Policy and Resources Committee 9 January 2006

From Nigov

B415

Policy and Resources Committee

Monday, 9th January, 2006

SPECIAL MEETING OF POLICY AND RESOURCES COMMITTEE

Members present: Councillor Rodway (Deputy Chairman) (in the Chair); and Councillors Attwood, M. Browne, Crozier, D. Dodds, Hartley, Jones, Lavery, Maginness, McCann, McCausland, Moore, Newton, Rodgers, Smyth and Wilson.

In attendance: Mr. P. McNaney, Chief Executive; Mr. M. Elder, Director of Community and Recreation; Ms. M. T. McGivern, Director of Development; Mr. G. Millar, Director of Improvement; Mr. C. Quigley, Director of Legal Services; Mr. T. Salmon, Director of Corporate Services; Mr. L. Steele, Head of Committee and Members' Services; and Mr. J. Hanna, Senior Committee Administrator.

Apologies

Apologies for inability to attend were reported from the Chairman (Councillor A. Maskey) and Councillor O’Reilly.

Revenue Estimates 2006/2007

The Director of Corporate Services submitted the undernoted report which had been prepared in connection with the estimated expenditure of the Council for the year 2006/2007:

“Section 53(2) of the Local Government Act (Northern Ireland) 1972 and Regulation 2 of the Local Government Annual Budget (SR & O 1973 No 130) require that this Council:

(a) consider and approve estimates for the year 2006/2007,

(b) authorise the expenditure included in those estimates and,

(c) fix the amount estimated to be raised by means of a District Rate.

The Council is also required to make this District Rate not later than 15 February 2006.

B Special Policy and Resources Committee, 416 Monday, 9th January, 2006

A local authority must have a system of financial planning. This system is not just a matter for the Chief Financial Officer, it also involves Members, the Chief Executive and all the other Chief Officers. The objectives of the financial planning system are:

To help elected Members determine priorities and their timing;

To forecast the changes in demand for services;

To show the likely implications of changes in legislation on spending;

To show the future costs of alternative policies;

To match demand with likely resources; and

To provide a framework for programming activities by individual services.

Although these are relatively straightforward and understandable objectives, financial planning in practice can be a complicated and expert exercise. The most important yearly planning activity is the preparation of the annual budget. However the annual budget is only of limited value as a policy document because it only looks one year ahead. Significant policy changes in local government can rarely be carried out wholly within one year and this is most obvious where capital schemes are involved. Longer term forecasting is therefore essential. It is particularly important to plan over a longer time scale – at least 3 to 5 years ahead - for the likely effects of change e.g. Waste Disposal, Leisure/Community.

It is for this reason that the Council has developed a medium term financial plan. Members will understand that the Council is a large diverse business with an annual spend exceeding £100 million. How this budget is spent will affect each and every one of our citizens and all those who visit or work in the city.

It is essential that the people of Belfast understand how the Council is funded and where the money is spent. This will be particularly important over the next few years as local taxation is set to change and rise significantly because of rating reform, the introduction of water charges and the Government’s proposals for increases in the Regional Rate to fund investment in infrastructure projects throughout the public sector.

The Medium Term Financial Plan will also allow Members to critically examine resource allocation and planning within the Council on both revenue and capital fronts and consider likely District Rate increases for the next three years. In this way Members, when taking decisions, will be mindful of the medium term financial consequences and the effects that these may have on the District Rate.

Special Policy and Resources Committee, B Monday, 9th January, 2006 417

The Corporate Plan has become the Council’s principal policy document. It shows in one comprehensive document what is intended to be done in a practical way to implement the Council’s stated policies. It sets out the aims and objectives of the Council and quantifies, where possible, targets to be achieved within a specified period of time. Preparation of the annual budget is one of the most extensive and visible aspects of the Council’s financial management. The annual budget is the financial representation of the Council’s policies. A special effort has been made by the several Departments of Council to more closely align Committee budgets in 2006/2007 with the Corporate Plan and Corporate Objectives.

Members are reminded that in 2003/2004 the Council put in place a three year Corporate Plan. With the establishment of a Council Improvement Board this plan has been extended for one year to give Members the opportunity to consider future direction in the light of the review of Public Administration and modernisation. Progress reports on implementation of the Corporate Plan will continue to be made periodically to Committee.

In the past the focus of attention in Local Authority budget setting has been on the margins, upon individual items of expenditure within a base budget that would be rolled forward from one year to the next. However as pressures on Councils have grown they have had to face up to some basic decisions about budget priorities. What is the right balance between say Leisure provision and Economic Development, or between front line and support services? Which activities can be scaled down, or abandoned altogether, so that others can continue at an adequate level or grow? Budget setting now involves decisions that can have a dramatic impact upon particular services. There has been much heart searching in the preparation of this year’s budget at both Member and Officer levels.

