Docstoc

att4153

Document Sample
att4153 Powered By Docstoc
					                                                                                     D
                     REPORT OF:              CORPORATE MANAGEMENT TEAM

                     AUTHOR:                 Paul McCallum
                     TELEPHONE:              01737 276503
                     E-MAIL:                 Paul.mccallum@reigate-banstead.gov.uk
                     TO:                     EXECUTIVE
                     DATE:                   6TH NOVEMBER 2008
                     EXECUTIVE MEMBER:       COUNCILLOR M.H.C. BUTTERY


AGENDA ITEM NO:      6                       KEY DECISION REQUIRED:          YES
WARD(S) AFFECTED:    ALL


SUBJECT:             PROVISIONAL BUDGET PROPOSAL 2009/10

RECOMMENDATIONS:
1.    That the following proposals be approved for consultation purposes within the
      2009/10 Annual Budget process:
      i.      Budget savings of £2,169,600      (Annex 1)
      ii.     Budget growth of £1,239,600       (Annex 2)
      iii.    The establishment of a new “Sale of Recyclates” reserve, as set out in
              paragraphs 11 to 15.
      iv.     Inclusion of a provisional investment income contingency of £250,000
              against resolution of the Icelandic Banking problem is endorsed, in
              accordance with paragraph 27 of the report.
      v.      No increase be applied to the Council’s Car Parking charges for 2009/10,
              as set out in paragraph 32 of the report.
      vi.     The revised capital programme as set out on Annex 3.
      vii.    The provisional increase of 5.0% in the Council Tax for 2009/10, as set
              out in paragraph 41 of the report.
      viii.   The transfer of the receipts from the Planning & Housing Delivery Grant
              (PHDG) and Local Public Service Agreement (LPSA) into the Corporate
              Plan Delivery Fund, as set out in paragraph 44 of the report.
2.    The revised financial projection for the 2010/11 and future financial years set
      out on Annex 4 be noted.
3.    The strategies listed at Annex 5 as the basis to address the budget gaps for
      2010/11 onwards be endorsed, and the Corporate Management Team bring
      more detailed proposals forward for consideration.
4.    The changes to the Council’s Human Resources Plans, as set out on Annex 6, in
      Part 2 of this agenda be approved.
5.    The contents of this report be approved for consultation with the Overview &
      Scrutiny Committee in accordance with the Policy Framework and Budget
      Procedure rules within the Constitution, and with the Business Community to
      comply with statutory requirements.

EXECUTIVE SUMMARY
This report sets out the provisional budget for 2009/10 for adoption by the Executive
before going out to formal consultation.




Executive has authority to determine recommendations 1-3 & 5, but recommendation 4
stands referred to Full Council.



STATUTORY POWERS
1.    The Local Government Act 1992 places a requirement on Councils to set the following
      year’s Council Tax Levels by 11th March each year. The Local Government Act 1972
      as part of proper financial management requires a Council to set the associated
      annual budget requirement. This report is part of that process.
2.    Section 65 of the Local Government Finance Act 1992 requires the Council to consult
      representatives of those subject to non-domestic rates in the Borough about its
      proposals for expenditure for each financial year.
3.    This report proposes changes in headcount. It should be noted that under the Local
      Authorities (Functions and Responsibilities) etc Regulations 2000, statutory powers
      related to employment issues cannot be exercised by the Executive. Full Council
      has delegated those functions to the Employment Committee. Therefore any formal
      contractual decisions in relation to these changes will rest with the Employment
      Committee.
4.    Article 4 of the Constitution requires the budget to be agreed by Full Council.
      However, under the Policy Framework and Budget Procedure Rules, the Executive
      can agree the principles for doing so for consultation purposes, with both the
      Overview & Scrutiny Committee and statutory consultees. A further report will be
      brought to the Executive following that consultation, with a final recommendation
      on the budget to be made to Full Council.

BACKGROUND
5.    The purpose of this report is to set out proposed changes to the Council’s budget in
      order to set a Council Tax for the 2009/10 financial year.
6.    The proposals set out within this report are designed to help the Council meet its
      Corporate Plan objectives, whilst achieving them within the constraints set by the
      Council’s Medium Term Financial Strategy (MTFS). Due to uncertainty over
      monies in Icelandic banks a provisional contingency sum is recommended.
7.    The budget proposals demonstrate the Council’s commitment to maintaining
      strong control over its finances and providing the Council Taxpayer with good
      value for money, whilst responding to the external pressures being placed upon it
      by increased legislative requirement and the current economic environment.
8.    The savings identified within the report come from a combination of previous
      initiatives bearing fruit (such as Refuse & Recycling) and the commitment to “right
      size” individual budgets, matching need and requirements in response to Member
      comments (such as Benefits and Property Services).
9.    The growth proposals reflect the need to ensure that the Council is in a position to
      cover its known liabilities, and respond to changes to the legislative and economic
      framework within which the Council operates.

