Hammersmith Fulham Council Medium Term Financial Strategy MTFS

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					MTFS Model (approved February 2007)

Hammersmith & Fulham Council Medium Term Financial Strategy MTFS Model Background Documents
(approved February 2007)

MTFS Model (approved February 2007)
Appendix B Year 1 2007/08 £'000 Year 2 2008/09 £'000 Year 3 2009/10 £'000

2006/07 Council Budget RSG - Reversal of Prior Year Amending Report Add Back Use of Balances in 2006/07 2007/08 Net General Fund Base Budget Known Changes: Inflation Growth (C) Efficiencies (D)

176,558

0

0

-162 3,755 180,151

0 0 180,151

0 0 180,151

6,218 9,388 -14,434

12,136 13,733 -26,119

18,707 15,690 -33,810

Total Expenditure Use of General Balances Budget Requirement

181,323 -1,142 180,181

179,901 0 179,901

180,738 0 180,738

Formula Grant (RSG) ( Assumes 2.5% annual increase from 2008/09) 2006/07 Collection Fund Surplus Council Tax - 3% decrease per year Total Resources Budget Gap For information Further risks (F)

110,578

113,342

116,176

986 68,617 180,181 0

0 66,558 179,901 0

0 64,562 180,738 0

8,720

11,902

13,986

MTFS Model (approved February 2007)

Appendix C GROWTH Department Title Description 2007/08 £'000 Environment Environment Waste Disposal Building Technical Services Increased contractual costs of waste disposal and increases in landfill tax. Increase in energy prices. 353 100 2008/09 £'000 709 300 2009/10 £'000 1,065 300

Environment

Parking

Implement a smart match day only parking policy cost effectively. Cost to be met by counter parking measures

0

0

0

Environment

Total

453

1,009

1,365

Children's Services

Leisure Play Service Total

The running costs for the Janet Adegoke Pool Continuation of concessionary rates

-31 20 -11

-33 20 -13

-33 20 -13

Community Services Community Services

Older People Services

Open new day service

275

275

275

Adult Social Care

Price and Volume Pressures on Adult Social Care Placements

500

1,000

1,500

MTFS Model (approved February 2007)

Community Services Community Services Community Services Community Services Community Services Community Services Community Services Community Services Customer First Customer First Customer First

Cross Cutting

Transport for London Price Freedom Pass increases above inflation

190

440

700

Cross Cutting

Expansion of direct payments

50

100

150

Cross Cutting

Transfers from specific grant funding (£225m nationally)

300

300

300

Learning Disabilities

Increase in demand for learning disability placements and care packages

750

1,350

1,950

Safer Communities

Zero tolerance policing (to be met from earmarked reserve for 2 year period)

0

0

Safer Communities

CCTV - Operational improvements.

159

159

159

Housing

Creation of Home Ownership Office

150

150

150

Total

2,374

3,774

5,184

Core Teams Core Teams Cross-Cutting

Budget shortfall for Smarter Borough Service Budget Shortfall for IT Applications and Core Charges Restructure of Customer First

100 175 245

100 175 245

100 175 245

MTFS Model (approved February 2007)

Customer First Customer First Customer First

Housing Benefit Housing Benefit Total Customer Services (Revenues)

Housing Benefit Subsidy shortfall Reduction in Housing Benefit Administration Grant

1,500 246 2,266

1,500 246 2,266

1,500 246 2,266

Finance

Court Costs

125

125

125

Finance

Total

125

125

125

Assistant Chief Executive

Policy & Partnerships

Subcriptions

WLA IT and E-Government Group and London Connects Subscriptions

45

45

45

Policy & Partnerships Organisation Development Assistant Chief Executive

Councillor Services

Councillor Briefings after May Elections

-15

-15

-15

Local Elections

Local Elections and Implementing the new Electoral Administration Bill

-190

-190

-190

Total

-160

-160

-160

MTFS Model (approved February 2007)
Corporate Insurance Office Accommodation Pension Fund Capitalisation Single Status Local Authority Business Growth Incentive Scheme Corporate Total Grand Total Increased premium costs due to increased incidence of claims Rental and NNDR increases Additional Contributions arising from the April 2004 actuarial valuation Use of Capitalisation Upgrade of relevant posts No income now anticipated from this scheme. Growth is required to fund the sum assumed within the 2006/7 base budget. 41 700 2,800 0 400 82 850 3,700 1,300 400 123 1,000 3,700 1,300 400

