Docstoc

_g_ Better procurement _ Individual Budgets for Physical Disability

Document Sample
_g_ Better procurement _ Individual Budgets for Physical Disability Powered By Docstoc
					                                                             Agenda Item No.
HERTFORDSHIRE COUNTY COUNCIL

CABINET
MONDAY 2 FEBRUARY 2009 AT 2.00 PM                                 3
(Circulated to all Members of the Council)


COUNTY COUNCIL STANDSTILL BUDGET 2009/10 TO 2012/13

Report of the Finance, Information and Commercial Services Director

Author:- Chris Sweeney, Finance, Information and Commercial Services Director
         (01992 555304)

Executive Member:- David Lloyd


1.    Purpose of the Report

1.1   To enable the Cabinet to agree revenue budget and capital programme
      proposals, in the light of feedback from Cabinet Panels on the standstill
      budget capital programme bids, strategic compasses and the final Local
      Government Finance Settlement. Cabinet proposals will be considered by
      Service Cabinet Panels between the 4th and 12th February and both
      Overview and Scrutiny Committee and the Policy and Resources Cabinet
      Panel on 12th February 2008.


2.    Summary

2.1   At this meeting the Cabinet has to make proposals for consideration by
      Cabinet Panels and Overview and Scrutiny Committee. Following this
      Cabinet on 16th February will recommend a budget to County Council,
      informed by any further information, including the Medium Term Financial
      Strategy and information on the impact of proposals on the council’s
      prudential code limits and indicators.




                                      1
2.2   The County Council will agree the budget and council tax level on 24
      February 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.

2.3   At their meetings in January Cabinet Panels considered the standstill
      revenue budget capital programme bids and service “Strategic
      Compasses”. The recommendations and comments from each of the
      Cabinet Panels are set out in Appendix 12.

2.4   This report shows a 2009/10 standstill revenue budget after efficiency
      savings of £729.786 million, an increase of £36.6 million or 5.3% on last
      years budget adjusted for changes in function and funding. This includes
      inflation of £30.0 million or 4.3%, which incorporates the higher inflation
      rates applicable to certain areas of spending such as utility and contract
      related budgets. The increase in the standstill budget compares to a grant
      increase of £3.0 million or 1.75%.

2.5   The Government have stated that they continue to expect the overall
      increase in council tax to be substantially below 5% and if necessary will
      take capping action, including requiring authorities to rebill. However, the
      precise level at which a council would be capped remains unclear.

2.6   The Medium Term Financial Forecast (MTFF) also indicates financial
      problems for future years. On the basis of the figures and assumptions
      presented in this report a standstill budget would require a council tax
      increase of 6.4% in 2009/10, 7.2% in 2010/11 and 5.9% in 2011/12. A
      £4.8 million reduction in spending would reduce the council tax increase
      by 1%.

2.7   Since the Cabinet Panels considered the standstill budget in January the
      final finance settlement has been announced and information has been
      received on a number of other issues. The resulting changes to the
      budget figures since the report to Policy and Resources Cabinet Panel on
      11 December 2008 are set out below:

      a) Changes which impact on the council’s bottom line budget and
         council tax

             Special Provision for Uncertainties - this has been decreased by
              £2.5 million on the basis of a risk assessment of uncertainties.



                                         2
          Inflation - changes to the forecast inflation rates for energy have
           reduced projected inflation costs in 2009/10 by £1.460 million
           (including £0.612 million for street lighting).

          Business Rates - the pressure for business rates has been reduced
           by £82,000 to reflect the latest forecasts from the Council’s Rates
           Consultants. The allocation of the business rate pressure across
           services has also been updated.

          Review of Family Support Service - a new efficiency saving of
           £456,000 was agreed by Cabinet on 19 January.

          Community Fire Safety - the £280,000 included in the 2008/09
           budget is now remaining in the base budget.


      b) Changes which do not impact on the council’s bottom line budget
         and council tax

           Technical adjustments - a number of adjustments have been made
            between services in respect of the HR/Finance/IT transformation
            and TWWW.

           Pressures for Change - the allocation of the revenue effects of
            telecommunications and employer’s pension contributions within
            the CSF budget between Children’s Services and Education (Non-
            Schools) has been amended.

           Area Based Grant (ABG) - the ABG has been increased by £17,000
            in 2009/10 to reflect new responsibilities regarding top-up payments
            to Child Trust Fund Accounts for looked after children who spend a
            continuous year in care. The Children Schools and Families
            (Children’s Services) budget has been increased by an equivalent
            amount to reflect this.

2.8   The impact of the changes set out in paragraph 2.7 on the 2009/10
      standstill revenue budget reported to Policy and Resources Cabinet Panel
      on 11 December 2008 is set out in Appendix 7 and the changes have
      been included in the figures presented in this report.




                                       3
2.9    The final Local Government Finance Settlement was announced on 21
       January. There have been no changes to Formula Grant since the
       Provisional Settlement. Hertfordshire is, along with 5 other shire counties,
       a below-the-floor authority and received the minimum (floor) formula grant
       increase of 1.75%.

2.10   Executive Members and Chief Officers have worked through the period
       leading up to Cabinet to identify new cashable efficiency savings of £14.0
       million in 2009/10. In addition, there are efficiencies relating to the full
       year effects of previous efficiency savings, bringing the total cashable
       efficiencies to £17.8 million, representing 2.6% of the adjusted 2008/09
       non-schools budget.

2.11   Since the budget for council tax purposes does not include schools, this
       report, for the most part, focuses on the non-schools budget. Full details
       of the expenditure forecast are provided in sections 3 to 7 of the main
       report.

2.12   The budget assumes that the proposed schools budget is set at the level
       of the Government’s Dedicated Schools Grant allocation for Hertfordshire,
       with no top-up from the County Council’s own resources. Unspent
       balances of Dedicated Schools Grant from previous years which cannot be
       used outside the Schools Budget, are assumed to be utilised in 2009/10. A
       report setting out proposals for allocating any available headroom is
       attached at Appendix 11.

2.13   The capital programme, including all new bids and available capital
       resources, is detailed in sections 10 to 12 of this report. Cabinet will now
       need to consider the Council’s capital investment plans, and their revenue
       impact, to deliver an affordable programme.

2.14   In addition to the financial background Cabinet will also need to consider
       their budget proposals in the context of the Corporate Plan and responses
       to the annual survey of residents.


3.     Conclusions

3.1    The Cabinet needs to:

       a)     consider the feedback from Cabinet Panels.

       b)     make proposals for the revenue budget and capital programme for
              review by Cabinet Panels between the 4th and 12th February 2009
              and Overview and Scrutiny Committee on 12th February 2008, and




                                         4
c) instruct the Director of Environment to draw up the Integrated Works
        Programme (IWP) of highways schemes, after consultation
        with the Executive Member and the Highways & Transport Panel
        and present this IWP in a report to Cabinet in March.

d)    propose an overall Schools Budget for 2009/10 and 2010/11.




                                 5
CONTENTS OF THE REPORT


                                                                 Pages
Section 1:    Background                                            7
Section 2:    Service Planning Process                              7
Section 3:    Revenue Expenditure Forecast                        8–9
Section 4:    Pay and Price Inflation                               9
Section 5:    Pressures for Change                                 10
Section 6:    Uncertainties                                        10
Section 7:    Efficiency Savings                                   11
Section 8:    Revenue Resources                                  11 – 13
Section 9:    Council Tax                                        13 – 14
Section 10:   Capital Programme                                  14 – 15
Section 11:   Capital Resources                                  15 – 18
Section 12:   Capital Expenditure                                  18
Section 13:   Reserves                                           18 – 19
Section 14:   Public and Stakeholder Consultation                  19

Appendix 1    Adult Care Services Standstill Revenue Budget      21 – 32
              2009/10 – 2012/13
Appendix 2    Community Safety Standstill Revenue Budget         33 – 50
              2009/10 – 2012/13
Appendix 3    Children, Schools & Families Standstill Revenue    51 – 84
              Budget 2009/10 – 2012/13
Appendix 4    Corporate Services Standstill Revenue Budget       85 – 92
              2009/10 – 2012/13
Appendix 5    Environment Standstill Revenue Budget             93 – 104
              2009/10 – 2012/13
Appendix 6    Summary of Changes to the 2009/10 Revenue           105
              Budget
Appendix 7    2009/10 Standstill Budget - Movement                107
              Statement by Service
Appendix 8    Pressures for Change 2009/10                      109 – 111
Appendix 9    Uncertainties                                        113
Appendix 10   Efficiency Savings 2009/10                        115 – 118
Appendix 11   Proposed Allocation of Headroom in Schools        119 – 124
              Budget 2009/10
Appendix 12   Comments from Cabinet Panels                      125 – 127
Appendix 13   Statement of the Finance Director – Robustness    129 – 130
              of Estimates and Adequacy of Reserves
Appendix 14   Capital Bids Submitted by Services                131 – 144
Appendix 15   Statement of Projected Specific Reserves          145 – 147
Appendix 16   Glossary of Terms                                 149 – 153




                                 6
1.    Background

1.1 This report provides the latest information on the standstill budget and
       available resources to allow Cabinet to make budget proposals for
       consideration by Service Cabinet Panels between 4th and 12th February
       and Overview and Scrutiny Committee and the Policy and Resources
       Cabinet Panel on 12 February 2009.

1.2   Cabinet will then meet on 16th February to recommend a budget to County
      Council on 24th February in the light of feedback from Cabinet Panels,
      Overview and Scrutiny Committee and any final information.

1.3   Cabinet recommendations will be informed by Hertfordshire’s Medium
      Term Financial Strategy and a report will be circulated in advance of the
      16th February Cabinet meeting.

1.4   The Medium Term Financial Strategy is driven by the Corporate Plan
      priorities and has been developed by the Finance Director, working
      alongside the Leader and Executive Member for Resources. The purpose
      of this strategy document is to bring together in one place a statement of
      the Council’s agreed strategy for delivering Corporate Plan and Service
      priorities, within current resource projections. This framework document is
      revisited each year to reflect the latest resource and budget information
      and changing priorities.


2.    Service planning process

2.1   Services have, as with previous years, worked up strategic compasses for
      their key service areas. The strategic compasses were considered by
      service panels between in January 2009.

2.2   The strategic compasses include key national performance indicators and
      unit cost data, and illustrate where services see themselves to be currently
      positioned by marking their position on a grid of performance against cost,
      and indicating their direction of travel.

2.3   Services also identify on these strategic compasses, where they want to
      be in three years time and have presented the results to Executive
      members in the Autumn to help them determine a budget strategy aligned
      with the agreed service outcomes and priorities.




                                        7
3.    Revenue Expenditure Forecast

3.1   It is estimated that the Council will need to spend £729.786 million in
      2009/10 for a budget with all services at standstill and taking account of
      efficiency savings.

3.2   The 2009/10 budget has been increased by £42.5 million to reflect the
      transfer of specific revenue grants into a new general revenue grant
      known as Area Based Grant (ABG).

3.3   A movement statement showing the analysis of the movement from the
      2008/09 original budget over the years 2009/10 to 2012/13 is shown in the
      table below and an analysis of the 2009/10 resultant budget by service is
      shown at Appendix 7.

      Movement Statement

                                        2009/10      2010/11    2011/12    2012/13
                                          £m           £m         £m         £m

      2008/09 Original Budget               656.7     656.7      656.7       656.7
      Less one-off funding                   (6.0)     (6.0)      (6.0)       (6.0)
                                            650.7     650.7      650.7       650.7
      Technical Adjustments:
      Area Based Grant Funded
      Spending                               42.5      63.5       63.5        63.5
      Other                                  (0.1)     (0.2)      (0.6)       (0.6)

      Inflation                              30.0      46.6       63.3        79.9

      Base Budget                           723.1     760.6      776.9       793.5

      Pressures for Change
      Previous Policy Decisions              (0.4)     (0.9)      (0.9)       (0.9)
      Demography                             10.6      20.3       30.7        41.0
      Legislative Changes                     4.6       7.4        7.5         8.0
      Other Pressures                        10.7      23.2       33.6        42.7
      Total Pressures for Change             25.5      50.0       70.9        90.8

      Funded from Grant                      (1.0)     (1.0)       (1.0)      (1.0)

      Full Year Effect of Previous
      Efficiencies                           (3.8)     (5.0)       (6.2)      (7.0)
      New Efficiency Savings                (14.0)    (14.3)      (14.3)     (14.3)

      STANDSTILL BUDGET                     729.8     790.3      826.3       862.0



                                        8
3.4   This represents a spending increase of 5.3% on last year’s budget
      adjusted for changes in function and funding.

3.5   The service budgets shown in Appendices 1 - 5 do not include the
      movements in the allocation of overheads, capital charges, 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 on 16th February 2009.


4.    Pay and Price Inflation

4.1   The government expenditure allocations are at 2009/10 outturn prices and
      to be comparable the spending forecasts need to include inflation for pay
      and prices.

4.2   The expenditure forecasts in this report include £30.0 million for pay and
      price inflation in 2009/10, £6.5 million for pay, and £23.5 million for prices.

4.3   As is usual practice a composite rate of standard inflation (2.6% for
      2009/10) has been applied to prices. This incorporates a forward forecast
      of 1% for 2009/10 and a 1.6% adjustment for underprovision of inflation in
      previous years. If this practice were changed so that the 2009/10 budget
      only allowed for the forward forecast then the inflation figure could be
      reduced by £1.6 million.

4.4   Specific inflation rates have been applied for utility and contract related
      spend where more relevant inflation factors are available. The rates also
      reflect increases in fees and charges where these are above standard
      inflation, including bus fares in line with the market. The latest forecast
      includes updated projected rates for gas, electricity and street lighting.
      This has reduced the inflation forecast by £1.460 million, of which £0.612
      million relates to street lighting.

4.5   The pay inflation projection takes into account the full year effect of the
      2008/09 pay awards. A projected pay award for 2009/10 of 2.5% is
      included for all pay groups.

4.6   Uncertainty remains around future levels of inflation, particularly related to
      pay, energy and highways maintenance. A 1% variation in the pay award
      for all pay groups from the 2.5% increase budgeted for would have a £2.5
      million impact on costs in 2009/10.




                                         9
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 £25.5 million in 2009/10, rising to £90.9
      million by 2012/13. Details of pressures are shown by service in
      Appendices 1-5 and a summary is provided at Appendix 8.

5.2   The components of the 2009/10 pressures are shown in the table on the
      previous page. Demographic pressures include increases in:

         learning disability client numbers at a cost of £6.5 million
         elderly client numbers at a cost of £2.2 million
         physical disabilities client numbers at a cost of £0.9 million
         mental health client numbers at a cost of £0.9 million

5.3   The implementation of new legislation and regulations is estimated to
      produce an increase in costs of £4.6 million in 2009/10, rising to £8.0
      million by 2012/13. The main reason for this is the increase in landfill tax
      (£3.0 million).

5.4   Other pressures will cost an additional £10.8 million in 2009/10, rising to
      £42.7 million in 2012/13. These pressures include replacing the £0.5
      million of Local Authority Business Growth Incentive Grant which was used
      to support the 2008/09 budget, capital financing costs, employer’s pension
      contributions, capital payback, interest on balances, the costs of planning
      for, developing and implementing the Building Schools for the Future
      programme, the project management costs of the waste treatment
      procurement process and the cost of Supporting People services that will
      be ineligible for specific grant.


6.    Uncertainties

6.1   At this stage, a number of uncertainties are still remaining which it is
      estimated could increase costs by £7.5 million. These are detailed at
      Appendix 9.

6.2   The 2009/10 standstill budget includes in its base a special provision for
      uncertainties of £10.0 million (see Appendix 13 for the Statement of the
      Finance Director on the Robustness of Estimates and the Adequacy of
      Reserves). In view of the estimated level of uncertainties this provision
      has been reduced by £2.5 million.




                                         10
7.    Efficiency Savings

7.1   The DCLG have set a cashable efficiency savings target of 3% per annum
      for the years 2008/09 to 2010/11 for the public sector overall. Individual
      authorities must notify the DCLG of the planned savings for the year and
      the actual amount achieved. Where poor performance in generating
      efficiency savings is identified the local Government Office will discuss the
      reasons with the authority.

7.2   3% efficiency savings for Hertfordshire County Council’s (excluding
      schools and Fire and Rescue) would equate to £17.8 million for 2009/10.
      This figure has been calculated using the methodology followed by DCLG
      for the purpose of including efficiency information on the council tax leaflet
      and is £2.9 million lower than our initial estimates.

7.3   For 2009/10 Executive Members and Chief Officers have continued to
      identify new cashable efficiency savings of £14.0 million and the full year
      effects of previous efficiency savings total a further £3.8 million. Not all of
      these savings meet the Government’s value for money criteria. It is
      anticipated that further efficiencies meeting the required criteria may be
      achieved in the capital programme. Further work will be required either
      now or during the course of the next financial year should members wish to
      address the shortfall remaining against the target.

7.4   Future year’s budget projections in the report do not include any
      assumptions for any further new cashable efficiency savings from 2010/11
      onwards.

7.5   Details of efficiency savings are shown by service in Appendices 1 - 5 and
      a summary is provided at Appendix 10.


8.    Revenue Resources

8.1   The final local authority finance settlement for 2009/10 was announced on
      21 January. There has been no change to the Formula Grant figures
      between provisional and final settlement.

8.2   The final Formula Grant figures for Hertfordshire County Council are
      £173.487 million for 2009/10 and £175.965 million for 2010/11. After
      taking account of the Government’s adjustments for changes in
      function/funding this represents increases of £3.0 million (1.75%) and £2.6
      million (1.5%) respectively.




                                          11
8.3   In 2009/10 the average increase in Formula Grant for county councils with
      fire responsibilities is 3.95%, with Lincolnshire being the highest at 6.18%.
      The highest increase for a county council without fire responsibilities is
      7.62% (Dorset). The average increase in Formula Grant for all authorities
      across England is 2.8% in 2009/10 and 2.6% in 2010/11.

8.4   Grant allocations for each authority are calculated on the basis of the
      following four-block model:

            a relative needs allocation using a Relative Needs Formulae (RNF),
             which is similar to the former ‘Formula Spending Share’;

            a negative amount based on relative resources (the ability of
             authorities to raise council tax);

            a central allocation based on a per head amount; and

            an allocation to ensure a minimum increase in grant (floor
             damping).

8.5   The following table shows the breakdown of the formula grant figures for
      Hertfordshire County Council:

                                             2009/10       2010/11
                                               £m            £m

       Block 1: Relative Needs              164.646        169.707
       Block 2: Resources                  (171.096)      (175.479)
       Block 3: Central Allocation          147.697        153.676
       Block 4: Damping                      32.240         28.061

       Formula Grant                         173.487       175.965


8.6   All education and personal social services authorities will receive a
      minimum (floor) increase of 1.75% in 2009/10 and 1.5% in 2010/11. This
      will be paid for by scaling back the grant increase of other authorities who
      are above the floor.

8.7   Hertfordshire County Council is below the floor in each of the three years
      and will have its formula grant increased by £32.2 million in 2009/10 and
      £28.1 million in 2010/11 in order that it receives the minimum increase. In
      2008/09 Hertfordshire County Council received £36.7 million through the
      damping block.




                                        12
8.8    In 2009/10 six of the twenty seven Shire Counties are receiving additional
       formula grant through the damping arrangements to bring them up to the
       floor increase in grant. This compares to eight of the same Shire Counties
       in 2008/09.

8.9    Area-Based Grant (ABG) totals £42.528 million in 2009/10 and £62.794
       million in 2010/11. We had expected that the main £21 million specific
       Supporting People Grant would be transferred into the general revenue
       Area Based Grant from 2009/10. However, this transfer will now not take
       place until 2010/11 and remains a specific unringfenced grant in 2009/10.

8.10   Formula grant and ABG figures have not been announced beyond
       2010/11 and have been assumed to increase by 1% each year from
       2011/12 onwards. A variation of 1% on this increase would have a £2.4
       million impact on resources in 2011/12.

8.11   The Government has also announced the majority of specific grants.
       Hertfordshire will receive specific grants totalling approximately £869
       million in 2009/10. Of this £819 million relates to schools. Overall there
       has been a cash increase of 3.8% in Formula Grant, ABG and specific
       grants between 2008/09 and 2009/10. This compares to a national
       increase of 4.2%.


9.     Council Tax

9.1    The level of Council Tax will be dependent on the proposals made at this
       meeting. The standstill budget projections contained in this report would
       require a Council Tax increase of 6.4% in 2009/10, 7.2% in 2010/11 and
       5.9% in 2011/12.

9.2    The Local Government Minister has the power to restrict (or cap) an
       authority if the budget requirement increase is deemed to be excessive.
       The provisions of the capping legislation also allows the Government to
       determine other principles, such as increases in council tax.

9.3    The Government does not specify the capping principles until after local
       authorities have set their budgets. 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.

9.4    The Government have stated that they continue to expect the overall
       increase in council tax to be substantially below 5% and if necessary will
       take capping action, including requiring authorities to rebill. However, the
       precise level at which a council would be capped remains unclear.




                                         13
9.5    In 2008/09 the capping principles were a 5% increase in both budget
       requirement and council tax compared with 2007/08. Action was taken
       against eight authorities; seven police authorities and one unitary
       authority. One police authority was required to re-bill its residents in
       2008/09 and the remainder had restrictions placed on future year’s
       increases in council tax.

9.6    The average council tax increase in 2008/09 was 4.0% for both England
       and county councils. Hertfordshire County Council’s increase in 2008/09
       was 4.5 per cent.

9.7    For 2009/10 to decrease council tax by 1% would require a £4.8 million
       reduction in spending.

9.8    In 2009/10 the County Council will receive a collection fund surplus of £3.0
       million from the district councils. The level of the collection fund surplus
       has been assumed at £2.0 million for 2010/11 onwards. The tax base has
       increased by 0.75% for 2009/10. In light of the current economic situation
       it has been assumed that the tax base will increase by 0.4% in 2010/11
       and 0.2% in future years. The level of the collection fund and tax base has
       a direct impact on the council tax increase.


10.    Capital Programme

10.1   Under the current system for Local Government finance, authorities are
       able to consider revenue and capital proposals to meet corporate and
       service priorities alongside each other. The Council can make choices
       about the most cost effective method of financing the acquisition of
       buildings, vehicles and equipment without imposed constraints on access
       to capital resources. The Council is free to decide on the best solutions,
       having due regard to the impact of additional borrowing on council tax, and
       on the level of the authority’s external debt.

10.2   Government provides the ‘support’ for its supported borrowing allocations,
       for schools and transport programmes for example, in the form of revenue
       grant towards the cost of principal repayment and interest charges
       incurred by local authorities in servicing the loans. However, changes
       made by the Government to the revenue grant formula in 2006/07 means
       that floor authorities like Hertfordshire that receive the minimum revenue
       grant increase will see no benefit from additional Government supported
       borrowing allocations in terms of revenue grant. This is because the
       increase in the underlying formula for capital finance merely takes the
       authority closer to the floor for grant purposes. In other words, an increase
       in supported borrowing allocations does not translate into extra revenue
       grant.



                                         14
10.3   This means that there is now a direct financial cost for Hertfordshire if the
       Council continues to invest in new capital projects at the levels suggested
       by the Government’s published ‘supported borrowing’ allocations for
       schools and transport. Because the capital financing costs of such
       ‘supported borrowing’ programmes must now be met from the Council’s
       own resources, all such schemes are now prioritised alongside all other
       schemes.

10.4   In setting its revenue and capital budgets for future years, the Council will
       have to review the prudential indicators that were agreed when the
       2008/09 budget was approved. These indicators set out the incremental
       impact of our capital plans on council tax, the planned ratio of financing
       costs to total revenue expenditure, the planned capital financing
       requirement, and limits on the amount of external debt the Council will
       incur. Together with a range of decisions relating to the interest rate and
       maturity structure of borrowing, these indicators will be formalised in the
       report which will be considered by Cabinet on 16th February.

10.5   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


11.    Capital Resources

11.1   The latest estimate of capital resources to support the capital expenditure
       (including annual provisions) is outlined in the table below. These resource
       estimates include receipts, grants or third party contributions relating to all
       capital bids listed in Appendix 14, so the final total of capital grants or third
       party contributions that can support the programme depends on the nature
       and level of capital bids finally approved.




                                           15
       Latest Estimates of Capital Resources

                                                       2009/10       2010/11       2011/12
                                                         £’000         £’000         £’000

        Capital Receipts                                12,000        27,000        33,000
        Capital Grants                                  59,167        68,311           800
        Direct Revenue Contributions                     1,323         1,376         1,431
        Direct Revenue Contributions (from
                                                         9,504         9,884        10,280
        schools budget)
        Capital Payback Contributions                        -         7,442         7,302
        Developers’ Contributions                        2,761         1,800
        Carry forward Primary area review
                                                         2,794             96
        funding
        Capital Resources (before
                                                        87,549       115,909        52,813
        borrowing)
        Borrowing                                       38,513        25,493        25,000
        Total Capital resources                        126,062       141,402        77,813


11.2   The projections of available capital receipts shown in the table above have
       been prepared on a prudent basis taking into account current evidence of
       market trends. In setting the 2008/09 capital programme it was estimated
       that £40.9 million of capital receipts would be generated in year to support
       the programme. Given the economic slowdown it is now expected that
       only £19 million will be generated from receipts in 2008/9 and this has
       been taken into account in estimating borrowing costs within the revenue
       budget for 2009/10. The outlook for capital receipts in 2010/11 has
       deteriorated sharply since last reported to Cabinet in December, with little
       market activity taking place it is difficult to project trends, however from the
       limited amount of evidence available it now appears likely that receipts in
       2010/11 will drop to £12 million compared to the previous estimate of £33
       million. This assumes that some activity will take place but that there is a
       likelihood that phased payment arrangements are likely to arise, spreading
       the value of these transactions over two or three years. As a result of this
       worsening situation, estimated borrowing costs for 2009/10 and
       subsequent years have been revised upwards.




                                          16
11.3   Capital grants largely relate to grant aided programmes within the schools,
       children’s services and highways sectors. Grants include allocations for
       the primary school capital programme, extended schools, ICT in schools,
       Devolved Formula Capital paid to schools, Local Transport Plan (LTP) and
       waste infrastructure. No figures are included for 2011/12 as capital grant
       information is only available for the remainder of the current
       Comprehensive Spending Review up to 2010/11. The projected level of
       capital grants have increased since the December report following
       announcement of capital grants for the Youth Service of £516,000 in
       2009/10 and 2010/11 and for the Fire And Rescue Service of £739,000 in
       2009/10 and £947,000 in 2010/11.

11.4   In the Chancellor’s pre Budget report the proposal to bring forward some
       government funded capital schemes into 2009/10 was announced with the
       aim of providing a stimulus to the economy in the short term. In response
       to the DCSF request for the council to review expenditure plans relating to
       the use of schools related grant programmes to identify schemes that may
       be brought forward to 2009/10, the council has bid for £2m of grant to be
       brought forward to accelerate schemes to provide additional primary
       school places at four schools. If the bid is successful this will move £2
       million of capital grant shown in the above table from 2010/11 to 2009/10.
       A decision by the DCSF is expected imminently.

11.5   At the Cabinet meeting on 15 December 2008 it was agreed that to
       provide for expected increases in pupil numbers at Cowley Hill in
       Borehamwood, Holywell in Watford and Greenway First School in
       Berkhamsted primary schools capital funding already in the CSF budget
       for 2008/09 could be reallocated. This will allow the places to be provided
       in permanent accommodation and avoid the need for temporary
       accommodation. These Primary Area Review funds would be carried
       forward into 2009/10.

