BOROUGH OF POOLE
BUDGET
2018/2019
Civic Centre Poole Dorset BH15 2RU (01202) 633394
BUDGET 2018/2019
CONTENTS
Council Tax Requirements and Budget Summary
Explanatory Notes (Including note on Financial Regulations)
Revenue Budget per Theme People - Children People - Adult Social Services People - Other Places Business Improvement
Housing Revenue Account
Subjective Analysis & Budget Summary in the Service Reporting Accounting Format
Medium Term Financial Plan Report
The report contains the following appendices
Appendix 1 Timetable and Budget summaries including assumed savings
Appendix 2 Reserves Strategy 2018 to 2021
Appendix 3 Capital Programme 2018 to 2021
Appendix 4 Treasury Management Strategy
Appendix 5 Equalities Impact Assessment (EQIA)
Appendix 6 Comments on the December MTFP Update report from the Business Improvement Overview and Scrutiny Committee
Appendix 7 Chief Officer’ Pay Policy Statement
Glossary of Terms
BUDGET 2018/2019
COUNCIL TAX
REQUIREMENTS
AND
GENERAL FUND
BUDGET SUMMARY
Borough Council Tax Requirements
BUDGET BUDGET 2017/18 2018/19 £'000's £'000's
74,435 Council Tax Requirement Precept - Poole Borough Council 80,035
COUNCIL TAX INFORMATION 74,435 Precept - Poole Borough Council 80,035 10,968 Precept - Dorset Police and Crime Commissioner 12,369 3,979 Precept - Dorset and Wiltshire Fire and Rescue Authority 4,564
89,382 TOTAL PRECEPTS 96,968
56,366 Council Tax Base 57,181
£1,320.57 Poole's Council Tax (Band D) £1,399.68 £194.58 Dorset Police and Crime Commissioner (Band D) £206.58 £70.59 Dorset and Wiltshire Fire and Rescue Authority (Band D) £72.70
£1,585.74 Total Council Tax (Band D) £1,678.96
2017/18 Valuation Band 2018/19 £ £1,057.16 0 to 40,000 A £1,119.31 £1,233.35 40,001 to 52,000 B £1,305.85 £1,409.55 52,001 to 68,000 C £1,492.41 £1,585.74 68,001 to 88,000 D £1,678.96 £1,938.13 88,001 to 120,000 E £2,052.07 £2,290.51 120,001 to 160,000 F £2,425.16 £2,642.90 160,001 to 320,000 G £2,798.27 £3,171.48 320,001 and above H £3,357.92 GENERAL FUND BUDGET SUMMARY 2018/2019
Net Gross Gross Net Budget Expenditure Income Budget 2017/18 2018/19 2018/19 2018/19 £000's £000's £000's £000's
Theme Areas People - Children's Services 31,235 71,313 (40,302) 31,011
People - Adult Social Care 40,741 61,555 (19,761) 41,794
People - Other 1,322 13,302 (11,714) 1,588
Places 32,316 65,424 (33,168) 32,256
Business Improvement 5,562 71,153 (68,366) 2,787
Pensions 2,535 2,716 0 2,716
Non distributed costs - Surplus property costs 201 177 0 177
Efficiency Review Programme and Increment Freeze (592) (81) 0 (81)
Courts and Fisheries 259 319 0 319
Apprenticeship Levy 315 0 0 0
Cost of theme controlled services 113,894 285,878 (173,311) 112,567
Corporate Income and Expenditure Environment Agency 199 204 0 204 Interest on borrowings 0 147 147 Interest on cash investments (58) 0 (152) (152) Investment Income (1,989) 411 (2,512) (2,101)
Net Operating Expenditure 112,046 286,640 (175,975) 110,665
Other financial items impacting on the general fund Notional depreciation charges included within cost of services (13,297) (12,297) (12,297) Revenue contribution to capital - general 0 0 0 0 Revenue contribution to capital - ICT investment plan 165 0 0 0 Provision for repayment (MRP) 678 678 0 678 Provision for repayment of prudential borrowing 2,021 2,262 0 2,262
(10,433) 2,940 (12,297) (9,357)
Other funding before Council Tax Requirement New Homes Bonus Grant (2,156) (1,777) (1,777) Adult Social Care one off grant (640) 0 0 Collection Fund Surplus Distribution (council tax) (941) (1,046) (1,046) Income from Business Rates (27,960) (27,332) (27,332) Tariff to Government 13,089 13,116 13,116 Grant - compensation for national business rate initiatives (net) (1,332) (2,509) (2,509) Collection Fund surplus distribution (business rates) Net (700) 0 0 Revenue support grant (from Government) (4,878) (1,725) (1,725) Transitional Grant (862) 0 0 (Use) of Earmarked Reserve (798) 0 0
(27,178) 13,116 (34,389) (21,273)
Total Council Tax Requirement 74,435 302,696 (222,661) 80,035
Notes: debits to financial reserves are treated as expenditure, credits as income 2017/18 net budgets have been restated into adjusted reporting formats to aid comparison.
BUDGET 2018/2019
EXPLANATORY
NOTES
(INCLUDING REFERENCE TO
FINANCIAL REGULATIONS AND
CONSTITUTION)
BUDGET 2018/2019
EXPLANATORY NOTES
The Budget is presented in accordance with the theme structure adopted for the Cabinet of the Council.
Within each theme the budgets are shown by statements of service.
These statements of service have been structured in accordance with the reporting standards required by the Service Reporting Code of Practice (SeRCOP).
The main items included in each standard (subjective) heading within the revenue cost plan section of the statements of services are as follows: -
Employees
Salaries, wages, national insurance and superannuation for all employees whether permanent or temporary, training Members’ Allowances
Premises Related Expenses
Repairs and maintenance of buildings, fixed plant and grounds Rents, Rates, and Water services Energy costs Cleaning and Domestic Supplies Apportionment of expenses of operational buildings
Transport Related Expenses
Vehicle repairs maintenance and running costs Contract Hire Public transport and car allowances Recharges under the Council’s Vehicle provision and maintenance contract
Supplies and Services
Equipment (including computer purchases), furniture and materials Protective clothing, uniforms and laundry Printing, stationary, and general office expenses Communication (radio’s/telephones) Expenses (including subsistence and conferences) Grants and subscriptions Contributions to provisions (bad debts etc)
Agency and Contracted Services
Payments to third parties for local authority services provided by external providers (residential/home care, grounds maintenance, waste disposal etc)
Transfer Payments
Payments for which no goods or services are received directly in return by the local authority. (Housing Benefits, Concessionary Fares, Bus Subsidies etc)
Support Costs
Central support costs (variable) relates to the reallocation of staff and associated costs for the following Services of the Council – Financial / Information Technology / Legal / Personnel / Debtors / Document Management / Postal and Courier Service / Typing Service. The amount being recharged is in accordance with a Service Level Agreement between the two units and is unlikely to be a predetermined amount for the year.
Intra departmental support covers apportionment’s of the management and administration costs of the service unit (s), which are responsible for the particular statement of service.
Support Costs Other, relates to costs, which support the provision of services, and is provided by units not within either of the previous two categories.
Depreciation and Impairment
Depreciation - this represents the cost of using assets. Arrived at by dividing the value of the asset in the balance sheet over the number of years it is considered viable.
RCCO & Repayments to capital reserves
Service specific direct revenue financing of capital expenditure (formerly known as “Revenue Contributions to Capital Outlay) Repayments for purchases from the Capital Replacement Reserve (CRR)
Capital Financing Costs
Corporate costs associated with funding expenditure relating to capital items. This includes contributions from revenue to fund capital expenditure, interest payments associated with debt outstanding and the setting aside of monies to repay the principal sums outstanding
Government Grants
Specific and special government grants
Other grants, reimbursements and contributions
Income received from other bodies to finance joint functions, projects, or undertakings.
Customer and Client Receipts
Sales of products, materials, data, technology or surplus commodities. Fees and Charges for services, use of facilities, admissions, lettings. Rents - land and property based charges, wayleaves etc
Interest
Amounts received as returns from investment activity
Recharges to other revenue heads
The value of costs recharged to internal users.
Below the line – Allocable Costs
Central support costs (fixed) relates to the reallocation of staff and associated costs for the following Services of the Council – Financial / Information Technology / Legal / Personnel / Debtors / Document Management / Postal and Courier Service / Typing Service. The amount being recharged is fixed and based on a Corporate Service Level Agreement between the unit and the Council, although the allocation to individual Service Units may vary from year to year.
In line with SeRCOP all central overheads should be apportioned to services to reflect the “true” cost, except a limited few exceptions that are unapportionable (Corporate and Democratic Core costs). This list includes items such as Members allowances, Civic Ceremonials, Cabinet and Council meetings, External Audit & Inspections, Chief Executive and monitoring officers costs when acting in this capacity etc.
FINANCIAL REGULATIONS
Financial Regulations and the Constitution provide the framework for managing the authority’s financial affairs. They apply to every member and officer of the authority and anyone acting on its behalf.
To conduct its business efficiently, a local authority needs to ensure that it has sound financial management policies in place and they are strictly adhered to.
Financial Regulations and the Constitution have not been reproduced as part of this budget book. However members and officers are reminded that they can be found by the following procedure; -
o Open the Loop. o Select “Corporate Policies’ from the top banner o Choose the “Use of Resources” option. o Choose “Financial Regulations” OR “Procurement” then ‘Financial Regulations’.
Alternatively they can be found on the “boroughofpoole.com” by; -
o Choose the “Your Council” option in the Services block on the left hand side of the initial screen. o Click on “How the Council Works” . o Select “The Constitution” in the left hand side column. o You will be presented with a downloads section on the right hand side. Click on “The Constitution – Financial Services Regulations ”.
Should you have any questions the following staff are available to help;
Nicola Webb - Head of Accountancy (01202) 633296
Matthew Filmer - Finance Manager (01202) 633178 Anna Fresolone - Finance Manager (01202) 633161 Tina Worthing - Finance Manager (01202) 634257
BUDGET 2018/2019
PEOPLE
CHILDREN’S
SERVICES
THEME
BUDGET 2018/2019
Index to People – Children’s Services Theme
Financial Summary
Statements of Service Reference No.
- Schools Budgets and Early Years Education and Childcare Children 1
- Strategic Planning, Commissioning & Contracting and Safeguarding Children Children 2
- School Support Services Children 3
- Special Educational Needs and Disability (SEND) Children 4
- 0-19 Year Old Services Children 5
- Children and Young People Social Care (CYPSC) Children 6
BUDGET 2018/2019
INDEX OF SERVICES
People – Children’s Services Theme
Children 1: Schools Budgets and Early Years Education and Childcare funded by the dedicated schools grant Grant (DSG), the Education Skills Funding Agency (ESFA), the Pupil Premium and Universal Infant Free School Meals (UIFSM) Grant (Department for Education direct grant)
Children 2: Strategic Planning, Commissioning & Contracting: Contracts support and planning & commissioning function for Children’s Services. The team supporting the schools pupil data system under SLA, needs analysis, and complaints.
Safeguarding Children: Chairing of Child Protection Conferences, independent reviewing officers for children in care, safeguarding support, Designated Officer for allegations against people working with children. Quality assurance for social care services, management of joint budget for Local Safeguarding Children Board.
Children 3 Education Capital Team: school organisation, pupil place planning, Children's Services capital strategy and capital programme, asset management for schools and other children's services facilities.
Assuring Access to School: Admissions process, appeals preparation and presentation, consultation on policy and published admissions numbers. Admissions Forum, LAs functions in relation to pupils excluded from schools, education welfare Service, home to school transport, Children’s Act 1989 duties and school attendance work.
Schools Strategic Management: Statutory and regulatory functions for maintained schools and residual functions for academies. Services includes corporate planning for the education service as a whole and financial, legal, insurance and personnel functions supporting schools.
Facilitating School Monitoring and Intervention: Contributions to joint working with Bournemouth for music, arts, physical education & sport (MAPS) team and the 14-19 team. Services includes statutory functions for school review, assessment, SACRE, equalities, intervention for schools causing concern, governor support and leadership succession.
People – Children’s Services Theme
Children 3 cont./ Grammar School Transport: Discretionary transport provided to grammar schools managed by Transportation Services.
Children, Young People & Learning Management costs: Service Unit Head, business support and central support charges
Children 4: Child Health and Disabilities social work team: assessment and family support services for child health and disabilities, including protection services, care leavers, fostering and residential placement services.
Special Educational Needs (SEN): Support for children with special educational needs at school, FE colleges and out of school, including the LA share of the budget for education provision for excluded and hard to place pupils. Also includes LA functions for education psychology, parent partnership and disagreement resolution arrangements and the special educational needs inclusion support service (SENISS) for schools.
Children 5: Open Access and Targeted Services 5 - 19 Service: Educational programmes and projects in which young people choose to be involved.
Under 5’s Services (including Children’s Centres and Family Information): Child care services, strategy and administration for the distribution of the 2, 3 and 4 year old funding, workforce development, and support for under 2’s with additional needs. Children centre provision through multi-agency working.
Children 6: Children and Young People’s Social Care: Assessment and family support for children in need, child protection, Children Looked after including care leavers, fostering, adoption and residential placements.
Youth Justice: The costs of services relating to young offenders - including secure accommodation, costs of youth offending teams (YOT's), remand fostering, bail support and community service costs.
People - Children's Services Budget Summary 2018/2019
Net Gross Gross Net Sheet No: Statement of Service Description Budget Expenditure Income Budget 2017/18 2018/19 2018/19 2018/19 £000's £000's £000's £000's
CHILDREN 1 Schools Budgets & Early Years Education & Childcare 16 25,947 (25,932) 15 CHILDREN 2 Strategic Planning, Commissioning & Contracting & Safeguarding Children 1,714 2,291 (580) 1,711 CHILDREN 3 School Support Services 4,229 5,159 (821) 4,338 CHILDREN 4 Special Educational Needs and Disability (SEND) 3,039 15,250 (11,833) 3,417 CHILDREN 5 0-19 year old Services 4,717 5,436 (632) 4,804 CHILDREN 6 Children and Young People's Social Care (CYPSC) 13,908 15,040 (504) 14,536
Children's Services 27,623 69,123 (40,302) 28,821
Education capital charges 3,612 2,190 0 2,190
Total for People - Children's Services 31,235 71,313 (40,302) 31,011 STATEMENT OF SERVICE 2017-2019 Sheet No. CHILDREN'S SERVICES 1 Previously Children 1 and Children 9 Service : School and Early Years budgets funded by the Dedicated School Grant (DSG), the Education Skills Funding Agency (ESFA), the Pupil Premium and Universal Infant Free School Meals (UIFSM) Grant (Department for Education direct grant). Description of Service : Funds delegated to individual Schools and Early Years settings through the Borough's Local formulae, Pupil Premium, EFA Post 16 funding and UIFSM Grant Theme: People - Children Responsible Officer : Adam Richens
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent - Schools 291.81 305.15 Full Time Equivalent - Early Years DSG Funded 13.34 Adjustment to Maintained school teachers 57.05 Adjustment to Maintained school support staff 77.34 Vacant posts deleted - Early Years Support (1.11) Adjustment to hours in Early Years Support (0.35) Total Full Time Equivalent 305.15 438.08 FTE movements reflect the no further conversions to Academy status.
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Budget Resource Forecast Year 1 2017/18 2017/18 2017/18 2018/19 £000's £000's £000's £000's Employee Costs 469 469 469 421 Premises 127 209 158 137 Transport 3 3 3 2 Supplies and Services 94 94 94 96 Transfer Payments 19,209 28,583 28,647 25,291 Total Annual Costs 19,902 29,358 29,371 25,947
Government Grant - UIFSM (411) (411) (411) (380) Government Grant - EFA Post 16 (821) (821) (821) (1,917) Government Grant - Pupil Premium (1,135) (1,135) (1,135) (992) Dedicated Schools Grant (17,519) (26,976) (26,371) (22,643) Total Annual Income (19,886) (29,343) (28,738) (25,932) Budgeted Cost 16 15 633 15
Budget Changes 2017/18 to Budget 2018/19 16 16 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (1) (1) Base Budget 15 15 Academy conversions Rates adjustment for existing Maintained Schools 10 Formula Funding for existing Maintained Schools 4,104 DSG for Maintained Schools Formula Funding & Rates (4,114) Adjustment to grant payments to existing Maintained Schools 953 Adjustment to grant funding received for existing Maintained Schools (953) Other Changes Increase in payments to nursery providers - extended entitlement 673 Saving in Early Years High Needs spend (32) DSG to fund Early years activity changes (641) Increase in funding due to National Funding Formula (338) Increase in payments to schoosl through National Funding Formula (NFF) 338 Budgeted Cost 15 STATEMENT OF SERVICE 2017-2019
Sheet No. CHILDREN'S SERVICES 2 Previously Children 2 and Children 11 Service : Strategic Planning, Commissioning, Contracting and Safeguarding Description of Service : Planning Commissioning, Contracting, Data, Safeguarding and Complaints functions for Children's Services Theme: People - Children Responsible Officer : Phil Hornsby
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent - Children 2 11.15 18.77 Full Time Equivalent - Children 11 7.62 Contracts Officer increased hours 0.41 New Conference Review Co-ordinator post 0.50 Care Quality Advisor post deleted (1.00) Troubled Families staff transfer from CYPSC 2.00 Total Full Time Equivalent 18.77 20.68 Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Budget Resource Forecast Year 1 2017/18 2017/18 2017/18 2018/19 £000's £000's £000's £000's Employee Costs 902 897 923 1,035 Premises 66 66 66 0 Transport 5 5 5 5 Supplies and Services 101 101 101 88 Contractor Payments 411 411 361 426 Support Costs 688 688 688 624 Total Annual Costs 2,173 2,168 2,144 2,178
Government Grants - Troubled Families (460) (460) (460) (460) Other contribs.reimburse.grant (100) (100) (100) (100) Fees and Charges (9) 0 Recharges (20) (20) (20) (20) Total Annual Income (589) (580) (580) (580) Net Cost 1,584 1,588 1,564 1,598 Total Allocable Costs 130 47 47 113 Budgeted Cost 1,714 1,635 1,611 1,711
Budget Changes 2017/18 to Budget 2018/19 1,714 1,714 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (79) (79) Base Budget 1,635 1,635 Employee Budgets Pay Award 16 Pension Costs 5 21 Other Changes Business Support Recharge adjustment - Adult Social Care 17 Local Safeguarding Childrens Board 8 Independent Review Officer 30 55 Budgeted Cost 1,711 STATEMENT OF SERVICE 2017-2019
Sheet No. CHILDREN'S SERVICES 3 Previously Children 3, 6, 7, 10, 13 and 14 Service : School Support Services Description of Service : Education, Pupil Planning and Capital Team Assuring Access to Schools Schools Strategic Management Facilitating School Monitoring & Intervention Grammar School Transport Children, Young People & Learning Management Costs Theme: People - Children Responsible Officer : Vicky Wales
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent - Capital Team 5.61 52.72 Full Time Equivalent - School Access Teams 28.71 Full Time Equivalent - School Monitoring & Interventions Teams 11.21 Full Time Equivalent - Children Young People & Learning Management 7.19 Capital Team restructure (0.50) Increased hours (Virtual School) 0.22 Additional Virtual School posts funded by grant 1.60 Change of hours (Admissions/Exclusions) 0.15 Total Full Time Equivalent 52.72 54.19 STATEMENT OF SERVICE 2017-2019
Sheet No. CHILDREN'S SERVICES 3 Previously Children 3, 6, 7, 10, 13 and 14 Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Budget Resource Forecast Year 1 2017/18 2017/18 2017/18 2018/19 £000's £000's £000's £000's Employee Costs 2,391 2,416 2,375 2,531 Premises 83 80 80 80 Transport 1,630 1,631 1,731 1,776 Supplies and Services 140 139 148 135 Contractor Payments 18 18 18 4 Transfer Payments 68 68 68 68 Support Costs 54 54 54 54 Central Support Costs Variable 228 228 228 184 Children, Young People & Learning 31 0 0 0 Total Annual Costs 4,643 4,634 4,702 4,832
Government Grants - School Improvement 0 0 (20) Government Grant - Pupil Premium 0 0 (75) Transitional Grant (138) (138) (138) 0 Standards Fund Grants (30) (30) (30) 0 Dedicated Schools Grant (535) (535) (535) (523) Other contribs.reimburse.grant (81) (81) (81) (120) Fees and Charges (54) (54) (44) (58) Recharges (95) (64) (164) (25) Total Annual Income (933) (902) (992) (821) Net Cost 3,710 3,732 3,710 4,011 Total Allocable Costs 519 327 327 327 Budgeted Cost 4,229 4,059 4,037 4,338
Budget Changes 2017/18 to Budget 2018/19 4,229 4,229 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (170) (169) Base Budget 4,059 4,060 Employee Budgets Pay Award 32 Pension Costs 10 42 Funding Changes Reduced Grants due to Academy conversion 187 Virtual School Staffing 114 Funding for Virtual School from Pupil Premium Grant (75) Contribution for Joint Virtual school Head (Bournemouth BC) (39) 187 Growth Pressures - Operational Running Costs Grammar School Transport (3) (3) Other Changes Home to School Transport 150 150 Non ERP Savings / Efficiencies / Income Generation / Service Adjustments Capital Team Restructure (57) Grammar School Transport (41) (98) Budgeted Cost 4,338 STATEMENT OF SERVICE 2017-2019
Sheet No. CHILDREN'S SERVICES 4 Previously Children 4 and Children 5 Service : Special Educational Needs and Disability (SEND) Description of Service : Assessment and services for families with children with disabilities including protection services, services for children looked after including care leavers, fostering, residential placement services, respite breaks and occupational health therapy services. Co-ordination of advice through the statutory assessment process. Multi-agency planning and support for children and young people with SEND, including the distribution of resources to providers. Monitoring and quality assurance of service providers for children and young people with SEND. Preparation and presentation of LA cases at SEND Tribunals. Support and advice to schools and other providers regarding meeting the needs of individual children and young people. Co-ordination of SEND strategy and policy. The Educational Psychology Service. Theme: People - Children Responsible Officer : Vicky Wales
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent - Child Health & Disability Team (CHAD) 12.08 29.88 Full Time Equivalent - SEND Team 17.80 Administration of new SEND code of practice 2.00 Officer for tribunal cases 1.00 Increased hours in CHAD team 0.73 Total Full Time Equivalent 29.88 33.61 STATEMENT OF SERVICE 2017-2019
Sheet No. CHILDREN'S SERVICES 4 Previously Children 4 and Children 5 Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Budget Resource Forecast Year 1 2017/18 2017/18 2017/18 2018/19 £000's £000's £000's £000's Employee Costs 1,432 1,436 1,510 1,684 Transport 28 28 28 23 Supplies and Services 5,465 5,384 5,932 5,818 Contractor Payments 1,648 1,648 1,691 1,846 Transfer Payments 5,760 5,760 5,934 5,806 Support Costs 71 62 62 62 Commissioning & Improvement - People Serv 11 11 11 11 Total Annual Costs 14,415 14,329 15,168 15,250
Government Grants - SEND Reforms (170) (110) (110) (88) Government Grants - SENDIASS IS Prog. 0 0 0 (21) Dedicated Schools Grant (11,002) (11,002) (11,607) (11,479) Other Contributions (46) (46) (46) (99) Fees and Charges (10) (10) (10) (10) Recharges (133) (133) (133) (121) Children Services Direct A/cs (15) (15) (15) (15) Total Annual Income (11,376) (11,316) (11,921) (11,833) Net Cost 3,039 3,013 3,247 3,417 Budgeted Cost 3,039 3,013 3,247 3,417
Budget Changes 2017/18 to Budget 2018/19 3,039 3,039 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (26) (26) Base Budget 3,013 3,013 Employee Budgets Pay Award 26 Pension Costs 5 31 Funding Changes Increased funding to the High Needs Block 477 Increase Dedicated Schools Grant for High Need expediture (477) Increased shared care costs 47 Increased Clinical Commissioning group contribution for shared care costs (47) Decreased high needs top-up for Other LA children (7) Decreased Other Local Authorty recoupment 7 0 Growth Pressures - Demographic & Volume Changes CHAD - care provision 200 200 Growth Pressures - Local Choice Investment Administration of new SEND code of practice 83 Additional cost of Educational Psychologists employment 50 Officer for tribunal cases 40 173 Budgeted Cost 3,417 STATEMENT OF SERVICE 2017-2019
Sheet No. CHILDREN'S SERVICES 5 Previously Children 8 and Children 15 Service : 0-19 year old Services Description of Service : An integrated set of services for 0-19 year olds and their families delivering across the continuum of needs with a focus on Early Help. To provide a free impartial information service for families through the Family Information Service. To secure sufficient, sustainable high quality childcare for all families. To provide advice and support to develop the quality of under 5's provision, including Workforce Development and safeguarding. To provide high quality Children Centre provision from all Poole Children's Centres through multi-agency working and universal and targeted support. To provide early help services for families with children under 5 and to provide early learning opportunities. Theme: People - Children Responsible Officer : Vicky Wales
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent - 5-19 Services 60.05 111.17 Full Time Equivalent - 0-5 Services 51.12 Children Centre Savings (3.15) 0-5 Management (0.50) 5-19 Services Youth Worker hours 0.69 Homeless Outreach Worker 1.00 Family Outreach Workers transferred from CYPSC 4.00 Drug & Alcohol Support Worker to 5-19 Services 1.00 Total Full Time Equivalent 111.17 114.21 STATEMENT OF SERVICE 2017-2019
Sheet No. CHILDREN'S SERVICES 5 Previously Children 8 and Children 15 Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Budget Resource Forecast Year 1 2017/18 2017/18 2017/18 2018/19 £000's £000's £000's £000's Employee Costs 3,812 3,781 3,446 3,943 Premises 234 232 247 228 Transport 16 16 16 20 Supplies and Services 170 170 183 171 Contractor Payments 195 195 195 171 Transfer Payments 36 36 36 36 Support Costs 72 72 72 72 Depreciation and Impairment 114 123 123 123 Total Annual Costs 4,649 4,625 4,318 4,764 Income: Rents (58) (58) (73) (67) Dedicated Schools Grant (54) (54) (54) (54) Fees and Charges (25) (25) (45) (16) Recharges (126) (126) (126) (495) Total Annual Income (263) (263) (298) (632) Net Cost 4,386 4,362 4,020 4,132 Total Allocable Costs 331 672 672 672 Budgeted Cost 4,717 5,034 4,692 4,804
Budget Changes 2017/18 to Budget 2018/19 4,717 4,717 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 317 318 Base Budget 5,034 5,035 Employee Budgets Pay Award 77 Pension Costs 23 Apprentice Levy 3 103 Other Changes 2 Family Outreach Worker (FOW) posts 66 Income from Housing for FOW posts (66) Troubled Families Income (263) Transfer Social Support Workers from Families First 124 Family Information Service (10) Drug and Alcohol (D&A) Support Worker for 5-19 Services 40 Public Health Funding for D&A Support Worker (40) (149) Non ERP Savings / Efficiencies / Income Generation / Service Adjustments Children Centre Savings (135) 0-5 Management (50) (185) Budgeted Cost 4,804 STATEMENT OF SERVICE 2017-19 Sheet No. CHILD 6 Service : Children and Young People's Social Care (CYPSC)
Description of Service : CYPSC comprises assessment and family support services for children in need, protection services, services for children looked after including care leavers, fostering, adoption and residential placement services.
Theme: People - Children
Responsible Officer : Kevin Jones
Year 0 Year 1 Staffing Plan : Budget Budget 2017/18 2018/19 SERVICE MANAGEMENT 6.00 6.00 ASSESSMENT AND ACTION 10.00 9.00 CHILDREN IN CARE 15.00 14.00 PATHWAYS 10.50 11.50 FOSTERING 10.00 12.20 ADOPTION 12.00 0.00 FAMILIES FIRST 33.01 29.01 SAFEGUARDING AND PERMANENCE 31.00 31.00 YP UNIVERSAL PREVENTION (Drugs) 2.00 2.00 SERVICE SUPPORT 9.70 8.70 CHILD SOCIAL SERVICES MANAGEMENT - TRAINING 2.81 2.81 MASH (previously THE HUB) 10.00 13.00 Total FTE 152.02 139.22
152.02 NEW - Social Workers MASH 2.00 NEW - Social Care Support Worker (Pathways) 2.00 NEW - Social Care Support Worker (Missing Children) 1.00 Information Officer 1.00 Adoption transfert to external contract -10.80 Transfers to other Service Units -8.00 Total Full Time Equivalents - CYPSC 139.22 STATEMENT OF SERVICE 2017-19 Sheet No. CHILD 6 Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's £000's £000's Employee Costs 5,816 5,338 5,728 5,522 Premises 293 266 256 267 Transport 155 145 145 138 Supplies and Services 1,208 1,237 1,026 1,061 Contractor Payments 6,381 6,666 6,313 6,382 Transfer Payments 30 0 21 0 Support Costs 191 240 191 307 Central Support Costs Variable 25 25 0 25 Children, Young People & Learning 15 15 23 15 Depreciation and Impairment 41 214 214 214 Total Annual Costs 14,155 14,146 13,917 13,931 Government Grants (354) (354) (595) (354) Other contribs.reimburse.grant (170) (170) (186) 0 Recharges (657) (576) (562) (150) Total Annual Income (1,181) (1,100) (1,343) (504) Net Cost 12,974 13,046 12,574 13,427 Total Allocable Costs 934 1,109 1,109 1,109 Budgeted Cost 13,908 14,155 13,683 14,536 Budget Changes 2017/18 to 2018/19 13,908 13,908 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 247 257 Base Budget 14,155 14,165
Employee Changes Pay award 112 Apprentice Levy 3 115 Growth Pressures - Demographic, Volume and Local Choice Adoption allowances (22) Residence Orders 4 Special Guardianship Orders 121 Poole Police Station accommodation cost 1 Out of Hours Service 50 MASH Capacity 40 Emergency fostering places 50 Support for Care Leavers 56 300 Growth Pressures - Contractual & Operational Running Costs IFA & Residential Placements 51 Fostering fees & allowances 80 Adoption allowances and SGOs 4 135 Efficiences / savings / service adjustments Children Looked After (Residential and Fostering) (122) Section 17 (60) Support for mental health (40) (222) Other Changes Troubled Families Income 263 Transfer Social Support Workers from Families First to 0-19 year old services (124) Vacancy Factor Adjustment 82 Use of Children Contingency (178) 43 Budgeted Cost 14,536
BUDGET 2018/2019
PEOPLE
ADULT SOCIAL SERVICES
THEME
BUDGET 2018/2019
Index to People - Adult Social Care Theme
Financial Summary
Summary of general issues common to some or all
Adult Social Services – Staffing Plans
People - Adult Social Services Statements of Service
Statements of Service Reference No.
- Adult Social Care ASC 1
BUDGET 2018/2019
INDEX OF SERVICES Adult Social Care
Physical Support 18-64 Services attributable to adults and older people where the primary support reason for their care is related to Physical Disabilities (access and mobility or personal care support. Costs specifically include: nursing and residential care, supported accommodation, direct payments, home care, day care and supported living and short term support.
Sensory Support 18-64 Services attributable to all adults where the primary support reason for their care is related to Sensory Impairment (visual, hearing or other). Costs specifically include: nursing and residential care, supported accommodation, direct payments, home care, day care and supported living and short term support.
Support with Memory and Cognition 18-64 Services attributable to all adults where the primary support reason for their care is related to Mental: Memory and Cognition needs. Costs specifically include: nursing and residential care, supported accommodation, direct payments, home care, day care and supported living and short term support.
Learning Disabilities Support 18-64 Services attributable to all adults where the primary support reason for their care is related to Mental: Intellectual and Learning needs. Costs specifically include: nursing and residential care, supported accommodation, direct payments, home care, day care and supported living and short term support.
Mental Health 18-64 Services attributable to all adults where the primary support reason for their care is related to Mental: Psychological and Emotional needs. Costs specifically include: nursing and residential care, supported accommodation, direct payments, home care, day care and supported living and short term support.
Substance Misuse Services attributable to all adults where the primary support reason for their care is Related to Social: Substance Misuse. Include services where the need for support arises primarily as a result of alcohol abuse, drug abuse and other substance abuse, e.g. solvents.
Carer Support Services attributable to all adults where the primary support reason for their care is related to Carer Support. Services include: direct payments, Local Authority managed personal budgets, and Local Authority commissioned services.
Equipment and Telecare Include costs attributable to all adults regardless of their primary support reason. Include prevention services and assistive equipment/minor adaptations and technology.
Social Care Activities Includes any staff or other revenue expenditure associated with social work practise in relation to supporting individuals through a care and risk management process. Include: - Assessment - Front-line assessment of clients - Review - Front-line review of clients - Care Management - Providing other care management activities with clients such as detailed planning of their support to meet their eligible needs, brokerage and navigation following a statutory assessment or review, and ongoing professional support. - Safeguarding - Supporting all aspects of front line safeguarding activity, from raising initial concerns to investigations and developing safeguarding plans to minimise risk.
Information and Early Intervention Includes expenditure on any service or support for which there is no test of eligibility and no requirement for review. Includes information and advice, screening and signposting, prevention/low level support and independent advocacy.
Commissioning and Service Delivery Includes expenditure on commissioning or commissioning-related functions such as: - Strategic business direction (e.g. needs analysis, policy or strategic development); - Business planning; - Commissioning and de-commissioning functions; - Commissioning, procurement and management; - Communications and personal protective equipment; - Governance and support; - Responding to complaints and complaint management.
Elderly People Services attributable to adults aged over 65 where support reasons include the whole spectrum of potential needs. Costs specifically include: nursing and residential care, supported accommodation, direct payments, homecare, day care, supported living and short term support.
Services outside of statutory adult social care scope Includes all Supported Employment activities to all client groups and administration of the Crisis Loan Scheme (Social fund).
People - Adult Social Care Budget Summary 2018/2019
Net Gross Gross Net Sheet No: Statement of Service Description Budget Expenditure Income Budget 2017/18 2018/19 2018/19 2018/19 £000's £000's £000's £000's
Adult Social Care 40,741 61,555 (19,761) 41,794 ADULT SOCIAL CARE 2018/19 SUMMARY
Equipment & Memory and Learning Mental Substance Carer Physical Sensory Telecare Social Care Commissioning TOTAL Cognition Disability Health Misuse Support Social Care Elderly People Other - Social Support Support Support Universal and Service PEOPLE Support Support Support (client (client Activities 65+ Care Managed 18-64 18-64 (clients Services Delivery ADULTS 18-64 18-64 18-64 related) related) related) £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Description Revenue Expenditure Employee Costs 0 0 0 1,727 0 0 41 0 6,554 357 2,592 578 72 11,921 Premises 0 0 0 6 0 0 0 75 62 0 214 0 0 357 Transport 0 0 0 86 3 0 2 0 60 0 9 96 0 256 Supplies and Services 0 0 0 51 4 0 164 427 135 2 281 11 9 1,084 Contractor Payments 2,062 4 22 12,193 871 147 124 0 461 525 0 24,709 21 41,139 Transfer Payments 795 20 0 1,459 32 0 5 0 0 0 0 1,058 0 3,369 Support Costs 112 1 1 876 36 118 21 51 532 58 (1,987) 1,260 0 1,079 Central Support Costs 0 0 0 0 0 0 0 0 0 0 1,770 0 0 1,770 Central Support Costs Variable 0 0 0 0 0 0 1 0 0 0 2 0 0 3 Depreciation and Impairment 0 0 0 266 0 0 0 0 0 0 171 140 0 577 Revenue Expenditure Total 2,969 25 23 16,664 946 265 358 553 7,804 942 3,052 27,852 102 61,555
Income Rents 0 0 0 (142) 0 0 0 0 0 0 0 (74) 0 (216) Government Grants 0 0 0 (1,050) 0 0 0 (35) (458) (67) 0 (2,109) 0 (3,719) Other contribs.reimburse.grant (43) 0 0 (1,175) (9) 0 (349) (50) (1,175) (251) 0 (2,775) (29) (5,856) Fees and Charges (331) (2) (10) (1,020) (20) 0 0 0 (9) (34) (85) (7,431) (18) (8,960) Recharges 0 0 0 (11) 0 (272) 0 (56) (249) (50) (362) (10) 0 (1,010) Income Total (374) (2) (10) (3,398) (29) (272) (349) (141) (1,891) (402) (447) (12,399) (47) (19,761)
Social Services Total 2,595 23 13 13,266 917 (7) 9 412 5,913 540 2,605 15,453 55 41,794 Adult Social Services
STAFFING PLAN Year 0 Year 1 Budget Budget 2017/18 2018/19 Primary Care/Localities (including PICS and Hospital Discharge) 85.72 85.41 Sensory Loss Team 3.60 3.60 Supported Living Service 55.00 59.00 Administration & Support Service 18.60 18.11 Direct Payments Support Team 3.00 3.00 Contracts & Brokerage 19.22 18.72 Mental Health Team 14.80 13.80 Learning Disability (LD) Team - Including Shared Lives 20.87 19.87 Drug Action / Poole Addictions Community Team & Drug and Alcohol Safeguarding 12.88 2.58 Management team 10.10 9.00 Training Services 7.45 7.45 IT Systems Administration 6.34 9.52 Help Desk and Blue Badge Support 11.70 11.70 Adult Protection 4.41 10.40 Deprivation of Liberty Assessment 3.68 6.68 Day Services Catering 4.89 4.89 Community Mental Health Team (Older People) 3.60 3.60 Strategic & Project Management 3.00 3.00 Quality Assurance 4.64 4.49 Stroke Care for Adults 0.35 0.35 Change Management Team 6.00 5.00 OOHS 4.82 5.32 Carers Support 1.00 1.00 Crisis Loans Support 1.40 1.40 Reablement Team 26.33 17.52 Commissioning & Improvement Admin Support 13.32 13.32 346.72 338.73
346.72
Less staff due to TUPE transfer due to Drug and Alcohol Services reconfiguration -7.24 Staff reduction due to Drug and Alcohol Serivces reconfiguration -2.11 Vacant posts deleted -1.54 Reablement Services review -8.00 Staff transfers from service restructures 1.50 New posts - service growth and contracts reconfiguration 9.13 Minor hour adjustments 0.27 338.73
Profile of Adult Social Care Units of Staffing Plan across Statements of Service PA04: Mental: Intellectual and Learning 18-64 55.00 59.00 PA06: Social: Substance Misuse 2.61 0.5 PA08: Social: Carer Support 1.00 1.00 PA10: Social Care Activities (non-attributable costs) 152.40 155.11 PA11: Social Care Universal Services (non-attributable costs) 11.70 11.70 PA12: Commissioning and Service Delivery (non-attributable costs) 83.05 84.09 PA13: Elderly People 65+ 34.74 25.93 OTHER SOCIAL CARE MANAGED SERVICES 1.40 1.40 341.90 338.73 STATEMENT OF SERVICE 2017-2019
Sheet No. ASC 1
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 11,408 11,991 12,121 11,921 Premises Related Expenses 486 357 375 357 Transport Related Expenses 261 265 337 256 Supplies and Services 1,118 1,238 935 1,084 Agency and Contracted Services 38,092 39,888 40,440 41,139 Transfer Payments 2,972 2,972 3,208 3,369 Central Support Costs - Variable 3 3 2 3 Other Support Costs 1,295 1,329 1,333 1,079 Depreciation and Impairment 556 577 577 577 Total Annual Costs 56,191 58,620 59,328 59,785 Income: Rents (216) (216) (216) (216) Government Grants (586) (3,697) (3,699) (3,719) Other grants, reimbursements and contributions (5,400) (5,621) (6,677) (5,856) Customer and client receipts : Fees & Charges (8,763) (8,811) (8,804) (8,960) Total Customer and client receipts : (8,763) (8,811) (8,804) (8,960) Recharges (1,851) (1,891) (1,829) (1,010) Total Annual Income (16,816) (20,236) (21,225) (19,761) Net Cost 39,375 38,384 38,103 40,024
Below the line - Allocable Costs Central Support Costs (Fixed) 1,366 1,770 1,770 1,770 Total Allocable Costs 1,366 1,770 1,770 1,770
Budgeted Cost 40,741 40,154 39,873 41,794
Budget Changes 2017/18 to 2018/19 40,741 40,741 Net Budget Transfers (virements) & Other Adjustments (587) (560) Base Budget 40,181 Pay Changes 207 One off Government support grant 640 Increase of sleep-in rates due to National Living Wage 481 Demographics & Volume Changes 700 Contractual commitments and increased operational running costs 1,029 Service Investment 492 Improved Better Care Fund increase (680) Savings / Efficiencies / Income Generation / Service Adjustments (1,239) Other Changes (17)
Budgeted cost 41,794
BUDGET 2018/2019
PEOPLE OTHER
HOUSING AND COMMUNITY SERVICES
PUBLIC HEALTH
THEME
BUDGET 2018/2019
Index to People Other - Housing and Community Services Public Health
Financial Summary
Statements of Service Reference No.
- Housing Strategy and Private Sector HOUSING 1
- Housing Advice, Homelessness, Allocations HOUSING 2
- Safer Communities HOUSING 3
- Housing Related Support HOUSING 4
- Management and Support Services HOUSING 5
- Community Grants HOUSING 6
- Public Health
BUDGET 2018/2019
INDEX OF SERVICES
People – Other Theme
HOUSING 1 Housing Strategy and Private Sector: Housing strategy, enabling and private sector housing renewal.
HOUSING 2 Housing Advice, Homelessness, Allocations: Housing advice, homelessness prevention and temporary accommodation Allocations, nominations and brokerage service, Homechoice choice based lettings scheme, housing register and housing needs assessment..
HOUSING 3 Safer Communities: Community safety, community development, community engagement and control room / CCTV.
HOUSING 4 Housing Related Support: Commissioning / provision of housing related support services.
HOUSING 5 Management and Support Services: Central management and support services including performance and quality.
HOUSING 6 Community Grants: Grants to organisations in the voluntary sector.
PUBLIC HEALTH People - Other Budget Summary 2018/2019
Net Gross Gross Net Sheet No: Statement of Service Description Budget Expenditure Income Budget 2017/18 2018/19 2018/19 2018/19 £000's £000's £000's £000's
HOUSING 1 Housing Strategy and Private Sector (807) 664 (1,782) (1,118) HOUSING 2 Housing Advice, Homelessness and Allocations 921 2,334 (1,115) 1,219 HOUSING 3 Safer Communities 489 1,529 (950) 579 HOUSING 4 Housing Related Support 441 652 0 652 HOUSING 5 Management and Support Services 433 561 (73) 488 HOUSING 6 Community Grants 119 132 0 132
Housing and Community Services Total 1,596 5,872 (3,920) 1,952
Public Health (274) 7,430 (7,794) (364)
Total for People - Other 1,322 13,302 (11,714) 1,588 STATEMENT OF SERVICE 2017-2019 Sheet No. Housing 1
Service : Housing Strategy and Private Sector
Description of Service : Strategic overview of housing in the area, housing strategies, enabling and development of new affordable homes, stock condition assessments and private sector conditions and enforcement, disabled facilities grants assessment and allocation, Houses in Multiple Occupation inspection and licensing.
Theme : People Other: Housing & Community Services
Responsible Officer : Phil Hornsby Element Name: HOUSING RENEWAL, STRATEGY, ADVANCES
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 2.50 2.50
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 89 88 88 90 Premises Related Expenses 277 277 277 417 Supplies and Services 50 50 50 50 Agency and Contracted Services 40 40 40 40 Support Charges 30 30 30 30
Total Annual Costs 486 485 485 627
Income: Fees & Charges (1,348) (1,348) (1,348) (1,688) Recharges to other revenue heads (4) (4) (4) (4) Recharges to capital heads (32) (32) (32) (90)
Total Annual Income (1,384) (1,384) (1,384) (1,782)
Net Cost (898) (899) (899) (1,155)
Total Allocable Costs 91 37 37 37
Budgeted Cost (807) (862) (862) (1,118)
Budget Changes 2017/18 to 2018/19 (807) (807) Virements and other Adjustments Net Budget Transfers (virements) & Other Adjustments (55) (55) Base Budget (862) (862)
Employee Changes Pay Award 2 2
Savings/Efficiencies/Income Generation Garages (HRA properties) (200) Use of Disabled Facilities Grant to fund staff costs (58) (258) (1,118) STATEMENT OF SERVICE 2017-2019
Sheet No: Housing 2
Service : Housing Advice, Homelessness and Allocations Description of Service : Assessing individual housing needs, giving housing options advice and meeting the Council's statutory duties under the relevant Housing Acts, providing temporary accommodation for the homeless, supporting vulnerable people to obtain a home, holding and managing the Council's Housing Register, establishing support and preventative services for vulnerable people, managing the Gypsy and Traveller site. Theme : People Other: Housing & Community Services Responsible Officer : Phil Hornsby Element Name: HOMELESSNESS HOUSING ADVICE ALLOCATIONS
Year 0 Year 1 Staffing Plan Budget Budget 2017/18 2018/19 Full Time Equivalent 22.38 22.38
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 713 702 893 718 Premises Related Expenses 102 102 228 262 Transport Related Expenses 0 0 3 0 Supplies and Services 459 459 581 623 Agency and Contracted Services 263 263 298 263 Transfer Payments 159 159 385 198 Central Support Costs - Variable 1 1 10 1 Other Support Charges 25 25 60 25 Depreciation 32 87 87 87 Total Annual Costs 1,754 1,798 2,545 2,177
Income: Government Grants 0 0 (618) 0 Fees & Charges (761) (761) (1,013) (913) Rents (5) (5) (20) (5) Recharges to other revenue heads (198) (198) (198) (197) Total Annual Income (964) (964) (1,849) (1,115)
Net Cost 790 834 696 1,062
Total Allocable Costs 131 157 157 157
Budgeted Cost 921 991 853 1,219
Budget Changes 2017/18 to 2018/19 921 921 Virements and other Adjustments Net Budget Transfers (virements) & Other Adjustments 70 71 Base Budget 991 992
Employee Changes Pay Award 14 14 Growth Pressures New temporary accommodation units 140 Additional bed and breakfast costs 65 Housing Reduction Act - legal costs 20 225 Savings/Efficiencies/Income Generation Reduced bad debt provision (12) (12) 1,219 STATEMENT OF SERVICE 2017-2019
Sheet No: Housing 3
Service : Safer Communities
Description of Service : Working in partnership with the Safer Poole Partnership, the Police, voluntary sector, statutory and community groups to improve the quality of life in Poole by reducing Anti-Social Behaviour (ASB), crime and disorder, the fear of crime and ASB and the support of vulnerable victims.
To provide services which enable residents to live independently in their own homes.
Theme : People Other: Housing & Community Services
Responsible Officer : Phil Hornsby Element Name : COMMUNITY SAFETY
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2017/18
Full Time Equivalent 32.43 32.43 Reduced hours Anti Social Behaviour Officer 0.00 (0.19) Total Full Time Equivalent 32.43 32.24
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,116 1,114 1,114 1,137 Premises Related Expenses 2 2 2 2 Supplies and Services 156 156 184 156 Central Support Costs (variable) 12 12 12 12 Depreciation and Impairment 19 17 17 17
Total Annual Costs 1,305 1,301 1,329 1,324
Income: Fees & Charges (504) (504) (528) (524) Recharges to other revenue heads (426) (426) (435) (426)
Total Annual Income (930) (930) (963) (950)
Net Cost 375 371 366 374
Total Allocable Costs 114 205 205 205
Budgeted Cost 489 576 571 579
Budget Changes 2017/18 to 2018/19 489 489 Virements and other Adjustments Net Budget Transfers (virements) & Other Adjustments 87 87 Base Budget 576 576
Employee Changes Pay Award 23 23 Savings/Efficiencies/Income Generation Additional Borough Operations Control Room income (20) (20) 579 STATEMENT OF SERVICE 2017-2019
Sheet No. Housing 4
Service : Housing Related Support
Description of Service : Commissioning and/or provide housing support services previously funded via the Supporting People regime.
Theme : People Other: Housing & Community Services
Responsible Officer : Phil Hornsby Element Name : Housing Related Support
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 (At current Price Base) Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 0 0 0 62 Agency and Contracted Services 441 652 670 590 Intra Departmental Charges - Housing & CS 0 0 0
Total Annual Costs 441 652 670 652
Income: Recharges to other revenue heads 0 0 (18) 0
Total Annual Income 0 0 (18) 0
Budgeted Cost 441 652 652 652
Budget Changes 2017/18 to 2018/19 441 441 Virements and other Adjustments
Net Budget Transfers (virements) & Other Adjustments 211 211 Base Budget 652 652 652 STATEMENT OF SERVICE 2017-2019 Sheet No. Housing 5
Service : Management and Support Services
Description of Service : Providing central management and support services to the Housing and Community Services unit including performance and quality, data and statistics, procurement, contract management, financial monitoring and processes, ICT systems and recruitment.
To provide client management and monitoring of Poole Housing Partnership (ALMO).
Theme : People Other: Housing & Community Services
Responsible Officer : Phil Hornsby Element Name: HOUSING MGMT & SUPSVS
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 7.31 7.31 chri (0.50) New posts - 2 x Apprentice 2.00 Total Full Time Equivalent 7.31 8.81
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 (At current Price Base) Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 325 324 324 354 Premises Related Expenses 84 100 100 100 Transport Related Expenses 7 7 7 7 Supplies and Services 59 59 59 59 Other Support Costs 1 1 1 1 Central Support Costs - Variable 1 1 1 1
Total Annual Costs 477 492 492 522
Income: Recharges to other revenue heads (73) (73) (73) (73)
Total Annual Income (73) (73) (73) (73)
Net cost 404 419 419 449
Below the line - Allocable Costs Central Support Costs (Fixed) 29 39 39 39 Policy Directorate Recharge 0 0 0 0 Admin Buildings/Central Support Recharge 0 0 0 0 Total Allocable Costs 29 39 39 39
Budgeted Cost 433 458 458 488
Budget Changes 2017/18 to 2018/19 433 433 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 25 25 Base budget 458 458
Employee Changes Pay Award 7 7 Savings / Efficiencies / Income Generation / Service Adjustments Contract Management 23 23 488 STATEMENT OF SERVICE 2017-2019 Sheet No. Housing 6
Service : Community Grants
Description of Service : Grants to organisations in the voluntary sector.
Theme : People Other: Housing & Community Services
Responsible Officer : Phil Hornsby Element Name: COMMUNITY GRANTS
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 (At current Price Base) Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Supplies and Services 119 119 132 132
Total Annual Costs 119 119 132 132
Budgeted Cost 119 119 132 132
Budget Changes 2017/18 to 2018/19 119 119 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 0 0 Base budget 119 119
Contractual Commitments Safewise lease costs 13 13 132 STATEMENT OF SERVICE 2017-2019 Sheet No. Public Health
Service : Public Health
Description of Service : The Health and Social Care Act 2012 transfered the responsibility for some key public health functions from the NHS to local authorities on 1 April 2013. These functions focus on promoting the health of the local population, and providing advice to NHS Commissioners. On the 1 October 2015, the 0 - 5 children's public health commissioning responsibility also transfered to local authorities from Public Health England. To meet its responsibilites Poole has entered into a Joint Service with Dorset County Council and Bournemouth Borough Council.
Portfolio : People (Public Health)
Responsible Officer : David Vitty & Phil Hornsby Element Name : PEOPLE PUBL HEALTH
Service Aim : To improve significantly the health and wellbeing of the local population. To carry out health protection functions delegated from the Secretary of State. To reduce health inequalities across the life course, including hard to reach groups To ensure the provision of population healthcare advice.
Financial Aim : To ensure the service is provided within the ring-fenced grant allocated.
Forecast 2017/18 The forecast increase in support costs represents spending funded from the Boroughs Public Health reserve. The £240k reimbursements is the return of underspend from the Joint Service, it is anticipated this funding will support relevant service areas, in this financial year.
Budget 2018/19 It is anticipated that the Joint Public Health Service will continue to generate savings which will enable the Borough to retain £364k of funding in 18/19. This funding has been used to support the budget.
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Year 1 Budget Resource Forecast 2018/19 2017/18 2017/18 £000's £000's £000's £000's Agency and Contracted Services 6,226 6,226 6,146 6,975 Other Support Costs 1,294 1,294 1,407 455
Total Annual Costs 7,520 7,520 7,553 7,430
Income: Rents Government Grants (7,794) (7,794) (7,794) (7,794) Other grants, reimbursements and contributions 0 0 (240)
Total Annual Income (7,794) (7,794) (8,034) (7,794)
Net Cost (274) (274) (481) (364)
Budget Changes 2017/18 to 2018/19 (274) (274)
Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments 0 0
Base Budget (274) (274)
Specific Grant Changes
0
(274)
BUDGET 2018/2019
PLACES THEME:
CULTURAL & COMMUNITY LEARNING SERVICES
ENVIRONMENTAL SERVICES
GROWTH & INFRASTRUCTURE SERVICES
BUDGET 2018/2019
Index to Places Theme
Financial Summary
Statements of Service Reference No.
Cultural and Community Learning Services
- Arts Development CCLS 1
- Museums and Archives CCLS 2
- Recreation and Sport CCLS 3
- Open Spaces – Culture and Community Learning CCLS 4
- Libraries CCLS 5
- Community Development CCLS 6
- Skills and Learning CCLS 7
- Management and Business Support CCLS 8
- Tourism Tour 1
Environmental Services
- Open Spaces ECPS 1
- Waste Disposal ECPS 2
- Waste Collection ECPS 3
- Street Cleansing ECPS 4
- Environmental Health ECPS 5
- Trading Standards ECPS 6
- Service Man & Support (Environmental Services) ECPS 7
- Service Man & Support (Open Spaces) ECPS 8
BUDGET 2018/2019
Index to Places Theme (continued)
Financial Summary
Statements of Service Reference No.
Environmental Services (continued)
- Highways/Roads (Structural) - Street Scene ECPS 9
- Highways/Roads (Routine) – Street Scene ECPS 10
- Winter Services ECPS 11
- Service Man & Support (Highways) ECPS 12
Growth & Infrastructure Services
- Highways/Roads (Structural) Tran 1
- Construction Tran 2
- Highways/Roads (Routine) Tran 3
- Public Transport Tran 5
- Lighting Tran 6
- Transport Planning Policy & Strategy Tran 7
- Traffic Management & Road Safety Tran 8
- Parking Services Tran 9
- Highways Management & Admin Tran 10
- Coastal Protection Tran 11
- Flood Defence and Land Drainage Tran 12
- Transportation-Property Management Tran 13
BUDGET 2018/2019
Index to Places Theme (continued)
Financial Summary
Statements of Service Reference No.
Growth and Infrastructure Services (continued)
- Economic Development Plan 1
- Planning Policy Plan 2
- Development Management Plan 3
- Building Control Plan 4
- Town Centre Management TCM 1
BUDGET 2018/2019
INDEX OF SERVICES
Places Theme
CCLS 1 Arts Development: The Arts Development Unit delivers a range of programmes designed to facilitate learning, social inclusion and environment enhancement. Contributions to Poole Arts Centre (Lighthouse) and the Bournemouth Symphony Orchestra.
CCLS 2 Museums and Archives: Operating from two buildings in Poole High Street, the care of items that relate to the unique history of Poole and use of them to develop peoples interest in the historic value of the town. Provision of an Archives Service via a service level agreement with the Dorset County Archives Service.
CCLS 3 Recreation and Sport: Beaches, Beach Huts, Leisure Centres and Swimming Pools, Hamworthy Outdoor Education Centre, Outdoor Recreation, Recreation Development, Grants, NNDR Charitable Relief (Leisure related), Management and Administration of the Open Spaces/Recreation and Sport function.
CCLS 4 Open Spaces Culture and Community Learning: Upton Country Park.
CCLS 5 Libraries: Delivering a library service to the Borough of Poole through buildings, mobiles and outreach.
CCLS 6 Community Development: Working in most deprived areas in Poole – supporting groups, individuals, third sector organisations, Council Service Units. Providing community engagement and consultation, advice and funding support. Leading on development of community centres.
CCLS 7 Skills and Learning: Skills and Learning receives further education grants from the Skills Funding Agency and the National Apprenticeship Service for the provision of accredited and non-accredited learning across Poole, Bournemouth and Dorset.
CCLS 8 Management and Business Support: Service Unit Head and Business Support to provide strategic leadership, ongoing management and all other business support functions to enable Cultural and Community Learning to meet its statutory obligations and support the council’s priorities and values.
Tour 1 Tourism: Promotion and Marketing of Poole as a primary UK Visitor Destination
ECPS 1 Open Spaces: Parks, Countryside Management, Allotments.
INDEX OF SERVICES
Places Theme (Continued)
ECPS 2 Waste Disposal: Waste Disposal, Disposal of Trade Waste, Nuffield Civic Amenity Site and Transfer Station, Millhams Civic Amenity Site.
ECPS 3 Waste Collection: Refuse Collection, Trade Waste Collection, Recycling Collection, Garden Waste Collection.
ECPS 4 Street Cleansing: Cleansing Services, Beach Cleansing.
ECPS 5 Environmental Health: Food Safety, Pollution Reduction, Health and Safety, Port Health, Pest Control, Public Health, Licensing, Public Conveniences.
ECPS 6 Trading Standards: Inspection and Enforcement.
ECPS 7 Service Mananagement & Support (Environmental Services): Management and Administration of Environmental Services (including Waste Operations and Fleet Management). Costs are apportioned to Statement of Services ECPS 1 to 6.
ECPS 8 Service Management & Support (Open Spaces): Grounds Maintenance Team.
ECPS 9 Highways/Roads (Structural) – Street Scene: Structural routine maintenance for Carriageway and Footway elements of the highways.
ECPS 10 Highways/Roads (Routine) – Street Scene: Maintenance and repairs on the Borough’s road network, covering Environmental related services (e.g. Weed Killing, Safety Sweeping, Highway Verges, Roundabout Sponsorship), Safety related services (e.g. Drainage, Road Markings, Non- Illuminated Signs and Bollards).
ECPS 11 Winter Services.
ECPS 12 Service Management & Support (Highways): Street Scene Highways Team.
Tran 1 Highway / Roads (Structural): Structural routine maintenance for Bridges and structures together with Safety Fencing.
Tran 2 Construction: Capital Charges and impairment costs in respect of past years capital expenditure on the Borough’s Road Network.
INDEX OF SERVICES
Places Theme (Continued)
Tran 3 Highways / Road (Routine): Maintenance and repairs on the Boroughs road network, covering Illuminated Signs, Traffic Signals and Integrated Transport Systems.
Tran 5 Public Transport: The costs of Concessionary Fares, Bus Operator Subsidies, Community Transport, RTI and the co-ordination of Passenger Transport Policy.
Tran 6 Lighting: The costs of Street Lighting including maintenance services (planned and responsive), inspection services (including structural & electrical testing) and Road Traffic Accident Costs (both recoverable & non- recoverable).
Tran 7 Transport Planning Policy & Strategy: Formulating transport, highways and roads plans and policy including associated research, working with developers to assess impacts of developments, highways/road issues relating to planning applications, highways/road adoptions and routine network management.
Tran 8 Traffic Management & Road Safety: The costs of Road Safety Education, Safe Routes, Traffic Management.
Tran 9 Parking Services: The costs of mainstream Car Parking (e.g. Surface, Beach and Multi-storey Car Parks), Controlled Parking Zones and Civil (Car) Parking Enforcement.
Tran 10 Highways Management & Admin: Management, Administration, Engineering, all Professional staff and support costs for the Transportation Services Unit (including the Highways & Engineering Teams based at Hatchpond Depot). The management and running costs of the Social Service fleet, based at Hatchponds, are also included as is their apportionment to Social Services.
Tran 11 Coastal Protection: Coastal Protection
Tran 12 Flood Defence and Land Drainage: Land Drainage, Private Drain Clearance, Meteorological Station.