Several factors have combined to become the driving force behind preparation of the estimates for 2006/2007. These include:-

Government Strategy and Plans

In its recent publication ‘Draft Priorities and Budget - 2006-08’ the Government has set out its top priorities as Health and Education. However in order to achieve this the Secretary of State has asked other Government Department to reduce spending on their lower priority activities by 3% next year and by 4% the year after.

B Special Policy and Resources Committee, 418 Monday, 9th January, 2006

The Government recognises the need for substantial investment in Northern Ireland’s infrastructure in key areas such as health, education, roads, public transport, water and sewerage. But from a local taxation perspective the message is abundantly clear. The Regional Rate for households will rise by 19% next year. The Plans also take account of water charges, the introduction of which has been delayed by one year.

Whilst these measures will produce additional income they will undoubtedly bring further financial pressures on householders.

Regional Rate increases for business premises will be fixed at 3.3% for each of the next two years.

Medium Term Financial Plan

In conjunction with the Council’s Improvement Board a Medium Term Financial Plan has been developed covering the period 2006‑2009. This plan is a financial model which incorporates the base budget, current budgetary pressures, Departmental spending plans and changes, a programme of efficiencies and prospects for the product of the penny rate. This plan is a ‘living document’ and is updated regularly to reflect the changes that have been made by Departments and the Council’s Improvement Board along the way. Five versions of the model have been produced during the past year. Initially prospects for the rate increase for next year were showing in excess of 14%. The success of the process is evidenced by the most recent version which shows a projected increase of 5.75%. Clearly this process will develop as the work of the Council’s Improvement Board continues.

Efficiency Savings

At its meeting on 23rd September, Policy and Resources Committee instructed Departments to make efficiency savings of £2.5m over three years. It was further agreed that this would be profiled as follows - £1m in 2006/07 and £0.75m in each of the following two years.

The various Council Departments have contributed to this target with an additional £154,010 being contributed from the finalisation of the Client / Contractor arrangement.

Belfast City Council Efficiency Savings 2006/07

   £

Policy and Resources Committee 250,000 Development Committee 150,000 Community and Recreation Committee 400,000 Health and Environmental Services Committee 200,000 Contract Services Committee 154,010 Total Council efficiency savings 1,154,010

Special Policy and Resources Committee, B Monday, 9th January, 2006 419

High Level Guidelines

Over the past months individual Party groupings have been briefed on the issue of Waste Disposal. Members will be well aware that the Council will face an enormous rise in its spending curve over the next number of years because of Waste Disposal costs.

Last year I reported that these costs would rise by some £20 million in the next 10 years, with significant stepped increases around 2006-08 when Dargan Road will close, free tipping will cease-to be replaced by a commercial charge and a massive reduction in income will occur. Recent calculations and projections indicate that these costs have not lessened. Landfill Tax continues to increase at levels well above inflation.

Given these financial pressures Members will clearly appreciate why financial planning for Waste Disposal costs must remain the Council’s top priority for the next few years.

The Council’s Waste Disposal Financial Strategy is progressing well and is close to the predictions which have been advised to Committee. Members will recall that under this strategy monies earmarked for future waste disposal costs are being “ring fenced” and productively used until 2006 when Dargan Road will close and new waste plan arrangements will be operational.

Allocation of Waste Disposal Fund

In specific terms the Repairs and Maintenance initiative will continue in the sum of £3m. This resource will be targeted once again at front line Council properties in an effort to make a difference at these facilities. Next year works at leisure facilities will be given priority.

The Council’s Information Age Government Programme which is designed to improve communication with ratepayers and access to services will also receive additional resources of £500k.

A further contribution of £2m will be made to the Dargan Road Landfill Site closure plan.

£500k has been allocated to initiate the Council’s approach to Strategic Neighbourhood Action Plans (SNAP) and £400k to address anti-social behaviour measures.

The Director of Improvement recognises that investment will be required to change and modernise the Council in anticipation of the Review of Public Administration. An ‘invest to save’ budget has been created in the sum of £500k.

B Special Policy and Resources Committee, 420 Monday, 9th January, 2006

During party briefings I drew Members attention to the importance of the Council’s Capital Programme and the impact that this could have for future rate increases. Put simply the number of schemes put forward for consideration by the several Council Departments far exceeds the Council’s resources. Prioritising these schemes into a programme which is affordable will not be easy and this is a matter which must be addressed as a matter of urgency. Notwithstanding debt charges arising from the draft Capital Programme will add £4.9m to the Council’s Revenue Budget next year.

An extra £800k has again been set aside for the ‘Cleaner and Brighter Belfast’ key priority.

It is stressed that these amounts highlighted above are ‘ring fenced’ and cannot be transferred to other budget heads without my express recommendation to Committee and Council.

