Archived decisions
Hampshire County Council | |||
Environment Policy Review Committee |
Item 8 | ||
18 January 2006 |
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Executive Member for Environment: South Hampshire and Resource Management |
Item | ||
18 January 2006 |
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Revenue Budget 2006/07 and 2007/08 | |||
Report of the County Treasurer and Director of Environment | |||
Contact: Ejner Knudsen (01962) 847403; [email protected]
1 Introduction
1.1 This report sets out the proposed Environment revenue budget for 2006/07, a provisional budget for 2007/08 and recommends a revised budget for 2005/06. This report has been prepared in consultation with the Executive Member for review by the Policy and Review Committee, before the budget is considered formally by the Executive Member. It will be reported to the Leader and Cabinet on 10 February 2006 to make final recommendations to County Council on 22 February 2006.
1.2 The Environment revenue budget for 2006/07 and 2007/08 supports all of the aims of the corporate strategy by focusing financial resources in these areas:
(a) Maximising life opportunities
(b) Stewardship of the environment
(c) Achieving economic prosperity
(d) Building strong and safe communities
(e) Improving services
(f) Developing councillors and staff
1 Budget strategy
1.1 The Cabinet has set a provisional budget strategy based on the following guidelines:
For 2006/07:
· dedicated schools grant for schools
· base budget for all other services, adjusted for inflation on the same assumptions made in previous budget forecasts - 2.95% for pay increases to reflect national agreements, 2.5% for price increases and 1.5% for the increase in employer's contributions to the Local Government Pension Scheme
· an extra £3.4m for social care above the base budget level to recognise extra demographic and other pressures in line with the increase to national spending plans
For 2007/08:
· dedicated schools grant for schools
· base budget for all other services, adjusted by 2.5% for pay increases (following the Chancellor's recent announcement to bear down on national pay awards - in line with the teachers' pay settlement of 2.5%), 2.5% for price increases and a 1.2% rise in employer's pension contributions
· an extra £3.9m for social care above the base budget level
1.2 In arriving at the base budget Executive Members are required to ensure that:
· income will be maximised by reviewing charges and introducing new income wherever possible in excess of the 2.5% price inflation assumption, taking account of the powers to charge for discretionary services in the Local Government Act 2003
· any proposals for spending above the budget guideline are matched by cashable efficiency savings
· all proposals for additional spending, however financed, are accompanied by a summary business case containing clear financial and performance data setting out how performance will be improved and value for money achieved, and how it links to the key aims of the Corporate Strategy
· staffing implications of proposed budgets are identified for inclusion within the service's workforce plan
1.3 There is also a requirement to identify annual efficiency improvements of at least 2.5% for the annual efficiency statement. These need to be integrated into budget planning and categorised into cashable and non-cashable. Cash savings in budget terms will be required to meet new pressures and service development proposals.
2 Budget guidelines
2.1 The budget guidelines were considered by the Cabinet on 19 December 2005. For this service, the provisional budget guidelines are:
For 2006/07 £99.5m
For 2007/08 £101.3m
2.2 This report sets out the Executive Member for Environment: South Hampshire Resource Management's responses to the guidelines. The report:
· reviews the revised budget for 2005/06 (as set out in Appendices 1, 2 and 3)
· reviews the 2006/07 base budget which totals £99.5m (as set out in Appendix 4)
· identifies £2.1m of pressures and growth proposals (as set out in Appendix 5)
· proposes the redeployment of £2.1m of resources and other savings (as set out in Appendix 5)
· identifies efficiency improvements of £1.7m, being 1.7% of the base budget (as set out in Appendix 6)
· reviews the charges made by this service (as set out in Appendix 7)
· identifies the workforce implications of the budget proposals (as set out in Appendix 8)
· proposes a detailed budget for 2006/07 (as set out in Appendix 9)
· reviews the trading accounts of business units (as set out in Appendix 10)
· proposes a provisional budget for 2007/08 (as set out in Appendix 11)
3 Revised Budget 2005/06
3.1 The most recent 2005/06 budget monitoring report in November drew attention to a number of issues including adjustments to the revenue budget cash limit, increasing the overall budget sum to £94.935 million. The report also identified that following the implementation of savings earlier in the year, to offset higher costs of bus service re-tendering and commercial service de-registrations, there would be a residual pressure of £130,000 on the budget for public transport bus subsidies that would need to be managed within the overall Environment services' cash limit.
3.2 A further review of the 2005/06 budget position has recently been carried out within the Environment department during December. The review has taken into account progress in implementing spending plans and recent information on trends in expenditure and income, in order to arrive at a revised budget for 2005/06. The main issues arising from the budget monitoring review are discussed in the following paragraphs.
Cash limit changes
3.3 As mentioned above, the most recently reported figure for the 2005/06 revenue budget cash limit was £94.935 million in November. This figure included a number of changes to the cash limit agreed earlier in the year, including the first quarter's call of £931,000 on the central waste management contingency, to reflect the estimated additional costs of operating the waste disposal contract during the first three months of the year.
3.4 A number of further changes to the 2005/06 cash limit have recently been made:
· An increase of £861,000 for the assessed call on the central waste management contingency, to reflect additional expenditure arising from the operation of the waste management contract during the second quarter of the year
· An increase of £53,000 reflecting an additional inflation allocation to cover increased costs of business rates
· A budget transfer of £22,000, agreed by the Cabinet on 26 September 2005, to provide for continued funding of evening transport services in Andover as part of the Council's youth initiatives
· Various other minor transfers and adjustments, amounting to a net increase of £2,000
3.5 The adjusted 2005/06 cash limit is £95.873 million, taking into account the above variations. A full summary, detailing all of the changes to the 2005/06 cash limit that have been made since the beginning of the year, is set out in Appendix 1.
Highways maintenance
3.6 The recommended revised budget for highways maintenance is £21.960 million. This figure is £105,000 below the highways maintenance cash limit reflecting a proposed request that an estimated underspending against the provision included in the 2005/06 highways maintenance programme, for IT system development and running costs in connection with the implementation of the Traffic Management Act, be carried forward to the 2006/07 budget. The underspending has arisen because of a delay by the Government in implementing the legislation. The carry forward of this sum would release funding from within the 2006/07 budget, to help offset one-off pressures on next year's budget.
3.7 Appendix 3 sets out details of the revised 2005/06 highways programme for routine maintenance, showing variations against the earlier forecasts in the previous budget monitoring report. Highway reserves currently total £436,000 although approximately £100,000 of this sum is earmarked to cover a number of contractual claims. The balance of the highways maintenance reserve would enable phased allocations to be made during the remainder of the year to meet any unforeseen demands on the routine maintenance budget, for example, contributions towards the cost of any winter weather related flood or storm damage repairs.
School crossing patrols
3.8 A 2005/06 revised budget of £920,000 is proposed for expenditure on school crossing patrols, which is £50,000 below the cash limit for this service. This saving has mainly arisen on the employment of school crossing patrol officers, reflecting continuing difficulties in the recruitment and retention of these staff. As in previous years, some additional provision is included within the budget for further site improvements and additional recruitment campaigns. However, it is proposed that a sum of £50,000 be released in the revised budget, to meet spending pressures on other parts of the Environment services' budget.
Waste management
3.9 The County Council's 2005/06 budget includes a sum of £4.730 million to cover inescapable service pressures arising from growth in waste volumes beyond predicted 2004/05 levels, future price increases, increases in landfill tax and other contract cost pressures. Periodic allocations are made from this contingency to the waste management budget, based on quarterly assessments of cost increases on the waste contract and related budgets.
3.10 Waste volumes during the first half of the year were lower than assumed in the 2005/06 budget. Household waste volumes rose by only 1.0% during this period, below budgeted expectations of growth of 2.0%, whilst civic amenity waste volumes fell by over 4% during the same period. Overall, waste volumes were just under 1% lower than during the same period of 2004/05, although it is not possible to predict whether this trend will continue across the full year.
3.11 The overall call on the waste management contingency, to cover higher costs in operating the waste contract during the first half of the year, has been assessed at £1.792 million, leaving just over £2.9 million to cover higher expenditure during the remainder of the year. It is currently estimated that waste contract related expenditure will be contained within the overall budget allowance during 2005/06.
3.12 Expenditure on other parts of the waste management services is expected to be in line with the budget apart from expenditure in connection with the disposal of abandoned vehicles, which is forecast to be underspent by £100,000. This projected saving reflects the continued buoyant market for scrap metal and is available for redistribution to help offset pressures elsewhere within the Environment services' budget.
Public transport support
3.13 A number of minor variations to the public transport budget have been identified during the recent review, but these variations are offsetting and the underlying position still shows a projected overspending of £130,000 on this division of service. As mentioned earlier in this report, this increase reflects the net part year effect of cost increases and savings agreed earlier in the year. The additional expenditure of £130,000 is included in the recommended revised budget and can be accommodated by partially utilising the available savings, totalling £150,000, that have been identified on the budgets for school crossing patrols and disposal of abandoned vehicles.
Management and support services
3.14 The recommended revised budget for management and support services is £23.236 million. This makes allowance for an anticipated underspending of £150,000 arising from some slippage in fully implementing new arrangements for the asset management approach for highways, included in the 2005/06 original budget. It is recommended that a request be made to allow this anticipated underspending to be carried forward, to enable this work to be completed in 2006/07.
3.15 As has been reported in previous budget monitoring reports, the departmental budget for management and support services includes an allowance of approximately 3% for incidental savings that are expected to arise each year, as a matter of routine, from staff turnover and normal delays in filling vacant posts. Overall savings during the year have so far been lower than expected, but the position is being managed to contain expenditure to the cash limit on this division of service.