INDEX OF SERVICES
Places Theme (Continued)
Plan 1 Economic Development: Economic strategy; business support; training and employment; regeneration; European advice; external funding; non-tourism marketing and promotion.
Plan 2 Planning Policy: Local Development Framework; Regional planning role; implementation work.
Plan 3 Development Management: Includes all activities and costs related to the local authority’s role in development control under the town and country planning legislation.
Plan 4 Building Control: Include all expenditure related to a local authority's role in the monitoring and enforcement of building regulations, including Consultancy Services, Statutory Services and Other Advice & Services.
TCM 1 Town Centre Management: Promotion and support to the economic well being of Poole Town Centre.
Places Budget Summary 2018/2019
Net Gross Gross Net Sheet No: Statement of Service Description Budget Expenditure Income Budget 2017/18 2018/19 2018/19 2018/19 £000's £000's £000's £000's
CCLS 01 Arts Development 646 619 (1) 618 CCLS 02 Museums and Archives 1,012 1,293 (137) 1,156 CCLS 03 Recreation and Sport 799 3,415 (2,686) 729 CCLS 04 Open Spaces 229 1,203 (901) 302 CCLS 05 Libraries 2,351 3,475 (1,020) 2,455 CCLS 06 Community Development 132 138 0 138 CCLS 07 Skills and Learning 0 833 (833) 0 CCLS 08 Management & Business Support 5 29 0 29 TOUR 01 Tourism 272 513 (244) 269
Culture and Community Services 5,446 11,518 (5,822) 5,696
ECPS 01 Open Spaces 3,209 3,570 (326) 3,244 ECPS 02 Waste Disposal 6,433 9,182 (2,723) 6,459 ECPS 03 Waste Collection 1,999 4,348 (2,532) 1,816 ECPS 04 Street Cleansing 2,392 2,711 (175) 2,536 ECPS 05 Environmental Health 1,684 1,785 (332) 1,453 ECPS 06 Trading Standards 438 459 (17) 442 ECPS 07 Service Management & Support (Environmental Services) (19) 480 (174) 306 ECPS 08 Service Management & Support (Open Spaces) (200) 4,247 (4,429) (182) ECPS 09 Highways/Roads (Structural) 486 730 (140) 590 ECPS 10 Highways/Roads (Routine) 683 845 (199) 646 ECPS 11 Winter Maintenance 130 135 0 135 ECPS 12 Service Management & Support (Highways) 41 2,739 (2,697) 42
Environmental Services 17,276 31,231 (13,744) 17,487
TRAN 01 Highways/Roads (Structural) 697 728 0 728 TRAN 02 Construction 3,197 3,342 0 3,342 TRAN 03 Highways/Roads (Routine) 961 916 (3) 913 TRAN 05 Public Transport 3,827 4,970 (1,179) 3,791 TRAN 06 Lighting 722 856 (40) 816 TRAN 07 Transport Planning, Policy and Strategy 535 674 (85) 589 TRAN 08 Traffic Management and Road Safety 353 427 (53) 374 TRAN 09 Parking Services (3,351) 3,429 (6,787) (3,358) TRAN 10 Highways Management and Administration 330 3,286 (3,692) (406) TRAN 11 Coastal Protection 295 309 0 309 TRAN 12 Land Drainage 227 242 (11) 231
Growth & Improvement Services - Transportation 7,793 19,179 (11,850) 7,329
PLAN 01 Economic Development 297 223 0 223 PLAN 02 Planning Policy 538 515 (8) 507 PLAN 03 Development Management 819 1,841 (937) 904 PLAN 04 Building Control 123 747 (652) 95
Growth & Improvement Services - Planning and Regeneration 1,777 3,326 (1,597) 1,729
TCM 01 Growth & Improvement Services - Town Centre 24 170 (155) 15
Total for Places 32,316 65,424 (33,168) 32,256 STATEMENT OF SERVICE 2017-2019 Sheet No. CCLS 01
Service : Arts Development
Description of Service : The Arts Service is delivered through a small in-house team and a range of partnerships. The Service stages key arts activities including arts and health and other programmes for the benefit of diverse audiences and in support of the council's priorities. We also support artists and arts groups to deliver arts activities that leverage additional external funding and deliver cost effective outcomes and benefits for the people of Poole.
Theme : Places Other: Culture & Community Learning
Responsible Officer : Kevin McErlane Element Name : ARTS DEVELOPMENT Head of Cultural & Community Learning
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 1.40 1.40 Full Time Equivalent 1.40 1.40
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 50 49 16 51 Transport Related Expenses 2 3 2 3 Supplies and Services 570 551 546 532 Support costs - Other 12 12 12 12
Total Annual Costs 634 615 576 598
Income: Other grants, reimbursements and conts (14) 0 (5) 0 Fees & Charges (1) (1) (2) (1) Recharges to other revenue heads (5) 0 0 0
Total Annual Income (20) (1) (7) (1)
Net Cost 614 614 569 597
Total Allocable Costs 32 21 21 21
Budgeted Cost 646 635 590 618
Budget Changes 2017/18 to 2018/19 646 646 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (11) (11) Base Budget 635 635
Employee Budgets Pay Award 2 2
Savings / Efficiencies / Income Generation / Service Adjustments Reduce Grants to Lighthouse/ Bournemouth Symphony Orchestra (13) Reduce Arts Grants to Voluntary Organisations/ Individuals (6) (19) 618 STATEMENT OF SERVICE 2017-2019 Sheet No. CCLS 02
Service : Museums and Archives
Description of Service : The Museum Service operates from two historic museum buildings in Poole's Lower High Street and cares for and provides access to collections that reveal the unique history and nature of the town and uses these to develop people's engagement with the story of Poole through changing programmes of displays, exhibitions, learning and outreach. Poole Museum and Scaplen's Court Museum are both Arts Council England accredited. Poole Museum is officially the most popular free attraction in Dorset and the 5th most popular in South West England, with 200,000 visitors. The Museum Service is a British Museum partner and in 2016 staged a very successful world-class exhibition of drawings from the Museum. The Museums Service is the lead partner for the Arts Council Funded Wessex Museums Partnership. The Museum Service works with Dorset County Archives Service, through a Joint Archives Service to care for the Borough of Poole's collection of historic documents, many of them originating from the government of the town. Theme : Places Other: Culture & Community Learning Responsible Officer : Kevin McErlane Element Name : MUSEUMS & ARCHIVES Head of Cultural & Community Learning
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 13.78 13.78 Delete Curator Post (0.60) Delete Front of House Supervisor Post (0.81) Delete Learning Access Manager (0.80) Revised Hours Learning Assistant (0.20) New Apprenticeship Post 1.00 Miscellaneous Changes 0.18 Full Time Equivalent 13.78 12.55
Please note the figures above exclude Learning Activity Staffing Numbers (2.00 FTE) STATEMENT OF SERVICE 2017-2019 Sheet No. CCLS 02 Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 447 452 554 493 Premises Related Expenses 147 171 177 176 Transport Related Expenses 3 6 7 6 Supplies and Services 271 82 244 82 Agency and Contracted Services 111 107 107 107 Support costs - Other 124 21 28 21 Depreciation and Impairment 218 218 218 218
Total Annual Costs 1,321 1,057 1,335 1,103
Income: Other grants, reimbursements and conts (239) (22) (186) (22) Fees & Charges (61) (115) (119) (115) Rents (4) 0 0 0 Recharges to other revenue heads (126) 0 (60) 0
Total Annual Income (430) (137) (365) (137)
Net Cost 891 920 970 966
Total Allocable Costs 121 190 190 190
Budgeted Cost 1,012 1,110 1,160 1,156
Budget Changes 2017/18 to 2018/19 1,012 1,012 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 98 98 Base Budget 1,110 1,110
Employee Budgets Pay Award 10 10
Growth Pressures Remove Contribution from BBC re Joint Working 32 Utilities Inflation 1 NNDR Inflation 4 37
Savings / Efficiencies / Income Generation / Service Adjustments Reduce Staffing (Project Funded) (8) Misc Staff Savings (Restructure) (9) (17)
Other Changes Staffing - Transfer from Recreation (CCLS 03) 16 16 1,156 STATEMENT OF SERVICE 2017-2019 Sheet No. CCLS 03
Service : Recreation & Sport
Description of Service : Section 19 of the Local Government (Miscellaneous Provisions) Act 1976 empowers councils to provide or support recreation facilities. Included here are expenses in relation to the beaches (not cleansing or conveniences), beach huts, indoor/outdoor sports facilities, recreation development and community centres.
Theme : Places Other: Culture & Community Learning
Responsible Officer : Kevin McErlane Element Name : REC & SPORT Head of Cultural & Community Learning
Service Aim : Provide an accessible and effective range of public recreation and sports facilities, increase access to and use of these facilities by the community. To ensure opportunities exist for sports development from participation through to excellence. To encourage and provide for healthy lifestyles. To provide opportunities for community development through voluntary and club actions. Enhance recreation and sports facilities and services by targeting grants and investing funds from developer contributions and external partners. To provide a safe, high quality beach environment including facilities. The water quality should exceed standards and the Blue Flag and Seaside Award recognition should be obtained.
Financial Aim :
Beach Huts - To be self financing having met all maintenance needs and an appropriate return on asset value. Through the Access to Leisure scheme, reduce the cost of participation in sport for people receiving financial benefits.
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 15.91 15.91 Delete Vacant Seafront Post (1.00) Total Full Time Equivalent 15.91 14.91 STATEMENT OF SERVICE 2017-2019 Sheet No. CCLS 03 Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 497 491 421 485 Premises Related Expenses 354 531 568 531 Transport Related Expenses 11 4 15 4 Supplies and Services 167 131 153 123 Agency and Contracted Services 506 348 356 199 Other Support Charges 130 259 291 259 Depreciation and Impairment 1,418 1,510 1,510 1,510
Total Annual Costs 3,083 3,274 3,314 3,111
Income: Other grants, reimbursements and conts 0 0 (20) 0 Fees & Charges (250) (271) (310) (277) Rents (2,326) (2,255) (2,202) (2,409) Total Customer and client receipts : (2,576) (2,526) (2,512) (2,686)
Recharges to other revenue heads 0 0 (6) 0
Total Annual Income (2,576) (2,526) (2,538) (2,686)
Net Cost 507 748 776 425
Total Allocable Costs 292 304 304 304
Budgeted Costs 799 1,052 1,080 729
Budget Changes 2017/18 to 2018/19 799 799 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments 253 253 Base Budget 1,052 1,052
Employee Budgets Pay Award 10 10
Growth Pressures SLM Contract Inflation 10 10
Savings / Efficiencies / Income Generation / Service Adjustments SLM Contractual Changes (41) Reduce Recreation Small Grants (8) Increase Beach Hut Income (134) Increase Events Income (6) Increase Beach Concession Income (20) Joint Working BBC (Seafront & Tourism) (118) (327)
Other Changes Staffing - Transfer to Museums (CCLS 02) (16) (16) 729 STATEMENT OF SERVICE 2017-2019
Sheet No. CCLS 04
Service : Open Spaces Description of Service : Community parks, open spaces, countryside recreation and management, allotments and outdoor play areas. Theme : Places Other: Culture & Community Learning Responsible Officer : Kevin McErlane & Shaun Robson Element Name : OPEN SPACES Head of Cultural & Community Learning
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 21.15 21.15 Miscellaneous Changes - Catering (0.30) Total Full Time Equivalent 21.15 20.85
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 449 542 514 559 Premises Related Expenses 172 192 238 197 Transport Related Expenses 10 1 3 1 Supplies and Services 185 259 371 259 Agency and Contracted Services 86 34 40 34 Other Support Charges 38 46 90 46 Depreciation and Impairment 29 49 49 49
Total Annual Costs 969 1,123 1,305 1,145
Income: Fees & Charges (644) (793) (921) (821) Rents (54) (53) (54) (53) Total Customer and client receipts : (698) (846) (975) (874)
Recharges to other revenue heads (60) (27) (26) (27)
Total Annual Income (758) (873) (1,001) (901)
Net Cost 211 250 304 244
Below the line - Allocable Costs Total Allocable Costs 18 58 58 58
Budgeted Costs 229 308 362 302
Budget Changes 2017/18 to 2018/19 229 229 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 79 79 Base Budget 308 308
Employee Budgets Pay Award 17 17
Growth Pressures Utilities Inflation 5 NNDR Inflation 0 5
Savings / Efficiencies / Income Generation / Service Adjustments Increase Visitor Service Income (28) (28) 302 STATEMENT OF SERVICE 2017-2019 Sheet No. CCLS 05 Service : Libraries Description of Service : Delivering a statutory public library service (Public Libraries & Museums Act 1964) to the people who live, work and study in the Borough of Poole, through 10 libraries , the virtual library service and the Home Library Service for our most vulnerable customers. We support the Council's priorities and deliver the five national library offers , working with a range of partners nationally, regionally and locally from the public, private and not for profit sectors, to the benefit of our 35,000 customers. Theme : Places Other: Culture & Community Learning Responsible Officer : Kevin McErlane Element Name : LIBRARIES Head of Cultural & Community Learning
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 39.78 39.78 Transfer BBC Library Staff (Post Merger Savings) 57.29 Full Time Equivalent 39.78 97.07
Please note the staffing figures above incorporates both Poole & Bournemouth Library Services. Other Expenditure/ Income budgets remain the responsibility of the respective authorities. Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,004 1,910 1,949 1,917 Premises Related Expenses 388 376 379 380 Transport Related Expenses 22 23 23 23 Supplies and Services 343 357 377 357 Central support costs - Variable 54 54 61 54 Depreciation and Impairment 157 158 158 158 Total Annual Costs 1,968 2,878 2,947 2,889
Income: Other grants, reimbursements and conts 0 (917) (916) (917) Fees & Charges (93) (98) (101) (98)
Recharges to other revenue heads (5) (5) (5) (5) Total Annual Income (98) (1,020) (1,022) (1,020)
Net Cost 1,870 1,858 1,925 1,869
Total Allocable Costs 481 586 586 586
Budgeted Cost 2,351 2,444 2,511 2,455
Budget Changes 2017/18 to 2018/19 2,351 2,351 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 93 93 Base Budget 2,444 2,444 Employee Budgets Pay Award 24 24 Growth Pressures Utilities Inflation 1 NNDR Inflation 3 4 Savings / Efficiencies / Income Generation / Service Adjustments Joint Working BBC ( shared staffing structure) (17) (17) 2,455 STATEMENT OF SERVICE 2017-2019
Sheet No. CCLS 6
Service : Community Development
Description of Service : Working in the most deprived areas in Poole - supporting groups, individuals, third sector organisations, Council Service Units. Providing community engagement and consultation, advice and funding support. Leading on the development of Community Centres.
Theme : Places Other: Culture & Community Learning
Responsible Officer : Kevin McErlane Element Name : COMMUNITY SAFETY Head of Cultural & Community Learning
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 3.00 3.00 Miscellaneous Changes - Community Engagement Officers 0.32 Total Full Time Equivalent 3.00 3.32
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 103 120 122 122 Supplies and Services 21 8 6 8 Other Support Charges 8 8 8 8
Total Annual Costs 132 136 136 138
Net Cost 132 136 136 138
Budgeted Cost 132 136 136 138
Budget Changes 2017/18 to 2018/19 132 132 Virements and other Adjustments Net Budget Transfers (virements) & Other Adjustments 4 4 Base Budget 136 136
Employee Changes Pay Award 2 2 138 STATEMENT OF SERVICE 2017-2019 Sheet No. CCLS 07
Service : Skills and Learning
Description of Service : Skills and Learning receives further education grants from the Skills Funding Agency, Education Funding Agency and the National Apprenticeship Service for the provision of accredited and non-accredited learning across Poole, Bournemouth and Dorset.
Learning provision contributes to the Community and Dynamic Economy priorities of the Council.
Theme : Places Other: Culture & Community Learning
Responsible Officer : Kevin McErlane Element Name : Skills and Learning Head of Cultural & Community Learning
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 42.00 42.00 Full Time Equivalent 42.00 42.00 Please note the figures above exclude Tutor Staffing Numbers
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 443 443 497 447 Premises Related Expenses 24 24 24 24 Transport Related Expenses 10 10 10 10 Supplies and Services 281 281 288 281 Agency and Contracted Services 0 0 2 0 Support costs - Other 3 3 3 3
Total Annual Costs 761 761 824 765
Income: Government Grants (757) (757) (808) (761) Other grants, reimbursements and conts 0 (5) 0 Fees & Charges (72) (72) (79) (72)
Total Annual Income (829) (829) (892) (833)
Net Cost (68) (68) (68) (68)
Total Allocable Costs 68 68 68 68
Budgeted Cost 0 0 0 0
Budget Changes 2017/18 to 2018/19 0 0 Base Budget 0 0
Employee Changes Pay Award 4 4
Savings / Efficiencies / Income Generation / Service Adjustments Additional Learner Fee Income (4) (4) 0 STATEMENT OF SERVICE 2017-2019
Sheet No. CCLS 08
Service : Management & Business Support
Description of Service : Service Unit Head and Business Support to provide strategic leadership, ongoing management and all other business support functions to enable Cultural & Community Learning to meet its Statutory Obligations and support the Council's priorities and values.
Theme : Places Other: Culture & Community Learning
Responsible Officer : Kevin McErlane Element Name : Management & Business Support Head of Cultural & Community Learning
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 6.15 6.15 Full Time Equivalent 6.15 6.15
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 209 204 221 224 Transport Related Expenses 0 0 2 0 Support costs - Other (204) (204) (204) (204)
Net Cost 5 0 22 20
Total Allocable Costs 0 9 9 9
Budgeted Cost 5 9 31 29
Budget Changes 2017/18 to 2018/19 5 5 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 4 4 Base Budget 9 9
Employee Changes Pay Award 20 20 29 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 1
Service : Open Spaces
Description of Service : Parks, open spaces, natural habitats, allotments, equipped play areas and borough owned trees.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : OPEN SPACES Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 9.93 9.93 Vacant Post deleted (1.00) Total Full Time Equivalent 9.93 8.93 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 1
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 370 335 335 341 Premises Related Expenses 173 173 112 177 Transport Related Expenses 5 4 4 42 Supplies and Services 101 101 116 96 Agency and Contracted Services 323 323 367 323 Intra Departmental Charges - Environmental 442 443 443 437 Other Support Charges 1,604 1,614 1,614 1,622 Depreciation and Impairment 377 350 350 350
Total Annual Costs 3,395 3,343 3,341 3,388
Income: Government Grants (213) (213) (69) (166) Developer Funding Contributions (14) (14) (14) (61) Fees & Charges (32) (32) (32) (30) Rents (38) (38) (38) (42) Recharges to other revenue heads (28) (28) (28) (27)
Total Annual Income (325) (325) (181) (326)
Net Cost 3,070 3,018 3,160 3,062
Total Allocable Costs 139 182 182 182
Budgeted Costs 3,209 3,200 3,342 3,244
Budget Changes 2017/18 to 2018/19 3,209 3,209 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (9) (9) Base Budget 3,200 3,200
Employee Changes Pay Award 7 7
Contractual Commitments Grounds Maintenance Contract 60 Utilities 4 64
Other Changes Vehicle recharges 38 Other expenditure (12) Grounds recharges (52) (26)
Savings / Efficiencies / Income Generation / Service Adjustments Allotments - service review (4) Environmental Services income review 3 (1)
3,244 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 2
Service : Waste Disposal
Description of Service : The costs of waste disposal including landfill, waste to energy, Waste Electrical and Electronic Equipment (WEEE), centralised composting and processing recyclable waste, the borough's civic amenity site and waste transfer station, as well as management of Bournemouth Borough Council's civic amenity site.
This definition covers the disposal of household waste, street sweepings, civic amenity site waste, commercial/skip waste and the infrastructure required.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : WASTE DISPOSAL Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Total Full Time Equivalent 29.61 29.61 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 2
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,044 1,021 907 974 Premises Related Expenses 249 379 320 258 Transport Related Expenses 344 344 344 383 Supplies and Services 180 174 142 176 Agency and Contracted Services 6,614 6,666 6,598 6,714 Intra Departmental Charges - Environmental 136 137 137 199 Other Support Charges 0 211 0 204 Depreciation and Impairment 90 125 125 125
Total Annual Costs 8,657 9,057 8,573 9,033
Income: Other grants, reimbursements and conts (1,620) (1,961) (1,961) (1,943) Fees & Charges (690) (743) (874) (780)
Total Annual Income (2,310) (2,704) (2,835) (2,723)
Net Cost 6,347 6,353 5,738 6,310
Total Allocable Costs 86 149 149 149
Budgeted Costs 6,433 6,502 5,887 6,459
Budget Changes 2017/18 to 2018/19 6,433 6,433 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 69 69 Base Budget 6,502 6,502 Employee Changes Pay Award 22 22 Government Requirements Waste Disposal Landfill Tax 13 13 Demographic & Volume Changes Waste disposal tonnages 102 102 Contractual Commitments Waste disposal contract inflation 148 Utilities 2 150 Other Changes Intra-Unit recharges 62 Other income 1 Other expenditure (2) 61 Savings / Efficiencies / Income Generation / Service Adjustments Environmental Services expenditure review (241) Environmental Services income review (150) (391)
6,459 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 3 Service : Waste Collection
Description of Service : The collection of waste from private dwellings and commercial properties.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : WASTE COLLECTION Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 67.31 67.31 New Posts 2.55 Total Full Time Equivalent 67.31 69.86 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 3 Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,890 1,957 1,957 2,011 Premises Related Expenses 12 12 12 13 Transport Related Expenses 1,247 1,247 1,247 1,026 Supplies and Services 65 106 129 67 Intra Departmental Charges - Environmental 381 381 381 417 Depreciation and Impairment 336 367 367 367 RCCO & repayment to cap reserve 73 (4) 68 124
Total Annual Costs 4,004 4,066 4,161 4,025
Income: Other grants, reimbursements and conts 0 (50) (50) (10) Fees & Charges (2,201) (2,296) (2,536) (2,522)
Total Annual Income (2,201) (2,346) (2,586) (2,532)
Net Cost 1,803 1,720 1,575 1,493
Total Allocable Costs 196 323 323 323
Budgeted Costs 1,999 2,043 1,898 1,816
Budget Changes 2017/18 to 2018/19 1,999 1,999 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments 44 168 Base Budget 2,043 2,167
Employee Changes Pay Award 42 42
Contractual Commitments Utilities 2 2
Other Changes Operative allocation 52 Intra-Unit recharges 36 Other income (5) Other expenditure (9) Trade Waste bin fee increase (30) Vehicle recharges (223) (179)
Savings / Efficiencies / Income Generation / Service Adjustments Environmental Services income review (181) Garden Waste Collection Scheme increased charges (20) Environmental Services expenditure review (15) (216) 1,816 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 4
Service : Street Cleansing
Description of Service : Sweeping and removal of litter and detritus from land including adopted highway, parks & open spaces and beaches, servicing litter bins, weed treatment, graffiti and fly tip removal etc. as required to comply with the Environmental Protection Act 1990.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : STREET CLEANSING Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 49.87 49.87 New Post 0.45 Vacant Post deleted (1.29) Adjustments 1.62 Total Full Time Equivalent 49.87 50.65 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 4
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,235 1,243 1,126 1,298 Transport Related Expenses 674 674 674 711 Supplies and Services 75 75 98 71 Intra Departmental Charges - Environmental 272 203 203 238 Other Support Charges 154 154 154 154 Depreciation and Impairment 29 21 21 21 RCCO & repayment to cap reserve 4 4 4 0
Total Annual Costs 2,443 2,374 2,280 2,493
Income: Fees & Charges (6) (6) (6) (9) Recharges to other revenue heads (159) (159) (159) (166)
Total Annual Income (165) (165) (165) (175)
Net Cost 2,278 2,209 2,115 2,318
Total Allocable Costs 114 218 218 218
Budgeted Costs 2,392 2,427 2,333 2,536
Budget Changes 2017/18 to 2018/19 2,392 2,392 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 35 35 Base Budget 2,427 2,427
Employee Changes Pay Award 27 27
Other Changes Vehicle recharges 38 Intra-Unit recharges 35 Other expenditure 14 87
Savings / Efficiencies / Income Generation / Service Adjustments Environmental Services income review (10) Environmental Services expenditure review 5 (5) 2,536 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 5 Service : Environmental Health
Description of Service : All services to protect, promote and enhance community health and safety and environmental protection.
Food Safety - programmed food hygiene inspections, investigation of food complaints, food poisoning and infectious diseases. Sampling of foods and ingredients. Advice and assistance to trade. Environmental Protection - investigation of complaints arising from commercial, industrial and domestic premises including noise, odour, smoke. Permitting of industrial premises to minimise air, water and land pollution. Air quality monitoring at various sites with results incorporated into the Local Transport Plan. Implementation of the contaminated land strategy by identification of contaminated land, assessment of remediation work by land owner, including council owned land. In partnership with the Health Authority and other councils treating the river Stour to kill Blandford fly larvae. Investigation of blocked private drains. Health and Safety at Work - undertaking programmed inspections of workplaces and participation in projects to ensure employee and public safety. Investigation of complaints and accidents. Ensuring compliance with smoke-free requirements. Port Health - supporting fishing industry in sampling shellfish in the harbour and bay for bacteriological quality in order to maintain EU classification so that shellfish maybe harvested and sold. Ensuring vessels are free from rodents. Abandoned vehicles - undertaking early removal of burnt out and abandoned vehicles. Licensing of premises and people for the supply of alcohol, regulated entertainment and gambling, ensuring conditions are met. Licensing, caravan sites, taxis, street trading, skips etc. Processing Town & Village Green Applications. Animal health and dog control - collection of stray dogs and reuniting with owners or re-homing, investigation of animal health/ cruelty and dog fouling complaints. Illegal importation via port, licensing of pet shops, microchipping identification. Pest control - provision of services to residents and business. Public Conveniences - provision of public conveniences in accordance with the framework strategy. To ensure that they are cleaned, repaired and maintained as provided for in current contracts/service level agreements. Implementation, development, and management of the Community Toilet Scheme. Gypsy and travellers - managing and dispersal of occasional unauthorised encampments. Corporate Health & Safety - to advise/assist all Service Units & Schools to ensure the health & safety of employees & services.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : ENVIRONMENTAL HEALTH Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 25.91 25.91 Total Full Time Equivalent 25.91 25.91 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 5 Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,011 1,056 1,029 1,079 Premises Related Expenses 82 12 102 32 Transport Related Expenses 24 15 15 13 Supplies and Services 99 99 108 99 Agency and Contracted Services 95 26 26 40 Intra Departmental Charges - Environmental 349 409 409 360 Other Support Charges 15 6 6 6 Depreciation and Impairment 121 16 16 16
Total Annual Costs 1,796 1,639 1,711 1,645
Income: Other grants, reimbursements and conts (5) (5) (5) (5) Fees & Charges (282) (282) (316) (307) Recharges to other revenue heads (31) (31) (31) (20)
Total Annual Income (318) (318) (352) (332)
Net Cost 1,478 1,321 1,359 1,313
Total Allocable Costs 206 140 140 140
Budgeted Costs 1,684 1,461 1,499 1,453
Budget Changes 2017/18 to 2018/19 1,684 1,684
Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (223) (223) Base Budget 1,461 1,461
Employee Changes Pay Award 23 23
Contractual Commitments Public Conveniences - Cleaning & Minor Repairs 3 3
Other Changes Intra-Unit recharges (49) (49)
Savings / Efficiencies / Income Generation / Service Adjustments Environmental Services income review (14) Environmental Services expenditure review 29 15 1,453 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 6
Service : Trading Standards
Description of Service : Activities to protect consumers and businesses against illegal pricing, quality, fair trading and safety practices.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : CONSUMER PROTECTION Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Total Full Time Equivalent 6.70 6.70
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 307 305 305 312 Transport Related Expenses 3 3 3 0 Supplies and Services 10 10 10 10 Intra Departmental Charges - Environmental 87 87 87 112
Total Annual Costs 407 405 405 434
Income: Fees & Charges (17) (17) (17) (17)
Total Annual Income (17) (17) (17) (17)
Net Cost 390 388 388 417
Total Allocable Costs 48 25 25 25
Budgeted Costs 438 413 413 442
Budget Changes 2017/18 to 2018/19 438 438 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (25) (25) Base Budget 413 413
Employee Changes Pay Award 7 7
Other Changes Intra-Unit recharges 25 Other expenditure (3) 22 442 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 7
Service : Service Management & Support (Environmental Services).
Description of Service : Management and support for Environmental Services, Street Scene and the Fleet Management function.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : ENVIRO SMS Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 65.28 65.28 New Posts 4.00 Occupied Redundant (0.81) Vacant Post deleted (0.61) Adjustments (0.86) Total Full Time Equivalent 65.28 67.00 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 7
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 2,527 2,609 2,593 2,882 Premises Related Expenses 435 376 523 374 Transport Related Expenses (1,943) (1,740) (1,618) (1,652) Supplies and Services 281 287 324 304 Central Support Costs (Variable) 4 4 4 4 Intra Departmental Charges - Environmental (2,618) (2,671) (2,671) (2,898) Other Support Charges 30 56 56 53 Depreciation and Impairment 1,405 1,413 1,413 1,413
Total Annual Costs 121 334 624 480
Income: Other grants, reimbursements and conts 0 (50) (31) 0 Fees & Charges (23) (23) (20) (16) Recharges to other revenue heads (117) (117) (117) (158)
Total Annual Income (140) (190) (168) (174)
Net Cost (19) 144 456 306
Budgeted Costs (19) 144 456 306
Budget Changes 2017/18 to 2018/19 (19) (19) Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 163 174 Base Budget 144 155
Employee Changes Pay Award 56 Pay award - lower grade increases 74 130
Other Changes Vehicle recharges 88 Other expenditure 20 Fleet Operations supplies & services 14 Other income (1) Intra-Unit recharges (227) (106)
Savings / Efficiencies / Income Generation / Service Adjustments Places saving target - Environmental Service Unit Head (62) Environmental Services income review 17 Environmental Services expenditure review 172 127 306 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 8 Service : Service Management & Support (Open Spaces) Description of Service : Management and Support for the Grounds Maintenance Team. Theme : Places: Environmental Services Responsible Officer : Kate Langdown & Ian Poultney Element Name : OPEN SPACES HOLDING Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 73.97 73.97 New Post 2.00 TUPE Transfer to Bournemouth BC (3.79) Vacant Post deleted (1.00) Adjustments 0.49 Total Full Time Equivalent 73.97 71.67
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,861 1,859 1,859 1,919 Transport Related Expenses 426 478 478 506 Supplies and Services 148 266 340 270 Agency and Contracted Services 10 10 10 10 Intra Departmental Charges - Environmental 304 304 304 318 Other Support Charges 1,225 1,215 1,215 1,224 Depreciation and Impairment 2 0 0 0 Total Annual Costs 3,976 4,132 4,206 4,247
Income: Fees & Charges (285) (455) (554) (462) Recharges to other revenue heads (3,891) (3,891) (3,891) (3,967) Total Annual Income (4,176) (4,346) (4,445) (4,429)
Net Cost (200) (214) (239) (182) Budgeted Costs (200) (214) (239) (182)
Budget Changes 2017/18 to 2018/19 (200) (200) Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (14) (14) Base Budget (214) (214)
Employee Changes Pay Award 40 40 Other Changes Vehicle recharges 31 Intra-Unit recharges 14 Other expenditure 6 Grounds recharges (9) 42 Savings / Efficiencies / Income Generation / Service Adjustments Environmental Services income review (74) Environmental Services expenditure review 24 (50) (182) STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 9
Service : Highways / Roads (Structural)
Description of Service : To routinely maintain major elements of the highway network including carriageways, footways and safety fences.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : STRUCT MTCE OTH SS Interim Heads of Environmental Services
Staffing Plan Employees partaking of Highways work are included within Highways Management and Administration (ECPS 12).
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Transport Related Expenses 4 4 4 3 Supplies and Services 99 99 124 119 Intra Departmental Charges - Environmental 152 152 152 170 Other Support Charges 325 321 402 408 RCCO & repayment to cap reserve 0 (100) 0 0
Total Annual Costs 580 476 682 700
Income: Fees & Charges (100) (100) (260) (140) Rents (1) (1) (1) 0
Total Annual Income (101) (101) (261) (140)
Net Cost 479 375 421 560
Total Allocable Costs 7 30 30 30
Budgeted Costs 486 405 451 590
Budget Changes 2017/18 to 2018/19 486 486 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments (81) 19 Base Budget 405 505
Contractual Commitments Highways purchasing and contractors 10 10
Other Changes Intra-Unit recharges 18 Rent budget deleted 1 Other expenditure (1) Highways recharges (16) 2
Savings / Efficiencies / Income Generation / Service Adjustments Environmental Services income review (40) Environmental Services expenditure review 113 73 590 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 10
Service : Highways / Roads (Routine)
Description of Service : The routine maintenance of highway verges and planting, drainage, traffic, safety, bollards, fences, street seats, rights of way, nameplates, non-illuminated signs, road markings, an emergency out of hours service to cover anything associated with the highway and the monitoring of street works.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name: ROUTINE REPS OTH SS Interim Heads of Environmental Services
Staffing Plan Employees partaking of Highways work are included within Highways Management and Administration (ECPS 12).
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 119 63 63 65 Premises Related Expenses 14 14 14 14 Transport Related Expenses 114 111 111 99 Supplies and Services 75 75 75 105 Agency and Contracted Services 114 221 212 149 Intra Departmental Charges - Environmental 131 190 190 212 Other Support Charges 311 208 208 200
Total Annual Costs 878 882 873 844
Income: Fees & Charges (199) (199) (199) (199)
Total Annual Income (199) (199) (199) (199)
Net Cost 679 683 674 645
Total Allocable Costs 4 1 1 1
Budgeted Costs 683 684 675 646
Budget Changes 2017/18 to 2018/19 683 683 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 1 1 Base Budget 684 684
Employee Changes Pay Award 1 1
Other Changes Contractors 58 Intra-Unit recharges 22 Highways recharges (9) 71
Savings / Efficiencies / Income Generation / Service Adjustments Environmental Services expenditure review (110) (110) 646 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 11
Service : Winter Service
Description of Service : To maintain the safety of the highway network from the effect of snow and ice as far as is reasonably practicable.
Theme : Places: Environmental Services
Responsible Officer : Kate Langdown & Ian Poultney Element Name : WINTER MAINTENANCE Interim Heads of Environmental Services
Staffing Plan Employees partaking of Winter Maintenance work are included within Highways Management and Administration (ECPS 12).
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 16 16 16 21 Transport Related Expenses 26 26 26 24 Supplies and Services 35 35 35 36 Agency and Contracted Services 14 14 14 13 Intra Departmental Charges - Environmental 20 20 20 22 Other Support Charges 19 19 19 19
Total Annual Costs 130 130 130 135
Net Cost 130 130 130 135
Budgeted Costs 130 130 130 135
Budget Changes 2017/18 to 2018/19 130 130 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 0 0 Base Budget 130 130 Other Changes Overtime 5 5 135 STATEMENT OF SERVICE 2017-2019 Sheet No. ECPS 12
Service : Service Management & Support (Highways) Description of Service : Management, Administration, and Professional staff and support costs for the Highways function. Theme : Places: Environmental Services Responsible Officer : Kate Langdown & Ian Poultney Element Name : HIGHWAYS MANAGEMENT Interim Heads of Environmental Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 17.41 17.41 New Posts 4.00 Total Full Time Equivalent 17.41 21.41 Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 539 538 538 637 Transport Related Expenses 249 249 249 265 Supplies and Services 193 553 629 600 Intra Departmental Charges - Environmental 345 345 345 413 Other Support Charges 670 676 676 824 Total Annual Costs 1,996 2,361 2,437 2,739
Income: Fees & Charges (66) (66) (66) (66) Recharges to other revenue heads (1,889) (2,255) (2,362) (2,631) Total Annual Income (1,955) (2,321) (2,428) (2,697)
Net Cost 41 40 9 42
Budgeted Costs 41 40 9 42
Budget Changes 2017/18 to 2018/19 41 41 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (1) (1) Base Budget 40 40
Employee Changes Pay Award 11 11
Other Changes Highways recharges 149 Intra-Unit recharges 68 Subcontractors 41 Sign Shop recharges 23 Vehicle recharges 12 Other Expenditure 7 Highways Overhead Account recharges (85) Highways External works income (172) 43
Savings / Efficiencies / Income Generation / Service Adjustments Environmental Services income review (142) Environmental Services expenditure review 90 (52) 42 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 1
Service : Highways / Roads (Structural)
Description of Service : To routinely maintain major elements of the highway network including bridges, subways and other structures.
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name : HIGHWAYS STRUCTURAL Head of Growth & Infrastructure Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 6.84 6.84 Total Full Time Equivalent 6.84 6.84
The full time equivalent salaries for staff supporting this activity are accounted for in Tran 10. Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 130 131 131 133 Premises Related Expenses 47 47 68 48 Supplies and Services 143 146 146 146 Agency and Contracted Services 189 189 189 189 Support Costs 134 131 146 141 Transport Interdepartmental 7 7 7 7 Depreciation and Impairment 0 2 2 2
Total Annual Costs 650 653 689 666
Income: Fees & Charges 0 0 (9) 0
Total Annual Income 0 0 (9) 0
Net Cost 650 653 680 666
Total Allocable Costs 47 62 62 62
Budgeted Cost 697 715 742 728
Budget Changes 2017/18 to 2018/19 697 697 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 18 18 Base Budget 715 715
Employee Changes Pay Award 2 2
Increased Operational running costs Bridges Electricity 1 Bridges Insurance 15 16
Savings / Efficiencies / Income Generation / Service Adjustments Asset Management (5) (5) 728 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 2
Service : Construction
Description of Service : Capital charges and impairment costs resulting from past capital expenditure
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name: CONSTRUCTION Head of Growth & Infrastructure Services
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's
Depreciation and Impairment 3,197 3,342 3,342 3,342
Total Annual Costs 3,197 3,342 3,342 3,342
Budgeted Cost 3,197 3,342 3,342 3,342
Budget Changes 2017/18 to 2018/19 3,197 3,197 Virements and Other Adjustments Depreciation 145 145
Base Budget 3,342 3,342 3,342 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 3
Service : Highways / Roads (Routine)
Description of Service : Maintenance of illuminated signs, traffic signals and Intelligent Transport Systems (e.g., electronic variable message signs, integrated traffic control systems)
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name: HIGHWAYS ROUTINE Head of Growth & Infrastructure Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 3.08 3.08 Total Full Time Equivalent 3.08 3.08
The full time equivalent salaries for staff supporting this activity are accounted for in Tran 10. Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 32 32 32 32 Premises Related Expenses 319 319 319 293 Supplies and Services 79 79 79 79 Agency and Contracted Services 291 291 291 291 Support Costs 73 73 75 63 Transport Interdepartmental 94 94 94 94 Total Annual Costs 888 888 890 852
Income: Fees & Charges (2) (2) (14) (3)
Total Annual Income (2) (2) (14) (3)
Net Cost 886 886 876 849
Total Allocable Costs 75 64 64 64
Budgeted Cost 961 950 940 913
Budget Changes 2017/18 to 2018/19 961 961 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments (11) (11) Base Budget 950 950
Increased Operational Running Costs Electricity (26) Highways Insurance (10) (36) Savings / Efficiencies / Income Generation / Service Adjustments Places Theme £200k Savings (1) (1) 913 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 5
Service : Public Transport Description of Service : Support of public transport either directly or by subsidies to operators or individuals, including concessionary fares, school transport, community transport, social services transport, passenger information including Real Time Information and bus shelters. Theme : Places: Growth & Infrastructure (Transportation) Responsible Officer : Julian McLaughlin Element Name: PUBLIC TRANSPORT Head of Growth & Infrastructure Services
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 4 4 4 4 Premises Related Expenses 9 9 9 9 Transport Related Expenses 56 52 52 52 Supplies and Services 246 246 246 246 Transfer Payments 4,151 4,198 4,195 4,107 Support Costs 1 1 1 1 Transport Interdepartmental 373 405 405 405 Depreciation and Impairment 67 64 64 64
Total Annual Costs 4,907 4,979 4,976 4,888
Income: Government Grants (166) (166) (166) (166) Other grants, reimbursements and conts (201) (166) (160) (166) Developer Funding Contribution (58) (58) (73) (58) Fees & Charges (338) (420) (428) (488) Recharges to other revenue heads (345) (345) (377) (301)
Total Annual Income (1,108) (1,155) (1,204) (1,179)
Net Cost 3,799 3,824 3,772 3,709
Total Allocable Costs 28 82 82 82
Budgeted Cost 3,827 3,906 3,854 3,791
Budget Changes 2017/18 to 2018/19 3,827 3,827 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 79 79 Base Budget 3,906 3,906
Government Requirements Concessionary Fares (35) (35) Contractual Commitments Bus Subsides 12 12
Other Changes Grammar School Transport - Expenditure 24 Grammar School Transport - Income (24) 0
Savings / Efficiencies / Income Generation / Service Adjustments Bus Subsidy Review (92) (92) 3,791 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 6
Service : Lighting
Description of Service : To maintain highway lighting, including the lighting of footways and pedestrian subways and ensure the supply of the electricity required.
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name :LIGHTING Head of Growth & Infrastructure Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 2.00 2.00 Total Full Time Equivalents 2.00 2.00
The full time equivalent salaries for staff supporting this activity are accounted for in Economy 10. Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Premises Related Expenses 194 194 194 186 Agency and Contracted Services 392 319 319 319 Support Costs 2 1 1 2 Transport Interdepartmental 68 69 69 69 Depreciation and Impairment 100 255 255 255
Total Annual Costs 756 838 838 831
Income: Fees & Charges (30) (30) (30) (30) Insurance Claims Reimbursed (10) (10) (10) (10)
Total Annual Income (40) (40) (40) (40)
Net Cost 716 798 798 791
Total Allocable Costs 6 26 26 25
Budgeted Cost 722 824 824 816
Budget Changes 2017/18 to 2018/19 722 722 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 102 1 Base Budget 824 723
Increased Operational running costs Street Lighting Business Case Prudential Borrowing 106 106
Savings / Efficiencies / Income Generation / Service Adjustments Street Lighting Dimming (13) (13) 816 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 7
Service : Transport Planning, Policy & Strategy
Description of Service : 1. Preparing and monitoring the transport policies and Local Transport Plan for the authority. 2. Providing transport input to planning policies 3. Advising planning services on the transportation requirements and impacts of proposed developments. 4. Oversee construction of new Highway and changes to the Highway by third parties 5. Management of the Rights of Way network 6. Commission and oversee delivery of innovative transport projects
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name : TRAN PLAN POL STRAT Head of Growth & Infrastructure Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 2.09 2.09 Total Full Time Equivalent 2.09 2.09
The full time equivalent salaries for staff supporting this activity are accounted for in Economy 10. Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 0 0 1 0 Transport Related Expenses 0 0 39 0 Supplies and Services 20 20 13 20 Support Costs 6 16 19 16 Transport Interdepartmental 475 554 554 554 Depreciation and Impairment 46 0 0 0
Total Annual Costs 547 590 626 590
Income: Government Grants 0 0 (39) 0 Other grants, reimbursements and conts 0 (10) (4) (10) Developer Funding Contribution (7) (7) (7) (7) Fees & Charges (9) (9) (10) (10) Total Customer and client receipts : (9) (9) (10) (10) Recharges to other revenue heads (58) (58) (58) (58)
Total Annual Income (74) (84) (118) (85)
Net Cost 473 506 508 505
Total Allocable Costs 62 84 84 84
Budgeted Cost 535 590 592 589
Budget Changes 2017/18 to 2018/19 535 535 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 55 55 Base Budget 590 590
Savings / Efficiencies / Income Generation / Service Adjustments Places Theme £200k Savings (1) (1) 589 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 8
Service : Traffic Management and Road Safety
Description of Service : The provision of traffic management, road safety education and safe routes including school crossing patrols. Data Collection for the highway network
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name: TRAFFIC MAN SAFETY Head of Growth & Infrastructure Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Total Full Time Equivalents 3.48 3.48 School Crossing Patrol posts deleted (0.63) Total Full Time Equivalents 3.48 2.85
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 97 98 97 91 Premises Related Expenses 6 6 6 6 Transport Related Expenses 1 1 2 1 Supplies and Services 49 49 42 49 Agency and Contracted Services 14 14 14 14 Support Costs 5 5 5 5 Central Support Costs (Variable) 0 1 0 Transport Interdepartmental 208 212 212 212
Total Annual Costs 380 385 379 378
Income: Fees & Charges (39) (39) (49) (48) Recharges to other revenue heads (5) (5) (5) (5)
Total Annual Income (44) (44) (54) (53)
Net Cost 336 341 325 325
Total Allocable Costs 17 49 49 49
Budgeted Cost 353 390 374 374
Budget Changes 2017/18 to 2018/19 353 353 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 37 37 Base Budget 390 390
Employee Changes Pay Award 4 4
Savings / Efficiencies / Income Generation / Service Adjustments School Crossing Patrols (11) Places Theme £200k Savings (9) (20) 374 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 9
Service : Parking Services
Description of Service : The provision of parking facilities, including on and off-street parking, alternative parking schemes and operation of Civil Parking Enforcement.
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name: PARKING SERVICES Head of Growth & Infrastructure Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 32.67 32.67 Changes to CEO hrs (0.13) Total Full Time Equivalent 32.67 32.54
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 883 880 806 878 Premises Related Expenses 974 922 998 1,010 Transport Related Expenses 41 (11) 2 2 Supplies and Services 364 364 364 364 Agency and Contracted Services 53 53 72 53 Support Costs 265 265 265 265 Transport Interdepartmental 174 208 208 208 Depreciation and Impairment 468 416 403 403
Total Annual Costs 3,222 3,097 3,118 3,183
Income: Other grants, reimbursements and conts (21) (21) 0 (21) Fees & Charges (6,689) (6,689) (6,742) (6,717) Recharges to other revenue heads (49) (49) (49) (49)
Total Annual Income (6,759) (6,759) (6,791) (6,787)
Net Cost (3,537) (3,662) (3,673) (3,604)
Total Allocable Costs 186 246 246 246
Budgeted Cost (3,351) (3,416) (3,427) (3,358)
Budget Changes 2017/18 to 2018/19 (3,351) (3,351) Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (65) (7) Base Budget (3,416) (3,358)
Employee Changes Pay Award 23 23 Increased Operational Costs NNDR 37 37 Other Changes Mansfield Rd Car Park Rent & Rates (6) Mansfield Rd Car Park Income 6 0 Savings / Efficiencies / Income Generation / Service Adjustments Management Fees (6) RNLI Permits (28) Places Theme £200k Savings (26) (60) (3,358) STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 10
Service : Highways Management and Administration
Description of Service : Management, Administration, Engineering and all Professional staff and support costs for the Transportation elements of the Growth & Infrastructure Service Unit Management & running costs for the In-House Bus Fleet.
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name: HIGHWAYS Head of Growth & Infrastructure MANAGEMENT
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 69.39 69.39 Business Support post redundant (1.00) Business Support post deleted (1.00) Transfer of 0.5 SUH (0.50) Project Engineer increased hrs 0.16 New Engineering apprentice post 1.00 Temporary St Naming & Numbering post ending (1.00) New G&I Policy Team Manager (0.50) Traffic Technician post increased hrs 0.19 Rights of Way posts increased hrs 0.39 Snr Development Management Officer decreased hrs (0.09) Changes to Driver hrs (0.16) Total Full Time Equivalent 69.39 66.88 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 10
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 3,005 2,950 2,936 3,000 Premises Related Expenses 50 121 121 121 Transport Related Expenses 178 11 8 11 Supplies and Services 101 100 142 100 Support Costs 13 13 20 13 Depreciation and Impairment 144 19 19 19
Total Annual Costs 3,491 3,214 3,246 3,264
Income: Government Grants (11) (11) (11) (11) Other grants, reimbursements and conts (46) (36) (33) (30) Fees & Charges (5) (5) (5) (5) Recharges to other revenue heads (1,890) (1,906) (1,950) (1,968) Transport Interdepartmental (1,520) (1,678) (1,596) (1,678)
Total Annual Income (3,472) (3,636) (3,595) (3,692)
Net Cost 19 (422) (349) (428)
Total Allocable Costs 311 22 22 22
Budgeted Cost 330 (400) (327) (406)
Budget Changes 2017/18 to 2018/19 330 330 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (730) (729) Base Budget (400) (399)
Employee Changes Pay Award 39 39
Other Changes Staff Costs - Expenditure 56 Staff Costs - Income (56) 0
Savings / Efficiencies / Income Generation / Service Adjustments Places Theme £200k Savings (46) (46) (406) STATEMENT OF SERVICE 2017-2019
Sheet No. Tran 11
Service : Coastal Protection
Description of Service : Protection of coastal areas against erosion and sea encroachment.
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name: COAST PROTECTION Head of Growth & Infrastructure Services
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Supplies and Services 5 5 6 5 Agency and Contracted Services 30 30 45 30 Transport Interdepartmental 68 72 31 72 Depreciation and Impairment 182 184 184 184
Total Annual Costs 285 291 266 291
Net Cost 285 291 266 291
Total Allocable Costs 10 18 18 18
Budgeted Costs 295 309 284 309
Budget Changes 2017/18 to 2018/19 295 295 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments 14 14 Base Budget 309 309 309 STATEMENT OF SERVICE 2017-2019 Sheet No. Tran 12
Service : Flood Defence and Land Drainage
Description of Service : Activities designed to prevent flooding.
Theme : Places: Growth & Infrastructure (Transportation)
Responsible Officer : Julian McLaughlin Element Name : LAND DRAINAGE Head of Growth & Infrastructure Services
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1 1 10 1 Premises Related Expenses 14 14 14 14 Agency and Contracted Services 142 142 60 142 Support Costs 5 5 84 5 Transport Interdepartmental 69 73 31 73
Total Annual Costs 231 235 199 235
Income: Government Grants 0 0 (6) 0 Other grants, reimbursements and conts (11) (11) (11) (11)
Total Annual Income (11) (11) (17) (11)
Net Cost 220 224 182 224
Total Allocable Costs 7 7 7 7
Budgeted Costs 227 231 189 231
Budget Changes 2017/18 to 2018/19 227 227 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 4 4 Base Budget 231 231
231 STATEMENT OF SERVICE 2017-2019 Sheet No: PLAN 01
Service : Economic Development
Description of Service : The Borough of Poole have an established Economic Development Strategy and continue to report the associated action plan to Overview and Scrutiny annually.
Theme : Places: Growth & Infrastructure (Planning & Regeneration)
Responsible Officer : Julian McLaughlin Element Name : ECONOMIC DEVELOPMENT Head of Growth & Infrastructure
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent (FTE's) 4.00 4.00 Post deleted - Economic Development Officer (1.00) Total Full Time Equivalent 4.00 3.00
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 186 187 199 153 Premises Related Expenses 9 7 12 7 Transport Related Expenses 4 4 5 4 Supplies and Services 62 62 178 30 Central Support Costs - Variable 0 0 2 0 Other Support Charges 0 0 12 0
Total Annual Costs 261 260 408 194
Income: Fees & Charges 0 0 (22) 0 Recharges to other revenue heads 0 0 (15) 0 Total Annual Income 0 0 (37) 0
Net Cost 261 260 371 194
Total Allocable Costs 36 29 29 29
Budgeted Cost 297 289 400 223
Budget Changes 2017/18 to 2018/19 297 297 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments (8) (8) Base Budget 289 289
Employee Changes Pay Award 3 3 Savings / Efficiencies / Income Generation / Service Adjustments Places Theme £200k savings (37) Economic Development - Partnership Working (32) (69) 223 STATEMENT OF SERVICE 2017-2019 Sheet No: PLAN 02 Service : Planning Policy Description of Service : Sub national planning (SE Dorset Joint Working); Local Development Plan (DPD's and SPD's *); Neighbourhood Planning, Community Infrastructure Levy, Infrastructure Plan Implementation (supporting delivery of policy); multi agency engagement and joint work (e.g. Flood Risk Strategy and Poole Harbour Steering Group).
Theme : Places: Growth & Infrastructure (Planning & Regeneration)
Responsible Officer : Julian McLaughlin Element Name : PLANNING POLICY Head of Growth & Infrastructure
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 9.41 9.41 Deleted post - Strategic Planning Delivery Officer (0.60) New Growth and Infrastructure Policy Team Manager (0.50) Total Full Time Equivalent 9.41 8.31
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 434 428 463 392 Premises Related Expenses 16 14 14 14 Transport Related Expenses 3 3 3 3 Supplies and Services 75 75 212 43
Total Annual Costs 528 520 692 452
Income: Government Grants 0 0 (30) 0 Fees & Charges (4) (4) 0 (4) Recharges to other revenue heads (4) (4) (4) (4)
Total Annual Income (8) (8) (34) (8)
Net Cost 520 512 658 444
Total Allocable Costs 18 63 63 63
Budgeted Cost 538 575 721 507
Budget Changes 2017/18 to 2018/19 538 538 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 37 42 Base Budget 575 580
Employee Changes Pay Award 8 8 Savings / Efficiencies / Income Generation / Service Adjustments Places Theme £200k Savings (51) Reduce Local Develoipment Framework top-up (20) Plan Policy Monitor Software (10) (81) 507 STATEMENT OF SERVICE 2017-2019 Sheet No: PLAN 03
Service : Development Management
Description of Service : Includes all activities and costs related to the local authority's role in development control under town and country planning legislation.
Theme : Places: Growth & Infrastructure (Planning & Regeneration)
Responsible Officer : Julian McLaughlin Element Name : DEVELOPMENT Head of Growth & Infrastructure CONTROL
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 38.30 38.30 Places Theme £200k savings - New post - Business Support Officer 1.00 Transfer of 0.5 Service Unit Head 0.50 Places Theme £200k savings - Deleted post - Business Support Officer (0.40) Total Full Time Equivalent 38.30 39.40
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,242 1,280 1,431 1,349 Premises Related Expenses 96 70 70 70 Transport Related Expenses 9 9 9 9 Supplies and Services 85 85 257 85 Agency and Contracted Services 38 38 38 38 Other Support Charges 9 9 10 9 Depreciation and Impairment 4 4 4 4
Total Annual Costs 1,483 1,495 1,819 1,564
Income: Government Grants 0 0 (30) 0 Fees & Charges (842) (842) (1,144) (842) Recharges to other revenue heads (95) (95) (95) (95)
Total Annual Income (937) (937) (1,269) (937)
Net Cost 546 558 550 627
Total Allocable Costs 273 277 277 277
Budgeted Cost 819 835 827 904
Budget Changes 2017/18 to 2018/19 819 819 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments 16 23 Base Budget 835 842
Employee Changes Pay Award 29 29 Savings / Efficiencies / Income Generation / Service Adjustments Places Theme £200k savings 33 33
904 STATEMENT OF SERVICE 2017-2019
Sheet No. PLAN 04 Service : Building Control
Description of Service : Include all expenditure related to a local authority's role in the monitoring and enforcement of building regulations.
Theme : Places: Growth & Infrastructure (Planning & Regeneration)
Responsible Officer : Julian McLaughlin Element Name : BUILDING CONTROL Head of Growth & Infrastructure
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Total Full Time Equivalent 10.00 10.00
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 484 478 309 489 Premises Related Expenses 31 15 15 15 Transport Related Expenses 12 12 9 12 Supplies and Services 73 73 15 73 Agency and Contracted Services 0 0 5 0 Intra Departmental Charges 87 87 75 87 Other Support Charges 12 12 17 12
Total Annual Costs 699 677 445 688
Income: Government Grants 0 0 (1) 0 Fees & Charges (627) (627) (318) (632) Recharges to other revenue heads (20) (20) (20) (20)
Total Annual Income (647) (647) (339) (652)
Net Cost 52 30 106 36
Total Allocable Costs 71 59 59 59
Budgeted Cost 123 89 165 95
Budget Changes 2017/18 to 2018/19 123 123 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments (34) (33) Base Budget 89 90
Employee Changes Pay Award 10 10
Savings / Efficiencies / Income Generation / Service Adjustments Fee increase (5) (5) 95 STATEMENT OF SERVICE 2017-2019 Sheet No: TOUR 01
Service : Tourism
Description of Service : Promotion and Marketing of Poole as a main UK Visitor Destination
Theme : People Other: Culture & Community Learning (Tourism)
Responsible Officer : Kevin McErlane Element Name : TOURISM Head of Culture & Community Learning
Service Aim : To maximize, through close private/public partnership working, the positive contribution tourism makes to the image, quality, environment and economic vitality and development of Poole. This is to beneift the business community as well as residents and visitors alike.
Financial Aim : To secure up to 40% contribution of private sector income to deliver an action plan that achieves the service aim (co funded by the council). Private Sector income to be ring-fenced. To achieve commercial sponsorship contributions to deliver new and existing special events. Continued funding to operate efficient Visitor Information Service.
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Total Full Time Equivalent 8.04 8.04
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 276 269 247 272 Premises Related Expenses 1 1 1 1 Supplies and Services 169 184 178 184 Other Support Charges 9 10 10 10
Total Annual Costs 455 464 436 467
Income: Fees & Charges (236) (244) (202) (244)
Total Annual Income (236) (244) (202) (244)
Net Cost 219 220 234 223
Total Allocable Costs 53 46 46 46
Budgeted Cost 272 266 280 269
Budget Changes 2017/18 to 2018/19 272 272 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments (6) (6) Base Budget 266 266
Employee Budgets Pay Award 3 3
269 STATEMENT OF SERVICE 2017-2019
Sheet No: TCM 01
Service : Town Centre Management
Description of Service : To promote and support the economic well being of Poole Town Centre.
Theme : Places: Growth & Infrastructure
Responsible Officer : Julian McLaughlin Element Name : TOWN CENTRE Head of Growth & Infrastructure
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Total Full Time Equivalent 2.41 2.41
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 96 95 64 79 Premises Related Expenses 20 16 37 34 Transport Related Expenses 2 2 2 2 Supplies and Services 30 27 20 27 Agency and Contracted Services 9 7 1 7 Other Support Charges 12 1 1 1
Total Annual Costs 169 148 125 150
Income: Fees & Charges (31) (27) (27) (27) Rents (128) (128) (89) (128)
Total Annual Income (159) (155) (116) (155)
Net cost 10 (7) 9 (5)
Total Allocable Costs 14 20 20 20
Budgeted Cost 24 13 29 15
Budget Changes 2017/18 to 2018/19 24 24 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments (11) (11) Base Budget 13 13
Employee Changes Pay Award 2 2
Net cost 15
BUDGET 2018/2019
BUSINESS IMPROVEMENT
THEME
BUDGET 2018/2019
Index to Business Improvement Areas Theme
Financial Summary
Statements of Service Reference No.
- Democratic Representation & Management BI 1 - Elections BI 2 - Democratic Support Services BI 3 - Registrar of Births, Deaths & Marriages BI 4 - Local Land Charges BI 5 - Legal Services BI 6
- Cemeteries and Crematorium BI 7
- Local Tax Collection BI 8 - Financial Services (Support activities) BI 9A - Financial Services (SVPP Support activities) BI 9B - Financial Services Corporate Functions BI 10 - Business Resilience BI 11 - Financial Services Corporate Estates BI 12 - Benefits Administration BI 13 - Benefit Payments BI 14 - Financial Services Property Management BI 20
- Strategic Directorate, Corporate Management BI 15
- Corporate Strategy and Communications BI 16
- Human Resources BI 17
- Information, Communication and Technology Services BI 18
- Customer Services BI 19
BUDGET 2018/2019
INDEX OF SERVICES
Business Improvement Theme
BI 1 Democratic Representation & Management: Democracy, Civic Ceremonial, Support to the Leader of the Council, Hospitality, Subscriptions
BI 2 Elections: Electoral Registration, Local, General and European Elections
BI 3 Democratic Support Services: Support and Administration of the democratic process, including word processing, postal, courier services and document management
BI 4 Registrar of Births, Deaths & Marriages: Registration of Births, Deaths, Marriages and Civil Partnerships. Provision of civil services and ceremonies.
