Contact: Paddy Hillary, Ext 7391/Jill Lovelock, Ext 7591

1. Summary

The following decisions are sought:

(a) That Cabinet welcomes the outcomes of the first round of the Local
Public Service Agreement,

(b) That Cabinet approves the principle for the allocation of potential
performance reward grant as follows:
- £1.5m of total reward grant earned allocated for the development of
the Local Area Agreement,
- £2.25m allocated for repayment of borrowing under unsupported
credit approvals,
- the remaining reward grant allocated to departments in line with
achievement in relation to targets.

2. Reason

The County Council concluded a local public service agreement with the
government covering the period April 2002 to March 2005 which included 13
targets aimed at stretching performance in key areas of activity.

The outcomes of this agreement have been monitored and this report seeks
approval of the principles for allocating the potential reward grant earned.

3. Other Options Considered and rejected - None.

4. Conflicts of Interest declared by the decision maker or a member or officer
consulted - Not applicable

5. Dispensation granted by the Standards Committee - Not applicable

6. Reason(s) for the matter being dealt with if urgent - Not applicable

Approved by: Date:

Councillor T.K Thornber, CBE