Hampshire County Council
	Executive Member for Recreation and Heritage		Item 1
	24 January 2008
	Culture and Communities Select Committee		Item
	24 January 2008
	Recreation and Heritage Revenue Budget 2008/09, 2009/10 and 2010/11
	Report of the County Treasurer and the Director of Recreation and Heritage

Contact: Bevis Ingram, 01962 847508, email [email protected]

Stuart Dorward, 01962 864110, email [email protected]

1 Summary

1.1 This report sets out the proposed Recreation and Heritage revenue budget for 2008/09, a provisional budget for 2009/10 and 2010/11 and recommends a revised budget for 2007/08. This report has been prepared in consultation with the Executive Member and will be reviewed by the Culture and Communities Select Committee. It will be reported to the Leader and Cabinet on 8 February 2008 to make final recommendations to County Council on 21 February 2008.

1.2 The budget proposals contained in this report are derived from the departmental service plans which have been developed to support the priorities of the Corporate Strategy.

Recommendations

To approve for submission to the Leader and Cabinet:

1 The revised budget for 2007/08 totalling £32.315 million (as set out in appendices 1 and 2)

2 That the attention of Cabinet is drawn to the additional cost (£90,000) of the works required to repair the breach to the Basingstoke Canal that occurred in June 2007 and the knock on effect of deferral of Countryside capital schemes.

3 The base budget for 2008/09 totalling £32.973 million (as set out in Appendix 3)

4 The proposals for growth of £0.786 million and redeployment of resources totalling £0.86 million in 2008/09 (as set out in Appendix 4)

5 The proposals for efficiency improvements totalling £1.09 million (3.3 % of the base budget) in 2008/09 (as set out in Appendix 5)

6 The annual review of income and charges (as set out in Appendix 6)

7 The summarised trading accounts of business units (as set out in Appendix 7)

8 The detailed budget for 2008/09 (as set out in Appendix 8)

9 The workforce implications of the proposed budget for 2008/09 as set out in Appendix 10)

10 The provisional budget for 2009/10 of £33.897 million and for 2010/11 of £34.812 million (as set out in Appendix 11).

1 Budget strategy

1.1 A provisional budget for 2008/09 and 2009/10 was agreed by the Cabinet in February 2007 alongside the 2007/08 budget. The budget strategy was incorporated in the Medium Term Financial Strategy approved by Cabinet in May. The budget strategy was reviewed by Cabinet in October following the publication of the Comprehensive Spending Review and in December to update inflation assumptions. The strategy is based on the following principles:

· Increases for all services in accordance with the County Council's base budget rules

· Above inflation increases for Adult Services and Children's Services

· Redeployment within each service of cashable efficiency improvements identified in 2008/09 towards new priorities and pressures

· No other provision for any new service developments unless funded by cashable efficiency savings

· Pay inflation of £0.292 million (basic pay and employers pension contributions)

· 2.5% for non-pay

· Income to be maximised by reviewing charges in line with the average inflation on the related gross expenditure.

1.2 The same assumptions have been used to set a provisional budget guideline for 2010/11.

1.3 For this service, the adjusted budget guidelines are:

	£m	% cash increase on year before
2008/09 guideline	32.973	3.3 %
2009/10 provisional guideline	33.897	2.9 %
2010/11 provisional guideline	34.812	2.8 %

1.4 This report sets out the Recreation and Heritage Executive Member's responses to the guidelines. The report:

· Reviews the revised budget for 2007/08 ( as set out in Appendices 1 and 2)

· Reviews the 2008/09 base budget which totals £32.973 million (as set out in Appendix 3)

· Identifies £0.786 million of pressures and costs absorbed (as set out in Appendix 4)

· Proposes the redeployment of £0.86 million of resources (as set out in Appendix 4) which, enables the pressures and costs identified above to be addressed, and also allows for a contingency of £100,000 to meet other service priorities.

