Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

1) Summary of Decision Area:

1.1. Finance and performance monitoring reports are considered regularly throughout the course of the year. This confirms that appropriate management action is taken, and enables the Executive Member to make any decisions necessary to approve this management action.

2) Issues Covered in Report:

2.1. It is anticipated that a balanced budget will be achieved. The position has improved since the last monitoring report as a result of continuing management action, and the allocation of additional resources to cover the increased cost of electricity in the course of the year.

2.2. Performance information covering the first three quarters of the financial year is also presented, and indicates that services' performance will be at, or very close to, target levels.

3) Recommendations:

It is recommended that:

3.1. The performance and balanced budget position for 2008/09 be noted, and the managerial action taken to balance the budget be endorsed.

MAIN REPORT

1) Purpose of the Report

1.1 The purpose of this report is to provide the Executive Member with information on the financial and performance position for 2008/09.

2) Contextual Information:

2.1. A revised budget of £34.616 million was approved in January 2009 Since then, additional resources have been allocated to cover legal costs associated with a Rights of Way case, and the increased cost of electricity.

2.2. Performance information for the first three quarters of 2008/09 is summarised in Appendix E and shows a continuing increase in library visits.

3) Key Issues:

3.1. Previous monitoring reports have drawn attention to the impact of the substantial increase in the cost of electricity (the current contract is for one year only, given the price increase). At its meeting on 6 February, Cabinet approved the allocation of a further £177,000 to Recreation and Heritage in 2008/09 to offset the cost pressure caused.

3.2. At that meeting, Cabinet also approved the allocation of an additional £220,000 in respect of legal costs to an appeal in a major Rights of Way case. This matter had previously been drawn to Cabinet's attention as part of the financial monitoring process.

3.3. These additional allocations, and continuing management action - in particular vacancy management, and continuing to hold a contingency in the Materials Fund - enable a balanced budget to be achieved as outlined in Appendix C to this report. It had previously been reported that, without management action, there was a potential overspend of £225,000. More detailed information for individual Recreation & Heritage Services is shown in Appendix D.

3.4. It has previously been reported that budgets are being prudently managed in order to fund one-off costs associated with the implementation of the Spydus Library Management System. This approach will have the impact of reducing the recurring costs of the system and associated hardware in future years, as well as the system providing improvements in the Library Service.

3.5. Following arbitration, the 2008 pay award is 2.75% which is 0.3% higher than the offer which has been reflected in budget monitoring. The additional cost for Recreation and Heritage is estimated at £70,000 per annum. Every attempt will be made to deliver a balanced budget despite this additional cost.

3.6. The Director has approved, under his delegated powers, the following virements from the revenue budget to the capital programme:

· Calshot and Tile Barn - £130,000 - as previously reported, to fund agreed projects.

· Countryside Service - £83,000 - for major footpath works, Sign Workshop machinery and depot refurbishments.

· Arts Service - up to £80,000 - for the development of a box office system

3.7. The approved Capital Programme for 2008/09 included starts to the value of £2.9 million. This was enhanced to almost £3.8 million by projects carried forward from the previous year, and the addition of £307,000 for the externally funded Playbuilder Programme.

3.8. It is estimated that schemes to the value of £1.5 million will have been started in the course of 2008/09, and that the carry forward to 2009/10 will therefore be in the region of £2.3 million. Almost half of this relates to the Lottery-funded Community Libraries programme; a report on progress on this programme was considered at the January Executive Member Decision Day.

3.9. Performance information for key indicators for Recreation and Heritage Services is shown in Appendix E.

3.10. The Library Service visits - expressed per 1,000 population - is showing an increase of some 4% over the 2007/08 figure, and it is anticipated that total visits will exceed 7 million for the first time in at least five years.

3.11. The projections for other services are relatively cautious, and most are likely to be at, or very close to, target by 31 March 2009. Indeed, most indicators are showing an improvement compared with the same stage in 2007/08. One exception is the Countryside Service, which has been affected by the adverse weather experienced at times in the course of the year.

4) Outline of Options:

4.1. Option 1:

a) Would be taking no action, with negative consequences for

resource management.

5) Conclusions:

5.1. As a result of management action, and with the allocation of additional budget, it is anticipated that a balanced budget will be achieved and that performance targets will be met.

6) Recommendations:

Please see Executive Summary for recommendations.

CORPORATE OR LEGAL INFORMATION:

COMPREHENSIVE RISK AND IMPACT ASSESSMENTS:

This report is in accordance with the budget strategy and the County Council's financial management policy. This policy applied equally to all Services and ensures consistent financial management decisions across all policies.