Archived decisions

Appendices

Appendix		Colour
1	Revised budget 2006/07 - calculation of the cash limit	yellow
2	Revised budget 2006/07 - comparison with cash limit	yellow
3	Base budget 2007/08 - summary of cash limit	pink
3 - Annex 1	Base budget 2007/08 - definition of base budget	pink
3 - Annex 2	Base budget 2007/08 - significant costs of inflation	pink
3 - Annex 3	Base budget 2007/08 - significant variations from 2006/07 repriced budget	pink
4	Proposals for growth and redeployment 2007/08, 2008/09 and 2009/10	yellow
5	Efficiency statement	yellow
6	Review of income 2007/08	yellow
7	Business units - summarised trading accounts	blue
8	Revenue budget 2007/08 - analysis of variations	blue
9	Revenue Budget 2007/08 - budget book detail	green
10	Workforce levels and costs 2006/07 - 2008/09	white
11	Provisional budget 2008/09 and 2009/10	pink
11 - Annex 1	Provisional budget 2008/09 - analysis of variations	blue

Appendix 1

Recreation and Heritage Service

Revised budget 2006/07

Calculation of the cash limit for the revised budget 2006/07

The following table shows the progression from the original budget for 2006/07 to the cash limit for the revised budget 2006/07. Both are at estimated outturn prices 2006/07.

				£'000	£'000
Original budget 2006/07 at outturn prices					31,715
Transfers to/from other services and contingency allocations: - Hampshire Wardrobe - Corporate Procurement					30 -8
=	Adjusted original budget				31,737
Inflation Provision added since the original budget for business rates					-7
Other variations - Busy Bees scheme - Pay and Benefits savings - Local Public Service Agreement - Reduction for Calshot Prudential loan					-3 -50 113 -22
=		Cash limit for the revised budget 2006/07			31,768

Appendix 2

Recreation and Heritage Service

Revised budget 2006/07

Summary comparing the revised budget with the cash limit

	Cash Limit	Revised Budget	Variation
	£'000	£'000	£'000	%
Cash limited expenditure
Museums and Archives Milestones Tourism, Marketing and Design Library and Information Service Countryside Service Arts Sports and Community Calshot Activities Centre Policy Development Initiatives Director and Business Development	3,418 200 578 17,217 4,499 2,075 2,057 233 765 726	3,418 200 578 17,217 4,499 2,075 2,057 233 765 726	- - - - - - - - - -	- - - - - - - - - -
Total	31,768	31,768	-	-

Appendix 3

Recreation and Heritage Service

Revenue budget 2007/08

Calculation of the base budget 2007/08 - summary of cash limited expenditure

The following table shows the progression from the original budget for 2006/07 which was prepared at outturn prices 2006/07 to the base budget 2007/08 at outturn prices 2007/08.

		£'000	£'000
Original budget 2006/07 at outturn prices			31,715
Transfers to/from other services and contingency allocations
- -	Hampshire Wardrobe Corporate procurement		30 -8
=	Adjusted original budget		31,737
Increases for inflation to reflect November 2006 prices (see Annex 2)
-	Inflation allocated during 2006/07 from the central inflation contingency for business rates		131
-	Excess cost of inflation over the inflation allowance		56
Original budget at November 2006 prices			31,924
Other variations (see Annex 3)
-	Reductions to offset excess inflation	-56
-	Exclusion of non-recurring 2006/07 expenditure	-220
-	Reduction for Calshot Prudential loan	-22
-	Local Public Services Agreement	39
-	Allowable base budget growth	30
-	Hampshire Direct	-259	-488
Allocation for future inflation			939
=	Base budget 2007/08 at outturn prices		32,375

Annex 1 to Appendix 3

Recreation and Heritage Service

Calculation of base budget 2007/08

Parameters used in the compilation

1	Definitions
1.1	The first stage in the construction of the budget for 2007/08 is the preparation of a base budget. The rules used this year are similar to those applied in 2006/07, which are summarised below.
1.2	The 2007/08 base budget is defined as the current year's budget adjusted for: · allocations made for inflation in 2006/07 including the full year effect of the provision made for outstanding pay awards from 2005/06 · exclusion of expenditure included in the 2006/07 budget which was financed by the carry forward of planned underspendings from 2005/06, 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 2006/07 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.