400

400

400

4,341 9,388

6,732 13,733

6,923 15,690

MTFS Model (approved February 2007)
Appendix D EFFICIENCIES Department Environment Title Gershon Efficiencies Street Cleansing and Refuse Collection Service review and productivity improvements before tendering figures net of potential £500,000 client side costs (prudent estimate - may be less for client side) Procurement, securing external contracts and other efficiencies Procurement, securing external contracts and other efficiencies Reduction in Energy Consumption -500 -500 -500 Description 2007/08 £'000 2008/09 £'000 2009/10 £'000

Borough Construction Borough Highways Building Technical Services Depots

-249 -169 -50

-498 -337 -200

-746 -506 -200

Remodel Stowe Road and Glenthorne Road savings can include reduced accommodation costs arising from transferring staff from released buildings. Potential disposal to be included in Asset strategy Service review including prospect of reducing revenue costs by increasing capital investment and maximising Section 106 agreements. Potential efficiency gains following the initial investments to review the most cost effective and efficient means for maintaining highway assets.

-150

-150

-150

Grounds Maintenance

0

-200

-200

Highways & Engineering

-20

-20

-20

MTFS Model (approved February 2007)

Highways & Engineering

Review of contract procurement esp. additional measures in respect of packaging services together smartly, maintaining a small responsive in-house contractor and including consideration of shared services Efficiency gains for Attendants including possibility to Tender parking control services following NCP expert input. Back office efficiency gains from the implementation of new parking systems Savings delivered by investment of Planning Delivery Grant or from Best Value Review Vehicle procurement, maintenance and usage (numbers) Home and mobile working. Review of space standards, hot desking, shared buildings. Cambridge House netted off. Efficiency programme

0

-200

-200

Parking

-100

-200

-200

Parking Planning

-200

-400

-400

0

-150

-150

Transport Accommodation Western Riverside Waste Authority Other Efficiencies Building Technical Services Corporate Property Services

-100 -150 -270

-200 -650 -270

-200 -650 -270

Staff re-organisation

-50

-100

-150

Merger/transfer of roles to avoid duplication

-38

-77

-115

MTFS Model (approved February 2007)
Director's Office Finance Fulham Palace Highways and Engineering North End Market Planning Public Protection and Safety Resources Increased Income Highways & Engineering Trade Refuse Fees and Charges Fees and Charges Additional income mainly from fixed penalty notices and permit fees from implementing the traffic management orders - offset by start up costs of the new permitting system Increase in trade refuse agreements New Income Opportunities - Fireworks Display New Income Opportunities - Parks and Cemeteries -230 -230 -230 Reduction in project budget Staffing re-organisation following merger NNDR, insurance and other efficiencies Staff and other efficiencies -13 -19 -8 -64 -26 -39 -15 -128 -40 -58 -23 -193

Review of arrangements Review of charges, on-line applications and completion of Local Development Framework Increased income and review of building control service

-50 -75

-50 -150

-50 -224

-101

-203

-304

Staff and other efficiencies

-27

-55

-82

-50 -14 -50

-50 -14 -50

-50 -14 -50

MTFS Model (approved February 2007)
Fees and Charges Environment Children's Services Total Gershon Efficiencies Cross-cutting Libraries, Adult Education and Archives Preventive, assessment and outreach Resources Transport Other Efficiencies Direct Service Provision Education Libraries, Adult Education and Archives Procurement efficiencies -750 -1,100 -1,100 New Income Opportunities - Public Advertising -436 -3,183 -436 -5,598 -436 -6,411

Spend to save for libraries

-160

-160

-160

Realignment of teams

0

-50

-100

Staff efficiencies and grant reduction Procurement and joint work with Ealing

-250 -450

-300 -525

-300 -550

Productivity improvements and realignment of salaries for social workers Cleaning and Catering (MEG) Reduction of archives to free up accommodation and elimination of subsidy for adult education