3.16 To help achieve this outcome, it is proposed that the management and support services budget be increased by £20,000, representing the redistribution of that part of the £150,000 savings arising on the budgets for school crossing patrols and the disposal of abandoned vehicles, which are not required to cover the higher expenditure of £130,000 on public transport.
Summary of 2005/06 revised budget position
3.17 Detailed figures relating to the 2005/06 revised budget are shown in Appendix 9 (the green pages), whilst Appendix 2 sets out the recommended 2005/06 revised budget summarised by division of service.
3.18 Overall, the recommended revised budget is £95.618 million, being £255,000 below the 2005/06 cash limit of £95.873 million. This variation reflects the request that is being made to carry forward projected underspendings of £105,000 on the Traffic Management Act and £150,000 in relation to the development of an asset management approach for highways maintenance.
3.19 The most recent budget monitoring review has confirmed the need for additional provision of £130,000 to cover estimated higher expenditure on public transport. This can be accommodated within the construction of the revised budget by partially utilising savings of £50,000 on school crossing patrols and £100,000 on the waste management budget for the disposal of abandoned vehicles. It is recommended that the £20,000 balance of these savings, not required to cover higher expenditure on public transport support, be allocated to management and support services to help manage the savings requirement on that budget.
4 Base Budget 2006/07
4.1 A base budget has been prepared which contains the current financial policies of the Council, in order to provide a starting point from which decisions can be made. The base budget for this service is £99.523 million.
4.2 Appendix 4 shows the make up of the base budget. Overall, the base budget reflects a net increase in expenditure of £2.190 million, at constant (November 2005) prices, together with an allocation of £1.788 million to cover future inflation during 2006/07. The main variations affecting the individual services are discussed below.
Highways maintenance
4.3 The 2006/07 base revenue budget provision for routine highways maintenance is £22.528 million, at November 2005 prices, representing an increase of £517,000 (+2.3%) at constant prices, compared to the 2005/06 original budget. The base budget includes additional sums of £93,000 to cover routine maintenance of recently adopted highways and £160,000 for additional revenue expenditure resulting from the implementation of capital improvement schemes, both of which have been added in accordance with the base budget preparation rules.
4.4 The budget also includes increased funding of £210,000 for highways winter maintenance salting and snow clearance, which has been met by reducing the locally resourced capital programme provision for structural maintenance schemes. This base budget adjustment is in accord with the special budgeting arrangements that apply to winter maintenance, whereby the base budget provision is set at a level equivalent to the average expenditure on this activity during the past four years. A corresponding variation to offset any increases or reduction in the winter maintenance provision is then made to the allocation to highways structural maintenance. The increased funding of £210,000 for winter maintenance in the 2006/07 base budget can therefore be regarded as a budget pressures insofar as it reduces the sums available for structural maintenance works such as resurfacing or surface dressing.
4.5 The County Council is still receiving special grant from the Government in respect of its responsibilities for part of the A339, following the de-trunking of this highway in 2003/04. Provision of £428,000 is included in the 2006/07 base budget for this grant, in line with the sum receivable during the current year, which is £10,000 higher than the sum included in the 2005/06 original budget.
4.6 The other variation within the 2006/07 highways maintenance base budget relates to the difference between the assessment of actual inflation on highways maintenance during 2005/06 compared with the corporate allowance of £518,000 (2.5%) included in the original budget. Actual inflation during 2005/06 has been assessed at £474,000 (2.3%), reflecting the impact of certain fixed price contracts on the overall inflation calculation, which is £44,000 lower than the corporate allowance. This sum would be available within the 2006/07 highways maintenance budget to help offset pressures arising from higher prices during 2006/07.
Public transport
4.7 The 2006/07 base budget for public transport support and co-ordination has been set at £7.705 million at November 2005 prices, in line with the control total for this service. The calculation of the base budget includes higher inflation costs of £184,000, compared with the 2.5% allowance for inflation included in the current year's original budget, reflecting higher costs from contract re-tendering and re-pricing during 2005/06. The base budget makes full allowance for the implementation of the various bus service reductions that have been introduced this year to absorb this and other cost pressures.
4.8 Within the above total public transport provision, the bus subsidies base budget for 2006/07 is £5.440 million. This sum is currently sufficient to fully cover estimated expenditure on existing bus service contractual commitments, but leaves virtually no scope for the accommodation of any additional costs from contract re-tendering, re-pricing, or other service pressures during 2006/07. This issue is discussed more fully in considering growth and redeployment proposals, later in the report.
4.9 Provision of £1.464 million has been included in the 2006/07 base budget for the provision of rural bus services, in line with the actual grant sum receivable for 2006/07, as recently notified by the Government.
Management and support services
4.10 This budget mainly represents the running costs of the Environment department, together with expenditure relating to a number of highways agency functions carried out by the district councils within Hampshire. For presentational purposes, the management and support services budget is allocated between the highways and transportation and planning and development services in the appendices, in order to comply with the requirements of the relevant accounting codes of practice. However, in effect, this expenditure is being managed and controlled as one combined departmental budget.
4.11 The 2006/07 base budget for management and support services is £23.283 million, which is £203,000 (+0.9%) higher than the 2005/06 original budget, at constant prices. A number of transfers and technical adjustments are included in the construction of the base budget, the most significant being increases in respect of the highway land assets project (+£30,000), additional legal support in connection with legal agreements relating to the generation of capital receipts and developers' contributions (+£130,000) and the rural pathfinder project (+£50,000). Details are set out in Annex 3 to Appendix 4.
4.12 The budget strategy assumes that the cost of staff salary increments and other ongoing back office cost increases identified during the base budget roll-forward process are absorbed. The 2006/07 base budget makes allowance for an increase in expenditure of £474,000 to cover these costs and to provide for a small reduction in the annual allowance included in the budget for turnover savings that are likely to arise during the year from incidental staff turnover and the normal delay in filling staff vacancies.
4.13 The absorption of this increase has been achieved within the construction of the 2006/07 base budget by deleting items of non-recurring expenditure, using savings from supplies and support services and by including additional anticipated income from external fees and cost recovery against the capital programme.
Waste management
4.14 A base budget of £42.726 million has been set for the waste management services for 2006/07. In considering the key elements in the calculation of the base budget, it is necessary to divide this service into two distinct categories:
· The waste contract related services, comprising the main waste disposal contract, together with related budgets covering trade waste income and recycling credits. This base budget for this element is £39.795 million, equivalent to 93% of overall waste management expenditure
· Other waste management services, including facility maintenance, administration, promotions and developments, the disposal of abandoned vehicles and household waste recycling centres (HWRC) management costs. This part of the base budget accounts for £2.931 million, or 7% of overall waste management spending.
Waste contract related budgets
4.15 As the contract related waste management services are principally demand led and are subject to long term contractual obligations, thus providing very little scope within the overall management of the service to vary expenditure, special guidelines have been agreed by the Cabinet relating to the construction of the annual base budget.
4.16 The base budget allows for the cost of current contractual commitments, which include known and estimated waste tonnages for the current financial year, at January 2005 prices. The contract is subsequently re-priced each year, on 1 January, in line with changes in the Retail Prices Index (RPI). The 2006/07 base budget for the contract related services reflects increases of £1.624 million (4.5%) for inflation, covering both the contract re-pricing in January 2005 and the increase in landfill tax in April 2005, together with £1.680 million (4.4%) in respect of other cost increases. This later figure includes a technical adjustment of £61,000 relating to the transfer of expenditure in connection with Zone C landfill between the budgets for contract related and non-contract related services.
4.17 No allowance has been included in the calculation of the base budget for any future growth in waste volumes beyond 2005/06 levels, future price or landfill tax increases, or other potential service related pressures. As in previous years, a central contingency sum, under the control of the Cabinet, will be provided within the overall County Council budget to meet these estimated costs during 2006/07. Quarterly allocations will be made to the waste management budget in line with actual cost increases incurred during the next financial year.
Other waste management budgets
4.18 Base budgets totalling £2.931 million have been set for the other waste management services, in line with the relevant control totals, based on a roll forward of the 2005/06 situation. The base budget is expected to be sufficient to match the likely level of expenditure on the various non-contract related services next year. However, as in 2005/06, there is scope to re-deploy anticipated savings from the budget for the disposal of abandoned vehicles, based on an anticipation that the buoyant market for scrap metal will continue during 2006/07. This issue is discussed further later in this report.
5 Cost pressures, redeployment proposals and efficiency improvements - 2006/07 and 2007/08
5.1 The Cabinet requires all services to consider and report on:
· cost pressures absorbed within the budget guidelines
· the redeployment of any resources required to offset any new spending priorities, or inescapable budget pressures, or legislative requirements which otherwise cannot be met within the budget guidelines
· annual efficiency improvements
5.2 Details of additional cost pressures of £2.052 million in 2006/07, rising to £2.562 million in 2007/08, offset by equivalent redeployment proposals are set out in Appendix 5.
Budget pressures and new spending proposals
5.3 The following paragraphs set out a number of service pressures and proposals for additional expenditure that cannot be included within the definition of the base budget. The proposals are considered under the following main service headings:
· Highways maintenance
· Public transport
· Planning and development
· Waste management
Highways maintenance
5.4 Street lighting energy - the overall base budget provision for energy for street lights, illuminated signs and bollards and traffic signals is £2.2 million per annum, at estimated 2006/07 outturn prices. The current contract for energy expires at the end of the current financial year and a tendering process to cover future energy supply from April 2006 onwards has just been completed. Energy prices in the wider economy have increased significantly since the current energy supply contract came into operation and a 56% price rise will apply for next year, resulting in an increase of £1.0m.
