                                    13
Corporate Communications                            4
Additional Income                                  42
Subscriptions                                      15
Staffing                                           21
Security Guarding Contracts                        25
Civic Buildings                                    24
HBS Restructuring                                  80
Other Savings                                      29

Total                                             259




                                       81
                                                                  APPENDIX 4B

                 REVENUE BUDGET 2005/06 – 2008/09
            AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                      CORPORATE SERVICES

                                            2005/06    2006/07    2007/08    2008/09
                                              £’000      £’000      £’000      £’000

2004/05 Original Budget                      10,040     10,040     10,040       10,040
Technical Adjustments 2004/05                   558        558        558          558
2004/05 Adjusted Budget                      10,598     10,598     10,598       10,598
Technical Adjustments 2005/06                     0          0          0            0
Inflation                                       772        772        772          772
Pressures for Change:
 Other Pressures
  1. Business Rates                            136        247        319          389
  2. Increments                                 55         82         82           82
  3. Capital Payback                           133        133        133          133
  4. Revenue Effects of Telecomms               32         59         86          114
  5. Single Status – Assimilation of             1          1          1            1
       Manual Worker Grades
  6. Members Allowances                         18         18         18           18
  7. Loss of Income from Magistrates            19         19         19           19
  8. BVPI Triennial Statutory Survey             0         45          0            0
Cashable Efficiency Savings
 1. Internal Audit                               (6)        (6)        (6)          (6)
 2. Risk Management                            (13)       (13)       (13)         (13)
 3. Corporate Communications                    ( 4)       ( 4)       ( 4)         ( 4)
 4. Additional Income                          (42)       (42)       (42)         (42)
 5. Subscriptions                              (15)       (15)       (15)         (15)
 6. Staffing                                   (21)       (21)       (21)         (21)
 7. Security Guarding Contracts                (25)       (25)       (25)         (25)
 8. HBS Restructuring                          (80)       (80)       (80)         (80)
 9. Other Savings                              (29)       (29)       (29)         (29)
10. Civic Buildings                            (24)       (24)       (24)         (24)


2005/06 STANDSTILL BUDGET                    11,505     11,715     11,769       11,867




                                       82
                                                                APPENDIX 4C

                           PRESSURES FOR CHANGE

Other Pressures                                                  £’000

1. Business Rates
   This relates to the additional costs arising from the 2005    + 136   2005/06
   revaluation of property for rating purposes.                  +247    2006/07
                                                                 +319    2007/08
                                                                 +389    2008/09
2. Increments
   This relates to the incremental progression of staff.          + 55   2005/06
                                                                  + 82   2006/07
                                                                         onwards

3. Capital Payback
   Payback associated with the general capital                   + 133   2005/06
   programme.                                                            onwards

4. Revenue Effects of Telecomms
   The department’s share of the revenue consequences             + 32   2005/06
   of undertaking corporate telecommunications capital            + 59   2006/07
   works within the agreed capital programme.                     + 86   2007/08
                                                                 + 114   2008/09

5. Single Status – Assimilation of Manual Worker Grades
   Costs arising from the assimilation of former manual            +1    2005/06
   workers onto the existing HCC grading scheme as part                  onwards
   of the national single status agreement.

6. Members Allowances
   Additional costs arising from the appointment of 8             + 18   2005/06
   co-optees in 2004/05, 5 Health Scrutiny Committee                     onwards
   members and 1 additional member of Cabinet due to
   the splitting of the Children, Schools and Families
   portfolio.

7. Loss of Income from Magistrates
   The loss of income for audit and accountancy services          + 19   2005/06
   arising from the centralisation of the Courts Service.                onwards

8. BVPI Triennial Statutory Survey
   Costs resulting from interviews for triennial statutory           0   2005/06
   survey led by ODPM. This is due in 2006/07.                    + 45   2006/07
                                                                     0   2007/08
                                                                     0   2008/09




                                          83
                                                               APPENDIX 4D

                                     SAVINGS

Cashable Efficiency Savings                                     £’000

1. Internal audit
   A further reduction in part time hours made possible by         -6    2005/06
   the use of audit management software and other new                    onwards
   technology.

2. Risk Management
   Savings on the costs to support the Business Continuity        - 13   2005/06
   infrastructure at New Barnfield and the reduction in cost             onwards
   of the Risk Management newsletter due to extended
   use of Connect and email.

3. Corporate Communications
   Increasing advertising income through HertsDirect.              -4    2005/06
                                                                         onwards

4. Additional Income
   The generation of additional income in relation to legal       - 42   2005/06
   work for the Pension Fund and land charges.                           onwards

5. Subscriptions
   Savings from the EERA subscriptions budget.                    - 15   2005/06
                                                                         onwards

6. Staffing
   Savings on staffing costs in the Strategy and                  - 21   2005/06
   Consultancy, Unison, Performance Improvement and                      onwards
   Scrutiny units.

7. Security Guarding Contracts
   Reduction in expenditure on Security Guarding                  - 25   2005/06
   contracts owing to proposed use of Camelot Ltd                        onwards
   services (a form of ‘house sitting’ but in non-dwelling
   premises).

8. HBS Restructuring
   Additional contribution due to restructuring within            - 80   2005/06
   Hertfordshire Business Services                                       onwards

9. Other Savings
   Savings on various budgets including training, transport,      - 29   2005/06
   leased cars, equipment, software licences and postage.                onwards

10. Civic Buildings
    Savings will be made on the running costs within the          - 24   2005/06
    Civic Buildings budget.                                              onwards



                                         84
85
                                                             APPENDIX 5

                       PORTFOLIO: ENVIRONMENT

            PROPOSED RESOURCE BUDGET 2005/06 - 2008/09


Chief Officer: John Wood (01992 555200)

Contact for queries: Mike Collier (01992 556010)


APPENDIX 5 - CONTENTS

A     Commentary
B     Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
      Budget
C     Pressures for Change
D     Savings




                                    86
                                                                  APPENDIX 5A

                                COMMENTARY

1.1   This Appendix outlines details of the proposals for a revenue budget of
      £87.751 million (excluding capital charges and the FRS17 pension
      adjustment) for Environment.

1.2   The cashable efficiency savings included in the proposals are summarised
      below with fuller details provided in the following appendices:


                                                      £’000
Cashable Efficiency Savings
Waste Volumes & Recycling                               600
Hertfordshire Highways Contract                         500
Section 74 Income                                       375
Charges                                                  32
Staffing efficiencies                                    30
Total                                                 1,537


1.2   In addition to the cashable efficiencies, a further £617,000 of non-cashable
      efficiency savings have been identified and these are detailed in appendix
      5D. Taken together, the total new efficiencies come to over 2.1m or 2.6%
      of the adjusted 2004/05 budget.


2.    Local Transport Plan Settlement

2.1   The County Council bids for Central Government support for highway
      maintenance and other capital schemes through the Local Transport Plan
      (LTP). The formal allocation of funds is made on an annual basis, with the
      announcement for 2005/06 being received on December 2nd.

2.2   The award for integrated transport schemes and structural maintenance
      came in at £21.196m. This is £416,000 below the amount received in
      2004/05, but £656,000 above the indicative levels previously notified. the
      history of recent awards is shown in the table below:


                     2002/03    2003/04     2004/05        2005/06
                       Actual     Actual      Actual Indicative   Actual
                        £000       £000        £000       £000     £000
Integrated
Transport             12,950      14,170     12,350      12,600    12,600
Maintenance           10,586       7,939      9,262       7,940     8,596
Totals                22,536      22,109     21,612      20,540    21,196




                                       87
2.3   The County Council will receive £14.2m in grant and supported borrowing
      in 2005/06 for continued work on the Baldock bypass. This is some £5m
      less than anticipated and work is currently in hand to assess the
      implications of this reduction. The government have provisionally
      accepted the work at Watford Junction interchange and work will now take
      place between the County Council and the Department for Transport (DfT)
      on when this scheme can be fully approved. Requests for funding in
      2005/06 will be considered by the DfT when the scheme returns for full
      approval. On a less positive note, it is disappointing to note that a firm
      decision has still not been made in regard to Croxley Rail Link and that the
      bid for funding for major works on the recently de-trunked A414/A405 has
      been rejected.

2.3   The Director of Environment will be submitting a report on the integrated
      highways works programme to Cabinet on 21 March 2005. The report will
      include schemes funded from revenue, general capital programme and the
      LTP. It would therefore be appropriate for the report to include a
      recommended allocation of the LTP settlement across schemes or
      programme areas after consideration of priorities, consultation with district
      councils and following advice from the Transport Panel.



3.    Highways Maintenance

3.1   At its meeting in February 2004, the County Council agreed one-off
      increases of £2.5m in the revenue budget and £2.58m in the capital
      budget available for highway maintenance in 2004/05. These amounts
      have therefore been removed from the revenue budget shown in
      appendix 5b and from the existing capital programme shown in
      appendix 10.

3.2   When taken with the LTP, the total amount available for highway
      maintenance in 2005/06 is currently £40.5M. This is £3.6m less in cash or
      £6.4m less in real-terms (having applied inflation to the full base) than
      2004/05. The figures for recent years are shown in the following tables.

3.3   Cash Budgets



                              HCC Funds               LTP        Total
                                                      Funds      Funds
                     Revenue Capital         Total
                                                      £000       £000
                     £000       £000         £000

2002/03              23,197     3,500        26,697   10,586     37,283

2003/04              28,938     4,400        33,338   7,939      41,277

2004/05              26,762     8,080        34,842   9,262      44,104

2005/06              25,815     6,050        31,865   8,596      40,461

                                        88
3.4   Real-terms budgets (at 2005/06 prices)



                             HCC Funds               LTP       Total
                                                     Funds     Funds
                    Revenue Capital        Total
                                                     £000      £000
                    £000       £000        £000

2002/03               26,344      4,150     30,494    12,552     43,046

2003/04               31,615      5,006     36,621     9,032     45,652

2004/05               28,315      8,654     36,969     9,921     46,890

2005/06               25,815      6,050     31,865     8,596     40,461



4.    Hertfordshire Highways Staffing

4.1   Increased pressure on Hertfordshire Highways from the public and elected
      members has resulted in significant additional workload. In addition,
      staffing levels have not kept pace with the increased throughput. This has
      led to a reassessment of resource levels assigned to customer care,
      problem solving and other works management activities. An additional
      eight members of staff would assist in meeting this increased demand and
      could be financed from within the sums received from the Department for
      Transport for de-trunked roads.