-150 -200

-300 -400

-300 -400

-125

-125

-125

MTFS Model (approved February 2007)
Libraries, Adult Education and Archives

Review long-term strategy for libraries

0

-200

-200

Play and Youth Service Re-alignment of management responsibilities and deletion of posts Play and Youth Service Lower subsidy for the play service School Improvement and Achievement Strategy , Policy and Information Traded Services Revised management structure

-117 -100 -50

-117 -200 -75

-117 -200 -100

Staff saving in management information systems Increased services in partnership with other boroughs

-45 -15

-75 -30

-100 -45

Initiatives rising after Member Challenge Cross-Cutting Cross-Cutting Merge functions with K&C such as the Haven Respite Centre Increase savings target from merger of Education and Children's Social Services from 3.3% to 10% Delete policy and communications posts and any unnecessary support functions not central to service delivery In addition to Passenger Transport Review above, explore tender opportunities Non-renewal of Cambridge House Lease -100 -45 -100 -45 -100 -45

Cross-Cutting

-60

-60

-60

Transport Assets

-50 -350

-50 -350

-50 -350

MTFS Model (approved February 2007)
Vulnerable Children Savings from Implementation of the new Children's Information System Resolve issue of 25 'children' who are 18 year old or above and who do not have leave to remain -223 -223 -223

Asylum Children's Services Community Services

-60

-150

-150

Total

-3,300

-4,635

-4,775

Gershon Efficiencies Collaborative Procurement Initiatives with other West London Boroughs Learning Disability Service - Efficiencies in external day care ISCIS - Further savings following re-design of business processes

Adult Social Care Adult Social Care Cross-Cutting

-250 -50 -50

-500 -50 -50

-500 -50 -50

Other Efficiencies Adult Social Care Adult Social Care Adult Social Care Adult Social Care

Fair Access to Care Services - Review of Criteria Rationalisation of Strategy and Policy functions - including impact of CORVU Remodel Mental Health Daycare facilities Learning Disability Team - Minor Restructure and review of floating support

-250 -140 -250 -40

-500 -190 -530 -40

-500 -190 -530 -40

MTFS Model (approved February 2007)

Adult Social Care Adult Social Care Adult Social Care Adult Social Care Community Community Community Community Housing Housing Housing Housing Housing Housing

Review social work support against benchmark comparators Review of Information and Assessment Service Physical Disability team - minor re-organisation Independent Living Service at Sunberry Meals on Wheels - Efficiencies on rounds and additional income Restucturing and market testing of Home Care Service Review of joint equipment Community Support Centres - Review usage Housing support and advice - minor re-organisation Root & branch review of Private Sector Housing services Occupational Therapy Service - efficiencies through smarter processes Housing Register - efficiencies through smarter processes Temporary Accommodation - Improved income performance and minor re-organisation More efficient use of in-house storage

-65 -60 -88 -25 -50 -525 -50 0 -43 -350 -80 -50 -505 -30

-65 -60 -88 -25 -100 -900 -50 -250 -43 -350 -150 -100 -505 -30

-65 -60 -88 -25 -100 -900 -50 -500 -43 -350 -150 -100 -505 -30

MTFS Model (approved February 2007)
Regeneration Resources Resources Resources Safer Communities Voluntary Sector Income Efficiencies Fees and Charges Community Services Customer First Total Gershon Efficiencies Cross-Cutting Cross-Cutting Cross-Cutting Contact Centre Hammerprint Extension of contact centre, face to face strategy and increased self-service Implementation of Residents Direct Strategy Customer Access Strategy Productivity and multi-skilling Vacancy management and efficiency measures -250 0 0 -24 -36 -500 -250 0 -47 -72 -500 -500 -2,000 -71 -108 Improved collection and contributions for practical support -250 -3,776 -250 -5,531 -250 -5,931 Regeneration - Reorganisation of service Review of Facilities Management functions More efficient use of staff advertising budget Review of departmental finance function Review and market test Security functions More effective commissioning and more efficient use of property -350 -35 -30 -40 -100 -20 -350 -35 -30 -40 -150 -100 -450 -35 -30 -40 -200 -100

MTFS Model (approved February 2007)

Mail Services Other Efficiencies Cross-Cutting Facilities Management Lettings Registration Services Total Gershon Efficiencies

Staff review and fleet management efficiencies Core Teams Outsourcing of Hammerprint Efficiencies and income generation Agency and other cost reductions, increased income.

