CT/14/05 Place Scrutiny Committee 23rd January 2014

Joint Report of the County Treasurer and Strategic Director Place

2014/15 Budget Recommendation : that the Scrutiny Committee consider whether it wishes to draw to the attention of the Cabinet any observations on the proposals contained within the draft Revenue Budget 2014/15 and Capital Programme for 2014/15 to 2018/19. 1. Introduction and Commentary

1.1 At its meeting of 11th December 2013, Cabinet set Revenue Budget targets for 2014/15. The targets incorporate inflation, commitments and budget reductions required to set a budget within reduced funding levels provided by Government in the recent provisional financial settlement.

1.2 A number of major decisions remain to be taken. At this stage, the final outcome of the Local Government Finance Settlement is awaited and details of the council tax base, collection fund surpluses and tax base yield have yet to be confirmed. Information should be available by the time that County Council considers final budget proposals for 2014/15 on 20th February 2014. However, given the late notification of the provisional settlement and in line with arrangements from previous years, 27th February 2014 has been set aside for a second County Council budget meeting if required.

1.3 The draft budget attached to this report complies with the targets set by Cabinet on 11th December 2013 which total £463.5 millions. The total includes funding for commitments of £12.7 millions that mainly relates to additional expenditure to allow for service growth to cater for demographic changes such as increased children and adult service users and unavoidable cost pressures. A further £11.1 millions is included to meet the effect of inflationary pressures within the Authority's service provision. Savings of £27.8 millions and the removal of £6.4 millions one-off spending in 2013/14 are required to set a balanced budget.

1.4 The targets set for each service area have been subject to different pressures and influences. The People's Services budget has provided inflation and commitments of £17.4 millions with budget savings set at £18.3 millions and removal of one-off spending in 2013/14 of £3.1 millions. The Place budget provides for inflation and commitments of £4.2 millions with budget savings set at £7.9 millions and removal of one-off spending in 2013/14 of £2.1 millions. Corporate Services provides for inflation and commitments of £2.2 millions with budget savings set at £1.6 millions and removal of one-off spending in 2013/14 of £1.2 millions.

1.5 This report provides detailed budget proposals in respect of all Place Services, in line with the targets outlined in paragraph 1.1. The Budget Scrutiny day will provide Members with the opportunity to question further, budget issues for 2014/15 and beyond. In addition, detailed questions can be raised in advance of the Budget Scrutiny day by using the central DCC mailbox scrutiny@devon.gov.uk 2. Influencing Factors for Cabinet Consideration

2.1 The Secretary of State for Communities and Local Government announced the Provisional Local Government Settlements for 2014/15 and 2015/16 on 18 December 2013.

2.2 The Comprehensive Spending Review (CSR) published in October 2010 outlined real terms cuts of 28% in local authority expenditure over four years. This announcement is for the fourth year of this reduction programme. The Autumn Statement published in December, although not increasing funding reductions for local government, confirms that budget reductions can be anticipated for at least three years beyond the current CSR period, up to and including 2017/18. This period of austerity is forecast by some to continue until at least the end of the decade.

2.3 In terms of the County Council the Provisional Settlement for 2014/15 provides for a baseline funding level of £207.599 millions which includes £116.178 millions of Revenue Support Grant. The baseline funding level has been increased to include council tax freeze grant for 2013/14 of £3.3 millions and £0.9 millions to recognise the additional cost of providing services in rural areas.

2.4 In terms of the level of reduction year on year the Secretary of State has quoted a 'spending power' reduction of 1.6% for Devon against an average of 2.9% nationally. The way in which 'spending power' is calculated does not give a true indication of the way Government Grant has diminished because it includes some redirected NHS money and council tax revenues. As a result it understates the real level of grant reduction. A fairer underlying measure is how the baseline funding level has reduced. On a like for like basis this has reduced by 9%.

2.5 The capital programme is scheduled to reduce significantly in future years, in order to minimise the impact of capital financing costs on the revenue budget. New schemes are largely limited to those which do not require a significant borrowing requirement. Details of the mechanisms for managing the capital programme are outlined in subsequent pages.

3. Changes to the 2014/15 Base Budget

3.1 The major changes to the 2014/15 budget are as follows:-

£’000 Adjusted Budget Approved by the Council for 2013/14 113,675 Inflation and Commitments 4,178 Removal of one-off budget provision in 2013/14 (2,130) Budget reduction (7,863) Target Approved by Cabinet 11th December 2013 107,860

4. Service Specific Budget Issues

4.1 The budgets attached to this report represent the fourth year of reductions as part of the public sector savings. The target shows an overall reduction of £10 millions (8.8%). A summary of the savings strategy is shown on the page entitled "How the 2014/15 Budget has been built up". 4.2 The reductions across Place for 2014/15 equate as follows:

 Economy and Enterprise - £0.1 million (0.1%)  Highways and Traffic Management - £6.6 millions (5.8%)  Capital Development and Waste Management - £1.1 millions (1.0%)  Planning, Transportation and Environment - £0.5 million (0.4%)  Services for Communities - £1.7 millions (1.5%)

4.3 The area of most concerns relates to Highways and Traffic Management with the overall reductions proposed for 2014/15 at £6.6 millions. Although, to date, Devon has not experienced the weather events seen in 2012/13 the service is under extreme pressure to maintain and enhance the road network. This budget will focus on keeping the network safe and ensuring essential routes remain open. This is likely to have an adverse impact on non-essential routes if conditions deteriorate or emergency situations arise. The emphasis for 2014/15 will also focus on building and equipping communities to understand what is happening and when, together with what they can do to assist or deliver.

4.4 In order for the Council to achieve the reductions required over the next 3 to 4 years the focus must be on what communities can do for themselves. This will ensure that the correlation between levels of service maintained is higher than the cost reduction achieved. In order to bring this strategy to fruition a great deal of work and planning must be undertaken during 2014/15 which will involve directing resources to engaging with communities across Devon.

4.5 The reductions before this committee will result in a reduction in service levels. The continued national focus on austerity is becoming harder and harder to achieve at a service level and involves a great deal of planning with longer lead in times to secure achievement. The key challenge for services is to ensure effective communication with communities on what can realistically be provided within the overall funds available.

5. Equality Impact Needs Assessment

5.1 Budget reduction and consultation exercises have already been carried out along with a number of detailed Impact Assessments for many of the decisions around reductions or changes to services.

5.2 The Council's Strategic Plan was refreshed in 2011, and although our core values are unchanged the priority areas of work have been updated. A full Impact Assessment was undertaken around the new priorities, and the implications identified from this are being aligned with the Medium Term Financial Strategy to ensure budget decisions support critical linkages between services.

5.3 Most changes under discussion have already been through budget reduction and consultation, and Impact Assessments were completed for many of them in 2012/13. Further work is now underway to ensure that this has been completed for new or additional proposals, particularly where the budget reductions or changes could have a significant impact. As part of each Impact Assessment, any significant risks will be identified and mitigating actions outlined.

