Meeting documents

1 THE ISSUE

1.1 This report contains information about the Council's proposed service delivery and resource planning framework and timetable for 2007-08 onwards.

1.2 The report also contains information concerning the financial issues and pressures facing the Council in 2007/08 and future years and the work being undertaken to meet financial targets.

2 RECOMMENDATION

2.1 Agree the proposed strategic approach to and timetable for the service and resources planning process as set out in Appendix 1.

2.2 Note the background, key issues and pressures that will need to be considered when developing service delivery plans and when recommending a financial plan and budget to Council in February 2007 as set out in Appendix 2.

2.3 Request the Overview and Scrutiny panels to consider and comment on the proposed high level service and financial strategy, including those service planning parameters which will affect the services within the Panels' remit, and in particular to focus on value for money, and service and community impact in relation to their service portfolio.

3  FINANCIAL IMPLICATIONS

3.1 These are contained throughout the report and its Appendices, particularly Appendix 2.

3.2 There are no direct additional financial implications from the proposals themselves.

3.3 Much of the effort to agree processes and documentation and then to implement them has and will continue to be met from existing resources as a key part of the management role as set out in the Council's management competences. In addition:

Strengthening arrangements in service planning to demonstrate and improve value for money for service users and taxpayers is a key priority in increasing customer satisfaction.

The proposed framework is sensible and proportionate to ensuring scarce resources are aligned to corporate priorities and improving the delivery of services and cross-Council priorities.

3.4 The proposals are designed to inform members' and officers' decision-making in a more systematic way.

3.5 Nevertheless, the Council Executive and Directors will need to keep the processes under review to ensure that they are understood and operate effectively with a view to refining them over time.

4 COMMUNITY STRATEGY OUTCOMES

4.1 The proposed framework for service and financial planning aims to ensure that scarce resources are aligned to corporate priorities and improving the delivery of services and cross-Council priorities. Many of the cross-Council priorities are reflected in the Community Strategy.

5 CORPORATE IMPROVEMENT PRIORITIES

5.1 Strengthening arrangements in service planning to demonstrate and improve value for money for service users and taxpayers is a key priority in increasing customer satisfaction.

5.2 The service and financial planning process aims to ensure scarce resources are aligned to corporate priorities and improving the delivery of services and cross-Council priorities, linking performance with resources and value for money.

6 CPA KEY LINES OF ENQUIRY

6.1 The proposed process contributes towards the "Prioritisation of ambitions" KLOE by ensuring that all objectives and targets are an appropriate reflection of priorities as set out in the corporate plan.

6.2 The service planning parameters reflect the need to increase capacity to deliver the ambition for the community by asking lower/higher priority services to illustrate the impact of increases/decreases to their financial plan targets to facilitate potential redirection of resources to corporate priorities.

7 THE REPORT

7.1 The Council has always strived to improve its corporate processes to ensure an alignment between agreed corporate priorities, resources, efficiency and value for money.

7.2 This report brings together proposals for an integrated service and resources planning framework and timetable which take into account a number of issues which need to be addressed.

7.3 This report sets out to agree the process, parameters and timetable for the service and financial planning process, to revise the Financial Plan and to set the 2007/08 capital and revenue budgets and Council Tax.

7.4 The key objectives of the framework are to:

Ensure that all objectives and targets are an appropriate reflection of priorities as set out in the Corporate Plan.

Link performance with resources and value for money.

Set the overall direction for the Council in terms of performance and resource

Facilitate more focussed performance management with clear accountability.

Provide a clear framework for member involvement in planning and performance management.

Demonstrate and evidence prioritisation.

7.5 Appendix 1 contains the proposed service delivery and resource planning process. The key features of the proposals include:

An earlier start to the process than in previous years. To this effect the templates and guidance have been developed and the process is underway with a view to first draft service delivery plans being completed by the end of September 2006.

An annual corporate, high level value for money check building on the 2006 check reported to the Council Executive in July 2006.

The introduction of a Service Delivery Programme for Assistant Directors as a group to ensure corporate priorities and objectives are met and co-ordinated effectively as well as providing a corporate focus managing performance and finance in line with targets set in the Corporate and Financial Plans. Reporting will be by exception to the Strategic Director's Group.