5.5 Highway tree management - additional expenditure of £200,000 is needed next year, increasing to £300,000 in 2007/08, to implement more pro-active policies for highways tree management, to reduce risk to members of the public from falling trees and branches. There is also a pressing need to undertake additional one-off tree maintenance work along double deck bus routes, the estimated cost in 2006/07 being £100,000. Not undertaking this latter work would create a budget pressure of circa £1 million per annum on the budget for school transport, as single deck buses would need to be introduced by the transport providers.
5.6 Winter maintenance - additional expenditure on winter salting and snow clearance has been incurred during the past two years, which has led to an increase in the four-year average level of expenditure, on which the base budget provision for the forward year is based. As discussed in paragraph 5.4, an increase of £210,000 is required within the revenue budget for routine highways maintenance for winter maintenance in 2006/07, which has been met by transferring an equivalent sum from the locally resourced provision for capital structural highways maintenance. A further estimated transfer of £320,000 would need to be made in preparing the 2007/08 base budget. In effect, these transfers create a pressure on the highways structural maintenance programme and reduce the volume of work that could be undertaken from the remaining budget. As highways structural maintenance is seen as the Environment services' highest priority activity, it is proposed that an offsetting increase be made to the capital highways structural maintenance budget of £210,000 in 2006/07 and £320,000 in 2007/08, to be met by re-deploying resources from elsewhere within the base budget.
5.7 Technical surveys - additional provision of £105,000 per annum is required to cover the additional cost of implementing new condition assessment methods required by the Government.
Public transport support
5.8 Bus subsidies - a programme of changes to the subsidised bus network has been implemented during 2005/06 to absorb the full year higher cost of contract re-tendering and service de-registrations during the current year. However, further significant cost pressures are expected to arise during 2006/07 from further contract re-tendering in the New Forest, Havant and Alton areas, together with the possibility of further de-registration of commercial services. It is estimated that the overall cost of maintaining the current level of bus services could increase by between £300,000 and £500,000 next year, with a further increase of £300,000 in 2007/08.
5.9 Community transport - additional costs of maintaining Cango services will begin to fall on the revenue budget from 2006/07 onwards as external Government funding from Bus Challenge and Rural Transport Partnership begins to run out. It is estimated that an additional £80,000 would be required to maintain services in 2006/07, with a further increase of £190,000 in 2007/08.
5.10 Ferries - additional subsidy provision of £10,000 per annum is required to support the continued operation of the Hythe and Hayling Island passenger ferries. Operating costs for these services, including pontoon charges, are currently increasing faster than the normal budget allowance for inflation
Planning and development
5.11 Minerals and waste - additional provision of £75,000 is required to cover the development plan shortfall and for specialist consultancy advice (e.g. noise advice etc).
5.12 Information technology - an extra £52,000 per annum is needed to provide for minerals and waste ICT system development and maintenance, and e-government, including site and monitoring system requirements for minerals and waste.
Waste management
5.13 Waste management administration - a proposal is made to add a further four staff to the department's waste management section to strengthen contract management and administrative support in the first instant, followed by additional support for developments, communications and research and information. This would provide sufficient resources to help manage change, maximise performance and help to minimise budget growth within the waste management services. The cost of these additional four staff is estimated at £200,000 per annum, including related on-costs.
5.14 Efford landfill site - an additional sum of £20,000 per annum is needed to cover ongoing monitoring activities at this site which were previously funded by an external contribution for a time-limited period.
5.15 External funding for the Project Integra `Recycle for Hampshire' campaign expires in March 2006. The Project Integra Board has agreed in principle to extend the programme for a further two years, subject to receiving the detailed analysis of the outcomes and funding being identified. The expected cost is £0.7m per annum. Further funding from the national Waste and Resources Action Programme is anticipated to support this work, but Project Integra partners have been asked to underwrite the full costs at this stage, by assigning up to 25% of the increase in the Waste Performance and Efficiency grant they expect to receive. In Hampshire County Council's case, additional grant of £900,000 has been confirmed for 2006/07. Up to £225,000 will need to be earmarked until WRAP funding support levels are announced at Easter. While the County Council needs to plan for increased investment in infrastructure, if the programme is successful in reducing contamination, increasing recycling levels and/or reducing waste growth, it will reduce costs of disposal and increase performance against BVPIs. This is therefore expected to be an invest to save programme and be cost neutral overall.
Proposals for redeployment of resources
5.16 The following paragraphs discuss proposals for efficiency and other savings, including the redeployment of resources, to offset the pressures and new spending measures totalling £2.052 million in 2006/07, set out in paragraphs 6.3 to 6.14 above. The proposals are considered under the following main service headings:
· Highways maintenance
· Public transport
· Highways management and support services
· Planning and development
· Waste management
· Other services
Highways maintenance
5.17 Construction Lean Improvement Programme (CLIP) - work is currently being undertaken through the CLIP initiative by the County Council and Raynesway Construction Southern (RCS), the County Council's highways term maintenance contractor, to identify opportunities for more efficient collaborative working within the term maintenance contract. Although much work still needs to be done to take these ideas forward, including how actual savings can be extracted from improvements to current processes and how they might be shared between the County Council and RCS, it seem reasonable at this stage to include a target of £100,000 for efficiency savings in the 2006/07 budget, rising to £250,000 in 2007/08. The realisation of these changes may be dependent on the term contractor's acceptance of an extension to the contract to May 2008.
5.18 Income - a target of £150,000 additional income in 2006/07 is included in the budget proposals, which would be achieved by seeking to collect additional developer contributions towards the future cost of maintenance as well as improvements. Increases to licence fees are also expected to generate additional income in future years.
5.19 Traffic Management Act - the recommended revised budget for 2005/06, set out in paragraph 4, includes a proposal to carry forward to the 2006/07 budget a projected underspending of £105,000, following delays by the Government in implementation of the Traffic Management Act. This would enable an ongoing saving of £75,000 to be released from within the 2006/07 base budget, relating to a number of non-recurring items of expenditure that would instead be met from the carried forward sum.
5.20 IT system development - a saving of £50,000 is possible reflecting a reduced requirement in 2006/07 for the development of highways maintenance specific information technology systems.
5.21 Efficiency savings - a number of highways maintenance related cashable efficiencies have been identified, totalling £98,000. These are expected to be achieved from the greater use of type 3 sub base material in highway works, greater use of infra-red patching techniques, recycling initiatives relating to surface dressing chippings and changes to the specification of street lighting materials.
Public transport
5.22 As mentioned above in paragraph 6.8, it is expected that the budget for bus subsidies will experience further pressure in 2006/07 and 2007/08 from higher re-tendering prices and commercial services de-registrations in response to increasing costs within the bus industry. A further pressure of £80,000 in 2006/07, rising to £270,000 in 2007/08, will take place as external funding of Cango services runs out and the cost begins to fall on the revenue budget.
5.23 It is not proposed to increase the revenue budget to offset either the loss of Government grant or to meet cost pressures above the 2.5% inflation allowance. Detailed area reviews are underway to examine priorities and how best they can be met by a mix of conventional, demand responsive and community transport. The intention will be to redefine the network, enabling services to remain affordable within the current level of budget provision over the next two to three years. Although major changes to evening and Sunday services in particular are likely to be required, access to jobs, training, health and convenience shopping will be given the highest priority. Detailed proposals will be submitted for the Executive Member's decision as appropriate.
Management and support services
5.24 Network management - target savings of £100,000 in 2006/07 are proposed from within this branch, rising to £170,000 in 2007/08. These savings would be achieved across a number headings including the closure of at least one highways sub-unit and subsequent savings in rent and running costs, together with a wider review of staffing levels and office related expenditure in the highway units.
5.25 Traffic management - staff savings of £80,000 per annum are proposed which could be achieved by reducing the level of advice to the public and support to members (eg attendance at meetings) which is currently costing around £250,000 per annum. Further savings of £20,000 would be sought from the budget for advertising of traffic regulation orders, including the charging of relevant fees to capital schemes. Due to the time needed to implement changes, the total saving in 2006/07 is estimated at £60,000.
5.26 Intelligent transport systems - overall savings of £99,000 per annum have been identified. These relate to a decrease of £28,000 in this section's operational budget together with a reduction in staff, saving £71,000 per annum, with the total saving for 2006/07 set at £74,000.
5.27 Wider SHRT development - savings of £58,000 have been identified reflecting reduced provision for the development of future phases of the South Hampshire Rapid Transit project.
5.28 IT - savings totalling £30,000 per annum have been identified from reductions in software and hardware maintenance, support consultants and minor purchases.
Planning and development
5.29 Landscape planning and heritage - total savings of £571,000 in 2006/07 across a wide range of programme areas are proposed, including related staffing savings of £61,000. Programme reductions include a reduction in the locally resourced capital provisions for Regeneration of Older Urban Areas, Hampshire Villages Initiative, and environmental improvements (-£517,000). Proposed reductions to revenue budgets include listed buildings guidance
(-£26,000), AONB land management plans (-£5,000) and environmental projects and advice (-£23,000).
5.30 Natural resources and environment futures - savings totalling £132,000 are proposed from this area of the department's budget, including reduced operational support (-£73,000), removal of LIFE match funding (-£40,000), following the end of this project to restore wetland in the New Forest and staffing savings (-£19,000).
5.31 Ecology - further staff savings from the locally resourced capital programme provision for environmental improvements are proposed, which cover grazing and heathland projects (-£62,000), together with reductions in the revenue budget for operational support (-£2,000).