Mary Davis Heather Barnes County Treasurer Strategic Director Place

Electoral Divisions : All Local Government Act 1972 List of Background Papers Contact for Enquiries : Mary Davis Tel No: (01392) 383310 Room 199 Background Paper Date File Ref Nil Date Published : 14/01/2014 Place Services

Director's Commentary

The portfolio of Place services continues to provide the opportunity to focus on the strategic priorities of Devon County Council: maintaining, operating and improving infrastructure and connectivity to support local enterprise, supporting health and well- being by improving access to countryside, green travel and managing congestion, and supporting stronger, more resilient, local communities. Services are diverse from planning the future infrastructure requirements of Devon to providing direct services to its communities. This budget reflects the continuing changes required to achieve the national targets for reductions to public sector spending. In order to achieve a balanced budget, reductions of £10m have been identified within Place. This includes the removal of one off budgets totalling £2.1m coupled with reductions to services of £7.9m. These agreed reductions have aimed to protect priority areas and have the lowest possible impact on the delivery of essential and statutory services. However, with each year it becomes harder to protect those priority areas. A key national and local priority involves the County Council’s role in supporting economic growth in Devon. Our aim is to ensure that Devon has a flourishing and balanced economy, with strong economic growth and high quality employment. A range of funding initiatives to support growth policies are being awarded to a geographical area wider than Devon. Therefore, Devon County Council is working closely with partners from both the private and public sectors including the Local Enterprise Partnership to ensure the best use of resources for the residents and businesses of Devon. These funding opportunities include the Growing Places Fund (a revolving infrastructure fund), the Regional Growth Fund and the Local Transport Fund which will be implemented from 1st April 2014. The Devon and Somerset Super-fast Broadband has commenced its rollout and in June 2013 announced the first areas to benefit from the initiative, including several towns and villages within Devon. The development of business parks including Higher Okehampton, the Science Park and Skypark, continue to be a focus for the Council with Exeter Science Park Limited commencing construction of a Science Park Innovation Centre during 2014/15. In 2013/14, DCC has been particularly successful in obtaining new grants from central government. These funds are focussed on schemes which will unlock economic development, support workforce skills and provide infrastructure to improve access to communities. Funds include Pinch Point £7.7m, Regional Growth Fund £7.9m, Granite and Gears £4.4m, Local Transport Board £7.5m and New Stations Fund £0.7m. In the context of a declining revenue budget it is more important than ever that DCC maximise its receipt of external grants. There will be particular challenges for officers delivering these programmes as the funds largely have to be spent by March 2015. Currently 94% of the total capital programme falls under Place Services with 80% being funded via external grant. Investment in new highways infrastructure will provide a more sustainable network especially in growth point areas such as the East of Exeter and Newton Abbot. Although Devon is one of the top performing Counties for recycling, reusing and composting, the Waste Service continues to focus work on influencing public behaviour in order to reduce overall volumes of waste by educating and influencing communities on waste reduction. The cost pressure relating to an increase in landfill tax by £8 per tonne equates to an overall increase in the budget of £1m providing another financial incentive to reduce waste tonnage. The tonnage figures continue to be volatile and will be monitored closely during the year to identify any changes. The Energy from Waste (EfW) plants at both Exeter and Plymouth are on schedule to open during 2014/15, with Exeter due in June 2014 and Plymouth in September 2014. Work will continue to facilitate a scheme to improve the efficiency of the Exeter EfW plant by the development of a district heating scheme. Due to statutory requirements and the long term nature of the contracts the focus has been to drive better value out of contracting arrangements. The service will continue to work with Waste collection authorities in Devon and neighbouring waste authorities to develop a collaborative approach in the interest of service efficiency. The underlying condition of road network remains a concern on certain categories of the network and the maintenance backlog is expected to rise to around £750 million in 2013/14. The focus of the service will be to preserve a safe and functional highway network to support the economy of the County and region. As resources are limited from both capital and revenue a combination of resources are focused increasingly on reactive works and preventative interventions to keep the network safe rather than “worst first”. This will ensure that as much of the network as possible is prevented from deteriorating such that future repairs become very expensive. The £6.6m budget reductions in 2014/15 follow previous year reductions compounding the effect on the network. Based on the level of repairs achieved in previous years the allocation for safety defect repairs has been reduced, however this is a volatile area and demand can be adversely affected by severe weather events. The response to unpredicted “weather” events such as rain or freezing conditions will be limited as resources are targeted towards keeping the network safe and essential routes open. The new payment mechanism introduced with our term maintenance contractor during 2013/14 focused on driving efficiency and innovation through partnership working and has achieved financial efficiencies. This will be used as a building block to take forward into 2014/15 to ensure year on year efficiencies are achieved. In addition, opportunities for communities to fund or deliver parts of the service are being developed, for instance on Public Rights of Way. Improved communications will be a key focus for the service to better explain what the service is able to deliver and when it will be at work within individual communities. Services within the Communities portfolio range from strategic development to front line delivery to the public. Support for the wider infrastructure of Devon and front line services include libraries, public and community transport and community engagement and regulation. The Library Service continues to review and modernise operations, for instance, reducing the mobile library provision across the County. The development of Devon Centres, offering a wider range of Council services under ‘one roof’, means that there continues to be infrastructure investment in the Library building stock. The Localism Act and other Public Sector policy changes continue to require much greater engagement with the communities of Devon. The focus of this work is around supporting communities to help themselves to provide tailored solutions to local issues. Shared Services across Place continue to be explored. Following the success of the Trading Standards shared service with Somerset the Council is now looking to explore combining our Heritage Services into a Heritage Trust with Somerset. Public and Community Transport remains a priority. Other than ongoing reviews to bus routes there are no plans to reduce support to this front line service, but this will be increasingly difficult to maintain. Reductions are being achieved within the National Concessionary Travel scheme through the removal of the discretionary elements of the scheme and through further efficiencies from contract arrangements with the bus providers and streamlined management processes. The level of Public Sector reductions remains challenging. The scale and duration of the reductions is unprecedented and therefore places a responsibility on Devon County Council to continually review what, and how, services are provided to ensure priority areas are protected. Consequently work for future year reductions has already begun.

Heather Barnes

Strategic Director Place For more information on the contents of this section of the budget book, please contact Nicky Allen, Assistant County Treasurer (Place) on 01392 382360 or email [email protected]

This page is left blank intentionally How the 2014/15 Budget has been built up

2013/14 Changes 2014/15 Adjusted Outturn Budget Budget £'000 £'000 £'000 Economy and Enterprise 1,449 588 2,037 Highways and Traffic Management 41,113 (5,082) 36,031 Capital Development and Waste 33,356 206 33,562 Management Planning, Transportation and Environment 6,127 (401) 5,726 Services For Communities 31,630 (1,126) 30,504 Total 113,675 (5,815) 107,860

Reasons for the change in the Revenue Budget Change £000 Technical & Service Changes CDWM - Landfill Tax increase of £8 per tonne and growth 1,032 CDWM - Tonnage changes, PAS100 compliance, disposal to Energy from Waste (325) Highway Maintenance - Install Highways information management system 350 Communities - Changed funding for bus routes 199 Science Park Company loan guarantee funding 624 Inflation 2,298 4,178 Savings requirements Cash Reduction (3,685) Removal of one-off budgets (2,130) Inflation and pressures (4,178) (9,993) (5,815) Analysis of Savings Strategies Economy - Reduction in activity budgets and oncosts (51) Highways - Revised funding for staff costs and income recovery (917) Highways - Street lighting revised reactive repair regime and energy savings (270) Highways - Gulley emptying revised to variable frequency (330) Highways - Cattle grids, Public Rights of Way (PROW) and tree maintenance - cessation of routine surveys and work (447) Highways - Road signs and markings: safety repair only and revised funding (389) Highways - Parish lengthsmen reshaped service (550) Highways - Focus on larger works categorised as capital (2,289) Highways - Safety defects efficiency savings (1,198) Highways - Grass cutting revised regime (200) PTE - Revised staffing structure (166) PTE - Reduced activity budgets and changed funding (371) CDWM - Waste recycling centres and credits reduction (182) CDWM - Waste disposal contracts and impact of behavioural changes (827) CDWM - Waste removal of one-off procurement budget (100) Communities - Transport: revised eligibility and improved processes (762) Communities - Library Service: restructured mobile provision (200) Communities - Strategy section: reduced staffing, grants, projects, monitoring and increased income (536) Communities - Records Office: increased contract income (22) Communities - Trading Standards: restructured delivery (186) (9,993)