11.6   The council’s capital programme has always been partly financed through
       direct contributions from the revenue budget, with the bulk of these
       contributions being used to fund schools’ related capital expenditure
       funded from within the Dedicated Schools Grant.

11.7   The projected capital payback figures available to support the programme
       assumes no payback is applied to support the programme in 2009/10.
       Instead it assumes the available payback of £5.4 million is used to provide
       additional reserves to give flexibility to increase the minimum prudent level
       of balances if necessary once the risks and uncertainties for 2009/10 have
       been evaluated. For 2010/11 onwards it is assumed that all payback from
       services relating to the agreed capital programme, up to and including the
       2008/09 programme, are recycled into new capital investment.




                                         17
11.8   Developers’ contributions are included in projected capital resources
       relating to a number of potential schemes.

11.9   The borrowing projections contained in this report assume that borrowing
       in future years is as set out in the Medium Term Financial Strategy (MTFS)
       approved by Council in February 2008, with the exception that additional
       borrowing in 2009/10 is projected to be £6 million higher than contained in
       the MTFS. This is based on the assumption that the £6 million of
       Highways Maintenance expenditure originally planned to be funded from
       the specific highways maintenance reserve will now be funded from
       borrowing to enable the Highways Maintenance Reserve to be freed up for
       use in the same way as the capital payback, outlined in paragraph 11.7.
       The revenue budget takes into account financing costs of this projected
       borrowing. For illustration, if borrowing levels were varied by £10 million
       then this would lead to a variation in capital financing costs of £0.6 to 0.8
       million in a full year.


12.    Capital Expenditure

12.1   The total capital programme spending bids to be considered during this
       budget cycle amount to £433 million over the next three years. This total
       includes committed schemes and all bids including those which are either
       totally or partially self financing from related receipts or external grants.
       The full list of all capital bids and a list of annual provisions are set out in
       Appendix 14. Business cases for schemes can be obtained by contacting
       Chris May in Herts Finance (01992 555325).


13.    Reserves

13.1   In accordance with the Local Government Act 2003, by the time the
       budget is set, the Finance Director must conclude a review of the
       adequacy of reserves taking into account the impact of the corporate risk
       analysis to be reported to Cabinet on 16th February 2009. An initial
       review has been completed and is discussed in Appendix 13. This
       indicates that a minimum prudent level of reserves of £20.1 million will be
       required for 2009/10 to recognise the increasing financial uncertainties
       arising from current economic conditions. This level is subject to
       confirmation once the corporate risk analysis has been finalised.

13.2   General reserves as at 1 April 2009 are currently projected to be £32.8
       million, taking account of the projected outturn for 2008/09. This is £12.7
       million above the minimum prudent level.

13.3   The County Council will need to consider the expected impact on balances
       of 2009/10 budget decisions at its February meeting.



                                           18
13.4   As part of the budget preparation process Cabinet should have regard to
       specific reserves. These specific reserves are described in Appendix 15,
       together with estimated opening and closing balances.


14.    Public and Stakeholder Engagement

14.1   Annual Tracking Survey

       Since 2004, Hertfordshire County Council has commissioned an annual
       (representative) survey of residents which tracks results for a number of
       key issues of importance to the Council, including the corporate priorities.
       Initial top-line results will be reported to the Policy and Resources Cabinet
       Panel, to help inform the decision-making process.

       Budget Briefing Event

14.2   To build on both the key messages from the tracking survey and
       previously successful interactive approaches, on the 9th February 2009 a
       budget briefing event will take place. This provides an opportunity for the
       Leader and Deputy Leader of the County Council to have a dialogue with
       representatives from community groups in Hertfordshire. It enables a
       discussion on the pressures and growing demands that are being placed
       on the county and possible ways to address them.

14.3   To promote information about the budget, a webcast featuring the Leader
       of the Council will be introduced after this event. Residents can view a
       short video clip of the Leader explaining the context in which budgetary
       decisions are being made.



Background information referred to by the author.

Hertfordshire County Council Medium Term Financial Strategy 2008/09 to
2011/12, February 2008.

County Council Standstill Budget 2009/10 to 2012/13, Policy & Resources
Cabinet Panel, Agenda Item 4, 11 December 2008.

Local Authority Finance Settlement 2009/10 and 2010/11.

2007 Pre- Budget Report and Comprehensive Spending Review: Meeting the
Aspirations of the British People. H M Treasury, October 2007.

Delivering Value for Money in Local Government: Meeting the challenge of
CSR07. Department for Communities and Local Government, October 2007.



                                         19
20
                                                     APPENDIX 1

             PORTFOLIO: ADULT CARE SERVICES

       STANDSTILL REVENUE BUDGET 2009/10 - 2012/13


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

Contact for queries: Iain MacBeath, Assistant Director –
Performance & Business Support, Adult Care Services (01992
556363)


APPENDIX 1 – CONTENTS

A     Commentary
B     Standstill Revenue Budget 2009/10 – 2012/13 and Movement
      from Current Year’s Budget
C     Pressures for Change & Savings




                                21
                                                       APPENDIX 1 A

                          COMMENTARY


1.1   This appendix outlines the inflation and cost pressures facing
      the service in 2009/10 and the medium term. This gives rise to
      a 2009/10 standstill budget for Adult Care Services, after
      efficiency savings, of £283.598 million (excluding capital
      charges and the FRS17 pension adjustment).

1.2   The cashable efficiency savings which have been identified by
      Executive Members and Chief Officers are summarised below
      with further details provided in Appendices 1B and 1C.

                                                           £’000
       Cashable Efficiency Savings
       Full Year Effect of Previous Efficiencies - Value    2,274
       for Money
       Full Year Effect of Previous Efficiencies              500
       2009/10 Value for Money Savings                      6,799
       2009/10 Other Savings                                  300
       Total                                                9,873




                                 22
                                                                    APPENDIX 1 B

           REVENUE BUDGET 2009/10 – 2012/13
      AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                ADULT CARE SERVICES

                                          2009/10    2010/11    2011/12    2012/13
                                           £’000      £’000      £’000      £’000
2008/09 Original Budget                   253,413    253,413    253,413    253,413
Technical Adjustments 2008/09               1,205      1,205      1,205      1,205
Technical Adjustments 2009/10              13,744     34,835     34,835     34,835
Adjusted Budget                           268,362    289,453    289,453    289,453
Inflation                                  14,061     20,274     26,487     32,700
Base Budget                               282,423    309,727    315,940    322,153
Pressures for Change:
Demography:
(a) Older People                            2,187      4,974      8,194     11,414
(b) Learning Disability                     6,462     11,669     16,876     22,083
(c) Physical Disability                       888      1,776      2,664      3,552
(d) Mental Health                             860      1,720      2,580      3,440
Legislative Changes:
(a) Working Time Directive                     97         97         97         97
(b) Independent Safeguarding Authority
- vetting & barring scheme                      3          3          3          3
(c) Immigration - Applications for
Permission to Work                              4          4          4          4
Other Pressures:
(a) Business Rates                          (143)      (143)      (143)      (143)
(b) Local Government Pension Scheme           559        559        559        559
(c) Revenue Effects of Telecom                 80         80         80         80
(d) Capital Payback                            55         (8)      (36)      (178)
(e) Revenue Effects of Capital                104        177        177        177
(f) Review in house provision with high
                                              340        340        340        340
     unit costs
(g) Meals on wheels                            85        170        241        241
(h) Supporting People VFM and
                                              467        933        933        933
     Ineligible services
Total Pressures for Change                 12,048     22,351     32,569     42,602

Funding From Specific Grant                (1,000)    (1,000)    (1,000)    (1,000)
STANDSTILL BUDGET BEFORE
                                          293,471    331,078    347,509    363,755
EFFICIENCIES




                                23
                                                       APPENDIX 1 B (continued)

                                          2009/10 2010/11       2011/12    2012/13
                                           £’000     £’000       £’000      £’000
FYE of previous efficiencies (2008/09 & Prior Years)
(a) Individual Budgets for Older People       (500)    (500)      (500)      (500)
(b) Re-tendering Countywide Homecare
                                              (520)    (880)     (1,240)    (1,600)
    Block Contract
(c) Re-tendering Homecare Block
                                              (370)    (610)      (850)     (1,090)
    Contracts
(d) Individual Banded Budgets for
                                              (180)    (360)      (540)      (720)
    Learning Disability
(e) Expert Purchasing of Care
                                              (500)    (750)     (1,000)    (1,000)
    Placements for Learning Disability
(f) Extra Care Sheltered Housing              (100)    (200)      (300)      (300)
(g) Better procurement & Individual
                                              (100)    (150)      (200)      (250)
    Budgets for Physical Disability
(h) PC Leasing                                  (4)      (4)         (4)        (4)

FYE of previous efficiencies (2008/09 & Prior Years) – Other
(i) Increase charges for Non-
                                              (500)     (500)     (500)      (500)
    Residential Services

2009/10 Cashable Efficiency Savings - Value for Money
(a) HPFT to seek further efficiencies in
                                             (700)    (700)       (700)      (700)
    delivering Mental Health services
(b) Restricting the increases in fees paid
                                           (3,669)  (3,669)      (3,669)    (3,669)
    to care providers
(c) Equipment Retail Model                   (500)    (750)       (750)      (750)
(d) Enabling Homecare / Intermediate
                                             (750)    (750)       (750)      (750)
    Care
(e) Day Services Modernisation - Older
                                             (160)    (190)       (190)      (190)
    People
(f) Extra Care Sheltered Housing             (400)    (400)       (400)      (400)
(g) Supporting People Administration
                                              (74)     (74)         (74)       (74)
    Grant
(h) Supporting People General Grant          (546)    (546)       (546)      (546)

2009/10 Cashable Efficiency Savings – Other
(a) Additional Income                       (300)      (300)      (300)      (300)

Total 2009/10 Cashable Efficiency
                                           (9,873)   (11,333)   (12,513)   (13,343)
Savings

STANDSTILL BUDGET AFTER
                                          283,598    319,745    334,996    350,412
EFFICIENCIES




                                24
                                                                     APPENDIX 1 C
PRESSURES FOR CHANGE

                                                                   £’000
Demography

(a) Older People
Around 55% of the ACS budget for older people is spent on        + 2,187   2009/10
the 85 and over age group, 34% on the 75 to 84 age group         + 4,974   2010/11
and 11% on the 65 to 74 age group. The projected                 + 8,194   2011/12
increases in the numbers in these age groups have been          + 11,414   2012/13
used together with the estimated spends on these age
groups to produce the year on year budget increases
required to meet demographic pressures.
For 2009/10 the estimated impact of demography has been
partly offset by £500k based on the 2008/09 half-year
budget position. There is a risk attached in that this is a
volatile care purchasing budget and assumes that there is
no substantial peak in demand during winter 2008/09 and
that self-directed support implementation delivers the
required efficiency savings.


(b) Learning Disability
The demographic pressure estimates for the Learning              + 6,462   2009/10
Disability client group has been based on a combination of      + 11,669   2010/11
the full year effects of the placements made and planned to     + 16,876   2011/12
be made in 2008/09 plus estimates of the number of net          + 22,083   2012/13
additional service users to be funded in the next four years.


(c) Physical Disability                                            + 888   2009/10
The projection for demographic pressures is based on the         + 1,776   2010/11
increase in costs and numbers of clients (especially for         + 2,664   2011/12
residential care) over the last few years.                       + 3,552   2012/13


(d) Mental Health                                                  + 860   2009/10
The projection for demographic pressures is based on the         + 1,720   2010/11
increase in costs and numbers of clients (especially for         + 2,580   2011/12
residential care) over the last few years. HPFT has assisted     + 3,440   2012/13
in producing these estimates.




                                         25
                                                     APPENDIX 1 C (continued)

                                                                  £’000
Legislative Changes

(a) Working Time Directive
In line with the amendments to the Working Time                   + 97     2009/10
Regulations 1998, with effect from 1st April 2009 the holiday              onwards
entitlement increases by 4 days from a minimum of 24 days
to 28 days for temporary staff.


(b) Independent Safeguarding Authority - vetting & barring
scheme
The introduction of a new national Vetting & Barring               +3      2009/10
Scheme will commence from October 2009. It will be a                       onwards
criminal offence for a person to work in a regulated position
covered by the scheme without being registered and for an
employer to employ them. Additional costs within services
relate to the extra cost of registering new and existing
employees.

(c) Immigration - Applications for Permission to Work
New immigration legislation will come into effect from             +4      2009/10
November 2008. A new annual licence will be required                       onwards
along with individual applications for permission to work. It
is anticipated that each application will cost £190.

Other Pressures

(a) Business Rates                                                (143)    2009/10
This relates to the estimated additional costs arising from the            onwards
2006 revaluation of property for rating purposes.


(b) Local Government Pension Scheme (LGPS) employer’s
contributions
Estimated cost of the increase in employer’s contribution         + 599    2009/10
towards the Local Government Pension Scheme.                               onwards


(c) Revenue Effects of Telecoms
These are the authority’s revenue consequences of
                                                                   + 80    2009/10
undertaking telecommunications capital works.
                                                                           onwards

(d) Capital Payback
                                                                   + 55    2009/10
Pay back associated with schemes funded by the general
                                                                     (8)   2010/11
capital programme.                                                 (36)    2011/12
                                                                  (178)    2012/13




                                   26
                                                        APPENDIX 1 C (continued)

                                                                     £’000
(e) Revenue Effects of Capital
These are the revenue consequences of undertaking capital            + 104   2009/10
works within the agreed capital programme built into the             + 177   2010/11
cash target.                                                                 onwards

(f)Review in house provision with high unit costs
The 2008/09 revenue budget included an efficiency saving of          + 340   2009/10
£350,000 following a review of in house provision with high                  onwards
unit costs. At unit level it seemed possible for this saving to
be achieved.

To take forward the work to achieve the savings identified, a
detailed, client by client needs analysis was undertaken.
With this individual information we have looked at the
availability of suitable alternative services in the market. It is
now clear that a number of the service users have more
complex and multiple disabilities than previously thought and
their needs cannot be met easily using other providers.
There are some service users fro whom suitable alternative
provision could be made, but while a core of service users
remains for whom there is no alternative provision it is not
possible to significantly reduce unit costs. The current
service must be re-provided on a different basis to give both
short-term and long-term care to these people and plans are
now in place to raise a capital bid to achieve this in a more
efficient way. Therefore, apart from around £10,000 of
staffing costs, the efficiencies in 2008/09 and future years
will not be met.




                                     27
                                                    APPENDIX 1 C (continued)

                                                                   £’000
(g) Meals on Wheels
A reconfiguration of the meals on wheels service across the         + 85   2009/10
county has resulted in a social enterprise organisation            + 170   2010/11
providing the meals. Efficiency savings were projected             + 241   2011/12
based on a break-even model of charge against cost of              + 241   2012/13
service. This model was based on the participation of all
Districts and on a fairly significant increase in charges. So
far four districts have transferred services to the social
enterprise and we have entered into transitional
arrangements with them so they continue to offer subsidy to
the service over 3 years. Charges have been increased, but
not yet to match the cost of the service and negotiations are
underway with other Districts regarding transfer to the new
organisation. Over time, if more Districts transfer their
service, the unit cost of meals should decrease and we can
also raise charges over time but need to be careful not to
affect take-up in so doing. The costs being incurred by the
county council are significantly lower that would have been
the case if districts had simply handed back existing services
to the county as some planned to do, as it is our legal
responsibility to provide this service.

(h) Supporting People VFM and Ineligible Services
As a result of the Value for Money exercise that was               + 467   2009/10
undertaken in respect of Supporting People schemes,                + 933   2010/11
services and parts of services have been identified that will              onwards
be ineligible for Supporting People funding. The total of the
ineligible services is estimated to be over £1.6m.
These ineligible Supporting People costs are being offset to
some extent by re-tendering existing services and
terminating existing contracts but costs of care which
continues to be requires must be picked up through care
budgets.

Funded from Grant

(a) Social Care Reform Grant
Councils have been given a ring-fenced Social Care Reform        (1,000)   2009/10
Grant for three years 2008/09 – 2010/11. This money is                     onwards
provided to councils for funding development work to meet
the national self-directed support policy agenda and
associated commissioning activity. A number of permanent
posts funded from ACS revenue are already in place to
complete this work and can be legitimately funded from the
grant, thereby releasing the revenue. There is a risk
associated with this option in that it cannot be guaranteed
that the grant-funding will continue beyond 2011 and these
are permanent posts.




                                  28
                                                         APPENDIX 1 C (continued)

SAVINGS

                                                                  £’000
FYE of Previous Efficiencies (2008/09 & Prior Years)
Value for Money (previously Gershon)

(a) Individual Budgets for Older People
Efficiencies are being achieved in 2008/09 and further            (500)   2009/10
efficiencies will be achieved in 2009/10 and future years                 onwards
from the implementation of individual budgets for older
people.

(b) Re-tendering Countywide Homecare Block Contract               (520)   2009/10
Efficiencies are and will continue to be achieved as a result     (880)   2010/11
of re-tendering the countywide homecare contract that was       (1,240)   2011/12
awarded to Goldsborough in February 2007.                       (1,600)   2012/13

(c) Re-tendering Homecare Block Contracts
Efficiencies are and will continue to be achieved from            (370)   2009/10
2008/09 onwards as a result of re-tendering the homecare          (610)   2010/11
block contracts. The new contracts have been in place since       (850)   2011/12
April 2008.                                                     (1,090)   2012/13

(d) Individual Banded Budgets for Learning Disability
placements                                                        (180)   2009/10
Efficiencies are being achieved in 2008/09 and further            (360)   2010/11
efficiencies will be achieved in 2009/10 and future years         (540)   2011/12
from the implementation of individual budgets for older           (720)   2012/13
people.

(e) Expert Purchasing of Care Placements for Learning
Disability
Expert purchasing of care placements for people with a            (500)   2009/10
Learning Disability produces savings. Some savings are            (750)   2010/11
being generated by reviewing the unit costs of existing         (1,000)   2011/12
clients. However, the majority of the projected savings are               onwards
and will be achieved by assessing the estimated cost of a
new client based on their dependency level and then
negotiating with providers to ensure that the cost of the
placement is in line with the estimated cost.

(f) Extra Care Sheltered Housing
An increase in the supply and use of extra care sheltered         (100)   2009/10
housing rather than residential care for older people will        (200)   2010/11
generate savings estimated to be around £5,000 per person         (300)   2011/12
per annum.                                                                onwards




                                     29
                                                            APPENDIX 1 C (continued)

                                                                     £’000
(g) Better procurement & Individual Budgets for Physical
Disability
Savings will be generated by the better procurement and              (100)   2009/10
setting of individual budgets for the physical disability client     (150)   2010/11
group. A new commissioning strategy has been developed               (200)   2011/12
and is being implemented. A pilot scheme to test the                 (250)   2012/13
proposed model of individual budgets was set up during
2008/09.

(h) PC Leasing
This is the full year effect of the saving achieved as a result        (4)   2009/10
of the decision to purchase PCs instead of leasing them.                     onwards

Other Savings

(i) Increase charges for Non-Residential Services to more
closely reflect actual cost of the service provided
Clients who were assessed as being full cost were charged            (500)   2009/10
at a standard rate for both home care and day care services.                 onwards
However, the actual cost of the service provided was greater
than the standard charge. The standard charge was
increased in 2008/09 to more closely reflect the actual cost
of providing the service. This is the full year impact of this
change of charging policy.

2009/10 Cashable Efficiency Savings
Value for Money (previously Gershon)

(a) HPFT to seek further efficiencies in delivery and
commissioning of Mental Health services
The cost of mental health services to the social care budget         (700)   2009/10
in Hertfordshire is high relative to other authorities. The Joint            onwards
Commissioning Team will negotiate with Hertfordshire
Partnership NHS Foundation Trust to identify ways of
delivering or purchasing services more efficiently. ACS will
share some of the methods it is using to reduce learning
disability costs so that HPFT can apply these to mental
health services for adults (18 to 64 year olds).




                                      30
                                                         APPENDIX 1 C (continued)

                                                                  £’000
(b) Restricting the increases in fees paid to care providers
This efficiency saving is based on the increases in fees to be   (3,669)   2009/10
paid to care providers being around 1.6% less overall than                 onwards
the inflationary pressures identified and the increase in fees
requested by the Hertfordshire Care Providers Association
(HCPA). This would mean the application of 4.2% uplift for
care homes and 4.0% uplift for homecare providers. This
proposal takes into account the impact of the increase in the
minimum wage in October 2008, and the impact of
electricity/gas, mileage/fuel and food inflation (30%, 15%
and 9.5% respectively). The provision for pay inflation of 3%
is less than providers are suggesting they need – their
estimates are based on pay keeping pace with RPI.

(c) Equipment Retail Model
Based on an outline business case using nationally                (500)    2009/10
developed tools, efficiency savings will be achieved by           (750)    2010/11
implementing the retail model for the supply of community                  onwards
equipment. Detailed feasibility work is required to confirm
efficiency potential, market readiness and to ensure
maintenance of service quality.

(d) Enabling Homecare / Intermediate Care
Pressure will be reduced on the purchasing budget for older       (750)    2009/10
people by extending access to enabling homecare and                        onwards
intermediate care across the county.


(e) Day Services Modernisation – Older People
Savings will be achieved through a review and                     (160)    2009/10
reconfiguration of day services for older people. This will be    (190)    2010/11
based on looking geographically at needs and existing                      onwards
provision and rationalising where there is under-use of
provision.

(f) Extra Care Sheltered Housing
Further increases in the supply and use of extra care             (400)    2009/10
sheltered housing rather than residential care for older                   onwards
people will generate savings estimated to be around £5,000
per person per annum.

(g) Supporting People Administration Grant
The Supporting People administration grant will reduce by           (74)   2009/10
£74,000 in real terms in 2009/10. Efficiency savings will be               onwards
made within the expenditure budget to match the loss of
grant.




                                     31
                                                       APPENDIX 1 C (continued)

                                                                £’000
(h) Supporting People General Grant
Similar to above, the Supporting People general grant will be   (546)   2009/10
reducing by £546,000 in real terms in 2009/10. Efficiency               onwards
savings will be made within the expenditure budget to match
the loss of grant.

Other Savings

(a) Additional Income
Additional income will be generated from more rigorously        (300)   2009/10
pursuing debts, maximising income from legal charges etc.               onwards




                                    32
                                               APPENDIX 2


               PORTFOLIO: COMMUNITY SAFETY

       STANDSTILL REVENUE BUDGET 2009/10 - 2012/13




APPENDIX 2 - CONTENTS

A    Commentary
B    Fire and Rescue
C    Trading Standards
D    Crime and Drugs Strategy Unit
E    Coroners Service
F    Registration Service
G    Emergency Planning




                                33
                                                                APPENDIX 2 A

                               COMMENTARY

1.1     Appendices 2B to 2G outline the inflation and cost pressures facing
        the Community Safety portfolio in 2009/10 and the medium term.
        This gives rise to 2009/10 standstill budgets after efficiency savings
        (excluding capital charges and the FRS17 pension adjustment) as
        follows:


                                                          £’000
               Fire & Rescue                              37,355
               Trading Standards                           3,024
               Crime & Drugs Strategy Unit                 2,824
               Coroners Service                            1,052
               Registration Service                             949
               Emergency Planning                               689
               Total Community Safety                     45,893

1.2     The cashable efficiency savings which have been identified by
        Executive Members and Chief Officers are summarised below with
        further details provided in Appendices 2B to 2G.

                                          Crime &
                                           Drugs
                Fire &      Trading       Strategy               Regist’n   Emergency
               Rescue      Standards        Unit     Coroners    Service     Planning
                £’000        £’000         £’000      £’000       £’000        £’000
FYE of
Previous
Efficiencies
- Value for
Money
Savings
FYE of
Previous
Efficiencies           -              -        500          -           -           -
- Other
Savings
2009/10
Value for
Money
                     50            27            -         15         14           20
Savings
2009/10
Other                  -           73            -          -         15            -
Savings
Total                50           100          500         15         29           20



                                          34
                                                             APPENDIX 2 B

           REVENUE BUDGET 2009/10 – 2012/13
      AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                   FIRE & RESCUE

Chief Fire Officer: Roy Wilsher (01992 507501)
Contact for queries: Mark Yates (01992 507503)

                                     2009/10   2010/11 2011/12 2012/13
                                      £’000     £’000     £’000    £’000
2008/09 Original Budget                36,462     36,462   36,462   36,462
Technical Adjustments 2008/09             (85)       (85)     (85)     (85)
Technical Adjustments 2009/10                0          0        0        0
Adjusted Budget                        36,377     36,377   36,377   36,377
Inflation                                 984      1,968    2,952    3,936
Base Budget                            37,361     38,345   39,329   40,313
Pressures for Change:
Legislative Changes:
(a) Changes in Working Time                 1          1        1        1
    Directive
(b) Driver Training                        36        36        36       36
Other Pressures:
(a) LGPS employer's contributions          46         46       46        46
(b) Capital Payback                         6       (74)    (137)     (189)
(c) Regional Management Board               5         25       25        25
(d) Reduction in employers
                                          (50)      (50)      (50)     (50)
contributions
Total Pressures for Change                 44       (16)      (79)    (131)
STANDSTILL BUDGET BEFORE
                                       37,405     38,329   39,250    40,182
EFFICIENCIES
2009/10 Cashable Efficiency
Savings - Value for Money
(a) Efficiency adjustments to
                                          (50)      (50)      (50)     (50)
    Various Budgets
Total 2009/10 Cashable Efficiency
                                          (50)      (50)      (50)     (50)
Savings
STANDSTILL BUDGET AFTER
                                       37,355     38,279   39,200    40,132
EFFICIENCIES




                                35
                                                        APPENDIX 2 B (continued)

PRESSURES FOR CHANGE
                                                                 £’000
Legislative Changes
(a) Changes in Working time Directive
In line with the amendments to the Working Time                    +1    2009/10
Regulations 1998, from 1st October 2007 holiday                          onwards
entitlement for temporary staff increased. This is the full
year effect of the changes implemented in 2008/09.

(b) Driver Training
Changes to the Road Traffic Act 2006 have imposed a               +36    2009/10
requirement on the Service to ensure all blue light drivers              onwards
are trained and assessed to a new standard. The Service
has until January 2010 to implement and then to facilitate a
rolling programme, which will be purchased from an
external provider.

Other Pressures
(a) Local Government Pension Scheme (LGPS)
employer’s contributions                                          +46    2009/10
Estimated cost of the increase in employer’s contribution                onwards
towards the Local Government Pension Scheme.
(b) Capital Payback                                                +6    2009/10
Pay back associated with schemes funded by the general            (74)   2010/11
capital programme.                                               (137)   2011/12
                                                                 (189)   2012/13
(c) Regional Management Board
Payment to the regional management board to support the            +5    2009/10
collaborative work of various work streams.                       + 25   2010/11
                                                                         onwards
(d) Reduction in employer contributions
Estimated cost reduction in employers pension                     (50)   2009/10
contributions as a result of the introduction of the new fire            onwards
fighters pension scheme 2006.




