Scottish Borders Council Draft Revenue Financial Plan 2014/ /19. Council 12th December 2013

Transcription

1 Draft Revenue Financial Plan - Council 12th December 2013

2 Revenue Financial Plan - Page No. Content 3 Introduction 4 Revenue Resources summary 5 Department summary 6 Budget movement summary 7 Manpower, inflation & pressures summary 2

3 Revenue Financial Plan - (Estimated in advance of publication of the settlement) Introduction A draft 5 year revenue Financial Plan has been prepared for Council reflecting a firm budget for and provisional budgets for -2019/18. Revenue Resources Summary The estimated funding to support the revenue budget is assumed to broadly remain flat within in the first 4 years of the plan with the continuation of the Council Tax freeze and flat cash settlements from the Scottish Government. Funding has only increased from Council Tax from new homes built in the Borders. In order to support the delivery of the Business Transformation programme additional resource has been identified from: - earmarking an underspend in loan charges in 2013/14 of 1m - additional support from reserves of 1.2m for which will be repaid in future years Manpower, Inflation & Pressures The review of manpower, inflation and pressures facing the council over the next 5 years now indicates increased cost of continuing of 8.148m in and m over the 5 years. A review of the cost of pay awards and increments has been completed to reflect the current establishment and terms & conditions within the Council which has indicated increased costs of 3.375m in and m over the next five years. The proposed changes to terms and conditions set out in appendix 2 looks to reduce this cost by 2.6m. This may change if proposals are amended in discussion with the Trades Unions. Inflation of 1.462m for has been included in the Financial Plan with a 5 year total of 6.079m. Budget pressures across the Council of 3.311m for have been included in the Financial Plan with a 5 year total of m. These budget pressures include increased demographics particularly in Social Work services, changes in government policy and revenue consequences of investment detailed through the capital plan. Savings proposals Savings proposals have been considered and are presented by the Administration later in the agenda. 3

4 Revenue Financial Plan - Revenue Resources (Estimated in advance of publication of the settlement) Aggregate External Finance Comments General Revenue Support estimate 166, , , , , ,969 Assumed provisional figure from SG. Increase in funding 17/18 anticipated for inflation & pay awards. Figures reflect reduction in RSG for Police & Fire of m. 13/14 Differential funding for the uplift on Care Homes RSG Redetermination Non-domestic Rates (distribution from national pool) 31,183 31,183 31,183 31,183 31, ,915 Provisional figure from SG 197, , , , , ,134 Funding from the reduction in loan charges ,500 Based on borrowing requirements of Capital plan Reserves (deployment and repayment) 1,200 (948) (449) (44) 2013/14 Earmarked Balance (loan charges) ,000 Council Tax (Band D 1,084 - no increase) 51,126 51,626 52,126 52,626 53, , , , , , ,319 1,258,120 To support transition cost of Business Transformation Loan charges underspend earmarked in the 13/14 revenue monitoring Council tax freeze over 5 years. The increase arises from estimated new homes. 4

5 Revenue Financial Plan - Departmental Summary Chief Executive 25,707 25,973 26,184 26,647 27, ,772 Education & Lifelong Learning 93,489 92,593 92,181 91,506 93, ,997 Social Work 75,164 75,875 77,203 78,967 81, ,419 Environment & Infrastructure 30,381 31,000 31,458 31,113 32, ,070 Loan Charges & Other 26,454 23,309 23,136 23,463 22, , , , , , ,318 1,258,120 5

6 Revenue Financial Plan - Budget Movement Summary Base Budget (approved 7 February 2013) 248, , , , ,696 1,250,449 Add/deduct Permanent Virements Full year effect (FYE) of previous year's Growth / Savings (262) (262) Manpower adjustments 3,375 4,534 3,868 3,572 3,094 18,443 Non-pay Inflation including Service Specific 1,463 1,100 1,100 1,090 1,328 6,081 Department Specific Pressures 3, ,763 1, ,955 Cost of Continuing 7,887 6,474 6,732 6,502 4,622 32,217 Deduct Business Transformation Projects (4,120) (6,804) (3,810) (3,011) 0 (17,745) Efficiencies in Service Delivery (714) (1,565) (1,324) (1,710) 0 (5,313) Service Rationalisations (187) (140) (140) (204) 0 (671) Increased Income/New charges (318) (410) (45) (44) 0 (817) Savings (5,339) (8,919) (5,319) (4,969) 0 (24,546) Base Budget 251, , , , ,318 1,258,120 6

7 Revenue Financial Plan to Manpower, Inflation & Pressures Summary Department 2013/14 Base Budget Notes Manpower Manpower Adjustments Pay award provision Corporate 145,671 1,585 3,008 3,154 3,144 2,972 13,863 1% pay award year 1, 2% years 2-5. Staff Increments Corporate 145,671 1,437 1, ,637 Increment recommencing from Nov 13. As staff turnover fall increment will not increase at the same levels as staff reach the top of their scale. Other Manpower Adjustments Corporate 145, Other manpower adjustments reflects changes such as costs associated with re-grading of posts, people joining the pension scheme, single status reviews and appeals. Pensions employer contribution following revaluation Corporate 145, SBC pensions contributions are low compared to other local Scottish LAs and it is not likely that this can be maintained. Increase from 18% to 18.25% in year 2 and to 18.5% in year 4. Manpower Adjustments 3,375 4,414 3,868 3,572 3,096 18,325 Inflation Statutory Free Personal Nursing Care SW Uprate based on CPI. Free Personal Care SW Uprate based on CPI. Statutory Inflation 1, Contractual Bus Contracts (renewal) E&I 3, Contracts to be retendered. COSLA Res / Nurse Care Home Contract SW 6, Uprate based on CPI. Unitary Charge E&LL 7, ,099 Based on assumed RPI as per contract. Borders Sport & Leisure Trust E&LL 2, Based on assumed RPI less 2%. Jedburgh Sport & Leisure Trust E&LL Based on assumed RPI less 2%. Contractual Inflation 21, ,336 7