Annex 2 to Appendix 3

Recreation and Heritage Service

Calculation of base budget 2007/08

Significant costs of inflation

1.	Variation between the actual cost of inflation in 2006/07 (as at November 2006) and the provision for inflation included in the 2006/07 budget
						£'000	£'000
	Additional cost of inflation						187
	Less:
	-	Allocation from contingency for business rates					-131
	-
	=	Shortfall in the provision					56
2.	Significant costs of inflation between budgeted 2006/07 outturn prices and November 2006 prices
2.1	Pay awards
	Provision was originally made in 2006/07 for pay awards of 2.95% for teachers and other employee groups.
	No additional cost in 2007/08 of the pay awards agreed in 2006/07 is anticipated.
	The pay awards agreed were:
	Negotiating body: Effective date:						%
	Local Government Services Staff Hampshire Management Grades				1 April 2006 1 April 2006		2.95 2.95
2.2	Non pay inflation
	Provision was originally made in 2006/07 for a net amount of £118,000
	This was for general price increases of 2.5% (£233,000) offset by increased income of £115,000 to match inflation in gross expenditure
3.	Allocation for future inflation						£'000
	Provision for all pay awards of 2.25% in 2007/08						558
	Increase in local government employers' pension contributions (from 275% to 295% of employee contributions)						254
	Provision for non-pay inflation at 2.5%						183
	Reduction for increased income						-56
	Total allocation for future inflation						939

Annex 3 to Appendix 3

Recreation and Heritage Service

Calculation of base budget 2007/08

Significant variations

Major variations between the repriced budget 2006/07 and the base budget for 2007/08 at November 2006 prices contributing to the decrease of £488,000 (-1.5%) are set out below:

		Variations against the repriced 2006/07 budget
		£'000	%
	Museum and archives
	Reduction for Hampshire Direct operation	-29	-0.8
	Tourism, marketing and design
	Transfer to Arts	-37	-
	Libraries and information
	Cessation of 2006/07 one-off increase	-170	-1.0
	Reduction for excess inflation	-29	-
	Reduction for Hampshire Direct operation	-138	-0.8
	Transfer from Policy Fund for Central Support Services	20	-
	Increments	182	1.5
	Restructuring reductions	-676	-5.4
	Reduced income	474	23.6
	Countryside
	Reduction for Hampshire Direct operation	-35	-0.8
	Arts
	Net transfer from Policy Fund for continuing grants	77	-
	Transfer from Tourism marketing and design	37	-
	Reduction for Hampshire Direct operation	-16	-0.8
	Policy fund
	Cessation of 2006/07 one-off increase	-50	-
	Additional resource	30	-
	Transfer to Libraries	-20	-
	Net transfer to Arts	-77	-
	Transfer to Director	-102	-
	Director
	Transfer from Policy Fund for Health and Safety and capital implementation team	102	-

Appendix 4

Recreation and Heritage Service

Proposals for growth and redeployment 2007/08 to 2009/10

					Staffing (FTEs)
		2007/08	2008/09	2009/10	2007/08	2008/09	2009/10
		£'000	£'000	£'000
	Growth proposals:
	Winchester Discovery Centre	70	220	220	1	4	4
	Bursledon Library	17	17	17	-	-	-
	Libraries restructure net one-off costs	150	0	0	-	-	-
	Existing Libraries pressures	450	450	450	-	-	-
	People Network Phase 1 equipment replacement	20	40	40	-	-	-
	Policy Fund	200	180	180	-	-	-
	Total cost pressures	907	907	907	1	4	4
	Redeployment proposals:
	IT efficiencies	-50	-50	-50	-	-	-
	Service reductions	-857	-857	-857	-21	-21	-21
		-907	-907	-907	-21	-21	-21
	Corporate redirections
	Service reductions	-337	-473	-612	-9	-9	-9
		-1,244	-1,380	-1,519	-30	-30	-30
	Net reduction	-337	-473	-612	-29	-26	-26

Winchester Discovery Centre

Revenue costs of new Discovery Centre

Bursledon Library

Revenue costs of improved library

Existing Libraries pressures

Pressures on income and staffing budgets

Peoples Network

Replacement programme

Policy Fund

New initiatives and contingency

Section 5 of this report indicates how the redeployment proposals and corporate redirections will be achieved. A more detailed action plan will be brought to the Executive Member's decision day in March for approval.

Appendix 5

Recreation and Heritage Service

Efficiency statement

		2006/07		2007/08		2008/09
		AES £ million	Budget £ million	AES £ million	Budget £ million	AES £ million	Budget £ million
Cashable efficiency improvements:
a	AES eligible and budget saving Service efficiency savings	0.6	0.6	0.6	0.6	0.6	0.6
b	AES eligible but no budget saving Increments	0.3		0.3		0.3
c	Budget saving but AES ineligible
Non-cashable efficiency improvements:
	Redirection to Policy Fund	0.2		0.2		0.2
Totals		1.1	0.6	1.1	0.6	1.1	0.6
% of base budget		3.5	1.8	3.5	1.8	3.5	1.8
Total of all efficiency improvements		1.1	0.6	1.1	0.6	1.1	0.6
% of base budget		3.5	1.8	3.5	1.8	3.5	1.8

Notes

Cashable efficiency improvements are defined in the annual efficiency statement (AES) as occurring when:

- inputs (money, people, assets etc) are reduced but outputs remain unchanged

- the price of inputs (procurement, labour costs etc) are reduced but outputs remain unchanged.