Client/Contractor Split

This task is essentially complete.

Pay and Pensions

The position on Pay and Pensions is a mixed one. On the positive side a three year pay deal has been agreed at national level at a figure close to inflation.

However following a tri-annual valuation of the Superannuation Fund, the Northern Ireland Local Government Superannuation Committee has advised that employer’s contributions to the fund will rise by 2.5% next year to a new level of 11%. Although this contribution ‘hike’ is disappointing it was not unexpected and must be put in context. For many years the Council has enjoyed a ‘contribution holiday’ with employer’s contributions sitting at 4.6%. Average contributions of similar funds elsewhere in the public sector are of the order of 17% or more. So even with this increase the employer’s contributions rate is still well below the average.

Insurance

The effect of a hardening insurance market first appeared during 2000 and has continued since that time. Initially the Council faced substantial insurance premium increases and restricted terms across all classes of cover.

Through tendering and reviewing the Council’s Risk Management procedures premium increases have been kept to a minimum and indeed in the case of the Motor Fleet has been reduced.

Special Policy and Resources Committee, B Monday, 9th January, 2006 421

Energy Conservation

Although notification has been received of significant increases in energy tariffs, energy conservation measures have minimised the impact of these increases.

Capital Charges/Depreciation

Since the introduction of Capital Charges in 1999 I have been reminding Members that the application of Capital Charges can often distort the actual operating cost of a facility and this needs to be borne in mind when considering budgets in detail, e.g. although the cost of operating the Waterfront Hall stands at £4,444,000 next year including capital charges and depreciation, the actual cash operating cost is in fact £2,000,000.

Members should be aware of three important matters arising from capital charging.

1. It will have no overall effect on the District Rate to be fixed,

2. Certain service budgets in a transitional year may show dramatic increases or decreases from the previous year, and

3. Capital Charges have reduced considerably this year due to low interest rates.

Projected Out-Turn 2005/2006

Members will know that the Budget for the current year is the subject of continuous monitoring of actual spending and income against estimate. All indications this year to date suggest a high level of confidence that expenditure and income will be contained within the limits determined by Council.

Product of a 1p Rate

The product of a 1p Rate shows a welcome growth next year to a new figure of £4,701,760. Members should be aware however that a large part of this increase is due to the introduction of rates to vacant properties and the phasing out of industrial de-rating.

General Economic Outlook

On a positive note inflation appears to be holding around 3%. Interest rates also remain low. This will help constrain borrowing costs.

The figures now presented in this report take account of the above matters.

B Special Policy and Resources Committee, 422 Monday, 9th January, 2006

In accordance with Standing Orders and Financial Regulations Chief Officers have submitted to my Department estimates of Income and Expenditure for the year commencing 1 April 2006. These estimates have been examined in detail by senior staff and myself and a summary of the figures of all Departments, including those under the control of the Policy and Resources Committee, is set out below and is now submitted to this Committee for consideration and the determination of Committee Cash Limits for the year ending 31 March 2007.

Summary of Estimates of Income and Expenditure for year ending 31 March 2007

Year Ending 31/03/2006 COMMITTEE Year Ending 31/03/2007

               £

             £

18,209,240 POLICY AND RESOURCES COMMITTEE 18,039,730 5,099,200 Chief Executive’s Department 5,197,900 150,260 Legal Services Department 190,020 12,023,290 Corporate Services Department 11,576,450 936,490 Council Improvement Team 1,075,360

8,925,810 DEVELOPMENT COMMITTEE 9,262,430

43,662,760

154,010 COMMUNITY AND RECREATION COMMITTEE

CONTRACT SERVICES COMMITTEE 45,479,400

0

38,286,450 HEALTH & ENVIRONMENTAL SERVICES COMMITTEE 45,575,390

29,150 TOWN PLANNING COMMITTEE 30,000

118,386,950 (15,169,150) Less Adjustments re Capital charges (14,715,830) 94,098,270

103,671,120

Less

6,479,190 GENERAL EXCHEQUER GRANT 5,750,800 87,619,080

97,920,320

Less

1,300,000 ESTIMATED CREDIT BALANCE 1,000,000 86,319,080

96,920,320

4,428,320 ESTIMATED PRODUCT OF 1p RATE 4,701,760

19.49p NON-DOMESTIC RATE IN £ FOR YEAR ENDING 31/3/2007 20.61p 8.524 DISTRICT GROWTH FACTOR 8.524

166.15p DOMESTIC RATE IN £ YEAR ENDING 31/3/2007 175.71p

Special Policy and Resources Committee, B Monday, 9th January, 2006 423

It will be noted from the summary that the overall net expenditure for the Council amounts to £103,671,120.

