Meeting documents

APPENDIX 3: Spending Pressures incorporated into the Financial Plan

No.

Lead Director

Description

Max or amount given

Yr 2

Yr 3

Source/Notes

1. Items incorporated at this stage of the Review - Service-Specific

Lead Director - Jane Ashman

19

JA

Housing - Homelessness - ongoing overspend

100

100

100

Lead Director - John Everitt

32

JE

Modernisation - Additional funding of £108,400 to ensure that both executive and overview and scrutiny arrangements operate effectively; From Council resolution - (5) Council notes that any shortfall in the budget to meet ongoing costs of modernising will need to be addressed in the forthcoming financial plan review

168

168

168

Additional funds totalling £108,400 provided in 02/03, but not ongoing. Further increased costs of £60,000 re. Member Allowances funded one - off in 02/03, but again no ongoing provision.

32a

Exec

Funding Parish Elections - as agreed by Council

30

30

30

Report to Council Nov 02.

34

JE

Corporate costs - ODPM Survey 2003 - this is a statutory requirement - it cost £15k in 2001. Estimate for 2003 will depend on central government requirements

17

17

17

Lead Director - Sarah Berry

36

SB

Libraries - IT related revenue shortfall re: Library Foursite systems and Peoples network

55

55

55

41

SB

Libraries - Staffing costs of People's Network.

45

45

45

Capital costs provided by New Opportunities Fund but no revenue costs. Ongoing running costs difficult to estimate, but may create additional pressures over and above staffing costs.

Lead Director - Jean Hinks

30

JH

Corporate - Audit fees

100

100

100

Current overspend - This pressure assumes that costs will be reduced when we are rated as a 'good' Council by CPA inspection process.

46

JH

Revenues & Benefits - IT system costs -Sx3 software is the core system used for Council Tax and Benefits administration. The Software supplier has re-developed the core product and will de-support the existing product from October 2003. Latest estimate says cost will be higher - say up to £175k.

100

100

100

To upgrade will cost in the region of at least £100k. To replace with another system would cost in the region of £200k. Indications are that whilst replacement would be more expensive the comparable Support and maintenance costs from alternative suppliers are around £50k pa cheaper if NNDR is included. To replace with another system would cost in the region of £200k. Latest cost is nearer £175k

52

JH

Revenues & Benefits - Legislative changes which include the introduction of tax Credits & Pensioner Tax Credits

100

75

75

The DWP are advising authorities that they will need to increase staffing levels by at least 10% to cope with the additional work in benefits arising from the changes. £50k additional admin grant has been paid this year to fund training and software costs and it is understood that this will be doubled for subsequent years. It is estimated that up to four additional staff will be required.

new

JH

Data protection co-ordinator - Legal requirement.

15

15

15

Legal requirement

new

JH

IT Security & virus protection in IT systems

14

14

14

Risk management of IT systems

63

JH

Corporate Estate - The continued effects of the delays in moves for office accommodation - £100-£150k

150

150

150

64

JH

Corporate Estate - The cost of implementing Asset Management Planning

120

120

120

Lead Director - Peter Rowntree

81

PR

Operations - Action Line - unrealistic base financial plan (item OP2) savings target of £25k

25

25

25

The base financial plan requires Action Line to save £25k from their budget in 03/04 (and a further 25k from 04/05). A £25k saving represents a 15% saving on their net budget. This saving was put in on the assumption that Action Line would amalgamate with other similar 'call centre' sections - which may of created scope for savings/rationalisation. For various reasons, this has not happened, no date is yet confirmed for any amalgamation and the call centres are experiencing increasing workload/need. Given these, the 03/04 and 04/05 saving in the base plan should be deleted.

83

PR

Linear Way - Current budget for Linear Way (item OP10) includes re-organisation and development budget. This is unlikely to be spent in 02/03 and requires carrying forward to 03/04.

0

0

Pending a firm longer term solution to Linear Way accommodation, unspent re-organisation/development budget should be carried forward. If amount transferred is too much - the resulting overspend can be carried fwd to match the budget carried forward. Carry fwd should be £80k, but should be cost neutral within the plan.

85

PR

Cemeteries & Crematoria - Health and Safety `topple testing and associated remedial works'. Cost of on-going testing (£120k pa) with as yet unknown remedial cost liability - could be significant.

125

205

205

Health and Safety at cemeteries is becoming a national issue RE:unsafe memorials following 3 deaths nationally. The Health & Safety Executive have said "it is incumbent that Authorities provide safe cemeteries." The Councils own Health & Safety officers are fully supportive of the need to inspect and make safe old and unsafe memorials as this is a significant risk which is currently not managed. The Council would be held liable and incur significant costs should an accident occur and the position remains unaddressed. A three year programme of inspection at all B&NES cemeteries will cost £120k p.a. with on-going testing thereafter approximately £40k-£50k p.a. Whilst remedial action costs are as yet unknown, we should make a provision for £70k per annum over the first three years and approximately £30k thereafter. New memorials are now laid in accordance with updated national regulations. A detailed report is in production for consideration by the Director's Group.

91

PR

Leisure - Lottery Bid - financial plan funding required deferment to 03/04.

0

0

Lottery funding for Chew Valley school may not be required until 03/04 as their initial timescales have slipped. Funding will be required in 03/04. Budget of £25k should be moved to 03/04. If spent this year - will carry the overspend fwd to match the budget. This is a self financing change.

Lead Director - Clive Thomas

104

CT

Revision to plan item PTE12 - Listed Buildings Fees - Savings of £100k in 03/04 will not be achieved as there is no legislation for this charging.

