Archived decisions

£'000

£'000

Original budget 2004/05 at outturn prices

38,910

Transfers to/from other services and contingency allocations

-

Inflation added to original budget from pay contingency

490

-

Additional allocation for Cabinet short term priorities

158

-

Members pension fund employers' contribution

90

-

Accredited community safety officers

1,000

-

Financial assessments service charge to Social Services

-471

1,267

=

Adjusted original budget

40,177

Other variations:

-

Carry forward of 50% of underspending from 2004/05

141

-

Rephasing of Leadership training / Pay & Benefits review

78

-

Winter maintenance contingency carry forward

104

-

Additional contingency allocation for 2004/05 only - E-Government, Pay and Benefits, HR restructuring and grants

1,520

-

Virements from capital

62

-

Second home income administration costs

3

-

Area Scrutiny and Select Committees consultancy

25

-

Havant Local Area Committee community projects

100

-

Best Value Review voluntary sector database funding

4

-

Neighbourhood Warden Apprentice - Test Valley

5

-

Every Child Matters funding from contingency

100

-

Transfer to Recreation and Heritage - Solent Peoples' Theatre

-7

-

Transfer to fund records management

-11

-

HR restructuring funding transfer from departments

2,233

-

Security costs relating to corporately held land

47

-

Earmarked carry forwards from 2004/05

Treasurers

-30

Accredited community safety officers

-250

Office accommodation

-200

HR restructuring

-100

HR equalities and leadership training

-100

Community Planning

-145

3,579

=

Cash limit for the revised budget 2004/05

43,756

Cash Limit

Revised Budget

Variation

£'000

£'000

£'000

%

Cash limited expenditure

Chief Executive

-

Chief Executive's Department

6,149

6,174

+25

+0.4

-

Economic Development

208

208

-

-

-

Links with Europe

105

105

-

-

-

Emergency Planning and oil pollution

336

336

-

-

-

Other direct services

850

850

-

-

-

Other central services

1,852

1,852

-

-

9,500

9,525

+25

-

HR Department

-

HR Department

4,033

4,073

+40

+1.0

-

Hampshire Learning Centre

685

685

-

-

-

Occupational Health

120

190

+70

+58.3

-

HR restructuring transitional costs

400

400

-

-

-

Leadership training

60

60

-

-

-

Pay and Benefits review

343

343

-

-

-

Other central services

210

210

-

-

5,851

5,961

+110

-

County Treasurer

4,879

4,879

-

-

4,879

4,879

-

-

Property, Business and Regulatory

-

Office accommodation

4,359

4,359

-

-

-

Property Services

5,275

5,275

-

-

-

Repair and maintenance

3,859

3,859

-

-

-

Regulatory Services

3,078

3,078

-

-

-

Accredited community safety officers

750

750

-

-

-

Other direct services

338

382

+44

+13.0

-

Other central services

63

63

-

-

17,722

17,766

+44

-

Other budgets

Centrally retained expenses

134

134

-

-

Corporate and democratic core

292

292

-

-

Coroners

815

874

+59

7.2

External Audit Fee

414

363

-51

-12.3

Other direct and corporate services

1,406

1,410

+4

+0.3

Other central services

2,743

2,749

+6

+0.2

5,804

5,822

+18

-

Savings to be identified

-197

Total

43,756

43,756

-

-

£'000

£'000

Original budget 2004/05 at outturn prices

38,910

Transfers to/from other services and contingency allocations

-

Inflation added to the original budget from pay contingency

490

-

Additional allocation for short term Cabinet priorities

158

-

Members pension fund employers' contribution

90

-

Accredited community safety officers

1,000

-

Financial assessments service charges to Social Services

-471

1,267

=

Adjusted original budget

40,177

Increases for inflation to November 2004 prices (see Annex 2)

-

Excess cost of inflation over the inflation allowance

263

Original budget at November 2004 prices

40,440

Other variations (see Annex 3)

-

Reductions to offset excess inflation

-263

-

Exclusion of non-recurring 2004/05 expenditure

-377

-

Full year effect of 2004/05 approved growth - Intech grant

40

Pay and Benefits team

200

-

Transfer to fund records management

-11

-

HR restructuring transfer

2,855

-

2005 election costs

550

-

Variation in recharges to trading units

-14

-

Earmarked carry forwards from 2004/05

Treasurers

30

Accredited community safety officers

134

Office accommodation

200

HR restructuring

100

HR equalities and leadership

100

Community Planning

145

3,689

Allocation for future inflation

1,512

=

Base budget 2005/06 at outturn prices

45,641

1

Definitions

1.1

The first stage in the construction of the budget for 2005/06 is the preparation of a base budget. The rules used this year are similar to those applied in 2004/05, which are summarised below.