                                    36
                                          APPENDIX 2 B (continued)

CASHABLE EFFICIENCY SAVINGS
2009/10 Cashable Efficiency Savings
Value for Money (previously Gershon)

(a) Efficiency adjustment to Various Budgets
This level of saving can be achieved by more effectively     (50)    2009/10
managing certain budgets headings.                                   onwards




                                  37
                                                                 APPENDIX 2 C
           REVENUE BUDGET 2009/10 – 2012/13
      AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                TRADING STANDARDS
Head of Trading Standards: Guy Pratt (01727 813849)
Contact for queries: Tolu Cliffe (01992 555391)
                                            2009/10 2010/11 2011/12 2012/13
                                             £'000    £'000    £'000    £'000
2008/09 Original Budget                        2,970    2,970    2,970    2,970
Technical Adjustments 2008/09                     (8)      (8)      (8)      (8)
Technical Adjustments 2009/10                       0        0      30       30
Adjusted Budget                                2,962    2,962    2,992    2,992
Inflation                                         69      138      207      276
Base Budget                                    3,031    3,100    3,199    3,268
Pressures for Change:
Legislative Changes:
(a) The Regulatory Enforcement and
Sanctions Act 2008                               23       23        23       23
Other Pressures:
(a) LGPS employer’s contributions                23       23       23        23
(b) Revenue Effects of Telecom                   (3)      (3)      (3)       (3)
(c) Rent                                           5        0        0         0
(d) Proceeds of Crime Act 2002                   45       45       45        45
Total Pressures for Change                       93       88       88        88
STANDSTILL BUDGET BEFORE
                                              3,124     3,188    3,287    3,356
EFFICIENCIES

2009/10 Cashable Efficiency Savings -
Value for Money
(a) EETSA Business Advice Project               (23)     (23)     (23)      (23)
(b) Trading Standards on-line services           (4)      (4)      (4)       (4)

2009/10 Cashable Efficiency Savings -
Other
(a) Increased income Explosive licensing         (5)      (5)      (5)       (5)
(b) Increased income Weighbridge                 (6)      (6)      (6)       (6)
(c) Increased income Metrology laboratory
income                                           (5)      (3)      (2)       (2)
(d) Prosecution cost recovery                    (5)      (5)      (5)       (5)
(e) Reduced mobile phone costs                   (3)      (3)      (3)       (3)
(f) Reduced furniture costs                      (4)      (4)      (4)       (4)
(g) Increased income from Proceeds of
Crime Act 2002                                  (45)     (45)     (45)      (45)
Total 2009/10 Cashable Efficiency Savings      (100)     (98)     (97)      (97)

STANDSTILL BUDGET AFTER                       3,024     3,090    3,190    3,259
EFFICIENCIES




                                 38
                                    APPENDIX 2 C (continued)

PRESSURES FOR CHANGE

                                                                  £’000
Legislative Changes
(a) The Regulatory Enforcement and Sanctions
Act 2008                                               +23     2009/10
This Act places new duties on the way local
authorities support businesses and requires the                onwards
setting up of ‘Primary authority partnerships’
effective from 1 April 2009. Legislation requires
the equivalent of 2.5 officers but does allow for
cost recovery from businesses if a ‘Primary
authority partnership’ is entered into. The net
additional resource required is 0.5 officer.

Other Pressures

(a) Local Government Pension Scheme (LGPS)              +23    2009/10
employer’s contributions                                       onwards
Estimated cost of the increase in employer’s
contribution towards the Local Government
Pension Scheme.
(b) Revenue Effects of Telecoms
These are the authority’s revenue consequences           (3)   2009/10
of undertaking telecommunications capital works.               onwards

(c) Rent
The lease for the Trading Standards premises (45         +5    2009/10
Grosvenor Road, St Albans) runs from the 1 May                   only
2005 until the 30 April 2015 with a break option
on 30 April 2010 subject to giving not less that six
months notice.
The rent is currently subject to a rent review
process that began on 24 June 2008. LSH are
representing HCC in this anticipated increase.

(d) Proceeds of Crime Act 2002
The cost of an officer to undertake this work.          +45 2009/10
                                                            onwards




                                       39
                                                          APPENDIX 2 C (continued)

CASHABLE EFFICIENCY SAVINGS

                                                                 £’000
2009/10 Cashable Efficiency Savings
Value for Money (previously Gershon)
(a) EETSA Business Advice Project
EETSA (East of England Trading Standards Authorities)               (23)   2009/10
have commissioned and undertaken an innovative trading                     onwards
standards business advice project. This will establish a
robust regionalised approach to providing Trading Standards
business advice and information. This will generate
efficiencies for each Authority within the region by sharing
the resources required to keep information up to date and
consequently avoiding the duplication of work while at the
same time ensuring uniformity of advice and information for
businesses. This will generate year on year savings of 0.5
officers.

(b)Trading Standards on-line legislative services
Re-evaluation and re-negotiation of the Service’s needs in           (4)   2009/10
this area will generate year on year savings.                              onwards

2009/10 Cashable Efficiency Savings - Other
(a) Explosive Licensing                                              (5)   2009/10
2007/2008 fees indicate that the Service may be able to                    onwards
meet an additional income in this area.

(b) Weighbridge                                                      (6)   2009/10
Negotiations with the Police and VOSA have resulted in                     onwards
additional income for future years.

(c)Metrology laboratory Income
The closure of a competitor laboratory has provided                  (5)   2009/10
additional income opportunities for the Service’s Metrology          (3)   2010/11
Lab. With effective marketing, estimated income is as                (2)   2011/12
stated.                                                                    onwards

(d) Prosecution cost recovery
Increased income due to increased number of cases taken              (5)   2009/10
                                                                           onwards
(e) Mobile Phone charges.
Overall reduction in costs due to staff no longer using              (3)   2009/10
mobiles to access Citrix via laptops                                       onwards




                                       40
                                                         APPENDIX 2 C (continued)

                                                                 £’000
(f) Furniture
New ways of working (TWWW) means this budget will be no              (4)   2009/10
longer required.                                                           onwards

(g) Additional income from Proceeds of Crime Act 2002
The income allocation for Proceeds of Crime Act 2002               (45)    2009/10
represents the cost recovery figure for employing an officer               onwards
to undertake this work. This is not anticipated year on year
consistent income, and will always be subject to a fairly high
level of uncertainty because ultimately it is for a Court of
Law to decide on income allocated. Financial investigations
are first and foremost are about deterrent to crime and
taking money off of criminals. Experience amongst Financial
Investigators shows that new cases come in quicker than
ongoing ones are disposed of so, and that cost recovery
needs to be considered over a long period (3 years or
more). Once income starts to be recovered there is an
expectation that any shortfall in income from previous years
will be met by income received in future years. It might also
be the case that a large amount of monies recovered at any
given time will also serve to cover any shortfall in future
years.




                                       41
                                                                                APPENDIX 2 D

                     REVENUE BUDGET 2009/10 – 2012/13
                AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                      CRIME & DRUGS STRATEGY UNIT

Head of Crime & Drugs Strategy Unit: Philip Winter (01438 843642)
Contact for queries: Iain MacBeath (01992 556363)

                                            2009/10 2010/11 2011/12 2012/13
                                             £’000   £’000   £’000   £’000
2008/09 Original Budget                        2,262   2,262   2,262   2,262
Technical Adjustments 2008/09                      -       -       -        -
Technical Adjustments 2009/10                  1,001   1,001   1,001   1,001
2008/09 Adjusted Budget                        3,263   3,263   3,263   3,263
Inflation                                         56     112     168     224
Base Budget                                    3,319   3,375   3,431   3,487
Pressures for Change:
Other Pressures:
(a) LGPS employer’s contributions                 5         5               5         5


STANDSTILL BUDGET                             3,324     3,380     3,436           3,492
FYE of previous efficiencies (2008/09 &
Prior Years) - Other
(a) Savings (resulting from reducing PCSO
                                              (500)     (500)      (500)           (500)
funding)

STANDSTILL BUDGET AFTER
                                              2,824     2,880     2,936           2,992
EFFICIENCIES




PRESSURES FOR CHANGE

                                                                £’000
Other Pressures
a) Local Government Pension Scheme (LGPS) employer’s
contributions
Estimated cost of the increase in employer’s contribution               5       2009/10
towards the Local Government Pension Scheme.                                    onwards




                                    42
                                                          APPENDIX 2 D (continued)

CASHABLE EFFICIENCY SAVINGS

                                                                 £’000
2009/10 Cashable Efficiency Savings

Other Savings

a) Reduction in the County Council’s contribution to PCSO
funding                                                           (500)   2009/10
The County Council is contributing £1.3 million towards the               onwards
costs of Police Community Support Officers (PCSOs) in
2008/09. A £500,000 reduction in the County Council's
funding in 2009/10 will therefore reduce funding to £800,000.
However, this will still make the County Council one of the
highest contributors of all local authorities to PCSO funding.
The Police Authority were informed towards the end of the
financial year 2007/08 of the proposed reduction in the
County Council's funding of PCSOs from 2009/10 and
therefore the Police Authority were given over one year's
notice.




                                        43
                                                                    APPENDIX 2 E

                 REVENUE BUDGET 2009/10 – 2012/13
            AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                       CORONERS SERVICE

Head of Statutory Services: Steven Charteris (01707 897375)
Contact for queries: Tolu Cliffe (01992 555391)

                                            2009/10 2010/11 2012/12 2012/13
                                             £’000    £’000    £’000    £’000
2008/09 Original Budget                        1,040    1,040    1,040    1,040
Technical Adjustments 2008/09                     (5)      (5)      (5)      (5)
Technical Adjustments 2009/10                       0        0        0        0
Adjusted Budget                                1,035    1,035    1,035    1,035
Inflation                                         26       52       78      104
Base Budget                                    1,061    1,087    1,113    1,139
Pressures for Change:
Other Pressures:
a) LGPS employer’s contributions                  6           6            6         6

STANDSTILL BUDGET BEFORE
                                              1,067     1,093        1,119       1,145
EFFICIENCIES
2009/10 Cashable Efficiency Savings -
Value for Money
a) Special Post Mortem Examinations              (7)         (7)        (7)         (7)
b) Support Service Review                        (8)         (8)        (8)         (8)
Total 2009/10 Cashable Efficiency Savings       (15)        (15)       (15)        (15)
STANDSTILL BUDGET AFTER
                                              1,052     1,078        1,104       1,130
EFFICIENCIES


PRESSURES FOR CHANGE
                                                                   £’000
Other Pressures
a) Local Government Pension Scheme (LGPS) employer’s
contributions                                                         +6       2009/10
Estimated cost of the increase in employer’s contribution                      onwards
towards the Local Government Pension Scheme.




                                      44
                                                            APPENDIX 2 E (continued)

                                                                  £’000
2009/10 Cashable Efficiency Savings
Value for Money (previously Gershon)

a) Special Post Mortem Examinations
Special post mortem examination services such as                      (7)   2009/10
toxicology, histology should result in savings per annum.                   onwards

(b) Support Service Review
There has been increased flexibility developed between the            (8)   2009/10
roles of Coroner’s Officer and Coroner Service Administrator                onwards
resulting in potential savings. Increased use of IT has also
increased the efficiency of administrative processes.




                                       45
                                                               APPENDIX 2 F

                REVENUE BUDGET 2009/10 – 2012/13
           AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                    REGISTRATION SERVICE

Head of Statutory Services: Steven Charteris (01707 897375)
Contact for queries: Tolu Cliffe (01992 555391)

                                            2009/10 2010/11 2011/12 2012/13
                                             £’000   £’000   £’000   £’000
2008/09 Original Budget                          968     968     968     968
Technical Adjustments 2008/09                   (40)    (40)    (40)    (40)
Technical Adjustments 2009/10                      0       0       0       0
Adjusted Budget                                  928     928     928     928
Inflation                                         13      26      39      52
Base Budget                                      941     954     967     980
Pressures for Change:
Legislative Changes:
(a) General Register Office annual
   consolidated payment withdrawal               18      18       18      18

Other Pressures:
(a) LGPS employer’s contributions                18      18       18      18
(b) Capital payback                               1       5        5       5

Total Pressures for Change                       37      41       41      41
STANDSTILL BUDGET BEFORE
                                                978     995     1,008   1,021
EFFICIENCIES
2009/10 Cashable Efficiency Savings -
Value for Money
(a) Computerised booking system                (10)     (10)     (10)    (10)
(b) Single Registration District                (4)      (4)      (4)     (4)
2009/10 Cashable Efficiency Savings -
Other
(a) Draft Borders and Immigration Bill         (15)     (15)     (15)    (15)
Total 2009/10 Cashable Efficiency Savings      (29)     (29)     (29)    (29)
STANDSTILL BUDGET AFTER
                                                949     966      979     992
EFFICIENCIES




                                     46
                                                         APPENDIX 2 F (continued)

PRESSURES FOR CHANGE
                                                                  £’000
Legislative Change

a) General Register Office annual consolidated payment
The consolidated payment from the General Register                   +18    2009/10
Office for birth registrations will cease from 1 April 2009.                onwards
This is due to form FP58 being withdrawn by the NHS.
This form is currently issued at the time of a birth
registration to enable parents to register with a GP
practice. This will result in a loss of income for the service.

Other Pressures

a) Local Government Pension Scheme (LGPS) employer’s
contributions                                                       + 18    2009/10
Estimated cost of the increase in employer’s contribution                   onwards
towards the Local Government Pension Scheme.
b) Capital Payback
Pay back associated with schemes funded by the general               +1     2009/10
capital programme.                                                   +5     2010/11
                                                                            onwards

CASHABLE EFFICIENCY SAVINGS

2009/10 Cashable Efficiency Savings
Value for Money (previously Gershon)

a) Computerised Booking System.
The computerised booking system will enable improved                (10)    2009/10
allocation of staff to appointments and ceremonies, thus                    onwards
reducing the use of additional, casual staffing.

b) Single Registration District.
Transition to a single Registration District for Hertfordshire        (4)   2009/10
from 8 districts will result in reduced printing costs as                   onwards
information leaflets / publications will be generic across the
county.




                                          47
                                                      APPENDIX 2 F (continued)

                                                              £’000
Other Savings

a) Draft Borders and Immigration Bill.
Increased income generation in Citizenship due to               (15)   2009/10
proposed changes to the naturalisation process. It is                  onwards
expected that there will be a peak in applications prior to
legislative change thus increasing Nationality Checking
Service income. Also the proposals promote Citizenship
application and therefore ceremony income is expected to
increase.




                                        48
                                                                   APPENDIX 2 G

                 REVENUE BUDGET 2009/10 – 2012/13
            AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                      EMERGENCY PLANNING

Head of Safety, Emergency and Risk Management Unit: John Boulter (01992
555951)
Contact for queries: Tolu Cliffe (01992 555391)

                                             2009/10 2010/11 2010/11 2012/13
                                              £'000    £'000    £'000    £'000
2008/09 Original Budget                           669      669      669      669
Technical Adjustments 2008/09                      (2)      (2)      (2)      (2)
Technical Adjustments 2009/10                        0        0        0        0
Adjusted Budget                                   667      667      667      667
Inflation                                          14       28       42       56
Base Budget                                       681      695      709      723
Pressures for Change:
Other Pressures:
(a) LGPS employer's contributions                  8          8          8         8
(b) Implementation of Pitt Review
                                                  20         20         20         0
Recommendations
Total Pressures for Change                        28         28         28         8
STANDSTILL BUDGET BEFORE
                                                 709        723        737     731
EFFICIENCIES
2009/10 Cashable Efficiency Savings -
Value for Money
(a) Support Service Review                       (20)       (20)       (20)   (20)

STANDSTILL BUDGET AFTER
                                                 689        703        717     711
EFFICIENCIES

PRESSURES FOR CHANGE

                                                               £’000
Other Pressures
a) Local Government Pension Scheme (LGPS) employer’s
contributions                                                      +8    2009/10
Estimated cost of the increase in employer’s contribution                Onwards
towards the Local Government Pension Scheme.




                                        49
                                                     APPENDIX 2 G (continued)

                                                              £’000
b) Implementation of Pitt Review Recommendations
The Pitt Review is expected to result in the Authority          + 20    2009/10
taking on new responsibilities for leading in the               + 20    2010/11
management of local flood risk, and also as the lead            + 20    2011/12
responders in relation to multi-agency planning for severe        nil   2012/13
weather emergencies at the local level. These potentially
represent significant additional work which the Authority
would struggle to progress with the current level of
resources within the Emergency Planning Team.

CASHABLE EFFICIENCY SAVINGS

2009/10 Cashable Efficiency Savings
Value for Money (previously Gershon)

a) Support Service Review
New ways of working, including the introduction of MSS/         (20)    2009/10
ESS, greater use of individual voice messaging services                 onwards
etc. means that Emergency Planning Officers are
increasingly "self sufficient" in respect of traditional
administrative support. These efficiencies means that the
Resilience Team no longer requires the levels of
administrative support currently available and a post which
has recently become vacant within the SERMU support
team will be withdrawn.




                                       50
                                                     APPENDIX 3

        PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES

       STANDSTILL REVENUE BUDGET 2009/10 – 2012/13


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

Contact for queries: Ian Knowles, Assistant Director -
Performance & Business Support, Children, Schools & Families
(01992 555792)


APPENDIX 3 - CONTENTS

A     Commentary


APPENDIX 3(1) – CHILDREN’S SERVICES

A     Standstill Revenue Budget 2009/10 – 2012/13 and Movement
      from Current Year’s Budget
B     Pressures for Change & Savings


APPENDIX 3(2) – EDUCATION (NON SCHOOLS)

A     Standstill Revenue Budget 2009/10 – 2012/13 and Movement
      from Current Year’s Budget
B     Pressures for Change & Savings


APPENDIX 3(3) - LIBRARIES, CULTURE & LEARNING

A     Standstill Revenue Budget 2009/10 – 2012/13 and Movement
      from Current Year’s Budget
B     Pressures for Change & Savings


APPENDIX 3(4) - SCHOOLS

A     Standstill Revenue Budget 2009/10 – 2012/13 and Movement
      from Current Year’s Budget
B     Pressures for Change & Savings




                                51
                                                       APPENDIX 3 A

                           COMMENTARY

1.1   Appendices 3 (1) to 3 (4) outline the inflation and cost pressures
      facing the service in 2009/10 and the medium term. These
      relate to the four service budget blocks: Education non-schools,
      Children’s Services, Libraries Heritage and Arts and the
      Dedicated Schools Budget. This gives rise to a 2009/10
      standstill budget for Children, Schools and Families (CSF), after
      efficiency savings, of £220.163 million (excluding the Dedicated
      Schools Budget, capital charges and the FRS17 pension
      adjustment).

1.2   The cashable efficiency savings which have been identified by
      Executive Members and Chief Officers are summarised below
      with further details provided in Appendices 3 (1) to 3 (3).


                           Children’s Education        Libraries,      Total
                            Services    Non-           Culture &
                                       schools         Learning
                                £’000     £’000             £’000          £’000
      Cashable Efficiency Savings
      FYE of Previous
      Efficiencies - Value          2       146               100           248
      for Money
      FYE of Previous
                                     -      300                   -         300
      Efficiencies - Other
      2009/10 Value for
                                  783       668                 24         1,019
      Money Savings
      2009/10 Other
                                  584     1,562                   -        2,146
      Savings
      Total                     1,369     2,676               124          3,713




                                  52
                                                                 APPENDIX 3 (1) A

                  REVENUE BUDGET 2009/10 - 2012/13
           AND MOVEMENT FROM CURRENT YEAR’S BUDGET
       CHILDREN, SCHOOLS AND FAMILIES (CHILDREN’S SERVICES)

                                           2009/10    2010/11    2011/12    2012/13
                                            £’000      £’000      £’000      £’000

2008/09 Original Budget                    101,644    101,644    101,644    101,644
Technical Adjustments 2008/09                (314)      (314)      (314)      (314)
Technical Adjustments 2009/10                5,821      5,731      5,731      5,731
Adjusted Budget                            107,151    107,061    107,061    107,061
Inflation                                    2,617      5,149      7,681     10,213
Base Budget                                109,768    112,210    114,742    117,274
Pressures for Change:
Demography:
(a) Independent Placements                   (227)      (383)      (383)      (383)
(b) Legal Fees and Charges                     238        238        238        238
(c) Higher Education (CLA)                    (40)       (40)       (40)       (40)
Legislative Changes:
(a) Integrated Children’s System - Super
Users                                          400        267           0          0
(b) Legal Fees and Charges                     180        180        180        180
(c) Child Protection Conference Support        161        161        161        161
(d) Conciliation & Advice                       (8)        (8)        (8)        (8)
(e) Changes in Working Time Directive           88         88         88         88
(f) Integrated Children’s System             (200)      (200)      (200)      (200)
(g) Complaints                                  20         20         20         20

Other Pressures:
(a) Client Services and Emergency Duty
Team (EDT)                                    214        214        214         214
(b) Local Government Pension Scheme           404        404        404         404
(c) Capital Payback                             0          0        (50)      (250)
(d) Residential Short Break Services for
Children with Disabilities                     360          0         0           0
Revenue Effects of Telecoms                     87         87        87          87
Total Pressures for Change                   1,677      1,028       711         511
STANDSTILL BUDGET BEFORE                   111,445    113,238    115,453    117,785
EFFICIENCIES




                                53
                                                     APPENDIX 3 (1) A (continued)

                                          2009/10     2010/11    2011/12    2012/13
                                           £’000       £’000      £’000      £’000
FYE of Previous Efficiencies (2008/09 &
Prior Years) - Value for Money
(a) PC Leasing                                 (2)         (2)        (2)        (2)
2009/10 Cashable Efficiency Savings -
Value for Money
(a) Customer Focus                            (18)        (18)       (18)       (18)
(b) Children Looked After (CLA)
Transport and Contact arrangements          (140)       (140)      (140)      (140)
(c) Housing for Care Leavers                 (70)        (70)       (70)       (70)
(d) Directors Office                         (29)        (29)       (29)       (29)
(e) Support Service Review                   (70)        (70)       (70)       (70)
(f) Review of Family Support Service        (456)       (456)      (456)      (456)
2009/10 Cashable Efficiency Savings -
Other
(a) Better working with our Partners        (188)       (188)      (188)      (188)
(b) Strategic Commissioning Team            (100)        (80)       (80)       (80)
(c) Specialist Adolescent Team Client
Expenditure                                  (20)         (20)       (20)       (20)
(d) District Partnership Teams               (26)
(e) Directors Office                        (250)       (250)      (250)      (250)
Total 2009/10 Cashable Efficiency
Savings                                    (1,369)     (1,323)    (1,323)    (1,323)
STANDSTILL BUDGET AFTER
                                          110,076     111,915    114,130    116,462
EFFICIENCIES




                                54
                                                               APPENDIX 3 1 (B)

CHILDREN, SCHOOLS AND FAMILIES (CHILDRENS SERVICES)

PRESSURES FOR CHANGE
                                                               £’000

Demography

(a) Independent Placements
There is a continued pressure on the volume and level of       (227)   2009/10
spend in this area. Extra funding was built into the base      (383)   2010/11
budget from 2007/08 to deal with the rise in the number of             onwards
assessments being completed, leading to a rise in the
number of children being looked after in the short term.
This extra funding was greatest in 2008/09 and reduced
in subsequent years, reflecting the fact that at the time
preventative initiatives such as family Group Conferences
and Children In Need structures were not fully in place,
and the range of local placements particularly for older
children were not delivered.

(b) Legal Fees and Charges                                     +238    2009/10
The level of expenditure incurred by our legal colleagues              Onwards
in dealing with the cost of social care cases continues to
outstrip the current budget levels. An additional amount
of £238k is required based on the current forecast for the
current year.

(c) Higher Education (CLA)
This area funds support to Children Looked After who            (40)   2009/10
advance to Higher Education. In 2009/10 the number                     onwards
supported will show an overall reduction. It is therefore
estimated that a reduction of £40k can be achieved.
This budget depends on the number of children looked
after that enter higher education and will vary from year to
year. We therefore can only assume this decrease will be
for one year although it will be reviewed as part of each
year’s budget development process.




                                  55
                                                     APPENDIX 3 1 (B) (continued)

                                                                £’000
Legislative Changes

(a) Integrated Children’s System - Super Users                   +400   2009/10
The implementation of ICS is a requirement under the             +267   2010/11
Children’s Act 2004.The use of ‘Super Users’ has proven             0   2011/12
a successful approach and is part of the reason                     0   2012/13
Hertfordshire has not had difficulties experienced by other
Authorities, such as increasing the bureaucratic burden
on social workers, delayed timescales in assessments
during implementation, and inaccurate data. We currently
have 14 Super Users and intend to reduce this to twelve
in 2009/10. It is considered that we could reduce this to 8
in 2010/11 at a reduced cost of £267k. The Super Users
will support over 180 social workers plus admin and
managers with their development as ICS users. The
need for Super Users on an ongoing basis will be
reviewed during the next twelve months and proposals
brought forward as part of the budget preparations for
2010/11.

(b) Legal Fees and Charges                                       +180   2009/10
When the change to the Public Law Outline was                           onwards
implemented, the Government provided additional funding
through the RSG to each Authority. CSF received an
addition to its budget for the change in court fees in
2008/09, however the actual level of costs expected to be
incurred in a full year is approximately £180k higher than
the budget provided. These costs are incurred in meeting
the service objectives around child protection and the only
way they can be avoided is to not take action to bring
children into Care. If this action was not taken then not
only would children be placed at significant risk but also
the Authority could face subsequent legal action should it
be found to have acted negligently.




                                 56
                                                       APPENDIX 3 1 (B) (continued)

                                                                  £’000
(c) Child Protection Conference Support                           +161     2009/10
The inclusion of older children and young people in their                  onwards
own child protection conferences has been a requirement
from the statutory “Working Together” guidance issued in
1991. The engagement of children and their families has
evolved considerably since then requiring lengthier
conferences as family structures have become more
complex. Often conferences have to be held in two parts
to enable children to partially attend the meeting in
difficult family situations. On average an initial child
protection case conference is now taking 1 hour 45
minutes.

In addition, the ICS system does not allow the further
stages of the Child Protection process to be entered until
the CPC notes are completed. As each child has now to
be entered individually, instead of as a family this has
increased the amount of preparation required before
each conference and the recording afterwards.

(d) Conciliation & Advice                                            (8)   2009/10
There is a reduced requirement for additional funding to                   Onwards
cover the costs of independent investigation of
complaints.

(e) Changes in Working Time Directive                               +88    2009/10
In line with the amendments to the Working Time                            Onwards
Regulations 1998, from 1st October 2007 holiday
entitlement for temporary staff increased. This is the full
year effect of the changes implemented in 2008/09.

(f) Integrated Children’s System                                   (200)   2009/10
This relates to the ICS implementation, the second phase                   onwards
of which takes place during 2008/09. There was a one-off
increase in budget during 2008/09 relating to the cost of
supporting the project, including training and software.

(g) Complaints                                                      +20 2009/10
A change in legislation last year introduced the right to               onwards
request a stage two investigation if a complainant was not
satisfied with the outcome of a stage 1 investigation. This
has increased the workload of this team and has put
pressure on our capacity to meet the statutory deadlines.




                                  57
                                                      APPENDIX 3 1 (B) (continued)

                                                                 £’000
Other Pressures

(a) Client Services and Emergency Duty Team (EDT)                 +214    2009/10
This area of service has been managing an insufficient                    onwards
budget for a few years now and it has not proved possible
to deliver the level of service required within the existing
budget quantum. Therefore we are asking that this
pressure be recognised for 2009/10 and the budget made
sufficient for the level of required service.

