Hampshire County Council

Buildings, Land and Contracts Panel Item 8

26 March 2003

Executive Member for Policy and Resources

10 April 2003

Revenue Maintenance Budget 2002/03 and 2003/04

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

The following decisions are sought:

That subject to the views of the Buildings, Land and Contracts Panel approval be given to:

i) any uncommitted element of the winter contingency being carried forward to 2003/04.

ii) the budget allocations for 2003-04 as set out in Appendix 2

iii) the approach of spending to meet the high priority areas identified by the Corporate Risk Assessment.

2.

Reason(s)

2.1

To enable the revenue and maintenance budget to be allocated in support of the Property Strategy.

3

Other options considered and rejected

3.1

None.

4

Conflicts of interest declared by the decision-maker or a member or officer consulted

4.1

Not applicable

5

Dispensation granted by the Standards Committee

5.1

Not applicable

6

Reason(s) for the matter being dealt with if urgent

6.1

Not applicable

Approved by:

..........................

Date of decision:

.........................

Councillor T K Thornber

Hampshire County Council

Buildings, Land and Contracts Panel Item

26 March 2003

Revenue Maintenance Budget 2002/03 and 2003/04

Report by the Director of Property, Business and Regulatory Services

1

Introduction

1.1

This report provides members of the Panel with an update on the budget position for 2002-03, (where outturn expenditure is likely to be close to the approved budget), and proposes the budget allocation for 2003/04.

2.

Revenue Budget 2002/03

2.1

Appendix 1 shows the level of commitment against the budget allocations approved by the Executive Member for Policy and Resources. Just over two thirds of the total revenue budget is delegated to schools. The LMS Delegation element of the budget is for minor repairs which are arranged directly by schools. For the Fair Funding money, schools are offered the opportunity to buy the service from Property Services: all Community Schools, and some foundation schools, do buy back under this arrangement.

2.2

At the end of January, 87% of the budget was committed, after 85% of the financial year. However, after excluding the devolved budgets for which there are no buy-back arrangements, the level of commitment is in line with expectations.

2.3

At 1 February 2003, no use had been made of the winter contingency of £305,000. This provision is made annually as cover against a severe winter, and any unspent element is carried forward to the following financial year. If it is not required, it is recommended that the uncommitted element of the contingency be carried forward to 2003/04.

3.

Revenue Budget 2003/04

3.1

In line with the County Council's budget strategy, the base budget for 2003/04 includes an inflation allocation of 2.5%. This compares to estimated actual inflation of 7.6%. The passporting arrangements for Education and Social Services budgets mean that the budget has been enhanced by a further £500,000. As a consequence, the total increase in the budget is 7%.

3.2

The proposed allocations for 2003-04 are shown in Appendix 2. The allocations to schools are enhanced by the 2.5% inflation allowances, plus the £400,000 of passporting money which relates to schools. The most significant item of revenue spending on schools, and indeed elsewhere, is on engineering term maintenance contracts which, in total, accounts for over 40% of the budget, and on which inflation is running at around 10%. Other key elements of expenditure include the redecoration of the building stock plus a series of minor structural repairs.

3.3

A comprehensive Corporate Risk Assessment (CRA) has been undertaken. This identifies, amongst other things, priority areas for activity and therefore expenditure. Although this is in many ways of greater significance for Capital spending, every effort will be made to direct expenditure at priority areas identified by the CRA. This will need to be completed in consultation with schools in particular.

4.

Conclusion

4.1

It is estimated that the revenue expenditure outturn will be in line with budget, subject to the level of demand on the winter contingency. The budget for the coming financial year roughly maintains the spending power of the current year's allocation.

Recommendation(s)

That the Panel advises the Executive Member for Policy & Resources that:

i)

any uncommitted element of the winter contingency be carried forward to 2003/04.

ii)

the budget allocations for 2003-04 be approved.

iii)

the approach of spending to meet the high priority areas identified by the CRA be endorsed.

Budget

Allocation

Commitment

2002/03

01/02/03

£'000

£'000

%

Non-Education Services

Redecorations

490

307

63

Engineering Servicing & Repairs

1,382

1,045

76

Minor Structural Repairs

520

438

84

Asbestos Testing

32

9

28

Vandalism Reinstatement

100

121

121

Sub Total

2,524

1,920

76

Contingency

305

0

0

Delegated to schools

LMS Delegation

2,037

2037

100

Fair Funding Delegation

Community Schools

4,875

4,515

93

Foundation Schools

677

677

100

Sub Total

7,589

7,229

95

Other Allocations

Strategic Consultants

350

293

84

Non Functional Buildings

100

4

4

Devolved to Other Services

230

162

70

Sub Total

680

459

68

Total

11,098

9,608

87

Budget

Proposed

Allocation

Allocation

2002/03

2003/04

£'000

£'000

Non-Education Services

Redecorations

490

500

Engineering Servicing & Repairs

1,382

1,500

Minor Structural Repairs

520

530

Asbestos Testing

32

35

Vandalism Reinstatement

100

100

Sub Total

2524

2665

Contingency

305

338

Delegated to schools

LMS Delegation

2,037

2,088

Fair Funding Delegation

Community Schools

4,875

5348

Foundation Schools

677

743

Sub Total

7,589

8,179

Other Allocations

Strategic Consultants

350

360

Non Functional Buildings

100

100

Devolved to Other Services

230

235

Sub Total

680

695

Total

11,098

11,877