Docstoc

Appendix A - Solihull Council - Solihull Homepage

Document Sample
Appendix A - Solihull Council - Solihull Homepage Powered By Docstoc
					Budget Strategy 2008/09 to 2010/11 - Cabinet Decision Session 17th December 2007                                                                                                                 APPENDIX A
Cabinet Portfolio for Resources
                                                          2008 / 09     2009 / 10      2010 / 11
Proposal                 Proposal Title                     £000          £000           £000                              Description                                                  Impact
            Annual Portfolio Savings Target                     1,200         1,200          1,200 Strategic Services element
            Cumulative Portfolio Savings Target                 1,200         2,400          3,600


            Efficiency Savings - Options / proposals to provide the same or better service for less money
    1       Revenues and Benefits - Impact of ECM              85             85              85 Target savings of 5 posts effective from 1/4/08. This saving is Will not impact on service
                                                                                                  dependent upon ECM issues being resolved by 31/12/07

    2       Treasury Management rescheduling of                  376           376             376 Proactive management of Council debt, through re-                   Will not impact on service
            debt                                                                                   negotiation of contracts, to take advantage of lower long term
                                                                                                   interest rates has led to savings of £0.5m of which £0.376m
                                                                                                   will be general fund savings.
    3       Salary saving from deletion of a vacant               10            10              10 No expected impact on current staff.                                Will not impact on service
            Modern Apprentice post (Legal)
    4       Land Title Registrations                               7              7              7 Streamlining the registration process. Saving of budget in          Will not impact on service
                                                                                                   Facilities and Asset Management. All land titles being
                                                                                                   registered 2007/08 therefore cost of investigation work
                                                                                                   becomes £7.50 per title (currently £30/per title)
    5       Salary saving from the deletion of 1 filled           28            28              28 The full year saving for deleting the post is £28K net of the       Not expected to have Customer impact.
            post (Civic Services)                                                                  Severance Fund deduction.                                           However Civic Services will require
                                                                                                                                                                       restructure.
    6       Salary saving from the deletion of                   126           126             126 Directorate Service areas require re-mapping to other               Will not impact on service
            vacant post of Customer Services                                                       Directorates.
            Director
    7       Transfer remaining Members on ISDN                    10            10              10                                                                     Will not impact on service
            lines to Broadband
    8       Savings from additional use of Voice                   5            10              15 Wider use of Internet provision for telephony services.             Will not impact on service
            Over Internet Protocol (VOIP) for                                                      Savings incremental as current licences expire. Conservative
            telephony services                                                                     estimate of saving.
    9       Freezing of vacancy in Document                       20            20              20 Post established as part of IT restructure. However managers        No Customer Impact.
            Support (ICT)                                                                          have improved their own knowledge of document support
                                                                                                   and the service could now manage without the post. May
                                                                                                   impact on delivery of efficiencies therefore risk shown as
                                                                                                   Amber.
   10       Deletion of provision of Pre-Employment               13            13              13 Some risk in deletion of service. However, checks do not            Further investigative work required to
            checks provided through Occupational                                                   provide us with much information. Due to nature of some             consider what, if any, impact this
            Health.                                                                                roles we may still need referral.                                   proposal has on the new ill-health
                                                                                                                                                                       retirement rules.
   11       Deletion of Paper Payslip Production                   2              9              9 This proposal forms part of the introduction of self service.       Will not impact on service
                                                                                                   The cost savings relate to stationery and operational costs
                                                                                                   associated with printing and sending paper payslips. With the
                                                                                                   introduction of on-line payslips through self service, there will
                                                                                                   be no need to generate paper payslips on mass.
                                                                                                   Year 1 savings are part-year whilst Yr 2&3 are full year
                                                                                                   savings.