The introduction of Service Delivery Plans at Assistant Director level, with supporting team plans as required to clarify objectives and targets and reinforce accountability for delivery.

Service Delivery Plans providing a sharper focus on the long term vision of the service/function, value for money and what needs to happen to make the changes happen.

Financial plan targets overlaid by service planning parameters to reflect improving value for money and a need for selected lower/higher priority services to illustrate the impact of /- £50K/£100K/ £250K (or 10% if greater than £250k) over and above the cash limit.

A five year capital programme with a ten to twenty year outlook.

A clearer timeline for the process that identifies accountabilities to complete the processes.

Performance management arrangements linked to the Council new management arrangements and roles.

The earlier start to the process, facilitating input from Overview & Scrutiny.

7.6 Appendix 2 sets out the background to the existing Financial Plan. The key features include:

That 2007/08 is the second year of a two year settlement

That the financial plan parameters for service delivery planning have been updated in respect of latest information on the collection fund deficit, the council tax base, Coroner's costs, and the July council decisions in relation to the Spa project and Spa Claims Management.

That there are a number of other potential revenue budget pressures such as:

Maintaining the Council's commitment to not add to the capital programme significantly without additional capital receipts significantly in excess of the level already planned, and/or significant other sources of external funding. This requires an explicit balance between affordability (in relation to the revenue budget and reserves), maintenance, new service based projects, and development projects.

7.7 The position faced by the Council remains challenging and uncertain, and it is critical that the Executive is able to maintain financial discipline to underpin the strategic approach.

8 RISK MANAGEMENT

8.1 The report author and Lead Executive member have fully reviewed the risk assessment related to the issue and recommendations, in compliance with the Council's decision making risk management guidance. The proposals are consistent with this guidance and includes consideration of risk in:

Service Plans and service-level risk registers.

Capital programme project initiation, business cases and Project Execution Plans.

8.2 The Council's overall risk management strategy and processes have been reviewed (together with the Corporate Risk Register) and reported to the Council Executive at its meeting in June 2006. This includes formal quarterly reviews of service risk registers and the corporate risk register as part of the Council's performance management arrangements.

8.3 It is also proposed to continue the formal Director's Review for robustness and risks within the Council's capital and revenue budgets and upon which the Council's s151 officer (the Strategic Director Support Services) gives assurances and makes recommendations on the adequacy of reserves.

9 RATIONALE

9.1 This report sets out:

The current known background and context for the review of the financial plan.

The changes in the service and resources planning process in terms of improvement and to reflect the new and emerging management arrangements arising from the corporate re-structuring of the Council.

9.2 The high level timetable for the service and resources planning process as required under the Council's constitution.

10 OTHER OPTIONS CONSIDERED

10.1 This report contains information about the Council's financial outlook. The service and resources planning process will explore alternative options to meet the Council's priorities within available financial resources.

10.2 Corporately, the options considered at the time of setting the 2007/08 budget will be concerned with balancing the level of Council Tax with the level of services provided by the Council.

11 CONSULTATION

11.1 Consultation on the proposals have been undertaken with the Strategic Directors' Group on 17^th July, the informal Executive on 19^th July, a launch meeting with Assistant Directors, Heads of Service and service managers on 31^st July, and with supporting finance staff.

11.2 Consultation on this report has been undertaken with the Chief Executive Council's Section 151 Officer and the Council's Monitoring Officer.

12 ISSUES TO CONSIDER IN REACHING THE DECISION

12.1 At this stage the report deals mainly with corporate issues, but the Service Delivery Plans will address a wider range of issues including Social Inclusion; Customer Focus; Sustainability; Human Resources; Property; Young People; Equality (age, race, disability, religion/belief, gender, sexual orientation); Human Rights; Corporate; Health & Safety; Impact on Staff; and Other Legal Considerations.

13 ADVICE SOUGHT

13.1 The Council's Monitoring Officer (Council Solicitor) and Section 151 Officer (Resources Director) have had the opportunity to input to this report and have cleared it for publication.