Staffing Data

2013/14 2014/15 Adjusted Revenue Externally Changes Total Total Funded Funded FTEs FTEs FTEs FTEs FTEs

Economy and Enterprise 17 1 16 2 18 Highways and Traffic 205 (10) 195 0 195 Management Capital Development and 109 0 109 0 109 Waste Management Planning, Transportation and 135 (7) 117 11 128 Environment Services for Communities 479 (19) 325 135 460 Total 945 (35) 762 148 910

Explanation of Movements Economy and Enterprise Increased external funding 1 Highways and Traffic Management Vacant posts not filled (10)

Planning, Transportation and Environment Road Safety and sustainable travel vacant posts removed (4) Schools Planning post redundancy (1) Environment vacant post removed (1) Environment external funding projects finished (1) (7) Services for Communities Trading Standards - Restructure service delivery (16) Active Devon - Increased external funding 3 Devon Records Office - End of external funding stream (1) Libraries - Reduce mobile library service (4) Strategy, Policy and Organisational Change - Restructure service delivery (1) (19) Total (35) The above figures include staff funded from the capital programme The 13/14 Adjusted Total for Service for Communities includes 32 FTE Trading Standards staff transferred from Somerset CC.

Analysis of Total Expenditure for 2014/15

Gross Grant and External Internal Net Expenditure Contribution Income Income Expenditure Income £'000 £'000 £'000 £'000 £'000 Economy and Enterprise 2,117 0 (80) 0 2,037 Highways and Traffic Management 38,149 (195) (1,430) (493) 36,031 Capital Development and Waste 36,727 0 (1,986) (1,179) 33,562 Management Planning, Transportation and Environment 6,934 (39) (865) (304) 5,726 Services For Communities 37,236 (2,821) (2,515) (1,396) 30,504 Total 121,163 (3,055) (6,876) (3,372) 107,860

The following services (which are not included above) are wholly self-funded and do not impact on Council Tax. Gross Grant and External Internal Net Expenditure Contribution Income Income Expenditure Income £'000 £'000 £'000 £'000 £'000 Economy and Enterprise Making It Local Project 61 (61) 0 0 0 SABER Project 4 (4) 0 0 0 SEEing Project 1 (1) 0 0 0 Highways and Traffic Management On Street Parking 2,746 (30) (2,716) 0 0 Planning, Transportation and Environment AONB Blackdown Hills 212 (199) (1) (12) 0 AONB North Devon 186 (173) 0 (13) 0 Devon Maritime Forum 81 (30) (1) (50) 0 Exe Estuary Partnership 47 (22) (1) (24) 0 Flood Resilience Community Pathfinder 282 (217) 0 (65) 0 Local Sustainable Transport Fund Grants 1,032 (1,032) 0 0 0 Other Countryside Projects 234 (193) 0 (41) 0 South West Coast Path Team 104 (104) 0 0 0 Sustainable Energy Across A Common 91 (90) 0 (1) 0 Space (SEACS) Services For Communities Active Devon 1,400 (858) (26) (516) 0 Adult and Community Learning 4,118 (3,486) (588) (44) 0 Citizens Rail Project 781 (781) 0 0 0 Transport Co-Ordination Service 2,307 (954) (1,353) 0 0 Total 13,687 (8,235) (4,686) (766) 0

Grand total 134,850 (11,290) (11,562) (4,138) 107,860

Grants and Contributions

Some of the costs of providing the above services are funded by external grants and contributions, the table below shows details of the funding expected for 2014/15.

Service Funded by Amount £'000 Government and Other Grants E&E - LAG (Making It Local) Transition Funding European Union 29 E&E - LAG (Making It Local) Transition Funding Other Local Authorities 32 E&E - Small European projects European Union 5 PT&E - Local Sustainable Transport Projects Department of Transport 1,032 PT&E - Sustainable Energy Across a Common European Union 44 Space (SEACS) PT&E - SEACS Other Local Authorities 23 PT&E - SEACS Other 23 PT&E - Living with a changing coastline European Union 18 PT&E - Securing the Value of Marine Ecosystems in European Union 61 Europe (VALMER) PT&E - VALMER Government Grants 13 PT&E - Pegaseas European Union 74 PT&E - English Heritage projects English Heritage 40 PT&E - Areas of Outstanding Natural Beauty DEFRA 298 (AONB) PT&E - Areas of Outstanding Natural Beauty Other Local Authorities 74 (AONB) PT&E - Flood Defence Pathfinder Project DEFRA 217 PT&E - Environment projects Government Grants 7 PT&E - Environment projects Other Local Authorities 54 PT&E - Environment projects Other 17 South West Coast Path & County Parks Natural England 254 South West Coast Path & County Parks Other Local Authorities 45 H& TM - ExeRail Other Local Authorities 30 ACL - Community Learning Skills Funding Agency 2,155 ACL - Adult Skills Budget (inc Apprenticeships / Skills Funding Agency 1,224 Additional Learning Support) ACL - 24+ Advanced Learning Loans Facility Skills Funding Agency 31 ACL - 14-19 EFA Funding Education Funding Agency 76 Active Devon Sport England 810 Active Devon Other Local Authorities 7 Active Devon Other 41 Citizens Rail European Union 586 Citizens Rail Other 195 Bus Service Operators Grant Department of Transport 954 SFC - Social Fund Department of Work and Pensions 1,345 Communities Heritage projects Heritage Lottery 25 Other Communities Contributions Other Local Authorities 227 Other Communities Contributions Other 1,224

Total 11,290

Service Statistics

Unit of Service/Activity 2013/14 Change 2014/15 Measurement Highway & Traffic Management Size of Network Km 12,870 10 12,880 Bridges (revised Transport Asset Management definition) No. 3,240 0 3,240 Structural retaining walls (>1.5m height) No. 1,619 0 1,619 Structural retaining walls (>1.5m height) Km 171 0 171 Street lights total No. 77,000 0 77,000 Street lights to have been converted to part night lighting No. 40,000 10,000 50,000 Rights of way Km 5,000 0 5,000 Strategic road salted after route optimisation Km 2,648 0 2,648 Illuminated road markings and signs No. 12,000 0 12,000 Gullies No. (approx) 170,200 0 170,200 Total grass area cut m2 (approx) 13 million 0 13 million Urban grass cuts No. 4 0 4 Rural grass cuts No. 2 0 2 Surface dressed Km 900 (500) 400 Resurfacing / reconstruction Km 80 (60) 20 Capital Development & Waste Management Municipal waste disposal to landfill Tonnes 163,000 (73,000) 90,000 Municipal waste recycled (excl soil & rubble) Tonnes 202,000 4,000 206,000 Municipal waste recovered Tonnes 14,000 0 14,000 Exeter Energy from Waste Tonnes 0 50,000 50,000 Plymouth Energy from Waste Tonnes 0 25,000 25,000 Recycling, Reusing and composting Percentage 53.0 2.0 55.0 Recycling centres provided No. 20 (1) 19 Landfill sites after care No. 55 0 55 Planning, Transportation & Environment County Matter applications No. 40 0 40 County Council development applications No. 40 10 50 Listed building consent applications No. 10 0 10 Strategic Planning consultations No. 20 (10) 10 Planning application consultations (externally driven by the economy) No. 12,500 0 12,500 Local Wildlife Sites in positive management Percentage 64 4 68 Number of Local Development Frameworks which have successfully No. 7 1 8 progressed through the examination stage East Devon Traffic Screenline - Average daily no. of vehicles crossing No. 120,031 0 120,031 (predicted) Services for Communities Devon Records Office - Parish tithe maps web enabled No. 518 0 518 Libraries Libraries No. 50 0 50 Mobile Library routes No. 8 (4) 4 PCs Available with public access No. 479 6 485 Public Transport Local bus services contracts No. 165 7 172 Bus passenger journeys started in Devon No. 27.1 million (1.1) 26.0 million Train trips within Devon and to/from neighbours No. 4.3 million 0.2 4.5 million Ring and Ride community transport schemes No. of schemes 16 0 16 Community car schemes No. of schemes 14 0 14 Shop mobility schemes No. of schemes 9 0 9 Community buses No. 8 0 8 Fare car supported taxi schemes No. of schemes 10 2 12 Trading Standards Business premises on Trading Standards database No. 39,068 24,401 63,469 Programmed interventions at high priority premises Percentage 100 0 100 Complaints and business requests for service No. 12,984 8,978 21,962

