Contact: Paul Carey-Kent, Deputy Treasurer, tel: 01962 847525;
[email protected]

David Howells, Director of Corporate Services tel: 023 8064 6834;

[email protected]

1 Introduction

This report sets out for members the latest budget predictions for the year. Overall it is predicted that spending could be slightly above budget and that some savings may have to be identified later in the year. This situation will be looked at more closely when the next monitoring report is prepared when the position is clearer in areas such as turnover on wholetime pay and the effect of the number of callouts on the retained pay budget. It is anticipated that most of the modernisation reserve will be used during the year as planned and details of its use are set out later in the report.

Revenue

1.1 The latest position is given in Appendix A.

Wholetime firefighters pay and allowances (-£173,000)

1.2 From 1^st April crewing arrangements at Waterlooville fire station have been changed to the retained duty system as planned in the Integrated Risk Management Plan (IRMP2). This has resulted in gross savings of £370,000 per year. This is marginally offset by the two additional community safety posts based at Waterlooville fire station (£70,000). The balance of these savings will be used during next year when the next phase of changes are implemented.

1.3 Other changes to the wholetime firefighters establishment include two wholetime watch managers seconded for command training for a year (£91,000), partly funded by holding a driver training instructor post (-£32,000) and driver training manager post vacant (see support staff).

1.4 Internal secondments for the shift pattern change project (£68,000) the pay and allowances review (£68,000) and automatic fire alarm (AFA) reduction project (£48,000) continue this year in order to meet commitments in the IRMP2. It is proposed to fund the cost of these posts from the modernisation reserve.

1.5 There are likely to be turnover savings during the year but it is too early in the year to predict what impact these might have.

1.6 The July 2006 pay award for uniformed staff has been agreed at 2.7%, which is 0.7% less than planned in the budget. The savings this year are estimated at £131,000 (£164,000 in 2007/08) for the wholetime pay budget

Retained firefighters pay and allowances (-£24,000)

1.7 The number of incidents for the first three months of the year is 6,126 which is very close to the 6,186 on which the budget is set. The number of incidents for the same period last year was 5,914. At this stage of the year it is too early to predict what the impact is expected to be.

1.8 This underspending represents the savings resulting from the lower than budgeted for pay award (£30,000 in 2007/08).

Support staff pay (+£88,000)

1.9 The pay award for the majority of support staff was agreed two years ago as part of a three year deal. The increase is 2.95% - the level assumed in the budget.

1.10 The savings relating to the control room staff pay award is £5,000 in 2006/07 and £6,000 next year.

1.11 The on-going costs of staff regradings, previously agreed by the Human Resources Committee, are estimated at £50,000. It is proposed to fund these costs in future years from the savings in the 2006 firefighters' pay settlement as this has now been incorporated in the base budget. In addition the temporary Community Fire Risk Management Information System (CFRMIS) project officer (£16,000) continues in post until September 2006, a temporary communications executive (£32,000) is required to meet commitments in the IRMP2, a fire safety officer (£31,000) is required for the AFA reduction team and the driver training manager post (-£35,000) is being held vacant as explained above.

Other Employee Expenses (+£148,000)

1.12 The performance management review scheme (PMRS) is estimated to cost £100,000 and is a strategic objective within the Integrated Risk Management Plan (IRMP) for 2006/07.

1.13 £38,000 is required for control staff career development and counselling in recognition of the need to support and advise them on career opportunities due to the introduction of Regional Control Centres. This has in the past been added as a one-off to the budget but has never been spent.

1.14 An additional £10,000 is required for feasibility work prior to the procurement of a new joint IT database for the training and HR functions due to take place in 2006/07.

Transport (+£140,000)

1.15 The cost of staff car allowances is estimated to increase by £70,000 in line with the trend in 2005/06. This is due to increased activity as a result of attending more training courses, conferences and meetings at distant locations.

1.16 The cost of vehicle fuel is estimated to increase by a similar amount in line with the trend in previous years. This is partly due to above average price inflation and increased operational activity and the Home Fire Safety Visits (HFSVs) carried out by wholetime firefighters.

IT and Communications (+£96,000)

1.17 The estimated cost of the Community Fire Risk Management Information System (CFRMIS) this year is £96,000. This can be financed from the modernisation reserve.