(b) Local Government Pension Scheme                               +242    2009/10
Estimated cost of the increase in employer’s contribution                 Onwards
towards the Local Government Pension Scheme.


(c) Capital Payback                                                  +0   2009/10
Pay back associated with schemes funded by the general               +0   2010/11
capital programme.                                                 (50)   2011/12
                                                                  (250)   2012/13

(d) Residential Short Break Services for Children with
Disabilities                                                      +360    2009/10
As part of the budget proposals for 2008/09 an efficiency                   only
was identified as a result of proposed changes to the
delivery of short breaks for children with disabilities.
However the length of consultation period was
underestimated and the saving has not materialised. In
addition the new funding arrangements for short break
services will be introduced from April of next year and the
final amount received by Hertfordshire will be influenced
by our current level of expenditure. Therefore to
implement the change at this stage would see a reduction
in the level for funding from April 2009. Therefore we are
proposing to suspend this activity and integrate the
changes with the implementation of the new funding
regime in the new financial year. We see this as a one
year pressure that should be covered by the new funding
in future years.




                                  58
                                                       APPENDIX 3 1 (B) (continued)

                                                                  £’000
SAVINGS

FYE of Previous Efficiencies (2008/09 & Prior Years)
Value For Money (previously Gershon)

(a) PC Leasing                                                       (2)   2009/10
This is the full year effect of the saving achieved as a                   onwards
result of the decision to purchase PCs instead of leasing
them.

2009/10 Cashable Efficiency Savings Value for Money
(previously Gershon)

(a) Customer Focus                                                  (18)   2009/10
A review of non-staffing expenditure and the maintenance                   onwards
of a vacancy factor will provide an efficiency in the region
of £18k within this service.

(b) Children Looked After (CLA) Transport and Contact              (140)   2009/10
arrangements                                                               onwards
The provision of transport and ‘contact’ (arrangements for
ensuring CLAs remain in contact with their birth families)
have both been reviewed during the current year.

The transport contract has been re-commissioned and a
saving of £40k is anticipated.

CSF arrangements for ‘contact’ has been re-configured
with the creation of an internal team with an expected
saving of £100k.

(c) Housing for Care Leavers                                        (70)   2009/10
A review of the housing support to care leavers has                        onwards
identified that the arrangements with Phoenix can be
ceased without impact on the service to this cohort of
young people. This will provide an efficiency of £70k.

(d) Directors Office                                                (29)   2009/10
A review of current non-staffing expenditure will be                       onwards
undertaken and is expected to achieve savings of
approximately £29k.




                                  59
                                                      APPENDIX 3 1 (B) (continued)

                                                                 £’000

(e) Support Service Review                                         (70)   2009/10
As part of the corporate programme of Support Service                     onwards
Reviews CSF has two projects which will deliver savings
in 2009/10. The net savings from these reviews after
providing for the revised infrastructure for Business
Support will be in the region of £70k. This will maximise
the benefits of new technology in providing for increased
self service by managers and employees including the
ICS system.

(f) Review of Support Service
The development of a whole system for children and                (456)   2009/10
young people aged 0 to 19 who are on the threshold of                     onwards
care, which would encompass the Family Intervention and
Support Service and the Adolescent Support Services.
this would include reducing the number of Family
Intervention and Support teams and buildings to 6 and
expanding the age range for services they provide up to
19 years which will include the current adolescent support
services. This would provide a more streamlined service
from a children young people and families' perspective,
improved value for money and improved outcomes for
children and young people.

Cashable Savings - Other

(a) Better working with our Partners                              (188)   2009/10
CSF will work with partners to deliver efficiencies from                  onwards
across the Partnership arrangements without impacting
on the level of services provided. This will consider a
revision of partnership contribution levels and the delivery
of efficiencies within the service provided.

(b) Strategic Commissioning Team                                  (100)   2009/10
This team provides the central function across the                 (80)   2010/11
department for support to all commissioning activity. The                 onwards
department is currently reviewing the way this team
operates and how commissioning is supported. It is
anticipated that this review will create efficiencies or
additional grant income to provide an efficiency of £100k.

(c) Specialist Adolescent Team Client Expenditure                  (20)   2009/10
It is proposed that the SAT team client budgets can be                    onwards
reduced by £20k by curtailing some of the wider activity,
better deployment for the remaining funding and using
Section 17 budgets if necessary.




                                  60
                                                      APPENDIX 3 1 (B) (continued)

                                                                 £’000

(d) District Partnership Teams                                     (26)   2009/10
The partnership teams work within each district and have                    only
close working relationships with the 82 children’s centre
communities. It is anticipated that the increase in the
activity chargeable to the Surestart grant can be achieved
in 2009/10. This is expected to be in the region of £26k.

(e) Directors Office                                              (250)   2009/10
The Director’s office holds a number of contingency                       Onwards
budgets that cover a range of possible in year activity for
which no provision is made elsewhere in the budget. An
assessment at this time suggests these contingencies
can be reduced by £250k in 2009/10.




                                  61
                                                                APPENDIX 3 (2) A

                 REVENUE BUDGET 2009/10 - 2012/13
          AND MOVEMENT FROM CURRENT YEAR’S BUDGET
    CHILDREN, SCHOOLS AND FAMILIES (EDUCATION - NON SCHOOLS)

                                          2009/10    2010/11    2011/12    2012/13
                                           £’000      £’000      £’000      £’000

2008/09 Original Budget                    71,979     71,979     71,979     71,979
Technical Adjustments 2008/09               (573)      (573)      (573)      (573)
Technical Adjustments 2009/10              15,171     15,059     14,635     14,635
Adjusted Budget                            86,577     86,465     86,041     86,041
Inflation                                   2,252      4,025      5,798      7,571
Base Budget                                88,829     90,490     91,839     93,612
Pressures for Change:
Previous Policy Decisions:
  (a) Denominational Transport              (270)      (693)      (693)      (693)
Demography:
(a) Transport For Howe Dell pupils             (8)      (16)       (16)       (16)
Legislative Changes:
(a) Multi-Agency Psychology Services
(MAPS)                                       163        163        163         163
(b) Independent Safeguarding Authority
- vetting & barring scheme                      8          8          8          8
(c) Immigration - Applications for
                                                7          7          7          7
Permission to Work
(d) Complaints                                 30         30         30         30
Other Pressures:
(a) Attendance & Pupil Support               190        190        190         190
(b) Local Government Pension Scheme          404        404        404         404
(c) Revenue Effects of Telecoms               88         88         88          88
(d) BSF (Building Schools for the
Future)                                       900      3,050      4,200      4,500
(e) Special Educational Needs Service           60         60         60         60
(f) Home to School Transport                  230        230        230        230
(g) Business Rates                            (46)       (46)       (46)       (46)
Total Pressures for Change                  1,756      3,475      4,625      4,925
STANDSTILL BUDGET BEFORE                   90,585     93,965     96,464     98,537
EFFICIENCIES

FYE of Previous Efficiencies (2008/09 &
Prior Years) - Value for Money
(a) Strategy and Resources portfolio           34         34         34         34
(b) ICT Equipment                              60         60         60         60
(c) Participation Team Efficiencies          (30)       (30)       (30)       (30)
(d) Mainstream Home to School
                                               (6)        (6)        (6)        (6)
Transport
(e) PC Leasing                                (4)        (4)        (4)        (4)
(f) Herts Music Service                     (200)      (200)      (200)      (200)
                                     62
                                                       APPENDIX 3 (2) A (continued)

                                            2009/10     2010/11    2011/12    2012/13
                                             £’000       £’000      £’000      £’000

FYE of Previous Efficiencies (2008/09 &
    Prior Years) – Other
(a) Standards and School Effectiveness
                                              (300)       (300)      (300)      (300)
    - MECSS
2009/10 Cashable Efficiency Savings –
Value for Money
(a) Home to School Transport                  (229)        (95)       (95)       (95)
(b) Customer Focus                             (18)        (18)       (18)       (18)
(c) SEN Home to School Transport              (100)       (100)      (100)      (100)
(d) Achievement and Inclusion Team             (10)        (10)       (10)       (10)
(e) Governance Team                            (30)        (30)       (30)       (30)
(f) Primary School Effectiveness Team          (60)        (60)       (60)       (60)
(g) Participation Team                         (30)        (30)       (30)       (30)
(h) Support Service Review                    (130)       (130)      (130)      (130)
(i) Planning                                   (40)        (40)       (40)       (40)
(j) Directors Office                            (21)        (21)       (21)       (21)
2009/10 Cashable Efficiency Savings –
Other:
(a) National Challenge Programme                (55)        (55)       (55)       (55)
(b) Early Years: Charge activity to grant
                                                (10)        (10)       (10)       (10)
    for buddying programme
(c) Schools causing concern direct costs
                                                (50)        (50)       (50)       (50)
    budget
(d) Music Service                              (50)        (50)       (50)       (50)
(e) Specialist Advisory Service                (69)        (69)       (69)       (69)
(f) Hospital Tuition                          (548)       (548)      (548)      (548)
(g) Multi-Agency Psychology Services          (163)       (163)      (163)      (163)
(MAPS)
(h) Home to School Transport                  (167)       (167)      (167)      (167)
(i) Directors Office                          (250)       (250)      (250)      (250)
(j) Student Finance                           (150)
(k) Learning, Training & Research Team          (50)        (50)       (50)       (50)
Total 2009/10 Cashable Efficiency
                                             (2,676)     (2,392)    (2,392)    (2,392)
Savings
STANDSTILL BUDGET AFTER
                                             87,909      91,573     94,072     96,145
EFFICIENCIES




                                       63
                                                                    APPENDIX 3 (2) B

    CHILDREN, SCHOOLS AND FAMILIES (EDUCATION – NON SCHOOLS)

PRESSURES FOR CHANGE
                                                                    £’000
Previous Policy Decisions

(a) Denominational Transport                                        (270)   2009/10
Phased withdrawal of the entitlement to free denominational         (693)   2010/11
transport in accordance with cabinet decision on 24 July                    onwards
2006, providing arrangements for low income families and
siblings.

Demography
(a) Transport for Howe Dell pupils upon move of building
Mainstream Home to School Transport
The phased reduction of free home to school transport for             (8)   2009/10
pupils who have moved to the new Howe Dell site. This cost           (16)   2010/11
will reduce over time as these pupils leave the school.                     onwards

Legislative Changes
(a) Multi-Agency Psychology Services (MAPS)                         +163    2009/10
There are two parts to this pressure. The national                          onwards
requirements for the training of Educational Psychologists
have recently been changed. A qualified Educational
Psychologist must now undertake a mandatory doctorate in
place of the previous master’s qualification. This requires
students to obtain a post with a Local Authority in years two
and three of their doctorate. The increased cost of the extra
year and support whilst in years two and three will fall to Local
Authorities as the previous arrangement, where funding was
provided by the Children’s Workforce Development Council
(CWDC), has ceased.

In addition the Authority is required to make a contribution to
the CWDC of £63k as the mechanism of top slicing Local
Authority funding to resource their activity has also ended.

The recruitment of Educational Psychologists is a competitive
market and in order for Hertfordshire to compete we will
implement a programme of ‘grow your own’ around these
changes at an estimated cost of £100k.




                                        64
                                                       APPENDIX 3 (2) B (continued)

                                                                  £’000

(b) Independent Safeguarding Authority - Vetting & Barring           +8   2009/10
Scheme                                                                    onwards
The introduction of a new national Vetting & Barring Scheme
will commence from October 2009. It will be a criminal
offence for a person to work in a regulated position covered
by the scheme without being registered and for an employer
to employ them. Additional costs within services relate to the
extra cost of registering new and existing employees.

(c) Immigration - Applications for Permission to Work                +7   2009/10
New immigration legislation will come into effect from                    Onwards
November 2008. A new annual licence will be required along
with individual applications for permission to work. It is
anticipated that each application will cost £190.

(d) Complaints                                                      +30   2009/10
A change in legislation last year introduced the right to                 onwards
request a stage two investigation if a complainant was not
satisfied with the outcome of a stage 1 investigation. This has
increased the workload of this team and has put pressure on
our capacity to meet the statutory deadlines.

Other Pressures

(a) Attendance & Pupil Support                                     +190   2009/10
An earlier efficiency within this service to save £190k by                onwards
making Welfare Officers term time only was not able to be
implemented due to a lack of take up from current employees.
Advice from HR colleagues suggests the cost of enforcing
term time only contracts would outweigh any financial
benefits. Therefore whilst new starters will be recruited on a
term time only basis the saving will not be immediate and
therefore the budget is short by £190k.

(b) Local Government Pension Scheme                                 404   2009/10
Estimated cost of the increase in employer’s contribution                 onwards
towards the Local Government Pension Scheme.

(c) Revenue Effects of Telecoms                                      88   2009/10
These are the authority’s revenue consequences of                         onwards
undertaking telecommunications capital works.




                                       65
                                                       APPENDIX 3 (2) B (continued)

                                                                   £’000

(d) BSF (Building Schools for the Future)                          +900    2009/10
This represents the costs of planning for, developing and         +3,050   2010/11
implementing the Building Schools for the Future programme,       +4,200   2011/12
which is expected to span the next 10 years. This includes:       +4,500   2012/13
- programme and project management;
- client advice relating to design, costs, legal aspects,
finances, technical issues, and ICT development;
- monitoring and management of contracts (PFI, Facilities
Management, ICT);
- technical project management; and
- feasibility studies and surveys so far as these cannot be
undertaken by the Local Education Partnership.

This does not include costs of the programme itself, for which
costs will be identified and funding agreed separately for
example schools’ contributions to the costs of the ICT
managed service, Lifecycle maintenance, PFI affordability
gaps. These will be dealt with as part of the process of
gaining Council and PfS approval for the series of Outline
Business Cases that will need to be prepared covering each
area of the County.

(e) Special Education Needs Service                                 +60 2009/10
The number of appeals occurring within the service has been             onwards
on an increasing trend over the last two years with a similar
increase in complexity. In addition, the service works within a
complex statutory framework with parents increasingly using
legal advisers creating a higher level of legal challenge.

The service has been handling this increased activity through
increased caseloads on the existing team and by the use of
outside consultants. This has led to increased stress,
reflected in increased cases of sickness within the team and
the use of consultants creates pressure on the budget as well
as a lack of consistency in the case work, as consultants are
unfamiliar with Hertfordshire policies and schools.
It is proposed that, in order to establish sufficient capacity
within the team and increase the robustness of the Authority’s
ability to defend the legal challenges, two higher level
manager posts are created. These posts will absorb the
increasing demands on the service, embed the new ways of
working with parents recently introduced, and provide a
robust response to the increasing legal aspects of the
appeals process.




                                       66
                                                         APPENDIX 3 (2) B (continued)

                                                                     £’000

(f) Home to School Transport                                         +230 2009/10
The home to school transport team has identified pressures                onwards
arising from meeting the statutory requirement to provide full-
time education for excluded pupils and the obligation to
transport entitled children to school. The development of the 6
key stage 4 learning centres has created a pressure of £230k.

(g) Business Rates                                                    (46) 2009/10
This relates to the estimated additional costs arising from the            onwards
2006 revaluation of property for rating purposes.

SAVINGS
                                                                     £’000
FYE of Previous Efficiencies (2008/09 & Prior Years)
Value for Money (previously Gershon)

(a) Strategy and Resources portfolio                                  +34    2009/10
Following reviews within the Directorate and the Policy,                     onwards
Planning and Improvement Team, efficiencies of £88k built
into the 2008/09 budget included £34k of one-off savings.

(b) ICT Equipment                                                     +60    2009/10
Review of how equipment meets business needs in the                          onwards
context of the more flexible ICT access offered by TWWW
delivered one-off savings in 2008/09 in ICT costs.

(c) Participation Team Efficiencies                                   (30)   2009/10
A review of the participation team was conducted with the aim                onwards
of securing efficiency savings though business process
changes. Savings were £46,000 in 2008/09, rising to £76,000
thereafter.

(d) Mainstream Home to School Transport                                (6)   2009/10
Savings achieved from replanning and rationalisation of                      onwards
routes through schools re-organisation.

(e) PC Leasing                                                         (4)   2009/10
This is the full year effect of the saving achieved as a result of           onwards
the decision to purchase PCs instead of leasing them.




                                         67
(f) Herts Music Service                                       (200)   2009/10
This £200,000 efficiency has already been achieved in                 onwards
2008/09, by:
-      careful management of the salaried team;
-      a review of management responsibilities;
-      a review of Leadership and Administration vacancies;
       and
-      piloting of new administrative processes from
       September.




                                      68
                                                         APPENDIX 3 (2) B (continued)

                                                                     £’000

FYE of Previous Efficiencies (2008/09 & Prior Years) –
Other

(a) Standards and School Effectiveness - MECSS                       (300)   2009/10
This previous efficiency relates to the following:                           onwards
- Modernisation programme for the MECSS service which
streamlines the management of the service, and aligns and
mainstreams service delivery with national strategy
outcomes;
- Development of traded capacity within the modernisation
programme;
- Efficiencies in the operation of the service through bringing it
together at Robertson House;
- Increased potential for grants to fund aspects of
Unaccompanied Asylum Seeker (UAS) service currently
funded through CSF.

2009/10 Cashable Efficiency Savings Value for Money
(previously Gershon)

(a) Home to School Transport                                         (229)   2009/10
Through a combination of re-commissioning of existing                 (95)   2010/11
services and rationalisation of routes a reduction in budget                 onwards
has been achieved of £229k.

(b) Customer Focus                                                    (18)   2009/10
A review of non-staffing expenditure and the maintenance of                  onwards
a vacancy factor will provide an efficiency in the region of
£18k within this service.

(c) SEN Home to School Transport                                     (100)   2009/10
A review of the transport arrangements in the areas involving                onwards
the re-planning and rationalisation of routes and their re-
tendering. This review has achieved this level of efficiency
savings.

(d) Achievement & Inclusion Team                                      (10)   2009/01
The SSE Achievement and Inclusion Team (AIT) will reduce                     onwards
its dependence on external venue usage, and the PSHE
Team within AIT will reduce its provision for external
consultants and absorb work within its advisory resources.

(e) Governance Team                                                   (30)   2009/10
Following a retirement within the service the management of                  onwards
the governor clerking service has been reorganised, and new
traded business will be generated.


                                         69
                                                       APPENDIX 3 (2) B (continued)

                                                                  £’000

(f) Primary School Effectiveness Team                              (60)    2009/10
A new programme of 'Good to Outstanding' training has been                 onwards
trialled in 2008-09 and is proving highly successful. The
programme will be rolled out in full in 2009-10 to generate
additional income for the service.

(g) Participation Team                                             (30)    2009/10
Participation - Delete an M1 post currently vacant and                     onwards
manage the service without the post

(h) Support Service Review                                        (130)    2009/10
As part of the corporate programme of Support Service                      onwards
Reviews CSF has two projects which will deliver savings in
2009/10. The net savings from these reviews after providing
for the revised infrastructure for Business Support will be in
the region of £130k. This will maximise the benefits of new
technology in providing for increased self service by
managers and employees including the ICS system.

(i) Planning                                                        (40)   2009/10
The recent transfer of a senior planning officer to the                    onwards
corporate team has offered the opportunity to consider
whether or not that post should be replaced. It is proposed
that the post will not be replaced at a saving of £40k.

(j) Directors Office                                                (21)   2009/10
A review of current non-staffing expenditure will be                       onwards
undertaken and is expected to achieve savings of
approximately £21k.

2009/10 Cashable Efficiency Savings – Other:

(a) National Challenge Programme in Secondary Schools               (55)   2009/10
HCC has been successful in securing additional funding to                  onwards
support the National Challenge programme in Hertfordshire
schools, and in one other LA. The funding will be used to pay
for adviser costs in the SSE Secondary School Effectiveness
Team currently met from CSF core funding.

(b) Early Years Team: Charge Activity to Grant for Buddying        (10)    2009/10
programme                                                                  onwards
HCC has been successful in securing additional funding to
support an early years buddying programme. An element of
the funding will be used to pay for adviser costs in the SSE
Early Years Team currently met from CSF core funding.



                                       70
                                                       APPENDIX 3 (2) B (continued)
                                                                 £’000
(c) Schools Causing Concern – Direct Costs Budget                  (50)    2009/0
SSE will increase overall efficiency in the use of schools                onwards
causing concern budgets, through improved strategic
management of CSF funded direct costs budgets in
conjunction with the School Intervention Standards Fund
Grant.

 (d) Music Service                                                 (50)    2009/0
Match-funded initiatives can be deferred for one year without             onwards
impact on existing service provision. Following this one-off
efficiency in 2009/10, an equivalent amount can be saved
from 2010/11 onwards when salary protection for a number of
staff comes to an end.

(e) Specialist Advisory Service                                    (69)   2009/10
A reduction of 1.5 fte specialist teachers would equate to                onwards
£69,000. This would be in addition to not recruiting to 2
current teacher vacancies (1 in Visual Impairment and 1 in
Autism) which in real terms would be a staffing reduction of
3.5.

(f) Hospital Tuition                                              (548)   2009/10
The management of Hospital Tuition has to date been funded                onwards
by HCC. A review of the guidance on Dedicated Schools
Grant suggests that this activity should be supported by the
DSG. Therefore it is proposed to charge an additional £548k
to DSG subject to Schools Forum agreement.

(g) Multi-Agency Psychology Services (MAPS)                       (163)   2009/10
Whilst there are pressures within this service that are                   onwards
identified elsewhere in this paper it is felt that there are
efficiencies that can be delivered. By reducing the number of
students within the ‘Grow our Own’ programme the cost of
the programme can be reduced by £163k.

(h) Home to School Transport                                      (167)    2009/0
The on-going cost of extended rights for free transport is less           onwards
than anticipated.

 (i) Directors Office                                             (250)   2009/10
The Director’s office holds a number of contingency budgets               onwards
that cover a range of possible in year activity for which no
provision is made elsewhere in the budget. An assessment at
this time suggests these contingencies can be reduced by
£250k in 2009/10.




                                       71
                                                      APPENDIX 3 (2) B (continued)

                                                                 £’000
(j) Student Finance                                              (150)   2009/10
New business for this service area is being transferred to the             only
National Students Loan Company. A staged approach has
been agreed to the reduction of the staffing levels as the
existing commitments are run down, that already assumed a
£149k reduction in budget for 2009/10. It is felt at this time
that a further £150k reduction could be achieved in 2009/10.

(k) Learning, Training and Research Team                          (50)   2009/10
Efficiencies will be achieved through rationalisation of the             onwards
senior management of the Schools Workforce Development
and Schools HR Teams, additional traded income will be
generated across the team, and supply and returners clubs
will be discontinued.




                                       72
                                                                APPENDIX 3 (3) A

                REVENUE BUDGET 2009/10 - 2012/13
          AND MOVEMENT FROM CURRENT YEAR’S BUDGET
 CHILDREN, SCHOOLS AND FAMILIES (LIBRARIES, CULTURE & LEARNING)

                                             2009/10 2010/11 2011/12 2012/13
                                              £’000   £’000   £’000   £’000

2008/09 Original Budget                       21,535   21,535    21,535   21,535
Technical Adjustments 2008/09                     42       42        42       42
Technical Adjustments 2009/10                      -        -         -        -
Adjusted Budget                               21,577   21,577    21,577   21,577
Inflation                                        541    1,082     1,623    2,164
Base Budget                                   22,118   22,659    23,200   23,741
Pressures for Change:
Legislative Changes:
(a) Independent Safeguarding Authority -          1        1          1       1
vetting & barring scheme
Other Pressures:
(a) Capital Payback                              40       34         34       7
(b) Business Rates                                1        1          1       1
(c) Local Government Pension Scheme             140      140        140     140
(d) Revenue Effects of Telecoms                   2        2          2       2
Total Pressures for Change                      184      178        178     151
STANDSTILL BUDGET BEFORE
                                              22,302   22,837    23,378   23,892
EFFICIENCIES
FYE of previous efficiencies (2008/09 &
Prior Years) - Value for Money
(a) Schools Library Service                    (100)    (100)     (100)    (100)

2009/10 Cashable Efficiency Savings -
Value for Money
(a) Reduce Libraries supplies and services      (24)     (24)      (24)     (24)
Total 2009/10 Cashable Efficiency Savings      (124)    (124)     (124)    (124)
STANDSTILL BUDGET AFTER
                                              22,178   22,713    23,254   23,768
EFFICIENCIES




                                     73
                                                                  APPENDIX 3 (3) B

PRESSURES FOR CHANGE
                                                                   £’000
Legislative Changes

(a) Independent Safeguarding Authority - Vetting & Barring            +1 2009/10
Scheme                                                                   onwards
The introduction of a new national Vetting & Barring Scheme
will commence from October 2009. It will be a criminal
offence for a person to work in a regulated position covered
by the scheme without being registered and for an employer
to employ them. Additional costs within services relate to the
extra cost of registering new and existing employees.

Other Pressures

(a) Capital Payback                                                  +40   2009/10
Payback associated with the general capital programme.               +34   2010/11
                                                                     +34   2011/12
                                                                      +7   2012/13

(b) Business Rates                                                    +1 2009/10
This relates to the estimated additional costs arising from the          onwards
2006 revaluation of property for rating purposes.



(c) Local Government Pension Scheme                                 +140 2009/10
This is the department’s share of the increases in employers’            onwards
contributions towards the Local Government Pension
Scheme.

(d) Revenue Effects of Telecoms                                       +2 2009/10
This is the department’s share of the revenue consequences               onwards
of undertaking corporate telecommunications capital works
within the agreed capital programme.




                                       74
                                                     APPENDIX 3 (3) B continued

FYE of Previous Efficiencies (2008/09 & Prior Years)            £’000
Value for Money (previously Gershon)

(a) Schools Library Service                                     (100) 2009/10
Continued savings arising from changes in the Schools                 onwards
Library Services to deliver a modern web-based assisted
purchase scheme, while training and development continue to
be offered on a trading basis.