100

100

100

116

CT

Dispose of fridge's (SSA change)

85

85

85

127

CT

Concessionary Fares (SSA change)

72

72

72

New

CT

Transportation Business Plan - to be determined

0

0

Total

1,421

1,476

1,476

2. Items incorporated at this stage of the Review - Cross-Service

Inflation Items

56

All

Miscellaneous Other areas - e.g. inflation above 3% in certain contracts - around £250k possible, and there may be other areas not yet identified. Under rigorous review. In addition a large inflation provision made in base items for Fire possibly being 9.3%, and pay awards.

300

300

300

57

JA/JH

Rental Costs - The total premises costs for the Tramshed will be in the region of £80-£90k including rates, power & cleaning costs, the difference between this and existing provision is a budgetary pressure, current budget is £9k.

55

55

55

£25k extra rates in inflation also

62

JH

Commercial Estate Income - Growth in income is anticipated at around £75k per annum for the next two years and around £350k for 05/06, based on current market expectations. Given that the current inflation target for the Commercial Estate is £250k per annum there will be a likely shortfall to the Financial Plan of £175k 03/04 plus an existing budget shortfall of £200-£300K, (deficit met in 02/03 by change in accounting policy), £350k 04/05 and £250k 05/06 based on current prices.

500

500

500

ongoing effect larger, £750k short in 04/05 and £780k short in 05/06. Aiming to minimise this.

72

JH

Corporate Estate Costs - The Trimbridge House rent review has been settled at £358,000 per annum, £60,500 more than estimated. Charges are now being requested where services take on additional staff and if these materialise then the overall pressure on the Corporate Estate will reduce (though there will be additional costs to be met by services.

61

61

61

Some of this will be offset by savings achieved from Riverside Rental & potentially Service charge, although no detail is yet available on the latter.

Sub Total

916

916

916

3. Items incorporated at this stage of the Review - SSA additions

101

CT

STOP NOW ORDERS" and Modernisation Funding for Consumer Protection £3 million nationally. This equates to approximately £8,500.00 pro rata.

9

9

9

National funding (SSA change)

102

CT

Extra Feeding Stuffs samples required £2.5m nationally. Equates to £7.5k pro rata.

8

8

8

National funding (SSA change)

Sub Total

16

16

16

Total Additions to Plan (Shown as Corp 32 under "All Services" in the detailed Plan)

2,353

2,408

2,408

4. Items not incorporated specifically into the Plan but subject to overall funding limits

4a. Education

74

AD

Teachers pay award Assuming 4% award (1% above financial Plan) cost £436K

436

To be determined

75

AD

Teachers pensions employer contribution increase.

2,500

Currently 8.35% predicted 14%= 5.65% increase - cost £2.5m

76

AD

4 Yr old pupil number increases.

120

Additional 100 pupils cost £120k (unable to quantify accurately at this stage - ongoing).

77

AD

Current grants no longer continuing

755

e.g. Infant Class size £329k, post 16 budget support grant £426k (currently unclear as to whether available in 2003/4).

80

AD

Special Educational Needs (SEN) statements and independent schools cost increases £100K

100

Total Education

3,911

3,911

3,911

4b. Social Services

1

JA

Delayed discharges - Costs based on this year £340k but likely to increase

500

to be determined

These are currently being updated in the light of further data being realised from the DoH etc.

2

JA

Fairer Charging - loss of income from new legislation

160

3

JA

Fair Access to Care - Unknown impact of new eligibility criteria

0

4

JA

Residential/Nursing Fees - Increase in Fees following review of costs

1,000

6

JA

Home Care - ongoing growth in placements

400

Grant Mainstreaming

should be reflected in grant

9

JA

Quality Protects - Mainstreaming of Grant

923

to be determined

These are currently being updated in the light of further data being realised from the DoH etc.

10

JA

Preserved Rights -Mainstreaming of Grant

2,524

11

JA

Residential Allowance - Mainstreaming of Grant

278

12

JA

Removal of residential allowance- Transfer of responsibility from Benefits Agency

1,925

13

JA

Free Nursing Care - Loss of Govt Funding transferred to Primary Care Trust (PCT). Homes increase fees. Based on existing numbers

-1,300

These are currently being updated in the light of further data being realised from the DoH etc.

14

JA

Partnership Grant - shortfall in finance plan (was based on old forecast SSA increase)

238

15

JA

Building Care Capacity Grant - pick up of grant

986

16

JA

Assume met by SSA

-3,902

Total Social Services

3,732

3,732

3,732

5. Items Previously incorporated into the Financial Plan - Council Executive report in November 2002

26

All

Pay and NI, and other net inflation on base model

1,035

1,035

1,035

£800k for pay awards 02/03 (full year effect) + £400k for NI (some in ops and property)

31

JH

Interest on balances

200

200

200

70

JH

Increase in cleaning staff pay is likely to result in increased office cleaning costs.

50

50

50

98

PR

The recent pay award negotiations, implementing a £5.10 p.h. minimum wage, has increased staff costs substantially in the catering and cleaning traded services.

65

65

65

Cleaning increased costs (£75k for 02/03 - 6 months only) will be passed on to users in increased charges. Catering increased costs (approx. £95k) will be managed by a combination of increased sales targets, cost reductions and negotiating additional funding (£65k) for the Primary Schools meals contract from Education.

105

CT

PTE15 - Local Plan - Rephasing request to £75k in 03/04 and £255k in 03/04 (shift of £135k to 04/05 - Inquiry due).

-75

135

0

Amendment is self financing overall

Total

1,275

1,485

1,350