8 Manpower, Inflation & Pressures Summary Department 2013/14 Base Budget Business Critical 0 Employee Insurance Corporate Based on CPI & risk management framework. Property Insurance Corporate Based on CPI & risk management framework. Leased Property Insurance Corporate Based on CPI & risk management framework. Vehicle Insurance Corporate Based on CPI & risk management framework. Car Lease Insurance Corporate Based on CPI & risk management framework. Other Insurance Corporate Based on CPI & risk management framework. Electricity Corporate 3, Based on current procurement contract. Gas Corporate Based on current procurement contract. Rent & Way leaves Corporate Best estimate from Estates office. Water Corporate Based on current procurement contract. Rates Corporate 5, Assumed increase of 1.5% p.a. Licenses Corporate 1, Software license fees based on CPI. Catering (food) Chief Exec 1, Based on estimates of food only inflation. Borders Care & Repair Contract Chief Exec Based on CPI. Road Fuel E&I 2, Based on CPI. Aggregates & Bitumen E&I Reflects Scotland Excel contract. Vehicles & Spare Parts E&I 1, Reflects Scotland Excel contract. Winter Maintenance E&I 2, Reflects fuel increases. Property Maintenance Corporate 2, Reflects procurement framework agreements. Business Critical Inflation 23, ,613 Inflation 46,062 1,462 1,099 1,099 1,091 1,328 6,079 Department pressures Demographic-driven pressures/reductions Number of old people requiring care SW 22, ,384 Average annual projected increases by age cohort costed at average care costs by age cohort. Impact of Young People with LD / PD needs entering adulthood SW 16, ,859 Costed directly from children in transition to adulthood. No / Lifespan children - severe / complex needs SW % increase on existing budget to reflect projected trend. Movement in ICS school-based staff SW 8, Linked to mainstream education demographic projections. Accommodated/Looked after children SW 3, To reflect the increased number of children requiring foster and kinship care. ICS transport SW 1, Increased demand for transport Pupil Demographics (Teacher Numbers) E&LL 40, Demographic increase in 16/17 and 17/18 projected due to impact of new housing. Demographic-driven pressures/reductions 93,775 1,263 1,401 1,394 1,555 1,122 6,735 Notes 8

9 Manpower, Inflation & Pressures Summary Department 2013/14 Base Budget Government policy changes Localised Council Tax Benefit funding Corporate 669 (68) (68) Part funded by Scottish Government and expected to now continue after 2013/14. Landfill Tax (Tonnage x 8 ton increase) E&I 2, As advised by HM Customs. Food Waste Collection E&I Cost of introduction of food waste. DWP subsidy for CTAX & Housing Benefit Corporate (880) Reduction in subsidy from DWP. administration Council pledge to retain / recruit foster carers SW 1, Increase reflect the SJC manpower pay awards assumption of 1% yr 1 and 2% yrs 2-5. Landfill tax savings food waste collections E&I 0 (60) 0 0 (103) (105) (268) Based on 60% uptake and food waste disposal being handle by NES contract 15/16 Early years Change Fund Corporate (297) (297) Funding of early years project finishes in 14/15 Older people Change Fund Corporate (718) (479) Funding to support older people change fund which finishes in 14/15. Government policy changes 5,288 1,022 (534) Economic Factors Licensing income Chief Exec (434) 0 (50) 0 0 (50) Increase in licensing income for Taxi and Alcohol following a temporary 2 year reduction. Economic Factors (434) 0 (50) (50) Notes 9

10 Manpower, Inflation & Pressures Summary Department 2013/14 Base Budget Other Pressures Additional Commitment on Family Support SW 24, RSG redetermination Peebles High School Sports Facility E&LL 5, Additional revenue costs of new sports facility. Duns Primary School move E&LL 1, Additional revenue costs of new building. New Kelso High School E&LL 2, Additional revenue costs of new school. New West Linton Primary School E&LL Additional revenue costs of new school. School Transport E&LL 3, Additional cost due to retendering of contract ER/VS - Redundancy costs Corporate 819 (29) (990) (819) Additional cost of ERVS. Wide Area Network Chief Exec (194) Estimate of cost of WAN in Borders. Commercial Rent income Corporate (1,248) (12) (19) (19) (19) (20) (89) Initial increase following rent review. Additional Quality of Life funding E&I Quality of Life funding to be delivered via the 5 Area Forums. Rephasing of Culture Trust saving E&LL 0 (120) (120) Transfer of saving from 2013/14 to. Recharge income for Finance Project Team Chief Exec 3, Due to reduced chargeable capital projects. Reduced internal income (property) Chief Exec Due to reduced capital spend and reduction in police income. Change in empty property relief Chief Exec 1, Reduction in NDR relief for Council empty properties. Carbon Tax Chief Exec Increase in carbon tax per ton 12 to 14 Licensing income shortfall Chief Exec (328) Redetermination of licensing income following down-turn in 2011/12/13 Finance Support Chief Exec 3, Additional support for procurement & credit control. Chief Exec support Chief Exec Additional administrative support to the Chief Exec's office. New Kelso High School Chief Exec Whole life maintenance cost for the new school. Other Pressures 47,303 1, (1,010) 413 Pressures 145,932 3, ,764 1, ,955 Manpower, Inflation & Pressures 191,994 8,148 6,352 6,731 6,504 4,624 32,359 Notes 10