· Identifies efficiency improvements of £1.09 million, being 3.33% of the base budget (as set out in Appendix 5)

· Reviews the charges made by this service (as set out in Appendix 6)

· Reviews the trading accounts of business units (as set out in Appendix 7)

· Proposes a detailed budget for 2008/09 (as set out in Appendices 8 and 9)

· Identifies the workforce implications of the budget proposals (as set out in Appendix 10)

· Proposes a provisional budget for 2009/10 and 2010/11 (as set out in Appendix 11).

2 Revised budget

2.1 The cash limit for the revised budget is £32.315 million. Appendix 1 summarises the movement from the original base budget of £32.038 million. The increase (£0.277 million - 0.9%) has resulted from a one-off Corporate transfer of £175k approved on an `invest to save basis' by Cabinet in June this year, to support the library transformation program. This is to be repaid over a three year period; the repayment will be completed in year three (2010/11) when the pension costs reduce . In addition to this, a one-off budget transfer, to be reviewed in the next financial year, was made by the Environment Department to support the transition of the I.T running costs associated with the River Hamble. There has also been an upward adjustment of the original base budget to reflect increases in rates charges for Recreation and Heritage properties. These increases have been off-set by a budget transfer to P&R representing the R&H contribution towards the Talented Athlete Scheme.

2.2 Regular monitoring reports in the course of the year have indicated significant pressures on the Department's revenue budget. Current projections indicate a potential overspend of up to £0.215 million in 2007/08. Of this, £175,000 relates to the Library and Information Service.

2.3 The restructure of the Library Service commenced in 2007/08 in order to achieve both short term in-year savings targets, and a generally improved financial position over the longer term. The restructure is now almost complete, and while there have been set up costs associated mainly with pension payments, the service is making good progress against the savings target of £1.040 million planned for the current financial year. Annual savings in excess of £1 million will be made each year subsequently as a result of the restructure.

2.4 Another key variable contributing towards the current year pressures in the Library Service, is the continuing trend of declining income, primarily that related to the hire of DVD's and CD's. Steps have already been taken to manage the under-spend down and further action is planned to eliminate it altogether by the end of the financial year: Spending on books and other materials has been reviewed. An element of this budget is being held back as an intermediate measure, which will again be reviewed as the year progresses. For now, all Service Managers are being asked to incur only essential expenditure with a view to releasing as much of the Materials Fund as possible.

2.5 The final accounts report in July 2007 outlined several major achievements of the Recreation and Heritage Service. This record of achievement has continued in 2007/08, as the following examples indicate:

· Achievement and retention of Charter Mark status throughout the Department recognising excellence in customer service

· Completion and opening of the Winchester Discovery Centre

· Completion of the `Making Space' project - a facility at Leigh Park substantially funded by the South East England Development Agency and the Arts Council, which will provide workshop space for craftspeople and provide a base for education and outreach work in the local community

· Continuing success of the `Hog the Limelight' programme in providing a vehicle for joint working between the Library and Arts services to increase participation, inclusion and learning

· Success of the `Summer Reading Challenge': Over twenty thousand school children participated in the program putting Hampshire County Council in the top five for the highest number of participants

· Approval of a £1.1 million award for the Museum Service by the Heritage Lottery Fund for development work at Basing House

· Approval of £1.2 million by the Big Lottery Fund which will be used to develop library buildings in Havant, Waterlooville, Leigh Park, Hayling Island and Aldershot. These community libraries are set to offer a range of activities including ICT courses, crafts, family history, languages, sign language and even writing workshops, thereby attracting a wider cross section of users

3.6 In June 2007 there was a breach of Basingstoke Canal resulting in flooding of agricultural land. Remedial work was undertaken at a cost of £90,000, diverting money away from the 2007/08 capital programme. This has had a major impact on schemes that Countryside needed to undertake this year which have had to be deferred.

3 Base budget 2008/09

3.1 A base budget for 2008/09 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 £32.973 million at outturn prices.

3.2 Appendix 3 shows the make up of the base budget.

3.3 Overall, the base budget includes a net reduction in expenditure at constant prices of £83,000. The main factor is the contribution to costs of Hants Direct.