                                      89
                                                                 APPENDIX 5B

                 REVENUE BUDGET 2005/06 - 2008/09
           AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                         ENVIRONMENT

                                             2005/06   2006/07   2007/08    2008/09
                                               £’000     £’000     £’000      £’000

2004/05 Original Budget                      84,287    84,287     84,287    84,287
Less one-off growth                          (2,500)   (2,500)    (2,500)   (2,500)
Technical Adjustments 2004/05                  (136)     (136)      (136)     (136)
2004/05 Adjusted Budget                      81,651    81,651     81,651    81,651
Technical Adjustments 2005/06                    268       268        268       268
Inflation                                      5,960     8,010    10,160    12,310
Pressures for Change:
 Demographic Change
   1. Domestic Waste Volumes                    500      1,000     1,600      2,200
   2. Road Length Increases                     100        200       300        400
 Legislative Change
   1. Countryside & Rights of Way Act            50        75        100        100
   2. New Roads & Street Works Act –
      buried apparatus                            0       (30)       (30)       (30)
   3. Strategic Environmental
      Appraisals                                 40        40         40         40
   4. Local Development Frameworks
      for Minerals & Waste                       40        40         40         40
   5. WasteAware funding                        100       100        100        100
   6. Traffic Management Act                     50        50         50         50
   7. Duty to Salt                               50        50         50         50
 Other Pressures
   1. Business Rates                            (14)      (12)       (10)        (2)
   2. Increments                                  71      107        107        107
   3. Revenue Effects of Telecomms                 9        22         35        49
   4. Revenue Effects of Capital                  50      125        200        200
   5. Capital Payback                           370       370        370        370
   6. Preparation for Transfer of
      Non-Core Trunk Roads                      (50)      (50)      (50)        (50)
   7. Bus Routes Requiring Support                50       100       150         200
   8. Road Death Investigations                   26        26        26          26
   9. Local Transport Plan 2                      47         0         0           0
   10. Savercard                               (100)     (100)     (100)       (100)
   11. Herts Observatory                          20         0         0           0
Cashable Efficiency Savings
   1. Waste Volumes & Recycling                (600)     (600)     (600)       (600)
   2. Hertfordshire Highways Contract          (500)     (500)     (500)       (500)
   3. Section 74 Income                        (375)     (375)     (375)       (375)
   4. Charges                                   (32)      (32)      (32)        (32)
   5. Staffing Efficiencies                     (30)      (30)      (30)        (30)

2005/06 STANDSTILL BUDGET                     87,751    90,505    93,520     96,442
                                        90
                                                              APPENDIX 5C

                          PRESSURES FOR CHANGE

Demographic Changes                                              £’000


1. Domestic Waste Volumes
   The volumes of household waste that the County                + 500    2005/06
   Council is obliged to dispose of each year continues to      +1,000    2006/07
   rise in common with all waste disposal authorities.          +1,600    2007/08
                                                                +2,200    2008/09
2. Road Length Increases
   With increases in residential developments, the length        +100     2005/06
   of roads that the County Council has a responsibility to      +200     2006/07
   maintain continues to grow each year. This item allows        +300     2007/08
   for a modest increase in the budget available to              +400     2008/09
   maintain these roads.


Legislative Changes

1. Countryside & Rights of Way Act
   Rights of Way Improvement Plan as well as processing           +50 2005/06
   of changes to the definitive map and servicing of the          +75 2006/07
   Local Access Forum. The additional duties are likely to       +100 2007/08
   be reflected in the Formula Spending Share (FSS), as               onwards
   in previous years.

2. New Roads & Street Works Act – buried apparatus
   This item removes growth that was allowed for in                 Nil   2005/06
   2004/05 for two years only.                                     -30    2006/07
                                                                          onwards
3. Strategic Environmental Appraisals
   Guidelines implementing the European Union Directive           +40     2005/06
   on Strategic Environmental Assessments have recently                   onwards
   been published. These require detailed assessments
   to be undertaken on a number of County Council
   produced plans such as the Local Transport Plan, the
   Minerals Local Plan and the Waste Plan. Assurances
   have been received from ODPM that the costs of these
   assessments have been reflected in the FSS.

4. Local Development Frameworks for Minerals & Waste
   Under the Planning & Compulsory Purchase Act the               +40     2005/06
   County Council is obliged to produce a Local                           onwards
   Development Framework which involves changes to
   the public consultation process which is more intensive
   than the current local plan process and a statutory
   requirement to produce an annual report.




                                       91
                                                            APPENDIX 5C (cont’d)

                                                                      £’000
5. WasteAware Funding
   Changes to the way in which funding from landfill tax               +100   2005/06
   credits is allocated has meant that funding for the                        onwards
   WasteAware Co-ordinator and associated campaign
   work is no longer eligible.

6. Traffic Management Act
   The Traffic Management Act requires roadspace                        +50   2005/06
   booking including recording on our roadworks                               onwards
   database. In addition, Highway Authorities are required
   to have a Traffic Manager, overseeing all Traffic
   Management on the network and adjoining networks of
   influence.

7. Duty to Salt
   The implications of the duty to salt are becoming                    +50   2005/06
   clearer as good practice develops, requiring extra                         onwards
   resources in this area.


Other Pressures

1. Business Rates
   This relates to the estimated additional costs arising               -14   2005/06
   from the 2005 revaluation of property for rating                     -12   2006/07
   purposes.                                                            -10   2007/08
                                                                         -2   2008/09
2. Increments
   This relates to the incremental progression of staff.                +71   2005/06
                                                                       +107   2006/07
                                                                              onwards
3. Revenue Effects of Telecomms
   These are this department’s share of the revenue                      +9   2005/06
   consequences of undertaking corporate                                +22   2006/07
   telecommunications capital works.                                    +35   2007/08
                                                                        +49   2008/09
4. Revenue Effects of Capital
   These are the revenue consequences of undertaking                    +50   2005/06
   capital works within the agreed capital programme.                  +125   2006/07
                                                                       +200   2007/08
                                                                              onwards
5. Capital Payback
   Payback associated with the general capital                         +370   2005/06
   programme.                                                                 onwards

6. Preparation for Transfer of Non-Core Trunk Roads
   This item removes the growth that was allowed in the                 -50   2005/06
   budget to cover the transitional costs required to                         onwards
   negotiate the transfer of newly de-trunked roads and
   other costs involved in managing the new network.

                                        92
                                                             APPENDIX 5C (cont’d)

                                                                       £’000
7. Bus Routes Requiring Support
   As operators surrender bus routes that were previously                +50    2005/06
   commercially viable, HCC has a statutory duty to                     +100    2006/07
   decide whether to provide support to keep the services               +150    2007/08
   going. This budget allows for some additional support                +200    2008/09
   following route rationalisation.

8. Road Death Investigations
   New guidelines issued by the Association of Chief                     +26    2005/06
   Police Officers will require more detailed investigations                    onwards
   of all fatalities on the highway.

9. Local Transport Plan 2
   The County Council is obliged to publish a 'full' Local               +47    2005/06
   Transport Plan in 2005/06. It is also required to                      nil   2006/07
   undertake a new accessibility planning process, which                        onwards
   requires additional consultation and the acquisition of
   new software.

10.Savercard
   A review of the budget for Savercard has identified a                -100    2005/06
   reduction of £100,000.                                                       onwards

11.Hertfordshire Observatory
   Much work has been undertaken by both the University                  +20    2005/06
   of Hertfordshire, and more recently the County Council,                nil   2006/07
   to establish the Hertfordshire Observatory. Funding is                       onwards
   required for a year to assist in ‘marketing’ the services
   of the observatory to partner organisations to ensure it
   becomes self-financing.




                                        93
                                                              APPENDIX 5D

                                    SAVINGS

Cashable Efficiency Savings                                      £’000

1. Waste Volumes and Recycling
   New and innovative Household Waste Recycling                   -600   2005/06
   Centre (HWRC) operation contracts have incentivised                   onwards
   the operators to improve their control of waste input
   while maximising the levels of recycling and re-use.
   These efforts have been backed up by the staff of the
   Waste Management Unit through their support of the
   HWRC operators’ efforts and their vigilance in giving
   advice to and dealing with, the general public.

2. Hertfordshire Highways
   The contracts that created Hertfordshire Highways             - 500   2005/06
   included a requirement for year on year efficiencies.                 onwards
   Savings of £500,000 should be achievable from
   2004/05.

3. Section 74 Income
   Guidelines issued following the recent court case have         -375   2005/06
   clarified the circumstances in which local authorities                onwards
   may charge utilities for ‘overstaying their welcome’ on
   the highway. This should result in additional net
   income to the County Council of £375,000 per year.

4. Charges
   A review of charges should result in net additional             -32   2005/06
   income of £32,000 per year.                                           onwards

5. Staffing Efficiencies
   By continuing to critically examining staffing vacancies        -30   2005/06
   as they arise it should be possible to realise net                    onwards
   savings of £30,000.

Non-Cashable Efficiency Savings
1. Adshel Shelters
   The County Council and eight of the district councils          -500 2005/06
   have signed a contract with Adshel that makes                  -700 2006/07
   provision to provide and maintain bus shelters. It is
   estimated that the County Council would have needed
   to find £500,000 if the anticipated provision to be
   implemented in the coming year was provided directly.
   Because of uncertainties surrounding the advertising
   market, and the need for planning permission for new
   shelters, estimated values are particularly tentative at
   this stage.



                                        94
                                                            APPENDIX 5C (cont’d)

                                                                      £’000
2. Web Reporting of Highway Faults
   The Department has been promoting the use of the                     -30   2005/06
   web as a means of reporting highway faults. This item                      onwards
   represents the additional costs that would have been
   incurred if the faults had been reported by telephone.

3. Rural Estates Improvements
   The agreed Master Plan 2050 contained the intention                  -30   2005/06
   to seek environmental improvements on the Rural                            onwards
   Estate. The Improvement Plan 2004/09 has identified
   a number of holdings that will be retained by the
   County Council in the longer term. With a greater
   emphasis on the improvement of the Environment in
   agricultural subsidy arrangements, there is an
   opportunity for the County Council to take a lead role in
   promoting a range of improvements on its own land
   that will benefit not only the local environment but
   provide new access opportunities for the people of
   Hertfordshire. This item reflects the fact that some
   improvements can be funded on a self-financing basis
   using increased rental income.

