APPENDIX 1 - NEW LEISURE ARRANGEMENTS COSTING ANALYSIS

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

Total

Notes

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

Contract Payments

Authority Payments

1

276,353

368,134

334,353

244,312

75,504

28,134

28,134

28,134

58,161

68,134

16,987

1,526,340

NNDR

2

34,140

45,500

45,500

45,500

45,500

45,500

45,500

45,500

45,500

45,500

11,313

454,953

Contingency Items

3,750

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

1,250

50,000

310,493

413,634

379,853

289,812

121,004

73,634

73,634

73,634

103,661

113,634

28,300

1,981,293

Leisure Management Costs

New Leisure Manager

32,550

43,400

43,400

43,400

43,400

43,400

43,400

43,400

43,400

43,400

10,850

434,000

Manager's On-cost

6,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

2,000

80,000

Pension Added Years

2,090

2,780

2,780

2,780

2,780

2,780

2,780

2,780

2,780

2,780

695

27,805

40,640

54,180

54,180

54,180

54,180

54,180

54,180

54,180

54,180

54,180

13,545

541,805

Set-up Costs

External Expertise

10,090

41,165

174,974

127,889

354,118

Interim Management

29,880

22,210

52,090

Works Costs

9,861

9,861

Severance Costs

102,518

102,518

10,090

41,165

204,854

262,478

0

0

0

0

0

0

0

0

0

0

518,587

Invest to Save Loan

3

137,300

137,300

Total Costs

10,090

41,165

204,854

750,911

467,814

434,033

343,992

175,184

127,814

127,814

127,814

157,841

167,814

41,845

3,178,985

Budgets

Leisure Facilities

4

375,000

500,000

500,000

500,000

500,000

500,000

500,000

500,000

500,000

500,000

125,000

5,000,000

Car Parks Income

5

36,000

48,000

48,000

48,000

48,000

48,000

48,000

48,000

48,000

48,000

12,000

480,000

Culverhay Income

15,750

21,000

21,000

21,000

21,000

21,000

21,000

21,000

21,000

21,000

5,250

210,000

Set-up Cost

10,000

40,000

70,000

120,000

Average Property Spend

6

112,500

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

37,500

1,500,000

Insurance Saving

7

6,750

9,000

9,000

9,000

9,000

9,000

9,000

9,000

9,000

9,000

2,250

90,000

Total Budgets

10,000

40,000

70,000

546,000

728,000

728,000

728,000

728,000

728,000

728,000

728,000

728,000

728,000

182,000

7,400,000

Council Savings Achieved

8

90

1,165

134,854

204,911

(260,186)

(293,967)

(384,008)

(552,816)

(600,186)

(600,186)

(600,186)

(570,159)

(560,186)

(140,155)

(4,221,015)

Planned Savings

Leisure - Original Savings

4

(187,500)

(250,000)

(250,000)

(250,000)

(250,000)

(250,000)

(250,000)

(250,000)

(250,000)

(250,000)

(62,500)

(2,500,000)

Leisure - Additional Savings

4

(150,000)

(150,000)

(150,000)

(150,000)

(150,000)

(150,000)

(150,000)

(150,000)

(150,000)

(1,350,000)

Property Savings

6

(120,000)

(120,000)

(120,000)

(120,000)

(120,000)

(120,000)

(120,000)

(120,000)

(120,000)

(120,000)

(1,200,000)

Total Planned Savings

(307,500)

(520,000)

(520,000)

(520,000)

(520,000)

(520,000)

(520,000)

(520,000)

(520,000)

(520,000)

(62,500)

(5,050,000)

Council's Budget Deficit

512,411

259,814

226,033

135,992

(32,816)

(80,186)

(80,186)

(80,186)

(50,159)

(40,186)

(77,655)

828,985

Exclude

Property / Insurance

6

750

(39,000)

(39,000)

(39,000)

(39,000)

(39,000)

(39,000)

(39,000)

(39,000)

(39,000)

(39,750)

(390,000)

Leisure's Budget Deficit

511,661

298,814

265,033

174,992

6,184

(41,186)

(41,186)

(41,186)

(11,159)

(1,186)

(37,905)

1,218,985

Don't repay of I2S Loan

3

(137,300)

Leisure Deficit

374,361

Notes

1

The model states all future costs at current prices.

2

The authority payment assumes 100% discretionary NNDR relief is granted, otherwise the payments will increase to compensate.

When 100% relief is granted, an equilivant cost will still be needed to fund the award.

3

An invest to save loan was used in 2001/02 to fund Fitness Suites and Zany Zones. The outstanding balance will now be written off in 2003/04 or failed to be repaid.

4

The continuing budget for leisure facilities would have been £500K p.a., but the Financial Plan assumed savings of £250K in 2003/04 and £400K thereafter.

5

Car parking (DDES) pays a notional rent for Bath sport centre car park.

6

Property services cannot provide an exact figure for maintenance saving, as budgets are allocated by priority risk assessment rather than service.

The £150K represents a notional saving of the difference between estimated expenditure for 2003/04 of £70K and the typical expenditure in previous years.

The contract includes property risk transfer, though no budgets have transferred from property services to leisure to reflect this.

These budgets have been retained by Property services to address the repairs backlog elsewhere.

7

A saving is achieved on Council insurance premiums in the light of risk transfer (public liability, property and income loss).

8

The overspend in 2002/03 was partially contained but mainly was £125K write off approved by the executive.