Economy and Enterprise

2013/14 2014/15 2014/15 Adjusted Gross Gross Outturn Net Budget Expenditure Income Budget Changes £'000 £'000 £'000 £'000 £'000 Economy and Industrial Estates 1,406 Economic Development 2,012 (18) 1,994 588 43 Industrial Estates 105 (62) 43 0

1,449 2,117 (80) 2,037 588

2013/14 2014/15 £'000 Breakdown of Gross Income £'000 (62) Customer and Client Receipts (80) (21) Recharges to Internal Users (Income) 0 (83) (80)

Service Commentary

This service leads the County Council’s role in supporting economic growth and prosperity for Devon’s residents and businesses. It provides a strategic overview of the Devon economy and collaborates with a wide range of partners including the Local Enterprise Partnership to support the achievement of growth. Key priorities for the service are skills and innovation, promoting Devon as a business location, the facilitation of strategic employment space and managed workspace, developing growth sectors and supply chains, including energy. The service is in the process of delivering significant new revenue and capital projects including faster Broadband for Devon - Connecting Devon and Somerset, Skypark and Exeter Science Park, a Rural Growth Network across Devon and Somerset and the continued development of the existing industrial estates. The Service leads on influencing external funding policies, including European, and actively works to draw in additional investment into the County.

Analysis of changes: £'000 Economic Development Inflation 15 Set aside guarantee for Exeter Science Park Ltd Growing Places loan 624 agreement Reduction in activity on evidence based research, partnerships and (51) business support

Total 588

Highways and Traffic Management

2013/14 2014/15 2014/15 Adjusted Gross Gross Outturn Net Budget Expenditure Income Budget Changes £'000 £'000 £'000 £'000 £'000 Highway Maintenance 27,676 Roads and Bridges 23,063 (206) 22,857 (4,819) 4,993 Highway Lighting 5,150 (10) 5,140 147 658 Maintenance of Public Rights of Way 614 (4) 610 (48) 267 Other Highway Services 584 (325) 259 (8) 33,594 29,411 (545) 28,866 (4,728) Highway Network Management 7,414 Highway Network Management 8,315 (1,335) 6,980 (434) 105 Management and Support 423 (238) 185 80 7,519 8,738 (1,573) 7,165 (354)

41,113 38,149 (2,118) 36,031 (5,082)

2013/14 2014/15 £'000 Breakdown of Gross Income £'000 (1,475) Customer and Client Receipts (1,430) (178) Government and EU Grants (150) (509) Recharges to Internal Users (Income) (493) (54) Reimbursements (45) (2,216) (2,118)

Service Commentary Highway and Traffic services ensure the availability and preservation of a safe and functional highway network which support the economy of the County and region. A key strategic element for the Service, in the current financial climate, is to slow down the rate at which the asset will deteriorate by focusing on the review of service levels, specifications, systems and processes to 'sweat the asset'. Nevertheless, reductions in budgets (both capital and revenue) will impinge on the standards of maintenance across the network and is almost certain to increase the rate of deterioration. The severe weather of the last few winters has dramatically increased spend on reactive and remedial repairing of the carriageway and footway along with a legacy of £5.5m of damage to roads and structures. The current budget has kept the highway safe but it will not prevent further general deterioration and weakening of the asset. Budget reductions in 2013/14 and previous years will continue to impact in 2014/15 and with a further savings target, significant reductions in maintenance have been proposed. The 2014/15 allocation for safety defect repairs has been reduced, due to improved efficiency in the way in which the defects are programmed for repair. Further work continues with the Term Maintenance Contractor to explore other efficient ways of working by amending delivery methods and payment mechanisms to help mitigate the effects of budget reductions and maximise the effect of work. Some of these efficiencies are reflected in the analysis of changes.

Analysis of changes: £'000 Highway Maintenance Contract inflation 974 Gulley emptying revised frequency to needs based approach (330) Cattle grids, PROW and tree maintenance - cessation of routine surveys and routine work (447) Road signs and markings safety repair only and revised funding (389) Parish lengthsmen reshaped service (550) Focus on larger works categorised as capital: drainage, cattle grids and fencing works (2,318) Safety defects efficiency savings (1,198) Grass cutting revised regime (200) Revised lighting reactive repair regime and energy savings (270) (4,728)

Highway Network Management Inflation 153 Implementation of Highways Information System 350 Increased income from licences and permissions (150) Revised funding for staff costs (738) Transfer of staffing costs and income to Planning and Transportation 42 Transfer of premises budget to Trading Standards (11) (354)

Total (5,082)

Capital Development and Waste Management

2013/14 2014/15 2014/15 Adjusted Gross Gross Outturn Net Budget Expenditure Income Budget Changes £'000 £'000 £'000 £'000 £'000 Built Environments 204 Built Environments Team 212 0 212 8 197 Compliance Surveys - School Buildings 197 0 197 0 401 409 0 409 8

(750) Engineering and Design Services (EDG) 429 (1,179) (750) 0

Waste Disposal and Recycling 10,676 Disposal of Statutory Waste 17,642 (1,732) 15,910 5,234 11,934 Landfill Tax on Disposal 6,966 0 6,966 (4,968) 782 Other Site Related Costs 674 (7) 667 (115) 5,106 Recycling Centres 5,169 (3) 5,166 60 4,195 Recycling Credits 4,217 0 4,217 22 663 Waste Management 676 0 676 13 349 Waste Minimisation Activities 545 (244) 301 (48) 33,705 35,889 (1,986) 33,903 198

33,356 36,727 (3,165) 33,562 206

2013/14 2014/15 £'000 Breakdown of Gross Income £'000 (2,067) Customer and Client Receipts (1,986) (1,124) Recharges to Internal Users (Income) (1,179) (3,191) (3,165)

Service Commentary

Capital Development (EDG and Built Environments) The Service provides programme and project management bringing consistency and efficiency to the delivery of the capital programme including scheme design, construction management and the management of the relationship between DCC and the private sector. The challenges for the year are to drive Value for Money solutions in the delivery of the capital programme. Waste services The priorities of the service are to influence public behaviour to reduce volumes of waste, increase reuse and recycling, to manage the waste contracts for recycling and disposal, establish the needs for and provide new waste infrastructure, and work with Waste Collection Authorities to maximise efficiency and provide a joined up approach to waste management. Waste tonnage is extremely volatile and sensitive to both economic and demographic factors. This needs to be closely monitored as growth in this area would have a significant impact on the achievement of the 2014/2015 budget.