SAVINGS
10.   Annex 1 sets out savings proposals and adjustments totalling £2,431,700, of which
      £2,169,600 relates specifically to the 2009/10 financial year. The following table
      analyses the savings between those derived from additional income generation,
      efficiency improvements, general impacts from the current economic climate and
      technical budgetary adjustments.

      Table 1: Savings Analysis
       Category                                                     £000
       Income Generation                                            854.2
       Efficiencies                                                 553.0
       Economic Impacts                                             351.0
       Technical Budgetary Adjustments                              411.4
       Total                                                      2,169.6


Neighbourhood Services

11.   The majority of the saving proposals derive from additional income arising from a
      combination of:

      i.     The introduction of the new Green Waste service.

      ii.    Additional recycling credits due to increased volumes of recyclable material
             being collected.

      iii.   Additional income from the sale of the recyclates

12.   About 60% of the additional income proposed by Neighbourhood Services from
      refuse and recycling derives from additional Recycling Credits the rest derive from
      operational changes and from sale of the recyclates.

13.   The risk in building this additional income into the base budget is that the Council
      will be open to potential future fluctuations in the market price for the sale of the
      recyclates, as well as volumetric changes.
14.   To mitigate against this risk the proposed budget changes are based upon a
      prudent assumption of only receiving 80% of the current market price for the sale of
      recyclates.

15.   In addition it is proposed with effect from 1st April 2009 to introduce a new specific
      reserve that will be used to even out or smooth the impact of fluctuations in the
      movement of recycling market prices. This will create a ring-fencing of the net
      recyclates sale proceeds within the Council’s overall budget.

16.   Should the reserve reach a level beyond which it is not felt prudent to require
      further resources to be added, then any excess will be used to fund future recycling
      initiatives.

ICT

17.   The major savings proposal in this area relates to a project that will both update the
      Council’s IT infrastructure and make it more efficient, which will lead to reduced
      energy consumption. This will contribute towards the Council’s “green” agenda.

18.   The associated capital investment required to implement this change will be
      contained within the Council’s existing ICT equipment replacement programme.
      Once an evaluation project has been completed the savings figures will be further
      refined.

Personnel and Support Services

19.   The major element of these savings relates to a proposal to change the staff pay &
      benefits package to address some inequalities that currently exist.

20.   There is a organisational risk associated with this proposal, but it is hoped that staff
      and their union representatives will accept the objectives to create equity and
      fairness and work with the Council to achieve the smooth delivery of the proposed
      changes.

Legal & Property Services

21.   The majority of these savings derive from an ongoing project to complete
      outstanding rent reviews on the Council’s commercial investment properties and to
      let previously vacant property.

Revenue & Benefits Services

22.   Following observations previously made by the Overview & Scrutiny Committee a
      review has been undertaken across all of the benefit payment budgets and they
      have now been amended to reflect current demands on the service. The net effect
      of this has established the opportunity to release £110,000 out of the current budget.
Housing & Leisure Services

23.   A review of the catering operations at our Community Centres has indicated that
      the current catering arrangements can be made more cost-effective. This may lead
      to staffing reductions once the final option has been identified.

Building & Development Control Services

24.   As part of the wider value for money review, the opportunity has arisen to
      introduce a revised operational structure in respect of the Enforcement Function.
      The net proposal generates a cash saving of £37,600 without having to reduce the
      head count within this key service. A report elsewhere on this agenda expands
      further on changes in this service area.

Environmental Health Services

25.   Both the revenue and capital savings offered up arise from discussions with
      Gatwick Airport Ltd over increasing their contributions to the cost of funding air
      quality monitoring in or surrounding the Airport. The figures included within this
      report are based on the current offer, which is still subject to final agreement.

GROWTH

26.   Annex 2 sets out all the growth proposals, which total £1,662,000, of which
      £1,239,600 specifically relates to the 2009/10 financial year. Table 2 below
      summarises them between:

      i.     Additional requirement to comply with statutory requirements.

      ii.    Consequential growth as a result of a savings proposal.

      iii.   Economic impacts.

      iv.    Technical budgetary adjustments.

      Table 2: Growth Analysis
       Category                                                    £000
       Statutory Requirements                                      161.5
       Linked to Savings Proposals                                  66.6
       Economic Impacts                                            425.7
       Investment Income Contingency                               250.0
       Technical Budgetary Adjustments                             335.8
       Total                                                     1,239.6
Treasury Management

27.   Members will be aware that the Council has invested monies in Icelandic banks and
      (at the time of writing) there is uncertainty about these resources. A range of
      measures may be required to address this matter should the monies prove to be
      unrecoverable. Options would include budgetary growth, disposing of surplus
      assets, borrowing to pay for capital expenditure and reprioritising capital spending
      programmes.