4. Development Control – Increased Volumes
   A reorganisation of the way the County Council deals                 -20   2005/06
   with planning applications requiring development                           onwards
   control advice should allow the increase in volumes to
   be dealt with without an increase in staff.

5. Herts Highways – Communications & Customer
   Services
   A more proactive approach to communications for                      -20   2005/06
   Hertfordshire Highways has resulted in an increase in                      onwards
   workload. This has been accommodated, in part, by
   contributions form the County Council’s partners.

6. Electronic Invitation to Tender Process
   The Passenger Transport Unit has piloted a process of                -10   2005/06
   making tender documents available for some of its                          onwards
   contracts on-line. This has freed-up resources which
   has allowed some of the pressures in other areas to be
   addressed.

7. Public Utilities Recharges
   The process used to recharge utility companies when                   -7   2005/06
   they do not make their work safe has proved an over                        onwards
   bureaucratic exercise. A review of the process has cut
   the costs of bureaucracy, resulting in a non-cashable
   efficiency saving of approximately £7,000 per annum.



                                        95
                                                             APPENDIX 6

               PORTFOLIO: INFORMATION TECHNOLOGY

           PROPOSED RESOURCE BUDGET 2005/06 - 2008/09


Chief Officer: Andrew Robertson (01992 555605)

Contact for queries: Elisabeth Reay (01992 555689)


APPENDIX 6 - CONTENTS

A     Commentary
B     Revenue Budget 2005/06 - 2008/09 and Movement from Current Year’s
      Budget
C     Pressures for Change
D     Savings




                                   96
                                                               APPENDIX 6A

                              COMMENTARY

1.1   This Appendix outlines details of the proposals for a revenue budget of
      £0.282 million (excluding capital changes and the FRS17 pension
      adjustment) for Information Technology.

1.2   The cashable efficiency savings included in the proposals are summarised
      below with fuller details provided in the following appendices:

                                               £’000
Cashable Efficiency Savings
Telecommunications                                7
Customer Service Centre Set-Up Costs            280
Total                                           287




                                    97
                                                                  APPENDIX 6B

                  REVENUE BUDGET 2005/06 - 2008/09
            AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                    INFORMATION TECHNOLOGY

                                              2005/06   2006/07   2007/08   2008/09
                                                £’000     £’000     £’000     £’000

2004/05 Original Budget                          367       367       367        367
Technical Adjustments 2004/05                     (5)       (5)       (5)        (5)
2004/05 Adjusted Budget                          362       362       362        362
Technical Adjustments 2005/06                    (90)      (90)      (90)       (90)
Inflation                                        200       200       200        200
Pressures for Change:
 Other Pressures
   1. Business rates                              (2)       (6)       (5)        (3)
   2. Increments                                  11        12        12          12
   3. Revenue effects of telecoms                   7       11        15          20
   4. Revenue effects of LGOL                     76        76        76          76
   5. Capital payback                               0         0         0       (84)
    6. Loss of Income from Magistrates              5         5         5          5
Cashable Efficiency Savings
   1. Telecommunications                          (7)       (7)       (7)        (7)
   2. Customer service centre set-up            (280)         0         0          0
      costs

2005/06 STANDSTILL BUDGET                        282       563       568        491




                                         98
                                                               APPENDIX 6C

                           PRESSURES FOR CHANGE

Other Pressures                                                   £’000

1. Business rates
   This relates to the estimated additional costs arising           -2    2005/06
   from the 2005/06 revaluation of property for rating              -6    2006/07
   purposes.                                                        -5    2007/08
                                                                    -3    2008/09
2. Increments
   This relates to the incremental progression of staff.           +11 2005/06
                                                                   +12 2006/07
                                                                       onwards
3. Revenue effects of telecomms investment
   These are this department’s share of the revenue                 +7    2005/06
   consequences of undertaking corporate,                          +11    2006/07
   telecommunications capital works.                               +15    2007/08
                                                                   +20    2008/09
4. Revenue Effects of LGOL Investment
   This item was flagged up as an uncertainty during the           +76 2005/06
   2004/05 budget process, as costs at that stage were still           onwards
   being finalised. These have been discussed at the
   Members Steering Panel for LGOL. These costs are
   less than the alternative of updating HCC’s current
   Mediasurface product, which would have been the
   alternative way forward.

5. Capital payback
   Payback associated with the general capital                       -0   2005/06
   programme.                                                        -0   2006/07
                                                                     -0   2007/08
                                                                    -84   2008/09
6. Loss of Income from Magistrates
   The loss of income for CPU services arising from the             +5 2005/06
   centralisation of the Courts Service.                               onwards




                                        99
                                                               APPENDIX 6D

                                     SAVINGS

Cashable Efficiency Savings                                       £’000

1. Telecommunications
   This represents savings arising from corporately-                 -7 2005/06
   negotiated prices for the Authority’s telephone services.            onwards

2. Customer service centre set-up costs
   The existing contract for the running of the customer           -280 2005/06
   service centre was extended for one year to October               -0 2006/07
   2005. As the set-up costs of the Centre were amortised               onwards
   over the life of the original 5-year contract, this means
   that for a period of one year beginning November 2004
   there is a break from paying any set-up costs. Any set-
   up / technology-refresh costs associated with the new
   contract will similarly be amortised over the life of the
   new contract, and payment of these will commence in
   November 2005. This underspend therefore reflects 7
   months’ worth, the first 5 months’ saving falling in
   2004/05.




                                        100
101
                                       2005/06 STANDSTILL BUDGET - MOVEMENT STATEMENT BY SERVICE

                                   C,S & F     C,S & F     C,S & F     Adult     Environment    Libraries,   Fire, incl     Other      Corporate   Central     Total
                                   Schools      Other     Childrens     Care                   HALS, Arts    Pensions     Services #   Services     Items
                                              Education   Services    Services                 & Trading
                                                                                               Standards
                                     £m          £m          £m         £m           £m            £m           £m           £m          £m         £m         £m

Original Budget 2004/05 (less
one-off funding)                   508.0        67.0        78.5       182.8        81.8          20.1         32.8          4.6         10.0       31.1     1,016.7
Technical Adjustments 2004/05        0.0         0.0         0.0        (0.1)       (0.1)         (0.1)        (0.1)         0.0          0.6       (0.2)        0.0
Adjusted Budget 2004/05            508.0        67.0        78.5       182.7        81.7          20.0         32.7          4.6         10.6       30.9     1,016.7

Technical Adjustments 2005/06        0.0         0.0         0.0         5.2         0.3           0.1          0.5          0.2          0.0       (2.3)        4.0
Adjusted Budget 2005/06            508.0        67.0        78.5       187.9        82.0          20.1         33.2          4.8         10.6       28.6     1,020.7

Inflation (pay and non-pay)         17.5         1.8         2.4         5.1         5.9           0.6          1.2          0.3          0.8        0.4        36.0
Base Budget                        525.5        68.8        80.9       193.0        87.9          20.7         34.4          5.1         11.4       29.0     1,056.7

Pressures for Change:
Previous Policy Decisions            0.0        (0.2)        1.5         0.0         0.0           0.0          0.0          0.0          0.0        0.0         1.3
Previous Policy Decisions – FYE
of previous efficiencies             0.0         0.0         (0.2)      (0.2)        0.0           0.0          0.0          0.0          0.0        0.0       (0.4)
Demography                          (0.7)        0.0          0.8        5.3         0.6           0.0          0.0          0.0          0.0        0.0        6.0
Legislative Changes                  4.1         0.0          0.3        0.0         0.3           0.0          0.0          0.0          0.0        0.0        4.7
Other Pressures                      1.3         2.1          1.4        0.6         0.5           0.0          0.4          0.1          0.4        4.1       10.9
Total Pressures                      4.7         1.9          3.8        5.7         1.4           0.0          0.4          0.1          0.4        4.1       22.5

Cashable Efficiency Savings         (1.0)       (1.1)        (2.0)      (0.3)       (1.5)          (0.1)       (0.3)         (0.3)       (0.3)       (1.2)      (8.1)


Standstill Budget                  529.2        69.6        82.7       198.4        87.8          20.6         34.5          4.9         11.5       31.9     1,071.1

# Other Services includes Registration, Coroners, Emergency Planning, Crime Reduction Unit and Information Technology




                                                                                 103
104
                               Appendix 8

PRESSURES FOR CHANGE 2005/06




            105
106
                             APPENDIX 9

EFFICIENCY SAVINGS 2005/06




           107
108
                                                                                                                                         APPENDIX 10
                                           General Programme - Preferred Cashflows on all Schemes

Service                                                          Earliest      Total
Priority        Scheme Description and Location                  Possible     Scheme        2005/06 2006/07 2007/08 2008/09 Subsequent
 Band                                                             Start        Cost                                           Years
                                                                   Date        £'000         £'000   £'000   £'000   £'000     £'000
ADULT CARE SERVICES
      Existing Programme
      Lintons                                                   in progress         2,570       514
  1   Marsh Lane Day Centre                                     in progress         2,700     1,339     513
  2   Jubilee Day Centre                                        in progress         2,800        50   2,050    300
                                  Total Existing Programme                          8,070     1,903   2,563    300
        New Items
   3    Accommodation improvements for LD properties to         01/04/2005           500        400     100
        transfer to Aldwyck
   4    E Government                                            01/04/2005           490        320     170
   5    Facilitating Integrated EPD teams                       01/04/2005           100        100
   6    Older People specialist dementia care                   01/04/2005           185         95      90
   7    Highly supported LD independent living unit (see also   01/04/2005           700        700
        externally funded, total scheme cost is £1.15m)
   8    Holly Lodge - Community MH Centre                       01/04/2005          50           50
   9    Gypsy Sites (see also externally funded)                01/04/2005       1,000          250
  10    LD Accommodation Opportunities                          01/04/2005         300          200     100
  11    Tannerswood - provision of communal area                01/04/2005         110          110
  12    Home in South East Herts                                01/04/2005       3,000          300   1,400   1,300
  13    Accommodation for LD Early Onset of Dementia            01/01/2006       2,000          200   1,600     200
                                              Total New Items                    8,435        2,275   3,460   1,500
Service Total                                                                   16,505        4,628   6,023   1,800

CHILDREN, SCHOOLS AND FAMILIES
      Existing Programme
      2002/03 Design Starts:
  1   Heathcote Secondary                                       in progress          802                321
                                                                              109
1   Hitchin Boys Secondary   in progress         915   366