BI 5 Local Land Charges: Maintenance of the local land charges register and searches
BI 6 Legal Services: Advice and guidance to members and officers on current and new legislation and the proper exercise of the Council’s statutory powers and duties
BI 7 Cemeteries and Crematorium: Cemeteries, Crematorium.
BI 8 Local Tax Collection: Cost of collection for Council Tax and Non- Domestic Rates.
BI 9A Financial Services(BoP managed support activities) : Providing a range of financial services supporting the Council including; financial advice and planning; accountancy services; internal audit and review; treasury management; creditor payments; financial system management; risk management and insurance advice; procurement; business support and reception.
BI 9B Financial Services (Borough of Poole share of Stour Valley Partnership costs for support activities : Providing a range of financial services to the Council including; raising and monitoring invoices; the administration of means tested benefits for social services residential and home care; cashier services.
BI 10 Financial Services Corporate Functions: External Audit, Corporate Support, Statutory Duties and Publications, Debt Management.
INDEX OF SERVICES
Business Improvement Theme (Continued)
BI 11 Business Resilience: The provision of business continuity and resilience arrangements for the Council itself and also for the wider community.
BI 12 Corporate Estates: Valuations, Estate Management, Strategic Asset Management and Data Management.
BI 13 Benefit Administration: Administration costs of the Housing Benefit and Council Tax Benefit services.
BI 14 Benefit Payments: Actual cost of Council Tax and Housing Benefit payments net of subsidy received from the Department of Work and Pensions (DWP)
BI 15 Strategic Directorate and Corporate Management: Liaison with Members and the corporate management of the authority
BI 16 Corporate Strategy and Communications: A comprehensive corporate strategy and communication function providing accurate research and analysis, effective partnerships and timely information and communication.
BI 17 Human Resources: Employee relations; recruitment; payroll, pensions; training and development services; workforce equality and diversity issues, DBS checks, occupational health and the administration of Flippers Nursery
BI 18 Information, Communication and Technology Services: Management of all ICT service issues, strategy and policy; installation support; maintenance of ICT systems; business support; and project management
BI 19 Customer Services: To improve the overall quality, consistency and effectiveness of the customer experience of the Council, directly managing the Customer Services Centre and the Civic Centre Switchboard and Reception.
BI 20 Financial Services Property Management: The provision of Property Helpdesk, Maintenance and servicing of corporate properties, Facilities management and construction project management.
Business Improvement Summary 2018/2019
Net Gross Gross Net Sheet No: Statement of Service Description Budget Expenditure Income Budget 2017/18 2018/19 2018/19 2018/19 £000's £000's £000's £000's
BI 01 Democratic Representation and Management 1,518 1,611 (117) 1,494 BI 02 Elections 239 360 (40) 320 BI 03 Democratic Services (244) 467 (947) (480) BI 04 Registrars (53) 429 (441) (12) BI 05 Land Charges (1) 420 (426) (6) BI 06 Legal Services 95 1,312 (1,162) 150 BI 07 Cemeteries and Crematorium (1,271) 996 (2,211) (1,215)
Legal and Democratic Services 283 5,595 (5,344) 251
BI 08 Local Tax Collection 671 1,074 (547) 527 BI 9A Financial Services (BoP managed support based activities) 11 4,920 (5,424) (504) BI 9B Financial Services (BoP share of SVPP partnership (support activities) (182) 1,009 (1,195) (186) BI 10 Corporate Functions 244 354 (110) 244 BI 11 Business Resilience 93 73 0 73 BI 12 Corporate Estates 2 640 (733) (93) BI 13 Benefit Administration 1,077 1,740 (564) 1,176 BI 14 Benefit Payments 82 41,559 (41,708) (149) BI 20 Property Management 495 3,901 (3,538) 363
Financial Services 2,493 55,270 (53,819) 1,451
BI 15 Corporate Management Cost 600 1,190 (644) 546
BI 16 Corporate Strategy and communications 1,614 1,420 (98) 1,322
BI 17 Human Resources 454 1,752 (1,980) (228)
BI 18 Information, Communication & Technology Services 95 5,252 (5,445) (193)
BI 19 Customer Services 23 674 (1,036) (362)
Total for Business Improvement 5,562 71,153 (68,366) 2,787 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 1
Service : Democratic Representation and Management
Description of Service : Public representation and involvement in democratic governance of the town, the council and the civic roles.
Theme : Business Improvement
Responsible Officer : Tanya Coulter Element Name : DEM REPRESENT & MAN
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 3.68 3.68 Total Full Time Equivalent 3.68 3.68
Staffing plan covers Civic Ceremonial and support to Leader of the Council only. Committee Management posts are included in Statement of Service BI 4 (Democratic Support Services) and are recharged to this service as a support cost.
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 691 693 703 707 Premises Related Expenses 140 140 140 154 Transport Related Expenses 13 13 13 13 Supplies and Services 158 141 141 141 Democratic Services Support 489 489 489 489 Central Support Costs (variable) 3 3 3 3 Other Support Costs 43 43 43 43
Total Annual Costs 1,537 1,522 1,532 1,550
Income: Fees & Charges (1) (1) (1) (1) Recharges to other revenue heads (115) (116) (116) (116)
Total Annual Income (116) (117) (117) (117)
Net cost 1,421 1,405 1,415 1,433
Total Allocable Costs 97 75 75 61
Budgeted Cost 1,518 1,480 1,490 1,494
Budget Changes 2017/18 to 2018/19 1,518 1,518 Virements and Adjustments Net Budget Transfers (virements) & Other Adjustments (38) (38) Base Budget 1,480 1,480
Employee Changes Pay Award 14 14
Increased operational running costs Members Allowances Inflation 6 6
Savings / Efficiencies / Income Generation / Service Adjustments Members Allowances Inflation - withdrawn (6) (6)
1,494 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 2
Service : Elections
Description of Service : The cost of elections and maintaining the register of electors.
Theme : Business Improvement
Responsible Officer : Tanya Coulter Element Name : ELECTIONS
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 4.00 3.00 Restructure and TUPE (3.00) Total Full Time Equivalent 4.00 0.00
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 134 194 194 1 Premises Related Expenses 16 12 12 11 Transport Related Expenses 3 3 3 3 Supplies and Services 80 94 379 94 Other Support Costs 0 0 197 Central Support Costs (Variable) 27 27 27 28
Total Annual Costs 260 330 615 334 285 Income: Government Grants (37) (37) (300) (37) Fees & Charges (3) (3) (3) (3)
Total Annual Income (40) (40) (303) (40)
Net cost 220 290 312 294
Total Allocable Costs 19 26 26 26
Budgeted Cost 239 316 338 320
Budget Changes 2017/18 to 2018/19 239 239 Virements and Adjustments Net Budget Transfers (virements) & Other Adjustments 77 77 Base Budget 316 316
Employee Changes Pay Award 4 4
320 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 3
Service : Democratic Support Services
Description of Service : Support and administration of the democratic process, including member support, postal, courier services and document management.
Theme : Business Improvement
Responsible Officer : Tanya Coulter Element Name : DEMOCRATIC SVS
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 15.54 17.08 Restructure and TUPE (17.08) Total Full Time Equivalent 15.54 0
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 489 422 424 64 Premises Related Expenses 75 75 75 82 Transport Related Expenses 2 2 2 2 Supplies and Services 24 24 24 24 Agency and Contracted Services 0 0 0 183 Central Support Costs (variable) 0 0 0 Other Support Costs 2 2 2 2
Total Annual Costs 592 525 527 357
Income: Recharges to other revenue heads (951) (947) (947) (947)
Total Annual Income (951) (947) (947) (947)
Net cost (359) (422) (420) (590)
Total Allocable Costs 115 117 117 110
Budgeted cost (244) (305) (303) (480)
Budget Changes 2017/18 to 2018/19 (244) (244) Virements and Adjustments
Net Budget Transfers (virements) & Other Adjustments (61) (61) Base Budget (305) (305)
Employee Changes Pay Award 9 9
Savings / Efficiencies / Income Generation / Service Adjustments Voluntary Redundancy (184) (184) (480) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 4
Service : Registrar of Births , Deaths and Marriages
Description of Service : The registration of births, deaths, marriages and civil partnerships and the issue of certificates and copies, together with additional civil services and ceremonies as permitted or required under ongoing Registration Reform proposals.
Theme : Business Improvement
Responsible Officer : Tanya Coulter Element Name : REGISTRARS
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 7.88 9.10 Restructure and TUPE (9.10) Total Full Time Equivalent 7.88 0.00
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 269 270 224 2 Premises Related Expenses 43 47 47 47 Transport Related Expenses 1 1 1 1 Supplies and Services 12 25 25 24 Agency and Contracted Services 0 0 274 Transfer Payments 0 0 Legal Services Support 0 0 Central Support Costs (Variable) 0 0 Other Support Costs 0 0 Depreciation and Impairment 13 13 13 13
Total Annual Costs 338 356 310 361
Income: Fees & Charges (441) (441) (496) (441)
Total Annual Income (441) (441) (496) (441)
Net cost (103) (85) (186) (80)
Total Allocable Costs 50 67 67 68
Budgeted cost (53) (18) (119) (12)
Budget Changes 2017/18 to 2018/19 (53) (53) Virements and Adjustments Net Budget Transfers (virements) & Other Adjustments 35 35 Base Budget (18) (18)
Employee Changes Pay Award 6 6 (12) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 5
Service : Local Land Charges
Description of Service : To register Local Land Charges and process applications for searches of the Local Land Charge and Commons Register and for responses to the enquiries of Local Authorities (Com 29) submitted with such searches.
Theme : Business Improvement
Responsible Officer : Tanya Coulter Element Name : LAND CHARGES
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 2.60 2.60 Restructure and TUPE (2.6) Full Time Equivalent 2.60 0.00
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 Employees 71 71 71 1 Premises Related Expenses 7 7 7 5 Supplies and Services 24 14 39 14 Agency and Contracted Services 0 0 72 Transfer Payments 0 0 Legal Services Support 0 0 Central Support Costs (Variable) 0 0 Other Support Costs 160 160 160 160
Total Annual Costs 262 252 277 252
Income: Fees & Charges (426) (426) (449) (426)
Total Annual Income (426) (426) (449) (426)
Net cost (164) (174) (172) (174)
Total Allocable Costs 163 166 166 168
Budgeted cost (1) (8) (6) (6)
Budget Changes 2017/18 to 2018/19 (1) (1) Virements and Adjustments Net Budget Transfers (virements) & Other Adjustments (7) (7) Base Budget (8) (8)
Employee Changes Pay Award 2 2 (6) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 6
Service : Legal Services
Description of Service : Advice and guidance to members and officers on current and new legislation and the proper exercise of the council's statutory powers and duties, and the provision of a full range of legal support services for all Council functions and statutory duties.
Theme : Business Improvement
Responsible Officer : Tanya Coulter Element Name : LEGAL
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 21.22 21.22 Restructure and TUPE (21.22) Full Time Equivalent 21.22 0.00
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 949 943 876 6 Premises Related Expenses 27 27 27 26 Transport Related Expenses 4 4 4 4 Supplies and Services 179 196 224 197 Agency and Contracted Services 0 0 912 Transfer Payments 0 0 Interdepartmental Costs 0 0 Central Support Costs (variable) 0 0 Other Support Costs 1 1 1 1
Total Annual Costs 1,160 1,171 1,132 1,146
Income: Fees & Charges (8) (25) (20) (25) Recharges to other revenue heads (1,137) (1,137) (1,137) (1,137)
Total Annual Income (1,145) (1,162) (1,157) (1,162)
Net cost 15 9 (25) (16)
Total Allocable Costs 80 166 166 166
Budgeted cost 95 175 141 150
Budget Changes 2017/18 to 2018/19 95 95 Virements and Adjustments Net Budget Transfers (virements) & Other Adjustments 80 82 Base Budget 175 177
Employee Changes Pay Award 20 20 Savings / Efficiencies / Income Generation / Service Adjustments Joint Service Unit Head with BBC (59) Joint Service part backfill 12 (47)
150 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 7
Service : Bereavement Services (Cemeteries & Crematorium)
Description of Service : Costs and income related to cemeteries and crematoria
Theme : Business Improvement
Responsible Officer : Linda Barker Element Name : CEMS & CREMS
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 3.99 3.99 Total Full Time Equivalent 3.99 3.99
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 154 158 315 162 Premises Related Expenses 229 229 298 283 Supplies and Services 121 121 153 121 Agency and Contracted Services 302 302 452 302 Other Support Charges 9 9 9 9 Depreciation and Impairment 54 57 57 57
Total Annual Costs 869 876 1,284 934
Income: Fees & Charges (2,211) (2,211) (2,065) (2,211)
Total Annual Income (2,211) (2,211) (2,065) (2,211)
Net Cost (1,342) (1,335) (781) (1,277)
Total Allocable Costs 71 62 62 62
Budgeted Costs (1,271) (1,273) (719) (1,215)
Budget Changes 2017/18 to 2018/19 (1,271) (1,271) Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (2) (2) Base Budget (1,273) (1,273)
Employee Changes Pay Award 4 4
Increased Operational running costs Utility Costs 6 Rates 48 54 (1,215) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 8
Service : Local Tax Collection - Borough of Poole share of Stour Valley Poole Partnership (SVPP) costs.
Description of Service : The cost of collection of council tax and non-domestic rates.
Theme : Business Improvement
Responsible Officer : Adam Richens Element Name : LOCAL TAX COLLECTION
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 11.62 11.62 Miscellaneous Changes 0.85 Full Time Equivalent 11.62 12.47
FTE's reflect a 49% share of the total FTE's for the Stour Valley Poole Partnership (SVPP) Miscellaneous changes includes: changes in hours, apprentice from other FTEs, regrades and transfers.
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 462 465 465 458 Premises Related Expenses 24 24 24 24 Supplies and Services 117 117 117 93 Other Support Costs 360 360 360 360
Total Annual Costs 963 966 966 935
Income: Other grants, reimbursements and conts (242) (242) (242) (242) Fees & Charges (294) (294) (344) (294) Recharges to other revenue heads (11) (11) (11) (11)
Total Annual Income (547) (547) (597) (547)
Net cost 416 419 369 388
Total Allocable Costs 255 139 139 139
Budgeted cost 671 558 508 527
Budget Changes 2017/18 to 2018/19 671 671 Virements and Adjustments Net Budget Transfers (virements) & Other Adjustments (113) (113) Base Budget 558 558
Employee Changes Pay Award & Incremental drift 9 9
Savings / Efficiencies / Income Generation / Service Adjustments Staff Efficiencies (16) Operational Savings (24) (40) 527
Page 8 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 9A
Service : Financial Services (BoP Managed Support based activities)
Description of Service : Providing a range of financial services supporting the Council, including financial advice and planning; accountancy services; internal audit and review; treasury management; creditor payments; financial system management; risk management and insurance advice; procurement; business support & reception
Theme : Business Improvement
Responsible Officer : Adam Richens Element Name : FINSERV
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 50.45 50.45 Shared Posts (1.50) Service Redesign (0.86) Voluntary Redundancy - Accountancy (6.76) Voluntary Redundancy - Audit & Risk (1.65) BBC TUPED Staff 53.94 Total Full Time Equivalent 50.45 93.62 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 9A
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 2,260 2,296 3,719 4,345 Premises Related Expenses 70 99 102 102 Transport Related Expenses 7 7 5 7 Supplies and Services 199 193 156 190 Agency and Contracted Services 60 (0) 81 0 Transfer Payments 0 Revenue & Benefits Support 0 Central Support Costs (Variable) 0 0 Other Support Costs 3 3 3 3 Depreciation and Impairment 24 24 24 24 Asset Charges 0 RCCO and repayments to cap rsv 0 0
Total Annual Costs 2,623 2,621 4,090 4,671
Income: Government Grants 0 0 0 0 Other grants, reimbursements and conts (76) (65) (1,695) (2,436) Customer and client receipts : Sales 0 0 Fees & Charges (24) (24) (24) (24) Rents 0 Total Customer and client receipts : (100) (89) (1,719) (2,460)
Insurance Claims Reimbursed 0 0 (6) 0 0 Interest 0 Recharges External 0 Recharges to other revenue heads (2,551) (2,833) (2,815) (2,964) Children Services Direct A/C's (279) (66) (66)
Total Annual Income (2,930) (2,988) (4,606) (5,424)
Net cost (307) (367) (516) (753)
Below the line - Allocable Costs Central Support Costs (Fixed) 318 249 247 249 Policy Directorate Recharge 0 0 Admin Buildings/Central Support Recharge 0 0 Total Allocable Costs 318 249 247 249
Use of Earmarked Reserve 0 0 0 0
Budgeted cost 11 (118) (269) (504)
Budget Changes 2017/18 to 2018/19 11 11 Virements and adjustments Net Budget Transfers (virements) & Other Adjustments (162) (155) Base Budget (151) (144) Employee Changes Pay Award 41 41
Contractual Commitments Insurance Increase 30 30
Savings / Efficiencies / Income Generation / Service Adjustments Service redesign issues (13) Vacant Post Accountancy (31) Joint Insurance Manager with BBC (10) Restructure Internal Audit - Apprentice replace Auditor (12) Joint Head Strategic Procurement (22) Senior Procurement post (12) Joint Creditors/Accounts Payable Team Leader (21) Voluntary Redundancy (310) (431) (504) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 9B
Service : Financial Services - Borough of Poole share of SVPP Partnership (SVPP) costs for Support Activities
Description of Service : Providing a range of financial services supporting the Council, including (i) raising and monitoring invoices; (ii) the administration of means tested benefits for Social Services residential & home care. (iii) cashier services
Theme : Business Improvement
Responsible Officer : Adam Richens Element Name : FINSERV
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 22.31 20.00 Adjustment 2.31 Miscellaneous changes 1.72 Total Full Time Equivalent 24.03
FTE's reflect a 49% share of the total FTE's for the Stour Valley Poole Partnership (SVPP) Miscellaneous changes includes: changes in hours, apprentice from other FTEs, regrades and transfers.
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 923 923 923 907 Premises Related Expenses 59 59 59 73 Transport Related Expenses 7 7 7 7 Supplies and Services 16 16 216 14 Central Support Costs (Variable) 8 8 8 8
Total Annual Costs 1,013 1,013 1,213 1,009
Income: Recharges to other revenue heads (1,195) (1,195) (1,529) (1,195)
Total Annual Income (1,195) (1,195) (1,529) (1,195)
Net cost (182) (182) (316) (186)
Total Allocable Costs 0 14 14 0
Budgeted cost (182) (168) (302) (186)
Budget Changes 2017/18 to 2018/19 (182) (182) Virements and adjustments
Net Budget Transfers (virements) & Other Adjustments 14 14 Base Budget (168) (168)
Employee Changes Pay Award 18 18
Savings / Efficiencies / Income Generation / Service Adjustments Staff Efficiencies (34) Operational Savings (2) (36) (186) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 10
Service : Financial Services Corporate Functions
Description of Service : Statutory duties, external audit and inspections, treasury management and statutory publications.
Theme : Business Improvement
Responsible Officer : Adam Richens
Revenue Cost Plan :
Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Premises Related Expenses 4 4 3 4 Supplies and Services 259 259 309 259 Central Support Costs 91 91 91 91
Total Annual Costs 354 354 403 354
Income: Recharges to other revenue heads (110) (110) (110) (110)
Total Annual Income (110) (110) (110) (110)
Net Cost 244 244 293 244
Budgeted Cost 244 244 293 244
Budget Changes 2017/18 to 2018/19 244 244
Base Budget 244 244 244 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 11
Service : Financial Services - Emergency Planning
Description of Service : Emergency Planning is the Councils approach to managing emergencies which does through anticipation, assessment, prevention, response and recovery whilst ensuringcompliancewith all statutory duties relating to emergency planning. Theme : Business Improvement
Responsible Officer : Adam Richens Element Name : EMERGENCY PLANNING
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent (FTE's) 0.90 0.90 Voluntary Redundancy (0.35) Total Full Time Equivalent 0.90 0.55
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 37 37 37 18 Premises Related Expenses 0 2 2 2 Transport Related Expenses 1 1 0 0 Supplies and Services 5 5 5 5 Agency and Contracted Services 43 43 45 43
Net Cost 86 88 89 68
Total Allocable Costs 7 5 6 5
Budgeted Cost 93 93 95 73
Budget Changes 2017/18 to 2018/19 93 93 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments 0 0 Base Budget 93 93
Savings / Efficiencies / Income Generation / Service Adjustments Voluntary Redundancy (20) (20) 73 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 12 Service : Financial Services - Corporate Estates Description of Service : Financial Services - Corporate Estates are responsible for the following range of activities; Valuations, Estate Management of the vacant, surplus estate and the leased and investment portfolio, Strategic Asset Management of the operational Estate and Data Management. Theme : Business Improvement Responsible Officer : Adam Richens Element Name: CORPORATE ESTATES
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent (FTE's) 12.61 12.61 Vacant Posts (3.22) Reduction in Hours (0.44) Diversion of Post external valuations 1.57 Voluntary Redundancy (1.00) Total Full Time Equivalent 12.61 9.52
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 535 541 464 447 Premises Related Expenses 28 24 25 25 Transport Related Expenses 2 2 2 2 Supplies and Services 11 11 50 9 Other Support Charges 6 6 6 6
Total Annual Costs 582 584 547 489
Income: Fees & Charges (5) (5) (5) (5) Recharges to other revenue heads (728) (730) (730) (728)
Total Annual Income (733) (735) (735) (733)
Net Cost (151) (151) (188) (244)
Total Allocable Costs 153 151 151 151
Budgeted Cost 2 0 (37) (93)
Budget Changes 2017/18 to 2018/19 2 2 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments (2) 3 Base Budget 0 5
Employee Changes Pay Award 8 8
Savings / Efficiencies / Income Generation / Service Adjustments Vacant Post Estates Surveyor (40) Estates Surveyor Reduced Hours (9) Vacant Post Assistant Estates Surveyor (16) Vacant Post Assistant Estates Surveyor (17) Vacant Systems Admin & Asset Data Officer (30) Senior Strategic Estates Manager Reduced hours (10) Diversion of Resources into external valuations 67 Voluntary Redundancy (51) (106) (93) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 13
Service : Benefit Administration - Borough of Poole Share of SVPP Partnership costs Description of Service : Administration costs of the Benefit Service. Theme : Business Improvement Responsible Officer : Adam Richens Element Name : HSG BEN ADMIN
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 24.94 24.94 Miscellaneous changes (0.98) Total Full Time Equivalents 24.94 23.96
FTE's reflect a 49% share of the total FTE's for the Stour Valley Poole Partnership (SVPP) Miscellaneous changes includes: changes in hours, apprentice from other FTEs, regrades and transfers.
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,153 1,159 1,159 1,140 Premises Related Expenses 9 9 9 9 Transport Related Expenses 2 2 2 2 Supplies and Services 29 29 107 24 Other Support Costs 306 306 306 306
Total Annual Costs 1,499 1,505 1,583 1,481
Income: Government Grants (584) (584) (662) (521) Fees & Charges (9) (9) (9) (16) Interest (11) (11) (11) (11) Recharges to other revenue heads (16) (16) (16) (16)
Total Annual Income (620) (620) (698) (564)
Net cost 879 885 885 917
Total Allocable Costs 198 259 259 259
Budgeted Cost 1,077 1,144 1,144 1,176
Budget Changes 2017/18 to 2018/19 1,077 1,077 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments 67 67 Base Budget 1,144 1,144
Employee Changes Pay Award 22 22
Specific Grant Changes Housing Benefit Grant 63 63
Savings / Efficiencies / Income Generation / Staff Efficiencies (41) Operational Savings (5) Additional Partnership Income (7) (53) 1,176 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 14
Service : Benefit Payments
Description of Service : Payments net of subsidy received for Council Tax and Housing Benefit.
Theme : Business Improvement
Responsible Officer : Adam Richens Element Name : HSG BEN PAYMENTS
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Supplies and Services 828 828 433 771 Transfer Payments 46,175 46,175 43,129 40,788
Total Annual Costs 47,003 47,003 43,562 41,559
Income: Government Grants (46,737) (46,737) (43,889) (41,502) Recharges to other revenue heads (184) (184) (203) (206)
Total Annual Income (46,921) (46,921) (44,092) (41,708)
Budgeted Costs 82 82 (530) (149)
Budget Changes 2017/18 to 2018/19 82 82
Changes
Reduced annual bad debt provision (expenditure) (57)
1% HRA Rent decrease - impact on rent rebate benefit payments (expenditure) (115) 1% HRA Rent decrease - impact on rent rebate benefit payments (income) 115
Impact of other changes - caseload, inflation etc. (expenditure) (5,272) Impact of other changes - caseload, inflation etc. (income) 5,098
(149) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 15
Service : Strategic Directorate and Corporate Management
Description of Service : Liaison with Members and the corporate management of the authority.
Theme : Business Improvement
Responsible Officer : Andrew Flockhart Element Name : CORP MANAGEMENT COST
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 9.70 9.70 PA post redundant (0.40) Total Full Time Equivalent 9.70 9.30
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 723 720 745 726 (25) Premises Related Expenses 44 29 29 29 0 Transport Related Expenses 3 3 1 1 2 Supplies and Services 13 13 7 7 6 Agency and Contracted Services 0 0 375 0 (375) Central Support Costs (Variable) 4 4 4 2 0 Other Support Costs 6 6 4 5 2
Total Annual Costs 793 775 1,165 770 -390
Income: Other grants, reimbursements and conts (72) (72) (76) (77) Recharges to other revenue heads (753) (567) (567) (567) 0
Total Annual Income (825) (639) (643) (644) 0
Net cost (32) 136 522 126 -390
Total Allocable Costs 632 420 420 420 0
Budgeted cost 600 556 942 546 (390)
Budget Changes 2017/18 to 2018/19 600 600 Virements and Adjustments
Net Budget Transfers (virements) & Other Adjustments (44) (42) Base Budget 556 558
Employee Changes Pay Award 14 Chief Executive Pay Costs 19 33 Other Changes Salary Costs 5 Salary Recharges (5) 0 Savings / Efficiencies / Income Generation / Service Adjustments Director / PA Savings (7) Supplies & Services (12) Voluntary Redundancy (26) (45) 546 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 16
Service : Corporate Strategy and Communications
Description of Service : A comprehensive corporate strategy & communications function providing accurate research & analysis, effective partnerships & timely information and communication.
Theme : Business Improvement
Responsible Officer : Julian Osgathorpe Element Name : PROMOTION
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 28.78 28.78 GIS staff transferred to ICT (BI 18) (3.00) Deleted posts - restructure (2.00) Deleted post - Project Manager (1.00) Adjusted hours - Senior Research and Intelligence Officer 0.04 Adjusted hours - Comms & Information Support Officer 0.30 Total Full Time Equivalent 28.78 23.12
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,138 1,013 1,022 813 Premises Related Expenses 39 28 28 23 Transport Related Expenses 5 4 4 4 Supplies and Services 200 186 471 186 Agency and Contracted Services 375 249 312 249 Other Support Charges 2 2 11 2
Total Annual Costs 1,759 1,482 1,848 1,277
Income: Government Grants (67) 0 (318) 0 Other grants, reimbursements and conts 0 0 (78) 0 Fees & Charges (20) (20) (20) (20) Recharges to other revenue heads (300) (128) (131) (78)
Total Annual Income (387) (148) (547) (98)
Net Cost 1,372 1,334 1,301 1,179
Total Allocable Costs 242 143 143 143
Budgeted Cost 1,614 1,477 1,444 1,322
Budget Changes 2017/18 to 2018/19 1,614 1,614 Virements and Other Adjustments Net Budget Transfers (virements) & Other Adjustments (137) (136) Base Budget 1,477 1,478
Employee Budgets Pay Award 17 17 Savings / Efficiencies / Service Adjustments Voluntary redundancy - share of savings (173) (173) Other Changes Post deleted - Project Manager (50) Recharge to Commissioning and Improvement - People Services 50 0 1,322 STATEMENT OF SERVICE 2017-2019 Sheet No. BI 17
Service : Human Resources
Description of Service : Human Resources is responsible for Corporate Human Resources Management for service units and maintained schools. This includes Recruitment and Retention, Payroll & Pensions, Organisational Development and Training, Workforce equality and diversity issues, DBS checks, Occupational Health and Flippers Nursery.
Theme : Business Improvement
Responsible Officer : Saskia De Vries Element Name : HUMAN RESOURCES
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 37.20 37.20 Voluntary Redundancy (6.59) Shared Head of HR (0.50) BOP TUPED Staff (23.00) Total Full Time Equivalent 37.20 7.11
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,248 1,241 773 183 Premises Related Expenses 99 104 103 104 Transport Related Expenses 3 3 1 3 Supplies and Services 326 326 311 326 Agency and Contracted Services 0 0 553 853 Other Support Costs 13 13 13 13
Total Annual Costs 1,689 1,687 1,754 1,482
Income: Other grants, reimbursements and conts (73) (73) (60) (73) Fees & Charges (395) (395) (420) (368) Rents 0 Total Customer and client receipts : (468) (468) (480) (441)
Interest 0 Recharges to other revenue heads (1,000) (1,474) (1,493) (1,474) Recharges Children's Services Direct Ac (38) (38) (55) (65)
Total Annual Income (1,506) (1,980) (2,028) (1,980)
Net cost 183 (293) (274) (498)
Total Allocable Costs 271 270 269 270
Budgeted cost 454 (23) (5) (228)
Budget Changes 2017/18 to 2018/19 454 454 Virements and adjustments
Net Budget Transfers (virements) & Other Adjustments (477) (474) Base Budget (23) (20)
Employee Changes Pay Award 31 31
Savings / Efficiencies / Income Generation / Service Adjustments Joint Service Head (45) Joint Service Part Back Fill 8 Voluntary Redundancy (202) (239) (228) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 18
Service : Information, Communication and Technology Services
Description of Service : The management of all ICT service issues strategy and policy, installation support and maintenance of ICT systems, business support and project management.
Theme : Business Improvement
Responsible Officer : Katie Lacey Element Name : ITSERV
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 45.00 45.00 Restructure & TUPE from B'mth 47.18 Total Full Time Equivalent 45.00 92.18
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 1,904 2,289 3,465 3,859 Premises Related Expenses 77 92 92 73 Transport Related Expenses 1 2 2 2 Supplies and Services 932 996 1,107 896 Other Support Costs 11 13 13 11 Depreciation and Impairment 243 255 255 255
Total Annual Costs 3,168 3,647 4,934 5,096
Income: Other grants, reimbursements and conts 0 0 (1,318) (2,118) Recharges to other revenue heads (3,227) (3,592) (3,572) (3,327)
Total Annual Income (3,227) (3,592) (4,890) (5,445)
Net cost (59) 55 44 (349)
Total Allocable Costs 154 135 135 156
Budgeted cost 95 190 179 (193)
Budget Changes 2017/18 to 2018/19 95 95 Virements and Adjustments
Net Budget Transfers (virements) & Other Adjustments 95 264 Base Budget 190 359
Employee Changes Pay p Award 47 47
Savings / Efficiencies / Income Generation / Service Adjustments Joint Service Unit Head with BBC (41) ICT Review of Project Arrangments (25) Canon Contract Savings (100) Voluntary Redundancy (533) Reduced Income Steam 100 (599) (193) STATEMENT OF SERVICE 2017-2019 Sheet No. BI 19
Service : Customer Services
Description of Service : To improve the overall quality, consistency and effectiveness of the customer experience of the Council, directly managing the Customer Services Centre and the Civic Centre reception.
Theme : Business Improvement
Responsible Officer : Katie Lacey Element Name : Customer Services
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent 24.84 24.84 Restructure (10.27) Full Time Equivalent 24.84 14.57
Revenue Cost Plan :
Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 765 477 495 488 Premises Related Expenses 42 32 32 43 Transport Related Expenses 0 0 0 0 Supplies and Services 54 4 55 5 Central Support Costs (Variable) 1 1 1 1 Other Support Charges 1 1 1 1
Total Annual Costs 863 515 584 538
Income: Recharges to other revenue heads (1,036) (1,036) (1,036) (1,036)
Total Annual Income (1,036) (1,036) (1,036) (1,036)
Net cost (173) (521) (452) (498)
Total Allocable Costs 196 148 148 136
Budgeted cost 23 (373) (304) (362)
Budget Changes 2017/18 to 2018/19 23 23 Virement and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments (396) (395) Base Budget (373) (372)
Employee Changes Pay p Award 10 10 (362) STATEMENT OF SERVICE 2017-2019
Sheet No. BI 20
Service : Financial Services - Property Management
Description of Service : The Borough's Capital Programme, Property Maintenance & Servicing of the Borough's Assets. Facilities Management, Property Helpdesk, Maintaining data on the Borough's Building stock.
Theme : Business Improvement
Responsible Officer : Adam Richens Element Name: PROPERTY MANAGEMENT
Staffing Plan Year 0 Year 1 Budget Budget 2017/18 2018/19 Full Time Equivalent (FTE's) 20.88 20.88 Voluntary Redundancy (7.26) BOP TUPED Staff (10.00) Total Full Time Equivalent 20.88 3.62
Revenue Cost Plan : Full Year Operating Plan Year 0 Approved Forecast Year 1 Budget Resource 2017/18 2018/19 2017/18 2017/18 £000's £000's Employees 786 780 776 163 Premises Related Expenses 1,907 1,905 2,086 1,928 Transport Related Expenses 2 2 2 2 Supplies and Services 65 65 56 66 Agency and Contracted Services 29 29 28 450 Other Support Charges 227 134 148 136 Depreciation and Impairment 222 225 224 225
Total Annual Costs 3,238 3,140 3,320 2,970
Income: Fees & Charges (44) (44) (23) (28) Rents (3) (3) (3) (3) Recharges to other revenue heads (4,042) (3,519) (3,556) (3,507)
Total Annual Income (4,089) (3,566) (3,582) (3,538)
Net Cost (851) (426) (262) (568)
Total Allocable Costs 1,346 931 930 931
Budgeted Cost 495 505 668 363
Budget Changes 2017/18 to 2018/19 495 495 Virements and Other Adjustments
Net Budget Transfers (virements) & Other Adjustments 10 12 Base Budget 505 507
Employee Changes Pay Award 12 12
Savings / Efficiencies / Income Generation / Service Adjustments Voluntary Redundancy (194) Voluntary Redundancy Position Income 12 Provision of Residual duties - Caretaker 5 Tea Services replacement service 5 Tea Services replacement service lost of income 16 (156) 363
BUDGET 2018/2019
HOUSING
REVENUE
ACCOUNT
(HRA)
BUDGET 2018/2019
Housing Revenue Account - Explanatory Note
Example of rent increase on individual tenancies
Service Charges
Statement of Accounts
Capital Programme
Major Repairs Reserve
BUDGET 2018/2019
HOUSING REVENUE ACCOUNT (EXPLANATORY NOTE)
Resource (Statutory) Account
INCOME
Dwelling Rents: The amount of income derived from the rents of the authorities properties. Rent is charged on a 48 week basis (4 rent free weeks) however every 7 years there is an extra rent week resulting in a 49 week year. In April 2002 the Council implemented a process called “rent restructuring” whereby the authority’s rents are moved over period of time to a new rent setting formula introduced by the Government. This approach takes account of the value of a property, the number of bedrooms in the property, and local earnings. For 2012/13 the Government revised the period of rent restructuring to 2015/16. The Welfare Reform Act 2016 brought in a rent reduction of 1% in each of the following 4 years.
Non Dwelling Rents: Income generated from four retained garage sites, stores and other property within the Housing Revenue Account.
Charges for Services and Facilities: Income from services and facilities provided by the authority in connection with the provision of housing. For example Sheltered Housing Officer charges, the recharge of energy costs (Electricity, Gas) and guest bedrooms.
Sums directed by the Secretary of State: In line with recommended best practice this represents the amount paid by the General Fund as a contribution towards the Grounds Maintenance costs of HRA land.
EXPENDITURE:
Repairs and Maintenance: Revenue expenditure on the repair and maintenance of HRA property, whether planned or responsive, which is not enhancement work and therefore fails to meet the definition of capital expenditure. Enhancement (Capital Expenditure) may include re-roofing or the installation of central heating or double glazing but not painting or the replacement of tiles or broken windows. Maintenance includes the cost of Grounds Maintenance on HRA land and to Sheltered Accommodation blocks.
Supervision and Management: This covers expenditure on such activities as policy and management, managing tenancies, rent collection and accounting, caretaking, cleaning, sheltered housing and energy costs.
Rent, rates, taxes, and other charges: Rents and other charges payable by the authority rather than their tenants. For example building insurance and empty property costs.
HOUSING REVENUE ACCOUNT (EXPLANATORY NOTE)
Continued
Provision for Bad or Doubtful Debts: Sums that provide for the write-off of rent and other service charge arrears.
Capital Financing Charges - Depreciation: Depreciation - this represents the consumption of HRA fixed assets over their useful life and should provide a clear picture on the need for expenditure to maintain the value of the stock.
Debt Management Costs: The HRA’s share of their proportion of the authorities debt management expenses calculated in accordance with proper practice.
Interest Payable & Similar Charges: The cost incurred by the HRA in servicing the outstanding amount of debt owed in respect of the Council’s Housing stock through borrowing. This increased significantly from 2012/13 as the HRA bears the full cost of any external debt taken out previously to fund investment in housing as well as the extra £43.9m of debt to fund the HRA Self Financing system. The HRA is committed in the first instance to meeting any interest costs associated with approximately £100m of debt.
Interest Receivable: The HRA’s share of interest and other income received by the authority in respect of investments, loans and mortgages.
Transfers to and from the Major Repairs Reserve: This technical transfer ensures that the depreciation charge in respect of Other Land and Property (OLP) does not impact on the HRA “bottom line”. APPENDIX A HOUSING REVENUE ACCOUNT THE RENT INCREASE EFFECT ON RESIDENTS
2017/18 2018/19 52 week 48 week 52 week 48 week 52 week 48 week decrease Increase / Increase / Basis Basis as a % Basis Basis Decrease Decrease £ £ £ £ £ £
Overall Average per Budget 84.66 91.69 83.79 90.77 -0.87 -0.92 -1.0%
Examples of Rent Increases General Properties Herbert Court 1 Bedroom flat 75.66 81.96 74.89 81.12 -0.76 -0.84 -1.0% Junction Road 1 Bedroom flat 65.00 70.42 64.35 69.72 -0.65 -0.70 -1.0% Rockley Road 1 Bedroom flat 72.90 78.98 72.16 78.17 -0.74 -0.81 -1.0% Sterte Court 1 Bedroom flat 70.32 76.18 69.61 75.41 -0.71 -0.77 -1.0% Rodney Court 2 Bedroom flat 88.31 95.66 87.43 94.70 -0.88 -0.96 -1.0% Plumer Road 2 Bedroom house 89.39 96.83 88.49 95.85 -0.90 -0.98 -1.0% Christopher Crescent 3 Bedroom house 98.85 107.09 97.86 106.02 -0.99 -1.07 -1.0% Egmont Road 3 Bedroom house 89.79 97.28 88.90 96.32 -0.89 -0.96 -1.0% Haskells Road 3 Bedroom house 88.92 96.34 88.03 95.38 -0.89 -0.96 -1.0% Perry Gardens 4 Bedroom house 110.98 120.23 109.87 119.03 -1.11 -1.20 -1.0%
Sheltered Housing Officer serviced properties Cynthia Close 1 Bedroom flat 77.10 83.53 76.33 82.69 -0.77 -0.84 -1.0% Millfield 1 Bedroom flat 74.39 80.59 73.65 79.79 -0.74 -0.80 -1.0% South Road 1 Bedroom flat 77.10 83.53 76.32 82.68 -0.78 -0.85 -1.0% Trinidad House 1 Bed Bungalow 75.74 82.05 74.98 81.22 -0.76 -0.83 -1.0% Waterloo House 1 Bed Bungalow 83.66 90.64 82.82 89.73 -0.84 -0.91 -1.0%
APPENDIX A APPENDIX B HOUSING REVENUE ACCOUNT SERVICE CHARGES FOR 2018/19
2017/18 2018/19 £ Uplift £ 1. Garage Rents Proposed Charges - Tenants Poole Old Town 10.83 3.0% 11.16 Remainder of Poole 6.16 3.0% 6.35 Charges - Non-Tenants Poole Old Town (excl VAT) 15.00 3.0% 15.45 Poole Old Town (incl VAT) 18.00 3.0% 18.54 Remainder of Poole (excl VAT) 9.42 3.0% 9.70 Remainder of Poole (incl VAT) 11.30 3.0% 11.64
2. Sheltered Housing Service Charges inc Lifeline General 6.96 2.00% 7.10 Vale Close 7.00 0.00% - Davis Court 7.00 0.00% - Willow Park 6.96 2.00% 7.10 Belmont Court 17.04 2.00% 17.38
3. Supporting People Service Charge Personal Charge:- Preventative (circa 85% of the 20% of Sheltered Residents) 7.06 1.70% 7.18
4. Guest Bedrooms in Sheltered Accommodation 1 night 2 nights 3 nights 4-7 nights Cost per room with no ensuite - includes cleaning 20.00 28.00 36.00 45.00 No Change Cost per room with ensuite - includes cleaning 24.00 34.00 44.00 54.00 No Change 5. Heating Charges 1 bed 9.60 -9.2% 8.72 2 bed 11.53 -9.2% 10.47 3 bed 13.46 -9.2% 12.22 6. Communal Heating Standard Charge 1.17 4.3% 1.12 7. Communal Power Standard Charge £0.82 to £4.21 0.0% £0.82 to £4.21 APPENDIX C HOUSING REVENUE ACCOUNT HOUSING REVENUE ACCOUNT - STATEMENT OF ACCOUNTS FOR 2018/19
2017/18 Forecast Proposed Original Original Budget Outturn Budget Budget Budget 2018/19 2019/20 2020/21 £000's £000's £000's £000's £000's
Income Dwelling Rents (gross) (19,907) (19,841) (19,666) (19,469) (20,053) Non-Dwelling Rents (gross) (370) (377) (45) (45) (45) Charges for Services and Facilities (1,351) (1,278) (1,253) (1,266) (1,329) Contributions to Expenditure (60) (87) (49) (51) (52) Other Income (PV - Feed In Tariffs) 0 (80) (80) (80) General Contribution to Management Fee (10) (75) (75) (75) RTB Sales Admin (26) (26) (26) (26)
Total Income (21,688) (21,619) (21,194) (21,011) (21,660)
Expenditure Repairs and Maintenance 5,451 5,454 5,326 5,406 5,487 Supervision and Management 4,437 4,429 4,311 4,376 4,595 Rent, rates, taxes and other charges 155 155 156 158 163 Payback of PV Borrowing 0 0 0 0 0 Bad or Doubtful debts 197 197 197 197 197 Capital financing costs (debt management costs) 88 88 101 103 103 Depreciation - Council Dwellings 4,558 5,100 4,704 4,845 4,845 Depreciation - Other Land and Property 0 0 0 0 Total Expenditure 14,886 15,423 14,795 15,085 15,390
Net Cost of HRA Services - (Surplus) / Deficit (6,802) (6,196) (6,398) (5,926) (6,270)
Capital Charges - Cost of Capital Charge 3,105 3,105 3,134 3,143 3,131 - Interest Receivable (66) (66) (66) (66) (66)
3,039 3,039 3,068 3,077 3,065
Net Operating Expenditure - (Surplus) / Deficit (3,763) (3,157) (3,331) (2,849) (3,205)
Appropriations Revenue contribution to capital outlay (RCCO) 3,763 3,143 3,332 2,849 3,205 Transfers to / (from) the Major Repairs Reserve (in respect of 0 0 0 depreciation on Other Land & Property) 3,763 3,143 3,332 2,849 3,205
(Surplus) / Deficit on the HRA for the Year 0 (14) 1 0 0 ovement on Housing Revenue Account Balances (This excludes the Major Repairs Reserve)
Proposed Forecast Original Original Original Budget Outturn Budget Budget Budget 2016/17 2017/18 2018/19 2018/19 £000's £000's £000's £000's £000's Balance (surplus) as at 1st April (Brought Forward) (570) (570) (570) (570) (570) (Surplus) / Deficit for the Year 0 0 1 0 0
Balance (surplus) as at 31 March (570) (570) (569) (570) (570) APPENDIX D HOUSING REVENUE ACCOUNT HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME FOR 2018-19
Carry Budget Forecast Estimate Estimate Estimate Forward 2017/18 2017/18 2017/18 2018/19 2019/20 2020/21 Basic Planned Maintenance Programme Minor Works 75,000 75,000 75,000 75,000 75,000 External Doors 105,650 255,650 201,500 238,200 225,000 Kitchen Replacement Programme 617,500 467,500 568,000 647,500 618,000 Boiler Replacement Programme 552,100 552,100 856,200 562,400 1,324,000 Electrical Works 514,500 514,500 540,500 640,000 640,000 Bathrooms 192,500 192,500 185,500 218,232 154,590 Building Envelope (Seddons) 385,500 385,500 355,350 355,350 355,350 Communal Lighting Upgrades 15,000 15,000 15,000 15,000 15,000 Door Entry System 35,000 35,000 20,000 20,000 20,000 Structural Works 10,000 10,000 7,500 7,500 7,500 Lift Improvements Programme 21,000 21,000 18,000 18,000 18,000 Building External - all schemes 314,500 289,500 297,500 305,750 314,500 Out buildings (inc. garages) 90,000 90,000 45,000 45,000 45,000 Fire alarms 18,900 18,900 31,500 27,500 32,500 Asbestos 110,000 110,000 90,000 90,000 90,000 Energy Conservation 50,000 50,000 50,000 50,000 50,000 TV 10,000 10,000 7,500 5,000 5,000 Roofing 275,370 275,370 250,000 250,000 250,000 Windows 250,000 250,000 250,000 250,000 250,000 Internal Noise Installation 5,000 5,000 5,000 5,000 5,000 Housing & Health Safety Rating Systems - Category 1 57,560 57,560 57,560 57,560 57,560 Housing & Health Safety Rating Systems - Category 2 80,000 80,000 80,000 80,000 80,000 Plastering 60,000 60,000 60,000 75,000 75,000 External Water / Drainage Modification Upgrade 100,000 100,000 70,000 75,000 75,000 New / Modification works to boundaries 100,000 100,000 65,000 60,000 60,000 New / Modification hardscape 76,685 76,685 82,500 85,000 85,000 Renewal / Modifications to communal areas 54,705 54,705 75,000 75,000 60,000 Fire Risk Remedials 175,000 175,000 200,000 200,000 200,000 Tower Block Remedials 20,000 50,000 50,000 Capitalized Poole Housing Partnership Salaries 516,375 516,375 520,000 522,000 524,000 Sub-Total 4,867,845 4,842,845 0 5,099,110 5,104,992 5,761,000
Other Planned Maintenance
Disabled Adaptations 350,000 350,000 350,000 350,000 350,000 Stairlifts 30,000 30,000 30,000 30,000 30,000 Voids Maintenance 50,000 50,000 50,000 50,000 50,000 Sustainability 100,000 100,000 100,000 100,000 100,000 Right to Buy Administration 6,000 16,900 26,000 26,000 26,000 Photovoltaic 0 0 0 Information Technology Capital Costs 500,000 315,000 185,000 285,000 0 0 Contingency 450,000 50,000 250,000 250,000 250,000 Sub Total 1,486,000 911,900 185,000 1,091,000 806,000 806,000 Major Projects Tower Blocks (Old Town) 200,000 225,000 100,000 2,000,000 3,000,000 New Build 2,000,000 0 800,000 800,000 0 0 APPENDIX D HOUSING REVENUE ACCOUNT HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME FOR 2018-19
Carry Budget Forecast Estimate Estimate Estimate Forward 2017/18 2017/18 2017/18 2018/19 2019/20 2020/21 Small Sites programme 500,000 450,000 500,000 500,000 500,000 Sheltered Schemes 300,000 4,462,734 6,000,000 Canford Heath Road 9,800,000 4,900,000 4,900,000 4,900,000 0 0 Sprinklers 1,000,000 0 0 Sheltered Sites 250,000 50,000 200,000 200,000 Sub Total 12,750,000 5,625,000 5,900,000 7,800,000 6,962,734 9,500,000
TOTAL EXPENDITURE 19,103,845 11,379,745 6,085,000 13,990,110 12,873,726 16,067,000
Funding of Capital Programme Prudential Borrowing 8,100,000 Opening Major Repairs Reserve 10,641,428 10,641,428 9,594,083 5,304,884 300,864 Contributions In Year 8,321,000 8,243,000 8,035,411 7,693,706 8,049,706 Spendable Capital Receipts 3,249,000 1,384,500 1,639,500 150,000 150,000 RTB Sales Admin 16,900 26,000 26,000 26,000 Trinidad Sales 688,000 Other Funding Sources 0 0 Less: Capital Commitment 19,103,845 11,379,745 13,990,110 12,873,726 16,067,000 Major Repairs Reserve Carried Forward 3,107,583 9,594,083 0 5,304,884 300,864 559,569 APPENDIX E HOUSING REVENUE ACCOUNT MAJOR REPAIRS RESERVE
Budget Forecast Budget Budget Budget 2017/18 Outturn 2018/19 2019/20 2020/21
£000's £000's £000's £000's £000's
BALANCE BROUGHT FORWARD 1st APRIL (8,468) (10,641) (9,594) (5,305) (301)
INCOME TO RESERVE Transfer of equivalent amount to Major Repairs (4,558) (5,100) (4,704) (4,845) (4,845) Allowance
Revenue contribution to capital (RCCO) (3,763) (3,143) (3,332) (2,849) (3,205)
Transfer of equivalent amount to deprecitaion on other - - - - - land and property
Prudential Borrowing (8,100)
Grant, Capital Receipt and GF Contribution - (705) (26) (26) (26)
Useable Receipts (3,150) (1,385) (1,640) (150) (150)
TOTAL INCOME (19,939) (20,974) (19,295) (13,175) (16,627)
EXPENDITURE TO RESERVE Capital Expenditure funded from the Major Repairs Rese 16,904 11,380 13,990 12,874 16,067 Transfer to appropriations of the Depreciation on Other - - - - - Land & Property
TOTAL EXPENDITURE 16,904 11,380 13,990 12,874 16,067
BALANCE TO CARRY FORWARD 31st MARCH (3,035) (9,594) (5,305) (301) (560)
Planned Capital Expenditure Decent Homes 4,968 4,843 5,099 5,105 5,761 Other Planned Maintenance 1,086 912 1,091 806 806 Sub Total 6,054 5,755 6,190 5,911 6,567 Tower Blocks 100 225 100 2,000 3,000 New Build 2,000 - 800 - - Small Sites / Acqusitions 500 450 500 500 500 Trinidad - - - - - Canford Heath Road 8,000 4,900 4,900 - - Sheltered 250 50 200 - - Cynthia House, Cynthia Close & Trinidad A - - 300 4,463 6,000 Sprinklers - - 1,000 - - Other Investment - - - Total 16,904 11,380 13,990 12,874 16,067
Total Capital Expenditure to be funded via MRR 16,904 11,380 13,990 12,874 16,067
BUDGET 2018/2019
SUBJECTIVE ANALYSIS
&
BUDGET SUMMARY
PRESENTED IN THE
SERVICE REPORTING CODE OF
PRATICE FORMAT
BUDGET 2018/2019
Service Reporting Code of Practice Format
The Authority is required to produce the statutory year end accounts in accordance with a specified format. The format deals with the grouping of services and is specified within the ‘Service Reporting Code of Practice’.
The Authority also produces the tax leaflet in the same format. The attached schedules demonstrate the link between the budget as presented in the internal management accounts, where service areas are locally grouped into service themes, and the SeRCOP presentation.
BUDGET 2018/19 - SUBJECTIVE ANALYSIS
People People People Business Sub total Non Total Housing Total Children's Adult Social Other Places Improvement Portfolio Portfolio General Revenue Tax leaflet Care Areas Areas Fund Account Equivalent £000's £000's £000's £000's £000's £000's £000's £000's £000's £000's
Subjective Area Employees (excluding school employees) 15,136 11,921 2,361 22,710 14,490 66,618 2,847 69,465 69,465 Premises 712 357 781 4,004 3,047 8,901 0 8,901 5,481 14,382 Transport 1,964 256 7 1,563 53 3,843 3,843 3,843 Supplies and Services 7,369 1,084 1,020 5,046 3,466 17,985 59 18,044 18,044 Agency and Contracted / Third Party 8,829 41,139 7,868 8,672 3,338 69,846 523 70,369 4,609 74,978 Transfer Payments 31,201 3,369 198 4,107 40,788 79,663 13,155 92,818 92,818 Central Support Variable 209 3 14 58 133 417 0 417 417 Support Costs CYPSI 15 0 15 0 0 30 30 30 Support Costs Other 1,119 1,079 496 5,402 1,744 9,840 383 10,223 10,223 Support costs P&P 11 0 0 0 0 11 11 11 Support advisory teachers 0 0 0 0 0 0 0 0 Apportionment of SSMSS 0 0 0 0 0 0 0 0 Intra Departmental 0 0 0 1,781 0 1,781 1,781 1,781 Central Support Allocable 2,221 1,770 438 3,457 3,520 11,406 11,406 11,406 Central Support and intra departmental recharging 3,575 2,852 963 10,698 5,397 23,485 383 23,868 23,868 Depreciation and Impairment 2,527 577 104 8,500 574 12,282 15 12,297 4,704 17,001 RCCO & repayments capital reserve 0 0 0 124 0 124 124 3,332 3,456 Interest costs (on borrowing) 0 0 3,068 3,068
Gross expenditure prior to net down 71,313 61,555 13,302 65,424 71,153 282,747 16,982 299,729 21,194 344,791
Internal Recharges Net Down (826) (1,010) (790) (11,179) (17,484) (31,289) 0 (31,289) (31,289)
Gross Expenditure after Net down 70,487 60,545 12,512 54,245 53,669 251,458 16,982 268,440 21,194 289,634
Government Grants (4,307) (3,719) (7,794) (1,104) (42,060) (58,984) (6,011) (64,995) (64,995) Dedicated Schools Grant (34,699) 0 0 0 0 (34,699) 0 (34,699) (34,699) Income from Business Rates collection fund (27,332) (27,332) (27,332) Other Grants , reimbursements including recoupment (319) (5,856) 0 (3,261) (4,946) (14,382) 0 (14,382) (14,382) Fees and Charges (84) (8,960) (3,125) (14,982) (3,873) (31,024) (117) (31,141) (1,483) (32,624) Rents (67) (216) (5) (2,632) (3) (2,923) (2,395) (5,318) (19,711) (25,029) Insurance claim reimbursement 0 0 0 (10) 0 (10) 0 (10) (10) Recharges (826) (1,010) (790) (11,179) (17,419) (31,224) 0 (31,224) (31,224) Recharges childrens services direct account 0 0 0 0 (65) (65) 0 (65) (65) Interest (125) (125) (125) Collection Fund Surplus Distribution (Business Rates) 0 0 0 Collection Fund Surplus Distribution (Council Tax) (1,046) (1,046) (1,046)
Gross income prior to net down (40,302) (19,761) (11,714) (33,168) (68,366) (173,311) (37,026) (210,337) (21,194) (231,531)
Internal Recharges Net Down 826 1,010 790 11,179 17,484 31,289 0 31,289 31,289
Gross Income after Net down (39,476) (18,751) (10,924) (21,989) (50,882) (142,022) (37,026) (179,048) (21,194) (200,242)
Depreciation back out (12,297) (12,297) (12,297) Central RCCO, MRP and prudential borrowing 2,940 2,940 2,940
Capital Charges and financing entries (9,357) (9,357) (9,357)
(Use of) / contribution to Earmarked Reserve 0 0 0
Contributions to/(from) reserves and contingencies 0 0 0
Council Tax Requirement 31,011 41,794 1,588 32,256 2,787 109,436 (29,401) 80,035 0 80,035
AGENDA ITEM NO 6
BOROUGH OF POOLE
CABINET
6 February 2018
Budget 2018/19 and 2018 to 2021 Medium Term Financial Plan Update
PART OF THE PUBLISHED FORWARD PLAN – YES
STATUS – STRATEGIC POLICY
1 Purpose
1.1 The main purpose of this report is to;
1) advise Cabinet of the implications of the provisional Local Government Finance Settlement for 2018/19.
2) advise Cabinet of the work done in developing a sustainable budget and in the transformation programme which aims to deliver the savings and efficiencies needed by the Council over the three year period to 2021.
3) advise Cabinet of the progress made since December in developing the annual budget for 2018/19 and the key underlying assumptions and savings proposals being put forward as part of the balanced Budget proposal.
4) set out for Cabinet consideration and recommendation to Council the 2018/19 Budget proposal.
1.2 To support Members consideration the following documentation is enclosed;
Appendix 1 Timetable and Budget summaries including assumed savings
Appendix 2 Reserves Strategy 2018 to 2021
Appendix 3 Capital Programme 2018 to 2021
Appendix 4 Treasury Management Strategy
Appendix 5 Equalities Impact Assessment (EQIA)
Appendix 6 Comments on the December MTFP Update report from the Business Improvement Overview and Scrutiny Committee
Appendix 7 Chief Officers’ Pay Policy Statement
1
2 Decisions required
2.1 It is recommended that Cabinet:
• note the implications of the provisional Local Government Finance Settlement for 2018/19.
• note the work done in developing a sustainable budget which is not reliant on the use of reserve, and the transformation programme which aims to deliver the savings and efficiencies needed by the Council over the three year period to 2021.
• note the work undertaken in developing the annual budget for 2018/19 and the key underlying assumptions and savings proposals being put forward as part of the balanced Budget proposal.
• note that the Council has increased Council Tax only twice over the last seven years since 2010 and has frozen Council Tax on the other five occasions.
• note that even after the proposal set out in this report there will have been a 10% real terms reduction in Poole’s Council Tax over the period since 2010 (as measured against the Retail Price Index).
2.2 It is recommended that Cabinet recommend to Council:
• that they undertake a recorded vote in relation to the following items as required by the Local Authorities (Standing Orders) (England) (Amendments) Regulations 2014 which came into force on the 25 February 2014;
a) a total Council Tax Requirement of £80.035m, is set for 2018/19 based on the provisional settlement figures published by Government in December 2017. This is based upon;
i. an increase in Council Tax in 2018/19 by the 3% social care precept as well as a 2.99% core increase in the annual basic threshold requirement which means an overall increase of 5.99%;
ii. key assumptions and provisions made in the Budget as proposed, set out in section 9.3;
iii. the allocations to Theme areas further to the Budget as proposed and as set out in Appendix 1;
iv. the Capital Programme as set out in section 16 and Appendix 3, with specific reference to the matters set out in the Children’s Services Capital Programme as detailed in Appendix 3 (ii);
v. the use and level of all reserves to be held by the Council further to the advice of the Chief Finance Officer as set out in section 17 and Appendix 2 to this report;
vi. Treasury Management Strategy and Prudential Indicators as set out in section 18 and Appendix 4;
vii. The Chief Officers’ Pay Policy Statement, as prepared by the Joint Service Unit Head for Human Resources and Organisational Development, for consideration and approval by the Council in
2
accordance with the provisions of the Localism Act 2011and as set out in section 20 of the report and Appendix 7;
viii. that Member’s Allowances for 2018/19 will be held at their 2017/18 rates;
b) that the Chief Finance Officer provides Council with a schedule setting out the rate of Council Tax for each category of dwelling subject to the 5.99% increase in Council Tax considered by Cabinet for approval by full Council further to Members’ consideration of the decision required in respect of (a) above and after taking account of the precepts to be levied by the local Police and Fire Authorities once these have been determined prior to Council on the 20 February 2018.
c) delegates authority to the Chief Executive to enter into the agreements necessary to implement the shared service arrangements for the Financial Services property management and maintenance function as set out in the report.
d) acknowledge that the decisions set out in this report will have a significant impact on the financial sustainability of a new Bournemouth, Christchurch and Poole Unitary Authority should the Secretary of State confirm his “minded to” decision.