28.   In order to be prudent, as an interim measure until matters become clearer, a
      contingency allowance has been made for budgetary growth of £250,000 within the
      provisional budget for 2009/10

29.   The reason for this figure being recommended at this stage is that it takes the
      indicative Council Tax increase to 5%, estimated to be the capping limit. At this
      stage it does not represent a firm commitment to include this sum within the
      budget for 2009/10. Rather it represents a sensible action at a time of considerable
      uncertainty, and assists those being consulted to understand this possible impact.

30    It should be stressed that between now and January every effort will be made to
      clarify the impact (if any) of the Icelandic banking situation on our budget.
      Adopting this growth amount at this point in time should be seen as a
      precautionary measure, rather than acknowledgement that this sum will actually be
      required. A revised Treasury Management Strategy will be brought to the
      Executive shortly

Engineering Services

31.   A review of car parking off street charges has indicated that there would be a
      significant risk to the overall income yield if current prices were increased within
      the current economic climate.

32.   It is therefore proposed to forego any inflationary increases on these charges and
      retain them at their current prices for the 2009/10 financial year.

Legal & Property Services

33.   The reduction in income from land charges is a combination of the downturn in the
      housing market and the introduction of alternative ways that prospective property
      purchasers can acquire the necessary checks on the property titles and other
      covenants.

34.   The overall impact of the decline in land charges income has been phased over 3
      years to smooth impact upon the Council Tax requirements. A key factor in the
      expected decline in income is the Government’s proposals to change the cost
      structure of land charges nationally.

35.   The other growth items within this service are due to the economic impact of
      increasing energy costs and the need to protect the Council against the potential
      adverse risk of not complying with statutory requirements.
STAFFING IMPLICATIONS / HUMAN RESOURCE PLANS

36.   The budget proposal contains changes to the Council’s staff structure. These by
      their nature contain confidential information. Annex 6 in Part 2 of the agenda
      provides a schedule of the proposed changes.

37.   Recommendation 4 seeks a recommendation from the Executive to Full Council to
      approve the amendments to the Council’s Human Resources Plans identified on
      Annex 6. The Employment Committee will then implement and deal with any
      contractual changes required.

CAPITAL PROGRAMME

38.   Annex 3 provides a schedule of the changes proposed to the current capital
      programme. Annex 3A is the fully revised capital programme incorporating the
      changes.

39.   The changes primarily derive from the need to ensure that the Council has
      adequate budget provision to ensure that its property assets are maintained to a
      level that maintains them as fit for purpose, and meets basic Health & Safety
      requirements.

40.   The additional loss of interest incurred from consuming the additional capital has
      been included within the growth proposal at Annex 2. Further changes to the
      capital programme are expected as the Corporate Plan 2009/12 is finalised. The
      revenue control totals in this report have made allowance for an increase in the
      capital programme.

2009/10 BUDGET PROPOSAL

41.   The growth and savings proposed in this report, if approved, establish a budget
      requirement of £18,042,000. This equates to a 5% increase in Council Tax. A
      revised income & expenditure projection model is attached at Annex 4.      This
      provides the detailed analysis as to how the Council Tax increase has been
      calculated.

42.   Having established a proposed budget for 2009/10, an opportunity to review the
      Council’s reserves has arisen. The Council currently has General Fund reserves of
      £3,636,000, which is £1,021,000 above the level required by the Medium Term
      Financial Strategy.

43.   In addition to this, the Council has established a separate Corporate Plan Delivery
      Fund (CPDF) which is being used to finance one-off expenditure required to deliver
      the Corporate Plan. The Council also receives one-off grants money from the
      government, in the form of the Planning & Housing Delivery Grant (PHDG) and
      Local Public Service Agreement (LPSA) that can be used to provide general support
      to the work of the Council.
44.   A review of the resources required to deliver the 2009/12 Corporate Plan has
      established a requirement of £2,500,000, which is £1,500,000 in excess of the funds
      within the CPDF. It is therefore proposed that the PHDG & LPSA balances be
      transferred into the CPDF as this will help to ensure that adequate resource levels
      are available to meet the requirements of the 2009/12 Corporate Plan.

RISKS

45.   The construction of any budget proposal has to be based upon a series of
      assumptions, which themselves are subject to potential variation, which brings
      about potential risk to the soundness of the budget proposal.

46.   The Council has a well developed Risk Management culture, which has been used
      as the basis on which the savings and growth proposals have been developed.

47.   The Council’s Medium Term Financial Strategy approved by the Executive on 25th
      September 2008 sets out the main financial risks in relation to the Pension Fund
      deficit. Interest rates, inflation and government funding also bring a degree of
      opportunity as well as risk. Treasury Management issues are addressed at
      paragraphs 26 to 29 above.

48.   The uncertainty over what the general impacts will be of the country going into
      recession, requires the Council to consider taking a prudent approach to its future
      spending plans.