5.32 Spatial strategy - savings would include reduced support in the operational budget for studies and events (-£31,000), together with a reduction in the staffing budget for work in connection with urban areas (-£30,000).
5.33 Strategy and information - minor staffing savings of £9,000 are anticipated.
5.34 Income - anticipated income of £75,000 from Planning Delivery Grant (PDG) and higher site monitoring fees. Additional income from PDG of £85,000 was received during 2005/06 and a similar award is expected for 2006/07, but this has not yet been confirmed. Although PDG is expected to reduce in subsequent years, it is anticipated that higher planning fees, including site monitoring, would bridge the gap.
Waste management
5.35 Disposal of abandoned vehicles - in constructing the 2005/06 original budget, savings of £150,000 were re-deployed from the waste management budget for the disposal of abandoned vehicles, to meet pressures on other parts of the Environment services' budget. The 2006/07 base budget for abandoned vehicles is £358,000, which is at the same level as in 2005/06. Expenditure on this service was only £182,000 in 2004/05, reflecting the ongoing buoyancy of the market for scrap metal, and this position has continued into 2005/06 where additional savings of £100,000 have been identified in the revised budget. An equivalent saving of £100,000 is therefore proposed against the 2006/07 waste management base budget, as a contribution towards offsetting the planned additional expenditure of £220,000 in 2006/07 on waste management, set out in paragraphs 6.13 and 6.14 above.
5.36 Income - it is proposed that the remaining savings of £120,000 required to balance the waste management base budget be made by including anticipated savings on the waste contract related services, which would be generated by the additional staff proposed in paragraph 6.13. These are expected to arise from the myriad of planned new strategic funding sources and gains, including refinancing of the waste contract, additional performance reward grant, income from the recently introduced landfill allowance and trading scheme (LATS), spend to save initiatives and other external funding sources.
Other services
5.37 School crossing patrols - savings of £25,000 per annum are proposed, reflecting the reality of ongoing staff recruitment difficulties. This saving would potentially mean an inability to recruit to 12 sites. However, if recruitment campaigns to fill vacancies are successful, alternative savings would be identified from elsewhere within the Environment services' budget.
5.38 Road safety - economies of £5,000 per annum are possible in the road safety operational budget, resulting in a minor reduction in education, training and publicity activity that would be spread through the various activities of pedestrian training, young drivers campaigns, etc.
5.39 Traffic surveys - anticipated additional income of £5,000 per annum from sales of traffic data.
Reconciliation of overall revenue budget cash limit 2006/07
5.40 The overall effect on the 2006/07 revenue budget of the various proposals for additional expenditure and redeployment of resources set out above, is an increase of £369,000 to the revenue cash limit. This represents the extent to which proposals for redeployment of resources totalling £579,000 from the locally resourced provision for capital expenditure on environmental improvements (paragraphs 6.29 and 6.31) are partially offset by the transfer to capital structural maintenance of £210,000 to compensate for additional winter maintenance provisions, as discussed in paragraph 6.6.
5.41 In addition, proposals included within the report on the 2006/07 to 2009/10 capital programme elsewhere on this agenda, for the funding of integrated transport studies from revenue, result in a further partially offsetting transfer of £250,000 from revenue to the local resourced capital programme.
5.42 The net effect of the above transfers between the revenue budget and the capital programme produce a transfer of £119,000 to the 2006/07 revenue budget cash limit, which would also be increased by a further sum of £255,000 as a result of the recommended carry forward of underspendings from the 2005/06 budget, set out in paragraph 4.
5.43 The overall 2006/07 recommended revenue budget is therefore £99.897 million, as set out in the following table:
£'000 | |
Base budget 2006/07 |
99,523 |
Underspendings carried forward from 2005/06 |
255 |
Net effect of transfer between capital and revenue |
119 |
99,897 |
Efficiency improvements
5.44 The County Council is required to identify annual efficiency improvements of at least 2.5% for the annual efficiency statement (AES). At least 1.25% of the improvements in each year needs to be `cashable' in the Government's terms. These occur when inputs (money, people, assets etc) are reduced but outputs remain unchanged or when the price of inputs are reduced but outputs remain unchanged. However, not all cashable efficiency savings in AES terms provide usable cash in budget terms. For example, absorbing the cost of increments within the base budget counts towards the AES but does not generate new budget provision.
5.45 Appendix 6 identifies efficiency improvements totalling £1.7m (1.7%). Of these, £0.8m (0.8%) represents usable savings that have been taken into account in the construction of the proposed 2006/07 revenue budget and 2006/07 to 2009/10 capital programme.
6 Review of charges
6.1 The services' 2006/07 revenue budget includes estimated income of approximately £8.1 million from fees, charges and reimbursements. Details of the main sources of income are included in Appendix 7.
6.2 There are some mandatory and national charges which the County Council is unable to vary, the main example for the Environment services being planning application fees. Most other charges to users are designed to ensure full recovery of costs, including an appropriate contribution towards departmental overheads. Wherever possible charges are reviewed regularly in accordance with financial regulations, or rise automatically in line with increases in costs. Anticipated additional income from higher licence fees and site monitoring fees is included in the recommended 2006/07 budget.
6.3 Charges for the two main waste management sources of income, namely disposal site rentals and trade waste, are increased from the beginning of January each year in accordance with price increases applied to the long-term waste disposal contract. This is based on a formula contained within the contract which effectively provides for an increase based on the change in the retail prices index (RPI) to the previous October. The charge for trade waste is currently subject to a further flat rate increase in April, to reflect increases in the cost of disposal arising from variations in the rate of landfill tax.
7 Other expenditure
7.1 The budget includes some items which are not counted against the cash limit. At the present time, this includes the budget for capital charges of £30.4 million, which is allocated to services to show the full cost of service provision, together with £0.7 million for supplementary levies from the three divisions of the Environment Agency, in relation to the County Council's responsibilities for the funding of flood protection. Adjustments to the budget have also been made for pension and early retirement costs, in accordance with Financial Reporting Standard 17 (FRS 17).
7.2 Further adjustments to the 2006/07 budget in respect of non-cash limited expenditure will be made later on in the budget preparation process, to cover central departments' support services and for repairs and maintenance of buildings. These costs have been excluded at this stage because Policy and Resources control this expenditure and budgets for 2006/07 have not yet been agreed.
7.3 Included within the Environment services' cash limit are costs relating to member support, which will be recharged to the Policy and Resources budget for corporate and democratic core services at a later stage in the budget process.
8 Workforce levels and costs
8.1 The workforce implications of the proposed budget are set out in Appendix 8. The 2006/07 base budget supports an estimated 784 full time equivalent (FTEs) staff, which is unchanged compared to the original estimate for 2005/06.
8.2 The proposals relating to service pressures, efficiency savings and other redeployment of resources, as set out in Appendix 5, result in an estimated net reduction of 10 FTEs in 2006/07, rising to 12 FTEs in 2007/08. In considering the implementation of the various budget savings set out in this report, wherever possible the required reductions in staffing will be achieved by deleting any vacant posts in the affected sections, together with maximising opportunities for the redeployment of staff to elsewhere within the organisation. However, is it possible that some redundancies may be necessary to fully implement these budget proposals and in reconfiguring service delivery within the Environment department.
8.3 It is anticipated that it will be necessary to undertake additional organisational changes during 2006/07, leading to further staff reductions. This would include a review of senior management together with a reconfiguration of area service delivery arrangements and a review of staff structures following the implementation of the Council's pay and benefits project, which would otherwise increase employee costs. It will be necessary, in due course, to prepare business cases requesting the allocation of funding to meet any consequential redundancy or early retirement costs during 2006/07.
9 Business units
9.1 The trading account for the River Hamble is summarised in Appendix 10.
10 Provisional budget for 2007/08
10.1 The provisional budget for 2007/08 for this service is £101.3m at outturn prices, as set out in Appendix 11.
11 Impact assessment
11.1 In compiling this report account has been taken of the County Council's race and equalities policies.
12 Accounting code of practice
12.1 Appendix 9 of this report showing the detailed budget (the green pages) has been prepared in accordance with the service expenditure analysis required by CIPFA in the relevant accounting code of practice. This presentation varies somewhat from the division of service headings which are used to present the budget in this report, which reflect the reality of how budgetary control is exercised within the department.
12.2 This mainly affects the presentation of the budget for the highways and transportation services, where the total revenue budget for highways maintenance is split over three standard service headings to differentiate between structural, routine and traffic management related expenditure. In addition, the budget for management and support services, which is retained as a separate heading during budget preparation to enable departmental running costs to be considered separately from front-line service expenditure, is subsequently fully apportioned over the other divisions of service.
12.3 For the planning and development services, the total cash limited expenditure is initially shown against the management and support services heading before being re-allocated over the standard service headings prescribed by the accounting code of practice. Similarly, on the waste management services, a separate analysis is included within the detailed budget pages to meet these requirements.
Recommendation
1 That the Environment Policy Review Committee endorse the proposals for the revenue budget 2006/07 and provisional budget for 2007/08, that have been prepared in consultation with the Executive Member for Environment: South Hampshire and Resource Management, prior to formal approval of the budget proposals by the Executive Member for submission to the Cabinet.
Section 100 D - Local Government Act 1972 - background papers
The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.
NB the list excludes:
1. Published works.
2. Documents which disclose exempt or confidential information as defined in the Act.
(a) Executive Member for Environment: South Hampshire and Resource Management: 8 November 2005 - Revenue Budget Monitoring 2005/06.
(b) Cabinet: 19 December 2005 - 2006/07 and 2007/08 Provisional budget and capital programme guidelines.