After deducting General Grant and the Estimated Credit Balance, an amount of £96,920,320 is required to be met by way of the District Rate. Based on an estimated product of a penny rate amounting to £4,701,760 it will be necessary to determine a Domestic Rate of 175.71p and a Business Rate of 20.61p to meet the Council’s estimated expenditure.

THIS SHOWS AN INCREASE OF 5.75% OVER LAST YEAR.

My comments on the spending of the various Committees and their efficiency savings are as follows:

Policy and Resources Committee

A cash limit of £18,039,730 is recommended for the Policy and Resources Committee in respect of the financial year 2006/07. Excluding capital charges of £5,773,690 this represents an increase in expenditure of 5.16% over last year.

This is represented by:

£

Chief Executive’s Department 5,197,900 Legal Services Department 190,020 Corporate Services Department 11,576,450 Core Improvement Team 1,075,360

18,039,730

Chief Executive’s Department

A spending limit of £5,197,900 is recommended for the Chief Executive’s Department for 2006/07. Excluding capital charges of £44,790 this represents an increase of 1.85% over last year.

The main increase in expenditure is superannuation which has increased from 8.5% in 2005/06 to 11.0% for Council employees in 2006/07. This has resulted in increased costs of £37,400 to the Department.

B Special Policy and Resources Committee, 424 Monday, 9th January, 2006

The Department will make a contribution of £50,000 to the efficiency programme in 2006/07. Efficiency savings will be made as follows:

£

1. Good Relation, Equality Impact Assessment

20,000 2. Committee and Members Services – Information technology equipment

30,000 Total Departmental Efficiency Savings 50,000

Corporate Services Department

A spending limit of £11,576,450 is recommended for Corporate Services Department for 2006/07. Excluding capital charges of £5,728,900 this represents an increase of 5.96% over last year.

The most significant increase in expenditure is superannuation which will result in increased costs to the Department of £370,130.

An additional £120,700 has been provided for Internal Audit to meet increased staffing costs.

Information Services Belfast has conducted a ‘root and branch’ review of operations during the current year. As a result ISB will make a positive contribution to the Council’s budget next year by generating additional income and reducing costs throughout the section. This will amount to £582k.

Further cost reductions of £100,000 will be achieved by reducing the Information Age Government budget from £900,000 to £800,000.

Apart from matters highlighted above there are no other exceptional items of expenditure.

The Department will make a contribution of £200,000 to the efficiency programme in 2006/07. Efficiency savings will be made as follows:

£

1. Information Services Belfast – Stand-by facility/network

125,000 2. Business Improvement Service – Increase in external income

 75,000

Total Departmental Efficiency Savings 200,000

Special Policy and Resources Committee, B Monday, 9th January, 2006 425

Development Committee

A spending limit of £9,262,430 is recommended for the Development Department in respect of the financial year 2006/07. Excluding capital charges of £2,372,600 this represents a saving of 1.47% over last year.

The main budgetary intentions of the Department for next year are set out below:

Including Capital Charges

    £

Excluding Capital Charges £ Economic Initiatives Section

Economic Development 1,323,000 1,323,000 Culture and Arts 1,663,000 1,663,000 Tourism 1,801,000 1,801,000 Events 1,430,000 1,430,000

Urban Development Section

Procurement 216,000 216,000 Project Management 115,000 115,000 Planning and Development

   (460,000)

(2,833,000) Planning and Transport 467,000 467,000

Directorate

Development Directorate 885,000 885,000 Policy and Research 478,000 478,000 European Unit 373,000 373,000 Belfast 2006 482,000 482,000 BMAP 77,000 77,000 CDC Costs 412,000 412,000

Total Net Expenditure 9,262,000

6,889,000

There are a number of areas where significant change has occurred from last year.

Increased costs of £87,000 must be borne by the Department in respect of superannuation.

The Council’s contribution to Celebrate Belfast has increased by £90,000 from 2005/06. Planned celebrations will culminate with events marking the centenary of the City Hall.

B Special Policy and Resources Committee, 426 Monday, 9th January, 2006

St. George’s Market will incur additional expenditure of £74,000 in relation to building repairs and maintenance and an increase in the number of market days.

Site preparation for the development of the North Foreshore will incur additional costs of £70,000.

The majority of the annual Tourism budget continues to be ‘contracted out’ to the Belfast Visitor and Convention Bureau and Visitor Welcome Centre. The expenditure also includes the final phase of the Visitor Signage Strategy which has been 75% grant aided by the PEACE II initiative. The Council’s contribution to the Visitor Signage Strategy has increased by £50,000 from 2005/06.

Savings of £448,000 are anticipated by a reduction in the Local Economic Development (LED) Programme. The amount provided in the Department’s estimate is to ensure that the Council meets the timetable for expenditure as set out in the LED plan which is programmed to end on 31/12/07.