3.4 In addition, £0.786 million is required to meet departmental budget pressures in 2008/09. This will be found by the re-deployment of resources from within the Recreation and Heritage budget. Proposals for management action encompass strategies for addressing the base budget reduction (£74,000) and redeployments (£0.786 million). For this reason, this section of the report will combine both of these.

3.5 The redeployments are based upon current forecasts of service priorities and pressures in the base budget for future years, and, in addition to the base budget reduction referred to above, represent a combined total of £0.86 million. In order to deliver the required savings, each Service has been set a savings target of 2.75%. The forecasted pressures for the Department and the plans for managing these are summarised below:

3.6 The Library and Information Service is emerging from a period of great change, one aspect of this being the introduction and expansion of the People's Network. This now requires on-going investment to enable older equipment to be replaced when necessary.

3.7 In addition to this, there are short term costs associated with the recent re-alignment of the Library staffing structure, a core element of the wider development program. These relate to the costs of the early release of pensions.

3.8 The recently completed Winchester Discovery Centre is another key element of the library development program. The recurring additional costs of running Winchester Discovery Centre (principally staffing and premises costs), arising from the expansion of both the building and of the services on offer there, have to be met from within existing Recreation and Heritage budgets as outlined in the formal project appraisal. Provision has also been made for the costs associated with the move from Library headquarters.

3.9 The County Council's countryside sites and the rural paths network are under growing pressure from recreational and other use. The number of Rights of Way for example, is set to increase by over two hundred from 7,078 to 7,296 in the current financial year - an increase which will inevitably bring added pressures to service delivery. Balancing competing and conflicting interests, whilst meeting statutory requirements, is an increasingly demanding task. There is a need to increase capacity within the Countryside Service to cope with increasing workloads and the budget plan allows for additional resources to support improvements in front line delivery, encouraging even greater access to the countryside facilities.

3.10 In view of the financial commitments to the on-going service priorities referred to above, a contingency of £100,000 has been built into the Policy Fund to support wider service development. The Policy fund was established through redeployment from other service budgets and serves as a mechanism to continually recycle, and redistribute resources within the Department thereby promoting an ongoing program of service improvement and re-alignment.

3.11 As outlined in section 4.5, the pressures referred to above add up to a total of £86,000. This needs to be found from savings targets allocated to individual services. The proposals for delivering these are outlined below.

3.12 The reductions for the Museums and Archives service total £95,000. This is to be achieved via a combination of reductions in staffing costs, maximisation of income and reduction of local allocations.

3.13 The Countryside Services target is £120,000. Plans to achieve this target include a review of charges combined with staff focussed measures such as reductions in the number of hours filled and vacancy management.

3.14 Arts, Tourism, Marketing and Design have a total savings target of £74,000. Increased income targets for the Design service will achieve part of the savings target for Tourism, Marketing and Design. Work to identify other sources to achieve the balance is ongoing. With regards to the Arts Service, some savings will arise from the transfer of services from the Tower Arts Centre to Kings School from 21^st April 2008.

3.15 The target for Sport, Community and Outdoor Services totals £60,000. It is proposed that this will be achieved through reductions in funding to other bodies and through staff related savings.

3.16 The Library Service has an allocation of £0.478 million to be achieved primarily through vacancy management.

3.17 Finally, a reduction of £25,000 needs to be achieved by the policy fund, and the Headquarters function. Of this, the majority will be borne by the policy fund which reduces the amount available for priority service innovation.

3.18 As a consequence of these proposals staff numbers will be reduced by 9 fte (1%). Some of this will be achieved through natural wastage and a number of vacant posts have been identified that will not be filled, or will be filled by redeployment.

4 Cost pressures, redeployment proposals and efficiency improvements - 2008/09 - 2010/11

4.1 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 their budget guidelines

· annual efficiency improvements.

4.2 Details of cost pressures absorbed of £0.786 million and redeployment proposals of £0.86 million are included in Appendix 4. The background to these, and the proposed management strategies are referred to above in section 4.

