Hampshire County Council

Buildings Land and Procurement Panel Item 10

24 March 2004

Revenue Maintenance Budget 2003/04 and 2004/05

Report by the Director of Property, Business and Regulatory Services

How the conclusion in this report fits with the Corporate Strategy

Because the activities covered by this report affect the majority of the County Council's services, they contribute to the achievement of all the corporate aims, in particular:

Aim 1 - maximising life opportunities - by maintaining the built estate to a high

standard for the community to enjoy

Aim 5 - improving services - by providing well maintained premises that enable

improved service delivery

1

Summary

1.1

The purpose of this report is to update Panel members on the revenue budget position for the current financial year, and to propose the allocation of the budget for 2004/05.

2.

Revenue budget 2003/04

2.1

Appendix 1 shows the level of commitment against the revised budget for 2003/04. The revised budget figure of £12.177m reflects the virement of £300,000, which was approved by the Executive Member for Policy and Resources, to enhance spending in line with the outcome of the corporate risk assessment.

2.2

By mid February, (i.e. after 87% of the financial year), the total level of commitment was 90%. However, two elements of the budget are delegated to schools and are not within the control of this Panel. These budgets relate to minor repairs which are arranged directly by schools, and delegation to those foundation schools who have not entered into buy back arrangements with Property Services (all Community Schools have entered into the buy back arrangements with Property Services). When only those budgets within Panel's control are included in the calculation, the level of commitment is 87% which is in line with expectations.

2.3

By mid-February, virtually no use had been made of the winter contingency of £338,000. This is an annual contingency provision in case of a severe winter, and unspent elements are carried forward to the following financial year. Despite the relatively late cold weather this winter, it is likely that a major element of the contingency will remain unused, and it is recommended that this should be carried forward to 2004/05.

2.4

The major commitment against the revenue budgets relates to the four engineering term maintenance contracts. These account for £4.9m (40%) of the budgets, and it is currently estimated that spending on these contracts will be almost exactly in line with budget. Statistics indicating the scale of the contracts are shown in Appendix 3 to this report.

2.5

The virement in support of the Corporate Risk Assessment enabled additional resources for:

· fire in residential premises

· temporary building inspection

· condition of buildings

· electrical services

· structural collapse

The budgets utilised for those purposes show commitments of 96% indicating that significant progress has been made on these areas.

3.

Revenue Budget 2004/05

3.1

The original budget for 2003/04 was £11.877m, and in line with the County Council's budget strategy, inflation of 2.5% has been included in the forward budget for 2004/05. This would not have been adequate to meet the true costs of inflation: however, as a result of the passporting arrangements, a further £397,000 has been added to the revenue repairs budget, giving a total increase of 5.8%. The budget is thus £12.565m.

3.2

Proposed allocations for 2004/05 are shown in Appendix 2. The general approach has been to increase schools' allocations by the 2.5% inflation allowance and by the passporting provision, with other allocations generally reflecting the 2.5% increase.

4.

Conclusion

4.1

It is estimated that actual expenditure in 2003/04 will be very close to the approved budget, although this will depend on the extent to which the winter contingency is utilised. Any unused balance should be carried forward to 2004/05. The approved budget for 2004/05 generally maintains the current year's spending power.

Recommendation(s)

That the Panel advises the Executive Member for Policy Resources that approval be given to:

1

Any uncommitted element of the winter contingency being carried forward to 2004/05.

2

The budget allocations for 2004/05 as set out in Appendix 2.

Budget

Commitment

Percentage

£'000

£'000

%

Non-Education Services

Redecorations

500

418

83.6%

Engineering Servicing & Repairs

1,500

1,354

90.3%

Minor Structural Repairs

710

517

72.8%

Asbestos Testing

35

20

57.1%

Vandalism Reinstatement

100

103

103.0%

Sub Total

2,845

2,412

84.8%

Contingency

338

5

1.5%

Delegated to schools

Delegation under LMS Scheme

2,088

2,088

100.0%

Delegation under fair funding:

Community Schools

5,348

5,059

94.6%

Foundation Schools

743

743

100.0%

Sub Total

8,179

7,890

96.5%

Other Allocations

Strategic Consultants

480

528

110.0%

Non Functional Buildings

100

12

12.0%

Devolved to Other Services

235

165

70.2%

Sub Total

815

705

86.5%

Total

12,177

11,012

90.4%

Budget

Proposed

Allocation

Allocation

2003/04

2004/05

£'000

£'000

Non-Education Services

Redecorations

500

510

Engineering Servicing & Repairs

1,500

1,585

Minor Structural Repairs

530

540

Asbestos Testing

35

40

Vandalism Reinstatement

100

100

Sub Total

2,665

2,775

Contingency

338

300

Delegated to schools

LMS Delegation

2,088

2,140

Fair Funding Delegation

Community Schools

5,348

5,830

Foundation Schools

743

810

Sub Total

8,179

8,780

Other Allocations

Strategic Consultants

360

370

Non Functional Buildings

100

100

Devolved to Other Services

235

240

Sub Total

695

710

Total

11,877

12,565

Scale of Contracts

Number of Gas Services

879

Mechanical Services

913

Catering Services

532

Fire Alarm Services

1,512

Generator Services

147

Lift Services

1,279

Helpdesk Calls

18,450