3 National Context
3.1 During the past seven years of austerity, protections applied to the National Health Service (NHS), schools, international development, defence equipment and more recently to defence and the police, have meant public spending reductions have and will continue to be felt disproportionately by Local Government. Consequently there has been no national protection in respect of the expenditure incurred by Councils in supporting some of the most vulnerable members of our society, be that Looked After Children (LAC) or homecare support to the elderly through Adult Social Care Budgets.
3.2 In November 2015 the Chancellor of the Exchequer published the 2015 Spending Review and 2015 Autumn Statement. In publishing these documents his stated intent was to set out a long term economic plan that fixed the public finances, returned the Country to an annual surplus and can run a healthy economy that starts to pay down the Country’s debt.
3.3 The spending review established that £18bn of national budgetary consolidation was required if the Government were to deliver against this intent with;
• £12bn to be delivered through further departmental spending reductions.
• £3bn to be raised through the introduction of an apprenticeship levy.
• £3bn to be delivered through reforms such as making tax digital and further measures to reduce tax avoidance.
In addition the Government highlighted that they remain committed to a welfare cap (as a portion of Government spending) with the stated intention for it to be met by 2019/20.
3
3.4 The impact of the spending review on Local Government was that the then Department of Communities and Local Government’s: Departmental Expenditure Limit (DEL) for Local Government was reduced from £11.5bn in 2015/16 to £5.4bn in 2019/20. This is a reduction of £6.1bn or 53%.
3.5 However Government will highlight that they are assuming that overall Local Government spending will be higher in cash terms in 2019/20 compared to 2015/16 as explained further in figure 1 below;
Figure 1: Local Government Funding amounts as per the 2015 Spending Review
3.6 This increase in cash spending between 2015/16 and 2019/20 is only possible from the Government’s assumption that Councils will generate the following sources of locally financed revenue;
a) annual year on year increases in Council Tax to reflect the normal annual threshold uplifts.
b) £3.5bn of extra support for adult social care by 2019/20 via an additional annual increase in Council Tax in relation to the social care precept.
c) A rebalancing of the system (initially intended from 2018/19 onwards) to support those authorities with social care responsibility (the redistribution of resources via a reduction to the New Homes Bonus & the creation of a New Better Care Fund).
d) Use of capital receipts as a means of financing revenue expenditure on reform projects.
3.7 This spending review firmly set the Government’s strategic approach to increase council tax as the mechanism for funding local services over the period to at least 2020.
4
3.8 The position was reaffirmed in the November 2016 Autumn Statement which stated that the government remains committed to returning the public finances to balance at the earliest possible date. This included continued support for fiscal discipline and a firm ongoing commitment to the 2015 Spending Review departmental spending plans. The statement also contained a Charter for Budget responsibility with three fiscal rules;
1) Annual public sector net borrowing, the structural deficit, should be below 2% of Gross Domestic Product (GDP) by 2020/21;
2) Public sector net debt as a share of GDP must be falling in 2020/21;
3) Welfare spending must be within a cap, set by the Government by 2021/22, as monitored by the Office for Budget Responsibility (OBR).
3.9 In February 2017 the Government, as part of the Local Government Finance Settlement for 2017/18, took the opportunity to implement a number of changes not covered by the core settlement that had a direct impact on the Council’s funding envelope. These included;
a) Social Care Precept: The original intent was to allow council's to apply a 2% precept in each of the three years over the period to 2019/20, which amounted to a total additional 6%. The 2017 settlement changed this profile with council's permitted to increase council tax by an additional 3% in both 2017/18 and 2018/19. Poole took advantage of this approach in 2017/18 and the planning assumption is that it will do likewise in 2018/19. By implications this meant that in 2019/20 we would not be able to apply any social care precept.
b) New Homes Bonus (NHB): In a process designed to deliver a £241m saving nationally from 2017/18, which was earlier than previously assumed, the Government reduced the number of years the bonus scheme is based on to five (from six) and four from 2018/19 onwards. The scheme was also changed so that it only rewards the growth in homes above a 0.4% baseline per annum.
c) Adult Social Care Support Grant: A new one-off grant for 2017/18 only which diverts the £241m NHB saving to social care authorities using the adult social care relative needs formula.
3.10 In making these changes the Government considered they were taking steps to help protect care services to elderly and vulnerable people. This was not the case in Poole. In 2017/18 the extra resources that were generated by the extra social care precept (+£0.7m) and the actual extra one-off Adult Social Care Support Grant (+£0.6m) were almost completely cancelled out by the reduction in the New Homes Bonus (-£1.0m). This problem was not specific to Poole, up to one-third of top tier authorities (those with Adult Social Care responsibility) found themselves in the position of the reduction in New Homes Bonus being greater than the resources received via the Adult Social Care grant.
4. National Context - Post Council setting the 2017/18 Budget (February 2017)
4.1 On the 8 March 2017, the chancellor, Philip Hammond, introduced the first of two budgets during 2017, this being the last spring budget. In his introduction he emphasised the need for continual economic stability as the UK begins the formal
5
process of exiting the European Union. He also highlighted that the country still is spending more than its income, that debt remains too high, productivity too low and that too many families continue to feel the squeeze.
4.2 As part of this budget the Chancellor took the opportunity to set out that although everyone should enjoy security and dignity in old age, the social care system was caring for over a million people and consequential the system was under enormous pressure. In response he allocated £2bn in additional funding to be injected into social care over the next three years.
4.3 What was not announced at the time, but slowly emerged since, is that there will be a tightly controlled stewardship and monitoring framework around not just these New Better Care Fund resources but also the original Improved Better Care Fund resources, announced in 2015, alongside the four year financial settlement. These conditions and the hypothecation of taxation to a single local service restrict how the Council can deploy the resources at its disposal.
4.4 Following the June 2017 General Election the Conservative Party, with the backing of the Democratic Unionist Party, formed an administration to govern the Country. As part of their manifesto the Conservatives had highlighted that there is still work to do on deficit reduction and they aimed to restore the public finances over the course of the new parliament. They also pledged to continue with the fiscal rules announced by the chancellor in autumn 2016 (see section 3.8 above) which provides a guide to balancing the budget by the middle of the next decade.
4.5 The subsequent Queen’s speech to Parliament on 21 June 2017 highlighted three specific matters in regard to Local Government Finance; a) that plans to introduce a new system of local Government finance underpinned by 100% business rates retention, were suspended indefinitely. This will create greater uncertainty and ambiguity in the financial planning for Council funding post 2019/20;
b) that the Government will bring forward proposals for consultation that will set out options to improve the social care system and put it on a more sustainable financial footing. In all probability this means that no legislation on this matter will be laid for at least two years;
c) that plans to increase the National Living Wage were announced. This will create a further pressure on the Council particularly due to its impact on the care sector.
5 National Context - Impact of the provisional 2018/19 Local Government Finance Settlement
5.1 On the 19 December 2017, only a few working days before Christmas, the Secretary of State for the then Department for Communities and Local Government (DCLG), Sajid Javid, issued the provisional Local Government Finance Settlement for 2018/19. The Council, in line with 97% of other local authorities, had previously locked into a four year financial settlement from 2016/17 to 2019/20 in return for publishing an Efficiency Plan.
6
5.2 The settlement set out no further additional Government funding to support Adult Social Care, no additional funding to support Children's Social Care or Children's Services, and no further funding to tackle homelessness issues. There was also no announcement of any Government support for the 2% national Local Government pay award or the impact of the Living Wage.
5.3 Government did though emphasise that Councils need greater freedom to tackle the challenges in their area and greater control of the money they raise. In support of this statement they set out their intention to move to a 75% retained business rates model from 2020/21. As set out in section 4.5 proposals to move to a 100% retained business rates model were only dropped in the June 2017 Queen’s Speech. The key points associated with the proposed 75% approach include;
• It will be fiscally neutral at a national level;
• It will continue to be underpinned by the principle of redistribution of resources based on need. A consultation of relative needs and resources (Fair Funding Review – FFR) was launched alongside the provisional settlement;
• The Government will incorporate additional funding responsibilities including the Public Health Grant and where relevant any residual Revenue Support Grant (RSG);
• It will be subject to suitable transitional measures.
5.4 Alongside the announcement in respect of business rates the Government recognised the strength of feeling around “negative RSG”, which is where the Government consider a local authority is over-funded, and make deduction from a Council’s share of business rates. The newly titled MHCLG will now be looking at fair and affordable options for dealing with negative RSG from 2019/20. This approach tends to impact on high taxbase authorities with relatively low assessed need such as Dorset County Council (£10.1m) and Poole (£1.4m). If the Government were to abolish “negative RSG” then 158 local authorities would gain from the arrangement and it would cost £153m nationally.
5.5 In addition the Secretary of State highlighted that he had heard concerns expressed by Councils in their responses to a consultation on the New Homes Bonus (NHB) and had been persuaded by the importance of continuity and certainty. He therefore does not propose to implement changes to link the NHB to the number of successful planning appeals or to raise the baseline (currently 0.4%) below which the bonus is not paid. The proposal to reduce the length of the bonus payments from five years to four will though proceed from April 2018 as will the ability for local authorities to increase planning fees by 20% where they commit to investing the additional income in their planning service.
5.6 Government also recognised the impact that inflation was having on service delivery by giving councils the ability to increase their “core” Council Tax requirement in 2018/19 by an additional 1% to bring it in line with current levels of inflation (from 1.99% to 2.99%). The arrangements for the Adult Social Care precept remain unchanged. This approach continues to reflect the Government’s strategic approach adopted in the 2015 Spending Review of higher levels of local taxation as the mechanism for funding local services.
7
5.7 The provisional settlement also announced a continuation of the freedom for local authorities to use capital receipts from the sale of their own assets to help fund the costs of transformation.
6 Organisational Context
6.1 The medium term financial planning process is designed to provide sound financial management and control arrangements which are integral to the good governance of the Council. Such arrangements help in supporting service delivery, accountable decision making and safeguarding stewardship whilst also optimising the use of available resources.
6.2 This report should be seen in the context of a rolling, evolving process and should be read in conjunction with the July, October and December Medium Term Financial Plan (MTFP) update reports to Cabinet.
6.3 The budget continues to be developed within the context of the Council's Corporate Strategy which provides a clear long term vision for Poole and our ambition not only to be a great place to live, learn, work, play and do business, but also a place where the most vulnerable people in our community are looked after.
6.4 This strategy also recognises the Governments aim to put the public finances on a sustainable footing. As part of this approach Poole have been presented with an incredible financial challenge. Not only will our core funding for our local services be reduced to nil by April 2019 but Poole have been explicitly asked (via negative Revenue Support Grant) to effectively subsidise other Local Authorities from 2019/20 onwards.
6.5 This means that on top of a £30m per annum cut over the last seven years to the Council's core funding there will now be further reductions which will grow to an additional £6m per annum by 2020. These reductions will mean that the Council will not only have lost all its annual cash grant from the Government but in addition will be required to pay a further £1.4m contribution from the 28p in the £ of business rates that we are allowed to retain.
6.6 One way of trying to understand the magnitude of the financial challenge is to put these further reductions of £6m per annum in the context of the amount the Council is spending on providing local services. For the purposes of providing an example only, Council spending on some key services is as follows;
• £2.9m Maintaining Parks
• £1.8m Children’s Centres
• £1.6m Libraries
• £0.5m Museums
• £0.4m Street lights
• £0.1m Leisure Centres
• £7.3m Total from these services
8
6.7 Figure 2 below details the total £36m per annum reduction to Poole's core funding compared to 2010/11 as part of the Government's austerity programme. This is equivalent to £524 per annum less for every household within the borough.
Figure 2: Cumulative per annum reductions in Poole’s core Government funding compared to 2010/11 (£000’s)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 £0
-£5,095 -£5,000 -£7,644 -£9,885 -£10,000
-£14,098 -£15,000
-£19,965 -£20,000
-£24,728 -£25,000
-£29,848 -£30,000 -£33,385
-£35,000 -£35,999
-£40,000
6.8 As a result, by 2020 the Council will be completely reliant on the money (net of fees and charges) it raises locally to pay for local services, be that Council Tax or the amount of local business rates it is allowed to retain. Figure 3 below highlights the anticipated changing pattern of Council funding.
Figure 3: Changing pattern of Council funding
6.9 The Council’s finances will therefore remain under immense pressure but not only due to the ongoing reductions in Government funding. Cost increases through such factors as the Living Wage as well as the relentless increase in demand for Council services, particularly those to vulnerable adults and children, will also play a
9
significant role. The Council continues to prioritise these services as it has a legal duty to safeguard both vulnerable adults and children. Figure 4 below highlights the combined impact of cost pressures with the complete withdrawal of Government core funding.
Figure 4: Impact of cost pressures and reductions in Government funding
6.10 This loss of funding coupled with increasing demand for services means the Council must make further savings and efficiencies or raise additional income of approximately £20.5m over the next 3 years. This will make it harder to balance the Council’s budget, deliver universal services (such as refuse and recycling collections, libraries, parks and open spaces) and meet our core duties such as protecting vulnerable children and older people.
6.11 The action that will be necessary to address the complete removal of Government funding, when coupled with the increasing demand and costs associated with Adults and Children's Services will continue to see a reprofile of Council spend as set out in Figure 5 below.
Figure 5: Changing pattern of Council spend
Year 2007/08 2015/16 2020/21
53% 44.8m 67% 77.3m 73% 87m Adult and Children
Year 2007/08 2015/16 2020/21
47% 39.7m 33% 37.6m 27% 32.1m All Other services
10
7 Financial and Organisational Strategy
7.1 The budget continues to be developed within the context of the Council's Corporate Strategy which provides a clear long term vision for Poole and our ambition not only to be a great place to live, learn, work, play and do business, but also a place where the most vulnerable people in our community are looked after.
7.2 Our response to the challenge we have been set, as a Council, and as summarised by the Poole 2020 strategy, is an approach which focuses on acting responsibly and preparing for the future by changing the way we work. Our emphasis is that we must live within our means and to achieve this we will become more entrepreneurial using best business practice and become more efficient in the way decisions are made and services delivered. To achieve this we will continue to look at proposals such as;
• Further cost cutting and redesigning of services;
• Working more closely with partners to deliver services together;
• Generating new income streams to support local services;
• Reviewing fees and charges;
• Raising Council Tax including the implementation of the Governments social care precept (it should be noted that Poole has had the lowest Council Tax in Dorset over the last 17 years).
7.3 It is though absolutely clear that to continue to do the best for Poole we have to make difficult decisions. Every effort will be made to deliver our priorities and protect local services but the scale of savings required will inevitably mean;
• Changes in the way services are delivered (lower cost ways of delivering services);
• Some service reductions.
7.4 To support this strategy the Council has developed a twofold approach to addressing the financial challenge;
1) Medium to long term: Further developing options for the future of Local Government in Dorset. By working with other councils in Dorset to explore such options for the area, the Council is committed to working in the best long-term interests of residents and businesses. Associated with this is a review of the financial and operating policies of the various Dorset Authorities to better position the Council in moving to a new configuration and to provide consistency in revenue streams.
2) Short term – Balancing the next few years: In order to ensure Members meet their statutory responsibilities to set a balanced budget each year, the Council is further developing the following workstreams;
• Delivering a range of proposals which will generate positive returns to the Council;
• Investing in key Council priorities;
• Encouraging and incentivising people into work;
11
• Continuing to develop partnerships with other Public Sector Bodies;
• Redesigning services and driving out efficiencies;
• Exploring a Digital Council approach;
• Considering commercialisation of its services where appropriate;
• Considering levels of fees and charges;
• Reviewing Council pay and cost of employment policies.
7.5 At this stage no adjustment to the strategy has been made to reflect the decision made by the Secretary of State for Communities and Local Government, The Rt Hon Sajid Javid MP, that he was minded to support the Future Dorset proposal for two new unitary councils in Dorset. Regardless of the outcome of the final decision due early in 2018 Members will be required to set a balanced 2018/19 budget which reflects their responsibility to both the current and future taxpayers of Poole.
7.6 It is clear though that we are now at the point that further difficult choices will be needed. In acting responsibly we will continue to:
o Give priority to protecting the most vulnerable in our community;
o Work with the NHS on integration of health and social care services;
o Work to prevent the need for children to be in care;
o Plan to raise Council Tax by 5.99% and spend the 3% Adult Social Care precept on supporting such vulnerable services;
o Be more commercial as a way of generating income to pay for services;
o Reduce management and overheads costs by joining our support services with Bournemouth;
o Implement voluntary redundancy and staff restructuring processes to support the delivery of the 2018/19 budget.
8 2017/18 In-year financial position
8.1 In-year budget monitoring reports throughout 2017/18 have highlighted the forecast of a balanced financial outturn. This positive position is reiterated in a report based on activity between April 2017 and the 31 December 2017 which appears as a separate item on the agenda for the February 2018 Cabinet meeting.
8.2 It should though be recognised that there remains a quarter of the financial year outstanding and the position could change quite easily. The Council is particularly sensitive to small variances in demand-led budgets, particularly within the People Theme, and there is the added complication of universal credit that has just been implemented within the borough.
8.3 The December monitoring statement also highlights the further work undertaken by the shared Bournemouth and Poole Financial Services Team to ensure
12
Bournemouth and Poole have more consistent financial policies. As a consequence of this work-stream a one-off adjustment of £0.7m to Poole Minimum Revenue Provision (MRP), or put another way the amount the Council is required to set aside for debt repayment, has been identified. The monitoring report requests that these resources are used as a contribution towards the Childrens Services Capital Programme including Hillbourne School.
9 Budget 2018/19 and Medium Term Financial Plan 2018 to 2021
9.1 In developing the 2018/19 budget the Council has been clear in its ambition to deliver a more sustainable budget and is clear that this means putting forward a budget which is less reliant on reserves than the one approved for either of the past two financial years. The 2016/17 budget used £4.5m of reserves to meet the gap between the Council's planned expenditure and the permanent sources of income it had available. The 2017/18 budget took a step in the right direction of reducing the use of such reserves (Financial Planning Reserve) to £0.8m. The proposed 2018/19 completes the approach by proposing no such use of reserves and achieving the ambition of eliminating this annual deficit. The Council previously recognised that it needed to use such reserves to allow the time for the necessary transformation programmes to be developed, implemented and delivered.
9.2 The 2018/19 Budget for the Council is summarised in figure 6 below and therefore;
a) manages a further £4m per annum reduction in annual Government funding to the Council.
b) manages a now total cut of £33m per annum in reduced annual Government Funding to the Council since 2010/11.
c) delivers a sustainable budget which is one that is balanced without being reliant on the use of reserves.
d) is based on a Council Tax proposal which is likely to mean that Poole continues to have the lowest Council Tax in Dorset. A position it has now held for 17 years in a row.
e) is based on the third increase in Council Tax in eight years, Poole Council Tax having been frozen over the five years between 2011/12 to 2015/16.
f) is based on a proposal which means there will have been a 10% real term reduction in Poole’s Council Tax since 2010, as measured by the Retail Price Index.
g) continues to prioritise investment in services to the most vulnerable members of our community with an extra £3m going into services for Adults and Children social care despite the £4m per annum reduction in core Government funding between 2017/18 and 2018/19.
h) continues to protect frontline services insofar as is possible.
13
Figure 6: Budget 2018/19 and MTFP 2018 to 2021
3 year Pressures 18/19 19/20 20/21 Total £m £m £m £m Core Government Funding reductions 3.7 2.6 6.3 Adult Social Care – Growth 2.8 1.9 1.9 6.6 Pay award 1.2 1.2 1.4 3.8 Children’s Social Care – Growth 0.3 0.5 0.8 Pension Fund - revaluation impact 0.2 0.1 0.3 0.6 Inflation, Other Growth Pressures, adjustments 0.2 0.2 0.1 0.5 Waste Disposal Costs 0.2 0.2 0.1 0.5 Capital Charges and Investment income 0.1 0.1 0.2 0.5 Transport Inflationary & Other Cost Pressures 0.1 0.2 0.1 0.4 Children’s Services – Growth 0.4 (0.2) 0.2 Homelessness / Homelessness Reduction Act 0.2 0.2 Housing benefit grant 0.1 0.1 Total Additional Annual Pressures 9.5 6.4 4.6 20.5 Cumulative Pressures 9.5 15.8 20.5
3 year Additional Resources 18/19 19/20 20/21 Total £m £m £m £m Council Tax - Increases (4.6) (1.6) (1.6) (7.8) Council Tax – Tax base Increases (1.1) (0.7) (0.8) (2.6) Council Tax – Empty Homes Premium (0.1) (0.1) Council Tax - Surplus Distribution 1.0 1.0 Business Rates – Surplus Distribution 0.7 0.7 Adult Social Care – additional one off grant 0.6 0.6 Better Care Fund resources (0.7) (0.5) 0.9 (0.3) New Homes Bonus (scheme changes & new properties) 0.3 0.3 0.6 Financial Planning Reserve adjustment 0.8 0.8 Savings & efficiencies General savings & efficiency proposals (5.5) (1.1) (0.2) (6.8) Total annual extra resource & savings (9.5) (2.7) (1.7) (13.9) Cumulative extra resources & savings (9.5) (12.2) (13.9)
Annual – Net Funding Gap 0.0 3.7 2.9 6.6 Cumulative MTFP – Net Funding Gap 0.0 3.7 6.6
14
9.3 The MTFP as presented is based on the following key high level assumptions;
9.3.1 Government funding The MTFP is currently drafted in line with the 4 year financial settlement as set out in the Council’s 2016, 2017 and 2018 Local Government Finance Settlements. This highlights that the Council will lose a further £6.3m per annum in core Government funding over the period 2018 to 2020.
The production of an Efficiency Plan in July 2016 as updated in July 2017 enabled the Council to lock down the Revenue Support Grant element of the financial settlement so that it is the minimum reductions we will receive.
2019/20 is the end of the current four year local government finance settlement.
The provisional Local Government Finance Settlement for 2018/19 set out proposals to move to a 75% Business Rates Retention model as the means of local authority funding from April 2020 onwards. This will be underpinned by an going principle of relative need which is why the Government announced a Fair Funding Review (FFR) alongside the provisional settlement.
At its crudest this FFR will explore the relationship between three core issues, the volume of services needed, the cost of those services and the ability to raise income locally. The assumption had previously always been that core government grant funding was designed to fill the gap between these three issues. The risk is that Government will further design processes which will see even more of the Council’s retained business rates redistributed nationally.
9.3.2 Council Tax The planning assumption is that the Council will increase Council Tax by the 3% social care precept as well as a 2.99% core increase in the annual basic threshold requirement. As the Council will be unable to apply a social care precept in 2019/20, having already applied the three year maximum increase of 6% in the first two years, then the annual increase reduces to just the basic annual threshold amount which it has assumed to be 1.99% from 2019/20 onwards. The increase will be the third increase in eight years, Poole Council Tax having been frozen over the five years between 2011/12 to 2015/16.
Overall this will mean there will have been a 10% real term reduction in Poole’s Council Tax since 2010, as measured by the November Retail Price Index.
For 2020/21 onwards the Council is assuming a social care precept will not be levied in line with advice received from the Department of Communities and Local Government in October 2017.
15
Figure 7: Dorset Councils Council Tax levels (excluding not just the Police and Fire Services levy but also any Parish precepts)
9.3.3 Business Rates The assumption is that the Council will continue to achieve the amounts that Government have included as part of the Council's baseline finance settlements.
This position will be kept under review in light of the announcement in the provisional 2018/19 Local Government Finance Settlement to move to a 75% Retained Business Rates model.
9.3.4 New Homes Bonus (NHB) NHB is an unringfenced grant paid by Central Government to Councils for increasing the number of homes and the number of long term empty properties bought back into use in their area. The bonus was previously paid for six years at a rate equivalent to the extra Council Tax revenue a property will raise. In line with the 2017/18 local government finance settlement the bonus has been reduced to five years from 2017/18 and four years from 2018/19. A restriction is now applied which means the Council will not receive any bonus on the first 0.4% of any housing growth.
The 2018/19 allocation is £1.7m in which is a decrease of £379k when compared to 2017/18 allocation. The budget for 2019/20 assumes that the NHB will be reduced by a further £239k.
Current indications from Government suggest that the NHB may be completely removed from 2021/22 onwards.
9.3.5 Adult Social Care investment An additional £6.6m investment in Adult Social Care will be required over the next 3 years being a combination of;
a) demographic growth in demand for care packages including those to support the urgent and emergency care system as well as preventing delayed discharges from hospital.
b) assumptions around specific inflationary pressures within the care market including the impact of the new National Living Wage.
16
9.3.6 Pay award In September 2017 the Government announced its intention to move away from the 1% per annum public sector pay award policy but with a clear indication that any actual increases above this level are unlikely to be funded nationally. Negotiations via the National Employers for Local Government Services have proposed to the unions a 2% flat rate increase in both 2018/19 and 2019/20. However increases in the lower spinal column points to reflect the National Living Wage increase the local government pay bill by 2.7% in 2018/19 and 2.8% in 2019/20.
Within the proposed budget provision has been made for the 2% baseline increase, with further provision in certain services where they have a significant staff base on the lower spinal column points. Services will continue to be expected to manage the impact of any incremental drift in their pay base.
9.3.7 Inflationary costs Inflation is only provided for in service budgets where it can be demonstrated that it will be needed due to either market or contract conditions. Inflation as at December 2017 was 4.1% as measured by the Retail Price Index (RPI).
9.3.8 Assumed savings and efficiencies
In July 2016 Council endorsed a 3 year efficiency plan which was submitted to Government as part of the process to protect the Council from any additional cuts over and above those already announced for the period to 2020. This document was refreshed in July 2017 and included details of how the Council would be transformed over the next 3 years to deliver the reductions in expenditure or additional income required to deliver a more sustainable Council moving forward.
Work on the delivery of the underpinning savings and efficiency stratgey continues. Appendix 1b to this report provides a full schedule of the additional resources, savings and efficiencies currently being assumed over the next 3 years.
8.4 The key changes since the December 2017 MTFP Update report are highlighted in figure 8 below.
17
Figure 8: Key MTFP changes since December.
3 year Pressures 18/19 19/20 20/21 Total £m £m £m £m December 2017 – Cabinet MTFP Funding Gap 1.0 4.4 2.5 7.9 Impact of the Local Government Finance Settlement Council Tax Flexibility (0.7) (0.7) New Homes Bonus (0.2) 0.2 0.0 Revisions to Annual Pressures Children’s Services – Ofsted investment, LAC costs 0.4 0.4 Adult Social Care Services – Demographics, cost base 0.7 (0.4) 0.3 Pay Award – 2% baseline but higher on lower grades 0.1 0.1 0.1 0.3 Roundings (0.1) 0.3 0.2 Revisions to Savings and Efficiencies Services savings & efficiencies (1.0) (0.4) (1.4) Council Tax – Taxbase (0.3) (0.3) 100% Council Tax Premium on Empty Homes (0.1) (0.1) Yet to be identified – Transformation Savings 0.0 3.7 2.9 6.6
Yet to be identified – Cumulative Savings 0.0 3.7 6.6
10 Dedicated Schools Grant (DSG)
10.1 The gross DSG of £97 million provides funding for mainstream schools for pre 16 pupils, private, voluntary and independent nursery providers, a small range of central school services (for example, school admissions) and pupils with high needs. High needs pupils include those with Special Educational Needs and Disabilities (SEND) up to age 25 and those educated out of school, for example due to permanent exclusion. Academies are funded from the gross DSG allocation but amounts are then recouped by the DfE to enable the budget share to be paid by the Education & Skills Funding Agency (ESFA) directly.
10.2 The DSG is allocated to the Council through four funding blocks in 2018/19, each with its own national formula methodology, Early Years, Mainstream Schools, Central School Services and High Needs. Distribution to Councils linked to historic allocations has now largely ended, with some funding protection mechanisms in place to reflect that expenditure patterns once well-established cannot be changed quickly.
10.3 Schools Forum is a statutory body of the Council and must be consulted on all DSG budget allocations. It also has a range of decision-making powers regarding the budgets held centrally (excluding for high needs) and any transfer of funding from the Mainstream Schools Block.
10.4 The Department for Education (DfE) introduced a national formula for Early Years in 2017/18 with the same funding levels to the Council applicable for the three years to
18
2019/20. The local formula to fund providers over the same period was agreed by Council last year. Central retentions and contingencies allowed for early years provision in 2018/19 were proposed at the same level as last year and agreed by Schools Forum in January 2018.
10.5 The National Fair Funding (NFF) formula for the Mainstream Schools Block provided a 3% increase for 2018/19 with a further 1.3% for 2019/20. The national formula for the Central School Services Block provides sufficient funding for existing budgets. The national formula for the High Needs block provides funding protection for Poole’s historic level of expenditure with a small increase to reflect demographic growth. A consultation was undertaken with all schools in November regarding the budget allocations for these three funding blocks for 2018/19. Schools Forum provided the required approvals for central budgets in December 2017 and made recommendations to the Council regarding the local Mainstream Schools funding formula. This formula was approved by Council in December.
10.6 The DSG Regulations allow Schools Forum to approve a transfer of Mainstream School funding of up to 0.5% in 2018/19. A higher level requires the approval of the DfE. A transfer to high needs of 0.9% (£678k) was approved by Schools Forum in December 2017. This was to support unavoidable budget pressures and retain existing central services supporting pupils with high needs in mainstream schools. This level of transfer is still awaiting approval from the DfE.
10.7 The DSG is forecast to be in a balanced position at 31 March 2018 after the application of the remaining DSG reserves. Increased costs during 2017/18 are largely due to the rising numbers of children and young people being supported with Education, Health and Care Plans.
11 Maintained Schools
11.1 Funding to continue statutory services for maintained schools is to be provided from central retention of maintained school budget shares through agreement of maintained schools representatives at Schools Forum. An amount per pupil to be retained was unable to be agreed at the meeting on 10 January 2018. The DfE is required to arbitrate in these circumstances and this process has not yet concluded. The retention is applicable only for the period while a school is maintained. A DfE grant of £50k per academic year is to be paid to Poole for statutory school improvement support as long as there is at least one maintained school at September. The MTFP includes an estimate of the phasing of schools converting to academy status and related income streams.
12 Academies
12.1 Academies are independent organisations, their funding and expenditure is not contained within the Council’s budget. The national policy drive to convert schools is continuing with only four schools in Poole out of 41 being maintained at 1 April 2018.
19
13 Education & Skills Funding Agency (ESFA)
13.1 Funding for mainstream post 16 pupils is provided by the ESFA and is passported directly to schools. This budget remains estimated as the ESFA will not provide the detail of allocations for maintained schools until the end of March.
14 Schools Pupil Premium
14.1 The schools pupil premium is provided by the DfE and is passported to schools. It is allocated according to the number of pupils eligible for free school meals (FSM) from low income criteria, Looked After Children (LAC) or adopted, and of forces personnel. The funding values are at the same levels as in 2017/18 except for LAC and adopted which has been increased by £400. This increase reflects that the NFF for mainstream schools no longer includes funding for this pupil characteristic with the 2017/18 average from local formulae allocated instead to the Pupil Premium. Poole’s local mainstream formula has maintained total LAC funding broadly equivalent to 2017/18 levels between the two funding streams.
15 Shared Services with Bournemouth
15.1 In June 2016, both Councils agreed a policy of creating shared corporate support services and joining up other services where opportunities arose and where it made sense to do so.
15.2 Following the decision in 2016 shared officer posts and services have been delivered including the shared arrangements for IT, HR, Finance, and Legal and Democratic Services which are progressing with new structures to enable savings to be realised from April 2018.
15.3 As part of this, authority is now sought to enable the finalisation of the Financial Services Property Management and Maintenance Team. This agreement will specify that the Bournemouth Borough Council will host this team and deliver the associated functions. This is on the basis that Bournemouth Housing Services have significant organisational capacity and expertise in this area.
16 Capital Strategy Update
16.1 Over the MTFP time period, the Council plans to invest £102.5m in local capital projects across Poole. £42.9m of this is to better meet local housing needs through the Housing Revenue Account, with a further £59.6m investment on strategic Council priorities through the General Fund. Examples of key projects the Council aims to deliver through this investment include:
• A new 80 bed residential care home for Poole;
• New build projects to ensure sufficiency of school pupil places;
• Development of Poole’s Townside Access (in partnership with the Dorset Local Enterprise);
• Development of Poole’s seafront and investment in local coastal protection schemes;
20
• Investing in local parks (in partnership with the Heritage Lottery Fund);
• Investment in the Council’s frontline services fleet operations;
• Improving and increasing local housing provision (through the Housing Revenue Account (HRA)).
16.2 Additionally, outside of its budgeted capital programme, the Council continues to encourage, support and enable strategically important private or public investments that benefit Poole – including investments by the local universities, by Bournemouth and Poole College, by Academies or by local employers.
16.3 The 2018/19 Council capital budget is £49.7m. This is 48% of its current 3 year MTFP capital programme of £102.5m. Figure 9 shows how investment is planned across the HRA and the General Fund.
Figure 9: Council 2018/19 Capital Programme - £49.7m
HRA £14.0m
General Fund £35.8m
16.4 Budgeted 2018/19 spend is to be financed from a combination of Government Grants, developer contributions, revenue contributions and borrowing, as shown in Figure 10. The Council expects to borrow externally this year in order to deliver part of the General Fund’s £35.8m budgeted 2018/19 capital programme. The Council’s MTFP includes a prudent estimate of the cost of this borrowing. There are a number of ways in which the borrowing need could be met, as referenced in the Council’s Annual Treasury Management Strategy 2018/19. Officers will continue to work with the Council’s independent treasury advisors to determine the most appropriate financing model.
21
Figure 10: Capital Programme Financing 2018/19
Amount £m General Fund Government Grants 19.3 Capital Fund and Revenue Contributions 1.8 Prudential Borrowing 11.1
Previously Approved Borrowing (Government supported) 2.3 Third Party Contributions (developer/schools) 1.3 Sub total 35.8 Housing Revenue Account (HRA) Major Repairs Reserve 4.3 Contributions and Capital Receipts 9.7 Sub total 14.0 Total Council Investment 2018/19 49.7
16.5 The Council continues to look at options afforded by asset management, prudential borrowing and the generation of capital receipts to ensure additional investment needs in other assets and key infrastructure can be addressed. Depending on availability of resources, the Council will also invest in Capital Schemes with a proven record of generating ongoing annual revenue contributions to its MTFP.
16.6 Figure 11 summarises the Council’s planned spend 2018/19 to 2020/21 by Theme. It reflects changes in the pattern of Council spend (for example in response to number of School Academy conversions). It also reflects the scale of external grant funded investment in the Place Theme over the MTFP, which includes significant investment from the Dorset Local Enterprise Partnership, Heritage Lottery Fund and Environment Agency.
22
Figure 11: Poole’s £102.5m Capital Programme Strategy 2018/19 to 2020/21
18,000
17,000
16,000
15,000
14,000
13,000
12,000
11,000
10,000 2018C19
9,000 2019C20 ed Spend £000
P 8,000 2020C21 7,000 Budge 6,000
5,000
4,000
3,000
2,000
1,000
0 People - Children People - Adult GF Housing Place Business HRA Housing Social Care Improvement
16.7 Core Principles - In determining its capital strategy the following principles continue to be applied;
a) Use of additional borrowing to deliver schemes funded by previously issued Government supported borrowing permissions;
b) Use of prudential borrowing when supported by a business case, and determined in conjunction with the setting of the Council’s prudential indicators approved by the Council in accordance with the prudential code of practice;
c) The capital programme is not supported by a General Fund base budget revenue contribution to capital outlay (RCCO). This method of supporting the capital programme was generally removed in 2013/14 as a direct response to the Government’s austerity programme and the Council ambition to offer as much protection as possible to frontline services. Smaller service unit based specific contributions from revenue will, however, be made where possible;
d) No scheme that relies on either specific Government grant funding or specific capital receipts can commence until such time as the funding has been confirmed, unless appropriate approvals have been obtained;
e) Continued prioritisation of the programme to generate additional affordable housing by earmarking identified surplus land or properties, specific sites or properties purchased in support of this objective, and by utilising infill opportunities within the Council’s Housing Revenue Account (Council Housing Account). Consideration continues to be given to the extent to which further Council land or buildings or further land purchase schemes can be used to generate further activity;
23
f) Any capital resources that do become available will be prioritised towards;
• the Council’s commitments under its flexible use of capital receipts strategy. In February 2017 the Council approved the use of the first £300,000 of any capital receipts each year to fund redundancy costs associated with the transformation strategy;
• schemes which require a local contribution to lever in capital grants to the Borough;
• schemes which enable the Council to deliver the savings assumed within the MTFP;
• schemes which enable the Council to exploit its assets;
• schemes which protect key infrastructure.
g) To support any future ambitions for key infrastructure developments and to mitigate the underlying risks within its capital programme, the Council will consider new financial approaches which will undoubtedly require an acceptance of higher than standard levels of risk. Such risk will be carefully considered especially bearing in mind the scale of the Council’s budget, the size of its revenue MTFP funding gap and the increasing use of prudential borrowing as a source of funding.
16.8 Capital Contingency In recognition of the various capital risks the council is exposed to, it maintains a capital contingency - i.e. a finite, unallocated capital resource that is available to fund future capital schemes.
Risks the contingency is intended to cover include;
a) The need to provide resources to fund any unforeseen demands including those of an urgent or unavoidable nature;
b) Providing a potential source of funding for the Council’s local share of Government supported schemes;
c) Safeguarding against the risk associated with the final cost that will need to be borne to deliver the numerous schemes included in the approved capital programme with each individual scheme at different stages in their delivery;
d) Providing a means of potential funding for any schemes which the Council would want to undertake to support its key ambitions;
e) Using the flexibility provided by a capital contingency to enable enterprising ways of mitigating established liabilities. Examples being the Suitable Alternative Natural Greenspace (SANG) £1.2m, pedestrian/cycle bridge over the Port of Poole £0.7m, or more notably the £9.96m forward funding from the Homes and Communities Agency which enabled the construction of the Twin Sails Bridge. As at the 31 December 2017, £1.2m of the forward funding for the Twin Sails Bridge remains to be funded.
16.9 Allocations from the Capital Contingency are made on the basis of approved business cases, which demonstrate a clear need for use of contingency funds.
24
Previously allocated contingency that is no longer required (for example because the related scheme completes under budget) are returned to the Capital Contingency.
16.10 Based on this background the capital contingency has evolved since February 2017 as follows;
Figure 12: Latest Capital Contingency
Amount £000s February 2017 Based Position (2,900)
Revenue Contributions - Place Theme (transportation, waste, fleet) (173) - ICT Revenue Contribution 2018 to 2021 495
Return of previously committed funds - Children’s Services Case Management System (108) (Budget monitoring report – February 18 Cabinet) - PV Solar Panel allocation (Budget monitoring report – September Cabinet) (264) - Dolphin MSCP savings (80)
Additional Allocations - Upton Country Park Heritage Lottery Bid 170 (local contribution – July Council, dependant on HLF grant bid outcome (mid-Jan 2018)) - Dolphin Swimming Pool (Portfolio Holder Decision January 2018) 150
Resources Review - Review of capital fund / programme (470)
Capital Receipts - Forecast to 2020 (including 2016/17 receipts) (690) - Flexible use of capital receipts strategy (£600k in 2017/18, £70k in 2018/19) 670
Total Capital Contingency – February 2018 (3,200)
16.11 Demands for the residual capital contingency resources will continue over the MTFP. There is the potential for further allocations from the capital contingency especially in respect of key infrastructure assets, funding invest to save proposals which support the MTFP, local contributions to lever in additional grant funding, and safeguarding the Council against risks associated with a £59.6m General Fund capital programme.
16.12 A number of new capital schemes are already being developed for Member approval. It is likely that these schemes will seek some level of funding from the Council’s residual, unallocated, £3.2m capital contingency balance. Examples include the Town Centre North regeneration scheme and the Children’s Services capital programme.
25
16.13 That said, further contributions to the Capital Contingency may arise from the ongoing review of the Capital Programme and the return of capital contingency funds previously committed.
16.14 The Council’s capital contingency will potentially be further supported by the continued application of the Corporate Property and Asset Management principles. This includes the review of assets to determine which could be disposed of where they do not effectively contribute to the delivery of the Councils business; where they do not support the community; where they do not assist the Council’s regeneration objectives or where they do not provide value for money.
17 Reserves
17.1 In setting the budget the s151 officer is required under S25 of the Local Government Act 2003 to report on the robustness of the budget and the adequacy of reserves supporting the budget. The requirement on the s151 officer is to ensure that the budget recommended to Council is balanced (i.e. expenditure matches income), is robust and therefore deliverable and has an adequate level of reserves. The s151 officer is required to ensure that the Council’s approved budget addresses these three issues. The level of reserves needed will vary year on year according to circumstances and the adequate level of reserves should be informed by a robust risk assessment process. This detail is provided in Appendix 2 to this report.
17.2 Council holds two main forms of reserves;
a) Unearmarked Reserves: are set aside to help manage the risk to the Council’s financial standing in the event of extraordinary or otherwise unforeseen events and to mitigate the underlying operational risk associated with the activities of the Council and the management of service expenditure, income and the Council’s funding.
b) Earmarked Reserves: are set aside for specific purposes including those held in support of various partnerships, reserves designed to help deliver the challenges in the Council’s Medium Term Financial Plan, key major projects of the Council and a number of reserves the Council is required to hold in line with statute or its own governance requirements.
17.3 The Local Government Association peer review undertaken in 2013 considered that the Council General Unearmarked Reserves were low considering the risks currently faced by the Council. The peer review felt if the ongoing annual review of earmarked reserves led to their significant reduction then consideration would be needed of an increase in unearmarked reserves.
17.4 The Council should also remain mindful that relatively minor changes or shifts in key planning assumptions may have a significant impact on the Council’s financial position as highlighted in Figure 13 below;
26
Figure 13: Council sensitivity to potential changes in assumptions
Impact on level of net expenditure £000’s Looked after Child (high cost - residential) – per child 278 Looked after Child (medium cost – fostering) –per child 17 Intensive homecare package for a disabled person 99 Vulnerable Adults (learning disability – residential < 65) 76 Older person’s supported residential care 35 £29k Increase in the £2.9m cost of the Concessionary Fare Scheme to per 1% increase the Council in journey numbers
17.5 The CFO in providing advice to Council on the level of reserves required to support the budgeted position has been mindful of both the need to safeguard the organisation against the risk of future economic exposure and financial shocks whilst also ensuring monies are not held up unnecessarily in reserves. Due regard has also to be given to the advice expressed as part of the external peer review, the previous agreement with members to maintain unearmarked at the lowest point in the risk assessed range and the ongoing and relentless testing of the resilience of the Council’s financial management arrangements due to the impact of Government Grant reductions and increased demand for Council services.
17.6 It may be worth emphasising that reserves should not be seen in a short term context. They should be placed in the context of the long term grant cuts, service pressures and service delivery problems that the Council will face. It is however legitimate for the Council to call on reserves to mitigate short term pressures, smooth out the impact of extraordinary one-off demands such as Government Grant reductions, to meet the cost of unforeseen events and to enable any necessary structural budget adjustments to be implemented in a measured and planned way.
17.7 The establishment of a sustainable budget from 2018/19 onwards has enabled the Council to reflect on the resources that have been set aside in the Council Financial Planning Reserve. Previously this reserve has been used to enable the Council to set a balanced budget when its forecast expenditure exceeded its forecast income. Over the last three years the budgeted drawdown has been £3.6m (2015/16), £4.5m (2016/17), and £0.8m (2017/18) respectively.
Such resources lend themselves to supporting one-off items of expenditure rather than ongoing annual costs. The proposal is therefore to reclassify £2m of these resources as a Revenue Funding of Capital Reserve and earmarked to support the Council's Capital Priorities & Ambitions around;
• Town Centre North Regeneration scheme including the provision of a new Swimming Pool & Leisure Centre, significant public realm and support for a new Bus Station;
• The Children's services capital programme, potentially including Hillbourne School;
27
• Schemes which deliver additional affordable homes within our community.
This adjustment leaves £1.9m within the Financial Planning Reserve to provide mitigation against the £6.6m funding gap within the Council's three year MTFP to 2020/21, to fund any future local election costs, as well as providing coverage for developing issues such as the increasing pressure being placed on the schools High Needs Budgets.
17.8 Having considered all matters and the known business requirements of the Council in 2018/19, the Chief Financial Officer is of the view that it is appropriate to set the level of unearmarked reserves at £6.25m for the 2018/19 budget. The position will be kept under review throughout the remainder of 2017/18 to ensure the in-year position responds and reflects any new or changing risks as they emerge during the financial year.
17.9 With regard to Earmarked Reserves, it is proposed that the level to be held by the Council as at the 31 March 2018 be determined at approximately £12.6m.
17.10 The budget as proposed is also premised on the assumption that any changes between the provisional 2018/19 Local Government Finance settlement, issued in late December 2017, and the final settlement due in early February 2018, will be addressed as a movement either to or from the Financial Planning Earmarked Reserve. It is proposed that this reserve is also held to support the required reductions to the Council base budget necessary to deliver a balanced 2019/20 budget.
17.11 In proposing the Reserves Strategy as set out in Appendix 2, the Chief Financial Officer has been mindful of the need to;
a) Balance both the requirement to safeguard the organisation against the risk of future financial exposure whilst also ensuring resources are not held unnecessarily in reserves and;
b) Identify opportunities for the Council to re-direct available resources to support the delivery of key Council priorities in 2018/19 and to enable the Council to deliver its Financial Strategy for growth and investment in Poole.
18 Treasury Management Strategy
18.1 The Council’s Treasury Management Strategy (the Strategy) is subject to regular review and was last reported to Audit Committee for monitoring and update purposes in January 2018. The Council is required to set its prudential indicators in the context of the overall Strategy on an annual basis. The Treasury Strategy, Practices and Prudential Indicators for 2018/19 are set out in Appendix 4 for approval by Council.
18.2 The Council’s Strategy continues to focus on maximising income earned on investments, within acceptable levels of risk. All of the Council’s investments are with institutions rated AA or above, which minimises the risk of loss of investment to the Council.
28
18.3 Poole does anticipate taking out new borrowing in 2018/19, in support of its capital programme. Some of this borrowing need could be met by the use of the Council’s existing cash, investment and reserve balances (known as internal borrowing). As referenced in the Strategy, Officers will continue to work with the Council’s independent treasury advisors to determine the most appropriate financing model.
18.4 A significant element of the strategy is the Council’s approach to balancing the risks associated with its investments and borrowing needs;
a) Credit Risk: Which is the risk associated with an institution failing and the Council’s investment being reduced due to new bank bail-in arrangements. The Council’s approach to minimise this risk is to invest only with institutions of a sufficiently high credit rating or with other public bodies.
b) Interest Rate Risk: This is the exposure to interest rate movements on its borrowing and investments. The Council is susceptible to upward movements in long term rates given new borrowing anticipated over the next 5 years. At this stage the Council anticipates long term interest rates remaining low for the foreseeable future. The Council is also aware of (and has already used) alternative sources of borrowing to the traditional Public Loans Works Board (PWLB), for example other local authorities. These alternative lenders offer competitive loan rates over a range of loan terms.
c) Re-financing Risk: Focuses on managing the exposure to replacing current financial instruments (borrowings) as and when they mature. Poole’s loans are structured so they do not all fall due for refinancing at the same time.
d) Liquidity Risk: This aims to ensure the Council has sufficient cash available as and when needed.
18.5 The strategy also sets out the Council’s approach to the repayment of debt - referred to as the minimum revenue provision (MRP). In this regard the Council revised its approach during 2017/18 from a 4% reducing balance methodology to that of a 2% straight line. The Council retains the option to allow debt repayment over a shorter timeframe, or to set aside annual debt repayments that mirror the profile set out in a scheme’s business case. An example would be ‘invest to save’ schemes, where annual returns are not static, but increase each year as the scheme becomes more established.
19 Housing Revenue Account (HRA)
19.1 A report on the HRA and rent setting is included as a separate item on the agenda for this meeting, and should be considered alongside this report to Members in setting the Budget for 2018/19.
20 Chief Officer’ Pay Policy Statement
20.1 Further to the provisions of the Localism Act 2011, the Council is required to publish its local Chief Officers’ Pay Policy for consideration by Council before the 31 March each year.
29
20.2 The Council’s Pay Policy has been duly prepared by the Joint Service Unit Head for Human Resources and Organisational Development and is attached as Appendix 7 to this report to ensure the Council is able to consider it this year in accordance with the statutory timetable as prescribed by Government.
21 Scheme of Members’ Allowances
21.1 The Council is required to adopt an annual scheme of Members’ Allowances as specified under the Local Authorities (Members’ Allowances) (England) Regulations 2003. This references the following in respect of annual updating “The Scheme will be updated each year on 1 April, in line with any amendment to the Employees’ National Salary Award.”
21.2 As part of the proposed budget, provision had been made for an annual salary increase of 2% for employees, for the 2018/19 Financial Year. Should this finally be agreed as the National Salary Award, then Members Allowances would have increased by the same percentage amount, 2%.
21.3 The proposal of this report is that Members do not accept this increase, equivalent to £12k and instead continue with the current level of Allowance for the next Financial Year.
22 Human Resource Implications
22.1 There are no direct human resource implications of this report. However the 2018/19 Budget and longer term MTFP will have a direct impact on the level of services delivered by the Council, the mechanisms by which those services are delivered and the associated staffing compliment.
22.2 Published information for 2018/19 will show variations due to reductions associated with the transformation strategy and more specifically the £9.5m of savings, efficiencies and additional resources planned for 2018/19.
23 Financial Implications
23.1 The financing implications of the 2018/19 Budget and MTFP are as set out in the body of this report.
23.2 In line with the decision of the Bournemouth, Christchurch and Poole (BCP) Joint Committee it should be brought to the attention of Members that the decisions outlined in this report will have a significant financial impact on a new unitary authority for the conurbation should the Secretary of State of the Ministry for Housing, Communities and Local Government confirm his “minded to” decision.
24 Legal Implications
24.1 It is the responsibility of Members to ensure the Council sets a balanced budget for the forthcoming year. In setting such a budget Members and Officers of the Council have a legal requirement to ensure it is balanced in a manner which reflects the needs and interests of both current and future taxpayers in discharging these
30
responsibilities. In essence this is a direct reference to ensure that Council sets a financially sustainable budget which is mindful of the long term consequences of any short term decisions.
24.2 As part of this final budget papers the Chief Financial Officer (CFO) is required to make a report to the authority which deals with the robustness of the estimates and the adequacy (or otherwise) of the Council’s reserves.
24.3 The support and leadership of the Council’s Cabinet Members and Management Team throughout the budget process is essential in achieving a balanced position that is owned and shared by all parts of the organisation. The annual budget process and tabling of regular update reports on the re-fresh of the MTFP are critical to ensuring this is achieved.
25 Risk Management Implications
25.1 This report and the outlined actions will form part of the mitigation strategy associated with the following risks which appear on the Council’s Corporate Risk register:
• Deliver affordable and appropriate services (CR1)
• Meeting the populations increasing needs for health and social care (CR2)
• Improving outcomes for children & young people (CR3)
• Regenerating Poole (CR4)
• Organisational Transformation (CR6)
• Information Governance (CR7)
• Welfare Reform (CR8)
• Affordable Housing (CR9)
• Safeguarding and Domestic Violence (CR10)
• Brexit issues facing the Council (CR13)
26 Equality Implications
26.1 An Equalities Impact Assessment (EQIA) has been undertaken in respect of the Budget as proposed, to identify the overall equality impacts of substantial cuts in funding and how remaining resources have been allocated in respect of 9 protected characteristics:
• Age;
• Disability;
• Gender reassignment;
• Marriage and civil partnership;
• Pregnancy and maternity;
• Race;
• Religion and belief;
• Sex;
31
• Sexual orientation.
26.2 The full EQIA is included as Appendix 5 to this report and will be incorporated into the detailed Budget book to be published following Council approval of the Budget itself. The equality impact of proposals for savings, efficiencies, or additional resources that require a significant change in policy or service levels are reviewed as part of the budget process for bringing forward such items.
27 Conclusions
27.1 The Council is required to set an annual balanced Budget presenting how its financial resources, both income and expenditure, are to be allocated and utilised. In setting the budget for 2018/19 it is critical that Members recognise their duties to balance this budget in a manner which reflects not only their obligation to current taxpayers but also reflects their obligations to future taxpayers.
27.2 Members will clearly need to make tough and difficult choices to ensure they can meet their statutory duty to balance and deliver this 2018/19 budget.
A RICHENS CHIEF FINANCE OFFICER 15 January 2018
Telephone: (01202) 633183 e-mail: [email protected]
Background Papers
Medium Term Financial Plan (MTFP) 2017 – 2020 (Council February 2017)
Medium Term Financial Plan Update (Cabinet July 2017)
Medium Term Financial Plan Update (Cabinet October 2017)
Medium Term Financial Plan Update (Cabinet December 2017)
32
MEDIUM TERM FINANCIAL PLAN
TIMELINE
Date Event Action
• Final consideration of MTFP 2017 to 2020 & 2017/18 21 February 2017 Council Budget including Council Tax Setting report.
• Budget Book including March 2017 Financial Services publish detailed revenue and capital plans.
• Service Business Plans March 2017 Theme – Service Units finalised.
• Financial Outturn report June 2017 Cabinet 2016/17.
• MTFP 2018 to 2021 Update July 2017 Cabinet report.
• Deadline for the production of baseline financial assessments of services 31 July 2017 Service Unit Heads growth and savings plans over the next 2 years to support fundamental refresh of the MTFP .
• June (1st Quarter) Council September 2017 Cabinet Budget Monitoring report 2017/18.
• MTFP 2018 to 2021 Update October 2017 Cabinet report.
APPENDIX 1 - Timeline
Date Event Action
November 2017 All Member Seminar • MTFP Presentation.
Business Improvement
• Scrutiny of October MTFP November 2017 Overview & Scrutiny 2018 to 2021 Update report. Committee
• Autumn 2017 Budget November 2017 Chancellor Statement.
• Sept (2nd Quarter) Council December 2017 Cabinet Budget Monitoring report 2017/18.
• December MTFP 2018 to December 2017 Cabinet 2021 Update report.
Department of • Local Government Finance December 2017 Communities & Local Settlement. Government
Meeting with • Public Consultation of MTFP Representatives from January 2018 2018 to 2021 & 2018/19 Residents’ Association and Budget. Commerce & Industry
• Taxbase Setting report January 2018 Cabinet 2018/19.
Business Improvement • Scrutiny of December MTFP January 2018 Overview and Scrutiny Update report. Committee
APPENDIX 1 - Timeline Date Event Action
• MTFP 2018 to 2021 and 2018/19 Budget report including Council Tax February 2018 Cabinet 2018/19. • Dec (3rd Quarter) Council Budget Monitoring report 2017/18.
• Final consideration of MTFP 2018 to 2021 & 2018/19 February 2018 Council budget including Council Tax Setting report.
Please note:
a) Timings of Government announcements subject to confirmation/variation.