Appendices
Appendix |
Colour | |
1 |
Revised budget 2005/06 - calculation of the cash limit |
yellow |
2 |
Revised budget 2005/06 - comparison with cash limit |
yellow |
3 |
Summary showing detailed allocation of highways maintenance budget |
yellow |
4 |
Base budget 2006/07 - summary of cash limit |
pink |
4 - Annex 1 |
Base budget 2006/07 - definition of base budget |
pink |
4 - Annex 2 |
Base budget 2006/07 - significant costs of inflation |
pink |
4 - Annex 3 |
Base budget 2006/07 - significant variations from 2005/06 repriced budget |
pink |
4 - Annex 4 |
Base budget 2006/07 - analysis of variations |
blue |
5 |
Proposals for growth and redeployment 2006/07 and 2007/08 |
yellow |
6 |
Efficiency statement |
yellow |
7 |
Review of income 2006/07 |
yellow |
8 |
Workforce levels and costs 2005/06 - 2007/08 |
blue |
9 |
Revenue Budget 2006/07 - budget book detail |
green |
10 |
Business units - summarised trading accounts |
white |
11 |
Provisional budget 2007/08 |
pink |
Appendix 1
Environment
Revised budget 2005/06
Calculation of the cash limit for the revised budget 2005/06
The following table shows the progression from the original budget for 2005/06 to the cash limit for the revised budget 2005/06. Both are at estimated outturn prices 2005/06.
£'000 |
£'000 | ||||
Original budget 2005/06 at outturn prices |
93,730 | ||||
Transfers to/from other services and contingency allocations: |
|||||
IT - rebase budget for SAP and mainframe de-commissioning |
100 |
||||
Youth initiatives - continued funding for evening transport in Andover |
22 |
||||
Allocation from corporate provision for procurement savings |
-131 |
-9 | |||
= Adjusted original budget |
93,721 | ||||
Inflation Provision added since the original budget for: |
|||||
Business rates |
53 | ||||
Variations in Government grants: |
|||||
A339 de-trunking special grant |
10 |
||||
Planning delivery grant |
85 |
95 | |||
Allocations from 2004/05 corporate underspendings |
|||||
Rural pathfinder - allocation from 2004/05 corporate underspending |
50 |
||||
Trafalgar 200 transport - allocation from 2004/05 corporate underspending |
4 |
54 | |||
Transfers from locally resourced capital programme |
|||||
Legal - additional legal support to capital programme |
130 | ||||
Other variations: |
|||||
50% share of 2004/05 revenue underspending |
8 |
||||
Highways land assets project |
30 |
38 | |||
Waste management contingency: |
|||||
Allocation for quarter 1 |
931 |
||||
Allocation for quarter 2 |
861 |
1,792 | |||
Virement between services |
|||||
Corporate communications re: SE Plan consultation |
-10 | ||||
= Cash limit for the revised budget 2005/06 |
95,873 | ||||
Appendix 2
Environment
Revised budget 2005/06
Summary comparing the revised budget with the cash limit
Cash limited expenditure |
Cash Limit |
Revised Budget |
Variation | |
£'000 |
£'000 |
£'000 |
% | |
Highways and transportation |
||||
Highways maintenance |
22,065 |
21,960 |
-105 |
-0.5 |
Road safety education |
230 |
230 |
- |
- |
School crossing patrols |
970 |
920 |
-50 |
-5.2 |
Traffic surveys |
228 |
228 |
- |
- |
Parking services |
-95 |
-95 |
- |
- |
Public transport support & co-ordination |
6,245 |
6,375 |
130 |
2.1 |
Rural Bus Subsidy Grant |
1,429 |
1,429 |
- |
- |
Management and support services |
19,058 |
18,928 |
-130 |
-0.7 |
50,130 |
49,975 |
-155 |
-0.3 | |
Planning and development |
||||
Development control |
568 |
568 |
- |
- |
Planning policy |
2,930 |
2,930 |
- |
- |
Environment initiatives |
708 |
708 |
- |
- |
Economic development |
19 |
19 |
- |
- |
Community development and other projects |
83 |
83 |
- |
- |
4,308 |
4,308 |
- |
- | |
Waste management |
||||
Contract and related services |
38,283 |
38,283 |
- |
- |
Other waste management services |
2,992 |
2,892 |
-100 |
-3.3 |
41,275 |
41,175 |
-100 |
-0.2 | |
Other services |
||||
Reservoirs Act 1975 |
26 |
26 |
- |
- |
Chichester Harbour Conservancy |
134 |
134 |
- |
- |
160 |
160 |
- |
- | |
Total |
95,873 |
95,618 |
-255 |
-0.3 |
Appendix 3
Environment
Revenue budget 2005/06
Summary showing detailed allocation of highways maintenance budget
Operational heading |
Approved programme as at 30 Sept 2005 |
Revised programme as at 31 Dec 2005 |
£'000 |
£'000 | |
Ordinary maintenance |
||
Routine carriageway and footways running repairs |
3,641 |
3,641 |
Gully cleansing |
1,019 |
1,019 |
A321 routine maintenance - payment to Surrey County Council and BVR pumping stations |
22 |
22 |
Aids to movement |
1,284 |
1,284 |
Hazard clearance (road traffic accidents) |
419 |
484 |
Traffic Management Act |
105 |
2 |
Traffic control |
906 |
935 |
Traffic and travel information |
430 |
441 |
Rechargeable accident damage |
176 |
180 |
Grass cutting, trees and shrubs maintenance |
2,285 |
2,330 |
Weed control |
594 |
594 |
Arboricultural |
498 |
510 |
Sub total - ordinary maintenance |
11,379 |
11,442 |
Street lighting and illuminated signs |
||
Energy - street lights |
1,785 |
1,785 |
Energy - signs and bollards |
112 |
112 |
Energy - traffic signals and crossings |
249 |
249 |
Maintenance contract - street lights |
2,867 |
2,930 |
Maintenance contract - signs and bollards |
420 |
430 |
Special replacement programme - works |
1,456 |
1,483 |
Special replacement programme - scheme design fees |
52 |
52 |
Consultancy support |
20 |
20 |
Sub total - street lighting and illuminated signs |
6,961 |
7,061 |
Bridges |
||
Routine maintenance |
60 |
60 |
Subway pumps - maintenance and energy |
20 |
20 |
Subway graffiti cleaning |
180 |
187 |
Disused railway bridges |
5 |
5 |
Weight restriction signing |
26 |
26 |
Monitoring of substandard bridges |
5 |
5 |
Bridge inspections |
6 |
6 |
Sub total - bridges |
302 |
309 |
Other items |
||
Technical surveys |
375 |
390 |
Depots maintenance |
142 |
142 |
Micheldever depot repairs |
200 |
225 |
Highways maintenance IT system development |
544 |
544 |
Contractual claims |
72 |
72 |
Joint HCC/RCS programmes |
30 |
30 |
General reserves - to meet unforeseen demands |
457 |
436 |
General reserves - inflation contingency |
333 |
- |
Previous year's accounting adjustments |
- |
-16 |
Sub total - other items |
2,153 |
1,823 |
Winter maintenance |
2,330 |
2,388 |
Income |
||
Depots net rentals |
-138 |
-138 |
Rechargeable works |
-116 |
-119 |
Private street works interest from frontagers |
-6 |
-6 |
Allocation from commuted sums for soakaways maintenance |
-450 |
-450 |
Developers' contributions |
-50 |
-50 |
Term maintenance contract turnover discount |
-300 |
-300 |
Sub total - income |
-1,060 |
-1,063 |
Total highways maintenance programme |
22,065 |
21,960 |
Reconciliation to revenue budget |
||
Approved 2005/06 revenue budget - February 2005 |
22,131 |
22,131 |
A339 de-trunking - Government grant variation |
10 |
10 |
Transfer to management and support services budget to cover additional fees on environmental budgets |
-33 |
-33 |
Transfer to management and support services budget to cover drainage project fees |
-19 |
-19 |
Allocation of procurement savings |
-24 |
-24 |
Traffic Management Act - carry forward underspending to 2006/07 |
- |
-105 |
Total 2005/06 highways maintenance revenue budget |
22,065 |
21,960 |
Appendix 4
Environment
Revenue budget 2006/07
Construction of the base budget 2006/07 - summary of cash limited expenditure
The following table shows the progression from the original budget for 2005/06 which was prepared at outturn prices 2005/06 to the base budget 2006/07 at outturn prices 2006/07.