A reduction in price of inputs is measured in general against the increase in the Gross Domestic Product deflator (likely to be around 2.5% in 2007/08). Thus if the price of inputs remains constant there is a gain of 2.5%.

a efficiency savings that count against the AES and produce budget savings - this will include general procurement savings against the budget provision of a 2.5% increase in prices

b efficiency savings that count against the AES, but do not produce a budget saving because the efficiency is avoiding unbudgeted cost eg staff reductions made to absorb increments, procurement efficiencies where costs are still exceeding 2.5%, capital receipts or developer contributions applied to avoid unplanned additional borrowing

c efficiency savings that do not meet the AES criteria but produce a budget saving. These will include efficiency savings that relate to LEA services to schools (that are outside the scope for AES) and fortuitous savings that are not strictly efficiencies

Non-cashable efficiency improvements are defined in the AES as occurring when:

- increased outputs or improved quality of service are obtained for the same inputs

- increased outputs or improved quality achieved at a rate that exceeds the increase in inputs.

Appendix 6

Recreation and Heritage Service

Review of income 2007/08

		Current charge	Total income	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
			£'000			£			£'000
1	Museums and Archives Fees and charges, publications, photocopying, micro-form, microfiche, microfilm, photos, searches, cinema use, miscellaneous	Various	990	2006	2007	N/A	No	No	N/A
2	Milestones Fees and charges, publications, miscellaneous	Various	549	January 2006	-	N/A	No	No	N/A
3	Libraries Fines, video hires, publications	Various	1,637	January 2006	-	N/A	No	No	N/A
4	Countryside Entrance charges, car parks	Various	797	2006	2007	N/A	No	No	N/A
5	Arts Fees and charges, rents, bar, car parks	Various	669	2006	2007	N/A	No	No	N/A
6	Sport and Community Fees and charges, rents, bar, car parks	Various	289	2006	2007	N/A	No	No	N/A
7	Calshot Activities Centre	Various	2,282	2006	2007	N/A	Yes	No	N/A
	Total		7,213						-

Appendix 7

Recreation and Heritage Service

Business units - summarised trading accounts 2007/08 to 2009/10

		Original budget 2006/07	Revised budget 2006/07	Base budget 2007/08	Provisional forecast 2008/09	Provisional forecast 2009/10
		£'000	£'000	£'000	£'000	£'000
	Arts and Marketing Hampshire
	Income	-478	-353	-388	-435	-467
	Expenditure	478	326	405	431	448
	Net operating (surplus) deficit	-	-27	17	-4	-19
	Reserved balance brought forward	-11	-11	-38	-21	-25
	Reserved balance carried forward 31 March	-11	-38	-21	-25	-44
	Hampshire Wardrobe
	Income	-	-	-54	-68	-74
	Expenditure	-	-	72	73	74
	Net operating (surplus) deficit	-	-	18	5	-
	Reserved balance brought forward	-	-	-	18	23
	Reserved balance carried forward 31 March	-	-	18	23	23
	Total Business Units balance	-11	-38	-3	-2	-21

Appendix 8

Recreation and Heritage Service

Revenue budget 2007/08

Analysis of variations

	Adjusted original budget 2006/07		Variation in inflation to November 2006 prices		Other base budget variations	Inflation allocation to 2007/08 outturn		Growth and redeploy-ment proposals	Revenue Budget 2007/08
	£'000		£'000	%	£'000	£'000	%	£'000	£'000
Cash limited expenditure
Museums and Archives	3,535		6	0.2	-37	105	3.0	-134	3,475
Milestones	304		-2	-0.7	-1	6	2.0	-21	286
Tourism, Marketing and Design	593				-33	19	3.2	-13	566
Libraries and Information	16,958		144	0.8	-318	496	2.9	71	17,351
Countryside	4,576		6	0.1	-24	147	3.2	-188	4,517
Arts	2,088		5	0.2	98	61	2.9	-71	2,181
Sport and Community	1,985		1	0.1	2	61	3.1	-70	1,979
Calshot	221		27	12.2	-16	6	2.7	-9	229
Policy Fund	831				-254	18	2.2	99	694
Director and Business Development	646				95	20	3.1	-1	760
Net cash limited expenditure	31,737		187	0.6	-488	939	3.0	-337	32,038
Expenditure outside cash limit:
Capital charges	6,045				-68				5,977
FRS17 pension adjustment	-70				230				160
Expenditure met from/ income transferred to:
Arts Marketing Hampshire					17				17
Hampshire wardrobe					18				18
Specific grants					-39				-39
Total net expenditure	37,712		187	0.5	-330	939	2.5	-337	38,171

Appendix 9

Recreation and Heritage Service

Revenue Budget 2007/08

Reconciliation of the original 2006/07 budget on the following pages with the 2006/07 budget in the published budget book.