2009/10 Cashable Efficiency Savings
Value for Money (previously Gershon)

(a) Reduce Libraries supplies and services                       (24) 2009/10
£24,000 can be found from top slicing a number of Supplies            onwards
and Services budgets




                                     75
76
                                                                  APPENDIX 3 (4) A
                  REVENUE BUDGET 2009/10 – 2012/13
            AND MOVEMENT FROM CURRENT YEAR’S BUDGET
             CHILDREN, SCHOOLS AND FAMILIES (SCHOOLS)

                                          2009/10    2010/11    2011/12     2012/13
                                           £’000      £’000      £’000       £’000

2008/09 Original Budget                   621,456    621,456    621,456     621,456
Technical Adjustments 2008/09                   0          0          0           0
Technical Adjustments 2009/10                   0          0          0           0
Adjusted Budget                           621,456    621,456    621,456     621,456
Inflation                                  18,996     38,464     55,116      71,768
Base Budget                               640,452    659,920    676,572     693,224
Pressures for Change:
Previous Policy Decisions (2008/09 &
Prior Years):
  (a) Stevenage Federation                    (42)       (42)        (42)        (42)
  (b) Hertsmere Jewish High School             544        971      1,238       1,359
  (c) Change in Pupil Numbers              (2,200)    (4,100)    (4,100)     (4,100)
  (d) Learning Support Units (LSUs)           (63)      (125)      (125)       (125)
Legislative Changes:
(a) Single Early Years Funding Formula      1,591      3,000      3,000       3,000
(b) Schools Workforce Census                  180        180        180         180
(c) Appeals                                    64         64         64          64
(d) Independent Safeguarding Authority
                                               42         42          42          42
    - vetting & barring scheme
(e) Immigration - Applications for
                                               29         29          29          29
    Permission to Work
Other Pressures:
(a) Personalised Learning & SEN             4,818     13,675     13,675      13,675
(b) Allocate element of Personalised
                                            (558)      (558)       (558)       (558)
    Learning & SEN
(c) Voice Output Communication Aids            95         95          95          95
(d) Emotional Health and Mental Well
                                              326        326        326         326
    Being
(e) Hospital Tuition                          548        548        548         548
(f) Business Rates                              1          1          1           1
(g) Local Government Pension Scheme         1,226      1,226      1,226       1,226
(h) Balance remaining of Unallocated
                                              187      2,692      2,692       2,692
    Headroom
Total Pressures for Change                  6,788     18,024     18,291      18,412
STANDSTILL BUDGET BEFORE                  647,240    677,944    694,863     711,636
EFFICIENCIES




                                     77
                                                      APPENDIX 3 (4) A continued

                                           2009/10    2010/11    2011/12    2012/13
                                            £’000      £’000      £’000      £’000
FYE of previous efficiencies (2008/09 &
Prior Years)
(a) School Amalgamations                     (295)      (595)      (951)     (1,133)
(b) Pupil Support - Hospital and Home
                                                23         23         23         23
Education
2009/10 Cashable Efficiency Savings
(a) ESTMA                                    (130)      (130)      (130)      (130)
(b) LSE: Key Stage 4 Centres
                                             (140)      (140)      (140)      (140)
efficiencies
2009/10 Cashable Efficiency Savings -
Other
Schools Delegated Budgets
                                            (5,433)   (11,023)   (11,023)   (11,023)
1% annual efficiency savings
Total 2009/10 Cashable Efficiency
                                            (5,975)   (11,865)   (12,221)   (12,403)
Savings
STANDSTILL BUDGET AFTER
                                           641,265    666,079    682,642    699,233
EFFICIENCIES




                                      78
                                                                      APPENDIX 3 (4) B

PRESSURES FOR CHANGE
                                                                     £’000

Previous Policy Decisions (2008/09 & Prior Years)

(a) Stevenage Federation                                              (42) 2009/10
This relates to the pilot costs of federation in Stevenage                 onwards
which comes to an end at the start of the academic year
2008/09 (September 2008).


(b) Hertsmere Jewish High School                                     +544    2009/10
The element of funding for the new school expected to be             +971    2010/11
delivered by additional Dedicated Schools Grant                     +1238    2011/12
                                                                    +1359    2012/13

(c) Change in Pupil Numbers                                         (2,200) 2009/10
Impact of the changes in AWPU and other pupil led funding           (4,100) 2010/11
in school budget shares.                                                    onwards

(d) Learning Support Units (LSUs)                                     (63)    2009/10
Proposals made by HASSH for the expansion of the number              (125)    2010/11
of LSU’s across the county from 21 to 23 and transition                       onwards
arrangements for the redistribution of funding. These units
provide targeted support for students at risk of exclusion or
experiencing barriers in their learning. Eligible schools are in
areas of the county where there are above average number
of casual admissions and ‘hard to place’ students.

Legislative Changes

(a) Single Early Years Funding Formula                              +1,591    2009/10
All authorities are required to implement a single formula          +3,000    2010/11
covering both maintained and PVI settings from 2010/11 at                     onwards
the latest. As Hertfordshire is a pilot Authority, it is expected
to introduce the Single Formula in 2009/10. The total cost of
the Formula is estimated as £3 million. £1.4 million of this
would be covered in 2009/10 from the brought forward
balance of Dedicated Schools Grant. The costs shown
include the element funded by transfer from Personalisation
funding.




                                         79
                                                            APPENDIX 3 (4) B continued

                                                                    £’000

(b) School Workforce Census                                          +180   2009/10
This relates to DCSF requirements on schools to produce                     onwards
new School Workforce Census. This will be piloted in 10%
of schools in January 2009, with full introduction to all
schools in January 2010. This pressure recognises the
additional administrative workload specifically fro primary
and nursery schools.

(c) Appeals                                                           +64   2009/10
Appeals have increased this year on last, and in order to                   onwards
handle the appeal within appropriate timescales we have
used temporary staff and approved overtime. The service is
requesting additional resources to use Consultants and to
make permanent additions to the teams to handle this level
of activity in 2009/10.

(d) Independent Safeguarding Authority - Vetting & Barring            +42   2009/10
Scheme                                                                      onwards
The introduction of a new national Vetting & Barring Scheme
will commence from October 2009. It will be a criminal
offence for a person to work in a regulated position covered
by the scheme without being registered and for an employer
to employ them. Additional costs within services relate to the
extra cost of registering new and existing employees.

(e) Immigration - Applications for Permission to Work                 +29   2009/10
New immigration legislation will come into effect from
November 2008. A new annual licence will be required
along with individual applications for permission to work. It
is anticipated that each application will cost £190.




                                        80
                                                           APPENDIX 3 (4) B continued

                                                                   £’000
Other Pressures

(a) Personalised Learning & SEN                                   +4,818    2009/10
Targeted resource to schools to enable them to meet the          +13,675    2010/11
Government’s priorities. Specifically ensuring all children                 onwards
are making good progress and early intervention and
targeted support for specific groups. This includes looked
after children, certain ethnic groups and those with SEN. An
element of this resource will be targeted at the extension of
Key Stage 4 Learning Centres to provide alternative
provision for excluded pupils or those at risk of exclusion.

(b) Allocated element of Personalised Learning & SEN                (558)   2009/10
Initial discussions with Schools Forum indicates that they                  onwards
would support allocating £558k of the Personalised Learning
funding to fund the deprivation, SEN and sustainability
allocations within the single Early Years Funding Formula.

 (c) Voice Output Communication Aids                                 +95    2009/10
Funding is required for specialist communication aids to                    onwards
replace government grant which has now ceased.

(d) Emotional Health and Mental Well Being                          +326    2009/10
As part of Hertfordshire’s response to the health and well                  onwards
being aspects of the DCSF ‘Children’s Plan - Brighter
Futures’ a resilience programme was piloted across seven
schools in Hemel Hempstead. It is proposed that we
develop the capacity to roll out the programme across the
county. The full cost of this role is expected to be in the
region of £250k.

In addition the demand for counselling in schools is also
increasing and we are proposing to enhance the team to
meet the demand. This will require an increase in budget of
£76k.

Both activities add to the personalisation of service for
children and young people with specific support for individual
programmes of activity tailored to the needs of the child or
young person.

(e) Hospital Tuition                                                +548    2009/10
The management of Hospital Tuition has to date been                         onwards
funded by HCC. A review of the guidance on Dedicated
Schools Grant suggests that this activity should be
supported by the DSG. Therefore it is proposed to charge
an additional £548k to DSG subject to School Forum
agreement.


                                       81
                                                                 APPENDIX 3 (4) B continued

                                                                         £’000
(f) Business Rates                                                          +1    2009/10
This relates to the estimated additional costs arising from the                   onwards
2006 revaluation of property for rating purposes.

(g) Local Government Pension Scheme                                     +1,226    2009/10
Estimated cost of the increase in employer’s contribution                         onwards
towards the Local Government Pension Scheme.

Other Pressures met from Unallocated Headroom

(a) Balance remaining of Unallocated Headroom                            +187     2009/10
The Dedicated Schools grant is ring fenced for use within               +2,692    2010/11
the Schools Budget. Unallocated Headroom represents the                           onwards
anticipated balance of grant above that required to fund the
budget pressures so far identified. Further proposals for use
of the unallocated headroom will emerge from discussions
with Schools Forum, CSF Board and Education Panel.

CASHABLE EFFICIENCY SAVINGS

FYE of Previous Efficiencies (2008/09 & Prior Years)

(a) School Amalgamations                                                  (295)   2009/10
Savings in lump sums and premises related funding in                      (595)   2010/11
school budget shares as a result of school re-organisations.              (951)   2011/12
                                                                        (1,133)   2012/13

(b) Pupil Support - Hospital and Home Education                            +23    2009/10
A review of staffing within the specific learning difficulties                    onwards
provision delivered efficiencies which were one off in
2008/09.

2009/10 Cashable Efficiency Savings

(a) ESTMA                                                                 (130)   2009/10
Due to a range of actions that ESTMA has taken over the                           onwards
last couple of years to provide a more efficient and
consistent service across the county, it is anticipated that a
revenue efficiency of £130k maybe made from this budget.

(b) LSE: Key Stage 4 Centres efficiencies                                 (140)   2009/10
Six Key Stage 4 Centres are now fully operational as of 1st                       onwards
September 2008. These are funded through the budgets
previously used to fund the YPU programmes and through
contributions from schools block as agreed at Schools
Forum.


                                          82
                                                           APPENDIX 3 (4) B continued

                                                                   £’000
An amount was retained centrally during 2008/09 to support
the implementation of the programme which is now fully
complete. Evidence to date suggests that this £140,000 can
now be offered up as a saving from 2009/10.
Other Savings

(a) Schools delegated budgets - 1% annual efficiency              (5,433)   2009/10
savings                                                          (11,023)   2010/11
The Government’s expectation is that schools will make                      onwards
annual efficiency savings of 1% for the remainder of the
current 3 year funding period.




                                      83
84
                                                                 APPENDIX 4


                  PORTFOLIO: CORPORATE SERVICES

            STANDSTILL REVENUE BUDGET 2009/10 - 2012/13


Chief Officers/Heads of Function: Caroline Tapster, Chief Executive
                                  (01992 555600)
                                  Andrew Laycock, County Secretary
                                  (01992 555500)
                                  Chris Sweeney, Finance, Information and
                                  Commercial Services Director
                                  (01992 555303)
                                  Alan Warner, Corporate Director, People &
                                  Property (01992 556650)
                                  John Sellgren, Communications Director
                                  (01992 555619)


Contacts for queries:              Tolu Cliffe Finance Manager
                                   (01992 555391)




APPENDIX 4 - CONTENTS

A     Commentary
B     Standstill Revenue Budget 2009/10 – 2012/13 and Movement from
      Current Year’s Budget
C     Pressures for Change & Savings




                                    85
                                                       APPENDIX 4 A

                          COMMENTARY

1.1   This appendix outlines the inflation and cost pressures facing
      the service in 2009/10 and the medium term. This gives rise to
      a 2009/10 standstill budget for Corporate Services after
      efficiency savings of £10.191 million (excluding capital charges
      and the FRS17 pension adjustment).

1.2   The cashable efficiency savings which have been identified by
      Executive Members and Chief Officers are summarised below
      with further details provided in Appendices 4B and 4C.



                                                      £’000
            Cashable Efficiency Savings
            FYE of Previous Efficiencies - Value           2
            for Money
            Full Year Effect of Previous                   -
            Efficiencies – Other
            2009/10 Value for Money Savings             191
            2009/10 Other Savings                        35
            Total                                       228




                                 86
                                                                    APPENDIX 4B

                   REVENUE BUDGET 2009/10 - 2012/13
             AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                       CORPORATE SERVICES

                                              2009/10 2010/11 2011/12 2012/13
                                               £’000   £’000   £’000   £’000
2008/09 Original Budget                          5,599   5,599   5,599   5,599
Technical Adjustments 2008/09                      111     111     111     111
Technical Adjustments 2009/10                      259     259     259     259
Adjusted Budget                                  5,969   5,969   5,969   5,969
Inflation                                        2,264   4,528   6,792   9,056
Base Budget                                      8,233 10,497 12,761    15,025
Pressures for Change:
Legislative Changes:
 a) Changes in Working Time Directive              20      20       20       20
 b) Independent Safeguarding Authority            220     220      220      220
 c) Immigration, Asylum and Nationality Act        30      30       30       30
    2006
 d) International Financial Reporting             100     100        0        0
    Standards
Other Pressures:
 a) Business rates                                150     150      150      150
 b) LGPS employer’s contributions                 414     414      414      414
 c) Revenue effects of telecoms                    27      27       27       27
 d) Capital payback                               263     263      245      245
 e) BVPI survey                                     0      48        0       48
 f) Loss of income from commercial
     payroll advertising                           31      31       31       31
 g) Loss of external income for Property          481     481      481      481
 h) Corporate Graduates                            15      15       15       15
(i) Revenue Effects of Capital                    268     268      268      268
(j) Corporate Procurement Activity                167     167      167        0
Total Pressures for Change                      2,186    2,234    2,068    1,949
STANDSTILL BUDGET BEFORE
                                               10,419   12,731   14,829   16,974
EFFICIENCIES




                                        87
                                                      APPENDIX 4B (continued)

                                            2009/10 2010/11 2011/12 2012/13
                                             £’000   £’000   £’000   £’000
FYE of previous efficiencies (2008/09 &
Prior Years) - Value for Money
 a) PC Purchase Savings                         (2)      (2)      (2)      (2)
2009/10 Cashable Efficiency Savings -
Value for Money
a) Restructuring of posts within
                                              (106)    (106)    (106)    (106)
      Corporate Services
b) Paper-based communications
                                                (5)      (5)      (5)      (5)
      changing to an electronic format
c) Utility savings generated from the
                                               (23)     (23)     (23)     (23)
      Smart Metering
d) Service Support Review                      (57)    (265)    (292)    (292)
2009/10 Cashable Efficiency Savings -
Other
a) Other general savings                       (35)     (35)     (35)     (35)
Total 2009/10 Cashable Efficiency Savings     (228)    (436)    (463)    (463)
STANDSTILL BUDGET AFTER
                                             10,191   12,295   14,366   16,511
EFFICIENCIES




                                      88
                                                                          APPENDIX 4C

PRESSURES FOR CHANGE

                                                                  £’000
Legislative Changes
a) Changes in Working Time Directives
In line with the amendments to the Working Time                     + 20     2009/10
Regulations 1998, from 1st October 2007 holiday entitlement                  onwards
for temporary staff increased. This is the full year effect of
the changes implemented in 2008/09.

b) Independent Safeguarding Authority
Proposed new resource to manage and administer the new             + 220     2009/10
national Vetting and Barring. It will be a criminal offence for              onwards
a person to work in a regulated position covered by the
scheme without being registered and for an employer to
employ them. Additional costs will arise in future years.
c) Immigration, Asylum and Nationality Act 2006
Additional resource is required to administer the process for       + 30     2009/10
the new Immigration Legislation and to fund the new annual                   onwards
licence requirement. This is a requirement of the second
phase of the Act.

d) International Financial Reporting Standards
From 2009/10 HCC accounts will be required to comply with          + 100     2009/10
IFRS requirements - this entails major restatement of the          + 100     2010/11
council's accounts and requires previous year's accounts to            0     2011/12
be adjusted to enable comparative info. In order to comply             0     2012/13
with these requirements additional accountancy resource
with high level financial accounting skills will be required to
ensure successful implementation. It is estimated that
£100,000 will required for each of the next two years to fund
this project.




                                    89
                                                               APPENDIX 4C (continued)

                                                                   £’000
Other Pressures
a) Business Rates                                                     +150   2009/10
This relates to the estimated additional costs arising from                  onwards
the 2006 revaluation of property for rating purposes.

b) Local Government Pension Scheme (LGPS) employer’s
                                                                             2009/10
contributions                                                        + 414
                                                                             onwards
Estimated cost of the increase in employer’s contribution
towards the Local Government Pension Scheme.
c) Revenue Effects of Telecoms
These are the authority’s revenue consequences of                     + 27   2009/10
undertaking telecommunications capital works.                                onwards

d) Capital Payback
Pay back associated with schemes funded by the general               + 263   2009/10
capital programme.                                                   + 263   2010/11
                                                                     + 245   2011/12
                                                                     + 245   2012/13
e) Best Value Performance Indicators survey
BVPI is now a bi-annual statutory survey led by Department               0   2009/10
for Communities and Local Government, (DCLG). It will next            + 48   2010/11
take place in 2010/11.                                                   0   2011/12
                                                                      + 48   2012/13


f) Commercial Payroll Advertising
Commercial payroll advertising is no longer popular and the           + 31   2009/10
income target is therefore not achievable.                                   onwards
g) Central and Shared Buildings
There is a budget pressure relating to loss of external rent         + 481   2009/10
and service charges arising from central and shared sites,                   onwards
which is not directly related to the TW3 project and was
therefore not included within its budgets.

h) Corporate Graduates
There is a budget pressure as a result of increasing                  + 15   2009/10
demands in the recruitment and training associated with the                  onwards
Corporate Graduate scheme.


i) Revenue Effects of Capital
This is the revenue consequence associated with the
                                                                             2009/10
Corporate Electronic Documents and Records Management                + 268
                                                                             onwards
capital scheme.




                                   90
                                                              APPENDIX 4C (continued)

                                                                    £’000
(j) Corporate Procurement Activity
Over the next three years the council’s major partnering             +167    2009/10
contracts are all due for re tender. In order to manage              +167    2010/11
these processes to best effect, the council needs to pull            +167    2011/12
together appropriate resources to cover the project                     0    2012/13
management, procurement, legal and financial dimensions
of these exercises. There should also be synergies with the
procurement activity that will be underway in respect of the
Waste project and BSF. On the basis that procurement
budgets for Waste and BSF can fund these requirements
this bid is solely for the procurement, legal and financial
team needed to manage the other upcoming corporate
procurements relating to IT services, payroll, pensions,
payments, recruitment, property services, customer service
centre and highways.

CASHABLE EFFICIENCY SAVINGS

FYE of Previous Efficiencies (2008/09 & Prior Years) –
Value for Money (previously Gershon)

a) PC Purchase Savings
                                                                            2009/10
This is the full year effect of the saving achieved as a result       (2)
                                                                            onwards
of the decision to purchase PCs instead of leasing them.

2009/10 Cashable Efficiency Savings - Value for Money
(previously Gershon)

a) Restructuring within Corporate Services
Savings will be found as a result of the restructuring of           (106)   2009/10
various posts within Corporate Services.                                    onwards

b) Corporate Communications
A saving will be found as a result of changing some existing          (5)   2009/10
paper-based communications materials to an electronic                       onwards
format.
c) Civic Buildings
It is anticipated that savings will be made from utility costs       (23)   2009/10
as a result of implementing the Smart Metering programme                    onwards
which will also result in carbon reductions and thus show
carbon savings.




                                    91
                                                         APPENDIX 4C (continued)

                                                               £’000
d) Service Support Review
Savings generated within Corporate Services as a result of      (57)   2009/10
the Service Support Review.                                    (265)   2010/11
                                                               (292)   2011/12
                                                                       onwards

Other Savings
a) Other General Savings
                                                                       2009/10
Savings will be found from various sources within Corporate     (35)
                                                                       onwards
Services




                                 92
                                                          APPENDIX 5

                     PORTFOLIO: ENVIRONMENT

          STANDSTILL REVENUE BUDGET 2009/10 - 2012/13


Chief Officer: John Wood, Director of Environment (01992 555200)

Contact for queries: Michael Francis, Assistant Director Performance &
Business Support, Environment (01992 556010)


APPENDIX 5 - CONTENTS

A     Commentary
B     Standstill Revenue Budget 2009/10 – 2012/13 and Movement from
      Current Year’s Budget
C     Pressures for Change & Savings




                                  93
                                                              APPENDIX 5 A

                             COMMENTARY

1.1   This Appendix outlines the inflation and cost pressures facing the
      service in 2009/10 and the medium term. This gives rise to a 2009/10
      standstill budget for Environment after efficiency savings of
      £121.846 million (excluding capital charges and the FRS17 pension
      adjustment).

1.2   The cashable efficiency savings which have been identified by the
      department are summarised below with further details provided in
      Appendices 5B and 5C.


                                                      £’000
            Cashable Efficiency Savings
            Full Year Effect of Previous                  2
            Efficiencies - Value for Money Savings
            Full Year Effect of Previous Efficiency       -
            Savings - Other
            2009/10 Value for Money Savings           2,560
            2009/10 Other Savings                       240
            Total                                     2,802




                                    94
                                                                 APPENDIX 5B

                    REVENUE BUDGET 2009/10 - 2012/13
              AND MOVEMENT FROM CURRENT YEAR’S BUDGET
                            ENVIRONMENT


                                             2009/10 2010/11 2011/12 2012/13
                                              £’000   £’000   £’000   £’000
2008/09 Original Budget                      106,033 106,033 106,033 106,033
Technical Adjustments 2008/09                   (312)   (312)   (312)   (312)
Technical Adjustments 2009/10                  6,382   6,382   6,382   6,382
Adjusted Budget                              112,103 112,103 112,103 112,103
Inflation                                      7,053   9,169 11,285 13,401
Base Budget                                  119,156 121,272 123,388 125,504
Pressures for Change:
Previous Policy Decisions (2008/09 & Prior
Years):
(a) Close Tring HWRC                           (100)   (200)    (200)    (200)
(b) Dial-a-Ride Savings                         (50)    (50)     (50)     (50)
Demography:
(a) Road length increases - routine
                                                200      400     600      800
    maintenance
Legislative Changes:
(a) Landfill tax                               3,035   6,070    6,525    6,980
(b) Enhanced Planned Highway
    Maintenance Noticing (Traffic                50       50      50       50
    Management Act)
(c) Changes in Working Time Directive            19       19      19       19
(d) Carbon Reduction Management
                                                 50       50      50       50
    (corporate pressure)
(e) Vetting and Barring Registration              2        2       2        2
Other Pressures:
(a) Business rates                               (3)      (3)     (3)      (3)
(b) LGPS employer’s contributions               248      248     248      248
(c) Revenue effects of telecoms                  (5)      (5)     (5)      (5)
(d) Capital Payback                             780      780     780      780
(e) New Highway Management System                50         0       0        0
(f) Community Cohesion Strategy
    (corporate pressure)                         20        0       0        0
(g) Transport Planning and County Travel
                                                 90       40      40       90
    Survey
(h) Cross boundary buses                         400     400      400      400
(i) Waste Procurement                            706     811    1,050    1,050
Total Pressures for Change                     5,492   8,612    9,506   10,211
STANDSTILL BUDGET BEFORE
                                             124,648 129,884 132,894 135,715
EFFICIENCIES



                                95
                                                        APPENDIX 5 B (continued)


                                              2009/10 2010/11 2011/12 2012/13
                                               £’000   £’000   £’000   £’000
FYE of previous efficiencies (2008/09 &
Prior Years) - Value for Money
(a) PC Purchase Savings                           (2)       (2)       (2)       (2)

2009/10 Cashable Efficiency Savings -
Value for Money
(a) Incentivise Delivery of Cat 2 and VXO
                                                 (25)      (25)      (25)      (25)
    Orders
(b) Audit Delivery Through Integrated
                                                 (80)      (80)      (80)      (80)
    Team
(c) Further Savings from Holistic Cat 1 & 2
                                                (500)     (500)    (500)     (500)
    Management
(d) Income from Third Party Recharges
                                                (100)     (100)    (100)     (100)
    (Extra to 2008/09)
(e) Highway Management System (Extra
                                                (100)     (100)    (100)     (100)
    to 2008/09)
(f) Reduce Controllable Overheads                (50)      (50)      (50)      (50)
(g) Deletion of Vacancy in Road Safety
                                                 (33)      (33)      (33)      (33)
    Unit
(h) Efficiencies in Use of HAPS System          (200)     (200)    (200)     (200)
(i) Savings from Part Night Lighting Trial       (15)      (15)     (15)      (15)
(j) Support Service Review                       (63)      (63)     (63)      (63)
(k) Project Manager                              (46)      (46)     (46)      (46)
(l) Review and reconfigure Consultancy           (35)      (35)     (35)      (35)
(m) ABPR contract savings                           0     (200)    (200)     (200)
(n) Separation of Inert Wastes at HWRC’s        (125)     (150)    (150)     (150)
(o) HWRC Central Container Service
                                                 (50)      (50)      (50)      (50)
     Contract
(p) HWRC Textiles Income                         (25)      (25)      (25)      (25)
(q) HWRC Wood Waste Contract                     (25)      (25)      (25)      (25)
(r) Forward Planning: Delete Vacant Tech
                                                 (24)      (24)      (24)      (24)
     Asst Post
(s) EMS Efficiency                               (14)      (14)      (14)      (14)
(t) Review of Overheads                          (50)      (50)      (50)      (50)
(u) Household Waste Recycling Centres         (1,000)   (1,000)   (1,000)   (1,000)
Other Savings:
(a) Projected Concessionary Fare Income          (50)      (50)      (50)      (50)
(b) Increase income from the Rural Estate
                                                 (70)      (70)      (70)      (70)
    & CMS
(c) Herts Forward - Charge for Conference
                                                 (20)      (20)
    + seek contributions




                                 96
                                                        APPENDIX 5 B (continued)


                                              2009/10 2010/11 2011/12 2012/13
                                               £’000   £’000   £’000   £’000
 (d) Travel Plan: Charge for Monitoring and
                                                 (30)      (30)      (30)      (30)
    Advice
(e) CDU Planning Application Charges             (20)      (20)      (20)      (20)
(f) Partners Contribution to Highway
                                                 (50)        0         0         0
     Management System
Total 2009/10 Cashable Efficiency Savings     (2,802)   (2,977)   (2,957)   (2,957)

STANDSTILL BUDGET AFTER
                                              121,846 126,907 129,937 132,758
EFFICIENCIES




                                 97
                                                                       APPENDIX 5 C

PRESSURES FOR CHANGE

                                                                   £’000
Previous Policy Decisions (2008/09 & Prior Years)
(a) Closure of Tring HWRC
A review of the provision of Household Waste Recycling               (100)   2009/10
Centres across the county resulted in the decision to close          (200)   2010/11
the Tring centre when the new Buckinghamshire facility is                    onwards
available at Aston Clinton. It is anticipated that this will be
from October 2009. This will make the service more cost-
effective whilst retaining the agreed proximity standard.

(b)Dial-a-Ride Savings
Description Scrutiny of the dial-a-ride service by a member           (50)   2009/10
topic group concluded that it was not an efficient use of                    onwards
resources to continue to offer the advertised Dial-a-Ride
service during weekdays between 18.00 and 19.00.


Demography
(a) Road length increases – routine maintenance
With increases in residential developments, the length of            +200    2009/10
roads that the county council has a responsibility to maintain       +400    2010/11
continues to grow each year. Recent calculations have                +600    2011/12
revealed that it costs an average of just over £7,000 per            +800    2012/13
kilometre to maintain local roads. Approximately 30
kilometres of new roads are added to the network every
year.

Legislative Changes
(a) Landfill Tax
Landfill Tax is currently £32 a tonne and is subject to an         +3,035    2009/10
annual escalator of £8 a tonne for 2009/10 and 2010/11.            +6,070    2010/11
Original figures estimated, in line with the recent work done      +6,525    2011/12
on the future of waste management, that the tax would              +6,980    2012/13
increase by 2.5% per year for 2011/12 onwards – this is now
likely to increase at a further £8 per tonne

(b) Enhanced Planned Maintenance Noticing Requirement
(Traffic Management Act)                                              +50    2009/10
The Traffic Management Act places an additional duty on the                  onwards
County Council to provide electronic noticing for all of its
Category 2 works, so as to provide parity with public utilities,
who already have to notice their minor planned works.




                                             98
                                                                APPENDIX 5 C (continued)

                                                                       £’000
(c) Changes in the Working Time Directive
In line with the amendments to the Working Time                          +19   2009/10
Regulations 1998, from 1st October 2007 holiday entitlement                    onwards
for temporary staff increased. This is the full year effect of
the changes implemented in 2008/09.