49.   In addition to the issues contained elsewhere in this report the following additional
      risks are highlighted:

50.     A.   Economic Activity: The “Credit Crunch” and a potential recession due to the
             slowdown within the world economy may have a significant impact upon
             the Council’s income yields. A significant reduction in household disposal
             income will impact on the Council’s income generating activities. Further
             reductions in bank interest rates will cause a significant reduction in the
             potential earning from the Council’s investments.

             To mitigate this the budget proposals have been established using prudent
             assumptions of both price and volume yields.

             In addition the slowdown will potentially have an impact upon employment
             levels, which will then impact upon residents’ ability to pay their Council
             Tax. The Council has historically achieved very high Council Tax collection
             rates, in excess of 99.5% per annum. A downturn in the collection rates, if
             significant, will have an impact upon future years Council Tax levels.
             Therefore additional focus will be placed upon monitoring this situation
             over the coming months.
             Another impact of an increase in unemployment will be to increase the
             demands for social benefits. The Benefit Service has already identified an
             increase in requests for benefits. The 2009/10 budget proposal allows for a
             potential increase in Benefit payment, but any significant increase in
             unemployment within the Borough will increase cost pressure on future
             Council Tax levels.

      B.     Concessionary Fares: The new national scheme has been operational since
             1st April 2008 and initial data for the first quarter to the end of June indicates
             that usage is marginally higher than was originally estimated, but within
             current budgets. The risks will be as the economic downturn impact
             increases; we may see residents switching from car to bus travel, which
             would have a cost implication for the Council. There may also be seasonal
             usage patterns which are not yet determinable, which will also have a
             potential cost implication.

LONG TERM BUDGETS

51.   The Council when setting its budgets must have regard to not just the coming
      financial year, but also the following two years (2010/11 & 2011/12). When
      submitting their proposals departments were asked to identify savings and growth
      issues over the 3 year period.

52.   As shown on Annexes 1 and 2, the majority of the proposals related to 2009/10. The
      Council still has significant budget gaps to close for both 2010/11 and 2011/12
      (£1.05m and £1.23m respectively) – see Annex 4.

53.   As part of the budget review process, a number of areas for potential future savings
      were identified. These are set out at Annex 5.

54.   The Executive is asked to endorse these areas and request Officers to bring back
      detailed proposals as to how these areas will contribute towards the budget gap
      from 2010/11 onwards.

OPTIONS

55.   The Executive can accept, reject or amend any or all aspects of this report.

LEGAL IMPLICATIONS

56.   Whilst the final proposal after appropriate consultation will require full Council
      approval, it is the function of the Executive to assess the resource requirements of
      the Council to ensure delivery of its services and Corporate Plan aspirations and to
      recommend necessary changes to the Human Resource Plan.

FINANCIAL IMPLICATIONS

57.   These are addressed above.
CONSULTATION

58.   The Overview & Scrutiny Committee will consider this budget report on 15th
      December, informed by the Budget Scrutiny Panel that meets on 1st December.
      Consultation with the Business Community on the 2009/10 budget will take place
      in writing and through a seminar planned for January.

POLICY FRAMEWORK

59.   The Corporate Plan 2006/09 (a Level One policy document under the Council’s
      Constitution) includes the key priority – ensure the Council’s finances are
      optimised.
                                                                                                                                                Annex 1
SAVINGS PROPOSAL
                                                                                                                     Analysis 2009/10
                        Scheme / Proposal                          HR             Savings                   Income Efficiency Economic      Technical
                                                                Impacts   2009/10   2010/11    2011/12   Generation  Savings              adjustments
                                                                  (fte)     £'000      £'000     £'000         £'000    £'000       £'000        £'000
Engineering Services
     Horley Market contract termination                                       6.0                                                       6.0
     Amendment to Parking Services staff Structure                            3.0                                          3.0

Neighbourhood Services
     Growth bid from 08/09 - Refuse collection, new round -
     no longer required.                                                    135.0                                                                  135.0
     Improved recycling p[reformance ans operational
     efficencies achieved through the new Green Waste
     scheme and improved markets for recyclates                             632.0                             432.0      200.0
     Improvement to profitability of the Commercial Waste
     service                                                                 70.0                              70.0

      Growth bid from 08/09 - Recycling - no longer required.                26.0                                                                   26.0

ICT
      Cease licensing middleware product                                     43.0                                                      43.0
      Bundle Novell products under the new Local
      Government licensing arrangements                                      13.0                                         13.0
      Cancel ESIP network link                                                8.5                                                       8.5
      Withdraw from Surrey ePartnership                                      16.0                                                      16.0
      Cease membership of FAST                                                2.5                                                       2.5
      Implementation of Server virtualisation and Thin client
      project                                                                26.3      37.1       70.0                    26.3