£'000 |
£'000 | |||
Original budget 2005/06 at outturn prices |
93,730 | |||
Transfers to/from other services and contingency allocations: |
||||
- |
Rebase IT budget for SAP and mainframe decommissioning |
100 |
||
- |
Youth initiatives - funding for evening transport in Andover |
22 |
||
- |
Allocation from corporate provision for procurement savings |
-131 |
-9 | |
= |
Adjusted original budget |
93,721 | ||
Increases for inflation to reflect November 2005 prices (see Annex 2) |
||||
- |
Waste management contract related services |
1,624 |
||
- |
Increase in business rates |
53 |
||
- |
Excess cost of inflation over the inflation allocation |
147 |
1,824 | |
Original budget at November 2005 prices |
95,545 | |||
Other variations (see Annex 3) |
||||
- |
Reductions to offset excess inflation |
-147 |
||
- |
Highways maintenance variations arising from: |
|||
additional road lengths |
93 |
|||
revenue effect of 2004/05 capital programme |
160 |
|||
winter maintenance four-yearly average of expenditure |
210 |
|||
- |
Variations in Government grant |
45 |
||
- |
Increase to waste management contract related budgets to 2005/06 volumes |
1,619 |
||
- |
Highways land assets project |
30 |
||
- |
Additional legal support to capital programme |
130 |
||
- |
Rural pathfinder - allocation from 2004/05 corporate underspending |
50 |
2,190 | |
= |
Base budget 2006/07 at November 2005 prices |
97,735 | ||
Allocation for future inflation |
1,788 | |||
= |
Base budget 2006/07 at outturn prices |
99,523 | ||
Annex 1 to Appendix 4
Environment
Construction of base budget 2006/07
Parameters used in the compilation
1 |
Definitions | ||||
1.1 |
The first stage in the construction of the budget for 2006/07 is the preparation of a base budget. The rules used this year are similar to those applied in 2005/06, which are summarised below. | ||||
1.2 |
The 2006/07 base budget is defined as the current year's budget adjusted for: · allocations made for inflation in 2005/06 including the re-pricing of the waste disposal contract and for increases in business rates · exclusion of expenditure included in the 2005/06 budget financed by the carry forward of planned underspendings from 2004/05, 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 unless a specific Cabinet decision to the contrary · 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: | ||||
Environment |
Routine highway and street lighting maintenance arising from variations in road lengths | ||||
Variations in waste disposal costs to reflect known and estimated waste volumes in 2005/06, at January 2005 prices | |||||
Annex 2 to Appendix 4
Environment
Calculation of base budget 2006/07
Significant costs of inflation
1. |
Variation between the actual cost of inflation in 2005/06 (as at November 2005) and the provision for inflation included in the 2005/06 budget | ||||||||
£'000 |
£'000 | ||||||||
Additional cost of inflation |
1,824 | ||||||||
Less: |
|||||||||
- |
Allocation from contingency for business rates |
53 |
|||||||
- |
Waste management contract |
1,624 |
1,677 | ||||||
= |
Shortfall in the inflation provision |
147 | |||||||
2. |
Significant costs of inflation between budgeted 2005/06 outturn prices and November 2005 prices | ||||||||
2.1 |
Pay awards |
||||||||
Provision was originally made in 2005/06 for pay awards of 2.95% for teachers and other employee groups. |
|||||||||
The additional cost in 2006/07 of the pay awards agreed in 2005/06 has been met in full and is £755,000 |
|||||||||
The pay awards agreed were: |
|||||||||
Negotiating body: |
Effective date: |
% | |||||||
Local Government Services Staff Hampshire Management Grades
|
1 April 2005 1 April 2005 |
2.95 2.95 | |||||||
2.2 |
Non pay inflation |
||||||||
Provision was originally made in 2005/06 for a net amount of £643,000 on all pay budgets, excluding than the waste management contract and business rates which were covered by a central contingency sum |
|||||||||
This was for general price increases of 2.5% (£905,000) offset by increased income to match inflation in gross expenditure |
|||||||||
The additional cost of price increases other than pay and net of income is £147,000 |
|||||||||
The most significant variations within this additional cost are as follows: |
|||||||||
Outturn 2005/06 to November 2005 |
Cost in 2006/07 | ||||||||
% |
£ | ||||||||
Routine highways maintenance |
-0.2 |
-44 | |||||||
Bus subsidy contracts |
2.9 |
184 | |||||||
3. |
Allocation for future inflation |
£'000 | |||||||
Provision for all pay awards of 2.95% in 2006/07 |
799 | ||||||||
Increase in local government employers' pension contributions (from 250% to 275% of employee contributions) |
335 | ||||||||
Provision for non-pay inflation at 2.5% |
1,176 | ||||||||
Reduction for increased income |
-522 | ||||||||
Total allocation for future inflation |
1,788 | ||||||||
Annex 3 to Appendix 4
Environment
Calculation of base budget 2006/07
Significant variations
Major variations between the repriced budget 2005/06 and the base budget for 2006/07 at November 2005 prices contributing towards the increase of £2,190,000 (2.3%) are set out below:
Variations against the repriced 2005/06 budget | |||
£'000 |
% | ||
Highways and transportation |
|||
Highways maintenance |
|||
Increased roads lengths - additional routine maintenance and street lighting expenditure arising from highway adoptions |
93 |
0.4 | |
Capital programme - additional expenditure arising from the implementation of highways improvement schemes |
160 |
0.7 | |
Transfer from structural maintenance to compensate for required increase in winter maintenance provision |
210 |
1.0 | |
Increase in Government grant to cover expenditure arising from de-trunking of A339 |
10 |
- | |
Budget adjustment arising from lower inflation compared to allocation for inflation included in 2005/06 original budget |
44 |
0.2 | |
Public transport |
|||
Bus subsidies - required savings to absorb higher expenditure from contract re-tendering and other cost variations within the base budget |
-184 |
-2.9 | |
Increase in Government grant for rural bus services |
35 |
2.4 | |
Management and support services |
|||
Higher expenditure arising from cost of salary increments and other variations in departmental running costs |
474 |
2.1 | |
Highways land assets project - approved increase in budget, to be met from anticipated higher future capital receipts |
30 |
0.1 | |
Legal - additional support in connection with legal agreements relating to generation of capital receipts and developers' contributions to be met by transfer from locally resourced capital programme |
130 |
0.6 | |
Rural pathfinder - additional allocation from 2004/05 corporate underspending |
50 |
0.2 | |
Asset management - savings against non-recurring items of expenditure |
-275 |
-1.2 | |
Supplies and support services - various minor savings from departmental budget |
-43 |
-0.2 | |
Fees - additional income from external fees and higher cost recovery from capital programme |
-150 |
-0.7 | |
Waste management |
|||
Waste disposal contract - adjustment to budget to reflect increases in expenditure, other than inflation |
1,619 |
3.9 | |
Annex 4 to Appendix 4
Environment
Base budget 2006/07
Analysis of variations
Adjusted original budget 2005/06 |
Variation in inflation to November 2005 prices |
Other variations |
Inflation allocation to 2006/07 outturn |
Base Budget 2006/07 | |||
£'000 |
£'000 |
% |
£'000 |
£'000 |
% |
£'000 | |
Cash limited expenditure by division of service |
|||||||
Highways and transportation |
|||||||
Highways maintenance |
22,055 |
-44 |
-0.2 |
517 |
- |
- |
22,528 |
Road safety education |
230 |
- |
- |
- |
- |
- |
230 |
School crossing patrols |
970 |
- |
- |
- |
- |
- |
970 |
Traffic surveys |
228 |
- |
- |
- |
- |
- |
228 |
Parking services |
-95 |
- |
- |
- |
- |
- |
-95 |
Public transport |
6,241 |
184 |
2.9 |
-184 |
- |
- |
6,241 |
Rural bus subsidy grant |
1,429 |
- |
- |
35 |
- |
- |
1,464 |
Management and support services |
18,850 |
6 |
- |
204 |
- |
- |
19,060 |
49,908 |
146 |
0.3 |
572 |
- |
- |
50,626 | |
Planning services |
|||||||
Development control |
526 |
- |
- |
10 |
- |
- |
536 |
Planning policy |
2,891 |
1 |
- |
-24 |
- |
- |
2,868 |
Environmental initiatives |
704 |
- |
- |
12 |
- |
- |
716 |
Economic development |
19 |
- |
- |
- |
- |
- |
19 |
Community development and other projects |
83 |
- |
- |
1 |
- |
- |
84 |
4,223 |
1 |
- |
-1 |
- |
- |
4,223 | |
Waste management |
|||||||
Contract related services |
36,491 |
1,624 |
4.5 |
1,680 |
- |
- |
39,795 |
Other waste management services |
2,939 |
53 |
1.8 |
-61 |
- |
- |
2,931 |
39,430 |
1,677 |
4.3 |
1,619 |
- |
- |
42,726 | |
Other services |
|||||||
Reservoirs Act 1975 |
26 |
- |
- |
- |
- |
- |
26 |
Chichester Harbour Conservancy |
134 |
- |
- |
- |
- |
- |
134 |
160 |
- |
- |
- |
- |
- |
160 | |
Inflation allocation to 2006/07 outturn |
- |
- |
- |
- |
1,788 |
- |
1,788 |
Net cash limited expenditure |
93,721 |
1,824 |
1.9 |
2,190 |
1,788 |
1.8 |
99,523 |
Expenditure outside cash limit |
|||||||
Capital charges |
29,458 |
- |
- |
945 |
- |
- |
30,403 |
Flood protection |
654 |
- |
- |
88 |
- |
- |
742 |
FRS 17 pension adjustment |
820 |
- |
- |
-940 |
- |
- |
-120 |
Total net expenditure before grant |
124,653 |
1,824 |
1.5 |
2,283 |
1,788 |
1.4 |
130,548 |
Specific Government grants |
|||||||
A339 de-trunking grant |
-418 |
- |
- |
-10 |
- |
- |
-428 |
Rural bus subsidy grant |
-1,429 |
- |
- |
-35 |
- |
- |
-1,464 |
Waste performance and efficiency |
-556 |
- |
- |
-172 |
- |
- |
-728 |
Total net expenditure |
122,250 |
1,824 |
1.5 |
2,066 |
1,788 |
1.4 |
127,928 |
Appendix 5
Environment
Proposals for growth and redeployment 2006/07 and 2007/08
Growth proposals |
2006/07 |
2007/08 |
Staffing (FTEs) | |||