The Council’s Industrial Estates continue to produce excellent results with overall rental income estimated to increase by £365,000 in 2006/07.

The Department will make a contribution of £150,000 to the efficiency programme in 2006/07. This has been achieved through a critical examination of employee costs, overtime and agency staff and overheads across the entire department.

Community and Recreation Committee

A spending limit of £45,479,400 is recommended for the Department in respect of the financial year 2006/07. Excluding capital charges of £11,939,650 this represents an increase of 3.38% over last year.

The main budgetary intentions of the Department for next year are set out below:

Including Capital Charges

    £

Excluding Capital Charges

£

Community & Recreation Development 21,585,730 15,884,870 Parks and Amenities 17,619,090 14,308,040 Waterfront Hall/Ulster Hall 5,276,260 2,357,350 Events 545,180 536,350 Corporate and Democratic Costs 453,140 453,140 Total Net Expenditure 45,479,400 33,539,750

Special Policy and Resources Committee, B Monday, 9th January, 2006 427

There are a number of areas where significant change has occurred from last year.

Increased costs of £376,400 must be borne by the Department in respect of superannuation.

It is estimated that utility costs will increase by £125k in 2006/07.

Expenditure of £140,000 has been included in the estimates to support the establishment and operation of the Youth Forum as approved by the Community and Recreation Committee in August 2005.

The programme of Leisure Centre upgrade works, and the series of temporary closures, will be completed during 2006/07. The closures, due to the refurbishment programme, will result in a loss of income of £190,000. However, as a result of the upgrade works annual savings of £150,000 will be achieved in response maintenance expenditure.

The full running costs of the new Falls Leisure Centre have been included for 2006/07 which results in increased expenditure of £110,000. However, it is envisaged that the transfer of Beechmount Leisure Centre will take place in early 2006/07, resulting in an estimated saving of £217,000. Further savings of £137,000 are estimated as Maysfield Leisure Centre now only consists of premises costs.

The Support for Sport estimate includes an additional £25,000 of ring fenced funding for Sail Training as approved by the Community and Recreation Committee in November 2005.

The Department will make a contribution of £400,000 to the efficiency programme in 2006/07. Efficiency savings will be made as follows:

Parks and Cemeteries £ 1. Back office savings – Client / Contractor split 115,000 2. Fleet management / playground equipment 20,000 3. Playground equipment response maintenance 35,000 4. Increase in Zoo income

70,000

Community and Leisure Services

5. Response maintenance and equipment 150,000

Ulster Hall

6. Energy Costs 5,000

Events

7. Reduction in support for sporting events 5,000

Total Departmental Efficiency Savings 400,000

B Special Policy and Resources Committee, 428 Monday, 9th January, 2006

Health and Environmental Services Committee

A spending limit of £45,575,390 is recommended for the Department in respect of the financial year 2006/07. Excluding capital charges of £1,079,520 this represents an increase of 19.24% over last year.

The main budgetary intentions of the Department for next year are set out below:

Including Capital Charges

£

Excluding Capital Charges

£

Environmental Health 7,066,460 7,036,680 Waste Management 17,757,830 16,874,850 Building Control 276,640 276,640 Cleansing 20,103,720 19,936,960 Corporate Democratic Costs 370,740 370,740 Total Net Expenditure 45,575,390 44,495,870

There are a number of areas where significant change has occurred from last year.

Increased costs of £604,000 must be borne by the Department in respect of superannuation.

Implementation of the Waste Plan will cost an additional £5,175,000 in 2006/07.

The cost of the Landfill Contract for the disposal of the City’s waste including the additional costs associated with haulage to Mullaghaglass will cost £1.4million;

Operation of Park Road Household Recycling Centre will cost £494,000;

Closure of the landfill site will result in a loss of income of £1.6million;

Landfill tax will increase again in 2006/07 at a cost of £396,000 to the Council;

The waste management grant will reduce by £531,000;

Special Policy and Resources Committee, B Monday, 9th January, 2006 429

Preparatory work for the new Transfer Station for compacting and bulking waste will cost £154,000;

Implementation of the alternate weekly bin collection service will cost £1.9 million This will be partly offset by savings in domestic refuse collection of £786,000.

The operating costs for an additional five public conveniences (two inner city and three outer city) have been included in the estimates at a cost of £203,000.

In March 2005 the Council agreed an incremental approach to dealing with anti-social behaviour. A number of posts, including the appointment of up to eight Community Safety wardens in the Holyland area of the City for three years, will have financial implications of up to £258,000 next year.

Public Health expenditure is planned to grow by £260,000 to cover the Council’s role in Emergency Planning, Pest Control and Air Quality.

With the continued growth in the city the Building Control Service will make savings of £111,000 over their 2005/06 position.