                                                                                                                   Analysis 2009/10 - 2011/12
                        Scheme / Proposal                         HR               Savings                 Income Efficiency    Economic   Technical
                                                               Impacts   2009/10    2010/11   2011/12   Generation  Savings              adjustments
                                                                 (fte)     £'000      £'000     £'000         £'000    £'000       £'000        £'000
Personnel & Support Services
     Conversion of Contingency Planning Managers post to
     part-time working                                          0.11         7.5                                          7.5
     Introduction of Car Parking fees for Town Hall based
     staff                                                                  45.0                              45.0
     Review of Essential car user allowances                                41.0        8.0       8.0                    41.0
     General operational Savings - Contingency Planning                      1.0                                          1.0

Legal & Property Services
     Reduced payments to Surrey County Council in respect
     of Land Charge applications.                                           74.0        3.7       3.7                               74.0
     Reduced contract payments to MVM                                        8.5                                                     8.5
     Review of staff structure in Land Charges section                                 18.0
     Increased income from Commercial property rent roll                   247.0       50.0      50.0        247.0
     Reduction in payment of lease rentals                                   6.0                                          6.0
     Amendment to staff structure in the Legal team               2.00       8.0                                          8.0

Finance & Procurement
     Removal of Insurance Fund top up provision                            100.0                                                               100.0
     Savings from reletting 'Cash in transit' contract                      10.0                                         10.0
     Reduction in operational costs arising from transfer of
     benefits payments from cheques to BACS                                  2.0                                          2.0
     General operational savings                                             1.0                                          1.0
     Deletion of Corporate Fund Raiser post                     1.00        24.7                                         24.7

Revenues & Benefits services
    Increase charges for court summons                                      17.5                              17.5
    Decrease Business Rates discretionary rate relief
    budget                                                                   5.9                                                     5.9
    General operational savings                                              7.0                                          7.0
    Reduction in net costs of making Benefit payments                      110.0                                                   110.0

                                                                                                                       Analysis 2009/10
                        Scheme / Proposal                        HR                Savings                 Income    Efficiency Economic   Technical
                                                              Impacts   2009/10   2010/11    2011/12   Generation    Savings               adjustments
                                                                (fte)     £'000     £'000      £'000        £'000      £'000       £'000          £'000
Housing & Leisure Services
    Reduction in Temporary Accommodation budget                             5.0                                                      5.0
    Partial deletion of Leisure Development officer post       0.50        16.0                                         16.0
    Partial deletion of Admin Officer post                     0.75        18.0                                         18.0
    Deletion of Community Sports Coach                         0.20         4.0                                          4.0
    Introducing alternative catering arrangements at the
    Community Centres                                          2.08        50.0                                         50.0

Building and Development Services
     Restructuring within the enforcement team, senior post
     being replaced with a more junior post.                   1.00        67.9                                         67.9

Corporate Development / Chief Executive Office
    Reduction in Grants to Voluntary Organisations                         71.6                                                     71.6
    General operational savings - Democratic Services                       2.3                                          2.3
    General operational savings - Community Liaison                         1.6                                          1.6
    General operational savings - Web & Information                         7.9                                          7.9
    General operational savings - Performance &
    Improvement                                                             3.1                                          3.1
    General operational Savings - Projects & Assurance                      2.2                                          2.2
    General operational savings - Corporate Development
                                                                            3.9                                          3.9
     General operational savings - Chief Executive Office                   5.9                                          5.9

Customer Services
     General operational savings                                            6.1                                          6.1
     Close Planning desk in town Hall                          1.00        13.6       13.6                              13.6




                                                                                                                      Analysis 2009/10
                       Scheme / Proposal                        HR                Savings                 Income    Efficiency Economic   Technical
                                                              Impacts   2009/10    2010/11   2011/12   Generation     Savings           adjustments
                                                               (fte)    £'000    £'000   £'000   £'000   £'000   £'000   £'000
Environment Health Services
     Increased contribution from Gatwick Airport Ltd towards
     air quality monitoring                                              10.0                     10.0
     Increase Hackney Carriage licence fees                               6.7                      6.7
     Increased income from private hire licensing under the
     Road Safety Act 2005                                                26.0                     26.0

     TOTALS                                                    8.64    2,019.2   130.4   131.7   854.2   553.0   351.0   261.0

Additional 'One Off' savings in 2009/10 only
     Clearance of various environmental health holding
     accounts                                                            55.4                                             55.4
     Removal of Borough Election budget                                  95.0                                             95.0
     TOTAL                                                     0.00     150.4                    854.2   553.0   351.0   411.4


     OVERALL TOTAL 09/10                                       8.64    2,169.6
                                                                                                                                                             Annex 2
GROWTH PROPOSALS
                                                                                                                                 Analysis 2009/10
                         Scheme / Proposal                                HR               Growth               Growth linked    Statutory      Economic     Technical
                                                                        impact   2009/10    2010/11   2011/12      to Savings                              adjustments
                                                                         (fte)     £'000      £'000     £'000            £'000      £'000          £'000          £'000
Engineering Services
  No increases in Car Park charges                                                  54.5                                                            54.5
   Reduction in PCN income following statutory reduction in charge
   rate                                                                             30.0                                             30.0