  Date: 3/7/2011                                                                                        Page 1 of 7                                                                      41c53f12-c2b0-4eaa-9cb2-48cf076b0db8.xls
                                                        2008 / 09      2009 / 10      2010 / 11
Proposal                  Proposal Title                  £000           £000           £000                                 Description                                                Impact
   12       New cost structure for provision of HRE             110            110            110 Re-costing of service provision to schools to implement full       Potential risk of schools opting out from
            services to schools                                                                    recovery of costs (+36%). Further, there may be opportunity       year 2.
                                                                                                   to achieve additional income through the purchasing of
                                                                                                   additional services (buy as you need), however, this is difficult
                                                                                                   to estimate. Year 1 ranked as Green - would take 6-12
                                                                                                   months for schools, if dissatisfied with increase to re-
                                                                                                   negotiate provision.
   13       Corporate Land and Property Minor                   18             18               18 Deletion of vacant Tenant Liaison post.                           Will not impact on service
            Restructure
   14       Savings from deletion of Procure 4                 176            176             176 Budget no longer required for Procure 4 but may be required        Will not impact on service
            support                                                                               to support on-going budget pressures.
   15       Centralised PC refresh (lease/thin client            0             35              35 Assumes centralised PC refresh budget                              Will not impact on service
            etc)                                                                                  Based on D32 / Centralised funding for PC with a 4yr
                                                                                                  Replacement Cycle
   16       Virtualisation (ICT)                                 0             10              20 Assumes refresh pressures budget given.                            Will not impact on service
                                                                                                  Savings on asset refresh
                                                                                                  (possible savings on electrical power yet to be determined,
                                                                                                  but not expected to be high)
                                                                                                  Not much to be saved on Maintenance - this has already
                                                                                                  been negotiated.
                                                                                                  There is the possibility of utilising existing servers and
                                                                                                  virtualising them-this could produce a ratio of 2:1
                                                                                                  Note savings achievable in year 1, but offset by cost of virtual
                                                                                                  licence.
   17       Move existing Broadband onto a                       0             10              10 Savings of around £10k per annum assuming that Business            Will not impact on service
            cheaper provider                                                                      BB could be obtained for £20 / month (currently paying £30)
                                                                                                  would take up to 12 months to move all lines over.
                             OR
                                                                                                   SMBC currently pays £34k / annum for some home
                                                                                                   broadband lines - needs further discussion.
            Staff to pay for their own broad band                                                  As a further option, employees could be required to pay
                                                                                                   home broadband and reclaim cost from Council -
                                                                                                   domestic broadband cheaper than business broadband.


   18       Decommission applications no longer                  0              4               4 Savings in licences and staff time, netted off some capital        Will not impact on service
            required                                                                              project costs for migration and decommissioning
   19       Service Desk - fix rate increase                     0              0              35 Savings in support from increasing 1st line fixes and              No impact on Customer.
                                                                                                  implementing more self service where possible. Will be a
                                                                                                  small cost to implement training.
   20       Revs & Bens: review flexible working                      TBA            TBA          Review of current flexible working and home working pilot -        No impact on Customer.
            pilot                                                                                 planned roll out in 08/09. Best Practice shows that this
                                                                                                  reduces average sickness days , increases efficiency and
                                                                                                  productivity, reduces staff turnover and reduces
                                                                                                  accommodation costs. (Savings expected in relation to 50%
                                                                                                  accommodation costs)



   21       Revenue & Benefits system exploitation                             20              20 To include plans to fully exploit the technology implemented       Improved Service for Customers.
            and service development plan - phase 3                                                since December 2004, develop and improve services to
                                                                                                  customers, exploit options for external funding and
                                                                                                  partnerships (eg extension of the Credit Union to south
                                                                                                  Solihull), Direct Debit and benefits take up.