The Department will make a contribution of £200,000 to the efficiency programme in 2006/07. Efficiency savings will be made as follows:

£

1. Rationalisation programme for Civic Amenity Sites

70,000 2. Implementation of producer responsibility for Waste Electrical and Electronic Equipment

130,000

Total Departmental Efficiency Savings 200,000

Town Planning

In previous years Members have drawn attention to the need to provide some funds to cater for possible representation at public enquiries etc. Accordingly a sum of £30,000 has been provided for this purpose.

_____________________________

B Special Policy and Resources Committee, 430 Monday, 9th January, 2006

Belfast City Council like all other Local Authorities across the country is faced with the constant pressure of balancing increasing demands against ever decreasing resources and 2006/2007 will be no exception.

A major effort has been made by all concerned to ensure that the estimates presented are meaningful, realistic, and correlate closely with the key tasks and activities within the Corporate Plan.

On 1 February 2006 the estimates of the various Council Departments and Committees will be approved and adopted. In due course a full copy of the Corporate Plan incorporating a summary of the financial information will be distributed to each Member of Council.

My thanks are due to all for the continued co-operation and assistance which I have received over the past months in what has been a long and exhausting exercise to compile the Revenue Estimates.

DECISIONS REQUIRED:

1. To Fix the Cash Limits for the various Committees of the Council, and

2. To approve the estimates for the Policy and Resources Committee.

Special Policy and Resources Committee, B Monday, 9th January, 2006 431

APPENDICES

Revenue Estimates 2006/2007 –

Council Overall Appendix 1 – Page 1

Policy and Resources Committee

Chief Executive’s Department Appendix 2 – Page 1 Chief Executive’s Department Appendix 2 – Page 2

Corporate Services Department Appendix 3 – Page 1 Corporate Services Department Appendix 3 – Page 2

Development Committee

Development Department Appendix 4 – Page 1 Development Department Appendix 4 – Page 2

Community & Recreation Committee

Community & Recreation Department Appendix 5 – Page 1 Community & Recreation Department Appendix 5 – Page 2

Health & Environmental Services Committee

Health & Environmental Services Department Appendix 6 – Page 1 Health & Environmental Services Department Appendix 6 – Page 2

The above appendices relate to the several Council Departments.

For each Department/Committee there are two information sheets. The first information sheet attempts to explain the major changes from last year’s budget to the present position, while the second sheet indicates the major items of spend proposed for next year, i.e. 2006-2007.

B Special Policy and Resources Committee, 432 Monday, 9th January, 2006

APPENDIX 1 – PAGE 1

REVENUE ESTIMATES 2006/2007

Year Ending

Year Ending

VAR

VAR 31/03/2006

Committee

31/03/2007

£

% 18,209,240

POLICY AND RESOURCES COMMITTEE 18,039,730

(169,510)

(0.93%) 5,099,200

Chief Executive's Department

5,197,900

98,700

1.94%

150,260

Legal Services Department

190,020

39,760

26.46%

12,023,290

Corporate Services Department

11,576,450

(446,840)

(3.72%)

936,490

Core Improvement Team 1,075,360

138,870

14.83%

8,925,810

DEVELOPMENT COMMITTEE 9,262,430

336,620

3.77%

43,662,760

COMMUNITY AND RECREATION COMMITTEE 45,479,400

1,816,640

4.16%

38,286,450

HEALTH AND ENVIR. SERVs. COM. 45,575,390

7,288,940

19.04%

29,150

TOWN PLANNING COMMITTEE 30,000

850

2.92%

154,010

CONTRACT SERVICES COMMITTEE 0

(154,010)

(100.00%)

109,267,420

118,386,950

9,119,530

8.35% (15,169,150)

Less Adjustment for Capital Charges (14,715,830)

453,320

(2.99%) 94,098,270

103,671,120

9,572,850

10.17%

Less

6,479,190

GENERAL EXCHEQUER GRANT 5,750,800

(728,390)

(11.24%) 87,619,080

97,920,320

10,301,240

11.76%

Less

1,300,000

ESTIMATED CREDIT BALANCE 1,000,000

(300,000)

(23.08%)

86,319,080

(a) 96,920,320

10,601,240

12.28%

4,428,320

NOTIONAL PRODUCT OF 1p RATE (b) 4,701,760

273,440

6.17%

19.49 P NON-DOM. RATE IN £ - Y/E 31/3/07 (c)=(a)/(b) 20.61 p 1.12 p 5.75% 8.524

DISTRICT GROWTH FACTOR (d) 8.524

0

0.00% 166.15 P DOMESTIC RATE IN £ Y/E 31/3/07 (c)x(d) 175.71 p 9.56 p 5.75%

Special Policy and Resources Committee, B Monday, 9th January, 2006 433

APPENDIX 2 – PAGE 1

CHIEF EXECUTIVE'S DEPARTMENT REVENUE ESTIMATES 2006/07

£ £ Estimate 2005/06 *

5,128,350

Efficiencies

Good Relations - Equality Impact Assessments

(20,000)