Neighbourhood Services
   Increase in cost due to transfer of statutory responsibility for
   stray dogs to the Council from the Police Service                                40.0                                             40.0
   Correction of previous funding assumption, re Tree Maintenance
   from capital to revenue                                                          70.0                                                                           70.0
   Correction of Priory Park Officer budget                                         14.8                                                                           14.8

Personnel and Support Services
   Cost of additional Pool Cars & administrative resources. (Linked
   to saving on Essential User Car Allowances)                           0.20        7.7        1.7                        7.7

Land & Property Services
   Land Charges - reduction in income budget due to falling
   demand for the service.                                                         131.6      135.3     135.4                                      131.6
   Removal of one-off S106 income - Watercolour development
                                                                                    28.0                                                                           28.0
   Additional cost of service charges payable by the Council
                                                                                     1.0                                                             1.0
   Potential loss of income, due to break clause within the lease for
   Newman House.                                                                                        150.0
                                                                                                                                Analysis 2009/10
                          Scheme / Proposal                            HR                 Growth               Growth linked    Statutory      Economic     Technical
                                                                     impact     2009/10    2010/11   2011/12      to Savings                              adjustments
                                                                      (fte)       £'000      £'000     £'000            £'000      £'000          £'000          £'000
Land & Property Services (cont'd)
   General increase in Utilities costs across the Council property
   holdings                                                                       181.6                                                           181.6

   General increase in contractual costs above inflation allowance                 17.7                                                            17.7
   Legionella - new inspection contract                                            10.0                                             10.0

   General increases required in property maintenance budget                       20.3                                                            20.3
   Contingency for unplanned Health & Safety works                                 25.0                                             25.0
   Staffing restructure within the Property Services                     2.00       9.0                                                             9.0

Revenue & Benefits Service
   Conversion of the existing Benefits Fraud team into a Corporate
   Counter Fraud team to comply with new guidance and
   regulations.                                                       1.00         56.5                                             56.5

Housing & Leisure Services

   Removal of one-off S106 income - Watercolour development                        28.0                                                                           28.0
   Correction of budget imbalance in relation to the East Surrey
   Rural Transport Partnership and Dial a Ride                                     30.0                                                                           30.0
   Establishing a budget to maintain key leisure and youth
   development initiatives (previously funded from 'One-off'
   budgetary provision)                                                            16.0                                                                           16.0
                                                                                                                                  Analysis 2009/10
                         Scheme / Proposal                               HR                 Growth               Growth linked    Statutory      Economic     Technical
                                                                       impact     2009/10    2010/11   2011/12      to Savings                              adjustments
                                                                        (fte)       £'000      £'000     £'000            £'000      £'000          £'000          £'000
Building & Development Services
   Administrative Support for the Head of Service                       0.70         12.6                                 12.6
   New post following restucture within the Enforement team
   (linked to saving proposal)                                          1.00         28.0                                 28.0
   Upgrade Tree Officer post to improve management
   arrangements (linked to savings proposal)                                          2.3                                   2.3
   Technical adjustment to transfer expenditure previously funded
   by Planning Delivery Growth into base budget (this will improve
   accountability and allow the remaining PDG be to used to
   support the delivery of the Corporate Plan)
                                                                                    109.0                                                                         109.0

Corporate Development & Chief Executive Office
   Correction of imbalance in the Members allowance scheme
   budget to reflect additional National Insurance and taxation
   costs.                                                                            40.0                                                                           40.0
   Gatwick Diamond - contribution towards operating costs
                                                                                     10.0                                                            10.0

Environmental Health Services
   Introduction of budget to pay for CRB/DVLA checks to comply
   with the Road Safety Act 2005 (this is funded from the additional
   income generated)                                                                 16.0                                 16.0


   TOTAL                                                                4.90        989.6      137.0     285.4            66.6       161.5          425.7         335.8

   Investment Income contingency                                                    250.0                                                           250.0

   REVISED TOTAL                                                           4.90   1,239.6      137.0     285.4            66.6       161.5          675.7         335.8
                                                                                           Annex 3
CHANGES TO THE CAPITAL PROGRAMME
Additions to the Current Programme