                                           110
                                                                                                                               APPENDIX 10 (cont’d)
                                     General Programme - Preferred Cashflows on all Schemes

Service                                                           Earliest    Total
Priority          Scheme Description and Location                 Possible   Scheme      2005/06    2006/07 2007/08 2008/09 Subsequent
 Band                                                              Start      Cost                                            Years
                                                                    Date      £’000       £’000      £’000   £’000   £’000     £’000
CHILDREN, SCHOOLS AND FAMILIES (cont’d)
      Existing Programme
   1  Presdales Secondary, Ware                           in progress          1,450          725
   1  St Albans Primary Provision                         in progress            480          125
   1  Verulam Secondary, St Albans                        in progress            915          428
   1  Westfield, Watford                                  in progress            250           39
   1  St Clement Danes, Chorleywood (contribution)        in progress          2,000          100
   1  ICT Infrastructure                                  in progress            650          125
                                                 subtotal                      7,492        1,908       321
      2003/04 Design Starts:
   1  Holtsmere End Infants - remodel and extend open-    in progress              300        90        210
      plan classroom
   1  DDA funding for access to non-school premises       in progress              400       100
                                                 subtotal                          700       190        210
      2004/05 Design Starts:
   1  St Clement Danes (contribution)                     in progress            900          900
   1  Birchwood High, Bishops Stortford                   in progress          8,900        2,000     2,000   3,400
   1  Youth Programmes Unit Education Centre (North       in progress            230          170
      Herts)
   1  Boxmoor House, Hemel Hempstead                      in progress            350          300
   1  Falconer, Bushey                                    in progress            262           82
                                                 subtotal                     10,642        3,452     2,000   3,400
                           Total for Existing Programme                       18,804        5,550     2,531   3,400

           Approved Additions to Existing Programme
   1       St Clement Danes (further contribution, see 2002/03   2005/06       1,000                  1,000
           above)
   1       St George's (contribution)                                          2,600                    300


                                                                             111
                                                                                                                               APPENDIX 10 (cont’d)
                                   General Programme - Preferred Cashflows on all Schemes

Service                                                           Earliest    Total
Priority         Scheme Description and Location                  Possible   Scheme      2005/06    2006/07 2007/08 2008/09 Subsequent
 Band                                                              Start      Cost                                            Years
                                                                    Date      £’000       £’000      £’000   £’000   £’000     £’000
CHILDREN, SCHOOLS AND FAMILIES cont’d
        Approved Additions to Existing Programme
        (cont’d)
   1    Goffs, Cheshunt                                                        3,183        1,775     1,325
   1    Turnford, Cheshunt                                                     5,168        2,527     2,325
   1    Wilbury Residential Home                                                 290          145
   1    Primary Autism Base                                                      150          150
                                                       subtotal               12,391        4,597     4,950
        Schemes Slipped From Modernisation
        Programme:
   2    Grove Junior, Harpenden                                    2005          250         150        100
   2    Bengeo, Hertford                                           2005          250         150        100
   2    Bedmond                                                    2005          275         165        110
   2    Tudor, Hemel Hempstead                                     2005          475         285        190
                                                       subtotal                1,250         750        500
Additional Funding For Schemes In Existing Programme:
  3     Presdales Sports Hall, Ware (see 2002/03 scheme           2005/06          525       225        300
        above)
  3     Verulam School Sports Hall, St Albans (see 2002/03         2005            423       200        223
        scheme above)
  3     Hitchin Boys (see 2002/03 scheme above)                   2005/06        180         180
  3     Falconer                                                   2005          262         120
  3     NOF Sports funding – uplift to cover inflation             2005        5,400         128        250
  3     Leavesden Green Review, North Watford Primary             2005/06      1,850         435
        Review – Modernisation
  3     Howe Dell*                                                 2005        9,358            0     1,855     170
  3     PFI Development Fees                                      2005/06        480          300
                                    Total Additional Funding                  18,478        1,588     2,628     170


                                                                             112
                                                                                                                          APPENDIX 10 (cont’d)
                                   General Programme - Preferred Cashflows on all Schemes

Service                                                         Earliest     Total
Priority        Scheme Description and Location                 Possible    Scheme     2005/06 2006/07 2007/08 2008/09 Subsequent
 Band                                                            Start       Cost                                        Years
                                                                  Date       £’000      £’000   £’000   £’000   £’000     £’000
CHILDREN, SCHOOLS AND FAMILIES cont’d
New Proposals
   4    BSF Project Professional Fees                             2005/06          50          50
   5    Care Registration Standards Lonsdale                        2005          550         200      350
   5    Care Registration Standards Larwood                         2005          350         350
   5    Family Assessment Unit, Hertford                            2005          750         100      650
   6    Conversion to Pilot Key Stage 4 Learning Centre             2006          727         250      477
        Youth Programmes Unit in Potters Bar
   6    Youth Programmes Unit, Hemel Hempstead                      2005          400         300      100
   7    Feasibility for Secondary Expansion in Bishops            2005/06          50          50
        Stortford
   8    Barclay School Stevenage Double Mobile                      2005          100         100
   8    Chauncy, Ware                                             2005/06      2,200          500   1,500        200
   8    Chater Infants, Watford                                   2005/06         250         150      100
   8    Ponsbourne St Mary’s                                      2005/06         250         100      150
   9    John Warner, Hoddesdon                                    2005/06         125         125
   9    Highfield, Letchworth                                       2005       2,100          150   1,110        840
   9    Hitchin Girls                                               2005          900          60      480       360
  10    Breachwood Green, Hitchin                                 2005/06         551         250      301
  10    Bushey Hall                                               2005/06         250         100      150
  11    Sarratt, Richmansworth                                      2005          200         100      100
  11    IRIS Development                                        in progress    1,000          500      500
                                    Total For New Proposals                   10,803        3,435   5,968     1,400
General Programme Service Total                                              61,726        15,920 16,577      4,970
 Note
   *    Latest estimated project cost of £9.358 million shown above for Howe Dell is for a 2FE extension, 1FE is
        estimated to cost £8.159 million



                                                                            113
                                                                                                                                    APPENDIX 10 (cont’d)
                                     General Programme - Preferred Cashflows on all Schemes

Service                                                              Earliest       Total
Priority         Scheme Description and Location                     Possible      Scheme        2005/06 2006/07 2007/08 2008/09 Subsequent
 Band                                                                 Start         Cost                                           Years
                                                                       Date         £’000         £’000   £’000   £’000   £’000     £’000
COMMUNITY SERVICES:
Libraries, HALS, Arts & Trading Standards
         Existing Programme
existing HALS new archive store - County Hall                        in progress         1,233       900
scheme
existing Reprovision of Hertford Library                             Late 2005            563        506     507   (450)
scheme
existing Repairs and maintenance - various libraries                 in progress          700        150     150    150
scheme
existing Disability Discrimination Act - various libraries           In progress           74         24      50
scheme
                                    Total Existing Programme                             2,570     1,580     707   (300)
         New Items
   1     Refurbishment of Hoddesdon Library                            Apr-05             127        127
   2     RFID Pilot - St Albans Library                                Apr-05             208        208
   3     Disability Discrimination Act - lifts at Hemel & Watford      Apr-05             215        215
         Libraries
   4     Contribution to Rhodes Centre                                 Apr-05               50        50
                                                   Total New Items                         600       600
Service Total                                                                            3,170     2,180     707   (300)




                                                                                   114
                                                                                                                     APPENDIX 10 (cont’d)

                                  General Programme - Preferred Cashflows on all Schemes

Service                                                  Earliest    Total
Priority        Scheme Description and Location          Possible   Scheme        2005/06 2006/07 2007/08 2008/09 Subsequent
 Band                                                     Start      Cost                                           Years
                                                           Date      £'000         £'000   £'000   £'000   £'000     £'000
COMMUNITY SERVICES:
Fire and Rescue Service
    1   Upgrade Training Centre                          2004/05         350          200
    2   Replacement Radio Scheme                         2005/06       1,500        1,000     500
    3   DDA Works                                        2004/05         375          150     125
    4   Service HQ Hertford                              2005/06         250          250
    5   Borehamwood Fire Station                         2005/06       2,500        1,000   1,500
    6   Automatic Vehicle Location                       2005/06          55           55
    7   Bovingdon Fire Station                           2005/06       1,500          750     750
    8   Bushey Fire Station                              2006/07       2,250                1,000   1,250
    9   Much Hadam Fire Station                          2006/07       1,250                  750     500
Service Total                                                         10,030        3,405   4,625   1,750

CORPORATE SERVICES
       Existing Schemes
       DDA works                                                                      361
       County Hall Structural Repairs and Maintenance                                 500     500
       New Items
     * HBS warehouse                                                                  750

Service Total                                                             3,711     1,611     500      0
Note
       * Amount agreed with Chief Executive




                                                                    115
                                                                                                                     APPENDIX 10 (cont’d)
                                General Programme - Preferred Cashflows on all Schemes

Service                                                     Earliest    Total
Priority       Scheme Description and Location              Possible   Scheme     2005/06 2006/07 2007/08 2008/09 Subsequent
 Band                                                        Start      Cost                                        Years
                                                              Date      £'000      £'000   £'000   £'000   £'000     £'000
ENVIRONMENT
      Existing Programme
      Structural Maintenance - Non principal roads          Ongoing      19,650     3,930   3,930   3,930   3,930      3,930
      Structural Maintenance - Principal roads              Ongoing       7,150     1,430   1,430   1,430   1,430      1,430
      Street Lighting Refurbishment                         Ongoing       2,100       420     420     420     420        420
      Road Marking Refurbishment                            Ongoing       1,350       270     270     270     270        270
      Disabled Crossing Facilities                          Ongoing       1,680       210     210     420     420        420
      Work to secure LTP funding                            Ongoing         610       200     310     100
      Rights of Way - Maintaining Statutory Duty            Ongoing         800       160     160     160    160         160
      Digitising the Highway Boundary                       Ongoing          33        33
      Baldock Bypass - contingency                          Ongoing         750               250     500
                                 Total Existing Programme                34,123     6,653   6,980   7,230   6,630      6,630
      New Items
  1   Structural Maintenance - Non principal roads          2005/06      15,000     3,000   3,000   3,000   3,000      3,000
  1   Footway Refurbishment                                 2005/06       7,500     1,500   1,500   1,500   1,500      1,500
  1   Structural Maintenance - Principal roads              2005/06       7,000     1,400   1,400   1,400   1,400      1,400
  1   Cole Green HWRC                                       2005/06       1,000     1,000
  1   Non-Structural Refurbishment of Highway Asset         2005/06       3,000       600     600    600     600         600
  1   Stevenage HWRC                                        2005/06         500       500
  1   Safety at Road/Rail Interfaces                        2005/06         750       150     150    150     150         150
  1   Rights of Way, maintaining statutory duty             2005/06         550       110     110    110     110         110
  1   Aldenham Dam                                          2005/06         108       108
  2   Structural maintenance of minor rural roads           2005/06      10,500     2,100   2,100   2,100   2,100      2,100
  2   A10 - post bypass works                               2005/06         600       600
  2   Aldenham Country park - public health measures        2005/06          40        40
  3   Aldenham Country park - Private Sector Partnership    2005/06          60        60