2006/07 |
2007/08 | |||||
£'000 |
£'000 |
|||||
1 |
Highways maintenance |
|||||
1.1 |
Street lighting energy - additional sum to cover anticipated higher energy costs |
1,000 |
1,000 |
- |
- | |
1.2 |
Highway tree maintenance - implementation of proactive policies to reduce risk, including maintenance of trees on double deck bus routes |
300 |
300 |
- |
- | |
1.3 |
Winter maintenance - to offset reduction in base budget to capital structural maintenance |
210 |
530 |
- |
- | |
1.4 |
Technical surveys - higher costs of implementing new condition assessment methods |
105 |
105 |
- |
- | |
Total highways maintenance |
1,615 |
1,935 |
- |
- | ||
2 |
Public transport |
|||||
2.1 |
Cango and community transport - withdrawal of external funding from Bus Challenge and Rural Transport Partnership |
80 |
270 |
- |
- | |
2.2 |
Ferries - increasing subsidy for Hythe and Hayling Island ferries |
10 |
10 |
- |
- | |
Total public transport |
90 |
280 |
- |
- | ||
3 |
Planning and development |
|||||
3.1 |
Minerals and waste - provision to cover development plan shortfall and specialist consultancy advice |
75 |
75 |
- |
- | |
3.2 |
IT - provision for minerals and waste ICT system development and maintenance, and e-government, including site and monitoring system requirements |
52 |
52 |
- |
- | |
Total planning and development |
127 |
127 |
- |
- | ||
4 |
Waste management |
|||||
4.1 |
Waste management administration - additional staffing capacity to manage change, maximise performance and minimise budget growth |
200 |
200 |
4 |
4 | |
4.2 |
Efford landfill site - provision to meet ongoing monitoring costs |
20 |
20 |
- |
- | |
Total waste management |
220 |
220 |
4 |
4 | ||
Total growth proposals |
2,052 |
2,562 |
4 |
4 | ||
Redeployment proposals |
2006/07 |
2007/08 |
Staffing (FTEs) | |||
2006/07 |
2007/08 | |||||
£'000 |
£'000 |
|||||
5 |
Highways maintenance |
|||||
5.1 |
Construction Lean Improvement Project (CLIP) -target efficiency savings to be realised |
100 |
250 |
-1 |
-2 | |
5.2 |
Income - estimated additional income from commuted sums from developers and increases to licence fees |
150 |
250 |
- |
- | |
5.3 |
Traffic Management Act - savings against non-recurring items of expenditure in base budget |
75 |
75 |
- |
- | |
5.4 |
IT system development - reduced provision for highways maintenance related systems |
50 |
50 |
- |
- | |
5.5 |
Efficiency savings - relating to increased use of type 3 sub-base, infra-red patching, and recycling and street lighting material efficiencies |
98 |
98 |
- |
- | |
Total highways maintenance |
473 |
723 |
-1 |
-2 | ||
6 |
Public transport |
|||||
6.1 |
Bus subsidies - review of contracted bus services |
90 |
280 |
-1 |
-1 | |
Total public transport |
90 |
280 |
-1 |
-1 | ||
7 |
Highways management and support services |
|||||
7.1 |
Network management - savings across a number of headings including premises, admin support staff, overtime and allowances |
100 |
170 |
-2 |
-3 | |
7.2 |
Traffic management - reduced advice and advertising of traffic regulation orders |
60 |
100 |
-3 |
-3 | |
7.3 |
Intelligent Transport Systems - reduction in operational budget, reduced advice and savings in staffing |
74 |
99 |
-2 |
-2 | |
7.4 |
SHRT development - reduced provision for future development of SHRT |
58 |
58 |
- |
- | |
7.5 |
IT - savings from reduced software and hardware maintenance, support consultants and minor purchases |
30 |
30 |
- |
- | |
Total highways management and support services |
322 |
457 |
-7 |
-8 | ||
8 |
Planning and development |
|||||
8.1 |
Landscape planning and heritage - reduced support across various programme areas, including related staffing savings |
571 |
486 |
-3 |
-3 | |
8.2 |
Natural resources and environment futures - savings in operational budget, reduced LIFE funding and staffing savings |
132 |
132 |
- |
- | |
8.3 |
Ecology - savings against operational spending and staffng budgets |
64 |
64 |
-1 |
-1 | |
8.4 |
Spatial strategy - savings against operational and staffing budgets |
61 |
81 |
-1 |
-1 | |
8.5 |
Strategy and information - staffing saving |
9 |
9 |
- |
- | |
8.6 |
Income - additional anticipated income from Planning Delivery Grant and higher site monitoring fees |
75 |
75 |
- |
- | |
Total planning and development |
912 |
847 |
-5 |
-5 | ||
9 |
Waste management |
|||||
9.1 |
Disposal of abandoned vehicles - savings arising from improvement in market for scrap metal |
100 |
100 |
- |
- | |
9.2 |
Income - additional income from new funding streams |
120 |
120 |
- |
- | |
Total waste management |
220 |
220 |
- |
- | ||
10 |
Other services |
|||||
10.1 |
School crossing patrols - budget reduction reflecting ongoing staff recruitment difficulties |
25 |
25 |
- |
- | |
10.2 |
Road safety - economies in operational support |
5 |
5 |
- |
- | |
10.3 |
Traffic surveys - additional income |
5 |
5 |
- |
- | |
Total other services |
35 |
35 |
- |
- | ||
Total redeployment proposals |
2,052 |
2,562 |
-14 |
-16 | ||
Appendix 6
Environment
Efficiency Statement
2005/06 |
2006/07 |
2007/08 | |||||
AES |
Budget |
AES |
Budget |
AES |
Budget | ||
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 | ||
Cashable efficiency improvements: |
|||||||
a) |
AES eligible and budget saving |
||||||
A3 contract - innovative term contract |
330 |
330 |
300 |
300 |
- |
- | |
Capital programme - reduced fees from new working practices |
- |
- |
100 |
100 |
25 |
25 | |
Small works framework contract |
168 |
168 |
42 |
42 |
- |
- | |
New highways works - recycling of materials |
100 |
100 |
- |
- |
- |
- | |
Engineering - scheme design packaging |
- |
- |
100 |
100 |
- |
- | |
Office services - reduced spending on overheads |
56 |
56 |
- |
- |
- |
- | |
Highways maintenance - more efficient use of materials |
- |
- |
98 |
98 |
- |
- | |
Term maintenance contract - rebate on contract spend |
340 |
340 |
-40 |
-40 |
- |
- | |
Term maintenance contract - capping on annual inflation increase |
65 |
65 |
65 |
65 |
65 |
65 | |
Abandoned vehicles - being recycled by market |
100 |
100 |
- |
- |
- |
- | |
Section 38 agreements - centralisation of work |
123 |
123 |
- |
- |
- |
- | |
Construction lean improvement programme (CLIP) |
- |
- |
100 |
100 |
150 |
150 | |
1,282 |
1,282 |
765 |
765 |
240 |
240 | ||
b) |
AES eligible but no budget saving |
||||||
Passenger transport deregistration review |
- |
- |
150 |
- |
-50 |
- | |
Developers' contributions - avoidance of capital borrowing |
395 |
- |
395 |
- |
395 |
- | |
Staff - absorption of increments |
275 |
- |
358 |
- |
358 |
- | |
670 |
- |
903 |
- |
703 |
- | ||
c) |
Budget saving but AES ineligible |
||||||
2005/06 budget: |
|||||||
Traffic management - schemes transferred to capital programme |
- |
452 |
- |
- |
- |
- | |
Developers' contributions - application of income |
- |
50 |
- |
- |
- |
- | |
Transfer from structural maintenance |
- |
301 |
- |
- |
- |
- | |
Bus subsidies - review of evenings and Sunday bus services |
- |
300 |
- |
- |
- |
- | |
New Forest Committee - discontinuation of contribution |
- |
5 |
- |
- |
- |
- | |
Danebury Trust - withdrawal of support |
- |
6 |
- |
- |
- |
- | |
Spatial strategy - reduction in budget for events |
- |
17 |
- |
- |
- |
- | |
Minerals and waste - reduction in consultancy and advertising |
- |
25 |
- |
- |
- |
- | |
Ecology - reduced service level agreements |
- |
15 |
- |
- |
- |
- | |
School crossing patrols - staff recruitment difficulties |
- |
25 |
- |
- |
- |
- | |
Traffic surveys - reduced number of traffic surveys |
- |
25 |
- |
- |
- |
- | |
Transport charges - additional income |
- |
70 |
- |
- |
- |
- | |
Scheme design - review scope for capitalisation |
- |
66 |
- |
- |
- |
- | |
Communications budget - saving |
- |
18 |
- |
- |
- |
- | |
IT client section - deletion of unfilled post |
- |
30 |
- |
- |
- |
- | |
IT - savings in printing, software and hardware maintenance etc |
- |
41 |
- |
- |
- |
- | |
Other housekeeping efficiencies |
- |
11 |
- |
- |
- |
- | |
2006/07 budget: |
|||||||
Income - estimated additional income from commuted sums, etc |
- |
- |
- |
150 |
- |
100 | |
Traffic Management Act - savings against non-recurring items in budget |
- |
- |
- |
75 |
- |
- | |
IT system development - highways maintenance systems |
- |
- |
- |
50 |
- |
- | |
Bus subsidies - review of contracted bus services |
- |
- |
- |
90 |
- |
190 | |
Network management - various savings |
- |
- |
- |
100 |
- |
70 | |
Traffic management - reduced advice and advertising |
- |
- |
- |
60 |
- |
40 | |
Intelligent Transport Systems - reduction in operational budget, etc |
- |
- |
- |
74 |
- |
25 | |
SHRT development - reduced provision |
- |
- |
- |
58 |
- |
- | |
IT - savings in printing, software and hardware maintenance etc |
- |
- |
- |
30 |
- |
- | |
Landscape planning and heritage - reduced support |
- |
- |
- |
571 |
- |
-85 | |
Natural resources and environment futures - operational budgets, etc |
- |
- |
- |
132 |
- |
- | |
Ecology - savings against operational and staffing budgets |
- |
- |
- |
64 |
- |
- | |
Spatial strategy - savings against operational and staffing budgets |
- |
- |
- |
61 |
- |
20 | |
Strategy and information - staffing saving |
- |
- |
- |
9 |
- |
- | |
Income - anticipated additional income |
- |
- |
- |
75 |
- |
- | |
Income - additional income from new funding streams |
- |
- |
- |
120 |
- |
- | |
School crossing patrols - staff recruitment difficulties |
- |
- |
- |
25 |
- |
- | |
Road safety - economies in operational support |
- |
- |
- |
5 |
- |
- | |
Traffic surveys - additional income |
- |
- |
- |
5 |
- |
- | |
- |
1,457 |
- |
1,754 |
- |
360 | ||
Non-cashable efficiency improvements |
|||||||
Quality bus partnerships - increased patronage |
141 |
- |
- |
- |
- |
- | |
Traffic Management Act - cost of additional work absorbed |