-12 -19 -250 -6 -14 -611

-23 -38 -250 -12 -28 -1,220

-35 -57 -250 -18 -42 -3,581

Customer First Assistant Chief Executive Organisation Development Policy and Partnerships

Legal Services

Rationalisation of Private Sector Leasing work Rationalisation of Councillor Services, Policy Team and Communications - Phase 1

-35

-35

-35

Cross-cutting Other Efficiencies

-623

-623

-623

Organisation Development Organisation Development Organisation Development

Electoral Services

Postage/stationery budgets

-10

-20

-30

Human Resources

Review of Trade Union funding arrangements Review of processes, consideration of shared services, recruitment costs

-50

-100

-100

Human Resources

-250

-500

-500

MTFS Model (approved February 2007)
Organisation Development Organisation Development Policy and Partnerships Assistant Chief Executive Finance Human Resources Review of child care subsidy provisions Reduced cost, usage and provision of legal services including through improvements in departmental procedures and through tendering/select lists Review usage -200 -200 -200

Legal Services

-100

-200

-200

Irish Centre

-100

-100

-100

Total Gershon Efficiencies Council Tax and Benefits Corporate Finance Customer Services Financial Services IT Strategy and Services Service reconfiguration Restructure Review of Revenues service Shared services and efficiency review Joint Venture Company contract savings

-1,368

-1,778

-1,788

-250 -21 -36 0 -120

-500 -43 -72 -400 -300

-500 -64 -108 -400 -300

Finance Corporate

Total Gershon Efficiencies E-Procurement

-427

-1,315

-1,372

On-going savings

-500

-1,000

-1,000

MTFS Model (approved February 2007)

Finance Human Resources Capital Debt Reduction Other Efficiencies Debt Restructuring

Staff efficiencies from new General Ledger system Productivity improvements Debt Reduction Strategy

0 -680 -480

-200 -1,500 -1,550

-200 -1,500 -2,300

Debt Restructuring Further productivity and other efficiencies from outsourcing and new ways of working

-109

-217

-326

Cross-Cutting Income Efficiencies Fees and Charges Corporate Total

0

-825

-3,876

New income opportunities

0 -1,769

-750 -6,042 -26,119

-750 -9,952 -33,810

Grand Total

-14,434

MTFS Model (approved February 2007)

Appendix F RISKS Title Description 2007/08 £'000 2008/09 £'000 2009/10 £'000

ITSD

Potential increase in re-licensing costs if Microsoft change the way they charge for new upgrades Increase in numbers of 18+ UASC eligible for Leaving Care Support (subject to grant negotiations) Action on lobbying Home Office on UASL costs currently being taken, may not be as successful as expected. Previous MTFS savings in respect of EDM and the Benefit Fraud Inspectorate recommendations have not been achieved Unable to contain expenditure within budget Road condition - reduction in TfL funding for Principal Road Maintenance. Average allocation each year £900K. White City Collaborative Care Centre Additional Direct Payment numbers. Increased demand for Services following Charging review.

300

300

300

Children's Services

250

250

250

Children's Services

100

100

100

Benefits (Admin) Contaminated Land

400 40

400 40

400 40

Transport for London Community Services Community Services Community Services

0 150 500 300

200 150 1,000 300

200 150 1,000 0

MTFS Model (approved February 2007)

Community Services Community Services Community Services Fostering Allowance

Welfare Bill - Impact of housing benefit changes on homelessness income. Increasing numbers of people with no recourse to public funds. Above forecast increase in Learning disability placements & packages Introduction of national minimum rates

700 150 150 250

700 150 450 250

700 150 600 250

Planning

Planning Delivery Grant reduction

400

400

400

Parking Parking Environment Corporate Corporate

Parking Income loss (or increase) Differential Charging for PCNs Delays in Traffic Management Regulations Pay Award at 3% rather than 2.5% 1.25% rather than 2.5% increase in formula grant

2,500 700 230 800 0

2,500 700 230 1,600 1,382

2,500 700 230 2,400 2,816

Environment

Land charges income only to cover expenditure

800

800

800

Grand Total

8,720

11,902

13,986

MTFS Model (approved February 2007)