The key objectives for this year are to bring into service the new energy from waste plants for the treatment of residual waste, move forward the joint working agenda with the Waste Collection Authorities and maintain the high levels of waste reuse and recycling. Analysis of changes: £'000 Built Environments Inflation 8 Waste Service Disposal of Statutory Waste Inflation on contracts 324 Tonnage growth 122 Legislation change to improve quality of compost by excluding cardboard 75 Savings from contracts, behavioural changes and tipping away (805) Savings from reprocurement of EDDC food waste disposal contract (30) Waste moving from landfill to Energy from Waste plants (352) Remove one-off disposal contract procurement costs (100) Setting up Energy from Waste budgets 6,000 5,234 Landfill Tax on disposal Statutory increase of £8 per tonne increase April 2014 1,032 Movement of landfill tax to actual disposal cost (6,000) (4,968) Other site related costs Reduced Invessel composting plant repayment (70) Revised monitoring regime for redundant landfill sites (45) (115) Recycling centres Inflation on contracts 141 Mixture of initiatives (contract efficiencies, opening hours etc) (129) Transfer budget as changed collection regime 48 60 Recycling credits Inflation on District payments 122 Reduced recycling credits due to slower growth (100) 22 Waste Management Inflation 13

Waste Minimisation activities Transfer budget to recycling centres (48) Total 206

Planning, Transportation and Environment

2013/14 2014/15 2014/15 Adjusted Gross Gross Outturn Net Budget Expenditure Income Budget Changes £'000 £'000 £'000 £'000 £'000 Environment Service 653 Environment Policy 711 (69) 642 (11) 763 Flood Risk and Surface Water Management 862 (2) 860 97 799 Projects and Partnerships 665 (87) 578 (221) 2,215 2,238 (158) 2,080 (135) Planning and Transportation 806 Development Management 1,348 (543) 805 (1) 272 Spatial Planning 390 0 390 118 264 Strategic Planning Schools Policy 228 0 228 (36) 987 Transportation Strategy 928 (44) 884 (103) 1,583 Sustainable and Safer Travel 1,802 (463) 1,339 (244) 3,912 4,696 (1,050) 3,646 (266)

6,127 6,934 (1,208) 5,726 (401)

2013/14 2014/15 £'000 Breakdown of Gross Income £'000 (969) Customer and Client Receipts (865) (98) Recharges to Internal Users (Income) (304) (49) Reimbursements (39) (1,116) (1,208)

2013/14 Grants Paid to External Organisations 2014/15 £'000 £'000

52 Grants - AONB (East, South and Tamar) 46 77 Grant - Dorset & East Devon World 70 Heritage Site (Jurassic Coast) 30 Grants - Cornwall & West Devon Mining 30 Landscape World Heritage Site

Service Commentary The Planning, Transportation and Environment service includes strategic infrastructure planning and statutory responses including development of the Education and Transport Plans and other strategic documents, such as the Waste and Minerals plans. Additionally services include development and delivery of large infrastructure projects including planning applications, consultations, overview of planning applications and delivery of projects to enhance the ecology, landscape, marine and historic environment of Devon, and progressing the carbon management agenda. The responsibility for planning schools infrastructure, sustainable travel and road safety resides in this team along with the Flood and Water Management Act duty for Sustainable Urban Drainage Schemes (SUDS).

Analysis of changes: £'000

Environment Service Inflation 114 Removal of one-off 13/14 budget for energy measures (100) Reduced staffing structure (24) Reduced environmental management project budget (125) (135)

Planning & Transportation Inflation 64 Transfer of officer funding from Highways (42) Reduced sustainable travel and road safety project budgets (96) Changed funding contribution for School Crossing Patrols (50) Reduced sustainable travel staffing structure (62) Reduced schools strategy and transport staffing costs and increased income (80) (266)

Total (401)

Service for communities

2013/14 2014/15 2014/15 Adjusted Gross Gross Outturn Net Budget Expenditure Income Budget Changes £'000 £'000 £'000 £'000 £'000 Information, Heritage and Culture 252 Arts and Cultural Support 253 0 253 1 716 Heritage Centre and Devon Records Office 917 (213) 704 (12) 7,335 Library and Information Service 8,346 (1,108) 7,238 (97) 8,303 9,516 (1,321) 8,195 (108) Policy, Performance and Regulatory 4,269 Strategy, Policy and Organisational Change 5,228 (1,529) 3,699 (570) 523 Insight and Impact 686 (92) 594 71 2,247 Trading Standards 3,413 (1,300) 2,113 (134) 7,039 9,327 (2,921) 6,406 (633) Public and Community Transport 10,165 National Concessionary Travel Scheme 9,508 (24) 9,484 (681) 5,735 Public Transport Support 7,230 (1,228) 6,002 267 388 Management Support 1,655 (1,238) 417 29 16,288 18,393 (2,490) 15,903 (385)

31,630 37,236 (6,732) 30,504 (1,126)

2013/14 2014/15 £'000 Breakdown of Gross Income £'000 (2,528) Customer and Client Receipts (2,515) (1,373) Government and EU Grants (1,370) (1,359) Recharges to Internal Users (Income) (1,396) (1,216) Reimbursements (1,451) (6,476) (6,732)

2013/14 2014/15 Grants Paid to External Organisations £'000 £'000 400 Grants - Citizen's Advice Bureaux (*) 360 87 Grant - Community Council of Devon (*) 80 226 Grants - Councils for Voluntary Services (*) 200 6 Grants - Other 6 35 Grants - Devon Wheels to Work 20 (*) Subject to Impact Assessment

Service Commentary The Communities portfolio brings together services whose intention is to “shape” Devon by providing a mix of policies and activities to increase the capacity and resilience of local communities together with a wide range of direct service delivery including supporting the public and community transport network, safeguarding and promoting cultural, heritage and educational activities , improving the skills of local people, promoting physical activity and sport and safe-guarding public and consumer interests. The reduction in budgets alongside necessary work to incorporate changes in policy and legislation, especially the Localism Act, brings challenges and opportunities in the way these services work together.

Analysis of changes: £'000 Information, Heritage and Culture Arts and Culture Inflation 1

Heritage Centres and Devon Records Office Inflation 10 Additional income from 'Find My Past' contract (22) (12) Library & Information Service Inflation 103 Mobile Libraries - revised provision (200) (97) Policy, Performance & Regulatory Strategy, Policy and Organisational Change Inflation 29 Removal of one-off budgets for welfare reform and grant support (300) Transfer of Performance Improvement unit and Racial Equality grants (see below) (119) Reduced staffing hours, oncosts and increased income (77) Reduced commissioning and support grants (70) Reduction in Gypsy and Traveller support and premises costs (33) (570) Insight and Impact Inflation 8 Transfer of Performance Improvement and Racial Equality grants (see above) 119 Reduced staffing costs, training, professional fees and miscellaneous (20) Income generation for Information services (36) 71 Trading Standards Inflation 41 Transfer of budget for premises costs 11 Staffing restructure (186) (134) Public and Community Transport National Concessionary Travel Scheme Removal of contingency (225) Removal of specific discretionary elements (63) Efficiencies from contract arrangements (393) (681) Public Transport support Contract inflation 149 Funding for services previously paid under S106 159 South Devon Link Road bus stops 40 Various initiatives- reduced provision, advertising and restructured service (81) 267 Management Support Inflation 29

Total (1,126) Place Capital Programme 2014/15 – 2018/19 1. Introduction and Commentary A capital programme has been produced which aims to maximise investment in the county’s infrastructure and ability to support service delivery while minimising the impact on the revenue budget. We have again sought to minimise the introduction of new schemes funded from borrowing in order that revenue budgets are not squeezed further in the medium term. 2. Borrowing One of the main drivers that shape the capital programme is the desire to contain debt and thus reduce the revenue impact of capital financing. The Council has £507.850 millions of external borrowing. This reduced by £20million in July 2013 when an opportunity arose to pay off a long term debt. No new external borrowing has taken place since January 2008 and by limiting the amount of new borrowing that is introduced into the capital programme we can remove the need to take out new external loans. In setting the 5 year capital programme from 2014/15, no new capital schemes to be funded from borrowing have been introduced. In addition the Corporate Capital Group have used the budget setting process as an opportunity to appraise the existing capital programme to see if any schemes are no longer essential. As a consequence £4.6m of schemes that were neither committed nor a very high priority for the council have been withdrawn. This will directly reduce the savings front line services will have to deliver in the coming years. By only allowing borrowing to support legacy schemes, achieve revenue savings and meet key priorities, a reduction in borrowing is achieved. This is illustrated in the following table: Table 1: Forecast internal borrowing (£m) 2014/15 2015/16 2016/17 2017/18 2018/19 26.8 14.0 9.6 1.6 0.5