(d) Carbon Reduction Management (Corporate Pressure)
New legislation relating to the Carbon Reduction                         +50   2009/10
Commitment (CRC) and the new national performance                              onwards
indicators will place obligations upon the Authority to report
its CO2 emissions performance annually and take actions to
embed carbon reduction across the Authority. This growth
item relates to the appointment of an officer to work across
the Authority to achieve buy-in to Carbon reduction targets.
Whilst this will be a corporate role, initially it is proposed that
it sits within the Climate Change function in Environment,
which will be heavily involved in establishing baselines for
the Authority, measuring performance on the CRC and
developing its adaptation strategy.

(e) Vetting and Barring Registration
The introduction of a new national Vetting & Barring Scheme               +2   2009/10
will commence from October 2009. It will be a criminal                         onwards
offence for a person to work in a regulated position covered
by the scheme without being registered and for an employer
to employ them. Additional costs within services relate to
the extra cost of registering new and existing employees.

Other Pressures
(a) Business Rates                                                       (3)   2009/10
This relates to the estimated additional costs arising from the                onwards
2006 revaluation of property for rating purposes.

(b) Local Government Pension Scheme (LGPS) employer’s
contributions                                                          +248    2009/10
Estimated cost of the increase in employer’s contribution                      Onwards
towards the Local Government Pension Scheme.

(c) Revenue Effects of Telecoms
These are the authority’s revenue consequences of                        (5)   2009/10
undertaking telecommunications capital works.                                  onwards




                                               99
                                                            APPENDIX 5 C (continued)

                                                                   £’000
(d) Capital Payback
Pay back associated with schemes funded by the general             +780    2009/10
capital programme.                                                         onwards

(e) New Highway Management System
This item recognises that HCC would otherwise have had to            +50   2009/10
pay both Mouchel and Amey La Farge for the training and                     Only
systems migration for the new system which is critical to the
department’s future plans. By renegotiation of the contract,
the department has managed to get them to finance the cost
(see efficiency e below) producing a cash neutral position.

(f) Community Cohesion Strategy (Corporate Pressure)
Funding is needed to support the development of the                  +20   2009/10
Corporate Strategy including research, consultation and                      only
partnership events. This is a priority identified by SMB after
the need was identified as part of the most recent CPA
assessment.

(h) Transport Planning & County Travel Survey
Additional data modelling staff resources needed to respond          +90   2009/10
to the Local Development Framework and urban Transport               +40   2010/11
Plan pressures, and need to enhance detail of County Travel          +40   2011/12
Survey (every 3 years) at town level.                                +90   2012/13

(i) Cross Boundary Buses
Hertfordshire County Council and Transport for London (TfL)        +400    2009/10
had a long-standing legal agreement covering the funding of                onwards
bus services let by TfL that come into Hertfordshire. The
agreement has now been replaced and while the
replacement costs more than the available budget, it is still
considerably below the potential liability from the old one
and within the levels predicted as an uncertainty in last
year’s budget.

(j) Waste Treatment Procurement
An Expression of Interest in PFI credits was accepted by the       +706    2009/10
Government in March 2008 and a procurement strategy is             +811    2010/11
being prepared accordingly. This budget will enable relevant      +1,050   2011/12
and timely expertise and project management to be put in          +1,050   2012/13
place for the procurement process.




                                           100
                                                         APPENDIX 5 C (continued)
CASHABLE EFFICIENCY SAVINGS

                                                                  £’000
FYE of Previous Efficiencies (2008/09 & Prior Years) -
Value for Money (previously Gershon)

(a) PC Leasing Charge Savings                                         (2)   2009/10
This is the full year effect of the saving achieved as a result             onwards
of the decision to purchase PCs instead of leasing them.

2009/10 Cashable Efficiency Savings - Value for Money
(previously Gershon)

(a) Incentivise Delivery of Cat 2 and Vehicle Cross Over             (25)   2009/10
Orders                                                                      onwards
An incentivisation scheme for Cat 2 works has been
introduced as a condition of the Herts Highways contract
extensions. This negotiated change will bring about a
reduction in cost.

(b) Audit Delivery through Integrated Team                           (80)   2009/10
A single, independent works audit team has been introduced                  onwards
to replace the two separate HCC and Amey La Farge
employed audit teams.

(c) Further Savings from Holistic Cat 1 & 2 Management              (500)   2009/10
Following enhanced investment in the asset management                       onwards
led maintenance strategy and the permanent pot hole repair
initiative, further savings can be made by using engineering
judgement based on better knowledge of the network for
these repairs.

(d) Income from Third Party Recharges (Extra to 2008/09)            (100)   2009/10
Amey La Farge took over the recovery service in 2007.                       onwards
Based on current successful recovery rates projected
income can be increased.

(e) Highway Management System (Extra to 2008/09)                    (100)   2009/10
Now that the contract for the Hermis replacement has been                   onwards
awarded it has been possible to identify the full savings
available.

(f) Reduce Hertfordshire Highways Overheads                          (50)   2009/10
A review of a range of support costs and operations will yield              onwards
savings in office overheads across Herts Highways.




                                       101
                                                          APPENDIX 5 C (continued)

                                                                     £’000
(g) Deletion of Vacancy in Road Safety Unit                            (33)   2009/10
The unit has been organised so that the current level of                      onwards
service can be maintained with deletion of a post it had
previously been holding as a vacancy.

(h) Efficiencies in Use of Herts Advanced Passenger System           (200)    2009/10
Efficiencies in the operation of the HAPS system                              onwards
commissioned in 2003 have allowed contract savings to be
made.

(i) Savings from Part-Night Lighting Trial                            (15)    2009/10
The trial into part-night lighting should enable these savings                onwards
to be made.

(j) Support Service Review                                            (63)    2009/10
Careful management of administrative support and                              onwards
associated support budgets can produce efficiency savings
without a detrimental impact on service delivery.

(k) Savings from Project Management                                   (46)    2009/10
The reallocation of project management work has enabled                       onwards
the reduction of one project manager post

(l) Review and Reconfigure Consultancy                                (35)    2009/10
Combining surveying and inspection of the rights of way                       onwards
network will lead to this saving.

(m) Animal By-Product Regulations Contract Savings                      nil   2009/10
It is expected that reduced disposal and transport costs will        (200)    2010/11
arise from new composting arrangements for central and                        onwards
eastern Hertfordshire which will be fully operational in
2010/11. This is subject to planning permission and so may
not be deliverable if this is not gained.

(n) Separation of Inert Waste at HWRCs                               (125)    2009/10
Separation of inert waste will enable part of the HWRC               (150)    2010/11
residual waste stream to be landfilled at the lower rate of                   onwards
landfill tax (£2.50/tonne).

(o) HWRC central container service contract                           (50)    2009/10
Re-tendering of this contract should result in a higher                       onwards
standard of service at lower cost.

(p) HWRC textiles income                                              (25)    2009/10
Under a new contract, higher levels of income will be                         onwards
generated by opening up new sources of income.




                                      102
                                                       APPENDIX 5 C (continued)

                                                                  £’000
(q) HWRC Wood Waste Contract                                        (25)   2009/10
New arrangements will allow the separate collection and                    onwards
recycling of timber that has been contaminated by treatment
such as paint and varnish producing income from material
previously disposed of in landfill.

(r) Forward Planning: Delete Vacant Tech Asst Post                  (24)   2009/10
Following Best Value Review in 2004 the Forward Planning                   onwards
Unit was restructured to have two generalist Technical
Assistants shared across the Unit. It became clear that this
approach was not working efficiently and that more specialist
roles were required. One of the Technical Assistant posts
has now been redefined as a climate change post and the
second post is proposed for deletion.

(s) Environmental Management System Efficiency                      (14)   2009/10
The Departmental EMS system has been reviewed and as                       onwards
part of this process it is possible to move from a high level
EMS officer to a lower graded Technical and administrative
support post.

(t) Review of Overheads                                             (50)   2009/10
A saving of £50,000 per year has been identified as part of                onwards
an ongoing review of departmental overheads.

(u) Household Waste Recycling Centres                            (1,000)   2009/10
The contract for the management of the council’s HWRCs                     onwards
was restructured to enable efficiency savings of £1m per
year to be achieved.

2009/10 Cashable Efficiency Savings - Other
(a) Projected Concessionary Fares Income                            (50)   2009/10
Projected increase in income due to increased take up of the               onwards
new national concessionary fare scheme.

(b) Increase in Rural Estate and Countryside Management             (70)   2009/10
Service Income                                                             onwards
Anticipated additional income following programmed rent
reviews of properties, sale of milk quota and wayleaves and
income from CMS should result in this saving.




                                      103
                                                              APPENDIX 5 C (continued)

                                                                       £’000
(c) Herts Forward Alternative Funding
An alternative source of funding is being explored to help                (20)   2009/10
finance this initiative. If successful, it is likely to last for two      (20)   2010/11
years only.                                                                  0   2011/12
                                                                             0   2012/13

(d) Travel Plan: Charge for Monitoring and Advice
Introduction of Charge to developers for advice in drawing                (30)   2009/10
up plans and monitoring implementation. Assumes 10 travel                        onwards
plans per annum.

(e) County Development Unit Planning Application Charges
Increase in income from planning application fees due to a                (20)   2009/10
national increase in fees and the new requirement for all                        onwards
planning applications including those submitted by the
County Council to be accompanied by a fee.

(f) Partners Contribution to Highway Management System
Amey La Farge and Mouchel will absorb the costs of on                     (50)   2009/10
going training and system migration from Hermis to the new                         only
system as part of the contract extension conditions. This
pays for the pressure identified at (f) above).




                                           104
                                                                                                                                                           APPENDIX 6
                                                             SUMMARY OF CHANGES TO 2009/10 REVENUE BUDGET


                                                                                                                                                            Standstill
                                         Standstill     One Off      Technical     2009/10         Business    Provision for      Other      Efficiency    budget after
                                          Budget*       Funding     adjustments    Inflation        Rates      Uncertainties    Pressures     Savings      adjustments
                                            £m            £m            £m            £m             £m             £m             £m            £m            £m
Adult Care Services                         284.053                      (0.217)         (0.092)     (0.146)                                                    283.598
Children, Schools & Families
     Education Non-schools                    88.449                     (0.190)         (0.055)     (0.046)                       (0.249)                       87.909
     Children's Services                    110.388                      (0.057)         (0.048)                                     0.249       (0.456)        110.076
     Libraries, Culture & Learning            22.275                      0.001          (0.090)     (0.008)                                                     22.178
TOTAL: Children Schools & Families          221.112                      (0.246)         (0.193)     (0.054)                                                    220.163

Community Safety:
     Fire & Rescue                            37.175        0.280        (0.012)         (0.079)     (0.009)                                                     37.355
     Trading Standards                         3.026                     (0.001)                     (0.001)                                                      3.024
     Crime & Drugs Strategy Unit               2.824                                                                                                              2.824
     Coroners                                  1.052                                                                                                              1.052
     Registration                              0.979                     (0.030)                                                                                  0.949
     Emergency Planning                        0.689                                                                                                              0.689
TOTAL: Community Safety                       45.745                     (0.043)                     (0.010)                                                     45.692

Corporate Services                             9.972                      0.568          (0.484)       0.135                                                     10.191
Environment                                 122.499                      (0.045)         (0.601)     (0.007)                                                    121.846
Central Items                                 50.595                                                                  (2.500)                                    48.095
                                            733.976         0.280         0.017          (1.449)     (0.082)          (2.500)           0        (0.456)        729.786

* As at Policy & Resources Cabinet Panel 11 December 2008


                                                                                   105
106
                                                                                                                                                                APPENDIX 7
                                                   2009/10 STANDSTILL BUDGET - MOVEMENT STATEMENT BY SERVICE

                                             Children, Schools & Families                                             Community Safety
                                                                                                               Crime &
                                            Education                 Libraries                                 Drugs                  Coroners
                                Adult         Non-       Children's   Culture &   Corporate                    Strategy     Fire &    Registration    Central
                                Care         schools      Services    Learning    Services      Environment      Unit      Rescue      EP & TS         Items    Total
                                 £m            £m           £m           £m          £m              £m           £m         £m           £m             £m     £'000
Original Budget 2008/09
                                253.4            72.0        101.6        21.5            5.6         106.0         2.3       36.5             5.6       46.2   650.7
(less one-off funding)
Technical Adjustments:
Prior Year (2008/09)               1.2           (0.6)        (0.3)           -           0.1          (0.3)          -       (0.1)               -         -      0.0
Current Year (2009/10): ABG      13.9            15.4           5.8           -           0.1            6.4        1.0           -               -         -    42.6
Current Year (2009/10): Other    (0.2)           (0.2)            -           -           0.2              -          -           -               -         -    (0.2)
ADJUSTED BUDGET                 268.3            86.6        107.1        21.5            6.0         112.1         3.3       36.4             5.6       46.2   693.1
Inflation                        14.1             2.3          2.6         0.5            2.3           7.1           -        1.0             0.1          -    30.0
BASE BUDGET                     282.4            88.9        109.7        22.0            8.3         119.2         3.3       37.4             5.7       46.2   723.1
Pressures for Change:
Previous Policy Decisions               -        (0.3)            -           -             -          (0.2)           -          -               -         -    (0.5)
Demography                       10.4                -            -           -             -           0.2            -          -               -         -    10.6
Legislative Changes               0.1             0.2           0.6           -           0.4           3.2            -          -               -         -     4.5
Other Pressures                   1.5             1.8           1.1         0.2           1.8           2.3            -          -            0.2        1.9    10.8
Total Pressures For Change       12.0             1.7           1.7         0.2           2.2           5.5            -          -            0.2        1.9    25.4
                  SUBTOTAL      294.4            90.6        111.4        22.2         10.5           124.7         3.3       37.4             5.9       48.1   748.5
Funded From Specific Grant       (1.0)               -            -           -             -              -           -          -               -         -    (1.0)
                  SUBTOTAL      293.4            90.6        111.4        22.2         10.5           124.7         3.3       37.4             5.9       48.1   747.5
Cashable Efficiency Savings:
FYE of previous efficiencies     (2.7)           (0.5)            -       (0.1)            -               -       (0.5)          -               -         -    (3.8)
2009/10 efficiencies             (7.1)           (2.2)        (1.4)           -        (0.2)           (2.8)           -          -           (0.2)         -   (13.9)
Total Cashable Efficiency
                                 (9.8)           (2.7)        (1.4)       (0.1)        (0.2)           (2.8)       (0.5)          -           (0.2)         -   (17.7)
Savings
RESULTANT BUDGET                283.6            87.9        110.0        22.1         10.3           121.9         2.8       37.4             5.7       48.1   729.8



                                                                                    107
108
                                                                                                                                                                        APPENDIX 8
                                                                    PRESSURES FOR CHANGE 2009/10
                                                                           Crime &
                                                                            Drugs                                  Education                Libraries,
                                                     Adult        Fire &   Strategy     Other                        Non-      Children's   Culture &                  Central
                                                     Care        Rescue      Unit     Services #       Resources    schools    Services     Learning     Environment    Items    TOTAL
                                                     £'000        £'000     £'000       £’000            £'000       £'000      £'000         £'000         £'000       £'000     £’000
Previous Policy Decisions (2008/09 & Prior Years):
Denominational Transport                                                                                               (270)                                                      (270)
Close Tring HWRC                                                                                                                                              (100)               (100)
Dial-a-Ride Savings                                                                                                                                            (50)                (50)
Total Previous Policy Decisions                              -         -          -                -           -       (270)            -            -        (150)          -    (420)
Demography:
Learning Disability                                   6,462                                                                                                                       6,462
Older People                                          2,187                                                                                                                       2,187
Physical Disability                                     888                                                                                                                         888
Mental Health                                           860                                                                                                                         860
Transport For Howe Dell pupils                                                                                           (8)                                                         (8)
Legal Fees and charges                                                                                                               238                                            238
Higher Education (CLA)                                                                                                              (40)                                            (40)
Independent Placements                                                                                                             (227)                                          (227)
Road Length Increases - Routine Maintenance                                                                                                                     200                 200
Total Demography                                     10,397            -          -                -           -         (8)         (29)            -          200          -   10,560
Legislative Changes:
Working Time Directive                                  97             1                                     20                       88                         19                 225
Immigration: Applications for Permission to Work         4                                                                 7                                                         11
Independent Safeguarding Authority - vetting &
                                                         3
barring scheme                                                                                              220            8                        1             2                 234
Driver Training                                                      36                                                                                                              36
Regulatory Enforcement & Sanctions Act 2008                                                   23                                                                                     23
General Register Office payment withdrawal                                                    18                                                                                     18
International Financial Reporting Standards                                                                 100                                                                     100
Immigration, Asylum and Nationality Act 2006                                                                 30                                                                      30
Multi-Agency Psychology Services (MAPS)                                                                                 163                                                         163
Complaints                                                                                                               30           20                                             50
Integrated Children's System - Super Users                                                                                           400                                            400
Legal Fees and charges                                                                                                               180                                            180

                                                                                      109
                                                                   Crime &
                                                                    Drugs                               Education                Libraries,
                                                 Adult    Fire &   Strategy     Other                     Non-      Children's   Culture &                  Central
                                                 Care    Rescue      Unit     Services #    Resources    schools    Services     Learning     Environment    Items    TOTAL
                                                 £'000    £'000     £'000       £’000         £'000       £'000      £'000         £'000         £'000       £'000     £’000
Child Protection Conference Support                                                                                       161                                            161
Conciliation & Advice                                                                                                      (8)                                            (8)
Integrated Children’s System                                                                                            (200)                                          (200)
Landfill Tax                                                                                                                                       3,035               3,035
Carbon Reduction Management                                                                                                                           50                  50
Enhanced Planned Highway Maintenance
Noticing                                                                                                                                              50                  50
Total Legislative Changes                          104       37           -           41         370         208          641            1         3,156          -    4,558
Other Pressures:
LGPS Employer's contribution                       559       46          5            55         414         404          404         140            248               2,275
Supporting People VFM and Ineligible services      467                                                                                                                   467
Review in house provision with high unit costs     340                                                                                                                   340
Revenue Effects of Capital                         104                                                                                                                   104
Meals on wheels                                     85                                                                                                                     85
Capital Payback                                     55         6                        1        263                                    40           780               1,145
Revenue Effects of Telecomms                        80                                (3)         27           88                        2            (5)                276
Business Rates                                   (143)         0                        0        150         (46)                        1            (3)                (41)
Regional Management Board                                      5                                                                                                            5
Reduction in employers contributions                        (50)                                                                                                         (50)
Proceeds of Crime Act 2002                                                            45                                                                                   45
Rent                                                                                   5                                                                                    5
Implementation of Pitt Review
Recommendations                                                                       20                                                                                  20
Loss of external income for Property                                                             481                                                                     481
EDRMS Revenue Effects of Capital                                                                 268                                                                     268
Corporate Procurement Activity                                                                   167                                                                     167
Loss of income from commercial payroll
advertising                                                                                       31                                                                      31
Corporate Graduates                                                                               15                                                                      15
BSF (Building Schools for the Future)                                                                        900                                                         900
Home to School Transport                                                                                     230                                                         230
Attendance & Pupil Support                                                                                   190                                                         190
Special Educational Needs Service                                                                             60                                                          60
Residential Short break Services for Children
with Disabilities                                                                                                         360                                            360
Client Services & Emergency Duty Team (EDT)                                                                               214                                            214
                                                                              110
                                                                  Crime &
                                                                   Drugs                              Education                Libraries,
                                               Adult     Fire &   Strategy     Other                    Non-      Children's   Culture &                  Central
                                               Care     Rescue      Unit     Services #   Resources    schools    Services     Learning     Environment    Items    TOTAL
                                               £'000     £'000     £'000       £’000        £'000       £'000      £'000         £'000         £'000       £'000     £’000
Waste Procurement                                                                                                                                  706                  706
Cross boundary buses                                                                                                                               400                  400
Transport Planning and County Travel Survey                                                                                                         90                   90
New Highway Management System                                                                                                                       50                   50
Community Cohesion Strategy                                                                                                                         20                   20
Capital Financing                                                                                                                                           2,334     2,334
Interest on Balances                                                                                                                                        3,179     3,179
LABGI                                                                                                                                                         500       500
Increase specific reserve                                                                                                                                   (655)     (655)
Office Rationalisation Project                                                                                                                              (940)     (940)
Reduction in provision for uncertainties                                                                                                                  (2,500)   (2,500)
Total Other Pressures                           1,547        7          5           123      1,816       1,826        1,065         183          2,286      1,918   10,776
TOTAL PRESSURES FOR CHANGE                     12,048       44          5           164      2,186       1,756        1,677         184          5,492      1,918   25,474

# Other Services include: Trading Standards, Registration, Coroners & Emergency Planning




                                                                             111
112
                                                                              APPENDIX 9
                PROBABILITY ANALYSIS OF 2009/10 UNCERTAINTIES

                                                  Expected Probability Probability
                                                   Value       of        Value
                UNCERTAINTIES                       £’000  Occurrence    £’000
CSF Education non-schools:
Schools Courier Service                                 35        75%          26
CSF Children’s Services:
Number of Children Looked After                        295        75%         221
Better working with our Partners                       188        50%          94
Social Workers                                         795        75%         596
Social Workers Maternity and Sickness Cover            366        75%         275
Foster Carer Development                               638        75%         479
Exceptional inflation on Independent
                                                       239        75%         179
Placements
Adult Care Services:
Learning Disability                                  1,000        90%         900
Assimilation costs of staff transferred to HPFT        350        90%         315
Inflation increase from PCTs                           900        75%         675
Environment:
Waste Volumes                                          220        50%         110
Pitt Review                                             50        50%          25
Waste diversion following increase in LFT              250        50%         125
Management of Local Wildlife Sites                      30        50%          15
Herts Forward - Alternative Funding                     20        50%          10
Fire & Rescue:

Part Time Workers Regulations                          150        90%         135

Trading Standards:
Proceeds of Crime Act 2002                              45        75%          34
Registration:
Joint Birth Registrations                               20        30%           6
Central Items:
1% Variation to Pay & Price Inflation                6,000        50%        3,000
Deliverability of efficiency savings                 7,000        15%        1,050
TOTAL                                               13,591                   7,520




                                         113
114
                                                                                                                                                                          APPENDIX 10
                                                                            EFFICIENCY SAVINGS 2009/10
                                                                            Crime &
                                                                             Drugs                                  Education                 Libraries,
                                                         Adult     Fire &   Strategy     Other                        Non-       Children's   Heritage                   Central
                                                         Care     Rescue      Unit     Services #       Resources    schools     Services       & Arts     Environment    Items    TOTAL
                                                         £'000     £'000     £'000       £’000            £'000       £'000       £'000         £'000         £'000       £'000     £'000
FYE of Previous Efficiencies:
Value for Money (Previously Gershon)
Re-tendering Countywide Homecare Block Contract          (520)                                                                                                                       (520)
Expert Purchasing of Care Placements for Learning
Disability
                                                         (500)                                                                                                                       (500)
Individual Budgets for Older People                      (500)                                                                                                                       (500)
Re-tendering Homecare Block Contracts                    (370)                                                                                                                       (370)
Individual Banded Budgets for Learning Disability        (180)                                                                                                                       (180)
Better procurement & Individual Budgets for Physical
Disability
                                                         (100)                                                                                                                       (100)
Extra Care Sheltered Housing                             (100)                                                                                                                       (100)
PC Leasing                                                 (4)                                                (2)          (4)          (2)                        (2)                (14)
Herts Music Service                                                                                                     (200)                                                        (200)
Participation Team Efficiencies                                                                                          (30)                                                         (30)
Mainstream Home to School Transport                                                                                       (6)                                                          (6)
Strategy and Resources portfolio                                                                                           34                                                           34
ICT Equipment                                                                                                              60                                                           60
Schools Library Service                                                                                                                           (100)                              (100)
                                             subtotal   (2,274)         -          -                -         (2)       (146)           (2)       (100)            (2)         -   (2,526)
Other Savings:
Increase charges for Non-Residential services to
more closely reflect actual cost of service              (500)                                                                                                                       (500)
provided.
Savings (resulting from reducing PCSO funding)                                (500)                                                                                                  (500)
Standards and School Effectiveness – MECSS                                                                              (300)                                                        (300)
                                             subtotal     (500)         -     (500)                 -           -       (300)             -           -              -         -   (1,300)
Total FYE of Previous Efficiencies                      (2,774)         -     (500)                 -         (2)       (446)           (2)       (100)            (2)         -   (3,826)
2009/10 Cashable Efficiency Savings:
Value for Money (Previously Gershon):
Restricting the increases in fees paid to care
                                                        (3,669)                                                                                                                    (3,669)
providers
Enabling Homecare / Intermediate Care                    (750)                                                                                                                       (750)
HPFT to absorb part of the Mental Health
                                                         (700)                                                                                                                       (700)
demographic pressures

                                                                                         115
                                                                                                                                                APPENDIX 10 (continued)
                                                                     Crime &
                                                                      Drugs                               Education                Libraries,
                                                   Adult    Fire &   Strategy     Other                     Non-      Children's   Heritage                   Central
                                                   Care    Rescue      Unit     Services #    Resources    schools    Services       & Arts     Environment    Items    TOTAL
                                                   £'000    £'000     £'000       £’000         £'000       £'000      £'000         £'000         £'000       £'000     £'000
Supporting People General Grant                    (546)                                                                                                                  (546)
Extra Care Sheltered Housing                       (400)                                                                                                                  (400)
Day Services Modernisation - Older People          (160)                                                                                                                  (160)
Equipment Retail Model                             (500)                                                                                                                  (500)
Supporting People Administration Grant              (74)                                                                                                                   (74)
Efficiency adjustments to Various Budgets                     (50)                                                                                                         (50)
EETSA Business Advice Project                                                          (23)                                                                                (23)
Trading Standards on-line services                                                      (4)                                                                                 (4)
Special Post Mortem Exams                                                               (7)                                                                                 (7)
Computerised booking system                                                            (10)                                                                                (10)
Single registration district                                                            (4)                                                                                 (4)
Restructuring of posts within Corporate Services                                                  (106)                                                                   (106)
Utility savings generated from the Smart
                                                                                                   (23)                                                                    (23)
Metering programme
Paper-based communications changing to an
                                                                                                    (5)                                                                     (5)
electronic format
Home to School Transport                                                                                      (229)                                                       (229)
SEN Home to School Transport                                                                                  (100)                                                       (100)
Primary School Effectiveness Team                                                                              (60)                                                        (60)
Planning                                                                                                       (40)                                                        (40)
Governance Team                                                                                                (30)                                                        (30)
Participation Team                                                                                             (30)                                                        (30)
Directors Office                                                                                               (21)         (29)                                           (50)
Customer Focus                                                                                                 (18)         (18)                                           (36)
SSE Achievement & Inclusion Team                                                                               (10)                                                        (10)
Children Looked After (CLA) Transport and
                                                                                                                          (140)                                           (140)
Contact arrangements
Housing for Care Leavers                                                                                                    (70)                                           (70)
Reduce Libraries supplies and services                                                                                                  (24)                               (24)
Household waste Recycling Centres                                                                                                                   (1,000)             (1,000)
Further Savings from Holistic Cat 1 & 2
                                                                                                                                                      (500)               (500)
Management
Efficiencies in Use of HAPS System                                                                                                                    (200)               (200)
Separation of Inert Wastes at HWRC’s                                                                                                                  (125)               (125)