                                                                       116
                                                                                                                                      APPENDIX 10 (cont’d)
                                     General Programme - Preferred Cashflows on all Schemes

Service                                                             Earliest     Total
Priority         Scheme Description and Location                    Possible    Scheme      2005/06 2006/07 2007/08 2008/09 Subsequent
 Band                                                                Start       Cost                                         Years
                                                                      Date       £'000       £'000   £'000   £'000   £'000     £'000
ENVIRONMENT (cont’d)
         New Items (cont’d)
   3     Aldenham Country park - Entrance Drive Renewal             2005/06           140                    140
                                               Total New Items                     46,748     11,168      9,000      8,860    8,860     8,860
Service Total                                                                      80,871     17,821 15,980 16,090           15,490    15,490
Note:
       * Total scheme cost is total expenditure in this plan period - it excludes expenditure in earlier or later years.




                                                                                117
                                                                                                                                APPENDIX 10 (cont’d)

                                                     Self Financing Programme

Service                                                      Earliest     Total
Service      Scheme Description and Location                 Possible    Scheme      2005/06    2006/07 2007/08     2008/09 Subsequent
 Priority                                                     Start       Cost                                                Years
  Band                                                         Date       £'000       £'000      £'000    £'000      £'000     £'000
ADULT CARE SERVICES

         Day Centre Modernisation (incl. Balmoral,           04/01/05        4,200        500     2,000     1,700
         Hornbeams)
         Dacorum/Berkhamstead Project                           in           1,200        300
                                                             progress
         3 Little Bushey Lane                                04/01/06        2,800                2,800
         Jupiter Drive                                       04/01/05        2,000      1,500       500

Service Total                                                               10,200      2,300     5,300     1,700

CHILDREN, SCHOOLS AND FAMILIES
Schemes in Existing Programme with Full Cabinet
Approval:
         Oxhey Nursery                                           on site      1,990        25
         Jenyns                                                  on site      1,511        36
Schemes subject to approval:
         St Mary’s School, Cheshunt                             2005/06       1,700       850      850
         Firs and Havers Amalgamation                           2005/06       2,609     2,367       39
    *    Howe Dell                                              2005/06                 6,434
         Bishops Stortford                                      2005/06       2,609     2,367
         Watford School of Music                                2005/06
            Expenditure HCC                                                   2,600       200    1,400      1,000
            Expenditure Watford Grammar School for Boys                       2,244
Service Total                                                                12,654     9,912    2,289      1,000
Note
    *    Total scheme cost is £9.358million. This figure is shown on the General Programme page along with the £2.025 million general
         programme contribution that would be needed to proceed based on these estimated project costs.
                                                                          118
                                                                                                                     APPENDIX 10 (cont’d)

                                                  Self Financing Programme

 Service                                                Earliest    Total
 Service        Scheme Description and Location         Possible   Scheme    2005/06    2006/07 2007/08   2008/09   Subsequent
 Priority                                                Start      Cost                                              Years
  Band                                                    Date      £'000     £'000      £'000    £'000    £'000       £'000
COMMUNITY SERVICES:
Fire And Rescue Service

         St Albans Fire Station                                      3,400      1,750
         Watford Fire Station                                        5,500      2,000     1,250
Service Total                                                        8,900      3,750     1,250




                                                                    119
                                                                                                                             APPENDIX 10 (cont’d)
                                                        Externally Funded Programme

Service                                                    Earliest     Total
Priority         Scheme Description and Location           Possible    Scheme     2005/06    2006/07    2007/08    2008/09    Subsequent
 Band                                                       Start       Cost                                                    Years
                                                             Date       £'000      £'000      £'000      £'000      £'000        £'000
ADULT CARE SERVICES
         DoH Grant for Improving Management                                229         229
         Information
         Gypsy Sites                                      01/04/2005      1,000        750
         (see also general program - total spend £1m)
         Highly supported LD independent living unit      01/04/2005       450         450
         (see also general programme, total spend
         £1.15m)
Service Total                                                             1,679      1,429

CHILDREN, SCHOOLS AND FAMILIES
         Standards Fund Grants:
         NDS Devolved Formula                                                       14,583     18,345     19,364
       * Modernisation (all schools)                                                10,747     10,609      8,096
       * Modernisation (primaries)                                                   9,090      8,301      8,241
                                              Subtotal                              34,420     37,255     35,701
         Other Grants:
      ** Youth Service Unit Grant for SEN Disabilities                     136         136
      ** LSC Grant for ACL                                                 306         306
         DfES Sure Start Grant - New Childcare Places                      347         347
         DfES Sure Start Grant - Childrens' Centres                        171         171
         DoH Grant for Improving Management                                152         152
         Information
                                               Subtotal                   1,112      1,112




                                                                          120
                                                                                                                                     APPENDIX 10 (cont’d)
                                                       Externally Funded Programme

Service                                                    Earliest       Total
Priority         Scheme Description and Location           Possible      Scheme       2005/06     2006/07     2007/08     2008/09     Subsequent
 Band                                                       Start         Cost                                                          Years
                                                             Date         £'000        £'000        £'000      £'000       £'000         £'000
CHILDREN, SCHOOLS AND FAMILIES cont’d
          Supported Capital Expenditure (Revenue):
          Schools Access Initiative                                          5,557        1,853       1,852       1,852
        * New Pupil Places Funding 2005/06                                  18,986       11,407       3,761       3,818
          Basic Need and Expansion of Popular Schools                        3,591        1,904       1,436
          2003/04 Approvals
          Basic Need 2002/03 Approvals:
          Stevenage Secondaries                                              1,633          653
          Buntingford and Puckeridge Secondaries                               774          310
          St Albans Secondaries                                              2,045          818
          Harpenden Secondaries                                                261          104
          Tring Secondaries                                                  1,876          751
                                              Subtotal                      34,723       17,800       7,049       5,670

Service Total                                                                35,835       53,332     44,304       41,371
Note     * Figures include the re-profiling adjustment agreed for 2004/05 whereby £8.936m of externally funded budget has been moved out of
         2004/05 and into future years in order to align these budgets with the anticipated cashflows for the individual streams.
         ** These are indicative figures only.
         Specialist Schools Capital (Arts and/or Sports): a number of schools are expected to submit bids for specialist school capital funding and
         each successful school will receive a maximum of £100,000




                                                                             121
                                                                                                                              APPENDIX 10 (cont’d)
                                                        Externally Funded Programme

Service                                                     Earliest    Total
Priority           Scheme Description and Location          Possible   Scheme      2005/06    2006/07    2007/08    2008/09   Subsequent
 Band                                                        Start      Cost                                                    Years
                                                              Date
                                                                        £'000       £'000      £'000      £'000      £'000      £'000
ENVIRONMENT
      LTP Major Schemes
      Baldock Bypass                                        Ongoing      20,371      14,200      3,600      2,571

           LTP Other Schemes
           Northern Herts Area Plan - LTP                   Ongoing        1,150      1,150
           Rural Transport - LTP                            Ongoing          900        900
           Eastern Herts Area Plan - LTP                    Ongoing          480        480
           Eastern Herts Area Plan - Other                  Ongoing          150        150
           Lea Valley Area Plan - LTP                       Ongoing        1,295      1,295
           County Cycling Programme - LTP                   Ongoing          750        750
           Local Education Access Route Network             Ongoing          640        640
           (LEARN) - LTP
           Bridge Assessment & Strengthening - LTP          Ongoing          415        415
           Bridge Parapet Strengthening - LTP               Ongoing          300        300
           Safety Engineering Programme - LTP               Ongoing        1,705      1,705
           Mid-Herts Area Plan - LTP                        Ongoing        1,525      1,525
           Mid-Herts Area Plan - Other                      Ongoing          500        500
           Urban Plans - LTP                                Ongoing          855        855
           West Herts Area Plan - LTP                       Ongoing          685        685
           West Herts Area Plan - Other                     Ongoing          100        100
           South West Herts Area Plan - LTP                 Ongoing          700        700
           South West Herts Area Plan - Other               Ongoing          750        750
           Structural Maintenance - Principal roads - LTP   Ongoing        3,175      3,175
           Structural Maintenance - Non-principal roads -   Ongoing        4,050      4,050
           LTP
           Structural Maintenance - LTP                     Ongoing         656        656
           Countywide Passenger Facilities - LTP            Ongoing         100        100

                                                                          122
                                                                                                                                       APPENDIX 10 (cont’d)
                                                         Externally Funded Programme

Service                                                     Earliest       Total
Priority         Scheme Description and Location            Possible      Scheme       2005/06     2006/07      2007/08      2008/09   Subsequent
 Band                                                        Start         Cost                                                          Years
                                                              Date
                                                                            £'000      £'000        £'000         £'000       £'000      £'000
        Countywide Passenger Information - LTP              Ongoing              335       335
        Countywide Interchange Schemes - LTP                Ongoing              380       380
        Countywide Bus Priority Measures - LTP              Ongoing              500       500
        Accessible Vehicles & Infrastructure - LTP          Ongoing              600       600
        Non LTP Schemes:
        National Nature Reserve - Accessibility             2005/06              130       130
        Programme
Service Total                                                                 43,197    37,026         3,600         2,571
Note:
        Total scheme cost is total expenditure in this plan period – it excludes expenditure in earlier or later years.
        Indicative amounts for the LTP have not yet been issued by the DfT for years beyond 2005/06.