4.3 The Comprehensive Spending review 2007 sets an annual efficiency target for local government overall of 3%, all of which has to be cashable, compared with 1.25% cashable improvements required by Gershon. The County Council will be required to publish a performance indicator demonstrating how it has contributed to the national target. Appendix 5 identifies efficiency improvements totalling £1.09 million (3.3 % of net budget). These represent £0.86 million usable budget savings which are incorporated in the redeployment proposals in Appendix 4, in addition to £0.23 million savings achieved to meet the cost of staff increments.

5 Review of charges

5.1 Under the policy on charging agreed in December 2002, responsibility for decisions on the level of Library fines, reservation fees and charges for replacement borrower tickets, remains with the Executive Member. There was a review of charges for inter Library Loans in 2007.

5.2 All other charges are reviewed annually by service Managers in accordance with the agreed policies and framework approved by the Executive member. Charges will be adjusted where appropriate with the aim of maximising income or to further specific policy objectives.

5.3 The substantial income generated from charges and retail sales is a significant factor in maintaining the level of services provided in Hampshire by the Recreation and Heritage Department. The level of income is constantly monitored throughout the course of the year, and this will be given particular attention given the uncertain prospects for the national economy and hence people's disposable income, and inclination to spend that income.

6 Other expenditure

6.1 The budget includes some items which are not counted against the cash limit. This includes budgets for central departmental support services, except where they have been given to departments to buy services, and repair and maintenance of buildings. It also includes the costs of member support within this budget which are rechargeable to Policy and Resources budget for corporate and democratic core services. Apart from the capital charges, these have been excluded at this stage as Policy and Resources control these and they have not yet been agreed.

7 Business units

7.1 The trading accounts of the three business units (Hampshire Wardrobe, Arts marketing Hampshire and the River Hamble) are summarised in Appendix 7.

7.2 This is the first year that the River Hamble has been included under the Recreation and Heritage Department since its transfer across from Environment in the Spring.

7.3 The Hampshire Wardrobe, having transferred across from Children's Services is also relatively new to the Recreation and Heritage Department and is nearing the completion of its first year of trading. While deficits are projected for the Unit, as a recently re-launched service this is anticipated. In light of trading performance to date however, these targets are considered to be cautious.

8 Legal implications

8.1 None

9 HR implications

9.1 The workforce implications of the proposed budget for 2008/09 are set out in Appendix 10. The 2008/09 base budget supports a planned workforce of 976 full time equivalent (FTE) staff. This compares with the original estimate for 2007/08 of 985 which is a reduction of 9.

9.2 The net effect of proposals for growth, savings and redeployment of resources (Appendix 4) on staffing levels are as follows:

2008/09	-9 FTEs
2009/10	-9 FTEs
2010/11	-9 FTEs

10 Provisional budget for 2009/10 and 2010/11

10.1 The provisional budget at outturn prices for 2009/10 and 2010/11 for this service is set out in Appendix 11 and summarised below:

2009/10	£33.897 million
2010/11	£34.812 million

11 Impact assessment

11.1 The proposals in this report are derived from the departmental service plan(s) and are in accordance with the budget strategy and the County Council's financial management policy. An impact assessment of the departmental service plan and the financial management policy has been carried out and the proposals in this report are not considered to be discriminatory.

Links(s) to Corporate Strategy
	Yes	No
Hampshire safer and more secure for all	_	_
Maximising well-being	_	_
Enhancing our quality of place	_	_

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:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE

Financial Management Policy Impact Assessment - http://www3.hants.gov.uk/impactassessments/cx-puimpact-tres.htm