                                                                                  116
                                                                                                                                                  APPENDIX 10 (continued)
                                                                       Crime &
                                                                        Drugs                               Education                Libraries,
                                                    Adult     Fire &   Strategy     Other                     Non-      Children's   Heritage                   Central
                                                    Care     Rescue      Unit     Services #    Resources    schools    Services       & Arts     Environment    Items    TOTAL
                                                    £'000     £'000     £'000       £’000         £'000       £'000      £'000         £'000         £'000       £'000     £'000
Income from Third Party Recharges (Extra to
                                                                                                                                                        (100)               (100)
2008/09)
Highway Management System (Extra to
                                                                                                                                                        (100)               (100)
2008/09)
Audit Delivery Through Integrated Team                                                                                                                   (80)                 (80)
HWRC Central Container Service Contract                                                                                                                  (50)                 (50)
Reduce Controllable Overheads                                                                                                                            (50)                 (50)
Review of Overheads                                                                                                                                      (50)                 (50)
Project Manager                                                                                                                                          (46)                 (46)
Review and Reconfigure Consultancy                                                                                                                       (35)                 (35)
Deletion of Vacancy in Road Safety Unit                                                                                                                  (33)                 (33)
HWRC Textiles Income                                                                                                                                     (25)                 (25)
HWRC Wood Waste Contract                                                                                                                                 (25)                 (25)
Incentivise Delivery of Cat 2 and VXO Orders                                                                                                             (25)                 (25)
Forward Planning: Delete Vacant Tech Asst
                                                                                                                                                         (24)                 (24)
Post
Savings from Part Night Lighting Trial                                                                                                                   (15)                (15)
EMS Efficiency                                                                                                                                           (14)                (14)
Support Service Review                                                                   (28)        (57)       (130)        (70)                        (63)               (348)
Review of Family Support Service                                                                                            (456)
                                        subtotal   (6,799)      (50)          -          (76)       (191)       (668)       (783)         (24)        (2,560)         -   (11,151)
Other Savings:
Additional income                                   (300)                                                                                                                   (300)
Increased income from Proceeds of Crime Act
                                                                                         (45)                                                                                 (45)
2002
Increased income Weighbridge                                                              (6)                                                                                 (6)
Increased income Explosive licensing                                                      (5)                                                                                 (5)
Increased income Metrology laboratory income                                              (5)                                                                                 (5)
Prosecution cost recovery                                                                 (5)                                                                                 (5)
Reduced furniture costs                                                                   (4)                                                                                 (4)
Reduced mobile phone costs                                                                (3)                                                                                 (3)
Draft borders and immigration bill                                                       (15)                                                                                (15)
Other general savings within Corporate Services                                                      (35)                                                                    (35)
Hospital Tuition                                                                                                (548)                                                       (548)
Directors Office                                                                                                (250)       (250)                                           (500)

                                                                                    117
                                                                                                                                                APPENDIX 10 (continued)
                                                                      Crime &
                                                                       Drugs                              Education                Libraries,
                                                   Adult     Fire &   Strategy     Other                    Non-      Children's   Heritage                   Central
                                                   Care     Rescue      Unit     Services #   Resources    schools    Services       & Arts     Environment    Items    TOTAL
                                                   £'000     £'000     £'000       £’000        £'000       £'000      £'000         £'000         £'000       £'000     £'000
Home to School Transport                                                                                      (167)                                                       (167)
Multi-Agency Psychology Services (MAPS)                                                                       (163)                                                       (163)
Student Finance                                                                                               (150)                                                       (150)
Specialist Advisory Service                                                                                    (69)                                                        (69)
Charge Adviser time to grant                                                                                   (55)                                                        (55)
SSE Schools causing concern direct costs
                                                                                                               (50)                                                         (50)
budget
Music Service - defer developments                                                                             (50)                                                         (50)
Learning, Training & Research Team                                                                             (50)                                                         (50)
Early Years: Charge activity to grant for
                                                                                                               (10)                                                         (10)
buddying programme
Better working with our partners                                                                                          (188)                                           (188)
Strategic Commissioning Team                                                                                              (100)                                           (100)
District Partnership Teams                                                                                                 (26)                                            (26)
Specialist Adolescent Team Client Expenditure                                                                              (20)                                            (20)
Increase income from the Rural Estate & CMS                                                                                                            (70)                (70)
Partners Contribution to Highway Management
                                                                                                                                                       (50)                 (50)
System
Projected Concessionary Fare Income                                                                                                                    (50)                 (50)
Travel Plan: Charge for Monitoring and Advice                                                                                                          (30)                 (30)
CDU Planning Application Charges                                                                                                                       (20)                 (20)
Herts Forward - Charge for Conference+ Seek
                                                                                                                                                       (20)                 (20)
Contribs
                                       subtotal     (300)         -          -         (88)        (35)     (1,562)       (584)            -          (240)         -    (2,809)
Total 2009/10 Cashable Efficiency Savings         (7,099)      (50)          -        (164)       (226)     (2,230)       (911)         (24)        (2,800)         -   (13,504)

TOTAL CASHABLE EFFICIENCY SAVINGS                 (9,873)      (50)     (500)         (164)       (228)     (2,676)     (1,369)        (124)        (2,802)         -   (17,786)


# Other Services includes: Trading Standards, Registration, Coroners and Emergency Planning




                                                                                   118
                                                               APPENDIX 11


SCHOOLS BUDGET 2009/11


Report of the Director of Children Schools & Families

Author: -              Simon Pickard     Tel: 01992 – 555736
Executive member:      Keith Emsall


1.   Purpose of the report

     To enable Cabinet to agree the proposed Schools Budget 2009-10 and
     Indicative Schools Budget 2010-11.


2.   Summary

2.1 It is estimated that the headroom in the Schools Budget for 2009-10 is
    £187 thousand after meeting inflation and cost pressures. This
    headroom has been identified as a result of recent changes to inflation
    assumptions, therefore proposed allocation has not yet been fully
    discussed with Schools Forum.

2.2 Proposals to provide resources for the following cost pressures were
    endorsed by Schools Forum on 21 January 2009 and are included in
    the proposed budget:
        transfer the costs of the Hospital Tuition Service previously
         charged to the LEA Budget into the Schools Budget from April
         2009; (£0.5 million)
        provide investment in Combined Children’s Services for the rollout
         of the Resilience programme throughout the county (£0.25 million)
        establish a central budget for the provision of Voice Output
         Communication Aids previously funded by government grant (£0.1
         million); and
        provide additional resources for the Schools Counselling Service
         (£76 thousand) and the Admissions Appeals Service (£64
         thousand).

2.2 The allocation of some £4.3 million Additional Personalisation funds has
    also been discussed with Schools Forum. The school funding
    settlement, Additional Personalisation funds and unspent balances
    have together provided sufficient resource to make the implementation
    of a Single Funding Formula for all Early Years provision in
    Hertfordshire feasible from April 2009. Schools Forum has endorsed the
    allocation of £3.0 million resources to close the substantial funding gap
    for the Private, Voluntary and Independent sector over the next two
    years, including some consequential changes in funding arrangements
    for specific groups to bring all supported pupils into line with DCSF
    grant guidelines. Schools Forum has also endorsed some allocations
    within maintained schools to meet specific pressures. These proposals
                                   119
     will be the subject of separate papers to Cabinet and Education Cabinet
     Panel during February.

2.3 The investment in Combined Children’s Services has, in accordance
    with regulations, been approved by the Schools Forum. In addition the
    Schools Forum has formally agreed levels of central expenditure in
    excess of the regulatory limit for 2009-10 and 2010-11.

2.4 Following these proposals unallocated headroom of £2.692 million
    remains for 2010-11. It is proposed this is retained pending the
    outcomes of further research which will determine the allocation of this
    resource.


3.   Recommendations

     It is recommended that Cabinet:
        approve the specific allocations of Dedicated Schools Grant to
            centrally retained budgets as set out in Section 5 below;
        note the allocation of £3 million to provide resources for the
            implementation of a Single Early Years formula for all settings
            throughout Hertfordshire, and note that Early Years Funding
            arrangements will be discussed further with Cabinet and Education
            Cabinet Panel during February;
        note that Schools Forum has discussed and endorsed a proposed
            Schools Budget including formally agreeing a Central Expenditure
            Limit £925k above the regulatory level for 2009-10; and
        approve retention of unallocated headroom and personalisation
            funding for 2010-11 pending the outcomes of further research
            which will determine the allocation of these resources.


4.   Background

4.1 Under the revised School Funding arrangements introduced by the
    government from April 2006, the Schools Forum has an enlarged role
    which includes formal decision making on certain aspects of the
    Schools Budget. Nevertheless final responsibility for the delegation of
    budgets to schools remains with the Authority.

4.2 The January 2008 Education Cabinet Panel paper on the Children,
    Schools and Families Standstill Budget 2008/09 – 2011/12 set out
    information on increases to the overall level of increase in the
    Dedicated Schools Grant (DSG) alongside funding for ministerial
    priorities. These arrangements were set by government for a three year
    funding period and no new announcements have been made in respect
    of the Dedicated Schools Grant. The budget proposals take account of
    these issues alongside demographic and legislative changes.

4.3 The final value of the DSG for 2009-10 will only become known once
    the January 2009 schools census numbers have been confirmed by the
    DCSF during the summer term. The information in the following
    paragraphs sets out the predicted level of the DSG and indicates that
                                   120
     the available headroom after meeting cost pressures in 2009-10 is £187
     thousand and in 2010-11 is £2.692 million.


5.   Schools Budget 2009-11

5.1 Table 1 summarises for the remaining years of the current funding
    period the estimated settlement from the Dedicated Schools Grant. It
    shows the resource required to deliver a standstill budget for 2009-10
    and indicates that the available headroom in 2009-10 is £187 thousand.
    It also indicates there will be £2.7 million headroom available in 2010-11
    if all the proposed pressures in 2009-10 are met.

     Table 1        Summary Schools Budget 2009-11

       £,000s                                    2009-10     2010-11

       Base Budget                               640,542      659,920
       Previous Policy Decisions                  -1,761       -3,296
       Demography                                      0            0
       Legislative Changes                         1,906        3,315
       Other Pressures                             6,456       15,313
       Efficiencies                               -5,975      -11,865
       STANDSTILL BUDGET                         641,078      663,387

       ESTIMATED DEDICATED
       SCHOOLS GRANT                             641,265      666,079

       Available Headroom                             187       2,692

       Proposed Allocations:
       Advanced Skills Teachers                       187         187
       Unallocated headroom                             -       2,505
       Total Allocations                              187       2,692

5.2 In addition to the funding increase to schools at the guaranteed
    minimum level the DCSF has provided further Additional
    Personalisation funds. As this is intended for particular purposes this
    has been included in the Other Pressures budget above, however there
    is some flexibility in the use of these resources. Schools Forum has
    endorsed a number of proposals for allocation of the Additional
    Personalisation resources which are summarised below, and will be the
    subject of additional papers to Cabinet and the Education Cabinet
    Panel.

5.3 As described in January 2008 budget reports, the largest increase in
    the Additional Personalisation resources will be received in 2010-11. In
    order that these resources can be committed to providing ongoing
    services as soon as possible it is proposed in 2009-10 to make use of
    the unspent balances of Dedicated Schools Grant anticipated to be
    carried forward, and to allocate resources from 2010-11 so that services
    and allocations can be sustained on an ongoing basis.


                                   121
5.4 Cost pressures set out in Table 1 above include a proposal to transfer
    the budget for Hospital Tuition currently within the LEA Budget to the
    Schools Budget, which is funded by the Dedicated Schools Grant. The
    gross amount of the transfer is £548k however some efficiency savings
    have been identified and are included in the efficiency savings set out
    separately in the table above. Schools Forum gave unanimous support
    to this proposal at its 17 September 2008 meeting and agreed the
    consequent change to the Central Expenditure Limit at its 21 January
    2009 meeting.

5.5 The cost pressures include the rollout of the Resilience Programme to
    schools across the county, which represents a contribution to combined
    Children’s Services. Regulations specify that such contributions require
    the explicit agreement of the Forum, ensuring that they deliver
    educational benefits to children and young people. Schools Forum
    agreed this contribution and the consequent increase in the Central
    Expenditure Limit at its 21 January 2009 meeting.

5.6 Schools Forum has unanimously endorsed the creation of a budget to
    provide Voice Output Communication Aids, replacing government grant
    which has been withdrawn. Forum members expressed views that
    these aids should be the responsibility of the Health Service, however
    recognised that the Health Service is unlikely to take this responsibility
    as there is no duty on them to do so. It was agreed that the educational
    benefits for the pupils were substantial. Schools Forum agreed the
    creation of this budget and the consequent increase in the Central
    Expenditure Limit at its 21 January 2009 meeting.

5.7 Schools Forum unanimously endorsed the extension of two existing LA
    services which are currently under pressure. The Schools Counselling
    Service is experiencing increasing demand for services to existing age
    groups and also has identified a significant demand for provision to
    younger pupils. The Admission Appeals Service is experiencing
    increases in both the number of appeals lodged and in the number
    progressing to a hearing. Schools Forum agreed to provide additional
    resources for both budgets, and agreed the consequent increase in the
    Central Expenditure Limit at its 21 January 2009 meeting.

5.8 In exercise of its formal power, Schools Forum has approved setting
    central expenditure for 2009-10 at a level £925k above the regulatory
    limit.

5.9 The efficiencies budget set out in Table 1 includes the impact of the 1%
    per annum efficiency target imposed on schools by the government,
    which will impact school budget shares by some £5.4 million in
    aggregate.

5.10 Schools Forum has endorsed a number of proposals for amendments
     to funding formula factors and values within schools’ delegated budget
     shares. Proposed changes were included in the Schools Formula
     Consultation during December, which will be discussed with Education
     Cabinet Panel on 11 February and their comments and


                                   122
     recommendations will be presented to Cabinet for decision at the 16
     February meeting.


6.   Headroom 2009-10

6.1 Recent reductions to the inflation assumptions for energy costs have
    released resources within the proposed Schools Budget. This change
    will give rise to an increase in the amount of budget protection
    allocations therefore the net amount released is estimated at £187
    thousand.

6.2 Schools Forum has previously recommended that £271 thousand
    should be allocated to support the continuation and extension of the
    funding support for Advanced Skills Teachers in the context of a
    reduction in Standards Funds Grants for this programme. In the draft
    budget agreed with the Schools Forum it had not been affordable to
    provide this resource, however it is expected that Schools Forum would
    see this as the highest priority for support. It is therefore suggested that
    the £187 thousand available headroom is allocated to the funding for
    Advanced Skills Teachers pending discussion with the Schools Forum.
    These funds would be held as a Specific Schools Contingency within
    centrally retained funds, therefore a formal resolution of the Schools
    Forum will be required.

6.3 The Schools Forum constitution provides a mechanism for urgent
    decisions, which would enable their views on the above allocations to
    be reported to Cabinet on 16 February.


7.   Financial Implications

7.1 The implications of these proposals are accounted for in the Schools
    Budget which is funded from the Dedicated Schools Grant.

7.2 Due to the retention of funds within central budget lines of the 2009-10
    budget, the most significant elements of which relate to the Hospital
    Tuition Service and the rollout of the Resilience programme, the
    regulatory Central Expenditure Limit is breached. In exercise of one of
    their powers, the Schools Forum has approved the level of central
    expenditure in the proposed 2009-10 Schools Budget.

7.3 Due to the retention of amounts of unallocated headroom and
    Additional Personalisation in the 2010-11 budget pending further
    development work with the Schools Forum, the Central Expenditure
    Limit is breached, albeit to a slightly lesser extent than indicated at this
    time last year. In exercise of one of their powers, the Schools Forum
    has approved the level of central expenditure in the indicative 2010-11
    Schools Budget.




                                     123
8.   Background papers

Cabinet Report 4 February 2008 -
COUNTY COUNCIL RESOURCE BUDGET 2008/09 TO 2011/12 Appendix
11

Education Cabinet Panel Report 21 October 2008 -
SCHOOL FUNDING ARRANGEMENTS 2009 - 2011




                               124
                                                              APPENDIX 12

CABINET PANEL RECOMMENDATIONS / COMMENTS


Waste Management Cabinet Panel – 6 January 2009

The Panel:

1.   noted the Environment Standstill Budget and expressed regret at the
     negative impact that landfill tax has on the budgetary position.

2.   thanked officers for their work in achieving savings and increased
     efficiencies against the Environment base budget, and for their
     achievements with the continued improvements at HWRCs.


Rural Affairs Cabinet Panel – 6 January 2009

The Panel:

1.   noted the Environment Standstill budget.


Children’s Services and Corporate Parenting Cabinet Panel – 7 January
2009

The Panel:

1.   noted the Children’s Services Standstill Budget for 2009/10 – 2012/13.


Education Cabinet Panel – 7 January 2009

The Panel:

1.   recommended that the ‘Other Pressures’ should additionally require the
     needs for investment in preventative measures for children at risk, as
     advocated in the strategic compasses for both Integrated Children’s
     Services and Youth Connexions;

2.   expressed concern at the reduction by government in the Connexions
     grant due to changes in the formula-based allocation;

3.   requested that a report on the Integrated Youth Support Service be
     brought to the Panel.




                                   125
Community Safety Cabinet Panel – 8 January 2009

The Panel noted:

1.   that in relation to the Fire and Rescue Service budget, the Executive
     Member for Resources and Well-Being commented that the technical
     reduction of £280k relating to community fire safety should not be taken
     in the budget considerations, to reflect the fact that community fire
     safety was now core business.

2.   that in relation to Statutory Services, Legislative Changes: General
     Register Office Annual Consolidated Payment in addition to loss of
     income from registrations of birth there would also be a loss of revenue
     from registrations of death.


Planning and External Relations Cabinet Panel – 13 January 2009

The Panel:

1.   noted the revenue budget and capital programme bids


Highways and Transport Cabinet Panel – 13 January 2009

The Panel:

1.   noted the Environment Standstill Budget for 2009 / 10 – 2012 / 2013

2.   noted that there would be benefit in undertaking planned maintenance
     of drainage assets which would assist mitigating the frequency and
     potential impacts of flooding

3.   noted that Hertfordshire residents would be looking for continued
     improvement in the condition of roads and footways they used and as
     much additional road maintenance as could be funded should be
     undertaken next year.




                                   126
Culture Cabinet Panel – 14 January 2009

The Panel:

1.   endorsed the principles of the revenue budget and capital programme
     bids and emphasised the vital importance of the capital bid for the
     replacement of the Library Management System.


Adult Care and Health Cabinet Panel – 15 January 2009

The Panel:

1.   recommended the base budget to Cabinet and noted the proposed
     capital programme;

2.   thanked Adult Care Services officers for a comprehensive report and for
     working to identify savings in the face of increasing pressures on the
     service’s budget.


Policy and Resources Cabinet Panel - 15 January 2009

A.   CORPORATE SERVICES STANDSTILL BUDGET 2009/10 TO 2012/13
     AND ENVIRONMENT STANDSTILL BUDGET 2009/10 - 2012/13.

     The Panel noted the Corporate Services Standstill Budget 2009/10 –
     2012/13 and the Environment Standstill Budget (2009/10 – 2012/13)
     (aspects relating to Corporate Strategy & Partnerships).

B.   COUNTY COUNCIL RESOURCE BUDGET 2009/10 TO 2012/13

     The Panel noted the views of the service cabinet panels and welcomed
     the reassurance given by the Executive Member for Performance &
     Resources that he would give due consideration to the comments from
     the Education Panel alongside other bids for growth when the County
     Council Resource Budget for 2009/10 – 2012/13 was discussed.




                                  127
128
                                                                  APPENDIX 13

                   Statement of the Finance Director
           Robustness of Estimates and Adequacy of Reserves

Robustness of estimates

The Council’s process for producing budget estimates involves senior
managers and finance professionals in evaluating and costing all known
changes, including pay and price levels, legislative changes, demands for
services and policy developments. The process includes consideration of
risks and uncertainties associated with projections of future pay, prices,
interest rates, and projected levels and timing of other potential liabilities.
Based on a risk analysis of the potential for cost increases in these areas of
risk/uncertainty the proposed budget continues to include a general
contingency and special provision to provide for the possible ongoing impact
of these items.

Allocation from the central contingencies requires corporate approval, and
the Council’s financial regulations require the Chief Officers to ensure that
net expenditure does not exceed the total of their service’s delegated
budgets, ie budgets are cash limited; and this system of budgetary control
has been in place for a number of years. In 2008/09 there have been
continuing pressures on demand-led budgets, particularly relating to social
care and robust action continues to ensure that these pressures are
contained within available resources on a sustainable basis

The 2009/10 standstill budget described in this report assumes a high level of
efficiency savings, and the possibility of failing to hit some of these savings
targets has been considered in constructing the contingency levels within the
2009/10 budget.

Specific Reserves

As part of the budget preparation process, the current and projected levels of
the council’s specific reserves have been considered and these are detailed
in Appendix 15.

Adequacy of Reserves

General reserves as at 1 April 2009 are currently projected to be £32.8m,
taking account of the projected outturn for 2008/9.

In assessing the adequacy of the Council’s reserves, the outcome of the
Council’s Key Risk Management process (to be presented to Cabinet on 16th
February 2009), the uncertainties discussed in the budget report, and the
levels of the contingency and special provision need to be considered.

In coming to a view on the adequacy of reserves to cover risks in the area of
litigation, business continuity, civil emergency, failure of information systems,
budgetary control and interest rate calculations, bank failures and capital
receipts risks have been considered in terms of the possible maximum
financial impact and their probability of occurrence, and on this basis, the

                                     129
Finance Director’s initial view is that a level of general balances of £20.1
million would be adequate for the 2009/10 year. This level recognises the
increasing financial uncertainties arising from current economic conditions.
This will need to be confirmed prior to the finalisation of the 2009/10 budget.




                                    130
                                                                                                                                           APPENDIX 14
                                             Capital Programme - Preferred Cashflows on all Major Schemes
Service      Scheme Description and Location         Start Date   Gateway            Funding Source         Total     2009/10    2010/11        2011/12
Priority
 Band
 1/2/3                                                                                                      £'000      £'000      £'000          £'000
ADULT CARE SERVICES
          IRIS - Future developments                                          general programme: existing     3,100        500              -            -
          Day Centre Modernisation phase 1                                    capital receipt                 2,911      1,000              -            -
   1      Day Centre Modernisation phase 2                                    capital receipt                 6,081      6,081              -            -
   1      Day Centre Modernisation phase 3            Apr-10                  capital receipt                   281          -            281            -
          Self contained ground floor extension at
   1      9 Spring Drive Stevenage                    Apr-09                  general programme: new            120        120              -            -
          Learning Disability Housing and Support
   1      Strategy Maximising Opportunities           Apr-09                  general programme: new            100         75          25             -
   1      St Michaels Respite Care Provision          Apr-09                  capital receipt                 2,100        700         900           500
Service Total                                                                                                14,693      8,476       1,206           500


CSF EDUCATION (SCHOOLS)
SCHOOLS
  1     Building Schools for Future procurement                               general programme: existing     4,500      1,000       1,000                   -
           Primary Area Reviews:-
   1            Hoddesdon/ Wormley                   Completed    Completed   capital receipt                 3,843         75              -                -
   1            Potters Bar                          Completed    Completed   capital receipt                 2,340         50              -                -
   1            Hemel Hempstead                      Completed    Completed   capital receipt                 4,600        100              -                -
   1       Bernards Heath Infants' School            Completed    Completed   general programme: existing       400         40              -                -
           Letchworth Primary Review
   1          Radburn Primary                         Apr-08      Gateway 4   capital receipt                   340        101              -                -
   1          Icknield Infants                        May '09       Pre-      capital receipt                   542        434              -                -
                                                                  Gateway 1
   1          Wilbury Junior                          May '09       Pre-      capital receipt                   275        275              -                -
                                                                  Gateway 1
    1         Westbury Pre-School                     Jan-09      Gateway 1   capital receipt                   370        296              -                -
           Establishing Key Stage 4 Centres:-




                                                                              131
                                                                                                                                       APPENDIX 14 (continued)
                                              Capital Programme - Preferred Cashflows on all Major Schemes
Service      Scheme Description and Location        Start Date     Gateway           Funding Source           Total      2009/10          2010/11        2011/12
Priority
 Band
 1/2/3                                                                                                        £'000       £'000            £'000          £'000
   1       South East Herts -Cabinet Report           Interim        Pre-      general programme: existing       1,500            37                 -                -
           December 2008                            completed.     Gateway 1
                                                       Final
                                                     2009/10
   1       St Albans                                 Sites being     Pre-      general programme: existing        750         525                   38                -
                                                    investigated   Gateway 1
   1       Dacorum                                   Sites being     Pre-      general programme: existing        350         150                    -                -
                                                    investigated   Gateway 1
   1       Highfield -Sports Hall                      Jan-09      Gateway 3    general programme: existing     2,770         197                    -            -

   1       Sir John Lawes - Replacement of wood       May '09       Gateway     general programme: existing       200             50                 -            -
           preparation area                                           2.5
   1       The Hemel Hempstead - Food               Completed      Completed    general programme: existing       730         511                   36            -
           Technology provision
   1       Thundridge -Replacement of double         2009/10       Gateway 1    general programme: existing       600         420                   30            -
           mobile classroom
   1       Ponsbourne St Mary's - New classroom      2009/10         Pre-       general programme: existing       263             53                 -            -
                                                                   Gateway 1
   1       Woolenwick -Remodel of open plan          2009/10         Pre-       general programme: existing       420             84                 -            -
           classrooms                                              Gateway 1
   1       Beech Hyde -Remodel of open plan          2009/10         Pre-       general programme: existing       368             74                 -            -
           classrooms                                              Gateway 1
           First phase of Science: -
   1             Chancellors                          Aug '08      Gateway 4    general programme: existing       409             82                 -                -
   1             Fearnhill                            Aug '08      Gateway 4    general programme: existing       402             80                 -                -
   1             Priory                               May '09      Gateway 3    general programme: existing       416             83                 -                -
   1             Sele                                 Aug '08      Gateway 4    general programme: existing       397             79                 -                -
           Second phase of Science: -
   1             St Albans Girls School               Aug '08      Gateway 4    general programme: existing       397             79                 -                -