This level of “drop off” reduces the pressure on the revenue budget in two ways. Firstly, by reducing the need to borrow, the statutory ‘set aside’ to repay debt reduces. Secondly, future interest charges are avoided as debt does not have to be refinanced when loans mature. Because of the borrowing that was removed from the programme in recent years, the net cost of financing debt has fallen significantly. Additionally, the incremental impact of setting this year’s capital programme is a reduction of another £0.9m from the 2014/15 revenue budget for capital financing. Table 2: Forecast net capital financing charges (£m) 2014/15 2015/16 2016/17 2017/18 2018/19 52.7 52.6 53.0 50.3 49.1

However because Devon’s net revenue budget is falling faster than the capital financing charges, the percentage of the budget that meets the cost of servicing debt isn’t reducing.

Table 3: Forecast net capital financing charges as a proportion of revenue budget 2014/15 2015/16 2016/17 2017/18 2018/19 10.3% 10.9% 11.1% 10.8% 10.7% In times of budgetary constraint there is therefore a strong argument for saying that a capital programme with minimal borrowing represents the most appropriate position. As a consequence, new schemes which require borrowing should only be included if they are high priority, approved by Cabinet Members or produce compelling revenue savings. Across DCC we need to ensure that we have a consistent approach across capital and revenue. As particular service areas remodel, restructure or reduce their provision, we need to ensure that the capital investment strategy supports and reflects the approach taken in revenue. 3. Shaping the Capital Programme The remainder of the capital programme is financed from a number of sources such as capital grants, capital receipts and developer contributions. Its shape will depend to a large degree on the priorities of Government departments and the availability of contributions to support infrastructure for developing communities. To the extent that new funding becomes available from these sources the capital programme can be expanded but if funding is withdrawn or reduced then the programme must shrink. In 2013/14, DCC has been particularly successful in obtaining new grants from central government. These are listed below.  Pinch Point (£7.7m)  Regional Growth Fund (£7.9m)  Granite and Gears (£4.4m).  Local Transport Board (£7.5m)  New Stations Fund (£0.7m) In the context of a declining revenue budget it is more important than ever that DCC maximise its receipt of external grants. There will be particular burdens on officers delivering these programmes as the funds largely have to be spent by March 2015. The financing of the capital programme has also been affected this year by the transfer of the planned financing of capital spend from reserves to capital receipts and internal borrowing. This will help to maintain financial resilience and reserves will instead be available to meet some of the one-off costs associated with budget reductions. The size of the capital programme is still substantial. The latest forecast of the programme analysed by funding source is shown in Table 4. The funding available in forecast years will change as Government policies and grant allocations are published. We are aware of significant potential changes to the Integrated Transport Block of the LTP and schools capital maintenance funding.

Table 4: Forecast spending by funding source Funding Source 2014/15 2015/16 2016/17 2017/18 2018/19 £m £m £m £m £m Borrowing (incl. 27.7 15.1 10.9 1.7 0.6 VELP) Capital Receipts 4.1 4.1 2.8 0.8 0.7 Capital Receipts - IID 0.9 6.7 0.7 0.0 0.0 Revenue Financing 1.2 0.2 0.2 0.2 0.2 Reserves 0.0 0.0 0.0 0.0 0.0 External 17.7 4.2 1.6 1.5 0.6 contributions Grants 84.3 67.1 56.1 51.7 51.3 Developer 4.4 8.0 0.0 0.0 0.0 Contributions Total 140.3 105.4 72.3 55.9 53.4

This translates into the indicative spending levels set out in Table 5. Table 5: Anticipated Capital Programme 2014/15 2015/16 2016/17 2017/18 2018/19 £m £m £m £m £m Place 132.1 92.1 61.8 52.3 50.6 People 5.8 12.1 10.2 3.4 2.8 Corporate 2.4 1.2 0.3 0.2 0.0

Total 140.3 105.4 72.3 55.9 53.4

4. Alternative funding options The reduction in public expenditure limits the Council’s ability to maintain the level of capital investment in the county at the level seen in recent years. Some flexibility is found through the use of reserves and the proceeds of the sale of existing assets. However, the availability of these sources of finance is limited and they will be needed in the short and medium term to meet the revenue costs associated with service restructures. Should the need arise to meet urgent capital spending in particular areas, limited resources would need to be carefully targeted. The overall reduction in revenue funding has highlighted the link between the capital programme and the burden of financing it through the revenue budget. A large capital programme funded predominantly through borrowing is no longer sustainable and can only be ameliorated by virtually eliminating borrowing as a source of funding for at least the medium term for all but the most urgent priorities. Alternative sources of funding continue to be explored, but these are strictly rationed and flexibility to respond to capital pressures is limited. 5. Service Specific budget Issues Place has developed a capital programme which maximises investment in the county’s physical infrastructure and has successfully leveraged significant sources of additional external funding as detailed in section 3. In particular, the South Devon Link Road and super fast broadband will be rolled out over the period of the programme. These schemes will have a major impact on businesses and communities of Devon and are primarily funded by external grants and contributions. There is continued investment in Education. Of particular note are the relocation of Mill Water, the redevelopment of Dartmouth Academy and the expansion of Bradley Barton Primary school. The Capital Maintenance programme ensures that Devon’s Schools’ estate have suitable accommodation that meet ongoing requirements and reduce environmental impact. Capital Programme

The following table details the medium term capital programme for this service, and how that programme is being funded.

*Total Scheme Project Approval 2014/15 2015/16 2016/17 2017/18 2018/19 Total £'000 £'000 £'000 £'000 £'000 £'000 £'000

ECONOMY & ENTERPRISE

Devon and Somerset Superfast Broadband Programme 10,500 0 8,700 1,800 0 0 10,500 Higher Okehampton Business Park 1,729 705 769 0 0 0 1,474 Industrial estates 113 0 0 0 0 113 Science Park Development Phase 1 127 0 0 0 0 127 Skypark and Science Park improvement schemes 2,900 1,577 0 0 0 0 1,577 Total 2,522 9,469 1,800 0 0 13,791 HIGHWAYS, CAPITAL DEVELOPMENT & WASTE MANAGEMENT Highways Depot Strategy 471 150 0 0 0 621 Reinstatement of Grand Western Canal 3,000 2,075 600 0 0 0 2,675 Local Transport Plan (LTP) Maintenance 34,692 34,692 34,692 34,692 34,692 173,460 37,238 35,442 34,692 34,692 34,692 176,756 Waste Service Exeter Energy From Waste (EEFW) plant and transfer station 8,785 3,256 0 0 0 0 3,256 Ivybridge recycling centre 3,133 2,200 750 0 0 0 2,950 5,456 750 0 0 0 6,206 Schools Maintenance and Improvements Brampford Speke Primary - DDA 70 8 0 0 0 78 Chagford Church Of England Primary School - Roof & Fenestrations 315 87 0 0 0 0 87 Copplestone Primary - Roof Improvements 250 210 25 0 0 0 235 Cullompton Community College - Playground & Roof Improvements 475 162 16 0 0 0 178 East-the-Water Community Primary School - Replace Bulkhead & Rewire 78 14 0 0 0 92 Halberton Primary School - Block 02 Replace Fenestrations and Joinery 84 15 0 0 0 99 Heathcoat Primary School - Roof Improvements 175 147 18 0 0 0 165 Honiton Primary School - External Refurbishment and CO Detection 51 10 0 0 0 61 Ilfracombe Media Arts College - Main Site Boiler, Roof & Fenestrations 1,053 75 0 0 0 0 75 Ladysmith Infant School - HORSA Building Replacement 1,775 240 180 0 0 0 420 Ladysmith Junior School - DDA Adaptations 55 50 0 0 0 0 50 Marland School - Main block improvements 98 18 0 0 0 116 Marland School - Multi Use Hall 559 475 60 0 0 0 535 Marwood School - Replace temp classroom 325 81 0 0 0 0 81 Newtown Primary School – Window Replacement Lower Block 314 83 0 0 0 0 83 Sidmouth College - Block 09 - Replace Windows 116 21 0 0 0 137 Sidmouth College - Replacement of Blocks 04, 05, 06 and 07 932 266 93 0 0 0 359 South Tawton Primary School - Replace Blocks 03, 04, 05 & 06 500 920 0 0 0 1,420