                                                2009/10   2010/11    2011/12    2012/13     2013/14
                                                  £'000     £'000      £'000      £'000       £'000
Community Centre                                   85.0      60.6       49.6       56.8        68.9
Allotments                                          1.0        1.0        1.0        1.0         1.0
Pavilions                                           0.0       0.0         0.0      10.0          5.0
Corporate Admin buildings                          10.0       0.0       60.0       30.0        20.0
Earlswood Depot                                     0.0       0.0        0.0         0.0       10.0
Commercial investment properties                   51.6      52.6       54.3       55.9        57.6
Public Conveniences                                 1.0       1.0        1.0        1.0         1.0
Harlequin Theatre                                 188.1     215.1      107.7       27.6        55.4
Sport Centres                                      48.0      48.0       48.0       48.0        48.0
CCTV                                               30.0      30.0       30.0       30.0        30.0
Anti fraud management and monitoring software      17.8       0.0        0.0        0.0         0.0
Noise monitoring equipment                         24.0       0.0        0.0        0.0         0.0
TOTAL                                             456.5     408.3      351.6      260.3       296.9

Deletions from the Current Programme

                                                2009/10   2010/11    2011/12    2012/13     2013/14
                                                  £'000     £'000      £'000      £'000       £'000
Air Quality Monitoring equipment                   37.0      37.0       30.0        0.0         0.0

TOTAL                                              37.0      37.0       30.0        0.0         0.0


NET CHANGES TO PROGRAMME                          419.5     371.3      321.6      260.3       296.9
                                                                                        Annex 3A
REVISED CAPITAL PROGRAMME 2009/10 TO 2013/14


                                           2009/10   2010/11   2011/12   2012/13   2013/14    Total
                                             £000      £000      £000      £000      £000     £000
SUMMARY
Caring for the Local Environment              59.0      50.0      51.0      53.0       0.0    213.0
Self Reliant & Thiving Communities           348.0     346.0   5,506.0   7,506.0       0.0 13,706.0
Value for Money                              150.0       0.0       0.0       0.0       0.0    150.0
Regeneration & New Neighbourhoods              0.0       0.0       0.0       0.0       0.0      0.0
Capital Grants                               770.0     770.0     770.0     770.0     770.0 3,850.0
Rolling Maintenance Programmes             1,851.5   2,156.3   1,586.6   1,418.3   1,247.9 8,260.6
                                           3,178.5   3,322.3   7,913.6   9,747.3   2,017.9 26,179.6




                                           2009/10   2010/11   2011/12   2012/13   2013/14    Total
                                             £000      £000      £000      £000      £000     £000
CARING FOR THE LOCAL ENVIRONMENT
New Bring Sites                                0.0       0.0       0.0       0.0       0.0      0.0
Garden Waste Implementation                    0.0       0.0       0.0       0.0       0.0      0.0
Villages & Shopping Parades                    0.0       0.0       0.0       0.0       0.0      0.0
Sustainable Energy                             0.0       0.0       0.0       0.0       0.0      0.0
Capital Engineering                           59.0      50.0      51.0      53.0       0.0    213.0
                                              59.0      50.0      51.0      53.0       0.0    213.0

SELF RELIANT & THRIVING COMMUNITIES
Refurbishment Donyngs                          0.0       0.0       0.0       0.0       0.0      0.0
New Build Horley                               0.0       0.0   5,500.0       0.0       0.0  5,500.0
New Build Banstead                             0.0       0.0       0.0   7,500.0       0.0  7,500.0
Priory Park Phase 3                            0.0       0.0       0.0       0.0       0.0      0.0
Priory Park Maintenance                        6.0       6.0       6.0       6.0       0.0     24.0
Pavilion Replacement Programme               300.0     300.0       0.0       0.0       0.0    600.0
Pavilion Replacement Fees                     42.0      40.0       0.0       0.0       0.0     82.0
                                             348.0     346.0   5,506.0   7,506.0       0.0 13,706.0

VALUE FOR MONEY
Systems Exploitation                         150.0       0.0       0.0       0.0       0.0    150.0
Info Management/GIS/Web                        0.0       0.0       0.0       0.0       0.0      0.0
                                             150.0       0.0       0.0       0.0       0.0    150.0

REGENERATION & NEW NEIGHBOURHOODS
Newman House                                   0.0       0.0       0.0       0.0       0.0       0.0
Horley Town Park                               0.0       0.0       0.0       0.0       0.0       0.0
Horley Masterplan                              0.0       0.0       0.0       0.0       0.0       0.0
                                               0.0       0.0       0.0       0.0       0.0       0.0

CAPITAL GRANTS
DFG                                          650.0     650.0     650.0     650.0     650.0   3,250.0
Large Scale & Small Scale Works Grants       100.0     100.0     100.0     100.0     100.0     500.0
Regional Housing Pot Capital Grant (net)       0.0       0.0       0.0       0.0       0.0       0.0
Capital Grants                                20.0      20.0      20.0      20.0      20.0     100.0
                                             770.0     770.0     770.0     770.0     770.0   3,850.0
                                                                                         Annex 3A cont'd