                                                                               132
                                                                                                                                      APPENDIX 14 (continued)
                                              Capital Programme - Preferred Cashflows on all Major Schemes
Service      Scheme Description and Location          Start Date   Gateway           Funding Source           Total     2009/10          2010/11        2011/12
Priority
 Band                                                                                                         £’000      £’000            £’000          £’000
   1             Sandringham                           May '09     Gateway 3    general programme: existing       374            75                 -             -
   1             Cavendish                             May '09     Gateway 3    general programme: existing       408            82                 -             -
   1             Chauncy                               May '09     Gateway 3    general programme: existing       318            55                 -             -
           First phase of staff and admin: -
   1             Woolgrove                                                      general programme: existing       320            64                 -             -
   1             Camps Hill                           Completed    Completed    general programme: existing       230            46                 -             -
   1             Stonehill                                                      general programme: existing       220            44                 -             -
   1             Hartsfield JMI                                                 general programme: existing       190            38                 -             -
   1             Mount Pleasant Lane JMI                                        general programme: existing       190            38                 -             -
   1             Abbots Langley                                                 general programme: existing       184            37                 -             -
   1             Newberries                                                     general programme: existing       165            33                 -             -
   1             Hartsbourne                                                    general programme: existing       165            33                 -             -
   1             Eastbury Farm                                                  general programme: existing       185            37                 -             -
           Second phase of staff and admin: -
   1             Kimpton                                                       general programme: existing        158         32                    -             -
   1             Morgans JMI                                                   general programme: existing        184         37                    -             -
   1             Wheatcroft Primary                                            general programme: existing        184         37                    -             -
   1             Priors Wood                                                   general programme: existing        158         32                    -             -
   1             Redbourn Junior                                               general programme: existing        158         32                    -             -
   1             Thorn Grove                                                   general programme: existing        158         32                    -             -
   1             Spellbrook Primary                                            general programme: existing        123         25                    -             -
   1             Broadfield Junior School                                      general programme: existing        336        168                    -             -
   1             Additional funding staff and admin                            general programme:                 200        200                    -             -
                                                                               additional funding
   1       Graveley -Replacement of mobiles             Apr-09     Gateway 2   general programme: existing        525        368                   26             -
   1       Edwinstree -Changing rooms                  2008/09      Gateway    general programme: existing        250        175                   12             -
                                                                      2.5
   1       De Havilland -Car parking                   June '09      Pre-      general programme: existing        210        147                   11             -
                                                                   Gateway 1
   1       Sir John Lawes -Replacement of              May '09      Gateway    general programme: existing      1,400      1,000                   90             -
           mobiles                                                    2.5



                                                                               133
                                                                                                                                     APPENDIX 14 (continued)
                                               Capital Programme - Preferred Cashflows on all Major Schemes
Service      Scheme Description and Location          Start Date   Gateway           Funding Source          Total        2009/10       2010/11        2011/12
Priority
 Band
   1       Aycliffe Drive -Replacement of nursery      2009/10       Pre-      general programme: existing       500           350                25             -
           mobile and staff and administration                     Gateway 1
           block
   1       Presdales -Sports Hall                      Jan '09     Gateway 3   general programme: existing     2,570         2,100             225               -
   1       Devolved formula capital to schools                                 capital grant                  70,571        23,507          23,507               -
   1       Extended schools                                                    capital grant                   4,432         1,801             931               -
   1       ICT-Harnessing Technology                                           capital grant                  11,823         3,892           3,851               -
   1       Primary Capital pilot                                               capital grant                  26,266         8,694          11,072               -
   1       Cowley Hill - Borehamwood - 3               2009/10       Pre-      general programme: new            951           920              31               -
           classrooms                                              Gateway 1
                                                                               contributions from third              89         89                 -             -
                                                                               parties
   1       Holywell - Watford - 3 classrooms           2009/10       Pre-       general programme: new         1,040         1,000                40             -
                                                                   Gateway 1
   1       Greenway First - Berkhamsted - 2            2009/10       Pre-       general programme: new           810           785                25             -
           classrooms                                              Gateway 1
   1       Wheatcroft - Hertford - .5 Fe increase -    2009/10       Pre-       general programme: new         3,000           500           2,000          500
           5 classrooms                                            Gateway 1
   1       Green Lanes - Hatfield - .5Fe increase      2009/10       Pre-       general programme: new         1,409           500            909                -
                                                                   Gateway 1
                                                                               contributions from third              91         20                71             -
                                                                               parties
   1       Hailey & Stanstead Abbotts - .5Fe           2009/10       Pre-       general programme: new           971           500            271           200
           increase                                                Gateway 1
                                                                               contributions from third        1,729                         1,729
                                                                               parties
   1       Bernards Heath Junior - St. Albans -        2009/10       Pre-       general programme: new         1,500           500           1,000
           1FE                                                     Gateway 1
   1       Roman Fields - St. Albans - Residential     2009/10       Pre-       general programme: new         3,700           400           2,500          800
           Accommodation                                           Gateway 1




                                                                               134
                                                                                                                            APPENDIX 14 (continued)
                                             Capital Programme - Preferred Cashflows on all Major Schemes
Service     Scheme Description and Location          Start Date   Gateway           Funding Source      Total     2009/10      2010/11      2011/12
Priority
 Band                                                                                                   £’000      £’000        £’000        £’000
   1       Area Reviews - Feasibility for basic       2009/10       Pre-       general programme: new      100        100               -            -
           need expansion in Watford,                             Gateway 1
           Borehamwood, Welwyn Garden City,
           Turnford
   1       Roundwood Park - Harpenden - Sports        2009/10       Pre-       general programme: new     2,800       400         2,000          400
           Hall                                                   Gateway 1
   2       Monks Walk - WGC - Sports Hall             2009/10       Pre-       general programme: new     3,000       500         2,000          500
                                                                  Gateway 1
   2       Sandon - Sandon - Replace mobile with      2009/10       Pre-       general programme: new      350        300           50               -
           permanent classroom                                    Gateway 1
   2       The Ryde - Hatfield - Replace mobile       2009/10       Pre-       general programme: new      350        300           50               -
           with permanent classroom                               Gateway 1
   2       The Reed - Royston - Replace mobile        2009/10       Pre-       general programme: new      350        300           50               -
           with permanent classroom                               Gateway 1
   2       Hitchin Girls - Technology - Technology    2009/10       Pre-       general programme: new      750        150          600               -
           block                                                  Gateway 1
   3       Little Green - Croxley Green - Replace     2009/10       Pre-       general programme: new     1,000       300          700               -
           mobile with permanent classroom                        Gateway 1
   3       Eastbury Farm - Northwood - Replace        2009/10       Pre-       general programme: new     1,000       300          700               -
           mobile with permanent classroom                        Gateway 1
   3       Marlborough - St. Albans - Sixth Form      2009/10       Pre-       general programme: new     1,600       400         1,200              -
           Accommodation                                          Gateway 1
   3       Cheshunt - Cheshunt - Sixth Form           2009/10       Pre-       general programme: new     1,600       250         1,350              -
           Accommodation                                          Gateway 1
   3       Westfield - Watford - Sixth Form           2009/10       Pre-       general programme: new     1,750       250         1,500              -
           Accommodation                                          Gateway 1
   4       Grove Jr - Harpenden - Staff and admin     2009/10       Pre-       general programme: new      300        250           50               -
                                                                  Gateway 1
   4       Watton at Stone - Watton at Stone -        2009/10       Pre-       general programme: new      400         90          310               -
           Staff and admin                                        Gateway 1
   4       Ponsbourne St. Marys - Newgate St -        2009/10       Pre-       general programme: new      420         20          400               -
           Staff and admin                                        Gateway 1
   4       Giles Junior - Stevenage - Staff and       2009/10       Pre-       general programme: new      300        250           50               -
           admin                                                  Gateway 1



                                                                              135
                                                                                                                                                  APPENDIX 14 (continued)
                                               Capital Programme - Preferred Cashflows on all Major Schemes
Service      Scheme Description and Location            Start Date      Gateway            Funding Source               Total        2009/10         2010/11         2011/12
Priority
 Band                                                                                                                   £’000          £’000           £’000           £’000
   4       Trotts Hill Primary - Stevenage - Staff       2009/10         Pre-        general programme: new                300           250              50                  -
           and admin                                                  Gateway 1
    4      St. Mary's C of E - Ware - Staff and         2009/10          Pre-        general programme: new                300           250              50                  -
           admin                                                      Gateway 1
    4      Sarratt - Rickmansworth - Staff and          2009/10          Pre-        general programme: new                300           250              50                  -
           admin                                                      Gateway 1
    4      Tower - Ware - Staff and admin               2009/10          Pre-        general programme: new                300           250              50                  -
                                                                      Gateway 1
    4      Mandeville - Sawbridgeworth - Staff and      2009/10          Pre-        general programme: new                300           250              50                  -
           admin                                                      Gateway 1
    4      High Beeches - Harpenden - Staff and         2009/10          Pre-        general programme: new                300           250              50                  -
           admin                                                      Gateway 1
    4      Applecroft - WGC - Replace mobile with       2009/10          Pre-        general programme: new                500            50             450                  -
           permanent accommodation                                    Gateway 1
NOTE: Options for the relocation and the expansion of Schools in the Bishops Stortford area are currently being explored. Once a viable option has been identified this will be
brought forward for Cabinet consideration.

YOUTH & COMMUNITY
  1     Hatfield One Stop Shop                           2009/10                     general programme: new                 200             200                -               -
  1     Watford High Street - Creation of Youth           Jun-09         Pre-        capital receipt                        500             500                -               -
        Connections Centre                                             Gateway 1     contributions from third
                                                                                     parties
   1       Borehamwood - All Saints - New                Jan-09       Gateway 2      general programme: new                  700            700               -              -
           Library/Youth and Community facility                                      capital receipt                       3,112          1,522           1,430            160
                                                                                     contributions from third                750            150               -              -
                                                                                     parties
   2       Cuffley Camp Outdoor Centre - New             2009/10         Pre-        general programme: new                 260             130             130                -
           Village Accommodation                                       Gateway 1
   2       Harpenden - Replacement of Youth              Sep-09                      capital receipt                        400             300             100
           Centre
NOTE: Options for the replacement of the youth facilities at the Pioneer Youth Centre in St Albans are currently being considered. Once a viable scheme has been identified it
will be brought before Cabinet for consideration.




                                                                                   136
                                                                                                                               APPENDIX 14 (continued)
                                              Capital Programme - Preferred Cashflows on all Major Schemes
Service      Scheme Description and Location        Start Date    Gateway         Funding Source          Total     2009/10        2010/11        2011/12
Priority
 Band                                                                                                     £’000      £’000          £’000          £’000
CSF - CHILDREN'S SERVICES
   1      Sure Start, Early Years & Childcare                                capital grant                 18,319      10,373          7,946             -
   1      Contact Point Implementation                                       general programme: new           480         480              -             -
Service Total                                                                                             208,718      73,365         70,796         2,560


CSF - LIBRARIES, CULTURE & LEARNING
   1       South Oxhey Community Library           Oct-08        G2&3       capital grant                   1,424          84
           Project                                                          general programme: existing                    64
            Replacement of Library Management         Apr-09        N/A     general programme: new          2,806       2,806
    1       System/RFID
            Replacement of Borehamwood Library
    1       - see CSFYouth capital programme
    1       Replacement of Oakmere Library,         Not known     Pre G1    general programme: new            650            250            400
            Potters Bar
                                                                            capital receipt                 1,100                           900        200
    1       Disability Discrimination Act             Apr-09       N/A      general programme: new             50          50
    2       Harpenden (worst case scenario)                       Pre G1    general programme: new          2,283       1,000               133      1,150
                                                                            capital receipt                   750                                      750
    3       Bushey                                    Apr-09      Pre G1    general programme: new            346            346
                                                                            contributions from third           46             46
                                                                            parties
    3       Ware (worst case scenario)              Not known     Pre G1    general programme: new          1,626       1,179               447
                                                                            capital receipt                   400                           373            27
                                                                            contributions from third           19             19
                                                                            parties
Service Total                                                                                              11,500       5,844          2,253         2,127




                                                                            137
                                                                                                                                       APPENDIX 14 (continued)
                                              Capital Programme - Preferred Cashflows on all Major Schemes
Service      Scheme Description and Location           Start Date    Gateway             Funding Source           Total     2009/10        2010/11        2011/12
Priority
 Band                                                                                                             £’000      £’000          £’000          £’000

COMMUNITY SAFETY - FIRE & RESCUE
    1      Watford Fire Station                         2007/08                4    capital receipt                6,500        2,250
    2      RTC Equipment                                2008/09                     general programme: new          326           188            138
    3      Stevenage Fire Station                       2008/09                1    general programme: new         6,300        1,950          3,650          700
Service Total                                                                                                     13,126        4,388          3,788          700

COMMUNITY SAFETY - OTHER
                                                                        pre
    1       Modernisation of Archive Space               Jun-09                     general programme: new            67        67
                                                                     gateway 1
Service Total                                                                                                         67        67              -              -
RESOURCES (CORPORATE SERVICES)
           To bring the range of residential
           dwellings, group homes and hostels,
           occupied by several categories of                           Pre
   1                                                     08/09                     general programme: new             627            402            225             -
           tenant, up to the Decent Housing                         gateway 1
           Standards as set by government and to
           be completed by the end of 2010.
           Library Service to put in place a network
                                                                    Agreed by
           of walk-in face to face customer access
                                                                    Cabinet see
   2       points for all county council services.       08/09                     general programme: new             190             95              -             -
                                                                    report dated
           The costs include £45k of project &
                                                                    22/09/08
           marketing expenses
           Feasibility work for the re-location of
   2       ESC from New Barnfield (see bus               09/10                     general programme: new                                             -             -
           case)                                                                                                      100            100
           Salix Carbon Management Strategy to                                     general programme: new           1,077            543            534             -
           reduce carbon footprint from HCC                                        capital grant                      458            458              -             -
                                                                       Pre
   3       buildings and to meet the obligations         09/10
                                                                    gateway 1
           imposed through the Climate Change                                      direct revenue contributions     2,033              -            289        800
           Bill.



                                                                                   138
                                                                                                                               APPENDIX 14 (continued)
                                             Capital Programme - Preferred Cashflows on all Major Schemes
Service     Scheme Description and Location        Start Date   Gateway           Funding Source          Total     2009/10        2010/11        2011/12
Priority
 Band                                                                                                     £’000      £’000          £’000          £’000
   3       Herts Property top up                     09/10                  general programme: new          4,875       4,875                 -             -
           Electronic Documents and Records
   4                                                 08/09                  general programme: existing     2,560            860            600             -
           Management System
           Extending the implementation of
   5       Employee Self Service/Manager Self        asap                   general programme: new          1,220       1,220                 -             -
           Service
   6       Whole Estate Review                       07/08                  general programme: existing     1,000            325              -             -
                                                                   Pre
   6       CCTV Installation County Hall             Apr-09                 general programme: new            300            300              -             -
                                                                gateway 1
           Replacement Heating Distribution to                     Pre
   7                                                 asap                   general programme: new          3,000       1,500          1,500                -
           County Hall main block                               gateway 1
Service Total                                                                                              17,440      10,678          3,148           800

ENVIRONMENT
       EXISTING PROGRAMME
       Structural Maintenance - Non Principal
                                                                            general programme: existing
  1A   Roads                                        Ongoing                                                56,440      14,110         14,110        14,110
       Structural Maintenance - Principal
                                                                            general programme: existing
  1A   Roads                                        Ongoing                                                28,600       7,150          7,150         7,150
       Former LTP - Maintenance - Roads &
                                                                            general programme: existing
  1A   Footways                                     Ongoing                                                29,920       7,480          7,480         7,480
       Next Generation Highway Management
                                                                            general programme: existing
  1A   System                                       Ongoing                                                   360            105
       Rights of Way - Management of the
                                                                            general programme: existing
  1A   Network                                      Ongoing                                                 1,400         350            350           350
  1A   Road Safety                                  Ongoing                 capital grant                     965         486            479           TBA
  1B   Bridge Parapet Upgrading                     Ongoing                 general programme: existing     2,000         500            500           500
  1B   Bridge Parapet Upgrading                     Ongoing                 capital grant                   1,646         746            900
  1B   Former LTP - Maintenance - Bridges           Ongoing                 general programme: existing     3,760         940            940           940
  1B   LTP - Maintenance - Bridges                  Ongoing                 capital grant                   2,190         710          1,480           TBA
  1A   LTP - Baldock Bypass                         Ongoing                 capital grant                   1,546       1,300            246           TBA



                                                                            139
                                                                                                                               APPENDIX 14 (continued)
                                              Capital Programme - Preferred Cashflows on all Major Schemes
Service      Scheme Description and Location         Start Date   Gateway         Funding Source          Total     2009/10        2010/11        2011/12
Priority
 Band                                                                                                     £’000      £’000          £’000          £’000
1A to 3B   LTP - Integrated Transport *              Ongoing                general programme: existing    18,080       4,560          4,560         4,560
1A to 3B   LTP - Integrated Transport *              Ongoing                capital grant                   7,761       3,870          3,891          TBA
                                                                            contributions from third
1A to 3B   Section 106 Contributions                 Ongoing                parties                         1,747       1,747           TBA            TBA
                                                                            contributions from third
1A to 3B   Other Third party / Grant Contributions   Ongoing                parties                           755            755        TBA            TBA
  3A       Street Lighting Refurbishment             Ongoing                general programme: existing     2,080            520        520            520
           Street Lighting - Emergency Column
                                                                            general programme: existing
   1A      Replacement                               Ongoing                                                3,680            920            920        920
   2B      Work to Secure LTP Funding                Ongoing                general programme: existing       480            120            120        120
   2A      Road Marking Refurbishment                Ongoing                general programme: existing     1,400            350            350        350
           Accessibility / Disabled Crossing
                                                                            general programme: existing
   1B      Facilities                                Ongoing                                                1,640         410               410        410
   2A      Safety at Road/Rail Interfaces            Ongoing                general programme: existing       640         160               160        160
   2B      Waste Capital Infrastructure Grant        Ongoing                capital grant                   2,777       2,029               748        TBA
           Supplement to Waste Capital
                                                                            general programme: existing
   2B      Infrastructure Grant                      Ongoing                                                3,000                      3,000

           NEW BIDS
                                                                            general programme:
   2A      Traffic Signal Refurbishment                ASAP                 additional funding              4,000     1,000          1,000           1,000
   1B      Croxley Rail Link                           ASAP                 capital grant                 118,700      420            800              800
                                                                            general programme:
   1B      Croxley Rail Link                           ASAP                 additional funding             25,130      570           1,400            800
                                                                            contributions from third
   1B     Croxley Rail Link                            ASAP                 parties                         1,470
          Preparation of Transport Schemes                                  general programme:
  2B      emerging from HIIS                           ASAP                 additional funding              3,800      950            950             950
          LTP Integrated Transport to Meet                                  general programme:
1A to 3B Targets                                       ASAP                 additional funding              5,762      843           4,919
Service Total                                                                                             331,729    53,101         57,383          41,120
Total Capital bids for all services                                                                       597,273   155,919        138,574          47,807



                                                                            140
                                                                                                  APPENDIX 14 (continued)
                                                      2009/10 Annual Provisions


                             Scheme Description and Location                      2009/10   2010/11    2011/12
                                                                                    £’000     £’000      £’000
ADULT CARE SERVICES
Planned Maintenance                                                                  578       578        578
Minor Works                                                                          113       113        113
Minor Adaptations                                                                    288       288        288

Total Annual Provisions                                                              979       979        979

CSF EDUCATION (SCHOOLS)
Minor works Improvements:
Bernard’s Heath Infants’                                                             100
Hatfield Girls School/St Phillip Howard                                               25
Graveley                                                                              30
Longlands                                                                            100
Tudor                                                                                100
Chorleywood                                                                          100
Cuffley Camp                                                                          25
Cavendish                                                                            100
Colney Heath                                                                         100
Haywood Grove                                                                         90
Maple Grove                                                                           29
Youth Service                                                                        100
Other Minor Works                                                                     52
Unallocated                                                                                    951        951
Minor works Improvements Total                                                       951       951        951



                                                               141
                                                                                                 APPENDIX 14 (continued)
                                                     2009/10 Annual Provisions
                            Scheme Description and Location                      2009/10   2010/11    2011/12

                                                                                   £'000     £'000      £'000
Structural Repairs and Maintenance:
Structural Repairs and Maintenance                                               13,995     13,995     13,995
Mobile Classrooms                                                                   473        473        473
Health and Safety                                                                   345        345        345
Feasiblity studies                                                                   25         25         25
School Meals Equipment                                                              665        665        665
Music service instrument purchase                                                    25         25         25
Structural Repairs and Maintenance Total                                         15,528     15,528     15,528
Total Annual Provisions                                                          16,479     16,479     16,479
CSF (LIBRARIES, HERITAGE & ARTS)
Planned Repairs and Maintenance                                                     162       162        162
Library Automation                                                                  205       205        205
Public PC Provision                                                                 184       184        184
Libraries Security, Risk Management & Health and Safety                              13        13         13
Minor Refurbishments to a number of Libraries and HALS                               85        85         85
Total Annual Provisions                                                             649       649        649
COMMUNITY SAFETY - Fire and Rescue
Repairs & Maintenance                                                               221       221        221
IT Equipment                                                                         29        29         29
Operational Equipment                                                                25        25         25
IT Equipment for Cpmmand & Control                                                   66        66         66
IT Upgrades                                                                          60        60         60
Essential Operational Equipment                                                      71        71         71
Total Annual Provisions                                                             472       472        472




                                                              142
                                                                                                          APPENDIX 14 (continued)
                                                      2009/10 Annual Provisions
                             Scheme Description and Location                              2009/10   2010/11    2011/12

                                                                                            £'000     £'000      £'000

COMMUNITY SAFETY - Other
Trading Standards                                                                             27        27         27
Registration                                                                                  21        21         21
Total Annual Provisions                                                                       48        48         48

RESOURCES (CORPORATE SERVICES)
Land Purchase, Feasibilty Studies, rationalisation Schemes & Dev Opp Fund                   1,150     1,150      1,150

 Energy Conservation                                                                          236       236        236
Civic Buildings                                                                             1,136     1,136      1,136
Civic Buildings Health & Safety                                                               150       150        150
Vehicle Purchasing                                                                          3,273     3,273      3,273
PC Purchasing                                                                               1,234     1,234      1,234
ICT Core network infrastructure, which underpins and supports the growing demands being       429       429        429
placed on the data network to meet Service Needs
Total Annual Provisions                                                                     7,608     7,608      7,608

ENVIRONMENT
Sustainable Transport Policies (note 1)                                                     1,640     1,640      1,640
Waste Management (note 2)                                                                     151       151        151
Environmental Management                                                                       89        89         89
Total Annual Provisions                                                                     1,880     1,880      1,880




                                                                  143
                                                                                                                     APPENDIX 14 (continued)
                                                         2009/10 Annual Provisions


                            Scheme Description and Location                                      2009/10      2010/11      2011/12
                                                                                                   £'000        £'000        £'000

Notes:
1. Contributions towards larger schemes that are part financed through the LTP. Whilst individual projects are often over £50,000,
funding from this budget to each project are not.
2. This budget is usually used to fund minor improvements of less than £50,000 each at the county council's 19 Household Waste
Recycling Centres. However, it is occasionally used to contribute towards more significant developments as and when opportunities
arise.

TOTAL ANNUAL PROVISIONS                                                                           28,115       28,115       28,115

Spend to release Receipts                                                                           3,800        1,300        1,300


Total Bids, Annual Provisions and spend to release receipts                                      187,834      167,989       77,222




                                                                    144
                                                                      APPENDIX 15

                 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
                                                      2009           2010
                                                      £000           £000

1.    School Reserves                                    42,000        40,000
2.    Self Insurance                                      6,780         6,780
3.    NNDR revaluation reserve                            2,000         2,000
4.    Capital Payback Reserve                             7,442         7,442
5.    Quantum Care rent abatement                         1,833
6.    Education Traded Services                             825            825
7.    Herts Business Services Repairs and                   111            111
      Renewals
8.    Hadham Towers Restoration                             413            368
9.    Statutory Planning Authority Inquiries                876            126
10.   Central Services Repairs & Renewals                     0              0
11.   Energy / Water Conservation                           150            150
12.   Highways Management System                            200              0
      Development

                                                        ______         ______
      Total                                              62,630         59,642



1.    School Reserves
      This figure is an aggregation of schools' balances, including those held
      by consortia of schools. These balances have been accumulated from
      schools' delegated budgets and associated government grants. The
      DCSF requires all authorities to operate a school balances control
      mechanism. Balances above a normal maximum level, and which cannot
      be justified as being set aside specifically for planned projects or other
      commitments, have been clawed back.

      Schools' balances at 31st March 2008 totalled £44m. It is estimated that
      there will be a pattern of slight reductions in schools' balances in both
      2008/09 and 2009/10."




                                      145
                                                     APPENDIX 15 (continued)

2.   Self Insurance
     A reserve to protect the Council in the event of uninsured losses arising
     from both Employers’ and Public liabilities and also losses to Council
     property incurred as a result of any peril, including storm or flood. The
     £6.78 million balance on this reserve is considered prudent based on
     information and advice provided by the Council’s external advisers in
     relation to developments in local authority insurance exposure.

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
     The Council’s leases to Quantum Care require payment of rent by
     Quantum Care for the use of the residential homes and, until April 2010
     payment by the Council of a rent abatement having regard to the capital
     expenditure made by Quantum Care on capital improvements to the
     councils assets. In total, until April 2010 the total of the rents payable and
     the total of the rent abatements payable in each year are similar sums.
     The rents can vary at each 5th year rent review. The abatements can
     vary each quarter with the prevailing rate of interest. In some years total
     rents exceed total abatements, in others vice versa. This reserve exists
     to equalise the net flows over the period to 2010.

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.   Hertfordshire Business Services (HBS) Repairs and Renewals
     A reserve to cover the replacement and maintenance of equipment and the
     improvement of HBS buildings. The Central Services Repairs & Renewals
     reserve was merged into this reserve from 2008/09.

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.




                                      146
                                                   APPENDIX 15 (continued)

9.    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 following
      inquiries: West of Stevenage and East of England, Luton Airport,
      Stansted Airport and Radlett aerodrome.

10.   Central Services Repairs & Renewals
      This reserve was merged with HBS Repairs & Renewals reserve as
      Hertfordshire Reprographics is now part of HBS.

11.   Energy and Water Conservation
      This is to be applied to investment in energy and water saving measures.

12.   Highways Management System Development
      To finance the purchase, implementation and development work of the
      Highways Management system.




                                     147
148
                                                                 APPENDIX 16

                     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.

AREA BASED GRANT      The Area-Based Grant (ABG) is a general revenue
(ABG)                 grant made up of grants previously paid to local
                      authorities as specific grants. Local authorities are
                      free to use this funding as they see fit to support the
                      delivery of local and national priorities.

BASE BUDGET           The original budget 2008/09 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.




                              149
                                              APPENDIX 16 (continued)

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.

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 billing
                      authorities (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%.

DEDICATED SCHOOLS     A ring fenced grant introduced in 2006/07 to fund
GRANT (DSG)           school spending.

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.




                               150
                                             APPENDIX 16 (continued)

FLOORS               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. The grant increases of authorities who are
                     above the floor are scaled back by a fixed proportion to
                     help pay for the floor.

FORMULA GRANT        An individual authority’s Revenue Support Grant and
                     Redistributed Business Rates.

FOUR BLOCK MODEL     Introduced in 2006/07 to distribute formula grant to
                     local authorities. The model contains four blocks:
                     relative needs, resources, central allocation and
                     damping.

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.

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.




                             151
                                          APPENDIX 16 (continued)

ORIGINAL BUDGET   The original estimate cost of services for the financial
2008/09           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.

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.

RELATIVE NEEDS    A series of formulae used by the government to divide
FORMULA (RNF)     up resources according to councils’ relative needs and
                  circumstances.

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.




                           152
                                           APPENDIX 16 (continued)

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 October 2007 and the next one is due in 2009.

STANDSTILL BUDGET   The total budget that would be required to maintain
                    services at the previous year’s levels. These figures
                    include efficiency savings but are before changes are
                    made as a result of policy decisions.

SUPPORTED           Government support for local authority capital
BORROWING           investment delivered through on-going revenue
                    support (formula grant).

SUPPORTED CAPITAL   Government support for local authority capital
EXPENDITURE (SCE)   investment is delivered through a combination of
                    ongoing revenue support and capital grants.

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.




                            153

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:5
posted:11/25/2013
language:Latin
pages:153