  Date: 3/7/2011                                                                                        Page 2 of 7                                                                    41c53f12-c2b0-4eaa-9cb2-48cf076b0db8.xls
                                                       2008 / 09         2009 / 10         2010 / 11
Proposal                  Proposal Title                 £000              £000              £000                           Description                                                 Impact
   22       Bank tender                                            15                15       15 Indicative savings from first review of bank tender results.         Will not impact on service
                                                                                                 Report to be taken to this Decision Session.
   23       Citizen's Panel                                                  TBA            TBA Bring parts of the current Citizen's Panel process in-house.          Customer impact to be investigated.
                                                                                                 Would need to retain externalisation of telephone surveying
                                                                                                 but could look at the savings from designing surveys and data
                                                                                                 analysis in-house. Would require the Council to have the
                                                                                                 skills in-house.
   24       Restructure of Support Services within            105            105             105 Restructure of Support Services to reflect Commissioning             No Customer Impact.
            portfolio                                                                            Council model. Deletion of 3 posts, net of Severance Fund
                                                                                                 deduction.
            Other Savings - Opportunities, one-off or on-going, for generating savings (e.g. Income opportunities or 'spend to save')
    1       Increase legal charges                             29             29              29 External legal costs - increase of existing fees.                    Will not impact on service
    2       Council Tax Single Person Discount                   0            60             120 Proposal to phase the review. Actual level of additional             Will not impact on service
            Review                                                                               Council Tax debit raised needs further research - estimated
                                                                                                 savings net of project costs. The impact will be as a one off
                                                                                                 windfall as future years grant will be adjusted by Central
                                                                                                 Government to take account of fewer overall Single Person
                                                                                                 Discounts.
    3       Increase fees for Registration Service                            50              50 Fees and charges have not been reviewed for 6 years.                 Will not impact on service. Fee
                                                                                                 Realistic fees should be charged for ceremonies. A report to         increases to be in line with national
                                                                                                 the Governance Committee outlines the new fees and                   levels / other providers.
                                                                                                 charges without the further development of the service.
                                                                                                 £50,000 is the estimate of the increase in income related to
                                                                                                 increasing charges in line with other Local Authorities. An
                                                                                                 increase from April 08 would not yield much additional
                                                                                                 revenue as most marriages are already booked.
    4       Develop the Registration service as a                0 TBA           TBA             The Registration Service has potential to be developed as a          To provide improved Customer service
            business                                                                             business - a proposal for increasing the income by offering          and choice.
                                                                                                 different celebration packages is being developed. A
                                                                                                 proposed spend to save project is currently being prepared
                                                                                                 for members consideration. The proposal to grow the
                                                                                                 business includes updating the ceremony rooms and possibly
                                                                                                 the gardens as well as licensing other civic buildings and
                                                                                                 increasing the number of venues for customers. This has the
                                                                                                 potential to increase the income but depends on 'buy in' from
                                                                                                 members particularly around the use of the Civic Suite. Once
                                                                                                 the scope of the business opportunities are identified the
                                                                                                 increase in income can be calculated.

    5       Provision of HRE service to Schools                         TBA               TBA             Generating income from additional schools through effective No impact on existing customers.
            outside the Solihull Borough                                                                  marketing of service provision - saving will be net of
                                                                                                          additional cost of service provision.
    6       Increase in Magistrates Court Costs for                15                15                15 Generate additional income to help fund system exploitation. Will not impact on service
            Summons and Liability Order                                                                   Solihull costs are below other West Midlands Magistrates.
                                                                                                          Outcome will be improved services from system exploitation.
                                                                                                          Assuming charge increase from £30 to £35, proposal
                                                                                                          represents net saving - part of additional income to be utilised
                                                                                                          to exploit service improvements.
    7       Introduction of Commitment Accounting                       TBA               TBA             Commissioning using I-Procurement and Purchase cards to          No impact on Customer.
                                                                                                          prevent ordering with no budget - target to reduce
                                                                                                          accountancy monitoring and cost centre manager time.
                                                                                                          Business Case to be developed. This process will highlight
                                                                                                          future cashable efficiencies through identification and control
                                                                                                          of off-contract expenditure.




  Date: 3/7/2011                                                                                              Page 3 of 7                                                                41c53f12-c2b0-4eaa-9cb2-48cf076b0db8.xls
                                                      2008 / 09          2009 / 10         2010 / 11
Proposal                Proposal Title                  £000               £000              £000                                Description                                            Impact
    8       Review of Council Assets relative to                       TBA               TBA           Proposed review of assets and benefits via programme of           No impact on Customer.
            income generation.                                                                         scrutiny through OSMB.
    9       2007/08 Cash limit underspends                        50                 0               0 One-off saving achievable through part year effect of staff       Will not impact on service.
                                                                                                       vacancies during the current year.
    10      Market financial training programme                        TBA               TBA           Potential to market in-house developed training programme         No impact on existing customers.
                                                                                                       for budget holders and financial administrators to schools,
                                                                                                       SCH and other LAs.
    11      Monitoring review                                          TBA               TBA           A large proportion of the division's time is spent on financial   No impact on Customer.
                                                                                                       monitoring. We could review the Council wide process and try
                                                                                                       and utilise the systems available in a better way. This would
                                                                                                       be a "spend to save" project.
    12      Staff review                                               TBA               TBA           Review current staffing structure to ensure it meet's the         No impact on Customer.
                                                                                                       Council's needs.
Total Savings from Proposals                                1,200              1,351             1,461
Remaining Target to be achieved.                                0              1,049             2,139