1.2

The 2005/06 base budget is defined as the current year's budget adjusted for:

· allocations made for inflation in 2004/05 including the full year effect of the provision made for pay awards in 2004/05

· exclusion of expenditure included in the 2004/05 budget which was financed by the carry forward of planned underspendings from 2003/04, the one-off use of reserves or balances, or which was approved on a non-recurring basis

· the revenue effect of past capital programmes, subject to its inclusion in the approved capital programme

· the full year effect of council-approved policies included in the current year's original budget, which have been introduced part-way through the year

· changes in income volumes which are not the result of policy decisions

· correction of arithmetical errors in the current year's budget

· The following specific items:

Education

Variations arising directly from changes in the number of pupils in schools, pupils eligible for free meals and numbers of days in the school year

Environment

Routine highway and street lighting maintenance arising from variations in road length

Variations in waste disposal volumes

Social Services

Increased cost of joint finance schemes with health due to operation of the taper

1.

Variation between the actual cost of inflation in 2004/05 and the provision for inflation included in the 2004/05 budget

£'000

£'000

Additional cost of inflation

263

Less:

-

Allocation from contingency for business rates

=

Shortfall in the provision

263

2.

Significant costs of inflation between 2004/05 outturn prices and November 2004 prices

2.1

Pay awards

Provision was originally made in 2004/05 for pay awards of 2.5% to teachers and other employee groups.

1,190

The additional cost in 2005/06 of the pay awards agreed in 2004/05 has been met in full and is:

454

1,644

The pay awards agreed were:

Negotiating body: Effective date:

%

Local Government Services Staff

Hampshire Management Grades

Justices clerks/Magistrates Clerks

1 April 2004

1 April 2004

1 April 2004

2.75

5.00

3.00

2.2

Non pay inflation

Provision was originally made in 2004/05 for a net amount of

£644,000

This was for general price increases of 2.5% (£766,000) offset by increased income to match inflation in gross expenditure

Additional cost of price increases other than pay and net of income

£263,000

The most significant variations within this additional cost are as follows:

Outturn 2004/05 to November 2004

%

Cost in 2005/06

£

Repair and Maintenance

3.6

135

Electricity

19.5

84

Gas

17.5

36

Gas Oil

14.8

7

Car lease private rentals

-2.2

-4

3.

Allocation for future inflation

£'000

Provision for all pay awards of 2.95% in 2005/06

1,441

Increase in local government employers' pension contributions (from 225% to 250% of employee contributions)

Adjustment for expenditure financed by underspendings / business unit surpluses

589

-1

Provision for non-pay inflation at 2.5%

838

Reduction for increased income

-1,365

Total allocation for future inflation

1,502

Variations against the repriced 2004/05 budget

£'000

%

Chief Executive

Deletion of non-recurring item for Best Value Review

-15

-0.3

re voluntary sector

HR restructuring - transfer from departments

-63

-1.2

- advertising

-75

-1.5

County Council elections

550

92.9

Director of Human Resources

Transfer of budget funding from other departments to Human Resources, reflecting the corporate management of recruitment activity by the Resourcing Centre

1,252

n/a

SAP realisation benefit savings for recruitment activity

-100

-8.0

Transfer of budget funding from other departments to Human Resources, reflecting the reorganisation of services previously undertaken within the Personnel and Training Department

2,338

88.2

Carry forward of 2004/05 underspending earmarked for equalities training (£25,000), the Leadership programme (£75,000) and the use of transitional staffing monies (£100,000)

200

3.1

One-off funding to support the Pay and Benefits project team for 2005/06 only

200

3.1

Director of Human Resources continued

Deletion of funding approved in previous years for specific distinct projects being the Leadership programme (-£75,000) and the Pay and Benefits project (-£25,000)

-100

-1.6

County Treasurer

Transferred Education Financial Services and Social Services Staff

610

-

Additional Recreation and Heritage DFU staff

60

-

Additional staff income relating to these staff

-670

-

HR budget transfers re advertising and restructuring

-219

n/a

Carry forward of planned underspending from 2004/05

30

n/a

Property Business and Regulatory

Budget reduction pending funding review of Business rate revaluation team and Capital receipt team

-265

5.3

HR budget transfers re advertising and restructuring

-279

n/a