St Leonard's CofE Primary School - Hall / Playground 60 0 0 0 0 60

*Total Scheme Project Approval 2014/15 2015/16 2016/17 2017/18 2018/19 Total £'000 £'000 £'000 £'000 £'000 £'000 £'000

HIGHWAYS, CAPITAL DEVELOPMENT & WASTE MANAGEMENT CONTINUED Schools Maintenance and Improvements St Mary's C of E Primary School (Bideford) - Expansion (Phase 2) 150 275 0 0 0 425 St Thomas Primary School - Heating System Improvements 81 15 0 0 0 96 Tavistock College - Block 14 - Replace 79 14 0 0 0 93 The Axe Valley Community College - Replacement of block 19 533 76 53 0 0 0 129 The Lampard Community School - Rewire, Roof & Window improvements 227 41 0 0 0 268 The Park Community School - Sports Hall Improvements 5 139 25 0 0 169 Tiverton High School - Horizon block roof works and fenestrations 573 137 0 0 0 0 137 Westcliff School - Heating System Improvements 101 18 0 0 0 119 Whipton Barton Junior School - Block 01 - Replace Flat Roof 70 13 0 0 0 83 Willowbrook Primary - Roof Improvements 120 98 12 0 0 0 110 Withycombe Raleigh C of E Primary School - Block 01 Roof Improvements 56 10 0 0 0 66 Other Capital Maintenance Schemes 2,280 236 0 0 0 2,516 Capital Maintenance (contingency) 130 695 169 0 0 994 MUMIS (contingency) 90 90 0 0 0 180 Estimated Capital Maintenance 0 8,000 8,000 8,000 8,000 32,000 Lightning protection 533 41 0 0 0 0 41 Infant Free School Meals (capital Fund) 40 1,100 143 0 0 1,283 6,594 12,109 8,337 8,000 8,000 43,040 Total 49,288 48,301 43,029 42,692 42,692 226,002

PLANNING, TRANSPORTATION & ENVIRONMENT Large and Major Schemes - Highways A380 South Devon Link Road 119,996 38,564 6,914 3,072 2,830 1,094 52,474 A39 Roundswell Roundabout & Development Site Access 2,108 998 0 0 0 0 998 Airport Link Road 1,975 1,885 0 0 0 0 1,885 Barnstaple Western Bypass 44,618 100 0 0 0 0 100 Bridge Road Widening 10,588 980 6,715 2,250 0 0 9,945 Crediton Link Road 8,422 3,539 0 0 0 0 3,539 Decoy Industrial Estate Access Road 2,650 1,641 0 0 0 0 1,641 Deep Lane - junction improvements 783 0 675 0 0 0 675 Drumbridges Roundabout Improvements 750 0 0 0 0 750 East of Exeter Access Improvement Phase 2 14,989 30 0 0 0 0 30 Holsworthy Agri Centre access 908 350 0 0 0 0 350 Tithebarn Link Road Phase 1 5,200 4,058 942 0 0 0 5,000 52,895 15,246 5,322 2,830 1,094 77,387 Sustainable Transport Around Devon cycle route - Teign Estuary 50 50 680 0 0 780 Cycling Exe Estuary 3,511 0 0 0 0 3,511 Cycling - Wray Valley Trail - Bovey to Moretonhampstead 109 285 0 0 0 394 Dartmoor: Granite and Gears - Cycle trails to health and prosperity 3,711 0 0 0 0 3,711 Local Sustainable Transport Fund (LSTF) Access to Employment 270 0 0 0 0 270 Local Sustainable Transport Fund (LSTF) Access to Education 100 0 0 0 0 100 Local Sustainable Transport Fund (LSTF) Access to Stations 90 0 0 0 0 90 Marsh Barton / Edginswell Station 0 1,500 1,500 0 0 3,000 Newcourt Station 1,569 741 0 0 0 0 741 8,582 1,835 2,180 0 0 12,597 *Total Scheme Project Approval 2014/15 2015/16 2016/17 2017/18 2018/19 Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 PLANNING, TRANSPORTATION & ENVIRONMENT CONTINUED Environment Exeter Flood Alleviation Scheme 0 1,500 1,500 0 0 3,000 World Heritage Visitor Centre (Seaton) 250 0 0 0 0 250 Local Transport Plan (LTP) Integrated transport block 6,159 3,000 3,000 3,000 3,000 18,159 6,409 4,500 4,500 3,000 3,000 21,409 Schools Expansion Advanced Design Fees (ADF) 630 0 0 0 0 630 Cranbrook New Community - Education Campus 0 1,000 0 0 0 1,000 Marland School - Replacement 0 630 0 0 0 630

Bradley Barton Primary School & Nursery Unit - Additional classrooms 230 10 0 0 0 0 10

Bradley Barton Primary School & Nursery Unit - Expand to PAN60 (Ph 2) 1,869 1,260 500 0 0 0 1,760 East-the-Water Community Primary School - Expand to 420 500 171 0 0 0 671 Exminster Community Primary - Four class extension 790 410 0 0 0 0 410 Ide Primary - Additional classrooms 260 10 0 0 0 0 10

Kingskerswell CofE Primary School - Phased expansion to PAN 60 1,125 500 600 0 0 0 1,100 Marpool Primary School - Expansion (Phase 3) 545 510 0 0 0 0 510 Pinhoe C of E Primary - Expand to 420 200 175 0 0 0 0 175 Sidmouth Primary - Additional classrooms 207 204 0 0 0 0 204 St Martins Primary School - Fitting out new school 284 0 65 0 0 0 65

St Mary's C of E Primary School (Bideford) - Additional classrooms 160 10 0 0 0 0 10 Willowbrook Primary - Expand to 420 585 570 0 0 0 0 570

Withycombe Raleigh CofE Primary School - Extend hall 557 10 0 0 0 0 10 Woodbury Primary - Additional classroom 303 300 0 0 0 0 300 Woolacombe School - Expansion up to 420 388 345 0 0 0 0 345 Basic Need (contingency) 0 1,286 0 0 0 1,286 Dartmouth Academy - Major refurbishment 7,553 2,650 500 0 0 0 3,150 Mill Water Community School - Relocation 9,541 2,135 670 0 0 0 2,805 Estimated Basic Need 0 3,550 3,728 3,842 3,842 14,962 10,229 8,972 3,728 3,842 3,842 30,613

Total 78,115 30,553 15,730 9,672 7,936 142,006

SERVICES FOR COMMUNITIES Libraries Cranbrook library 0 230 0 0 0 230 Exeter Central Library Development 4,763 500 0 0 0 0 500 Library estate RFID / self service 0 125 0 0 0 125 Library modernisation partnership schemes 300 1,280 0 0 0 1,580 800 1,635 0 0 0 2,435 Investing in Devon Countess Wear Community Centre 150 50 100 0 0 0 150 Dartmouth Swimming Pool 1,500 500 1,000 0 0 0 1,500 550 1,100 0 0 0 1,650