            SUMMARY
            Efficiency Savings
                                                Red             0                  0                 0
                                              Amber           442                621               631
                                              Green           664                576               616
                                                            1,106              1,197             1,247
            Other Savings
                                                Red                0               0                 0
                                              Amber               15              75               135
                                              Green               79              79                79
                                                                  94             154               214
            Total Savings Proposals
                                                Red             0                  0                 0
                                              Amber           457                696               766
                                              Green           743                655               695
                                                            1,200              1,351             1,461




  Date: 3/7/2011                                                                                            Page 4 of 7                                                                    41c53f12-c2b0-4eaa-9cb2-48cf076b0db8.xls
                                                           2008 / 09         2009 / 10         2010 / 11
Proposal                   Proposal Title                    £000              £000              £000                                    Description                                                   Impact
            Cabinet Portfolio Key Service
            Pressures                                                                                                                                                                  (Impact of not funding the pressure)
    1       Deficit in collection of Procurement                    275               275                275 Deficit caused by non collection of savings made either being           No impact on Customers. Pressure
            Savings for 1FL                                                                                  ringfenced for expenditure on service area, or capital                  creates on-going deficit for 1FL budget
                                                                                                             expenditure or through corporate decisions on priorities.               funding.

    2       Contact Service Growth as a result of                   125               125                     The Solihull Connect Customer Contact Service is the single            If the Contact Centre establishment is
            Process Reviews                                                                                   point of contact for the Council's customers. It is created by         not run at capacity, performance will be
                                                                                                              moving customer contact processes from service areas to the            achieved below agreed standards. This
                                                                                                              contact service following a process review. The service is             impacts on Customer service and
                                                                                                              growing and so efficiencies at this point are difficult to identify.   satisfaction. Also impacts on back-office
                                                                                                               Efficiencies are identified through the challenge posed by the        performance.
                                                                                                              process reviews - this can be both in terms of simplified
                                                                                                              processes and staff once the contact centre is up to 60 seat
                                                                                                              capacity. Once up to capacity staff delivering customer
                                                                                                              service within the service that haven't been process reviewed
                                                                                                              will no longer be required. The Understanding Our Customer
                                                                                                              Project (UOC - skim lift and drop) will deliver the capacity to
                                                                                                              the contact centre within 2 years.

    3       Investigating statutory complaints about                   30                30                                                                            The impact is entirely dependent upon
                                                                                                           30 New duty on the Council. The £30K is an annual contribution
            councillors (borough and parish)                                                                                                                           the level of complaints which it is difficult
                                                                                                              to reserves since numbers of complaints cannot be predicted
                                                                                                                                                                       to forecast. The statutory duty will still
                                                                                                                                                                       need to be met. The implication may be
                                                                                                                                                                       that other work may have to be re-
                                                                                                                                                                       prioritised.
    4       RICS (Revenue Impact of Capital                          500               500               500 Capital investments have been made that have created      Failing ICT systems will impact on
            Spend) - One Front Line Project                     minimum           minimum           minimum revenue commitments. Mostly these are to replace equipment Customer and in-house service and
                                                                                                             (eg fileservers), pay licences and pay staff salaries     satisfaction

    5       Loss of Land Charges income from                        350               350                350 From 1/4/08 the Council will be unable to make a profit from            Council will be acting illegally if charges
            1/4/08                                                                                           the Land Charges function - the fees must reflect the cost of           are not reduced to reflect cost of service
                                                                                                             delivery. The income level within the budget has been set at            provision only.
                                                                                                             the forecast outturn level and therefore a reduction in actual
                                                                                                             income forces a budget pressure. At present there are no
                                                                                                             proposals to mitigate the pressure
    6       5% year on year reduction in Benefit                       67             120                120 3 years, year one 07/08                                          May impact on delivery of future years
            Administration Grant                                                                                                                                              savings
    7       Local Housing Allowance to be                 TBA               TBA               TBA             Start up funded in 07/08 but no additional funding for on going No impact if cost neutral, if not may have
            introduced 1/4/08                                                                                 costs. Final details are not available but the expectation is   small impact on delivery of future years
                                                                                                              that the ongoing effect will be cost neutral.                   savings.
    8       Employment Support Allowance to be                          0 TBA                 TBA             Start up funded in 08/09 but no additional funding for on going No impact if cost neutral, if not may have
            introduced 1/10/08                                                                                costs. Final details are not available but the expectation is   small impact on delivery of future years
                                                                                                              that the ongoing effect will be cost neutral.                   savings.
    9       Legislative changes to introduce a fee                          TBA               TBA             Charges estimated to be in the region of £45 per case - costs Funding gap could be in the region of
            for instructing Bailiffs to collect Council                                                       based on 2,860 cases per year. Fees reimbursed where debt £64k - if the current volume of cases
            Tax/Business Rates debts                                                                          paid in full. Action to avoid the use of bailiffs through       continues to be sent to bailiffs, this could
                                                                                                              alternative options where possible.                             not be met from within the existing budget