APPENDIX 1 - Timeline GENERAL FUND BUDGET SUMMARY 2018/2019
Net Gross Gross Net Budget Expenditure Income Budget 2017/18 2018/19 2018/19 2018/19 £000's £000's £000's £000's
Theme Areas People - Children's Services 31,235 71,313 (40,302) 31,011
People - Adult Social Care 40,741 61,555 (19,761) 41,794
People - Other 1,322 13,302 (11,714) 1,588
Places 32,316 65,424 (33,168) 32,256
Business Improvement 5,562 71,153 (68,366) 2,787
Pensions 2,535 2,716 0 2,716
Non distributed costs - Surplus property costs 201 177 0 177
Efficiency Review Programme and Increment Freeze (592) (81) 0 (81)
Courts and Fisheries 259 319 0 319
Apprenticeship Levy 315 0 0 0
Cost of theme controlled services 113,894 285,878 (173,311) 112,567
Corporate Income and Expenditure Environment Agency 199 204 0 204 Interest on borrowings 0 147 147 Interest on cash investments (58) 0 (152) (152) Investment Income (1,989) 411 (2,512) (2,101)
Net Operating Expenditure 112,046 286,640 (175,975) 110,665
Other financial items impacting on the general fund Notional depreciation charges included within cost of services (13,297) (12,297) (12,297) Revenue contribution to capital - general 0 0 0 0 Revenue contribution to capital - ICT investment plan 165 0 0 0 Provision for repayment (MRP) 678 678 0 678 Provision for repayment of prudential borrowing 2,021 2,262 0 2,262
(10,433) 2,940 (12,297) (9,357)
Other funding before Council Tax Requirement New Homes Bonus Grant (2,156) (1,777) (1,777) Adult Social Care one off grant (640) 0 0 Collection Fund Surplus Distribution (council tax) (941) (1,046) (1,046) Income from Business Rates (27,960) (27,332) (27,332) Tariff to Government 13,089 13,116 13,116 Grant - compensation for national business rate initiatives (net) (1,332) (2,509) (2,509) Collection Fund surplus distribution (business rates) Net (700) 0 0 Revenue support grant (from Government) (4,878) (1,725) (1,725) Transitional Grant (862) 0 0 (Use) of Earmarked Reserve (798) 0 0
(27,178) 13,116 (34,389) (21,273)
Total Council Tax Requirement 74,435 302,696 (222,661) 80,035
Appendix 1A MEDIUM TERM FINANCIAL PLAN - 2018 to 2020 - Assumed Savings 2018/19 2019/20 2020/21 Total : Theme Name of Proposal Description to 2020 £000's £000's £000's £000's To reduce overhead costs we are restructuring the Councils Corporate Services Directorate to reduce Restructure of Corporate Services staff numbers, operating costs and to be more Corporate Theme services as part of a 1 efficient. Teams include Financial Services, Human (1,818) (1,818) Services shared service arrangement with Resources, Legal & Democratic Services, Bournemouth Council. Information Technology Services and Executive Functions Further savings from sharing corporate services Reduced Corporate Services senior managers with Bournemouth. Includes the Corporate Management Costs as part of Heads of Human Resources, Legal & Democratic 2 (125) (125) Services shared service arrangement with Services and Information Technology Services. Bournemouth Council. Previously the Head of Financial Services and Corporate Director became shared posts. Extension of the Councils Stour Valley and Poole Partnership (SVPP) which currently delivers Corporate Continue to develop our Revenue 3 Revenue and Benefits services to Christchurch, (125) (66) (81) (272) Services and Benefits service Partnership East Dorset, North Dorset and Poole Councils. The proposal is to include Bournemouth from April 2018. Adjustment to base revenue budget to reflect Corporate Housing Benefit Service. Payment services efficiencies achieved over the last few 4 (231) (231) Item efficiencies years and to take account of a greater level of budgetary risk. Contract efficiencies have meant that the enhanced specification for works to the Dolphin MSCP can be Corporate Town Centre Regeneration. completed within the original budget allocation for 5 (80) (80) Item Dolphin Centre Lease restructure essential works which releases the amounts previously set aside to cover prudential borrowing payments Corporate Improve efficiency in the ICT Revised project team arrangements in the ICT 6 (25) (25) Services service service 2018/19 2019/20 2020/21 Total : Theme Name of Proposal Description to 2020 £000's £000's £000's £000's Corporate 7 Strategy Directorate efficiencies Staff and Supplies & Services savings (19) (19) Services Savings and adjustments related to the redesign of Corporate Financial Services, service 8 financial services including client Revenue and (17) 20 3 Services efficiencies Benefit costs. Corporate Annual uplift in line with the pay award of 2% 9 Members Allowances (12) (12) Item foregone Reduced fees for audit services following a highly successful procurement process undertaken by Corporate Public Sector Audit Appointments Ltd (PSAA). 10 External Audit Fee efficiencies (21) (21) Item Savings equivalent to a reduction of approximately 22% in the audit fee is anticipated from 2019/20 onwards. Reduced operating costs and Fundamental review of all income and expenditure 11 Place increased income in respect of the (514) (514) within Environmental Services Environmental Services Unit Combination of the second and third year of 12 Place Fees and Charges Beach Huts previously agreed beach hut price increases with (143) (129) (272) further tariff harmonisation Proposal to generate positive Reprofile income forecast generated by new beach 13 Place returns from new Council Beach 9 (215) (206) huts to reflect on recent cliff slip. Huts A cross Place Theme restructuring to reduce staff Redesign of Place Theme numbers, operating costs, to more efficient and to 14 Place services to deliver staff (200) (200) ensure the service is more responsive to current efficiencies council priorities Joint Tourism service Joint Tourism service arrangement with 15 Place arrangement with Bournemouth Bournemouth Council as agreed at Cabinet July (118) (42) (18) (178) Council 2017 Lowering the charges made by Reduced contract price for supporting subsidised 16 Place bus companies to support (100) (17) (117) travel from the bus companies subsidised travel 2018/19 2019/20 2020/21 Total : Theme Name of Proposal Description to 2020 £000's £000's £000's £000's Application of inflationary increases to a range of Fees and Charges Place Theme charges including Building Control fees, Green 17 Place (34) (34) (10) (78) General Waste, the fee for managing Sainsbury's car park and Allotments Service efficiencies Recreation & Lower contract price for the operation of the Leisure 18 Place (41) (36) (77) Sports Centres managed by SLM Ltd Service efficiencies Upton Country Ongoing scheme to remove the current subsidy 19 Place (28) (32) (60) Park provided by the Council A number of small Place Theme based service 20 Place Place Theme service efficiencies (57) (9) (66) efficiencies Ongoing impact of Joint Library service Joint Library service arrangement 21 Place arrangement with Bournemouth Council already put (17) (23) (4) (44) with Bournemouth Council in place Small efficiencies in the Planning Planned for staff efficiencies in the Planning & 22 Place (40) (40) services Regeneration service Economic Development budget Funding reduction to pan Dorset economic 23 Place (32) (8) (40) reductions development initiatives Reduced non statutory grants in A number of small reductions in grants that support 24 Place (27) (27) cultural and community services cultural and arts organisations Impact of the end of the current agreement with the 25 Place Parking permits additional income (28) 9 101 82 RNLI with regards to parking permits Efficiencies in Children in Care Efficiencies from reducing the numbers of children 26 People 0 (600) (600) costs requiring residential placement Use of Improved Better Care Fund and Disabled 27 People Demographics Pressures (500) (500) Facilities Grants (iBCF, DFG) Removal of vacant posts and other staffing costs in 28 People Service change (200) (100) (300) the reablement service Childrens centres service 29 People Savings from a fundamental service review (135) (135) efficiencies Technical adjustment between the accounts of the 30 People Housing authority in regards to garage sites which cannot be (129) (129) developed. Please see HRA report A number of small People Theme based service 31 People People Theme service efficiencies (114) 12 (102) efficiencies 2018/19 2019/20 2020/21 Total : Theme Name of Proposal Description to 2020 £000's £000's £000's £000's Continue the successful reduction in the number of 32 People Demand Management people in residential care and the associated respite (90) (90) care Shared workforce development and training 33 People ASC Staffing (65) (65) manager across Poole and Bournemouth Councils 34 People In-House Night Service Efficiencies in the delivery of night time care (60) (60) Cease free Financial Management Introduce charge to ensure consistency with 35 People (60) (60) Service approach taken by other local authorities. Revised Grammar school transport arrangements Reduction in subsidies for school 36 People as previously agreed in report to Cabinet in June (41) (18) (59) transport 2016 Staff efficiencies delivered by a review of the Restructure of capital projects 37 People Education capital team and Financial Services (57) (57) support team property maintenance capital team Recommission Drug & Alcohol Savings from the recommissioning of Drug and 38 People (50) (50) services Alcohol services Service efficiencies in the Children Service Unit has identified further deliverable 39 People (50) (50) 0 to 5 service savings for 2018/19 40 People Direct Payments Review rates (50) (50) The creation of a joint Continuing Health Care (CHC) management hub across Bournemouth 41 People Healthcare Hub (50) (50) Borough Council and Borough of Poole to more effectively manage CHC case costs Realign of costs against specific grant income 42 People Housing staff costs rather than funding from the base revenue budget of (35) (35) the service. 43 People Housing operations centre Increased income projection for the service (20) (20) Reduction, based on activity and performance, of 44 People Housing Support the requirement to hold a bad debt provision (12) (12) associated with rent deposits Resources passed back to the Council from the 45 People Public Health Grant (90) 60 30 0 shared Dorset Public Health service 2018/19 2019/20 2020/21 Total : Theme Name of Proposal Description to 2020 £000's £000's £000's £000's Medium Term Financial Plan (MTFP) planning Corporate assumption of an increase in Council Tax of 2.99% 46 Council Tax (4,512) (1,586) (1,619) (7,717) item with an additional 3% social care precept also levied in 2018/19. Returning to 1.99% in subsequent years
Increase from a combination of growth in residential Corporate 47 Growing the Councils Tax Base property numbers, with a lower cost of the Local (1,089) (677) (788) (2,554) item Council Tax Support (LCTS) scheme. Adjustment to reflect the combined impact on the Corporate Better Care Government Grant MTFP of annual variations in the March 2017 48 (680) (535) 898 (317) item funding additional Better Care Fund resources and the previously announced resources Corporate One-off distribution of Tax Council Tax surplus distribution as a one-off in 49 941 941 item Surpluses 2017/18 Corporate One-off distribution of Tax 50 Collection Fund distribution as a (one off) 2018/19 (1,046) 1,046 0 item Surpluses Corporate One-off distribution of Tax Business rates surplus distribution as a one-off in 51 700 700 item Surpluses 2017/18 Increase Empty Homes Premium from 50% to Corporate 52 Council Tax 100% as per Chancellors announcement in the (50) (50) item Autumn 2017 Budget. As part of the approach to deliver a sustainable budget from April 2019 onwards. Planned reduction Corporate Reduced use of reserves to 53 in the use of the Financial Planning Earmarked 798 798 item support the base budget Reserve which has previously been used to rephase the timing of necessary service savings. Estimated change in the amount of NHB Revisions to the New Homes Government Grant receivable. Due to a reduction in Corporate 54 Bonus (NHB) Grant received from the number of years it is receivable for and 379 239 618 item Government restrictions which mean the Council no longer receive the first 0.4% of any growth. Corporate Adult Social Care Government Impact of the Adult Social Care Grant being a one- 55 640 640 item Grant off allocation for 2017/18 2018/19 2019/20 2020/21 Total : Theme Name of Proposal Description to 2020 £000's £000's £000's £000's Savings Total (9,459) (2,637) (1,706) (13,802)
Please Note: 1. A number of the above savings have been assumed for financial planning purposes only and it should be highlighted that they remain subject to both informal and statutory public consultation procedures and subsequent Member approval. If as a result the decision to proceed is not confirmed then the Council's s151 Officer (working with Members and other Officers) will need to ensure alternative resources are applied to the MTFP. The risk associated with such proposals is recognised as part of the risk assessment which underpins the annual Budget. BOROUGH OF POOLE
CABINET
6 February 2018
MEDIUM TERM FINANCIAL PLAN 2018 to 2021
RESERVES & BALANCES
Background
A local authority must decide the level of general reserves it wishes to maintain before it can decide the level of the council tax it sets. The purpose of general reserves is to manage the risk to the council’s financial standing from the impact of excesses to the budget provision and unforeseen events.
In setting the budget the S151 officer is required under S25 of the Local Government Act 2003 to report on the robustness of the budget and the adequacy of reserves supporting the budget. The requirement on the S151 officer is to ensure that the budget recommended to Council is balanced (i.e. expenditure matches income), is robust and therefore deliverable and has an adequate level of reserves. The S151 officer is required to ensure that the Council’s approved budget addresses these three issues.
Ultimately, Council will determine the level of reserves and balances formally in setting the annual budget. The advice of the Chief Finance Officer must be formally recorded.
Guidelines
There is no set formula for deciding what level of reserves is adequate. Councils are free to determine the reserves they hold. Elected members are responsible for ensuring that their reserves are appropriate to local circumstances, and are accountable to taxpayers for the decisions they make.
It should be stressed that there is no theoretically “correct” level of reserves because the issues that affect an authority’s need for reserves will vary over time and between authorities. Reserves should not be seen in a short term context. They should be placed in the context of the long term grant cuts, service pressures and service delivery problems that the Council is exposed to. It is however legitimate for the Council to call on reserves to mitigate short term pressures, smooth out the impact of extraordinary one-off demands and/or otherwise meet the costs of unforeseen events.
Local Government Association Advice
In reviewing its reserves Members need to be conscious of the advice provided by the Local Government Association as part of their financial health check of the Borough of Poole undertaken in 2013. Bill Roots the previous Chief Executive and Director of Finance at Westminster City Council advised that he supported our process for annually reviewing earmarked reserves but highlighted that if significant reductions are made to these then increases in unearmarked reserves will be required as he
1 APPENDIX 2
considered these to be on the low side given the future financial risks faced by local government.
Comparative Information
Attached at Appendix 2(i) is comparative information on Poole’s unearmarked reserves against our statistical nearest neighbours based on published financial information. The appendix highlights that Poole’s position within the group has been relatively around the mean of the comparator group.
Chief Financial Officer Advice
Reserves are an essential part of good financial management. They help councils to cope with unpredictable financial pressures and plan for their future spending commitments. The level, purpose and planned use of reserves are important factors for elected members and council officers to consider in developing medium term financial plans and setting annual budgets. Having the right level of reserves is incredibly important. Where councils hold very low reserves there may be little resilience to financial shocks and sustained financial challenges, where reserves are high then councils may be holding more than they need.
The Council continues to face some of the most significant financial challenges for a generation. These include the complete removal of government’s unringfenced funding to the Council, reductions in the amounts of business rates that can be retained locally, constrained council tax increases, a decline in other sources of income, rising costs and growing demand for many services that are all testing council’s financial management and resilience.
In advising members on the appropriate level of reserves there is a need to take into account the potential financial impact of all strategic, operational and financial risks facing the authority, together with the current overall financial standing of the Council. The management of reserves has been fundamental to ensuring the Council has a sound financial base on which to build going forward.
In developing a financial strategy to support the delivery of a balanced budget for 2018/19 the Chief Financial Officer undertook a fundamental review of all reserves as reported to Cabinet in December.
Details of the reserves held by the Council are included at Appendix 2 (ii) to this report. This also included a schedule of the Earmarked Reserves that the Council is now forecast to hold on the 31 March in each year to 2021.
A summary of the Council's reserve policy is proposed as follows;
a) An annual risk assessment should be undertaken to support the overall level of reserves, as set out within Appendix 2(iii).
b) In the medium term reserves should be maintained to; -
• support the Council’s aims and objectives.
• create a working balance to cushion the impact of uneven cash flows and avoid unnecessary temporary borrowing.
2 APPENDIX 2
• mitigate the underlying operational risk associated with the operation of a Council and the management of service expenditure, income and other financing items.
• mitigate the risk posed to the Council in terms of the current economic climate.
• Smooth out the impact of Government Grant reductions and enable the necessary structural budget adjustments, as underpinned by the required business transformations, to be implemented in a measured and planned for way.
c) For operational purposes unearmarked reserves should be around £6.25m. This represents 2% of turnover based on total Council business of £305m (18/19) and provides coverage of just over a week based on daily expenditure. Unearmarked reserves to cover operational risks are normally in the range 2% to 5% (5% being the previously advised CIPFA benchmark).
d) As part of the Council Budget Monitoring process, the level of reserves and balances will be reviewed annually to ensure that these are at an appropriate level and in accordance with the policy objectives.
The Chief Financial Officer (CFO) considers the level of reserves as proposed to be adequate for the purposes of the 2018/19 Budget. The CFO also considers that in respect of the estimates used to prepare the budget that they provide a robust and accurate basis upon which to derive such estimates.
3 APPENDIX 2
Unallocated Reserves as a % of Net Budget (17/18) - South Coast Unitaries
6
5
% 4 o f
N 3 e t
B u d 2 g e t
1
0
Appendix 2 (i) ANNUAL REVIEW OF GENERAL FUND RESERVES - POOLE
(A) General Fund - Earmarked Revenue Reserves
01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Detail Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s (19,123) Actual Balance 1 April (14,689) (12,642) (4,289) (3,369)
Budgeted in-year use of Earmarked Reserves 4,434 798 0 170 0 (amount used to underpin budgeted expenditure in excess of budgeted income)
Estimated programme spend in-year 0 1,249 8,353 750 945 (forecast of expenditure being drawn down in-year to support programme)
(14,689) Total Earmarked Reserves 31 March – Balance remaining (12,642) (4,289) (3,369) (2,424)
APPENDIX 2 (ii) - RESERVES Below sections show how the 31 March balance in each year can be broken down;
01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Detail Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s
(4,760) (B) - Financial Planning Reserve (1,905) (1,905) (1,735) (1,735)
(C) - Revenue Funding Capital Reserve (2,000) 0 0 0
(2,231) (D) - Additional Reserves Supporting the MTFP (2,180) 0 0 0
(E) - Reserves held in Partnership with other external (1,298) (852) (697) (697) (347) organisations (F) - Reserves required by Statute, Legislation and contract (1,262) (1,315) (708) (403) (184) arrangements
(2,702) (G) - Reorganisation Reserve (2,036) 0 0 0
(598) (H) - Planning Reserves (436) (244) (197) 0
(1,838) (I) - Reserves Supporting Council Priorities and Programmes (1,918) (735) (337) (158)
(14,689) Forecast Earmarked Reserve Balance - 31 March (12,642) (4,289) (3,369) (2,424) (12,680) (J) - General Fund Capital Reserves (9,703) (8,160) (3,359) (3,194) (2,161) (K) - Schools Balances - held in delegation (1,161) 0 0 0 (29,530) Total Forecast Earmarked Reserve Balance - 31 March (23,506) (12,449) (6,728) (5,618)
APPENDIX 2 (ii) - RESERVES (B) - Financial Planning Reserve 01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s (4,760) Financial Planning Reserve 798 Supporting 2017/18 base budget (3,962) Financial Planning Reserve (1,905) (1,905) (1,735) (1,735) The intention will be the reserve is used to support any one-off items within the Medium Term Financial Plan, future election costs, any significant insurance costs not covered by the annual budget allowance, and to enable structural budget adjustments to be implemented in a measured and planned for way.
(C) - Revenue Funding Capital Reserves 01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s 0 Transfer from Financial Planning Reserve (2,000) 0 0 0 New reserve to support the delivery of the Councils capital ambitions to and develop key assets in Poole
(D) Additional Reserves Supporting the MTFP 01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s (723) Change and Development Adult Social Care (676) 0 0 0 (90) Beach Huts Phase 2 (90) 0 0 0 (18) Support MTFP and Council Member Priorities (14) 0 0 0 (1,400) Supporting High Cost Placements (1,400) 0 0 0 (2,231) Additional Reserves Supporting the MTFP (2,180) 0 0 0
APPENDIX 2 (ii) - RESERVES (E) Reserves Held in Partnership with Other Organisations 01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s (750) Schools Block (132) 0 0 0 (142) Bournemouth and Poole Adult Learning Services (142) (142) (142) 0 (336) Stour Valley and Poole Partnership Review (510) (510) (510) (347) (42) Coroner's Partnership Costs (42) (42) (42) 0 (25) Planning - Local Economic Partnership (23) 0 0 0 (3) Post 16 (3) (3) (3) 0 (1,298) Reserves Held in Partnership with Other Organisations (852) (697) (697) (347)
(F) Reserves required by statute, legislation or contract arrangements 01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s Grants received in advance of spend which accounting guidance (1,158) (1,252) (645) (340) (228) requires to be held as earmarked reserves (*) (76) Building Regulation Account (35) (35) (35) 44 Poole Park Tennis (maintenance of facility standard in accordance (28) (28) (28) (28) 0 with original grant terms) Reserves required by statute, legislation or contract (1,262) (1,315) (708) (403) (184) arrangements (*) Now includes the Flexible Homelessness Support Grant
APPENDIX 2 (ii) - RESERVES (G) Reorganisation and Redundancy Reserve 01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s (2,702) Reorganisation and Redundancy Reserve (2,702) Reorganisation and Redundancy Reserve (2,036) 0 0 0 Council has agreed that the £300k per annum of capital receipts will be used from 2017/18 to further support this reserve based on the approved 'flexible use of capital receipts strategy'. The planning assumption is that the reserve will be fully applied across 2017/18 and 2018/19 to cover the programme, project management and staff exit costs required to enable delivery of the base budget reductions required to balance the MTFP. An example of the reserves use is the creation of shared corporate services with Bournemouth.
(H) - Planning Related Reserves 01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s (401) Local Development Reserve (239) (47) 0 0 (128) Planning Hearing and Enforcement (128) (128) (128) 0 (69) Community Infrastructure Levy (69) (69) (69) 0 (598) Planning Related Reserves (436) (244) (197) 0
APPENDIX 2 (ii) - RESERVES (I) - Reserves supporting Council Priorities and Programmes 01/04/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Forecast Forecast Forecast Forecast Balance Amount Amount Amount Amount £000’s £000’s £000’s £000’s £000’s (54) Street Scene (54) (54) (54) 0 (16) Targeted Services (CYPL) (16) (16) (16) (16) 0 Flippers (16) 0 0 0 (258) ICT Investment Plans (Service Unit Specific) (258) (7) (7) 0 (503) Corporate ICT Investment Plan (Inc.desktop replacement) (503) 0 0 0 (153) Customer access reserve (153) 0 0 0 (18) Human Resources - Mandatory Training Fund (8) 0 0 0 (168) Corporate Maintenance 0 0 0 0 (21) Property strategy rent risk and repairs (21) 0 0 0 (58) Crematorium Maintenance Plan (58) (58) (58) 0 (4) Housing and Health Needs Assessment (4) 0 0 0 (157) Carbon Management Programme (142) (142) (142) (142) (50) Commercialising Use Of Assets 0 0 0 0 (106) European Maritime Day (21) 0 0 0 (27) New Parking Support System 0 0 0 0 (29) Taxi Licensing (2) 0 0 0 (18) PSV Bus Driver Training (1) 0 0 0 (4) Electric Vehicle charges (9) 0 0 0 (100) Planned Patching Programme 0 0 0 0 (70) Conveniences Demolition 0 0 0 0 (18) Poole Park Lighting Works (18) 0 0 0 (6) Highways Equipment Purchase (6) 0 0 0 0 Figbury Lodge (250) (250) 0 0 0 Town Centre Regeneration (378) (208) (60) 0 (1,838) Reserves supporting Council Priorities and Programmes (1,918) (735) (337) (158)
APPENDIX 2 (ii) - RESERVES POOLE BOROUGH COUNCIL
General Unearmarked Reserves - Risk Assessment 2018/2019
Risk Description / Liability Controls in Place Proposed Management Impact Likelihood Residual Potential Weighting Weighted Actions Risk Score Impact Amount
Significant assumptions included in the Robust monthly budget Continued monitoring 2018/19 base budget of the Council including monitoring arrangements arrangements including 3 2 6 £1,000,000 50% £500,000 those in respect of the pay award and council in place quarterly reports to Cabinet tax receipts etc.
Financial regulations requirement that such costs Robust Medium Term Unforecast increase in service demand for must normally be met within Financial Planning 4 2 8 £1,500,000 75% £1,125,000 Childrens Social Care. approved resources. Impact process recognises £1.5m of unbudgeted service pressure based on 2016/17 financial outturn.
Unforecast increase in service demand for Financial regulations Adult Social Care. This includes the significant requirement that such costs threat to demand for Adult Social care from the Robust Medium Term must normally be met within 75% to 80% of clients locally who are self funders Financial Planning approved resources. Impact 3 2 6 £1,000,000 50% £500,000 and do not require financial assistance from the process recognises £1m of unbudgeted Council and the market conditions for such service pressure based on 2016/17 services as residential care for older people. financial outturn.
Financial risk exposure in respect of the Adult Social Care Budget Regularly monitor negotiations impact of cost and inflationary pressures on includes provisional sums and impact as part of continued care providers in regards to the impact on in 2018/19 and robust monitoring arrangements 2 2 4 £500,000 25% £125,000 services commission from the care sector. Medium Term Financial including quarterly reports to Also various risks to the Council's own staff Planning process in place Cabinet base.
APPENDIX 2(iii) Risk Description / Liability Controls in Place Proposed Management Impact Likelihood Residual Potential Weighting Weighted Actions Risk Score Impact Amount
Monitoring of relevant developments and indicators. Consider extent to which the Inflation risk. Council only provided for inflation Generally outside of local where “clear evidence that it will be required due Council can influence local control. November 2017 - 4 1 4 £1,880,000 25% £470,000 to either market conditions or due to contractual market pressures. Based on terms and conditions”. CPI 3.1%, RPI 3.9%. circa £94m of premises, transport, contract payments, agency payments, supplies & services and a 2% variation.
Low level of revenue contribution to capital Guidance and dialogue (RCCO), means any costs that fail to meet with Service Units to set Continue dialogue, advise and 2 2 4 £250,000 25% £62,500 the definition of capital will have a direct out when costs can be monitoring impact on the revenue account. capitalised
Insufficient resources to support necessary Funding only approved infrastructure developments. Council current Continue capital and revenue once necessary resources 3 2 6 £1,000,000 50% £500,000 has limited capital resources and no annual resources allocation processes are in place revenue contributions to capital
Insufficient resources to meet the Council's Funding only approved Continue capital and revenue future aspirations including potentially those once necessary resources 3 2 6 £1,000,000 50% £500,000 resources allocation processes around the Town Centre. are in place
Lack of a base budget revenue contingency Robust monthly budget Continued monitoring prevents the Council providing budgeted monitoring arrangements arrangements including 2 2 4 £500,000 25% £125,000 resources to cover any unplanned for items of in place quarterly reports to Cabinet expenditure
Increasing number of Public Sector Continue to monitor any such Statutory and regulatory organisations recharging for services that claims and seek approaches controls, internal were previous provided at no cost. An which limit claims especially 2 1 2 £500,000 10% £50,000 governance procedures, example would be the Health & Safety those in respect of their professional advisers. Executive backdating.
APPENDIX 2(iii) Risk Description / Liability Controls in Place Proposed Management Impact Likelihood Residual Potential Weighting Weighted Actions Risk Score Impact Amount
Insufficient resources to resolve Legal claims against the Council. Examples include potential claims against the Council in Continue to monitor any such Statutory and regulatory respect of the lack of enforcement action by claims and seek approaches controls, internal the Council, claims relating to the affect that which limit claims especially 4 2 8 £1,500,000 75% £1,125,000 governance procedures, Council capital works have had on those in respect of their professional advisers. businesses etc., and claims in respect of backdating. ordinary residence and Continuing Health Care
Continue to monitor any such Increasing Government regulation Statutory and regulatory claims and seek approaches underpinned by the principle of fines for no controls, internal which limit claims especially 2 1 2 £500,000 10% £50,000 compliance. An example would be Finance governance procedures, those in respect of their Bill 2017 Off Payroll Workers Regulations. professional advisers. backdating.
Continue to monitor any such Increasing number of partner and Public Statutory and regulatory claims and seek approaches Sector organisations employing no win no fee controls, internal which limit claims especially 2 2 4 £500,000 25% £125,000 advocacy to try and improve their financial governance procedures, those in respect of their position to the detriment of the Council. professional advisers. backdating. Ongoing review of Additional Government Requirements. From Continued monitoring of Government policy 2 1 2 £100,000 10% £10,000 proposals such as the Localism Act 2011. Government policy proposals. proposals
Increasing level of funding sources used to Ongoing monitoring of Continued with monitoring support core budgets being dependent upon changes in Government arrangements. Impact based on performance. Particular examples include the grant conditions and 3 2 6 £1,000,000 50% £500,000 Better Care Fund only at this Better Care Fund and the Public Health monitoring of associated stage. Grant. performance.
APPENDIX 2(iii) Risk Description / Liability Controls in Place Proposed Management Impact Likelihood Residual Potential Weighting Weighted Actions Risk Score Impact Amount
Instability to the Council's core funding streams due to the potential for variation in the £60m+ of business rates collected annually and the risk associated with the Monthly in-year monitoring Continual monitoring as passported appeals system. This includes process and tracking of supported by Audit Committee 3 2 6 £600,000 50% £300,000 prescribed timing difference around when business closures and on a periodic basis. items can be credited to the accounts. These start ups risks will increase as the Government move towards a 75% Business Rates retention model.
Instability to the Council's, Council Tax Base due to variations in the number of the Local Council Tax Reduction (benefits) scheme claimants and the ability of the Government to Continue monitoring Monthly in-year monitoring change welfare policy impacting on the arrangements. Based on risk of 2 2 4 £415,700 25% £103,925 of tax base position. amount that can be claimed. Caseload has a 5% increase in caseload. reduced since its implementation but this could easily fluctuate back the other way in 2018/19.
Concern around the impact and Impact of wider Welfare Reform agenda. Regular monitoring of consequences for the most Includes those associated with likely increase activity via the Stour vulnerable in our community. in demand for Discretionary Housing Valley and Poole Concern in respect of the 3 2 6 £1,000,000 50% £500,000 Payments (DHP) in 2017/18 following the Partnership and Housing impact on the Council's housing benefit cap arrangements and the Services services if landlords do not introduction of Universal Credit. receive payment.
Continued development of Reductions in Fees, Charges and Rents Monthly monitoring of the monitoring arrangements. Circa Income. Risk also reflects the decline in key areas of fees & 3 2 6 £930,000 50% £465,000 £31m in fees, charges and rents - individuals personal wealth. charges income Impact assumes a 3% variation.
APPENDIX 2(iii) Risk Description / Liability Controls in Place Proposed Management Impact Likelihood Residual Potential Weighting Weighted Actions Risk Score Impact Amount
Robust quarterly financial Continue monitoring Reduction in income from the investment of monitoring arrangements arrangements. Based on a the Council's day to day cash balances and in place at Cabinet level potential 0.25% reduction in 2 1 2 £31,000 10% £3,100 reserves and quarterly review by interest rates (what the markets Audit Committee refer to as downside risk).
Continual monitoring via Budget Savings, efficiencies and additional resources Regular monitoring via the Monitoring Reports and Budget assumed within the 2018/19 base budget of Cabinet and Management Steering Group process. Based 4 1 4 £2,375,000 25% £593,750 on an assumed risk associated £9.5m will not be delivered. Team budget process with 25% of the savings recognised in the base budget.
The £10.9m of savings and efficiencies Continue monitoring and required to balance years 2 to 3 of the MTFP Robust Medium Term development of the process. will become increasingly challenging to Financial Planning Required Years 2 to 3 savings deliver. Particularly as they include assumed process including Cabinet 4 2 8 £2,725,000 75% £2,043,750 estimated at £10.9m. Risk Council Tax increases and are after the £9.5 / Management Team recognises 25% of the savings identified to deliver a balanced 2018/19 budget process target budget.
There is a risk to the Council that it will incur Ongoing discussion with higher costs to dispose of recyclate material waste contractors and Finalise discussions with the 2 3 6 £152,000 50% £76,000 following tighter controls being placed on the Government Councils waste contractor quality of imports in China. announcements
Robust procurement and Contract Management Regular review of contract procedures. Including Failure of a Major Contractor performance and contractor 2 2 4 £500,000 25% £125,000 performance bonds and financial standing. parent company guarantees
Operational procedures Consider potential to obtain Major Incident 4 1 4 £1,000,000 25% £250,000 and planning. national funding.
APPENDIX 2(iii) Risk Description / Liability Controls in Place Proposed Management Impact Likelihood Residual Potential Weighting Weighted Actions Risk Score Impact Amount
Government will meet Community Right to Bid: Private owners may costs of total Management & monitoring of claim compensation for loss and expenses compensation payments scheme by Council Planning & 1 2 2 £20,000 10% £2,000 incurred through assets listed by local groups that exceed £20,000 in Regeneration Team as having a community value any one year.
TOTAL PROPOSED MINIMUM LEVEL OF BALANCES £22,478,700 £10,230,025
The Council has £6.25m available within its unearmarked reserves which represents 61% coverage of the weighted risks shown above
Assessment equates to a required range for un-earmarked reserves of £6.25m to £10.2m
APPENDIX 2(iii) RESERVES RISK ASSESSMENT
SCORING MATRIX
LIKELIHOOD
Severe / Catastrophic 4 4 (25%) 8 (75%) 12 (100%) 16 (100%) Over £1m
Major 3 3 (10%) 6 (50%) 9 (100%) 12 (100%) £500k to £1m
Moderate IMPACT 2 2 (10%) 4 (25%) 6 (50%) 8 (75%) £100k to £500k
Minor 1 1 (10%) 2 (10%) 3 (10%) 4 (25%) Below £100k
1 2 3 4
Unlikely Possible Likely Very Likely
• May occur in time but • May occur • Likely to occur • Will occur or does very infrequent, perhaps occasionally, perhaps imminently or within occur regularly once in a lifetime once every few years the next few months • to a year Odds of Evens or • Odds of 100-1 to 1000-1 • Odds of 10-1 to 99-1 Absolute Certainty • Odds of 10-1 to Evens
% relates to the weighting which will be given to the potential impact to determine the reserve provision required.
APPENDIX 2 (iv) SUMMARY CAPITAL PROGRAMME 2017/18 TO 2020/21
Estimated Estimated Estimated Estimated Total Theme AllocationsAllocationsAllocationsAllocationsProgramme 2017/18 2018/19 2019/20 2020/21 £'000 £'000 £'000 £'000 £'000
People - Children 1,792 7,237 3,280 168 12,476 People - Adult Social Care 1,448 9,243 429 0 11,120 People - Other 1,260 2,043 575 373 4,251 Place 18,607 16,971 17,378 1,295 54,251 Business Improvement 538 286 165 165 1,154 Total programme 23,646 35,780 21,826 2,001 83,253
Funding Profile 2017/18 2018/19 2019/20 2020/21 Total £'000 £'000 £'000 £'000 £'000
Capital Fund and Revenue Contributions (3,685) (1,788) (4,817) (257) (10,546) Capital Receipts 0 0 0 0 0 Prudential Borrowing (4,506) (11,089) (3,132) (890) (19,617) Total Council Contribution (8,191) (12,877) (7,949) (1,147) (30,163)
Education Grants (1,536) (4,402) (280) (168) (6,385) Highways Grants (10,035) (9,526) (7,395) 0 (26,957) Other Grants (1,808) (4,796) (2,879) (686) (10,169) Supported Borrowing SCE® - previous alloc (53) (2,835) (3,000) 0 (5,888) Other Borrowing (640) 0 0 0 (640) Third Party Contributions (1,382) (1,344) (324) 0 (3,049) Total External Contribution (15,455) (22,903) (13,878) (854) (53,089)
Total Funding (23,646) (35,780) (21,827) (2,001) (83,253)
Net Funding Gap 0 0 0 0 0
Appendix 3 BOROUGH OF POOLE
SUMMARY CAPITAL PROGRAMME
Medium Term Scheme Details Planned Planned Planned Planned Financial Programme Programme Programme Programme Plan Total 2017/18 2018/19 2019/20 2020/21 2017 to 2021 £'000 £'000 £'000 £'000 £'000 PEOPLE - CHILDREN Basic Need - Pupil Place Requirements Carter Community College 400 3600 3000 0 7,000 Ocean Academy 64 111 0 0 175 Basic Need Contingency 0 100 12 0 112 Lilliput CE VC Infant School 215 60 0 275 Needs analysis and master planning 34 60 0 0 94 Oakdale Junior School 4 0 0 0 4 Longfleet CE VC Primary School 15 0 0 0 15 Access to Schools Access projects 20 50 0 0 70 Hillbourne Access project 11 0 0 0 11 School Improvement Contingency for Capital Maintenance 30 1810 100 0 1,940 Condition Surveys 26 0 0 0 26 Turlin Moor Condition works 5 0 0 0 5 Fire safety audits 7 0 0 0 7 Hillbourne ICT Renewal 37 0 0 0 37 Winchelsea Toilets 1 0 0 0 1 Winchelsea School Improvement Works 150 1050 0 0 1,200 Hillbourne School - Toilets 6 15 0 0 21 Poole High School 74 135 0 0 209 Old Town Children's Centre 2 0 0 0 2 Other Priorities and Old Schemes Early education for 2 year olds 0 26 0 0 26 Sylvan First - Pinnochio Nursery 20 0 0 0 20 Early Years Capital - Canford Heath 224 0 0 0 224 Early Years Capital - Rossmore 122 0 0 0 122 SEND provision 0 168 168 168 503
Appendix 3 (i) Capital Programme to 2020/21 Medium Term Scheme Details Planned Planned Planned Planned Financial Programme Programme Programme Programme Plan Total 2017/18 2018/19 2019/20 2020/21 2017 to 2021 £'000 £'000 £'000 £'000 £'000 Devolved Formula Capital & Other Schemes Education Schools Formula Capital 94 52 0 0 146 Children's Social Care Children's Services Case Management System 230 0 0 0 230
TOTAL PEOPLE - CHILDREN 1,792 7,237 3,280 168 12,476
PEOPLE - ADULT SOCIAL CARE Mitchell House Development (Figbury Lodge) 1333 8789 0 0 10,122 Figbury Lodge Care Workstream - including FFE/ICT 0 430 429 0 859 Dorset Care Record - Partnering Agreement 92 0 0 0 92 Autism Innovation 0 4 0 0 4 Learning Disability Service Campus closure programme 24 20 0 0 44
TOTAL PEOPLE - ADULT SOCIAL CARE 1,448 9,243 429 0 11,120
PEOPLE - HOUSING Housing & Community Services Disabled Facilities Grants 595 650 575 373 2,192 Integrated Community Equipment Store 481 323 0 0 804 Private Sector Renewal-warmth & well-being 30 211 0 0 241 Lodges refurbishment 29 20 0 0 49 Community Land Trust Project (Affordable housing) 20 746 0 0 766 Bourne Valley Community Centre demolition 34 0 0 0 34 Social Housing Grants - Bespoke Purchase Programme 71 94 0 0 165
TOTAL PEOPLE - OTHER 1,260 2,043 575 373 4,251 PLACE Transportation Services Port of Poole Improvements Town side Access to the Port of Poole 380 6,170 5,820 0 12,370 Poole Bridge Approach Spans 3,639 0 0 0 3,639 Poole Bridge RNLI Works 225 0 0 0 225
Appendix 3 (i) Capital Programme to 2020/21 Medium Term Scheme Details Planned Planned Planned Planned Financial Programme Programme Programme Programme Plan Total 2017/18 2018/19 2019/20 2020/21 2017 to 2021 £'000 £'000 £'000 £'000 £'000 Key Junction Improvements 0 100 665 0 765 Dunyeats Road 12 0 0 0 12 Development of Business cases for Future Growth Deal Schemes (DLEP) 79 75 50 0 204 Queen Anne Drive (junction at Gravel Hill) 19 35 0 0 54 A349 Gravel Hill Improvements (12) 0 0 0 (12) Strategic Network Improvements SED Traffic model 25 25 0 0 50 Advanced Design for Future LTP Schemes 42 75 0 0 117 Town Centre Regeneration 160 100 0 0 260 Manage and Maintain the Existing Network More Efficiently ITS 2015/16 programme 80 75 0 0 155 Ashley Road - Uppleby Road to Pearson Avenue/Weymouth rd to Cranbroo 70 0 0 0 70 Broadstone Way/Wessex Gate Junction 0 25 0 0 25 Alder rd/Yarmouth rd and Alder rd/Herbert rd Signal Junction Improvements 125 0 0 0 125 Cabot Lane/Broadstone Way Junction capacity and accessibility improveme 2 97 0 0 99 Minor transportation schemes 25 25 0 0 50 Public Transport Alternatives to the Car SW Pass Inf. (Traveline) 7 7 0 0 13 Bus Facilities - shelters 98 63 0 0 161 Creekmoor Bus Shelter 0 9 0 0 9 Fern Barrow Junction Bus Shelter 0 9 0 0 9 Active Travel and Greener Travel Choices Cycling and Walking 2015/16 25 95 0 0 120 Cycling and Walking improvements between Pitwines and High St 236 0 0 0 236 Rigler Road (Twin Sails to Blandford Rd) footway widening 10 0 0 0 10 Rights of Way Improvement (2015/16) 11 15 0 0 26 Dropped Crossings 2015/16 0 41 0 0 41 Travel Safety Measures Road Safety Schemes 2015/16 (20mph zones) 8 130 0 0 138 Road Safety - Safety Improvements - 2016/17 5 205 0 0 210 School schemes 2015/16 49 25 0 0 74 Pedestrian Crossings Signalised (2015/16) 390 275 0 0 665 Canford Heath School Drop Off Zone 0 20 0 0 20
Appendix 3 (i) Capital Programme to 2020/21 Medium Term Scheme Details Planned Planned Planned Planned Financial Programme Programme Programme Programme Plan Total 2017/18 2018/19 2019/20 2020/21 2017 to 2021 £'000 £'000 £'000 £'000 £'000 Ringwood road junction - accessible crossing 0 15 0 0 15 Cabot Lane, Waterloo rd - refuge 0 5 0 0 5 Sherborne crescent - zebra crossings 0 59 0 0 59 Surrey road - Zebra crossing 0 30 0 0 30 Alton rd (Windsor rd) - zebra crossing 0 30 0 0 30 Major Developer Contribution Schemes Hamworthy Park Rail Crossing 13 0 0 0 13 Maintenance - Structures Bridge Maintenance 44 87 0 0 131 Towngate Bridge Concrete repairs 0 50 0 0 50 Canford Bridge East Elevation Pointing 0 200 0 0 200 Street Lighting Street Lighting 2018/19 onwards (post investment project) 0 300 300 0 600 Street Lighting investment project 3,392 300 0 0 3,692 Car Parks Car Park Machines - On Street parking extension near beach 23 0 0 0 23 Car Park Machines - Charging in some Poole Parks 4 0 0 0 4 Car Park Machines - Fortification against theft 32 0 0 0 32 Car Parking Management Solution 57 0 0 0 57 Dolphin Centre Multi Storey Car Park 1,533 25 0 0 1,557 Maintenance - Principal and Non-Principal Roads Skid resistance improvement programme (17) 15 0 0 (2) Micro asphalt programme (Preventative maintenance - 25000m2 micro asp 135 130 0 0 265 Surface dressing (Preventative maintenance - 23,000m2 surface dressing) 121 90 0 0 211 Carriageway sealing (Preventative maintenance - 21,000m2) 33 25 0 0 58 Special Drainage 2016/17 25 85 0 0 110 Surveys & software 2016/17 30 30 0 0 60 Seliot Close Footway 3 0 0 0 3 Preventative Patching 19 0 0 0 19 Structural Maintenance Design Fees 51 40 0 0 91 Buckland Road 26 0 0 0 26 Ringwood Road (including cycleway adjustments) 0 327 0 0 327
Appendix 3 (i) Capital Programme to 2020/21 Medium Term Scheme Details Planned Planned Planned Planned Financial Programme Programme Programme Programme Plan Total 2017/18 2018/19 2019/20 2020/21 2017 to 2021 £'000 £'000 £'000 £'000 £'000 Culliford Crescent 50 0 0 0 50 Gorsehill Crescent 50 0 0 0 50 Lindsay Road (St Aldhelms to Leicester Road) 1 274 0 0 275 Longfleet Road 390 0 0 0 390 Merley Park Road 122 0 0 0 122 Footpath resurfacing 21 20 0 0 41 Wimborne Rd (three phases) 767 0 0 0 767 Sandbanks Rd (Park Rd to Clarence Rd) 161 0 0 0 161 Fernside Rd (Shah of Persia to Civic Centre) 125 0 0 0 125 LTP Unallocated 0 0 560 0 560 Miscellaneous 2016/17 2 0 0 0 2 Queen Anne Drive/Magna Road resurfacing/cycleway 1,063 0 0 0 1,063 Blandford rd (Phase 1 and Phase 2) 860 0 0 0 860 Alder road resurfacing 458 0 0 0 458 Challenge Fund-Officer design/management fees 51 0 0 0 51 DFT Challenge Fund £2.9M 188 0 0 0 188 Richmond road 0 82 0 0 82 Fernbarrow 0 20 0 0 20 Pothole Funding Allocation 2018/19 0 140 0 0 140 Client Fees charged to Highways Maintenance Programme 79 80 0 0 159 Unallocated LTP 0 38 38 Fully developer-funded schemes Public Footpath no 127 Ringwood Road to Old Wareham Road 5 0 0 0 5 Pilkington Tiles Site Blandford Rd 2 0 0 0 2 Asda Car Park Extension (5) 0 0 0 (5) Gillet Road Extension 2 0 0 0 2 Dunyeats/McCauley rd 20 0 0 0 20 Fleets Corner Waterloo Road 9 0 0 0 9 Power Station Site 4 0 0 0 4 Denmark Lane 3 0 0 0 3 Transportation Services - Coastal Protection Coastal Protection - Holes Bay Salt Marsh Regeneration 0 315 85 0 400 Coastal Protection - Creekmoor Flood Alleviation 60 226 0 0 286 Coastal Protection - Sterte Pumping Station Flood Defences 60 330 0 0 390
Appendix 3 (i) Capital Programme to 2020/21 Medium Term Scheme Details Planned Planned Planned Planned Financial Programme Programme Programme Programme Plan Total 2017/18 2018/19 2019/20 2020/21 2017 to 2021 £'000 £'000 £'000 £'000 £'000 Coastal Protection - Whitley Lake Sea Defence Feasibility Study 4 0 0 0 4 Coastal Protection - Central Poole Study 10 0 0 0 10 Coastal Protection - Central Poole Flood Defence 50 250 0 0 300 Coastal Protection - Poole & Christchurch Bays SMP wide Beach Managem 150 107 0 0 257 Coastal Protection - Turlin Moor and Falconer Drive Hamworthy 0 300 0 0 300 Coastal Protection - Fleetsbridge and Hatchpond 0 20 590 0 610 Coastal Protection - Partnership funding for future schemes 0 185 0 0 185 Transportation Services (Other Schemes) Branksome East Viaduct 12 12 Planning and Regeneration Services Suitable Alternative Natural Greenspace (SANG) - Settlement 0 158 0 0 158 Culture & Community Services (Sports & Recreation) Sea Music - Phase 2 - Conservation work 106 0 0 0 106 Ashdown Outdoor Sports Facilities 0 15 0 0 15 Dolphin Swimming Pool 0 150 0 0 150 Upton Country Park Car Park project 327 80 0 0 407 New Beach Huts - Phase 2 (including CCF funding) 27 400 4,227 0 4,654 Shore Road (CCF funded) 40 485 0 0 525 Flaghead (CCF funded) 10 45 0 0 55 Branksome Chine (CCF funded) 10 170 0 0 180 Connectivity (CCF funded) 10 60 0 0 70 Beach huts - minor schemes 50 517 0 0 567 Cliff stabilisation - Preliminaries 111 100 0 0 211 Suitable Alternative Natural Greenspace (SANG) - Creation Phase 2 105 0 0 0 105 Suitable Alternative Natural Greenspace (SANG) - Phase 3 onwards 0 201 0 0 201 Broadstone Rec Sporting Facilities 10 0 0 0 10 Upton Country Park - Heritage Lottery Bid 188 165 0 0 353 Branksome Park Tennis Facility 54 0 0 0 54 Hamworthy Tennis and Netball Facilities 0 15 0 0 15 Environmental and Consumer Services Public Open Spaces and Greenspace Development Hamworthy Park Improvements 80 0 0 0 80 Poole Park - delivery phase 58 681 2,377 405 3,522
Appendix 3 (i) Capital Programme to 2020/21 Medium Term Scheme Details Planned Planned Planned Planned Financial Programme Programme Programme Programme Plan Total 2017/18 2018/19 2019/20 2020/21 2017 to 2021 £'000 £'000 £'000 £'000 £'000 Alderney MUGA 10 0 0 0 10 Branksome East Open Spaces improvements 0 10 0 0 10 Newtown - Turners Nursery 5 71 0 0 76 Belben Road/Bowden Road Play Area 4 0 0 0 4 Fenners Field and Selkirk Close Open Space Improvements 2 0 0 0 2 Blake Hill Viewpoint Improvements 35 0 0 0 35 Broadstone Play Enhancements 2017-2018 42 0 0 0 42 Oakdale Play and Open Space Improvements 35 16 0 0 51 Sterte Esplanade Play 16 0 0 0 16 Canford Cliffs Play Area Improvements 6 32 0 0 38 Other Schemes Fleet Replacement Strategy 1,007 1,555 2,703 890 6,155 Waste Infrastructure - purchase of bins 230 124 0 0 354 Site protection - Existing and Other Sites 24 0 0 0 24
TOTAL PLACE 18,607 16,971 17,378 1,295 54,251
BUSINESS IMPROVEMENT ICT Services Corporate ICT Investment Plan (excluding desktop) 362 286 165 165 978 Strategy Directorate LED Lighting 1 0 0 0 1 Briantspuddle land 177 0 0 0 177
TOTAL BUSINESS IMPROVEMENT 539 286 165 165 1,155
TOTAL PROGRAMME 23,646 35,780 21,826 2,001 83,253
Appendix 3 (i) Capital Programme to 2020/21 BOROUGH OF POOLE
CABINET 6 FEBRUARY 2018
COUNCIL 20 FEBRUARY 2018
JOINT REPORT OF THE CHIEF EXECUTIVE AND THE HEAD OF CHILDREN, YOUNG PEOPLE AND LEARNING
REVIEW OF CHILDREN’S SERVICES CAPITAL STRATEGY 2017- 2021
• EXECUTIVE SUMMARY
• This strategy covers the Medium Term Financial Plan period 2017-2021. • The main priorities for 2017-2021 are as follows: • Basic Need (every child having a school place) • Childcare Sufficiency • Maintained schools and Children’s Centres capital maintenance • Adaptations for individual pupils with disabilities • At this stage the Children’s Services 4 year Capital Programme (2017- 2021) (the Programme) is estimated to be £12.2m • The current Programme estimates that there is approximately £6.4m Government Grant available to deliver the programme. This includes new ring-fenced grant funding of £0.5m to deliver improved local SEND provision. • The Programme identifies £12.2m of work required, which would require the Council to borrow up to £5.8m (£12.2m total current Programme less £6.4m Government Grant funding). The costs of this borrowing to the Council have been factored into the Medium Term Financial Plan. • Department of Education school condition grant funding has reduced in response to the number of schools in Poole converting to Academy status. The majority of the £6.4m grant funding expected to support the Programme is from previous grant allocation and significant savings made on the delivery of the programme. • The Department of Education is due to announce schools capital funding allocations of basic need, school condition and devolved formula capital funding in early 2018. This report will be updated to include this information once the funding allocations have been announced. • Borrowing is required in order to deliver the Programme at its current level. The addition of new schemes to the Programme will increase the
1 Appendix 3 (ii)
Council’s borrowing need, unless alternative sources of funding are secured. • Appendix A sets out the detailed Capital Programme budgets for the current and future years of the Medium Term Financial Plan (MTFP), in the appropriate high level categories i.e. School Condition, Basic Need (school places), and Other (adaptations for disabled pupils, Local Priorities and Government Priorities). • Following the recommendation from the Strategic Programme Board for Hillbourne Masterplan, Cabinet approval is being sought for a budget of up to 0.4m to enable the compilation of a Full Business Case for the rebuilding of Hillbourne Primary School to accommodate the pupils in one building. Final budget approval will be sought in future once design proposals have been developed and a funding package has been identified. The background detail is set out in Appendix C.
1 PURPOSE
1.1 The purpose of this report is to present information regarding the Children’s Services Capital Programme 2017-21.
2 DECISIONS REQUIRED
2.1 That Cabinet and Council note that the strategy covers the Medium Term Financial Plan period 2017-21; 2.2 That Cabinet and Council be recommended to approve: a) The agreed funding priorities 2017-21 as set out in section 4 below. b) The proposal that schemes in the Appendix A should proceed, noting the intention to make further savings from current and future schemes in order to deliver the capital programme as efficiently as possible. 2.3 That Cabinet be recommended to approve: c) That a share of the £0.4m (50% CYP&L and 50% Section106 money) required to develop a Full Business Case for the Hillbourne School site is taken from the educational capital maintenance funding.
3 BACKGROUND
3.1 The sections below set out background information on the priorities, key drivers, and sources of funding for the Children’s Services Capital Strategy 2017-21. 3.2 Appendix A sets out the detailed Capital Programme budgets for the current and future years in the appropriate high level categories i.e. School Condition, Basic Need, Access, Local Priorities and Government Priorities. 3.3 Appendix B gives highlights of the Completed Projects in 2017
2 Appendix 3 (ii)
3.4 Appendix C sets out a summary of the costed options developed in the Outline Business Case for Hillbourne Primary School to support the decision in paragraph 2.2 c) above. 3.5 Appendix D discusses in more detail the potential pressures in school places in the Basic Need Category through the work streams of Pupil Place Planning and Future Housing Developments.
4 CAPITAL STRATEGY PRIORITIES
4.1 The Capital Strategy originally approved in 2007 set out priorities to be used by the Authority and schools to make decisions about spending on school premises. These were grouped under three headings: Statutory Priorities, Local Priorities and Government Priorities. 4.2 Last year, the priorities for the 2016-20 Capital Strategy were agreed as follows: Statutory Priorities • Basic Need - meeting the statutory duty to secure enough school places • Sufficiency - meeting the statutory duty to ensure the sufficiency of childcare places. • Capital maintenance of maintained school and children's centre premises – ensuring the health and safety of school and children's centre premises. • Adaptations to meet the individual needs of disabled pupils. Local Priorities • Providing appropriate accommodation to meet the needs of pupils accessing specialist provision in our special schools. Government Priorities • Meeting the duty to secure free early education for eligible two year olds.
4.3 The Statutory and Local Priorities for 2017-21 remain unchanged from those agreed last year. (The extended entitlement of 30 hours free childcare to support working families which came into effect in September 2017 is included within Statutory Priorities Sufficiency.) 4.4 Appendix A summarises planned capital spend by scheme 2017/18 to 2020/21.
5 SOURCES OF FUNDING
5.1 Historically the Children’s Capital Programme has been delivered principally from Department for Education (DfE) grant funding, with some contributions from third parties (e.g. schools) for specific schemes. There has been a marked reduction in Government grant funding to Poole in recent years – in response to the number of schools converting to Academy status and completion of major change programmes (e.g. Building Schools for the Future).
3 Appendix 3 (ii)
5.2 Based on the latest projections of the capital programme, the Council estimates it will use £1.5m Government Grant funding to finance its Children’s Services capital programme in 2017/18. The majority of residual unspent historic grant funding is already committed to Children’s Services capital schemes over the next 3 years. 5.3 In early 2018 the Education & Skills Funding Agency (ESFA), an executive agency of the Department for Education (DfE), is expected to announce capital funding allocations for 2018-19. This report will be updated once this information is available. In setting its Children’s Services Capital Programme, the Council has adopted a prudent approach, with cautious estimates of future Government grant funding. The Current Programme assumes receipt of £0.2m new School Condition Grant in 2018/19 and no new Basic Need Grant funding over the MTFP. It does include confirmed future allocation of new £0.5m SEND provision funding and £0.1m known Devolved Formula Capital Grant funding. 5.4 Figure 1 below summarises Government Grant funding received and estimated over the MTFP: Actual Estimated Estimated Estimated 2017/18 2018/19 2019/20 2020/21 £ £ £ £ School Condition & Basic Need School Condition 680,993 200,000 0 0 Basic Need 0 0 0 0 680,993 200,000 0 0
Devolved Formula Capital Grant – - non VA 94,359 51,983 0 0 DFC – VA 36,354 25,291 0 0 130,713 77,274 0 0
SEND Provision 0 167,549 167,549 167,549
Total funding allocations 811,706 444,823 167,549 167,549
New Grant Funding 779,921
5.5 The Basic Need allocations announced in April 2016 covered the period 2017/20. Poole was not allocated any funding on the basis that no additional school places are required during this period assuming a level of 2% surplus places. 5.6 The use of Basic Need funding is monitored by the DfE through the annual Capital Spend Data Collection as part of the School Capacity (SCAP) survey. 5.7 Grant allocations for School Condition, LCVAP and DFC for 2017/18 were announced in May 2017. LAs were advised that indicative allocations for 2018/19 would be at the same level as for 2017/18. These are now revised
4 Appendix 3 (ii)
annually to take account of schools changing responsible body i.e. converting to academy status. 5.8 Over 2017/18 another 5 schools have converted to academy status and another school is expected to have converted by 31st March 2018. Only 4 schools within the Borough will be maintained in 2018/19. Of these St Edwards RC CE VA School has a voluntary aided status and is able to draw on Locally Co-ordinated Voluntary Aided Programme (LCVAP) funding 5.9 It is therefore anticipated that the allocations for other schools for School Condition and DFC will be considerably lower than for 2017/18. Allocations for 2018/19 are due to be announced in early 2018. 5.10 The School Condition allocation also includes funding for maintenance of Children’s Centres. 5.11 Poole High was supported by the Capital Programme in 2017/18 with £209k for condition works. Hillbourne Primary School and Winchelsea Special School have significant condition issues in respect of their buildings. 5.12 All the funding is allocated as grant. Basic Need and School Condition grants are directly allocated to the Council for investment. DFC funds are allocated to the Council to passport to schools and LCVAP is held centrally by the ESFA and drawn down by VA schools and Dioceses. 5.13 In addition, Poole was allocated £627,398 grant funding from the Early Years Capital Fund to support the delivery of the extended entitlement of 30 hours free childcare to support working families which came into effect in September 2017. This funding was for two projects to expand the number of childcare places at Cuddles nurseries at Canford Heath and Rossmore. These projects have now been successfully delivered on time and to budget by the private sector provider and the additional places have been provided. 5.14 Based on estimates of new grant funding above the Council is required to borrow £5.8m (£12.2m total current Programme less £6.4m historic and anticipated Government Grant funding). 5.15 It includes an expectation that the Council’s remaining unallocated capital maintenance contingency of £1.9m will be fully utilised by 2019/20 to deliver school condition improvement works.
6 STATUTORY PRIORITIES: BASIC NEED – SCHOOL PLACES
6.1 The Council has a statutory duty under the School Standards and Framework Act 1998 to secure sufficient school places within its area. 6.2 Work streams to consider future Basic Need funding levels have been undertaken through the analysis of pupil place planning and the impact of future housing developments. Commentary on this work may be found in Appendix B. 6.3 In summary: • In the Primary Phase, based on current forecasts it is anticipated that no additional Primary phase places will be needed up 2020/21. Forecasts will be reviewed annually in order to monitor the period beyond 2020/21.
5 Appendix 3 (ii)
• In the Secondary Phase it is planned that the Secondary Schools Steering Group will meet in March 2018 to consider how best to secure the additional places that are forecast to be needed for 2021 to 2023. Following this meeting the Capital Strategy Funding forecasts will be reviewed. • Detailed work is being undertaken between Children’s Services and Strategic Planning to assess the impact of future housing development across the Borough. No funding has been set aside in 2018/19 to meet these projected needs but the proposals are under continuous review and the Strategy will be updated as and when required. At this time projects identified will be reported to Members on an individual basis.
7 STATUTORY PRIORITIES: MEETING THE STATUTORY DUTY TO ENSURE THE SUFFICIENCY OF CHILDCARE 7.1 Local Authorities have a statutory duty to secure sufficient childcare for children aged 0-14 years (up to 18 for children with a disability), so far as is possible, for working parents and parents who are studying or training for employment. 7.2 Local Authorities also have a duty to ensure there are enough Free Early Education places for all 3 and 4 year olds and the 40% most disadvantaged 2 year olds in high quality settings. Appendix B provides details of the completed Early Years projects in 2017. 7.3 Children, Young People and Learning have now undertaken their annual Childcare Sufficiency review of 2017 and have identified that “the Summer 2017 occupancy figures suggests that there are sufficient places for eligible 2 year olds and3 and 4 year olds to take up early education place with an occupancy of 70% across Poole.” 7.4 It is therefore proposed to retain the category of Childcare Sufficiency within the Capital Strategy but no additional funding will be allocated to this category at the present time. It will be kept under review to ensure the adequacy of provision across the Borough in years to come. 8 STATUTORY PRIORITIES: CAPITAL MAINTENANCE – HEALTH AND SAFETY OF SCHOOL PREMISES 8.1 The budget for 2017/21 set aside for Capital Maintenance is set at £3.52M. A breakdown of how these monies are allocated is shown in Appendix A. 8.2 High priority needs are defined as: Priority 1 - urgent works that will prevent immediate closure of premises or address an immediate high risk to the health and safety of occupants or remedy a serious break of legislation. Priority 2 - essential work required within 2 years that will prevent serious deterioration of the fabric or services and/or address a medium risk to the health and safety of occupants and/or remedy a less serious break of legislation. 8.3 The table below sets out details of significant funding allocated in 2017/19 from the contingency for Capital Maintenance.
6 Appendix 3 (ii)
Project Budget Details Winchelsea School £1,200,000 Services Upgrade – Essential Maintenance Works Poole High School £209,000 Essential Maintenance Works
8.4 When smaller projects have been accounted for, the remaining £1.9m has been set aside against the serious conditions need at maintained schools within Poole with £1.5m being set aside at the present time to facilitate a solution at Hillbourne primary School as a priority. An update on this project may be found in Appendix C. 8.5 Conversion to academy status gives schools the opportunity to make bids to the ESFA Condition Improvement Fund or to access the School Condition allocations that larger multi-academy trusts receive from the DfE. Significant levels of funding are available through the Condition Improvement Fund. 8.6 The condition of 2 schools (Hillbourne and Winchelsea) has deteriorated considerably since 2010. In summer 2014 the Borough of Poole submitted to the Department for Education expressions of interest for Hillbourne Primary School and Winchelsea Special School to be included in the Priority School Building Programme 2. These bids were unsuccessful. 8.7 As a consequence Winchelsea School was allocated £1.2M for the most urgent condition and suitability issues of upgrading their services and remodelling their entrance arrangements to enhance the security and safeguarding of the pupils. This funding was approved by Cabinet in April 2017. 8.8 This project is currently in the detailed design phase and is due to commence on site at Easter 2018 with the planned completion by the 1st September 2018.
9 STATUTORY PRIORITIES: MEETING THE INDIVIDUAL NEEDS OF DISABLED PUPILS 9.1 Meeting the needs of disabled pupils to facilitate their attendance at an identified school is met through the Access Projects contained within the Statutory Priorities. 9.2 This funding is mainly allocated to make adaptations to school premises, such as lifts, ramps, acoustic treatments and the provision of hygiene rooms and changing facilities needed to meet individual pupils' specific additional needs. 9.3 As an increasing number of schools have converted to Academy status the funding has been reduced. Advice was sought from Legal Services on whether the Council retained its statutory duty to make such adaptations within academy buildings. The advice received was that the Council does hold a final duty to make reasonable adaptations to secure a place but might reasonably expect that academies will have adjusted their buildings to promote access and will make reasonable adjustments to their current arrangements to provide the necessary access to education without a call on this fund.