Appendices

Appendix		Colour
1	Revised budget 2007/08 - calculation of the cash limit	Yellow
2	Revised budget 2007/08 - comparison with cash limit	Yellow
3	Base budget 2008/09 - summary of cash limit	Pink
3 - Annex 1	Base budget 2008/09 - definition of base budget	Pink
3 - Annex 2	Base budget 2008/09 - significant costs of inflation	Pink
3 - Annex 3	Base budget 2008/09 - significant variations from 2007/08 repriced budget	Pink
4	Proposals for growth and redeployment 2008/09, 2009/10 and 2010/11	Yellow
5	Efficiency statement	Yellow
6	Review of income 2008/09	Yellow
7	Business units - summarised trading accounts	White
8	Revenue budget 2008/09 - analysis of variations	Blue
9	Revenue Budget 2008/09 - budget book detail	Green
10	Workforce levels and costs 2007/08 - 2009/10	Blue
11	Provisional budget 2009/10 and 2010/11	Pink
11 - Annex 1	Provisional budget 2009/10 and 2010/11 - analysis of variations	Blue

Appendix 1

Recreation and Heritage Service

Revised budget 2007/08

Calculation of the cash limit for the revised budget 2007/08

The following table shows the progression from the original budget for 2007/08 to the cash limit for the revised budget 2007/08. Both are at estimated outturn prices 2007/08.

					£'000
Original budget 2007/08 at outturn prices					32,038
Transfers to/from other services and contingency allocations: Transfer from Environment for River Hamble IT costs					31
=	Adjusted original budget				32,069
Inflation Provision added since the original budget for:
Business rates Other variations: Invest to save Busy Bee Scheme Talented Athletes Scheme					86 175 (2) (13)
=		Cash limit for the revised budget 2007/08			32,315

Appendix 2

Recreation and Heritage Service

Revised budget 2007/08

Summary comparing the revised budget with the cash limit

	Cash Limit	Revised Budget	Variation
	£'000	£'000	£'000
Cash limited expenditure
Museums and Archives	3,496	3,496	0
Milestones	304	304	0
Tourism, Marketing and design	575	575	0
Library and Information Service	17,636	17,636	0
Countryside Service	4,550	4,550	0
Arts	2,240	2,240	0
Sport and Community and Outdoors	2,019	2,019	0
Calshot Activities	224	224	0
Policy development Initiatives	506	506	0
Director and Business Development	765	765	0
Total	32,315	32,315	0

Appendix 3

Recreation and Heritage Service

Revenue budget 2008/09

Calculation of the base budget 2008/09 - summary of cash limited expenditure

The following table shows the progression from the original budget for 2007/08 which was prepared at outturn prices 2007/08 to the base budget 2008/09 at outturn prices 2008/09.

		£'000	£'000
Original budget 2007/08 at outturn prices			32,038
Transfers to/from other services and contingency allocations
=	Adjusted original budget		32,038
Increases for inflation to reflect November 2007 prices (see Annex 2)
-	Inflation allocated during 2007/08 from the central inflation contingency		97
-	Excess cost of inflation over the inflation allowance
Original budget at November 2007 prices			32,135
Other variations (see Annex 3)
-	Reductions to offset excess inflation
-	Local Public Services Agreement	(39)
-	Service Contribution for Hants Direct	(74)
-	Allowable base budget growth	30
Allocation for future inflation			921
=	Base budget 2008/09 at outturn prices		32,973

Annex 1 to Appendix 3

Recreation and Heritage Service

Calculation of base budget 2008/09

Parameters used in the compilation

1	Definitions
1.1	The first stage in the construction of the budget for 2008/09 is the preparation of a base budget. The rules used this year are similar to those applied in 2007/08, which are summarised below.
1.2	The 2008/09 base budget is defined as the current year's budget adjusted for: · allocations made for inflation in 2007/08 including the full year effect of the provision made for outstanding pay awards from 2006/07 · exclusion of expenditure included in the 2007/08 budget which was financed by the carry forward of planned underspendings from 2006/07, 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 2007/08 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:
		Children		Variations arising directly from changes in the number of pupils in schools, pupils eligible for free meals and numbers of days in the school year
		Environment		Routine highway and street lighting maintenance arising from variations in road length
				Variations in waste disposal volumes
		Adults		Increased cost of joint finance schemes with health due to operation of the taper