84 |
- |
- |
- |
- |
- | |
Freedom of Information Act - cost of work absorbed |
11 |
- |
- |
- |
- |
- | |
Composting - improved arrangements for green waste |
4 |
- |
- |
- |
- |
- | |
240 |
- |
- |
- |
- |
- | ||
Totals |
2,192 |
2,739 |
1,668 |
2,519 |
943 |
600 | |
% of base budget |
2.2% |
2.8% |
1.7% |
2.5% |
0.9% |
0.6% | |
Total of all efficiency improvements |
2,192 |
1,282 |
1,668 |
765 |
943 |
240 | |
% of base budget |
2.2% |
1.3% |
1.7% |
0.8% |
0.9% |
0.2% | |
Appendix 7
Environment
Revenue Budget 2006/07
Review of income
Current charge |
Total income 2006/07 |
Date of last review |
Planned date for next review |
Proposed increase (if proposed now) |
Is charge set to recover full cost Yes/No |
Is charge subject to an assessment scale determined locally? Yes/No |
Additional income from increased or new charge | ||
£ |
£ |
£ |
£ | ||||||
Charges |
|||||||||
1 |
Mandatory/National charges |
||||||||
Planning Application fees |
Various |
164,400 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
2 |
Discretionary charges |
||||||||
Road traffic accidents |
|||||||||
- works recharged |
Actual cost |
119,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
- administration |
8% - 15% oncost |
123,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Rent from highways properties |
Various |
37,600 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Transport charges |
Actual cost |
70,400 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Trench inspection fees |
Actual cost |
432,200 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Land search fees |
Various |
240,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
TAG external income |
Various |
10,500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Highways Agency Area 3 |
Actual cost |
58,200 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Road closures |
Various |
10,500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Safety audits |
Various |
1,500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Engineering consultancy external fees |
Various |
5,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
County Highways laboratory external fees |
Various |
266,500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Land Search status enquiries |
40 |
50,500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
DfT/EU grant |
Actual cost |
165,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Income from outside bodies |
Actual cost |
23,400 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
NRSWA Section 74 |
Actual cost |
50,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
TRICS income |
Actual cost |
42,900 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Abnormal loads |
Actual cost |
10,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Tourist signing |
Actual cost |
2,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Speed checks |
Actual cost |
500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Publication income |
Various |
1,500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Miscellaneous income |
Various |
29,800 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Section 38 income |
Actual cost |
738,300 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Traffic surveys |
Various |
26,600 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Road safety fees and materials |
Various |
45,500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
On-street parking charges |
Various |
2,015,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Lorry rent |
Various |
94,800 |
Apr 05 |
Apr 06 |
N/a |
No |
No |
N/a | |
Minibus driver training and assessment |
60 to 440 |
63,900 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Bus contracts - district council cont. |
Actual cost |
156,700 |
Apr 05 |
Apr 06 |
N/a |
No |
No |
N/a | |
Cross boundary bus subsidies |
Various |
485,600 |
Various |
Various |
N/a |
Yes |
No |
N/a | |
Ferries (contributions from Cities) |
Various |
28,500 |
Apr 05 |
Apr 06 |
N/a |
No |
No |
N/a | |
Routine publicity - contributions from districts |
Various |
20,000 |
Apr 05 |
Apr 06 |
N/a |
No |
No |
N/a | |
Planning - other charges |
Various |
81,600 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Trade waste |
Various |
661,800 |
Jan 05 |
Jan 06 |
N/a |
Yes |
No |
N/a | |
Waste management rent |
Various |
743,400 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Waste management (PCC/SCC contribution) |
Various |
96,600 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
NFFO income |
Various |
33,300 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Waste management (West Berkshire contribution) |
Various |
48,600 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Waste management (dry recyclables processing) |
Various |
617,500 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Waste management - other miscellaneous |
Various |
74,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
Waste management - commercial use of incinerators |
Various |
125,000 |
Apr 05 |
Apr 06 |
N/a |
Yes |
No |
N/a | |
3 |
Services provided free where charges could be made |
N/a |
N/a |
N/a |
N/a |
N/a |
N/a |
N/a |
N/a |
·
Appendix 8
Environment
Workforce levels and costs
2005/06 £ |
2006/07 £ | |||
Cost of establishment |
24,200,400 |
25,041,100 | ||
FTE posts available (establishment) |
804 |
804 | ||
Average cost per FTE |
30,100 |
31,100 | ||
Salaries (including employer's national insurance and pension contributions) |
22,516,500 |
24,416,100 | ||
Temporary/fixed term/casual staff |
467,900 |
307,300 | ||
Agency staff |
149,600 |
29,600 | ||
Additional hours |
221,300 |
205,100 | ||
Total workforce costs |
23,355,300 |
24,958,100 | ||
Average FTE staff actually in post |
749 |
784 | ||
New posts proposed (FTE) (See appendix 5 for details) |
4 | |||
Full year cost of new posts at midpoint |
200,000 | |||
Deletion of posts proposed (FTE) (see appendix 5 for details) |
-14 | |||
Full year saving from deleted posts at midpoint |
-394,000 | |||
Revised FTE establishment |
794 | |||
Revised workforce budget |
24,764,100 | |||
Note 1 - the cost of establishment includes the actual salary for those staff in post and the mid-point salary cost of vacant posts. Salary costs include National Insurance & Superannuation and allowances other than payments for additional hours.
Appendix 9
Environment
Revenue Budget 2006/07
Reconciliation of the original 2005/06 budget on the following pages with the 2005/06 budget in the published budget book.
£'000 |
£'000 | ||
Net expenditure on page B21 of the published budget book |
123,684 | ||
Adjustments for pension costs not included in budget book |
1,018 | ||
Adjustments for items not currently included in the detailed budget pages: |
|||
- central support services |
-3,035 |
||
- charges to corporate and democratic core |
454 |
-2,581 | |
Adjustments made to the original budget figures: |
|||
- |
Rebase IT budget for SAP and mainframe decommissioning |
100 |
|
- |
Continued funding for evening transport in Andover (youth initiatives) |
22 |
|
- |
Allocation from corporate provision for procurement savings |
-131 |
-9 |
Total net expenditure for 2005/06 original budget shown overleaf on page B21 |
122,112 | ||
Appendix 10
Environment
Business units - summarised trading accounts 2006/07 and 2007/08
The budget of the River Hamble Management Committee is outside the cash limited budgets of the Environment services and operates on a trading basis. The following statement shows the summarised trading position and movement in the earmarked reserve accounts.
Note
The detailed budget will be considered by the River Hamble Harbour Management Committee before going to the Harbour Management Board for approval when the annual charges are approved.
The above summarised accounts bring together income, expenditure and reserves for the combined statutory Harbour Undertaking and Management of the Moorings and the Visitor Centre Partnership.
The net operating surplus includes exceptional income of £100,000 per annum from the sale of river piles to the Crown Estate (the fourth and fifth instalments of five).
It also includes interest earned and the first and second of three planned annual contributions of £38,000 from income to reserves in 2005/06 and 2006/07. These contributions are indended to bring the Harbour Undertaking Reserve out of the deficit which arose following the income period adjustment made in 2004/05. Any underspend at the end of the financial year would also be used to reduce the deficit. The surplus in both years includes a further planned transfer of £14,100 to the newly established boat replacement reserve.
Discussions have been ongoing with Crown Estates for some time with regard to the Visitor Centre Partnership. The 2005/06 revised budget and the 2006/07 base budget reflect a revised income split and fee basis.
The Partnership has been operating at a deficit for some time but is now predicted to break even. The 2006/07 base budget includes the writing off of the accumulated deficit by using £150,000 of the accumulated receipts from the sale of the river piles.
A further £7,000 of receipts will be used for Harbour jetty in 2006/07. This is included in the expenditure figure of £577,000.
Appendix 11
Environment
Provisional budget 2007/08
The following table shows the progression from the 2006/07 proposed budget at outturn prices to the provisional budget 2007/08 at outturn prices.
£'000 |
£'000 | |||
Proposed budget 2006/07 at outturn prices |
99,897 | |||
- |
Base budget variations |
510 |
||
- |
Exclusion of non-recurring 2006/07 expenditure |
-335 |
175 | |
Growth and redeployment proposals |
-405 | |||
Allocation for future inflation |
1,678 | |||
Provisional budget 2007/08 at outturn prices |
101,345 | |||