Other supplies (+£59,000)

1.18 13 group managers have been given delegated budgets totalling £60,000 to undertake local initiatives and partnership working that meet corporate aims and objectives. It is proposed to fund this cost from the modernisation reserve initially. This initiative was funded from the partnerships budget last year

Bought in Support Services (+£40,000)

1.19 Increased workload and information requirements together with the associated software licence fees relating to the firefighters pension scheme have increased the charges from the County Council by £30,000. In addition payroll charges for processing the reversal of the overpayments made are estimated at £10,000.

1 Pensions (+£230,000)

1.1 The costs that remain the responsibility of the Authority relate to two main areas; injury pensions and ill-health charges payable into the new pension account.

1.2 In relation to the injury pensions, agreement has just been reached relating to a former senior officer and has resulted in a significant sized pension being back dated for several years.

1.3 There have been no ill-health retirements yet in the year but it is too early in the year to predict any change to the budget.

2 Modernisation Reserve

2.1 The balance on the modernisation reserve currently stands at £690,000. It is proposed to fund the following projects included in the projected outturn from this fund if there are insufficient underspendings elsewhere in the budget at outturn:

	£'000
PMRS (Other employee expenses)	100
Group managers delegated budgets (Other supplies)	60
CFRMIS project (IT and Communications)	96
Shift Pattern Project (Wholetime firefighter)	68
Pay and Allowances Review (Wholetime firefighter)	68
Temp Communications Executive (Support staff)	32
AFA Reduction team (Wholetime firefighter and Support staff)	79
Total	503

2.2 At present the projected outturn would require a contribution of £503,000 towards these projects.

3 Capital

3.1 The updated position on a scheme by scheme basis is set out in appendix B.

3.2 Most changes relate to the payments profile of individual schemes. Where this is not the case the explanations are set out in the following paragraphs.

Vehicles 2005/06

3.3 As a result of the change in the way parts are charged to the frontline vehicles when they are fitted at the workshops a revenue contribution of £59,600 will be made. This reflects a change in accounting treatment as opposed a change in costs.

Vehicles 2006/07

3.4 Four crew vans are required for the first phase of the roll out of a programme of Retained Duty System (RDS) Home Fire Safety Visit delivery at a total cost of £44,800. Funding of the vehicles through revenue contributions is proposed to be met from efficiency gains within the training budget.

3.5 HFRS has received funding through a combination of LPSA 2 pump priming and monies from Hampshire Constabulary to fund an Arson Task Force for a year. Part of this money (£8,500) will be used to acquire a crew van which will become part of the HFRS fleet.

3.6 The effect of the charging method for workshops parts will require a revenue contribution of £46,600 in 2007/08 (when the workshops charge will be made).

HQ redevelopment scheme

3.7 Members will be aware that this scheme is progressing rapidly now. There are two elements of this project which require Members' attention.

3.8 The Compartment Fire Behaviour Training facilities (CFBT) which is a joint project with West Sussex County Council (WSCC). The project cost has increased from £300,000 which was the quote for the basic unit to £442,000 (+32%) which now includes the installation and connection of all the essential services. WSCC has increased its contribution from £150,000 to £190,000.

3.9 The Urban Search and Rescue (USAR) practical training facilities and accommodation is now expected to cost an additional £170,000 (57%) due to the extension of the contract to provide garaging and extension of the reinforced hardstanding to gain better protection and security for the USAR vehicles than the basic provision specified and funded by the government through the USAR grant.

3.10 This brings the total cost of the HQ scheme to a total estimated cost of £4,442,000.

3.11 Both of the above additional costs however can be more than funded by grants and additional capital contributions; £270,000 from a USAR grant; £40,000 from an additional capital grant from WSCC and a further USAR grant of £22,500.

4 Modernisation and Gershon savings

4.1 In line with Government targets for achieving efficiency gains a return has been submitted to the Department for Communities and Local Government (DCLG) of the achievements in 2005/06 and this is attached as appendix C.

4.2 The Authority's share of the overall target of £105m for Fire and Rescue Services is to deliver £3.3m of cashable efficiency gains by the end of 2007/08. £1.6m was delivered by 31 March 2006 and the plan is to increase this to £2.7m this year and to £4m during 2007/08.

5 Equality impact assessment

5.1 An impact assessment has been made on the proposals in the paper and shown that they are not discriminatory. They are considered compatible with the provisions of the European Convention on Human Rights, the Human Rights Act 1998 and the Race Relations (Amendment Act 2000).

Recommendations

That it be recommended to the Authority that:

1. the latest budget position be noted including the potential spend against the Modernisation Reserve and

2. the latest capital starts values in Appendix B be approved including the increased Phase I building works at HQ.

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have 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.

Fire Budget Monitoring PP 3.33 (d)