Annex 2 to Appendix 3

Recreation and Heritage Service

Calculation of base budget 2008/09

Significant costs of inflation

1.	Significant costs of inflation between budgeted 2007/08 outturn prices and November 2007 prices
1.1	Pay awards
	Provision was originally made in 2007/08 for pay awards of 2.25% for teachers and other employee groups.					£812,000
	The additional cost in 2008/09 of the pay awards agreed in 2007/08 has been met in full and is:					£60,000
	The pay awards agreed were:
	Negotiating body: Effective date:					%
	Local Government Services Staff Hampshire Management Grades			1 April 2007 1 April 2007		2.475 2.475
1.2	Non pay inflation
	Provision was originally made in 2007/08 for a net amount of £134,000
	This was for general price increases of 2.5% (£415,000) offset by increased income of £281,000 to match inflation in gross expenditure
2.	Allocation for future inflation					£'000
	Provision for all pay awards of 2.5% in 2008/09					699
	Increase in local government employers' pension contributions					102
	Provision for non-pay inflation at 2.5%					167
	Reduction for increased income					(47)
	Total allocation for future inflation					921

Annex 3 to Appendix 3

Recreation and Heritage Service

Calculation of base budget 2008/09

Significant variations

Major variations between the repriced budget 2007/08 and the base budget for 2008/09 at November 2007 prices contributing to the decrease of £83,000 (0.2 %) are set out below:

		Variations against the repriced 2007/08 budget
	Division of Service	£'000	%
	Museums and Archives
	Transfer to Hampshire Record Office from Libraries and Information Service (Local Studies)	76
	Libraries and Information Service
	Transfer to Hampshire Record Office from Libraries and Information Service (Local Studies)	-76
	Reduction for Hants Direct	-41
		-117
	Sport and Community
	LPSA grant	-39
	Policy Fund
	Base budget adjustment	30
	Transfer to Director for Winchester Discovery Centre project staff costs	-50
	Transfer to director for Museum related project post	-31
		-52
	Director
	Transfer to Director for Winchester Discovery Centre project staff costs	50
	Transfer to director for Museum related project post	31
		81
	Total	-60	0.2%

Only variations greater than £10,000 have been included in the above summary. In addition to the variations listed, there have been other reductions comprising the overall reduction of £74,000 for Hants direct (although material reductions affecting individual services have been reflected). The total variations result in a reduction of £83,000.

Appendix 4

Recreation and Heritage Service

Proposals for growth and redeployment 2008/09 to 2010/11

					Staffing (FTEs)
		2008/09	2009/10	2010/11	2008/09	2009/10	2010/11
		£'000	£'000	£'000
	Growth proposals:
	Winchester Discovery Centre	200	200	200	+4	+4	+4
	Library re-structure: Pension costs	250	250	100
	Peoples network	20	40	60
	Travel / transport	-20	-20	-20
	Countryside	150	150	150
	Relocation of staff from North Walls	50	50	50
	IT staffing	30	30	30	+1	+1	+1
	Service Development	106	200	400
	Total growth proposals	786	900	970	+5	+5	+5
	Redeployment proposals:
	Service redirections	-860	-974	-1044	-14	-14	-14
	Total redeployment proposals	-860	-974	-1044	-14	-14	-14
	Net reduction	-74	-74	-74	-9	-9	-9

. Section four of this report details the elements shown in above in Appendix 4

Appendix 5

Recreation and Heritage Service

Cashable efficiency improvements 2007/08 to 2010/11

	2007/08 £m	2008/09 £m	2009/10 £m	2010/11 £m
a) Cashable efficiency improvements producing a budget saving and meeting the Government's definition of efficiency: See Section 4 & Appendix 4	0.8	0.86	0.974	1.044
b) ) Cashable efficiency improvements producing a budget saving but not meeting the Government's definition of efficiency:	0.3
c) Cashable efficiency improvements not producing a budget saving: Staff increments		0.23	0.46	0.69
Total cashable efficiency improvements	1.1	1.09	1.434	1.734
% of base budget	3.3	3.3	4.2	4.9

Notes

Cashable efficiency improvements occur 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) Cashable efficiency improvements producing budget savings and meeting the Government's definition of efficiency include general procurement savings against the budget provision of a 2.5% increase in prices.