INFORMATION TECHNOLOGY

   1    2005/06 IEG Grant                                   April ‘05           150         150
Service Total                                                                   150         150




                                                                                123
124
                                                                                                                                         APPENDIX 11
                                           Capital Programme: Annual Provisions

   Service                                                   Individual
   Priority          Scheme Description and Location          Projects     2005/06       2006/07    2007/08    2008/09    Subsequent
    Band                                                        over                                                        Years
                                                              £50,000?      £’000         £’000      £’000      £’000        £’000
ADULT CARE SERVICES

                Adult Care Services                              No             850          850         850       850            850

Service Total                                                                   850          850         850       850            850

CHILDREN, SCHOOLS AND FAMILIES
            MINOR WORKS IMPROVEMENTS
            Aboyne Lodge - Primary autism base                                      50
            Beechfield Primary - classroom remodelling           no                 95
            Breachwood Green                                     no                 25
            Breakspeare - post Ofsted issues                                        75
            Cuffley Camp - contribution to NOF scheme for        no                 14
            new kitchen/dining facilities
            Youth Justice Service - Valley / Dane Cottage                           95
            Hudnall Park - conversion of lodge                                      50
            Lea Farm/Garston - Refurbishment of changing                            55
            facilities
            North Herts ESC - front extension to meet H&S                           30
            requirements
            Ripon Road Childrens Home - ground floor             yes                90
            extension
            Roselands Primary - courtyard infill                 no              80
            Thomas Alleyne - office accommodation                                25
            Woodhall Primary - toilet refurbishment              yes             60
            Youth Programmes Unit, Pin Green - relocation                        50
            Other Minor Works                                    no              32
                                                      Subtotal                  826           826        826        826            826


                                                                          125
                                                                                                                     APPENDIX 11 (cont’d)
                                       Capital Programme: Annual Provisions

  Service                                            Individual
  Priority        Scheme Description and Location     Projects     2005/06       2006/07   2007/08    2008/09   Subsequent
   Band                                                 over                                                      Years
                                                      £50,000?      £’000         £’000     £’000      £’000       £’000
CHILDREN, SCHOOLS AND FAMILIES (cont’d)
            MINOR WORKS REORGANISATIONS                 no              106          106        106       106           106
            MOBILE CLASSROOMS:
   note 1   Maximum of 3 doubles and 3 singles                          411          411        411       411           411

   note 2    STRUCTURAL REPAIRS AND MAINTENANCE
             Mechanical:                                yes
             Mount Pleasant Lane JMI                    yes                 65
             Electrical:
             Hitchin Boys School - Rewire Power                             80
             Hitchin Boys School - Rewire Lighting                          80
             Roofing:
             Bishops Hatfield                                            90
             Five Oaks Primary                                          115
             Adeyfield                                                   70
             Burleigh Primary                                            80
             Cowley Hill                                                110
             Downfield JMI                                               60
             Gartson Manor                                               58
             Giles Junior                               yes              80
             Hailey Hall                                                 52
             Heathlands                                                  55
             Hobbs Hill Wood Primary                                     70
             Holdbrook School                                            70
             Knights Templar                                             70



                                                                  126
                                                                                                                           APPENDIX 11 (cont’d)
                                            Capital Programme: Annual Provisions

   Service                                                     Individual
   Priority         Scheme Description and Location             Projects     2005/06    2006/07   2007/08   2008/09   Subsequent
    Band                                                          over                                                  Years
                                                                £50,000?      £’000      £’000     £’000     £’000       £’000
CHILDREN, SCHOOLS AND FAMILIES (cont’d)
            Monks Walk                                                            120
            Oxhey Wood Primary                                                     62
            Pixmore Junior                                                         55
            Samuel Lucas                                                           74
            South Hill Primary                                                     70
            Springmead JMI                                                         60
            St Luke's                                                             113
            Tanners Wood JMI                                                       74
            The Heathcote                                                          60
            The Sele - Substantial Areas of Original Asphalt                      275
            Reaching End of Effective Life
            The William Ransom Primary School                                      75
            Warren Dell Primary                                                    60
            Yorke Mead Primary                                                     74
            Morgans School - Work to Lower Block Roof                             200
            Window Walling:
            Richard Hale                                                           70
            Cowley Hill                                                            75
            Fleetville JM                                                          83
            Grange JM                                                              60
            Havers (The)                                                          125
            Richard Hale                                                           70
            St Peters                                                              74
            Verulam                                                                70



                                                                            127
                                                                                                                               APPENDIX 11 (cont’d)
                                          Capital Programme: Annual Provisions

   Service                                                    Individual
   Priority        Scheme Description and Location             Projects     2005/06      2006/07    2007/08    2008/09    Subsequent
    Band                                                         over                                                       Years
                                                               £50,000?      £’000        £’000      £’000      £’000        £’000
CHILDREN, SCHOOLS AND FAMILIES (cont’d)
            Verulam - Allowance to Renew all Rotted                               190
            Window Walling (Asbestos Content)
            Foundation Schools:
            Rickmansworth - Replace boilers                                       210
            Ashlyns                                                                80
            Bushey Meads                                                           88
            Bushey Meads                                                           83
            Cheshunt                                                               55
            Francis Bacon - Repair Stress Cracking to Kerbs                       176
            and Overlay Original Asphalt
            Hockerill Anglo European - Partial Reroofing                          120
           Queen's - Replace Crittall Type Pivot Windows                          170
           Bishops Stortford High School                                           60
           Mount Grace                                                             90
           Non Schools:
           Valley School Site Roofing Works                                       105
           Stanfield Childrens Home - Windows and Doors                            60
           Stevenage North Herts Music School - Remedy                            150
           Differential Settlement of Building
           Other Structural Repairs and Maintenance                                 94
                                                   Subtotal                      4,935      4,935      4,935      4,935          4,935
           HEALTH AND SAFETY                                     no                458        458        458        458            458
           FEASIBILITY STUDIES                                   no                 22         22         22         22             22
           FURNITURE AND EQUIPMENT                               no                 66         66         66         66             66




                                                                           128
                                                                                                                                      APPENDIX 11 (cont’d)
                                             Capital Programme: Annual Provisions

  Service                                                        Individual
  Priority         Scheme Description and Location                Projects     2005/06      2006/07    2007/08     2008/09     Subsequent
   Band                                                             over                                                         Years
                                                                  £50,000?      £’000        £’000      £’000       £’000         £’000
CHILDREN, SCHOOLS AND FAMILIES (cont’d)
             TECHNOLOGY ENHANCEMENTS                                 no               139        139         139        139               139
             SCHOOL MEALS EQUIPMENT                                  no               457        457         457        457               457
Annual Provisions Service Total                                                     7,420      7,420       7,420      7,420             7,420

NOTES:
    1        There are likely to be 6 mobile schemes in 2004/05, 3 doubles and 3 singles, the doubles will all be over £50,000
    2        All of the above structural repairs and maintenance projects are generated from the results of the building condition surveys
             carried out by Mouchel Parkman on a rolling 3-year programme. Every element throughout each of our buildings is given a
             condition grading ranging from A, for those elements in the best condition, down to D. Those items below A are in need of
             some maintenance and in total represent the maintenance backlog. The R&M budget comprises projects addressing those
             items in the worst condition. At present all D items have been addressed and the programme is consists of C rated items
             (Condition column). The projects above £100k reflect works of either a larger nature (a large roof that all needs doing
             because it was all originally done at the same time), or complexity issues (asbestos content), or technical restrictions (boilers
             need replacing not maintaining), or a mixture of some or all of these. In the vast majority of cases not carrying out the work
             risks closure of premises.
             It must be stressed that management of the HCC CSF R&M programme operates under the scheme of delegation where
             schools are concerned. This clearly states what the school and LEA have respective responsibilities for and all of the above
             are the responsibility of the LEA.
     3       The 2005/06 Annual Provisions programme includes increased contributions made by schools towards the cost of capital
             repairs and maintenance.




                                                                              129
                                                                                                                                   APPENDIX 11 (cont’d)
                                              Capital Programme: Annual Provisions

   Service                                                           Individual
   Priority         Scheme Description and Location                   Projects    2005/06   2006/07   2007/08       2008/09   Subsequent
    Band                                                                over                                                    Years
                                                                      £50,000?     £’000     £’000     £’000         £’000       £’000
COMMUNITY SERVICES:
           Libraries, HALS, Arts & Trading Standards

              CI Automation
              This budget is used to fund smaller ICT                   no            175       175        175          175           175
              developments which are essential for delivery of
              the library service. The amount committed to
              each of these developments is usually under
              £50,000
              Public PC Provision
              This budget is used to support and enhance the            no            157       157        157          157           157
              provision of ICT facilities for public use within
              libraries. The amount committed to each of these
              developments is usually under £50,000.
              Libraries Refubishment & Equipment
              Security and health & safety upgrades                     no             10        10            10        10            10
              Minor refurbishments to a number of libraries &           no             72        72            72        72            72
              HALS
              Trading Standards
              This budget is used for specialist IT maintenance         no             23        23            23        23            23
              and software enhancement on the Trading
              Standards Service's database systems, and for
              general ICT equipment.
                                                          subtotal                    437       437        437          437           437




                                                                              130
                                                                                                                          APPENDIX 11 (cont’d)
                                           Capital Programme: Annual Provisions

   Service                                                Individual
   Priority          Scheme Description and Location       Projects    2005/06     2006/07   2007/08       2008/09   Subsequent
    Band                                                     over                                                      Years
                                                           £50,000?      £’000      £’000     £’000         £’000       £’000
COMMUNITY SERVICES:
Fire And Rescue Service

                Repairs and Maintenance                      No              126       126       126           126          126
                Health and safety                            No               29        29        29            29           29
                Minor Works                                  No               37        37        37            37           37
                IT Equipment                                 No               26        26        26            26           26
                Operational Equipment                        No               21        21        21            21           21
                IT Equipment for Command and Control         No               60        60        60            60           60
                IT Upgrades                                  No               55        55        55            55           55
                Essential Operational Equipment              No               64        64        64            64           64

Service Total                                                                418       418       418           418          418


COMMUNITY SERVICES:
Registration

                Annual Provisions                                            18         18            18        18           18

Service Total                                                                18         18            18        18           18




                                                                   131
                                                                                                                                   APPENDIX 11 (cont’d)
                                           Capital Programme: Annual Provisions