Vehicle Equipment Loans Pool - Fleet management 806 1,012 1,225 0 0 3,043 Total 2,156 3,747 1,225 0 0 7,128

Total 132,081 92,070 61,784 52,364 50,628 388,927

Financed by: Borrowing - Unsupported 25,672 8,830 2,986 1,415 547 39,450 Borrowing - VELP 806 1,012 1,225 0 0 3,043 Capital Receipts - General 1,029 3,168 1,850 0 0 6,047 Capital Receipts - IID 850 6,150 680 0 0 7,680 Direct Revenue Funds - Services 929 0 0 0 0 929 External Funding - Contributions 17,441 4,177 1,536 1,415 547 25,116 External Funding - Grants 81,000 60,740 53,507 49,534 49,534 294,315 External Funding - S106 4,354 7,993 0 0 0 12,347 Total 132,081 92,070 61,784 52,364 50,628 388,927

* Scheme Approvals have been included for individual projects. This table does not show expenditure on capital projects currently programmed in financial year 2013/14 which may be deferred to 2014/15 owing to changes in project delivery timescales. Place - Risk Assessment Service Budget Risk and Impact Mitigation 2014/15 £’000 Winter 4,875 Winter maintenance and other There is limited scope for Maintenance emergencies which are management action as the and typically weather related, bulk of the costs tend to Emergencies cannot be predicted. There is fall in the latter part of the a risk of overspend in the financial year thus event of severe weather precluding funding by conditions. Proportions of this deferral of planned budget are based on a mild to maintenance work. DCC average winter. Therefore a policy is to respond worse than average year will appropriately to such place additional pressure on events and wherever this budget. possible divert resources from other works in order to mitigate some of the costs. Safety Defect 5,000 This continues to be a volatile New ways of providing this Repairs service area. Prolonged service continue to be adverse weather conditions explored. For example a significantly affect the level of new vWorks system has safety defects needing been introduced to attention. Over the last 3-4 optimise the route years significant extra planning of these works. resources from both central

government and DCC have been targeted towards this area. Ash Die Back Nil Ash dieback could have an The rate of the spread of Disease – effect on DCC budgets and disease will be monitored impact on resources. This impact will not closely and will ensure that Highways be immediate but the effects all trees not owned by DCC will probably be dealt with over are dealt with by the land a 10 year period. There is owner. evidence that Ash Die Back is infiltrating into Devon’s tree population. Ash trees make up approx. 20% of Devon’s tree population. If 20% of those trees are the responsibility of DCC this could result in a £350k cost per annum. Waste 33,903 Waste tonnage levels and Budgets reflect recent Management growth rates are volatile and trends. Other than difficult to predict as they are undertaking work to subject to a range of influences influence behaviours there outside the control of DCC. is limited scope for Due to the current economic management to alleviate climate a small growth level financial pressures should has been assumed based on tonnage increase. current levels of tonnage going Tonnage levels are closely to landfill disposal. Similarly, monitored. the extent to which contractors will meet recycling targets is uncertain. These risks may result in the budget being over or under provided. A variation in tonnages of +/- 1% could result in a financial variation of £315k. Public & 6,002 Around 75% of passenger Budget is based on actual Community journeys are on commercial services each year. Service Transport bus services with no DCC support is based upon control over them. The criteria related to DCC remainder are on supported strategic objectives. (contracted) bus services. The Wherever possible commercial sector therefore Commercial Operators are shapes the network, and DCC encouraged to take up responds to fill in gaps, services. DCC supported optimising the scope for an services are developed to integrated network. With 19% achieve commercial of Devon residents having no viability where possible. access to a car, this places an

increased strategic pressure on supported services. Maintaining existing levels of this service will be difficult to achieve in future years. National 9,484 Under statutory provision Budgets reflect recent Concessionary Commercial Bus Operators are trend data. Fixed fee Travel Scheme reimbursed for the use of free contracts with bus travel passes by more than providers have been 175,000 pass-holders in Devon negotiated to alleviate and by non Devon residents most of the uncertainty travelling in the County. Travel around costs. levels and patterns are subject to a range of influences which are outside the control of DCC so cannot be predicted precisely. Flood Risk 860 DCC is the Lead Local Flood Work is continuing on Management – Authority (LLFA) as defined by developing the necessary surface water the Flood and Water processes and procedures Management Act and the Flood to ensure the scheme is

Risk Regulations. Special implemented from 1st grant provision has been made April. However, without by DEFRA in relation to LLFA knowing the exact detailed duties and fees will be levied requirements this poses a on developers at the planning risk to the budget if stage to ensure adequate resources are not surface water management. adequate to cover the The scheme is intended to be service required. self-financing via the fees and should “go live” during 2014/15. However it is unclear on the exact detail of the scheme and there are concerns about funding for ongoing maintenance. Exeter Science Max During 2014/15 Exeter Science The guarantee is based on Park (loan 2,652 Park Limited (ESPL) is due to development monies being guarantee) start construction on a Science generated in the future to Park Innovation Centre. This is repay the loan. If the being partially funded via a budgeted requirement loan from the Growing Places increases further funds Fund which is controlled by the may need to be set aside. Local Enterprise Partnership This will be monitored (LEP). DCC have guaranteed during the year via ESPL 50% of the loan and interest. Business Plans which have It is possible that part of the to be approved by the guarantee (£800k) will be Board at regular intervals. required and budgetary provision has been made to cover this aspect. Legislative Various Legislative changes are an The introduction of new Changes ongoing risk, for example, legislation will be closely refinements to waste monitored. There is categorisation or Sustainable limited scope for Urban Drainage Systems management to alleviate (SUDS) requirements etc. financial pressures. Legal Unknown With reducing resources there To plan in advance to Challenges is the potential to face legal ensure that all statutory

challenges over areas relating duties are adequate and to our statutory duties or that full consultation and where there are equality impact analysis is impact issues. These include completed. our legal duty for Highways, Flooding and any potential reductions planned. Match Funding Various With the emphasis on public Target of limited resources sector reductions the ability to to optimise economic provide match funding to draw benefit. down funding from other providers becomes more difficult to achieve. A large number of grants will require an element of match funding. The impact will be greater in the longer term. Income 5,943 Due to varying factors such as This will be monitored Collection the current economic climate during the year so that or changes in technology, the early detection can aid level of income from fees and management action to charges from licences for endeavour to either works to highways, planning increase the income or fees, courses at the Devon identify reductions Drivers Centre and DVDs being elsewhere to offset. rented from libraries, is under

increasing pressure. Budget 9,993 An extensive programme of The first priority is to Reductions budgets cuts is planned for maintain statutory 2014/15. This is the fourth compliance. A rigorous year of reductions for Place programme with risk which look set to continue for a assessment has been further 3 to 4 years. developed and will be Reductions are becoming continually monitored harder to achieve with the time during 2014/15. Maintain and capacity needed to achieve continuous efforts to the outcomes greater than at influence and negotiate the start of the austerity with partners. process. Some reductions are reliant on collaboration and co- operation from partners which cannot be fully guaranteed or controlled by DCC.

Partnership Risk Assessment

Partnership Purpose Partner Gross Risk Analysis / Value Mitigation £’000 Place Safety To encourage Devon 207 (DCC There is a legal Camera road safety in County only) agreement in place

Partnership the region. Council, between the

Cornwall partners. The Road

Council, Safety Partnership board decides which Torbay schemes to fund Council, and Cornwall Devon and Council is the Cornwall Accountable body. Police. There is no risk of unexpected material costs arising unless the partnership is disbanded where liability for exit costs will be shared between partners. This risk is partially mitigated by a partnership reserve to part fund exit costs.