b) Cashable efficiency improvements producing budget savings but not meeting the Government's definition of efficiency include introducing new charges for services and fortuitous savings.

b) Cashable efficiency improvements not producing budget savings arise because the efficiency is avoiding unbudgeted cost e.g. 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

Appendix 6

Recreation and Heritage Service

Review of income 2008/09

		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
		£	£			£			£
Museums and Archives	fees and charges, publications, photocopying, microform, microfiche, microfile, photos, searches, cinema use & misc	Various	331	2006	2008	N/A	No	No	N/A
Milestones	fees and charges, publications, misc	Various	444	2006	2008	N/A	No	No	N/A
Libraries	Fines, video/CD/game hire publications	Various	1,181	2006	2008	N/A	No	No	N/A
Countryside	Entrance charges, car parks	Various	757	2006	2008	N/A	No	No	N/A
Arts	Fees and charges, rents, bar, car parks	Various	191	2006	2008	N/A	No	No	N/A
Sport Community and Outdoors	Fees and charges, rents, bar, car park	Various	1,350	2006	2008	N/A	No	No	N/A
Calshot		Various	2,337	2006	2008	N/A	Yes	No	N/A
Marketing & Tourism		Various	45			N/A	No	No	N/A
Total			6,636

* Fees and Charges for the core Library Service arise from the following key sources:

Photocopying charges - £113,000 CD roms, games consoles - £38,000

Fines - £396,000 Music £64,000

Audio books - £25,000

Ticket sales from local events - £16,000

Video / DVD rentals - £490,000

Appendix 7

Recreation and Heritage Service

Business units - summarised trading accounts 2008/09 to 2010/11

	Original budget 2007/08	Revised budget 2007/08	Base budget 2008/09	Provisional forecast 2009/10	Provisional forecast 2010/11
	£'000	£'000	£'000	£'000	£'000
Arts Marketing Hampshire
Income	-388	-254	-338	-349	-335
Expenditure	405	265	338	334	337
Net operating (surplus) / deficit	17	11	0	-15	2
Reserve balance b/fwd	-38	-11	0	0	-15
Reserve balance carried forward at 31st March	-21	0	0	-15	-13
Hampshire wardrobe
Income	-54	-48	-52	-58	-60
Expenditure	72	57	62	63	64
Net operating (surplus) / deficit	18	9	10	5	4
Reserve balance b/fwd	0	-9	0	10	15
Reserve balance carried forward at 31st March	18	0	10	15	19
River Hamble
Income		-640	-668	-701	-701
Expenditure		635	668	701	701
Net operating (surplus) / deficit		(5)	0	0	0
Revenue Reserve balance b/fwd		-95	-100	-100	-100
Reserve balance carried forward at 31st March		-100	-100	-100	-100
	Original budget 2007/08	Revised budget 2007/08	Base budget 2008/09	Provisional forecast 2009/10	Provisional forecast 2010/11
	£'000	£'000	£'000	£'000	£'000
Asset Replacement and Enhancement reserves:
Balance brought forward		(282)	(334)	(377)	(420)
Contribution included in expenditure above		(52)	(43)	(43)	(43)
Balance carried forward at 31st March		(334)	(377)	(420)	(463)

Recreation and Heritage Service Appendix 8

Revenue budget 2008/09

Analysis of variations

Appendix 9

Recreation and Heritage Service

Revenue Budget 2008/09

Reconciliation of the original 2007/08 budget on the following pages with the 2007/08 budget in the published budget book.