Service                                                    Individual
Priority       Scheme Description and Location              Projects     2005/06     2006/07    2007/08    2008/09    Subsequent
 Band                                                         over                                                      Years
                                                            £50,000?    £’000       £’000      £’000     £'000           £'000
CORPORATE SERVICES
       * Land Purchase, Feasibility Studies,                 yes           1,000       1,000      1,000     1,000             1,000
         Rationalisation Schemes & Development
         Opportunities Fund
         The following scheme is over £50,000:
         Smallford Pit, St Albans
      ** Borehamwood                                                       2,000
         Langleybury                                                       1,000
         Energy Conservation                                 No              204         204        204       204               204
         Civic Buildings                                     No               95          95         95        95                95
         Civic Buildings -Health & Safety                    No              130         130        130       130               130
Service Total                                                              4,429       1,429      1,429     1,429             1,429
Notes
       * This budget was £351k in 2004/05. The figure has been increased to £1million from 2005/06 onwards.
      ** This budget for 05/06 was agreed 13 August 2004


ENVIRONMENT
       # Sustainable Transport Policies                            No             1,336      1,336       1,336    1,336      1,336
       * Waste Management - Household Waste Site                   No               137        137         137      137         137
         Improvements
         Environmental Management                                  No                81          81         81       81           81
Service Total                                                                     1,554      1,554       1,554    1,554      1,554
  Notes
       # This budget is used to contribute towards larger schemes that are part financed through the Local Transport Plan. Whilst
         individual projects are often over the £50,000 ‘limit’, contributions from this budget to each scheme are not.
       * This budget is usually used to fund minor improvements of less than £50,000 each at the County Council's 19 Household
         Waste Sites.
         However, it is occasionally used to contribute towards more significant developments as and when opportunities arise.

                                                                            132
                                                                                                                                APPENDIX 11 (cont’d)
                                            Capital Programme: Annual Provisions

Service                                                       Individual
Priority          Scheme Description and Location              Projects    2005/06   2006/07    2007/08    2008/09 Subsequent
 Band                                                            over                                                Years
                                                               £50,000?     £'000     £'000      £'000      £'000     £'000
INFORMATION TECHNOLOGY

           This is for core network infrastructure, which        yes           373        373        373      373         373
           underpins and supports the growing demands
           being placed on the data network to meet service
           needs. Plans for 2005/06 include the following
           items exceeding £50,000:
           Infobase technology upgrade         £190,000
           Security enhancements package £ 50,000
           Infobase server refresh             £ 60,000

Service Total                                                                  373        373        373       373        373




                                                                            133
                                                                     APPENDIX 12

                   Statement of Projected Specific Reserves

The following reserves are either designated as “earmarked funds” within the
total County Council Funds or established under specific legislation.


                                                      Estimated       Estimated
                                                       Balance         Balance
                                                       1st April      31st March
                                                        2005             2006
                                                        £000             £000

1.      School Reserves                                     40,000         40,000
2.      Self Insurance                                       6,000          6,000
3.      NNDR revaluation reserve                             5,100          5,100
4.      Capital Payback Reserve                              3,357          4,282
5.      Quantum Care rent abatement                          1,840          1,840
6.      Education Traded Services                              700            700
7.      County Supplies Repairs and Renewals                   709            544
8.      Hadham Towers Restoration                              496            496
9.      Fire Pensions                                          489            489
10.     Statutory Planning Authority Inquiries                 400            400
11.     Fire Cover Review                                       49             49
12.     Central Services Repairs & Renewals                    131            131
13.     Energy / Water Conservation                            150            150
14.     Childcare Litigation Unit                              125            125
                                                           ______         ______
        Total                                               59,546         60,306



1.    School Reserves – this figure is an aggregation of individual schools
        balances, accumulated from their delegated budgets. For 2005/06,
        assuming that the funding increase is passported to the schools sector,
        there is no reason to assume an increase/decrease in overall schools
        reserves in the year.

2.      Self Insurance - a reserve to cover for uninsured liabilities in respect of
        Employers Liability, Third Party insurance and potential costs incurred as
        a result of storm damage. Based on information from the council’s
        insurance brokers relating to potential developments in local authority
        insurance exposure, the £6.0m balance on this reserve is considered
        prudent.




                                        135
                                                           APPENDIX 12 (cont’d)


3.    NNDR revaluation reserve – this reserve is held to deal with the impact of
      property revaluations and to receive backdated refunds on appeals.

4.    Capital Payback - contributions from services in respect of approved
      capital programme projects are accumulated in this reserve and each
      year the balance is recycled to support further capital investment in
      services.

5.    Quantum Care rent abatement – Should any of the council’s leases to
      Quantum Care be terminated before the outstanding loan secured
      against the property is redeemed, the leases provide for the council to
      repay to the bank the outstanding debt. The Council would then gain
      vacant possession of either newly built or refurbished homes to either
      occupy itself or let to another care provider. The loans are due to be
      repaid by 2009, but in the meantime this reserve is held to cover this
      potential situation.

6.    Education traded services - these reserves are accumulated from the
      trading units’ activities and are used to fund replacement equipment and
      other one-off investment in the service, as necessary.
.
7.    County Supplies Repairs and Renewals – a reserve to cover the
      replacement and maintenance of equipment and the improvement of
      County Supplies buildings. The planned move of the CSCS warehouse will
      entail costs of fitting out new accommodation and this reserve is retained at
      the reported level to cover these costs arising in future years.

8.    Hadham Towers Restoration - to provide for essential restoration work to
      return the Hadham Towers Waste Disposal site to its original use as
      agricultural land when the tip is full. The Council retains responsibility for
      any potential restoration work that may be necessary for the foreseeable
      future, so it remains appropriate to hold this reserve.

9.    Fire Pensions - a reserve to cover potential costs that may arise as a
      result of retirement dates occurring earlier than previously anticipated. It
      is considered prudent to retain this provision to ameliorate the full impact
      of delivering the integrated risk management plan.

10.   Statutory Planning Authority Inquiries – to meet costs associated with
      attending public meetings as the statutory planning authority. This
      reserve will be used to support the Waste Plan inquiry in 2005/06.




                                       136
                                                        APPENDIX 12 (cont’d)

11.   Fire Cover Review – to assist with any potential funding shortfall
      associated with the relocation of Watford and St Albans fire stations. The
      small residual balance on this reserve remains following the use of the
      reserve in 2004/05 to purchase the new St Albans fire station site..

12.    Central Services Repairs & Renewals - to finance the future replacement
      of equipment, principally, printing equipment for County Graphics and
      Impressions.

13.   Energy and Water Conservation – this is to be applied to investment in
      energy and water saving measures.

14.   Childcare Litigation Unit.- this reserve is accumulated from surpluses
      generated by this former Direct Service Organisation and is used to fund
      replacement equipment and other one-off investment in the service, as
      necessary.




                                     137
138
                                                                                                   APPENDIX 13
MORI/23301/AEA/ANT/TL
H




              HERTFORDSHIRE COUNTY COUNCIL
         NEWSPAPER AND ONLINE BUDGET CONSULTATION
                 TOPLINE FINDINGS (23.11.04)
     This document shows the findings from a survey conducted by MORI Social
      Research Institute for Hertfordshire County Council.
     One questionnaire was distributed to residents in the Hertfordshire County Council
      newspaper (Herts Direct), and another was made available online on the County
      Council website (www.hertsdirect.org) between 18 October and 10 November 2004.
      The newspaper questionnaire received 2,374 responses, and the online
      questionnaire received 343 responses.
     Data are weighted by age and gender, using 2001 Census figures.
     Results for the newspaper and online surveys are shown combined and separately
     Comparisons with the Hertfordshire Panel Survey findings are made where
      appropriate.
     Where results do not sum up to 100%, this may be due to multiple responses,
      computer rounding or the exclusion of ‘don’t know/not stated’ response categories.
     An asterisk (*) represents a value of less than one per cent, but not zero.

The County Council’s Budget

Q1.       Thinking about the situation facing the County Council with regards to next year’s
          budget (as outlined above), which of the following options would you prefer?
          PLEASE TICK ONE BOX ONLY

                                                                                                            HertsDirect/
                                                                                                           online survey
                                                                                        Panel                combined
             Base: All                                                                 (1,371)               (2,717)
                                                                                           %                    %
             The Council should set the Council Tax at a
             level which will avoid cuts to services but
             won’t provide any extra money for service
                                                                                          33
             improvements ..............................................................................        17
             The Council should do all it can to set the
             Council Tax at a level which will allow some
                                                                                          46
             services to be improved...............................................................             57
             The Council should keep the council tax
             increase as low as possible by making cuts to
                                                                                          18
             services, if necessary ..................................................................          21
                                                                                           3
             No opinion/ don’t know/not stated................................................                   4




                                                        139
                                                                                     APPENDIX 13 (cont’d)
Q2.   If there were enough funds available to allow some services to be improved, which
      services do you think the Council should spend more on?
      PLEASE TICK A MAXIMUM OF FOUR BOXES

                                                                                                             HertsDirect/
                                                                                                            online survey
                                                                                          Panel               combined
        Base: All who think the Council should set
        Council Tax at a level that will allow some
        services to be improved                                                         (1,371)               (2,717)
                                                                                             %                   %
                                                                                            71
        Reducing crime............................................................................               62
                                                                                            50
        Maintaining roads ........................................................................               48
                                                                                            49
        Supporting elderly people ............................................................                   48
        Supporting children at risk of harm ..............................................  43                   39
                                                                                            40
        Schools ........................................................................................         37
                                                                                            28
        Fire and rescue............................................................................              21
        Supporting people with disabilities...............................................  28                   30
                                                                                            24
        Supporting carers ........................................................................               27
                                                                                            21
        Road safety..................................................................................            26
                                                                                            10
        Libraries .......................................................................................        15
        Other (please tick and write in below)..........................................     6                   13
                                                                                             1
        Don’t know/not stated ..................................................................                  1


Q3.   If you think the Council should make cuts to services in order to keep council tax
      increases as low as possible, which services do you think the Council should
      spend less on?
      PLEASE TICK ALL THAT APPLY
                                                                         HertsDirect/
                                                                        online survey
                                                           Panel          combined
          Base: All who think the Council should
          keep the Council Tax increase as low as
          possible                                                                        (247)                (579)
                                                                                            %                    %
          Libraries .................................................................       50                   50
          Road safety............................................................           36                   41
          Supporting carers ..................................................              22                   29
          Schools ..................................................................        20                   33
          Supporting people with disabilities ........................                      16                   26
          Supporting elderly people ......................................                  15                   23
          Fire and rescue......................................................             13                   16
          Maintaining roads ..................................................              11                   22
          Reducing crime......................................................               9                   13




                                                      140
                                                                                     APPENDIX 13 (cont’d)

         Supporting children at risk of harm ........................                       8              19
         Other......................................................................       12              35
         Don’t know/not stated ............................................                 5
         NOTE: This table is a provisional list of
         top mentions at this stage. A final table
         will be provided once all the “other”
         answers have been coded.