Committee and Members Services - IT Equipment

(30,000)

(50,000)

Estimate after incorporating Efficiencies

5,078,350

Increased Costs

Superannuation

37,400

Normal Increase

112,150

Estimate 2006/07 *

5,227,900

• Includes Town Planning Budget

B Special Policy and Resources Committee, 434 Monday, 9th January, 2006

APPENDIX 2 – PAGE 2

CHIEF EXECUTIVE'S DEPARTMENT MAIN ITEMS OF ESTIMATED EXPENDITURE 2006/2007

Inc. Capital Charges

Exc. Capital Charges

£

£

District Policing Partnership Board

103,000

103,000

Committee Services

875,000

852,000

Lord Mayor's Support

517,000

500,000

Members' Support

334,000

334,000

Members' Allowances

696,000

696,000

Members' Facilities

214,000

214,000

Ceremonial Occasions

200,000

200,000

Good Relations

656,000

656,000

Corporate Communications/Publicity

652,000

652,000

Departmental Administrative Support

520,000

520,000

Records Management

148,000

148,000

Special Policy and Resources Committee, B Monday, 9th January, 2006 435

APPENDIX 3 - PAGE 1

CORPORATE SERVICES DEPARTMENT REVENUE ESTIMATES 2006/07

£

£

Estimate 2005/06

12,023,290

Efficiencies

ISB - Stand-by Facility / Network

(125,000)

BIS - Increased External Income

(75,000) (200,000) Estimate after incorporating Efficiencies

11,823,290

Increased Costs

Employers Superannuation

370,130

Internal Audit - Additional staff

120,700

Financial Services - Staffing

51,170

Facilities Management - Increased Rent Duncrue 140,000

682,000

Growth

ISB External Income/ Operations

(582,000)

Cost Reductions

IAG- Corporate Business Systems

(100,000)

Capital Charges

(775,890)

(875,890)

Normal Increase

529,050

Estimate 2006/07

11,576,450

B Special Policy and Resources Committee, 436 Monday, 9th January, 2006

APPENDIX 3 – PAGE 2

CORPORATE SERVICES DEPARTMENT MAIN ITEMS OF ESTIMATED EXPENDITURE 2006/2007

Inc. Capital Charges Exc. Capital Charges

£ £

City Hall

4,329,000

2,418,000

Cecil Ward Building

1,303,000

748,000

Clarendon House / Lesley House

506,000

506,000

Single Status Harmonisation

150,000

150,000

Contributions to Specified Bodies

233,000

233,000

LGA Fees

133,000

133,000

Employment Support Scheme

51,000

51,000

Audit Panel

631,000

631,000

Corporate Strategic Objectives/ Quality Initiatives

150,000

150,000

Bank Charges

60,000

60,000

Pensions

1,226,000

1,226,000

Catering Services

105,000

105,000

Property Maintenance

69,000

69,000

Fleet Management Unit

115,000

(2,596,000)

Security Unit

251,000

251,000

Energy Management

78,000

78,000

Management Development Programme

200,000

200,000

IAG

800,000

800,000

Special Policy and Resources Committee, B Monday, 9th January, 2006 437

APPENDIX 4 – PAGE 1

DEVELOPMENT DEPARTMENT

REVENUE ESTIMATES 2006/07

£

£

Estimate 2005/06

8,925,810

Efficiencies

Streamlining of Budgets

(150,000)

Estimate after incorporating Efficiencies

8,775,810

Increased Costs

Superannuation costs

87,000

Celebrate Belfast

90,000

St George's Market

74,000

Capital Charges

439,330

North Foreshore - Site Preparation

70,000

Visitor Signage Strategy

50,000

810,330

Savings

Reduction in LED Programme

(448,000)

Increased Income

Duncrue

(105,000)

Bog Meadows

(160,000)

Gasworks

(100,000)

(365,000)

Normal Increase

489,290

Estimate 2006/07

9,262,430

B Special Policy and Resources Committee, 438 Monday, 9th January, 2006

APPENDIX 4 – PAGE 2

DEVELOPMENT DEPARTMENT MAIN ITEMS OF ESTIMATED EXPENDITURE 2006/2007

Inc. Capital Charges Exc. Capital Charges

£

£

Economic Initiatives

Local Economic Development

1,323,000
1,323,000

Culture and Arts

1,663,000 1,663,000 Tourism

1,801,000 1,801,000 Events

1,430,000 1,430,000

Urban Development

Procurement

216,000 216,000 Gasworks

(97,000) (521,000) Markets

533,000 311,000 Industrial Estates: Duncrue

(360,000) (703,000) Bog Meadows (1,355,000) (2,402,000) North Foreshore

436,000 436,000 Traveller's Sites

370,000 36,000 Planning and Transport

467,000

467,000

Directorate

City Development

885,000 885,000 BMAP

77,000 77,000 Policy and Research Unit

478,000
478,000

European Unit

373,000 373,000

Special Policy and Resources Committee, B Monday, 9th January, 2006 439

APPENDIX 5 - Page 1

COMMUNITY AND RECREATION DEPARTMENT REVENUE ESTIMATES 2006/07

£

£ Estimates 2005/06

43,662,760

Efficiencies

Back Office Savings (115,000)