  Date: 3/7/2011                                                                                                   Page 5 of 7                                                                          41c53f12-c2b0-4eaa-9cb2-48cf076b0db8.xls
                                                      2008 / 09          2009 / 10          2010 / 11
Proposal                  Proposal Title                £000               £000               £000                                   Description                                              Impact
    10       City Regions funding                                 27                 30                 30 Local regional body - awaiting final notification of actual        No current budget allocation to fund this
                                                                                                           funding requirement (estimate based on projections for 2007-       corporate expenditure.
                                                                                                           08)
    11       Health & Safety resourcing / Risk                    24                 24                 24 Additional Band C post (to support operational delivery of         The Council will lose its 4 out of 4 score
             Management resourcing                                                                         health and safety work programme) and proposed re-                 for risk management which it has had
                                                                                                           evaluation of one existing post (to support corporate delivery     since 2005.
                                                                                                           of health and safety work programme).                              Furthermore, this could have a negative
                                                                                                           Currently resource is being diverted from within risk              impact on the corporate assessment.
                                                                                                           management to undertake elements of both operational and           Finally, without additional resource there
                                                                                                           corporate work. There is an increasing risk that this is           is limited capacity to support managers
                                                                                                           unsustainable and the Council will lose its 4 out of 4 score for   and this could result in less effective risk
                                                                                                           risk management.                                                   management arrangements generally.


    12       Additional Audit resource                            60                 60                 60 Additional Audit Team resource required both to counter fraud Non-delivery of the identified areas of
                                                                                                           and also to provide assistance to systems developments           required audit coverage (as approved by
                                                                                                                                                                            the Audit Committee)
    13       Prudential Borrowing to support                      90                 87                 84 Forecast exoenditure in 2008/09 is £1.5m and the grant           Disabled Facilities Grants are required to
             increased capital expenditure                                                                 application has been submitted on this basis (an increase of     enable qualifying disabled people to
             requirements in relation to Disabled                                                          50% on previous bids). Assuming the full grant is received       remain living in their own homes. The
             Facilities Grant.                                                                             from the Council's contribution (40% would be £600k. The         expenditure requirement is increasing
                                                                                                           pressure represents the Prudential Borrowing cost of this        and represents a key pressure for the
                                                                                                           requirement.                                                     Authority.
    14       Support to schools                     unknown            unknown            unknown          Schools are currently experiencing more financial difficulties   Exposes Council to potential financial
                                                                                                           and are less clear over financial restrictions. The Council had irregulatory and further Customer
                                                                                                           one challenge to its Accounts this year, the first to my working Challenge.
                                                                                                           knowledge, and this was a result of action taken by a school.
                                                                                                           The cost to the Council of this challenge has not yet been
                                                                                                           finalised but exceeds the cost of 1FTE.

    15       Financial Support Team                 unknown            unknown            unknown           There are increasingly a number of issues each year which         Risk of Council projects and decisions
                                                                                                            require more support than the division is structured to           being approved without proper financial
                                                                                                            provide. Whether this is for a new financial process, or to       assessment.
                                                                                                            review where something is not quite working effectively. The
                                                                                                            Council may prefer to identify financial support available for
                                                                                                            more detailed work.
Total                                                         1,548              1,601              1,473




   Date: 3/7/2011                                                                                                Page 6 of 7                                                                     41c53f12-c2b0-4eaa-9cb2-48cf076b0db8.xls
                                    2008 / 09   2009 / 10   2010 / 11
Proposal           Proposal Title     £000        £000        £000                    Description   Impact




  Date: 3/7/2011                                                        Page 7 of 7                 41c53f12-c2b0-4eaa-9cb2-48cf076b0db8.xls