		£'000
Net expenditure on page B101 of the published budget book		40,552
Adjustments for items not included in the budget book: - support services and repair and maintenance of buildings - charges to Corporate and Democratic core	-2,989 127	-2,862
Adjustments made to the original budget figures: - Procurement savings - Hampshire wardrobe	-8 30	22
Total net expenditure for 2006/07 original budget shown overleaf on page B101		37,712

Appendix 10

Recreation and Heritage Service

Workforce levels and costs

	2006/07	2007/08
	£'000	£'000
Analysis of workforce costs in base budget:
Salaries of permanent staff (including employer's national insurance and pension contributions)	25,445	26,876
Temporary/fixed term/casual staff	602	622
Agency staff	-	-
Additional hours	266	275
Total workforce costs	26,313	27,773
Average FTE staff actually in post	1,005	1,015
Staffing changes in growth, savings and redeployment and proposals:
Variation in staff (FTEs)	-	-29
Variation in budget (£'000)	-	-794
Workforce implications of budget proposals:
FTE posts available	1,005	986
Workforce budget available (£'000)	26,313	26,979

Appendix 11

Recreation and Heritage Service

Provisional budget strategy 2008/09 and 2009/10

The following table shows the progression from the 2007/08 proposed budget at outturn prices to the provisional budget for 2008/09 and 2009/10 at outturn prices.

			£'000	£'000
Proposed budget 2007/08 at outturn prices				32,038
-	Base budget variations:
-	Exclusion of non-recurring 2007/08 expenditure			-39
-	Full year effect of 2007/08 growth proposals
	- Winchester Discovery Centre			150
	- Cessation of libraries restructure costs			-150
	- Reduction to Policy Fund			-20
	- Peoples network costs			20
-	Hants Direct operation			-74
-	Revenue effect of capital programme			30
Growth and redeployment proposals
-	Redistribution of guidelines			-136
Allocation for future inflation				652
Provisional budget 2008/09 at outturn prices				32,471
-	Base budget variations:
-	Exclusion of non-recurring 2008/09 expenditure			-
-	Full year effect of 2008/09 growth proposals			-
-	Revenue effect of capital programme			30
Growth and redeployment proposals				-139
Allocation for future inflation				662
Provisional budget 2009/10 at outturn prices				33,024

Annex 1 to Appendix 11

Recreation and Heritage Service

Provisional budget 2008/09 and 2009/10

Analysis of variations

	Proposed Budget 2007/08	Base budget variations	Growth and redeployment	Inflation allocation to 2008/09 outturn		Provisional Budget 2008/09	Base budget variations	Growth and redeployment	Inflation allocation to 2009/10 outturn		Provisional Budget 2009/10
	£'000	£'000	£'000	£'000	%		£'000	£'000	£'000	%	£'000
Cash limited expenditure
Museums and Archives	3,475	-8	-15	69	2.0	3,521		-16	71	2.0	3,576
Milestones	286	-1	-1	6	2.1	290		-1	6	2.1	295
Tourism, Marketing and Design	566	-1	-3	13	2.3	575		-3	13	2.3	585
Libraries and Information	17,351	-19	-72	345	2.0	17,605		-74	351	2.0	17,882
Countryside	4,517	-10	-20	98	2.2	4,585		-20	99	2.2	4,664
Arts	2,181	-5	-9	45	2.1	2,212		-9	46	2.1	2,249
Sport and Community	1,979	-44	-9	43	2.2	1,969		-9	44	2.2	2,004
Calshot	229	-1	-1	5	2.2	232		-1	4	1.7	235
Policy Fund	694	8	-3	14	2.0	713	30	-3	14	2.0	754
Director and Business Development	760	-2	-3	14	1.8	769		-3	14	1.8	780
Net cash limited expenditure	32,038	-83	-136	652	2.0	32,471	30	-139	662	2.0	33,024
Expenditure outside cash limit:
Capital charges	5,977					5,977					5,977
FRS 17 Pensions adjustment	160					160					160
Expenditure met from/income transferred to:
Arts Marketing Hampshire	17	-21				-4	-15				-19
Hampshire Wardrobe	18	-13				5	-5				-
Specific grants	-39	39				-					-
Total net expenditure	38,171	-78	-136	652	1.7	38,609	10	-139	662	1.7	39,142