Budget presentation baffins neighbourhood forum may 2011 kb final
-
date post
19-Oct-2014 -
Category
Documents
-
view
574 -
download
0
description
Transcript of Budget presentation baffins neighbourhood forum may 2011 kb final
Baffins Neighbourhood ForumBudget Update
2011/12 to 2014/15
Roger Ching
Strategic Director & S151 Officer
City Council 8 February 2011
Reports Approved:-
• Revenue Budget 2010/11 to 2014/15– Day to day running costs of services (salaries,
premises costs, contracts etc.)
• Capital Programme 2010/11 to 2015/16– Improvements to (or) new buildings, land &
equipment
Two Types of Expenditure
• Revenue
• Capital
Revenue Expenditure
Spending on running costs of services
- salaries of staff
- energy costs
- capital financing costs
Capital Expenditure
Payments made to buy or provide
assets which will be of long term
value to the Authority- Land- Buildings- Equipment
A Simple Illustration
Running your car…………..
Buying the car = Capital Expenditure
Running the car = Revenue Expenditure• repairs• insurance• petrol• repayment of loan
Revenue Budget
2011/12
Revenue Budget• Sets out the City Council’s day to day expenditure
and how it is funded• Total expenditure is funded by a mixture of:-
- Government Grants
- Business Rates
- Council Tax
- Income from fees and charges
- Contribution from Revenue Reserves• Government requires Local Authorities to set a
balanced budget each year • Aim is that In-Year Expenditure equals
In-Year Income
Examples of Services Provided
Front Line Services Support Services
Education Information Services
Safeguarding of Children Human Resources
Environmental Health Finance
Highways Infrastructure Asset Management
Adult Social Care Legal Services
Planning
Refuse Collection
Trading Standards
Libraries & Museums
Budget Headlines
• Formula Grant reduction• Council Tax freeze (offset by new grant)• Council Tax collection rate of 98.5%• No allowance for pay award• Inflation for all services• Reduction in contingency provision• Net savings of £15.0m recommended by
Cabinet
Local Government Finance Settlement 2011/12
• Overall reduction in grant (cash):2011/12 £11.3m or 9.07%2012/13 £ 6.5m or 5.69%
But - like for like basis:• Overall reduction in grant
2011/12 £14.3m or 11.42%2012/13 £ 5.3m or 4.76%
Revenue Budget Process 2011/12
• Target savings set at £15.0m • Members have considered the impact on
corporate priorities, service delivery, performance and value for money of :
- Officer Savings Proposals
- Staff and Residents’ Savings Suggestions
- Budget Pressures
Revenue Budget Process 2011/12
• Recommended Savings set out in Appendix C• Recommended Budget Pressures set out in
Appendix D• Savings result in the loss of 184 posts (124
full time and 60 part time) equal to 151 Full Time Equivalent
• Savings include Senior Management reductions
Savings Target £15.0m
£’000
Review of Original Forecast (1,190)
Add Savings (Appendix C) (17,863)
Gross Savings (19,053)
Less
Budget Pressures (Appendix D) 4,053
Net Savings
(15,000)
Budget 2011/12Portfolio Savings Pressures Change
£’000 £’000 £’000
Children’s Services (3,211) 574 (2,637)
Culture Leisure & Sport (1,454) 1,299 (155)
Education (2,599) 74 (2,525)
Environment & Com.Safety (1,537) 100 (1,437)
Health & Social Care (3,372) 1,200 (2,172)
Housing (899) 29 (870)
Leader (64) - (64)
PRED (302) 30 (272)
Resources (3,474) 600 (2,874)
Traffic & Transportation (906) 25 (881)
Other Expenditure etc (45) 122 77
TOTAL (17,863) 4,053 (13,810)
NB. £1.8m added to Children’s Social Care 2010/11 and on-going
Budget 2011/12
£m
Gross Expenditure 534.460
Less Gross Income 372.993
161.467
Less Government Grants 91.263
70.204
Less Collection Fund Surplus 1.355
Required from Council Tax 68.849
Council Tax 2011/12
Council Tax Requirement £68.849m
Council Tax Base 59,914.9
Council Tax at Band D 2011/12 £1,149.12
Council Tax increase of 0%
Total Tax 2011/12 (Band D) 2010/11 2011/12
Increase
£ £ %
Portsmouth City Council 1,149.12 1,149.12 0.00
Hampshire Police Authority 146.25 146.25 0.00
Hampshire Fire & Rescue 61.38 61.38 0.00
Band D Property – Total 1,356.75 1,356.75 0.00
Tax for All BandsBand 2011/12
A £ 904.50
B £1,055.25
C £1,206.00
D £1,356.75
E £1,658.25
F £1,959.75
G £2,261.25
H £2,713.50
National Non Domestic Rates
• Five yearly business rate revaluation in 2009 • For 2011/12, businesses will pay 43.3p for
every £1 rateable value (41.4p in 2010/11)• Money collected is paid into a National Pool• Portsmouth receives a share of the National
Pool as part of Formula Grant
Forecast Budgets
2012/13 to 2014/15
Forecast Budgets 2012/13 to 2014/15
Assumptions include:• Formula Grant reduction of 7.48% in 2012/13,
0.85% in 2013/14 and 5.6% in 2014/15• 2.5% increase in Council Tax each year• Council Tax collection rate of 98.5%• Inflation for all services• Ongoing effect of savings and budget
pressures approved for 2011/12• Allowance for unavoidable budget pressures• Allowance for other known budget pressures
Forecast Budgets 2012/13 to 2014/15
• Savings to be found in future yearsUnderlying In-Year
Cumulative Budget Deficit Target Saving
£m £m £m 2012/13 7.142 8.0 8.0 2013/14 10.467 7.0 15.0 2014/15 22.326 7.0 22.0
• Savings targets allocated across all services
Target Savings 2012/13 to 2014/15
• Targets for Adult and Children’s Social Care reduced by 50%
• Targets for all other services shared proportionately
• Further review of apportionment of savings targets
Budget 2011/12In Summary• Financially challenging • Budget aims to protect services within tight
financial constraints• Council Tax freeze• Budget deficit of £4.739m balanced by
contribution from Reserves• £22m further savings to be made in 2012/13,
2013/14 and 2014/15
Capital Programme
2010/11 to 2015/16
Capital Funding Sources
Funding sources include:-• Borrowing
- Supported (ie Government support for
repayments)
- Prudential Borrowing (ie tax for repayments) – used
only for Spend to Save Schemes
• Capital Receipts• Grants/Other External Contributions• Revenue Contributions
Proposed New Capital Schemes
Includes:• Berth 2 Extension (Port)• Decent Homes Standards• Housing Support for Vulnerable People• Hilsea Splashpool• Landlords Maintenance• North End Regeneration• Road Schemes (Local Transport Plan)• Schools Modernisation
Major Schemes Requiring Funding
• Northern Quarter• Somerstown Phase 2• Tipner• Northern Road Bridge• Guildhall• Schools Strategy
Questions?