		£'000
Net expenditure on page B101 of the published budget book		41,680
Adjustments for items not included in the budget book: - support services and repair and maintenance of buildings - charges to Corporate and Democratic core	-3,626 131	-3495
Adjustments made to the original budget figures:		-
Total net expenditure for 2007/08 original budget shown overleaf on page .		38,185

Appendix 10

Recreation and Heritage Service

Workforce levels and costs

	2007/08	2008/09
	£'000	£'000
Analysis of workforce costs in base budget:
Salaries of permanent staff	25,955	26,994
Temporary/fixed term/casual staff	1,029	996
Agency staff	9
Additional hours	253	214
Total workforce costs	27,246	28,204
Average FTE staff actually in post	985	985
Staffing changes in growth, savings and redeployment proposals:
Variation in staff (FTEs)	-21	-9
Variation in budget (£'000)	(389)	(417)
Workforce implications of budget proposals:
FTE posts available	964	976
Workforce budget available (£'000)	26,857	27,787

Recreation and Heritage Service Appendix 11

Provisional budget 2009/10 and 2010/11

The following table shows the progression from the 2008/09 proposed budget at outturn prices to the provisional budget for 2009/10 and 2010/11 at outturn prices.

			£'000	£'000
Proposed budget 2008/09 at outturn prices				32,973
-	Base budget variations:
-	Exclusion of non-recurring 2008/09 expenditure
-	Full year effect of 2008/09 growth proposals			30
Growth and redeployment proposals
Allocation for future inflation				894
Provisional budget 2009/10 at outturn prices				33,897
-	Base budget variations:
-	Exclusion of non-recurring 2009/10 expenditure
-	Full year effect of 2009/10 growth proposals
Growth and redeployment proposals
Allocation for future inflation				915
Provisional budget 2010/11 at outturn prices				34,812

Annex 1 to Appendix 11

Recreation and Heritage Service

Provisional budget 2009/10 and 2010/11

Analysis of variations

	Proposed Budget 2008/09	Base budget variations	Growth and redeployment	Inflation allocation to 2009/10 outturn		Provisional Budget 2009/10	Base budget variations	Growth and redeployment	Inflation allocation to 2010/11 outturn		Provisional Budget 2010/11
	£'000	£'000	£'000	£'000	%	£'000	£'000	£'000	£'000	%	£'000
Cash limited expenditure by division of service
Museums and Archives	3,603			101	2.8	3,704			101.8	2.8	3,806
Milestones	308			7.4	2.4	316			7.3	2.3	323
Tourism, Marketing and Design	568			17.8	3.1	586			18	3.1	604
Libraries and Information	17,879			474.1	2.7	18,353			486.4	2.7	18,840
	Proposed Budget 2008/09	Base budget variations	Growth and redeployment	Inflation allocation to 2009/10 outturn		Provisional Budget 2009/10	Base budget variations	Growth and redeployment	Inflation allocation to 2010/11 outturn		Provisional Budget 2010/11
	£'000	£'000	£'000	£'000	%	£'000	£'000	£'000	£'000	%	£'000
Countryside	4,699			134.1	2.9	4,833			123.1	2.5	4,956
Arts	2,193			57.4	2.6	2,250			29.1	1.3	2,279
Sport and Community	2,022			58.5	2.9	2,080			44.1	2.1	2,124
Calshot	225			7.3	3.2	232			7.2	3.1	240
Policy Fund	591		30	15.6	2.5	637			76.6	11.2	713
Director and Business Development	885			20.7	2.3	906			21.5	2.4	927
Net cash limited expenditure	32,973		30	894	2.7	33,897			915	2.7	34,812
Expenditure outside cash limit
Capital Charges	2,213					2213					2213
	Proposed Budget 2008/09	Base budget variations	Growth and redeployment	Inflation allocation to 2009/10 outturn		Provisional Budget 2009/10	Base budget variations	Growth and redeployment	Inflation allocation to 2010/11 outturn		Provisional Budget 2010/11
	£'000	£'000	£'000	£'000	%	£'000	£'000	£'000	£'000	%	£'000
FRS 17 Pension adjustments	419					419					419
Repair and maintenance of Buildings	14					14					14
Expenditure met from / (income) transferred to:
Arts marketing Hampshire	0	(15)				(15)	17				2
Hampshire Wardrobe	10	(5)				5	(1)				4
River Hamble	(43)					(43)					(43)
Total net expenditure	35,586	(20)	30	894		36,490	16		915	2.7	37,421

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