7 Appendix 3 (ii)
9.4 As a consequence a policy has been adopted by the LA that during the first year of conversion to an academy that the LA will consider funding minor adaptation projects. 9.5 Now that the majority of the schools in Poole have converted to academy status the funding for this initiative has been set at £50k for 2018/19.
10 LEGAL IMPLICATIONS 10.1 The Council has a statutory duty to secure sufficient school places within its area. 10.2 The law requires Local Authorities to seek proposals to establish an Academy/Free School in the first instance where they identify a need for a new school. 10.3 From 1 April 2008 Local Authorities have a duty to secure sufficient childcare to enable parents to work or to undertake education and training leading to work. This duty was introduced under the Childcare Act 2006. 10.4 The Council, as employer in the case of Community schools and directly managed services such as children's centres, is the main duty holder under Health and Safety law. It has explicit duties to provide and maintain a safe working environment which includes plant and equipment. These include structural stability and responsibility for the management of asbestos materials in premises. It has further duties in respect of systems of work and competence and supervision of its employees. 10.5 The Equality Act 2010 and related Equality Duty 2011 incorporates and reinforces the duties under the Disability Discrimination Act 1995 (DDA) and the SEN and Disability Act 2001 (SENDA). Schools must implement accessibility plans which are aimed at increasing the extent to which pupils with a disability can participate in the curriculum; improving the physical environment of schools to enable pupils with a disability to take better advantage of education, benefits, facilities and services provided; and improving the availability of accessible information to pupils with a disability. 10.6 Local Authorities must, for the schools for which they are responsible, prepare an accessibility strategy based on the same principle as the accessibility plans for schools. The accessibility strategy applies therefore to local authority maintained schools, nurseries, children’s centres and early years settings. It does not apply to academies, free schools, or private nursery providers on school sites who must produce their own accessibility strategy in accordance with the Equality Act.
11 FINANCIAL IMPLICATIONS 11.1 Appendix A shows the projects that are currently being undertaken as part of the Children’s Services Capital Strategy. 11.2 The costs accommodating Hillbourne Primary School within one building and improving the suitability of Winchelsea School’s accommodation is not affordable within the current capital allocations. Discussions with the DfE and RSC are ongoing to ensure the funds available to Poole are used to best effect and to secure the strategic priorities of the DfE, the schools and the Council. 8 Appendix 3 (ii)
Details may be found in Appendix C on the current status of the Hillbourne Primary School Project. 11.3 In December 2016 the DfE published the government’s response and new proposals for consultation on the High Needs national funding formula and other reforms. This document refers to a new special provision capital fund of at least £200m (over and above basic need funding which can also be spent on SEN places) which will be allocated to help build new places at mainstream and special schools, and to improve existing places. Local authorities, through consultation with local stakeholders, will decide how best to spend their allocation to meet local needs. The fund, totalling £500k for Poole is due to be allocated over a three year period at £167k / annum. This funding needs to be aligned to the development of a strategic plan for SEND and the revenue funding from the High Needs Block of the Dedicated School’s Block. This plan must be published to enable funding to be drawn down.
11.4 All budgetary savings from completed projects are returned to the Children’s Services Capital Programme. Unspent resource is therefore available as funding for new projects in the Programme.
12 RISK MANAGEMENT IMPLICATIONS 12.1 The objectives of accommodating Hillbourne Primary School within one building and improving the suitability of Winchelsea School’s accommodation will not be achieved unless additional funding can be secured. Discussions are ongoing with the DfE and the EFA but there are no guarantees that these will result in additional funding. 12.2 It is expected that all schools will have converted to academy status by the end 2019/20 at which point the Council will no longer be the responsible body for condition maintenance for any schools. Grant allocations for School Condition will be revised annually to take into account schools changing responsible body. Therefore, the level of funding is reducing and will shortly reach a point where Poole is allocated no School Condition funding. The Council will hold responsibilities as landlord for all of these leasehold academies.
13 CONCLUSION 13.1 The strategy covers the Medium Term Financial Plan period 2017-2021. A programme consisting of schemes totalling £12.2m is put forward for approval. 13.2 The majority of funding for the Children’s Services Capital Programme 2017- 2021 has been secured or accounted for. We await DfE confirmation of 2018/19 School Condition Grant allocation. For the purposes of financing the programme, a relatively modest sum of £0.2m has been assumed. £5.8m borrowing will need to be accessed by the Council in order to fully fund the Basic Need (school places) priority, including the project to expand Carter Community School. This will be a cost to the Council. The annual revenue cost of repaying £5.8m borrowing has been included within the Council’s MTFP.
9 Appendix 3 (ii)
13.3 Members are asked to note the intention to continue delivering the capital programme as efficiently as possible in order to make further savings from current and future schemes.
Andrew Flockhart Chief Executive
Vicky Wales Head of Children, Young People and Learning
Appendix A: Capital Programme Monitoring Sheet – Children’s Services Appendix B: 2017 Completed Projects – Detail
Appendix C: Hillbourne Primary School – Feasibility Appendix D: Basic Need Forecasting – Pupil Place Planning and Housing Developments
Contact officers:
Helen Rice Principal Asset Planning and Development Manager Children, Young People and Learning 01202 633691 [email protected]
Shirley Haider Management Accountant Financial Services 01202 633528 [email protected]
10 Appendix 3 (ii)
APPENDIX B COMPLETED PROJECTS - 2017
Lilliput CE VC Infant School • The capital project has recently been completed at Lilliput CE Infant School to replace temporary accommodation with permanent accommodation. • In February 2016 Cabinet and Council gave approval for the project budget of £1.575m. • Construction work got underway during the summer holiday 2016. The three class base extension and internal alterations were completed in February 2017 with the removal of the modular building and reinstatement of the car park undertaken during the summer holiday 2017.
Early Years Education Entitlement – Cuddles Expansion (Rossmore and Canford Heath) • The maximum Free Early Education entitlement was increased by the Government entitlement to 30 hours per week for the 3 and 4 year olds of working families from September 2017. In order for families to be able to work or extend current working hours there is a need to ensure high quality, flexible all year round childcare places across the Borough. • In April 2016 the Education Funding Agency announced that capital grants would be available to early years settings through a local authority bidding process to support the delivery of the extended entitlement of 30 hours free childcare. • On 30th December 2016 the DfE announced the outcome of the bidding round. The two Cuddles projects at Canford Heath and Rossmore were approved. Both projects have been allocated the full amount of funding requested. The total grant funding secured was £627,398. • These two projects have now been completed ahead of September 2017 and created an additional 156 places for 30 hours as committed to in the bidding round.
11 Appendix 3 (ii)
APPENDIX C
HILLBOURNE PRIMARY SCHOOL – FEASIBILITY
Background –2016/17 • Hillbourne Primary School is currently accommodated in the former First school buildings (Acorns and Little Acorns) and the former Middle school building (Oaks). It has been a long-standing objective that the whole school should be accommodated in one building and so a feasibility study was undertaken in 2016/17 to consider which of the two buildings (Oaks and Acorns) would be the more suitable to accommodate the whole school and determine the estimated costs of the works required to address the high priority condition needs and to extend and remodel the buildings. • The estimated costs of addressing the high priority condition needs are £820k for Priority 1 and £600k for Priority 2. Total = £1.4m. • If Priority 3 works (required to be undertaken within 5 years of the 2015 survey ie. by 2020) are included, estimated costs increase to £2.8m. • Two options for each building (Oaks and Acorns/Little Acorns) were developed and costed. All options would address the high priority condition needs of the building and included the additional of a 52 place nursery to provide the local area with sufficient childcare places. • To put the costs of the options for accommodating the school in one of the existing buildings in context, the consultancy team were also asked to consider a basic feasibility appraisal of the overall site for the provision of a new build 2 FE school with nursery. Three possible locations for the new build school were identified. • All the options considered identify the proposed site area for the school and show the area of remaining site that could be released for other purposes. The lack of funding available resulted in other options being considered. • In November 2016 the Delta Trust identified the Hillbourne site as a possibility for the siting of their new free school. The new Harbour School will provide Secondary places for 60 pupils who are identified with needs on the autistic spectrum with speech and language and related anxiety. If the free school development could draw in additional government funding, it would help to deliver the long-standing objective of moving Hillbourne Primary School into one building. • A Masterplan was commissioned to consider the siting of the two schools on the same site. However in early 2017 the Harbour School agreed with Dorset County Council to site the school on the Bovington School site in Dorset. Following this decision the Borough has revisited the project in the form of an Outline Business Case – January 2018.
12 Appendix 3 (ii)
Outline Business Case 2018 - Update • The masterplan has therefore been revisited in December 2017 and an Outline Business Case presented to the Strategic Programme Board for Hillbourne Masterplan in January 2018. • This Outline Business Case has considered the two options of refurbishing the Oaks Building (as it is the larger of the two and requires less work to be undertaken) and a New Build Option in the middle of the site (as the whole life costings for this proposal offer improved value for money for the project). It is proposed that the remainder of the site will be disposed of under a Section 77 application to the Secretary of State to facilitate housing in the area. • A funding gap of circa £2.8m and £2.5m respectively has been identified for this project at the OBC stage. • It is therefore proposed, subject to member approval, to allocate up to £400k to compile a Full Business Case to look in more detail at the estimated costings relating to this school and consider in more detail how the funding gap might be bridged.
13 Appendix 3 (ii)
APPENDIX D
Basic Need Forecasting – Pupil Place Planning and Future Housing Developments
Primary Phase • The growing demand for overall Primary places, (Reception to Year 6), will continue to 2018/19 as the larger cohorts of pupils, resulting from the rise in births and migration, move through the Primary school system. Thereafter, to 2020/21, current forecasts suggest overall Primary pupil numbers will begin to fall back slightly. • There was a sharp increase in the number of Reception pupils in September 2014, by 172, (11%). The Reception intake remained at this higher level for September 2015 and 2016. • In September 2017, Reception pupil numbers dropped by 9%. This is driven largely by the fall in the number of births in 2012/13. • For September 2018 to 2020 Reception pupil numbers are likely to remain relatively stable at this lower level, as birth and GP data for 0 year olds suggest a continuation of the lower births for this three year period. • This lower number of pupils will flow through the year groups, with Junior school entry in Year 3 experiencing a similar fall in the number of pupils in September 2020. • In September 2018 to 2021, the number of pupils in Reception is likely to sit between the levels of 2011/12 and 2013/14. Currently, there are a higher number of Reception places available than were for 2011/12 to 2013/14. Therefore there will be higher levels of surplus when pupil numbers fall. • However, the total number of Reception places across Poole is likely to reduce, as schools anticipate the reduced number of pupils. Old Town Infant School and Nursery has indicated its intention to reduce its Published Admission Number (PAN) from 90 to 60 for 2019/20. Sylvan Infant School has indicated its intention to reduce its PAN from 120 to 90 for 2019/20. The level of surplus Reception places is likely to increase to between 12%-14% for 2017/18 to 2019/20; this equates to 200+ surplus Reception places across Poole for these years. • Surplus places are needed to ensure that there are school places for people moving into and within Poole. The accommodation of parental preference also requires surplus capacity. Currently surplus places are concentrated in a small number of schools and, as a result these under-subscribed schools can face challenges in planning their budget and staffing. • In addition, Branksome Heath Junior School has indicated its intention to reduce its Y3 PAN from 150 to 120 for 2020/21. This reduction was planned to follow the reduction of PAN at Sylvan Infant School from 150 to120 for 2017/18. • Therefore, based on current forecasts it is anticipated that no additional Primary phase places will be needed up 2020/21. Forecasts will be reviewed annually in order to monitor the period beyond 2020/21.
14 Appendix 3 (ii)
Secondary Phase • In February 2016 Cabinet and Council approved the strategy proposed by the Secondary Schools Steering Group as follows: • The additional Secondary school places needed over the period 2019 to 2025 should be secured through the expansion of existing schools; • A new Secondary school is therefore not required up to September 2026 at least; • Proposals for securing the additional places needed for September 2019 should be taken forward; • Carter Community School should expand by two forms of entry (60 places) in September 2019. • The capacity of Carter Community School will increase from 600 places (5 year groups of 120) to 900 places (5 year groups of 180). The estimated costs, derived from the second stage feasibility study report in January 2015, are in the region of £6.5m to £7m for completion in 2019. Detailed costings for this project will be submitted to Members for approval in March 2018 when the detailed design has been completed and before tenders are sought for the build phase of the project. • The Capital Funding Needs Analysis 2017-2021 includes a budget allowance of £7m for the costs of expanding Carter Community School in September 2019. • The Secondary Schools Steering Group decided that it was too soon to make concrete plans for securing the further additional school places needed from 2021 to 2023. As trends continue to change over time, the fine tuning of the number of places that are required will continue. • In deciding that it was too soon to make concrete plans for securing the further additional places needed from 2021 to 2023, the Secondary Schools Steering Group agreed that they would re-convene in 2017. In the light of availability of updated data, it was decided that the Steering Group should delay meeting until early 2018. It is planned that the Group will meet in March 2018 to consider how best to secure the additional places that are forecast to be needed for 2021 to 2023.
Housing developments • The Council is currently reviewing the Poole Local Plan which will set out an updated plan to meet needs and guide development up to 2033. The review has included a consultation to consider how best to accommodate the 14,200 new homes that are needed in Poole by 2033. Land has already been identified for 9,200 of these homes but this leaves a shortfall of 5,000 homes. One of the options to meet this housing shortfall is to expand the town outwards and 9 possible sites in the surrounding countryside have been identified. BoP Planning and Regeneration Services have advised that three sites are likely to be developed over the period 2018 to 2030 and will deliver approximately 3,500 homes. This is likely to generate a need for 2-3 additional forms of entry in all year groups.
15 Appendix 3 (ii)
• As the possible housing developments in the Merley and Bearwood area are located on the border between Poole, Dorset and Bournemouth, officers have been working with Bournemouth Borough Council and Dorset County Council to consider the impact on the need for school places in this area in order to make strategic plans for securing any additional places required and to secure contributions from developers for the costs of these places. This work is ongoing. • A high level feasibility assessment has been commissioned to consider the capacity to expand Bearwood Primary School and Merley First School. Dorset County Council has also commissioned studies for its Primary phase schools in this area. The information gathered through these assessments is being used to develop the strategic plans for securing the additional school places. • The fall in births in 2012/13 has resulted in significant numbers of surplus places in Year R in 2017; as children move through the education system, the same fall in births will result in significant surplus in Year 3 in September 2020 and Year 7 in September 2024. Birth and GP data for 0 year olds for 2013/14 and 2014/15 suggest a continuation of the lower births for these years. If births remain at this level in future years, and assuming that schools retain their existing capacity, it is possible that there would be capacity in the Primary phase to accommodate children arising from housing developments in some parts of the town without the need for additional places. • The developing strategy for securing Secondary school places from 2021 will consider the need for additional school places in the future to accommodate pupils who are already in the education system. The strategy will not include places that will be needed as a result of housing development. This is because it not possible to predict with certainty the phasing of development or the age of the children that will occupy new homes. • The three major developments that are planned to come forward in North Poole are likely to generate additional pupil pressures during the period 2017 to 2021. There is no surplus capacity in the local Primary phase schools, Bearwood Primary School and Nursery, and Merley First School. High level studies have indicated that expansion at both schools is feasible. Expansion at the First School will mean that expansion is also required at Middle School level. No funding has been identified for expansion projects. Work is currently taking place with Bournemouth Borough Council and Dorset County Council to consider Secondary capacity in connection with the North Poole developments.
16 Appendix 3 (ii)
APPENDIX A BOROUGH OF POOLE
CHILDREN'S SERVICES SUMMARY CAPITAL PROGRAMME
Medium Term Scheme Details Planned Planned Planned Planned Financial Programme Programme Programme Programme Plan Total 2017/18 2018/19 2019/20 2020/21 2017 to 2021 £'000 £'000 £'000 £'000 £'000
PEOPLE - CHILDREN Basic Need - Pupil Place Requirements Carter Community College 400 3600 3000 0 7,000 Ocean Academy 64 111 0 0 175 Basic Need Contingency 0 100 12 0 112 Lilliput CE VC Infant School 215 60 0 275 Needs analysis and master planning 34 60 0 0 94 Oakdale Junior School 4 0 0 0 4 Longfleet CE VC Primary School 15 0 0 0 15 Access to Schools Access projects 20 50 0 0 70 Hillbourne Access project 11 0 0 0 11 School Improvement Contingency for Capital Maintenance 30 1810 100 0 1,940 Condition Surveys 26 0 0 0 26 Turlin Moor Condition works 5 0 0 0 5 Fire safety audits 7 0 0 0 7 Hillbourne ICT Renewal 37 0 0 0 37 Winchelsea Toilets 1 0 0 0 1 Winchelsea School Improvement Works 150 1050 0 0 1,200 Hillbourne School - Toilets 6 15 0 0 21 Poole High School 74 135 0 0 209 Old Town Children's Centre 2 0 0 0 2 Other Priorities and Old Schemes Early education for 2 year olds 0 26 0 0 26 Sylvan First - Pinnochio Nursery 20 0 0 0 20 Early Years Capital - Canford Heath 224 0 0 0 224 Early Years Capital - Rossmore 122 0 0 0 122 SEND provision 0 168 168 168 503 Devolved Formula Capital & Other Schemes Education Schools Formula Capital 94 52 0 0 146
TOTAL PEOPLE - CHILDREN 1,562 7,237 3,280 168 12,246
Appendix 3 (ii A) BOROUGH OF POOLE - VEHICLE CAPITAL PROGRAMME - PRUDENTIAL BORROWING ANALYSIS (Number of Vehicles due to be replaced)
Financial Financial Financial Financial Department Section Vehicle Make Category Year Year Year Year (2017/18) (2018/19) (2019/20) (2020/21)
A - Standard Vehicle - Minor Modifications, e.g. Van with Beacon Bar
Adult Social Care Ford Transit connect T200 SWB A 1 Childrens Services Citroen Dispatch Combi A 1 Cultural Ford Ranger 4 x 2 pickup A 1 Democratic Services Citroen Nemo 1.4HDi LX A 1 Democratic Services Ford Transit - Panel Van A 1 ECPS Citroen Berlingo A 1 ECPS Citroen Dispatch 1000 L1 H1 90 A 2 ECPS Citroen Dispatch A 1 ECPS Citroen Dispatch Combi A 1 ECPS Citroen Dispatch A 1 ECPS Citroen Nemo 1.4HDi LX A 4 ECPS Ford Fiesta Van A 1 3 ECPS Ford Ranger 4 x 2 pickup A 1 ECPS Ford Ranger 4 x 4 pickup A 2 1 ECPS Ford Ranger 4 x 4 A 1 ECPS Ford Transit connect 200 A 1 ECPS Ford Transit connect T200 SWB A 1 1 ECPS Mitsubushi L200 A 1 Transportation Citroen Airdream Camera Car A 1 Transportation Citroen Dispatch A 4 Transportation Citroen Nemo 1.4HDi LX A 1 1 Transportation Ford Transit connect T200 SWB A 1 Transportation Ford Transit Connect A 3 Transportation Moped 50CC A 1 Transportation Volkswagon MPV - Sharan 1.9TDi A 2 Tricuro Citroen Dispatch Combi A 4
B - Standard Vehicle - Major Bodywork Modifications e.g. Refuse Vehicle, Tipper
Cultural Citroen Berlingo XTR+ B 1 ECPS Bin Lift 3.5T Plastic Body B 2 ECPS Citroen Berlingo XTR+ B 3 ECPS DAF - 18T Tipper with Crane B 1 ECPS DAF - 18T Tipper B 1 ECPS DAF - Truck - (HIAB) - FA LF 45.150 B 1 ECPS Daf 7.5T dropside B 1 ECPS DAF -Tipper - FA LF 45.150 B 1 ECPS Dennis - Crash Cushion B 1 ECPS Dennis RCV 18-26T B 2 2 ECPS Derby 3.5T Plastic Body Tail Lift B 2 ECPS Fiat Ducato Dropside (Fantail) B 1 ECPS Ford Transit Tipper B 5 ECPS Gator 4x4 B 1 ECPS Geesink Norba RCV 26T B 2 ECPS Iveco Tipper - 45C11 B 1 ECPS Iveco Tipper 3.5T B 1 ECPS Iveco Transit Crew Cab Tipper with Tail-L B 1 ECPS Johnston 600 Sweeper B 3 ECPS Muniserv RCV 7.5T B 3 ECPS Skip Vehicle 18T B 1 Transportation FIAT Ducato Accessible Bus 3.5-5T B 5 1 Transportation Ford Transit Minibus B 1 Tricuro Vauxhall Vivaro Minibus B 1
Appendix 3 (iii) C - Specialist Vehicle - Specific Build or specialist Operations e.g. Compact Sweeper, Tractor or Plant / Equipment
Cultural John Deere Tractor C 1 Cultural Quadzilla Quad bike (4x4) C 1 ECPS Amazone Profihopper PH1250 C 1 ECPS Barber - Beach Rake C 1 ECPS BOMAGG Pedestrian Roller BW135 C 1 ECPS Caterpillar Telehandler TH407C C 1 ECPS Edging Machine C 5 ECPS Greenmech - Tracked Chipper - 1030 C 1 ECPS Hako City 1250 Sweeper C 1 ECPS Harrow C 1 ECPS Hayter 48 Professional 496H C 3 ECPS Hedgecutter Attachment C 1 ECPS Honda FG315 rotovator C 1 ECPS Idrobenne C 1 ECPS Ifor Williams 3.5T LM146B C 1 ECPS Ifor Williams GX106 Trailer C 2 ECPS Ifor Williams P7E trailer (with EZ0494 C 1 John Deere 1565 Ride on with ECPS 62" Deck C 6 John Deere 1565 Ride on with ECPS 72" Deck C 1 ECPS John Deere 1565 C 1 ECPS John Deere 3720 tractor C 1 ECPS John Deere H340 6125R C 1 ECPS John Deere Ride on Rotary X748 C 1
ECPS John Deere X758 Ride on Mower C 1 ECPS Komatsu - Excavator - F71165 - DIG C 1 ECPS Komatsu - Excavator - PC16R-3HS - D C 1 ECPS Komatsu - Excavator - PC35-MR3 - D C 1 Kombi Mark 3 with knib Line ECPS Marker C 2 ECPS Macauley 14T Tipping Trailer C 1 ECPS Macauley Low Loader 18T - AZLL187 C 1 ECPS Morooka - Tracked Dumper - 3784 C 1 ECPS Ransomes Cylinder Ride-On Mowe C 1 ECPS Ryetec 1600C Flail collector C 1 ECPS Ryetec 2000CHS Flail Collector C 2 ECPS Schmidt Swingo Sweeper C 5 ECPS Stihl - average C 1 ECPS Stihl BG600 Back Pack Blower C 1 ECPS Stihl BG86 Blower C 1 1 ECPS Stihl FS460c Strimmer C 1 ECPS Stihl FS90 Strimmer C 1 ECPS Stihl HS86 Hedgecutter C 1 ECPS Stihl KM90R Kombi C 1 ECPS Stihl Pole Pruner C 1 ECPS Stihl TS410 Disc Cutter C 1 ECPS Toro 53cm Commercial WPM C 3 ECPS Trimax FX155 Flail Deck C 3 ECPS Wessex Roller Mower RMX500 C 2 ECPS Wheel Loader 950K C 1 ECPS Wheel Material Handler M318 C 1
Total Numbers 40 45 35 44
Total Estimated Cost 1,007,020 1,554,700 2,702,500 890,150
Note
Vehicles have been scheduled for replacement based on the judgement of the Council's Fleet Manager. Consideration has been given to the age / suitability of each vehicle on the list. The vehicles have been categorised to provide assistance to both Procurement / Audit Service to ensure that they are purchased within the proper frameworks ensuring value for money. This can be OEUJ tenders, Mini Competitions, SecondHand, Operating Leases etc. The Fleet Manager ensures that the vehicle fleet remains fit for purpose and affordable , both now and for the future replacements. There are various factors which can result in changes to the agreed profile (slippage) such as Changes in Council Policy, Newer technology , Availability / Supplier Lead times , Officer Capacity , Financial Constraints.
Appendix 3 (iii) BOROUGH OF POOLE
AUDIT COMMITTEE
11 JANUARY 2018
CABINET
6 FEBRUARY 2018
COUNCIL
20 FEBRUARY 2018
TREASURY MANAGEMENT STRATEGY STATEMENT 2018/19 PART OF PUBLISHED FORWARD PLAN: YES
STATUS – STRATEGIC POLICY
1 Purpose & Policy Content
1.1 In accordance with the Council’s Treasury Management Policy, the purpose of this report is to present to Members the Treasury Management Strategy Statement and Prudential Indicators for the 2018/19 financial year.
2 Decisions Required
Audit Committee is asked to recommend that Cabinet and Council approve; 1) 2018/19 Treasury Management Strategy for the Council including the Housing Revenue Account.
2) The Annual Minimum Revenue Provision (MRP) statement explaining the policy for making a prudent minimum revenue provision in 2018/19, noting the briefing paper on potential future changes to MRP attached as Appendix C.
3) The revised Prudential Indicators for 2017/18 and future years 2018/19 to 2020/21, attached as Appendix D.
4) The Treasury Policy, Practices and Procedures document, attached as Appendix E, noting that an updated version that aims to create greater consistency in practice between Poole and Bournemouth will be presented during the 2018/19 financial cycle.
3 Background
3.1 The Council has adopted the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2011 Edition (the CIPFA Code), which requires the Council to approve a treasury 1
management strategy before the start of each financial year. CIPFA consulted on changes to the Code in 2017 (to take effect from 1 April 2018), but is at the time of writing, yet to publish a revised Code.
3.2 In addition, the Department for Communities and Local Government (CLG) issued revised Guidance on Local Authority Investments in March 2010 that requires the Council to approve an investment strategy before the start of each financial year.
3.3 This report fulfils the Authority’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the CLG Guidance.
3.4 Poole Council has borrowed and invested substantial sums of money, and is therefore exposed to financial risks including the loss of invested funds and the revenue effect of changing interest rates. The successful identification, monitoring and control of risk is central to the Authority’s Treasury Management Strategy.
3.5 In accordance with the CLG Guidance, should the assumptions on which this report is based change significantly, the Council will be asked to approve a revised Treasury Management Strategy Statement. Such circumstances include, for example, a large unexpected change in interest rates, or borrowing needs, or in the level of its investment balance.
4 External Context
4.1 Economic background: The major external influence on the Authority’s treasury management strategy for 2018/19 will be the UK’s progress in negotiating its exit from the European Union and agreeing future trading arrangements. The domestic economy has remained relatively robust since the 2016 referendum, but there are indications that uncertainty over the future is now weighing on growth. Transitional arrangements may prevent a cliff-edge, but will also extend the period of uncertainty for several years. Economic growth is therefore forecast to remain sluggish throughout 2018/19.
Consumer price inflation reached 3.0% in September 2017 as the post- referendum devaluation of sterling continued to feed through to imports. Unemployment continued to fall and the Bank of England’s Monetary Policy Committee judged that the extent of spare capacity in the economy seemed limited and the pace at which the economy can grow without generating inflationary pressure had fallen over recent years. With its inflation-control mandate in mind, the Bank of England’s Monetary Policy Committee raised official interest rates to 0.5% in November 2017.
In contrast, the US economy is performing well and the Federal Reserve is raising interest rates in regular steps to remove some of the emergency 2
monetary stimulus it has provided for the past decade. The European Central Bank is yet to raise rates, but has started to taper its quantitative easing programme, signalling some confidence in the Eurozone economy.
4.2 Credit outlook: High profile bank failures in Italy and Portugal have reinforced concerns over the health of the European banking sector. Sluggish economies and fines for pre-crisis behaviour continue to weigh on bank profits, and any future economic slowdown will exacerbate concerns in this regard.
Bail-in legislation, which ensures that large investors including local authorities will rescue failing banks instead of taxpayers in the future, has now been fully implemented in the European Union, Switzerland and USA, while Australia and Canada are progressing with their own plans. In addition, the largest UK banks will ringfence their retail banking functions into separate legal entities during 2018. There remains some uncertainty over how these changes will impact upon the credit strength of the residual legal entities.
The credit risk associated with making unsecured bank deposits has therefore increased relative to the risk of other investment options available to the Council; returns from cash deposits however remain very low.
4.3 Interest rate forecast: The Council’s treasury adviser Arlingclose’s central case is for UK Bank Rate to remain at 0.50% during 2018/19, following the rise from the historic low of 0.25%. The Monetary Policy Committee re-emphasised that any prospective increases in Bank Rate would be expected to be at a gradual pace and to a limited extent.
4.4 Future expectations for higher short term interest rates are subdued and on- going decisions remain data dependant and negotiations on exiting the EU cast a shadow over monetary policy decisions. The risks to Arlingclose’s forecast are broadly balanced on both sides. The Arlingclose central case is for gilt yields to remain broadly stable across the medium term. Upward movement will be limited, although the UK government’s seemingly deteriorating fiscal stance is an upside risk.
4.5 A more detailed economic and interest rate forecast provided by Arlingclose is attached at Appendix A.
4.6 For the purpose of setting the budget, it has been assumed that new investments will be made at an average rate of 0.63%, and that new long-term loans will be borrowed at an average rate of 1.57%. Borrowing rates are based on current 3 year loan offers from local authorities.
3
5 Local Context
5.1 On 31 December 2017, the Council held £91.0m of borrowing and £56.9m of treasury investments. This is set out in further detail at Appendix B. This is a snapshot, at a point in the year when the Council is still in receipt of monthly cash inflows from Council Tax and Business Rates. By the end of the year the Council expects its net treasury investments to decrease to £23.9m. Forecast changes over the Medium Term Financial Plan are shown in Figure 1 below.
Figure 1: Balance sheet summary and forecast to 31 March 2021
31.3.17 31.3.18 31.3.19 31.3.20 31.3.21 Actual Estimate Forecast Forecast Forecast £m £m £m £m £m General Fund CFR 55.6 64.9 78.4 81.2 78.5 HRA CFR 95.0 86.4 83.0 82.6 90.2 Council CFR 150.6 151.3 161.4 163.8 168.7 Less: External borrowing (9.9) (9.9) (21.1) (23.9) (23.3) General Fund Less: External borrowing HRA (81.6) (81.2) (80.8) (80.4) (88.1) Council External Loans 91.5 91.1 101.9 104.3 111.4 Internal borrowing General 45.7 55.0 57.3 57.3 55.2 Fund Internal borrowing HRA 13.4 5.2 2.2 2.2 2.1 Council Internal Borrowing 59.1 60.2 59.5 59.5 57.3 Less: Usable reserves (52) (39.1) (28.3) (17.6) (16.8) Less: Working capital (debtors, (34.9) (45.0) (45.0) (45.0) (43.0) creditors, receipts in advance) Investments & Cash 27.8 23.9 13.8 3.1 2.5
5.2 The underlying need to borrow for capital purposes is measured by the Capital Financing Requirement (CFR), while usable reserves and working capital are the underlying resources available for investment. The Council’s current strategy is to maintain borrowing and investments below their underlying levels, sometimes known as internal borrowing.
5.3 The Council estimates its CFR will increase over the MTFP as a result of schemes for which borrowing is anticipated. These include Fleet Replacement, Street Lighting, Figbury Lodge and Carter School. £16.5m new General Fund borrowing is anticipated over the MTFP to deliver these projects. This will further increase should new schemes that require external borrowing be approved.
4
5.4 In addition, the HRA anticipates new external borrowing of £8.1m in 2020/21 in order to undertake local housing improvements. This new borrowing is made possible from the transfer of non-housing asset debt of £8.1m in 2017/18 (solar panels on HRA properties) and £3.0m in 2018/19 (garages not earmarked for housing development) from the HRA to the General Fund. By 31 March 2021 the HRA is projected to have total debt of £90.2m (£88.1m PWLB loans + £2.1m internal borrowing). This compares with a Government prescribed debt cap of £99.8m. The HRA will bear the interest cost of PWLB borrowing.
5.5 CIPFA’s Prudential Code for Capital Finance in Local Authorities recommends that the Council’s total debt should be lower than its highest forecast CFR over the next three years. Figure 1 shows that Poole Council meets this requirement over the MTFP.
5.6 Reserves are forecast to reduce over the MTFP period – including £10m use of capital contingency reserve on capital schemes including Seafront Development, Carter Community College, ICT infrastructure, Upton Country Park and part financing of the Figbury Lodge development.
5.7 The lower the level of reserves and working capital available to help finance the Council’s capital programme, the higher the requirement for external borrowing.
6 Borrowing Strategy
6.1 Whilst the Council may require short term borrowing at the year end to cover daily cashflow operational needs, no new external loans are anticipated in 2017/18. The balance sheet forecast in Figure 1, however, shows that by the end of 2018/19 the Council anticipates new borrowing of up to £11m, with regard to Figbury Lodge and Carter School projects. Some of this financing requirement could be sourced from internal borrowing. The exact financing model will be determined by Officers in conjunction with advice from the Council’s independent advisers, Arlingclose.
6.2 The Council may also borrow additional sums to pre-fund future years’ requirements, providing this does not exceed the authorised limit for borrowing of £161.4 million.
6.3 Objectives: The Council’s chief objective when borrowing money is to strike an appropriately low risk balance between securing low interest costs and achieving certainty of those costs over the period for which funds are required. The flexibility to renegotiate loans should the Council’s long-term plans change is a secondary objective.
6.4 Strategy: Given the significant cuts to public expenditure and in particular to local government funding, the Council’s borrowing strategy continues to address the key issue of affordability without compromising the longer-term stability of the 5
debt portfolio. With short-term interest rates currently much lower than long-term rates, it is likely to be more cost effective in the short-term to either use internal resources, or to borrow short-term loans instead. The Council has used this approach to help finance local commercial property investment in the last 2 years.
6.5 By doing so, the Council is able to reduce net borrowing costs (despite foregone investment income) and reduce overall treasury risk. The benefits of internal and short-term borrowing will be monitored regularly against the potential to incur additional costs by deferring borrowing into future years, when long-term borrowing rates are forecast to rise modestly. Arlingclose will assist the Council with this ‘cost of carry’ and breakeven analysis. Its output may determine whether the Council borrows additional sums at long-term fixed rates in 2018/19 with a view to keeping future interest costs low, even if this causes additional cost in the short-term.
6.6 The Council may also arrange forward starting loans during 2018/19, where the interest rate is fixed in advance, but the cash is received in later years. This would enable certainty of cost to be achieved without suffering a cost of carry in the intervening period.
6.7 In addition, the Council may borrow short-term loans to cover unplanned cash flow shortages.
6.8 Sources of borrowing: The approved sources of long-term and short-term borrowing are:
• Public Works Loan Board (PWLB) and any successor body • any institution approved for investments (see below) • any other bank or building society authorised to operate in the UK • UK public and private sector pension funds (except Dorset CC Pension Fund) • capital market bond investors • UK Municipal Bonds Agency plc and other special purpose companies created to enable local authority bond issues
6.9 Other sources of debt finance: In addition, capital finance may be raised by the following methods that are not borrowing, but may be classed as other debt liabilities:
• operating and finance leases • hire purchase • Private Finance Initiative • sale and leaseback
6
The Council has previously raised the vast majority of its long-term borrowing from the PWLB but it continues to investigate other sources of finance, such as local authority loans and bank loans, which may be available at more favourable rates.
6.10 Municipal Bonds Agency: UK Municipal Bonds Agency plc was established in 2014 by the Local Government Association as an alternative to the PWLB. It plans to issue bonds on the capital markets and lend the proceeds to local authorities. This will be a more complicated source of finance than the PWLB for two reasons: borrowing authorities will be required to provide bond investors with a joint and several guarantee to refund their investment in the event that the agency is unable to for any reason; and there will be a lead time of several months between committing to borrow and knowing the interest rate payable. Any decision to borrow from the Agency will therefore be the subject of a separate report to Council.
6.11 LOBOs: The Council does not hold any LOBO (Lender’s Option Borrower’s Option) loans, where the lender has the option to propose an increase in the interest rate at set dates, following which the Council has the option to either accept the new rate or to repay the loan at no additional cost.
6.12 Short-term and variable rate loans: These loans would leave the Council exposed to the risk of short-term interest rate rises and are therefore subject to the limit on the net exposure to variable interest rates in the treasury management indicators below. The Council would only ever take out short term borrowing in the event of unforeseen cashflow circumstances.
6.13 Debt rescheduling: The PWLB allows authorities to repay loans before maturity and either pay a premium or receive a discount according to a set formula based on current interest rates. Other lenders may also be prepared to negotiate premature redemption terms. The Council may take advantage of this and replace some loans with new loans, or repay loans without replacement, where this is expected to lead to an overall cost saving or a reduction in risk. The Council continues to monitor whether it is more cost effective to refinance historic PWLB loans. At this time the cost of refinancing (including early repayment charges) outweighs potential benefits from reduced interest rates. The Council will continue to monitor this position (in conjunction with its advisers, Arlingclose) throughout the coming year.
7 Investment Strategy
7.1 The Council holds significant invested funds, representing income received in advance of expenditure plus balances and reserves held. In the past 12 months, the Council’s investment balance has averaged around £57m.
7
7.2 Objectives: Both the CIPFA Code and the CLG Guidance require the Council to invest its funds prudently, and to have regard to the security and liquidity of its investments before seeking the highest rate of return, or yield. The Council’s objective when investing money is to strike an appropriate balance between risk and return, minimising the risk of incurring losses from defaults and the risk of receiving unsuitably low investment income. Where balances are expected to be invested for more than one year, the Council will aim to achieve a total return that is equal or higher than the prevailing rate of inflation, in order to maintain the spending power of the sum invested.
7.3 Negative interest rates: If the UK enters into a recession in 2018/19, there is a small chance that the Bank of England could set its Bank Rate at or below zero, which is likely to feed through to negative interest rates on all low risk, short-term investment options. This situation already exists in many other European countries. In this event, security will be measured as receiving the contractually agreed amount at maturity, even though this may be less than the amount originally invested.
7.4 The majority of fixed term investments that have matured in the last 12 months have been reinvested in short term investments that are expected to mature by 1 April 2019. These include fixed term bank deposits, loans to other local authorities and public bodies and Arlingclose recommended Cash Plus funds and Short Dated Bond Funds. All investments have been made in either highly rated institutions or other public bodies.
7.5 This strategy has allowed the Council to continue to generate investment returns comparable with previous years, whilst maintaining access to funds at relatively short notice.
7.6 Over the last 12 months the Council has also explored potential longer term fixed investments (e.g. solar farms), and will continue to do so over the coming year. Live examples currently under consideration include Arlingclose recommended Property Funds. As will all investment opportunities, however it is a question of timing and understanding and acceptance of the levels of risk attached.
7.7 IFRS9 – in assessing investment options in 2018/19, the Council will also be mindful of the impact of new accounting practices which will apply to investments in place throughout the year.
7.8 Types of Investments – The Council will invest in either Specified or Non- Specified Investments. Specified investments are comparatively low risk as they are:
• denominated in pound sterling, • due to be repaid within 12 months of arrangement,
8
• not defined as capital expenditure by legislation, and • invested with one of: o the UK Government, o a UK local authority, parish council or community council, or o a body or investment scheme of “high credit quality”. 7.9 The Council defines “high credit quality” organisations and securities as those having a credit rating of A- or higher that are domiciled in the UK or a foreign country with a sovereign rating of AA+ or higher. For money market funds and other pooled funds “high credit quality” is defined as those having a credit rating of A- or higher.
7.10 Non-specified investments: Any investment not meeting the definition of a specified investment is classed as non-specified. Such investments carry a higher level of risk as they either:
• commit funds over a longer period (more than one year) and / or
• are with institutions that do not meet the Council’s definition of ‘high credit quality’ (i.e. A- or higher)
Examples include:
• any investment of more than a year (including covered bonds)
• investments with unrated Building Societies
• investments with unrated Registered Providers (Housing Associations)
• other long term asset backed investments (e.g. solar farm investments), subject to completion of robust due diligence
• investments in unrated pooled funds – for example multi asset, equity and property funds
7.11 Non-specified investments are limited to 60% of investment portfolio at the time of investment. This threshold was set to enable significant investment in covered bonds (of over 12 months duration) in previous years.
7.12 Approved counterparties and limits: The Council may make either specified or non-specified investments with any of the counterparty types in Figure 2 below, subject to the cash limits (per counterparty) and the time limits shown. The maximum amount that can be invested in any one institution at the time of investment (including call accounts) as a percentage of the total investment portfolio is maintained at the same levels as 2017/18. In a change to previous years, all investments will now be capped at 5 years. This is a practical move, which better reflects current practice, reduces investment risk and 9
maximises potential future investment options. It is also in line with Bournemouth Council’s Treasury Strategy. All AA- and above rated institutions continue to have a maximum limit of 20% of total investment portfolio and monetary cap of £10m. Investments in institutions rated A- to A+ continue to be capped at 15% of investment portfolio, with specific monetary caps ranging from £5m to £10m depending on rating.
7.13 A further consideration when evaluating potential specified investments, is to compare the maximum percentage cap with the average investment portfolio balance forecast over the life of investment (as opposed to portfolio balance at the time of investment). In reality this will be based on a 12 month forecast as specified investments are, by definition, limited to a year. This additional factor ensures that a ‘whole of life’ view of investment risk exposure is taken when making investment decisions.
7.14 Figure 2: Approved investment counterparties and limits (these cover both specified and non-specified investments)
Lowest Equivalent Long Term Rating Amount Maximum % Maximum Period Banks and other organisations and securities (including Corporate Bonds and Covered Bonds, Pooled Funds and similar vehicles) whose lowest published long-term credit rating from Fitch, Moody’s and Standard & Poor’s is: AAA £10,000,000 20% 5 Years AA+ £10,000,000 20% 5 Years AA £10,000,000 20% 4 Years AA- £10,000,000 20% 3 Years A+ £10,000,000 15% 2 Years A £7,500,000 15% 364 Days A- £5,000,000 15% 364 Days AAA Money Market Funds £5,000,000 33% Instant access (any one fund) (sector limit) AAA Cash Plus Funds £5,000,000 35% 12 to 18 months (sector limit) Other Pooled Funds (e.g. Property Funds) £5,000,000 25% 5 Years The Authority’s current account bank £2,500,000 5% O/N (Barclays Bank plc) if it fails to meet the above criteria Other Institutions Debt Management Office (DMO) £50,000,000 100% (DMO maximum period is 25 years) U.K. Local Authorities & other Public Bodies £10,000,000 20% (with 1 5 Years authority) maximum 33% sector limit UK Registered Providers of Social Housing £5,000,000 15% (with 1 5 Years
10
whose lowest published long-term credit provider) rating is [A-] or higher maximum 33% sector limit UK Registered Providers of Social Housing £5,000,000 10% (with 1 5 Years whose lowest published long-term credit provider) rating is lower than [A-] or those without maximum 33% credit ratings sector limit UK Building Societies without credit ratings £1,000,000 10% 6 months
7.15 Credit rating: Investment limits are set by reference to the lowest published long-term credit rating from Fitch, Moody’s or Standard & Poor’s. Where available, the credit rating relevant to the specific investment or class of investment is used, otherwise the counterparty credit rating is used. However, investment decisions are never made solely based on credit ratings, and all other relevant factors including external advice will be taken into account.
7.16 Pooled funds: Shares in diversified investment vehicles consisting of the any of the above investment types, plus equity shares and property. These funds have the advantage of providing wide diversification of investment risks, coupled with the services of a professional fund manager in return for a fee. Short-term Money Market Funds that offer same-day liquidity and very low or no volatility will be used as an alternative to instant access bank accounts, while pooled funds whose value changes with market prices and/or have a notice period will be used for longer investment periods.
7.17 Bond, equity and property funds offer enhanced returns over the longer term, but are more volatile in the short term. These allow the Council to diversify into asset classes other than cash without the need to own and manage the underlying investments. Because these funds have no defined maturity date, but are available for withdrawal after a notice period, their performance and continued suitability in meeting the Council’s investment objectives will be monitored regularly.
7.18 Operational bank accounts: The Council may incur operational exposures, for example though current accounts, collection accounts and merchant acquiring services, to any UK bank with credit ratings no lower than BBB- and with assets greater than £25 billion. These are not classed as investments, but are still subject to the risk of a bank bail-in, and balances will therefore be kept below £200,000 per bank. The Bank of England has stated that in the event of failure, banks with assets greater than £25 billion are more likely to be bailed-in than made insolvent, increasing the chance of the Council maintaining operational continuity.
7.19 Risk assessment and credit ratings: Credit ratings are obtained and monitored by the Council’s treasury advisers, who will notify changes in ratings as they 11
occur. Where an entity has its credit rating downgraded so that it fails to meet the approved investment criteria then:
• no new investments will be made, • any existing investments that can be recalled or sold at no cost will be, and • full consideration will be given to the recall or sale of all other existing investments with the affected counterparty.
7.20 Other information on the security of investments: The Council understands that credit ratings are good, but not perfect, predictors of investment default. Full regard will therefore be given to other available information on the credit quality of the organisations in which it invests, including credit default swap prices, financial statements, information on potential government support and reports in the quality financial press. No investments will be made with an organisation if there are substantive doubts about its credit quality, even though it may meet the credit rating criteria.
7.21 When deteriorating financial market conditions affect the creditworthiness of all organisations, as happened in 2008 and 2011, this is not generally reflected in credit ratings, but can be seen in other market measures. In these circumstances, the Council will restrict its investments to those organisations of higher credit quality and reduce the maximum duration of its investments to maintain the required level of security. The extent of these restrictions will be in line with prevailing financial market conditions. If these restrictions mean that insufficient commercial organisations of high credit quality are available to invest the Council’s cash balances, then the surplus will be deposited with the UK Government, via the Debt Management Office or invested in government treasury bills for example, or with other local authorities. This will cause a reduction in the level of investment income earned, but will protect the principal sum invested.
7.22 Liquidity management: The Council uses purpose-built cash flow forecasting tools to determine the maximum period for which funds may prudently be committed. The forecast is compiled on a prudent basis to minimise the risk of the Council being forced to borrow on unfavourable terms to meet its financial commitments. Limits on long-term investments are set by reference to the Council’s medium term financial plan and cash flow forecast.
7.23 Non-Treasury Investments
Although not classed as treasury management activities and therefore not covered by the CIPFA Code or the CLG Guidance, the Council may also purchase property for investment purposes and may also make loans and investments for service purposes, for example in shared ownership housing, as loans to local businesses and landlords, or as equity investments. 12
Such loans and investments will be subject to the Council’s normal approval processes for revenue and capital expenditure and need not comply with this treasury management strategy.
The Authority’s existing non-treasury investments are listed in Appendix B.
8 Treasury Management Indicators – limits to Borrowing Activity
8.1 The revised CIPFA Treasury Management Code of Practice requires a number of treasury management prudential indicators to be compiled. These include indicators that relate to the governance of borrowing arrangements, and are attached as Appendix A to this report.
8.2 The borrowing strategy outlined in section 6 above exceeds none of the following key Prudential Indicators extracted from Appendix A and outlined below:
8.3 Authorised Limit - The authorised limit sets a parameter for the level of affordable debt. It should not be set so high that it would never in any possible circumstances be breached. It should reflect a level of borrowing which, while not desired, could be afforded but may not be sustainable. In this way it may include provision for additional borrowing that may be required for a short period in order to deliver the agreed treasury management strategy. The appropriate limit for 2018/19 will be set at £161.4m.
8.4 Operational Boundary - This indicator is the focus of day-to-day treasury management activity within the authority. It is a means by which the authority manages its external debt to ensure that it remains within its self-imposed authorised limit. The appropriate limit for 2018/19 is set at £159.3m.
8.5 Interest rate exposures: This indicator sets out the maximum level of borrowing, as a proportion of total borrowing, that would be taken out at variable or fixed rates. The current limit for 2018/19 is for a maximum of 50% to be taken out as Variable Rate Loans or 100% Fixed Rate Loans.
2018/19 2019/20 2020/21 Upper limit on variable interest rate exposure 50% 50% 50% Upper limit on fixed interest rate exposure 100% 100% 100%
8.6 Fixed rate investments and borrowings are those where the rate of interest is fixed for at least 12 months, measured from the start of the financial year or the transaction date if later. All other instruments are classed as variable rate.
8.7 Maturity structure of borrowing: This indicator is set to control the Council’s exposure to refinancing risk. It sets out the maximum levels of borrowing, as a proportion of total borrowing, that could be taken out over different maturity profiles. The upper and lower limits on the maturity structure of fixed rate borrowing will be:
13
Upper Lower Under 12 months 20% 0% 12 months and within 24 months 20% 0% 24 months and within 5 years 50% 0% 5 years and within 10 years 75% 0% 10 years and above 100% 0%
Time periods start on the first day of each financial year. The maturity date of borrowing is the earliest date on which the lender can demand repayment.
9 Other Items
9.1 There are a number of additional items that the Authority is obliged by CIPFA or CLG to include in its Treasury Management Strategy.
9.2 Policy on apportioning interest to the HRA: On 1st April 2012, the Council notionally split each of its existing long-term loans into General Fund and HRA pools. In the future, new long-term loans borrowed will be assigned in their entirety to one pool or the other. Interest payable and other costs/income arising from long-term loans (e.g. premiums and discounts on early redemption) will be charged/ credited to the respective revenue account. Differences between the value of the HRA loans pool and the HRA’s underlying need to borrow (adjusted for HRA balance sheet resources available for investment) will result in a notional cash balance which may be positive or negative. This balance will be measured each month and interest transferred between the General Fund and HRA at the Authority’s average interest rate on investments, adjusted for credit risk.
Other Councils, including Bournemouth, charge interest on internal borrowing to the HRA at the relevant PWLB rate of borrowing (as opposed to average interest rate on investments). Poole Council will keep this position under review over the forthcoming year.
9.3 Investment training: The needs of the Council’s treasury management staff for training in investment management are assessed as part of the staff appraisal process, and additionally when the responsibilities of individual members of staff change.
9.4 Staff regularly attend training courses, seminars and conferences provided by Arlingclose and CIPFA. Relevant staff are also encouraged to study professional qualifications from CIPFA, the Association of Corporate Treasurers and other appropriate organisations.
9.6 Investment of money borrowed in advance of need: The Council may, from time to time, borrow in advance of need, where this is expected to provide the 14
best long-term value for money. Since amounts borrowed will be invested until spent, the Council is aware that it will be exposed to the risk of loss of the borrowed sums, and the risk that investment and borrowing interest rates may change in the intervening period. These risks will be managed as part of the Council’s overall management of its treasury risks.
9.7 The total amount borrowed will not exceed the authorised borrowing limit of £160.9 million. The maximum period between borrowing and expenditure is expected to be less than a year, although the Council is not required to link particular loans with particular items of expenditure.
10 Financial Implications
10.1 2018/19 Budgeted interest payable of £3.4m includes HRA interest payable of £3.1m on PWLB loans as well as £0.3m net General Fund interest on external loans. New loans will be required in 2018/19 to help finance the Carter School and Figbury Lodge capital schemes. A cautious view of the cost of this borrowing has been taken for budget setting purposes, which presumes funding of the schemes will be externally borrowed at PWLB 5 year loan rates of 1.57%. In reality the external borrowing requirement is likely to be reduced through the use of internal borrowing, and the use of alternative lenders to the PWLB.
10.2 The Council’s MTFP has already made provision for the interest cost of Figbury Lodge borrowing within Adult Social Services Reserves. This provision will offset interest on Figbury Lodge borrowing in the Council’s income & expenditure account.
10.3 Budgeted interest earned on investments is expected to be £0.2m, in line with previous years.
Budgeted External Interest 2017/18 2018/19 Avg Interest £k £k Rate %
General Fund (historic loan) 76.5 72.8 0.97 General Fund (new loans) 0 213.4 1.57 Other Interest payable (on deposits, 18.6 20.0 0.63 school balances etc) HRA (PWLB loans) 3,087 3,092 3.80 Budget External Interest Paid 3,182 3,398 Fixed term Covered Bonds (57.4) (5.0) 0.66 Fixed term Other (58.6) (76.8) 0.74 Cash Plus and Money Market Funds (45.0) (70.0) 0.55 Budget External Interest Earned (161.0) (151.8)
15
11 Other Options Considered
11.1 The CLG Guidance and the CIPFA Code do not prescribe any particular treasury management strategy for local authorities to adopt. The Chief Financial Officer believes that the above strategy represents an appropriate balance between risk management and cost effectiveness. Some alternative strategies, with their financial and risk management implications, are listed below.
Alternative Impact on income and Impact on risk management expenditure Invest in a narrower range Interest income will be Lower chance of losses from credit of counterparties and/or lower related defaults, but any such for shorter times losses may be greater Invest in a wider range of Interest income will be Increased risk of losses from credit counterparties and/or for higher related defaults, but any such longer times losses may be smaller Borrow additional sums at Debt interest costs will Higher investment balance leading long-term fixed interest rise; this is unlikely to to a higher impact in the event of rates be offset by higher a default; however long-term investment income interest costs may be more certain Borrow short-term or Debt interest costs will Increases in debt interest costs variable loans instead of initially be lower will be broadly offset by rising long-term fixed rates investment income in the medium term, but long-term costs may be less certain Reduce level of borrowing Saving on debt interest Reduced investment balance is likely to exceed lost leading to a lower impact in the investment income event of a default; however long- term interest costs may be less certain
12 Annual Minimum Revenue Provision (MRP) Statement 2018/19
12.1 Where the Council does not finance capital expenditure from grants, capital receipts, third party contributions or direct revenue contributions, it will require new borrowing (either external loans or through the use of internal reserves). Prudent provision is made each year to set aside sufficient reserve with which borrowing will be repaid. Regulations require the Council to determine an amount of minimum revenue provision that it considers to be “prudent”. This is supplemented by Department for Communities and Local Government (DCLG) guidance on what constitutes prudent provision.
12.2 This guidance provides four ready made options for calculating the minimum revenue provision. These are likely to fulfil most scenarios, however the guidance allows the use of alternative approaches if an authority can demonstrate that it is consistent with the statutory duty to make a minimum provision. 16
12.3 In the case of government supported borrowing the authority has adopted a 2% straight line method of repayment. This approach was deemed to be prudent by external audit and was approved by Council as part of last year’s Annual Treasury Strategy.
12.4 For unsupported borrowing the Council adopts an ‘asset life’ approach – where MRP is made in equal annual instalments over the life of the asset. Exceptions to this approach are where the business case provides an alternative profile of repayments. This profile must adhere to the requirement that expenditure is financed over a period of time where the authority is receiving the benefits of the scheme but may for example have lower repayments at the start of the scheme. Typically this may be for invest to save schemes, for example, the approach agreed for street lighting. MRP on new supported borrowing is calculated for each specific asset individually.
12.5 The Department for Communities and Local Government (CLG) launched a consultation on ‘proposed changes to the prudential framework of capital finance’, which ran from 10 November to 22 December 2017. Whilst the results of the consultation are not yet known, a separate briefing paper for Members on potential implications is attached as Appendix C.
13 Treasury Management Policy, Practices and Schedules
13.1 The Council’s current Treasury Management Policy, Practices and Schedules are attached as Appendix E.
13.2 An updated version that aims to create greater consistency in practice between Poole and Bournemouth will be presented during the 2018/19 financial cycle.
14 External Fund Managers and Treasury Advisers
14.1 After a competitive tender process, the Council re-appointed Arlingclose as its treasury management advisers in February 2016. The company provides advice and support to the Council in the following ways:
• Economic and interest rate analysis
• Debt Management Advice including advice on Debt Rescheduling and the timing of new borrowing
• Credit Rating information from the three main credit rating agencies
• Technical support on treasury matters
14.2 Whilst the advisers provide support to the Council’s treasury function, under current market rules and the CIPFA Treasury Management Code of Practice the final decision on treasury matters remains with the Council. 17
14.3 The Council is not currently using External Fund Managers to manage its investment portfolio.
15 Legal Implications
15.1 Legal counsel will be sought where required – for example with regard to understanding the implications of the legal structure of potential new investments
16 Risk Management Implications
16.1 The Treasury Management Strategy seeks to consider and minimise risks encountered when borrowing or investing cash. The aim, in accordance with the CIPFA Code of Practice for Treasury Management, is to place a greater emphasis on the security and liquidity of funds rather than the return gained on investments.
16.2 The Council has adopted the revised CIPFA Treasury Management Code of Practice.
17 Equalities Implications
17.1 The Treasury Management Strategy does not directly impact on any of the services provided to the Council’s stakeholders or how those services are structured. However the success of the policy will have an impact on the extent to which sufficient financial resources are available to fund services to all members of the community.
17.2 In consideration of the Council’s Treasury Management Strategy and its equality obligations the Council will be mindful of the equality implications within the Borough of Poole Policy and any subsequent amendments. The Council does not knowingly invest in non-ethical investments.
Adam Richens
Chief Financial Officer
2 January 2018
Appendix A Arlingclose Economic and Interest Rate Forecast
Appendix B Poole Council Investment and Borrowing Portfolio 31 December 2017
Appendix C Briefing Note – potential changes to Minimum Revenue Provision
Appendix D Prudential Indicators
Appendix E Treasury Management Policy, Practices and Schedules
18
Contact Officers
Adam Richens – Chief Financial Officer
Telephone: (01202) 63.3183
Email: [email protected]
Shirley Haider – Management Accountant
Telephone: (01202) 63.3528
email: [email protected]
19
Appendix A – Arlingclose Economic & Interest Rate Forecast November 2017
Underlying assumptions:
• In a 7-2 vote, the MPC increased Bank Rate in line with market expectations to 0.5%. Dovish accompanying rhetoric prompted investors to lower the expected future path for interest rates. The minutes re-emphasised that any prospective increases in Bank Rate would be expected to be at a gradual pace and to a limited extent.
• Further potential movement in Bank Rate is reliant on economic data and the likely outcome of the EU negotiations. Policymakers have downwardly assessed the supply capacity of the UK economy, suggesting inflationary growth is more likely. However, the MPC will be wary of raising rates much further amid low business and household confidence.
• The UK economy faces a challenging outlook as the minority government continues to negotiate the country's exit from the European Union. While recent economic data has improved, it has done so from a low base: UK Q3 2017 GDP growth was 0.4%, after a 0.3% expansion in Q2.
• Household consumption growth, the driver of recent UK GDP growth, has softened following a contraction in real wages, despite both saving rates and consumer credit volumes indicating that some households continue to spend in the absence of wage growth. Policymakers have expressed concern about the continued expansion of consumer credit; any action taken will further dampen household spending.
• Some data has held up better than expected, with unemployment continuing to decline and house prices remaining relatively resilient. However, both of these factors can also be seen in a negative light, displaying the structural lack of investment in the UK economy post financial crisis. Weaker long term growth may prompt deterioration in the UK’s fiscal position.
• The depreciation in sterling may assist the economy to rebalance away from spending. Export volumes will increase, helped by a stronger Eurozone economic expansion.
• Near-term global growth prospects have continued to improve and broaden, and expectations of inflation are subdued. Central banks are moving to reduce the level of monetary stimulus.
• Geo-political risks remains elevated and helps to anchor safe-haven flows into the UK government bond (gilt) market.
Forecast:
• The MPC has increased Bank Rate, largely to meet expectations they themselves created. Future expectations for higher short term interest rates are subdued. On-going decisions remain data dependant and negotiations on exiting the EU cast a shadow over monetary policy decisions.
• Our central case for Bank Rate is 0.5% over the medium term. The risks to the forecast are broadly balanced on both sides.