Outsourcing Fleet Management and Reduction in Playground Equipment (20,000)

Playground Response Maintenance (35,000)

Increase in Zoo Income (70,000)

Leisure Response Maintenance (150,000)

Ulster Hall Energy Costs (5,000)

Reduction in Support for Sporting Events (5,000)

(400,000)

Estimate after incorporating Efficiencies

43,262,760

Increased Costs

Utility Costs 125,000

Increase in Superannuation 376,400

Leisure Centre Loss of Income – Building Upgrade Work 190,000

Falls Swim Centre - Fully Operational 110,000

Increased Capital Charges 718,630

1,520,030

Growth

Youth Forum 140,000

Sail Training 25,000

165,000

Savings

Beechmount Leisure Centre Transfer (217,000)

Maysfield Leisure Centre - Film Production (137,000)

(354,000)

Normal Increase

885,610

Estimate 2006/07

45,479,400

B Special Policy and Resources Committee, 440 Monday, 9th January, 2006

APPENDIX 5 - Page 2

COMMUNITY AND RECREATION DEPARTMENT MAIN ITEMS OF ESTIMATED EXPENDITURE 2006/2007

Inc. Capital Charges

Exc. Capital Charges

£

£

Waterfront Hall 4,444,000

2,000,000 Ulster Hall

832,000

358,000

Recreation and Community

Community Support 2,713,000

2,713,000 Playcentres 522,000

356,000 Community Centres 3,993,000

2,914,000 Leisure Centres 13,457,000

9,002,000 Leisure Development Management

801,000

801,000

Parks and Amenities

Parks and Open Spaces 5,234,000

4,744,000 Playing Fields/Rec. Grounds 5,568,000

4,076,000 Cemeteries and Crematorium 344,000

238,000 Playgrounds 1,257,000

1,257,000 Conservation and Education 432,000

426,000 Landscape Planning and Development 799,000

799,000 Zoo 2,008,000

1,322,000 Belfast Castle/Malone House 1,259,000

730,000

Special Policy and Resources Committee, B Monday, 9th January, 2006 441

APPENDIX 6 – PAGE 1

HEALTH AND ENVIRONMENTAL SERVICES DEPARTMENT REVENUE ESTIMATES 2006/07

£ £

Estimate 2005/06

38,286,450

Efficiencies

Rationalisation Programme for Civic Amenity Sites

(70,000)

Waste Electrical and Electronic Equipment (WEEE)

(130,000)

(200,000)

Estimate after incorporating Efficiencies

38,086,450

Increased Costs

Superannuation

604,000

Growth

Implementation of Waste Plan

5,175,000

Additional Public Conveniences

203,000

Additional resources arising from Community Safety legislation 258,000

Additional resources arising from Public Health legislation 260,000

5,896,000

Savings

Domestic Refuse Collection

(786,000)

Building Control

(111,000)

(897,000)

Normal Increase

1,885,940

Estimate 2006/07

45,575,390

B Special Policy and Resources Committee, 442 Monday, 9th January, 2006

APPENDIX 6 – PAGE 2

HEALTH AND ENVIRONMENTAL SERVICES DEPARTMENT REVENUE ESTIMATES 2006/07

Inc. Capital Charges Exc. Capital Charges

£ £

Environmental Health

7,066,460

7,036,680

Waste Management

17,757,830

16,874,850

Building Control

276,640

276,640

Cleansing

20,103,720

19,936,960

The Director of Corporate Services made a presentation in relation to the Revenue Estimates and elaborated on and highlighted various aspects of the report. He stated that the Committee was required to fix the cash limits for the various Committees of the Council and to approve the estimates of expenditure in respect of the Policy and Resources Committee. Each Committee would then be required to consider the Estimates for which they had responsibility and, if necessary, make any amendments thereto.

After discussion, it was

Moved by Councillor Crozier, Seconded by Councillor McCausland and

Resolved – That the Committee agrees that the Directors examine the estimates of Departmental expenditure for the year 2006/2007 with an aspiration to reduce the proposed increase to a figure of less than 5%, with any potential savings to be achieved through reductions in both Capital and Revenue expenditure.

Chairman