Q.   Are there any other comments you would like to make?
                                                                                                HertsDirect/
                                                                                          online survey combined
                                                                                                     %
         Base: All                                                                               (2,717)
         Council should spend money more
         wisely/don’t waste money ......................................                            6
         Maintain roads/keep roads in good order ..............                                     5
         Improve recycling...................................................                       4
         Reduce council tax/keep council tax
         down/lower.............................................................                    3
         Less traffic calming/cut back on speed humps
         etc ..........................................................................             3
         More policing/more visible policing/foot
         patrols ....................................................................               2
         Make people more environmentally
         friendly/encourage recycling ..................................                            2
         Council should be more efficient/provide an
         efficient service ......................................................                   2
         Less council staff/do not replace staff/reduce
         staff costs...............................................................                 2
         Keep council tax in line with inflation .....................                              2
         More for young people to do/keep them out of
         trouble/stop them hanging around .........................                                 2
         More funding for schools .......................................                           2
         Stop wasting money on unnecessary
         improvements and refurbishments/road works......                                           2
         Reduce crime.........................................................                      2
         Any positive mention of council doing good
         job etc ....................................................................               2
         Improve cleaning of streets/less litter ....................                               2
         Maintain pavements/paths/walkways ....................                                     2
         More public transport/better/more regular
         transport.................................................................                 2
         Not stated ..............................................................                 55
         NOTE: Responses made by less than 2%
         of residents can be found in a separate
         volume of tables.




                                                     141
                                                                                 APPENDIX 13 (cont’d)

Q   Which, if any, of these County Council services have you or other members of your
    household used or benefited from in the last year?
    PLEASE TICK ALL THAT APPLY
                                                              HertsDirect/
                                                        online survey combined
                                                                   %
       Base: All                                                (2,717)
        Household waste and recycling .............................                        84
        Libraries .................................................................        61
        Local bus services .................................................               39
        Public transport information ...................................                   32
        Schools ..................................................................         26
        Support for elderly people .....................................                    8
        Support for people with disabilities ........................                       7
        Support for carers ..................................................               3
        Other......................................................................         6
        None of these ........................................................              2




                                                   142
                                                           APPENDIX 14

                     GLOSSARY OF TERMS

ANNUAL PROVISIONS     Capital expenditure on minor capital works, of a non-
                      routine nature, such as repairs and refurbishment
                      schemes. These are generally funded from the
                      revenue budget.

ASSUMED NATIONAL      The Council Tax for a band D equivalent property that
COUNCIL TAX (ANCT)    would be chargeable by an authority, if it were to
                      spend at the level of its formula spending share. It is
                      used to work out how the Revenue Support Grant
                      should be shared between local authorities.

BASE BUDGET           The original budget 2004/05 plus technical
                      adjustments and inflation.

BEST VALUE            The budget adjusted to incorporate the requirements of
                      the CIPFA Best Value Accounting Code of Practice
                      (BVACOP), to allow greater consistency between
                      authorities for Best Value comparisons.

BUDGET REQUIREMENT    The planned spending of the authority after deducting
                      any funding from reserves and income (other than
                      general funding from the government).

BUSINESS RATES        These rates are levied on businesses based on the
                      rateable value of the property occupied. This is then
                      paid into a central pool and redistributed to all local
                      authorities and police authorities on the basis of
                      population.

CAPITAL CHARGES       A charge covering fixed assets used in the provision of
                      the service.

CAPITAL PROGRAMME     The Council’s three-year plan for capital expenditure
                      on both major capital schemes and minor capital
                      works.

CAPITAL RECEIPTS      Proceeds from the sale of land, buildings or other
                      capital assets. Capital receipts are used to repay the
                      debt outstanding on assets financed from loans, and to
                      finance new capital expenditure. The receipts cannot
                      be used to finance revenue expenditure.




                              143
                                                  APPENDIX 14 (cont’d)


CAPPING               The process where the Government limits an
                      authority’s budget requirement because it is deemed
                      excessive or deemed to be an excessive increase over
                      the previous year.

COLLECTION FUND       A surplus/deficit arising from either more or less
SURPLUS/DEFICIT       council tax than expected being collected by the district
                      councils.

COUNCIL TAX           A local tax set by local authorities in order to meet their
                      budget requirement. The tax is levied on households
                      and amount payable is based on the value of the
                      domestic property.

COUNCIL TAX BENEFIT   Assistance provided by billing authorities to adults on
                      low incomes to help them pay their council tax bill.
                      Below a guideline increase in council tax the cost to
                      local authorities is largely met by government grant,
                      but above the guideline increase authorities must
                      contribute to the additional cost of council tax benefit
                      on a sliding scale up to 100%.

DEMOGRAPHY            Used in context of pressures for growth on the budget,
                      resulting from changes in the population if the cost of
                      care per person is not changed year to year.

DIRECT REVENUE        Resources provided from the revenue budget to
FINANCING             finance the cost of capital projects.

FINANCING CHARGES     Charges borne by the revenue budget to meet the cost
                      of financing the council’s capital expenditure. These
                      charges include the principal and interest elements of
                      loans outstanding, leasing rentals and direct revenue
                      financing.

FLOORS AND CEILINGS   A method by which stability in funding is protected
                      through limiting the effect of wide variations in grant
                      increase. A floor guarantees a fixed level of increase
                      in grant and a ceiling results in no authority getting
                      more than a certain level of increase. The grant
                      increases of authorities who are neither at the floor or
                      the ceiling are scaled back by a fixed proportion to help
                      pay for the floor.




                               144
                                                  APPENDIX 14 (cont’d)


FORMULA GRANT        An individual authority’s Revenue Support Grant and
                     redistributed business rates.

FRS17 PENSION        To comply with the Code of Practice on Local Authority
ADJUSTMENT           Accounting, service figures within the final 2005/06
                     budget will need to be adjusted to reflect Financial
                     Reporting Standard 17 (FRS17) on Retirement
                     Benefits. These changes are designed to ensure that
                     financial statements reflect at fair value the assets and
                     liabilities underlying the employer’s obligations relating
                     to retirement benefits. These adjustments do not
                     affect the council’s bottom-line budget.

FORMULA SPENDING     A series of formulae used by the government to divide
SHARE (FSS)          up resources according to councils’ relative needs and
                     circumstances. From 1990/01 to 2002/03 this was
                     done using Standard Spending Assessments.

FULL YEAR EFFECT     The impact of a previous policy decision implemented
                     part way through the year on future spending that has
                     not been allowed for in the base budget.

GROWTH               Additional expenditure which increases the quality or
                     volume of service.

INFLATION            The additions made to the budget each year to take
                     account of pay and price increases.

LOCAL GOVERNMENT     The annual determination of local authority spending
FINANCE SETTLEMENT   made by the Government and debated by Parliament.
                     It includes details of the amount of central Government
                     support for spending and how it will be distributed
                     amongst local authorities.

ORIGINAL BUDGET      The original estimate cost of services for the financial
2004/05              year from April to March

OUTTURN PRICES       A budget is at outturn prices if it includes provision for
                     the effect of all pay and price increases expected
                     during the year.

PAY INFLATION        Pay inflation includes the additional cost of the
                     previous year’s pay awards and any part year cost of
                     the budget year’s awards.




                              145
                                             APPENDIX 14 (cont’d)


PRICE INFLATION   In any year there is a year on year cost increase
                  equivalent to forecast change in the published retail
                  price index.

PRESSURES FOR     Those items required to achieve the same level of
CHANGE            service as last year, including demography, new
                  legislation, increments, and increased employer’s
                  pension contributions.

PREVIOUS POLICY   The additional costs falling on the new budget that
DECISIONS         arose from decisions taken in previous budgets.

PRUDENTIAL        Indicators relating to capital expenditure, external debt
INDICATORS        and treasury management, together with other
                  information, in order to demonstrate that local authority
                  capital spending plans are affordable, prudent and
                  sustainable.

RECHARGES         The transfer of costs from one account to another.
                  Part of the cost of Central Services is
                  recharged/transferred to the service departments that
                  use them, e.g. The cost of legal work completed by
                  County Secretary’s for Children, Schools & Families
                  will be recharged to the Children, Schools & Families
                  budget.

RESERVES          Sums set aside to meet revenue or capital expenditure
                  needs in the future without being earmarked for any
                  particular service or projects. Reserves offer scope for
                  greater flexibility in financing future expenditure.

REVENUE BUDGET    An estimate of annual income and expenditure which
                  sets out the financial implications of the Council’s
                  policy for the year.

SPECIFIC GRANTS   Government grants to local authorities for particular
                  projects or services.

SPENDING REVIEW   The public expenditure planning process introduced by
                  the government in 1997 to replace the system of
                  annual public expenditure surveys. Each Spending
                  Review covers a three year period. The last one was
                  in July 2004 and the next one is due in 2006.




                          146
                                                APPENDIX 14 (cont’d)


STANDARDS FUND      The Education Standards Fund is the name given to a
                    sub set of specific grants allocated to local authorities
                    by the DfES in order to raise school standards.

SUPPORTED CAPITAL   Government support for local authority capital
EXPENDITURE (SCE)   investment is delivered through a combination of
                    ongoing revenue support and capital grants, known as
                    ‘supported capital expenditure’. The ongoing revenue
                    support is provided in a similar manner to that for credit
                    approvals (borrowing permissions) under the previous
                    arrangements.

TAX BASE            A measure of the ability to raise council tax in the
                    county. It is the sum of estimates made by finance
                    officers in district councils of the number of Band D
                    equivalent properties on which council tax is expected
                    to be paid.

TECHNICAL           These refer to changes relating to transfer of function,
ADJUSTMENTS         change in funding or changes in responsibility between
                    departments.

UNSUPPORTED         Local authority borrowing for capital purposes which
BORROWING           the Government is not prepared to fund is known as
                    unsupported borrowing.




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