                                                2009/10   2010/11   2011/12   2012/13   2013/14    Total
                                                  £000      £000      £000      £000      £000     £000
ROLLING MAINTENANCE PROGRAMMES
Vehicles & Plant Programme                        617.0     989.0     658.0     580.0     580.0   3,424.0
ICT Replacement Programme                         200.0     200.0     200.0     200.0     200.0   1,000.0
Council Offices Programme                         110.0     150.0      60.0      30.0      20.0     370.0
Commercial Investment Properties                   51.6      52.6      54.3      55.9      57.6     272.0
Day Centres Programme                              85.0      60.6      49.6      56.8      68.9     320.9
Exisiting Pavilions Programme                      30.0      33.0       0.0      10.0       5.0      78.0
Horley Anderson Leisure Centre Refurbishment*      48.0      48.0      48.0      48.0       0.0     192.0
Banstead Leisure Centre Refurbishment*            125.0     125.0     125.0     125.0       0.0     500.0
Land Flood Prevention Programme                    12.0      12.0      12.0      12.0      12.0      60.0
Play Area's Improvement Programme                 110.0     110.0     110.0     110.0     110.0     550.0
Timber Resources Management Programme              72.0       0.0       0.0       0.0       0.0      72.0
Car Parks Capital Works Programme                  50.0      50.0      50.0      50.0      50.0     250.0
Contaminated Land Software                          0.0       0.0       0.0       0.0       0.0       0.0
Noise Monitoring Equipment                         24.0       0.0       0.0       0.0       0.0      24.0
Anti Fraud Management & Monitoring Software        17.8       0.0       0.0       0.0       0.0      17.8
Earlswood Depot/Park Farm Depot                    10.0      10.0      10.0      10.0      10.0      50.0
Public Conveniences                                 1.0       1.0       1.0       1.0       1.0       5.0
Cemeteries                                         20.0      20.0      20.0      20.0      20.0     100.0
Allotments                                          1.0       1.0       1.0       1.0       1.0       5.0
Harlequin                                         213.1     240.1     132.7      52.6      55.4     693.9
CCTV Rolling Maintenance Programme                 30.0      30.0      30.0      30.0      30.0     150.0
Capital Programme Administration                   24.0      24.0      25.0      26.0      27.0     126.0
                                                1,851.5   2,156.3   1,586.6   1,418.3   1,247.9   8,260.6

*Subject to decision on timing of new build.
                                                                                                       Annex 4

Income & Expenditure Projections: 2009/10 to 2013/14

                                            2009/10     2010/11     2011/12     2012/13    2013/14
                                              £000        £000        £000        £000       £000

Base Budget1                                  18,807     19,044      19,403      19,794      20,206

Add:
Loss of interest - Capital Programme 2           165         170        400         490         100
Loss of Warwick Quadrant Income                    0         116        116           0           0
Peer Review Growth3                            1,239         287        285           0           0

Less:
Peer Review Savings3                         (2,169)       (117)       (132)          0           0
Additional Savings Required4                      0      (1,050)     (1,230)     (1,040)      (650)

Total Budget Requirement                      18,042     18,450      18,842      19,244      19,656

Less: Government Funding5                    (6,908)     (6,943)     (6,943)     (6,943)    (6,943)

Council Tax Requirement                       11,134     11,507      11,899      12,301      12,713



Average Band D Council Tax6,7                   £194       £200        £206        £212        £218

Percentage Increases8                          5.0%        3.0%        3.0%        3.0%       3.0%


Increase on Total Band D Council
Tax Bill9                                         £9          £6          £6         £6          £6

Percentage Increase on Total Band
D Council Tax Bill10                           0.7%        0.4%        0.4%        0.4%       0.4%


Notes
1       From 08/09 baseline and assuming no major service growth or diminution.
2       As per the Capital Programme and the 09/10 Budget Peer Review process.
3       Identified in 09/10 Budget Peer Review process.
4       Additional savings required each year to limit the Council Tax increase to 3% (after 09/10).
5       09/10 and 10/11 are indicative figures as per DCLG. A 0% increase has been assumed for
        11/12, 12/13 and 13/14.
6       Council Tax base (57,187 for 08/09) assumed to increase by Horley completions.
7       The average RBBC Band D Council Tax charge for 08/09 is £184.69.
8       5% in 09/10 and assumed to be 3% thereafter.
9       The current average overall Band D Council Tax is £1,431.
10      Based on an assumed overall annual increase in the total bill of 3%.
                                                                            Annex 5




LISTING OF POTENTIAL AREAS FOR GENERATING
SAVINGS FROM 2010/11 ONWARDS



  1   Completion and implementation of the Refuse & Recycling blueprint

  2   Business review - Street Sweeping and cleansing service

  3   Business review - Parks & Countryside service

  4   Strategic review of the Emergency and Business Continuity planning
      arrangements

  5   Business review - Word Processing

  6   Development and implementation of the IT Server visualisation and Thin Client
      project (already in revised financial projections)

  7   Review of the management arrangements of the Community Centres

  8   Business review - Development Control service

  9   Business review - Harlequin theatre

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:9/20/2011
language:English
pages:26