• The Arlingclose central case is for gilt yields to remain broadly stable across the medium term. Upward movement will be limited, although the UK government’s seemingly deteriorating fiscal stance is an upside risk.
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Average Official Bank Rate Upside risk 0.00 0.00 0.00 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.19 Arlingclose Central Case 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Downside risk 0.00 0.00 0.00 0.00 0.00 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.15
3-month LIBID rate Upside risk 0.10 0.10 0.10 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.22 Arlingclose Central Case 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Downside risk -0.10 -0.10 -0.15 -0.15 -0.15 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.20
1-yr LIBID rate Upside risk 0.15 0.15 0.20 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.27 Arlingclose Central Case 0.70 0.70 0.70 0.70 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.77 Downside risk -0.15 -0.20 -0.30 -0.30 -0.30 -0.30 -0.30 -0.30 -0.30 -0.30 -0.30 -0.15 -0.15 -0.26
5-yr gilt yield Upside risk 0.20 0.25 0.25 0.25 0.30 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.40 0.32 Arlingclose Central Case 0.75 0.75 0.80 0.80 0.80 0.85 0.90 0.90 0.95 0.95 1.00 1.05 1.10 0.89 Downside risk -0.20 -0.20 -0.25 -0.25 -0.25 -0.35 -0.40 -0.40 -0.40 -0.40 -0.40 -0.40 -0.40 -0.33
10-yr gilt yield Upside risk 0.20 0.25 0.25 0.25 0.30 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.40 0.32 Arlingclose Central Case 1.25 1.25 1.25 1.25 1.25 1.30 1.30 1.35 1.40 1.45 1.50 1.55 1.55 1.36 Downside risk -0.20 -0.25 -0.25 -0.25 -0.25 -0.30 -0.35 -0.40 -0.40 -0.40 -0.40 -0.40 -0.40 -0.33
20-yr gilt yield Upside risk 0.20 0.25 0.25 0.25 0.30 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.40 0.32 Arlingclose Central Case 1.85 1.85 1.85 1.85 1.85 1.90 1.90 1.95 1.95 2.00 2.05 2.05 2.05 1.93 Downside risk -0.20 -0.30 -0.25 -0.25 -0.30 -0.35 -0.40 -0.45 -0.50 -0.50 -0.50 -0.50 -0.50 -0.38
50-yr gilt yield Upside risk 0.20 0.25 0.25 0.25 0.30 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.40 0.32 Arlingclose Central Case 1.70 1.70 1.70 1.70 1.70 1.75 1.80 1.85 1.90 1.95 1.95 1.95 1.95 1.82 Downside risk -0.30 -0.30 -0.25 -0.25 -0.30 -0.35 -0.40 -0.45 -0.50 -0.50 -0.50 -0.50 -0.50 -0.39
Appendix B – 31 December 2017 Investment & Debt Portfolio Position
31 December 31 December Actual Portfolio Average Rate £m % External borrowing: Public Works Loan Board 81.4 3.81% Local authorities (3 year) 7.5 0.97% Salix loans 2.1 0.00%
Total gross external debt 91.0 Treasury investments: Banks – instant access (unsecured) 2.6 0.30% Banks – fixed term (unsecured) 5.0 0.72% Covered bonds (secured) 5.4 0.69% Government (incl. local authorities) 19.5 0.62% Cash Plus Funds 20.0 0.60%* Money Market Funds 4.4 0.30%
Total treasury investments 56.9 Net debt 34.1
Non-treasury investments: Investment property 10.0 5.18%
Total non-treasury investments 10.0 Total investments 69.8
*The Cash Plus Fund average rate is provided by Arlingclose and is based on fund performance in the 12 months ending 30 September 2017 (latest available). This is a cautious estimate as it does not take into account the Bank of England Base Rate increase in November. The annualised return for the Cash Plus Funds in the 12 months ending 31 March 2017 was 0.88%.
Appendix C
CLG Consultation on proposed changes to the prudential framework of capital finance
The Government has launched a consultation ‘on proposed changes to the prudential framework of capital finance’ which runs from 10 November until 22 December.
Over the past seven years, the economic and regulatory landscape has changed significantly. The prolonged low interest rate environment has meant that investing spare cash in banks will not generate a return. In addition, the introduction of the general power of competence has given local authorities far more flexibility in the types of activity they can engage in.
The changes in the economic and regulatory landscape have led the sector to consider different and more innovative types of investment activity. As a result the Government feels that it is time to look into updating the guidance as part of the more general update of the statutory codes comprising the prudential framework.
The Government believes that local authorities need to be better at explaining “why” not just “what” they are doing with their investment activity. That means that the sector needs to demonstrate more transparency and openness and to make it easier for informed observers to understand how good governance and democratic accountability have been excercised.
At the same time local authorities need to remember that their prime duty is to deliver statutory services for local residents and they have stewardship of public funds to do so. Given this they should ensure that the level of debt taken on and aggregate risk is proportionate to the size of the authority and that they have considered the opportunity costs as well as the potential benefits of investment activities.
The consultation is also suggesting 4 key changes to the current MRP Guidance in relation to definition, meaning, impact of changing methods and maximum economic lives.
Implementation Date – 2018/19 financial year.
Executive Summary
• Both Council’s Asset Investment Strategy’s already have due regard to the recommended principles which are used as key criteria in any Asset Investment Decisions being taken which covers the requirements set for any non-financial investments to be subject to the level of scrutiny required of financial investments.
• S.12 of the Local Government Act 2003 - Investment Power supports the investment of surplus cash resources and as a result we have regard to the Secretary of State Investment Guidance. This includes the requirement for a Member approved Investment Policy. The use of S.1 power to borrow to support S.12 activity (the power to invest) is still viewed as ultra vires.
• Both Councils had revised MRP policies approved within their respective 2017/18 Treasury Management Strategies which aligned pre 2004 supported borrowing in line with the asset economic useful lives determined with property valuer opinions and validated by External Audit.
• If the Council were to amend the useful life of the supported borrowing assets down from the agreed 50 years to the consultation’s recommended 40 years then this would cost an additional £100k to Poole’s and £200k to Bournemouth’s MTFP position. This would not be a retrospective change.
• Taking the above points into account, both Councils have taken due regard to the likely changes when setting Asset Investment Strategies and MRP policies which have been recently agreed with External Audit who are ultimately the independent reviewers who will ensure we have taken all relevant guidance and legislation into account and considering they have recently signed these off it’s unlikely either Council would be asked to make any significant changes to the currently set policies.
• Therefore the impact of any changes to the code will be insignificant for both Councils.
• It is recommended that the Council applies the recommended guidance of a maximum of 40 years useful economic life for non-land and solely for commercial assets both from an MRP and borrowing perspective. For land assets and for any significant construction projects where there is design and contractual commitments for a longer life, a maximum of 50 years will be applied once prior approval has been sought from External Audit.
Overview
• Annual Investment Strategy still required with added guidance to disclose matters in Capital Strategy (dependent on CIPFA TM Code and Prudential Code change)
• No aim to discourage investments – just more openness and transparency on why.
• A further change is the suggestion to implement indicators to assess the total risk exposure the Council has due to the level of borrowing and investment decisions. A year on year change comparator would also be required. Initial view is that each Authority has different financial positions and risk appetites and will therefore not implement prescriptive thresholds.
• CLG are also looking to extend the principle of Security, Liquidity and Yield (SLY) to non-financial investments.
• Security – they will expect some form of impairment assessment on non-financial assets and each Authority will need to set out what action they will take to protect the funds invested.
• Liquidity – a requirement to set out how funds invested in non-financial assets can be accessed if they are needed.
• The consultation ends with three new areas for consideration, which are Proportionality, Borrowing in advance of need and Capacity, Skills and Culture
Concept of Proportionality – this is really asking how heavily you are exposed to one asset class and you will be asked to confirm how much reliance is placed on commercial income to support the budget. In addition, you will also be asked how much borrowing has been used to support the income generation.
Borrowing in advance of need – CLG have framed this differently than previous comments made in the Secretary of State Investment Guidance. They have previously said that the use of speculative procedure of borrowing purely to invest at a profit is unlawful. The wording has softened and they now say “Borrowing solely to invest rather than to deliver statutory services or strategic objectives has always been considered to be borrowing in advance of need” As a result, the consultation is suggesting that additional disclosures will be required by local authorities who borrow solely to invest in revenue generating investments.
Capacity, Skills and Culture - it is noted that current disclosure sets out steps that TM professionals take to ensure sensible decisions are taken. The proposal is to extend this disclosure requirement to statutory officers, Councillors and other key individuals in the decision making process.
Minimum Revenue Provision Guidance
MRP - Definition of Prudent Provision
It is noted that Regulation 28 requires local authorities to make ‘prudent provision’ for debt repayment. In addition, the Council is required to have regard to Secretary of State MRP guidance. The current guidance provides more scope than the consultation infers as it says “provision for the borrowing which financed the acquisition of the asset should be made over a period bearing some relation to that over which the asset continues to provide a service”
The consultation then suggests a change to the definition of prudent provision and requires MRP to cover the gap between the Capital Financing Requirement and the amount of that requirement that is funded by income, grants and receipts.
It infers that MRP will be more aligned to the period over which their capital expenditure provides a benefit.
A Capital Financing Requirement is produced when capital expenditure is incurred and no cash resource is available to set aside in that year. The MRP charge to the revenue account recovers the sum from the taxpayer to allow the debt to be reduced over time. The existing guidance provides the ability to use the asset life to determine the period you repay the Capital Financing Requirement. It also provides the scope for an MRP payment holiday which provide flexibility if used appropriately.
Meaning of charge to the revenue account
The consultation makes it clear that the Government does not support a negative MRP charge to revenue and the proposed change to regulations would prevent this in future years.
Impact of changing methods of calculating MRP
The Consultation notes that flexibility on MRP should be allowed but the Government does not support the use of a policy that defers payments into future years. The change would also allow overpayments in a financial year to be offset against charges in future years.
Introduction of a maximum economic life of assets
The Consultation includes reference to the current MRP guidance and notes that 2 of the 4 recommended options for calculating MRP in the Guidance use asset life as the denominator.
The Government has concerns that some local authorities may be setting artificially long asset lives to reduce the annual charge for MRP and thereby deferring revenue costs into future years.
If adopted the updated MRP guidance will include a maximum useful economic life of 50 years for freehold land and 40 years for other assets. They say that this change is linked to commonly used practices in depreciation accounting.
It should be noted that whilst the Council is required to have regard to the MRP guidance, there’s still some scope to adopt an alternative approach in your own Member approved MRP policy. In effect, it will still be for each Authority to determine a prudent provision for debt repayment.
Future Borrowing
Both Councils already base any future unsupported borrowing on specific asset life. Both Councils will need to consider whether to cap the maximum economic life for buildings at the recommended 40 years as included within the consultation or take expert asset valuation advice on each asset and gain External Audit validation on the agreed asset life if in excess of this.
APPENDIX D PRUDENTIAL CODE INDICATORS
2017/18 2018/19 2019/20 2020/21
Capital Expenditure £M £M £M £M - General Fund 25.82 32.38 22.70 1.60 - HRA 11.38 13.99 12.87 16.07
Ratio Affordability Measure % % % % - General Fund 1% 1% 1% 1% - HRA 38% 37% 38% 37%
Incremental Impact on Council Tax £ £ £ £ - Supported Borrowing -12.64 0.04 1.77 1.53 - Unsupported Borrowing 12.35 3.12 7.35 1.18 Total Impact on Council Tax -0.29 3.16 9.12 2.71
Incremental Impact on Housing Rents £ £ £ £ - Supported Borrowing 0.48 0.38 0.52 0.52 - Unsupported Borrowing 0.00 0.00 0.00 0.00 Total Impact on Housing Rents 0.48 0.38 0.52 0.52
Capital Financing Requirement (closing) £M £M £M £M - General Fund CFR 64.9 78.4 81.2 78.5 - HRA CFR 86.4 83.0 82.6 90.2 HRA Limit on Indebtedness £M £M £M £M - HRA Debt Cap (as prescribed by CLG) 99.8 99.8 99.8 99.8 - Difference between Debt Cap and HRA CFR 13.4 16.8 17.2 9.6
Authorised Limit £M £M £M £M - Long Term Liabilities 1.0 1.0 1.0 1.0 - Borrowing 151.3 161.4 163.8 168.8
Operational Boundary £M £M £M £M - Long Term Liabilities 1.0 1.0 1.0 1.0 - Borrowing 149.2 159.3 161.7 166.7
External Debt £M £M £M £M Long Term - PWLB 81.2 80.8 80.4 88.1 - Potential New Borrowing 0.0 11.9 15.4 15.4 - Other Salix Loan 2.4 1.7 1.0 0.5 - Other Local Authority Loan 7.5 7.5 7.5 7.5 Short Term - Other 0.0 0.0 0.0 0.0 Gross Debt 91.1 101.9 104.3 111.5 Investments - Investments 23.9 13.8 3.1 2.5
Interest Rate Exposure Upper Limit Upper Limit Upper LimitUpper Limit % % % % - Variable Rate 50 50 50 50 - Fixed Rate 100 100 100 100
Debt Maturity Structure (Fixed Rate) Lower Limit % Under 12 Months 0 1-2 Years 0 2-5 Years 0 5-10 years 0 Over 10 years 0 Prudential Indicators
Adoption of the CIPFA Code of Practice in Treasury Management - the Council adopted the CIPFA Treasury Management Code of Practice with effect from 1 April 2002 as amended by subsequent revisions of the Code.
Capital Expenditure - this indicator is set to ensure that the level of proposed capital expenditure remains within sustainable limits and, in particular, to consider the impact on Council Tax and in the case of the HRA, housing rent levels.
Ratio Affordability Measure - this is an indicator of affordability and highlights the revenue implications of existing and proposed capital expenditure by identifying the proportion of the revenue budget required to meet financing costs.
Incremental Impact on Council Tax and Housing Rent - this is an indicator of affordability that shows the impact of capital investment decisions on Council Tax and Housing Rent levels.
The Capital Financing Requirement (CFR) measures the Council’s underlying need to borrow for a capital purpose. The calculation of the CFR is taken from the amounts held in the Balance Sheet relating to capital expenditure and its financing.
The Authorised Limit sets the maximum level of external borrowing on a gross basis (i.e. not net of investments) for the Council. It is measured on a daily basis against all external borrowing items on the Balance Sheet (i.e. long and short term borrowing)
The Operational Boundary links directly to the Council’s estimates of the CFR and estimates of other cashflow requirements. This indicator is based on the same estimates as the Authorised Limit reflecting the most likely, prudent but not worst case scenario
Gross Debt - This is a key indicator of prudence, the Council should ensure that debt does not, except in the short term, exceed the total of capital financing requirement in the preceding year plus the estimates of any additional capital financing requirements
Actual External Debt - this indicator is obtained directly from the Council’s balance sheet. It is the closing balance for actual gross borrowing plus other long-term liabilities.
Total Principal Sum Invested to final maturities beyond the period - the purpose of this limit is to contain exposure to the possibility of loss that may arise as a result of the Council having to seek early repayment of the sums invested.
Interest Rate Exposure - these indicators allow the Council to manage the extent to which it is exposed to changes in interest rates.
Debt Maturity Structure (Fixed Rate) - this indicator highlights the existence of any large concentrations of fixed rate debt needing to be replaced at times of uncertainty over interest rates and is designed to protect against excessive exposures to interest rate changes
Credit Risk - the Council considers security, liquidity and yield, in · Published credit ratings of the financial institution (minimum · Sovereign support mechanisms; · Credit default swaps (where quoted); · Share prices (where available); · Economic fundamentals, such as a country’s net debt as a · Corporate developments, news, articles, markets sentiment · Subjective overlay. The only indicators with prescriptive values remain to be credit ratings. Other indicators of creditworthiness are considered in relative rather than absolute terms.
Borough of Poole
Treasury Management Policy, Practices and Schedules
Updated:- December 2017
1 APPENDIX E 1. Introduction and Background
The Council adopts the key recommendations of CIPFA’s Treasury Management in the Public Services: Code of Practice (the Code), as described in Section 5 of the Code.
Accordingly, the Council will create and maintain, as the cornerstones for effective treasury management:- • A treasury management policy statement, stating the policies, objectives and approach to risk management of its treasury management activities. • Suitable treasury management practices (TMPs), setting out the manner in which the Council will seek to achieve those policies and objectives, and prescribing how it will manage and control those activities.
The Council will receive reports on its treasury management policies, practices and activities including, as a minimum, an annual strategy and plan in advance of the year, a mid-year review and an annual report after its close, in the form prescribed in its TMPs.
The Council delegates responsibility for the implementation and monitoring of its treasury management policies and practices to The Audit Committee and for the execution and administration of treasury management decisions to the Head of Financial Services and S151 Officer, who will act in accordance with the organisation’s policy statement and TMPs and CIPFA’s Standard of Professional Practice on Treasury Management.
The Council nominates the Audit Committee to be responsible for ensuring effective scrutiny of the treasury management strategy and policies.
2. The Borough of Poole Treasury Management Policy Statement
2.1 Definition
The Council defines its treasury management activities as:
“The Management of the organisation’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks”.
2.2 Risk
The Council regards the successful identification, monitoring and control of risk to be the prime criteria by which the effectiveness of its treasury management activities will be measured. Accordingly, the analysis and reporting of treasury management activities will focus on their risk implications for the organisation and any financial instruments entered into to manage these risks.
2 APPENDIX E 2.3 Best Value
The Council acknowledges that effective treasury management will provide support towards the achievement of its business and service objectives. It is therefore committed to the principles of achieving value for money in treasury management, and to employing suitable performance measurement techniques, within the context of effective risk management.
2.4 Borrowing
The Council’s borrowing will be affordable, sustainable and prudent and consideration will be given to the management of interest rate risk and refinancing risk. The source from which the borrowing is taken and the type of borrowing should allow the Council transparency and control over its debt.
2.5 Investments
The Council’s primary objective in relation to investments remains the security of capital. The liquidity or accessibility of the Authority’s investments followed by the yield earned on investments remain important but are secondary considerations.
3. TREASURY MANAGEMENT PRACTICES AND SCHEDULES
The Treasury Management Practices (TMPs) and Schedules set out the manner in which The Council will seek to achieve its treasury management policies and objectives and how it will manage and control those activities.
3.1 TMP 1 Treasury risk management 3.2 TMP 2 Best value and performance measurement 3.3 TMP 3 Decision–making and analysis 3.4 TMP 4 Approved instruments, methods and techniques 3.5 TMP 5 Organisation, clarity and segregation of responsibilities, and dealing arrangements 3.6 TMP 6 Reporting requirements and management information arrangements 3.7 TMP 7 Budgeting, accounting and audit arrangements 3.8 TMP 8 Cash and cash flow management 3.9 TMP 9 Money laundering 3.10 TMP 10 Training and qualifications 3.11 TMP 11 Use of external service providers 3.12 TMP 12 Corporate governance
3 APPENDIX E 3.1 TMP1 RISK MANAGEMENT
The Head of Financial Services will design, implement and monitor all arrangements for the identification, management and control of treasury management risk, will report at least annually on the adequacy/suitability thereof, and will report, as a matter of urgency, the circumstances of any actual or likely difficulty in achieving the organisation’s objectives in this respect, all in accordance with the procedures set out in TMP6 Reporting requirements and management information arrangements. In respect of each of the following risks, the arrangements which seek to ensure compliance with these objectives are set below.
3.1.1 Liquidity Risk
The Council will ensure it has adequate though not excessive cash resources, borrowing arrangements, overdraft or standby facilities to enable it at all times to have the level of funds available to it which are necessary for the achievement of its business/service objectives.
Principle: The Head of Financial Services will ensure the short and medium term liquidity of the Council is monitored through the use of accurate cashflow forecasting, investing surplus funds and arranging for borrowing as appropriate.
The Council can only borrow in advance of need where there is a clear business case for doing so and will only do so for the current capital programme or to finance future debt maturities.
Cash flow and cash Balances
The Council will aim for effective cash flow forecasting and monitoring of cash balances and will maintain a rolling 12 month cash flow forecast.
The Treasury Team shall seek to optimise the balance held in the Council’s main bank accounts at the close of each working day in order to minimise the amount of bank overdraft interest payable or maximise the amount of interest that can be earned.
In order to achieve the maximum return from investments, a daily cash balance of +/- £50,000 is the normal objective for the Council’s bank account. Note, it may not always be possible or practical to achieve this target for various reasons, such as, late or fluctuating receipts after the Treasury Management activities for the day have been completed.
Short term investments
In normal market conditions a significant balance is held in overnight accounts such as call accounts and/or Money Market Funds specifically to deal with day to day cash flow fluctuations. It may be necessary to hold far more short term investments particularly in times of extreme uncertainty or simply where there are yield curve benefits of doing so.
The maximum balance on each of these accounts is reviewed and set as part of the Council’s investment strategy.
4 APPENDIX E
Temporary Borrowing
Temporary borrowing up to 364 days through the money market is available should there be a cash flow deficit at any point during the year.
At no time will the outstanding total of temporary and long-term borrowing together with any bank overdraft exceed the Prudential Indicator for the Authorised Borrowing Limit agreed by the Council before the start of each financial year.
Bank Overdraft and standby facilities
The Council has an authorised overdraft limit with its bankers of up to £250k at an agreed rate of 1.25% over base rate and over £250k at an agreed rate of 2.75% over base rate. The facility is used as a contingency when temporary borrowing is difficult or more expensive, or for amounts of less than £100k.
3.1.2 Interest Rate Risk
The Council will manage its exposure to fluctuations in interest rates with a view to containing its net interest costs, or securing its interest revenues, in accordance with the amounts provided in its budgetary arrangements as amended in accordance with TMP6 Reporting requirement and management information arrangements.
It will achieve these objectives by the prudent use of its approved financing and investment instruments, methods and techniques, primarily to create stability and certainty of costs and revenues, but at the same time retaining a sufficient degree of flexibility to take advantage of unexpected, potentially advantageous changes in the level or structure of interest rates. The above are subject at all times to the consideration and, if required, approval of any policy or budgetary implications.
The Council’s policy will limit its exposure to interest rate changes by allowing a maximum of 50% of borrowing to be at variable interest rates for periods longer than 364 days. The maximum for periods under 364 days will be 100%.
Interest rates will be monitored by the Head of Financial Services and information about possible changes in interest rates gathered from market sources.
Policies concerning other instruments for interest rate management.
a) Forward dealing - Will only be undertaken where the date of commencement is 3 months (or less) for an investment from the date that funds will be transferred, in order to minimise risk due to uncertainties in the cash flow projections. The maximum length of time permissible for all investments will be 10 years.
b) Callable deposits - Money can be placed on a fixed term callable deposit with any of the institutions on our lending list in accordance with the rating criteria. These deposits can be called back by the institution at fixed points during the agreement. To mitigate the effects of this risk the Borough of Poole has set a
5 APPENDIX E limit of £30m on callable deposits this limit is regularly reviewed and any changes will be agreed through the annual Treasury Management Strategy Statement.
3.1.3 Exchange Rates
Approved criteria for managing changes in exchange rate levels
a) As a result of the nature of the Council’s business, the Council may have an exposure to exchange rate risk from time to time. This will mainly arise from the receipt of income or the incurring of expenditure in a currency other than sterling. The Council will adopt a full hedging strategy to control and add certainty to the sterling value of these transactions. This will mean that the Council will eliminate all foreign exchange exposures as soon as they are identified.
b) Where there is a contractual obligation to receive income or make a payment in a currency other than sterling at a date in the future, forward foreign exchange transactions will be considered, with professional advice, to comply with this full cover hedging policy. Unexpected receipt of foreign currency income will be converted to sterling at the earliest opportunity unless the Organisation has a contractual obligation to make a payment in the same currency at a date in the future. In this instance, the currency will be held on deposit to meet this expenditure commitment.
3.1.4 Inflation
The effects of varying levels of inflation, insofar as they can be identified as impacting directly on its treasury management activities, will be controlled by the organisation as an integral part of its strategy for managing its overall exposure to inflation.
It will achieve this objective by the prudent use of its approved financing and investment instruments, methods and techniques, primarily to create stability and certainty of costs and revenues, but at the same time retaining a sufficient degree of flexibility to take advantage of unexpected, potentially advantageous changes in the level or structure of inflation. The above is subject at all times to the consideration and, if required, approval of any policy or budgetary implications.
3.1.5 Credit and Counterparty Risk Management
Principle: The Council regards a key objective of its treasury management activities to be the security of the principal sums it invests. Accordingly, it will ensure that its counterparty lists and limits reflect a prudent attitude towards organisations with whom funds may be deposited, and will limit its investment activities to the instruments, methods and techniques referred to in TMP4 Approved Instruments, methods and techniques and listed below. It also recognises the need to have, and will therefore maintain, a formal counterparty policy in respect of those organisations from which it may borrow, or with whom it may enter into other financing arrangements.
6 APPENDIX E 3.1.5.1 Criteria to be used for creating / Managing Approved Counterparty Lists / Limits
1. The Head of Financial Services will form suitable criteria for assessing and monitoring the credit risk of investment counterparties and shall construct a lending list comprising maximum duration, type, sector and specific counterparty limits.
2. Treasury management staff will add or delete counterparties to/from the approved counterparty list in line with the policy on criteria for selection of counterparties.
3. The Council will use credit criteria in order to select creditworthy counterparties for placing investments with. The Council’s treasury management advisors will advise on credit policy and creditworthiness related issues. The Council will maintain a counterparty list based on its criteria and will monitor and update the credit standing of the institutions on a regular basis. This assessment will include consideration of credit ratings from all three ratings agencies and other alternative assessments of credit strength (for example, statements of potential government support, credit default swap information). The Council will also take into account information on corporate developments of and market sentiment towards investment counterparties.
4. Credit ratings will be used as supplied from the credit rating agencies Fitch, S&P and Moody’s. The lowest Common Denominator will be used as the minimum credit rating and also the maximum lending limit to be applied to each counterparty. The Council receives rating updates from our Treasury Management Advisers and takes the appropriate remedial action upon receipt. The full ratings list will be checked and updated on a regular basis. In addition, to credit ratings the Treasury Management Team have joined the South East Treasury Management Group and will periodically review the Internet in particular the Financial Times and the BBC News Business pages Websites. Where Credit ratings do not exist or where institutions do not meet the minimum criteria they may still be included where they are:
• Fully nationalised banks
5. The minimum level of credit rating for an approved counterparty will be as follows:
Lowest Equivalent Long Term Rating Amount Maximum % Maximum Period Banks and other organisations and securities (including Corporate Bonds and Covered Bonds, Pooled Funds and similar vehicles) whose lowest published long- term credit rating from Fitch, Moody’s and Standard & Poor’s is: AAA £10,000,000 20% 5 Years AA+ £10,000,000 20% 5 Years AA £10,000,000 20% 4 Years AA- £10,000,000 20% 3 Years
7 APPENDIX E A+ £10,000,000 15% 2 Years A £7,500,000 15% 364 Days A- £5,000,000 15% 364 Days AAA Money Market Funds £5,000,000 33% Instant access (any one fund) (sector limit) AAA Cash Plus Funds £5,000,000 35% 12 to 18 (sector limit) months Other Pooled Funds (e.g. Property £5,000,000 25% 5 Years Funds) The Authority’s current account bank £2,500,000 5% O/N (Barclays Bank plc) if it fails to meet the above criteria Other Institutions Debt Management Office (DMO) £50,000,000 100% (DMO maximum period is 25 years) U.K. Local Authorities & other Public £10,000,000 20% (with 1 5 Years Bodies authority) maximum 33% sector limit UK Registered Providers of Social £5,000,000 15% (with 1 5 Years Housing whose lowest published long- provider) term credit rating is [A-] or higher maximum 33% sector limit UK Registered Providers of Social £5,000,000 10% (with 1 5 Years Housing whose lowest published long- provider) term credit rating is lower than [A-] or maximum those without credit ratings 33% sector limit UK Building Societies without credit £1,000,000 10% 6 months ratings
* The maximum may be exceeded on a short term basis with the Council’s own bank as from time to time larger amounts of cash may need to be deposited with them to meet liquidity requirements. e.g. payroll.
** In the event that any of the ratings of the main UK Banks falls below the minimum criteria listed above the Head of Financial Services may use other means to decide on the overall security of any investments before continuing to place funds with these institutions, this will be done in consultation with any advice from our Treasury Advisers. In the event that it is necessary to use any of the main UK Banks where the rating falls below the minimum accepted level then this will be reported to the next Audit Committee.
8 APPENDIX E 6. The maximum period for investments will be 5 years.
7. The maximum period for investment for subsidiaries of counterparties which do not have credit ratings in their own right, but do have unconditional guarantees from a parent is 6 months, but deposits must not be placed beyond the expiry date of the guarantee.
8. The maximum value for any one investment transaction will be £10m, except the Debt Management Office.
9. A limit aggregating the maximum amount for each parent/subsidiary(ies) will also be instituted.
10. The maximum level of investment with any one group of related counterparties will be £10m except the Debt Management Office.
11. The approved counterparty list may include non-UK registered counterparties.
12. Investments in foreign banks are limited to those based in a country with an AA+ sovereign credit rating. The minimum credit rating of foreign institutions used is A (long term) in recognition of an increased risk, lending limits are set out in the table above.
13. The full counterparty list takes account of Individual, Group, Sector and Country risks when setting counterparty limits.
14. The maximum that can be invested in any one institution at the time of the investment (including Call accounts) as a percentage of the total investment portfolio has been reviewed and rationalised and is listed in the table above. For practical reasons where average investment balance falls below £10m it may become necessary to increase the percentage limit to 33% at the time of investment (this only applies to call accounts).
15. The Council’s cash balances are subject to significant fluctuations during the month and in particular at year end. For practical investment decision making purposes the maximum that can be invested in any one institution, as a percentage of the total investment portfolio, shall be based on the best estimate of the average balance of the portfolio over the life of the investment. This is a change to prior year policy, which based investment decisions on the total portfolio balance on the day. Call accounts are monitored on a daily basis and appropriate action is taken to manage any perceived risks.
3.1.5.2 Approved Methodology for Changing Limits and Adding/Removing Counterparties
Credit ratings for individual counterparties can change at any time. The Head of Financial Services is responsible for applying the stated credit rating criteria in 3.1.5.1. for selecting approved counterparties, and will add or delete counterparties as appropriate to / from the approved counterparty list when there is a change in the
9 APPENDIX E credit ratings of individual counterparties or in banking structures e.g. on mergers or takeovers.
The Head of Financial services will also adjust lending limits and periods when there is a change in the credit ratings of individual counterparties or in banking structures e.g. on mergers or takeovers in accordance with the criteria in 3.1.5.1.
3.1.6 Refinancing risk management
Principle: This Council will ensure that its borrowing, private financing and partnership arrangements are negotiated, structured and documented, and the maturity profile of the monies so raised are managed, with a view to obtaining offer terms for renewal or refinancing, if required, which are competitive and as favourable to the Council as can reasonably be achieved in the light of market conditions prevailing at the time.
It will actively manage its relationships with its counterparties in these transactions in such a manner as to secure this objective, and will avoid over-reliance on any one source of funding if this might jeopardise achievement of the above.
Projected capital investment requirements
3 year projections are in place for capital expenditure and its financing or funding. Financing will be from capital receipts, reserves and any grants or contributions awarded, revenue resources or reserves. Funding will be from internal or external borrowing, as decided.
As required by the Prudential Code, the Council will undertake Options Appraisal to evaluate the best capital expenditure financing route.
The Council’s projected long-term borrowing requirement will be linked to the projected Capital Financing Requirement.
Debt profiling, policies and practices
Any longer term borrowing will be undertaken in accordance with the Prudential Code and will comply with the Council’s Prudential Indicators and the Annual Treasury Management Strategy.
The Council will maintain through its various treasury spreadsheets reliable records of the terms and maturities of its borrowings, capital, project and partnership funding and, where appropriate, plan and successfully negotiate terms for its refinancings.
Where the lender to the Council is a commercial body the Council will aim for diversification in order to spread risk and avoid over-reliance on a small number of counterparties.
Policy concerning limits on revenue consequences of capital financings
The revenue consequences of financing the capital programme are included in cash flow models, annual revenue estimates and medium term forecasts.
10 APPENDIX E
3.1.7 Legal and regulatory risk management
Principle: The Council will ensure that all of its treasury management activities comply with its statutory powers and regulatory requirements. It will demonstrate such compliance, if required to do so, to all parties with whom it deals in such activities. In framing its credit and counterparty policy under TMP1 Credit and counterparty risk management, it will ensure that there is evidence of counterparties’ powers, authority and compliance in respect of the transactions they may effect with the organisation, particularly with regard to duty of care and fees charged.
The Council recognises that future legislative or regulatory changes may impact on its treasury management activities and, so far as it is reasonably able to do so, will seek to minimise the risk of these impacting adversely on the organisation.
The Council operates its treasury management practices in accordance with the provisions of the Local Government and Housing Act 1989 and the CIPFA Treasury Code of Practice 2001 and subsequent amendments. The Council’s powers are documented in the Treasury Management Policy statement, the Treasury Management Practices and the Schedules.
Counterparties are included on the lending list where they fully comply with the lowest common denominator Credit Rating requirements from Fitch, S&P and Moody’s, as provided by the Council’s treasury advisors or where they meet the specified exceptional criteria.
The Head of Financial Services will review the Legal and Regulatory framework in order to assess the impact of any changes on the Council.
Procedures for evidencing the organisation’s powers/ authorities to counterparties
The Council’s Financial Regulations contain evidence of the power/ authority to act as required by section 151 of the Local Government Act 1972, under the general direction of the Council and the Audit Committee.
The Council will confirm, if requested to do so by counterparties, the powers and authorities under which the Council effects transactions with them.
Where required, the Council will also establish the powers of those with whom they enter into transactions, including any compliance requirements in respect of a duty of care and best practice.
Required information from counterparties concerning their powers/ authorities
Lending shall only be made to institutions on the Council’s authorised lending list.
The Council will only undertake borrowing from approved sources such as the PWLB, organisations such as the European Investment Bank and from commercial banks who are on the Council’s list of authorised institutions, thereby minimising legal and regulatory risk. The list of approved sources of borrowing are contained in TMP 4.
11 APPENDIX E
Statement on political risks and management of the same
Political risk is managed by: • adoption of the CIPFA Treasury Management Code of Practice • adherence to Corporate Governance (TMP 12 – Corporate Governance) • adherence to the Statement of Professional Practice by the Head of Financial Services • the roles of the Council and the Audit Committee
Details of relevant Statutes and regulations
The treasury management activities of the Council shall comply fully with legal statute and the regulations of the Council. These are as follows:
. CIPFA’s Treasury Management Code of Practice 2001 and subsequent amendments . CIPFA Guide for Chief Financial Officers on Treasury Management in Local Authorities . CIPFA Prudential Code for Capital Finance in Local Authorities and subsequent amendments . CIPFA Standard of Professional Practice on Treasury Management . The Local Government Act 2003 . The Local Authorities (Capital Finance and Accounting) (England ) Regulations 2003 SI 2003 No 3146, and subsequent amendments . Pensions, England and Wales - The Local Government Pension Scheme (Management and Investment of Funds) Regulations 2009 – SI 2009 No 3093 . The CLG’s statutory Guidance on Minimum Revenue Provision (MRP) . The ODPM’s (now CLG’s) Guidance on Local Government Investments in England issued March 2004 and subsequent amendments . The Local Authorities (Contracting out of Investment Functions) Order 1996 SI 1996 No 1883 . LAAP Bulletins . Code of Practice on Local Authority Accounting in the United Kingdom based on International Financial Reporting Standards (from 2010/11 onwards) . Accounts and Audit Regulations 2003, as amended together with CLG’s Guidance . The Non Investment Products Code (formerly known as The London Code of Conduct) for principals and broking firms in the wholesale markets . Council’s Constitution including:- o Standing Order relating to Contracts o Financial Regulations o Scheme of Delegation . CLG’s Self-Financing Policy Documentation and subsequent amendments
3.1.8 Fraud, error and corruption, and contingency management
Principle: The Council will ensure that it has identified the circumstances which may expose it to the risk of loss through fraud, error, corruption or other eventualities in its treasury management dealings. Accordingly, it will employ suitable systems and
12 APPENDIX E procedures, and will maintain effective contingency management arrangements, to these ends.
In order to mitigate these risks it is a system requirement that three officers need to be involved in order to facilitate a CHAPS payment via internet banking. The first officer will set up the payment details and each of the two other officers will verify the details and authorise payment. Payment is only to be made on appropriately authorised documentation.
For payments to investment counterparties and other regular payments (e.g. Inland Revenue, Foundation or Academy schools) the payee name and bank details will be set up as named beneficiaries within the system. This requires two officers. Any amendment to these details will only be actioned following both a written request and subsequent verification confirmed with the usual point of contact/representative of the organisation concerned.
For payments to other adhoc creditors (which may arise from time to time) the payee bank details should be ascertained via the Olas purchase ledger. (Only creditors staff are able to amend these details.) Even if the bank details are included on the invoice this should be checked with the information on Olas. If the details are different then verify the change (as above) prior to making payment.
3.1.8.1 Details of Systems and Procedures to be followed, including Internet services
The Head of Financial Services will ensure that all Treasury Management procedures are fully documented and approved and that they contain adequate levels of internal control. All computer systems or electronic forms of recording or transmitting data will have adequate security and back up provisions.
The Head of Financial Services will ensure that the Treasury Management Function is subject to regular internal audit, the intention being that this will generally take place once each year with sufficient programmed days to cover all aspects its activity.
3.1.8.2 Emergency and Contingency Planning Arrangements
In the event of the Treasury Management software being unavailable, due to power failure or problems with the system, arrangements for the day-to-day treasury function will be undertaken direct with the Council’s bank Barclays. A minimum of two staff with appropriate authority will be available at all times to ensure the functioning of the Treasury Management Function and an adequate separation of duties.
The full Contingency Planning procedures for the continued operation of the Treasury Management function are maintained by the Capital and Treasury Management Accountant, copies of this are kept off site.
13 APPENDIX E 3.1.8.3 Insurance Cover Details
Treasury Management Function is covered under the Council’s Fidelity Guarantee Policy.
3.1.9 Market risk management
The Council will seek to ensure that its stated treasury management policies and objectives will not be compromised by adverse market fluctuations in the value of the principal sums it invests, and will accordingly seek to protect itself from the effects of such fluctuations.
3.1.9.1 Details of Approved Procedures and Limits for Controlling Exposure to Investments whose Capital Value may Fluctuate (GILTS, CDS, etc.)
Where the Council makes use of fund managers they may deal in Gilts, Certificates of deposit etc. on behalf of the Council. The limit for these will be the value of the fund, held by the external body at the time. The fund will be able to be liquidated within 7 days.
3.2 TMP2 BEST VALUE AND PERFORMANCE MEASUREMENT
Principle: The Council is committed to the pursuit of best value in its treasury management activities, and to the use of performance methodology in support of that aim, within the framework set out in its Treasury Management Policy Statement.
Accordingly, the treasury management function will be the subject of ongoing analysis of the value it adds in support of the organisation’s stated business or service objectives. It will be the subject of regular examination of alternative methods of service delivery, of the availability of fiscal or other grant or subsidy incentives, and of the scope for other potential improvements. The performance of the treasury management function will be measured using the criteria set out in this section.
3.2.1 Methodology to be applied for evaluating the impact of Treasury Management Decisions
All Treasury Management decisions will be recorded by the Capital and Treasury Management Accountant. A monthly report will be produced and any significant decisions notified to the Head of Financial services on the monthly report. Rates quoted for investments and borrowing will be recorded and monitored against benchmarks, any benchmarking reports will consider risk as well as the rate of return. Market trends will be compared to expectations.
3.2.2 Policy Concerning methods for Testing Best Value in Treasury Management
3.2.2.1 Frequency and processes for review
14 APPENDIX E The Treasury Management function will be included within the Best Value Review of Financial Services.
3.2.2.2 Banking services
Banking services will be retendered or renegotiated periodically in line with accepted procurement practice to ensure that the level of prices reflect efficiency savings achieved by the supplier and current pricing trends.
3.2.2.3 Money-broking services
The Council will use money broking services in order to make deposits or to borrow, and will establish charges for all services prior to using them. The Council will also deal direct with Counterparties that appear on the lending lists where it can be shown that the rates achievable by dealing direct are higher than those that could have been achieved by dealing through Money-brokers.
An approved list of brokers will be established which takes account of both prices and quality of services. Note that fees are only due when the authority chooses to borrow using money brokers.
3.2.2.4 Consultants’/advisers’ services
The Council may appoint professional treasury management advisers as and when it is deemed necessary to do so. The performance of these advisors will be monitored on an ongoing basis and be the subject of a tendering process.
Where Treasury Management Advisers are appointed they will be expected to:
• Provide creditworthiness advice and updates on credit developments. • Provide rating watch information and highlight any impact on the Council’s Lending list. • Review all Treasury Management reports and check compliance with the Treasury Management Code of Practice, the Prudential Code and Best Practice. • Provide suitable Economic Information including Interest Rate forecasts. • Offer suitable Training and Seminars to support Members and Officers. • Provide technical advice help and support as required.
3.2.2.5 External Fund Managers
The Council may appoint full-time cash/external investment fund managers and will comply with the Local Organisations (Contracting Out of Investment Functions) Order 1996 [SI 1996 No 1883}.
The fund Manager will undertake all activity in accordance with the provisions set out in this document.
The delegation of investment management to external managers will entail the following:
15 APPENDIX E • Agreement of a formal contractual agreement and documentation; • Agreement on terms for early termination of the contract; • Setting of a benchmark of [7 day LIBID] and a performance target of exceeding the benchmark; • Setting of investment counterparty constraints; • Quarterly reporting of performance; • At least annual meetings with investment managers; • Setting of other constraints/parameters/conditions:
The Council’s Treasury Management advisors will assist in monitoring the performance of the fund managers.
3.2.3 Methods to be Employed for Measuring the Performance of the Organisation’s Treasury Management Activities
Performance will be measured against the Benchmark figures agreed. Performance will also be monitored by comparing expected levels of interest to the interest Budgets set in the Budget setting process.
3.2.4 Benchmarks and Calculation Methodology:
3.2.4.1 Debt management
Average rate on all external debt Average rate on external debt borrowed in previous financial year Average rate on internal borrowing Average period to maturity of external debt Average period to maturity of new loans in previous year
3.2.4.2 Investment
The performance of investment earnings will be measured against the following benchmarks:
a. In house investments 7 day LIBID b. Cash fund manager 7 Day LIBID
It is recognised that these benchmarks must be assessed in the overall context of Security and Liquidity being more important than yield.
3.3 TMP3 DECISION-MAKING AND ANALYSIS
Principle: The Council will maintain full records of its treasury management decisions, and of the processes and practices applied in reaching those decisions, both for the purposes of learning from the past, and for demonstrating that reasonable steps were taken to ensure that all issues relevant to those decisions were taken into account at the time. The issues to be addressed and processes and practices to be pursued in reaching decisions are detailed below.
16 APPENDIX E
Whilst the Council will take advice from external consultants as and when required it is recognised that the final decision for all treasury management activity lies with the Council.
3.3.1 Funding, Borrowing, Lending, and New Instruments / Techniques:
3.3.1.1 Records to be kept
Details of all rates achieved on new investments and borrowing will be kept by the Head of Financial Services, along with rates requested from other sources that were rejected. This is to show that the Head of Financial Services consulted different areas of the market place and will support the decision that was made. All documentation to support investment / borrowing decisions will be available for inspection by internal audit.
3.3.1.2 Processes to be pursued
When investment decisions are to be made the Capital and Treasury Management Accountant will seek rates from at least 2 brokers or Counterparties that deal direct and a comparison will be made with indicative rates quoted by brokers on the day, these rates together with the reason for the chosen rate (not always the Highest rate quoted) will be recorded on the deal ticket or electronically and will be made available for inspection. (Since the start of the credit crisis and the nominal rates achieved on investments the Treasury Team have concentrated their efforts firmly on capital protection and risk management, in practice the Council has a very restricted lending list and there is often little or no choice where to place investments).
Borrowing decisions will be made by the Head of Financial Services in the light of the Councils medium term budgetary requirement. The interest rate type, period of the loan and reason for the need to borrow will be recorded by the Finance Manager or the Capital and Treasury Management Accountant.
3.3.1.3 Issues to be addressed.
3.3.1.3.1 In respect of every decision made the Council will:
a) Above all be clear about the nature and extent of the risks to which the organisation may become exposed. b) Be certain about the legality of the decision reached and the nature of the transaction, and that all approvals to proceed have been obtained. c) Be content that the documentation is adequate both to deliver the organisation’s objectives and protect the organisation’s interests, and to deliver good housekeeping. d) Ensure that third parties are judged satisfactory in the context of the organisation’s creditworthiness policies, and that limits have not been exceeded. e) Be content that the terms of any transactions have been fully checked against the market, and have been found to be competitive.
17 APPENDIX E 3.3.1.3.2 In respect of borrowing and other funding decisions, the Council will:
a) Evaluate the economic and market factors that might influence the manner and timing of any decision to fund. b) Consider the merits and demerits of alternative forms of funding, including funding from revenue, leasing and private partnerships. c) Consider the ongoing revenue liabilities created, and the implications for the organisation’s future plans and budgets.
3.3.1.3.3 In respect of investment decisions, the organisation will:
a) Consider the optimum period, in the light of cash flow availability and prevailing market conditions b) Consider the alternative investment products and techniques available, especially the implications of using any which may expose the organisation to changes in the value of its capital.
TMP 4 APPROVED INSTRUMENTS, METHODS AND TECHNIQUES
Principle: The Council will undertake its treasury management activities by employing only those instruments, methods and techniques detailed below and within the limits and parameters defined in TMP1, Risk management.
Where this organisation intends to use derivative instruments for the management of risks, these will be limited to those set out in its annual treasury strategy. The organisation will seek proper advice and will consider that advice when entering into arrangements to use such products to ensure that it fully understands those products.
3.4.1 Approved Activities of the Treasury Management Operation
• borrowing; • lending; • debt repayment and rescheduling; • consideration, approval and use of new financial instruments and treasury management techniques; • managing the underlying risk associated with the Organisation’s capital financing and surplus funds activities; • managing cash flow; • banking activities; • leasing; • the use of external fund managers
3.4.2 Approved Instruments for Investment
In accordance with The Local Organisations (Capital Finance) (Approved Investments) Regulations 1990 and subsequent amendments, the instruments approved for investment and commonly used by local organisations are: • Gilts;
18 APPENDIX E • Treasury Bills; • Deposits with banks, building societies or local organisations (and certain other bodies) for up to 10 years; • Certificates of deposits with banks or building societies for up to 10 years; • Bonds • Euro-Sterling issues by certain Supra-national bodies listed on the London and Dublin Stock Exchanges. • Money Market Funds • The Governments DMA Facility • Pooled funds, i.e. collective investment schemes as defined in SI 2004 No 534 • Reverse Repurchase Agreements (Repos)
3.4.3 Approved Techniques
• Forward dealing up to 10 years • Callable deposits up to 5 years
3.4.4 Approved Methods and Sources of Raising Capital Finance
Finance will only be raised in accordance with the Local Government and Housing Act, 1989, and within this limit the Council has a number of approved methods and sources of raising capital finance. These are:
On Balance Sheet Fixed Variable PWLB • • Market (long-term) • • Market (temporary) • • Municipal Bonds • • Local Authorities and Other Public Bodies • • Overdraft • Internal (capital receipts & revenue balances) • • European Investment Bank • •
Off Balance Sheet Leasing (not operating leases) • • Deferred Purchase • •
Other Methods of Financing Government and EU Capital Grants Lottery monies PFI
All forms of funding will be considered dependent on the prevailing economic climate, regulations and local considerations. The Head of Financial Services has delegated powers through this Policy and the Strategy to take the most appropriate form of borrowing from the approved sources.
3.4.5 Limits
19 APPENDIX E
INVESTMENTS LIMIT Gilts £5m Treasury Bills Unlimited Deposits (including Money Market Funds) Unlimited Bonds £10m Certificates of deposits £10m Pooled Funds and Similar Vehicles £10m Euro-Sterling. £5m Reverse Repurchase Agreements (Repos) £5m
Forward dealing £5m Callable deposits £30m
BORROWING On Balance Sheet PWLB 100% Municipal Bonds 25% Market (long-term) 20% Market (temporary) 20% Local Authorities and Other Public Bodies 20% Overdraft £5m Internal (capital receipts & revenue balances) 100%
3.5 TMP5 ORGANISATION, CLARITY AND SEGREGATION OF RESPONSIBILITIES, AND DEALING ARRANGEMENTS
Principle: The Council considers it essential, for the purposes of the effective control and monitoring of its treasury management activities, and for the reduction of the risk of fraud or error, and for the pursuit of optimum performance, that these activities are structured and managed in a fully integrated manner, and that there is at all times a clarity of treasury management responsibilities.
The principles on which this will be based is a clear distinction between those charged with setting treasury management policies and those charged with implementing and controlling these policies, particularly with regard to the execution and transmission of funds, the recording and administering of treasury management decisions, and the audit and review of the treasury management function.
If and when The Council intends, as a result of lack of resources or other circumstances, to depart from these principles, the responsible officer will ensure that the reasons are properly reported in accordance with TMP6 Reporting requirements and management information arrangements, and the implications properly considered and evaluated.
The Head of Financial Services will ensure that there are clear written statements of the responsibilities for each post engaged in treasury management, and the arrangement for absence cover. The present arrangements are detailed in the schedule in this section.
20 APPENDIX E The Head of Financial Services will ensure there is proper documentation for all deals and transactions, and that procedures exist for the effective transmission of funds. The present arrangements are detailed in this section.
The delegations to the Head of Financial Services in respect of treasury management are set out in this section. The Head of Financial Services will fulfil all such responsibilities in accordance with the organisation’s policy statement and TMPs and, if a CIPFA member, the Standard of Professional Practice on treasury management.
3.5.1 Limits to Responsibilities/Discretion at Committee/Executive Levels
Council a) Receiving and reviewing reports on treasury management policies, practices and activities. b) Budget consideration and approval
Audit Committee / Cabinet a) Approval of amendments to the organisation’s adopted clauses, treasury management policy statement and treasury management practices b) Budget monitoring c) Approval of the decision of responsibilities d) Receiving and reviewing external audit reports and acting on recommendations e) Approving the selection of External Fund Managers and agreeing terms of appointment.
3.5.2 Principles and Practices Concerning Segregation of Duties
The Head of Financial Services will ensure that there is proper segregation of duties in place for Treasury Management.
3.5.3 Treasury Management Organisation Chart
Council (Committee) | Audit Committee / Cabinet | Head of Financial Services | Head of Accountancy | Finance Manager | Capital and Treasury Management Accountant | Treasury Accountant
3.5.4 Statement of Duties/Responsibilities of each Treasury Post
21 APPENDIX E
3.5.4.1 Head of Financial Services
1. The Head of Financial Services will:
a) Recommend clauses, treasury management policy / practices for approval, reviewing the same regular, and monitoring compliance b) Submit regular treasury management policy reports c) Submit budgets and budget variations d) Receive and review management information reports e) Review the performance of the treasury management function and promote best value reviews f) Ensure the adequacy of treasury management resources and skills, and the effective division of responsibilities within the treasury management function g) Ensure the adequacy of internal audit, and liaising with external audit h) Recommend the appointment of external service providers.
2. The Head of Financial Services has delegated powers through this policy to take the most appropriate form of borrowing from the approved sources, and to make the most appropriate form of investments in approved instruments.
3. Only officers approved by the Head of Financial Services or the Head of Accountancy will conduct dealing transactions. All transactions must be authorised by at least two of the named officers above.
4. The Head of Financial Services will ensure that the Policy is adhered to, and if not will bring the matter to the attention of elected members as soon as possible.
5. Prior to entering into any capital financing, lending or investment transaction, it is the responsibility of the Head of Financial Services to be satisfied, by reference to the Monitoring Officer, the Organisation’s legal department and external advisors as appropriate, that the proposed transaction does not breach any statute, external regulation or the Organisation’s Financial Regulations
6. It is also the responsibility of the Head of Financial Services to ensure that the Organisation complies with the requirements of The Non Investment Products Code (formerly known as The London Code of Conduct) for principals and broking firms in the wholesale markets.
3.5.4.2 Head of Accountancy / Finance Manager
The responsibilities of these posts will be: -
a) Planning, organising, directing and monitoring the Treasury Management function b) Ensuring compliance with the policy, practices and schedules. c) Regularly reporting to the Head of Financial Service regarding performance of the function
22 APPENDIX E d) Monitoring market conditions and advising the Head of Financial Services regarding its impact on the Council’s strategy
3.5.4.3 Capital and Treasury Management Accountant
The responsibilities of this post will be: -
a) Execution of transactions b) Adherence to agreed policies and practices on a day-to-day basis c) Maintaining relationships with third parties and external service providers d) Supervising treasury management staff e) Monitoring performance on a day-to-day basis f) Submitting management information reports to the responsible officer g) Identifying and recommending opportunities for improved practices.
3.5.4.4 Head of the paid service
The responsibilities of this post will be: -
a) Ensuring that the system is specified and implemented b) Ensuring that the Head of Financial Services reports regularly to the Audit Committee and/or the Council on treasury policy, activity and performance.
3.5.4.5 Monitoring Officer
The responsibilities of this post will be: -
a) Ensuring compliance by the Head of Financial Services with the treasury management policy statement and treasury management practices and that they comply with the law b) Being satisfied that any proposal to vary treasury policy or practice complies with law or any code of practice c) Giving advice to the Head of Financial Services when advice is sought.
3.5.4.6 Internal Audit
The responsibilities of Internal Audit will be: -
a) Reviewing compliance with approved policy and procedures b) Reviewing division of duties and operational practice c) Assessing value for money from treasury activities d) Undertaking probity audit of treasury function.
3.5.5 Absence Cover Arrangements
The Finance Manager will ensure that the Treasury Management function is adequately covered during normal business hours.
3.5.6 Dealing Limits
23 APPENDIX E The Finance Manager and the Capital and Treasury Management Accountant are permitted to place deals in accordance with the Counterparty Lists and Limits and approved Treasury Management Practices.
3.5.7 List of Approved Brokers
Tradition (UK) Ltd (now part of ICAP) Sterling Brokers Martin Brokers (UK) Plc Tullett Prebon King & Shaxson
Treasury staff are also authorised to deal direct with any of the Counterparties on the approved lending list, where it can be shown that better rates of interest can be achieved than would otherwise be available through Brokers.
3.5.8 Policy on Brokers’ Services
The Authority aims to achieve a spread of brokers, together with the use of direct dealing counterparties in order to secure suitable deals.
3.5.9 Policy on Taping of Conversations
The Authority does not currently tape telephone calls made to brokers. It is understood that the broker firms used do tape all telephone conversations and deals are always confirmed in writing by the broker and the body receiving or paying over the money, these documents will be retained.
3.5.10 Direct Dealing Practices
The Authority aims to achieve a spread of brokers, together with the use of direct dealing counterparties in order to secure suitable deals.
3.5.11 Settlement Transmission Procedures
On maturity of an investment or loan the Broker / Counterparty involved will always be contacted by the Treasury Management staff to confirm what the Authorities intentions are with regard to the maturity and whether it is to be repaid.
3.5.12 Documentation Requirements
Copies of all correspondence with brokers will be kept and made available for inspection.
3.6 TMP6 REPORTING REQUIREMENTS AND MANAGEMENT INFORMATION ARRANGEMENTS
Principle: The Council will ensure that regular reports are prepared and considered on the implementation of its treasury management policies; on the effects of decisions taken and the transactions executed in pursuit of those policies; on the
24 APPENDIX E implications of changes, particularly budgetary, resulting from regulatory, economic, market or other factors affecting its treasury management activities; and on the performance of the treasury management function.
As a minimum, the Council will receive:
• An annual report on the strategy and plan to be pursued in the coming year • An annual report on the performance of the treasury management function, on the effects of the decisions taken and the transactions executed in the past year, and on any circumstances of non-compliance with the organisation’s Treasury Management Policy Statement and TMPs. It is recognised that The Audit Committee are responsible for ensuring effective scrutiny of the Treasury Management Strategy, policies and activities and as such they will receive:
• A copy of the annual report on the strategy and plan to be pursued in the coming year together with the Treasury Management Prudential Indicators. • Periodic update reports together with the full annual report on the performance of the treasury management function, on the effects of the decisions taken and the transactions executed in the year to date, and on any circumstances of non- compliance with the organisation’s Treasury Management Policy Statement and TMPs.
3.6.1 Annual Treasury Management Strategy Statement
The Treasury Management Strategy sets out the specific expected treasury activities for the forthcoming financial year. This Strategy will be submitted to the Audit Committee and full Council for approval before the commencement of each financial year.
The formulation of the annual Treasury Management Strategy involves determining the appropriate borrowing and investment decisions in the light of the anticipated movement in both fixed and shorter-term variable interest rates. For instance, the Council may decide to postpone borrowing if fixed interest rates are expected to fall, or borrow early if fixed interest rates are expected to rise.
The Treasury Management Strategy is concerned with the following elements: • the prospects for interest rates; • the limits placed by The Council on treasury activities • the expected borrowing strategy; • the expected temporary investment strategy (including the appointment of fund managers); • Other Issues
3.6.2 Policy on Interest Rate Exposure
As required by section 45 of the Local Government and Housing Act, 1989, the Council must approve before the beginning of each financial year the following treasury limits
25 APPENDIX E • The overall borrowing limit. • The amount of the overall borrowing limit which may be outstanding by way of short-term borrowing. • The maximum proportion of interest on borrowing which is subject to variable rate interest.
The Head of Financial Services is responsible for incorporating these limits into the Annual Treasury Management Strategy, and for ensuring compliance with the limits. Should it prove necessary to amend these limits, the Head of Financial Services shall submit the changes for approval to the Audit Committee before submission to the full Council for approval.
3.6.3 Annual Report on Treasury Management Activity
An annual report will be presented to the Audit Committee and Full Council at the earliest practicable meeting after the end of the financial year, but in any case by the end of September. This report will include the following: -
a. a comprehensive picture for the financial year of all treasury policies, plans, activities and results. b. transactions executed and their revenue (current) effects. c. report on risk implications of decisions taken and transactions executed. d. monitoring of compliance with approved policy, practices and statutory / regulatory requirements. e. monitoring of compliance with powers delegated to officers. f. degree of compliance with the original strategy and explanation of deviations. g. explanation of future impact of decisions taken on the organisation. h. measurements of performance. i. report on compliance with CIPFA Code recommendations.
3.6.4 Management Information Reports
Management information reports will be prepared every month by the Capital and Treasury Management Accountant and will be presented to the following officers: - -Finance Manager -Head of Accountancy -Head of Financial Services
These reports will contain the following information: - • Summary of the Authorities financial position for the Current year and previous financial years • Details of all current investments / loans • Details of the Interest Budget and Interest Projections • All notes relevant to the Treasury Management function, including where applicable the reasons behind and the impact of any decisions made
3.6.5 Periodic Monitoring Committee Reports
Interim reports will be prepared where significant matters arise that need to be reported to Committee.
26 APPENDIX E
3.7 TMP 7 BUDGETING, ACCOUNTING AND AUDIT ARRANGEMENTS
Principle: The responsible officer will prepare, and The Council will approve and, if necessary, from time to time amend, an annual budget for treasury management, which will bring together all of the costs involved in running the treasury management function, together with associated income. The matter to be included in the budget will at minimum be those required by statute or regulation, together with such information as will demonstrate compliance with TMP1 Risk management, TMP2 Best value and performance measurement, and TMP4 Approved instruments, methods and techniques. The Head of Financial Services will exercise effective controls over this budget, and will report upon and recommend any changes required in accordance with TMP6 Reporting requirements and management information arrangements.
The Council will account for its treasury management activities, for decisions made and transactions executed, in accordance with appropriate accounting practices and standards, and with statutory and regulatory requirements in force for the time being.
The Council will ensure that its auditors, and those charged with regulatory review, have access to all information and papers supporting the activities of the treasury management function as are necessary for the proper fulfilment of their roles, and that such information and papers demonstrate compliance with external and internal policies and approved practices.
3.7.1 Statutory/Regulatory Requirements
The Treasury Management Budget and Interest Budgets will be set as part of the Authorities main Budget setting process as required by The Council. Treasury Management is subject to an annual Audit by Internal Auditors and is also audited by External Audit as part of the main Financial Services Audit
3.8 TMP 8 CASH AND CASH FLOW MANAGEMENT
Principle: Unless statutory or regulatory requirements demand otherwise, all monies in the hands of The Council will be under the control of the Head of Financial Services, and will be aggregated for cash flow and investment management purposes. Cash flow projections will be prepared on a regular and timely basis, and the Head of Financial Services will ensure that these are adequate for the purposes of monitoring compliance with TMP1[1] Liquidity risk management. The present arrangements for preparing cash flow projections, and their form, are set out below.
3.8.1 Arrangements for Preparing/Submitting Cash Flow Statements
The Capital and Treasury Management Accountant will prepare a rolling cash flow forecast which will cover at least 12 months, based on information gathered from within the Council. This cash flow forecast will be continually updated as new information is received. The cash flow forecast will contain information for every day of the year for all bank accounts.
27 APPENDIX E 3.8.2 Listing of Sources of Information
Information will be provided to the Treasury Management Team by other members of Financial Services and the Council in general.
3.8.3 Bank Statements Procedures
Bank statements are received daily and retained where required. Summary bank statements are also available in electronic format through the use of Treasury Management Software.
3.9 TMP 9 MONEY LAUNDERING
Background: The Proceeds of Crime Act (POCA) 2002 consolidated, updated and reformed criminal law in the UK in relation to money laundering. The principal offences relating to money laundering are: . Concealing, disguising, converting, transferring or removing criminal property from England and Wales, from Scotland or from Northern Ireland . Being concerned in an arrangement which a person knows or suspects facilitates the acquisition, retention use or control of criminal property . Acquiring, using or possessing criminal property.
Other offences include failure to disclose money laundering offences, tipping off a suspect either directly or indirectly, and doing something that might prejudice an investigation.
Organisations pursuing relevant businesses were required to appoint a nominated officer and implement internal reporting procedures; train relevant staff in the subject; establish internal procedures with respect to money laundering; obtain, verify and maintain evidence and records of the identity of new clients and transactions undertaken and report their suspicions.
In December 2007, the UK Government published the Money Laundering Regulations 2007, which replaced the 2003 Regulations.
CIPFA believes that public sector organisations should “embrace the underlying principles behind the money laundering legislation and regulations and put in place anti money laundering policies, procedures and reporting arrangements appropriate and proportionate to their activities”.
Principle : The Council is alert to the possibility that it may become the subject of an attempt to involve it in a transaction involving the laundering of money. Accordingly, it will maintain procedures for verifying and recording the identity of counterparties and reporting suspicions, and will ensure that staff involved in this are properly trained.
28 APPENDIX E 3.9.1 Procedures for Establishing Identity / Authenticity of Lenders
The Council does not accept loans from individuals. All loans are obtained from the PWLB, Local Authorities or Other Public Bodies or from authorised institutions under the Banking Act 1987: (the names of these institutions appeared on the Bank of England quarterly list of authorised institutions until 1.12.2001 when the Financial Services Authority (FSA) took over the responsibility for maintaining a register of authorised institutions. This register can be accessed through their website on www.fsa.gov.uk).
3.9.2 Methodology for Identifying Sources of Deposit
These will be arranged through Authorised Money Brokers or by direct dealing.
3.10 TMP 10 STAFF TRAINING AND QUALIFICATIONS
3.10.1 Details of Approved Training
Principle: The Council recognises the importance of ensuring that all staff involved in the treasury management function are fully equipped to undertake the duties and responsibilities allocated to them. It will therefore seek to appoint individuals who are both capable and experienced and will provide training for staff to enable them to acquire and maintain an appropriate level of expertise, knowledge and skills. The Head of Financial Services will recommend and implement the necessary arrangements.
The Head of Financial Services will ensure that council members tasked with treasury management responsibilities, including those responsible for scrutiny, have access to training relevant to their needs and responsibilities.
Those charged with governance recognise their individual responsibility to ensure that they have the necessary skills to complete their role effectively.
The Treasury Management staff have all attended training courses provided both by the Council’s advisors and other organisations. The Finance Manager and the Capital and Treasury Management Accountant ensure that a proactive approach is taken to continually keeping abreast of changes within the Treasury Management field.
3.10.2 Approved Qualifications for Treasury Staff
Head of Financial Services CCAB (or CIMA) Head of Accountancy CCAB (or CIMA) Finance Manager CCAB (or CIMA) Capital and Treasury Management Accountant CCAB (or CIMA) Treasury Accountant AAT
3.10.3 Statement of Professional Practice (SOPP)
29 APPENDIX E Where the Head of Financial Services is a member of CIPFA, there is a professional need for the CFO to be seen to be committed to professional responsibilities through both personal compliance and by ensuring that relevant staff are appropriately trained.
Other staff involved in treasury management activities that are CCAB members must also comply with the SOPP.
3.10.4 Member Training
Council members tasked with Treasury Management responsibilities should be trained in the areas of their responsibility; and
Those charged with governance recognise their individual responsibility and ensure that they have the necessary skills to complete their role effectively.
3.11 TMP 11 USE OF EXTERNAL SERVICE PROVIDERS
Principle: The Council recognises that responsibility for treasury management decisions remains with the organisation at all times.
It recognises the potential value of employing external providers of treasury management services, in order to acquire access to specialist skills and resources. When it employs such service providers, it will ensure it does so for reasons which will have been submitted to a full evaluation of the costs and benefits. It will also ensure that the terms of their appointment and the methods by which their value will be assessed are properly agreed and documented, and subjected to regular review. And it will ensure, where feasible and necessary, that a spread of service providers is used, to avoid over reliance on one or a small number of companies. Where services are subject to formal tender or re-tender arrangements, legislative requirements will always be observed. The monitoring of such arrangements rests with the Head of Accountancy.
The terms of appointment of all Consultants are assessed and properly agreed and documented.
3.11.1 Details of Contracts with Service Providers, Including Bankers, Brokers, Consultants, Advisers
3.11.1.1 Banking services
a) Name of supplier of service - Barclays b) Contract commenced 1 April 2008 and runs for 3 years plus two optional 2 year extensions, with further extension the contract is now due to continue until 31 March 2016
30 APPENDIX E 3.11.1.2 Money-broking services
No contracts exist.
3.11.1.3 Cash/fund management services
Name of supplier of service - none.
3.11.1.4 Consultants’/advisers’ services
a) Name of supplier of service – Arlingclose b) Contract was competitively tendered and awarded February 2016 and runs for 3 years plus two optional 1 year extensions based on acceptable performance and there being an on-going requirements for consultants.
3.11.1.5 Software Suppliers
Name of supplier of service - none.
3.11.1.6 Credit Rating Agencies
The Council will make use of any information supplied by Moody’s, Standard and Poor’s and Fitch supplied by its Treasury Advisers.
3.11.1.7 Safe Custody Account
In order to buy and sell certain types of financial instrument including Certificates of Deposit and Treasury Bills the Council were required to set up a Safe Custody Account, this account was set up with a specialist broker King & Shaxson. Additional Safe Custody Accounts may need to be established with other brokers (e.g. Martin’s Brokers) in order to access new investments over the coming year.
3.11.2 Procedures and Frequency for Tendering Services
This will be in accordance with the Council’s standing orders.
3.12 TMP 12 CORPORATE GOVERNANCE
Principle: The Council is committed to the pursuit of proper corporate governance throughout its businesses and services, and to establishing the principles and practices by which this can be achieved. Accordingly, the treasury management function and its activities will be undertaken with openness and transparency, honesty, integrity and accountability.
The Council has adopted and has implemented the key recommendations of the Treasury Management Code of Practice as updated. This together with the other arrangements detailed below, are considered vital to the achievement of proper corporate governance in treasury management and the Head of Financial Services
31 APPENDIX E will monitor and if and when necessary, report upon the effectiveness of these arrangements.
Stewardship responsibilities
The Head of Financial Services ensures that systems exist to deliver proper financial administration and control and maintaining a framework for overseeing and reviewing the treasury management function.
List of documents to be made available for public inspection
The following documents are freely available for public inspection: Examples: • Annual Statement of Accounts • Budget Book • Medium Term Financial Plan (including Capital) • Treasury Management Policy • Treasury Management Strategy • Budget Monitoring Reports • Annual Treasury Report
Council’s website
Financial information is additionally available on the Council’s website.
Procedures for consultation with stakeholders
Members and senior officers of the Council are consulted via reports to the Audit Committee and officer/member briefing sessions.
32 APPENDIX E MTFP 2018/19 – 2019/20 Equality Impact Assessment
Title of Policy/Service/Project Medium Term Financial Plan 2018/19 – 2019/20 and the Budget 2018/19 Service Director Adam Richens, Chief Finance Officer Members of the Assessment Team: Daniel Biggs Date assessment completed: 19th January 2018
1.0 About the Policy/Service/Project:
1.1 The Equality Impact Assessment of the Medium-Term Financial Plan 2018/19 – 2019/20 and the Budget 2018/19 deals with:
i) The potential impact of the Medium Term Financial Plan 2018/19 – 2019/20 and the Budget 2018/19 (MTFP and Budget) on equality issues in accordance with our Public Sector Equality Duty (Sec149, Equality Act 2010).
ii) Any equality and diversity risks arising from acceptance and implementation of the MTFP and Budget.
iii) The Councils equality objectives can be found at the Equality and Diversity pages of the website. The Corporate strategy and Poole 2020 are also available on the website.
2.0 Background:
2.1 The aim of the MTFP is to set an annual balanced Budget (as is our legal requirement) to ensure resources are allocated to key service priorities of the Council and our strategic objectives can be met.
2.2 The Council has established a robust financial strategy to reduce its operating costs, reinvigorate the local economy, maintain frontline services and deliver on key priorities whilst minimising the impact to local Council Tax payers.
2.3 Over the last 7 years the Council has risen to this challenge while continuing to meet its strategic aims. However by 2020 the Council will be completely reliant on the money (net of fees and charges) it raises locally to pay for service delivery, representing a significant financial pressure that the Council needs to manage over the next 3 years (2018/19 - 2020/21).
2.4 At the time of writing this report the Council still needs to make additional transformational savings, efficiencies and/or additional resources of approximately £6.6m over 3 years.
2.5 It should also be noted that at the stage of writing some of the savings, efficiencies and additional resources being incorporated into the MTFP position have
1 Appendix 5 been assumed for financial planning purposes only as they remain subject to public and staff consultation and subsequent Member approval
2.6 The complete removal of Government funding, when coupled with the increasing demand and costs associated with Adults and Children's services means it has become increasingly hard to balance the Council’s budget, deliver universal services (such as refuse and recycling collections, libraries, parks and open spaces) and meet our core duties such as protecting vulnerable children and older people.
2.7 The action necessary to address the financial challenges facing us requires a readjustment of Council spend, reaching a point in 2021 in which 78% of the Council’s whole budget will be focused on delivering Adults and Children's services alone.
2.8 This readjustment will inevitably have impacts on the whole community, including a number of equality groups represented within it.
2.9 The purpose of this assessment is to ensure that, whilst setting a balanced Budget, the Borough of Poole has paid ‘due regard’ to equality when facing these challenging decisions. In accordance with our statutory Public Sector Equality Duty (section 149, Equality Act 2010).
2.10 Purpose is not to detail specific equality impacts of individual proposals (these are captured in the individual Equality Impact Assessments of each relevant proposal) but to provide an overview of the direction of travel the council has taken in looking to balance budgets and plan for a sustainable financial future and any critical equality risks this may present.
3.0 Conclusion of the EQIA on MTFP:
3.1 The Council’s strategic and robust approach to the MTFP process and Budget setting does much to manage the risks and equality impacts of the difficult financial decisions facing the Council.
3.2 The MTFP and Budget continues to be developed within the context of the Council's Corporate Strategy which provides a clear long term vision for Poole and our ambition not only to be a great place to live, learn, work, play and do business, but also a place where the most vulnerable people in our community are looked after.
3.3 The application of the EQIA process throughout MTFP development allows scrutiny and consideration of the equality impacts of specific service changes before decisions are taken.
3.4 The impact of not making changes in certain service areas can create significant pressures elsewhere in the organisation Failure to find sufficient savings or revenue streams presents a risk to delivering a balanced budget and threatens the ability to protection the frontline services on which the vulnerable people depend.
2 Appendix 5
4.0 Associated services, policies or procedures:
Corporate Strategy 2016-19 Poole 2020 The Equality Act 2010; ‘Fairness for All’, (Borough of Poole’s equality and diversity policy); Equality Impact Assessment Guidance; Councils Efficiency Plan; Recruitment and Selection Policy; Reorganisation and Restructuring Policy; Redundancy and Redeployment Policy;
5.0 People, or groups of people, that this policy/service/project is designed to benefit and any other stakeholders involved:
5.1 The MTFP supports the development of the Council’s budgets within which it must deliver all statutory and other vital services. As a consequence this policy impacts on all people living and working in Poole. a) Local Residents b) Local Council Tax Payers c) Council Staff d) Clients of Adult Services e) Young People f) Voluntary and Community Sector led organisations
5.2 It is expected that the organisation will run as effectively as possible and mitigate any risks resulting from phased removal of Government funding. The MTFP proposal will enable the Administration to deliver its priorities and statutory responsibilities and maintain an adequate level of staff for the delivery of its services.
6.0 Demographics of Poole
6.1 Age The demographics of the local population have seen significant shifts over the years and most trends are predicted to continue. The broad age structure of Poole’s residents is shown below. The Borough has a higher proportion of older people than the national average. The population in Poole aged 65 or over is projected to increase by 34% to 46,000 by 2032.
Poole’s broad Count % age structure, 2015 Age band 0-15 26,454 17.6 16-64 90,987 60.4 65+ 33,136 22.0 Total 150,577 100
3 Appendix 5
Both locally and nationally, the growth in the elderly population, together with longer life expectancies, presents challenges particularly to planning housing and social care.
6.2 Disability In the 2011 Census, over 27,000 people in Poole (19% of the population) said that their day-to-day activities were limited by a long term health problem or disability. This is the same proportion as in the South West and 1% point higher than the national figure (18%).
6.3 Gender/Sex In 2012, the estimated population of Poole was 148,615 people of which, 49% were male and 51% were female. From ages 0-19 the number of boys outweighs the number of girls, but from 40+ females outweigh males.
The much higher proportion of females at age 80+ reflects the higher mortality rate of older males which matches the national trends for gender:
6.4 Race/Ethnicity In 2011 Census, 8.1% of Poole’s total population said they were from a Black & Minority Ethnic group, compared to 14% in England and Wales. Bournemouth’s ethnic minority population was 16.5%
39.5% of people aged 0-24 in Poole were from a BME background which was higher than the number in England and Wales (34.8%) (Ethnic Group by Age, 2011 Census, Nomisweb).
The largest population increases amongst ethnic minority groups in Poole were reported in the ‘Other White’ (+2,646), ‘Other Asian’ (+836) and ‘Indian’ (+780) ethnic groups. The substantial increase in the ‘Other White’ group may be due to the fact that Poland was the most common country of birth (13.1%) of non-UK born residents (2011 Census Theme Paper: Ethnicity, National Identity and Religion, Borough of Poole).
On top of these demographic trends we are seeing increasingly widening levels of health inequality and poverty depending on where you live in the town. These factors (and others) are contributing to an ever increasing demand for services as the number of people in Poole with multiple and complex needs rise.
7.0 Our Approach to financial challenge
7.1 The Council’s commitment to its Public Sector Equality Duty is expressed in the Corporate Strategy with more defined objectives set out in our Equality and Diversity policy “Fairness for All”. To ensure that services remain accessible and responsive to need, ‘due regard’ to equality is embedded within our decision making processes.
7.2 Service Unit Heads (SUHs) are required to carry out EQIAs across their services. The budget planning framework includes the requirement that EQIA implications of
4 Appendix 5
any specific priorities or savings are identified by SUHs in bringing forward their budget proposals which are then used to inform the Council’s final Budget decisions.
7.3 Where these are attached to significant savings and efficiency items they will also have been considered by the appropriate Overview and Scrutiny Committee.
7.4 An assessment of the potential cumulative impact of separate proposals across all portfolio areas will be examined through the process by the Council’s Management Team and reflected as necessary through subsequent MTFP Update reports to Cabinet and Council as it progresses through the planning cycle.
7.5 EQIAs are an important service improvement tool to help us develop services to meet the needs of our users and deliver our core business more efficiently. EQIAs help us demonstrate that we are making financial decisions in a fair, transparent and robust way, considering the needs and the rights of different members of our community.
7.6 The response to the financial challenge we have been set as a Council is summarised in Poole 2020, setting out an approach which focuses on acting responsibly and preparing for the future by changing the way we work. We continue to look at proposals such as;
R a is in g C o u n cil Ta x including the implementation of the Governments social care precept (it should be noted that Poole has had the lowest Council Tax in Dorset over the last 17 years).
Further cost cutting and redesigning of services.
Working more closely with partners to deliver services together.
Generating new income streams to support local services.
Reviewing fees and charges.
7.7 To support this approach beyond 2020 as demand and demographic changes continue to present a financial challenge to the Council a twofold approach has been developed.
7.8 Short term – Balancing the next few years: In order to ensure Members meet their statutory responsibilities to set a balanced budget each year, the Council is further developing the following workstreams;
Delivering a range of proposals which will generate positive returns to the Council.
In ve s tin g in ke y C o un cil p rio ritie s .
Encouraging and incentivising people into work.
Continuing to develop partnerships with other Public Sector Bodies.
5 Appendix 5
Redesigning services and driving out efficiencies.
Exploring a Digital Council approach.
Considering commercialisation of its services where appropriate.
Considering levels of fees and charges.
Reviewing Council pay and cost of employment policies.
7.9 Medium to long term: Exploring options for the reorganisation of local government in Dorset. We are committed to working in the best long-term interests of residents and businesses of Poole. Associated with this is a review of the financial and operating policies of the various Dorset Authorities to better position the Council in moving to a new configuration and to provide consistency in revenue streams and safeguard valuable frontline services.
7.10 No adjustments to the MTFP savings strategy have been made to reflect the ‘minded to decision’ by the Secretary of State for Communities and Local Government to support the two new unitary councils in Dorset. The requirement to set a balanced 2018/19 budget still remains pertinent.
8.0 Assessing the Impact of the proposals on the workforce
8.1 The consideration of equality impacts of redesign and restructure on staff applies to a number of service savings across the Council.
8.2 The inevitable consequence of focusing on service redesign and restructuring to achieve overall savings is the impact to staff levels. Our workforce is vital to delivering good quality services to the residents of Poole and a workforce that reflects the make-up of the communities we serve is one of the best ways to ensure services remain relevant and responsive to the needs of the customer.
8.3 Poole currently has under representation within it’s workforce across most protected characteristic; from younger people, employees with a disabilities, black and minority ethnic people and sexual orientation.
8.4 Significant reduction in staffing levels and support functions, has safeguarded frontline services but created capacity issues in a time of demanding and complex change.
8.5 Where restructure is used as the means of reducing the size of the team /organisation the Redundancy Policy and Procedure need to be followed to produce a fair and transparent process. Where other relevant procedures may be appropriate it is important to ensure consultation with the appropriate trade unions to agree on the most appropriate procedure in the circumstances.
8.6 Equality Impact Assessments form part of the redundancy and restructure process and considerations for those with protected characteristic should be taken into account.
6 Appendix 5
8.7 Given the profile of the organisation redundancies will undoubtedly have a greater impact on women and the Council will continue to ensure that its recruitment, selection and redundancy policies are fair to all staff. Support services within the Council are also job roles predominantly held by women.
8.8 Removal of part time and shared posts may have a disproportionately negative effect on female staff. When considering redeployment interview arrangements should be sensitive to the needs of staff. Capability assessments may need to give consideration to staff with disabilities. Advice should be sought from HR.
8.9 As the Council progresses towards the Future Dorset programme, Local Government Reorganisation projects will needs to consider equality impacts on the workforce.
MTFP Savings by Theme
9.0 Corporate Item contributions
9.1 A significant proportion of contributions to the MTFP and Budget come from Corporate Items most notably raising Council Tax and growing of the Council Tax base. Capital Contingencies, Local Government Finance Settlement, Reserves can all impact the starting position of the MTFP. Financial movement within these items have a significant impact on the need to find savings elsewhere in the budget through the services we deliver.
9.2 Local Council Tax Support Scheme (LCTSS) No changes are proposed to the Localised Council Tax Support Scheme for 2018/19 to maintaining the level of the protection for those on low incomes.
10.0 Place Theme savings
10.1 When applying the approaches to efficiency saving contributions to the MTFP (section 7.0) the Council has sought to focus savings on non statutory and universal services where any negative impacts of service changes are felt more equitably or the most vulnerable are often protected.
10.2 Place theme services offer the greatest opportunities for income generation, commercialisation, increases in fees and charges, redesign, partnerships and efficiencies in the use of Council assets. As a consequence a number of service changes and saving proposals do not require EQIAs that consider the impact on our communities but principally impact on our workforce as a consequence of restructures. (section 8.0)
10.3 In addition many of the services within the Place Theme represent services that can be considered neutral or pro-rich services (Culture, Highways, Planning,
7 Appendix 5
Beaches, Parks, Recreation and Tourism) as apposed to front-line services on which vulnerable people depend.
10.4 A number of projects in this service area have sought external funding to deliver service improvements. If successful equality implications and benefits are incorporated into projects plans to remove barriers to access to leisure, culture and open spaces across the town and enable a more diverse and representative customer/ service user base.
10.5 Reducing the contract price for supporting subsidised travel (100) (17) () Public transport and access to services in the town is the one area of Place services which can create significant impacts on protected groups. Withdrawal of subsidised local bus services with a view to reducing expenditure whilst mitigating as far as possible the impact on passengers.
10.6 Impact varies between the services in question and is dependent on the journey-purpose of the passenger. Where the service is proposed to be reduced it is an inconvenience for most people. However, if the passenger relies on the service to get to work, essential shopping, education or medical appointments then the impact can be considerably greater. Complete service withdrawals where no alternative route exists would result in passengers having to alter their journeys and/or travel on different days.
10.7 Route & Branch Member Working Group have investigated and reported to the Council’s Transportation Advisory Group. On-bus passenger survey information, information from the bus operators and consultees’ comments were used in putting together the proposals and recommendation.
10.8 Poole has high numbers and proportions of older people. Approximately 1/3 of bus journeys are undertaken by English National Concessionary Travel Scheme (ENCTS) bus pass holders, the majority of whom are older people. Research by Age UK found that older people rely on buses and cuts to services meant they: •struggled to get to hospital and doctors’ appointments •stayed in, missing social activities
10.9 Older people are less likely to hold a driving licence or have had to give up driving for health reasons.
10.10 Younger people also rely on bus services. This includes travel to school or college and also young people travelling to work or apprenticeships. Young people also often don’t have driving licences rely on bus services to visit friends and take part in social activities.
10.11 6.7% of ENCTS bus passes in Poole are held by people with disabilities. This would suggest that over 200,000 bus journeys are undertaken by people with a disability. The local bus fleet in Poole is now entirely low-floor providing access to people with mobility problems including wheelchair users (and passengers with other mobility impairments including parents with pushchairs). Many people with disabilities are unable to drive and are reliant on public transport for day to day living.
8 Appendix 5
10.12 Women are more likely to use local buses than men. Black and Minority Ethnic groups also are high users of buses.
10.13 The report demonstrated wherever possible negative impacts of service changes on bus users was minimised.
11.0 Corporate Services savings
11.1 A significant proportion of saving contributions has focused on efficiencies within the Business Improvement Theme, back office and support functions. The key savings are highlighted below.
11.2 Due to the nature of such services this commitment inevitably results in staff reductions. The equality implications of changes to the workforce need to be considered and it is important the Council’s HR policies on redundancy and restructure are followed (section 8).
11.3 In order to ensure that service delivery continues to be effective, staff engagement in the process is maintained and savings are achieved it is important that this commitment to shared corporate services continues. This will enable corporate services to more effectively support the wider process with a settled structure in place, and lay the foundations for the proposed new unitary council for the conurbation.
11.4 Restructure of Corporate Services - joint service arrangement (1,818) () () Reduced overhead costs by restructuring the Councils Corporate Services Directorate to reduce staff numbers, operating costs and to be more efficient. Teams include Financial Services, Human Resources, Legal & Democratic Services, Information Technology Services and Executive Functions.
11.5 Reduced Corporate Services Management Costs (125) () () Further savings from sharing corporate services senior managers with Bournemouth. Includes the Heads of Human Resources, Legal & Democratic Services and Information Technology Services. Previously the Head of Financial Services and Corporate Director became shared posts.
11.6 Cont. development of Revenue & Benefits Partnership (118) (101) (80) Extension of the Councils Stour Valley and Poole Partnership (SVPP) to include Bournemouth from April 2018.
11.7 Housing Benefit Service, Payment efficiencies (231) () () Adjustment to base revenue budget to reflect services efficiencies achieved over the last few years and to take account of a greater level of budgetary risk.
12.0 People Theme savings
12.1 Savings from the People Theme needs to be considered in the context of the significant levels of expenditure and resource focused in these service areas. As mentioned we currently allocate over 70% of the Councils budget to investing and
9 Appendix 5 strengthen vital Adults and Children’s services to protect the most vulnerable members of society and this is only set to rise.
12.2 For instance an Additional £6.2m investment in Adult Social Care is allocated over the next 3 years to manage; a) demographic growth in demand for care packages including those to support the urgent and emergency care system as well as prevent delayed discharges from hospital. b) assumptions around specific inflationary pressures within the care market including the ability to ensure the new National Living Wage applies to Care workers.
13.0 Adult Social Care savings
13.1 Cease Free Financial Management Service (60) The Council is stopping its free financial management services to adults who are unable to manage their own financial affairs and introducing a charge. The demand for the service is growing and the proposed fee would cover the costs to the Council of providing the service with no expectation of income generation.
13.2 There is no legal requirement to provide money management but the Council recognises the importance of supporting vulnerable people particularly where they are considered to be at risk of financial abuse.
13.3 Charging for the service secures it’s future while bring it into line with other authorities.
13.4 Consultation has been carried out with services users, carers and family members and a scale of charges will be applied. Those with under £2000 savings will be exempt from any charges rising to the maximum charge of £624 for those with over £10,000 in savings. Sensitivity to the communication needs of all those impacted by the introduction of charges for this service have been considered and implemented.
13.5 Health Care Hub (50) () () Savings continue to be found through the joint commissioning with Bournemouth Borough Council and Dorset CCG of the Care and Support at Home services (aka Continued Health Care CHC, Homecare, Domiciliary care). The commissioning partners worked together to co-produce a sustainable delivery model to provide long- term benefits to service users and partners.
13.6 The purpose was to support improved health, independence and inclusion, through the provision of an enabling care and support service at home and thus avoid or delay the need for residential care. The aim was also to influence capacity within the market and reduce current waiting lists for clients in need of services. To help develop the workforce, training levels, recruitment and retention in the sector. To achieve economies of scale, shared resources and alignment of quality and reliability of services through a joined up co-ordinated approach.
10 Appendix 5
13.7 This is a core functions and responsibility for the authority. Clients will be supported to live as independently as possible and the redesign of the Homecare service will enable this as far as possible for all age groups. Services will be able to meet the needs of an aging population in a personalised and empowering way. Assessment, support planning and outcomes will be tailored to the individual and will address issues that are specific to any protected characteristics under equality (be that age, gender, disability, race, sexual orientation, ..).
13.8 The requirement to move from a familiar service to a new provider may be challenging for some clients particularly where they have received the service for many years. Adjustments to change can be particularly difficult for the older age group, those with mental health conditions and those with a disability.
13.9 Work with the current providers to prepare for the handover of clients to the new provider is essential. The commissioning role encompasses the need to ensure compliance with equality and human rights and is necessary as part of the providers’ policy and practice.
13.10 Recommissioning Drug & Alcohol services (50) New pan-Dorset Substance Misuse Treatment Service commissioned to support service users with alcohol and drug issues. Service will offer treatment for children, young people and adults and will refer and link with partners in housing, education and mental health services.
13.11 In all instances the provider will be expected to adapt to service user needs and develop and deliver targeted initiatives to support a diverse range of clients. Quality questions in the procurement interviews have been designed to address known issues. They will work under national guidance and local policy ensuring the application of evidenced research in all actions to ensure that service users in Poole, Bournemouth and Dorset continually receive best offer and practice.
13.12 Service users, stakeholders and partners will continue to be consulted and kept informed throughout the decommissioning, implementation and mobilisation stages.
13.13 Contract monitoring and data evaluation may lead to commissioners requiring the provider/providers to make reasonable adjustments in order to ensure that the impact of the procurement and remodelling retains positive improvement for service users.
13.14 The mobilisation phase will require the provider/providers to liaise and consult with people who fit into the protected characteristics to ensure service access and support is adequate and appropriate to their needs
13.15 Currently hard to reach groups will be targeted for specific engagement and support initiatives as will income disadvantaged service users. Initiatives for outreach to those living in socially isolated areas through innovative use of digital media are expected to be developed with increased use of existing community venues.
11 Appendix 5
13.16 Better access for working people and parents are all expectations of the new services and services will work closely with DWP, Jobcentre Plus and housing partners to develop joined up working practices to ensure service users are best supported to develop recovery capital and reach their maximum potential.
14.0 Children’s Service savings
14.1 Efficiencies in Children in Care costs (450) A significant amount of work has been done to remodel the Children’s Social Care service which continues to produce savings. Thresholds have been revised (applying across Poole, Bournemouth and Dorset) to create a ‘Levels of Need’ document which clarifies when Children Social Care (CSC) need to intervene in a child’s life.
14.2 The new thresholds have also been useful in the development of Early Help services across the Borough. This has enabled the needs of families including children who have disabilities to be met at the earliest point without the need for CSC intervention and maintaining those families as close to universal services as possible.
14.3 Reunification of children within their Birth families continues to be a priority for young people in care unless plans for permanence have been established. Also work continues to reduce the number of children placed out of borough (at high cost) and back to local placements.
14.4 Mental health issues can be disproportionately experienced by vulnerable groups of children and young people including those children with disabilities. Investment in an effective preventative and treatment system for young people experiencing emotional, behavioural and mental health problems continues to help reduce demand for higher cost services down the line (including those for Children in Care).
14.5 Children centres service efficiencies (135) A fundamental review of Children Centre services also continues to provided savings contributions. The services are now more aligned towards early help and intervention activities (as mentioned above) aiming to reduce the number of complex and high cost cases reaching CSC services. All cases at Level of Need 3 are supported by services within Children, Young People and Learning free up capacity for CSC..
14.6 The Early Help offer fundamentally focuses on the most vulnerable families and ensures resources are targeting those with the greatest need including families with children with disabilities. The changes to service delivery continue to support equality of access and consistency of approach. Partnership with Dorset Healthcare University Foundation Trust (DHUFT) also improves integration of health visits and associated health outcomes through children centres.
12 Appendix 5
14.7 Reduction in subsidies for school transport (41) Council continues to subsidise and provide discretionary home to school transport; Savings contributions have been achieved through the phased increase in the annual parental contribution for the Grammar School transport arrangements. Retaining the bus network supports equality of access to the grammar schools from most areas of the borough. It also supports the Local Transport Plan policy of tackling traffic congestion and improving safety outside schools.
The proposal sets out to retain the network of buses to the grammar schools whilst reducing their cost to the Council. Those with a statutory entitlement to free transport and those meeting the Council’s low-income criteria (including discretionary) will be unaffected by these proposals. Families above the low-income threshold will be offered monthly direct debit payments.
15.0 Conclusion
The Council will continue to follow its efficiency approaches and seek to minimise the effects of service changes on vulnerable individuals and those from low incomes wherever possible through the choices we make. The proposed MTFP and Budget respond to current and ongoing financial pressures facing the Council and supports Borough of Poole’s ambition to maintain improved outcomes for local residents, visitors and staff, whilst simultaneously protecting valuable front-line services.
13 Appendix 5
APPENDIX 6
BOROUGH OF POOLE
CABINET
6 FEBRUARY 2018
SCRUTINY OF DECEMBER 2017 MEDIUM TERM FINANCIAL PLAN UPDATE REPORT: REPORT OF THE CHAIRMAN OF BUSINESS IMPROVEMENT OVERVIEW AND SCRUTINY COMMITTEE
1. PURPOSE
1.1 To inform Cabinet of the comments received and clarification sought from Members of the Business Improvement Overview and Scrutiny Committee regarding the December 2017 Medium Term Financial Plan Update Report.
2. RECOMMENDATIONS
2.1 That Cabinet notes the contents of this Report and, in particular, the information contained in Section 3.
3. BACKGROUND/INFORMATION
3.1 I chaired the Meeting of the Business Improvement Overview and Scrutiny Committee held on 18 January 2018, which considered the December 2017 Medium Term Financial Plan Update Report.
3.2 This item was previously considered by Cabinet at its Meeting held on 5 December 2017.
3.3 The Report was presented by Adam Richens, Head of Financial Services, and he provided an overview as to what had changed since this Committee scrutinised the previous Report on 9 November 2017.
3.4 Members were informed that since the October update, the identified £2.7M funding gap had been reduced to £1M. The reduction of the Funding Gap was largely attributed to the implementation of the sharing of Corporate Services with Bournemouth Borough Council. More work would need to be undertaken in order for a balanced budget to be set by Council at its Meeting on 20 February 2018.
3.5 In response to a concern raised by a Member, the Head of Financial Services advised that he was unaware of any situation where staff within corporate services had received a reduction in their salary as a result of the restructuring process.
3.6 There was a risk that when the Government ceased payment of the Revenue Support Grant (RSG) to the Council, it would go further and also retain funding raised from Business Rates to redistribute elsewhere if the fair funding review outcome was to consider Poole to be over funded.
3.7 The Government had announced that a further 1% would be added to the existing 1.99% permissible council tax increase threshold before a referendum was required for 2018/19. Members were requested to consider the consequences of not accepting this as a solution as the Council would otherwise need to close the gap with either its reserves, which was not a sustainable option, or additional service based savings.
3.8 Members were pleased to note that from 2019/20 empty homes without an exemption could be charged Council Tax at a premium of 100%.
4. CONCLUSION
4.1 Members have had the opportunity to scrutinise this update Report and ask questions of the Head of Financial Services and I ask that Cabinet note the comments raised by the Committee
Councillor Sean Gabriel Chairman of the Business Improvement Overview and Scrutiny Committee
APPENDIX 7
Borough of Poole Council
Chief Officers’ Pay Policy Statement: 01 April 2018 to 31 March 2019
Document Control
Policy title Pay Policy Statement: 01 April 2018 to 31 March 2019 Policy owner Executive Director, Corporate Services Policy author Joint Service Director Human Resources and OD Current version Version 1 Effective from 01 April 2018 date Approval body Council Approval date Review frequency Annual Next review due 31 March 2019
Revision History
Section(s) Date Version Summary of Changes Changed • New document in all respects to meet 11/01/2018 1 legislative requirements for publishing All salary information • Updated discretion regarding Full Paragraph 14 11/01/2018 1 Council vote on severance packages Appendix B
1
Equalities Impact Assessment
Assessment date 12 December 2017 Assessment Attached as Appendix D location
Freedom of Information Act Exemption
FOI Exempt? YES/NO
Document Location
Once approved, the source of this document will be found within the corporate fileplan or intranet.
Document Distribution
Copy of this document has been externally distributed upon publication to:
Date of Name Organisation Version Issue
This document is uncontrolled if printed. A printed copy of this document should be considered valid only on the day it was printed.
Alternative Document Formats
Format Location
Why do we have this policy?
Reason
1 This policy is established to meet requirement of section 38(1) of the Localism Act (2011).
2
Purpose
2 The purpose of this policy is to provide transparency on the salaries of Chief Officers of the Council, how those salaries are set and other issues related to the pay of Chief Officers.
Who must comply with the policy?
3 Chief Officers are defined as the Chief Executive Officer and Strategic Directors of Borough of Poole who must comply with this policy.
Who else should be aware of this policy?
4 This policy will be published on the Council’s website to ensure that all Council staff, Councillors, Poole residents and local businesses have access to it.
What is this policy?
5 The salaries of the Chief Executive and Strategic Directors are set by the Leader and Deputy Leader of the Council on advice from the South West Local Government Employers Association and having regard for the Chief Executive and Chief Officers’ national pay scales.
6 In accordance with the supplementary guidance on Section 40 of the Localism Act, full council will be given the opportunity to vote on salaries to new employees if the salary package is in excess of £100,000 per annum.
7 The salaries for these staff will be increased in line with national pay awards agreed by Joint National Committee (JNC) for Chief Executives and Chief Officers unless financial constraints prevent the required funding from being available. In this case, some lesser figure or no increase will be applied.
8 The Chief Executive Officer and Strategic Directors are employed on JNC conditions of service.
9 Section 38(1) requires the following information to be published annually as part of the policy:
a The Chief Executive base salary for 2017/18 is £119,222, receives a pension contribution of £19,314 and an NI contribution of £15,327 giving a total £153,863 per annum (excluding expenses allowance).
b The median full time equivalent salary for staff for 2017/18, excluding employees paid on national scales known as Soulbury grade staff, Youth 3
Worker, Apprentices and employees in schools, is £24,951, with a pension contribution of £4,204 and a NI contribution of £2,455 giving a total of £32,610. The ratio between this salary and the salary of the Chief Executive is 1:4.7. c The lowest full time equivalent salary is £15,014, with a pension contribution of £2,432 and a NI contribution of £945 giving a total of £18,391. The ratio between this salary and the salary of the Chief Executive is 1:8.4. d These ratios are published in line with the recommendations of the Hutton review of Fair Pay in the Public Sector. This review also recommends that local authorities define what they mean by ‘lowest salary’. e The lowest salary is defined as the full time equivalent salary of employees in receipt of the lowest salary point of the salary and grading structure for Borough of Poole Council employees who are not covered by Soulbury or youth workers or Teachers national scales. This salary structure is the result of a review of all jobs not covered by national bargaining arrangements and was established using the Greater London and Provincial Council’s job evaluation system. This review was carried out jointly with Management and the two trade unions recognised for collective bargaining purposes, namely UNISON and GMB and the was result of the review implemented under the provisions of a Collective Agreement “Equal Pay and Conditions of Service” signed in October 2009.
The bottom spine point salary is the lowest pay for the smallest jobs, in job evaluation terms, in the authority. f The salaries of Service Unit Heads, the posts that report into Strategic Directors, are determined under a job evaluation scheme based on the South West Councils Scheme. A separate, locally agreed Service Unit Head pay scale applies. g An extract from the annual statement of accounts for 2016/17 is given in Appendix C which gives details of the payments made to Chief Officers in 2016/17. h Whilst it is the Council’s policy to recruit on the minimum of a pay scale, due regard will be taken of the prevailing market rates. j Returning Officer fees for general elections which are set by government and for local elections agreed by Dorset County Council are available to the Chief Executive. k No other fees are paid to Chief Officers but they are able to make claims under the Council’s Business Travel and Subsistence policy. l Payments for working hours additional to contractual hours are not made. 4
10 The Council publishes the total remuneration of Chief Officers and Strategic Directors as part of the annual statement of accounts on its public website.
11 The decision to employ Chief Officers, who were previously employed by the Council and left with a severance or redundancy payment, will be based on the applicants’ suitability for the post. In the event that the employment is within four weeks of the original termination, the employee will have to reimburse any redundancy payments to the previous employer if they have been made to them.
12 Redundancy costs are made form public money and as such are a matter of regular audit and scrutiny. It is important to ensure that such payments are not made inappropriately or with a short term perspective. For this reason the Council will not normally re-engage former employees who have accepted voluntary redundancy terms. Any re-engagement must be as a result of an open and external recruitment process.
13 The Council’s policy is to usually employ Chief Officers under employment contracts, not under a contract for services.
14 The decision to employ Chief Officers who are in receipt of a Local Government Pension Scheme or Fire fighter pension (whether their previous service was with the same authority or not) is dependent on the applicants suitability for the post. The remuneration will be set in line with the Chief Executive and Chief Officers’ national pay scales, the going market rate and affordability.
15 An outline of the Council’s policy with respect to redundancy is given in Appendix B. The supplementary guidance on the implementation of section 40 of the Localism Act 2011 provides that the full council is given the opportunity to vote on severance payments over £100,000. Where severance packages contain any discretionary element and exceed £100,000 Full Council should consider and, that in other cases where contractual payments are made which exceed this threshold, an annual report is made which includes reference to such cases for transparency purposes.
16 The policy in relation to employer discretions under the Local Government Pension scheme is given in Appendix A.
How is this policy implemented?
Procedures
16 This policy is reviewed annually by the Corporate Management Team and any recommendations for change will be made to the Cabinet for approval.
5
Supporting information
17 The Localism Act (2011) is available on the Parliament website here: http://www.legislation.gov.uk/ukpga/2011/20/pdfs/ukpga_20110020_en.pdf
18 The Council is required by law to review its Pay Policy Statement annually. Each subsequent statement must be prepared and approved before the 31 March immediately proceeding the financial year to which it relates.
19 Related Council policies and supporting documents:
• The Council’s Business Travel and Subsistence Policy • The Council’s policy in relation to employer discretions under the Local Government Pension scheme • Retirement Payments Scheme • BOP Salary and grading structure: • Equal Pay and Conditions of Service Collective Agreement 2009 • Salary Scales available at www.poole.gov.uk
6
Appendix A
BOROUGH OF POOLE (“THE COUNCIL”)
POLICY IN RELATION TO EMPLOYER DISCRETIONS UNDER THE LOCAL GOVERNMENT PENSION SCHEME
This document forms the Council’s policy in relation to the various discretions available to in the Local Government Pension Scheme in respect of Regulations 12, 13, 18 and 30 of the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2013 (“Benefits Regulations”), as required by Regulation 66 of the Local Government Pension Scheme (Administration) Regulations 2008 (“Administration Regulations”). References to specific Regulations are to the Benefits Regulations.
This policy does not form part of employees’ terms and conditions of employment and the Council may repeal, review or amend its policy at any time.
Regulation Policy
Regulation 12: While Discretionary Service Augmentation is
Increasing the membership of an allowable within the Local Government Pension Regulations, it is Borough of Poole’s normal active member by up to 10 years policy not to augment.
Regulation 13: The Council has elected not to use this
Awarding additional pension of up to discretion.
£5,000 pa
Regulation 18: Each case will be considered on its individual merits by the Service Unit Head or Headteacher and the Head of Human Flexible Retirement – the early Resources. payment of all or part benefits where It is the normal expectation of the Council and its Schools that following flexible retirement the the employee is aged 55 or over and sum of the employee’s pension and ongoing salary should not equal more than their total has reduced their hours and/or grade. salary immediately prior to retirement. Reductions in working hours may therefore frequently be for up to 50% of existing working hours, and/or employees may wish to be considered for a post at a lower grade. If
7
pension benefits are released through flexible retirement the employee cannot therefore revert to their previous contractual provisions, nor to a contract with higher contractual provisions.
Rule of 85 - The decision to allow immediate release of scheme accrued pension benefits for some employees with a continued Regulation 30: protected entitlement to request this is at the discretion of the Borough of Poole. Whether to grant application for early Consideration will be given to such requests received with account being given to the payment of benefits for pension financial costs to the Service Unit or School that would arise as a consequence as well as members aged 55 – 60. the impact on service efficiency.
The Council or School also has the discretion under the Pension Regulations to allow early retirement on compassionate grounds. This will only be agreed in very exceptional circumstances and there is no right to be awarded retirement benefits or to retire under these provisions.
The Council will not normally waive any actuarial reduction which is applied to the early payment of benefits.
8
Appendix B
Early termination in the interest of the efficiency of the service and Redundancy
The Council has a single redundancy scheme which applies to all employees. Redundancy payments are calculated in accordance with the Employment Rights Act 1996 and the 2006 Discretionary Compensation Regulations and are based on the employee’s age, length of continuous local government service and salary. Details of the redundancy scheme can be found in the Council’s Redundancy Policy.
The Council does not provide any further payment to employees leaving the Council’s employment other than in respect of accrued annual leave.
Employees who have TUPE transferred into the Council under the transfer of undertakings regulations on redundancy terms which are more favourable than those detailed above will retain these provisions in accordance with those regulations.
Where severance packages contain any discretionary element and exceed £100,000 Full Council should consider and, that in other cases where contractual payments are made which exceed this threshold, an annual report is made which includes reference to such cases for transparency purposes.
9
Appendix C
EMPLOYEE REMUNERATION 2016/17
Senior Employees emoluments -salary between £50,000 and £150,000 :
Remuneration Expense Compensation Employers Total payments Salary Allowances for Loss Pension including (including of Office Contributions Pension supplements) Contributions 2016/17 2016/17 2016/17 2016/17 2016/17 £ £ £ £ Chief Executive 118,042 0 0 21,838 139,880 Strategic Director - People 107,617 0 0 19,909 127,526 Strategic Director - Place 97,769 0 0 18,087 115,856 Strategic Director - Corporate Services Note 1 74,667 0 0 13,813 88,480 Service Unit Head - Adult Social Services 81,432 0 0 15,065 96,497 Service Unit Head – Children, Young People & Learning 84,710 0 0 15,671 100,381 Service Unit Head - Children & Young People Social Care Note 2 32,913 0 0 6,089 39,002 Service Unit Head – Commissioning & Improvement - People 76,216 0 0 14,100 90,316 Service Unit Head - Culture & Community Learning 68,439 0 0 12,661 81,100 Service Unit Head - Environmental Consumer Protection Note 3 65,525 0 0 12,122 77,647 Service Unit Head - Financial Services Note 4 102,797 0 0 19,017 121,814 Service Unit Head - Housing & Community Services Note 5 62,331 0 0 11,531 73,862 Service Unit Head - ICT Services 74,869 0 0 13,851 88,720 Service Unit Head - Legal, Democratic & Strategy Services 82,190 0 0 15,205 97,395 Service Unit Head - Human Resources Note 6 69,901 0 30,515 12,932 113,348 Service Unit Head - Planning & Regeneration Note 7 58,496 0 56,102 10,822 125,420 Service Unit Head -Transportation 77,207 0 0 14,283 91,490 Totals 1,335,121 0 86,617 246,997 1,668,735
Where joint services are operating a post will have an 'employing authority' and the full costs of such posts are shared. Poole is the employing authority for the Strategic Director - Corporate Services and Service Unit Head - Financial Services, hence the full costs are shown above. 10
Note 1 Joined the Authority 1st August 2016 - This is a joint role with Bournemouth Borough Council. The costs are shared. Corporate Services encompasses responsibility for Business Improvement. Note 2 Service Unit Head - Children & Young People Social Care left the authority on 4th September 2016. This Service Unit Head post is now being covered by an Agency worker until such time as joint arrangements are made with Bournemouth. The costs of this amounted to £95k during 2016/17 - these costs are not included above. Note 3 This post is now 30 hours per week. Note 4 Service Unit Head - Financial Services - The costs of this post are shared with Bournemouth Borough Council as part of a joint service arrangement. Note 5 Service Unit Head - Housing & Community Services left the authority 21st February 2017. The Head of Commissioning & Improvement – People now leads both Units. Note 6 Service Unit Head - Human Resources left the authority on the 31st March 2017. Note 7 Service Unit Head - Planning & Regeneration left the authority 18th December 2016. A new unit was formed Growth and Infrastructure combining Transportation Services & Planning & Regeneration led by the Head of Transportation Services.
11
Appendix D
Equality Impact Assessment Record (EQIA) Our Equality Policy ‘Fairness for All’
Title of Policy/Service/Project Pay Policy Statement: 01 April 2018 to 31 March 2019
Service Unit Human Resources
Senior Responsible Officer & Job Title Julian Osgathorpe, Executive Director Corporate Services
Lead Responsible Officer and Job Title Saskia de Vries, Joint Service Director Human Resources & OD
Members of the Assessment Team: Saskia de Vries / Sorrelle Ford (HR Business Partner) Please indicate for each person if they are an employee, partner or customer.
Start Date of assessment: End Date of Assessment (this should be 12/12/2017 before the date of decision):
12
About the Policy/Service/Project: 1. Everyone can access the services and information they need 2. Our workforce includes people from all parts of Poole’s community and values what they add to the Council http://www.poole.gov.uk/your-council/equality-and-diversity/equality-and-diversity/#Equality-in-our-corporate-strategy List the main people, or groups of people, that this policy/service/project will benefit?
Chief Executive and Strategic Directors Other stake holders – Elected members The public through the availability of the information the policy provides
Detail how will they benefit below:
Will increase transparency of Council decisions regarding remuneration packages for Chief Officers employed by Borough of Poole Council
Increase the Trust and Confidence of the Public in Borough of Poole Decision making Processes
Enable more people (Councillors to influence decisions relating to severance agreements, that contain any discretionary element and exceed £100,000 and the Remuneration packages in excess of £100,000)
Please detail below how this policy/service/impact on any other organisation and their customers.
Not Applicable
13
Consultation, Monitoring and Research Consultation: Please list those who have been consulted with in development / design of this policy/service/project provide a summary of the results below.
Since this policy codifies existing practice and introduces changes to current arrangements as required by the Localism Act 2011 no consultation was undertaken. However, the remuneration packages of the people to whom the statement relates are matters of Public Record.
The Corporate Management Team as detailed below have scrutinised and signed off the policy prior to its publication.
Corporate Management Team Andrew Flockhart, Chief Executive, Jan Thurgood, Executive Director People, Kate Ryan, Executive Director Place, Julian Osgathorpe Executive Director Corporate Services
Internal (e.g. council staff, Members)
Tanya Coulter, Joint Service Director Legal and Democratic Services
Saskia De Vries, Joint Service Director Human Resources & OD
External (e.g. partners, service users, general public)
Not Applicable
14
Please provide a summary of the findings from these consultations below.
Not Applicable
How do the findings in the above consultation & research been used to inform or used to design the new service or influence Policy or project?
Not Applicable
If you have not carried out any consultation, or if you need to carry out further consultation, who will you be consulting with and by what methods?
No consultation will be carried out in relation to the Pay Policy Statement to which this Equality Impact Document applies as it has been developed to meet the duty of ‘due regard’ as required by the Equality Act 2010. However, this document does serve to increase transparency in decisions made that relate to remuneration packages of Strategic Directors and Service Unit Heads and any severance packages agreed between Borough of Poole and its employees where the package or settlement contains any discretionary element and exceeds the sum of £100,000. This is likely to enhance the Councils reputation and lead to higher levels of trust and confidence in the Council from the public. The Pay Policy Statement is for information only and supports Borough of Poole in codifying current practice and also meets responsibilities under the Localism Act 2011.
15
Monitoring and Research: What data, research and other evidence or information have you used to inform your decision making? Detail all sources below • Workforce monitoring Data • Advice from the South West Local Government Employers Association • Chief Executive and Chief Officers’ national pay scales • JNC conditions of service. • National and local statistics regarding the pay of Chief Officers within Local Authorities • Sections 40 and Section 38 (1) of the Localism Act 2011 • Hutton Review • Information from formal audits
Is there any service user/employee monitoring data available and relevant to this policy/service/project? What does it show in relation to equality groups? None
Do you have enough information to make a decision? Yes / No If No then how are you going to remedy the gap in knowledge?
Yes
16
Assessing the Impact Which of the following protected characteristics would actually or potentially benefit or be disadvantaged as the result of this policy as evidenced above?
Comments
Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Age Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected characteristic as defined by the Equality Act 2010. Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Disability Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected characteristic as defined by the Equality Act 2010. Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Gender Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected characteristic as defined by the Equality Act 2010. Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Gender Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected reassignment characteristic as defined by the Equality Act 2010. Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Pregnancy and Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected Maternity characteristic as defined by the Equality Act 2010. Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Marriage and Civil Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected Partnership characteristic as defined by the Equality Act 2010. Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected Race characteristic as defined by the Equality Act 2010.characteristic as defined by the Equality Act 2010.
17
Comments
Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Religion or Belief Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected characteristic as defined by the Equality Act 2010. Having considered the Duty of ‘due regard and its relevance to the Chief Officers Pay Policy Sexual Orientation Statement. The conclusion is that it is neither beneficial nor detrimental to any relevant protected characteristic as defined by the Equality Act 2010. Any other factor/ The Chief Officers Pay Policy Statement does not benefit nor is it detrimental to carers. Reductions groups e.g. socio- in severance packages and limitations on salary may impact on socio –economic status economic status/carers etc The Chief Officer Pay Policy Statement does not appear to have implications for the Human Rights Human Rights of the people to which it relates.
STOP - Any policy which shows actual or potential discrimination.
Reason for Decision?
The Chief Officer Pay Policy Statement does not impact on the duty to advance equality nor impact the Human Rights of the people to whom it will apply.
The Policy supports the Councils Equality Objective getting more people involved in influencing decisions at the Council.
18
Action Plan
Review date: 12/12/2017 Monitored by: Sorrelle Ford, HR Business Partner
Reporting to: Saskia de Vries, Joint Service Director Human Resources & OD
Date Actions transferred to Service Equality Action Plan:
Include: • What has/will be done to reduce the negative impacts on groups as identified above. • The arrangements for monitoring the actual impact of the policy/service/project
Specific action required to Due Date Brief Summary of Issue(s) Responsible mitigate, lesson or remove issues Measurable Outcomes identified officer identified
No Issues of relevance N/A N/A N/A N/A identified.
19
BUDGET 2018/2019
GLOSSARY
OF
TERMS
GLOSSARY OF TERMS
Arms Length Management Organisation – a company set up specifically to manage Poole Council’s housing stock. Poole’s ALMO is known as Poole Housing Partnership.
Authorised Limit – prudential indicator based limit, which sets a parameter for the level of affordable debt. It should not be set so high that it would never in any possible circumstances be breached. It should reflect a level of borrowing which, while not desired, could be afforded but may not be sustainable. In this way it may include provision for additional borrowing that may be required for a short period in order to deliver the agreed treasury management strategy.
Best Value – Poole has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.
Budget – a statement defining the council’s policies over a specified period of time expressed in financial terms.
Capital Receipts – the proceeds from the disposal of land or other assets. These receipts can be used to finance capital but not revenue expenditure. If the amount received does not exceed £10,000 then the amount will not be treated as a capital receipt.
Capital Expenditure – acquisition, reclamation, enhancement or laying out of land; the acquisition, construction, preparation, enhancement or replacement of roads, buildings and other structures; the acquisition, installation or replacement of moveable or immovable plant, machinery and apparatus and vehicles and vessels.
Capping – a system whereby the government can limit and therefore control the budget requirement of the council because it deems it excessive or it is deemed to show an excessive increase over the previous year.
Comprehensive Spending Review (CSR) – the public expenditure planning process introduced by the government in 1997. The latest review was received in 2010 and covers the 4 years to 2014/15.
Council Tax Requirement – estimated amount of net expenditure on general fund services that needs to be financed from council tax.
Contingency – amount set aside to meet unforeseen items of expenditure or income shortfalls. Will also be used to cover items with a high degree of uncertainty.
GLOSSARY OF TERMS (Continued)
Council Tax – a charge on the residential property within Poole to finance a proportion of the Authority’s expenditure
Council Tax Benefit – assistance provided by the council to adults on low incomes to help them pay their council tax bills. The cost is met by the Department of Work and Pensions.
Dedicated Schools Grant – Funding from the Department of education for all provision, including schools, Early Years providers and Special Educational Needs.
Depreciation – the theoretical loss in value of an asset due to usage, wear and tear, deterioration or obsolescence.
Estimates – the amounts that are expected to be incurred as expenditure, or received as income, during specified financial year.
Fixed Rate Debt Maturity Structure – prudential indicator that sets out the maximum levels of borrowing, as a proportion of total borrowing, that would be taken out over different maturity profiles
General Fund – the main revenue fund of Poole Council. Day to-day spending and receipts are met from or paid into this fund.
Housing Benefit – an allowance to persons on low income to meet, in full or part, their rent. Benefit paid to Poole's own council tenants is known as rent rebate, and benefit paid to tenants in the private sector is referred to as rent allowance. The cost is met by the Department of Work and Pensions.
Housing Revenue Account – separate ring-fenced account of Poole Council, which records the income, and expenditure on the council’s landlord function. All other services are charged to the general fund.
Interest Rate Exposure – prudential indicator which sets out the maximum level of borrowing, as a proportion of total borrowing, that would be taken out at variable or fixed rates.
Local Education Authority (LEA) – any local authority, which is responsible for Education, is referred to as a Local Education Authority. Poole has this responsibility along with all unitary councils, county council’s, London boroughs and metropolitan districts.
GLOSSARY OF TERMS (Continued)
Medium Term Financial Plan (MTFP) – part of the Council’s business plan and corporate strategy. Statement of the council’s policies over more than one year (currently 3 years) expressed in financial terms. Aim is to enable the proactive management of the budget, enabling better forecasting and long term financial planning in order to meet Council priorities.
National Non-Domestic Rate (NNDR) – a levy on businesses, based on a national rate in the pound set by the government multiplied by the rateable value of their premises. Poole council collects NNDR on behalf of the government who then redistribute these resources as part the Council’s Formula funding.
Operational Boundary - prudential indicator that is the focus of day-to-day treasury management activity within the authority. It is a means by which the authority manages its external debt to ensure that it remains within the self- imposed authorised limit.
Provisions – amounts set aside for known future liabilities, which cannot accurately be quantified.
Prudential Code – Chartered Institute of Public Finance and Accountancy (CIPFA) professional code of practice to support local authorities in taking capital investment decisions.
Prudential Borrowing – borrowing by local authorities without government financial support, but in accordance with the CIPFA Prudential Code for Capital Finance in Local Authorities.
Reserves – amounts set aside, which every authority must maintain as a matter of prudence. The purpose of general reserves is to manage the risk to the council’s financial standing from the impact of excesses to the budget provision and unforeseen events.
Revenue Expenditure – current expenditure
Revenue Support Grant – a grant paid by central government to aid Poole Council services in general (as opposed to specific grants, which may only be used for defined purposes)
Section 151 Officer – officer of the council responsible for making arrangements for the proper administration of the Council’s financial affairs.
Service Charge – charge made by landlord to leaseholders or tenants for services as distinct from rent.
GLOSSARY OF TERMS (Continued)
Standing Orders – set of rules adopted by the council as part of its Constitution that establish the procedures by which it should conduct its business. Includes specific rules relating to financial regulation and contract procedures.
Supported Capital Expenditure (SCE) – amount of borrowing, which in theory is supported by the government that can be used to finance capital expenditure.
Supporting People – a government programme for giving vulnerable people a stable environment and thereby greater independence.
Tax base – is the estimated number of chargeable properties within Poole after allowing for non collection, expressed as a band D equivalent
Treasury Management Policy Statement (TMPS) – a statement that sets out the parameters which Poole council have approved for the management of treasury activity during the year.
Ultra Vires – Poole Council is only empowered to undertake activities that it has authorisation for by statute. If the council undertake anything beyond their powers it is said to be ultra vires.
Virement – Transfer of resources between budgets.
Whole of Government Accounts (WGA) – Harmonising the published accounts for all public sector organisations to enable the production of a set of consolidated accounts for the whole public sector.